AB 526: Energy: in-state geothermal energy generation.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-04-10
Current Status:
Failed
(2026-02-02: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy.
Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the states clean energy and pollution reduction objectives.
This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for new in-state geothermal energy in California, as specified. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, as specified, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO), to assess the transmission investments and upgrades necessary to support new in-state geothermal energy. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its recurring input to the ISOs system need scoring for the interconnection and transmission planning process. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, to assess the level at which new and existing geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would require the information described in this paragraph, an assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts, and an assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, to be included in the strategic plan, as specified.
Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy.
Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the states clean energy and pollution reduction objectives.
This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for the development of new in-state geothermal energy, as defined, energy in California. California, as specified. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
The bill would require the Energy Commission, on or before June 1, 2026, to evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, total system cost, employment, and decarbonization benefits, and to establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045, as specified.The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, 2045, as specified, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO), to assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals, as specified. energy. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its annual recurring input to the ISOs system need scoring for the interconnection and transmission planning, to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, as specified. planning process. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, to assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the 2035 and 2045 new in-state geothermal energy planning goals, goals while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would authorize the State Lands Commission to reduce the geothermal rentals and royalties to reflect the findings of the assessment. The bill would require the information described in this paragraph and paragraph, an assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts, and an assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, to be included in the strategic plan, as specified.
Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy.
Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the states clean energy and pollution reduction objectives.
This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for the development of new in-state geothermal energy, as defined, in California. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
The bill would require the Energy Commission, on or before June 1, 2026, to evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, total system cost, employment, and decarbonization benefits, and to establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045, as specified.
The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO), to assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals, as specified. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its annual input to the ISO interconnection queue prioritization, and would require the ISO to reserve appropriate capacity for new in-state geothermal energy in its transmission plan deliverability allocation, ISOs system need scoring for interconnection and transmission planning, to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, as specified. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, to assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the 2035 and 2045 new in-state geothermal energy planning goals, while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would authorize the State Lands Commission to reduce the geothermal rentals and royalties to reflect the findings of the assessment. The bill would require the information described in this paragraph and an assessment of known impacts to Native American and indigenous Indigenous peoples and biological resources, and strategies for addressing those impacts, to be included in the strategic plan, as specified.
Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC), State Energy Resources Conservation and Development Commission (Energy Commission), and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy.
Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the states clean energy and pollution reduction objectives.
This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for the development of new in-state geothermal energy, as defined, in California. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
The bill would require the Energy Commission, on or before June 1, 2026, to evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, employment, and decarbonization benefits, and to establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045, as specified.
The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO), to assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals, as specified. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its input to the ISO interconnection queue prioritization, and would require the ISO to reserve appropriate capacity for new in-state geothermal energy in its transmission plan deliverability allocation, to accommodate the 2035 and 2045 new in-state geothermal energy planning goals, as specified. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, to assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the 2035 and 2045 new in-state geothermal energy planning goals, while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would authorize the State Lands Commission to reduce the geothermal rentals and royalties to reflect the findings of the assessment. The bill would require the information described in this paragraph and an assessment of known impacts to Native American and indigenous peoples and biological resources, and strategies for addressing those impacts, to be included in the strategic plan, as specified.
The Legislature finds and declares all of the following:
(a)The need for reliable clean firm energy was the driving force behind recent extensions of the lifespan of the Diablo Canyon Power Plant and a number of natural gas-fired powerplants in southern California.
(b)In recognition of this need, the Public Utilities Commission issued Decision 21-06-035 (June 24, 2021), Decision Requiring Procurement to Address Mid-Term Reliability (2023-2026), which directed Californias load-serving entities to procure significant amounts of new geothermal energy over the years to come.
(c)If developed and deployed at scale, new in-state geothermal energy can advance Californias progress toward its statutory renewable and zero-carbon energy and climate mandates and providing air quality benefits.
(d)The recent United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power, highlighted research that found that aggressive deployment of next-generation geothermal energy technologies could lower the cost of eliminating carbon emissions in the Western Interconnection by as much as 25 percent compared to a decarbonization strategy relying on solar and storage resources.
(e)Many of the geothermal resources being procured by load-serving entities to meet procurement mandates are out of state, which exports California ratepayer wealth.
(f)The first commercial-scale next-generation geothermal energy resources are currently under development in the States of Nevada and Utah, but nearly all of that power is anticipated to be sold to buyers in the State of California.
(g)The State of California must take an active role in ensuring that existing and conventional geothermal resources in the state remain viable while also ensuring that new geothermal energy projects built to supply the California market lead to investment and job creation in California and do not lead to the export of investment, industry knowledge, and the California geothermal, oil, and gas workforce to neighboring states.
(h)New in-state geothermal energy development presents a significant opportunity to attract investment capital and realize community economic development and workforce development benefits in California, including the development and preservation of a skilled and trained construction workforce to carry out projects, long-term apprenticeship and job creation, and the development of a next-generation geothermal energy supply chain.
(i)California has the geologic resources, workforce, and clean energy economy to advance geothermal energy in-state production if decisive state action is taken today. The National Renewable Energy Laboratory estimates that there could be 27.9 gigawatts of next-generation geothermal resources deployed in California by 2050, over double that of any other state.
(j)Since many next-generation geothermal energy projects may take a decade or more to develop, permit, and construct, a comprehensive planning process must begin now to ensure an adequate in-state supply of geothermal energy when it is needed. Given the geographic constraints on geothermal energy resources, it is also critical that planning begin now in order to ensure that adequate transmission capacity is in place to ensure interconnection once projects are completed.
SEC. 2.Chapter 16 (commencing with Section 25993) is added to Division 15 of the Public Resources Code, to read:16.New In-State Geothermal Energy Generation25993.(a)(1)The commission, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governors Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, shall develop a strategic plan for new in-state geothermal energy in California.
(2)Development of the strategic plan shall incorporate, but not delay, progress to advance development of new in-state geothermal energy in other relevant policy venues. venues and shall not negatively impact existing geothermal resources.
(3)The strategic plan shall include, but not be limited to, conventional hydrothermal resources and nascent technologies such as advanced closed-loop and enhanced geothermal systems at a range of temperatures, supercritical heat geothermal systems, integrating thermal energy storage with geothermal resources, and geologic thermal energy storage.
(4)The strategic plan is intended to serve an advisory function and shall not form the sole basis of new procurement mandates or requirements.
(b)(1)The commission shall submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
(2)The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)The strategic plan shall include, at minimum, all of the following chapters:
(1)Identification of suitable and recommended locations for the development of new in-state geothermal energy. This shall include state lands leasing goals for new in-state geothermal energy development for 2035 based on the resource needs identified pursuant to subdivision (a) of Section 454.51 of the Public Utilities Code and paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, and for 2045 based on the in-state geothermal resource potential identified pursuant to paragraph (8), and identification of the necessary levels of exploratory well drilling, technology piloting, and other data acquisition to derisk potential opportunities.
(2)Economic and workforce development, including, but not limited to, an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.
(3)Ratepayer benefits and cost impacts.
(4)Transmission planning, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.2.
(5)Permitting, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.3.
(6)Rentals and royalties, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.4.
(7)Assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts.
(8)Assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, inclusive of all resources listed in paragraph (3) of subdivision (a).
(d)The strategic plan shall emphasize and prioritize near-term actions, particularly related to workforce development and costs.
(e)The development of the strategic plan regarding workforce development shall include consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the workforce.
(f)The commission shall provide an opportunity for public review and comment on a draft strategic plan.
25993.1.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the Governors Office of Tribal Affairs, and the State Lands Commission, shall work with stakeholders, other relevant federal, state, and local agencies, as needed, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy.
(b)The State Lands Commission, in coordination with the commission, the Department of Conservation, the Department of Fish and Wildlife, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall establish state lands leasing goals for new in-state geothermal energy development for 2035 based on the resource needs identified pursuant to subdivision (a) of Section 454.51 of the Public Utilities Code and paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, and for 2045 based on the resource potential identified pursuant to paragraph (8) of subdivision (c) of Section 25993, and shall identify opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California.
(c)In identifying suitable locations, the commission and the State Lands Commission shall consider all of the following:
(1)Existing data on geothermal energy resource potential and commercial viability.
(2)Existing and necessary transmission infrastructure.
(3)Protection of cultural and biological resources with the goal of prioritizing least-conflict areas.
(4)With regards to future transfers of land from the federal government to the state, opportunities to prioritize transfers of land that include significant geothermal resources.
(d)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations for the development of new in-state geothermal energy, as specified in paragraph (1) of subdivision (c) of Section 25993.
25993.2.(a)The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall assess the transmission investments and upgrades necessary to support new in-state geothermal energy.
(b)The Public Utilities Commission, in consultation with the commission, the Independent System Operator, and the Department of Water Resources, shall designate new in-state geothermal energy as a long lead-time resource in its recurring input to the Independent System Operators system need scoring for the interconnection and transmission planning process.
(c)The commission, in coordination with the Public Utilities Commission, the Independent System Operator, the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(d)This section does not modify the authority of state agencies over project-specific siting and permitting.
(e)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to transmission planning as specified in paragraph (4) of subdivision (c) of Section 25993.
25993.3.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, shall develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
(b)The permitting roadmap shall identify needed updates to relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decisionmaking authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act (Division 13 (commencing with Section 21000)) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).
(c)The commission shall provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
(d)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to permitting as specified in paragraph (5) of subdivision (c) of Section 25993.
25993.4.(a)The commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, shall assess the level at which new and existing geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, while maintaining competitiveness with rentals and rates on federal lands and in other states.
(b)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to rentals and royalties as specified in paragraph (6) of subdivision (c) of Section 25993.
25993.5.(a)This chapter does not create a technology set-aside or mandatory minimum for any type of eligible renewable energy resource.
(b)This chapter does not require or mandate procurement of any type of eligible renewable energy resource by load-serving entities, including, but not limited to, electrical corporations and community choice aggregators.
The Legislature finds and declares all of the following:
(a)The State of California and its consumers of electricity have a significant and growing need for clean firm energy that can reliably meet demand, regardless of the time of day, season, or weather.(b)(a)The need for reliable firm energy was the driving force behind recent extensions of the lifespan of the Diablo Canyon Power Plant and a number of natural gas-fired powerplants in southern California.
