H.R. 5638 — Geothermal Royalty Reform Act

This section revises geothermal lease royalties on electricity sales—previously calculated on gross proceeds from electricity produced from lease resources—to apply specified rates to gross proceeds from electricity produced by each electric generating facility, at not less than 1% and not more than 2.5% during the first 10 years of production under the lease and not less than 2% and not more than 5% during each year thereafter. (Thus, royalties are now computed separately per facility based on the lease's overall production timeline.)