Technical corrections only. The diff adds the name of the Clerk of the House to the attestation at the end of the bill. No substantive policy changes were made between v3 and v4.
HEATS Act
- Sponsor
- Rep. Kim, Young [R-CA-40]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Jul 15, 2026
Bottom line
The bill streamlines federal permitting and environmental review for certain geothermal energy projects by shifting regulatory authority to states, aiming to accelerate renewable energy development.
What it actually does
This bill amends the Geothermal Steam Act of 1970 to waive federal drilling permit requirements for geothermal exploration and production activities on non-Federal surface estates, provided the United States holds less than 50% ownership of the subsurface geothermal estate and a State permit is obtained. It also exempts these activities from the National Environmental Policy Act (NEPA) and Section 7 of the Endangered Species Act, and conditionally from the National Historic Preservation Act, while preserving federal royalty collection.
Proponents argue
Proponents argue this bill will significantly reduce bureaucratic hurdles and delays for geothermal energy projects, making it faster and more cost-effective to develop clean, renewable energy. They believe it will boost domestic energy production, create jobs, and contribute to energy independence by leveraging existing state regulatory frameworks and eliminating duplicative federal oversight.
Opponents contend
Opponents contend that by waiving federal environmental reviews under NEPA and the Endangered Species Act, and limiting historic preservation reviews, the bill risks significant environmental damage and harm to sensitive ecosystems and cultural sites. They argue it delegates too much authority to potentially less stringent state regulations, undermining crucial federal protections for public lands and resources.
The bill is very short and straightforward, allowing for quick comprehension of its core provisions and their implications.
Section 2, adding new Section 30(a) to the Geothermal Steam Act of 1970
Waiver of Federal Drilling Permit Requirement
This provision states that the Secretary of the Interior cannot require a federal drilling permit for geothermal exploration and production activities if they occur on a non-Federal surface estate, the U.S. owns less than 50% of the subsurface geothermal estate, and the operator has a valid state permit. This effectively transfers the primary permitting authority for these specific projects from federal to state agencies.
Supporters argue
Supporters argue this streamlines the permitting process, removing duplicative federal oversight where states already have robust permitting systems, thereby accelerating geothermal development and reducing project costs.
Critics contend
Critics might argue that even with state permits, federal oversight is crucial to ensure consistent environmental standards across different jurisdictions, especially when federal subsurface interests are involved, and to prevent a 'race to the bottom' in regulatory stringency.
Tradeoffs
This provision balances the desire for expedited renewable energy development against the potential for reduced federal environmental and resource management oversight.
Section 2, adding new Section 30(b)(1) and (4) to the Geothermal Steam Act of 1970
Exemption from Major Federal Environmental Review Laws (NEPA and ESA)
Geothermal activities carried out under the new waiver (i.e., with a state permit on non-Federal surface estate with less than 50% federal subsurface ownership) are explicitly declared not a 'major Federal action' for NEPA purposes and are not subject to Section 7 of the Endangered Species Act. This significantly reduces the environmental review requirements for these projects, bypassing federal environmental impact assessments and consultations.
Section 2, adding new Section 30(b)(5) to the Geothermal Steam Act of 1970
Conditional Exemption from National Historic Preservation Act
Geothermal activities under the waiver are only considered an 'undertaking' subject to the National Historic Preservation Act (NHPA) if the state where the activity occurs has no state law addressing historic property preservation. This means that if a state has its own historic preservation laws, federal NHPA review is bypassed, deferring to state-level protections.
Section 2, adding new Section 30(c) to the Geothermal Steam Act of 1970
Preservation of Federal Royalties and Oversight
This provision clarifies that the waiver of federal permits does not affect the amount of royalties due to the United States from geothermal electricity production or byproducts. It also allows the Secretary to conduct onsite reviews and inspections to ensure proper accountability, measurement, and reporting of production and royalty payments, maintaining federal financial oversight.
Section 2, adding new Section 30(d) and (e) to the Geothermal Steam Act of 1970
Exclusion of Indian Lands from Waivers
The entire section waiving federal permits and environmental reviews does not apply to actions on Indian lands or resources managed in trust for the benefit of Indian Tribes. 'Indian land' is defined to include reservations, pueblos, rancherias, and lands held in trust or restricted against alienation for tribes or individual Indians, or by a dependent Indian community, ensuring these lands retain existing federal protections.