I 

116TH CONGRESS 

1ST SESSION H. R. 4026 

To amend the Geothermal Steam Act of 1970 to promote timely exploration 

for geothermal resources under geothermal leases, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 25, 2019 

Mr. FULCHER introduced the following bill; which was referred to the 

Committee on Natural Resources 

A BILL 

To amend the Geothermal Steam Act of 1970 to promote 

timely exploration for geothermal resources under geothermal leases, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Enhancing Geothermal 

5 Production on Federal Lands Act’’. 

6 SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS. 

7 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 

8 et seq.) is amended by adding at the end the following: 


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1 ‘‘SEC. 30. GEOTHERMAL EXPLORATION TEST PROJECTS. 

2 ‘‘(a) DEFINITION OF GEOTHERMAL EXPLORATION

3 TEST PROJECT.—In this section, the term ‘geothermal ex4 ploration test project’ means the drilling of a well to test 

5 or explore for geothermal resources on lands for which the 

6 Secretary has issued a lease under this Act, that— 

7 ‘‘(1) is carried out by the holder of the lease; 

8 ‘‘(2) causes— 

9 ‘‘(A) less than 5 acres of soil or vegetation 

10 disruption at the location of each geothermal 

11 exploration well; and 

12 ‘‘(B) not more than an additional 5 acres 

13 of soil or vegetation disruption during access or 

14 egress to the test site; 

15 ‘‘(3) is developed— 

16 ‘‘(A) less than 9 inches in diameter; 

17 ‘‘(B) in a manner that does not require 

18 off-road motorized access other than to and 

19 from the well site along an identified off-road 

20 route; 

21 ‘‘(C) without construction of new roads 

22 other than upgrading of existing drainage cross23 ings for safety purposes; 

24 ‘‘(D) with the use of rubber-tired digging 

25 or drilling equipment vehicles; and 


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1 ‘‘(E) without the use of high-pressure well 

2 stimulation; 

3 ‘‘(4) is completed in less than 90 days, includ4 ing the removal of any surface infrastructure from 

5 the site; and 

6 ‘‘(5) requires the restoration of the project site 

7 within 3 years of the date of first exploration drilling 

8 to approximately the condition that existed at the 

9 time the project began, unless the site is subse10 quently used as part of energy development under 

11 the lease. 

12 ‘‘(b) CATEGORICAL EXCLUSION.— 

13 ‘‘(1) IN GENERAL.—Unless extraordinary cir14 cumstances exist, a project that the Secretary deter15 mines under subsection (c) is a geothermal explo16 ration test project shall be categorically excluded 

17 from the requirements for an environmental assess18 ment or an environmental impact statement under 

19 the National Environmental Policy Act of 1969 (42 

20 U.S.C. 4321 et seq.) or section 1508.4 of title 40, 

21 Code of Federal Regulations (or a successor regula22 tion). 

23 ‘‘(2) EXTRAORDINARY CIRCUMSTANCES DEFINI24 TION.—In this subsection, the term ‘extraordinary 

25 circumstances’ has the same meaning given such 


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1 term in the Department of the Interior Depart2 mental Manual, 516 DM 2.3A(3) and 516 DM 2, 

3 Appendix 2 (or successor provisions). 

4 ‘‘(c) PROCESS.— 

5 ‘‘(1) REQUIREMENT TO PROVIDE NOTICE.—A 

6 leaseholder shall provide notice to the Secretary of 

7 the leaseholder’s intent to carry out a geothermal ex8 ploration test project at least 30 days before the 

9 start of drilling under the project. 

10 ‘‘(2) REVIEW AND DETERMINATION.—Not later 

11 than 10 days after receipt of a notice of intent 

12 under paragraph (1), the Secretary shall, with re13 spect to the project described in the notice of in14 tent— 

15 ‘‘(A) determine if the project qualifies for 

16 a categorical exclusion under subsection (b); 

17 and 

18 ‘‘(B) notify the leaseholder of such deter19 mination. 

20 ‘‘(3) OPPORTUNITY TO REMEDY.—If the Sec21 retary determines under paragraph (2)(A) that the 

22 project does not qualify for a categorical exclusion 

23 under subsection (b), the Secretary shall— 


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1 ‘‘(A) include in such notice clear and de2 tailed findings on any deficiencies in the project 

3 that resulted in such determination; and 

4 ‘‘(B) allow the leaseholder to remedy any 

5 such deficiencies and resubmit the notice of in6 tent under paragraph (1).’’. 

7 SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS. 

8 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 

9 et seq.) is further amended by adding at the end the fol10 lowing: 

11 ‘‘SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS. 

12 ‘‘(a) DEFINITION OF COVERED LAND.—In this sec13 tion, the term ‘covered land’ means land that is— 

14 ‘‘(1) Federal land; and 

15 ‘‘(2) not excluded from the development of geo16 thermal energy under— 

17 ‘‘(A) a land use plan established under the 

18 Federal Land Policy and Management Act of 

19 1976 (43 U.S.C. 1701 et seq.); or 

20 ‘‘(B) any other Federal law. 

