Oversight Field Hearing on "“Letting Off Steam: Unleashing Geothermal Energy Development on Federal Land”

2025-05-12

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Summary

The meeting, held at Southern Utah University, focused on "Letting Off Steam: Unleashing Geothermal Energy Development on Federal Land," highlighting the critical role of geothermal power in meeting growing energy demands. Chaired by Pete Stauber, the session included discussions with industry leaders and government officials about the potential and challenges of this energy source. [ 00:05:16-00:05:41 ] [ 00:11:27-00:11:34 ]

Potential of Geothermal Energy

Geothermal energy is recognized as a reliable, clean, baseload power source with significant potential to meet the nation's increasing energy demands, particularly given the "AI war against China" and the need for new data center capacity. [ 00:12:23 ]

[ 00:12:39 ] [ 00:15:04 ] Unlike intermittent sources like solar and wind, geothermal provides steady, 24/7 power, crucial for grid stability and energy security. [ 00:15:08 ] [ 00:47:40 ] Advanced technologies, such as Enhanced Geothermal Systems (EGS) demonstrated by Fervo Energy's Cape Station project, are expanding where geothermal can be developed, potentially providing up to 90 gigawatts by 2050 or even over 230 gigawatts in the U.S. alone. [ 00:12:49 ] This development promises good-paying jobs and economic prosperity in rural communities, fostering a future built with American innovation and workers.

Permitting and Regulatory Barriers

A major impediment to geothermal development is the "cumbersome leasing and permitting practices on federal lands," leading to prolonged project timelines and increased costs. [ 00:12:54 ]

[ 00:14:56 ] Federal geothermal projects face up to six stages of National Environmental Policy Act (NEPA) review, which can take up to a decade and involves duplicative requirements and regulatory delays. [ 00:13:45-00:14:11 ] Mr. Latimer noted that Fervo and other developers are hesitant to invest in projects due to the unviable pathway through permitting, with permits often sitting for years without review. [ 00:38:41-00:39:10 ] There is a disparity in lease sales, with Utah offering significantly fewer acres than Nevada, despite high demand. Permitting transmission lines for geothermal energy also presents a challenge, with projects like the Transwest Express taking 16 years to permit and another five to construct. Interagency conflicts, particularly with the U.S. Fish and Wildlife Service, further hinder development through threats of litigation and delays in permit issuance. Proposed legislative efforts, such as the GEO Act and STEAM Act, aim to streamline processes, mandate annual lease sales, and allow concurrent consideration of multiple permits to accelerate development. [ 00:14:22 ] State-level permitting in Utah is notably quicker due to the absence of NEPA-type statutes, demonstrating that efficient permitting is possible without degrading the land. [ 00:53:36-00:54:09 ]

Technological Innovations and Research

Significant technological advancements, driven by public-private partnerships, are unlocking geothermal energy's vast potential. [ 00:40:26-00:40:49 ]

Fervo Energy has successfully adapted technologies from the oil and gas sector, including directional drilling and hydraulic fracturing, to develop enhanced geothermal systems (EGS). Their Cape Station project in Utah, described as the world's largest next-generation geothermal facility, represents a "new era of American energy." The Utah Frontier Observatory for Research in Geothermal Energy (FORGE) project, funded by the Department of Energy, serves as a crucial field-scale underground laboratory for EGS research. FORGE's work has led to innovations like new drill bit designs that increase penetration rates by 50% and improved seismic monitoring tools. The collaboration between entities like Fervo and FORGE, leveraging shared data and de-risking new drilling techniques, has been critical in attracting private sector investment and accelerating development. These innovations are rapidly reducing costs, with Fervo seeing over a 70% reduction in drilling costs, making geothermal potentially the "cheapest form of power" within the next five to ten years.

