MAY 2001

Introduction:

This addendum to the Memorandum of Understanding (MOU) of May __, 2001 regarding energy development and conservation in the western states establishes a plan for initial implementation of the MOU.

This plan is intended to create the mechanisms necessary to implement the MOU and provide a legal and accepted basis to pursue regional cooperative efforts.

Proposed Approach:

First working independently, and then jointly, the Federal agencies and WGA will accomplish tasks in four areas in FY 2001-2004:

Task 1: Improve intergovernmental systems

• Establish policies that upon request extend NEPA cooperating agency status to states for energy project reviews as a matter of routine practice and provide funding to states to participate.  
• Develop information to enable the timely development of alternatives for evaluation in EISs.

• Establish integrated state-federal processes for the shared development of energy plans, programs, policies and projects.

• Develop processes for the effective participation by key stakeholders in the consideration of energy issues.

• Investigate the application of information technologies to siting and permitting functions for energy facilities.

• Develop a budget and plan for accomplishing Tasks 1, 2, 3 and 4.

• Establish mechanisms for key stakeholder participation in the execution of Tasks 2, 3 and 4.

Task 2:  Increase energy supplies

• Enable the operation of existing generation through expedited permit decisions affecting the operation of existing and retired generation while protecting the public health.

• Enable the deployment of distributed generation through the identification of practices in the western power system that create barriers to distributed generation and the adoption of practices to overcome such barriers, such as standardized interconnection practices and information necessary for local zoning decisions.

• Streamline permitting of new renewable and fossil energy generation and associated electric transmission and natural gas pipelines.

• Speed the permitting of new, cleaner and more efficient technologies including the development of information necessary for agency reviews of the performance of new technologies and the sharing of such information among state and federal permitting agencies.

• Expand the efficient production and use of natural gas, oil, and coal through the development of new technologies and the timely permitting and leasing of resources.

Task 3: Build needed energy infrastructure

• Identify and evaluate the bottlenecks in western energy system (e.g., electric transmission, natural gas and petroleum pipelines).

• Determine financial impediments to investment in necessary to eliminate bottlenecks in the western energy system.

• Seek opportunities to deploy new technologies to relieve bottlenecks.

Task 4: Improve the efficiency of energy use

• Coordinate federal agency efficiency efforts with state energy efficiency initiatives.

• Collaborate in evaluations of the effectiveness of energy efficiency initiatives in the West.

• Seek opportunities to identify and conduct pilot projects to test the implementation of new programs and technologies to increase energy efficiency.