H.R. 5631, the Geothermal Energy Advancement Act, passed the House on June 2, 20 — Plain English Decode
H.R. 5631, the Geothermal Energy Advancement Act, passed the House on June 2, 2026, but now faces Senate scrutiny over environmental review timelines, protected land concerns, and split-estate carve-outs that could weaken federal oversight.
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What It Does
H.R. 5631 consolidates six separate bills targeting the permitting and regulatory bottlenecks that have long constrained geothermal development on federal lands. In practical terms: The bill creates a Geothermal Ombudsman within the Bureau of Land Management (within 60 days of enactment) who can assign BLM personnel to work on geothermal permits across field-office boundaries and resolve disputes between applicants and local offices. A Geothermal Permitting Task Force is also established within the BLM within 60 days of enactment. Interior must process each application for a geothermal drilling permit within 60 days after completing all requirements under applicable federal laws and regulations, unless a U.S. federal court vacates the underlying lease. The bill extends cost-recovery authority to geothermal (matching
The Real Story
H.R. 5631 consolidates six separate bills targeting the permitting and regulatory bottlenecks that have long constrained geothermal development on federal lands. The bill's core conflict is between *speed and caution*: geothermal developers (Fervo Energy, Ormat Technologies) and data center customers argue that current federal leasing, permitting, and environmental review processes for geothermal energy can be slow and uncertain, creating serious financing barriers for the emerging next-generation geothermal industry. Environmental groups like the Wildlife Society and The Nature Conservancy support geothermal with conditions—they want fast development *only if* the bill preserves tribal consultation, environmental review, and judicial safeguards. Republicans and moderate Democrats (sponsors include Colorado Republican Hurd and Nevada Democrat Lee) argue that geothermal deserves the same streamlined treatment as oil and gas; environmental groups worry the bill goes too far.
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Who Benefits
- Geothermal Developers (Fervo Energy, Ormat Technologies, XGS Energy, Baker Hughes): 60-day processing deadlines for DOI permits, categorical exclusions for exploration, cost-recovery authority allowing Interior to charge fees (shifting permitting burden to companies but freeing up BLM resources), and an ombudsman to resolve field-office disputes all accelerate project approval. Fervo Energy reported 75% reduction in drilling time and 70% reduction in cost per foot since 2022, indicating the industry is already moving fast—this bill removes the last regulatory hurdles.
- Data Center Operators (Google, Meta, Microsoft, Apple, Shell Energy): The measures will likely benefit the developers of power-hungry data centers, such as Google and Meta, which are investing in geothermal projects to support their growing operations in Nevada and New Mexico. Faster permitting = faster project completion = lower financing costs and earlier revenue from operations.
- Federal Land Managers (BLM): The Geothermal Cost-Recovery Authority Act allows Interior to recoup application and inspection costs from energy companies, expediting geothermal projects without undermining community input or environmental protections, with this flexibility allowing the Bureau of Land Management to recoup application and inspection costs from energy companies. Cost recovery means more dedicated geothermal staff funded by the industry itself.
- Western States (Nevada, Utah, New Mexico, California): The United States contains more than five terawatts of geothermal resources; the U.S. Department of Energy estimates that America will be able to affordably capture enough of its abundant geothermal resources nationwide to power more than 65 million homes within the next 25 years. Western states gain jobs, tax revenue, and energy independence.
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Who Gets Hurt
- Rural Landowners on Split-Estate Parcels: If the split-estate exemption is enacted, the public and impacted split-estate landowners would be denied the right to participate in the management of these lands and resources and would deny federal land management agencies the valuable contributions that the public and Tribes often provide in furthering the efficient and equitable management of federal resources. A farmer owning surface rights but not subsurface mineral rights can no longer sue federally if a geothermal company drills underneath.
- Tribal Nations: Arbitrary deadlines have the practical effect of rushing public input opportunities and Tribal consultation; cutting corners can jeopardize the durability of the very authorizations. The Goshute, Paiute, Shoshone, and other tribes in Nevada and Utah rely on Section 7 ESA consultation and NHPA tribal historic preservation assessments—compressed timelines reduce their voice.
