17 May 2001
Text: National Energy Policy -- Summary of Recommendations
(Bush administration plan offers wide-ranging policy initiatives)
(4850)

The Bush administration May 17 released a report from the National
Energy Policy Development (NEPD) Group, a panel of top government
officials directed earlier this year to develop a far-reaching energy
plan for the future.

The report analyzes the energy situation from a variety of
perspectives -- costs, supplies, infrastructure, conservation,
environmental concerns and international relationships. In each area,
the NEPD Group makes various recommendations for presidential,
regulatory and congressional action.

The section presented here provides a summary of all the report
recommendations, except for those regarding global energy alliances.
Those recommendations are summarized in a separate Washington File
item.

The full report is available at www.whitehouse.gov/energy/

The following terms are used in the text:

ANWR - Arctic National Wildlife Refuge. This term is used to describe
federal lands in Alaska which are under consideration for further oil
development.

Billion - 1,000 million

LIHEAP - Low Income Energy Assistance Program

Following is the summary of all recommendations made in Chapters 1-7
of the National Energy Policy (NEP).

(begin text)

NATIONAL ENERGY POLICY SUMMARY OF RECOMMENDATIONS

CHAPTER ONE Taking Stock:

Energy Challenges Facing the United States

The NEPD Group recommends that the President issue an Executive Order
to direct all federal agencies to include in any regulatory action
that could significantly and adversely affect energy supplies,
distribution, or use, a detailed statement on: (1) the energy impact
of the proposed action, (2) any adverse energy effects that cannot be
avoided should the proposal be implemented, and (3) alternatives to
the proposed action. The agencies would be directed to include this
statement in all submissions to the Office of Management and Budget of
proposed regulations covered by Executive Order 12866, as well as in
all notices of proposed regulations published in the Federal Register.

The NEPD Group recommends that the President direct the executive
agencies to work closely with Congress to implement the legislative
components of a national energy policy.

The NEPD Group recommends to the President that the NEPD Group
continue to work and meet on the implementation of the National Energy
Policy and explore other ways to advance dependable, affordable, and
environmentally responsible produc-tion and distribution of energy.

(Note: All recommendations in this report are subject to execution in
accordance with applicable law. Legislation would be sought where
needed. Also, any recommendations that involve foreign countries would
be executed in accordance with the customs of international relations,
including appropriate diplomatic consultation.)

CHAPTER TWO: Striking Home

The Impacts of High Energy Prices on Families, Communities, and
Businesses

The NEPD Group recommends that the President direct the Secretary of
Energy to explore potential opportunities to develop educational
programs related to energy development and use. This should include
possible legislation to create public education awareness programs
about energy. Such programs should be long-term in nature, should be
funded and managed by the respective energy industries, and should
include information on energy's compatibility with a clean
environment.

The NEPD Group recommends that the President take steps to mitigate
impacts of high energy costs on low-income consumers. These steps
would include:

--Strengthening the Low Income Home Energy Assistance Program by
making $1.7 billion available annually. This is an increase of $300
million over the regular FY 2001 appropriation.

--Directing the Secretaries of Interior and Health and Human Services
to propose legislation to bolster LIHEAP funding by using a portion of
oil and gas royalty payments.

--Redirecting royalties above a set trigger price to LIHEAP, whenever
crude oil and natural gas prices exceed that trigger price, as
determined by the responsible agencies.

The NEPD Group recommends that the President increase funding for the
Weatherization Assistance Program by $1.2 billion over ten years. This
will roughly double the spending during that period on weatherization.
Consistent with that commitment, the FY 2002 Budget includes a $120
million increase over 2001. The Department of Energy will have the
option of using a portion of those funds to test improved
implementation approaches for the weatherization program.

The NEPD Group recommends that the President support legislation to
allow funds dedicated for the Weatherization and State Energy Programs
to be transferred to LIHEAP if the Department of Energy deems it
appropriate.

The NEPD Group recommends the President recognize unique regional
energy con-cerns by working with the National Governors Association
and regional governor associations to determine how to better serve
the needs of diverse areas of the country.

