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

Assembly Member Papan, with coauthor Rogers, advances a time-limited approach to geothermal exploration that ties a narrow CEQA exemption to enhanced geothermal system activity while directing regulators to finalize new rules by 2029. The core change creates a pathway to exempt certain exploratory geothermal projects from environmental review through a sunset date of January 1, 2031, provided a set of site, environmental, and tribal-consultation conditions are met. It also requires pre‑exemption disclosures about well stimulation fluids and establishes a framework for measuring a site’s pre-exploration baseline for subsequent field development.

Central to the bill’s mechanism is a defined set of eligibility conditions and procedural steps for the exemption. Projects must not produce geothermal resources in commercial quantities, occupy limited surface areas, and avoid proximity to listed sensitive resources and wetlands, while meeting defined setback and environmental impact criteria. The exemption process requires a reconnaissance survey, a formal scoping consultation with California Native American tribes, and confidentiality protections for tribal information. The bill authorizes a lead agency to require an indemnity bond to secure full reclamation, and mandates public postings and notices prior to a determination to grant the exemption. In addition, logs for wells within exempt projects must disclose the chemical and physical characteristics of well stimulation fluids, including additives and proppants, and the information may be shared with the lead agency for project‑level review.

Implementation is anchored in a two‑part regulatory and governance framework. By January 1, 2029, the Geologic Energy Management Division is directed to promulgate regulations for enhanced geothermal system wells that address seismic risks, well construction, fracture propagation, and isolation of geothermal fluids and reservoirs. Prior to adopting regulations, operators filing a notice of intent for a CEQA‑exempt project using enhanced geothermal system technology must provide specific information on the stimulation fluids, a seismic monitoring plan aligned with recognized protocols, and full disclosure of anticipated fluids and additives. The exemption relies on a lead agency structure that can be either the county or the division, with mandatory tribal scoping and defined timelines for notices, acceptance, and engagement. Following exemption approval, a separate baseline requirement for field development requires future projects to use a pre‑exploration site baseline for CEQA review, and the exemption itself remains temporary, repealing after January 1, 2031 unless extended.

The bill places the proposal within a broader policy context that seeks to balance accelerated development of geothermal resources with environmental safeguards and tribal engagement. Proponents emphasize increased upfront data disclosure (through logs and reconnaissance surveys) and formal tribal participation, while maintaining a transitional CEQA framework for select exploratory activities. Local governments may face new duties for scoping, notices, and potential bonding, though the measure asserts that no state reimbursement is required. The sunset provision invites ongoing evaluation of the exemption’s effectiveness and its compatibility with subsequent rules, and it underscores the interdependence between pre‑regulatory data collection, tribal consultation, and the eventual regulatory regime governing enhanced geothermal systems.