Finds that: (1) The Pacific Northwest has unique geologic features that include significant geothermal resources;

(2) Other states and provinces in the region are actively exploring and developing geothermal resources to produce electric power and concentrated heating with varied applications;

(3) Existing information and analysis concerning geothermal resources is insufficient; and

(4) Advances in technology, higher energy prices, and concerns regarding use of high-carbon energy sources have raised public and private sector interest in developing the state's geothermal resources.

Authorizes the department of natural resources to conduct an initial assessment of the state's geothermal resources and to make recommendations regarding development of these resources, in an environmentally responsible manner, for electric generation and concentrated heating purposes.

Requires the department of natural resources to secure federal funding, contributions from geothermal energy interests, or other nonstate sources to meet at least two-thirds of the costs necessary to implement the act.