The NEPD Group recommends the President direct FEMA to prepare for
potential en-ergy emergencies.

--FEMA should work with states' Offices of Emergency Management as
they expand existing emergency operations plans to identify potential
problems and address consequences of the power shortages. FEMA should
use its current Regional Incident Reporting System to identify any
situations that might demand immediate attention.

--Using the structure of the already existing Federal Response Plan,
FEMA should conduct Regional Interagency Steering Committee (RISC)
meetings for states affected by the energy shortfalls. The RISC is a
FEMA-led interagency committee comprised of agencies and departments
that support the Federal Response Plan. Either an upcoming, scheduled
RISC meeting or a special-focus RISC meeting can be held to identify
the short-term energy outlook, as well as any expected consequences,
in each of the states during the peak summer season.

CHAPTER THREE Protecting America's Environment:

Sustaining the Nation's Health and Environment

The NEPD Group 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 of 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 for 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 recommends the President direct the Secretary of the
Interior to work with Congress to create the "Royalties Conservation
Fund."

--This fund will earmark potentially billions of dollars in royalties
from new oil and gas production in ANWR to fund land conservation
efforts.

--This fund will also be used to eliminate the maintenance and
improvements backlog on federal lands.

The NEPD Group recommends the President issue an Executive Order to
rationalize permitting for energy production in an environmentally
sound manner by directing federal agencies to expedite permits and
other federal actions necessary for energy-related project approvals
on a national basis. This order would establish an inter-agency task
force chaired by the Council on Environmental Quality to ensure that
federal agencies responsible for permitting energy-related facilities
are coordinating their efforts. The task force will ensure that
federal agencies set up appropriate mechanisms to coordinate federal,
state, tribal, and local permitting activity in particular regions
where increased activity is expected.

CHAPTER FOUR Using Energy Wisely:

Increasing Energy Conservation and Efficiency

The NEPD Group recommends that the President direct the Office of
Science and Technology Policy and the President's Council of Advisors
on Science and Technology to review and make recommendations on using
the nation's energy resources more efficiently.

The NEPD Group recommends that the President direct the Secretary of
Energy to conduct a review of current funding and historic performance
of energy efficiency research and development programs in light of the
recommendations of this report. Based on this review, the Secretary of
Energy is then directed to propose appropriate funding of those
research and development programs that are performance-based and are
modeled as public-private partnerships.

The NEPD Group recommends that the President direct the Secretary of
Energy to promote greater energy efficiency.

--Expand the Energy Star program beyond office buildings to include
schools, re-tail buildings, health care facilities, and homes.

--Extend the Energy Star labeling program to additional products,
appliances, and services.

--Strengthen Department of Energy public education programs relating
to energy efficiency.

The NEPD Group recommends that the President direct the Secretary of
Energy to improve the energy efficiency of appliances.

--Support the appliance standards program for covered products,
setting higher standards where technologically feasible and
economically justified.

--Expand the scope of the appliance standards program, setting
standards for ad-ditional appliances where technologically feasible
and economically justified.

The NEPD Group recommends that the President direct heads of executive
depart-ments and agencies to take appropriate actions to conserve
energy use at their facilities to the maximum extent consistent with
the effective discharge of public responsibilities. Agencies located
in regions where electricity shortages are possible should conserve
especially during periods of peak demand. Agencies should report to
the President, through the Secretary of Energy, within 30 days on the
conservation actions taken.

The NEPD Group recommends that the President direct the Secretary of
the Trea-sury to work with Congress to encourage increased energy
efficiency through combined heat and power (CHP) projects by
shortening the depreciation life for CHP projects or providing
investment tax credits.

The NEPD Group recommends that the President direct the Administrator
of the Environmental Protection Agency (EPA) to work with local and
state governments to promote the use of well-designed CHP and other
clean power generation at brownfields sites, consistent with the local
communities' interests. EPA will also work to clarify liability issues
if they are raised at a particular site.

