HR 398 — Geothermal Cost-Recovery Authority Act of 2025

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

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SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.

 (a) In General.--
 (1) Primary term.--A geothermal lease shall be for a 
 primary term of 10 years.
 (2) Initial extension.--The Secretary shall extend 
 the primary term of a geothermal lease for 5 years if, 
 for each year after the 10th year of the lease--
 (A) the Secretary determined under subsection 
 (b) that the lessee satisfied the work 
 commitment requirements that applied to the 
 lease for that year; or
 (B) the lessee paid in annual payments 
 accordance with subsection (c).
 (3) Additional extension.--The Secretary shall extend 
 the primary term of a geothermal lease (after an 
 initial extension under paragraph (2)) for an 
 additional 5 years if, for each year of the initial 
 extension under paragraph (2), the Secretary determined 
 under subsection (b) that the lessee satisfied the 
 minimum work requirements that applied to the lease for 
 that year.
 (b) Requirement to Satisfy Annual Minimum Work Requirement.--
 (1) In general.--The lessee for a geothermal lease 
 shall, for each year after the 10th year of the lease, 
 satisfy minimum work requirements prescribed by the 
 Secretary that apply to the lease for that year.
 (2) Prescription of minimum work requirements.--The 
 Secretary shall issue regulations prescribing minimum 
 work requirements for geothermal leases, that--
 (A) establish a geothermal potential; and
 (B) if a geothermal potential has been 
 established, confirm the existence of 
 producible geothermal resources.
 (c) Payments in Lieu of Minimum Work Requirements.--In lieu 
of the minimum work requirements set forth in subsection 
(b)(2), the Secretary shall by regulation establish minimum 
annual payments which may be made by the lessee for a limited 
number of years that the Secretary determines will not impair 
achieving diligent development of the geothermal resource, but 
in no event shall the number of years exceed the duration of 
the extension period provided in subsection (a).
 (d) Transition Rules for Leases Issued Prior to Enactment of 
Energy Policy Act of 2005.--The Secretary shall by regulation 
establish transition rules for leases issued before the date of 
the enactment of this subsection, including terms under which a 
lease that is near the end of its term on the date of enactment 
of this subsection may be extended for up to 2 years--
 (1) to allow achievement of production under the 
 lease; or
 (2) to allow the lease to be included in a producing 
 unit.
 (e) Geothermal Lease Overlying Mining Claim.--
 (1) Exemption.--The lessee for a geothermal lease of 
 an area overlying an area subject to a mining claim for 
 which a plan of operations has been approved by the 
 relevant Federal land management agency is exempt from 
 annual work requirements established under this Act, if 
 development of the geothermal resource subject to the 
 lease would interfere with the mining operations under 
 such claim.
 (2) Termination of exemption.--An exemption under 
 this paragraph expires upon the termination of the 
 mining operations.
 (f) Termination of Application of Requirements.--Minimum work 
requirements prescribed under this section shall not apply to a 
geothermal lease after the date on which the geothermal 
resource is utilized under the lease in commercial quantities.
 (g) Any lease for land on which, or for which under an 
approved cooperative or unit plan of development or operation, 
actual drilling operations were commenced prior to the end of 
its primary term and are being diligently prosecuted at that 
time shall be extended for five years and so long thereafter, 
but not more than thirty-five years, as geothermal steam is 
produced or utilized in commercial quantities. If, at the end 
of such extended term, steam is being produced or utilized in 
commercial quantities and the lands are not needed for other 
purposes, the lessee shall have a preferential right to a 
renewal of such lease for a second term in accordance with such 
terms and conditions as the Secretary deems appropriate.
 (h) Except as otherwise provided for in this section, for 
purposes of this section the term ``produced or utilized in 
commercial quantities'' means the completion of a well 
producing geothermal steam in commercial quantities. Such term 
shall also include the completion of a well capable of 
producing geothermal steam in commercial quantities so long as 
the Secretary determines that diligent efforts are being made 
toward the utilization of the geothermal steam.
 (i) Minerals locatable under the mining laws of the United 
States in lands subject to a geothermal lease issued under the 
provisions of this Act which are not associated with the 
geothermal resources of such lands as defined in section 2(c) 
herein shall be locatable under said mining laws in accordance 
with the principles of the Multiple Mineral Development Act (68 
Stat. 708; found in 30 U.S.C. 521 et seq.).
 (j) Cost Recovery.--
 (1) In general.--During the period that begins on the 
 date of enactment of this subsection and ends September 
 30, 2032, the Secretary may require an applicant for, 
 or a holder of, a geothermal lease to reimburse the 
 United States for all reasonable administrative and 
 other costs incurred by the United States from--
 (A) processing the application for the 
 geothermal lease, including any application for 
 an operations plan, geothermal drilling permit, 
 utilization plan, site license, facility 
 construction permit, commercial use permit, and 
 any other approval associated with a geothermal 
 lease; and
 (B) inspecting and monitoring--
 (i) geophysical exploration 
 activities;
 (ii) the drilling, plugging, and 
 abandonment of wells; and
 (iii) the construction, operation, 
 termination, and reclamation of any 
 well site or facility for the 
 utilization of geothermal resources 
 pursuant to the geothermal lease.
 (2) Considerations.--In determining whether to 
 require reimbursement under paragraph (1), the 
 Secretary shall consider whether there is in existence 
 a cooperative cost share agreement between the United 
 States and the holder of a geothermal lease.
 (3) Adjustments.--The Secretary may reduce the amount 
 to be reimbursed under paragraph (1) if the Secretary 
 determines--
 (A) that full reimbursement would impose an 
 economic hardship on the applicant; or
 (B) that a less than full reimbursement is 
 necessary to promote the greatest use of 
 geothermal resources.
 (4) Use.--The amounts reimbursed under this 
 subsection shall be credited to the currently 
 applicable appropriation, account, or fund of the 
 Department of the Interior as discretionary offsetting 
 collections, and shall be available only to the extent 
 provided in advance in appropriations Acts for--
 (A) processing the application for geothermal 
 leases, including any application for 
 operations plans, geothermal drilling permits, 
 utilization plans, site licenses, facility 
 construction permits, commercial use permits, 
 and any other approval associated with 
 geothermal leases; and
 (B) inspecting and monitoring--
 (i) geophysical exploration 
 activities;
 (ii) the drilling, plugging, and 
 abandonment of wells; and
 (iii) the construction, operation, 
 termination, and reclamation of any 
 well site or facility for the 
 utilization of geothermal resources 
 pursuant to geothermal leases.

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