1. Short title This Act may be cited as the Geothermal Energy Optimization Act . 2. Geothermal production on Federal land The Geothermal Steam Act of 1970 ( 30 U.S.C. 1001 et seq. ) is amended by adding at the end the following: 30. Geothermal observation test projects (a) Definitions In this section: (1) Categorical exclusion The term categorical exclusion has the meaning given the term in section 111 of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4336e ). (2) Downhole The term downhole means a well or borehole dug or drilled into the subsurface of the earth for the purposes of resource confirmation or potential use. (3) Geothermal observation test project The term geothermal observation test project means using geothermal technologies to drill a test, monitor, calibration, or other similar type of exploratory drilling process well for geothermal resources on land for which the Secretary concerned has issued a lease under this Act, that— (A) is carried out by the leaseholder; (B) causes an allowable amount of total disturbance; (C) does not include any permanent roads; (D) is developed— (i) with the deepest cemented casing string less than 12 inches of downhole size in diameter; (ii) in a manner that does not require off-road motorized access other than to and from the well site along an identified off-road route; (iii) with temporary road access, if needed to enable access to the geothermal observation test project location, subject to the requirement that— (I) construction of the temporary road access is remediated as close as reasonably practicable to original condition following completion of the geothermal observation test project work; or (II) the temporary road access, with any additional permanent improvements, is included as part of the full review required under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) if the leaseholder intends to proceed with geothermal energy use for— (aa) the production of electricity; (bb) industrial processes