MEMORANDUM OF UNDERSTANDING AMONG THE
PRESIDENT’S NATIONAL ENERGY POLICY DEVELOPMENT GROUP
AND ITS MEMBER OFFICES AND AGENCIES
AND THE 
WESTERN GOVERNORS' ASSOCIATION AND ITS MEMBER STATES
REGARDING ENERGY DEVELOPMENT AND CONSERVATION 
IN THE WESTERN UNITED STATES 

I. Purpose 

The purpose of this Memorandum of Understanding (MOU) is to establish a framework for cooperation between Western States and the Federal government to rapidly resolve immediate energy shortages and longer-term energy problems facing the West.  This effort will involve the States and the Federal government.  Other stakeholders may be called upon from time to time to provide advice. The regional approach will serve as a demonstration of principles and practices, which may be adopted nationally or in other regions. 

II. Objective 

To encourage cooperation among the President’s National Energy Policy Development Group (NEPDG), its member offices and agencies, the Western Governors' Association (WGA) and its members states for the following purposes:

1. Improving intergovernmental systems that authorize and enable planning, financing, permitting and siting of energy facilities; 
2. Increasing energy supplies;
3. Building needed energy infrastructure; and 
4. Increasing the efficiency of energy use. 

III. Background 

Energy prices and supplies in the Western United States have become uncertain and highly volatile over the past year. Electricity and natural gas transmission systems may no longer be adequate to provide reliable, secure energy to citizens, businesses and governmental and national defense facilities.  Due to unique Western land ownership patterns, widely dispersed population centers and government facilities, and the isolated nature of the Western Interconnection for electricity transmission, this situation poses unique policy, management, and investment problems that must be addressed to ensure protection of public health, welfare, the environment and national security. 

The Nation's energy policy must be broad-based and flexible so that each state and region in the nation can maximize its contributions to the economy and well-being of its citizens.  The signatories to this agreement and the offices, agencies and states they represent are committed to carrying out both short and long-term, cost-effective efforts to resolve the energy crisis in the Western States. This may involve: obtaining and sharing necessary public information relating to energy markets and emerging energy technologies; identifying and implementing cooperative strategies for research, development, demonstration and adoption of policies, procedures and programs that will ensure delivery of new energy supplies, greater efficiency, more sustainable conservation practices and new or improved energy technologies; and assessing the effectiveness of implementation policies and practices. 

The signatories are committed to market-based approaches so that the selection and financing of energy facilities and strategies, including those for research and development, will be based on wide competition, broad participation and market discipline. The signatories seek a regional, integrated, cooperative approach to identifying solutions to problems. The proposed approach for this MOU will bring together the signatories or their designated representatives to share information and collaborate to the extent permitted by law. 

IV. Authorities 

Nothing in this MOU alters the responsibilities or statutory authorities of NEPDG and its member offices and agencies, or the WGA, and its member States and insular areas.  This MOU does not supersede existing agreements among any of the signatories. 

V. Responsibilities 

The signatories agree to prepare a workplan and provide an annual report to identify and list by priority energy needs and requirements.  The workplan and report will identify and assess governmental approaches, including regulatory practices that affect the development of energy supply, conservation and efficiency in the West. The report will consider current funding levels and allocations for governmental energy activities, the most pressing energy production, transmission and efficiency problems, and identify for demonstration and/or implementation the most promising new solutions. 

The report will be completed and submitted to the signatories no later than February of each year for use as a resource in the formulation and review of the states’ and nation's energy policies. 

The signatories agree that this MOU may serve as a prelude to other regional or National programs for identifying and implementing needed new, cost-effective energy strategies for development and deployment.  

VI.            Authentication

 This MOU becomes effective upon its signature by all parties.  The MOU will continue in effect for three (3) years or until modified by mutual consent.  Participation by any signatory member may be terminated at the request of any signatory with ninety (90) days prior notice.

FOR THE NATIONAL ENERGY POLICY DEVELOPMENT GROUP AND ITS MEMBER OFFICES AND AGENCIES 

Vice President of the United States                                           Date

FOR THE WESTERN GOVERNORS’ ASSOCIATION AND ITS MEMBER STATES

Chairman of the Western Governors' Association                         Date                          

Vice Chair of the Western Governors' Association                          Date

Lead Governor of the Western Governors' Association                      Date

Lead Governor of the Western Governors' Association                        Date