21 ‘‘(b) DESIGNATION OF GEOTHERMAL LEASING PRI22 ORITY AREAS.—The Secretary, in consultation with the 

23 Secretary of Energy, shall designate portions of covered 

24 land as geothermal leasing priority areas as soon as pracVerDate Sep 11 2014 02:05 Aug 03, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4026.IH H4026

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1 ticable, but not later than 5 years, after the date of the 

2 enactment of this section. 

3 ‘‘(c) CRITERIA FOR SELECTION.—In determining 

4 which covered lands to designate as geothermal leasing 

5 priority areas under subsection (b), the Secretary, in con6 sultation with the Secretary of Energy, shall consider if— 

7 ‘‘(1) the covered land is preferable for geo8 thermal leasing; 

9 ‘‘(2) production of geothermal energy on such 

10 land is economically viable, including if such land 

11 has access to methods of energy transmission; and 

12 ‘‘(3) the designation would be in compliance 

13 with section 202 of the Federal Land Policy and 

14 Management Act of 1976 (43 U.S.C. 1712), includ15 ing subsection (c)(9) of that section. 

16 ‘‘(d) REVIEW AND MODIFICATION.—Not less fre17 quently than once every 10 years, the Secretary shall— 

18 ‘‘(1) review covered land and, if appropriate, 

19 make additional designations of geothermal leasing 

20 priority areas; and 

21 ‘‘(2) review each area designated as a geo22 thermal leasing priority area under this section, and, 

23 if appropriate, remove such designation. 

24 ‘‘(e) PROGRAMMATIC ENVIRONMENTAL IMPACT

25 STATEMENT.— 


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1 ‘‘(1) INITIAL DESIGNATIONS.—No later than 

2 one year after the initial designation of a geothermal 

3 leasing priority area, the Secretary shall prepare a 

4 supplement to any final programmatic environmental 

5 impact statement for geothermal leasing that is the 

6 most recently finalized such statement with respect 

7 to covered land designated as a geothermal leasing 

8 priority area under subsection (b). 

9 ‘‘(2) SUBSEQUENT DESIGNATIONS.—Each des10 ignation of a geothermal leasing priority area under 

11 subsection (d) shall be included in a programmatic 

12 environmental impact statement for geothermal leas13 ing or in a supplement to such a statement. 

14 ‘‘(3) CONSULTATIONS.—In developing any pro15 grammatic environmental impact statement for geo16 thermal leasing or supplement to such a statement 

17 under this section, the Secretary shall consult, on an 

18 ongoing basis, with appropriate State, Tribal, and 

19 local governments, transmission infrastructure own20 ers and operators, developers, and other appropriate 

21 entities. 

22 ‘‘(4) PROCEDURE.—The Secretary may not 

23 delay issuing a permit or holding a lease sale under 

24 this Act because the supplement required under 


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1 paragraph (1) has not been finalized by the Sec2 retary. 

3 ‘‘(f) COMPLIANCE WITH NEPA.—If the Secretary 

4 determines that the designation of a geothermal leasing 

5 priority area has been sufficiently analyzed by a pro6 grammatic environmental impact statement, the Secretary 

7 shall not prepare any additional analysis under the Na8 tional Environmental Policy Act of 1969 (42 U.S.C. 4321 

9 et seq.) with respect to geothermal lease sales for such 

10 geothermal leasing priority area.’’. 

11 SEC. 4. FACILITATION OF COPRODUCTION OF GEO12 THERMAL ENERGY ON OIL AND GAS LEASES. 

13 Section 4(b) of the Geothermal Steam Act of 1970 

14 (30 U.S.C. 1003(b)) is amended by adding at the end the 

15 following: 

16 ‘‘(4) LAND SUBJECT TO OIL AND GAS LEASE.— 

17 Land under an oil and gas lease issued pursuant to 

18 the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 

19 the Mineral Leasing Act for Acquired Lands (30 

20 U.S.C. 351 et seq.) that is subject to an approved 

21 application for permit to drill and from which oil 

22 and gas production is occurring may be available for 

23 noncompetitive leasing under subsection (c) by the 

24 holder of the oil and gas lease— 


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1 ‘‘(A) on a determination that geothermal 

2 energy will be produced from a well producing 

3 or capable of producing oil and gas; and 

4 ‘‘(B) in order to provide for the coproduc5 tion of geothermal energy with oil and gas.’’. 

6 SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS 

7 FOR DEVELOPMENT OF GEOTHERMAL RE8 SOURCES. 

9 Section 4(b) of the Geothermal Steam Act of 1970 

10 (30 U.S.C. 1003(b)) is further amended by adding at the 

11 end the following: 

12 ‘‘(5) ADJOINING LAND.— 

13 ‘‘(A) DEFINITIONS.—In this paragraph: 

14 ‘‘(i) FAIR MARKET VALUE PER

15 ACRE.—The term ‘fair market value per 

16 acre’ means a dollar amount per acre 

17 that— 

18 ‘‘(I) except as provided in this 

19 clause, shall be equal to the market 

20 value per acre (taking into account 

21 the determination under subparagraph 

22 (B)(iii) regarding a valid discovery on 

23 the adjoining land) as determined by 

24 the Secretary under regulations issued 

25 under this paragraph; 


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1 ‘‘(II) shall be determined by the 

2 Secretary with respect to a lease 

3 under this paragraph, by not later 

4 than the end of the 180-day period 

5 beginning on the date the Secretary 

6 receives an application for the lease; 

7 and 

8 ‘‘(III) shall be not less than the 

9 greater of— 

10 ‘‘(aa) 4 times the median 

11 amount paid per acre for all land 

12 leased under this Act during the 

13 preceding year; or 

14 ‘‘(bb) $50. 

