Geothermal energy, a reliable clean-firm power source, is steadily gaining attention as part of the clean energy transition. Despite significant barriers to its expansion, strategic policy design can address many of these challenges. To enable meaningful progress, it is essential to bridge the gap between the expanding body of research advocating for geothermal development and the limited legislative action taken thus far in Congress.

The potential of geothermal energy

Geothermal energy harnesses the Earth’s natural heat to provide reliable, around-the-clock baseload power—with the added advantage of producing zero emissions. According to the Department of Energy, geothermal energy can provide up to 8.5% of all U.S. electricity generation by 2050. Traditional geothermal systems depend on naturally occurring heat, water, and permeable rock—conditions typically found in the western United States. However, next-generation technologies like Enhanced Geothermal Systems (EGS) expand the geographic potential by using techniques such as hydraulic stimulation to artificially create or enhance these conditions. 

With its strong ties to the oil and gas industry and its promise as a clean energy solution, geothermal energy has earned bipartisan support in Congress, reflected in multiple bills introduced by lawmakers from both parties.

Barriers to commercialization

Despite the strong potential and promising support for geothermal, the technology has been impeded by barriers ranging from delayed permitting to financing constraints. We reviewed existing literature and found four areas of policy reform that would advance geothermal in the United States:

1. Permitting: The timeline for a geothermal project can take between 5 and 10 years, underscoring the critical need to expedite permitting processes. Projects on federal lands have been required to undergo as many as six NEPA reviews, delaying commercial operation dates. 
   
2. Financial Support: Currently, high costs for exploration, drilling, and plant development impede geothermal development. Access to more financing options and cost reduction mechanisms, such as tax credits and public grants, can support a wave of early projects, including first-of-a-kind EGS and closed-loop geothermal. These initial projects can help drive costs down further, thereby incentivizing investment in subsequent deployment phases via private sector involvement. 
   
3. RD&D: Ongoing research is essential to enhance the precision of geothermal exploration and subsurface characterization. Additionally, RD&D for innovative technologies and processes that improve drilling and other project development activities would boost efficiencies and reduce costs. Opportunities for RD&D include public-private research collaborations and academic partnerships, which can draw on the deep technical expertise of the oil and gas industry to accelerate geothermal innovation. 
   
4. Stakeholder Education: Broadening the adoption of geothermal energy will require increased awareness and understanding among key stakeholders—including policymakers, utility regulators, energy consumers, host communities, research institutions, and the domestic workforce. Tailoring outreach and education efforts to address the specific interests and concerns of each group can help reduce resistance and streamline deployment. For example, addressing community concerns around water use and induced seismicity is essential for building local support in project areas.

Filling the policy gaps

Recent congressional activity has centered primarily on permitting reform, with comparatively few proposals targeting other critical areas such as RD&D and financing. While efforts to streamline geothermal permitting are promising and reflect recommendations found in the research literature, significant policy gaps remain. The table below outlines additional policy options that address these gaps and tackle the broader range of barriers to geothermal development.

Table 1. Examples of alignment and gaps in Geothermal Policy and Legislation introduced in 118th Congress (Highest impact bills listed)

Table Footnote: Other geothermal bills introduced in the 118th Congress include the Enhancing Geothermal Production on Federal Lands Act (Permitting), Geothermal Cost-Recovery Authority Act (Permitting), Geothermal Energy Opportunity Act (Permitting), HEATS Act (Permitting), CLEAN Act (Permitting), and Supercritical Geothermal Research & Development Act (RD&D). Some individual geothermal bills were incorporated into larger bills such as EPRA as well.

The wider policymaking context

States and localities have jurisdiction over many authorizations necessary for energy project development, and states can also contribute financial support, RD&D, and stakeholder education actions. As Congress advances federal policy, it must carefully evaluate which interventions—at both the federal and state levels—will most effectively accelerate geothermal deployment and achieve scalable, cost-efficient growth.

In recent years, several geothermal-focused bills have been introduced, varying in scope and impact. An example of a “low-hanging fruit” policy with modest but important contributions is the bipartisan CLEAN Act, which was reintroduced in the 119th Congress. This act amends the Geothermal Steam Act of 1970 to require annual lease sales for geothermal energy. Currently, the Secretary of the Interior is required to have a lease sale every 2 years. While modest, such incremental legislation, when paired with more comprehensive reforms like S. 3954 (the GEO Act), can help lay the foundation for broader geothermal growth.

Addressing larger barriers, such as transmission expansion and infrastructure permitting reform, is essential for accelerating geothermal energy adoption. For instance, expanding transmission infrastructure nationwide can reduce grid congestion and bottlenecks, allowing more geothermal projects to connect to the grid. This would, in turn, help stimulate demand for geothermal power, particularly given its baseload reliability. While it is vital to focus on the specific needs of the geothermal sector, addressing these broader infrastructure challenges is necessary to unlock its full potential.

Scaling geothermal for energy abundance

In the short-term, through bipartisan consensus, Congress is poised to pass legislation accelerating geothermal permitting. However, there is a simultaneous need for additional reforms, such as creative financing mechanisms and data collection for RD&D. For many developed energy technologies, permitting is the last step needed to unleash widespread growth; for geothermal it’s just the beginning.