Baseload blind spot? Senate should unleash 24/7, clean energy workhorses

When asked about the current version of “The One Big Beautiful Bill,” which recently passed the U.S. House and advanced to the U.S. Senate, President Trump replied, “We will be negotiating that bill, and I’m not happy about certain aspects of it.”

He's not the only one.

As representatives of the nation’s geothermal and hydropower industries, we are deeply concerned that two of the country’s most important baseload energy resources continue to be overlooked in federal energy legislation. This is especially troubling at a time when the nation is urgently seeking clean, reliable and domestically sourced energy solutions.

The timing couldn't be worse. Forty percent of the non-federal hydropower fleet is currently up for relicensing and at risk of voluntary license surrender (451 facilities; 15,700 MW) Hydropower is one of America’s oldest sources of domestic, renewable power, with facilities in 48 states providing 24/7 reliable, affordable electricity to an estimated 25 million Americans. It also provides a disproportionate share of essential grid services such as “black start,” which is the ability to quickly restart the energy grid when it goes offline.

Geothermal energy is at an inflection point. It is no longer a niche solution — it is an emerging pillar of American energy resilience. There are geothermal heating and cooling systems in all 50 states and 93 geothermal power plants generating over 3,700 MW. Breakthrough technologies are dramatically expanding where geothermal can be deployed — potentially tapping into more than 5,000 GW of heat energy beneath U.S. soil. Next-generation systems are already being piloted in Nevada, Utah, Texas and California.

Importantly, geothermal is a multi-use energy asset: it can provide 24/7 clean electricity, thermal energy for heating and cooling, is immune to fuel supply shocks, provides decentralized energy close to load centers, reduces foreign energy dependence, enhances grid security and 100% of the resource supply chain is local.

Geothermal can also contribute to domestic critical mineral production (e.g., lithium from geothermal brines) and use the workforce expertise and infrastructure from the oil and gas industry. These attributes make geothermal not only a climate solution but a pillar of American energy dominance and strategic resilience.

Both hydropower and geothermal are named in President Trump’s executive orders on Energy Dominance and National Security, yet both were harmed (perhaps inadvertently) in the House’s version of the current budget bill. This oversight is especially troubling given their baseload capabilities, emissions-free profiles and unique roles in supporting grid resilience during extreme weather and cyber threats.

As it stands, the House bill inflicts several critical blows. It overlooks the multi-year permitting and construction timelines required for geothermal and hydropower development. It restricts access to vital tax incentives through short timing windows, directly impeding projects under design and development. It also ignores the urgent need for dam safety upgrades and geothermal demonstration projects that would unlock billions in private capital.

The bill also abruptly repeals the transferability of these credits, a crucial financing mechanism that allows innovative American companies to attract private capital and do business with each other to deploy these domestic energy resources. Compounding these challenges, newly introduced Foreign Entities of Concern (FEOC) provisions, while well-intentioned, are drafted in a way that could impose counterproductive burdens on American industry, potentially disqualifying many U.S. projects from accessing these “America First” tax credits and constraining the very baseload power the president has called for.

The Senate has a chance to correct course with smart, bipartisan reforms:

1. Replace the "placed in service" deadline for hydropower and geothermal tax credits with a "commence construction" standard, maintaining the existing 2032-35 phase-out timeframe. This change supports projects already in motion and ensures that clean, reliable power reaches the grid faster.
2. Reinstate the transferability of the tax credits and refine the newly introduced FEOC provisions to appropriately balance national security with the practical needs of these uniquely American industries, preventing unintended obstacles to domestic deployment.
3. Incorporate S.1183, the Maintain and Enhance Hydropower and River Restoration bill, into the reconciliation package to encourage vital dam safety and environmental upgrades at existing hydropower facilities. With broad support and a modest Joint Tax Committee score, this bill will help these “forever assets” remain strong, safe and reliable for generations to come.

President Trump has already acted to cut red tape for energy infrastructure. On May 23, he issued executive orders to streamline nuclear development and regulatory review — policies that should be extended to hydropower and geothermal as well.

As domestic, non-intermittent power sources, geothermal and hydropower fill critical gaps when other resources falter. They boost grid reliability, reduce the need for expensive storage and backup, and enhance national security by lowering dependence on foreign energy sources.

If Congress wants to realize President Trump’s vision for American energy dominance, it must prioritize these two workhorse technologies. Hydropower and geothermal may not dominate headlines, but they quietly power our economy, strengthen our grid and position the U.S. as a leader in the race for AI dominance and industrial revitalization.

Investing in these technologies isn’t just good policy — it’s a strategic imperative. The U.S. Senate should seize this opportunity to value geothermal and hydropower appropriately and secure a stronger, more resilient and more dominant energy future.