The systems in question rely on mixture of heat from the Earth and sun to power a wide range of residential and business activities.
The measure, Assembly Bill 2339, was unanimously endorsed by both houses of the state legislature last summer.
The new law requires the California Energy Commission, in consultation with the state's Air Resources Board and Public Utilities Commission, as well as cities, towns and other stakeholders, to recommend policies to overcome barriers to adoption of geothermal systems.
The Commission is also required to study the quantitative benefits for ratepayers to be derived by deploying geothermal power. All of these activities are expected to be in the agency's Integrated Energy Policy Report next year.
California is the third state to pass such legislation. The other two states are Maryland and New Hampshire.
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