California Environmental Quality Act: geothermal exploratory projects.

New Section 21065.6 defines 'geothermal technology pilot project' as a project of not more than six wells and associated equipment, including interconnectivity between wells and reservoirs, whose chief purpose is to confirm the viability of stimulation, horizontal drilling, or closed-loop techniques within a geothermal resource.

New Section 3715.6 requires owners or operators of wells that are part of a geothermal technology pilot project to file a written notice of intention to commence drilling with the State Oil and Gas Supervisor before drilling, deepening, or redrilling, pursuant to existing Section 3724.

New Section 3715.6(b) requires that if a pilot project well is within one-half mile of an existing geothermal well capable of producing in commercial quantities, the notice must include a written consent agreement meeting specific requirements including ongoing monitoring verified by a third-party professional, demonstration of no undue harm to licensed geothermal projects, and indemnification with financial assurances.

In Section 21065.5, references to 'owner or operator' providing written consent for wells within the one-half mile buffer are changed to 'owner and operator,' requiring both parties to provide consent rather than just one.

New Section 3715.6(c)(3) provides that either party may bring a civil action in court to enforce the written consent agreement as a contract, without limiting any other remedy at law or in equity.

Section 3715.5 is now amended to designate the Geologic Energy Management Division as lead agency for both geothermal exploratory projects and the new geothermal technology pilot projects, and includes provisions allowing counties with a geothermal element to assume lead agency responsibility upon applicant request.

The one-half mile measurement language in Section 21065.5 is clarified from 'measured from any point along the wellhead location and well course, including the bottom of the wells interaction point' to 'measured from any point all points along the wellhead location and well course, including the bottom of the wells interaction point, well.'

The state-mandated local program designation changes from 'no' to 'yes' because the new notice-of-intention requirements in Section 3715.6 create a crime, triggering the state-mandated local program finding.

New Section 5 provides that no reimbursement is required under Article XIII B of the California Constitution because any local agency costs are incurred solely due to the creation of a new crime or infraction.

The bill text was reformatted from a traditional printed legislative document (with line numbers, page headers like 'AB 2234 -2-', and formal indentation) to a web-based layout with navigation menus, version history links, and a date published stamp of 08/27/2026.

Web interface elements were added including skip-to-content links, accessibility options, FAQ, feedback, sitemap, login, bill search, and sidebar navigation for Bill Information, California Law, Publications, and other resources.

The one-half mile setback is now measured from any point along the wellhead location and well course (including the bottom interaction point), rather than only from the bottom of the wells' interaction point. This expands the zone where the setback applies, making it easier for existing operators to block nearby exploratory drilling.

New subdivision (b) allows the owner and operator to impose three categories of conditions as a prerequisite for granting written consent: (1) ongoing monitoring by a third-party licensed geoscience firm approved by the Geologic Energy Management Division showing no measurable decline in reservoir pressure, temperature, or steam output and no induced seismicity above site-specific thresholds; (2) demonstration that the project will not harm the productive capability of any SERC-licensed power plant or impose environmental mitigation on its license holder; (3) acceptance of all costs for safeguarding existing resources plus financial assurances (bond or escrow) covering remediation, compensation, or infrastructure repair.

Written consent for locating an exploratory well within the one-half mile distance now requires consent from both the owner AND the operator of the commercial well, rather than either the owner or the operator. Both parties must agree.

New subdivision (c) clarifies that the section does not alter the Geologic Energy Management Division's discretionary authority over well permitting under Chapter 4 of Division 3, preserving existing regulatory flexibility.

The section was restructured from a single unnumbered paragraph into subdivision (a), with new subdivisions (b) and (c) added. Minor grammatical corrections were made throughout (e.g., 'wells' interaction point' to 'wells' interaction point').

The one-half mile separation distance is now explicitly measured from the bottom of the wells interaction point, rather than being left unspecified as to which point on the well is used for the measurement.

Wells connecting to geothermal reservoirs whose permeability has been enhanced (through stimulation, horizontal drilling, closed-loop configurations, or other techniques) are no longer automatically exempt from the one-half mile separation requirement. They may now be located within that distance only if the owner or operator of the nearby producing geothermal development well provides written consent for their location.