MULTIPOLLUTANT LEGISLATION FOR ELECTRIC UTILITIES

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Environmental Summit on the West II April 24-26,
2002 Salt Lake City, Utah Breakout Group
Recommendations to Policy Roundtable Revised
Agenda and Materials
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Overall Themes

• Implementation of the Enlibra Principles is
  moving ahead on many diverse fronts the
  activities are exciting and innovative.
• Effective application takes bipartisan leadership
  and commitment from all stakeholder sectors and
  levels of government and a lot of hard work and
  resources (time, people and money).
• Non-governmental stakeholders should drive the
  use of Enlibra when effective partnerships can be
  created.
• Important for leadership to assist in determining
  whose process is it and the appropriate level
  of scale for the application of the principles.
• Stakeholders and leaders need to work to ensure
  the broadest possible participation.
• Othersto be determined at Policy Roundtable

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MULTI-POLLUTANT LEGISLATION FOR ELECTRIC
UTILITIES

• Continue to work on issues through a western,
  stakeholder process to achieve consensus
• Engage with Administration and Congress to ensure
  western issues are addressed in legislation
• Key issues for western interests
• Need details on proposed regulatory changes (NSR,
  etc.)
• Agree on option to preserve WRAPs SO2 program
• Determine appropriate NOx program for the West
• Ensure fair allocations for western states and
  tribes address new sources and credit for early
  reductions
• Address needs of non-utility sources

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COALBED METHANE

• Key Messages
• CBM situation is polarized, but participants are
  optimistic that collaborative processes can work.
  
• Collaboration must be streamlined, power
  balanced, time dilemmas understood, long and
• short term goals prioritized.
• Private/surface owner relationships are an issue
  for all parties.
• Best practices are out there, but inconsistently
  applied.
• More information and data sharing.

Collaboration BMP workshops convened by WGA
(WRAP-type model) - Surface owner relations -
Operational practices - Surface stewardship -
Specifics on geographic areas - Split estate
issues - Enforcement issues
Rewards - Surface property rights - Emphasize
positive outcomes, success stories - Positive
incentives

• Science, process
• - Central database, technology transfer
• Objective dependable research and
• baseline information
• - Produced water management

• Standards
• Enforce and update existing laws
• - Innovative enforcement (self-certification)
• - Adequate inspections
• - Appropriate actions

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Permitting Interstate Transmission

• Collaborative draft protocol will work.
• BLM/FS ready to participate (except need).
  Protect confidentiality, reassess deadlines, and
  avoid delays.
• DOD, EPA, FERC, USFWS, DOE should consider
• Include mechanism for public in project teams
• Include line upgrades and line maintenance
• Digitize, standardize and publish information
• Need regional planning process that precedes
  protocols project-by-project review process
• Determine need (including generation location)
• Clarify who should pay for new transmission
• Recognize constraints from existing
  infrastructure and processes (e.g., existing
  corridors)
• Protocol and planning process should provide
  predictability and certainty.

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Siting of Energy Infrastructure

• Coordination and Collaboration between state and
  federal agencies
• Governors must exercise more leadership in
  getting state agencies to coordinate
• Standardize deadlines and sequenced review
  infuse a culture of getting the job done. Reward
  results
• An effective process must include all
  typesgeneration, pipelines, transmission,
  construction, maintenance

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Siting of Energy Infrastructure (continued)

• Use funding from applicants to support analyses.
  Good analyses promote good decisions
• Develop North American Energy Strategy that
  includes opportunities between all three
  countries
• Perform a consolidated environmental review so
  all agencies are working from the same document.
  Environmental understanding is crucial.

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Renewable Energy Credits

• FINDINGS
• RECs are flexible tools that improve the
  efficiency of market transactions.
• RECs should be used in conjunction with other
  strategies.
• RECs need clear definitions and credible
  registry.
• Facilitates transactions.
• Maintain confidence in the REC.
• RECs enhance the effectiveness of public policies
  to increase demand renewable energy.

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REC RECOMMENDATIONS

• Western Governors should
• Consult with Tribal governments.
• Recognize western interconnect as appropriate
  geography for registry.
• Support development of regional generation
  tracking system.
• Endorse a single REC accrediting body.

