Governor Jared Polis of Colorado, United States, has recently approved SB23-285, also known as the “Energy and Carbon Management Regulation in Colorado,” marking a significant step forward in the state's efforts to expand power generation through geothermal resources. The new law establishes a comprehensive framework for state regulatory approvals, facilitating the development and utilization of geothermal energy.
Under the provisions of the new law, the Oil and Gas Conservation Commission has undergone a transformation and is now known as the Energy and Carbon Management Commission. This change reflects an expanded regulatory authority that encompasses a broader range of energy and carbon management areas beyond traditional oil and gas operations. The commission will now play a crucial role in overseeing the exploration, production, and management of geothermal resources.
Section 8 of the legislation grants the Energy and Carbon Management Commission exclusive jurisdiction over deep geothermal operations. These operations involve the exploration and production of geothermal resources located below 2500 feet (762 meters) beneath the surface. Shallow geothermal operations, on the other hand, remain under the purview of the state engineer, who retains exclusive authority in regulating them.
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In addition to the regulatory changes, the bill mandates several studies to be conducted by the commission. These studies aim to provide valuable insights and inform future decision-making regarding geothermal resources. They include a comprehensive technical study of the state's geothermal resource, a collaborative evaluation of the existing regulatory structure in partnership with the state engineer, an assessment of the regulation and permitting of underground hydrogen operations, and an examination of the siting and regulation of interstate pipelines in coordination with the public utilities commission.
SB23-285 represents a significant bipartisan effort, with sponsorship from Representatives Karen McCormick and Ruby Dickson, as well as Senators Kevin Priola and Chris Hansen. This collaborative approach underscores the shared commitment of lawmakers to harnessing the potential of geothermal energy and advancing sustainable practices in Colorado.
Governor Polis has consistently shown support for geothermal energy development in the state. During the 2022 legislative session, he signed two additional bipartisan bills focused on geothermal research, education, and implementation. These initiatives demonstrate Colorado's dedication to fostering a clean and resilient energy sector.
With the signing of SB23-285, Colorado is taking a significant stride towards maximizing its geothermal potential and diversifying its energy portfolio. The new law, combined with the previous legislative measures, sets a solid foundation for the state's sustainable energy future and positions Colorado as a leader in geothermal innovation and development.
