Geothermal energy is heating up in Colorado—literally and politically. House Bill 1165, designed to clean up regulatory language and make geothermal development easier, is moving forward, but not without pushback from a unique demographic. Hot springs operators, who have long depended on the state’s underground thermal resources, are raising concerns that looser regulations could threaten their water supply.

The bill also sets up a fund for underground carbon storage and aims to clarify how geothermal resources are managed. But for those running Colorado’s historic hot springs, the worry is: if developers get easier access to drilling permits, what’s stopping them from tapping into the same aquifers that keep their pools flowing?

Several hot springs owners, including Steve Beckley of Iron Mountain Hot Springs and Kevin Flohr of Glenwood Hot Springs, have spoken out against the bill in its current form. Their primary concern is that developers could tap into the same aquifers that feed their mineral pools, potentially disrupting or depleting their water sources.

Under the proposed legislation, hot springs and geothermal operators must be notified if a developer applies for a permit within one mile of an existing site. However, some industry leaders argue that this safeguard is not enough, given the complexity of underground water flow and the lack of detailed mapping in many areas.

Mount Princeton Hot Springs General Manager Thomas Warren highlighted the economic and historical significance of hot springs in Colorado, urging lawmakers to ensure protections are in place before advancing the bill.

Colorado has been aggressively pursuing geothermal energy as part of its renewable energy strategy. Governor Jared Polis has championed the industry, promoting it as a cost-effective and environmentally friendly alternative to other energy sources. The state has already established grant programs and investment tax credits to accelerate geothermal development, and HB 1165 is another step toward making permitting more efficient.

Supporters argue that a clearer regulatory framework will help unlock geothermal’s full potential, reducing reliance on fossil fuels and creating economic opportunities. However, opponents caution that rushing to expand geothermal without fully considering the consequences could put existing industries—like hot springs tourism—at risk.

One of the bill’s sponsors, Rep. Matt Soper, has acknowledged the concerns raised by the hot springs industry and assured stakeholders that additional safeguards will be considered. During a recent committee hearing, he admitted that discussions were ongoing and that a final compromise had not yet been reached.

With strong interest from both renewable energy advocates and long-standing businesses, the debate over HB 1165 underscores a broader challenge: how to balance economic growth, environmental stewardship, and the interests of diverse industries that rely on Colorado’s natural resources.