Geothermal Cost-Recovery Authority Act of 2025
Geothermal Cost-Recovery Authority Act of 2025 would add a temporary cost-recovery authority to the Geothermal Steam Act of 1970. From the date of enactment through September 30, 2032, the Department of the Interior (Secretary) would be able to require geothermal lease applicants or holders to reimburse the United States for reasonable admin and related costs tied to processing lease applications and approvals, as well as inspecting and monitoring geothermal activities (e.g., exploration, drilling, well work, and site/facility reclamation). Reimbursed amounts would go to discretionary offsetting collections to be used for targeted processing and inspection activities, but only to the extent provided in appropriations acts. The Secretary would consider existing cooperative cost-share agreements and could reduce reimbursements for economic hardship or to promote greater geothermal resource use. The bill also requires a DOE/Interior report within five years assessing the impact on the BLM geothermal program, with recommendations for reauthorization and updates, and it calls for broad stakeholder input. In short, the bill creates a temporary mechanism to shift some costs of permitting, leasing, and oversight for geothermal development from the general Treasury to industry participants, with caps, conditions, and a sunset around 2032, plus a review to guide future policy.
Key Points
- 1Temporary cost-recovery authority: Allows the Secretary to require reimbursements from geothermal lease applicants and holders for specified processing and inspection costs from enactment until September 30, 2032.
- 2What can be charged: Reimbursements cover (A) processing applications and related approvals (leases, operations plans, drilling permits, utilization plans, licenses, etc.) and (B) inspecting and monitoring activities (geophysical exploration, drilling/abandonment of wells, and construction/rec reclamation of well sites or facilities).
- 3Flexibility and protections: The Secretary must consider existing cost-share agreements and may reduce charges if full reimbursement would cause economic hardship or if partial reimbursement better promotes use of geothermal resources.
- 4Use of funds: Reimbursed amounts go to discretionary offsetting collections within the DOI and are available only as provided by appropriations acts, specifically for the processing and inspection activities listed.
- 5Reporting and oversight: Within five years, the Secretary must publish a report (in consultation with the geothermal industry and other stakeholders) assessing the impact on the BLM geothermal program, offering recommendations for reauthorization and updates, and presenting these to Congress with public availability.