H.R. 5587 — HEATS Act

This section establishes an exemption from federal drilling permits for geothermal exploration and production activities on non-Federal surface estates where the United States owns less than 50% of the subsurface geothermal estate, provided the operator submits a state permit for such activities. Such activities (1) are not major federal actions under the National Environmental Policy Act of 1969 (NEPA); (2) require no additional federal action; (3) may commence 30 days after state permit submission; (4) are not subject to consultation under section 7 of the Endangered Species Act of 1973; and (5) are undertakings under the National Historic Preservation Act only if the state lacks a historic preservation law. (Thus, the exemption streamlines development on split-estate lands with limited federal subsurface interest while preserving U.S. royalties on electricity production from geothermal resources and allowing secretarial inspections for accountability.) The exemption does not apply to Indian lands.