We all know about the great work Tom Kuhn is doing in managing the Edison Electric Institute. I also know Tom in another capacity . . . and that is his work to improve our National Parks.

At my invitation, Tom has become a board member of the National Park Foundation. This foundation provides more than $31 million each year in charitable contributions to national parks across the country. Tom, thank you for your service in providing energy and protecting our treasured parks.

Tom tells me that I may be the first Secretary of the Interior to speak to this group. So, perhaps you'll need a quick review of my Department.

The best description of my Department came from President Ronald Reagan, whose life and work we honor this week. One of my personal heroes.

The Great Communicator who pointed out that only in Washington would the Department in charge of everything outdoors be called the Department of the Interior.

It is true. We are the Department of Everything Outdoors. The Interior Department's 70,000 employees manage one fifth of the land in the United States, making us the nation's largest landlord. We have 388 National Parks and more than 560 Wildlife Refuges.

But we do more than just manage land. We work with 562 Indian tribes through the Bureau of Indian Affairs. We also oversee the nation's largest natural resources scientific agency and have responsibility for the Virgin Islands in the Atlantic, and U.S. territories in the Pacific.

Of greater interest to you, is that the public lands and waters we manage provide almost a third of the nation's energy production. That's right, a third of domestic energy production. If your utilities use coal, natural gas or hydropower, the Department of the Interior plays a key role in the energy you provide.

Let me be more specific:

You produce more than 50% of the nation's electricity from coal.

" 40% of the coal you use comes from public lands.

" At Interior, the Bureau of Land Management is responsible the multiple use lands - the working lands of the West. They handle all coal leases on Federal lands.

" Interior's Office of Surface Mining regulates coal production on public and private lands. They work with 24 coal producing states and 2 Indian tribes to protect citizens and the environment during mining and reclamation.

You produce about 20% of the nation's electricity from natural gas. Again, Interior agencies are at the forefront of this part of the energy portfolio.

" BLM-managed lands supply 11% of total natural gas production.

" Oil and gas production in coastal waters is managed by Interior's Minerals Management Service. This offshore activity, primarily in the Gulf of Mexico, provides 25% of America's natural gas.

You produce 7% the nation's electricity from hydropower.

The energy bill is a vital component of the President's energy policy. It deserves the full attention of the Congress - in both the House AND the Senate. Talked with House leadership recently, and anticipate action soon.

While this nation has been awaiting Congressional action on the energy bill, the Administration has moved ahead to put in place some of the key recommendations of the National Energy Policy through administrative action.

For example, last year BLM issued approximately 900 oil and gas rights of way and 260 electric transmission rights of way. We reduced the backlog of pending energy right of way applications by over 40% in one year.

We have been working with alternative and renewable energy producers on wind, solar, geothermal, and biomass energy projects on public lands.

Let me focus on natural gas. Today, 99% of the natural gas we use is produced in North America - 84% produced at home, 15% from Canada. Only 1% of our natural gas supply is imported - liquefied natural gas.

90% of our new power plants are projected to be fueled by natural gas; those new plants are just one component of the growing demand. The demand for clean-burning natural gas is accelerating, resulting in higher costs.

During the next 20 years, U.S. gas consumption is projected to grow by more than 50%. During those same 20 years, domestic gas production is expected to grow by only 14%.

That's a sizeable gap that is expected to open between gas supply and demand. It has a direct impact on our nation's economy and our ability to create new jobs.

Problem well-known in energy industry, but little public attention until Federal Reserve Chairman Alan Greenspan raised the issue. When Chairman Greenspan talks, people listen. I met with him a few months ago to talk about high natural gas prices, and how they can create serious economic impacts for yours and other industries.

You know what Chairman Greenspan is talking about. Many of you have had lengthy debates about whether to rely on natural gas as a future fuel source.

Because Interior provides such a large share of America's natural gas, a fair question is "what is Interior doing to provide reliable sources of natural gas?"

We are working to escalate domestic production on Federal lands and waters in an environmentally responsible way. For long term, involved with offshore siting of liquefied natural gas processing facilities and a natural gas pipeline from Alaska.

2 areas that will be helpful in short term.

Shallow waters in gulf, deeper geologic formations from existing wells. I have announced new incentives for the development of natural gas found in these deep wells - at least 15,000 feet below the surface. It's a new frontier in domestic gas production in the Gulf of Mexico.

These incentives are encouraging companies to increase investment, with a savings of $5 billion for consumers during the next decade - creating as many as 26,000 jobs.

Coal bed natural gas in Rocky Mountain West. Shallow wells, so can be produced quickly.

This administration is committed to offshore exploration and energy development utilizing the most environmentally sensitive methods. Discuss challenges more in a few minutes.

Many of you burn coal in your utilities. Coal will remain the workhorse of energy production. America has 250 years of coal supply reserves. Coal has had low and stable prices.