(c)(b)In recognition of this need, the Public Utilities Commission recently issued decisions Decision 21-06-035 (June 24, 2021), Decision Requiring Procurement to Address Mid-Term Reliability (2023-2026), and 24-08-064 (August 22, 2024), Decision Determining Need for Centralized Procurement of Long Lead-Time Resources, which directed Californias load-serving entities and the Department of Water Resources to procure significant amounts of new geothermal energy over the years to come.
(d)(c)If developed and deployed at scale, new in-state geothermal energy can provide significant energy affordability benefits to the state and local communities, in addition to advancing advance Californias progress toward its statutory renewable energy and climate mandates and providing air quality benefits.
(e)(d)The recent United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power, highlighted research that found that aggressive deployment of next-generation geothermal energy technologies could lower the cost of eliminating carbon emissions in the Western Interconnection by as much as 25 percent compared to the status quo without it. a decarbonization strategy relying on solar and storage resources.
(f)Resources providing clean firm reliability are often among the most expensive on the market today, driving up ratepayer costs. New in-state geothermal energy can provide many of those same attributes while helping to limit ratepayer costs over time.(g)The resource portfolios identified by the Public Utilities Commission to meet state climate goals are increasingly relying on out-of-state geothermal energy development, which both puts Californias climate goals at risk and establishes an unnecessary but permanent export of wealth by California ratepayers.(e)Many of the geothermal resources being procured by load-serving entities to meet procurement mandates are out of state, which exports California ratepayer wealth.
(h)(f)The first commercial-scale next-generation geothermal energy resources are currently under development in the States of Nevada and Utah due to those states favorable regulatory environments, Utah, but nearly all of that power is anticipated to be sold to buyers in the State of California.
(i)(g)The State of California must take an active role in ensuring that new geothermal energy projects built to supply the California market lead to investment and job creation in California and do not lead to the export of investment, industry knowledge, and the California geothermal, oil, and gas workforce to neighboring states.
(j)(h)New in-state geothermal energy development presents a significant opportunity to attract investment capital and realize community economic development and workforce development benefits in California, including the development and preservation of a skilled and trained construction workforce to carry out projects, long-term apprenticeship and job creation, and the development of a next-generation geothermal energy supply chain.
(k)(i)California launched the global revolution in conventional geothermal technologies in the 20th century. It has the geologic resources, workforce, and clean energy economy to do so again in the 21st century advance geothermal energy in-state production if decisive state action is taken today. The National Renewable Energy Laboratory estimates that there could be 27.9 gigawatts of development of next-generation geothermal resources deployed in California by 2050, over double that of any other state.
(l)Without urgent and decisive state action, Californias load-serving entities may not be on track to secure the necessary amounts of new in-state geothermal energy to reach Californias ambitious climate goals. Since(j)Since many next-generation geothermal energy projects take a decade or more to construct, a comprehensive planning process must begin now to ensure an adequate in-state supply of geothermal energy when it is needed. Given the geographic constraints on geothermal energy resources, it is also critical that planning begin now in order to ensure that adequate transmission capacity is in place to ensure interconnection once projects are completed.
SEC. 2.Chapter 16 (commencing with Section 25993) is added to Division 15 of the Public Resources Code, to read:16.New In-State Geothermal Energy Generation25993.For purposes of this chapter, the following definitions apply:(a)New in-state geothermal energy is the development of geothermal resources in the state of California, including, but not limited to, conventional hydrothermal resources and the application of nascent technologies such as advanced closed-loop and enhanced geothermal systems at a range of temperatures, including superhot temperatures over 375 degrees Celsius, supercritical heat geothermal systems, integrating thermal energy storage with geothermal resources, and geologic thermal energy storage.(b)Stakeholder means any person or organization interested in or affected by the development of next-generation geothermal energy, including, but not limited to, labor unions, industry, environmental organizations, and environmental justice organizations.25993.1.25993.(a)(1)The commission, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governors Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, shall develop a strategic plan for the development of new in-state geothermal energy in California.
(2)Development of the strategic plan shall incorporate, but not delay, progress to advance development of new in-state geothermal energy in other relevant policy venues.
(3)The strategic plan shall include, but not be limited to, conventional hydrothermal resources and nascent technologies such as advanced closed-loop and enhanced geothermal systems at a range of temperatures, supercritical heat geothermal systems, integrating thermal energy storage with geothermal resources, and geologic thermal energy storage.
(b)(1)The commission shall submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
(2)The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)The strategic plan shall include, at minimum, all of the following chapters:
(1)Identification of suitable and recommended locations for the development of new in-state geothermal energy, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.3. energy. This shall include state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, based on the resource needs identified pursuant to subdivision (a) of Section 454.51 of the Public Utilities Code and paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, and for 2045 based on the in-state geothermal resource potential identified pursuant to paragraph (8), and identification of the necessary levels of exploratory well drilling, technology piloting, and other data acquisition to derisk potential opportunities.
(2)Economic and workforce development, including, but not limited to, an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.
(3)Ratepayer affordability benefits and impacts, including the necessity of identifying and constructing new firm renewable resources that can provide energy at lower costs than what has been historically available. cost impacts.
(4)Transmission planning, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.4. 25993.2.
(5)Permitting, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.5. 25993.3.
(6)Rentals and royalties, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.6. 25993.4.
(7)Assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts.
(8)Assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, inclusive of all resources listed in paragraph (3) of subdivision (a).
(d)The strategic plan shall emphasize and prioritize near-term actions, particularly related to workforce development and ratepayer affordability, to accommodate the probable immediate need for jobs, economic development, and affordability of electricity bills. costs.
(e)The development of the strategic plan regarding workforce development shall include consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the workforce.
(f)The commission shall provide an opportunity for public review and comment on a draft strategic plan.
25993.2.(a)On or before June 1, 2026, the commission shall evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, total system cost, ratepayer, employment, and decarbonization benefits, and shall establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045.(b)In establishing the goals pursuant to subdivision (a), the commission shall consider all of the following:(1)The findings of the most recent joint report issued pursuant to Section 913.11 of the Public Utilities Code.(2)The need to develop an in-state skilled and trained next-generation geothermal energy workforce.(3)The potential to attract supply-chain manufacturing for next-generation geothermal energy components.(4)The need to limit electrical ratepayer bill increases and reduce costs where possible.(5)The need for firm renewable energy that accommodates Californias shifting peak load.(6)The generation profile of new in-state geothermal energy in California.(7)The need for economies of scale to reduce the costs of next-generation geothermal energy.(8)The need to initiate long-term transmission and infrastructure planning to facilitate delivery of new in-state geothermal energy to Californians.(9)The availability of federal, state, and local tax and other incentives for new in-state geothermal energy.(10)The United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power and available assessments of next-generation geothermal energy potential in California.(11)Any executive action from the Governor regarding geothermal energy.(12)Any procurement orders from the Public Utilities Commission that include geothermal energy.(13)Known impacts on Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts.(14)The need for the state to develop a diverse portfolio of renewable and firm clean energy technologies in order to affordably meet state climate goals.(15)The political, economic, and schedule risks of relying on out-of-state resources to provide renewable energy and reliability.25993.3.25993.1.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the Governors Office of Tribal Affairs, and the State Lands Commission, shall work with stakeholders, other relevant federal, state, and local agencies, as needed, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy to accommodate the planning goals established pursuant to Section 25993.2. energy.
(b)The State Lands Commission, in coordination with the commission, the Department of Conservation, the Department of Fish and Wildlife, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the planning goals established pursuant to Section 25993.2, based on the resource needs identified pursuant to subdivision (a) of Section 454.51 of the Public Utilities Code and paragraph (4) of subdivision (a) of Section 454.52 of the Public Utilities Code, and for 2045 based on the resource potential identified pursuant to paragraph (8) of subdivision (c) of Section 25993, and shall identify opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California.
(c)In identifying suitable locations, the commission and the State Lands Commission shall consider all of the following:
(1)Existing data on geothermal energy resource potential and commercial viability.
(2)Existing and necessary transmission infrastructure.
(3)Protection of cultural and biological resources with the goal of prioritizing least-conflict areas.
(4)With regards to future transfers of land from the federal government to the state, opportunities to prioritize transfers of land that include significant geothermal resources.
(d)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations for the development of new in-state geothermal energy, as specified in paragraph (1) of subdivision (c) of Section 25993.1. 25993.
25993.4.25993.2.(a)The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals established pursuant to Section 25993.2. energy.
(b)The Public Utilities Commission, in consultation with the commission, the Independent System Operator, and the Department of Water Resources, shall designate new in-state geothermal energy as a long lead-time resource in its annual recurring input to the Independent System Operators system need scoring for the interconnection and transmission planning process to accommodate the planning goals established pursuant to Section 25993.2. process.
(c)The commission, in coordination with the Public Utilities Commission, the Independent System Operator, the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(d)This section does not modify the authority of state agencies over project-specific siting and permitting.
(e)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to transmission planning as specified in paragraph (4) of subdivision (c) of Section 25993.1. 25993.
25993.5.25993.3.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, shall develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
(b)The permitting roadmap shall identify needed updates to relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decisionmaking authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act (Division 13 (commencing with Section 21000)) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).
(c)The commission shall provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
(d)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to permitting as specified in paragraph (5) of subdivision (c) of Section 25993.1. 25993.
25993.6.25993.4.(a)The commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, shall assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the goals established pursuant to Section 25993.2, goals, while maintaining competitiveness with rentals and rates on federal lands and in other states.
(b)Notwithstanding any other law, including, but not limited to, Sections 6910 and 6913, the State Lands Commission may reduce the geothermal rentals and royalties to reflect the findings of the assessment.(c)(b)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to rentals and royalties as specified in paragraph (6) of subdivision (c) of Section 25993.1. 25993.
25993.7.25993.5.This chapter does not create a technology set-aside or mandatory minimum for any type of eligible renewable energy resource.
The Legislature finds and declares all of the following:
(a)The State of California and its consumers of electricity have a significant and growing need for clean firm energy that can reliably meet demand, regardless of the time of day, season, or weather.
