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Bill

S 4975

HEATS Act

119th Congress Introduced by Steve Daines and 2 co-sponsors

Allows non-Federal surface geothermal exploration/production with a State permit, no Federal drilling permit, and no NEPA/ESA for qualifying activities, while preserving royalties.

Committee on Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining. Hearings held.
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Bill Summary · S 4975

Summary of Bill: Harnessing Energy At Thermal Sources Act (HEATS Act)

Purpose and intent

  • The HEATS Act seeks to streamline geothermal exploration and production by reducing federal permitting requirements for certain activities on non-Federal land. It aims to accelerate development of geothermal resources while maintaining royalty collection and basic oversight.

Key provisions and changes

  • No Federal permit requirement for certain geothermal activities (amendment to the Geothermal Steam Act of 1970):
    • A geothermal operator is not required to obtain a Federal drilling permit for exploration and production conducted on a non-Federal surface estate, provided:
    • The U.S. owns less than 50% of the subsurface geothermal estate to be accessed by the action; and
    • The operator submits a State permit to conduct the geothermal exploration/production on the non-Federal surface estate.
  • Federal action and NEPA implications:
    • The geothermal activity under this provision is not considered a major Federal action under NEPA (42 U.S.C. § 4332(2)(C)).
    • No additional Federal action would be required.
    • The activity may commence 30 days after the State permit is submitted to the Secretary.
    • The activity would not be subject to Section 7 of the Endangered Species Act.
    • It would only be considered an undertaking under the National Historic Preservation Act (NHPA) if the State has no in-force State historic preservation law addressing such properties.
  • Royalties and production accountability:
    • The change does not alter royalty requirements for electricity production using geothermal resources (excluding direct-use of geothermal resources) or for any byproducts.
    • The Secretary may conduct onsite reviews and inspections to ensure proper accountability, measurement, reporting, and royalty payments.
  • Limitations and exclusions:
    • The facilitation does not apply to actions on Indian lands or resources managed in trust for Indian Tribes.
    • Definitions include “Indian land” to cover lands within reservations, pueblos, rancherias, and certain lands held in trust or under restricted ownership for Indian tribes or individuals.

Who is affected

  • Geothermal developers/operators conducting exploration and production on non-Federal surface estates where the United States owns less than 50% of the subsurface geothermal estate.
  • State regulators and permitting agencies issuing the required State permits (as a prerequisite to federal non-permit exploration/production).
  • Federal government (Department of the Interior), which would no longer require Federal drilling permits or certain Federal actions under the specified conditions, while retaining royalty oversight.
  • Indian lands/tribal interests are expressly excluded from the scope of these changes; activities on Indian lands remain subject to existing Federal permitting and trust responsibilities.

Procedural and timeline aspects

  • Commencement timing: Activities may begin 30 days after the State permit is submitted to the Secretary.
  • Environmental and historic preservation provisions: NEPA major federal action designation removed for qualifying activities; Endangered Species Act section 7 not triggered; NHPA considerations depend on State preservation laws.
  • Oversight: The Secretary retains authority to conduct onsite inspections for royalty accountability and production reporting.

Notable sponsor and actions

  • Bills introduced in Senate with cosponsors Steve Daines, Mike Lee, and John Hoeven.
  • Recent actions include introduction and referrals to the Senate Committee on Energy and Natural Resources, with hearings held by the Subcommittee on Public Lands, Forests, and Mining in July 2026.

Potential implications

  • Efficiency and cost implications: Potentially faster permitting timelines for non-Federal land geothermal projects, reducing Federal-level procedural delays.
  • Environmental and cultural safeguards: Reduction in Federal NEPA and ESA processes for qualifying activities may raise concerns among critics about environmental and species protections, though NHPA considerations remain applicable if State laws are lacking.
  • Revenue integrity: Royalty and production accountability are preserved via Secretary oversight and on-site reviews.
  • Equity considerations: Excludes Indian lands from the provision, maintaining existing Federal-tribal arrangements.

If you’d like, I can provide a side-by-side comparison with current law or draft a one-page briefing for stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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