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Geothermal Cost-Recovery Authority Act of 2025
2/11/2025, 2:33 PM
Summary of Bill HR 398
The bill seeks to update the existing legislation to allow the Department of the Interior to recover costs related to the administration and oversight of geothermal energy development activities on federal lands. This cost-recovery authority would enable the department to more effectively manage and regulate geothermal energy projects, ensuring that they are conducted in a responsible and sustainable manner.
By granting the Department of the Interior the ability to recover costs, the bill aims to ensure that taxpayers are not burdened with the financial responsibility of overseeing geothermal energy development on federal lands. This cost-recovery authority would also help to incentivize responsible development practices and promote the growth of the geothermal energy industry in the United States. Overall, Bill 119 HR 398 seeks to modernize the Geothermal Steam Act of 1970 by providing the Department of the Interior with the necessary tools to effectively regulate and oversee geothermal energy development on federal lands, while also promoting responsible and sustainable practices within the industry.
Congressional Summary of HR 398
Geothermal Cost-Recovery Authority Act of 2025
This bill expands the Geothermal Steam Act of 1970 to give the Department of the Interior the authority to collect certain fees from applicants for, or holders of, geothermal leases through September 30, 2032. Specifically, Interior may direct those applicants or leaseholders to reimburse the United States for costs from (1) processing applications for geothermal leases on federal land, such as applications for geothermal drilling permits; and (2) inspecting and monitoring geothermal exploration and development activities, including reclamation activities.
Interior may reduce the amount of the fee if it determines that (1) the full reimbursement would impose an economic hardship on the applicant, or (2) a less than full reimbursement is necessary to promote the greatest use of geothermal resources.
Interior may use those fees only to the extent that they are provided in advance in appropriations acts for (1) processing applications for geothermal leases, and (2) inspecting and monitoring related exploration and development activities.
Within five years of the bill's enactment, Interior must submit to Congress a report that includes an assessment of how the fees affect Interior's geothermal leasing program and any recommendations for updates to the fees and the program.
