"The Future of Geothermal in Pennsylvania" report, backed by Project InnerSpace in collaboration with Pennsylvania State University and working with 10 contributors from four Pennsylvania institutions, evaluated the potential scale of geothermal energy in the Commonwealth, and found widespread opportunities to use the Earth's natural and abundant subsurface heat for Pennsylvania's residential, commercial, agricultural, manufacturing, and pharmaceutical sectors.
The report also identified hotspots across the Commonwealth that can generate secure and always-on geothermal power.
For more than a century, geothermal energy has proven to be a safe and sustainable source of energy, but it was limited to only a few places on earth.
Recent technological developments by the oil and gas industry now allow us to efficiently and cost-effectively tap into the Earth's heat, making geothermal energy available almost anywhere, including Pennsylvania.
These advances are allowing oil and gas workers to produce geothermal energy, rather than oil and gas, to drive significant bipartisan interest in this home-grown and abundant energy source.
And Pennsylvania is well positioned to take advantage of that potential given its large oil and gas workforce and its status as the nation's second-largest energy-producing state.
"Geothermal energy is a potentially limitless, always-on power source that could provide clean, locally-sourced electricity to millions of Pennsylvania residents and businesses," said Rep. Elizabeth Fiedler, Majority Chair of the House Energy Committee. "A thriving, growing, job-creating economy isn't built on yesterday's technologies. It's built on innovation – on bold investments. Project InnerSpace's report shows that Pennsylvania can lead the way in this next energy revolution."
Geothermal Potential - Recommendations
John Walliser, Senior Vice President, Legal & Government Affairs for the PA Environmental Council, provided this overview of the potential for geothermal energy in Pennsylvania and some recommendations on how to maximize that potential--
The Pennsylvania Environmental Council (PEC) respectfully submits the following comments on advanced geothermal development in Pennsylvania. We would like to thank the House Energy Committee for holding an informational hearing on this opportunity.
As highlighted in the recent Penn State Center for Energy Law and Policy report – The Future of Geothermal Energy in Pennsylvania – we believe there are significant environmental, economic, and energy reliability benefits associated with this emerging technology.
Advanced geothermal can provide zero-emitting, distributed, and even site-adjacent power for a number of uses including heating and cooling buildings, industrial processes, and power generation to some degree.
This can lead to better grid diversification and resiliency, and help offset the need to build larger and higher-emitting sources of power generation which in turn would also necessitate larger-scale transmission buildout.
Advanced geothermal also provides skilled workforce opportunities, including the potential conversion of waning natural gas wells.
The same technology and skills required to reach deep gas reserves can be utilized to tap geothermal heat, meaning that Pennsylvania is well positioned to adapt and benefit from this new energy opportunity.
All that said, we would encourage the Committee to consider the following when contemplating how Pennsylvania should manage this activity.
Primacy For Well Oversight
One option is for the Department of Environmental Protection (Department) to apply for “primacy” (i.e. primary responsibility) from the U.S. Environmental Protection Agency (EPA) for permitting and oversight of advanced geothermal wells in the state.
This would require a thorough process of establishing statutory authority, developing and finalizing regulations, and review and approval of the state’s program from the EPA.
That review will involve confirming that the Department has sufficient legal authority and agency capacity to properly manage its program.
To get this right and meet federal requirements, we recommend the following in any legislation directing the Department to pursue primacy.
Many of these recommendations are informed by legislation passed in the prior session (Act 87 of 2024) that directed the Department to secure primacy for permitting and oversight of carbon dioxide geologic sequestration wells.
PEC supported that legislation as it contained strong directives for the promulgation of regulations necessary to protect the public and the environment, and granted the Department discretion to set management fees and financial assurance measures at levels sufficient to maintain an efficient and robust oversight program.
We believe those same principles should be included in any legislation for advanced geothermal.
This is particularly important given that, unlike carbon sequestration wells, the EPA regulatory category of wells that includes advanced geothermal (generally referred to as “Class V”) is extraordinarily broad and will present a significant management obligation on the Department.
It will also require flexibility in regulatory development given that different types of wells under Class V may require distinctive controls.
Recommendations
1. Grant the Department sufficient authority to establish a comprehensive regulatory program.
Act 87 of 2024 set a broad directive to the Environmental Quality Board (EQB) to promulgate regulations and permitting criteria “necessary to protect the Commonwealth’s natural resources and public health, safety, and welfare.”
In addition, the statute directs the Department to consider cumulative and community impacts in permitting decisions, as well as requiring enhanced public notice, comment opportunity, and site assessment in identified environmental justice communities.
We believe all of these requirements are appropriate for advanced geothermal well permitting.
While we respect the need for efficiency and certainty in permitting, we believe a broader (and thus more flexible) grant of authority will enable the Department to tailor its program as appropriate and allow proper accommodation to the regulated community where warranted: for example, creating a dedicated process for permitting well conversions from oil and gas to geothermal.
It will also allow the Department to more easily adapt those regulations in the years to come.
2. Grant the Department sufficient authority to set permit or management fees necessary to support its program.
Act 87 of 2024 also provided the EQB with discretion for setting permitting and/or management fees for geologic sequestration wells “sufficient to maintain [Department] oversight and enforcement ....”
As we have seen with the oil and gas program, limiting the agency’s support to permit fees creates a situation where the Department is unable to sustain its long-term management responsibilities.
We believe the ability to shift to periodic management fees is more appropriate and can help keep initial permit fees reasonable, thus encouraging project development.
