AB 526 California Assembly · 2025-2026 Regular Session

Energy: in-state geothermal energy generation.

Summary

Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC) , State Energy Resources Conservation and Development Commission (Energy Commission) , and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy. Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the state's clean energy and pollution reduction objectives. This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for new in-state geothermal energy in California, as specified. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027. The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, as specified, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO) , to assess the transmission investments and upgrades necessary to support new in-state geothermal energy. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its recurring input to the ISO's system need scoring for the interconnection and transmission planning process. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governor's Office of Business and Economic Development, to assess the level at which new and existing geothermal rentals and royalties would best support California's long-term renewable energy and greenhouse gas emissions reduction goals while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would require the information described in this paragraph, an assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts, and an assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, to be included in the strategic plan, as specified.

Issues: ✓ Energy ✓ Environment

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 10, 2025 Last action Feb 2, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

03/24/25 - Amended Assembly → 04/07/25 - Amended Assembly · 8 edits · Apr 7, 2025

MODERATE

AB 526 was substantially restructured in this amendment, adding a new requirement for the Geologic Energy Management Division to assess in-state geothermal resource potential, tying state lands leasing goals to specific Public Utilities Code provisions, and simplifying the PUC/ISO transmission planning requirements by removing a separate ISO capacity reservation mandate. A new legislative finding was added about out-of-state geothermal procurement exporting ratepayer wealth, and the definition of 'new in-state geothermal energy' was slightly broadened.

REQUIREMENT

New paragraph (8) requires the strategic plan to include an assessment, led by the Geologic Energy Management Division using the best available data, of in-state geothermal resource potential covering all technology types listed in the plan.

State lands leasing goals for 2035 and 2045 are now explicitly tied to resource needs identified under Public Utilities Code sections 454.51(a) and 454.52(a)(4), and the 2045 goal is additionally based on the new resource potential assessment in paragraph (8).

The PUC/ISO transmission requirements were simplified. The old version required both (1) PUC to designate geothermal as a long lead-time resource in its annual input to the ISO interconnection queue prioritization AND (2) the ISO to separately reserve appropriate capacity in its transmission plan deliverability allocation and system need scoring. The new version consolidates this into a single requirement for PUC to designate geothermal as a long lead-time resource in its annual recurring input to the ISO's system need scoring for interconnection and transmission planning.

Section 25993.7, which stated that the chapter does not create a technology set-aside or mandatory minimum for any type of eligible renewable energy resource, appears to have been removed (diff is truncated so this cannot be fully confirmed).

SCOPE

New paragraph (3) in the strategic plan section explicitly requires the plan to include, but not be limited to, conventional hydrothermal resources, advanced closed-loop and enhanced geothermal systems at a range of temperatures, supercritical heat geothermal systems, thermal energy storage integrated with geothermal resources, and geologic thermal energy storage.

New legislative finding (e) states that many geothermal resources being procured by load-serving entities to meet procurement mandates are out of state, which exports California ratepayer wealth.

The term 'reliable firm' was changed to simply 'firm' in multiple places throughout the bill, such as 'the need for reliable firm renewable energy' becoming 'the need for firm renewable energy.'

DEFINITION

The definition of 'new in-state geothermal energy' was changed from 'the development of new geothermal resources in the state of California' to 'the development of geothermal resources in the state of California,' removing the word 'new' before 'geothermal resources' and slightly broadening the scope.

04/07/25 - Amended Assembly → 04/10/25 - Amended Assembly · 10 edits · Apr 10, 2025

MAJOR

The April 10 amendment significantly softens AB 526 by removing the requirement for the Energy Commission to establish mandatory megawatt planning goals for 2035 and 2045, making the strategic plan explicitly advisory rather than a basis for procurement mandates, and removing the State Lands Commission's authority to reduce geothermal rentals and royalties. The bill shifts from a prescriptive framework with binding targets to a purely informational and planning-oriented approach that also adds protections for existing geothermal operations.

Scope change

The bill's scope shifted from establishing binding planning goals with specific megawatt targets for 2035 and 2045 to a purely advisory strategic planning process. The amendment removes all mandatory procurement-related requirements, adds explicit disclaimers that the chapter does not mandate procurement or create technology set-asides, and adds protections for existing geothermal operations. The overall effect is to make the bill informational and planning-oriented rather than prescriptive.

REQUIREMENT

Removed Section 25993.2, which required the Energy Commission to evaluate maximum feasible capacity of new in-state geothermal energy and establish megawatt planning goals for 2035 and 2045 by June 1, 2026. This was the bill's most prescriptive requirement.

State lands leasing goals no longer reference accommodating planning goals from the removed Section 25993.2. Goals for 2035 are based on resource needs under Public Utilities Code sections, and goals for 2045 are based on in-state geothermal resource potential.

