Seasonal thermal energy storage (STES) involves storing thermal energy, such as winter chill, summer heat, and industrial waste heat for future use in heating and cooling buildings or for industrial processes. Widespread development and implementation of STES would significantly reduce the need to generate primary energy in the U.S. In fact, 1980 data indicate that STES is technically suitable for providing 5 to 10% of the nation's energy with major contributions in the commercial, industrial, and residential sectors. Aquifer thermal energy storage (ATES) is predicted to be the most costeffective technology for seasonal storage of low-grade thermal energy. Approximately 60% of the U.S. is underlain with aquifers potentially suitable for underground energy storage. Under sponsorship of the U.S. Department of Energy, Pacific Northwest laboratory (operated by Battelle Memorial Institute) has managed numerical modeling, laboratory studies, evaluation of environmental and institutional issues, and field testing of ATES at several sites.