Federal geothermal royalties would shift to a per-plant calculation

What does this do?

HR 5638 changes how royalties are calculated when companies use geothermal energy on federal land to generate electricity. Under current law, royalties are based on total production across a geothermal lease. This bill would require a separate royalty calculation for each individual power plant drawing from that leased resource.

Who does it affect?

Companies that own and operate geothermal power plants on federal land are most directly affected, particularly those in Utah, Nevada, and California. The federal government and taxpayers are also affected, as are the states where these resources are located.

Why does it matter?

If a company runs multiple power plants from the same leased geothermal area, each plant would carry its own royalty obligation under this bill. Depending on how production is distributed across a company's facilities, the total amount owed to the federal government could change.

What does it cost, and who pays?

• Royalties go to U.S. Treasury
• States share in royalty revenue
• Per-plant math may shift totals