HEATS Act
- Sponsor
- Sen. Hoeven, John [R-ND]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Jul 15, 2026
Bottom line
The HEATS Act aims to accelerate geothermal energy development by significantly reducing federal regulatory oversight for certain projects on mixed-ownership lands.
What it actually does
This bill, the HEATS Act, amends the Geothermal Steam Act of 1970 to streamline the permitting process for geothermal exploration and production activities. It waives the requirement for a Federal drilling permit and exempts these activities from key federal environmental and historic preservation reviews when conducted on non-Federal surface estates where the U.S. holds less than 50% of the subsurface geothermal estate, provided a State permit is obtained.
Proponents argue
Proponents argue that the current federal permitting process for geothermal energy is overly burdensome and creates unnecessary delays, hindering the development of a crucial renewable energy source. They contend that by deferring to state permitting processes and exempting certain activities from federal environmental reviews, the bill will unlock geothermal potential, create jobs, and contribute to energy independence without compromising environmental standards already addressed at the state level.
Opponents contend
Opponents would likely argue that the bill significantly weakens critical environmental and historic preservation safeguards by exempting geothermal projects from NEPA, ESA, and NHPA reviews. They might contend that these federal protections are essential for preventing adverse impacts on sensitive ecosystems, endangered species, and cultural heritage sites, and that relying solely on state permits may lead to inconsistent or inadequate oversight, especially on lands with federal subsurface interests.
The bill is short and relatively straightforward, allowing for quick comprehension of its core provisions.
Section 2, adding new Section 30(a) to the Geothermal Steam Act of 1970.
Waiver of Federal Drilling Permit for Geothermal Activities
This provision eliminates the need for a federal drilling permit for geothermal exploration and production activities. This waiver applies specifically when the activities occur on a non-Federal surface estate, and the U.S. government owns less than 50 percent of the subsurface geothermal rights. The operator must still submit a valid State permit to the Secretary.
Supporters argue
Supporters argue this waiver will significantly accelerate geothermal project development by removing redundant federal permitting requirements, which often cause substantial delays. They believe state permits are sufficient for oversight in these specific circumstances.
Critics contend
Critics might argue that even with a state permit, federal oversight is necessary to ensure consistent standards across different states and to protect federal interests in the subsurface estate, regardless of the percentage of ownership.
Tradeoffs
Balances the desire for expedited energy development against the potential for reduced federal oversight and potentially varied regulatory standards across states.
Section 2, adding new Section 30(b) to the Geothermal Steam Act of 1970.
Exemption from Federal Environmental and Historic Preservation Reviews
This provision declares that geothermal activities qualifying for the federal permit waiver will not be considered "major Federal actions" under the National Environmental Policy Act (NEPA), will not be subject to Section 7 of the Endangered Species Act (ESA), and will only be subject to the National Historic Preservation Act (NHPA) if the state lacks its own historic preservation laws. This significantly reduces federal environmental and cultural review requirements.
Section 2, adding new Section 30(c) to the Geothermal Steam Act of 1970.
Preservation of Federal Royalties and Accountability
This provision clarifies that while federal permits and environmental reviews are waived, the United States still retains its right to collect royalties from the production of electricity using geothermal resources or any byproducts. It also explicitly allows the Secretary to conduct onsite reviews and inspections to ensure proper accountability, measurement, and reporting of production and royalty payments.
Section 2, adding new Section 30(d) and 30(e) to the Geothermal Steam Act of 1970.
Exclusion of Indian Lands from Permit Waiver and Exemptions
This provision explicitly states that the new permit waiver and environmental review exemptions do not apply to activities on Indian lands or resources managed in trust for the benefit of Indian Tribes. It also provides a detailed definition of "Indian land." This ensures that existing federal protections and tribal sovereignty over these lands remain unaffected.
Geothermal activities are only considered an "undertaking" under the National Historic Preservation Act (NHPA) if the state where the activity occurs has no state law addressing historic property preservation.
Section 2, adding new Section 30(b)(5) to the Geothermal Steam Act of 1970.
Why it matters:This is standard legislative practice for specifying conditions and limitations within broader exemptions. It's not necessarily evasive, but requires careful reading.
Case for: Supporters argue this avoids redundant reviews where states already have robust historic preservation laws, allowing for more efficient project development.
Case against: Critics might argue that federal NHPA review provides a consistent national standard and an additional layer of protection, especially for sites of national significance, which might be overlooked or inadequately protected by varying state laws.
Estimated impact: Potentially significant impact on the review process for historic and cultural sites, shifting primary oversight to states, with federal review only as a backstop in states without such laws.