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Regulatory and Permitting Information Desktop Toolkit

Washington Geothermal Permitting Process (WA)

The steps of the Washington geothermal permitting process are summarized in the chart below. Roll over each section for a summary of the regulations and permits it covers. Click a section to learn more about the required permits and regulations related to that topic.

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Project Development Timeline

Geothermal Development in Washington

The state of Washington defines geothermal resources as sui generis: “being neither a mineral resource nor a water resource and as such are declared to be the private property of the holder of the title to the surface land above the resource, unless the geothermal resources have been otherwise reserved by or conveyed to another person or entity.” RCW 78.60.040.

Pursuant to RCW 78.60.060, developers that remove and reinject water in a “closed loop” system in order to obtain geothermal resources are not subject to the appropriation rules and procedures outlined in RCW 90.44 Regulation of public groundwaters. In addition, water reasonably lost during the testing of a geothermal well or the temporary failure of a “closed loop” system is exempted from RCW 90.44.

Initially, geothermal developers in Washington need to ensure that the applicable local Land Use Plan (LUP) allows for geothermal exploration and development projects. RCW 36.70 mandates regional planning at the county level.

To develop geothermal resources in Washington, developers must obtain a lease and, any required right of way (ROW) easements or permits to encroach on or access existing state ROWs. The Washington State Department of Natural Resources (WSDNR) is still developing procedures for geothermal leasing, but the process is expected to be closely related to the process for leasing state lands for oil and natural gas development. Currently, to develop geothermal resources on Washington state trust lands developers must obtain a State Land Lease by submitting an application to the WSDNR in accordance with RCW 79.13 Land Leases and WAC 332-22 State Land Leasing Program Rules. The WSDNR will either offer the land for a public lease auction or negotiate the terms for a land lease with the developer. For ancillary activities related to development and not covered under a geothermal lease, developers may need to obtain a right-of-way (ROW) over state land by submitting an application for a permit/easement to the WSDNR.

To conduct certain exploration activities, developers may need approval from the WSDNR. For non-drilling geothermal exploration activities on state land lasting one year or less, developers must obtain a Land Use License. For non-drilling geothermal exploration activities on state land lasting longer than one year, developers must obtain a Special Use Lease. Developers who seek to conduct drilling operations must obtain a Drilling Permit from WSDNR. WAC 332-17-100(1). For core holes less than 750 ft. deep, a Drilling Permit is still required, but developers are relieved from the public notice and hearing requirements otherwise necessary for most Drilling Permits. Developers are required to initiate review under the Washington State Environmental Policy Act (SEPA), including submitting a SEPA environmental checklist with the Drilling Permit application.

For geothermal development drilling operations, developers must obtain a Drilling Permit from the WSDNR. WAC 332-17-100(1). Developers are required to initiate review under the Washington State Environmental Policy Act (SEPA), including submitting a SEPA environmental checklist with the Drilling Permit application.

For geothermal operations that include the injection and removal of fluids, developers must obtain an Underground Injection Control (UIC) Permit or register any underground injection control well necessary for the project. The WSDE regulates and permits UIC wells in Washington. The majority of UIC wells are authorized by rule and do not require a formal permit, however, the developer must register the well and comply with Washington’s Non-endangerment Standard.

To produce the geothermal resources and convert the resource to marketable electricity, construction of a power plant may include Energy Facility Siting Certification (EFSC) from the Washington State Energy Facility Site Evaluation Council (EFSEC). However, EFSC is not required. RCW 80.50.060(2).

Where the geothermal facility requires a consumptive use of water or for ancillary water uses involved in geothermal development projects (cooling water, dust suppression, etc.), developers will likely need to obtain water through municipal or governmental supplies, private lease supplies, or a new or changed water right. The Washington State Department of Ecology (WSDE) administers the rules and regulations pertaining to water rights ( RCW 90.03.380 and RCW 90.44.100) and should be consulted throughout any processes related to water rights and water access. Depending on the project location, the developer may require approval of a transfer or changed water right from both the WSDE and a local Water Conservancy Board. For new water rights, developers must obtain a permit from the WSDE, unless the water need falls within the 5,000 Gallons/day industrial exception. Regardless, for any project that requires new or additional water wells, the developer must formally notify the WSDE, hire a licensed well driller, and submit a water well report within 30 days after constructing the well.

