HR398

1) What happened: On May 20, 2026, H.R. 398, the Geothermal Cost-Recovery Authority Act of 2025, was reported by the House Committee on Natural Resources (H. Rept. 119-655) and placed on the Union Calendar (Calendar No. 569). It was introduced by Rep. Ocasio-Cortez (D-NY) on January 14, 2025, and has had steady committee action (subcommittee hearing, markup, unanimous vote to report). It now awaits a floor vote in the House. 2) The money trail: The bill authorizes NO new spending. It gives the Secretary of the Interior the authority to collect fees from geothermal lease applicants/holders to reimburse the government for processing and inspection costs. Any fees collected are credited as discretionary offsetting collections to the DOI's appropriation, but they are available only as provided in advance in appropriations acts. This is a cost-recovery mechanism, not a revenue stream for the geothermal industry. 3) Structural winners and losers: The bill is structurally neutral for all major utilities. It adds a modest cost for geothermal project developers that could reduce margins on federal geothermal leases, but the fee reduction provisions (economic hardship, promotion of resource use) give DOI discretion. For $NEE, $DUK, and $SO, geothermal exposure is negligible — all three derive over 95% of generation from other sources. The bill does not incentivize new geothermal development or change the competitive landscape. No pure-play geothermal public companies exist in the US (most geothermal assets are held by private or foreign entities, or as small parts of utilities). 4) Timeline: The bill must pass the House floor, then the Senate (no companion bill has been introduced yet), then be signed by the President. The 119th Congress runs through January 2027. Given the bill's narrow scope and non-controversial nature (unanimous committee vote), passage is reasonably likely but not imminent. Even if enacted, the fee structure would not materially change financial outcomes for any publicly traded US company.