Tone of the Meeting

The overall tone of the meeting was optimistic and urgent, underscoring a shared commitment to leveraging geothermal energy for national energy security and economic prosperity. [ 00:12:23-00:12:34 ]

Speakers expressed gratitude for the collaborative efforts between federal, state, private, and academic entities, highlighting successful partnerships like Fervo Energy and the Utah FORGE project. [ 00:14:47 ] There was a clear determination to overcome existing regulatory and permitting hurdles, with strong support for legislative reforms aimed at streamlining processes. [ 00:14:17 ] The participants conveyed a hopeful vision for geothermal as a reliable and cost-effective energy solution, emphasizing its potential for widespread application across the country. [ 00:15:04 ] [ 01:00:53 ]

Participants

Transcript

Pete Stauber

Before we begin, I'd like to remind everybody about the rules of decorum for official congressional proceedings. I ask that there not be any kind of disruption regarding the testimony given here today. It is important that we respect the rules of the committee and of the house and to allow the members and the public to hear our proceedings. The Subcommittee on Energy and Minerals Resources will come to order. Good afternoon, everyone. I want to welcome our witnesses, members, and our guests in the audience today for today's hearing. And I also want to thank Representative Molloy for hosting us here in Cedar City. I would now like to recognize Southern Utah University Student President Landon Lee. who will begin this hearing with an opening prayer, followed by the Pledge of Allegiance. Landon, come on up.

August Lee Pfluger II

Hey everybody, if you will, can you please bow your heads? Dear Heavenly Father, we thank you for this day. We thank you for the amazing people that's come out here to represent us in Utah. Please bless us and give us guidance as we go through this meeting and give us the strength to power forward through this. We thank you again, Heavenly Father, for everything you've given us and the opportunities that we can take as a person. We say these things in the name of Jesus Christ. Amen. Please arise with me as I say the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Thank you all.

Pete Stauber

Thank you, Landon. Today we are at Southern Utah University for a House Committee on Natural Resources oversight hearing entitled, Letting Off Steam, Unleashing Geothermal Energy Development on Federal Land. Without objection, the chair is authorized to declare recess of the committee at any time. By way of introduction, I'm Pete Stauber, chairman of the House Natural Resources Committee, subcommittee at Energy and Minerals Resources. I also represent Minnesota's eighth congressional district covering northeastern Minnesota. I am grateful to be joined today by two of my colleagues. I ask unanimous consent that the gentlelady from Utah, Ms. Malloy, be allowed to participate in today's hearing. without objection so ordered. I also ask unanimous consent that all other members opening statements be made part of the hearing record if they are submitted in accordance with rule three zero without objection so ordered. I will now recognize myself. for an opening statement. I'd like to begin by thanking all the witnesses for being here to discuss this important topic before us today. I'd also like to thank Fervo Energy for leading an exciting and informative field tour of the cutting edge Cape Station project just this morning. In the coming years, the United States will face unprecedented growth in energy demand as we race to win the AI war against China and bring gigawatts of new data center capacity online. An all-of-the-above approach for energy development is the only option we have to move forward. As we saw today, reliable, clean, baseload geothermal power has incredible potential to help meet our growing needs. Geothermal plants already supply power across seven states and Hawaii, and that's just the beginning. For example, the Department of Energy estimates that next-generation geothermal technologies like the Enhanced Geothermal System, or EGS, that we toured this morning could provide up to 90 gigawatts of electricity by 2050, enough to power millions of homes and businesses across this great nation.

Pete Stauber

Unfortunately, cumbersome leasing and permitting practices on federal lands have prolonged project timelines and increased cost for geothermal developers. I'm proud to say that House Republicans are leading the charge to end these inefficiencies and unleash geothermal energy energy on federal lands. Just last week, the House Natural Resources Committee advanced its historic reconciliation title, which will generate $18.5 billion in new revenue and savings for the American people. This package includes mandates for annual geothermal leases, lease sales rather, which will contribute $23 million in revenue for the federal government and increase certainty for geothermal energy producers. While these changes are a vital step in the right direction, there is much more work to be done to allow geothermal power to scale up and reach its full potential. The Bureau of Land Management, or BLM, oversees geothermal development on federal lands. In fact, geothermal energy was the first type of renewable energy that the BLM approved for production on federal lands, dating back to 1978. However, as we've seen from other forms of energy operating on public lands, the permitting process for geothermal is mirrored by duplicative requirements and lengthy regulatory delays. Federal geothermal projects must complete up to six stages of National Environmental Policy Act, or NEPA,

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