(b)The need for reliable firm energy was the driving force behind recent extensions of the lifespan of the Diablo Canyon Power Plant and a number of natural gas-fired powerplants in southern California.
(c)In recognition of this need, the Public Utilities Commission recently issued decisions 21-06-035 (June 24, 2021), Decision Requiring Procurement to Address Mid-Term Reliability (2023-2026), and 24-08-064 (August 22, 2024), Decision Determining Need for Centralized Procurement of Long Lead-Time Resources, which directed Californias load-serving entities and the Department of Water Resources to procure significant amounts of new geothermal energy over the years to come.
(d)If developed and deployed at scale, new in-state geothermal energy can provide significant energy affordability benefits to the state and local communities, in addition to advancing Californias progress toward its statutory renewable energy and climate mandates and providing air quality benefits.
(e)The recent United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power, highlighted research that found that aggressive deployment of next-generation geothermal energy technologies could lower the cost of eliminating carbon emissions in the Western Interconnection by as much as 25 percent compared to the status quo without it.
(f)Resources providing clean firm reliability are often among the most expensive on the market today, driving up ratepayer costs. New in-state geothermal energy can provide many of those same attributes while helping to limit ratepayer costs over time.
(g)The resource portfolios identified by the Public Utilities Commission to meet state climate goals are increasingly relying on out-of-state geothermal energy development, which both puts Californias climate goals at risk and establishes an unnecessary but permanent export of wealth by California ratepayers.
(h)The first commercial-scale next-generation geothermal energy resources are currently under development in Nevada and Utah due to those states favorable regulatory environments, but nearly all of that power is anticipated to be sold to buyers in California.
(i)The state State of California must take an active role in ensuring that new geothermal energy projects built to supply the California market lead to investment and job creation in California and do not lead to the export of investment, industry knowledge, and the California geothermal, oil, and gas workforce to neighboring states.
(j)New in-state geothermal energy development presents a significant opportunity to attract investment capital and realize community economic development and workforce development benefits in California, including the development and preservation of a skilled and trained construction workforce to carry out projects, long-term apprenticeship and job creation, and the development of a next-generation geothermal energy supply chain.
(k)California launched the global revolution in conventional geothermal technologies in the twentieth 20th century. It has the geologic resources, workforce, and clean energy economy to do so again in the twenty-first 21st century if decisive state action is taken today. The National Renewable Energy Laboratory estimates that there could be 27.9 gigawatts of development of next-generation geothermal resources in California by 2050, over double that of any other state.
(l)Without urgent and decisive state action, Californias load-serving entities may not be on track to secure the necessary amounts of new in-state geothermal energy to reach Californias ambitious climate goals. Since many next-generation geothermal energy projects take a decade or more to construct, a comprehensive planning process must begin now to ensure an adequate in-state supply of geothermal energy when it is needed. Given the geographic constraints on geothermal energy resources, it is also critical that planning begin now in order to ensure that adequate transmission capacity is in place to ensure interconnection once projects are completed.
SEC. 2.Chapter 16 (commencing with Section 25993) is added to Division 15 of the Public Resources Code, to read:16.New In-State Geothermal Energy Generation25993.For purposes of this chapter, the following definitions apply:
(a)New in-state geothermal energy is the development of new geothermal resources in the state of California, including, but not limited to, conventional hydrothermal resources and the application of nascent technologies such as advanced closed-loop and enhanced geothermal systems and integrated at a range of temperatures, including superhot temperatures over 375 degrees Celsius, supercritical heat geothermal systems, integrating thermal energy storage to generate energy from with geothermal resources. resources, and geologic thermal energy storage.
(b)Stakeholder means any person or organization interested in or affected by the development of next-generation geothermal energy, including, but not limited to, labor unions, industry, environmental organizations, and environmental justice organizations.
25993.1.(a)(1)The commission, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governors Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, shall develop a strategic plan for the development of new in-state geothermal energy in California.
(2)Development of the strategic plan shall incorporate, but not delay, progress to advance development of new in-state geothermal energy in other relevant policy venues.
(b)(1)The commission shall submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
(2)The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)The strategic plan shall include, at the minimum, all of the following chapters:
(1)Identification of suitable and recommended locations for the development of new in-state geothermal energy, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.3. This shall include state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, and identification of the necessary levels of exploratory well drilling, technology piloting, and other data acquisition to derisk potential opportunities.
(2)Economic and workforce development, including, but not limited to, an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.
(3)Ratepayer affordability benefits and impacts, including the necessity of identifying and constructing new renewable or carbon-free reliability firm renewable resources that can provide energy at lower costs than what has been historically available.
(4)Transmission planning, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.4.
(5)Permitting, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.5.
(6)Rentals and royalties, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.6.
(7)Assessment of known impacts to Native American and indigenous Indigenous peoples and biological resources, and strategies for addressing those impacts.
(d)The strategic plan shall emphasize and prioritize near-term actions, particularly related to workforce development and ratepayer affordability, to accommodate the probable immediate need for jobs, economic development, and affordability of electricity bills.
(e)The development of the strategic plan regarding workforce development shall include consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the workforce.
(f)The commission shall provide an opportunity for public review and comment on a draft strategic plan.
25993.2.(a)On or before June 1, 2026, the commission shall evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, total system cost, ratepayer, employment, and decarbonization benefits, and shall establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045.
(b)In establishing the goals pursuant to subdivision (a), the commission shall consider all of the following:
(1)The findings of the most recent joint report issued pursuant to Section 913.11 of the Public Utilities Code.
(2)The need to develop an in-state skilled and trained next-generation geothermal energy workforce.
(3)The potential to attract supply-chain manufacturing for next-generation geothermal energy components.
(4)The need to limit electrical ratepayer bill increases and reduce costs where possible.
(5)The need for reliable firm renewable energy that accommodates Californias shifting peak load.
(6)The generation profile of new in-state geothermal energy in California.
(7)The need for economies of scale to reduce the costs of next-generation geothermal energy.
(8)The need to initiate long-term transmission and infrastructure planning to facilitate delivery of new in-state geothermal energy to Californians.
(9)The availability of federal federal, state, and local tax and other incentives for new in-state geothermal energy.
(10)The United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power and available assessments of next-generation geothermal energy potential in California.
(11)Any executive action from the Governor regarding geothermal energy.
(12)Any procurement orders from the Public Utilities Commission that include geothermal energy.
(13)Known impacts on Native American and indigenous Indigenous peoples and biological resources, and strategies for addressing those impacts.
(14)The need for the state to develop a diverse portfolio of renewable and firm clean energy technologies in order to affordably meet state climate goals.
(15)The political, economic, and schedule risks of relying on out-of-state resources to provide renewable energy and reliability.
25993.3.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the Governors Office of Tribal Affairs, and the State Lands Commission, shall work with stakeholders, other relevant federal, state, and local agencies, as needed, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy to accommodate the planning goals established pursuant to Section 25993.2.
(b)The State Lands Commission, in coordination with the commission, the Department of Conservation, the Department of Fish and Wildlife, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the planning goals established pursuant to Section 25993.2, and shall identify opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California.
(c)In identifying suitable locations, the commission and the State Lands Commission shall consider all of the following:
(1)Existing data on geothermal energy resource potential and commercial viability.
(2)Existing and necessary transmission infrastructure.
(3)Protection of cultural and biological resources with the goal of prioritizing least-conflict areas.
(4)With regards to future transfers of land from the federal government to the state, opportunities to prioritize transfers of land that include significant geothermal resources.
(d)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations for the development of new in-state geothermal energy, as specified in paragraph (1) of subdivision (c) of Section 25993.1.
25993.4.(a)The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals established pursuant to Section 25993.2.
(b)The Public Utilities Commission, in consultation with the commission, the Independent System Operator, and the Department of Water Resources, shall designate new in-state geothermal energy as a long lead-time resource in its annual input to the Independent System Operator interconnection queue prioritization Operators system need scoring for interconnection and transmission planning process to accommodate the planning goals established pursuant to Section 25993.2.
(c)The Independent System Operator, in consultation with the commission, the Public Utilities Commission, and the Department of Water Resources, shall reserve appropriate capacity for new in-state geothermal energy in its transmission plan deliverability allocation to accommodate the planning goals established pursuant to Section 25993.2.(d)(c)The commission, in coordination with the Public Utilities Commission, the Independent System Operator, the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)(d)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)(e)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to transmission planning as specified in paragraph (4) of subdivision (c) of Section 25993.1.
25993.5.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, shall develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
(b)The permitting roadmap shall update identify needed updates to relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decision-making decisionmaking authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act (Division 13 (commencing with Section 21000)) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).
(c)The commission shall provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
(d)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to permitting as specified in paragraph (5) of subdivision (c) of Section 25993.1.
25993.6.(a)The commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, shall assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the goals established pursuant to Section 25993.2, while maintaining competitiveness with rentals and rates on federal lands and in other states.
(b)Notwithstanding any other law, including, but not limited to, Sections 6910 and 6913, the State Lands Commission may reduce the geothermal rentals and royalties to reflect the findings of the assessment.
(c)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to rentals and royalties as specified in paragraph (6) of subdivision (c) of Section 25993.1.
25993.7.This chapter does not create a technology set-aside or mandatory minimum for any type of eligible renewable energy resource.
The Legislature finds and declares all of the following:
(a)The State of California and its consumers of electricity have a significant and growing need for clean firm energy that can reliably meet demand, regardless of the time of day, season, or weather.
(b)The need for reliable firm energy was the driving force behind recent extensions of the lifespan of the Diablo Canyon Power Plant and a number of natural gas-fired powerplants in southern California.
(c)In recognition of this need, the Public Utilities Commission recently issued decisions 21-06-035 (June 24, 2021), Decision Requiring Procurement to Address Mid-Term Reliability (2023-2026), and 24-08-064 (August 22, 2024), Decision Determining Need for Centralized Procurement of Long Lead-Time Resources, which directed Californias load-serving entities and the Department of Water Resources to procure significant amounts of new geothermal energy over the years to come.
(d)If developed and deployed at scale, new in-state geothermal energy can provide significant energy affordability benefits to the state and local communities, in addition to advancing Californias progress toward its statutory renewable energy and climate mandates and providing air quality benefits.
