Suggested Action Plan to Meet the Western Electricity Crisis
and Help Build the Foundation for a National Energy Policy
Action Plan Delivered by Vice President Cheney on February 27

1. Permitting energy facilities – Direct federal agencies to partner with Western sates to expedite regulatory processes governing the operation of existing powerplants and the construction of necessary new energy infrastructure. This includes:

• EPA permits governing operation of existing powerplants and new powerplants;
• Federal interface with states on fish management and hydro operations;
• Interior Department and Forest Service on the processing rights-of-way;
• FERC processing of natural gas pipeline applications.

2. Reliability legislation – Enact before summer federal electric system reliability legislation, such as last year’s Senate bill making reliability standards enforceable.

• Delegates to the West authority to devise standards and allows federal deference.
• Governors create state bodies to advise industry and FERC on reliability standards.

3. Low-income energy assistance – Increase federal funding for low-income energy assistance and low-income weatherization.

• Increased natural gas and electricity prices have caused major hardship.
• Expected high electricity prices this summer will exacerbate hardship in the West.

4. Energy production and efficiency tax credits and federal R&D – Federal action is needed to encourage the development of cleaner, more efficient powerplants and more efficient use of energy.

• Adopt energy efficiency tax credits to complement the Western state efforts to reduce demand this summer.
• Extend and expand wind production tax credit to geothermal, solar, and biomass.
• Adopt tax incentives for advanced coal use.
• Expand federal fossil and renewable energy R&D.

• Standards adopted by DOE in January (for clothes washers, water heaters, residential air conditioning and heat pumps) are a step in the right direction.
• Grant waivers for stronger state standards, such as California’s air conditioner and commercial appliance standards.

6. Administration – WGA cooperative agreement – Implement a multi-year cooperative agreement with Western Governors.

• Agreement enhances Western states’ standing with federal agencies and serve as a vehicle for federal funding on key energy issues.
• The cooperative agreement would include: expanding electrical generations, building needed energy infrastructure, and improving the efficiency of energy use.
• The cooperative agreement would extend to states cooperating agency status for NEPA reviews on energy projects.