The NEPD Group recommends that the President direct the EPA
Administrator to promote CHP through flexibility in environmental
permitting.

The NEPD Group recommends that the President direct the Secretary of
Transporta-tion to:

--Review and provide recommendations on establishing Corporate Average
Fuel Economy (CAFE) standards with due consideration of the National
Academy of Sciences study to be released in July 2001. Responsibly
crafted CAFE standards should increase efficiency without negatively
impacting the U.S. automotive industry. The determination of future
fuel economy standards must therefore be addressed analytically and
based on sound science.

--Consider passenger safety, economic concerns, and disparate impact
on the U.S. versus foreign fleet of automobiles.

--Look at other market-based approaches to increasing the national
average fuel economy of new motor vehicles.

The new NEPD Group recommends that the President direct the Secretary
of Trans-portation to review and promote congestion mitigation
technologies and strategies and work with Congress on legislation to
implement these strategies.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress on legislation to increase energy
efficiency with a tax credit for fuel-efficient vehicles. The NEPD
Group recommends that a temporary, efficiency-based income tax credit
be available for purchase of new hybrid fuel cell vehicles between
2002 and 2007.

The NEPD Group recommends that the President direct all agencies to
use techno-logical advances to better protect our environment.

--The Administration remains committed to investing in Intelligent
Transportation Systems (ITS) and encourages the private sector to
invest in ITS applications. This Department of Transportation (DOT)
program funds the development of improved transportation
infrastructure that will reduce congestion, such as traveler
information/navigation systems, freeway management, and electronic
toll collection. ITS applications reduce fuel associated with travel.

--The Administration remains committed to the DOT's fuel-cell-powered
transit bus program, authored by the Transportation Equity Act for the
21st Century (TEA-21). This program demonstrates the viability of
fuel-cell power plants for transit bus applications.

--The Administration remains committed to the Clean Buses program.
TEA-21 establishes a new clean fuel formula grant program, which
provides an opportunity to accelerate the introduction of advanced bus
propulsion technologies into the mainstream of the nation's transit
fleet.

The NEPD Group recommends that the President direct the EPA and DOT to
develop ways to reduce demand for petroleum transportation fuels by
working with the trucking industry to establish a program to reduce
emissions and fuel consumption from long-haul trucks at truck stops by
implementing alternatives to idling, such as electrification and
auxiliary power units at truck stops along interstate highways. EPA
and DOT will develop partnership agreements with trucking fleets,
truck stops, and manufacturers of idle-reducing technologies (e. g.,
portable auxiliary packs, electrification) to install and use
low-emission- idling technologies.

The NEPD Group recommends that the President direct the Secretary of
Energy to establish a national priority for improving energy
efficiency. The priority would be to improve the energy intensity of
the U. S. economy as measured by the amount of energy required for
each dollar of economic productivity. This increased efficiency should
be pursued through the combined efforts of industry, consumers, and
federal, state, and local governments.

The NEPD Group recommends that the President direct the EPA
Administrator to develop and implement a strategy to increase public
awareness of the sizable savings that energy efficiency offers to
homeowners across the country. Typical homeowners can save about 30
percent (about $400) a year on their home energy bill by using Energy
Star-labeled products.

Chapter Five Energy for a New Century:

Increasing Domestic Energy Supplies

The NEPD Group recommends that the President direct the Secretaries of
Energy and the Interior to promote enhanced oil and gas recovery from
existing wells through new technology.

The NEPD Group recommends that the President direct the Secretary of
Energy to improve oil and gas exploration technology through continued
partnership with public and private entities.

The NEPD Group recommends that the President direct the Secretary of
the Interior to examine land status and lease stipulation impediments
to federal oil and gas leasing, and review and modify those where
opportunities exist (consistent with the law, good environmental
practice, and balanced use of other resources).

--Expedite the ongoing Energy Policy and Conservation Act study of
impediments to federal oil and gas exploration and development.

--Review public lands withdrawals and lease stipulations, with full
public consultation, especially with the people in the region, to
consider modifications where appropriate.

