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S 4605

Geothermal Cost-Recovery Authority Act of 2026

119th Congress Introduced by Ruben Gallego

The bill allows the Interior Department to require geothermal lease applicants or holders to reimburse agency costs for processing, inspecting, and monitoring geothermal activities

Introduced in Senate
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Bill Summary · S 4605

Overview

  • Bill: S.4605 (Geothermal Cost-Recovery Authority Act of 2026)
  • Session: 119th Congress, 2nd Session
  • Introduced: May 20, 2026 by Sen. Gallego; co-sponsored by Sen. Gallego
  • Purpose: Amend the Geothermal Steam Act of 1970 to establish a cost-recovery authority for the Department of the Interior (DOI) related to geothermal leasing, permitting, and inspections.

Main purpose and intent

  • Authorizes the Secretary of the Interior to require reimbursement from geothermal lease applicants or holders for reasonable administrative and other costs incurred by the United States in processing geothermal leases and related approvals, as well as in inspecting and monitoring geothermal activities.
  • Aims to offset DOI costs associated with geothermal program activities during a defined period (through September 30, 2032).

Key provisions and changes

  • Section 6 of the Geothermal Steam Act of 1970 is amended to add new subsection (j) “OST RECOURY” (cost recovery).
  • Cost-recovery authority (Section 6(j)(1)):
    • Effective period: From the date of enactment until September 30, 2032.
    • Reimbursement eligible activities:
    • Processing geothermal lease applications and related approvals, including operations plans, drilling permits, utilization plans, site licenses, facility construction permits, commercial use permits, and other approvals.
    • Inspection and monitoring activities, including:
      • Geophysical exploration
      • Drilling, plugging, and abandonment of wells
      • Construction, operation, termination, and reclamation of any well site or facility for geothermal resources under a lease
  • Considerations for requiring reimbursement (Section 6(j)(2)):
    • Secretary must consider whether a cooperative cost-share agreement exists with the leaseholder.
  • Adjustments to reimbursement (Section 6(j)(3)):
    • Secretary may reduce reimbursement if:
    • Full reimbursement would cause economic hardship for the applicant; or
    • Less-than-full reimbursement is needed to promote the greatest use of geothermal resources.
  • Use of reimbursed funds (Section 6(j)(4)):
    • Reimbursements credited to the applicable DOI appropriation, account, or fund as discretionary offsetting collections.
    • Funds are available only to the extent provided in advance by appropriations acts for:
    • Processing geothermal lease applications and related approvals
    • Inspecting and monitoring related activities (geophysical exploration, drilling/abandonment, and site/facility reclamation)
  • Section 3 – Report requirement:
    • Not later than five years after enactment, DOI must submit a report to House Natural Resources and Senate Energy and Natural Resources Committees, and make it publicly available.
    • The report must cover:
    • An assessment of how the amendments affected BLM’s geothermal program
    • Recommendations for possible reauthorization of section 6(j) of the Geothermal Steam Act of 1970 and any updates to BLM’s geothermal program
    • Other recommendations for updates to the program
    • DOI must solicit information from the geothermal industry and other stakeholders in developing the report.

Who/what is affected

  • Geothermal lease applicants and current holders under the Geothermal Steam Act of 1970.
  • The Department of the Interior, particularly the Bureau of Land Management (BLM) and related program offices administering geothermal leasing, permitting, and inspections.
  • The geothermal industry and associated stakeholders (for the purpose of the required five-year report and potential changes).

Procedural and timeline considerations

  • Effective window for cost-recovery: From the date of enactment to September 30, 2032.
  • Reimbursement decisions are subject to:
    • Availability of appropriations and pre-authorization within those appropriations
    • Consideration of cooperative cost-share agreements and potential economic hardship or the need to maximize resource use
  • Reporting requirement: A comprehensive DOI report due within five years of enactment, with public dissemination.
  • Legislative path: As introduced, referred to the Senate Committee on Energy and Natural Resources; potential subsequent actions would include committee consideration, potential amendments, and floor passage, and then alignment with House actions for final passage.

Potential impact and notes

  • Creates a mechanism to offset federal costs of administering geothermal programs by charging fees to applicants/holders.
  • Could impact project economics for geothermal developers, especially smaller applicants if reimbursements are substantial, though adjustments exist for hardship and to encourage resource development.
  • The sunset (or review point) is 2032, after which reauthorization may be required.
  • Public transparency via the required DOI report and ongoing industry engagement.

Compiled from official sources — confirm details with the bill’s official record.

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