Message-ID: <9235212.1075844207956.JavaMail.evans@thyme>
Date: Thu, 17 May 2001 03:29:00 -0700 (PDT)
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.bolton@enron.com
Subject: Other Aspects of Cheney Energy Report Recommendations of Interest
 to Enron -- Coal and Enviro Related
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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.