H.R.398 - Geothermal Cost-Recovery Authority Act of 2025 (119th Congress)
Summary
H.R. 398, the Geothermal Cost-Recovery Authority Act of 2025, amends the Geothermal Steam Act of 1970. It allows the Department of the Interior to recover costs associated with geothermal leasing, permitting, and inspections. This cost-recovery mechanism is set to expire on September 30, 2032.
The bill mandates a report to Congress within five years, assessing the impact of these amendments on the Bureau of Land Management's geothermal program. The report will also include recommendations for reauthorization or updates to the program.
The bill aims to make geothermal energy development more financially sustainable for the government by shifting some costs to lease applicants and holders.
Expected Effects
The primary effect of this bill will be to shift some of the financial burden of geothermal energy development oversight from taxpayers to the geothermal industry. This could lead to increased costs for geothermal energy companies.
It may also incentivize the Department of the Interior to more efficiently manage its geothermal programs, as it will have a direct financial stake in the industry's activity. The report requirement ensures that the impact of the cost-recovery measures will be assessed and potentially adjusted in the future.
Ultimately, this could lead to more sustainable geothermal energy development by ensuring that the government has the resources to properly oversee the industry.
Potential Benefits
- Reduced burden on taxpayers: Cost recovery shifts expenses to geothermal lease holders.
- Improved program efficiency: Incentivizes the Department of the Interior to manage geothermal programs effectively.
- Sustainable geothermal development: Ensures adequate resources for government oversight.
- Increased transparency: The required report provides public insight into the program's impact.
- Potential for increased geothermal energy production: By streamlining processes and ensuring adequate funding for oversight.
Potential Disadvantages
- Increased costs for geothermal companies: Cost recovery may make geothermal projects less economically viable.
- Potential for economic hardship: Full reimbursement may burden smaller applicants, despite provisions for adjustments.
- Limited scope and duration: The cost-recovery authority is temporary, expiring in 2032.
- Potential for delays: Processing applications and inspections could be slowed down by cost-recovery procedures.
- Uncertain impact: The actual effect on geothermal development is dependent on the Secretary's implementation and future appropriations.
Constitutional Alignment
This bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce and manage federal lands. The cost-recovery mechanism is a means of regulating geothermal resource development on federal lands.
The bill does not appear to infringe on any specific constitutional rights or freedoms. The requirement for a report to Congress ensures accountability and oversight, which is consistent with the principles of representative government.
However, the delegation of authority to the Secretary of the Interior to determine reimbursement amounts and make adjustments could be subject to scrutiny under the non-delegation doctrine, which requires Congress to provide clear standards for administrative action.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).