To streamline geothermal energy development and production and decrease energy costs, U.S. Sen. John Hoeven (R-ND) on July 14 sponsored legislation that would waive the requirement for a federal drilling permit in certain instances, and also exempt them from the requirements of the National Environmental Policy Act of 1969.
“Burdensome, duplicative federal regulations create roadblocks to developing the energy our nation needs,” Sen. Hoeven said. “Even when there are no federal surface acres and the federal government owns a small share of a subsurface estate, geothermal operations reviewed and permitted by states are subject to a redundant federal permitting regime.
“This approach, which affects oil and gas production as well, severely hampers U.S. energy development,” he said.
The senator sponsored the Harnessing Energy At Thermal Sources (HEATS) Act of 2026, S. 4975, alongside lead original cosponsor U.S. Sen. Steve Daines (R-MT) to support the expanded development of geothermal energy.
The bill, which follows the model of Sen. Hoeven’s Bureau of Land Management (BLM) Mineral Spacing Act, would eliminate duplicative federal permitting and ensure majority holders of a geothermal estate located on non-federal lands can exercise their property rights in developing these resources, according to a bill summary provided by his office.
“Just like my BLM Mineral Spacing Act, the HEATS Act would correct this overreach by the federal government, enabling us to produce more geothermal energy on non-federal lands and strengthening the property rights of mineral and land owners,” said Sen. Hoeven.
The bill would remove the federal permitting requirement for geothermal operations in instances when less than half of the subsurface geothermal estate is owned by the federal government; geothermal exploration and production activities are conducted on non-federal surface acres; and the operator has received a state permit.
S. 4975 is the companion bill to the same-named H.R. 5587, which U.S. Rep. Young Kim (R-CA) sponsored in September 2025 alongside cosponsor U.S. Rep. Adam Gray (D-CA).
The U.S. House of Representatives on April 23 voted 231-186 to advance Rep. Kim’s bill to the U.S. Senate, where it is under consideration in the U.S. Senate Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining. S. 4975 also has been referred to the Senate Energy and Natural Resources Committee for action.