The State Geothermal Resources Task Force has investigated the status of geothermal resources and development in California and in this report offers recommendations for overcoming obstacles facing increased utilization of this significant natural resource. For the most part, these recommendations are short-term solutions to immediate problems and would not radically change the roles of governmental agencies currently regulating geothermal development. The Task Force concludes that geothermal operations have been hindered by the lack of a statewide policy on geothermal development. This has resulted in instances where industry has been forced to comply with conflicting governmental policies toward geothermal energy development and environmental protection. The Task Force therefore recommends legislation establishing a statewide policy to encourage geothermal development consistent with environmental quality standards. In addition to geothermal resources suitable for the production of electrical power, California has extensive undeveloped hot water reservoirs suitable for direct thermal applications. The Energy Resources Conservation and Development Commission and the US Geological Survey have concluded that these resources, if developed, could make a significant contribution to satisfying California's energy needs. The Task Force therefore recommends establishing a statewide policy to encourage the use of non-electric hot water geothermal resources for commercial and non-commercial uses where the development is consistent with environmental quality concerns.