[House Report 119-613]
[From the U.S. Government Publishing Office]
119th Congress } { Report
� HOUSE OF REPRESENTATIVES
� 2d Session } { 119-613
======================================================================
HARNESSING ENERGY AT THERMAL SOURCES ACT OF 2026
_______
April 15, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Westerman, from the Committee on Natural Resources,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 5587]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 5587) to amend the Geothermal Steam Act of 1970
to waive the requirement for a Federal drilling permit for
certain activities, to exempt certain activities from the
requirements of the National Environmental Policy Act of 1969,
and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Harnessing Energy At Thermal Sources
Act of 2026'' or the ``HEATS Act''.
SEC. 2. NO FEDERAL PERMIT REQUIRED FOR GEOTHERMAL ACTIVITIES ON CERTAIN
LAND.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) is amended
by adding at the end the following:
``SEC. 30. NO FEDERAL PERMIT REQUIRED FOR GEOTHERMAL ACTIVITIES ON
CERTAIN LAND.
``(a) In General.--The Secretary shall not require an operator to
obtain a Federal drilling permit for geothermal exploration and
production activities conducted on a non-Federal surface estate,
provided that--
``(1) the United States holds an ownership interest of less
than 50 percent of the subsurface geothermal estate to be
accessed by the proposed action; and
``(2) the operator submits to the Secretary a State permit to
conduct geothermal exploration and production activities on the
non-Federal surface estate.
``(b) No Federal Action.--A geothermal exploration and production
activity carried out under subsection (a)--
``(1) shall not be considered a major Federal action for the
purposes of section 102(2)(C) of the National Environmental
Policy Act of 1969;
``(2) shall require no additional Federal action;
``(3) may commence 30 days after submission of the State
permit to the Secretary;
``(4) shall not be subject to section 7 of the Endangered
Species Act of 1973; and
``(5) shall only be considered an undertaking under division
A of subtitle III of title 54, United States Code (commonly
referred to as the `National Historic Preservation Act'), if,
with respect to the State in which the activity occurs, there
is no State law in effect that addresses the preservation of
historic properties in such State.
``(c) Royalties and Production Accountability.--(1) Nothing in this
section shall affect the amount of royalties due to the United States
under this Act from the production of electricity using geothermal
resources (other than direct use of geothermal resources) or the
production of any byproducts.
``(2) The Secretary may conduct onsite reviews and inspections to
ensure proper accountability, measurement, and reporting of the
production described in subsection (a), and payment of royalties.
``(d) Exceptions.--This section shall not apply to actions on Indian
lands or resources managed in trust for the benefit of Indian Tribes.
``(e) Indian Land.--In this section, the term `Indian land' means--
``(1) any land located within the boundaries of an Indian
reservation, pueblo, or rancheria; and
``(2) any land not located within the boundaries of an Indian
reservation, pueblo, or rancheria, the title to which is held--
``(A) in trust by the United States for the benefit
of an Indian tribe or an individual Indian;
``(B) by an Indian tribe or an individual Indian,
subject to restriction against alienation under laws of
the United States; or
``(C) by a dependent Indian community.''.
Purpose of the Legislation
The purpose of H.R. 5587 is to amend the Geothermal Steam
Act of 1970 to waive the requirement for a Federal drilling
permit for certain activities, to exempt certain activities
from the requirements of the National Environmental Policy Act
of 1969, and for other purposes.
Background and Need for Legislation
H.R. 5587, the ``Harnessing Energy At Thermal Sources Act
of 2026'' or the ``HEATS Act,'' would expedite the development
of geothermal energy on non-federal land where federal minerals
are already developed. Currently, geothermal operators on non-
federal land producing any quantity of federal resources must
abide by all federal laws and permitting processes--even if the
federal minerals component of overall production is minuscule.
H.R. 5587 would relieve this burden by clarifying that
geothermal exploration or production wells on non-federal land
are not subject to National Environmental Policy Act (NEPA),\1\
Section 7 of the Endangered Species Act (ESA),\2\ or Section
106 of the National Historic Preservation Act (NHPA)\3\ if (1)
the U.S. holds an ownership interest of less than 50 percent of
the subsurface geothermal estate and (2) the operator receives
a drilling permit from the applicable state. To avoid the
degradation of historic properties, Section 106 of the NHPA
would be waived only if the state in which the geothermal
exploration and production activity occurs already has a state
law in effect to preserve historic properties.
