IB 
Union Calendar No. 375 
115TH CONGRESS 
2D SESSION 
H. R. 4568 
[Report No. 115–502] 
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 
DECEMBER 6, 2017 
Mr. LABRADOR (for himself and Mr. GOSAR) introduced the following bill; 
which was referred to the Committee on Natural Resources 
JANUARY 9, 2018 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on December 6, 2017] 
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A BILL 
To amend the Geothermal Steam Act of 1970 to promote 
timely exploration for geothermal resources under geo-
thermal leases, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Enhancing Geothermal 
Production on Federal Lands Act’’. 
SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS. 
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 30. GEOTHERMAL EXPLORATION TEST PROJECTS. 
‘‘(a) DEFINITION
OF
GEOTHERMAL
EXPLORATION 
TEST PROJECT.—In this section, the term ‘geothermal ex-
ploration test project’ means the drilling of a well to test 
or explore for geothermal resources on lands for which the 
Secretary has issued a lease under this Act, that— 
‘‘(1) is carried out by the holder of the lease; 
‘‘(2) causes— 
‘‘(A) less than 5 acres of soil or vegetation 
disruption at the location of each geothermal ex-
ploration well; and 
‘‘(B) not more than an additional 5 acres 
of soil or vegetation disruption during access or 
egress to the test site; 
‘‘(3) is developed— 
‘‘(A) less than 9 inches in diameter; 
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‘‘(B) in a manner that does not require off- 
road motorized access other than to and from the 
well site along an identified off-road route; 
‘‘(C) without construction of new roads 
other than upgrading of existing drainage cross-
ings for safety purposes; 
‘‘(D) with the use of rubber-tired digging or 
drilling equipment vehicles; and 
‘‘(E) without the use of high-pressure well 
stimulation; 
‘‘(4) is completed in less than 90 days, including 
the removal of any surface infrastructure from the 
site; and 
‘‘(5) requires the restoration of the project site 
within 3 years of the date of first exploration drilling 
to approximately the condition that existed at the 
time the project began, unless the site is subsequently 
used as part of energy development under the lease. 
‘‘(b) CATEGORICAL EXCLUSION.— 
‘‘(1) IN
GENERAL.—Unless extraordinary cir-
cumstances exist, a project that the Secretary deter-
mines under subsection (c) is a geothermal explo-
ration test project shall be categorically excluded from 
the requirements for an environmental assessment or 
an environmental impact statement under the Na-
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tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) or section 1508.4 of title 40, Code of 
Federal Regulations (or a successor regulation). 
‘‘(2) EXTRAORDINARY
CIRCUMSTANCES
DEFINI-
TION.—In this subsection, the term ‘extraordinary 
circumstances’ has the same meaning given such term 
in the Department of the Interior Departmental Man-
ual, 516 DM 2.3A(3) and 516 DM 2, Appendix 2 (or 
successor provisions). 
‘‘(c) PROCESS.— 
‘‘(1) REQUIREMENT
TO
PROVIDE
NOTICE.—A 
leaseholder shall provide notice to the Secretary of the 
leaseholder’s intent to carry out a geothermal explo-
ration test project at least 30 days before the start of 
drilling under the project. 
‘‘(2) REVIEW AND DETERMINATION.—Not later 
than 10 days after receipt of a notice of intent under 
paragraph (1), the Secretary shall, with respect to the 
project described in the notice of intent— 
‘‘(A) determine if the project qualifies for a 
categorical exclusion under subsection (b); and 
‘‘(B) notify the leaseholder of such deter-
mination. 
‘‘(3) OPPORTUNITY
TO
REMEDY.—If the Sec-
retary determines under paragraph (2)(A) that the 
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project does not qualify for a categorical exclusion 
under subsection (b), the Secretary shall— 
‘‘(A) include in such notice clear and de-
tailed findings on any deficiencies in the project 
that resulted in such determination; and 
‘‘(B) allow the leaseholder to remedy any 
such deficiencies and resubmit the notice of in-
tent under paragraph (1).’’. 
SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS. 
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 
et seq.) is further amended by adding at the end the fol-
lowing: 
‘‘SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS. 
‘‘(a) DEFINITION OF COVERED LAND.—In this section, 
the term ‘covered land’ means land that is— 
‘‘(1) Federal land; and 
‘‘(2) not excluded from the development of geo-
thermal energy under— 
‘‘(A) a land use plan established under the 
Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.); or 
‘‘(B) any other Federal law. 
