H.R. 5587: Harnessing Energy At Thermal Sources Act

The Harnessing Energy At Thermal Sources Act (HEATS Act) aims to amend the Geothermal Steam Act of 1970 to streamline geothermal energy development in the United States. The main components of the bill include the following:

No Federal Permit Requirement

The bill states that operators will not need to obtain a federal drilling permit for geothermal exploration and production activities on certain types of land. Specifically, these activities can occur on non-federal surface estates where the U.S. government holds less than a 50% interest in the underlying geothermal resources, provided the operator has submitted a state permit to conduct operations.

Exemptions from Federal Action

Geothermal activities falling under the above provision will be exempt from being classified as "major federal actions" under the National Environmental Policy Act of 1969 (NEPA). This means:

• These activities will not require additional federal review or action.
• Operational activities can begin 30 days after the submission of the state permit.
• These projects will not be subject to the regulations of the Endangered Species Act.
• They might only be considered under certain historic preservation protections if no relevant state laws are in place.

Royalties and Accountability

The bill specifies that while operators may bypass federal permits, they are still required to pay royalties to the U.S. government on geothermal electricity production and any associated byproducts. The federal authorities retain the ability to conduct reviews and inspections to ensure adherence to these royalty requirements.

Exceptions for Indian Lands

Importantly, this legislation does not apply to geothermal activities on Indian lands or resources managed for Indian tribes. The bill explicitly defines "Indian land" to include reservations and trust lands held for the benefit of tribes or individual Indians.

Summary of Objectives

The overarching goal of the HEATS Act is to foster the development of geothermal energy resources while reducing bureaucratic requirements for operators, promoting energy production, and maintaining a structure for royalties without infringing on tribal lands or rights.

Relevant Companies

• Ormat Technologies Inc. (ORA) - A leading geothermal energy company that could benefit from a less restrictive permitting process, potentially enabling more rapid project development.
• Cyrq Energy (CYRQ) - A company focused on geothermal operations that might see a decrease in regulatory hurdles, allowing for expanded geothermal exploration and production.