(e)The recent United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power, highlighted research that found that aggressive deployment of next-generation geothermal energy technologies could lower the cost of eliminating carbon emissions in the Western Interconnection by as much as 25 percent compared to the status quo without it.
(f)Resources providing clean firm reliability are often among the most expensive on the market today, driving up ratepayer costs. New in-state geothermal energy can provide many of those same attributes while helping to limit ratepayer costs over time.
(g)The resource portfolios identified by the Public Utilities Commission to meet state climate goals are increasingly relying on out-of-state geothermal energy development, which both puts Californias climate goals at risk and establishes an unnecessary but permanent export of wealth by California ratepayers.
(h)The first commercial-scale next-generation geothermal energy resources are currently under development in Nevada and Utah due to those states favorable regulatory environments, but nearly all of that power is anticipated to be sold to buyers in California.
(i)The state of California must take an active role in ensuring that new geothermal energy projects built to supply the California market lead to investment and job creation in California and do not lead to the export of investment, industry knowledge, and the California geothermal, oil, and gas workforce to neighboring states.
(j)New in-state geothermal energy development presents a significant opportunity to attract investment capital and realize community economic development and workforce development benefits in California, including the development and preservation of a skilled and trained construction workforce to carry out projects, long-term apprenticeship and job creation, and the development of a next-generation geothermal energy supply chain.
(k)California launched the global revolution in conventional geothermal technologies in the twentieth century. It has the geologic resources, workforce, and clean energy economy to do so again in the twenty-first century if decisive state action is taken today. The National Renewable Energy Laboratory estimates that there could be 27.9 gigawatts of development of next-generation geothermal resources in California by 2050, over double that of any other state.
(l)Without urgent and decisive state action, Californias load-serving entities may not be on track to secure the necessary amounts of new in-state geothermal energy to reach Californias ambitious climate goals. Since many next-generation geothermal energy projects take a decade or more to construct, a comprehensive planning process must begin now to ensure an adequate in-state supply of geothermal energy when it is needed. Given the geographic constraints on geothermal energy resources, it is also critical that planning begin now in order to ensure that adequate transmission capacity is in place to ensure interconnection once projects are completed.
SEC. 2.Chapter 16 (commencing with Section 25993) is added to Division 15 of the Public Resources Code, to read:16.New In-State Geothermal Energy Generation25993.For purposes of this chapter, the following definitions apply:
(a)New in-state geothermal energy is the development of new geothermal resources in the state of California, including, but not limited to, the application of nascent technologies such as advanced closed-loop and enhanced geothermal systems and integrated thermal energy storage to generate energy from geothermal resources.
(b)Stakeholder means any person or organization interested in or affected by the development of next-generation geothermal energy, including, but not limited to, labor unions, industry, environmental organizations, and environmental justice organizations.
25993.1.(a)(1)The commission, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governors Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, shall develop a strategic plan for the development of new in-state geothermal energy in California.
(2)Development of the strategic plan shall incorporate, but not delay, progress to advance development of new in-state geothermal energy in other relevant policy venues.
(b)(1)The commission shall submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
(2)The plan submitted to the Legislature pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)The strategic plan shall include, at the minimum, all of the following chapters:
(1)Identification of suitable and recommended locations for the development of new in-state geothermal energy, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.3. This shall include state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, and identification of the necessary levels of exploratory well drilling, technology piloting, and other data acquisition to derisk potential opportunities.
(2)Economic and workforce development, including, but not limited to, an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.
(3)Ratepayer affordability benefits and impacts, including the necessity of identifying and constructing new renewable or carbon-free reliability resources that can provide energy at lower costs than what has been historically available.
(4)Transmission planning, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.4.
(5)Permitting, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.5.
(6)Rentals and royalties, including the findings and recommendations resulting from activities undertaken pursuant to Section 25993.6.
(7)Assessment of known impacts to Native American and indigenous peoples and biological resources, and strategies for addressing those impacts.
(d)The strategic plan shall emphasize and prioritize near-term actions, particularly related to workforce development and ratepayer affordability, to accommodate the probable immediate need for jobs, economic development, and affordability of electricity bills.
(e)The development of the strategic plan regarding workforce development shall include consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the workforce.
(f)The commission shall provide an opportunity for public review and comment on a draft strategic plan.
25993.2.(a)On or before June 1, 2026, the commission shall evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, employment, and decarbonization benefits, and shall establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045.
(b)In establishing the goals pursuant to subdivision (a), the commission shall consider all of the following:
(1)The findings of the most recent joint report issued pursuant to Section 913.11 of the Public Utilities Code.
(2)The need to develop an in-state skilled and trained next-generation geothermal energy workforce.
(3)The potential to attract supply-chain manufacturing for next-generation geothermal energy components.
(4)The need to limit electrical ratepayer bill increases and reduce costs where possible.
(5)The need for reliable renewable energy that accommodates Californias shifting peak load.
(6)The generation profile of new in-state geothermal energy in California.
(7)The need for economies of scale to reduce the costs of next-generation geothermal energy.
(8)The need to initiate long-term transmission and infrastructure planning to facilitate delivery of new in-state geothermal energy to Californians.
(9)The availability of federal tax and other incentives for new in-state geothermal energy.
(10)The United States Department of Energy report from March 2024, Pathways to Commercial Liftoff: Next-Generation Geothermal Power and available assessments of next-generation geothermal energy potential in California.
(11)Any executive action from the Governor regarding geothermal energy.
(12)Any procurement orders from the Public Utilities Commission that include geothermal energy.
(13)Known impacts on Native American and indigenous peoples and biological resources, and strategies for addressing those impacts.
(14)The need for the state to develop a diverse portfolio of renewable energy technologies in order to affordably meet state climate goals.
(15)The political, economic, and schedule risks of relying on out-of-state resources to provide renewable energy and reliability.
25993.3.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, and the State Lands Commission, shall work with stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy to accommodate the planning goals established pursuant to Section 25993.2.
(b)The State Lands Commission, in coordination with the commission, the Department of Conservation, the Department of Fish and Wildlife, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045 to accommodate the planning goals established pursuant to Section 25993.2, and shall identify opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California.
(c)In identifying suitable locations, the commission and the State Lands Commission shall consider all of the following:
(1)Existing data on geothermal energy resource potential and commercial viability.
(2)Existing and necessary transmission infrastructure.
(3)Protection of cultural and biological resources with the goal of prioritizing least-conflict areas.
(4)With regards to future transfers of land from the federal government to the state, opportunities to prioritize transfers of land that include significant geothermal resources.
(d)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)The findings and recommendations resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to identification of suitable and recommended locations for the development of new in-state geothermal energy, as specified in paragraph (1) of subdivision (c) of Section 25993.1.
25993.4.(a)The commission, in consultation with the Public Utilities Commission and the Independent System Operator, shall assess the transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals established pursuant to Section 25993.2.
(b)The Public Utilities Commission, in consultation with the commission, the Independent System Operator, and the Department of Water Resources, shall designate new in-state geothermal energy as a long lead-time resource in its input to the Independent System Operator interconnection queue prioritization to accommodate the planning goals established pursuant to Section 25993.2.
(c)The Independent System Operator, in consultation with the commission, the Public Utilities Commission, and the Department of Water Resources, shall reserve appropriate capacity for new in-state geothermal energy in its transmission plan deliverability allocation to accommodate the planning goals established pursuant to Section 25993.2.
(d)The commission, in coordination with the Public Utilities Commission, the Independent System Operator, the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, stakeholders, other relevant federal, state, and local agencies, as needed, California load-serving entities, and the geothermal energy industry, shall make recommendations regarding potential significant adverse environmental impacts and use conflicts, such as avoidance, minimization, monitoring, mitigation, and adaptive management, consistent with Californias long-term renewable energy, greenhouse gas emissions reduction, and biodiversity goals.
(e)This section does not modify the authority of state agencies over project-specific siting and permitting.
(f)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to transmission planning as specified in paragraph (4) of subdivision (c) of Section 25993.1.
25993.5.(a)The commission, in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, shall develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
(b)The permitting roadmap shall update relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decision-making authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act (Division 13 (commencing with Section 21000)) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.).
(c)The commission shall provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
(d)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan relating to permitting as specified in paragraph (5) of subdivision (c) of Section 25993.1.
25993.6.(a)The commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governors Office of Business and Economic Development, shall assess the level at which geothermal rentals and royalties would best support Californias long-term renewable energy and greenhouse gas emissions reduction goals, including the goals established pursuant to Section 25993.2, while maintaining competitiveness with rentals and rates on federal lands and in other states.
(b)Notwithstanding any other law, including, but not limited to, Sections 6910 and 6913, the State Lands Commission may reduce the geothermal rentals and royalties to reflect the findings of the assessment.
(c)The findings resulting from activities undertaken pursuant to this section shall be included in the chapter of the strategic plan related to rentals and royalties as specified in paragraph (6) of subdivision (c) of Section 25993.1.
