Rep. Kennedy Advances Legislation to Drive Growth in the Geothermal Energy Sector

Washington, D.C. - H.R. 5638, The Geothermal Royalty Reform Act advanced through the House Natural Resources Committee this week. The legislation reforms outdated federal royalty rules to ensure fair cost distribution, end penalties on new geothermal facilities, and unleash investment in America's energy future.

"Americans need reliable, affordable energy, and geothermal power is one of the most promising untapped resources we have," said Congressman Mike Kennedy. "Outdated royalty rules have penalized new facilities and stifled the investment needed to unleash this energy source. The Geothermal Royalty Reform Act fixes that, and I am grateful to Chairman Westerman and the Natural Resources Committee for their support in advancing this important legislation."

"The Geothermal Royalty Reform Act provides much needed clarity for geothermal royalty payments," said Chairman of the House Natural Resources Committee, Bruce Westerman. "I commend Rep. Kennedy for his efforts in unleashing America's geothermal resources to provide a greater supply of reliable energy to American families."

Rep. Kennedy's Geothermal Royalty Reform Act :

• Ensures each facility pays royalties based on its own operations, rather than being tied to the highest-cost facility on the lease.
• Promotes fairness for taxpayers and energy producers by ensuring each geothermal production facility is fairly charged.
• Modernizes outdated rules and reduces red tape, unlocking new energy investment.
• Drives growth in the geothermal energy sector by lowering unnecessary costs.
• Secures America's competitive advantage in energy production and positions us for a stronger, more innovative energy future.

Read the bill text here.

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