Cost recovery from geothermal leasing, permitting, and inspections

(a) In general Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is amended by adding at the end the following: (j) Cost recovery (1) In general During the period beginning on the date of enactment of the Bipartisan American Affordability and Jobs Act of 2026 and ending on September 30, 2033, the Secretary may require an applicant for, or 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, or abandonment of wells; and (iii) the construction, operation, termination, or reclamation of any well site or facility for the utilization of geothermal resources pursuant to the geothermal lease. (2) Factor for consideration In determining whether to require reimbursement under paragraph (1), the Secretary shall take into consideration 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 required to be reimbursed under paragraph (1) if the Secretary determines that— (A) full reimbursement would impose on the applicant an economic hardship; or (B) 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— (A) credited to the currently applicable appropriation, account, or fund of the Department of the Interior as discretionary offsetting collections; and (B) available only to the extent provided in advance in appropriations Acts for— (i) processing applications for geothermal leases, including any applications 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 (ii) inspecting and monitoring— (I) geophysical exploration activities; (II) the drilling, plugging, or abandonment of wells; and (III) the construction, operation, termination, or reclamation of any well site or facility for the utilization of geothermal resources pursuant to geothermal leases.. (b) Report (1) In general Not later than 5 years after the date of enactment of this Act, the Secretary of the Interior, in consultation with representatives of the geothermal industry and other stakeholders, shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives, and make publicly available on the website of the Department of the Interior, a report that includes— (A) an assessment of how the amendment made by subsection (a) affected the geothermal program of the Bureau of Land Management; (B) any recommendations for reauthorization of subsection (j) of section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) (as added by subsection (a)); and (C) any other recommendations for updates to— (i) subsection (j) of section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) (as so added); or (ii) the geothermal program of the Bureau of Land Management. (2) Considerations In developing the report under paragraph (1), the Secretary of the Interior shall solicit facts or information from representatives of the geothermal industry and other stakeholders.