Senate Approves Bill to Spur Geothermal Energy Projects

SB26-142 would allow municipalities to develop and expand renewable energy projects

DENVER, CO – The Senate today approved legislation sponsored by Senator Matt Ball, D-Denver, and Senate President Pro Tempore Cathy Kipp, D-Fort Collins to help municipalities reach clean energy goals by streamlining the development of geothermal energy projects. 

“If we’re serious about meeting our goal of 100% clean energy by 2040, we need to capitalize on Colorado’s unique potential for geothermal energy,” Ball said. “This bill is an innovative and exciting step towards allowing local governments to develop more energy for themselves, making energy cleaner and cheaper for all.”

“Local governments know their needs best, and they should be able to utilize the energy that local industries produce as a byproduct,” Kipp said. “This legislation is a huge step forward for these municipalities who have been facing red tape and regulatory barriers in their pursuit of these projects and their clean energy goals.”

SB26-142 would expand the use of geothermal energy by removing barriers to allow local governments to more easily enter into agreements for new projects and create new pathways for geothermal innovation.

Under the bill, local governments could enter into their own agreements to develop, operate, and finance geothermal energy projects and provide that energy outside their jurisdiction through collaboration with other local governments.

Additionally, the bill would require the Colorado Energy and Carbon Management Commission to collect data from orphaned oil wells for geothermal energy resources in the state and make recommendations for safe and effective development to the General Assembly by November 15, 2026. 

Colorado has been ranked as having the highest geothermal resource of all 50 states in the three to four kilometer depth range, but technology isn’t currently ready to extract this heat and generate electricity. This new legislation would remove some of the red tape that has restricted development of geothermal energy in order to help the state reach its clean energy goals. 

SB26-142 now moves to the House for further consideration. Track its progress here.