HEATS Act

This bill would exempt certain geothermal exploration and production activities on nonfederal lands from federal drilling permit requirements, provided the United States owns less than 50% of the subsurface geothermal estate and the operator has a state permit. These activities would no longer be classified as major federal actions, removing the requirement for environmental reviews under the National Environmental Policy Act and consultation under the Endangered Species Act. Additionally, the bill would waive federal historic preservation reviews for these projects unless the state lacks its own historic preservation laws.

This bill affects geothermal energy operators conducting exploration and production activities on nonfederal surface estates where the United States holds less than a 50% ownership interest in the subsurface geothermal estate. The Department of the Interior is also affected, as it would be prohibited from requiring federal drilling permits for these specific projects. Additionally, state governments are involved as operators must submit state-issued permits to the federal government to qualify for these exemptions.

• Exemption from federal geothermal drilling permits. The bill prohibits the Department of the Interior from requiring a federal drilling permit for geothermal activities on nonfederal surface estates if the United States owns less than 50% of the subsurface estate and the operator has obtained a state permit.
• Removal of federal environmental review requirements. Qualifying geothermal exploration and production activities are designated as not being major federal actions, thereby exempting them from environmental review requirements under the National Environmental Policy Act of 1969.
• Exemption from federal endangered species consultations. The legislation exempts covered geothermal activities on state and private lands from the consultation requirements established by the Endangered Species Act of 1973.
• Conditional exemption from historic preservation reviews. Geothermal activities are exempted from review under the National Historic Preservation Act, provided the state where the activity occurs has its own laws addressing the preservation of historic properties.

The bill modifies the application of the Geothermal Steam Act of 1970 by exempting certain activities on nonfederal surface estates from federal drilling permit requirements. It also removes these activities from the scope of federal review and consultation requirements established under the National Environmental Policy Act of 1969, the Endangered Species Act of 1973, and the National Historic Preservation Act.

The bill aims to streamline geothermal energy development by exempting certain exploration and production activities on nonfederal surface lands from federal drilling permit requirements and environmental and historic preservation reviews, provided the federal government holds less than a 50% interest in the subsurface estate and the operator has obtained a state permit.