Geothermal Royalty Reform Act

This bill amends the Geothermal Steam Act of 1970 to change how royalties are calculated for geothermal resources used to generate electricity. It bases royalties on the production from each individual electric generating facility, rather than on the lease as a whole, and ties the royalty rate period to the facility's start date.

Sec. 2, Geothermal royalties: The bill adds definitions for 'geothermal electric generating facility' (a facility that produces electricity using geothermal resources, including turbines and cooling equipment, and is considered separate unless it shares a turbine) and 'in-service date' (the date the facility begins operating). It also amends the royalty provisions so that for a facility producing electricity, the royalty rate is based on production by that facility. The lower royalty rate for the first 10 years of production is now calculated as each year of the 10-year period following the facility's in-service date, instead of the first 10 years of the lease.