Geothermal Heating and Cooling Working Group

NASEO Powering Up Data Centers Webinar: Geothermal Heating and Cooling for Data Centers
November 19, 2026, 3:00 - 4:00 PM ET
Please join NASEO for a Powering Up Data Centers webinar on Geothermal Heating and Cooling for Data Centers, featuring presentations on how geothermal technologies and underground thermal storage can help data centers manage their heating and cooling loads. The NASEO Powering Up Data Centers series aims to enhance State Energy Offices’ understanding of the challenges and opportunities associated with data centers and ensure that State Energy Offices are better equipped to develop policies and programs to meet the energy needs in their states and propel economic development. Please register here and reach out to Camille Norton (cnorton@naseo.org) with any questions.

• Slides

• Slides

August 19, 2026

July 31, 2025

June 12, 2025

• Colorado Energy Office, Key Definitions and Additional Resources
• HEET, A Definitional Taxonomy for (Geo) Thermal Energy Networks (2024) 

• Colorado Energy Office, Geothermal Incentive Awards List (2026) 
• National Laboratory of the Rockies, Geothermal Heat Pump Case Studies (2026) 
• Vermont Community Thermal Networks, Thermal Energy Network Case Studies

• New York State, Plan to Lower Subway Platform Temperatures and Harness Thermal Energy in Lower Manhattan (2026)

• National Laboratory of the Rockies, 2025 U.S. Geothermal Market Report (2026) 
• Pacific Northwest National Laboratory, Analysis of Ground Source Heat Pump ECMs (2024) 
• National Laboratory of the Rockies, National Modeling of Geothermal District Energy Systems with Ambient Temperature Loops Using dGEO (2024) 
• Oak Ridge National Laboratory, Technical Report: Grid Cost and Total Emissions Reductions Through Mass Deployment of Geothermal Heat Pumps for Building Heating and Cooling Electrification in the United States (2023) 

• National Laboratory of the Rockies, Geothermal Regulatory and Permitting Information Desktop RAPID Toolkit 
• HEET and the Regulatory Assistance Project, Seeking Balance: The Path Forward for Thermal Energy Network Regulation (2026)
• Building Decarbonization Coalition, TENs Legislative Guidebook: A Reference Guide for Municipalities and Community Advocates (2025)
• National Laboratory of the Rockies, Topics and Considerations for Developing State Geothermal Regulations (2023) 

•  Minnesota Department of Commerce, Thermal Energy Network Site Suitability Study (2026) 

• New York City Mayor’s Office of Climate & Environmental Justice, Geothermal Pre-Feasibility Tool 

The Alaska Energy Authority is actively supporting geothermal heating development through grant funding, demonstration projects, and streamlining geothermal regulations. A federally funded project is underway at a remote hot spring site on tribal lands to demonstrate the use of the hot spring as a geothermal heating source, as the state continues to explore geothermal as a practical heating solution for Alaskan communities. The Alaska Division of Geology and Geophysical Research (DGGS) assists AEA with technical aspects of geothermal energy development.

• House Bill 50 – This bill modernizes the state’s geothermal statutes to align them with Alaska’s oil and gas statutes authorizes the state geothermal leasing program to allow larger total lease holdings, among other provisions meant to encourage development.

• Alaska Energy Authority’s Renewable Energy Fund – Since 2008, this program has funded renewable energy projects to reduce and stabilize energy costs, including district heating.

• Pilgrim Hot Springs Project – a project site with surface geothermal and shallow subsurface thermal potential to heat 18 tribal buildings. This project is supported by grant funding from the U.S. Department of Energy. In 2026, the general manager of Pilgrim Hot Springs provided a progress update about the project during a webinar by DOE’s Office of Indian Energy.
• DOE Funding for GeoAlaska to Conduct Exploratory Drilling – In September 2026, DOE announced an award of up to $8 million to GeoAlaska to conduct exploratory drilling on Augustine Volcano in Cook Inlet to assess geothermal energy system potential. Results will reveal geothermal potential for both Augustine and the entire Aleutian Range of active volcanoes.
• Alaska Geothermal Database – The Alaska Division of Geological and Geophysical Surveys (DGGS) created a comprehensive geothermal data portal on thermal springs and related geothermal data of Alaska, which is open to the public.
• North to the Geothermal Future: From Binary to Superhot in Alaska and Beyond – The Society of Exploration Geophysics and American Geophysical American Union will hold a workshop on geothermal energy in Alaska in Anchorage, May 3-5, 2027.
• Two regional studies have been funded by the U.S. Department of Energy to consortia comprised of LLCs, University of Alaska Anchorage, University of Alaska Fairbanks, the Alaska Division of Geological and Geophysical Surveys (DGGS), and individual consultants. Both studies will address derisking geothermal development of sites on the Railbelt, Alaska’s main grid which is experiencing declining natural gas supply for electric power generation.
• DGGS, universities, and consultants participated in review of a comprehensive Alaska data gap analysis by the National Laboratory of the Rockies and their construction of crustal thermal model comparable to what exists for the Lower 48 states.

