AB 526: Energy: new in-state geothermal energy generation.

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.