HEATS Act

The Harnessing Energy At Thermal Sources Act (HR5587) was placed on the Union Calendar on April 15, 2026, following its reporting (amended) by the Committee on Natural Resources. This action signifies that the bill has cleared committee review and is now eligible for floor debate and a vote in the House of Representatives. The bill was introduced on September 26, 2025, and has seen consistent action, including subcommittee hearings and committee markup, demonstrating active legislative momentum. This bill does not authorize or appropriate any specific funding amounts. Instead, its financial impact is indirect, stemming from regulatory relief. By waiving federal drilling permit requirements and exempting certain geothermal exploration and production activities on non-federal surface estates from the National Environmental Policy Act of 1969 (NEPA) and the Endangered Species Act of 1973, the bill reduces regulatory burdens and potential delays. This streamlining is intended to lower development costs and accelerate project timelines for geothermal energy companies. Structural beneficiaries of this legislation are companies involved in geothermal energy exploration, development, and production. The reduced regulatory overhead could make new projects more economically viable and speed up the deployment of existing projects. While no specific tickers are named in the bill, publicly traded companies with significant geothermal assets or development plans would be positioned to benefit. The bill specifies that activities would not be considered a major Federal action under NEPA and would not be subject to Section 7 of the Endangered Species Act, provided a state permit is obtained and the U.S. holds less than 50% ownership of the subsurface geothermal estate. This regulatory relief is a direct incentive for increased activity in the geothermal sector. Given the bill's placement on the Union Calendar, the next legislative step is consideration by the full House of Representatives. If passed by the House, it would then move to the Senate for consideration. The bill's sponsor, Rep. Kim (R-CA-40), and its progress through committee suggest a degree of bipartisan support, with two cosponsors. The related bill HRES1189, which provides for consideration of HR5587, further indicates its readiness for floor action.