The most prominent geothermal resources in the USA occur in fifteen Gulf and Western states including Alaska and Hawaii. In each state, authority and guidelines have been established for administration of geothermal leasing and for regulation of development. Important matters addressed by these policies include resource definition, leasing provisions, development regulations, water appropriation, and environmental standards. Some other policies that need attention include taxation, securities regulations, and utility regulations. It is concluded that conditions needed for the geothermal industry to pursue large-scale development are consumer (utility) confidence in the resource; equitable tax treatment; prompt exploration of extensive land areas; long and secure tenure for productive properties; prompt facility siting and development; and competitive access to various consumers. With these conditions, the industry should be competitive with other energy sectors and win its share of investment capital. This publication reviews for the states various technical, economic, and institutional aspects of geothermal development. The report summarizes research results from numerous specialists and outlines present state and Federal policies. The report concludes generally that if public policies are made favorable to their development, geothermal resources offer an important energy resource that could supply all new electric capacity for the fifteen states for the next two decades. This energy--100,000 MW--could be generated at prices competitive with electricity from fossil and nuclear power plants. An extensive bibliography is included. (MCW).