Closed Loop Geothermal Boreholes Deeper Than 500 Feet

Closed Loop Geothermal Boreholes Deeper Than 500 Feet

In February 2024, Governor Hochul signed legislation (S.8060/A.8565)directing DEC to promulgate regulations specific to closed loop geothermal boreholes drilled deeper than 500 feet.

Closed loop geothermal boreholes are an integral part of geothermal energy systems called ground source heat pump (GSHP) systems. Closed loop geothermal boreholes are drilled for the purpose of facilitating geothermal heating and cooling by circulating heat transfer fluid through a loop, tube, coil, or multiple loops of piping that are fully grouted in place from total depth to the surface across the entire diameter of the borehole. Closed loop boreholes use non-contact thermal energy from the transfer fluid in the loop and do not involve the withdrawal or injection of groundwater.

Rule Making Process

The Division of Mineral Resources (DMN) has begun the process of drafting regulations for closed loop geothermal boreholes and closed loop stratigraphic test wells drilled deeper than 500 feet.  An Advanced Notice of Proposed Rule Making (ANPRM) has been made available to encourage discussion and solicit stakeholder and public input on the requirements DMN is considering. DMN has also posted several documents to provide additional context and clarity about important aspects of the ANPRM. Both the ANPRM and the supplemental documents are available on the Mineral Resources Regulatory Revisions web page, linked below. 

Generic Environmental Impact Statement

In 1992, DMN released a Generic Environmental Impact Statement on the Oil, Gas and Solution mining Regulatory Program (1992 GEIS) to comprehensively review DEC’s program for regulating oil, gas, underground gas storage and solution mining wells of any depth, and brine disposal, stratigraphic and geothermal wells deeper than 500 feet. The 1992 GEIS, however, does not address widespread development of geothermal projects in New York and defines a project as a single well which does not take into consideration multi-well closed loop geothermal fields. In addition, the 1992 GEIS relies on the regulations at 6 NYCRR Parts 550-559, which will no longer apply to closed loop geothermal and closed loop stratigraphic test wells, aside from 6 NYCRR Part 550, as a result of recent legislation and the rule making process described above.

In order to address these issues and maximize future permitting efficiency, a new GEIS specific to closed loop geothermal boreholes and closed loop stratigraphic wells drilled deeper than 500 feet will be written to properly evaluate the potential environmental impacts associated with the drilling, operation, and decommissioning of these closed loop boreholes. The first step in this process is the development of a draft scope, which outlines the topics that will be evaluated in the GEIS. 

The public input and comment period ran from July 23, 2025 to August 22, 2025 and DEC is currently reviewing the comments received. Public information meetings were held virtually on July 29 and July 31 to solicit feedback. Recordings of the public information meetings are available on the Mineral Resources Regulatory Revisions webpage.