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Utah Geological Survey wins $1.75 million for geothermal work; federal grant pauses largely resolved

3028471 · April 17, 2025
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Summary

Acting UGS director Darlene Patashian told the board that the Legislature approved $1.75 million for a geothermal initiative, state general funds were sustained and previously frozen federal contracts were released after a short pause, though some FEMA management costs remain restricted.

Acting UGS Director and State Geologist Darlene Patashian told the Utah Geological Survey Board on April 16 that the agency emerged from the legislative session with a mix of wins and lingering federal uncertainty. The Legislature approved a $1,750,000 appropriation for an initiative the agency calls Operation Gigawatt to support geothermal investigations, she said, in addition to the agency's base general-fund appropriation.

Why it matters: The line-item allocation — smaller than UGS’s original request but described by Darlene as substantial — funds new equipment and field work intended to advance geothermal and related energy-resource mapping in Utah. Darlene said the appropriation will pay for items including a GeoProbe and that staff are beginning a work plan for the geothermal investigations.

Details from the meeting: Darlene said the geothermal request was originally proposed at $5,000,000, entered the governor’s budget near $4.4 million and was approved by the Legislature at $1.75 million. She said the agency also received support from the UGS restricted account and that the Legislature provided roughly $6,000,000 in general funds (as noted in the board packet) to support UGS operations.

Federal funding and contract pauses: Darlene summarized a period earlier in the year when multiple federally funded contracts were briefly frozen after the change in federal administration. She said most signed and obligated contracts have since been released following legal and administrative review, and “we are steady as she goes,” quoting her remarks. She noted, however, one outstanding issue: potential late restrictions on FEMA grant management costs that could affect roughly $1.017 million of management funding for the hazard team, while the science-specific portions of those FEMA grants appear not to be affected.

Budget management and cost share: The board was told UGS has stepped up internal financial controls and billing practices to better capture grant revenue. Darlene and Finance Lead Russ Fillmore described steps including more rigorous timekeeping, kickoff meetings for proposals that include data-management and publication staff, and improved contract-management tools. Russ presented year-to-date financials through March 31 and projected a carry-forward balance of about $753,000 into fiscal 2026, composed of restricted and project-specific funds. Both leaders stressed that accurate capture of grant billing and cost-share obligations is essential to avoid drawing on general funds.

Outlook: Darlene said she is “less worried than I was in January and February” about the outlook for federal funding but cautioned that future awards may be slower or smaller. She and Russ said the survey will adjust program scope if state or federal grant levels change, and they plan to present a chart of typical cost-share expectations at a future board meeting.

Related activity: Mark Milligan, UGS legislative liaison, briefed the board on bills that affected the agency, including measures on geologic carbon storage and nuclear energy; his summary is reported separately by the board. Darlene also described outreach plans to increase visibility with stakeholders and industry to support future funding requests.

The board discussed next steps for budgeting and communications and asked staff to provide more detailed cost-share and grant-capture information at the next meeting.