Below is a copy of a mass e-mail sent by the governor's chief of staff, Stan Cave. My reporting follows:

-----Original Message-----
From: Slone, Ty S (Gov Office) [mailto:TyS.Slone@ky.gov]
Sent: Friday, July 06, 2007 5:47 PM
Subject: CALL TO ACTION--Enact Energy Bill Now

July 6, 2007

Dear Friends,

Governor Fletcher asked that I write to you on his behalf concerning the special session and specifically the energy bill. If the energy bill is enacted, we will have a chance to attract an alternative energy facility to Kentucky. This could mean billions of dollars in investments and thousands of jobs for our state. Moreover, it will place Kentucky at the forefront of alternative energy development.

During a presentation today to the Senate Agriculture and Natural Resources Committee, an official from Peabody Energy – Generation and BTU Conversion, indicated that Peabody would be making a construction site decision within the next 90 days. Without this energy bill, Kentucky will not even be considered. This is an opportunity we cannot afford to miss. The time to act is now. I am attaching for your review the Peabody presentation so you can see for yourself the magnitude of this project.

In the face of this opportunity, unfortunately the leadership in the House of Representatives attempted to walk out on the first day of the session without even considering the energy bill. Some believe this action unconstitutional. Some believe it is just pure politics. Regardless, the energy legislation needs to be passed now. To this end, the Governor corresponded with Speaker Richards and offered to work with him and members of the House leadership to address their concerns. A copy of the Governor’s letter is attached.

The Speaker has agreed to meet with the Governor on Monday. It will be helpful for you to contact members of the House of Representatives and request them to pass the energy bill.

Thank you for your help.
Sincerely,

Stan Cave
Chief of Staff

Helpful bullet points for your use:

· Peabody Energy Synthetic Natural Gas Plant would:

o Bring a total economic impact of $10.8 billion in the region over the incentive period

o Create 4,050 construction jobs

o Generate 2,805 jobs after construction phase

o Produce 100 million to 200 million cubic feet per day of synthetic natural gas

· Peabody Energy will make a decision regarding its location in the next 90 days

· Kentucky cannot compete with Indiana and Illinois without similar financial incentives

· Senate’s Energy Independence Act would provide short and long term tax incentives giving Kentucky an opportunity to attract this worthwhile project

· We cannot afford to miss this opportunity

HEBERT: First, some clarifications. The estimated economic impact of $10.8 billion dollars would be spread over 25 years, according to governor's budget office. Indiana does not have similar incentives. And the Peabody Energy official, Rick Bowen, never said Kentucky would be out of the running for the Coal-to-NATURAL GAS plant if it didn't approve a state incentive package within the next 90 days. In fact, Bowen hustled out a back door of the committee room, up the stairs and into a senate office, refusing to come out and answer reporters questions after his testimony. One of those questions was "if lawmakers don't approve an energy bill with incentives for your plant, would that kill Kentucky's chances?" Bowen did say he would "recommend" the plant be built in Kentucky if the legislature passes the incentive package proposed by the senate.

More info from today's hearing: It was the first time anyone, including Gov. Fletcher had spoken with clarity about what kind of plant Peabody plans to locate within 90 days. As recently as two weeks ago, at an A and R meeting in Northern Kentucky, state officials and others were talking about an immediate need for incentives for a coal-to-liquid fuel plant or a coal-to-gas plant (interpreted as diesel). Peabody's Bowen says the only plant it will build for sure is the coal-to-NATURAL GAS plant. They're still studying whether a coal liquification plant is feasible. Even Sen. Robert Stivers (R) Manchester, who has been deeply involved in crafting energy legislation, admits there's been widespread confusion among lawmakers, the Fletcher administration and news reporters about Peabody's plans and what they need from Kentucky right now. In fact some legislators who defend Fletcher's calling of the special session have been telling their constituents "you're complaining about high gasoline prices. Well we're trying to do something about it." Not true in the short run, perhaps in the long run, but only if Peabody, other companies, Wall St. and Congress determine that coal-to-liquid plants are a good bet for America's future energy needs.

House Speaker Richards says his meeting with Bowen went well. He believes Peabody would be fine with a letter signed by him, Senate President and Governor Fletcher promising state incentives and tax breaks for Peabody if it decides to locate the coal-to-NATURAL GAS plant in Kentucky. Richards says other companies who expanded in Kentucky, including UPS, G-E and Toyota have all been fine with the promise on paper. But Bowen told the senate committee that he didn't believe Wall St. investors would sink money into a project based on a written promise. He says they'd prefer something more concrete, like a new state law.