The NEPD Group recommends that the President direct the Secretary of
the Interior to consider economic incentives for environmentally sound
offshore oil and gas development where warranted by specific
circumstances: explore opportunities for royalty reductions,
consistent with ensuring a fair return to the public where warranted
for enhanced oil and gas recovery; for reduction of risk associated
with production in frontier areas or deep gas formations; and for
development of small fields that would otherwise be uneconomic.

The NEPD Group recommends that the President direct the Secretaries of
Commerce and Interior to re-examine the current federal legal and
policy regime (statutes, regulations, and Executive Orders) to
determine if changes are needed regarding energy-related activities
and the siting of energy facilities in the coastal zone and on the
Outer Continental Shelf (OCS).

The NEPD Group recommends that the President direct the Secretary of
the Interior continue OCS oil and gas leasing and approval of
exploration and development plans on predictable schedules.

The NEPD Group recommends that the President direct the Secretary of
the Interior to consider additional environmentally responsible oil
and gas development, based on sound science and the best available
technology, through further lease sales in the National Petroleum
Reserve-Alaska. Such consideration should include areas not currently
leased within the Northeast corner of the Reserve.

The NEPD Group recommends that the President direct the Secretary of
the Interior work with Congress to authorize exploration and, if
resources are discovered, development of the 1002 Area of ANWR.
Congress should require the use of the best available technology and
should require that activities will result in no significant adverse
impact to the surrounding environment.

The NEPD Group recommends that the President direct the Secretary of
the Interior to work with Congress and the State of Alaska to put in
place the most expeditious process for renewal of the Trans-Alaska
Pipeline System rights-of-way to ensure that Alaskan oil continues to
flow uninterrupted to the West Coast of the United States.

The NEPD Group recommends that the President direct the Secretary of
Energy to propose comprehensive electricity legislation that promotes
competition, protects consumers, enhances reliability, promotes
renewable energy, improves efficiency repeals the Public Utility
Holding Company Act, and reforms the Public Utility Regulatory
Policies Act.

The NEPD Group recommends that the President encourage FERC to use its
existing statutory authority to promote competition and encourage
investment in transmission facilities.

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 recommends 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 support the expansion of
nuclear energy in the United States as a major component of our
national energy policy. Following are specific components of the
recommendation:

--Encourage the Nuclear Regulatory Commission (NRC) to ensure that
safety and environmental protection are high priorities as they
prepare to evaluate and expedite applications for licensing new
advanced-technology nuclear reactors.

--Encourage the NRC to facilitate efforts by utilities to expand
nuclear energy generation in the United States by uprating existing
nuclear plants safely. - Encourage the NRC to relicense existing
nuclear plants that meet or exceed safety standards.

--Direct the Secretary of Energy and the Administrator of the
Environmental Protection Agency to assess the potential of nuclear
energy to improve air quality.

--Increase resources as necessary for nuclear safety enforcement in
light of the potential increase in generation.

--Use the best science to provide a deep geologic repository for
nuclear waste.

--Support legislation clarifying that qualified funds set aside by
plant owners for eventual decommissioning will not be taxed as part of
the transaction.

--Support legislation to extend the Price-Anderson Act.

The NEPD Group recommends that, in the context of developing advanced
nuclear fuel cycles and next generation technologies for nuclear
energy, the United States should reexamine its policies to allow for
research, development and deployment of fuel conditioning methods
(such as pyroprocessing) that reduce waste streams and enhance
proliferation resistance. In doing so, the United States will continue
to discourage the accumulation of separated plutonium, worldwide.

The United States should also consider technologies (in collaboration
with international partners with highly developed fuel cycles and a
record of close cooperation) to develop reprocessing and fuel
treatment technologies that are cleaner, more efficient, less
waste-intensive, and more proliferation-resistant.

