Washington (Platts)--11Jun2007

US western state governors on Sunday called on the federal government to
provide "adequate" funding to develop technologies capable of safely and
permanently storing carbon dioxide underground.

     At the Western Governors' Association's annual meeting in South Dakota,
the state leaders said they will work with Congress and the Bush
administration to put carbon sequestration technology on a fast track and
called for tax credits and funding necessary to "expedite large-scale
projects, identify and develop the pipeline infrastructure needed and resolve
issues related to risk and liability."  

     Wyoming Governor Dave Freudenthal, vice chairman of the WGA, said "there
are a large number of uncertainties surrounding carbon sequestration. Among
the questions that have to be answered is how long it will take to complete
large-scale testing. We also have to get a handle on the costs and how those
costs are allocated to ratepayers and others."

     The governors' call for stepped up funding for carbon sequestration was
contained in a broad resolution that also committed WGA to work with "all
levels of government, non-profit groups and the private sector, such as
homebuilders, to find more expeditious ways to achieve energy efficiency
savings from residential and public buildings."

     In the resolution, the governors also directed staff to work with
stakeholders to accelerate deployment of near-zero, advanced coal
technologies, adding that they will ask Congress to implement and expand some
of the federal tax credits embodied in the Energy Policy Act of 2005,
"especially recognizing that a wide range of near-zero emissions coal
technologies should be eligible for credits."

     In addition, WGA said it will seek congressional funding for research and
development of new turbine advancements for traditional hydro power and for
emerging hydrokinetic ocean technologies. 

     The WGA also said it will "advise Congress that if it adopts a federal
renewable portfolio standard, it should not limit any state's ability to
develop the most advantageous mix of clean energy resources." The resolution
was specific that no one required to meet a federal renewable portfolio
standard should be exempted from meeting state standards.