Should SB3954 be enacted, it would significantly affect federal oversight and permitting processes for geothermal energy projects. The act includes the establishment of a Geothermal Ombudsman and a Geothermal Strike Team to improve the efficiency of the permitting process. It mandates that applications for exploration be reviewed swiftly, requiring decisions within sixty days, thereby reducing the bureaucratic delays that often hinder project initiation.
Summary
SB3954, known as the Geothermal Energy Optimization Act, aims to enhance and streamline the exploration and development of geothermal resources on federal lands. The bill proposes amendments to the Geothermal Steam Act of 1970 to promote timely exploration under geothermal leases. Notably, it introduces provisions for geothermal observation test projects that enable quicker drilling and exploration while ensuring compliance with environmental regulations.
Contention
However, the bill does not come without points of contention. Critics may argue that expedited processes for geothermal exploration could lead to inadequate environmental oversight, particularly regarding the ecological impacts of such projects on public lands. The bill's reliance on categorical exclusions for various testing activities may raise concerns about potential environmental degradation and the loss of public input in the decision-making process.
Geothermal Cost-Recovery Authority Act of 2025This bill expands the Geothermal Steam Act of 1970 to give the Department of the Interior the authority to collect certain fees from applicants for, or holders of, geothermal leases through September 30, 2032. Specifically, Interior may direct those applicants or leaseholders to reimburse the United States for costs from (1) processing applications for geothermal leases on federal land, such as applications for geothermal drilling permits; and (2) inspecting and monitoring geothermal exploration and development activities, including reclamation activities.Interior may reduce the amount of the fee if it determines that (1) the full reimbursement would impose an economic hardship on the applicant, or (2) a less than full reimbursement is necessary to promote the greatest use of geothermal resources.Interior may use those fees only to the extent that they are provided in advance in appropriations acts for (1) processing applications for geothermal leases, and (2) inspecting and monitoring related exploration and development activities.Within five years of the bill's enactment, Interior must submit to Congress a report that includes an assessment of how the fees affect Interior's geothermal leasing program and any recommendations for updates to the fees and the program.