HR1687

The CLEAN Act (HR1687) is currently in subcommittee hearings, indicating early legislative movement. The bill amends the Geothermal Steam Act of 1970 to require annual geothermal lease sales, replacing the previous two-year cycle. It also mandates replacement sales if an annual sale is canceled or delayed and requires the Secretary of the Interior to offer all eligible nominated parcels. Furthermore, the bill establishes strict 30-day deadlines for the Secretary to notify applicants of complete geothermal drilling permit applications and to issue a final decision. These provisions directly streamline the permitting process and increase the frequency and availability of geothermal development opportunities. The money trail for this legislation is indirect but significant. By increasing the frequency of lease sales and accelerating permit approvals, the bill reduces regulatory hurdles and operational timelines for geothermal energy projects. This translates into lower development costs and faster revenue generation for companies in the geothermal sector. The mechanism is regulatory relief and increased access to resources, rather than direct appropriations. Companies with established geothermal operations and those capable of rapid development stand to benefit from this accelerated environment. The bill's sponsor, Rep. Fulcher (R-ID), is a junior member, but the bipartisan cosponsorship (including Ms. Maloy and Ms. Boebert) indicates broader support for geothermal expansion. Historically, legislation that streamlines energy project development has led to increased investment and stock performance for companies in the affected sector. For example, when the Energy Policy Act of 2005 provided tax incentives and streamlined permitting for various energy sources, companies involved in renewable energy saw sustained growth. While specific geothermal-focused legislation of this exact nature has not been enacted recently, the general principle of regulatory acceleration for energy projects consistently boosts market confidence and investment in the targeted sector. The increased certainty and reduced timelines for project execution directly improve the financial outlook for geothermal developers. Specific companies positioned to gain include Ormat Technologies Inc., a leading integrated geothermal company involved in development, operation, and power generation. Calpine Corporation, which operates geothermal power plants, will also benefit from expanded leasing opportunities and faster permitting. Ballard Power Systems Inc. ($BLDP), while primarily focused on fuel cells, has strategic interests in clean energy infrastructure that could see indirect benefits from a more robust geothermal sector. The bill's provisions directly reduce the time and cost associated with bringing geothermal projects online, which will improve the profitability and expansion potential for these companies. The next step for the CLEAN Act is to move out of subcommittee and through the full House Natural Resources Committee. If it passes the House, it will then move to the Senate. Given its focus on energy development and regulatory efficiency, it has a reasonable chance of progressing, especially with bipartisan support. The immediate impact will be an increase in the number of available geothermal leases and a significant reduction in the time it takes to secure drilling permits, which will be felt by developers as soon as the bill becomes law.