In one of his first acts in office, President George W. Bush set up a cabinet-level Energy Policy Development Group, based in the White House and chaired by Vice President Dick Cheney. Other members of the group include Energy Secretary Spencer Abraham, Treasury Secretary Paul O'Neill, Commerce Secretary Don Evans, Transportation Secretary Norman Mineta, Interior Secretary Gale Norton and Environmenta Protection Agency Administrator Christine Todd Whitman. Andrew Lunquist, who headed up the Bush transtion team for the Department of Energy has joined the White House staff as executive director for the activity. Lundquist was previously Staff Director for the Senate Energy Committee, chaired by Senator Frank Murkowski (R-AK). Although Bush asked the group to provide him with a new national energy policy by October, it is generally believed that the group will act more quickly. Also in the group are the director of the Federal Emergency Management Agency, and the assistants to the president for policy, economic policy, and intergovernmental affairs.

In a memo to the group, Bush said, "One of the greatest challenges facing the private sector and Federal, State, and local governments is ensuring that energy resources are available to meet the needs of our citizens and our economy. To help address this challenge, I am asking the Vice President to lead the development of a national energy policy designed to help the private sector, and government at all levels, promote dependable, affordable, and environmentally sound production and distribution of energy for the future." Cheney may also invite Federal Energy Regulatory Commission Chairman Curt Hebert Jr., Secretary of State Colin Powell and other federal officials to participate in the group on issues involving their agencies, the memo says.

Bush asked the group to give him two reports, including a "near-term" assessment of "the difficulties experienced by the private sector and state and local governments in ensuring that local and regional energy needs are met." The president said he expects "as soon thereafter as practicable" report recommending a national policy designed to help the private sector and state and local governments "promote dependable, affordable, and environmentally sound production and distribution of energy for the future."

Bush said he wants the national policy to address, among other things, growing demand for energy in the United States and the world, the potential for disruptions in energy supplies and distribution, the need for responsible policies to protect the environment and promote conservation, and the need for modernization of energy generation, supply and transmission infrastructures.