California is exploring geothermal heating and cooling through research and development (R&D) investment plans and upcoming pilot projects. The California Energy Commission (CEC) is currently developing a grant solicitation for a geothermal district heating study and demonstration project, with a focus on district heating systems for affordable, community-scale heating and demonstration projects in large commercial buildings, hospitals, and university campuses. Upcoming R&D will look to explore geothermal heating and cooling applications as part of neighborhood-scale networks. Through these efforts, CEC is seeking to investigate the benefits of geothermal heating and cooling in the context of California’s climate, geology, policy landscape, and energy goals.

• Senate Bill 1221:  Priority Neighborhood Decarbonization Zones – this 2024 law directly defines “thermal energy network.” It further requires the California Public Utilities Commission (CPUC) to evaluate the costs and benefits of thermal energy networks and identify potential implementation barriers. The law references thermal energy networks as a viable zero emission alternative for consideration in selected zones eligible for fossil gas decommissioning pilots. April 1, 2027, is the first deadline for gas utilities to propose pilot projects to the CPUC.

Incentives
None to date.

• The California Geologic Energy Management Division (CalGEM) – CalGEM is the state agency regulating California’s oil, gas, and geothermal industries.
• GeoSteam – Search Geothermal Well Records, Production, and Injection Data – GeoSteam, operated by the California Department of Conservation, provides geothermal well records, production, and injection data.

The Colorado Energy Office (CEO) manages a market-building strategy of grantmaking, tax credits, public project data, and consumer guidance to accelerate deployment of geothermal heat pumps and district-scale geothermal systems. State legislation has established policy levers including gas utility clean heat emission reduction requirements, to meet the state’s goal of achieving net zero carbon emissions by 2050, in addition to amending restrictive regulations, which together create demand for geothermal in buildings and thermal networks.

• Senate Bill 26-142 – This law reduces legal ambiguity and soft costs by providing express statutory authority for local governments to develop, operate, and finance thermal energy networks, including with private and cross-jurisdictional participants, and establishes such operators are not regulated by the Public Utilities Commission unless the private partner is already a regulated utility.  The statute also directs the Colorado Geological Survey to facilitate data collection which may include data from oil and gas wells or other relevant data to support “the deployment of low-temperature geothermal technologies for heating, cooling, or other direct uses.”     
• House Bill 26-1289 – This bill modification allows for awarded geothermal projects (eligible under HB24-1272) to pull tax credit allocations from the State’s $168 million industrial clean energy tax credit.
• Senate Bill 23-291 – This law encourages gas utilities to pursue geothermal energy networks that reach cost parity with gas for heating service.
• House Bill 23-1252 — This law defines thermal energy as an enumerated clean heat resource and requires large gas utilities to propose thermal energy network pilot programs. As a result, Xcel Energy is evaluating thermal energy network pilot projects in Denver and Frisco through a process approved by the Public Utilities Commission.

• Colorado Geothermal Energy Tax Credit Offering – CEO provides refundable, merit-based tax credits for thermal energy networks and thermal energy network studies. CEO awards the Geothermal Energy Tax Credit Offering through a competitive process, providing up to a total of $70 million in state investment tax credits. 
• Colorado Heat Pump Tax Credits – CEO provides tax credits for qualified heat pump installations, including geothermal heat pump installations.
• Colorado’s Geothermal Energy Grant Program – CEO provided grants from 2023-2025 to support geothermal projects for water heating, space heating, and cooling in homes, businesses, and communities.
• Colorado Industrial Tax Credit Offering – CEO provides refundable, merit-based tax credits for exploration or implementation of decarbonization projects at eligible industrial facilities.           

• Colorado Geothermal Teaming List – CEO provides this teaming list as a public resource to facilitate industry connections. Inclusion on the public list does not constitute an endorsement, certification, or recommendation of any specific contractor or entity by CEO. 
• Colorado Energy Office’s Geothermal Incentive Awards – CEO provides the geothermal energy incentive award list as a public resource.
• Colorado Geothermal Council Webinar Series – CEO supports the Colorado Geothermal Council, which hosted a webinar series from May-October 2026 to share best practices and explore growth areas in the industry. Webinar topics included direct use systems, project financing strategies, local government permitting, and stakeholder engagement.
• GeoExchange System Installers – The Colorado Department of Natural Resources’ Division of Water Resources maintains a list of companies certified to install geothermal heat pump systems and information to navigate the requirements for permitting and installing.     

