BLM Issues New Guidance Directing Annual Competitive Geothermal Lease Sales and Reducing Opportunities for Public Participation

Introduction

On December 16, 2025, the Bureau of Land Management (BLM) published Instruction Memorandum 2026-004 (IM2026-004), titled Promoting Annual Competitive Geothermal Lease Sales, establishing new policy guidance for geothermal leasing on federal public lands. IM2026-004 directs BLM state offices to hold annual competitive geothermal lease sales where appropriate and reiterates BLM procedures for compliance with statutory requirements under the Geothermal Steam Act. This policy reflects a broader federal energy agenda by emphasizing reduced timelines for certain energy projects,[1] increased leasing frequency, and accelerated market access, in part to power data centers.

Under the new guidance, public input is not required when preparing a geothermal lease sale, or at any phase of geothermal development unless the BLM issues a notice of intent to prepare an environmental impact statement (EIS) under the National Environmental Policy Act.  Complementary deregulatory actions throughout 2025—including rescission of specific geothermal regulations[2] and implementation of emergency permitting procedures[3]—underscore an overarching shift toward expedited permitting and fewer opportunities for public participation or procedural constraints for geothermal development on federal lands.

Key Provisions of IM2026-0041

1. Annual Competitive Lease Sales

BLM state offices that have pending geothermal lease nominations must prepare and conduct annual competitive lease sales to meet both statutory requirements and new administrative expectations. While the Geothermal Steam Act requires competitive sales at least every two years where nominations exist,[4] IM2026-004 directs annual sales for consistency with Trump administration energy objectives. 

State offices are instructed to evaluate the status of nominations and to include in planned sales:

• At least 90% of nominated lands open and available where BLM has jurisdiction
• At least 80% of nominated lands managed by other surface management agencies (e.g., U.S. Forest Service), contingent on consent 

Offices with no pending nominations are not required to schedule a lease sale. 

2. Planning and Reporting Requirements

BLM state offices must prepare an Annual Competitive Geothermal Lease Sale Plan (Plan) where there are pending nominations for lands to lease and submit the Plan by the annual deadline (for FY 2026, due January 16, 2026).[5] These Plans will outline proposed parcels and sales schedules in alignment with the IM’s objectives. 

3. Public Involvement Policy

IM2026-004 establishes the following public involvement framework:

• A 45-day Lease Sale Notice consistent with standard leasing procedures
• No additional required public involvement during preparation of lease sales or any stage of geothermal development (e.g., scoping, comments)[6] under 43 C.F.R. Part 3200 unless the BLM issues a notice of intent to prepare an EIS
• Public input is not required for Environmental Assessment (EA)-level analyses, though state offices may allow a 30-day comment period on a notice of intent for an EIS, as practicable. 

This approach removes scoping and comment obligations for most geothermal lease and development phases. 

4. Land Use Plan/Resource Management Plan (LUP/RMP) Policy

Unless legally required, the BLM will not defer lease nominations due to ongoing LUP or RMP amendments, updates, or revisions. Offices may still amend plans where appropriate to accommodate changes in lease stipulations but are not required to delay leasing actions for planning processes.

5. Implementation Considerations

• Effective immediately. IM2026-004 is effective upon issuance and will remain in force until its expiration on September 30, 2029.
• Planning and coordination. State offices should begin annual planning cycles, adjust internal procedures to meet the new schedule requirements, and coordinate where nominations involve other surface management agencies.
• Resource allocation. Offices should anticipate increased staff time dedicated to sale planning and processing.
• Public engagement strategy. Stakeholders who typically engage in leasing processes should adjust expectations in light of the policy’s limited public involvement framework outside EIS triggers.

Conclusion

IM 2026-004 represents a notable change in policy direction from the BLM to streamline and accelerate geothermal leasing on public lands. By mandating annual competitive lease sales where nominations exist and restricting public involvement to the minimum regulatory requirements (with additional engagement only when an EIS is initiated), the BLM continues its prioritization of expedited geothermal development. Affected stakeholders—including developers, neighboring landowners, and advocacy groups—should closely monitor state office implementation plans and prepare for a more condensed window for formal public input.

Endnotes

[1] The Trump administration has prioritized fossil fuel, geothermal, nuclear, and critical minerals development for this expedited processing. See Executive Order 14154, Unleashing American Energy, and Executive Order 14156, Declaring a National Energy Emergency, and Secretary Burgum’s ensuing Secretary’s Order 3417, Addressing the National Energy Emergency, and Secretary’s Order 3418, Unleashing American Energy.

[2] Rescission of Regulations Regarding Geothermal Leases, 90 Fed. Reg. 33303 (July 17, 2025).

[3] The U.S. Department of the Interior’s emergency procedures implementing the national energy emergency are set out in the following documents: Alternative Arrangements for NEPA Compliance, Alternative Procedures for Informal Section 7 Consultation; and Emergency Procedures for Section 106 Compliance. In May 2025, BLM exercised these emergency procedures to approve three geothermal projects. DOI implements emergency permitting procedures to accelerate geothermal energy development for national security and energy independence.

For more detail on exercise of these emergency procedures for certain projects, see DOI Exercises Authority Under Novel Emergency Authorities To Approve Uranium Mine.

[4] Geothermal Steam Act, 30 USC 1003(b)(2).

[5] Annual Competitive Geothermal Lease Sale Plan Requirements.

[6] Note that BLM has to date solicited public input on proposed geothermal lease sales. See, e.g., BLM Seeks Input on Proposed Geothermal Leasing in Southwest Idaho (Apr. 18. 2025).