Enron Mail

From:janel.guerrero@enron.com
To:enron.environmental@enron.com
Subject:NOx SIP call info etc...
Cc:
Bcc:
Date:Thu, 28 Oct 1999 08:29:00 -0700 (PDT)

Last week I attended the 1999 annual meeting for the Council of Industrial
Boiler Owners (CIBO) in Arizona. Enron has been a member since 1997. Below
is a quick summary of some issues that you might be interested in.

Background
CIBO considers itself the "voice" of industrial energy producers promoting,
through techinical interchange and advocacy: 1)equitable, cost effective
laws and regulations; 2) improved reliability and cost effectiveness of
industrial energy systems; and 3) the exchange of information among members,
government and the public concerning policies, laws and regulations which
affect industrial energy systems.

List of Members Attending the Conference
A-55, Inc
AE Staley Manufacturing Company
ABB Combustion Engineering, Inc
Alcoa, Inc.
American Highway Users Alliance
Anheuser-Bush Companies, Inc.
Archer Daniels Midland
Automation Applications, Inc.
BASF Corporation
Bibb & Associates, Inc.
Black & Veatch Corp
Bracewell & Patterson
Cerestar USA, Inc.
Coen Company, Inc.
DB Riley, Inc.
Detroit Stoker Company
Dow Chemical USA
DTE Coal Services, Inc.
DTE Energy Services
Duke/Fluor Daniel
Eastman Chemical Company
East Kodak Company
EI Dupont de Nemours & Co
Elsag Bailey
Energy & Environmental Research Corp.
Enron
Foster Wheeler Energy Corp
Gardner, Carton &Douglas
Gas Research Institute
General Motors Corp.
Harold Black & Sons, Inc
Honeywell, Inc
Integrated Waste Services Association
Inter-Power/ Ahlcon Partners
International Paper
ISG Resources, Inc./John Zink Company
Michigan State University
National Coal Council
Nooter/Eriksen, Inc.
Ohio University
Penn State University
PSD Solutions, Inc.
Regional Air Pollution Control Agency (Ohio)
RJ Reynolds Tobacco
Rohm and Haas Company
Ross Project Services
SFT, Inc.
Solar Turbines Inc.
The McBurney Corporation
Proctor & Gamble
Todd Combustion/John Zink
Trigen Energy Corporation
University of North Dakota
US Conference of Mayors
Virginia Tech
Wartsila Diesel Inc.
Wheelabrator Environmental Systems
Youngstown Fuels & Technology, Inc.

1999 Survey Results
Prior to the meeting, a survey was taken among CIBO members and the responses
were shared last week. Key points:

1) When asked which CIBO program provides the greatest benefit to members
The Environmental Committee was by far the most popular, followed by the NOx
Control Conference and then the Energy Committee meetings were considered
most beneficial.

2) The most important Energy Issues in 1999 for CIBO members were, in the
following order:
Global Climate Change
Energy Strategy
Regulatory Activitiy Relating to Fuels
Retail Wheeeling/Competitive Sourcing
Energy Efficiency Regulations
Operator Certification
Ownership and Operations Options
Other

3) Most important 1999 Technical Issues (top 3):
Energy Optimization
Emission Control Systems
Advanced Technologies

4) Most Important 1999 Legislative Issues:
1990 Clean Air Act Reathorization/Amendments
Regulatory Reform
Utility Dereg
Energy and Environmental Taxes
RCRA Ash
Cost Effectiveness
Risk Assessment

5) Most important 1999 Environmental Issues:
Northeast States Ozone Transport
National Ambient Air Quality Standards
Environmental Litigation
New Source Review Reform
Industrial Combustion Boiler MACT
RCRA Non-Utility Fossil Fuel Ash
Compliance Assurance Monitoring
Environmental Enforcement
Emission Trading
Pollution Prevention
Environmental Justice
Risk Assessment & Management
World Bank Environmental Standards
ISO 14000 International Standards
Urban Sprawl
Other

NOx SIP Call Litigation
Oral Arguments are scheduled to be heard on November 9th in Washington, DC.
Enron Govt. Affairs reps will be in attendance.
CIBO's involvement is as follows:

Parties to the NOx SIP Litigation vs
The states of:
MI, OH, IN, WI, NC, SC VA, WV, AL
EPA
Utilities from:
OH, MO, IN, MI, SC, WI
Intervenors on behalf of EPA are listed below:
CT, MA, ME, VT, RI, NH, NY, PA, MD
CIBO
Northeast Utility Companies
NMA
Trade Groups
The Paper Industry
Natural Gas Supply Association/Sempra
Business Coalition
Environmental Groups
INGA

PP&L




Regulation Challenged:
The State of Michagan et al vs EPA (98-149)

Finding of Significant Contribution and Rulemaking for Certain States in the
Ozone Transport Assessment Group Region for Purposes of Reducing Regional
Transport of Ozone.

Petitioners' Arguments
Interpretation of "Significant Contribution" -- cost analysis
State Authority -- EPA went beyond its authority
Split States -- built on OTAG modeling data. Only a portion of certain
states were considered in the modeling, but the rule affected the entire state
SBREFA -- EPA, when they published the regulations, didn't consider the
impact to small business.
Industrial Boilers -- the definition is incorrect
Internal Combustion Engines -- now subject to a 90 percent reduction; EPA
couldn't show why; incorrect analysis
NOx trading credits -- PP&L is arguing for earlier action credits. They
don't like the cap on credits b/c it doesn't give full value for the credits

***As a sidenote.....only certain members of CIBO have been funding the
litigation effort. Enron is not one those companies. If you have further
questions about the annual meeting or the litigation, please give me a call.
I'll send around a summary of the hearing after November 9th.