Geothermal Cost-Recovery Authority Act of 2026

This bill would authorize the Department of the Interior to collect fees from geothermal lease applicants and holders through September 30, 2032, to recover costs associated with processing drilling permits and monitoring exploration activities. The Department would have the discretion to reduce these fees in cases of economic hardship or to encourage the development of geothermal resources. Additionally, the bill would require a report to Congress within five years evaluating how these fees have impacted the federal geothermal leasing program.

This bill directly affects the Department of the Interior, which would gain the authority to collect and utilize fees for processing and monitoring geothermal activities. It also impacts applicants for and holders of geothermal leases on federal land, who may be required to reimburse the federal government for costs related to drilling permits, exploration, and reclamation. Additionally, the bill affects Congress, which would receive an assessment report from the Department of the Interior regarding the impact of these fees on the geothermal leasing program.

• Expansion of cost-recovery fee authority. Amends the Geothermal Steam Act of 1970 to authorize the Department of the Interior to collect fees from geothermal lease applicants and holders through September 30, 2032. These fees are intended to reimburse the federal government for costs related to processing lease applications and drilling permits.
• Inspection and monitoring reimbursements. Allows the Department of the Interior to require leaseholders to reimburse the United States for the costs of inspecting and monitoring geothermal exploration, development, and reclamation activities.
• Fee reduction and economic hardship provisions. Grants the Department of the Interior the authority to reduce fee amounts if full reimbursement would cause economic hardship for the applicant or if a reduction is necessary to encourage the use of geothermal resources.
• Restricted use of collected funds. Specifies that collected fees may only be used, subject to appropriations acts, for processing geothermal lease applications and conducting oversight of related development activities.
• Congressional reporting requirement. Requires the Department of the Interior to submit a report to Congress within five years of enactment assessing the impact of the fees on the geothermal leasing program and providing recommendations for updates.

The Department of the Interior's authority to collect fees under this bill remains in effect through September 30, 2032. Additionally, the Department must submit a report to Congress assessing the fee program within five years of the bill's enactment.

This bill expands the Geothermal Steam Act of 1970 by granting the Department of the Interior new authority to collect cost-recovery fees from geothermal lease applicants and holders through September 30, 2032. It modifies existing federal geothermal leasing procedures by allowing the government to be reimbursed for application processing, site inspections, and monitoring activities.

The bill aims to authorize the Department of the Interior to recover costs from geothermal leaseholders for processing applications and monitoring exploration activities through 2032. This authority is intended to support the administration of the geothermal leasing program while providing flexibility to reduce fees to prevent economic hardship or promote the use of geothermal resources.