- Wildlife (Endangered Species): The Dixie Valley toad was listed under the ESA, prompting BLM to downsize the Dixie Meadows geothermal project in Nevada from multiple plants to a single 12-megawatt facility. Categorical exclusions cannot be applied in cases with special circumstances, such as potential impacts to endangered species, in which case an EA must still be conducted—but the bill's language doesn't clarify enforcement, leaving BLM field offices vulnerable to pressure to issue CXs anyway.
- Environmental and Conservation Organizations (Wildlife Society, Nature Conservancy, Sierra Club): The Wildlife Society supports passage of H.R. 5631, H.R. 5617 and H.R. 398; the whole of this suite of bills is greater than the sum of the parts, but only if the ombudsman is properly funded and timelines preserve environmental integrity. If not funded, the ombudsman becomes a rubber stamp.
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Red Flags
- 60-Day Permit Deadline with Compressed Environmental Review (Section 2): Interior must process each application for a geothermal drilling permit or other authorization under a valid existing geothermal lease within 60 days after completing all requirements under applicable federal laws and regulations (including NEPA, ESA, and NHPA). Arbitrary and insufficient deadlines have the practical effect of rushing public input opportunities and Tribal consultation; cutting corners can jeopardize the durability of the very authorizations the legislation seeks to expedite. The Wildlife Society noted that environmental review timelines can take 6 months or longer due to complex species and cultural resource consultations—the bill effectively cuts that time by two-thirds.
- "Categorical Exclusions" for Geothermal Matching Oil & Gas (Section 1077 - STEAM Act embedded in H.R. 5631): The STEAM Act grants geothermal developers the same streamlined environmental permitting pathway, known as "categorical exclusion," that oil and gas companies have to expedite exploration and development on certain public lands. This bypasses NEPA Environmental Assessments for routine actions, but categorical exclusions cannot be applied in cases with special circumstances, such as potential impacts to endangered species, in which case an EA must still be conducted. The bill doesn't clarify how often "extraordinary circumstances" will actually halt a project.
- Split-Estate Exemption in H.R. 301 (GEO Act embedded in H.R. 5631): Section 2(a)(4) requires the BLM to offer for lease all parcels nominated for geothermal energy production that are eligible for such use under a resource management plan, foreclosing BLM's ability to scope nominations in response to public comment and NEPA analysis; many RMPs are decades old and fail to consider today's on-the-ground realities, including natural and cultural resource conflicts, and this provision could allow nominations in areas local stakeholders view as unacceptable with little recourse. H.R. 398 (Cost-Recovery Authority) would exempt operations on millions of acres of split-estate lands from the federal permitting process, circumventing NEPA, Endangered Species Act, and National Historic Preservation Act requirements, invalidating the public's right and the right of impacted landowners with holdings over subsurface federal geothermal estate to participate in the management of these lands.
- No Dedicated Funding for Ombudsman (Section 6): The legislation does not provide new funding to carry out its requirements. The Geothermal Ombudsman is created but Congress hasn't appropriated staff or budget. The Bureau of Land Management is significantly understaffed, limiting its ability to process geothermal permits and leases and conduct environmental reviews. Without funding, the ombudsman is a symbolic position without authority.
- Litigation Shielding Language (Section 2): The bill's Section 2 states that pending civil actions do not prevent leasing or permitting—effectively meaning a lawsuit challenging a lease sale cannot stop geothermal development. H.R. 301 would prevent the Department of the Interior from delaying authorized projects out of fear of litigation, with recent examples like the Dixie Meadows project in Nevada, where BLM delayed construction in response to the U.S. Fish and Wildlife Service's listing of the Dixie Valley toad under the Endangered Species Act. This narrows judicial review opportunities.
- Royalty Reduction via Separate Facilities (Section 7 - H.R. 5638): The Geothermal Royalty Reform Act stipulates that geothermal facilities on the same geothermal lease are treated as separate facilities with respect to royalty payments; under current law, all facilities on the same lease must pay the same royalty rate, but this bill's clarification would allow for geothermal facilities on the same lease to pay different royalties based on each individual facility's time in service. Translation: a developer can build multiple facilities on one lease and pay lower royalties per facility—reducing federal revenue.
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H.R. 5631, the Geothermal Energy Advancement Act, passed the House on June 2, 2026, but now faces Senate scrutiny over environmental review timelines, protected land concerns, and split-estate carve-outs that could weaken federal oversight.
