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AB 526

Energy: in-state geothermal energy generation.

2025-2026 Regular Session Introduced by Diane Papan and 1 co-sponsor

Requires the CEC to create a strategic plan to accelerate in-state geothermal energy development, including permitting, leasing, and transmission planning.

In committee: Held under submission.
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Bill Summary · AB 526

AB 526 (Papan) — Energy: new in‑state geothermal energy generation

Status: Introduced Feb 10, 2025. In committee; held under submission (last action 2025-05-23).
Adds Chapter 16 (beginning with Section 25993) to Division 15 of the Public Resources Code.

Purpose / intent

AB 526 directs the California Energy Commission (CEC) to lead a coordinated state planning effort to accelerate development of new in‑state geothermal generation (including next‑generation geothermal). The bill aims to expand California’s reliable, clean firm energy supply, secure economic and workforce benefits in‑state, and ensure geothermal procurement for California markets results in local investment rather than out‑of‑state build‑out.

The Legislature’s findings cite recent procurement actions (PUC Decision 21‑06‑035), federal DOE and NREL analyses (including a March 2024 DOE report and an NREL estimate of 27.9 GW potential in CA by 2050), and the long lead times required to develop geothermal projects.

Key provisions

  • Requires the CEC, in coordination with specified state agencies (Department of Conservation, State Lands Commission, Department of Fish and Wildlife, Office of Land Use and Climate Innovation, Governor’s Office of Business and Economic Development), the PUC, CAISO, and other federal/state/local agencies, to develop a comprehensive strategic plan for new in‑state geothermal energy.
  • Deadline: the CEC must submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027.
  • The strategic plan must:
    • Identify suitable and recommended locations for new in‑state geothermal development (through stakeholder engagement including interested Native American tribes, load‑serving entities, and industry).
    • Establish state‑lands leasing goals for geothermal development for 2035 and 2045.
    • Identify opportunities and priorities for federal geothermal lease sales on federal lands in California.
    • Include an assessment, led by the Geologic Energy Management Division, of in‑state geothermal resource potential using best available data.
    • Assess known impacts to Native American and Indigenous peoples and to biological resources, and propose strategies to address those impacts.
    • Assess appropriate levels for geothermal rentals and royalties (new and existing) to support climate goals while maintaining competitiveness with federal/state rates.
    • Produce a permitting roadmap outlining timeframes and milestones for coordinated permitting of exploration, field development, generation, and transmission infrastructure.
    • Assess transmission investments/upgrades needed to support in‑state geothermal; the PUC must designate new in‑state geothermal as a “long lead‑time” resource in its recurring input to CAISO’s system need scoring for interconnection and transmission planning.

Who is affected

  • State agencies: CEC (lead), PUC, State Lands Commission, Department of Conservation (Geologic Energy Management Division), Dept. of Fish and Wildlife, GO‑Biz, Office of Land Use & Climate Innovation, Natural Resources Agency.
  • CAISO (Independent System Operator) and load‑serving entities (utility procurement planning).
  • Geothermal industry developers, contractors, and the state workforce (construction, operations).
  • Native American and Indigenous communities in or near geothermal resource areas.
  • California ratepayers (economic impacts from in‑state vs. out‑of‑state procurement); potential fiscal and workforce impacts (reporting/fiscal committee review required; bill does not include an appropriation).

Procedural / timeline notes

  • Strategic plan due by June 30, 2027.
  • The PUC’s long lead‑time designation affects recurring inputs into CAISO interconnection and transmission planning processes.
  • Legislative history (2025): referred to Utilities & Energy and Natural Resources committees; amended several times; re‑referred to Appropriations Committee and placed on suspense file; held under submission as of May 23, 2025.

Potential impacts (summary)

  • Could accelerate permitting, leasing, transmission planning, and state coordination for geothermal projects, potentially retaining investment and jobs in California.
  • Aims to balance rapid development with protections for biological resources and Indigenous interests and to align royalties/rentals with climate and competitiveness objectives.
  • May influence CAISO transmission planning and utility procurement timelines by recognizing geothermal as a long‑lead resource.

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

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