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AB 2234

California Environmental Quality Act: geothermal exploratory projects.

2025-2026 Regular Session Introduced by Diane Papan

Expands CEQA scope of geothermal exploratory projects to include interconnectivity infrastructure and narrows certain well-distance rules for wells connected to enhanced reservoirs

Read second time and amended. Re-referred to Com. on APPR.
#californiaenvironmentalqualityact #geothermalexploratoryprojects
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Bill Summary · AB 2234

Summary of AB 2234 (2025-2026) – California Environmental Quality Act: Geothermal Exploratory Projects

1) Purpose and intent

  • AB 2234 amends the Public Resources Code to modify the scope of what qualifies as a “geothermal exploratory project” under CEQA.
  • The bill seeks to expressly include certain equipment and activities related to establishing interconnectivity between wells and reservoirs as part of a geothermal exploratory project.
  • It also narrows or clarifies the distance rule for wells within geothermal exploratory projects in relation to wells in commercial-scale development.

2) Key provisions and changes

  • Definitions:
    • Recasts “geothermal exploratory project” to cover not more than six wells and associated drilling/testing equipment, plus additional components described below.
    • The project may include equipment and activities necessary to establish interconnectivity between wells and reservoirs, temporary roads, electric distribution lines, and infrastructure to power drilling/testing equipment.
  • Interconnectivity and related infrastructure:
    • The bill explicitly includes as part of a geothermal exploratory project the equipment and activities required to establish interconnectivity between wells and reservoirs.
  • Well distance rule:
    • Excludes certain wells connecting to geothermal reservoirs from the standard 1/2-mile separation requirement described in existing law. Specifically, wells that connect to reservoirs whose permeability or capacity has been increased through stimulation, horizontal drilling, closed-loop configurations, or similar techniques may be exempt from the 1/2-mile separation requirement from geothermal development wells capable of producing resources commercially.
  • Scope and purpose:
    • The exploratory project is defined as one conducted prior to commencement of a geothermal field development project (as defined in Government Code § 65928.5).
  • Continues to reference the Geologic Energy Management Division (and CEQA lead agency framework) for geothermal exploratory projects, but expands what is considered part of such a project.

3) Who or what would be affected

  • Geothermal exploratory projects within California, overseen by the Geologic Energy Management Division (a part of the Department of Conservation), would be directly affected.
  • Operators and developers engaged in early-stage geothermal work would have a broader set of activities considered part of the exploratory phase (notably interconnectivity work and associated infrastructure).
  • The distance requirements between exploratory wells and commercial-scale development wells could be eased for certain interconnection or reservoir modification activities, potentially affecting siting and regulatory compliance for some wells.

4) Procedural and timeline aspects

  • legislative history and status:
    • Introduced in February 2026 by Assembly Member Papan (co-sponsored by Diane Papan).
    • As of the latest action history, the bill progressed through committee with a “Do pass and re-refer to Assembly Privacy/Appropriations?”-style recommendation and was moved toward consent calendar in early April 2026.
    • Prior actions include referral to the Natural Resources Committee and a subsequent re-referral to the Appropriations Committee.
  • Formal text references:
    • Section 21065.5 of the Public Resources Code is amended to implement the changes described above.
  • Effective dates:
    • The bill text provided does not specify an immediate effective date; typically, California CEQA-related provisions become effective on January 1 of an upcoming year or upon enactment unless otherwise stated. Check the enrolled bill for the exact effective date.

5) Notable details

  • The substantive change expands what counts as a geothermal exploratory project by including interconnectivity activities and related infrastructure.
  • The distance exception for certain wells could modify regulatory planning and permitting processes for wells that connect to reservoirs after enhancements.
  • No new appropriations are requested in the bill (Appropriation: NO), meaning shifts would be regulatory rather than fiscal in the immediate sense.

If you’d like, I can provide a line-by-line comparison of the current statute versus AB 2234’s amendments or attach a one-page briefing for policymakers.

Compiled from official sources — confirm details with the bill’s official record.

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