While the use of coal has been rising rapidly, air pollutants from coal-fired electric plants have sharply declined.
" Ash and soot (particulates) - reduced by 97%;
" Sulfur dioxide emissions (acid rain) down about two-thirds;
" Oxides of nitrogen (smog) down by about one-third.

Continuing progress is critically important, which is why the President remains committed to the market-based, common-sense principles of the Clear Skies Initiative.

Clear Skies mandates a 70% cut in air pollution from power plants over the next 15 years including the first-ever national cap on mercury emissions.

As you may know, Congress has not acted on the Clear Skies plan. But the President has. He directed his Administration to enact a regulatory regime to achieve many of the goals of the Clear Skies Initiative. These goals are being met on an integrated timetable so that all pollutants are being addressed, and so you can do your capital planning in a rational fashion to meet these environmental requirements.

Another program that will make the air even clearer is the President's Clean Coal Initiative. The Clean Coal Initiative is a 10-year, $2 billion effort that funds research into new innovations - innovations that will allow coal to remain a key ingredient of our domestic energy picture.

These projects will assure that our most abundant fossil fuel resource - coal - can continue as a backbone of our electrical supply. Interior is working to make certain a stable supply of coal is available to meet this future market demand.

At Interior, one of our major goals is to achieve long-term regulatory certainty for energy production. We seek full coordination among states, tribes, and all Federal agencies in writing rules that are fair, environmentally protective and make common sense. We listen to CEO's, consumers and conservationists in writing the best rules possible.

As senior executives, you must make long-term capital investments. You need a long-term regulatory environment in which to operate. //

Now, I would like to focus on the unique aspects of Interior's energy production and how you can help. I want to encourage you to be involved in land use planning decisions. These decisions have a direct impact on energy development in the West.

Onshore production - not "how much energy do we need? Where does it make the most sense to get it?" Instead based on land use planning process. To increase energy production, we embarked on a multi-year effort to revise 11 BLM land use plans in areas likely to hold significant reserves.

In Rocky Mountain West, about 40% of gas and oil reserves are off-limits. We certainly do not advocate new production under lands like parks or wilderness areas. But that puts more emphasis on other 60%.

Energy companies do not have a direct interest until after land use decisions are made and we lease the land. So - many times - the energy perspective is not represented.

We hear from people who want to backpack or fish. We hear from people concerned about wildlife habitat. These are valuable perspectives, and we need to hear them. We even hear from people who have never seen the area, but responded to a direct mail plea about it.

But we don't get regular input from the people who use energy - the people who need natural gas to warm their homes or oil to make gasoline for their family vacations.

We don't hear from those - like you -- who understand the energy marketplace and know we need to produce energy in an environmentally responsible manner. Unless we hear from you, we cannot consider your perspective as we are making our decisions.

Our land management approach means we also must consider land-based issues like wildlife habitat. Example of how important land use-related decisions can be:

One issue on the horizon in eleven western states is whether to list the sage grouse as an endangered species. This bird's natural habitat is sagebrush - and there are estimates that more than 80% of sagebrush ecosystems have been lost or altered in some way over the years.

Some say the grouse could become the Spotted Owl of the Intermountain West…but the sage grouse occupies nearly 12 times as much land as the northern spotted owl.

Coal mining, natural gas production, electric transmission corridors, they are all right in the middle of sagebrush habitat in the West, so a sage grouse listing may have significant impacts for your industry.

2 questions FWS must consider: (1) whether biology shows populations seriously declining, (2) whether there are sufficient conservation measures in place to protect the species, without an endangered species listing.

Working with states, Cattlemen's Association, and others on conservation projects. To help prevent the sage grouse from becoming listed as an endangered species, we must minimize the impacts of energy production, electric generation and transmission on its habitat.

Just one example.

The bottom line is this - we need your involvement. Our land use plans and environmental decision-making address areas that are critical to our nation's energy future.

I urge you to become involved in this planning process. As an industry, your thoughts, your real world expertise is needed so that the information is there for sound decision-making.

You have a nationwide network that can provide the kind of localized input that is very helpful. You have the ability to communicate with millions of individual Americans about the relationship between land use decisions and their ability to flip on a light switch or air conditioner.

I know you have all worked hard to educate consumers about energy and the environment. We still have a lot of work to do.

Offshore. An Edison Electric Institute survey last fall found that 68% of Americans believe air quality is getting worse, instead of better. But the United States has become the pacesetter in environmentally responsible energy development.

All of us need to commit ourselves to being better communicators. We must explain the realities of energy production in all forums. We must explain in plain language that our air is cleaner now than it was 20 years ago and that we are committed to making it even cleaner 20 years from now.

We must explain in print, radio, television and the Internet, in town hall meetings and across backyard fences that we can have energy to supply our homes and create jobs, while we maintain a spectacular natural world.

If we work together, we can assure energy for America's future.

I appreciate your leadership and your dedication to providing the energy America needs.

Thank you.