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Jim Ford (Federal Relations Director of the American Petroleum Institute) Directives for Bush Administration Regarding Energy Policy Implementation) March 20, 2001 to Joseph Kelliher (Senior Policy Advisor to the Secretary of Energy)

From Jim Ford to Joseph Kelliher

March 20, 2001

Subject: Statement on Energy Policy Implementation

Importance: High

As we discussed, please find attached short paper on the U.S. oil and natural gas supply situation, together with a list of steps that the Administration could take to alleviate the situation. I will send you additional materials under separate cover.

Jim Ford
Federal Relations Director
American Petroleum Institute

Available Administrative Actions on National Energy Policy in the Oil and Natural Gas Sectors

Require Executive Branch agencies to avoid significant adverse energy consequences in proposing regulatory and other administration actions.

Require Executive Branch agencies to review existing rules and policies and revise them as necessary to eliminate significant adverse energy consequences.

Make energy policy a key assignment for a senior White House aide.

Direct the Interior Department, in consultation with other federal land management agencies and the Energy Department, to complete the inventory of federal oil and natural gas resources mandated by the 2000 amendments to the Energy Policy and Conservation Act.

Direct the Energy Department, in consultation with the federal public land management agencies, to identify administration barriers to timely exploration and development of federal oil and gas resources and take steps to remove those barriers.

Provide a “strike force” to complement existing staff of public land management agencies to immediately reduce the tremendous backlog of pending applications for permits to develop federal and oil leases, to revise resource management plans, and to complete required environmental analyses. Ultimately, provide adequate staffing/resources to maintain and expedited timetable for these activities.

Direct the Interior Department to expand royalty-in-kind (RIK) programs onshore and offshore, with any RIK oil to be transferred into the Strategic Petroleum Reserve.

Maintain the December 2001 schedule for OCS Lease Sale 181.

Grant California’s request to the Environmental Protection Agency for a waiver from the Clean Air Act’s oxygen mandate for reformulated gasoline.

Ensure that the first annual report from the advisory group to EPA on technological feasibility (equipment and construction resources) of the on-road diesel sulfur rule includes meaningful conclusions and recommendations that the agency can use quickly to decide whether modifications should be made to avoid adverse fuel supply and price consequences.

Direct the Labor Department, in consultation with the Energy Department, to develop recommendations for a job training program designed to fill employment needs in the oil and natural gas industry.

Direct the Office of Management and Budget to determine whether fiscal 2001 funds could be reprogrammed to increase grants to states for low-income heating and weatherization assistance.

Direct OMB to determine whether funds could be reprogrammed to ensure full funding of U.S. Coast Guard nautical charting programs and Corps of Engineers harbor maintenance activities to ensure that tankers can move needed petroleum products safely and expeditiously.

The information above can be located on Page 16 of 26. There were a couple of typos – I did not correct them.

SAFE DRINKING WATER ACT

Hydraulic fracturing is a vital technology that is used in over half of the natural gas wells in the country. Current litigation over the regulation of this activity could dramatically increase the cost of this technology and limit natural gas production in some areas of the country. Clarification is needed for the Safe Drinking Water Act’s underground injection control provisions to exclude coverage of hydraulic fracturing. This would allow states to continue to regulate hydraulic fracturing under their oil and gas regulatory programs.

Recommendation: Amend Section 1421 (d)(1) of the Safe Drinking Water Act (42 U.S.C. 300 h (d)) to clarify that the term underground injection does not include hydraulic fracturing similar to S. 724 in the 106th Congress.

Located on Page 20

To access these extraordinary documents click on the link below. Special thanks to the NRDC for making these available for public viewing by utilizing the Freedom for Information Act.


Jim Ford (Federal Relations Director of the American Petroleum Institute) Bush Administration Directives Regarding Energy policy Implementation) March 20, 2001

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