FW: Legislative Report (06/08/2001)

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 06/08/2001 04:19 PM -----

"Carol Hudson" <carol@iepa.com<
06/08/2001 02:46 PM
Please respond to carol

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Subject: FW: Legislative Report (06/08/2001)

Dear all,
<
< Attached please find this week's legislative report. Most of the action
< this week centered around the budget conference committee hearing as the
< deadline to pass the state's budget is next Friday, June 15th. Also,
< today was the last day for bills to pass out of their house of origin and
< sent to the other house for legislative hearings. This week's energy
< highlights include the following:
<
< EVENTS:
<
< * Governor Davis sends letter to the state PUC President Loretta
< Lynch, urging that California's petroleum refineries and ancillary
< facilities be exempt from rotating outages. The basis for the governor's
< letter is his stated belief that even a brief disruption of electricity
< for these facilities can shut down production and supply of petroleum
< products for several weeks. "The availability of petroleum derived
< transportation fuels is critical to the public health and safety of
< Californians. Public safety agencies such as law enforcement, emergency
< medical care responders, and the military all rely on these fuels. Without
< petroleum fuels, the ability of these essential-use customers to perform
< their critical functions would be seriously impaired," said Governor
< Davis.
<
< * Governor Davis, along with top executives and business leaders in
< the state, announce a joint-Declaration on Thursday committed to saving 20
< percent in overall electricity consumption. With more than 140 businesses
< and organizations statewide, this "energy-conservation" coalition sets the
< following goals among others to reduce energy use: (1) set temperatures
< for occupied space to 78 degrees from May to October; (2) reduce lighting
< levels by 25 percent and an additional 25 percent upon the declaration of
< a Stage II emergency; (3) close blinds and shades when possible; and (4)
< turn off and unplug all office and kitchen equipment when not in use.
<
< * QFs will have to wait until next Wednesday to hear whether or not
< the state Public Utilities Commission forces utilities to pay 15 percent
< of back payments to some alternative-energy generators. The PUC postponed
< their vote to June 13 on a proposal that would allow alternative
< generators who need the money to continue making electricity to ask for it
< from PG&E and Edison to remain in business.
<
< * The California State Senate Rules Committee, in cooperation with the
< Senate Select Committee to Investigate Price Manipulation in the Wholesale
< Energy Market, agrees on Tuesday to issue subpoenas to provide further
< background information in its investigation into whether generators are
< illegally profiteering from the state's power crisis. Eight out-of-state
< generating companies (and perhaps, eventually, the Los Angeles Department
< of Water and Power and the state Department of Water Resources) stand to
< receive papers demanding documents on bidding, pricing, and other aspects
< of power sales in the state. Those companies will be Reliant Energy,
< Dynegy Energy Services, Inc., Williams Energy, Enron Corp., NRG Energy
< Inc., Duke Energy, Mirant Inc., and AES Corp.
<
< * Governor Davis signs Executive Order D-37-01 on Monday aimed at
< increasing small business participation in state contracting. This order
< mandates state agencies to push for an annual 25 percent small business
< participation level in state contracting and authorizes the Department of
< General Services (DGS) to streamline the small business certification
< process, increase the pool of certified small businesses, establish a
< Prompt Payment Advocate, and implement a state-sponsored Economic
< Conference and Opportunity Fair focusing on enhancing contracting
< opportunities for small businesses.
<
<
< LEGISLATION
<
< * Property taxation bill -- AB 81 by Assembly Member Carole Migden
< (D-San Francisco) -- passes out of the full Assembly on Thursday with 43
< AYES and 28 NOES. This bill would return the tax assessment authority over
< electric-generating facilities back to the state Board of Equalization,
< thereby nullifying "Rule 905." Although the author asserted that her bill
< will not take away much-needed tax revenue from cities and counties, AB 81
< is considered a huge disincentive and unfair tax on current and potential
< electric generating companies in the state. IEP testified against this
< bill in committee and will continue to oppose this bill in the Senate.
<
< * Assembly Member Cohn (D-Saratoga) gains Assembly approval on
< Wednesday with 47 AYES and 13 NOES for her resolution asking the Federal
< Energy Regulatory Commission to "impose interim price caps until the
< California power market has stabilized.'' Assembly Joint Resolution 11
< (AJR 11) specifically states that price caps be put in place at least
< until California is able to bring new energy supplies on-line and for the
< state's massive conservation efforts to take effect. The resolution
< asserts that California believes not enough has been done by the FERC to
< investigate price gouging by generators and control wholesale electricity
< prices and calls upon the federal regulatory agency to "adhere to its
< governing statutes, its vision statement, and its own regulations for
< companies seeking market-based authority."
<
< * Path 15 study bill passes out of the full Assembly on Tuesday with
< unanimous support from both sides with 69 AYES and 0 NOES. If passed by
< the Senate, AB 460 by Assembly Member Phil Wyman (R-Tehachapi) will
< allocate $10 million from the California Energy Commission to the
< Transmission Authority of Northern California for environmental studies to
< see if this transmission-line group between Northern and Southern
< California can be expanded.
<
* Senate Bill 39xx: Public Utilities by Senator Jackie Speier
(D-Hillsborough) and Assembly Bill 28xx: Electrical restructuring: Oversight
Board: Independent System Operator by Assembly Member Migden, both
originally to be heard in committee next Monday and Tuesday respectively,
have both been rescheduled to a to-be-announced later date. SB 39xx
"clarifies and enhances the state's PUC over in-state electric generating
facilities" while AB 28xx "expands the authority of the Electricity
Oversight Board and the ISO."

* Assembly Bill 35xx: Department of Water Resources: electrical
energy: eminent domain by Assembly Member Juan Vargas (D-San Diego) is
scheduled to be heard in the Assembly Judiciary Committee this upcoming
Tuesday. This bill would require the state Public Works Board to acquire
eminent domain proceedings for the possession and use of real property for
the generation of electrical power. This real property would be "paid for at
fair market value" and put under the control of the state Department of
Water Resources. IEP opposes this bill, and will testify in opposition at
the hearing.

<<IEPA Legislative Report.DOC<<

- IEPA Legislative Report.DOC