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Federal Regulations and Permits for Geothermal Development

Initially, geothermal developers need to ensure that the applicable Land Use Plan (i.e., Resource Management Plan (RMP)) allows for geothermal exploration and development projects. In order to conduct certain exploration activities, developers need permission from the Bureau of Land Management (BLM) or United States Forest Service (USFS). Exploration activities may require review under the National Environmental Policy Act (NEPA). Whether nominated by the BLM or by a developer, eventually developers need to obtain a Lease for Geothermal Resources (Form 3200-024a) overlying the land for any activities beyond geothermal exploration covered under a Notice of Intent to Conduct Geothermal Resource Exploration Operations (Form 3200-009) (NOI).

For ancillary activities related to development and not covered under a geothermal lease, developers may need to obtain a right-of-way (ROW) over federal land from the applicable surface land management agency. Geothermal development operations, including drilling, require an approved Geothermal Drilling Permit (Form 3260-002) (GDP) and typically an approved Plan of Operations (POO) from the BLM, which will also require NEPA review. In order to produce the geothermal resources and convert the resource to marketable electricity, developers need an approved Plan of Utilization (POU) for the construction of a power plant and related activities. Finally, the developer must plug and abandon geothermal wells that are no longer in use or demonstrated to be potentially useful, if directed to do so by the BLM.

Land Use Planning

Geothermal projects on federal land must be consistent with the applicable Land Use Plan (LUP). Most projects on federal land will be subject to the administration of either the BLM or the USFS. In 2008, the BLM and USFS, in cooperation with the United States Department of Energy (DOE), issued a Record of Decision (ROD) to amend RMPs for geothermal leasing in the western United States. The ROD amended 114 BLM land use plans in the 11 western states and Alaska by using a Programmatic Geothermal Environmental Impact Statement (PGEIS). Geothermal projects sited within the RMP areas affected by the PGEIS will not require a revision or an amendment. Geothermal projects sited outside of the RMP areas affected by the PGEIS may require an amendment to the applicable LUP/RMP.

Exploration

Generally, developers will obtain a Notice of Intent to Conduct Geothermal Resource Exploration Operations (Form 3200-009) (NOI) on federal lands from the BLM. Exploration activities that “ordinarily lead to no significant disturbance of federal lands, resources, or improvements” 43 CFR 3200.1 qualify as “Casual Use” activities and do not technically require a permit. CU geothermal exploration activities generally include the use of all-terrain vehicles, two-meter probe surveys, magnetotelluric surveys, gravity surveys, geochemical surveys, archaeological surveys, and water sampling. In practice however, developers typically submit an NOI even for CU exploration activities. If the lands are managed by the USFS and not covered under a geothermal lease, developers must obtain an Exploration Permit directly from the USFS. If managed by the USFS but already subject to a geothermal lease, developers will go through the NOI process with the BLM. An approved NOI is tantamount to a permit to explore. In addition to CU exploration activities, an NOI can also allow for seismic surveys, electromagnetic surveys, and the drilling of temperature gradient wells. 43 CFR 3200.1. The aforementioned more invasive exploration activities can still bypass an otherwise more lengthy NEPA review by way of a Categorical Exclusion (CX). 43 CFR 3250. A CX is only applicable to drilling temperature gradient wells so long as there is no new associated well pad or access road construction. Any additional drilling beyond a temperature gradient well required to confirm the existence of geothermal resources will require an approved Geothermal Drilling Permit (Form 3260-002) (GDP). GDPs are not eligible for CX classification for purposes of NEPA review, likely requiring either an Environmental Assessment (EA) or Determination of NEPA Adequacy (DNA). Generally, a DNA will only suffice for subsequent GDP applications, where the original EA contemplated more wells than the amount proposed. Upon completion of exploration operations, if the BLM approved a NOI, the developer must send the BLM a complete and signed Notice of Completion of Geothermal Resource Exploration Operations (Form 3200-010). 43 CFR 3253.11.

