Enron Mail

From:michele.raque@enron.com
To:richard.ring@enron.com
Subject:FW: Court Decision on NOx - EPA Section 126 Rule
Cc:
Bcc:
Date:Wed, 29 Aug 2001 11:56:07 -0700 (PDT)

as promised :)

-----Original Message-----
From: =09Imai, Rika =20
Sent:=09Wednesday, August 29, 2001 12:52 PM
To:=09Benchluch, Moises; Benjelloun, Hicham; Cline, Kevin; Gim, Steve; Gual=
y, Jaime; Kaniss, Jason; Mack, Iris; Makkai, Peter; Oh, Seung-Taek; Santucc=
i, Anna; Schiavone, Paul; Soykok, Gulay; Thomas, Paul D.; Wagner, Joseph; W=
illis, Cory; Dickerson, Lloyd; Giron, Gustavo; Gulmeden, Utku; Ha, Amie; He=
mani, Sanjay; Jenkins IV, Daniel; Kendall, Heath; Lowell, Thomas; Marquez, =
Mauricio; Moore, Castlen; Ochsner, Preston; Pan, Steve; Philippov, Maxim; R=
aque, Michele; Schneider, Bryce; Williams, Ryan; Young, Julia
Subject:=09FW: Court Decision on NOx - EPA Section 126 Rule
Importance:=09High



-----Original Message-----
From: =09Keeler, Jeff =20
Sent:=09Monday, August 27, 2001 4:16 PM
To:=09Affelt, Scott; Ahmed, Naveed; Allen, Phillip K.; Baughman, Edward D.;=
Benson, Robert; Bolton, Stacey; Boyd, Hap; Bradley, Rob; Churbock, Scott; =
Davis, Mark Dana; Dillingham, Gavin; Dobler, Mark; Eghneim, Gus; Gilbert-sm=
ith, Doug; Guerrero, Janel; Howley, Elizabeth; Huson, Margaret; Imai, Rika;=
Jacobson, Lisa; Jacoby, Ben; Jenkins IV, Daniel; Jensen, Ruth; Kaniss, Jas=
on; Kellermeyer, Dave; Kendrick, William; Kroll, Heather; Landwehr, Susan M=
.; Llodra, John; Mainzer, Elliot; Malcolm, Rodney; Meyer, Vance; Middleton,=
Vince; Migden, Janine; Mitchell, Heather; Montovano, Steve; Moore, John; M=
oss, Alison; Murray, Julia; Neal, Scott; Nutt, David; Phillips, Marc; Prest=
o, Kevin M.; Roberts, Dave; Robertson, Linda; Robinson, Mitch; Salhotra, Ra=
jneesh; Schmidt, Ann M.; Schoen, Mary; Schroeder, Mark; Shafer, John; Shapi=
ro, Richard; Shortridge, Pat; Soldano, Louis; Steffes, James D.; Stram, Bru=
ce; Sturm, Fletcher J.; Terraso, Michael; Tingleaf, Drew; Van, Henry; Walsh=
, Kristin; Watson, Scott; Will, Lloyd; Worthen, Susan
Cc:=09Keeler, Jeff
Subject:=09Court Decision on NOx - EPA Section 126 Rule
Importance:=09High

The U.S. Circuit Court of Appeals, DC Circuit, issued a ruling today on the=
EPA Section 126 Rule. (As brief background, the 126 Rule would have requi=
red compliance with more stringent summer-season NOx caps starting in May 2=
003 in several northeast and Midwest states)

The Order states: =20

"It is Ordered that EPA's Section 126 Rule is remanded as to all cogenerato=
rs, but vacated only as to those cogenerators classified as electric genera=
ting units ("EGUs") under the rule that supply equal to or less than one th=
ird of their potential capacity or equal to or less than 25 MW to the grid =
for sale per year." Translation: This part of the order appears to "vaca=
te" or completely throw out the 126 rule for small cogen units (under 25 MW=
) or cogen units selling less than 1/3 into the grid. For all other cogen=
erators, the court remands the rule to EPA for re-working, consistent with =
some of the court's earlier objections about EPA's handling of cogens. Im=
pact: EPA will need to go back and formulate rules for cogens altogether, =
so there is currently no NOx compliance schedule in place for cogen units. =
EPA will need to start from scratch for smaller cogens.

"It is Further ordered that as of May 15, 2001, the date of this court's de=
cision, the three-year compliance period for emissions limitations applicab=
le to EGUs under the Section 126 Rule is tolled, pending EPA's resolution o=
f the remand of EGU growth factors ordered by this court." Translation: T=
his more significant part of the order "tolls" -- or puts on hold -- compli=
ance with the 126 Rule for ALL ELECTRIC GENERATING UNITS (EGUs) until EPA r=
esolves EGU growth factor issues that the court identified in its May 15, 2=
001 ruling. =20

Impact: The practical effect of this part of the order will be to delay im=
plementation of the Section 126 Rule until May 2004, when the EPA's NOx SIP=
Call regulation is scheduled to go into effect. The EPA will not be able=
to re-issue its Section 126 rules in a time frame that would require compl=
iance before May 2004. The NOx SIP Call would have supplanted the Section =
126 Rule in May 2004 anyway -- what this ruling does is take away some of t=
he uncertainty that existed for the May to September 2003 period (original =
effective date of the Section 126). This means that generators in states =
not covered already by existing NOx trading programs (OTR NOx program) will=
have another year to comply.

I will forward any more detailed legal analysis as I receive it, but this i=
s the latest news.

Please call if you have any questions.

Jeff Keeler
Director, Environmental Strategies
Enron Corp
(203) 245-0828 office
(203) 464-1541 cell