Sponsor
Alexandria Ocasio-Cortez
Representative · D-NY
Representative · D-NY
The bill shifts costs toward industry and requires studies and stakeholder input to promote geothermal development and transparency while reducing taxpayer funding needs, but it raises upfront costs for small developers, creates appropriation and administrative uncertainties, and risks local conflicts if safeguards are not enforced.
Taxpayers will pay less because developers and leaseholders are required to cover processing and monitoring costs, reducing reliance on public funds for geothermal permitting and oversight.
Rural communities and the public may receive better environmental and safety oversight because credited fees (when appropriated) create a dedicated funding source for inspections and monitoring of geothermal operations.
Utilities, small developers, and rural communities could see expanded geothermal development and jobs because the Secretary can lower fees for economic hardship and BLM/DOI will assess and solicit input to inform reauthorization and program improvements.
Small developers and some lease applicants will face higher upfront permitting and inspection costs, raising project costs and potentially deterring smaller or early-stage projects while advantaging larger firms that can better absorb fees.
Taxpayers and DOI may still face funding and oversight gaps because reimbursed amounts are credited as discretionary offsetting collections and are only available if appropriated, creating uncertainty in fee collection and spending and potentially limiting timely oversight.
Rural communities could experience increased local land‑use conflicts and environmental impacts if the assessment leads to reauthorization or expanded leasing without strong safeguards.
Based on analysis of 3 sections of legislative text.
Allows Interior to require geothermal lease applicants/holders to reimburse federal processing, inspection, and monitoring costs through Sept 30, 2032, with collections credited to DOI accounts.
Introduced January 14, 2025 by Alexandria Ocasio-Cortez · Last progress January 14, 2025
Authorizes the Interior Secretary to require geothermal lease applicants and holders to reimburse the federal government for reasonable costs of processing lease-related applications and for inspection and monitoring, through September 30, 2032. Collections must be credited as discretionary offsetting collections to Interior accounts and can only be spent as provided in advance by appropriations Acts. Requires the Interior Secretary to produce and publicly post a report within five years assessing how the new cost-recovery authority affected BLM’s geothermal program, whether the authority should be reauthorized, and any recommended updates; the Secretary must solicit input from the geothermal industry and other stakeholders when preparing the report.