HEATS Act
Introduced September 26, 2025 · Last action April 28, 2026
Plain English Summary
This bill amends the Geothermal Steam Act to waive the federal drilling permit requirement for geothermal exploration and production on non-federal land when the federal government owns less than 50% of the subsurface geothermal estate. It also exempts these activities from federal environmental review under the National Environmental Policy Act and from the Endangered Species Act, allowing operations to begin 30 days after submitting a state permit.
Who benefits
Geothermal energy developers and private operators drilling on non-federal land with less than 50% federal subsurface ownership (including companies like Ormat Technologies, Calpine, and other independent geothermal producers); private landowners with geothermal resources on their property; state regulators in geothermal-rich states (Nevada, California, New Mexico, Oregon, Idaho, Utah) who gain authority over permitting; electric utilities and direct-use customers accessing geothermal energy at faster timelines and lower permitting costs.
Who pays / loses
Federal land management agencies (Bureau of Land Management, U.S. Forest Service) who lose permitting authority and oversight; environmental groups and advocacy organizations who lose NEPA review and public comment rights; endangered species protection advocates who lose Endangered Species Act consultation requirements; historic preservation advocates who lose National Historic Preservation Act protections in states without equivalent state law; Native American tribes and indigenous groups (excluded from waiver but facing adjacent project impacts on trust lands and water resources); the public in affected geothermal regions who lose federal environmental review transparency and participation opportunities.
Funding & Lobbying Interests
Geothermal energy companies and independent power producers lobbying for streamlined federal permitting stand to benefit from reduced regulatory delays and costs. The geothermal industry, including major producers like Ormat Technologies and smaller independent operators, has consistently advocated for streamlined permitting on private and mixed-ownership lands. Utility companies purchasing geothermal power, oil and gas drilling companies with geothermal operations, and private landowners with geothermal leases represent direct financial beneficiaries. Energy trade associations supporting permitting modernization and deregulation (American Petroleum Institute, Independent Oil & Gas Association, Geothermal Energy Association) typically back such legislation.
Political Impact
Affected Groups
Geothermal energy operators and exploration companies in western states (Nevada, California, New Mexico, Oregon, Idaho, Utah) with the most geothermal development potential; private landowners in geothermal regions; Native American tribes and indigenous communities whose trust lands, water resources, and sacred sites may be affected by adjacent geothermal drilling conducted under state-only oversight; environmental organizations and conservation groups; residents of geothermal development regions with interests in water quality, groundwater, seismic activity monitoring, and air quality.
Political Subtext
Proponents argue this bill reduces unnecessary federal red tape, accelerates clean energy development, and respects private property rights by allowing state-level permitting for activities on non-federal land. They contend geothermal energy is low-carbon and that faster permitting will increase domestic renewable energy production. Critics argue the bill strips critical environmental safeguards, eliminates federal oversight and public input on projects with potential environmental impacts (groundwater contamination, induced seismicity, subsidence), and weakens protection for endangered species and cultural resources on adjacent federal and tribal lands. Non-partisan analysis has not been published on this specific bill, but environmental groups and tribal advocates consistently flag that NEPA exemptions and ESA carve-outs reduce agency capacity to assess cumulative impacts and transboundary effects of geothermal development.
Real-World Stakes
If passed, geothermal drilling on mixed-ownership parcels moves from multi-year federal permitting (typically 2–4 years under NEPA) to 30-day state permitting, significantly accelerating project timelines. Operators avoid federal environmental review, endangered species consultation, and historic preservation review, reducing permitting costs by millions per project. The bill creates a regulatory arbitrage: developers choose to drill on non-federal surface with federal subsurface co-ownership to avoid federal review, shifting all environmental oversight to state regulators. Nevada and California, which host the majority of U.S. geothermal capacity, will assume full permitting authority for projects affecting federal geothermal resources. Precedent from oil and gas permitting suggests exemptions from NEPA correlate with faster development but reduced documented environmental baseline data and fewer opportunities for cumulative impact analysis. Native American tribes lose federal consultation requirements under ESA and NHPA on projects on nearby non-Indian land, reducing their ability to protect groundwater, sacred sites, and treaty resources. The bill preserves royalty collection but relies on state-level environmental monitoring and enforcement rather than federal oversight, creating potential gaps in accountability for projects affecting federal interests and transboundary resources.
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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