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Why now
Geothermal energy has emerged as a major bipartisan priority in Washington, driven by the need to secure reliable baseload power for data centers and meet emissions reduction targets. Over 90% of identified U.S. geothermal resources sit beneath public lands, but geothermal development on federal lands remains just 0.4% of U.S. electricity generation. Major tech companies like Meta (signing a 150-MW deal in New Mexico), Google (securing 150 MW in Nevada), and Shell (30 MW in Utah) are investing in geothermal projects to power data centers and retail operations, creating political momentum across both parties to remove what industry calls "permitting bottlenecks."
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The real story
H.R. 5631 consolidates six separate bills targeting the permitting and regulatory bottlenecks that have long constrained geothermal development on federal lands. The bill's core conflict is between *speed and caution*: geothermal developers (Fervo Energy, Ormat Technologies) and data center customers argue that current federal leasing, permitting, and environmental review processes for geothermal energy can be slow and uncertain, creating serious financing barriers for the emerging next-generation geothermal industry. Environmental groups like the Wildlife Society and The Nature Conservancy support geothermal with conditions—they want fast development *only if* the bill preserves tribal consultation, environmental review, and judicial safeguards. Republicans and moderate Democrats (sponsors include Colorado Republican Hurd and Nevada Democrat Lee) argue that geothermal deserves the same streamlined treatment as oil and gas; environmental groups worry the bill goes too far.
---
##
Red flags
▸ 60-Day Permit Deadline with Compressed Environmental Review (Section 2): Interior must process each application for a geothermal drilling permit or other authorization under a valid existing geothermal lease within 60 days after completing all requirements under applicable federal laws and regulations (including NEPA, ESA, and NHPA). Arbitrary and insufficient deadlines have the practical effect of rushing public input opportunities and Tribal consultation; cutting corners can jeopardize the durability of the very authorizations the legislation seeks to expedite. The Wildlife Society noted that environmental review timelines can take 6 months or longer due to complex species and cultural resource consultations—the bill effectively cuts that time by two-thirds.
▸ "Categorical Exclusions" for Geothermal Matching Oil & Gas (Section 1077 - STEAM Act embedded in H.R. 5631): The STEAM Act grants geothermal developers the same streamlined environmental permitting pathway, known as "categorical exclusion," that oil and gas companies have to expedite exploration and development on certain public lands. This bypasses NEPA Environmental Assessments for routine actions, but categorical exclusions cannot be applied in cases with special circumstances, such as potential impacts to endangered species, in which case an EA must still be conducted. The bill doesn't clarify how often "extraordinary circumstances" will actually halt a project.
▸ Split-Estate Exemption in H.R. 301 (GEO Act embedded in H.R. 5631): Section 2(a)(4) requires the BLM to offer for lease all parcels nominated for geothermal energy production that are eligible for such use under a resource management plan, foreclosing BLM's ability to scope nominations in response to public comment and NEPA analysis; many RMPs are decades old and fail to consider today's on-the-ground realities, including natural and cultural resource conflicts, and this provision could allow nominations in areas local stakeholders view as unacceptable with little recourse. H.R. 398 (Cost-Recovery Authority) would exempt operations on millions of acres of split-estate lands from the federal permitting process, circumventing NEPA, Endangered Species Act, and National Historic Preservation Act requirements, invalidating the public's right and the right of impacted landowners with holdings over subsurface federal geothermal estate to participate in the management of these lands.
▸ No Dedicated Funding for Ombudsman (Section 6): The legislation does not provide new funding to carry out its requirements. The Geothermal Ombudsman is created but Congress hasn't appropriated staff or budget. The Bureau of Land Management is significantly understaffed, limiting its ability to process geothermal permits and leases and conduct environmental reviews. Without funding, the ombudsman is a symbolic position without authority.
▸ Litigation Shielding Language (Section 2): The bill's Section 2 states that pending civil actions do not prevent leasing or permitting—effectively meaning a lawsuit challenging a lease sale cannot stop geothermal development. H.R. 301 would prevent the Department of the Interior from delaying authorized projects out of fear of litigation, with recent examples like the Dixie Meadows project in Nevada, where BLM delayed construction in response to the U.S. Fish and Wildlife Service's listing of the Dixie Valley toad under the Endangered Species Act. This narrows judicial review opportunities.