SCOPE

Added a provision stating the strategic plan is intended to serve an advisory function and shall not form the sole basis of new procurement mandates or requirements (Section 25993(a)(4)).

Added language that the strategic plan shall not negatively impact existing geothermal resources (Section 25993(a)(2)).

Added Section 25993.5(b) explicitly stating the chapter does not require or mandate procurement of any type of eligible renewable energy resource by load-serving entities, including electrical corporations and community choice aggregators.

Transmission planning requirements no longer reference supporting specific 2035 and 2045 planning goals; they now simply require assessing investments necessary to support new in-state geothermal energy generally.

FISCAL

Removed the provision authorizing the State Lands Commission to reduce geothermal rentals and royalties notwithstanding Sections 6910 and 6913 of the Public Resources Code, based on findings from the assessment.

The rentals and royalties assessment now covers 'new and existing geothermal rentals and royalties' rather than just 'geothermal rentals and royalties,' broadening the scope of what must be evaluated.

DEFINITION

Removed the standalone definitions section that defined 'new in-state geothermal energy' and 'stakeholder.' The definition of new in-state geothermal energy is now embedded within the strategic plan requirements rather than standing as a separate legal definition.

TECHNICAL

Legislative findings were substantially revised: removed references to Decision 24-08-064, removed the finding about California's resource portfolios relying on out-of-state geothermal, added language about keeping existing and conventional geothermal resources viable, and removed the urgency framing about load-serving entities not being on track.

02/10/25 - Introduced → 03/24/25 - Amended Assembly · 9 edits · Mar 24, 2025

MAJOR

The amended version of AB 526 broadens the definition of new in-state geothermal energy to explicitly include conventional hydrothermal resources and supercritical heat systems, adds 'total system cost' as a planning consideration, expands stakeholder engagement to include Native American tribes and the Governor's Office of Tribal Affairs, and strengthens transmission planning requirements by adding ISO system need scoring. The amendment also softens the permitting roadmap requirement from mandating rule updates to merely identifying needed updates.

DEFINITION

The definition of 'new in-state geothermal energy' was expanded to explicitly include conventional hydrothermal resources and added superhot temperatures over 375 degrees Celsius, supercritical heat geothermal systems, and geologic thermal energy storage to the list of covered technologies.

REQUIREMENT

Section 25993.2(a) now requires the Energy Commission to evaluate 'total system cost' benefits in addition to reliability, ratepayer, employment, and decarbonization benefits when establishing planning goals for 2035 and 2045.

The PUC must now designate geothermal as a long lead-time resource in its 'annual' input to the ISO interconnection queue prioritization, and the ISO must also consider it in 'system need scoring for interconnection and transmission planning,' broadening the transmission priority mechanism.

The permitting roadmap requirement was softened from mandating that the roadmap 'update relevant rules and regulations' to requiring it to 'identify needed updates to relevant rules and regulations,' reducing the direct regulatory obligation.

A public comment opportunity on a draft permitting roadmap was added to Section 25993.5(c), expanding transparency requirements beyond stakeholder input alone.

Section 25993.2(b)(10) now also requires consideration of 'available assessments of next-generation geothermal energy potential in California' alongside the DOE report.

SCOPE

The term 'firm' was added throughout the bill to emphasize that geothermal energy should provide firm (dispatchable) renewable power, including in the ratepayer affordability chapter, peak load considerations, and the diverse portfolio requirement.

ELIGIBILITY

Native American tribes were added as a required stakeholder group for location identification activities under Section 25993.3(a), and the Governor's Office of Tribal Affairs was added as a coordinating agency.

FISCAL

The consideration of tax incentives for geothermal energy was expanded from 'federal' only to 'federal, state, and local' tax and other incentives in Section 25993.2(b)(9).

Floor votes

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Full legislative history

Actions timeline

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Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

May 23, 2025

Lower · Passed

In committee: Held under submission.

lower

May 14, 2025

Committee

In committee: Set, first hearing. Referred to suspense file.

lower

Apr 22, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (April 21). Re-referred to Com. on APPR.

lower

Apr 21, 2025

Committee

Re-referred to Com. on NAT. RES.

lower

Apr 10, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended.

lower

Apr 8, 2025

Committee

Re-referred to Com. on NAT. RES.

lower

Apr 7, 2025

Lower · Passed

Read second time and amended.

lower

Apr 3, 2025

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on NAT. RES. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 2).

lower

Mar 25, 2025

Committee

Re-referred to Com. on U. & E.

lower

Mar 24, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

lower

Mar 3, 2025

Committee

Referred to Coms. on U. & E. and NAT. RES.

lower

Feb 11, 2025

Lower · Passed

From printer. May be heard in committee March 13.

lower

1 primary · 1 co-sponsor