25993.7.This chapter does not create a technology set-aside or mandatory minimum for any type of eligible renewable energy resource.
|
Date
|
Status
|
|---|---|
| Feb 2, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| May 23, 2025 | In committee: Held under submission. |
| May 14, 2025 | In committee: Set, first hearing. Referred to suspense file. |
| Apr 22, 2025 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (April 21). Re-referred to Com. on APPR. |
| Apr 21, 2025 | Re-referred to Com. on NAT. RES. |
| Apr 10, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Apr 8, 2025 | Re-referred to Com. on NAT. RES. |
| Apr 7, 2025 | Read second time and amended. |
| Apr 3, 2025 | From committee: Amend, and do pass as amended and re-refer to Com. on NAT. RES. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 2). |
| Mar 25, 2025 | Re-referred to Com. on U. & E. |
| Mar 24, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Mar 3, 2025 | Referred to Coms. on U. & E. and NAT. RES. |
| Feb 11, 2025 | From printer. May be heard in committee March 13. |
| Feb 10, 2025 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 21, 2025 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Natural Resources |
Passed |
|
| Apr 2, 2025 | Do pass as amended, and be re-referred to the Committee on [Natural Resources] with recommendation: To Consent Calendar | Assembly Standing Committee on Utilities and Energy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 350 Humboldt | ** Support | |
| 350 Sacramento | ** Support | |
| Active San Gabriel Valley | ** Support | |
| American Clean Power Association | ** Support | |
| California Community Choice Association | ** Support | |
| California Environmental Voters | ** Support | |
| California Nurses for Environmental Health & Justice | ** Support | |
| California State Association Of Electrical Workers | ** Support | |
| California State Pipe Trades Council | ** Support | |
| Citizens’ Climate Lobby, Santa Rosa and North Chapter | ** Support | |
| City of Cloverdale | ** Support | |
| City of San Jose | ** Support | |
| Clean Air Task Force | ** Support | |
| Climate Action California | ** Support | |
| Climate Center | ** Support | |
| Climate Reality Project | ** Support | |
| County of Imperial | ** Support | |
| County of Sonoma | ** Support | |
| Eavor | ** Support | |
| Eavor INC. | ** Support | |
| Elders Climate Action Nor Cal | ** Support | |
| Environmental Defense Fund | ** Support | |
| Facts: Families Advocating for Chemical & Toxics Safety | ** Support | |
| Fervo Energy | ** Support | |
| Geothermal Rising | ** Support | |
| International Brotherhood Of Boilermakers Western States Section | ** Support | |
| International Union of Operating Engineers, Cal-Nevada Conference | ** Support | |
| Move LA | ** Support | |
| Norcal Elder Climate Action | ** Support | |
| Northern Sonoma County Air Pollution Control District | ** Support | |
| ormat technologies | ** Support | |
| Physicians for Social Responsibility, San Francisco Bay | ** Support | |
| Santa Cruz Climate Action Network | ** Support | |
| Sierra Club California | ** Support | |
| Sonoma Clean Power | ** Support | |
| State Building and Construction Trades Council | ** Support | |
| The Climate Reality Project, Silicon Valley | ** Support | |
| The Nature Conservancy | ** Support | |
| USGBC California | ** Support | |
| Western States Council Sheet Metal, Air, Rail And Transportation | ** Support | |
| Xgs Energy | ** Support |
Date of Hearing: May 14, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 526
Author:(Papan) – As Amended Ver:April 10, 2025
Policy Committee: | Utilities and Energy | Vote: | 18 - 0 |
Natural Resources | 14 - 0 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill directs the California Energy Commission (CEC) to develop a strategic plan for new in-state geothermal energy.
Specifically, this bill, among other things:
- Requires the CEC, in coordination with specified state agencies and any other relevant federal, state and local agencies, to develop a strategic plan, subject to public review and comment, for new in-state geothermal energy that includes conventional hydrothermal resources and nascent technologies, and to submit the strategic plan to the Natural Resources Agency and the Legislature by June 30, 2027.
- Requires the CEC, in coordination with the Department of Conservation (Conservation), the Department of Fish and Wildlife (DFW), the State Lands Commission (SLC), stakeholders, other governmental entities as needed, interested Native American tribes, California load-serving entities (such as an electric utility) and the geothermal industry, to develop a permitting roadmap for geothermal energy development.
- Directs the CEC, in coordination with specified state agencies, to work with stakeholders, other relevant federal, state and local agencies, as needed, interested Native American tribes, California load-serving entities and the geothermal industry, to identify suitable and recommended locations for new in-state geothermal energy.
- Directs the SLC, in coordination with many of the same entities listed above, to establish state lands leasing goals for new in-state geothermal energy development, based on the state’s energy resource needs and related requirements and goals.
- Requires (a) the CEC, in consultation with the California Public Utilities Commission (CPUC), the California Independent System Operator (CAISO) and the Department of Water Resources (DWR), to assess the transmission investments and upgrades needed to support in-state geothermal energy and (b) the CPUC, in consultation with the CEC, CAISO and DWR, to designate new in-state geothermal energy as a long lead-time resource in the CPUC’s recurring input to CAISO’s transmission planning processes.
- Requires the CEC, in coordination with SLC, the Department of Conservation, and the Governor’s Office of Business and Economic Development (GO-Biz), to assess the level at which new and existing geothermal rentals and royalties would best support California’s long-term renewable energy and greenhouse gas emissions reduction goals, while maintaining competitiveness with rentals and rates on federal lands and in other states.
FISCAL EFFECT:
This bill will require significant new analytical work of several state agencies—the CEC, the CPUC, Conservation, DFW, GO-Biz, and the SLC, at least—over the period needed to develop and produce the strategic plan; therefore, related costs will be significant.
The following agencies provided cost estimates:
CEC:
- The CEC. The CEC estimates it will need six limited-term positions, for one-year, which would include a supervisor, two environmental planners, two electrical generation system program specialists and one senior attorney, for a total one-year cost of $1.4 million. The appropriate funding sources would be the Energy Resources Programs Account (ERPA), which faces an ongoing structural deficit.
- The Department of Conservation. Conservation estimates it would need approximately several million over five years (Oil, Gas, and Geothermal Account, which is funded by fees assessed on geothermal operators). According to Conservation, year-one costs would total approximately $3.25 million—$2.05 million in contracts, $1 million for four in-house positions and $200,000 for equipment
In addition, Conservation would incur costs of $6 million to acquire geological data needed to complete the suitability assessment, which would include aeromagnetic surveying and airborne gravity surveying over three years.
Conservation also contends it would require the use of a laboratory over two years to analyze data gathered from geothermal spring locations, at an estimated cost of $60,000.
- GO-Biz: GO-Biz estimates costs of ranging between $500,000 and $750,000 (General Fund) to pay for contracts with a third-party to undertake research and investigation related “economic and workforce development.”
- SLC. SLC estimates needing four permanent positions—two mineral resources engineers, an attorney and analyst—to develop a statewide leasing strategy and, should it be required, fulfill the requirements of the California Environmental Quality Act (CEQA), to assess the geothermal mineral potential of lands throughout California and to process and manage new geothermal leasing applications, at a cost of approximately $6 million in the first year—to develop an Environmental Impact Report and master geothermal leasing plan—and approximately $1 million annually ongoing (General Fund).
COMMENTS:
- Purpose. The author intends this bill to require the up-front planning that will eventually lead to the development of substantial amounts of geothermal energy resources. According to the author:
Geothermal energy is essential to California’s carbon-free and renewable future. Unfortunately, the state does not have enough geothermal facilities. They require substantial investment and infrastructure. Without state direction as to a geothermal plan, these challenges are hindering the growth of geothermal and developers are shifting their attention to other states. AB 526 is about doing the necessary planning to facilitate the growth of geothermal energy. It requires the Energy Commission to develop a statewide strategic plan that will guide the expansion of geothermal energy. By setting clear objectives and providing a roadmap for future geothermal projects, the plan will help attract investment, spur job creation, and stimulate economic development in California’s clean energy sector.
- Background. State law requires the 100 percent of retail electricity sales and state agency electricity use to come from renewable and zero-carbon resources by the year 2045. Electricity produced from geothermal energy is such a resource—both renewable, according to the definition in state law, and zero carbon. In addition, geothermal energy can be a “firm” resource, generally meaning it can be called upon to produce electricity when needed, 24 hours a day.
The state agencies planning for achievement of the state’s clean energy goals have called for the procurement of considerable amounts of electricity generated from geothermal energy resources. It’s this call that seems to be motivating supporters of this bill. So, too, are technological developments that could make geothermal resources much more widely available and economic. A coalition of environmental organization write in support of the bill:
Recent advances in deep and/or horizontal drilling using hydraulic fracturing, closed loop systems, and other geothermal-related technologies, collectively referred to as “Advanced Geothermal Energy Systems,” present new opportunities for geothermal resources to be tapped in regions where the resource was previously out of reach. These advances also include technologies that can increase efficiency, reduce water use, and minimize local impacts…California has mandated that all retail electricity sales in the state must come from carbon-free energy sources by 2045. Pursuant to this policy, the California Public Utilities Commission recently directed California’s load-serving entities to procure significant amounts of new geothermal energy over the years to come. If developed and deployed thoughtfully at scale, new in-state geothermal energy can provide significant energy affordability benefits to the state and to local communities, in addition to advancing California’s progress toward its statutory renewable energy and climate mandates and providing air quality benefits. That is what AB 526 aims to ensure.
Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081
Date of Hearing: April 21, 2025
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
ABPCA Bill Id:AB 526 (
Author:Papan) – As Amended Ver:April 10, 2025
SUBJECT: Energy: in-state geothermal energy generation
SUMMARY: Requires the California Energy Commission (CEC), in consultation with other agencies, to develop a strategic plan for new geothermal energy in California, as specified.
EXISTING LAW:
- The Renewables Portfolio Standard (RPS) requires utilities and other retail sellers of electricity to procure 60% of their retail electricity sales from eligible renewable energy resources by 2030 and thereafter, including interim targets of 33% by 2020, 44% by 2024, and 52% by 2027. (Public Utilities Code (PUC) 399.11 et seq.)
- Provides that RPS-eligible generation facilities must use biomass, solar thermal, photovoltaic, wind, geothermal, renewable fuel cells, small hydroelectric, digester gas, limited non-combustion municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current. (PRC 25741)
- Establishes a policy that RPS-eligible renewable energy resources and zero-carbon electric generating facilities will supply 100% of electricity procured to serve California customers by December 31, 2045, and directs the Public Utilities Commission (PUC), CEC, and Air Resources Board (ARB) to incorporate this policy into all relevant planning and programs. (PUC 454.53)
- Requires the PUC to identify a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy in a cost-effective manner. Requires the portfolio to rely upon zero carbon-emitting resources to the maximum extent reasonable and be designed to achieve any statewide greenhouse gas (GHG) emissions limit. (PUC 454.51)
THIS BILL:
- Requires the CEC, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governor’s Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, to develop a strategic plan for the development of new in-state geothermal energy in California.
- Requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
- Requires the plan to include, at minimum, all of the following:
- Identification of suitable and recommended locations for the development of new in-state geothermal energy.
- Economic and workforce development, including an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers.
- An assessment, in consultation with the PUC and California Independent System Operator (CAISO), of transmission investments and upgrades necessary to support new in-state geothermal energy.
- Recommendations on geothermal permitting, including identifying opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California; making recommendations regarding potential significant adverse environmental impacts and use conflicts; and specified considerations in identifying suitable locations.
