A Clear Path for Geothermal Permitting: Cutting Delays, Driving Deployment

Posted on December 15, 2025 by Matthew Mailloux and Jackson Blackwell

Executive Summary

Energy demand in the United States is skyrocketing, and policymakers are seeking ways to increase energy production while keeping prices low for consumers. Geothermal energy represents one of the most promising pathways to provide clean, reliable, baseload power to meet rising demand. While the U.S. leads the world in installed geothermal capacity, the resource remains primed for a significant expansion.

Recent advancements in drilling – leveraging technology pioneered during the shale revolution – have sparked renewed interest in geothermal. Today, the U.S. has roughly 4 GW of installed geothermal capacity, but studies now estimate that next-generation geothermal systems could supply 100 GW of new power across the U.S. by 2050. Despite all of this potential, an outdated federal permitting regime threatens future growth and is a significant barrier to deployment.

Federal investments through the Department of Energy (DOE) Geothermal Technologies Office and the Defense Innovation Unit have accelerated innovation and reduced technical risk. Significant investment and recent power purchase agreements (PPAs) between major U.S. tech firms and geothermal companies further demonstrate the potential of this emerging energy source. In addition, energy tax incentives reshaped by the One Big Beautiful Bill (OBBB) prioritized new geothermal power.

With the financial and technical barriers for geothermal well-addressed, federal permitting policies remain the biggest hurdle for new geothermal deployment. This report identifies opportunities to modernize geothermal permitting and leasing to accelerate the buildout of geothermal energy resources. Key policy recommendations include:

1. Increase lease sale frequency by requiring annual geothermal lease sales and ensuring BLM meets these timelines.
2. Require replacement lease sales when scheduled auctions are missed.
3. Incentivize early-stage exploration by clarifying “casual use” activities under BLM jurisdiction that don’t require further review.
4. Codify and expand categorical exclusions (CatExes) for geothermal resource confirmation and early-stage activities.
5. Narrow the scope of actions subject to NEPA review – consistent with the Supreme Court decision in Seven County.
6. Require timely processing of geothermal lease nominations and NEPA reviews.
7. Leverage best practices across BLM field offices via a Geothermal Ombudsman and Permitting Task Force, and improve transparency through centralized data systems.
8. Create or expand cost-recovery and set-aside funding authorities so geothermal can benefit from the same funding tools available to oil, gas, wind and solar permitting.

Taken together, these reforms would shorten project timelines, reduce regulatory uncertainty, de-risk private investment and expand the pipeline of geothermal projects under review. By aligning geothermal permitting with other energy resources and modernizing federal land management practices, Congress can accelerate deployment of a clean, firm power resource needed to meet rapidly rising demand and strengthen U.S. energy security.