CLEAN Act

The CLEAN Act (HR1687) has progressed significantly, having been reported out of the House Committee on Natural Resources on April 21, 2026, and is now awaiting floor action. This bill aims to amend the Geothermal Steam Act of 1970 by requiring annual geothermal lease sales and mandating replacement sales if original sales are canceled or delayed. Furthermore, it sets strict 30-day deadlines for the Secretary of the Interior to issue decisions on geothermal drilling permit applications once deemed complete. This legislation does not specify direct funding amounts but focuses on regulatory efficiency and increased access to resources. The money trail for this bill is indirect. Instead of direct appropriations, the CLEAN Act creates a more attractive investment environment for private capital in the geothermal sector. By reducing the time and uncertainty associated with obtaining leases and permits, it lowers the regulatory risk and potentially the cost of capital for geothermal projects. Companies like Ormat Technologies ($ORGN), which are pure-play geothermal developers and operators, stand to benefit directly from these streamlined processes, as their project pipelines can accelerate, leading to faster revenue generation. GE Vernova ($GE), a key supplier of power generation equipment, including steam turbines for geothermal plants, would also see an expanded market for its products. Structurally, the winners are companies with established geothermal development capabilities and those supplying critical equipment to the sector. The increased frequency of lease sales and expedited permit approvals directly address two major bottlenecks in geothermal project development: land access and regulatory timelines. The recent Presidential Memoranda on April 20, 2026, particularly those on 'Development, Manufacturing, and Deployment of Large-Scale Energy and Energy-Related Infrastructure' and 'Grid Infrastructure, Equipment, and Supply Chain Capacity,' amplify the potential impact of the CLEAN Act. These executive actions, by invoking the Defense Production Act, signal a strong federal commitment to accelerating domestic energy and infrastructure projects, which would further bolster the market for geothermal development once the regulatory hurdles are reduced by the CLEAN Act. Legislative momentum for HR1687 is strong, evidenced by its recent committee markup and unanimous consent to be reported. The bill's sponsor, Rep. Fulcher, and its cosponsors indicate bipartisan interest in promoting geothermal energy. The next step is a vote on the House floor. If passed by the House, it would then move to the Senate for consideration.