Compliance Implications of Accelerated Geothermal Lease Sales

According to an article by Edward Boling and Laura Smith Morton of Perkins Coie, the Bureau of Land Management (BLM) issued Instruction Memorandum 2026-004 on December 16, 2025, establishing new policy direction for geothermal lease sales on federal public lands. The guidance requires BLM state offices to conduct annual competitive geothermal lease sales when nominations are available, tightening timelines beyond the Geothermal Steam Act’s statutory minimum of biennial sales. The authors explain that this shift aligns with a broader federal energy agenda focused on accelerating access to geothermal resources, including for infrastructure such as data centers.

Boling and Morton note that IM 2026-004 significantly alters procedural expectations. Public involvement is largely limited to a 45-day lease sale notice, with no required scoping or comment periods during lease sale preparation or subsequent development phases unless BLM issues a notice of intent to prepare an environmental impact statement under the National Environmental Policy Act. Environmental assessments do not require public input, though state offices retain discretion to allow comments in limited circumstances. The memorandum also directs offices not to delay leasing due to ongoing land use or resource management plan revisions unless legally required.

From an operational standpoint, the authors emphasize new planning and reporting obligations. State offices with pending nominations must submit annual competitive geothermal lease sale plans by specified deadlines and include most nominated lands that are open and available, subject to jurisdictional constraints and interagency consent. The policy takes effect immediately and remains in force through September 30, 2029.

As Boling and Morton outline, IM 2026-004 represents a meaningful acceleration of geothermal lease sales coupled with reduced procedural safeguards. For compliance professionals, the key takeaway is the need to adjust monitoring, risk assessment, and stakeholder engagement strategies to shorter timelines, fewer public checkpoints, and increased reliance on state-level implementation practices.