Oil and gas: California Environmental Quality Act: geothermal exploratory projects: geothermal field development projects: enhanced geothermal system wells.

Assembly Member Papan's geothermal energy legislation establishes new regulatory frameworks for exploratory projects while creating targeted exemptions from California Environmental Quality Act (CEQA) requirements. The bill requires the Geologic Energy Management Division to develop comprehensive regulations for enhanced geothermal system wells by 2029, addressing seismic risks, well construction standards, fracture propagation, and geological isolation.

Counties serving as lead agencies may exempt qualifying geothermal exploratory projects from CEQA review if they meet specific criteria, including limits on surface disturbance, setbacks from sensitive areas, and full site reclamation commitments. Project developers must conduct biological resource surveys, implement seismic monitoring, and disclose detailed information about well stimulation fluids. Wells must maintain minimum setbacks of 300 feet from project boundaries and public buildings, with reduced 100-foot setbacks allowed for necessary access roads.

The legislation redefines geothermal exploratory projects to include equipment and activities for establishing well-reservoir interconnectivity, while modifying setback requirements for wells connecting to stimulated reservoirs. For subsequent field development projects at exempt exploratory sites, environmental reviews must use baseline conditions from before exploratory activities began. The CEQA exemption provisions sunset on January 1, 2031, allowing time to evaluate their effectiveness.

Counties implementing these provisions as lead agencies retain authority to levy fees covering associated costs, as the bill creates an unfunded state mandate. The regulatory framework aims to facilitate geothermal energy development while maintaining environmental protections through enhanced monitoring, disclosure requirements, and site-specific safeguards.