H.R. 398: Geothermal Cost-Recovery Authority Act of 2025

This bill, known as the Geothermal Cost-Recovery Authority Act of 2025, proposes several key changes to the management and funding of geothermal resource development in the United States. The main objective is to amend the Geothermal Steam Act of 1970 to establish a framework for recovering costs incurred by the government when processing applications for geothermal leases and conducting necessary inspections related to geothermal exploration and utilization.

Cost Recovery Structure

The bill allows the Secretary of the Interior to require that applicants for geothermal leases reimburse the government for reasonable administrative costs. This covers costs related to:

• Processing applications for geothermal leases and associated permits.
• Inspecting and monitoring activities such as:
• Geophysical exploration.
• Drilling, plugging, and abandoning wells.
• Constructing, operating, terminating, and reclaiming well sites or facilities.

Considerations for Cost Recovery

In deciding whether to require reimbursement, the Secretary of the Interior will take into account:

• Existing cooperative cost-sharing agreements between the United States and the leaseholder.
• Any economic hardship that requiring full reimbursement might impose on the applicant.
• The potential need for reduced reimbursement to encourage greater use of geothermal resources.

Use of Reimbursement Funds

Funds collected through reimbursements will be credited to the Department of the Interior’s budget. These funds will specifically be allocated for costs associated with:

• Processing applications for geothermal leases and permits.
• Conducting inspections and monitoring activities related to geothermal resource development.

Reporting Requirements

Within five years of the bill's enactment, the Secretary of the Interior must provide a report assessing the impact of these amendments on geothermal program management. This report should include:

• An evaluation of how the new cost recovery provisions have affected the Bureau of Land Management’s geothermal program.
• Recommendations regarding potential reauthorization of the new cost recovery authority.
• Suggestions for further updates or improvements to the geothermal management practices based on stakeholder input.

Consultation with Stakeholders

The Secretary is required to consult with the geothermal industry and other relevant stakeholders while developing the report to gather diverse perspectives and factual information.

Duration of Provisions

The cost recovery provisions outlined in this bill would remain in effect until September 30, 2032, allowing for an evaluation of their effectiveness within this timeframe.

Relevant Companies

• CNRG - This company may face impacts due to increased costs related to geothermal leasing and operations as a result of the new reimbursement requirements.
• CNX - As a company involved in energy production, changes to geothermal resource management could affect operational costs and strategies.
• GEOS - Involved in geothermal energy, the company may have to adjust to new cost structures for leasing and compliance.