Overview
Title
To amend the Geothermal Steam Act of 1970 to provide cost-recovery authority for the Department of the Interior.
ELI5 AI
In this bill, they're trying to make a rule where people who want to use the earth's steam and heat to make energy might have to pay the government back for the time and resources it takes to look after those activities. They say they might charge less if the person has money troubles or if it will help more people use this kind of energy.
Summary AI
H. R. 398 proposes changes to the Geothermal Steam Act of 1970, allowing the Department of the Interior to recover costs for processing applications and inspecting geothermal activities. These costs could be charged to those applying for or holding geothermal leases. The bill outlines considerations for requiring reimbursements and allows for reduced fees in cases of economic hardship or to encourage geothermal usage. Additionally, it mandates a report assessing the impact of these changes on the Bureau of Land Management’s geothermal program and suggests further recommendations.
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AnalysisAI
The bill titled "Geothermal Cost-Recovery Authority Act of 2025" aims to amend the Geothermal Steam Act of 1970 to allow the Department of the Interior to recover costs from those applying for or holding geothermal leases. This provision requires reimbursement for administrative costs linked to processing applications and overseeing geothermal projects, effective immediately until September 30, 2032. Additionally, the bill mandates the Secretary of the Interior to produce a report within five years to evaluate the impact of these changes on the geothermal program.
General Summary of the Bill
This legislation is designed to ensure that the federal government can recoup costs associated with managing geothermal leasing and related activities. By amending the existing Geothermal Steam Act, it sets a temporary framework until 2032 for recovering administrative costs, making financial sustainability a focal point of geothermal development efforts. Additionally, the bill prescribes the creation of a comprehensive report to evaluate the impacts of these amendments on governmental operations concerning geothermal resources.
Summary of Significant Issues
A notable issue with the bill is the broad terms under which the Department of the Interior can recover costs. By allowing recovery of "all reasonable administrative and other costs," there is potential for a wide interpretation which may lead to disputes over what qualifies as "reasonable." Furthermore, the criteria for economic hardship exemptions and adjustments to promote geothermal resource use are vague and subjective, potentially resulting in inconsistent applications.
The requirement for a report after five years has been flagged as possibly too delayed, suggesting potential challenges or dissatisfaction among stakeholders who wish to see more immediate progress and transparency regarding the bill's impacts.
Impact on the Public
The bill's impacts on the wider public may come in the form of increased costs for renewable energy as companies seeking geothermal leases adjust to cover the additional expenses. However, it could potentially streamline government operations and make geothermal management more cost-effective in the long term. This is of significant interest to taxpayers, as the increased costs are intended to be borne by the direct beneficiaries of geothermal resources rather than the general public.
Impact on Specific Stakeholders
For the geothermal industry, this bill presents both challenges and opportunities. Companies face potential financial burdens due to reimbursement requirements. However, the possibility of reducing these costs to mitigate economic hardship or to encourage geothermal use could encourage more industry participation if applied transparently.
Government agencies, particularly the Department of the Interior, may benefit from a clearer financial structure to manage and sustain geothermal resource developments, although the appropriations acts' requirement for recovered funds could slow down access to these resources.
Environmental groups and advocates for renewable energy might view the bill favorably if it results in an increased reliance on geothermal energy. Nevertheless, uncertainties regarding the implementation could be cause for concern, especially if companies pass costs onto consumers, potentially hindering broader adoption of geothermal technologies.
In conclusion, while the Geothermal Cost-Recovery Authority Act of 2025 aims to balance financial sustainability with resource management, the practical application of its tenets will largely determine whether it positively or negatively impacts various stakeholders and the general public.
Issues
The provision in Section 2 that allows for reimbursement of 'all reasonable administrative and other costs' could be interpreted broadly, potentially leading to disputes over what constitutes 'reasonable' costs. This may result in financial burdens on applicants or holders of geothermal leases.
Section 2 lacks a clear definition of 'economic hardship,' under which the Secretary may reduce reimbursements, potentially resulting in inconsistent applications and possible favoritism or bias in decision-making.
The criteria in Section 2(3)(B) regarding adjustments for promoting the ‘greatest use’ of geothermal resources is subjective and may lead to arbitrary or biased decisions, raising legal and ethical concerns.
Section 3's timeline for the completion and submission of a report (not later than 5 years after enactment) might be considered excessively long for stakeholders desiring timely updates and information on the geothermal program, leading to potential dissatisfaction among stakeholders.
Section 3 does not provide specific metrics or criteria for evaluating the amendments' impact on the Bureau of Land Management's geothermal program, leading to the potential for subjective and inconsistent evaluations.
The specification in Section 2 that reimbursed amounts are to be used subject to appropriations acts could lead to delays in fund availability, impacting timely execution and oversight of geothermal leasing, permitting, and inspections.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this document specifies that the official name of the law is the “Geothermal Cost-Recovery Authority Act of 2025.”
2. Cost recovery from geothermal leasing, permitting, and inspections Read Opens in new tab
Summary AI
During the period from the enactment of this section until September 30, 2032, the Secretary may require applicants or holders of geothermal leases to pay back the United States for reasonable costs related to processing applications and overseeing activities like drilling and site management. However, the Secretary has the authority to adjust these costs if they would cause financial difficulty or to encourage the use of geothermal resources.
3. Report Read Opens in new tab
Summary AI
In this section, it is outlined that within five years, the Secretary of the Interior must create a report assessing the impact of certain amendments on the geothermal program managed by the Bureau of Land Management. This report, which will be shared with key congressional committees and the public, should include recommendations regarding the reauthorization and improvement of relevant sections of the Geothermal Steam Act, with input from the geothermal industry and other stakeholders.