- An assessment of the level at which geothermal rentals and royalties would best support California’s long-term renewable energy and GHG emissions reduction goals, while maintaining competitiveness with rentals and rates on federal lands and in other states.
- Assessment of known impacts to Native American and indigenous peoples and biological resources, and strategies for addressing those impacts.
- Requires the CEC in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
- Requires the permitting roadmap update relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decision-making authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act.
- Requires the CEC provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
FISCAL EFFECT: Unknown
COMMENTS:
- Background. Geothermal is a form of renewable energy defined as heat energy from the earth. Geothermal resources are reservoirs of hot water that are naturally occurring or are manufactured to operate at varying temperatures and depths below the earth’s surface. Wells, ranging from a few feet to several miles deep, can be drilled into underground reservoirs to tap steam and hot water that can be brought to the surface for use in electricity generation, direct heating, and industrial processes. The United States is the world’s largest producer of geothermal electricity and California has the highest geothermal capacity of all states. “The Geysers” geothermal steam field, located within Lake, Mendocino, and Sonoma Counties, contains 349 out of California’s 563 high-temperature geothermal wells within the state. Imperial County (including the Salton Sea) houses 194 of these wells, and the remaining 20 are located in Lassen, Modoc, and Mono Counties. California has installed 2,627 MW of geothermal nameplate capacity—accounting for 72% of the total geothermal plant capacity in the United States.
- Author’s statement:
Geothermal energy is essential to California’s carbon-free and renewable future. Unfortunately, the state does not have enough geothermal facilities. They require substantial investment and infrastructure. Without state direction as to a geothermal plan, these challenges are hindering the growth of geothermal and developers are shifting their attention to other states.
AB 526 is about doing the necessary planning to facilitate the growth of geothermal energy. It requires the Energy Commission to develop a statewide strategic plan that will guide the expansion of geothermal energy. By setting clear objectives and providing a roadmap for future geothermal projects, the plan will help attract investment, spur job creation, and stimulate economic development in California’s clean energy sector.
- Double referral. This bill was heard by the Utilities and Energy Committee on April 2 and passed, with amendments, by a vote of 18-0.
REGISTERED SUPPORT / OPPOSITION:
Support
Sonoma Clean Power (sponsor)
350 Humboldt
350 Sacramento
Active San Gabriel Valley
American Clean Power Association
California Community Choice Association
California Environmental Voters
California Nurses for Environmental Health & Justice
California State Association of Electrical Workers
California State Pipe Trades Council
Citizens’ Climate Lobby, Santa Rosa and North Chapter
City of Cloverdale
Clean Air Task Force
Climate Action California
Climate Center
Climate Reality Project
County of Imperial
County of Sonoma
Eavor
Elder’s Climate Action NorCal
Environmental Defense Fund
Facts: Families Advocating for Chemical & Toxics Safety
Fervo Energy
Geothermal Rising
International Brotherhood of Boilermakers, Western States Section
International Union of Operating Engineers, Cal-Nevada Conference
Move LA
Northern Sonoma County Air Pollution Control District
Ormat Technologies
Physicians for Social Responsibility - San Francisco Bay
Santa Cruz Climate Action Network
Sierra Club California
State Building and Construction Trades Council
The Climate Reality Project: Silicon Valley
The Nature Conservancy
USGBC California
Western States Council Sheet Metal, Air, Rail and Transportation
XGS Energy
Opposition
None on file
Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /
Date of Hearing: April 2, 2025
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Cottie Petrie-Norris, Chair
ABPCA Bill Id:AB 526 (
Author:Papan) – As Introduced Ver:February 10, 2025
SUBJECT: Energy: new in-state geothermal energy generation
SUMMARY: Requires the California Energy Commission (CEC) in coordination with other relevant state, federal, and local agencies to develop a strategic plan for the development of new in-state geothermal energy in California.
Specifically, this bill:
- Requires the CEC, in coordination with the Department of Conservation, the State Lands Commission, the Office of Land Use and Climate Innovation, the Department of Fish and Wildlife, the Governor’s Office of Business and Economic Development, the Independent System Operator, the Public Utilities Commission, and any other relevant federal, state, and local agencies, as needed, to develop a strategic plan for the development of new in-state geothermal energy in California.
- Requires the CEC to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
- Requires the plan to include, at minimum, all of the following:
- Identification of suitable and recommended locations for the development of new in-state geothermal energy. This includes state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, and identification of the necessary levels of exploratory well drilling, technology piloting, and other data acquisition to derisk potential opportunities.
- Economic and workforce development, including an analysis of occupational safety requirements, the need to require the use of a skilled and trained workforce to perform all work, and the need for the Division of Apprenticeship Standards to develop curriculum for in-person classroom and laboratory advanced safety training for workers. Requires consultation with representatives of key labor organizations and apprenticeship programs that would be involved in dispatching and training the workforce to develop this analysis.
- Ratepayer affordability benefits and impacts, including the necessity of identifying and constructing new renewable or carbon-free reliability resources that can provide energy at lower costs than what has been historically available.
- An assessment, in consultation with the California Public Utilities Commission (CPUC), and California Independent System Operator (CAISO), of transmission investments and upgrades necessary to support the 2035 and 2045 new in-state geothermal energy planning goals, and designating new in-state geothermal energy as a long lead-time resource in CPUC’s input to the CAISO interconnection queue prioritization. Additionally, requires the reservation of appropriate capacity for new in-state geothermal energy in CAISO’s transmission plan deliverability allocation to accommodate the planning goals.
- Recommendations on geothermal permitting, including identifying opportunities to work with the Bureau of Land Management and other relevant federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California; making recommendations regarding potential significant adverse environmental impacts and use conflicts; and specified considerations in identifying suitable locations.
- An assessment of the level at which geothermal rentals and royalties would best support California’s long-term renewable energy and greenhouse gas emissions reduction goals, while maintaining competitiveness with rentals and rates on federal lands and in other states.
- Assessment of known impacts to Native American and indigenous peoples and biological resources, and strategies for addressing those impacts.
- Requires the CEC in coordination with the Department of Conservation, the Department of Fish and Wildlife, the State Lands Commission, other relevant federal, state, and local agencies, as needed, California load-serving entities, interested Native American tribes, and the geothermal energy industry, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure.
- Requires the permitting roadmap update relevant rules and regulations to reflect emerging next-generation technologies and include goals for relevant permitting timeframes, clearly define local, state, and federal agency roles, responsibilities, and decision-making authority, and include interfaces with federal agencies, including timing, sequence, and coordination with federal permitting agencies, and coordination between reviews under the California Environmental Quality Act.
- Requires the CEC provide an opportunity for stakeholder input in the development and communication of the permitting roadmap and an opportunity for public comment on a draft permitting roadmap.
EXISTING LAW:
- Outlines the financial obligations—specifically, rentals and royalties—for geothermal resource leases on state lands to ensure fair compensation for the state. (Public Resources Code § 6913)
- Specifically requires prospecting permits and leases include a royalty of at least 10% of the gross revenue from selling steam, brines (with no minerals extracted), and associated gases. Leases from a competitive sale may include a royalty of up to 16 2/3% of the gross revenue from selling steam, brines (without extracted minerals), and associated gases. (Public Resources Code § 6913 (a)).
- Includes a royalty of at least 2% of the gross revenue from selling any mineral products or chemical compounds recovered from geothermal fluids, based on their first marketable form. (Public Resources Code § 6913 (b)).
- Requires leases and prospecting permits that existed before January 1, 1979, be subject to royalty renegotiation 30 years after the lease begins, and every 10 years after that. The first renegotiated royalty rate can be no higher than 30%, and future increases are limited to no more than 50% above the previous rate. (Public Resources Code § 6913 (e)).
- Allows the States Land Commission to take its share of geothermal resources in kind, rather than receiving monetary royalties. If additional facilities are needed for the state to take its share, the state or its purchaser must provide these at their own expense. Alternatively, if the lessee agrees to provide the facilities, they must be compensated for direct labor and material costs by the state's purchaser or through deductions from royalties due to the state. (Public Resources Code § 6913 (e)).
- Requires the CPUC to adopt a process for each load-serving entity (LSE) serving end-use customers in the state, to file an integrated resource plan (IRP) and schedule periodic updates to the plan to ensure that LSEs accomplish specified objectives. Requires each LSE to prepare and file an IRP consistent with those objectives on a time schedule directed by the CPUC and subject to CPUC review. (Public Utilities Code § 454.52)
- Establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. (Public Utilities Code § 454.53)
- Requires that the IRP of each LSE contribute to a diverse and balanced portfolio of resources needed to ensure a reliable electricity supply that provides optimal integration of renewable energy resources in a cost-effective manner, meets the emissions reduction targets for GHG emissions established by CARB for the electricity sector, and prevents cost-shifting among LSEs. (Public Utilities Code § 454.54)
- Requires the CPUC, CEC, and California State Air Resources Board (CARB) to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter that includes specified information relating to the implementation of that state policy.
- Requires the CEC to submit to the Legislature an assessment by December 31, 2023, of firm zero-carbon resources that support a clean, reliable, and resilient electrical grid and will help achieve the existing statutory goal of ensuring renewable energy and zero-carbon resources supply 100%of all retail sales of electricity to California customers by December 31, 2045. (Public Resources Code § 25216.7)
- Defines “firm zero-carbon resources” as electrical resources that can individually, or in combination, deliver zero-carbon electricity with high availability for the expected duration of multiday extreme or atypical weather events, including periods of low renewable energy generation, and facilitate integration of eligible renewable energy resources into the electrical grid and the transition to a zero-carbon electrical grid. (Public Resources Code § 25216.7 (d)(2))
- Requires the CEC to adopt the Integrated Energy Policy Report (IEPR) every two years, which must contain an overview of major energy trends and issues facing the state, including, but not limited to, supply, demand, pricing, reliability, efficiency, and impacts on public health and safety, the economy, resources, and the environment. (Public Resources Code §§ 25300-25327)
- Requires the CEC to timely incorporate firm zero carbon resources in to the IPER. (Public Resources Code § 25305.5)
FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Committee on Appropriations for its review.
CUSTOMER COST IMPACTS: This measure requires the CEC in coordination with other relevant state, federal, and local agencies to develop a strategic plan for the development of new in-state geothermal energy in California. While the bill does not directly affect consumers, it lays the ground work for procurement of in-state geothermal that could eventually affect utility rates.
