HB 676: Geothermal Water & Municipal Water Rights (2026)
Summary: Clarifies that municipally operated, low-temperature geothermal heating and cooling systems qualify as a municipal water use—allowing cities to plan for future geothermal needs while requiring reinjection to protect aquifers and maintaining safeguards for other water users.
ICL’s Position: Support
Current Bill Status: Committee - House Resources & Conservation
Issue Areas: Water, Geothermal Heating and Cooling
HB 676, introduced by Rep. James Petzke (R-District 21), modernizes Idaho water law to better accommodate municipal geothermal heating and cooling systems while preserving core water-right protections.
The bill clarifies that low-temperature geothermal heating and cooling systems operated by municipalities qualify as a “municipal purpose,” provided the use is non-consumptive under normal operations and the diverted water is reinjected into the same aquifer. By requiring reinjection, the bill promotes closed-loop systems that minimize aquifer depletion and protect groundwater resources.
HB 676 also strengthens the framework allowing municipal providers to hold water rights for reasonably anticipated future needs. Cities must document planning horizons, service areas, and projected demand, and geothermal systems must demonstrate how reinjection will occur. Importantly, water held for future municipal needs cannot be transferred outside the provider’s service area or converted to unrelated uses, preventing speculative transfers.
ICL supports HB 676 because it encourages energy-efficient, low-carbon geothermal heating systems while maintaining environmental safeguards. Reinjection requirements reduce groundwater impacts, and the bill preserves existing protections against injury to other water users and harm to local agricultural economies. By clarifying planning standards and modernizing definitions, HB 676 promotes responsible water management and climate-friendly infrastructure without weakening Idaho’s prior appropriation framework.
