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Allows the Department of the Interior to require geothermal lease applicants and holders to reimburse the federal government for reasonable administrative costs for leasing, permitting, inspection, and monitoring activities, with the authority limited to the date of enactment through September 30, 2032. It permits cooperative cost‑share agreements, temporary fee reductions for economic hardship or to promote geothermal development, and directs reimbursed amounts to be credited and made available to the Department. The Act also requires the Secretary to prepare and publish a report within five years evaluating the effects of these changes on the Bureau of Land Management’s geothermal program and to offer recommendations, after consulting industry and stakeholders.
Secretary may require an applicant for, or holder of, a geothermal lease to reimburse the United States for all reasonable administrative and other costs incurred by the United States.
Costs eligible for reimbursement include processing applications related to geothermal leases, such as applications for operations plans, geothermal drilling permits, utilization plans, site licenses, facility construction permits, commercial use permits, and any other approvals associated with a geothermal lease.
Costs eligible for reimbursement also include inspecting and monitoring: (i) geophysical exploration activities; (ii) the drilling, plugging, and abandonment of wells; and (iii) the construction, operation, termination, and reclamation of any well site or facility for utilization of geothermal resources under a geothermal lease.
In deciding whether to require reimbursement, the Secretary must consider whether a cooperative cost-share agreement exists between the United States and the holder of a geothermal lease.
The Secretary may reduce the reimbursement amount if full reimbursement would impose an economic hardship on the applicant or if a reduced amount is necessary to promote the greatest use of geothermal resources.
Who is affected and how:
Net effect: The measure aims to make program costs more sustainable for DOI while retaining tools (fee reductions, waivers, cooperative agreements) to avoid discouraging geothermal development; impacts on project economics depend on how frequently fees are assessed and how often reductions/agreements are used.
Expand sections to see detailed analysis
Referred to the House Committee on Natural Resources.
Introduced January 14, 2025 by Alexandria Ocasio-Cortez · Last progress January 14, 2025
Ordered to be Reported by Unanimous Consent.
Committee Consideration and Mark-up Session Held
Subcommittee on Energy and Mineral Resources Discharged
Subcommittee Hearings Held