‘‘(b) DESIGNATION OF GEOTHERMAL LEASING PRI-
ORITY AREAS.—The Secretary, in consultation with the 
Secretary of Energy, shall designate portions of covered 
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land as geothermal leasing priority areas as soon as prac-
ticable, but not later than 5 years, after the date of the en-
actment of this section. 
‘‘(c) CRITERIA
FOR
SELECTION.—In determining 
which covered lands to designate as geothermal leasing pri-
ority areas under subsection (b), the Secretary, in consulta-
tion with the Secretary of Energy, shall consider if— 
‘‘(1) the covered land is preferable for geothermal 
leasing; 
‘‘(2) production of geothermal energy on such 
land is economically viable, including if such land 
has access to methods of energy transmission; and 
‘‘(3) the designation would be in compliance 
with section 202 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1712), including 
subsection (c)(9) of that section. 
‘‘(d) REVIEW AND MODIFICATION.—Not less frequently 
than once every 10 years, the Secretary shall— 
‘‘(1) review covered land and, if appropriate, 
make additional designations of geothermal leasing 
priority areas; and 
‘‘(2) review each area designated as a geothermal 
leasing priority area under this section, and, if ap-
propriate, remove such designation. 
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‘‘(e) PROGRAMMATIC ENVIRONMENTAL IMPACT STATE-
MENT.— 
‘‘(1) INITIAL DESIGNATIONS.—No later than one 
year after the initial designation of a geothermal leas-
ing priority area, the Secretary shall prepare a sup-
plement to any final programmatic environmental 
impact statement for geothermal leasing that is the 
most recently finalized such statement with respect to 
covered land designated as a geothermal leasing pri-
ority area under subsection (b). 
‘‘(2) SUBSEQUENT
DESIGNATIONS.—Each des-
ignation of a geothermal leasing priority area under 
subsection (d) shall be included in a programmatic 
environmental impact statement for geothermal leas-
ing or in a supplement to such a statement. 
‘‘(3) CONSULTATIONS.—In developing any pro-
grammatic environmental impact statement for geo-
thermal leasing or supplement to such a statement 
under this section, the Secretary shall consult, on an 
ongoing basis, with appropriate State, Tribal, and 
local governments, transmission infrastructure owners 
and operators, developers, and other appropriate enti-
ties. 
‘‘(4) PROCEDURE.—The Secretary may not delay 
issuing a permit or holding a lease sale under this 
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Act because the supplement required under paragraph 
(1) has not been finalized by the Secretary. 
‘‘(f) COMPLIANCE WITH NEPA.—If the Secretary de-
termines that the designation of a geothermal leasing pri-
ority area has been sufficiently analyzed by a pro-
grammatic environmental impact statement, the Secretary 
shall not prepare any additional analysis under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.) with respect to geothermal lease sales for such geo-
thermal leasing priority area.’’. 
SEC. 
4. 
FACILITATION 
OF 
COPRODUCTION 
OF 
GEO-
THERMAL ENERGY ON OIL AND GAS LEASES. 
Section 4(b) of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003(b)) is amended by adding at the end the fol-
lowing: 
‘‘(4) LAND SUBJECT TO OIL AND GAS LEASE.— 
Land under an oil and gas lease issued pursuant to 
the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the 
Mineral Leasing Act for Acquired Lands (30 U.S.C. 
351 et seq.) that is subject to an approved application 
for permit to drill and from which oil and gas pro-
duction is occurring may be available for noncompeti-
tive leasing under subsection (c) by the holder of the 
oil and gas lease— 
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‘‘(A) on a determination that geothermal 
energy will be produced from a well producing 
or capable of producing oil and gas; and 
‘‘(B) in order to provide for the coproduc-
tion of geothermal energy with oil and gas.’’. 
SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS 
FOR DEVELOPMENT OF GEOTHERMAL RE-
SOURCES. 
Section 4(b) of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003(b)) is further amended by adding at the end 
the following: 
‘‘(5) ADJOINING LAND.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) FAIR MARKET VALUE PER ACRE.— 
The term ‘fair market value per acre’ means 
a dollar amount per acre that— 
‘‘(I) except as provided in this 
clause, shall be equal to the market 
value per acre (taking into account the 
determination 
under 
subparagraph 
(B)(iii) regarding a valid discovery on 
the adjoining land) as determined by 
the Secretary under regulations issued 
under this paragraph; 
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‘‘(II) shall be determined by the 
Secretary with respect to a lease under 
this paragraph, by not later than the 
end of the 180-day period beginning on 
the date the Secretary receives an ap-
plication for the lease; and 
‘‘(III) shall be not less than the 
greater of— 
‘‘(aa) 4 times the median 
amount paid per acre for all land 
leased under this Act during the 
preceding year; or 
‘‘(bb) $50. 
