One California geothermal bill passes, one fails in latest Newsom signings

By Noah Baustin | 10/08/2025 06:49 AM EDT

The legislative moves come as new technology has put the geothermal industry at an inflection point.

Steam rises from the EnergySource LLC geothermal electricity plant near Westmorland, California.

It's a mixed legislative bag for California's geothermal industry. Gregory Bull/AP

SACRAMENTO, California — The geothermal industry scored a victory Monday as Gov. Gavin Newsom signed a bill aimed at streamlining the approval of new geothermal power production projects. But Newsom vetoed the second bill the industry had pinned its hopes on, making it only a partial win for geothermal boosters.

What happened: Newsom signed AB 531, by Assemblymember Chris Rogers, which will allow geothermal power plants to get certified through the California Energy Commission streamlined opt-in process. He rejected its companion bill, Assemblymember Diane Papan’s AB 527, which would have provided a California Environmental Quality Act exemption for many exploratory wells that geothermal developers drill to determine if the site is a good fit for a power plant.

Background: California’s tectonic activity has given the landscape abundant geothermal activity close to the surface, making it an optimal place for geothermal development. California in 2023 produced about two-thirds of the nation’s geothermal electricity, according to the U.S. Energy Information Administration.

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But new technology has opened up vast new tracts of land to potential development, leading some California lawmakers to fear the state may lose its edge.

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