AMENDED IN SENATE AUGUST 13, 2026
AMENDED IN SENATE JULY 6, 2026
AMENDED IN SENATE JUNE 15, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
96
Introduced by Assembly Member Papan
February 19, 2026
An act to amend Section 21065.5 of Sections 3715.5 and 21065.5 of, and to add Sections 3715.6 and 21065.6 to, the Public Resources Code, relating to geothermal resources.
Vote: majority Appropriation: no Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if the lead agency finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
Existing law establishes the Geologic Energy Management Division in the Department of Conservation. Existing law requires the division to be the lead agency for all geothermal exploratory projects for purposes of CEQA, except as provided. Existing law defines “geothermal exploratory project,” for purposes of CEQA, in part as a project composed of not more than 6 wells and associated drilling and testing equipment whose chief and original purpose is to evaluate the presence and characteristics of geothermal resources. Existing law requires wells included within a geothermal exploratory project to be located at least ½ mile from geothermal development wells that are capable of producing geothermal resources in commercial quantities.
This bill would expressly include as part of a geothermal exploratory project, among other things, equipment and activities necessary to establish interconnectivity between wells and reservoirs. The bill would specify that the above-described ½ mile½–mile
limit is measured from any point all points along the wellhead location and well course and would exclude certain wells connecting to geothermal reservoirs from this limit if written consent is provided by the owner and operator of the geothermal development well that is producing in commercial quantities, as specified.
course.
This bill would define, for the purposes of CEQA, “geothermal technology pilot project.” The bill would require the division to be the lead agency for all geothermal technology pilot projects, except as provided.
Existing law requires the owner or operator of any well, before commencing the original drilling of a well or the redrilling of an abandoned well, to file with the State Oil and Gas Supervisor or the district deputy a written notice of intention to commence drilling, accompanied by a prescribed fee. A violation of the geothermal resources laws is a crime.
This bill would require, before commencing the drilling, deepening, or redrilling of a well that is part of a geothermal technology pilot project, the owner or operator of that well to file with the supervisor a written notice of intention to commence drilling pursuant to the above-described provision. The bill would require, if a notice of intention is submitted for a well that is part of a geothermal technology pilot project and the well is located within ½ mile of an existing geothermal well capable of producing in commercial quantities, the notice of intent to include a written consent agreement that meets specific requirements, as provided. Because a violation of these requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1.
Section 3715.5 of the Public Resources Code is amended to read:
3715.5.
(a) For the purposes of the California Environmental Quality Act Division 13 (commencing with Section 21000), the division shall be the lead agency as defined in Section 21067 for all geothermal exploratory projects as defined in Section 21065.5. 21065.5 and for all geothermal technology pilot projects as defined in Section 21065.6.
(b) (1) The division may delegate its lead agency responsibility under this section to a county that has adopted a geothermal element, as defined in Section 25133, for its general plan.
(2) Upon the request of an applicant, the county in which a geothermal exploratory project is located, regardless of whether the county has adopted a geothermal element for its general plan, shall assume responsibilities of a lead agency, as defined in Section 21067, for the project. The applicant shall make the request to the county and the division.
(c) If a county assumes lead agency responsibility pursuant to subdivision (b), the county and the division shall confer regarding necessary information that should be included in the environmental review for the project to facilitate the division’s exercise of its authority as a responsible agency, as defined in Section 21069.
(d) The provisions of this section shall not apply to geothermal exploratory projects, as defined in Section 21065.5, where, before January 1, 1979, preparation of an environmental impact report for a geothermal exploratory project has begun or an application for a geothermal exploratory project that will require preparation of an environmental impact report has been filed.
SEC. 2.
Section 3715.6 is added to the Public Resources Code, to read:
3715.6.
(a) Before commencing the drilling, deepening, or redrilling of a well that is part of a geothermal technology pilot project, the owner or operator of the well shall file with the supervisor a written notice of intention to commence drilling pursuant to Section 3724.
(b) If a notice of intention submitted under Section 3724 is for a well that is part of a geothermal technology pilot project and the well is located within one-half mile of an existing geothermal well capable of producing geothermal resources in commercial quantities, then the notice of intention shall include a written consent agreement that meets the requirements of subdivision (c). For the purposes of this section, the one-half mile distance shall be measured from all points along the wellhead locations and well courses of the two wells, including the bottoms of the wells.
(c) A written consent agreement required under subdivision (b) shall meet all of the following requirements:
(1) The written consent agreement shall be executed by a responsible officer of the owner or operator of the existing well. If the owner and operator are separate, then the written consent agreement shall be executed by a responsible officer of both the owner and the operator of the existing well.
