Fulcher Bill Targets Permitting Bottlenecks to Accelerate Geothermal Development on Federal Lands

U.S. Rep. Russ Fulcher (R-Idaho) has reintroduced legislation aimed at removing federal permitting barriers that developers say continue to slow geothermal exploration and investment on public lands.

The measure, H.R. 5576 — the Enhancing Geothermal Production on Federal Lands Act — would streamline early-stage geothermal exploration and align its regulatory treatment more closely with oil and gas development. Supporters argue the bill could significantly reduce project risk and timelines, improving the commercial outlook for geothermal across the western United States.

“Idaho has been a pioneer in geothermal for more than a century, but the resource remains underdeveloped,” Fulcher said. “With power demand rising at a historic rate — driven in part by data centers, AI, and electrification — geothermal can play a meaningful role in providing reliable, around-the-clock energy. This bill removes unnecessary regulatory hurdles and unlocks new opportunities to develop clean, dependable baseload power.”

Industry Impact: Reducing Upfront Risk

An estimated 90 percent of viable geothermal resources lie beneath federally managed lands, placing most projects under the National Environmental Policy Act (NEPA) review process. Currently, geothermal exploration wells typically require an Environmental Assessment (EA) before drilling can begin. According to congressional backers, that review process averages about 10 months — a lengthy and costly delay at the riskiest stage of project development, when resource viability is still uncertain.

The Fulcher bill would create a limited categorical exclusion for qualifying geothermal exploration activities, allowing certain low-impact projects to proceed without a full EA. The categorical exclusion would mirror one already in place for oil and gas exploration wells, effectively putting geothermal on regulatory parity with other subsurface energy resources.

For developers, the change could materially improve project economics by shortening timelines, lowering permitting costs, and reducing exposure during the high-risk exploration phase.

House Natural Resources Committee Chairman Bruce Westerman (R-Ark.) said the bill is designed to help unlock a scalable domestic energy source.

“America needs more energy resources to meet exponentially growing demand,” Westerman said. “H.R. 5576 streamlines geothermal exploration on federal lands and advances a valuable source of baseload power. This is about strengthening long-term energy security.”

Focus on Western Resource Development

Utah Rep. Mike Kennedy, a co-sponsor, emphasized the bill’s potential impact across the Intermountain West, where some of the nation’s highest geothermal potential is located.

“Unlocking geothermal energy to meet the rising needs of our region will help put the United States on track to be the world’s number one energy producer,” Kennedy said.

Beyond permitting reform, the legislation directs the Secretary of the Interior to identify priority geothermal development areas on federal lands within three years. Supporters say this provision could help guide infrastructure planning, lease sales, and private investment toward regions with the highest development potential.

Baseload Opportunity in a Changing Grid

As utilities and grid operators face growing demand alongside reliability challenges, geothermal is increasingly viewed as a firm, dispatchable renewable resource capable of complementing intermittent wind and solar. Industry advocates argue that faster exploration and clearer federal pathways are essential if geothermal is to scale fast enough to play a meaningful role in the future energy mix.

If enacted, the Enhancing Geothermal Production on Federal Lands Act would represent one of the most significant federal policy shifts aimed specifically at accelerating geothermal development — with potential ripple effects across exploration activity, project financing, and long-term domestic power supply.

Source: Office of Russ Fulcher - U.S. Congressman

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