Sponsors (3)
The bill speeds and facilitates geothermal development and preserves federal royalties and inspections, but it does so by narrowing federal environmental, endangered species, and historic-preservation reviews—shifting oversight to states and increasing risks to wildlife, historic sites, and public input.
State-permitted operators (utilities and energy companies, small business owners) can begin geothermal exploration and production 30 days after submitting a State permit, shortening project startup times and accelerating development.
Federal revenue is preserved because existing royalty and byproduct payment requirements for geothermal production remain in place, protecting taxpayer interests.
The Secretary of the Interior may perform onsite inspections to verify production measurement and royalty payments, strengthening federal accountability over geothermal operations.
Local governments and rural communities may see reduced environmental review and opportunities for public input because many projects are exempted from NEPA’s 'major Federal action' review.
Endangered species and nearby communities face greater risk because the bill removes Endangered Species Act Section 7 consultation requirements for covered activities, reducing protections for wildlife and habitats.
When the United States owns less than 50% of the subsurface interest, federal permitting authority is reduced, shifting oversight responsibilities to states and potentially creating gaps in uniform federal oversight for taxpayers and state governments.
Based on analysis of 2 sections of legislative text.
Allows certain geothermal operations on non‑Federal surface lands to proceed under State permits without a Federal drilling permit, and exempts them from NEPA major‑action designation and ESA section 7 when the U.S. owns <50% of the subsurface.
Introduced September 26, 2025 by Young Kim · Last progress April 23, 2026
Allows certain geothermal exploration and production on non‑Federal surface lands to proceed under State permits without a separate Federal drilling permit when the United States owns less than half of the subsurface geothermal estate. Such activities are excluded from being treated as a "major Federal action" under NEPA, are not subject to consultation under the Endangered Species Act, may begin 30 days after a State permit is submitted, and remain subject to State historic‑preservation laws (or the National Historic Preservation Act if the State lacks one). Royalties and production‑accountability rules stay in place and Federal inspectors may still conduct onsite reviews; the rule does not apply to Indian lands or trust resources.