The Connecticut Department of Energy and Environmental Protection (DEEP) is pursuing a multi-pronged approach to geothermal heating and cooling that combines financial incentives, workforce planning, demonstration projects, and a thermal energy network framework. DEEP assessed workforce needs and developed a geothermal workforce development plan. 2025 legislation directs DEEP to establish a grant and loan program for thermal energy networks.    

• Public Act 25-173: An Act Concerning Energy Affordability, Access, and Accountability – This law requires DEEP to establish a grant and loan program for thermal energy network projects and planning.

• Ground Source Heat Pump Financing and Incentives – Through Energize Connecticut, the state provides low-interest financing and incentives of up to $15,000 for single-family ground-source heat pumps, up to $4,200 per ton for multifamily systems, and up to $4,000 per ton for qualifying commercial, institutional, and municipal systems.
• Connecticut Ground Source Heat Pump Sales and Use Tax Exemptions – Connecticut state tax policy exempts qualifying geothermal resource systems from the state’s sales and use taxes (typically 6.35 percent).

• Geothermal web page – This DEEP page explains the benefits and economics of geothermal energy and provides resources such as case studies, consumer guidance, and links to webinars and reports. 
• Interactive Map of Geothermal Systems – This DEEP resource highlights many existing and planned commercial, institutional, and municipal geothermal systems.
• Union Station Area Thermal Energy Network – The City of New Haven is building a networked geothermal system – Connecticut’s first municipally owned thermal network – that will allow Union Station and a new mixed-income housing development to exchange and share heating and cooling loads.
• Manchester Main Street Thermal Energy Network – The City of Manchester is actively exploring the potential for a geothermal network serving municipal and private properties. 
• Connecticut Geothermal Workforce Needs Assessment and Geothermal Heat Pump Workforce Development Plan for Connecticut – DEEP commissioned a statewide geothermal workforce needs assessment and a geothermal workforce development plan with funding from the U.S. Department of Energy.
• Ulbrich Heights Community Geothermal Project – This DOE-funded initiative explored the potential for a networked geothermal system at a 132-unit affordable-housing facility in Wallingford, CT.

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The Idaho Office of Species, Minerals and Energy Coordination is working to expand geothermal heating and cooling across the state by supporting geothermal permitting and policy development, addressing water and land-use issues, and helping jurisdictions identify the geothermal model best suited to their needs. This work draws on lessons and best practices from Boise, the state capital, which taps a warm underground aquifer to supply four distinct geothermal networks with heat for downtown residential, commercial, and publicly owned buildings. Supported by compatible geology and favorable public perception, Boise's system is the largest municipally run geothermal heating utility in the country.

• Section 42-233, Idaho Code – This section of Idaho code governs the exploration, development, and use of low-temperature geothermal resources and their associated water rights. This code details the standard application, permit, and license procedure for accessing this groundwater resource class. 

• Residential Alternative Energy Tax Deduction – Idaho offers an income tax deduction of up to 40 percent for installing alternative energy devices used for heating, which includes geothermal technologies.

• The City of Boise Receives $1 Million to Advance Geothermal System – Boise was awarded $1 million from Bloomberg’s Mayors Challenge in 2026, which is being used to connect a new 300-unit affordable housing development with the Boise direct-use geothermal system. This project is expected to be completed in 2028 and help Boise residents save up to 80 percent in monthly energy bills.

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The Maryland Energy Administration is exploring geothermal heat pump deployment to preserve energy affordability. The State Energy Office’s approach involves building trust through consumer education campaigns, introducing policy and programmatic guardrails that allow geothermal technologies to serve the low- and moderate-income market, and identifying regions of the state with the greatest deployment potential. 

• WARMTH Act – The Working for Accessible Renewable Maryland Thermal Heat (WARMTH) Act established a networked geothermal pilot program that requires gas utilities serving at least 75,000 customers to propose pilot networked geothermal systems.
• House Bill 1007 – This law added a geothermal carve-out to Tier 1 of the state’s Renewable Portfolio Standard (RPS). It requires one percent of Tier 1 renewable generation to come from geothermal heating and cooling produced in Maryland by 2028. System owners can also earn Geothermal Renewable Energy Certificates based on thermal energy savings, which can then be purchased and sold between electricity suppliers to comply with renewable portfolio standards.

• The Maryland Energy Administration Geothermal Rebate Program – This program provided non-competitive geothermal heating and cooling system rebates for Maryland residents. This program held its final round of solicitations in 2026.
• Maryland Ground Source Heat Pump Advantage Pilot Program – This competitive grant program provided an installation incentive to builders, developers, and other eligible business entities for every ground source heat pump installed in new residential construction developments located in low-to-moderate income census tracts. The FY26 program was fully awarded, at $2 million.

