The Colorado Energy and Carbon Management Commission (ECMC), the state body overseeing oil and gas operations, has taken a significant step by adopting its first-ever rules governing geothermal drilling. This move follows a legislative overhaul in 2023, which expanded the commission’s authority to include emerging energy technologies like carbon capture and deep geothermal energy.
The ECMC, formerly known as the Colorado Oil and Gas Conservation Commission, voted unanimously (5-0) on Monday to approve the Deep Geothermal Operations rules. The 59-page rulebook details the permitting and enforcement procedures for geothermal drilling, modeled closely after those for oil and gas operations. The new rules empower the commission to grant or deny permits based on health and safety considerations, while also involving local governments in the decision-making process.
Governor Jared Polis, a strong advocate for geothermal energy through his “Heat Beneath Our Feet” initiative, praised the new rules, stating that Colorado is now “poised to leverage this clean, renewable energy resource.” He highlighted geothermal energy’s potential to reduce emissions and provide low-cost power to Coloradans.
Deep geothermal energy, which involves drilling thousands of feet into the Earth’s crust to tap into much hotter energy sources than traditional heat pumps, holds promise as a “baseload” source of clean energy. Unlike wind and solar, which can be intermittent, geothermal energy can provide a steady and reliable power supply. However, the feasibility of deep geothermal projects depends heavily on local geology. A recent study by ECMC, in collaboration with the Colorado Geological Survey and energy firm Teverra, identified the Piceance Basin, the Raton Basin, and a localized hotspot near the Colorado-Kansas border as the most promising locations in the state for geothermal development.
A July 2024 study conducted by the Colorado Geological Survey and the Energy and Carbon Management Commission identified areas of high potential for electricity-producing geothermal energy operations in Colorado. (ECMC)
While the potential of deep geothermal energy is acknowledged, experts and regulators alike caution against expecting a rapid expansion of the industry. Commissioner Brett Ackerman noted that the sector is still in its “pilot stage” and emphasized the importance of addressing future concerns without stifling early-stage development.
Environmental and local government groups have expressed cautious optimism about the new regulations. Colorado Communities for Climate Action, a coalition of 43 local governments, praised the ECMC’s efforts to balance the benefits of geothermal energy with the need to protect communities and the environment from the kind of damage seen in oil and gas development. Boulder County’s Assistant County Attorney, Kate Burke, echoed these sentiments, acknowledging the unknowns regarding the potential environmental impacts.
Geothermal Rising, a trade group representing geothermal energy companies, expressed satisfaction with the adopted rules. However, environmental groups have called for a follow-up rulemaking process to further refine regulations before the industry begins to scale up operations.
As Colorado positions itself at the forefront of geothermal energy development, the ECMC’s new rules mark a crucial first step. However, with the industry still in its infancy, stakeholders agree that a cautious and measured approach will be key to realizing geothermal energy’s full potential in the state.
