[House Report 118-561]
[From the U.S. Government Publishing Office]


118th Congress     }                                      {     Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                      {    118-561

======================================================================



 
                   GEOTHERMAL ENERGY OPPORTUNITY ACT

                                _______
                                

 June 27, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Westerman, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7370]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 7370) to amend the Geothermal Steam Act of 1970 
to establish a deadline for processing applications related to 
geothermal leasing, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Geothermal Energy Opportunity Act'' or 
the ``GEO Act''.

SEC. 2. EFFECT OF PENDING CIVIL ACTIONS ON PROCESSING APPLICATIONS 
                    RELATED TO GEOTHERMAL LEASING.

  Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C. 1003) is 
amended by adding at the end the following:
  ``(h) Effect of Pending Civil Actions on Processing Applications 
Related to Geothermal Leasing.--
          ``(1) Requirement to process applications.--Notwithstanding 
        the existence of any pending civil action that affects an 
        application for a geothermal drilling permit, sundry notice, 
        notice to proceed, right-of-way, or any other authorization 
        under a valid existing geothermal lease, the Secretary shall, 
        unless a United States Federal court vacates or provides 
        injunctive relief for the applicable geothermal lease, 
        geothermal drilling permit, sundry notice, notice to proceed, 
        right-of-way, or other authorization, approve and issue, or 
        deny, each such application not later than 60 days after 
        completing all requirements under applicable Federal laws and 
        regulations, including the National Environmental Policy Act of 
        1969, the Endangered Species Act of 1973, and division A of 
        subtitle III of title 54, United States Code.
          ``(2) No new authority for federal courts.--Nothing in this 
        subsection shall be construed as modifying any existing 
        authority of a Federal court to vacate or provide injunctive 
        relief for a geothermal lease, geothermal drilling permit, 
        sundry notice, notice to proceed, right-of-way, or other 
        authorization.
          ``(3) Definition of authorization.--In this subsection, the 
        term `authorization' means any license, permit, approval, 
        finding, determination, or other administrative decision issued 
        by a Federal agency, or any interagency consultation, that is 
        required or authorized under Federal law or regulations in 
        order to site, construct, reconstruct, or commence operations 
        of a geothermal project administered by a Federal agency.''.

                       Purpose of the Legislation

    The purpose of H.R. 7370 is to amend the Geothermal Steam 
Act of 1970 to establish a deadline for processing applications 
related to geothermal leasing.

                  Background and Need for Legislation

    H.R. 7370 would address instances where the Department of 
the Interior (DOI) voluntarily holds up projects that already 
have a Record of Decision (ROD) due to DOI's fear of 
litigation. H.R. 7370 would require DOI to continue processing 
drilling permits and other authorizations within 60 days after 
National Environmental Policy Act (NEPA), Endangered Species 
Act (ESA) and National Historic Preservation Act (NHPA) review 
is complete unless a United States Federal court vacates the 
underlying lease.

                            Committee Action

    H.R. 7370 was introduced on February 15, 2024, by 
Representative John Curtis (R-UT). The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Energy and Mineral Resources. On March 6, 2024, 
the Subcommittee on Energy and Mineral Resources held a hearing 
on the bill. On April 16, 2024, the Committee on Natural 
Resources met to consider the bill. The Subcommittee on Energy 
and Mineral Resources was discharged from further consideration 
of H.R. 7370 by unanimous consent. Representative John Curtis 
(R-UT) offered an Amendment in the Nature of a Substitute 
designated Curtis ANS_01. The Amendment in the Nature of a 
Substitute was agreed to by unanimous consent. The bill, as 
amended, was ordered favorably reported to the House of 
Representatives by unanimous consent.

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Energy and Mineral Resources 
held on March 6, 2024.

                      Section-by-Section Analysis


Section 1. Short title

    Designates the bill as the ``Geothermal Energy Opportunity 
Act'' or the ``GEO Act''.

Section 2. Effect of Pending Civil Actions on Processing Applications 
        Related to Geothermal Leasing

    Section 2 would amend Section 4 of the Geothermal Steam Act 
of 1970 by including a new subsection (h) titled ``Effect of 
Pending Civil Actions on Processing Applications Related to 
Geothermal Leasing.'' The new subsection mandates that the 
Secretary of the Interior shall approve and issue, or deny, 
each application for a geothermal drilling permit, sundry 
notice, notice to proceed, right-of-way, or any other 
authorization under a valid existing geothermal lease unless a 
U.S. Federal court vacates or provides injunctive relief for 
the underlying geothermal lease. The Secretary would have 60 
days following the completion of reviews under NEPA, ESA and 
NHPA to process each application or authorization. The new 
subsection also clarifies that the new language does not impact 
a Federal court's ability to vacate or provide injunctive 
relief while also providing a definition of authorization.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
Pursuant to clause 3(c)(2) of House rule XIII and section 
308(a) of the Congressional Budget Act of 1974, and pursuant to 
clause 3(c)(3) of House rule XIII and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received from the Director of the Congressional Budget 
Office a budgetary analysis and a cost estimate of this bill.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to amend the Geothermal Steam Act of 
1970 to establish a deadline for processing applications 
related to geothermal leasing.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           Existing Programs

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                Preemption of State, Local or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                      GEOTHERMAL STEAM ACT OF 1970



           *       *       *       *       *       *       *
SEC. 4. LEASING PROCEDURES.

