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Why Aren't More Geothermal Projects Moving Forward in California?

Karl Gawell, Geothermal Energy Association
February 04, 2009  |  8 Comments

Geothermal energy produces more power in California than wind and solar combined, comprising almost 5% of the state's electricity. As the state moves forward, it will need significant new production from geothermal and other renewable technologies to meet the aggressive climate change goals set by the governor and the legislature. While there is a lot of pressure to accelerate production and a host of federal and state initiatives proposing to help, we need to make sure they are addressing all of the critical hurdles.

When I asked the question at a recent industry meeting, "Why aren't more projects moving forward in California?" the response was rather quick and direct. While I could have expected a discussion of investment problems, the slow economy, or the need to develop new technology, what I was told was: leases and permits are simply not being issued.

Here's one example I was given: a lease that won with a very substantial bid from the Bureau of Land Management (BLM) almost two years ago was still waiting for a drilling permit to be issued. This particular lease is not in a pristine area, but to the contrary, it is almost totally within an existing geothermal field.

Another example was the continued delays in decision-making at one geothermal site due to off-road vehicle users. Despite completion of a full EIS, development at one new site in Southern California, known as Truckhaven, is not proceeding because leases have yet to be issued, let alone subsequent permits approved. The problem is opposition to the project from recreational off-road vehicle users who like to drive their four-wheel-drive vehicles around the area. The project is delayed while the BLM seeks to assuage their concerns.

While these two examples might just seem to be the kind of problems endemic to working on public lands, they are just the tip of the iceberg. In a state where federal and state lands play a significant role, most of the public lands have effectively been off limits for decades because the land-use plans of federal agencies simply didn't consider geothermal energy when they were prepared.

Before a lease can be issued on public lands the land-use plan for the area has to have adequately considered geothermal leasing and made a decision that the lands could be open to leasing. Also, the land-use plan has to have an adequate and up-to-date environmental analysis (EA or EIS) supporting it. Because BLM (and the FS) simply have not done their homework in the land-use plans prepared over the past 25 years, most areas in California have been de facto closed to geothermal leasing and development.

That is why in 2007 and 2008 the BLM and Forest Service prepared a Programmatic Geothermal EIS (PGEIS) to address this history of neglect. Now, as part of their Record of Decision (ROD) on this document, the Department of the Interior is amending plans in California and other western states to either allow leasing or close lands to leasing on the basis of the results of their analysis. For California, the ROD proposes to amend land-use plans in 11 California BLM planning areas to open 10 million acres to possible geothermal leasing. At the same time, the ROD will close 5 million acres in these 11 BLM planning areas to geothermal leasing.

If someone cannot obtain a lease to develop a geothermal project, there is simply no incentive to explore for or develop new resources. Now, the BLM has in place the plans and environmental documents necessary to make a decision if someone nominates BLM lands for competitive leasing. But for the past two decades, 10 million acres of public land in California with geothermal potential were off-limits due to bureaucratic oversight.

This is a lot of land and the PGEIS analysis indicated that a lot of it does have geothermal potential. Today, there are only about 50,000 acres of federal geothermal leases in production nationwide which support about 1200 MW of power capacity. So, how much geothermal potential might there be on these 10 million acres?

Let's do a quick back-of-the-envelope calculation; if ten percent of the land now open to leasing is eventually developed at the same proportion to existing leased acreage, geothermal production would increase 2000%. This is just from the lands in California — the PGEIS also made decisions for 11 other western states. And, while that sounds like a lot of land to develop, geothermal power has one of the smallest footprints of any energy technology. Only a small fraction of each lease is actually utilized for power production.

Let's get back to the question we started with: why aren't more geothermal projects moving forward in California and what needs to be done about it?

Congress and the new administration have set some high goals for expanding renewable energy production, including geothermal energy. Don't get me wrong, I think making an investment in new technology is vitally important. We need that investment. It's also exciting to see the emphasis on providing effective incentives for doubling or tripling renewable power production over the next three years. The rollercoaster of federal and state policies supporting renewable energy has unquestionably been part of the problem.

But we also need to address the bureaucratic hurdles that could stand in the way of achieving this goal. Timely decisions regarding leasing and permitting must not be ignored — they are fundamental to achieving expanded geothermal energy production in California and the West. Sometimes when I am asked what the hurdles are to moving geothermal and other renewable production forward, I feel like invoking the wisdom of the comic strip character, Pogo, who would often remark: "We have met the enemy, and them is us."

8 Comments

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Robert Mida
Robert Mida
February 12, 2009
Open-looped Geothermal has many problems for electricity generation including emissions of hydrogen sulfide, ammonia, carbon dioxide and radon. This can also deplete the clean water resource and in the western states like California, now experiencing drought, will hopefully alert more people to this energy source's limitations.
http://www.energyjustice.net/geothermal/ has some further information.

