STEAM Act: Geothermal Projects Now Face Same Environmental Reviews as Oil and Gas

The Streamlining Thermal Energy through Advanced Mechanisms Act, or STEAM Act, amends the Energy Policy Act of 2005 to put geothermal energy projects under the same environmental review umbrella as oil and gas. Basically, if you're planning to tap into the Earth's heat for energy, you'll now need to go through the National Environmental Policy Act (NEPA) review process, just like fossil fuel projects.

Drilling Down into the Details

The STEAM Act directly amends Section 390 of the Energy Policy Act of 2005. It adds "geothermal" alongside "oil" and "gas" in subsections (a) and (b). This seemingly small change has a big impact: it triggers a full environmental assessment for any new geothermal exploration or development. This means that before a company can start drilling for geothermal energy, they will have to assess the environmental impact of the project, from potential disruption to the local ecosystem, to the impact of construction work. (SEC. 2).

Real-World Rollout

Imagine a company wants to build a new geothermal power plant near a small town. Previously, the environmental review process might have been less stringent. Now, under the STEAM Act, that company must conduct a thorough NEPA review. This could involve assessing the project's impact on local water resources, wildlife, and even noise levels during construction. For a farmer whose land is adjacent to the proposed site, this means they'll get a clearer picture of how the project might affect their operations and the surrounding environment.

Potential Hurdles

While putting geothermal on par with oil and gas for environmental reviews sounds good in theory, it could create some practical challenges. The NEPA process can be lengthy and complex, potentially slowing down the development of new geothermal projects. This matters because geothermal is a clean, renewable energy source, and delays could hinder efforts to transition away from fossil fuels. The added regulatory steps might also increase costs for developers, which could ultimately impact energy prices for consumers. It's a balancing act between protecting the environment and promoting renewable energy development.

Fitting into the Bigger Picture

This move aligns the rules for geothermal energy with those already in place for oil and gas under the Energy Policy Act of 2005. This means there is now a uniform standard for environmental review across these energy sources. This act does not change the Geothermal Steam Act of 1970 but expands the NEPA review to cover exploration and development of geothermal resources as defined in the Geothermal Steam Act of 1970.