BLM streamlines permitting for small-scale geothermal exploration

The Lightning Dock geothermal power plant in New Mexico (source: Zanskar)

Carlo Cariaga 29 Apr 2026

The Bureau of Land Management (BLM) has approved a new categorical exclusion (CE) that streamlines the permitting process for small-scale geothermal exploration projects, particularly those that will disturb only up to 10 acres of land. The notice for the revisions to the National Environmental Policy Act (NEPA) have been published in the Federal Register.

Categorical exclusions are categories of actions that have been determined to not typically have significant environmental impacts, eliminating the need to do a full environmental review. The new Geothermal Resource Exploration Operations Categorical Exclusion (GEO CE) helps reduce regulatory burdens for early-stage geothermal projects and saves time and resources for developers.

In 2024 the BLM had already announced a proposed categorical exclusion for geothermal resource confirmation operations. This was published on the Federal Register for a public comment period on January 2025. Some changes were made to the rule based on the comments received during this period, mainly to better define the scope of the CE.

As defined in 43 CFR 3200.1, geothermal exploration operations encompass geophysical measurements, drilling of temperature gradient wells, drilling for seismic exploration, core drilling, or any other drilling method provided the well is not used for geothermal resource production. This also includes auxiliary activities such as the building of roads and well pads. Geothermal exploration odes not include the direct testing or the production and utilization of geothermal resources.

The CE also requires the reclamation of surface disturbances and temporary routes when their intended purpose has been fulfilled, as well as the integration of design elements designed to protect natural resources based on the applicable resource management plan, laws, regulations, and lease terms.

The CE applies to geothermal resource exploration activities that does not exceed 10 acres of total surface disturbance, whether contiguous or non-contiguous. It also applies to both pre-lease and post-lease exploration.

The new GEO CE significantly expands on a previous CE applicable to geothermal exploration activities, but only for geophysical studies that require no construction of new roads or wells pads. Although the old CE had no limits of total area of surface disturbance, its restrictions on allowable activities was too limiting for geothermal de-risking work.

“By setting consistent permitting expectations across public lands, we’re giving operators a clear, predictable path to delivering a reliable supply of geothermal energy,” said BLM Acting Director Bill Groffy. “This new categorical exclusion streamlines the process without compromising environmental review or quality standards. It will expedite the approval of new geothermal projects, ensuring operators across the West can provide more energy for the American people.”

Source: Bureau of Land Management