Closed-Loop Geothermal heat pumps are the way to go.
Thomas M
Thomas M
February 9, 2009
Perhaps it is the unstable land out there. I've seen systems get ruined here in MA from ground shifting. Imagine what a good quake could do to a very expensive GT installation? Keep it small and Keep it simple.
Dominic Jermano
Dominic Jermano
February 6, 2009
I agree Jay....and that the technology used in geothermal wells can be converted to use the sun's energy....whereby saving tons of cash from the drilling process....This process can use and store the heat energy for night operations...making it also a 24-7 mainline contributor.

http://my.nowpublic.com/world/new-energy-breakthrough-sunpress-c4h10-inert-elextrix-not-be-confused-solar-power......

Dominic
Jay Rosenberg
Jay Rosenberg
February 6, 2009
The competing renewable energy venues have done a sales job on the public and investors. CSP (concentrated Solar Power), must obey the Carnot thermodynamic law which reveals a low net efficiency at low CSP collector temperatures. A "correction" employs molten salt thermal reservoirs, in part to overcome a sun which refuses to provide 24x7 radiation energy to an earthbound site. Too much complexity and cost. The push back / resistance from these and fossil/ nuclear interests is enormous. My company is intent in commercializing its high efficiency, low cost, made in USA powerblock (RET, or RET-PB) for copious and cheap geothermal power and can operate in low temperature differentials, and inferior sites. It will be economically viable and energy productive even in less geo-thermally active areas, or in cheaper installations. (RET can improve the efficiency in CSP, Solar Thermal ..., it is heated working fluid agnostic, but there is a gold ring out there that should be pursued), JR CEO Sannerprojects, Inc Sannerwind@gmail.com
Sean Hagerty
Sean Hagerty
February 5, 2009
The situation in the Truckhaven field is a little more complicated than how Mr. Gawell has described the issues. While I admit that there is a significant level of interest in the area from off road vehicle recreationists, I believe that the potential impacts from geothermal leasing and potential development have been mitigated. The primary mitigation in this situation is to have the federal lessees join together in what is called a federal geothermal unit. By unitizing the land, exploration and subsequent development can proceed with far less impacts to the lands than if the three potential lessees at Truckhaven were allowed to develop their leases independantly of each other. What Mr. Gawell did not say is that one of the three current lease applicants has filed an appeal to, among other issues, challenge our authority to require unitization.

So here we are, while we try to minimize impacts to the land for everyone's benefit, it is one of the lease applicants who, in part, has stopped the leasing process until a judge rules on the merits of appeal. So in the meantime, the leasing process at Truckhaven is on hold. If the leasing decision was exempt from federal appeals, the leases would have been issued 5 months ago!

Perhaps a consideration should be that following an environmental review for a renewable project, a review that includes public comment/input at the initial scoping, the draft environmental document stage, and the final environmental document stages, the decision should be exempt from legal challenges...In this example, leasing would occur and development could proceed. Until then, we'll just have to wait for the court system to address the appeals to the decisions.
Anthony Hunter
Anthony Hunter
February 5, 2009
I'm afraid any attempt to improve the bureaucratic process within BLM will have to wait. Right now they have their hands full undoing what little confidence the investing public has in Federal management by "reviewing" decisions made by the previous bureaucrats. In four or eight years, the next set of bureaucrats can "review" these bureaucrats' decisions. And so on and so forth ad nauseum.
David G.
David G.
February 4, 2009
You're right.

But companies like Raser technologies (symbol RZ) get around the problem by producing Geothermal in nearby states like Utah, Nevada and Oregon and then sell it to California.

RZ is about to open their first geothermal plant of 10MW in Utah and guess who they're selling it to? Anaheim, CA.

Raser is a great story if they can open their plant. Because unlike other geothermal plants, they can create a plant in just 6 months.

That is light speed ahead of compared to how long other companies take to build a geothermal plant (3-5 years).

And a lot of that is, like you said, leases and permitting.

Keep up the articles on geothermal!
terry hallinan
terry hallinan
February 4, 2009
Right on the money. Thank you.

Bureaucratic snafus are applicable to transmission lines as well and probably moreso.

Geothermal power is developed nearly exclusively near transmission lines which is like looking for your wallet where the light is good rather than where you lost it.

All that is without mentioning all manner of opposition from "environmentalists" and the problem of a hefty upfront capital investment requirement with a vast ignorance of the technology.

It's a wonder we have any geothermal power.

Best, Terry

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Karl Gawell

Karl Gawell

Karl has been the Executive Director of the Geothermal Energy Association since 1997. He was formerly Director of Government Affairs for the American Wind Energy Association and has held senior positions at the National Wildlife Federation...
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