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HR 5587119th CongressIn Committee

HEATS Act

Introduced: Sep 26, 2025
Sponsor: Rep. Kim, Young [R-CA-40] (R-California)
Environment & Climate
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Harnessing Energy At Thermal Sources Act (HEATS Act) would amend the Geothermal Steam Act of 1970 to allow geothermal exploration and production on non-Federal surface land without a Federal drilling permit, under specific conditions. Specifically, if the United States owns less than 50 percent of the subsurface geothermal estate and the operator submits a State permit, the federal government would not require a drilling permit. The activities would be exempt from major Federal actions under NEPA, would require no additional Federal action, could begin 30 days after state permit submission, and would largely avoid Endangered Species Act Section 7 review. NHPA considerations would apply only if the State lacks a law addressing historic properties. Royalties would remain due to the United States, and the Secretary could perform onsite reviews to ensure accountability. Indian lands are expressly excluded from these provisions. In short, the bill would shift permitting and certain environmental reviews for many geothermal projects from the federal level to state oversight on non-Federal surface lands, while preserving royalties and certain federal review mechanisms.

Key Points

  • 1No federal drilling permit required for geothermal activities on non-Federal surface land if:
  • 2- The U.S. owns less than 50% of the subsurface geothermal estate, and
  • 3- The operator submits a State geothermal permit.
  • 4For these activities:
  • 5- They are not considered major Federal actions under NEPA and do not require additional Federal action.
  • 6- Projects may commence 30 days after the State permit is submitted to the Secretary.
  • 7- They are not subject to Endangered Species Act Section 7 review (ESA).
  • 8- NHPA (historic preservation) review applies only if the state lacks a law addressing preservation of historic properties.
  • 9Royalties and production accountability:
  • 10- Royalties owed to the United States remain unchanged.
  • 11- The Secretary may conduct on-site reviews and inspections to ensure proper accountability and reporting.
  • 12Exclusions and definitions:
  • 13- Does not apply to actions on Indian lands or lands managed in trust for Indian Tribes.
  • 14- Defines “Indian land” to include lands within Indian reservations, pueblos, rancherias, or land held in trust or under restricted ownership by Indians or tribes, and certain dependent communities.

Impact Areas

Primary:- Geothermal operators working on non-Federal surface land where US subsurface ownership is under 50%.- State regulatory agencies taking lead on permitting and oversight.- Federal royalty collection and records-keeping responsibilities maintained by the Interior Department.Secondary:- Environmental review framework shifts away from NEPA processes for qualifying projects; potential changes to how environmental and cultural resources are evaluated at the federal level.- Tribal and Indian lands remain under existing protections and federal oversight; excluded from these provisions.- Potential effects on project timelines and permitting burdens due to state-led processes plus a 30-day Federal decision window.Additional impacts:- Coordination between state authorities and the federal government may change, with increased state discretion in permitting geothermal development.- Variability in state laws could influence how historic preservation and environmental considerations are addressed, depending on whether a state has adequate statutes in place.- Overall effect on energy development pace, investment, and regional energy supply from geothermal resources.
Generated by gpt-5-nano on Oct 8, 2025