Senate committee backs geothermal bill clarifying surface owner geothermal rights

The Senate Natural Resources committee adopted a second substitute to SB 21 and voted to favorably recommend the bill to the full Senate.

Sponsor presentations explained the measure would move Utah law toward recognizing that surface owners generally own geothermal resources under their land unless they are reserved, while preserving rights for SITLA (School and Institutional Trust Lands Administration). The sponsor said the bill aims to create clearer, more predictable rules to encourage geothermal investment while providing limited industry protections such as temporary site exclusivity during testing.

Several stakeholders testified in support with caveats. Terry Camp, vice president for public policy at the Utah Farm Bureau Federation, said the substitute "respects private property rights and creates opportunity for new energy investment." Mike Johnson, general counsel for SITLA, said the measure carries forward a century-old practice reserving subsurface values for the trust and will make it easier for industry to lease and develop geothermal resources on trust lands.

Industry representatives including Grama Harmony of Zanskar Geothermal and minerals expressed support for the bill’s policy direction but asked for continued negotiation on the grandfathering language to protect existing leases. Kim Christie, director of the trust beneficiaries' protection office, said the second substitute and collaboration with the state engineer produced language the office views positively.

The committee adopted the substitute by voice vote and later passed a motion to favorably recommend the second substitute to the full Senate. Committee discussion noted a commitment to work with stakeholders on the grandfathering provisions and to balance property rights with permitting certainty.

What happens next: SB 21, as passed out of committee, will proceed to the full Senate for further consideration.