  (a) Nominations.--The Secretary shall accept nominations of 
land to be leased at any time from qualified companies and 
individuals under this Act.
  (b) Competitive Lease Sale Required.--
          (1) In general.--Except as otherwise specifically 
        provided by this Act, all land to be leased that is not 
        subject to leasing under subsection (c) shall be leased 
        as provided in this subsection to the highest 
        responsible qualified bidder, as determined by the 
        Secretary.
          (2) Competitive lease sales.--The Secretary shall 
        hold a competitive lease sale at least once every 2 
        years for land in a State that has nominations pending 
        under subsection (a) if the land is otherwise available 
        for leasing.
          (3) Lands subject to mining claims.--Lands that are 
        subject to a mining claim for which a plan of 
        operations has been approved by the relevant Federal 
        land management agency may be available for 
        noncompetitive leasing under this section to the mining 
        claim holder.
          (4) Land subject to oil and gas lease.--Land under an 
        oil and gas lease issued pursuant to the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) or the Mineral 
        Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) 
        that is subject to an approved application for permit 
        to drill and from which oil and gas production is 
        occurring may be available for noncompetitive leasing 
        under subsection (c) by the holder of the oil and gas 
        lease--
                  (A) on a determination that geothermal energy 
                will be produced from a well producing or 
                capable of producing oil and gas; and
                  (B) to provide for the coproduction of 
                geothermal energy with oil and gas.
  (c) Noncompetitive Leasing.--The Secretary shall make 
available for a period of 2 years for noncompetitive leasing 
any tract for which a competitive lease sale is held, but for 
which the Secretary does not receive any bids in a competitive 
lease sale.
  (d) Pending Lease Applications.--
          (1) In general.--It shall be a priority for the 
        Secretary, and for the Secretary of Agriculture with 
        respect to National Forest Systems land, to ensure 
        timely completion of administrative actions, including 
        amendments to applicable forest plans and resource 
        management plans, necessary to process applications for 
        geothermal leasing pending on the date of enactment of 
        this subsection. All future forest plans and resource 
        management plans for areas with high geothermal 
        resource potential shall consider geothermal leasing 
        and development.
          (2) Administration.--An application described in 
        paragraph (1) and any lease issued pursuant to the 
        application--
                  (A) except as provided in subparagraph (B), 
                shall be subject to this section as in effect 
                on the day before the date of enactment of this 
                paragraph; or
                  (B) at the election of the applicant, shall 
                be subject to this section as in effect on the 
                effective date of this paragraph.
  (e) Leases Sold as a Block.--If information is available to 
the Secretary indicating a geothermal resource that could be 
produced as 1 unit can reasonably be expected to underlie more 
than 1 parcel to be offered in a competitive lease sale, the 
parcels for such a resource may be offered for bidding as a 
block in the competitive lease sale.
  (f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify 
areas in which the land to be leased under this Act exclusively 
for direct use of geothermal resources, without sale for 
purposes other than commercial generation of electricity, may 
be leased to any qualified applicant that first applies for 
such a lease under regulations issued by the Secretary, if the 
Secretary--
          (1) publishes a notice of the land proposed for 
        leasing not later than 90 days before the date of the 
        issuance of the lease;
          (2) does not receive during the 90-day period 
        beginning on the date of the publication any nomination 
        to include the land concerned in the next competitive 
        lease sale; and
          (3) determines there is no competitive interest in 
        the geothermal resources in the land to be leased.
  (g) Area Subject to Lease for Direct Use.--
          (1) In general.--Subject to paragraph (2), a 
        geothermal lease for the direct use of geothermal 
        resources shall cover not more than the quantity of 
        acreage determined by the Secretary to be reasonably 
        necessary for the proposed use.
          (2) Limitations.--The quantity of acreage covered by 
        the lease shall not exceed the limitations established 
        under section 7.
  (h) Effect of Pending Civil Actions on Processing 
Applications Related to Geothermal Leasing.--
          (1) Requirement to process applications.--
        Notwithstanding the existence of any pending civil 
        action that affects an application for a geothermal 
        drilling permit, sundry notice, notice to proceed, 
        right-of-way, or any other authorization under a valid 
        existing geothermal lease, the Secretary shall, unless 
        a United States Federal court vacates or provides 
        injunctive relief for the applicable geothermal lease, 
        geothermal drilling permit, sundry notice, notice to 
        proceed, right-of-way, or other authorization, approve 
        and issue, or deny, each such application not later 
        than 60 days after completing all requirements under 
        applicable Federal laws and regulations, including the 
        National Environmental Policy Act of 1969, the 
        Endangered Species Act of 1973, and division A of 
        subtitle III of title 54, United States Code.
          (2) No new authority for federal courts.--Nothing in 
        this subsection shall be construed as modifying any 
        existing authority of a Federal court to vacate or 
        provide injunctive relief for a geothermal lease, 
        geothermal drilling permit, sundry notice, notice to 
        proceed, right-of-way, or other authorization.
          (3) Definition of authorization.--In this subsection, 
        the term ``authorization'' means any license, permit, 
        approval, finding, determination, or other 
        administrative decision issued by a Federal agency, or 
        any interagency consultation, that is required or 
        authorized under Federal law or regulations in order to 
        site, construct, reconstruct, or commence operations of 
        a geothermal project administered by a Federal agency.

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