The NEPD Group recognizes there is a need to reduce the time and cost
of the hydro-power licensing process. The NEPD Group recommends that
the President encourage the Federal Energy Regulatory Commission
(FERC) and direct federal resource agencies to make the licensing
process more clear and efficient, while preserving environmental
goals. In addition, the NEPD Group recognizes the importance of
optimizing the efficiency and reliability of existing hydropower
facilities and will encourage the Administration to adopt efforts
to-ward that end.

--Support administrative and legislative reform of the hydropower
licensing process.

--Direct federal resource agencies to reach interagency agreement on
conflicting mandatory license conditions before they submit their
conditions to FERC for inclusion in a license.

--Encourage FERC to adopt appropriate deadlines for its own actions
during the licensing process.

CHAPTER SIX Nature's Power:

Increasing America's Use of Renewable and Alternative Energy

The NEPD Group recommends that the President direct the Secretaries of
the Interior and Energy to re-evaluate access limitations to federal
lands in order to increase renewable energy production, such as
biomass, wind, geothermal, and solar.

The NEPD Group supports the increase of $39.2 million in the FY 2002
budget amendment for the Department of Energy's Energy Supply account
that would provide increased support for research and development of
renewable energy re-sources.

The NEPD Group recommends that the President direct the Secretary of
Energy to conduct a review of current funding and historic performance
of renewable energy and alternative energy research and development
programs in light of the recommendations of this report. Based on this
review, the Secretary of Energy is then directed to propose
appropriate funding of those research and development programs that
are performance-based and are modeled as public-private partnerships.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress on legislation to expand the
section 29 tax credit to make it available for new landfill methane
projects. The credit could be tiered, depending on whether a landfill
is already required by federal law to collect and flare its methane
emissions due to local air pollution concerns.

The NEPD Group recommends that the President direct the Secretary of
the Interior to determine ways to reduce the delays in geothermal
lease processing as part of the permitting review process.

The NEPD Group recommends that the President direct the Administrator
of the Environmental Protection Agency to develop a new renewable
energy partnership program to help companies more easily buy renewable
energy, as well as receive recognition for the environmental benefits
of their purchase, and help consumers by promoting consumer choice
programs that increase their knowledge about the environmental
benefits of purchasing renewable energy.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress on legislation to extend and expand
tax credits for electricity produced using wind and biomass. The
President's budget request extends the present 1.7 cents per kilowatt
hour tax credit for electricity produced from wind and biomass;
expands eligible biomass sources to include forest-related sources,
agricultural sources, and certain urban sources; and allows a credit
for electricity produced from biomass co-fired with coal.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress on legislation to provide a new 15
percent tax credit for residential solar energy property, up to a
maximum credit of $2,000.

The NEPD Group recommends that the President direct the Secretaries of
the Interior and Energy to work with Congress on legislation to use an
estimated $1.2 billion of bid bonuses from the environmentally
responsible leasing of ANWR for funding research into alternative and
renewable energy resources, including wind, solar, geothermal, and
biomass.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress to continue the ethanol excise tax
exemption.

The NEPD Group recommends that the President direct the Secretary of
Energy to develop next-generation technology -- including hydrogen and
fusion.

--Develop an education campaign that communicates the benefits of
alternative forms of energy, including hydrogen and fusion.

--Focus research and development efforts on integrating current
programs regarding hydrogen, fuel cells, and distributed energy.

--Support legislation reauthorizing the Hydrogen Energy Act.

The NEPD Group recommends that the President direct the Secretary of
the Treasury to work with Congress to develop legislation to provide
for a temporary income tax credit available for the purchase of new
hybrid or fuel-cell vehicles between 2002 and 2007.

The NEPD Group recommends that the President direct the Administrator
of the Environmental Protection Agency to issue guidance to encourage
the development of well-designed combined heat and power (CHP) units
that are both highly efficient and have low emissions. The goal of
this guidance would be to shorten the time needed to obtain each
permit, provide certainty to industry by ensuring consistent
implementation across the country, and encourage the use of these
cleaner, more efficient technologies.

