The NCSL Geothermal Policy Project activities during the first quarter of the second project year were concerned primarily with initiating geothermal studies in new project states and furthering policy development in existing project states. Project staff also helped conduct and participated as faculty in two major geothermal conferences sponsored by the Geothermal Resources Council. In consultation with the DOE goethermal program managers, five new states were selected as candidates for participation in the geothermal project. Initial contacts and negotiations with those legislatures were commenced. Staff conducted a geothermal policy workshop in Delaware and participated in a committee hearing in Oregon. Arrangements for follow-up work in New Mexico and Utah were begun. The project was reviewed and commended by the DOE geothermal program managers and the contract renewal was approved. One major development for the project was the resignation, effective May 1, of Rutherford Harris, the project's director. A replacement should be identified by June 1. In the meantime, Douglas Sacarto is serving as acting director