• Maryland Energy Administration’s Geothermal Heating & Cooling Webpage – This website is the State Energy Office landing page for program information, available incentives, and educational and workforce training resources on geothermal heat pumps.
• Electrical Grid Impact of Ground Source Heat Pump Technologies (2023) – This report was legislatively mandated and developed by AECOM for the Maryland Energy Administration. It assesses the impact of widespread ground-source heat pump system adoption on Maryland’s statewide electrical demand, and whether the costs avoided in electric grid infrastructure upgrades could be directed to ground-source heat pump system investments.
• Maryland Geothermal Association – The Maryland Geothermal Association is the state’s trade organization for geothermal heating and cooling development and installation, providing education, training, sales support, and networking opportunities for residential and commercial contractors and distributors, as well as consumers, businesses, and government agencies.

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The Rhode Island Office of Energy Resources is assessing both building-scale ground-source heat pumps and shared networked geothermal systems through an affordability lens. The state is examining the potential grid resilience and peak demand benefits of ground-source heat pumps, given their seasonal performance and efficiency relative to conventional heating and cooling systems. The state is also working directly with utilities to identify potential sites and conduct feasibility studies for thermal energy networks, using demonstration projects as proving grounds for geothermal project economics, technical barriers, and workforce needs.

• H7879: Thermal Energy Network and Jobs Act – This law directs the Rhode Island Public Utilities Commission to identify potential sites for thermal energy network feasibility studies and develop a regulatory framework for utility or third party-owned geothermal networks.

• The New England Heat Pump Accelerator Geothermal Midstream Incentive – The New England Heat Pump Accelerator offers a midstream geothermal incentive to contractors and distributors, providing up to $750 per geothermal heat pump unit installed in Connecticut, Massachusetts, New Hampshire, or Rhode Island. 

• Heating Sector Transformation in Rhode Island: Pathways to Decarbonization by 2050 – A Brattle Group report for the Rhode Island Office of Energy Resources and Division of Public Utilities and Carriers compares thermal solutions, including ground source heat pumps, to meet the state's decarbonization and affordability goals.

The Utah Office of Energy Development is working to improve the commercial viability of geothermal heating and cooling by addressing high upfront costs, long payback periods, and developer uncertainty through statewide studies. The state is exploring ownership and accounting structures that can better capture available tax credits, allocate debt, and strengthen project economics, while building awareness of the benefits and applications of both networked and building-scale systems. Utah's work also considers how to secure reliable anchor loads that support long-term investment and how to build market familiarity with geothermal operations.

• House Bill 401 – This law directs Utah State University to conduct a study on the geological and environmental impacts of geothermal energy development and to report findings to the Public Utilities, Energy, and Technology Interim Committee by October 2027.

• Utah’s Renewable Residential Energy Systems Tax Credit – This tax credit supports residential and commercial renewable energy generating systems, including geothermal technologies such as ground-source heat pumps. Tax credits can be the lesser of 25 percent of system costs or $2,000 for residential geothermal systems, or lesser of 10 percent of installed system costs or $50,000 for commercial geothermal systems.
• Rocky Mountain Power WattSmart Rebates for Ground Source Heat Pumps – For eligible Utah customers, Rocky Mountain Power offers rebates up to $2,000 for residential ground-source heat pump installations.

Resources
None to date.

The Washington Department of Commerce is working to explore deployment options and pathways for new geothermal systems given regulatory and permitting barriers that impede utility-led system development. Utilities in the state have requested clearer and more aligned legislative and regulatory direction, particularly where permitting requirements, utility ownership models, and rate case authority do not reflect project delivery realities. Authorized to fund utility-led thermal energy network pilot projects yet lacking available resources, the Washington Department of Commerce is interested in learning from effective utility pilot and ownership approaches from other states, incorporating geothermal-ready construction into building and energy codes, addressing supply chain constraints, and helping utilities pursue federal funding and bridge financing.

• Senate Bill 6003 (Washington’s final 2026 supplemental capital budget) – Commerce received funding to convene a district energy decarbonization committee tasked to produce a report to the legislature by July 2027 outlining priority investments for submitted district energy systems on school campuses. 
• House Bill 2131 – This law enables gas and electric utilities to build, own, and operate thermal energy networks and authorizes the Washington Department of Commerce to establish a grant program that supports the state’s gas utilities with developing thermal energy network pilots.
• House Bill 23-1390 – This law authorized state campuses to comply with Washington’s clean buildings performance standards by submitting designs for district energy systems in covered buildings. 

Incentives
None to date.

• A Summary of District Energy System Decarbonization Plans – This report by the Washington Department of Commerce was submitted to the state legislature in March 2026, outlining Washington’s strategic approach to decarbonizing state-owned district energy systems to meet state greenhouse gas reduction targets. Recommendations include replacing steam boilers with thermal heating networks, using high-efficiency heat pumps, and installing geothermal systems.

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