15 ‘‘(ii) INDUSTRY STANDARDS.—The 

16 term ‘industry standards’ means the stand17 ards by which a qualified geothermal pro18 fessional assesses whether downhole or 

19 flowing temperature measurements with 

20 indications of permeability are sufficient to 

21 produce energy from geothermal resources, 

22 as determined through flow or injection 

23 testing or measurement of lost circulation 

24 while drilling. 


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1 ‘‘(iii) QUALIFIED FEDERAL LAND.— 

2 The term ‘qualified Federal land’ means 

3 land that is otherwise available for leasing 

4 under this Act. 

5 ‘‘(iv) QUALIFIED GEOTHERMAL PRO6 FESSIONAL.—The term ‘qualified geo7 thermal professional’ means an individual 

8 who is an engineer or geoscientist in good 

9 professional standing with at least 5 years 

10 of experience in geothermal exploration, 

11 development, or project assessment. 

12 ‘‘(v) QUALIFIED LESSEE.—The term 

13 ‘qualified lessee’ means a person who may 

14 hold a geothermal lease under this Act (in15 cluding applicable regulations). 

16 ‘‘(vi) VALID DISCOVERY.—The term 

17 ‘valid discovery’ means a discovery of a 

18 geothermal resource by a new or existing 

19 slim hole or production well, that exhibits 

20 downhole or flowing temperature measure21 ments with indications of permeability that 

22 are sufficient to meet industry standards. 

23 ‘‘(B) AUTHORITY.—An area of qualified 

24 Federal land that adjoins other land for which 

25 a qualified lessee holds a legal right to develop 


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1 geothermal resources may be available for a 

2 noncompetitive lease under this section to the 

3 qualified lessee at the fair market value per 

4 acre, if— 

5 ‘‘(i) the area of qualified Federal 

6 land— 

7 ‘‘(I) consists of not less than 1 

8 acre and not more than 640 acres; 

9 and 

10 ‘‘(II) is not already leased under 

11 this Act or nominated to be leased 

12 under subsection (a); 

13 ‘‘(ii) the qualified lessee has not pre14 viously received a noncompetitive lease 

15 under this paragraph in connection with 

16 the valid discovery for which data has been 

17 submitted under clause (iii)(I); and 

18 ‘‘(iii) sufficient geological and other 

19 technical data prepared by a qualified geo20 thermal professional has been submitted by 

21 the qualified lessee to the applicable Fed22 eral land management agency that would 

23 lead individuals who are experienced in the 

24 subject matter to believe that— 


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1 ‘‘(I) there is a valid discovery of 

2 geothermal resources on the land for 

3 which the qualified lessee holds the 

4 legal right to develop geothermal re5 sources; and 

6 ‘‘(II) that geothermal feature ex7 tends into the adjoining areas. 

8 ‘‘(C) DETERMINATION OF FAIR MARKET

9 VALUE.— 

10 ‘‘(i) IN GENERAL.—The Secretary 

11 shall— 

12 ‘‘(I) publish a notice of any re13 quest to lease land under this para14 graph; 

15 ‘‘(II) determine fair market value 

16 for purposes of this paragraph in ac17 cordance with procedures for making 

18 those determinations that are estab19 lished by regulations issued by the 

20 Secretary; 

21 ‘‘(III) provide to a qualified les22 see and publish, with an opportunity 

23 for public comment for a period of 30 

24 days, any proposed determination 

25 under this subparagraph of the fair 


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1 market value of an area that the 

2 qualified lessee seeks to lease under 

3 this paragraph; and 

4 ‘‘(IV) provide to the qualified les5 see and any adversely affected party 

6 the opportunity to appeal the final de7 termination of fair market value in an 

8 administrative proceeding before the 

9 applicable Federal land management 

10 agency, in accordance with applicable 

11 law (including regulations). 

12 ‘‘(ii) LIMITATION ON NOMINATION.— 

13 After publication of a notice of request to 

14 lease land under this paragraph, the Sec15 retary may not accept under subsection (a) 

16 any nomination of the land for leasing un17 less the request has been denied or with18 drawn. 

19 ‘‘(iii) ANNUAL RENTAL.—For pur20 poses of section 5(a)(3), a lease awarded 

21 under this paragraph shall be considered a 

22 lease awarded in a competitive lease sale. 

23 ‘‘(D) REGULATIONS.—Not later than 270 

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1 graph, the Secretary shall issue regulations to 

2 carry out this paragraph.’’. 

Æ 


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