The momentum behind geothermal energy development is accelerating on two fronts simultaneously.
On June 2, 2026, the U.S. House of Representatives passed the bipartisan Geothermal Energy Advancement Act (H.R. 5631), sponsored by Reps. Jeff Hurd (R-Colo.) and Susie Lee (D-Nev.), by voice vote. The package consolidates six separate bills targeting the permitting and regulatory bottlenecks that have long constrained geothermal development on federal lands. Key provisions include:
- A 60-day processing deadline for DOI to act on drilling permits and licenses after completing required environmental reviews (GEO Act)
- A Geothermal Ombudsman within BLM to streamline permit processing and coordinate across federal agencies
- NEPA categorical exclusions for geothermal development on par with those already available to oil and gas (STEAM Act)
- Royalty reforms, cost-recovery authority for DOI, and BLM publication of best practices for leasing and permitting
At the same time, a bipartisan coalition of governors from Arizona, Colorado, New Mexico, and Utah launched a regional initiative to reduce the financial and logistical barriers to geothermal development in the Mountain West — a region that sits atop some of the nation’s most significant geothermal resources.
These developments build on BLM’s April 28, 2026 establishment of a new categorical exclusion for small-scale geothermal exploration on federal lands — which we covered here: https://www.bwenergylaw.com/blog/2026/05/blm-takes-steps-to-accelerate-geothermal-exploration-on-federal-lands/
Taken together, the federal legislative push and the state-level coalition signal a sustained, coordinated effort to remove the permitting barriers that have kept geothermal at just 0.4% of U.S. electricity generation — despite over 90% of identified U.S. geothermal resources sitting beneath public lands.
H.R. 5631 now heads to the Senate, where it could advance as standalone legislation or as part of a broader permitting reform package.
For operators and investors with geothermal assets or exploration plans on federal lands in the West, the window of opportunity is widening. The Beatty & Wozniak team is closely tracking these developments. For more information, contact Bret Sumner or DeAnza M. Valencia, Esq.