One of the biggest barriers to geothermal energy production has been the risky and inefficient process of searching for “hot spots” capable of producing recoverable energy. In an effort to reduce this barrier, a bipartisan group of U.S. Senators have introduced legislation to make it easier for developers to lease federal land adjacent to proven geothermal “hot spots.” Geothermal energy is a sustainable energy resource that captures natural heat from the Earth to create electricity.

The bill is sponsored by U.S. Senators Ron Wyden (D-Ore.), Mike Crapo (R – Idaho), Jeff Merkley (D-Ore.) and James Risch (R-Idaho). The sponsores state that the Geothermal Production Expansion Act will allow for the non-competitive leasing of a very limited amount of federal land at fair market value to aid the expansion of already identified geothermal resources without the delay of competitive leasing and without the risk of opening up the property to speculative bidders who have no actual interest developing the property.

Geothermal energy exploration can be a costly and inefficient process and it is that financial uncertainty that has been a barrier to increased use of geothermal energy as a replacement for fossil fuels. The intention of the Geothermal Production Expansion Act is to make it easier for the federal government to lease to legitimate geothermal energy producers on lands adjacent to those already proven to be “hot spots.” This could increase geothermal energy production with less up-front cost. Lessees are limited to no more than 640 acres per lease and must pay fair market value for the lease as determined by the Department of Interior. The bill also increases the annual rental payments for the newly acquired land to ensure that the taxpayers get a fair return for leasing the land this way.