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Committee advances geothermal bill clarifying surface and subsurface rights; vote 2–1

Senate Natural Resources, Agriculture and Environment Standing Committee · February 4, 2026

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Summary

The committee voted to favorably recommend second substitute Senate Bill 21, which clarifies geothermal rights (including protections for SITLA), creates a reservation/grandfathering process and aims to speed permitting. The measure passed the committee 2 to 1 after stakeholder discussion and limited public comment.

The Senate Natural Resources committee voted to favorably recommend second substitute Senate Bill 21, which sets state policy on geothermal rights and permitting. Sponsor Senator McHale described the bill as aligning surface ownership with geothermal resource rights in many cases and providing protections and predictability for industry and landowners.

Supporters emphasized property‑rights clarity and economic opportunity. Terry Kemp of the Utah Farm Bureau Federation said the bill "respects private property rights and creates opportunity for new energy investment that can benefit rural communities and agriculture." Mike Johnson, general counsel for SITLA, said the substitute carries forward century‑old policy reserving subsurface values to the school trust and noted SITLA’s active leasing program.

Industry and local officials urged continued negotiation on grandfathering language to protect existing leases. Sam Harmony (Zanskar Geothermal) raised concerns about whether the reservation/grandfather clause would adequately protect existing leases, and the sponsor committed to continue stakeholder conversations. Beaver County Commissioner Brandon Yardley supported the bill as clarifying development and permitting for local geothermal projects.

Committee members adopted the substitute language and later voted 2 to 1 to favorably recommend the second substitute to the full Senate. The committee record shows the motion passed and the bill will proceed to the Senate with that recommendation.