(2) The owner or operator of the existing geothermal well capable of producing in commercial quantities may require, as a condition of providing written consent, provisions in the agreement requiring the owner or operator of the geothermal technology pilot project well to undertake, for the purpose of protecting the existing geothermal resource or existing geothermal well infrastructure any or all of the following measures:
(A) Conduct ongoing monitoring to demonstrate that the geothermal technology pilot project will not result in degradation of existing commercial geothermal resources, including measurable decline in reservoir pressure, temperature, or steam output, and that no induced seismicity exceeding site-specific thresholds occurs. The monitoring program shall be verified by a third-party professional appropriately licensed pursuant to the Business and Professions Code and agreed upon by the parties at the time of the submission of the notice of intention.
(B) Demonstration that the geothermal technology pilot project will not impose any undue harm to the productive capability of any geothermal project operating under a powerplant license approved by the State Energy Resources Conservation and Development Commission or require any environmental mitigation to be imposed upon the holder of the license to operate in compliance with the project’s conditions of certification.
(C) Indemnification by the geothermal technology pilot project owner and operator for all costs associated with safeguarding existing geothermal resources from any loss of reservoir pressure, temperature, or steam output and contamination of the reservoir with unnatural fluids, and provide adequate financial assurances to the owner and operator of the geothermal development well, including, but not limited to, a bond or escrow fund sufficient to cover any required remediation, compensation, or infrastructure repair.
(3) The written consent agreement shall provide that either party may bring an appropriate civil action in a court of competent jurisdiction to enforce the terms of the written consent agreement as a contract, and shall not limit the availability to either party of any remedy at law or in equity otherwise available.
(d) For purposes of this section, “geothermal technology pilot project” has the same meaning as defined in Section 21065.6.
SECTION 1.SEC. 3.
Section 21065.5 of the Public Resources Code is amended to read:
21065.5.
(a)“Geothermal exploratory project” means a project as defined in Section 21065 composed of not more than six wells and associated drilling and testing equipment, including equipment and activities necessary to establish interconnectivity between wells and reservoirs, temporary roads, electric distribution lines, and infrastructure to provide power for drilling and testing equipment, whose chief and original purpose is to evaluate the presence and characteristics of geothermal resources before commencement of a geothermal
field development project as defined in Section 65928.5 of the Government Code. Wells included within a geothermal exploratory project shall be located at least one-half mile, measured from any point all points along the wellhead location and well course, including the bottom of the wells’ interaction point, well, from geothermal development wells that are capable of producing geothermal resources in commercial quantities, except wells connecting to geothermal reservoirs whose permeability or capacity to allow the flow of geothermal fluids, including water, has been increased from its natural or original state through stimulation, horizontal drilling, the use of closed-loop configurations,
or other techniques if the owner and operator of the geothermal development well that is capable of producing in commercial quantities provides written consent for its location within that one-half mile. quantities.
(1) The geothermal exploratory project proponent demonstrates, through ongoing monitoring, that the project will not result in degradation of existing commercial geothermal resources, including no measurable decline in reservoir pressure, temperature, or steam output, and no induced seismicity exceeding site-specific thresholds, as verified by a third-party licensed geoscience firm approved by the Geologic Energy Management Division.
(2) The geothermal exploratory project proponent demonstrates that the project will not impose any undue harm to the productive capability of any geothermal project operating under a power plant license approved by the State Energy Resources Conservation and Development Commission or require any environmental mitigation to be imposed upon the holder of the license to operate in compliance with the project’s conditions of certification.
(3) The geothermal exploratory project proponent accepts all costs associated with safeguarding existing geothermal resources from any loss of reservoir pressure, temperature, or steam output and contamination of the reservoir with unnatural fluids, and provides adequate financial assurances, including a bond or escrow fund sufficient to cover any required remediation, compensation, or infrastructure repair.
(c) This section does not alter the Geologic Energy Management Division’s discretionary authority over well permitting pursuant to Chapter 4 (commencing with Section 3700) of Division 3.
SEC. 4.
Section 21065.6 is added to the Public Resources Code, to read:
21065.6.
“Geothermal technology pilot project” means a project, as defined in Section 21065, composed of not more than six wells and associated drilling and testing equipment, including equipment and activities necessary to establish interconnectivity between wells and reservoirs, to connect geothermal reservoirs whose permeability or capacity to allow the flow of geothermal fluids, including water, has been increased from its natural or original state through stimulation, horizontal drilling, or the use of closed-loop configurations, for the chief and original purpose of confirming the viability of those techniques or technologies within that resource.
SEC. 5.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.