HR 7422: Geothermal Cost-Recovery Authority Act of 2024

HR 7422 in plain English: This bill expands the Geothermal Steam Act of 1970 to allow the Department of the Interior to collect fees from geothermal lease holders on federal land through September 30, 2031. The fees would cover costs of processing lease applications and monitoring exploration and development activities, with collected funds used exclusively for those same purposes. Interior may reduce fees in cases of economic hardship or to encourage greater use of geothermal resources.

Stated purpose

This bill gives the Department of the Interior the authority to charge geothermal lease holders fees to cover the government's costs of processing their permits and monitoring their activities on federal land, through September 30, 2031.

Key points

• Authorizes Interior to charge geothermal lease holders fees for processing applications and monitoring activities through September 30, 2031.
• Collected fees must be used specifically for geothermal lease processing and monitoring activities.
• Interior can reduce fees if full payment would cause economic hardship or discourage geothermal resource development.
• Requires Interior to submit a report to Congress within five years assessing how the fees affect the geothermal leasing program.

Arguments supporters make

• Companies that profit from using public land resources should pay the government's costs of reviewing and overseeing their operations, rather than passing those costs to taxpayers.
• Dedicated fee revenue could give the Bureau of Land Management more reliable funding to process permits faster and monitor sites more thoroughly, benefiting the geothermal industry itself.
• Built-in hardship waivers and a five-year review ensure the fee system can be adjusted if it discourages geothermal development or harms smaller operators.

Arguments opponents make

• Adding new fees on top of existing costs could make geothermal projects less financially attractive compared to other energy sources, slowing development of a renewable energy option.
• Small or startup geothermal companies may struggle to absorb unpredictable reimbursement demands even with hardship provisions, potentially concentrating the industry among larger players.
• The authority expires in 2031 and relies on future appropriations to actually use the collected funds, creating uncertainty about whether the fees will meaningfully improve agency capacity.

Tradeoffs

Shifting administrative costs from taxpayers to geothermal leaseholders reduces public expense but may raise the financial burden on companies developing geothermal energy, potentially slowing growth in that sector.

Current status in Congress: Passed House.

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