BACKGROUND:
Planning for a Clean Energy Transition – California has a complicated but robust electric planning and procurement regime spread across the CPUC, CEC, and CAISO. This regime guides the current procurement the LSEs conduct, and informs mid- and long-term procurement strategies. The regime is complementary, where one resource may count toward meeting many facets of an LSE’s procurement requirements and planning goals. The main pieces of the regime include the IRP, the related SB 100 Report, and the IEPR.
The IRP (CPUC, every 2 years) – SB 350 (De León, Chapter 547, Statutes of 2015) mandates the CPUC to adopt a process for each regulated LSEs – electrical corporations, community choice aggregators, and electric service providers – file an IRP. The goal is to reduce the cost of achieving GHG emission reductions by looking broadly at system needs, rather than at individual LSEs or resource types. The IRP process begins with the CPUC developing a Reference System Plan (RSP), which estimates what LSEs should procure to meet clean energy and climate goals cost-effectively.
In February 2024, the CPUC adopted a decision within its IRP process to align the state's electric sector with an ambitious greenhouse gas (GHG) reduction target of 25 million metric tons (MMT) by 2035.[1] This target represents the most aggressive target within the range identified by CARB, and reflects the state’s commitment to decarbonize the power sector. To meet this target, the CPUC has determined that 56 GW of new clean energy resources will be needed by 2035 of which up to 2 GW is for geothermal, 7 GW for in-state wind, and 20 GW of solar, among other resources. [2]
SB 100 Report (Joint Agencies, every 4 years) – While the IRP focuses on what energy mix is best suited to meet our GHG and reliability goals 10-15 years into the future, the Joint Agency SB 100 Report looks at a planning horizon 24 years out, to determine how best to implement the 100%-clean-electricity-by-2045 policy enacted under SB 100 (De León, Chapter 312, Statutes of 2018). The first SB 100 report was finalized in March 2021, and included analyses of many pathways to achieve the state’s 2045 clean energy goal, including a study scenarios examining “zero-carbon firm resources.”[3] The report is required to include an evaluation of costs and benefits to customer rate impacts, as well as, barriers to achieving the SB 100 policy. Additionally, the report will be updated every four years, with the next edition anticipated soon and focused on system reliability[4] among other considerations.
IEPR (CEC, every 2 years) – a forecast of all aspects of energy industry supply, production, transportation, delivery, distribution, demand, and pricing. The CEC is then required to use these assessments and forecasts to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. The CEC is also required to publish a strategic plan for California’s transmission grid and weave it into the broader IEPR framework.[5] The CEC adopts an IEPR every two years with updates every other year.
Geothermal Energy – Geothermal is a form of renewable energy defined as heat energy from the earth. Geothermal resources are reservoirs of hot water that are naturally occurring or are manufactured to operate at varying temperatures and depths below the earth’s surface. Wells, ranging from a few feet to several miles deep, can be drilled into underground reservoirs to tap steam and hot water that can be brought to the surface for use in electricity generation, direct heating, and industrial processes.[6] The United States is the world’s largest producer of geothermal electricity and California has the highest geothermal capacity of all states.[7] “The Geysers” geothermal steam field, located within Lake, Mendocino, and Sonoma Counties, contains 349 out of California’s 563 high-temperature geothermal wells within the state. Imperial County (including the Salton Sea) houses 194 of these wells, and the remaining 20 are located in Lassen, Modoc, and Mono Counties.[8] California has installed a 2,627 MW of geothermal nameplate capacity—accounting for 72% of the total geothermal plant capacity in the United States.[9]
Firm Zero-Carbon Report – “Firm power” generally refers to electricity resources that can deliver electricity at any time, for as long as needed.[10] These resources may include anything from fossil fuel plants (coal, biomass, natural gas, etc.) to nuclear energy to geothermal or hydropower. Much of the firm power currently in use in California is from natural gas.[11] However, as California transitions to a decarbonized grid, there are studies that highlight the need for clean firm power to support the state’s clean transition.[12] Recognizing the need, the Legislature adopted SB 423 (Stern, Chapter 243, Statutes of 2021) which requires the CEC in consultation with CPUC, CAISO, and CARB to submit by December 31, 2023, an assessment of firm zero-carbon resources that support a clean, reliable, and resilient electrical grid. SB 423 provided a statutory definition of “firm zero-carbon resources” as electrical resources that can individually, or in combination, deliver zero-carbon electricity with high availability for the expected duration of multiday extreme or atypical weather events, including periods of low renewable energy generation, and facilitate integration of eligible renewable energy resources into the electrical grid and the transition to a zero-carbon electrical grid. This definition could apply to a variety of generation and storage technologies, both known and nascent, from geothermal to green electrolytic hydrogen to long-duration storage.
Technology Advancement. Natural geothermal systems develop in regions where hot rocks, fluid, and underground permeability naturally coexist. These three factors enable the development of conventional geothermal systems, which harness heat from underground reservoirs without altering ecological conditions.[13] However, in areas lacking one or more of these elements, modifications are necessary to create viable geothermal resources. One such approach is Enhanced Geothermal Systems (EGS), which involve injecting fluid into hot rocks to reopen fractures and enhance underground fluid circulation, effectively creating engineered reservoirs. Currently, all geothermal projects in the U.S. utilize conventional geothermal resources. However, according to the SB 423 report, EGS is expected to play a dominant role in future geothermal development, offering greater scalability and accessibility for clean energy production. The report also notes that the Department of Energy recognizes that only a small portion of the existing geothermal energy potential in the U.S. is accessible with conventional technology and asserts that R&D to advance EGS can unlock new reservoirs domestically.
Permitting Challenges. Geothermal projects in California must comply with both federal and state-level environmental regulations, specifically the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA).
i) NEPA– Mandates federal agencies to evaluate the environmental impacts of proposed projects. Depending on the project’s potential effects, developers must complete either an Environmental Assessment (EA) or a more comprehensive Environmental Impact Statement (EIS), which can significantly extend approval timelines
ii) CEQA– Mandates state and local agencies to identify and mitigate significant environmental impacts of proposed projects. If a project is found to have substantial environmental effects, developers must prepare an Environmental Impact Report (EIR), outlining potential risks and mitigation strategies. The California Department of Conservation’s Geologic Energy Management Division (CalGEM) oversees compliance with CEQA for geothermal projects, ensuring responsible resource development.
These regulatory requirements, while essential for environmental protection, contribute to prolonged permitting timelines and increased costs, making geothermal project development in California more challenging compared to other states with more streamlined approval processes.
The SB 423 report notes that the geothermal permitting process is often time-consuming and often plagued by delays part of which is caused by heavy workloads on agencies who are already short staffed.[14] The report recommends that agencies develop an interagency Memoranda of Understanding (MOUs) that clearly define agency responsibilities and align permitting processes to reduce duplication and streamline approvals.[15]
COMMENTS:
- Author’s Statement. According to the author, “Geothermal energy is essential to California’s carbon-free and renewable future. Unfortunately, the state does not have enough geothermal facilities. They require substantial investment and infrastructure. Without state direction as to a geothermal plan, these challenges are hindering the growth of geothermal and developers are shifting their attention to other states. AB 526 is about doing the necessary planning to facilitate the growth of geothermal energy. It requires the Energy Commission to develop a statewide strategic plan that will guide the expansion of geothermal energy. By setting clear objectives and providing a roadmap for future geothermal projects, the plan will help attract investment, spur job creation, and stimulate economic development in California’s clean energy sector.”
- Procurement Goal. The strategic plan requires the CEC to evaluate and quantify the maximum feasible capacity of new in state geothermal energy, including establishing megawatt in state next-generation geothermal planning goals for 2035 and 2045. Such provisions assumes a procurement goal. Procurement decisions are best developed by state regulators as they require technical analysis, regulatory coordination, and the flexibility to adapt to market conditions. Moreover, the Legislature in adopting the IRP process in 2015 as mentioned earlier in the background, established a framework through which all procurement decisions are meant to be channeled, in order to optimize the best GHG reducing resources for the least cost. The feasible capacity targets of this measure would exist outside of this multiagency planning regime, and only through the lens of one resource, greatly diminishing the benefits of the IRP. As such, the author and the committee recommend deleting provisions related to establishing megawatt in-state next-generation geothermal planning goals for 2035 and 2045, and striking the entirety of Section 25993.2.
- Benefit of a Strategy. By requiring the CEC in coordination with other relevant state, federal and local agencies to develop a strategic plan for the development of new in-state geothermal energy in California, this measure aims to scale up the development of new in state geothermal. As previously noted, geothermal energy, can supply power even when intermittent resources – such as solar and wind – are offline (such as at night or on cloudy days), and therefore support California in its transition to a 100% clean electricity by 2045 and maintain system reliability. Recognizing the need, California has authorized procurement orders for geothermal energy through various channels:
- Integrated Resource Plan (IRP): As denoted earlier in the background, the IRP is California’s procurement strategy used by California’s electric providers and the CPUC to ensure the state’s electricity system remains reliable, cost-effective and aligned with clean energy goals.[16] In February 2024, the CPUC adopted the 2023 Preferred System Plan which estimated that at least 2 GW of geothermal energy is needed to meet the GHG reduction target of 25 million metric tons (MMT) by 2035.[17]
- In June 2021, the CPUC issued a major procurement order – Decision 21-06-035, also known as the Mid-Term Reliability (MTR) requiring utilities to procure 11,597 MW between 2023 and 2026.[18] Of this quantity, about 1,000 MW of geothermal energy was ordered[19] with an additional 4,000 MW of net qualifying capacity (NQC) ordered in early 2023[20] following an updated load forecasting by the CEC.
