Legislative Action on Geothermal Operations in Nevada
Nevada lawmakers are currently working to revive a significant piece of legislation centered around the state’s geothermal operations and their impact on groundwater. This legislative initiative aims to enforce stricter permitting requirements for certain industrial groundwater users, particularly those involved in geothermal extraction.
Current Framework and Challenges
Under existing Nevada law, while farmers and hard-rock mining companies must secure permits to pump groundwater, some industrial users are exempt. This exemption applies to industries that are deemed to engage in “non-consumptive” usage—specifically, those that reinject water back into the ground after extraction. This provision has raised concerns about potential overuse and mismanagement of groundwater resources, particularly in a state where water is already a scarce commodity.
Assembly Bill 109
Assembly Bill 109, introduced by Assemblymember Selena LaRue Hatch, seeks to close this regulatory loophole. It would require all industrial groundwater users, including geothermal operations, to undergo the same permitting scrutiny as other industries that pump groundwater. The objective is to ensure that the environmental impacts of geothermal operations are adequately assessed during the permitting process.
This bill holds particular significance for Nevada’s geothermal sector, which involves substantial quantities of groundwater being extracted before being reinjected. Some emerging lithium mining techniques, similar in nature, also fall under this exemption and face scrutiny as a result.
Support and Opposition
Despite its introduction during the 2025 legislative session, the bill did not receive a hearing, although it garnered support from various stakeholders, including rural water users and several tribal entities. Notable backers include the Central Nevada Regional Water Authority and the Humboldt River Basin Water Authority, as well as the Fallon Paiute Shoshone Tribe and the Pyramid Lake Paiute Tribe. These groups view the bill as a necessary measure to ensure that all industrial groundwater pumpers engage in a standardized permitting process—a move they argue will not jeopardize any industry but rather enhance accountability.
However, the geothermal sector has voiced strong opposition to the bill. Industry representatives worry that such changes could hinder Nevada’s leadership in geothermal energy, complicating project timelines and increasing costs. Vanessa Robertson, director of policy and education for Geothermal Rising, warned that adding layers of permits could drive development to other states.
Concerns Over Groundwater Interactions
Critics of the current exemption also argue that geothermal operations could influence surrounding aquifers. Steven Hammerman, a mining consultant, cautioned against assuming that reinjection is always effective. He noted that improper levels of reinjection could lead to harmful changes in underground pressure, potentially causing long-term damage to aquifers.
Brian Libby, chief geologist with Ormat, clarified during discussions that geothermal fluids extracted are distinct from drinking water sourced from aquifers, as these fluids come from isolated geological layers. He emphasized that geothermal developers meticulously avoid interacting with aquifers during their operations.
Statewide Implications of Groundwater Management
Given that Nevada is the driest state in the U.S., groundwater is crucial for numerous sectors, including municipalities, agriculture, and tribal communities. Around half of the state’s counties rely on groundwater for more than 80% of their water supply, placing immense strain on this critical resource. Moreover, the Nevada Division of Water Resources estimates that about 20% of the groundwater basins are being over-pumped.
This context further emphasizes the importance of Assembly Bill 109. According to LaRue Hatch, the legislation aims to ensure greater oversight of groundwater availability and use, thereby protecting both existing water rights holders and the integrity of Nevada’s water resources.
Future Interests and Exploration
Interest in geothermal exploration continues to rise in Nevada. Last year alone, 95 geothermal wells were permitted—the highest number in a single year since 2010. The state ranks second in the nation for geothermal electricity generation, producing approximately 26% of the total geothermal energy in the U.S. Recent initiatives by the Bureau of Land Management (BLM) to lease vast tracts of land for geothermal use further illustrate the state’s commitment to expanding this resource.
Clarifying the Permitting Process
LaRue Hatch underscored that the existing permitting process for the majority of water users, including industries such as hard rock mining and hydropower, will remain unchanged. The goal of the bill is not to create severe disruption but to protect what is regarded as the “gold standard” of water law in the West, ensuring equitable application across different industries.
Geothermal operations have historically been one of the few exceptions to this rigorous permitting requirement. The proposed legislation mirrors other non-consumptive water uses—like hydropower—which have adhered to permitting standards for over a century.
In conclusion, Assembly Bill 109 stands as a pivotal piece of legislation that seeks to harmonize groundwater management practices within Nevada’s evolving industrial landscape, ensuring both environmental protection and the sustainability of vital water resources.