Geothermal Royalty Reform Act — Plain-English Explanation
Bill: H.R. 5638Sponsor: Mike Kennedy (R-UT)Topic: Energy
In short: This bill changes how companies pay the government when they extract geothermal energy (heat from deep underground) on public lands. It updates the royalty rates and payment terms that geothermal companies must follow.
What does Geothermal Royalty Reform Act do?
- This bill changes how companies pay the government when they extract geothermal energy (heat from deep underground) on public lands. It updates the royalty rates and payment terms that geothermal companies must follow.
- The bill modifies the rules for how much money geothermal companies owe to taxpayers for using publicly-owned resources, potentially adjusting lease terms, minimum bids, or payment percentages.
Why does Geothermal Royalty Reform Act matter?
- This affects geothermal energy companies operating on federal lands and taxpayers who own those resources. Changes could increase or decrease how much money the government collects from these operations.
- Geothermal energy is a renewable, clean power source. How the government prices access to it can influence whether companies develop more geothermal projects and how much public revenue is generated.
What happens next with Geothermal Royalty Reform Act?
- The bill passed committee with amendments on March 5, 2026, and is moving forward in the House.
- Track its progress at Congress.gov, contact your House representative to share your views on renewable energy policy, or follow energy-focused advocacy groups for updates.
Primary Sponsor
Legislative Timeline
Ordered to be Reported in the Nature of a Substitute (Amended) by Unanimous Consent.
Committee Consideration and Mark-up Session Held
Subcommittee on Energy and Mineral Resources Discharged
Subcommittee Hearings Held
Referred to the Subcommittee on Energy and Mineral Resources.