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The U.S. Department of the Interior (DOI) announced on May 30 that it will invoke emergency permitting procedures to accelerate environmental review of select geothermal energy projects, with three proposed geothermal projects in Nevada to be among the first projects to undergo expedited review.
This action follows President Trump’s January 20, 2025, executive order declaring a national energy emergency aimed at expediting the delivery of energy infrastructure. Pursuant to this executive order, DOI declared in April that for certain projects it would invoke its emergency authority to implement streamlined permitting procedures to develop domestic energy projects on an expedited timeline, including oil, gas, coal, hydropower and geothermal, among others.
The May 30 announcement affirms that DOI will use its emergency review powers for under the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA) and the Endangered Species Act (ESA) to expedite environmental reviews and limit document requirements. To that end, the DOI’s Bureau of Land Management (BLM), which oversees geothermal development on federal land, will compress the combined environmental review timelines and allow for more concise documents. Particularly, BLM will: (1) shorten the timeline of review for projects analyzed in an environmental assessment from up to one year to approximately 14 days, and (2) compress the timeline for projects needing a full environmental impact statement from two years to roughly 28 days.
The first geothermal energy projects to benefit from this new approach are all spearheaded by Ormat Nevada Inc. and located in Nevada:
- Diamond Flat Geothermal Project. Located in Fallon, this proposed project will drill test wells and evaluate the presence of geothermal resources on federally leased land to evaluate commercial viability of the geothermal reservoir.
- McGinness Hills Geothermal Optimization Project. Located in Landon County, this proposed project will involve expanding and upgrading three geothermal power plants already in operation through adding cooling fans, advanced heat exchangers, new wells, and a solar voltaic field.
- Pinto Geothermal Project. Located near Denio, this proposed project will involve evaluating the potential for geothermal development on leased public lands through certain exploration and test drilling activities.
According to DOI, the intent of invoking its emergency authority for these geothermal projects is to “accelerate geothermal projects that address urgent national security and energy needs while maintaining environmental stewardship.”
Judicial and Regulatory Context
DOI’s announcement comes just one day following the U.S. Supreme Court decision in Seven County Infrastructure Coalition, et al., v. Eagle County, Colorado, et al., which reaffirmed the broad judicial deference afforded to federal agencies in determining the scope of a NEPA review. The Court limited agencies’ obligations to analyze environmental impacts upstream and downstream of a project that are not directly tied to the proposed project. This decision is expected to support DOI’s efforts to further narrow and expedite NEPA reviews.
On June 3, 2025, DOI also announced the recission of 18 federal rules related to geothermal energy and mineral exploration on public lands. The rules, described as “obsolete or redundant,” are expected to be published in the Federal Register in the coming days in an effort to remove “bureaucratic red tape” hindering energy production.
What This Means for Geothermal Development
Geothermal energy, which involves converting heat from underground reservoirs of hot water to steam to drive turbines that produce electricity, is uniquely positioned to play a critical role in the U.S. energy mix. Unlike solar and wind power, geothermal systems provide baseload renewable energy, operating continuously and independently of weather conditions. This reliability makes geothermal a strong complement to intermittent renewables.
However, geothermal energy may present environmental risks, including:
- Induced seismicity and land subsidence from fluid injection and withdrawal.
- Ecosystem disturbance due to land clearing and infrastructure development.
- Air emissions, such as carbon dioxide, hydrogen sulfide, ammonia, boron and methane—though these are generally lower than those from fossil fuels.
As permitting timelines shorten and regulatory hurdles are reduced, developers may find geothermal projects more economically viable. DOI’s implementation of emergency permitting procedures is likely to be a significant boost to geothermal development, as large areas of potential geothermal resources in the American West coincide with federally managed lands. Historically, permitting for geothermal projects on federal lands has been an extended process due to the comprehensive reviews mandated by statutes such as NEPA, ESA and NHPA.
These timelines have posed challenges to project development, especially during the exploratory phases that may be needed to assess site potential. The new 14- and 28-day review periods will mark a substantial schedule reduction, which is expected to facilitate quicker decision making and reducing uncertainties facing potential projects. However, despite the expedited schedule, attention to environmental compliance will remain essential to mitigate these risks and ensure long-term project sustainability.
Further regulatory developments in the geothermal space are expected in the coming months. Pillsbury’s multidisciplinary team possesses deep experience on the legal issues facing all phases of geothermal energy projects and investment, from initial site acquisition and permitting to financing, regulatory compliance and operational considerations. Our attorneys are well-equipped to provide strategic counsel on the implications of these regulatory changes, ensuring that clients are positioned to effectively navigate this evolving legal landscape.
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