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Renewables on Federal Lands

• Need better scientific resource assessment and
  reduce time in leasing and permitting.
• Recommendations
• Zoning of areas for renewable development
• Programmatic EIS to address generic issues
• Adequate agency resources and more information
  supplied by applicants
• BIA/BLM collaboration
• National policy on BLM/FS wind leasing
• Collaborative multi-interest task force on
  permitting policies
• Timelines for agency action
• Point agency/point persons

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Renewables continued

• Open military lands for geothermal development
• Seek opportunities for agencies to purchase/use
  renewables
• Information clearinghouse among NGOs
• Market incentives
• Expand production tax credit
• Consider state/regional Renewable Portfolio
  Standards
• Exemption PVs from sales tax

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Species Conservation

• 1) Governors support of collaborative processes
  is critical to create the climate for success
• 2) Funding is needed for collaborative planning,
  studies, and implementation
• 3) Significant action soon is essential need to
  be proactive in addressing species issues
• 4) Need to ensure results/implementation of
  collaborative processes - and that they are not
  derailed at the last minute
• 5) Make room for experimental actions eg
  provide Pilot authority
• 6) Need for shared responsibility costs and
  decision making
• 7) Need to use adaptive management principles,
  including sound science

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Species (continued)

• 8) Governors need to encourage relevant local,
  state, federal agencies to be players in
  collaborative efforts, and to make sure of
  appropriate financing.
• 9) Multiple species conservation plans should be
  encouraged
• 10) Accommodate local solutions in federal and
  state decisions
• 11) Build on Safe Harbor provisions - Section
  10 Permitting Interstate Transmission

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Recommendations from Meeting Growing and
Competing Demands for Water

• Link watershed planning with local entities
• Fund watershed initiatives
• Redirect funding to on-the-ground projects
• Support Indian water right settlements
• Two Indian water right settlements per Congress
• Enact National Drought Preparedness Act
• Collaborative science investigations
• Early implementation and adaptive management

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Land Conservation

• Lessons learned
• Partnerships work.
• Funding is necessary for success.
• Creative approaches are critical.
• Recommendations
• Reward and support () community level
  partnerships.
• Use coalitions (like WGA) to support land
  conservation legislation (e.g. Forest Legacy,
  Farm Bill).
• Use land trades, pooling agreements, land
  purchases and land sales
• Fund conservation easements, land acquisition,
  including operating costs.
• Fund statewide measures including public funding.
• Pass state tax credits.
• Find better ways to value aesthetics,
  environmental benefits, etc.
• Explore conditional or short-term conservation
  easements.
• Continue to expand tool box.

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Land Conservation (cont)Decision Support
Systems

• Use the technology in land use planning for
  private and public lands.
• Secure funding for comprehensive baseline data
  and acquire it.
• Use DSS in budgeting for land conservation.
• Provide access to tools and training for rural
  America.
• Incorporate community values in DSS (e.g. scenic
  values, community/cultural heritage, working
  landscapes, recreating).
• Include local expertise in DSS tools.
• Create incentives to include science in planning.

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Industrial Environmental Innovations Value for
Community, Global and Bottom Line Strategies for
Industrial Production

• Provide incentives to encourage innovation at
  all levels of government
• Create flexibility and allow creativity with
  accountability in regulatory programs to allow
  for innovation
• Encourage the use of innovative technologies and
  processes that turn waste into product
• Provide a forum for information sharing between
  stakeholders on lessons learned in collaborative
  processes (WGA)
• Support collaboration across state lines on
  innovative environmental technologies (WGA)

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Wildland Fires

• Lessons learned
• Collaboration is keyarises from need or crisis
• Start small, in zone of agreement, to build
  trust. It takes time.
• Incentives are necessary
• Leadership helps get parties to the table
• Apply good science
• Coordinate at community level between supply,
  investment and capacity
• Align with community culture and context
  identify needs and capacities.
• To date, projects usually require incentives,
  subsidies and investments
• Recommendation
• We want to send a clear message to
  decision-makers that we want to use
  collaborative, place-based processes and retain
  the opportunity to both reduce wildland/urban
  interface hazards and restore fire-prone forest
  ecosystems. We dont want to lose capacity to
  make prudent, rational decisions at the local
  level.

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