SACRAMENTO, CA — Legislation authored by Assemblymember Diane Papan to accelerate California’s clean energy transition has passed both houses of the California Legislature and is now on Governor Gavin Newsom’s desk for signature.
Assembly Bill 527 will exempt qualifying geothermal exploratory projects from the California Environmental Quality Act (CEQA) if projects meet strict environmental safeguards and local permitting requirements. The bill aims to remove duplicative environmental review for low-impact exploratory wells, aligning California policy with federal standards while maintaining rigorous oversight.
“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 with AB 527, we finally have a clear path forward to unlock this clean, reliable energy source.”
Under AB 527, geothermal exploratory projects that meet specific conditions—including pre-project environmental surveys, public posting of applications and determinations, and local lead agency oversight—will be exempt from CEQA until January 1, 2031. Counties, as lea agencies, may require indemnity bonds and projects must provide baseline environmental data for future development phases.
The bill also directs the California Geologic Energy Management Division (CalGEM) to adopt regulations by January 1, 2029, governing enhanced geothermal system wells—a technology expected to expand California’s geothermal potential significantly.
California is already the nation’s leader in geothermal energy, with 43 operating power plants producing about 5% of the state’s electricity. Experts estimate that with modern drilling and imaging technologies, California could develop up to 30 gigawatts of next-generation geothermal capacity by 2050—enough to more than double the total geothermal output of any other state.
“Geothermal energy offers California the potential for a truly clean energy grid—always on, always available,” Papan added. “With AB 527, we are enabling responsible exploration and laying the foundation for a net-zero future powered by California ingenuity.”
Assembly Bill 527 is now enrolled to the Governor who has until October 12, 2024 to sign or veto the legislation.
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