---------------------------------------------------------------------------
\1\42 U.S.C. 4321.
\2\16 U.S.C. 1536(a)-(d).
\3\54 U.S.C. 306108.
---------------------------------------------------------------------------
Under current law, geothermal energy operators pay a
royalty of between 1 percent and 2.5 percent of the gross
proceeds from the sale of electricity produced during the first
ten years of production.\4\ Thereafter, the royalty is between
2 and 5 percent each year.\5\ Since H.R. 5587 would not alter
these royalty payments, it would not diminish the federal
revenues created by geothermal production. Rather, the bill
would lighten the administrative responsibilities of federal
agencies, while expediting the permitting process for
geothermal development.
---------------------------------------------------------------------------
\4\30 U.S.C. 1004.
\5\Id.
---------------------------------------------------------------------------
Committee Action
H.R. 5587 was introduced on September 26, 2025, by
Representative Young Kim (R-CA). The bill was referred to the
Committee on Natural Resources, and within the Committee to the
Subcommittee on Energy and Mineral Resources. On December 16,
2025, the Subcommittee on Energy and Mineral Resources held a
hearing on the bill. On March 5, 2026, the Committee on Natural
Resources met to consider the bill. The Subcommittee on Energy
and Mineral Resources was discharged from further consideration
of H.R. 5587 by unanimous consent. Chairman Bruce Westerman (R-
AR) offered an Amendment in the Nature of a Substitute
designated Westerman_060 ANS. The Amendment in the Nature of a
Substitute was agreed to by voice vote. Representative Emily
Randall (D-WA) offered an amendment to the Amendment in the
Nature of a Substitute designated Randall #1. The amendment was
not agreed to by a roll call vote of 16 yeas to 21 nays, as
follows:
Representative Pablo Hernandez (D-PR) offered an amendment
to the Amendment in the Nature of a Substitute designated
Hernandez #2. The amendment was withdrawn. The bill, as
amended, was ordered favorably reported to the House of
Representatives by a roll call vote of 23 yeas to 15 nays, as
follows:
Hearings
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing by the Subcommittee on Energy and Mineral Resources
held on December 16, 2025.
Section-by-Section Analysis
Section 1. Short title
Section 1 names the bill the ````Harnessing Energy At
Thermal Sources Act of 2026'' or the ``HEATS Act.''
Section 2. No Federal permit required for geothermal activites on
certain land
Section 2 amends the Geothermal Steam Act of 1970,
stipulating that geothermal wells on non-federal lands are not
subject to NEPA, Section 7 of the ESA, or Section 106 of the
NHPA if the U.S. holds an ownership interest of less than 50
percent of the geothermal estate and the operator receives a
drilling permit from the respective state and complies with
state historic preservation requirements.
This section also clarifies that this bill will not affect
royalties due to the U.S. from geothermal production.
Finally, Section 2 stipulates that this bill will not apply
to actions on Indian lands or resources managed in trust for
the benefit of Indian Tribes.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Performance Goals and Objectives
As required by clause 3(c)(4) of rule XIII, the general
performance goal or objective of this bill is to amend the
Geothermal Steam Act of 1970 to waive the requirement for a
Federal drilling permit for certain activities, to exempt
certain activities from the requirements of the National
Environmental Policy Act of 1969, and for other purposes.
New Budget Authority, Entitlement Authority,
and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(d)(1) of House rule XIII, the
Committee adopts as its own the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to the
Congressional Budget Act of 1974.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Unfunded Mandates Reform Act Statement
The Committee adopts as its own the estimate of the Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Existing Programs
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
GEOTHERMAL STEAM ACT OF 1970
* * * * * * *
SEC. 30. NO FEDERAL PERMIT REQUIRED FOR GEOTHERMAL ACTIVITIES ON
CERTAIN LAND.
(a) In General.--The Secretary shall not require an operator
to obtain a Federal drilling permit for geothermal exploration
and production activities conducted on a non-Federal surface
estate, provided that--
(1) the United States holds an ownership interest of
less than 50 percent of the subsurface geothermal
estate to be accessed by the proposed action; and
(2) the operator submits to the Secretary a State
permit to conduct geothermal exploration and production
activities on the non-Federal surface estate.
