House Passes Bill to Speed Geothermal Permitting and Expand NEPA Exemptions

The House approved the Geothermal Energy Advancement Act on Tuesday afternoon in a voice vote. The bill combines elements from several Republican- and Democratic-authored measures aimed at accelerating federal approvals for geothermal projects. Geothermal energy generates electricity and heating by drilling deep into the Earth to reach underground reservoirs of hot, typically porous rocks saturated with water.

The extracted heat produces steam that travels through piping and turbines. The technology has historically been limited to regions with high volcanic activity and tectonic movement, such as Iceland and New Zealand, but hydraulic fracturing methods developed by the oil and gas industry now allow developers to target heat several miles underground.

The Energy Department states that geothermal energy has a capacity factor of 65 percent, second only to nuclear power among energy sources.

The bill seeks to address lengthy federal permitting requirements that have limited commercial deployment. Rep. Jeff Hurd (R-CO) first introduced the legislation. It requires Interior Secretary Doug Burgum to appoint a geothermal ombudsman within 60 days to serve as a liaison among Bureau of Land Management offices and streamline permitting.

The measure also directs the interior secretary to establish a geothermal permitting task force within 60 days. A separate provision, added from legislation introduced by Rep. Celeste Maloy (R-UT), requires the secretary to process geothermal-related applications such as leasing and drilling permits within 60 days.

The bill was further amended to include a provision from Rep. Susie Lee (D-NV) that expands a categorical exclusion from National Environmental Policy Act requirements for certain geothermal projects. Categorical exclusions apply to actions that do not require extensive environmental assessments under NEPA.

The House passed separate legislation last December aimed at reforming NEPA, a 55-year-old law that requires federal agencies to consider environmental effects when issuing permits. The Senate has not yet released text of its version. Democrats in the upper chamber have expressed concern that the Trump administration would not fairly implement reforms for renewable projects such as wind and solar.

Republicans and Democrats in the Senate have indicated in recent weeks that progress is being made on a broader permitting deal. Congress is scheduled to break in August, leaving limited time before the midterm elections.