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electricity produced from such resources during 
each year after such 10-year period;’’; and 
(2) by adding at the end the following: 
‘‘(c) FINAL REGULATION ESTABLISHING ROYALTY 
RATES.—In issuing any final regulation establishing roy-
alty rates under this section, the Secretary shall seek— 
‘‘(1) to provide lessees a simplified administra-
tive system; 
‘‘(2) to encourage new development; 
‘‘(3) to achieve the same long-term level of roy-
alty revenues to States and counties as the regula-
tion in effect on the date of enactment of this sub-
section; and 
‘‘(4) to reflect any change in profitability of op-
erations for which royalties will be paid due to the 
requirements imposed by Federal agencies, including 
delays. 
‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ELEC-
TRICITY.—The Secretary may provide to a lessee a credit 
against royalties owed under this Act, in an amount equal 
to the value of electricity provided under contract to a 
State or county government that is entitled to a portion 
of such royalties under section 20 of this Act, section 35 
of the Mineral Leasing Act (30 U.S.C. 191), or section
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6 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 355), if— 
‘‘(1) the Secretary has approved in advance the 
contract between the lessee and the State or county 
government for such in-kind payments; 
‘‘(2) the contract establishes a specific method-
ology to determine the value of such credits; and 
‘‘(3) the maximum credit will be equal to the 
royalty value owed to the State or county that is a 
party to the contract and the electricity received will 
serve as the royalty payment from the Federal Gov-
ernment to that entity.’’. 
(b) DISPOSAL OF MONEYS FROM SALES, BONUSES, 
ROYALTIES, AND RENTS.—Section 20 of the Geothermal 
Steam Act of 1970 (30 U.S.C. 1019) is amended to read 
as follows: 
‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, 
RENTALS, AND ROYALTIES. 
‘‘(a) IN GENERAL.—Except with respect to lands in 
the State of Alaska, all monies received by the United 
States from sales, bonuses, rentals, and royalties under 
this Act shall be paid into the Treasury of the United 
States. Of amounts deposited under this subsection, sub-
ject to the provisions of section 35 of the Mineral Leasing 
Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act—
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‘‘(1) 50 percent shall be paid to the State with-
in the boundaries of which the leased lands or geo-
thermal resources are or were located; and 
‘‘(2) 25 percent shall be paid to the County 
within the boundaries of which the leased lands or 
geothermal resources are or were located. 
‘‘(b) USE OF PAYMENTS.—Amounts paid to a State 
or county under subsection (a) shall be used consistent 
with the terms of section 35 of the Mineral Leasing Act 
(30 U.S.C. 191).’’. 
(c) NEAR-TERM PRODUCTION INCENTIVE FOR EX-
ISTING LEASES.— 
(1) IN
GENERAL.—Notwithstanding section 
5(a) of the Geothermal Steam Act of 1970, the roy-
alty required to be paid shall be 50 percent of the 
amount of the royalty otherwise required, on any 
lease issued before the date of enactment of this Act 
that does not convert to new royalty terms under 
subsection (e)— 
(A) with respect to commercial production 
of energy from a facility that begins such pro-
duction in the 6-year period beginning on the 
date of enactment of this Act; or 
(B) on qualified expansion geothermal en-
ergy.
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(2) 4-YEAR APPLICATION.—Paragraph (1) ap-
plies only to new commercial production of energy 
from a facility in the first 4 years of such produc-
tion. 
(d) DEFINITION OF QUALIFIED EXPANSION GEO-
THERMAL ENERGY.—In this section, the term ‘‘qualified 
expansion geothermal energy’’ means geothermal energy 
produced from a generation facility for which— 
(1) the production is increased by more than 10 
percent as a result of expansion of the facility car-
ried out in the 6-year period beginning on the date 
of enactment of this Act; and 
(2) such production increase is greater than 10 
percent of the average production by the facility dur-
ing the 5-year period preceding the expansion of the 
facility (as such average is adjusted to reflect any 
trend, in changes in production during that period). 
(e) ROYALTY UNDER EXISTING LEASES.— 
(1) IN
GENERAL.—Any lessee under a lease 
issued under the Geothermal Steam Act of 1970 be-
fore the date of enactment of this Act may modify 
the terms of the lease relating to payment of royal-
ties to comply with the amendment made by sub-
section (a), by applying to the Secretary of the Inte-
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rior by not later than 18 months after the date of 
enactment of this Act. 
(2) APPLICATION
OF
MODIFICATION.—Such 
modification shall apply to any use of geothermal re-
sources to which the amendment applies that occurs 
after the date of that application. 
(3) CONSULTATION.—The Secretary— 
(A) shall consult with the State and local 
governments affected by any proposed changes 
in lease royalty terms under this subsection; 
and 
(B) may establish royalty based on a gross 
proceeds percentage within the range specified 
in the amendment made by subsection (a)(1) 
and with the concurrence of the lessee and the 
State. 
SEC. 1805. EXPEDITING ADMINISTRATIVE ACTION FOR GEO-
THERMAL LEASING. 
(a) TREATMENT OF GEOTHERMAL LEASING WITH 
RESPECT TO FEDERAL LAND MANAGEMENT PLAN RE-
QUIREMENTS.—Section 15 of the Geothermal Steam Act 
of 1970 (30 U.S.C. 1014) is amended by adding at the 
end the following: 
‘‘(d) TREATMENT OF GEOTHERMAL LEASING UNDER 
FEDERAL
LAND
MANAGEMENT
PLANS.—Geothermal