Geothermal bill locks in faster permits, lower public royalties
S. 4795 — FREEDOM Act · Filed by Tom Cotton (R-AR) · 1 cosponsor · Introduced Jun 16, 2026 · Referred to committee
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What it does
This bill amends federal geothermal energy law to accelerate permitting and reduce legal obstacles to geothermal development on federal lands. It requires the Interior Department to approve or deny geothermal permits within 60 days of completing environmental review, even if lawsuits are pending; establishes a Geothermal Ombudsman and task force to streamline permitting; allows the government to recover administrative costs from applicants; and lowers royalty rates for geothermal electricity generation in the first 10 years of operation. The bill benefits geothermal developers by removing delays and reducing their financial obligations to the public.
Why we flagged it
The bill's operative mechanism is twofold: (1) expedited permitting with judicial constraints, and (2) reduced royalty rates for geothermal electricity. Both provisions directly benefit geothermal developers and operators. The title 'FREEDOM Act' frames this as deregulation, but the core function is industry-favorable permitting reform paired with a revenue concession to the sector.
What the text implies
- The 60-day approval mandate (Section 301(2)) applies 'notwithstanding any pending civil action,' effectively insulating permits from legal challenge during the approval window. Courts retain authority to vacate after issuance, but the bill creates a race condition favoring permit issuance before litigation can be resolved.
- Royalty rates drop to 1–2.5% for the first 10 years of geothermal electricity generation (Section 305), compared to historical rates. This represents a direct reduction in public revenue from federal geothermal resources, with no offsetting public benefit identified in the text.
The full analysis lists 5 implications of this text.
Who stands to gain
geothermal energy developers and operators; geothermal project owners and leaseholders; renewable energy companies with geothermal portfolios