New Geothermal Bill Lets Feds Charge Companies for Lease Processing and Inspections, Effective Immediately

The Geothermal Cost-Recovery Authority Act of 2025 essentially allows the Department of the Interior to bill companies for the costs associated with processing geothermal leases and conducting inspections. This means that if you're a company looking to develop geothermal energy resources on federal land, you'll now be footing the bill for the government's administrative work and oversight, including things like processing applications, issuing permits, and monitoring your operations (SEC. 2).

Paying the Piper: How the New Geothermal Rules Work

The core change is that the Secretary of the Interior can now charge geothermal lease applicants and holders for a range of costs. This includes everything from processing lease applications (like the initial paperwork) to inspecting and monitoring activities related to those leases. The bill specifically mentions costs tied to operation plans, drilling permits, site licenses, and even the construction of facilities (SEC. 2). Think of it like this: if you're building a geothermal power plant, you're now paying not just for the construction, but also for the government's time spent reviewing your plans and making sure you're following the rules. The fees collected will go directly to the Department of the Interior and will be available as provided in advance in appropriations acts.

Real-World Rollout: Potential Impacts and Paperwork

For companies in the geothermal industry, this means a potential increase in upfront costs. Imagine a small geothermal startup trying to get off the ground – they'll now face additional expenses for things that were previously covered by the government. However, the bill does include a provision allowing the Secretary to reduce the reimbursement amount if it would cause "economic hardship" or if a lower amount is needed to encourage geothermal resource use (SEC. 2). There's also a reporting requirement built in. Within five years, the Secretary of the Interior must submit a report to Congress and the public, detailing the impact of these changes and offering recommendations for the future of the geothermal program (SEC. 3). This report will include input from the geothermal industry and other stakeholders.

Challenges and Connections

One potential challenge is ensuring that the fees charged are reasonable and don't stifle innovation in the geothermal sector. It is possible that the Secretary could set reimbursement amounts excessively high. The bill also raises questions about how these new costs might affect the competitiveness of geothermal energy compared to other energy sources. It's also worth noting that this bill amends the existing Geothermal Steam Act of 1970, adding a new section (6(j)) that grants this cost-recovery authority. Ultimately, time will reveal the longer-term implications, but this bill will likely affect the bottom line for many companies.