Papan Legislation to Unlock California’s Next Generation of Geothermal Energy Approved by the State Assembly

SACRAMENTO, CA — Legislation to accelerate California’s clean energy transition authored by Assemblymember Diane Papan has been approved by the California State Assembly. The bill, Assembly Bill 527, will remove bureaucratic roadblocks for exploratory geothermal energy projects that meet strict environmental standards. The bill will streamline the development of this underutilized but highly reliable source of renewable energy by exempting qualifying exploratory projects from the California Environmental Quality Act (CEQA).

“Geothermal energy is uniquely positioned to help California meet its renewable energy goals because it doesn’t stop when the sun goes down or the wind stops blowing,” said Assemblymember Papan. “We have the technology, we have the environmental standards, and we have the opportunity.”

Unlike solar and wind, geothermal energy offers constant, around-the-clock power. It is already a proven resource in the state, currently accounting for 5% of California’s total in-state electricity generation. But with advances in drilling and subsurface imaging technologies, vast untapped geothermal reserves beneath California’s surface could significantly expand that portfolio.

To access those resources, developers must first drill exploratory wells to assess subsurface conditions—a low-impact activity when done responsibly. Under current CEQA regulations, this exploratory phase is treated as a standalone project requiring a separate environmental review. This duplicative process can delay development by years, adding unnecessary costs and pushing geothermal investment to other states like Nevada and Utah. In contrast, the federal government has already proposed a categorical exclusion under the National Environmental Policy Act (NEPA) for such exploratory activities that AB 527 will align with.

“California can’t afford to let green tape hold back reliable, clean energy,” Papan added. “AB 527 is a smart, strategic fix that aligns state policy with federal standards while upholding our environmental values.”

By creating a CEQA exemption for exploratory geothermal projects that adhere to rigorous environmental stewardship, AB 527 could catalyze the development of up to 30 gigawatts of next-generation geothermal capacity by 2050. That’s more than double the total geothermal output of any other state, positioning California as a national leader in base-load renewable energy production.

“Geothermal is the backbone of a clean energy grid—always on, always available,” said Assemblymember Papan. “With AB 527, we’re laying the groundwork to scale that backbone, power our communities, and lead the nation toward a net-zero future.”

Assembly Bill 527 will soon be heard in the California State Senate.