Congress mandates annual geothermal leases, compresses environmental review

What it does

This bill amends the Geothermal Steam Act to require the federal government to hold geothermal lease sales every year (instead of at discretion), mandate replacement sales if any sale is canceled or delayed, and require the Interior Department to offer at least 75% of nominated parcels for lease unless it provides written justification. It also imposes strict 30-day deadlines for the Interior Department to review geothermal drilling permit applications and issue decisions, with a 10-day final deadline after applicants provide missing information.

Why we flagged it

The bill's operative mechanism is a mandatory annual leasing schedule and compressed permitting timelines designed to reduce regulatory friction and accelerate geothermal development on federal lands. The renewable-energy framing masks a deregulatory intent that benefits lease holders and drilling operators.

What the text implies

• The 75% mandatory lease offering removes discretionary environmental screening at the lease-nomination stage; the 25% carve-out requires written justification, shifting burden of proof from industry to regulators and creating litigation risk for Interior if justifications are challenged.
• The 30-day permit-review deadline is tighter than NEPA's standard 45-day deadline for environmental assessment; if NEPA review is not complete within 30 days, the bill requires deferral with a 10-day final deadline, effectively capping total review time and pressuring agencies to issue permits before full environmental analysis.
• Replacement-sale requirement means a single canceled lease sale (due to environmental concern, litigation, or administrative issue) triggers a mandatory re-sale in the same year, eliminating the option to defer leasing pending further review.
• The bill does not require competitive bidding or price floors; mandatory annual sales may depress lease values and reduce federal revenue, shifting economic benefit to successful bidders rather than the public treasury.
• Tight deadlines and mandatory lease offerings may reduce opportunities for public comment and tribal consultation, which are nominally required under NEPA but may be compressed or waived if agencies cannot meet statutory deadlines.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill accelerates geothermal development on federal lands by mandating annual lease sales and tight permitting timelines, reducing the Interior Department's ability to conduct thorough environmental review or deny leases on environmental grounds. While geothermal energy is renewable, the bill's mechanism prioritizes speed and lease volume over environmental protection and public input, shifting power from regulators to industry applicants.

Who stands to gain

• geothermal energy developers and operators
• oil and gas companies with geothermal divisions
• drilling contractors and equipment suppliers
• energy infrastructure investors

Named in the bill

Department of Interior, Geothermal Steam Act of 1970, National Environmental Policy Act (NEPA), geothermal lease holders, geothermal drilling permit applicants

Where it stands

4 cosponsors: 3 Republicans, 1 Democrats.

• Feb 27, 2025 — Introduced · Congress.gov: “Introduced in House”
• Feb 27, 2025 — Referred to House Committee on Natural Resources and Senate Committee on Energy and Natural Resources · Congress.gov: “Referred to the House Committee on Natural Resources”
• Dec 16, 2025 — Hearing held · Congress.gov: “Subcommittee Hearings Held”
• Apr 21, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Apr 21, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported in the Nature of a Substitute by Unanimous Consent”
• Jun 2, 2026 — Passed the House · Congress.gov: “On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3758-3759)”
• Jun 2, 2026 — Floor vote scheduled · Congress.gov: “Mr. Westerman moved to suspend the rules and pass the bill, as amended”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

8 lobbying clients named this bill on 12 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $22,430,000 in lobbying spend. A filing names 21 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 88% of bills with at least one filing.

Russ Fulcher, the sponsor, reported $350,070 in PAC receipts in the 2026 cycle.

• Chamber of Commerce of the U.S.A. — $16,950,000 on 1 filing
• Fervo Energy Company — $2,220,000 on 4 filings
• Chevron U.S.A. Inc. — $1,670,000 on 1 filing
• Americans for Prosperity — $660,000 on 1 filing
• Corporate Energy Buyers Association — $380,000 on 2 filings

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.