Interior gets power to charge geothermal firms for permitting—but rules stay vague
H.R. 398 — Geothermal Cost-Recovery Authority Act of 2025 · Filed by Alexandria Ocasio-Cortez (D-NY) · Introduced Jan 14, 2025 · Reported out
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What it does
This bill allows the Department of the Interior to require geothermal lease applicants and holders to reimburse the federal government for administrative costs of processing applications, issuing permits, and inspecting geothermal operations through 2032. The Secretary may reduce or waive reimbursement if it would cause economic hardship or if lower costs would promote greater use of geothermal resources. Reimbursed amounts are credited back to Interior's budget for geothermal program operations.
Why we flagged it
The bill's core function is to authorize Interior to recover administrative and inspection costs from geothermal lease applicants and operators, shifting the fiscal burden from the general taxpayer to the industry. This is a straightforward cost-allocation reform, not a subsidy or deregulation.
What the text implies
- Cost-recovery authority may disproportionately burden smaller or early-stage geothermal developers relative to large operators, potentially consolidating the market toward larger firms with greater capital to absorb permitting costs.
- The Secretary's discretionary authority to reduce reimbursement 'to promote the greatest use of geothermal resources' creates an undefined standard that could be applied inconsistently, introducing regulatory uncertainty for applicants.
The full analysis lists 4 implications of this text.
Who stands to gain
geothermal energy developers and operators; large-scale geothermal lease holders