Geothermal Leasing on Public Lands

Summary#

This bill makes changes to how the federal government leases public land for geothermal energy and how it handles geothermal drilling permit applications. It requires annual lease sales instead of every two years, adds rules for replacement sales, sets a target to offer most nominated parcels for lease, and sets deadlines for permit processing and agency notices. The broad goal is to speed up and increase geothermal development on federal lands.

• Main change: Lease sales must happen every year rather than every two years.
• Replacement sales: If a yearly lease sale is canceled or delayed, a replacement sale must be held that same year.
• Parcel offering rule: When holding a sale, the Secretary of the Interior must offer 75% of the nominated parcels that are eligible under the state resource management plan. The remaining 25% must be offered unless the Secretary gives a written reason based on law, environmental limits, or administrative reasons.
• Permit notice deadline: Within 30 days of getting a drilling permit application, the agency must say whether the application is complete or list what is missing.
• Permit decision deadline: After the application is complete, the agency must either issue the permit within 30 days (if environmental reviews and other laws are finished) or defer and give the applicant a written list of steps the applicant and the agency must take, with timelines. If deferred, the final permit decision must be made within 10 days after both the applicant and the agency finish the listed steps.
• What is unclear: The bill refers to existing NEPA deadlines but does not give detailed timing for every agency action. The text does not include a public cost estimate.

What it means for you#

• Geothermal developers and permit applicants

  • Applications must get a completeness notice within 30 days.
  • If complete, expect either a permit decision within 30 days or a list of steps to follow.
  • If you follow required steps and the agency meets its timelines, the agency must decide within 10 days after those steps are done.

• Companies bidding on federal geothermal leases

  • There will be lease sales every year, so more frequent opportunities to bid.
  • Most nominated parcels (at least 75%) should be offered at each sale unless the Secretary gives a written reason not to.

• Secretariat and federal land managers (Department of the Interior)

  • Must schedule annual lease sales and run replacement sales if needed.
  • Must meet new response and decision deadlines for drilling permits or provide written deferral reasons and timelines.

• State agencies and public planning

  • The rule about which parcels are offered is tied to the parcels nominated and eligible under the state resource management plan. Local planning and nominations matter for what is offered.

• Local communities and land users near nominated parcels

  • More frequent lease sales could mean faster development activity near nominated parcels. The bill does not change public review rights under environmental laws, but it shortens some response timelines for agencies.

Expenses#

No publicly available information.

• The bill does not include a fiscal note or a cost estimate in the provided material.
• This could increase administrative work for the Department of the Interior and other agencies that do environmental reviews. That could mean higher staff or processing costs, but no numbers are provided.
• Developers may face costs to respond quickly to requests for missing information or to meet steps listed in a deferral notice.

Proponents' View#

• The bill appears intended to speed up geothermal leasing and development on federal lands by making lease sales more frequent and by forcing deadlines on permit processing.
• Supporters may argue that annual sales and replacement sales reduce delays and create more predictable market opportunities for geothermal companies.
• Requiring written reasons when parcels are not offered increases transparency about why parcels are withheld.
• The permit deadlines could reduce long waits for applicants and clarify what the agency needs to finish before issuing a permit.

Opponents' View#

• One concern is that tighter timelines could pressure agency environmental reviews or lead to rushed decisions.
• The bill does not explain how the Department of the Interior will meet the extra workload; this may create staffing or budget strains.
• Requiring 75% of nominated parcels to be offered could limit the agency’s flexibility to protect sensitive areas, unless the Secretary provides a written justification.
• It is unclear how the referenced NEPA timelines will fit with complex reviews; the bill ties agency timelines to existing NEPA deadlines but does not specify how conflicts or delays will be handled in detail.