Summary of the Bill

The bill, titled the "Geothermal Cost-Recovery Authority Act of 2024," seeks to amend the Geothermal Steam Act of 1970. The primary aim of the amendment is to grant the Department of the Interior the authority to recover costs associated with geothermal leasing, permitting, and inspections. It authorizes the Secretary of the Interior to require applicants or holders of geothermal leases to reimburse the U.S. government for reasonable administrative costs incurred during these processes. This authority is set to expire on September 30, 2031. Additionally, the bill mandates that a report be submitted within five years to assess the impact of these changes on the geothermal program and provide recommendations for future updates and legislation.

Summary of Significant Issues

One notable issue is the vague terminology in the bill, particularly in Section 2, where "reasonable administrative and other costs" could be broadly interpreted, leading to potential disputes. The discretion given to the Secretary of the Interior to reduce reimbursements based on economic hardship or to promote the use of geothermal resources is also troubling, as the criteria for these reductions are not clearly defined, which could lead to subjective decision-making. Furthermore, the bill does not specify what happens once the reimbursement authority expires in 2031, creating uncertainty about the long-term regulatory framework.

Additionally, Section 3's requirement for a report within five years, while aiming for a comprehensive assessment of the program's changes, might delay necessary adjustments to the geothermal program. The bill does not adequately define the term "stakeholders," which could affect the breadth and inclusivity of consultations. Lastly, there is a lack of mechanisms for leaseholders to contest reimbursement decisions, which could result in dissatisfaction or legal challenges.

Impact on the Public

For the general public, the bill may foster a more efficient geothermal leasing process by holding applicants accountable for administrative costs, potentially leading to more streamlined operations. However, the broad interpretation of what constitutes reasonable costs might result in increased financial burdens for businesses seeking to develop geothermal resources, costs that could be passed onto consumers in the form of higher energy prices. This outcome would be counterproductive to the goal of expanding renewable energy sources.

Impact on Specific Stakeholders

For the geothermal industry, the ability to be charged for administrative costs could impose additional financial challenges, especially for smaller companies or new market entrants. This aspect might discourage investment in geothermal projects or limit their development. However, if the Secretary effectively uses the discretion to promote geothermal energy use, it could mitigate some of these negative impacts by fostering partnerships and cost-sharing agreements.

Environmental advocates might view this bill positively as it strengthens regulatory oversight and ensures that the costs of monitoring and compliance are borne by those undertaking potentially impactful activities on public lands. On the downside, the lack of clear guidelines and appeal processes could lead to arbitrary decision-making or lack of transparency, which might not align with sustainability and fair use practices.

Overall, while the bill aims to enhance the geothermal leasing program's efficiency, its success and public reception will largely depend on how these provisions are implemented and whether the concerns and recommendations from the mandated report lead to constructive future legislative or administrative changes.