Land Access

Geothermal Lease

In order to obtain federal geothermal mineral rights, developers must obtain a Geothermal Lease from the BLM. A Geothermal Lease conveys the exclusive right to drill for, extract, produce, remove, utilize, sell, and dispose of all geothermal resources in the lands subject to the lease. Lease for Geothermal Resources (Form 3200-024a).

Geothermal resources include:

  1. All products of geothermal processes, including indigenous steam, hot water, and hot brines;
  2. Steam and other gases, hot water, and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations;
  3. Heat or other associated energy found in geothermal formations; and
  4. Any byproducts.

43 CFR 3200.1.

Given the rights conveyed and the applicable definition of “geothermal resources,” developers do not need to obtain a state water right related to the extraction of hot water and brines that are part of the geothermal resource/formation. The right to extract water, brines, and fluids for the purposes of geothermal development is inherent in the rights conveyed under a federal geothermal lease. If the project lands are available for lease, the BLM will hold an oral competitive auction and the lands will be offered to the highest qualified bidder. If no one bids on the leases in the competitive auction, developers may obtain a lease through a non-competitive process.

If the project is located on tribal lands, developers will negotiate with the appropriate tribe for a lease, which must be approved by the Bureau of Indian Affairs (BIA).

Issuing a Geothermal Lease constitutes a “major federal action” that triggers NEPA review. However, the previously discussed PGEIS allows for the issuance of geothermal leases without additional NEPA review by way of a Determination of NEPA Adequacy (DNA) tiered to the environmental review conducted for the amended RMP. For lands not within the 114 RMPs covered by the PGEIS, the BLM must conduct a NEPA review prior to issuing or making lands available for geothermal leasing.

Rights of Way

If federal land is required for ancillary activities related to development and is not covered by the geothermal lease, developers must obtain ROW access from the BLM or other federal agency. Ancillary activities may include transmission lines, roads, and other access. If the aforementioned activities are on USFS managed surface land, developers must obtain a special use authorization from the USFS. Similarly, for ancillary activities on Bureau of Reclamation (BOR) managed land, developers must obtain a Use Authorization from the BOR.

Well Field Development

In order to conduct drilling operations on federal land, developers must obtain an approved Geothermal Drilling Permit (Form 3260-002) (GDP) and POO from the BLM. Title 43 CFR 3261 Drilling Operations: Getting a Permit. If another federal agency manages the surface of the lease, that agency will be involved in the application review process. GDPs require NEPA review, either in the form of a DNA, EA, or Environmental Impact Statement (EIS). Generally, a DNA will only suffice for subsequent GDP applications, where the original EA or EIS contemplated more wells than the amount proposed.

Power Plant

In order to produce the geothermal resources and convert them to marketable electricity, developers need an approved POU for the construction of a power plant and related activities. A POU involves a Utilization Plan, Facility Construction Permit 43 CFR 3272, Site License 43 CFR 3273, and Commercial Use Permit 43 CFR 3274. Developers must participate in an application coordination meeting, which may be combined with the required on-site visit. Developers must complete the environmental review process under NEPA before the Site License and Facility Construction Permit will be approved by the BLM. After construction of the power plant, developers must obtain the Commercial Use Permit prior to commencing commercial operations under a federal lease, a federal unit, or a utilization facility. 43 CFR 3274.10.

Developers may choose to seek status as a Qualifying Facility (QF) under the Public Utilities Regulatory Act (PURPA). QF status provides certain benefits under the law. For example, QFs have the right to sell energy or capacity to a utility, the right to purchase certain services from utilities, and relief from certain regulatory burdens.

Developers may qualify as Exempt Wholesale Generators if they are independent power producers that exclusively sell energy to wholesale customers and complete the self-certification process overseen by the Federal Energy Regulatory Commission (FERC). Obtaining EWG status can exempt the generator from certain reporting and accounting regulations under the Energy Policy Act of 2005 and allows the generator to sell power at market-based rates.

Well Abandonment

A geothermal lessee/operator is required to promptly plug and abandon geothermal wells that are no longer in use or demonstrated to be potentially useful. Title 43 CFR 3263 Well Abandonment. The BLM may verbally order the operator to abandon a well or the operator may request verbal approval from the BLM to plug a well. In either case, the operator must submit a well plugging or abandonment report upon completion. 43 CFR § 3263.11

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