Geothermal Cost-Recovery Authority Act

Summary#

This bill adds a new subsection to the Geothermal Steam Act of 1970 that lets the Secretary of the Interior require geothermal lease applicants or holders to pay back reasonable administrative and other costs. The rule would apply from the date the bill is enacted until September 30, 2032. Reimbursable costs listed in the bill include processing applications (such as operations plans, drilling permits, site licenses, construction permits, and other approvals) and inspecting and monitoring activities. Inspections and monitoring described include geophysical exploration, drilling, plugging and abandonment of wells, and construction, operation, termination, and reclamation of well sites or facilities.

The Secretary must consider whether a cooperative cost-share agreement exists before requiring reimbursement. The Secretary may reduce required reimbursement if full payment would cause economic hardship for the applicant or if a smaller payment would promote greater use of geothermal resources. Money paid back to the United States would be credited to the applicable Interior accounts as discretionary offsetting collections and would only be available if Congress provides them again in appropriations Acts.

The bill also requires the Secretary of the Interior to produce a public report no later than five years after enactment. The report must assess how the cost-recovery change affected the Bureau of Land Management's geothermal program, recommend whether to reauthorize the new subsection, and offer any other recommended updates. The Secretary must consult the geothermal industry and other stakeholders when preparing the report.

What it means for you#

• If you apply for or hold a federal geothermal lease, you could be asked to repay administrative costs for processing approvals and for inspections and monitoring work.
• The Secretary can reduce what you must pay if it would cause economic hardship or if a reduction would help use geothermal resources more widely.
• The change would last until September 30, 2032, unless Congress or a later law changes it.
• The Department must report publicly after five years on how the change worked and whether it should continue.

Expenses#

No publicly available information on estimated total costs or savings is provided in the bill text. The bill says reimbursed amounts will be credited to the Department of the Interior's current appropriation accounts as discretionary offsetting collections and will be available only as provided in future appropriations Acts for processing applications and for inspection and monitoring activities.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.