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Effort gains steam to speed geothermal energy permits

North Bay Business Journal · last updated

California is betting big on geothermal energy for its green grid, but development faces long permitting delays. Now there’s a three-pronged effort in Sacramento to help the Golden State better compete with quick-turn permitting elsewhere in the West.

California’s effort to generate much more round-the-clock clean energy from geothermal resources such as The Geyers area straddling Sonoma and Lake counties seems to be running out of steam because of the state’s permitting system.

One of the three initial partners in the geothermal opportunity zone (GeoZone) effort promoted by Sonoma Clean Power has acquired its first parcel of land, known as Pocket Ranch.

However, the permitting process in California is proving to be a significant obstacle for Chevron New Energies to move forward with finding out what potential there is for next-generation geothermal technologies that aim to generate more energy using far less water.

“They are putting that into a slow-moving process, because they’re finding that California’s permitting process for the exploratory phase is adding too much cost and risk relative to all the other western states,” said Geof Syphers, CEO of Sonoma Clean Power.

The unique nature of geothermal development requires an extensive exploration phase before construction can begin on a power facility. Developers must first drill exploratory wells to determine the rock type and temperature of the geothermal resource.

In California, this exploration phase can take up to two years to permit, compared to just 10 days on federal land outside the state.

“The reason is President Biden standardized all of the environmental review for exploration and recognized that every single project that had been through the detailed review had ended up with a negative declaration,” Syphers said.

This means that the environmental impact of the exploratory drilling was found to be negligible.

Fixes sought for permitting

To address this issue, Sonoma Clean Power has co-sponsored three bills in the California legislature.

Assembly Bill 526 by Assemblymember Diane Papan, D-San Mateo, aims to create a strategic plan for geothermal energy development in the state.

AB 527, also by Papan, would align California’s permitting process with the federal rules established under the Biden administration.

“It would align the permitting for the exploration phase, the pre-project work, with the Biden plan and recognize that when you’re testing for rock type and ground temperature, because of the past record of finding no significant environmental impacts from that work and reaching negative declaration, that all those environmental impacts should be standardized or the mitigation should be standardized,” Syphers said.

The third bill, AB 531 by Assemblymember Chris Rogers, whose North Coast district includes The Geyers, would allow geothermal projects of all sizes to be permitted through the California Energy Commission, rather than the current 50-megawatt threshold.

Syphers expressed concern that without these legislative changes, California may miss out on the economic benefits of geothermal development.

“Since 1989, California’s new geothermal resources have been getting built entirely outside California, other than the Imperial County area,” he said. “And I think that’s going to be extra concerning now that we have this procurement order for 2,000 megawatts of new resources.”

The latest example is Fervo Energy’s 400-megawatt geothermal project in Utah, with a power supply contract sold to Southern California Edison. Syphers noted that this project will require costly transmission upgrades to bring the power into California, while the state misses out on the associated jobs and economic activity.

The California Energy Commission has called for 2 gigawatts of additional geothermal energy to be produced in the Golden State, and recently has considered significantly increasing that goal over several years. The GeoZone project is aiming for as much as 600 megawatts of additional power that’s produced regardless of how the wind is blowing turbine blades or the sun is shining on panels.

Local agencies prep for projects

While legislative fixes are being attempted in Sacramento, planning officials in Sonoma, Lake and Mendocino counties are gearing up to streamline the permitting process as much as possible when new exploratory and development applications are submitted.

Mack, who manages the Natural Resources Division at Permit Sonoma, said the county has taken a more proactive approach to geothermal in recent years, recognizing the need for 24/7 renewable energy to meet climate goals.