(b) No Federal Action.--A geothermal exploration and
production activity carried out under subsection (a)--
(1) shall not be considered a major Federal action
for the purposes of section 102(2)(C) of the National
Environmental Policy Act of 1969;
(2) shall require no additional Federal action;
(3) may commence 30 days after submission of the
State permit to the Secretary;
(4) shall not be subject to section 7 of the
Endangered Species Act of 1973; and
(5) shall only be considered an undertaking under
division A of subtitle III of title 54, United States
Code (commonly referred to as the ``National Historic
Preservation Act''), if, with respect to the State in
which the activity occurs, there is no State law in
effect that addresses the preservation of historic
properties in such State.
(c) Royalties and Production Accountability.--(1) Nothing in
this section shall affect the amount of royalties due to the
United States under this Act from the production of electricity
using geothermal resources (other than direct use of geothermal
resources) or the production of any byproducts.
(2) The Secretary may conduct onsite reviews and inspections
to ensure proper accountability, measurement, and reporting of
the production described in subsection (a), and payment of
royalties.
(d) Exceptions.--This section shall not apply to actions on
Indian lands or resources managed in trust for the benefit of
Indian Tribes.
(e) Indian Land.--In this section, the term ``Indian land''
means--
(1) any land located within the boundaries of an
Indian reservation, pueblo, or rancheria; and
(2) any land not located within the boundaries of an
Indian reservation, pueblo, or rancheria, the title to
which is held--
(A) in trust by the United States for the
benefit of an Indian tribe or an individual
Indian;
(B) by an Indian tribe or an individual
Indian, subject to restriction against
alienation under laws of the United States; or
(C) by a dependent Indian community.
DISSENTING VIEWS
H.R. 5587 would exempt certain geothermal exploration and
production activities from longstanding federal oversight and
permitting requirements. Specifically, the bill allows projects
occurring on non-federal surface estate and involving less than
50 percent federal subsurface estate to proceed without a
federal drilling permit and without review under the National
Environmental Policy Act (NEPA), Endangered Species Act (ESA),
and National Historic Preservation Act (NHPA). This is an
extreme waiver of the federal government's responsibilities to
steward public resources.
Under current law, the Bureau of Land Management (BLM) must
conduct environmental review under NEPA before approving any
project involving federal subsurface resources. Even where
projects occur on non-federal surface estate, operators are
still required to obtain a geothermal drilling permit when
federal subsurface resources are involved. Subsurface
activities can have significant surface impacts, including
induced seismicity, land subsidence, the creation of sinkholes,
and impacts on groundwater used for drinking and irrigation.
H.R. 5587 would eliminate essential safeguards, including
environmental review, consultation under the ESA, engagement
with Tribal governments, and opportunities for public input. In
previous Congresses, BLM testified in opposition to the
legislation, noting that it would strip the Secretary of the
Interior's authority necessary to ensure geothermal development
is conducted safely, in compliance with applicable laws, and
consistent with the agency's multiple-use and sustained-yield
mandate. The bill would undermine the BLM's core responsibility
to ensure that activities affecting federal resources protect
the environment, nearby communities, Tribal interests, other
landowners, and the taxpayers.
Split-estate landowners rely on the federal government to
protect their land. The mineral estate is the dominant estate,
giving those with mineral rights priority over surface rights.
The federal drilling permit process is often the only mechanism
for considering how a proposed plan of operations would affect
many resources on private land, including water impacts,
ranching, and wildlife impacts. Any shortcomings in a state's
permitting process would inappropriately leave federal
taxpayers responsible for obligations created by the state.
Finally, H.R. 5587 continues an alarming pattern of
proposals to waive federal environmental review for energy
development--Republicans have attempted similar waivers for oil
and gas development for years, which Democrats have strongly
opposed. Regardless of the energy source involved, surface
landowners deserve a say in the development of federal minerals
beneath their land. This bill would set a dangerous precedent
by eroding bedrock environmental laws and weakening
accountability.
For these reasons, I oppose H.R. 5587.
Jared Huffman,
Ranking Member.
[all]