S-4605-119
Read twice and referred to the Committee on Energy and Natural Resources.
Sponsored by Ruben Gallego (D-AZ)
What it does
This bill would amend the Geothermal Steam Act of 1970 to let the Secretary of the Interior require geothermal lease applicants and holders to reimburse the government for reasonable costs of processing applications, permits, and inspections through September 30, 2032. The Secretary could reduce or waive fees to avoid economic hardship or to promote greater use of geothermal resources, and collected funds would be available only as provided in future appropriations acts for the same permitting and inspection activities. It also requires a report within 5 years assessing the program's effects and recommending whether to reauthorize it.
Who benefits
The Bureau of Land Management and Department of Interior, which would gain a dedicated funding stream for staff and resources to process geothermal permits and inspections faster. Taxpayers generally, since program costs would shift toward industry users rather than general appropriations. Geothermal companies could also benefit indirectly if faster-funded permitting reduces application backlogs and delays.
Who is hurt
Geothermal lease applicants and holders, who would face new reimbursement costs for administrative processing and inspections that were previously covered by general appropriations. Smaller or early-stage geothermal developers with tighter margins could be disproportionately affected if hardship waivers are not granted, though the bill allows the Secretary discretion to reduce fees.
Supporters argue
Supporters argue that cost-recovery ensures the Bureau of Land Management has adequate resources to process geothermal permits without depending on uncertain annual appropriations, potentially speeding up approvals and expanding domestic geothermal energy development. They contend this mirrors existing cost-recovery structures for oil and gas leasing and gives the Secretary flexibility to waive fees for hardship cases or to encourage industry growth.
Opponents argue
Opponents argue that imposing new reimbursement fees on geothermal developers could raise costs for an industry still competing against more established energy sources, potentially slowing the growth of a renewable resource the bill's own supporters want to encourage. They contend that broad Secretarial discretion over fee amounts and waivers creates uncertainty for developers and inconsistent treatment across projects.
Constitutional context
This bill operates under Congress's Article I power to manage federal lands and resources (Property Clause, Art. IV, §3, cl. 2) and its taxing/spending authority to structure fees; it raises no significant separation-of-powers or takings issue since participation in geothermal leasing is voluntary and fees are tied to specific services rendered.
Checks and balances
Congress delegates fee-setting discretion to the Secretary of the Interior, with the sunset date, appropriations control over fund use, and a mandatory 5-year report to Congress serving as checks on that authority.
Historical precedent
Similar cost-recovery authority exists for oil and gas leasing under the Mineral Leasing Act and related BLM fee programs, which this bill's structure closely resembles.