Makes a number of changes to the definition of geothermal resources. By-products are defined as any minerals, except hydrocarbon gas, helium, or oil found in association with geothermal streams that do not warrant extraction and production based on their own economic value. Geothermal resources remain sui generis. Geothermal resources may be reserved or conveyed to another person or entity. Authorization under the Water Code is needed for consumptive and non-consumptive uses including but not limited to power production. Authorization is not needed under certain circumstances. DNR and DOE must avoid duplication and promote efficiency when issuing permits and other approvals for these uses. The Act must neither affect nor operate to impair any existing water rights. The geothermal energy account is created to provide for the allocation of revenues distributed to the state under the Mineral Lands Leasing Act of 1920 and the Geothermal Steam Act of 1970. Funds from this account must be distributed 70 percent to DNR for geothermal exploration, and 30 percent to Washington State University for encouraging development of geothermal resources.