▸ Royalty Reduction via Separate Facilities (Section 7 - H.R. 5638): The Geothermal Royalty Reform Act stipulates that geothermal facilities on the same geothermal lease are treated as separate facilities with respect to royalty payments; under current law, all facilities on the same lease must pay the same royalty rate, but this bill's clarification would allow for geothermal facilities on the same lease to pay different royalties based on each individual facility's time in service. Translation: a developer can build multiple facilities on one lease and pay lower royalties per facility—reducing federal revenue.
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Who benefits
• Geothermal Developers (Fervo Energy, Ormat Technologies, XGS Energy, Baker Hughes): 60-day processing deadlines for DOI permits, categorical exclusions for exploration, cost-recovery authority allowing Interior to charge fees (shifting permitting burden to companies but freeing up BLM resources), and an ombudsman to resolve field-office disputes all accelerate project approval. Fervo Energy reported 75% reduction in drilling time and 70% reduction in cost per foot since 2022, indicating the industry is already moving fast—this bill removes the last regulatory hurdles.
• Data Center Operators (Google, Meta, Microsoft, Apple, Shell Energy): The measures will likely benefit the developers of power-hungry data centers, such as Google and Meta, which are investing in geothermal projects to support their growing operations in Nevada and New Mexico. Faster permitting = faster project completion = lower financing costs and earlier revenue from operations.
• Federal Land Managers (BLM): The Geothermal Cost-Recovery Authority Act allows Interior to recoup application and inspection costs from energy companies, expediting geothermal projects without undermining community input or environmental protections, with this flexibility allowing the Bureau of Land Management to recoup application and inspection costs from energy companies. Cost recovery means more dedicated geothermal staff funded by the industry itself.
• Western States (Nevada, Utah, New Mexico, California): The United States contains more than five terawatts of geothermal resources; the U.S. Department of Energy estimates that America will be able to affordably capture enough of its abundant geothermal resources nationwide to power more than 65 million homes within the next 25 years. Western states gain jobs, tax revenue, and energy independence.
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Who gets hurt
• Rural Landowners on Split-Estate Parcels: If the split-estate exemption is enacted, the public and impacted split-estate landowners would be denied the right to participate in the management of these lands and resources and would deny federal land management agencies the valuable contributions that the public and Tribes often provide in furthering the efficient and equitable management of federal resources. A farmer owning surface rights but not subsurface mineral rights can no longer sue federally if a geothermal company drills underneath.
• Tribal Nations: Arbitrary deadlines have the practical effect of rushing public input opportunities and Tribal consultation; cutting corners can jeopardize the durability of the very authorizations. The Goshute, Paiute, Shoshone, and other tribes in Nevada and Utah rely on Section 7 ESA consultation and NHPA tribal historic preservation assessments—compressed timelines reduce their voice.
• Wildlife (Endangered Species): The Dixie Valley toad was listed under the ESA, prompting BLM to downsize the Dixie Meadows geothermal project in Nevada from multiple plants to a single 12-megawatt facility. Categorical exclusions cannot be applied in cases with special circumstances, such as potential impacts to endangered species, in which case an EA must still be conducted—but the bill's language doesn't clarify enforcement, leaving BLM field offices vulnerable to pressure to issue CXs anyway.
• Environmental and Conservation Organizations (Wildlife Society, Nature Conservancy, Sierra Club): The Wildlife Society supports passage of H.R. 5631, H.R. 5617 and H.R. 398; the whole of this suite of bills is greater than the sum of the parts, but only if the ombudsman is properly funded and timelines preserve environmental integrity. If not funded, the ombudsman becomes a rubber stamp.
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What it does
H.R. 5631 consolidates six separate bills targeting the permitting and regulatory bottlenecks that have long constrained geothermal development on federal lands. In practical terms: The bill creates a Geothermal Ombudsman within the Bureau of Land Management (within 60 days of enactment) who can assign BLM personnel to work on geothermal permits across field-office boundaries and resolve disputes between applicants and local offices. A Geothermal Permitting Task Force is also established within the BLM within 60 days of enactment. Interior must process each application for a geothermal drilling permit within 60 days after completing all requirements under applicable federal laws and regulations, unless a U.S. federal court vacates the underlying lease. The bill extends cost-recovery authority to geothermal (matching
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