California Environmental Quality Act: geothermal exploratory projects: geothermal technology pilot projects: Geologic Energy Management Division.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if the lead agency finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation. Existing law requires the division to be the lead agency for all geothermal exploratory projects for purposes of CEQA, except as provided. Existing law defines "geothermal exploratory project," for purposes of CEQA, in part as a project composed of not more than 6 wells and associated drilling and testing equipment whose chief and original purpose is to evaluate the presence and characteristics of geothermal resources.

Existing law requires wells included within a geothermal exploratory project to be located at least 12 mile from geothermal development wells that are capable of producing geothermal resources in commercial quantities.

This bill would expressly include as part of a geothermal exploratory project, among other things, equipment and activities necessary to establish interconnectivity between wells and reservoirs. The bill would specify that the above-described<caml:Numerator>1</caml:Numerator><caml:Denominator>2</caml:Denominator></caml:Fraction> mile"?>12–mile limit is measured from all points along the wellhead location and well course.

This bill would define, for the purposes of CEQA, "geothermal technology pilot project." The bill would require the division to be the lead agency for all geothermal technology pilot projects, except as provided.

Existing law requires the owner or operator of any well, before commencing the original drilling of a well or the redrilling of an abandoned well, to file with the State Oil and Gas Supervisor or the district deputy a written notice of intention to commence drilling, accompanied by a prescribed fee. A violation of the geothermal resources laws is a crime.

This bill would require, before commencing the drilling, deepening, or redrilling of a well that is part of a geothermal technology pilot project, the owner or operator of that well to file with the supervisor a written notice of intention to commence drilling pursuant to the above-described provision. The bill would require, if a notice of intention is submitted for a well that is part of a geothermal technology pilot project and the well is located within 12 mile of an existing geothermal well capable of producing in commercial quantities, the notice of intent to include a written consent agreement that meets specific requirements, as provided. Because a violation of these requirements would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.