NMSLO News:
SANTA FE — New Mexico Land Commissioner Stephanie Garcia Richard announced today a new geothermal leasing rule to align with recent legislative changes and to pave the way for growth of clean, baseload geothermal energy on state trust lands. Demand for geothermal energy is growing rapidly and the updated rule will allow for an increase in leasing. The final rule is effective May 1, 2026.
“Our new geothermal rule is going to open up a whole new world for clean, 24-7-365 energy development on state lands,” Commissioner Garcia Richard said. “New Mexico has all the right conditions to become a national leader in geothermal production with parts of the state having the ideal geology for this type of development, and the skills necessary for geothermal jobs are similar to the skills necessary to work in the oil and gas fields. This effort paves the way for new employment opportunities and will help diversify New Mexico’s energy portfolio and economy for decades to come. We need clean energy options as climate change continues to threaten our daily lives, and modernizing geothermal leasing gives New Mexico one more tool in the toolkit.”
The State Land Office held a public hearing on Tuesday, September 30, 2025 to gather feedback and public comments on the proposed rule.
The final rule is available on the State Land Office’s website here.
The previous geothermal rule was originally implemented in 1984. There are currently two leases for geothermal production on state trust lands, both issued in 1986. The updated rule will allow for larger projects to be developed on state lands that create local jobs.
Since coming into office in 2019, Commissioner Garcia Richard has prioritized providing opportunities to develop clean energy on state lands. Since she established an Office of Renewable Energy within the State Land Office in 2019, the agency has experienced an eightfold increase in the amount of renewable energy produced on state lands and is earning record revenue. The updated geothermal rule will create even more earnings to support New Mexico’s public schools, universities, and hospitals.