Sponsor
Ruben Gallego
Senator · D-AZ
Senator · D-AZ
Permits Interior to require geothermal lease applicants/holders to reimburse the federal government for reasonable processing and inspection costs through Sept 30, 2032.
Official title: Amend the Geothermal Steam Act of 1970 to provide cost-recovery authority for the Department of the Interior.
Introduced May 20, 2026 by Ruben Gallego · Last progress May 20, 2026
The bill aims to make geothermal development more predictable and potentially faster through clearer rules, stakeholder input, and fee-directed funding, but it does so by imposing new fees and creating uncertainty about environmental protections and whether promised capacity improvements will actually occur.
Utility and geothermal developers (and communities hoping for local renewable projects) get clearer, more predictable permitting, cost‑recovery rules, and a formal process for stakeholder input that can speed planning and reduce regulatory uncertainty for projects on federal lands.
Fee revenues are directed to DOI appropriations for permitting and inspection work, which could improve BLM staffing and review capacity (and thus shorten permit timelines) if Congress provides the appropriations.
Small geothermal developers may pay reduced fees for economic hardship or to promote geothermal use, lowering entry barriers and encouraging broader renewable energy deployment.
Geothermal applicants and leaseholders face new permitting fees and reimbursable costs through 2032, which raises developers' project costs and risks reducing private investment or leading companies to pass higher costs onto consumers (potentially increasing energy prices in affected areas).
Stakeholder consultation and potential policy recommendations (including reauthorization of favorable provisions) could bias outcomes toward industry and speed development in ways that increase land‑use and environmental impacts for nearby rural communities.
Collections are discretionary and improvements depend on future appropriations, so expected staffing or program capacity gains at DOI/BLM are uncertain and may not materialize, leaving permitting improvements incomplete.
Based on analysis of 3 sections of legislative text.
Authorizes the Interior Secretary through Sept 30, 2032 to require geothermal lease applicants and holders to reimburse the federal government for reasonable costs to process applications and to inspect and monitor geothermal exploration, drilling, facility construction, operation, and reclamation. Reimbursements are credited to Interior appropriations as offsetting collections, subject to appropriations Acts, and the Secretary may reduce or waive fees for hardship or to promote development. Requires the Secretary to consult stakeholders and deliver a report within five years assessing the effects of the new cost-recovery authority on the BLM geothermal program and recommending whether to reauthorize or amend the authority and related program updates.