Enron Mail

From:john.shelk@enron.com
To:steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com,lisa.yoho@enron.com, jeffrey.keeler@enron.com, lisa.jacobson@enron.com, chris.long@enron.com, kevin.mcgowan@enron.com, linda.robertson@enron.com, tom.briggs@enron.com, stacey.
Subject:Other Aspects of Cheney Energy Report Recommendations of Interest
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Date:Thu, 17 May 2001 03:29:00 -0700 (PDT)

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Below is the text of recommendations taken from the summary of
recommendations in the Cheney Energy Report being released later this morning
that focus on coal and coal-related issues, including environmental.

"The NEPD Group (National Energy Policy Development) recommends that the
President direct the Administrator of the Environmental Protection Agency
(EPA) to propose multi-pollutant legislation. The NEPD Group recommends that
the President direct the EPA Administrator to work with Congress to propose
legislation that would establish a flexible, market-based program to
significantly reduce and cap emissions fo sulfur dioxide, nitrogen oxides,
and mercury from electric power generators. Such a program (with appropriate
measures to address local concerns) would provide significant public health
benefits even as we increase electricity supplies.

Establish mandatory reduction targets to emissions of three main pollutants:
sulfur dioxide, nitrogen oxides, and mercury.

Phase in reductions over a reasonable period of time, similar to the
successful acid rain reduction program established by the 1990 amendments to
the Clean Air Act.

Provide regulatory certainty to allow utilities to make modifications to
their plants without fear of new litigation.

Provide market-based incentives, such as emissions trading credits to help
achieve the required reductions."

"The NEPD Group recognizes the importance of looking to technology to help us
meet the goals of increasing electricity generation while protecting our
environment. To that end, the NEPD Group recommends that the President
direct the Department of Energy to continue to develop advanced clean coal
technology by:

Investing $2 billion over 10 years to fund research in clean coal
technologies.

Supporting a permanent extension of the existing research and development
tax credit.

Directing federal agencies to explore regulatory approaches that will
encourage advancements in environmental technology.

"The NEPD Group recomemnds that the President direct federal agencies to
provide greater regulatory certainty relating to coal electricity generation
through clear policies that are easily applied to business decisions."

"The NEPD Group recommends that the President direct the Administrator of the
Environmental Protection Agency, in consultation with the Secretary of Energy
and other relevant agencies, to review New Source Review regulations,
including administrative interpretations and implementation, and report to
the President within 90 days on the impact of the regulations on investment
in new utility and refinery generation capacity, energy efficiency, and
environmental protection."

"The NEPD Group recommends that the President direct the Attorney General to
review existing enforcement actions regarding New Source Review to ensure
that the enforcement actions are consistent with the Clean Air Act and its
regulations."

"The NEPD Group recommends that the President direct federal agencies to
support continued research into global climate change; continue efforts to
identify environmentally and cost-effective ways to use market mechanisms and
incentives; continue development of new technologies; and cooperate with
allies, including through international processes, to develop technologies,
market-based incentives, and other innovative approaches to address the issue
of global climate change.