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<dc:title>119 S4605 IS: Geothermal Cost-Recovery Authority Act of 2026</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2026-05-20</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">II</distribution-code><congress>119th CONGRESS</congress><session>2d Session</session><legis-num>S. 4605</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20260520">May 20, 2026</action-date><action-desc><sponsor name-id="S432">Mr. Gallego</sponsor> introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSEG00">Committee on Energy and Natural Resources</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To amend the Geothermal Steam Act of 1970 to provide cost-recovery authority for the Department of the Interior.</official-title></form><legis-body style="OLC" display-enacting-clause="yes-display-enacting-clause" id="H2164C9E180664F35B2F81DE36D9D080A"><section section-type="section-one" id="H6279B4BB1A164768BA5185114ECB3E6C"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Geothermal Cost-Recovery Authority Act of 2026</short-title></quote>.</text></section><section id="H8ADD48E2F3094476A3A7FE4F19DE99B8"><enum>2.</enum><header>Cost recovery from geothermal leasing, permitting, and inspections</header><text display-inline="no-display-inline">Section 6 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1005">30 U.S.C. 1005</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8EC254512878409C8E6905FFB21E46F2"><subsection id="H154477109C63443197F459614A64C630"><enum>(j)</enum><header>Cost recovery</header><paragraph commented="no" id="H141E29048347495CAB1D85C43B10FEE9"><enum>(1)</enum><header>In general</header><text>During the period that begins on the date of enactment of this subsection and ends September 30, 2032, the Secretary may require an applicant for, or a holder of, a geothermal lease to reimburse the United States for all reasonable administrative and other costs incurred by the United States from—</text><subparagraph commented="no" id="HF22F2F8C0FD84BB59D604C4AA1404CFF"><enum>(A)</enum><text display-inline="yes-display-inline">processing the application for the geothermal lease, including any application for an operations plan, geothermal drilling permit, utilization plan, site license, facility construction permit, commercial use permit, and any other approval associated with a geothermal lease; and</text></subparagraph><subparagraph commented="no" id="HD72A8709598F4897BA91A14359690982"><enum>(B)</enum><text display-inline="yes-display-inline">inspecting and monitoring—</text><clause commented="no" id="HA6BD411019844040834384A87199D97D"><enum>(i)</enum><text>geophysical exploration activities;</text></clause><clause commented="no" id="H90B8A75EDEB04C0F8BD0D0FD3B0EA64B"><enum>(ii)</enum><text display-inline="yes-display-inline">the drilling, plugging, and abandonment of wells; and</text></clause><clause commented="no" id="H1E3204E2E7E5494399A4DABF54144970"><enum>(iii)</enum><text display-inline="yes-display-inline">the construction, operation, termination, and reclamation of any well site or facility for the utilization of geothermal resources pursuant to the geothermal lease.</text></clause></subparagraph></paragraph><paragraph commented="no" id="HD178824A6BAF47B09BDD6E1D6AD88A1F"><enum>(2)</enum><header>Considerations</header><text display-inline="yes-display-inline">In determining whether to require reimbursement under paragraph (1), the Secretary shall consider whether there is in existence a cooperative cost share agreement between the United States and the holder of a geothermal lease.</text></paragraph><paragraph commented="no" id="H1865ECFB0C134376B51F6CF9DDF9668B"><enum>(3)</enum><header>Adjustments</header><text>The Secretary may reduce the amount to be reimbursed under paragraph (1) if the Secretary determines—</text><subparagraph commented="no" id="H4D0C118047EB4BF1AEAE40043A082CEA"><enum>(A)</enum><text>that full reimbursement would impose an economic hardship on the applicant; or</text></subparagraph><subparagraph commented="no" id="HC0133ADFAB884E6E95C896BEFCA4C611"><enum>(B)</enum><text>that a less than full reimbursement is necessary to promote the greatest use of geothermal resources.</text></subparagraph></paragraph><paragraph commented="no" id="HE1ED46C5C450484989E214F0C4842115"><enum>(4)</enum><header>Use</header><text>The amounts reimbursed under this subsection shall be credited to the currently applicable appropriation, account, or fund of the Department of the Interior as discretionary offsetting collections, and shall be available only to the extent provided in advance in appropriations Acts for—</text><subparagraph commented="no" id="H3EAB0A550C0D417783761128AEC88B78"><enum>(A)</enum><text display-inline="yes-display-inline">processing the application for geothermal leases, including any application for operations plans, geothermal drilling permits, utilization plans, site licenses, facility construction permits, commercial use permits, and any other approval associated with geothermal leases; and</text></subparagraph><subparagraph commented="no" id="HCD951848F1E54D3D9867674DBA63D04D"><enum>(B)</enum><text>inspecting and monitoring—</text><clause commented="no" id="H852F0AF58FF34EDB8D2B4D1B1F02AB12"><enum>(i)</enum><text>geophysical exploration activities;</text></clause><clause commented="no" id="H4485FB082922412BA866D5FE78A2854A"><enum>(ii)</enum><text>the drilling, plugging, and abandonment of wells; and</text></clause><clause commented="no" id="HC839A680F0914DE9BDC6F4CF8178BCD4"><enum>(iii)</enum><text>the construction, operation, termination, and reclamation of any well site or facility for the utilization of geothermal resources pursuant to geothermal leases.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section commented="no" id="HC916817C2CD447BF891D87549D8F4FA2"><enum>3.</enum><header>Report</header><subsection id="H6474A5B1F227491091A64208E27F3F22"><enum>(a)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 5 years after the date of enactment of this Act, the Secretary of the Interior, in consultation with the geothermal industry and other stakeholders, shall submit to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate, and make publicly available on the website of the Department of the Interior, a report that includes—</text><paragraph id="H3528DB8DB45E4E38BD3FC8C3A71EA0B9"><enum>(1)</enum><text>an assessment of how the amendments made by section 2 of this Act affected the Bureau of Land Management’s geothermal program;</text></paragraph><paragraph id="H7985097C5BA047E383B208DBA99DA82E"><enum>(2)</enum><text>any recommendations for reauthorization of section 6(j) of the Geothermal Steam Act of 1970, as added by this Act; and</text></paragraph><paragraph id="H460E5917709B45D3A9833FDBC1A964B0"><enum>(3)</enum><text>any other recommendations for updates to such section and the Bureau of Land Management’s geothermal program.</text></paragraph></subsection><subsection id="H23C18ACD57B14E34AE22C9E22D7B49D7"><enum>(b)</enum><header>Considerations</header><text display-inline="yes-display-inline">In developing the report required in subsection (a), the Secretary of the Interior shall solicit facts or information from the geothermal industry and other stakeholders.</text></subsection></section></legis-body></bill>

