Lawmakers press DNR on $1 million geothermal continuation as department outlines data and partnership goals

At a Feb. 27 meeting of the House Finance Department of Natural Resources subcommittee, Deputy Commissioner Brent Goodrum told lawmakers the governor’s Feb. 18 amendment continues a three‑year temporary increment for the Division of Geological and Geophysical Surveys’ geothermal program and includes roughly $1 million to support the effort.

"State investment in [the] DDGS geothermal program has already enabled the state to leverage federal funding opportunities, strengthen national laboratory partnerships, and positioned Alaska to compete for commercial scale geothermal development," Goodrum said, calling geothermal a potential "secure in‑state baseload energy resource." He characterized the item as a continuation of an existing program rather than a new, standalone line item.

Rep. Chris Sadler questioned the value of another $1 million given past, slow‑moving efforts and asked whether the money would be used as a federal match or for fieldwork. "Is it gonna be used as match or you're just anticipating the federal money will come in through federal programs? And ... is this million dollars for basic research or for exploratory drilling or for permanent support?" Sadler asked.

John Crowther, the department’s commissioner designee, told the committee the funding is intended primarily for gathering and assessing data and building operational capacity rather than for discrete field tests. "There's a large amount of data today, but it's not necessarily accessible, understandable, with modern technology," Crowther said, adding that having that capacity makes the state better positioned to pursue Department of Energy or other federal opportunities.

Rep. Fields asked the department to provide examples from the Lower 48 showing technological advances that have expanded geothermal feasibility, saying recent drilling and data‑gathering advances have changed the economics of geothermal development. Crowther agreed and said Alaska is seeing private industry interest in some areas, and that the state wants to partner to seize those opportunities.

Several members also asked how the state will track return on investment for geothermal initiatives. Crowther said the Division of Geological and Geophysical Surveys tracks metrics tied to its mission — participation, leasing activity and similar indicators — and that recent leasing changes have led to increased private sector activity.

The department did not present a line‑by‑line expenditure plan during the subcommittee briefing; members requested follow‑up materials (case studies, mapping examples and clearer spending breakdowns) to better evaluate the program’s near‑term aims and how it might leverage federal grants.

The subcommittee discussion on geothermal was part of a broader BA‑sheet review for the Department of Natural Resources; no final appropriation vote on the geothermal item occurred in the subcommittee on Feb. 27.