‘‘(ii) 
INDUSTRY
STANDARDS.—The 
term ‘industry standards’ means the stand-
ards by which a qualified geothermal profes-
sional assesses whether downhole or flowing 
temperature measurements with indications 
of permeability are sufficient to produce en-
ergy from geothermal resources, as deter-
mined through flow or injection testing or 
measurement of lost circulation while drill-
ing. 
‘‘(iii) QUALIFIED
FEDERAL
LAND.— 
The term ‘qualified Federal land’ means 
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land that is otherwise available for leasing 
under this Act. 
‘‘(iv) QUALIFIED
GEOTHERMAL
PRO-
FESSIONAL.—The 
term 
‘qualified 
geo-
thermal professional’ means an individual 
who is an engineer or geoscientist in good 
professional standing with at least 5 years 
of experience in geothermal exploration, de-
velopment, or project assessment. 
‘‘(v) QUALIFIED
LESSEE.—The term 
‘qualified lessee’ means a person who may 
hold a geothermal lease under this Act (in-
cluding applicable regulations). 
‘‘(vi) VALID
DISCOVERY.—The term 
‘valid discovery’ means a discovery of a geo-
thermal resource by a new or existing slim 
hole or production well, that exhibits 
downhole or flowing temperature measure-
ments with indications of permeability that 
are sufficient to meet industry standards. 
‘‘(B) AUTHORITY.—An area of qualified 
Federal land that adjoins other land for which a 
qualified lessee holds a legal right to develop geo-
thermal resources may be available for a non-
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competitive lease under this section to the quali-
fied lessee at the fair market value per acre, if— 
‘‘(i) the area of qualified Federal 
land— 
‘‘(I) consists of not less than 1 
acre and not more than 640 acres; and 
‘‘(II) is not already leased under 
this Act or nominated to be leased 
under subsection (a); 
‘‘(ii) the qualified lessee has not pre-
viously received a noncompetitive lease 
under this paragraph in connection with 
the valid discovery for which data has been 
submitted under clause (iii)(I); and 
‘‘(iii) sufficient geological and other 
technical data prepared by a qualified geo-
thermal professional has been submitted by 
the qualified lessee to the applicable Federal 
land management agency that would lead 
individuals who are experienced in the sub-
ject matter to believe that— 
‘‘(I) there is a valid discovery of 
geothermal resources on the land for 
which the qualified lessee holds the 
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legal right to develop geothermal re-
sources; and 
‘‘(II) that geothermal feature ex-
tends into the adjoining areas. 
‘‘(C) DETERMINATION
OF
FAIR
MARKET 
VALUE.— 
‘‘(i) 
IN
GENERAL.—The 
Secretary 
shall— 
‘‘(I) publish a notice of any re-
quest to lease land under this para-
graph; 
‘‘(II) determine fair market value 
for purposes of this paragraph in ac-
cordance with procedures for making 
those determinations that are estab-
lished by regulations issued by the Sec-
retary; 
‘‘(III) provide to a qualified lessee 
and publish, with an opportunity for 
public comment for a period of 30 
days, 
any 
proposed 
determination 
under this subparagraph of the fair 
market value of an area that the quali-
fied lessee seeks to lease under this 
paragraph; and 
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‘‘(IV) provide to the qualified les-
see and any adversely affected party 
the opportunity to appeal the final de-
termination of fair market value in an 
administrative proceeding before the 
applicable Federal land management 
agency, in accordance with applicable 
law (including regulations). 
‘‘(ii) LIMITATION
ON
NOMINATION.— 
After publication of a notice of request to 
lease land under this paragraph, the Sec-
retary may not accept under subsection (a) 
any nomination of the land for leasing un-
less the request has been denied or with-
drawn. 
‘‘(iii) ANNUAL RENTAL.—For purposes 
of section 5(a)(3), a lease awarded under 
this paragraph shall be considered a lease 
awarded in a competitive lease sale. 
‘‘(D) REGULATIONS.—Not later than 270 
days after the date of enactment of this para-
graph, the Secretary shall issue regulations to 
carry out this paragraph.’’. 
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Union Calendar No. 375 
115TH CONGRESS 
2D SESSION 
H. R. 4568 
[Report No. 115–502] 
A BILL 
To amend the Geothermal Steam Act of 1970 to 
promote timely exploration for geothermal re-
sources under geothermal leases, and for other 
purposes. 
JANUARY 9, 2018 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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