HR 5587: HEATS Act

HR 5587 in plain English: The HEATS Act would exempt certain geothermal energy exploration and production activities on state and private lands from several federal permitting and review requirements, provided the federal government owns less than 50% of the underground geothermal estate and the operator holds a state permit. The bill removes requirements for federal drilling permits, environmental impact reviews under NEPA, endangered species consultations, and in most cases historic preservation reviews for these activities.

Stated purpose

The HEATS Act aims to remove federal drilling permit requirements and certain federal environmental, species, and historic preservation review requirements for geothermal energy projects on state and private lands where the federal government owns less than half of the underground geothermal estate.

Key points

• Eliminates federal drilling permit requirements for geothermal projects on non-federal land where the U.S. owns less than 50% of the subsurface geothermal estate.
• Exempts qualifying geothermal activities from environmental review under the National Environmental Policy Act (NEPA).
• Removes the requirement to consult federal agencies under the Endangered Species Act for these geothermal projects.
• Exempts projects from federal historic preservation review unless the state lacks its own historic preservation law.
• Applies only to state and private lands, explicitly excluding Indian lands.

Arguments supporters make

• Removing duplicative federal permitting on mostly private or state land lets geothermal projects move faster, which could expand clean, renewable energy production and reduce dependence on fossil fuels.
• States already regulate drilling and environmental protection on their own land, so requiring an additional layer of federal review adds cost and delay without meaningful extra protection.
• Faster development of domestic geothermal energy supports energy independence and can create local jobs without requiring federal subsidies.

Arguments opponents make

• Geothermal drilling can affect groundwater, seismic activity, and wildlife that cross state lines, and waiving federal environmental and endangered species reviews removes a safety net that exists precisely because some impacts are bigger than any one state.
• Historic and cultural sites near drilling areas may not be adequately protected in every state, and the bill's carve-out for states lacking historic preservation laws may leave gaps depending on where projects occur.
• Allowing projects to start just 30 days after filing a state permit gives federal agencies and the public very little time to identify problems before drilling begins, potentially limiting accountability even though royalty oversight is retained.

Tradeoffs

The bill trades federal environmental and permitting oversight for faster, lower-cost geothermal development on non-federal land, shifting regulatory authority to states — which may respond more quickly but may apply less uniform protections for the environment, wildlife, and cultural sites.

Current status in Congress: Passed House.

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