HEATS Act

The HEATS Act removes the requirement for federal drilling permits for geothermal exploration and production on non-Federal surface lands where the U.S. owns less than 50% of the underlying geothermal resources. Operators must instead obtain a state permit, after which activities can begin 30 days later and are exempt from major federal environmental reviews under NEPA, the Endangered Species Act, and most historic preservation requirements. The bill does not change existing royalty payments for geothermal electricity production or byproducts, and the Secretary retains authority for onsite inspections to verify production and royalty reporting. This applies only to non-Federal lands not designated as Indian lands under specific tribal trust or ownership rules.