S. 4975: Harnessing Energy At Thermal Sources Act of 2026

This bill would change federal rules for some geothermal energy projects. In general, it would make it easier for operators to begin geothermal exploration and production on certain lands without needing a federal drilling permit.

What would qualify

The bill would apply when:

• The geothermal activity takes place on non-federal surface land;
• The United States owns less than 50% of the underground geothermal resources being accessed; and
• The operator provides the Secretary of the Interior with a state permit for the activity.

Effects on federal review and permitting

For qualifying projects, the bill would:

• Eliminate the need for a federal drilling permit;
• Provide that the activity is not treated as a major federal action under the National Environmental Policy Act (NEPA), which means no NEPA environmental review would be required at the federal level for that activity;
• Say that no additional federal action is needed;
• Allow the activity to begin 30 days after the state permit is submitted to the Secretary;
• Remove the activity from Endangered Species Act Section 7 consultation requirements; and
• Treat the activity as a historic-preservation “undertaking” only if the state where it occurs has no state law addressing historic property preservation.

Royalties and oversight

The bill would not change the royalties owed to the federal government from electricity produced using geothermal resources, or from geothermal byproducts. It would still allow the Secretary to conduct onsite reviews and inspections to check production, reporting, measurement, and royalty payments.

Limits of the bill

The bill would not apply to actions on Indian lands or resources managed in trust for the benefit of Indian Tribes. The bill defines Indian land broadly to include reservation, pueblo, and rancheria lands, as well as certain trust or restricted lands held for tribes or individual Indians.

Relevant Companies

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