- In 2023, the legislature adopted AB 1373 which authorized the CPUC through a central procurement mechanism to work with the Department of Water Resources (DWR) to procure offshore wind, geothermal and long lead time resources aiming to facilitate the development of clean energy resources and meet the state’s 100% clean energy goals.[21] The decision identified four types of Long Lead Time resources for DWR to seek procurement solicitations; the total solicitation cap was 10.6 GW, with about 1 GW geothermal energy.[22]
These procurement orders reflect California’s progress and intention to expand geothermal energy generation. However, geothermal energy struggles to scale in-state primarily due to its high capital costs and extended development timelines. Many geothermal developers opt to construct projects outside of California and contract with California’s LSEs to meet the above procurement obligations. Fervo Energy, a company focused on harnessing heat energy through enhanced geothermal systems, is currently developing a 400 MW geothermal plant in Cape Station, Utah and has already secured two power purchase agreements (PPAs) totaling 320 MW with Southern California Edison (SCE).[23] Similarly, Fervo Energy has entered into a 20MW power purchase agreement with a group of nine California-based community choice aggregators (CCAs) to provide them with geothermal energy. Fervo also has partnered with East Bay Community Energy to provide 40 MW of geothermal energy. Additionally, Fervo Energy will add 18 MW of geothermal power to the Clean Power Alliance (CPA) energy portfolio. This is built on a previous contract for 30 MW for a total of 48 MW of geothermal energy to CPA.
As discussed earlier, the recent procurement orders require LSEs to procure a specified amount of geothermal energy as part of their long-term resource planning obligations. These existing procurement orders suggest that the limitation to in-state geothermal development is not for want of procurement direction. This legislation explores other barriers in requiring the State Land Commission, in coordination with the CEC, and other specified agencies to establish state lands leasing goals for new in-state geothermal energy development. However, these land leasing goals are not informed by the existing procurement activities or directions. As such, the committee recommends that the state leasing goals shall be aligned to procurement obligations established under IRP, MTR, and DWR.
Given the potential of other, nascent geothermal technologies, the supporters of the bill contend that the evaluation of all types of geothermal resources could unlock greater geological potential and help identify where and how much geothermal energy could be developed in the future. To achieve this aim, the committee recommends that the Division of Geologic Energy Management lead an assessment of all in-state geothermal resources potential utilizing the best available data. This assessment shall support the state lands leasing goals for new in-state geothermal energy development for 2045 as called for in this measure.
- Adjust Geothermal Rentals and Fees. This measure requires the CEC, the States Land Commission, and other specifies agencies to assess the level at which geothermal rentals and royalties would best support California’s renewable energy, and greenhouse gas emission reductions goals. Rentals refer to the annual fees paid for by geothermal developers for the right to lease land for exploration or development. Geothermal royalties are payments made by developers to the government for the right to extract and use geothermal resources (like steam or hot water) from public lands. Public Resources Code § 6913, outlines the financial obligations—specifically, rentals and royalties—for geothermal resource leases on state lands to ensure fair compensation for the state. This legislation specifies that the State Lands Commission may reduce the geothermal rentals and royalties independently, based on the findings of the assessment in the strategic plan. Such provision both presupposes the report’s outcome as one that will recommend a reduction in such payments, and undermines the Legislature’s fiscal authority. As such, the committee recommends striking Section 25993.6 (b) of this bill.
- Additional Clean-Up. This bill contains two definitions, minor inaccuracies, and various provisions in its findings and declarations that the committee recommends striking due to inconsistencies or lack of clarity.
- Related Legislation
AB 531 (Rogers) would expand the types of facilities eligible to be certified as environmental leadership development projects by the Energy Commission to include geothermal power plants and geothermal field development projects, as defined. Status: Assembly Utilities and Energy Committee
AB 527 (Papan) would allow geothermal exploratory projects that meet the same environmental standards, as determined by the lead agency overseeing the project, to be considered compliant with California Environmental Quality Act (CEQA). Status: Assembly Natural Resources Committee
- Prior Legislation
AB 1359 (Papan), authorizes the Geologic Energy Management Division (CalGEM) in the Department of Conservation (DOC) to delegate lead agency authority under the California Environmental Quality Act (CEQA) for geothermal exploratory projects, as provided. Status: Chaptered by Secretary of State - Chapter 678, Statutes of 2024.
AB 1373 (Garcia), authorizes the Department of Water Resources (DWR) to serve as a central procurement entity to procure energy resources to include offshore wind, long-duration storage, and geothermal in order to help the state meet its renewable and zero-carbon energy resources and reliability goals. Status: Chaptered by Secretary of State - Chapter 367, Statutes of 2023.
AB 205 (Committee on Budget), among its many provisions, established the SRR at DWR to fund procurement of backstop resources to provide reliability to CAISO’s grid. Status: Chapter 61, Statutes of 2022.
AB 1161 (E. Garcia, 2021) would have required DWR to procure newly developed eligible renewable energy resources or zero-carbon resources, and energy storage associated with those resources, in an amount that satisfies 100% of the electricity procured to serve all state agencies by December 31, 2030. Status: Died – Assembly Committee on Utilities and Energy.
SB 423 (Stern) requires the CEC to submit to the Legislature an assessment by December 31, 2023, of firm zero-carbon resources that support a clean, reliable, and resilient electrical grid and will help achieve the existing statutory goal of ensuring renewable energy and zero-carbon resources supply 100 percent of all retail sales of electricity to California customers by December 31, 2045. Status: Chapter 243, Statutes of 2021.
AB 56 (E. Garcia, 2019) would have required the CPUC to empower the CAEATFA to undertake backstop procurement of electricity that would otherwise be performed by an electrical corporation to meet state resource adequacy, integrated resource planning, and renewable portfolio standard goals not satisfied by retail sellers or load-serving entities. Status: Died – Senate Committee on Energy, Utilities, and Communications.
SB 350 (De León), among its many provisions, requires the CPUC to adopt a process for each LSE to file an IRP starting in 2017 and updating periodically. Additionally requires POUs to file an IRP by January 1, 2019. Status: Chapter 547, Statutes of 2015.
SB 100 (De León) established the 100 Percent Clean Energy Act of 2018 which increases the RPS requirement from 50% by 2030 to 60%, and creates the policy of planning to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045, for a total of 100% clean energy. Status: Chapter 312, Statutes of 2018.
- Double Referral. This bill is double-referred; upon passage in this Committee, this bill will be referred to the Assembly Committee on Natural Resources.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Humboldt
350 Sacramento
Active San Gabriel Valley
American Clean Power Association
California Environmental Voters
California Nurses for Environmental Health and Justice
California State Association of Electrical Workers
California State Pipe Trades Council
Citizens’ Climate Lobby Santa Rosa and North
City of Cloverdale
City of San Jose
Clean Air Task Force
Climate Action California
Climate Center; the
Climate Reality Project
County of Imperial
County of Sonoma
Eavor INC.
Environmental Defense Fund
Facts Families Advocating for Chemical and Toxics Safety
Fervo Energy
Geothermal Rising
International Brotherhood of Boilermakers, Western States Section
International Union of Operating Engineers, Cal-nevada Conference
Move LA
Norcal Elder Climate Action
Northern Sonoma County Air Pollution Control District
Ormat Technologies, INC.
San Francisco Bay Physicians for Social Responsibility
Santa Cruz Climate Action Network
Sierra Club California
Sonoma Clean Power
Usgbc California
Western States Council Sheet Metal, Air, Rail and Transportation
Xgs Energy
Opposition
None on file.
Analysis Prepared by: Lina V. Malova / U. & E. / (916) 319-2083
California Public Utilities Commission; “CPUC Drives California Toward a Clean Energy Future”; Accessed March 29, 2025 ↑
Proposed Decision 24-02-047 issued 2/15/2024 in IRP Proceeding, Rulemaking 20-05-003 ↑
Pg.12, SB 100 Joint Agency Report;” March 2021 ↑
Pg. 1, SB 100 Joint Agency Report. March 2021 ↑
California Public Resources Code Section 25324 ↑
Pg. 16; SB 423 Report “Emerging Renewable and Firm Zero-Carbon Resources”; December 2024 ↑
Pg. ii; “California Energy Commission, California Department of Conservation, California Geologic Energy Management Division (CalGEM), “Assessing California’s Population of Low-Temperature Geothermal Wells for Plugging and Abandonment” September 2023 ↑
Pg. E-2; “SB 423 Emerging Renewable and Firm Zero-Carbon Resources”; December 2024 ↑
Robins, Jody C., Amanda Kolker, Francisco Flores-Espino, Will Pettitt, Brian Schmidt, Koenraad Beckers,
Hannah Pauling et al. 2021. U.S. Geothermal Power Production and District Heating Market Report.
https://www.nrel.gov/docs/fy21osti/78291.pdf ↑
Long, JCS, et al., “Clean Firm Power is the Key to California’s Carbon-Free Energy Future,” Issues in Science and Technology, March 24, 2021. ↑
Roughly 42 MW; Long, JCS, et al. “Clean Firm…,” Issues. ↑
Long, JCS, et al. “Clean Firm…,” Issues (citation 1), and E3, “Long-Run Resource Adequacy under Deep Decarbonization Pathways for California,” June 2019; ↑
Pg. 17; California Energy Commission; “Report: SB 423 Emerging Renewable Firm and Firm Zero-Carbon Resources Report”, December 2024 ↑
E-6; California Energy Commission; “Report: SB 423 Emerging Renewable Firm and Firm Zero-Carbon Resources Report”, December 2024 ↑
Ibid ↑
Integrated Resource Plan, https://www.cpuc.ca.gov/irp/ ↑
Pg. 68; CPUC ; Decision 24-02-047; February 15, 2024 ↑
Page 25, Decision 21-06-035 June 24, 2021, California Public Utilities Commission. ↑
https://fervoenergy.com/fervo-energy-announces-320-mw-power-purchase-agreements-with-southern-california-edison/, June 25, 2024 ↑
https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-augments-historic-clean-energy-procurement-goals-to-ensure-electric-reliability-2023, February 23, 2023 ↑
https://legiscan.com/CA/text/AB1373/id/2815509, Bill text CA AB1373, 2023-2024, LegiScan ↑
Bernier P. et al, CPUC Authorizes Procurement of 10.6 GW of Clean Energy Resources Under AB 1373, https://www.mayerbrown.com/en/insights/publications/2024/08/cpuc-authorizes-procurement-of-106-gw-of-clean-energy-resources-under-ab-1373
Ciampoli P., Recent Developments in Texas, California Mark New Milestones for Geothermal Energy, American Public Power Association, https://www.publicpower.org/periodical/article/recent-developments-texas-california-mark-new-milestones-geothermal-energy, August 28, 2024. ↑
Bill Author
Bill Co-Author(s):