CHAPTER SEVEN America's Energy

Infrastructure: A Comprehensive Delivery System

The NEPD Group recommends that the President direct the Secretary of
Energy to work with the Federal Energy Regulatory Commission (FERC) to
improve the reliability of the interstate transmission system and to
develop legislation providing for enforcement by a self-regulatory
organization subject to FERC oversight.

The NEPD Group recommends that the President direct the Secretary of
Energy to expand the Department's research and development on
transmission reliability and superconductivity.

The NEPD Group recommends that the President direct the Secretary of
Energy to authorize the Western Area Power Administration to explore
relieving the "Path 15" bottle-neck through transmission expansion
financed by nonfederal contributions.

The NEPD Group recommends that the President direct the appropriate
federal agencies to take actions to remove constraints on the
interstate transmission grid and allow our nation's electricity supply
to meet the growing needs of our economy.

--Direct the Secretary of Energy, by December 31, 2001, to examine the
benefits of establishing a national grid, identify transmission
bottlenecks, and identify measures to remove transmission bottlenecks.

--Direct the Secretary of Energy to work with FERC to relieve
transmission constraints by encouraging the use of incentive
rate-making proposals.

--Direct the federal utilities to determine whether transmission
expansions are necessary to remove constraints. The Administration
should review the Bonneville Power Administration's (BPA's) capital
and financing requirements in the context of its membership in a
regional RTO, and if additional Treasury financing appears warranted
or necessary in the future, the Administration should seek an increase
in BPA's borrowing authority at that time.

--Direct the Secretary of Energy, in consultation with appropriate
federal agencies and state and local government officials, to develop
legislation to grant authority to obtain rights-of-way for electricity
transmission lines, with the goal of creating a reliable national
transmission grid. Similar authority already exists for natural gas
pipelines in recognition of their role in interstate commerce.

The NEPD Group recommends that the President direct the Secretary of
the Inte-rior to work with Congress and the State of Alaska to put in
place the most expeditious process for renewal of the Trans-Alaskan
Pipeline System lease to ensure that Alaskan oil continues to flow
uninterrupted to the West Coast of the United States.

The NEPD Group recommends that the President direct the Secretaries of
Energy and State, coordinating with the Secretary of the Interior and
the Federal Energy Regulatory Commission, to work closely with Canada,
the State of Alaska, and all other interested parties to expedite the
construction of a pipeline to deliver natural gas to the lower 48
states. This should include proposing to Congress any changes or
waivers of law pursuant to the Alaska Natural Gas Transportation Act
of 1976 that may be required.

The NEPD Group recommends that the President support legislation to
improve the safety of natural gas pipelines, protect the environment,
strengthen emergency preparedness and inspections and bolster
enforcement.

The NEPD Group recommends that the President direct agencies to
continue their interagency efforts to improve pipeline safety and
expedite pipeline permitting in an environmentally sound manner and
encourage FERC to consider improvements in the regulatory process
governing approval of interstate natural gas pipeline projects.

The NEPD Group recommends that the President direct the Administrator
of the EPA to study opportunities to maintain or improve the
environmental benefits of state and local "boutique" clean fuel
programs while exploring ways to increase the flexibility of the fuels
distribution infrastructure, improve fungibility, and provide added
gasoline market liquidity. In concluding this study, the Administrator
shall consult with the Departments of Energy and Agriculture, and
other agencies as needed.

The NEPD Group recommends that the President direct the Administrator
of the Environmental Protection Agency and the Secretary of Energy to
take steps to ensure America has adequate refining capacity to meet
the needs of consumers.

--Provide more regulatory certainty to refinery owners and streamline
the permitting process where possible to ensure that regulatory
overlap is limited.

--Adopt comprehensive regulations (covering more than one pollutant
and require-ment) and consider the rules' cumulative impacts and
benefits.

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 interpretation 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 supports the President's budget proposal to provide $8
million to maintain the two-million-barrel Northeast Heating Oil
Reserve. Operated by the private sector, the Reserve helps ensure
adequate supplies of heating oil in the event that colder than normal
winters occur in the Northeast United States.

(end text)

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