In addition, given the broad scope of Class V well types, an adaptive fee program can help the Department adjust its fees as appropriate depending on the type of well activity proposed.
A stronger management program and staff complement will also assist in more timely permit reviews.
3. Grant the Department sufficient authority to set appropriate financial assurance and well closure requirements.
Akin to the prior recommendation, providing the Department with the flexibility to set adequate bonding or other financial assurance requirements for advanced geothermal wells will be important.
Although regulations help guard against long-term issues, the costs of safely plugging wells when they reach end of life should never fall to the public.
We have learned a hard lesson from Pennsylvania’s orphaned and abandoned well legacy to know that the accumulation of sites and costs can escalate quickly, and that regulations cannot prevent misconduct by operators.
While the well assurance and closure requirements set forth in Act 87 of 2024 are not directly transferable to advanced geothermal (since Act 87 deals with permanent underground storage), it sets the right intention that:
(1) the Department should have the flexibility to set and promptly adjust financial assurance amounts as necessary; and
(2) criteria must be established and required for well project closure before project operators are legally released from obligation.
PEC is excited about the benefits and opportunities presented by advanced geothermal.
The recommendations above are meant to frame the steps to help ensure its long-term success for Pennsylvania.
We also wish to express our support for the Governor’s Lightning Plan package and accompanying legislation, which includes measures to support advanced geothermal – most notably House Bill 501 (P.N. 1478). Other legislation in that package, including House Bill 504 (P.N. 1481), could be amended to add advanced geothermal as well.
Again, we thank you for holding this hearing and for considering our comments.
Click Here for the full written testimony.
Geothermal Potential - Oversight
Kurt Klapkowski, DEP Deputy Secretary for Oil and Gas Management, provided a description of geothermal energy uses, technologies and an outline of potential oversight responsibilities.
“The Department is considering applying for Class V primacy along with Classes II and VI.
“...These wells are already regulated by Pennsylvania under various authorities, including the Oil and Gas Act, the Clean Streams Law, and the Carbon Capture and Sequestration Act.
“Regulation of deeper geothermal wells by the Department makes sense from both the administrative and environmental protection perspectives.
“Administratively, having two government agencies conduct separate permit reviews for the same activity delays projects significantly and unnecessarily.
“From the protection perspective, the Department already conducts significant oversight of the various subsurface activities, including drinking water supplies, underground coal and non-coal mineral mining, underground natural gas storage facilities and oil and natural gas exploration and production.
“The statutes listed above, and their accompanying regulations provide the Department with authority to issue permits, conduct oversight and compliance inspections, develop regulations and conduct meaningful enforcement, including administrative orders, civil penalties, permit denial and criminal referral.”
Klapkowski said, “The Oil and Gas Program submitted a grant application to the [US] Department of Energy in the Fall of 2024 for an EGS [Enhanced Geothermal Systems] Pilot Demonstration.
“The EGS Pilot test proposes to generate electrical power and thermal energy for rural communities adjacent to legacy and current oil and gas development.
“The project plans to transfer heat from the subsurface strata to the surface, via gas/fluids in an EGS system where its thermal energy will generate electricity for the local grid and provide thermal energy for nearby homes and businesses.
“The project uses existing oil and gas facilities so there is no additional land use for the renewable energy generation facilities.
“Even after the oil and gas from a well runs out, the cyclic injection and production of hot water for geothermal energy production is planned to go on indefinitely.”
“The Department is the project lead in coordination with the Department of Conservation and Natural Resources Bureau of Topographical and Geological Survey.
“Backing those co-leads is a world-class team including Gradient Geothermal Inc, the experts in distributed geothermal deployments in oilfield settings, Teverra, Inc., a preeminent geothermal consultancy, Lehigh University, Idaho National Labs, CNX Green Ventures, a premier Appalachian oil and gas producer, and Seequent, a geothermal software provider.”
DEP made these recommendations --
-- Define legal ownership and usage rights of geothermal energy, especially around abandoned wells.
-- Streamline permitting processes for converting gas/oil wells into geothermal assets.
-- Offer liability protections to developers retrofitting orphaned wells.
-- Provide support in the Department’s UIC primacy efforts
-- Establish state-level grants or low-interest loans for geothermal heating projects.
-- Consider offering tax credits or rebates for industrial, commercial, or residential geothermal conversions.
-- Fund pilot pilot programs to demonstrate feasibility (e.g., school heating via repurposed wells).
Click Here for a copy of the written testimony.
Video Of Hearing
Click Here to watch a video of the hearing.
Written Testimony
-- Trent McFadyen, InnerSpace Action
-- Seth Blumsack, Director of Penn State Center For Energy Law & Policy
-- Kurt Klapkowski, DEP Deputy Secretary for Oil & Gas Management
-- John Walliser, PA Environmental Council
-- Johanna Ostrum, Gradient Geothermal
-- Robert S. Blair, PA Building & Construction Trades Council
-- Wayne Barnett, Cordia Energy
Rep. Elizabeth Fiedler (D-Philadelphia) serves as Majority Chair of the House Energy Committee and can be contacted by calling 215-271-9190 or click here to contact. Rep. Martin Causer (R-Cameron) serves as Minority Chair and can be contacted by calling 717-787-5075 or by sending email to: mcauser@pahousegop.com.
Resource Link:
-- Penn State, Project InnerSpace Report: Leverage Oil & Gas Workers To Generate Enough Geothermal Energy To Meet 100% Of Pennsylvania's Electricity, Heating, Medium Industrial Process Needs [PaEN]
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[Posted: May 7, 2025] PA Environment Digest
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