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=20 Jim =20 =20 -----Original Message----- From: Dernehl, Ginger=20 Sent: Wednesday, September 19, 2001 1:00 PM To: Alamo, Joseph; Allegretti, Daniel; Allen, Joe; Alvarez, Ramon; Arefieva= , Maria; Assaf, Lisa; Bellas, Kirsten; Benson, Eric; Binns, Darran; Bolton,= Scott; Boston, Jerry; Boston, Roy; Briggs, Tom; Buerger, Rubena; Burns, St= ephen; Canovas, Guillermo; Cantrell, Rebecca W.; Chan, Stella; Comnes, Alan= ; Connor, Joe; Cooney, Carolyn; Dadson, Aleck; Dasovich, Jeff; Decker, Larr= y; Dernehl, Ginger; Dressler, Jean; Floris, Vinio; Frank, Robert; Fromer, H= oward; Fulton, Donna; Guerrero, Janel; Hamilton, Allison; Hardy Jr, John; H= awkins, Bernadette; Hemstock, Robert; Hetrick, Nancy; Hoatson, Tom; Huang, = Karen; Hueter, Barbara A.; Hunter, Bevin; Huson, Margaret; Ibrahim, Amr; In= gersoll, Richard; Kaufman, Paul; Kean, Steven J.; Keene, Patrick; Kingerski= , Harry; Kishigami, Kikumi; Knight, Laurie; Landwehr, Susan M.; Lassere, Do= nald; Lawner, Leslie; Leibman, Lara; Leonardo, Sam; Levy, Alberto; Linnell,= Elizabeth; Mara, Susan; Maurer, Luiz; McVicker, Maureen; Migden, Janine; M= iller, Terri; Montovano, Steve; Moore, Bill; Nersesian, Carin; Neustaedter,= Robert; Nicolay, Christi L.; Nord, Sue; Noske, Linda J.; Novosel, Sarah; O= genyi, Gloria; Palmer, Germain; Perez, Carmen; Perrino, Dave; Petrochko, Mo= na L.; Pharms, Melinda; Reblitz, Scott; Rishe, Frank; Rizzo, Helen; Roan, M= ichael; Robertson, Linda; Robinson, Marchris; Rodriquez, Andy; Ryall, Jean;= Lindberg, Susan; Shapiro, Richard; Shelk, John; Shortridge, Pat; Staines, = Dan; Steffes, James D.; Stransky, Joan; Stroup, Kerry; Sullivan, Kathleen; = Sullivan, Lora; Thome, Jennifer; Tiberi, Fino; Tracy, Lysa; Twiggs, Thane; = Walton, Steve; Warner, Geriann; Yeung, Charles; Yoho, Lisa Subject: FW: Federal Government Affairs Report (September 1-15, 2001)=20 -----Original Message----- From: Shapiro, Richard=20 Sent: Wednesday, September 19, 2001 12:53 PM To: Dernehl, Ginger Subject: FW: Federal Government Affairs Report (September 1-15, 2001)=20 Please distribute to North America. =20 Ginger Dernehl=20 Administrative Coordinator=20 Global Government Affairs=20 Phone# 713-853-7751=20 Fax# 713-646-8160=20 -----Original Message----- From: Sullivan, Lora=20 Sent: Wednesday, September 19, 2001 12:01 PM To: Dernehl, Ginger Cc: Sullivan, Lora Subject: Federal Government Affairs Report (September 1-15, 2001)=20 =20 FEDERAL GOVERNMENT AFFAIRS MEMORANDUM FOR HOUSTON Update on Legislative Issues (September 1-15, 2001) ENERGY ISSUES 1. Senate Energy Chairman Bingaman (D-NM) released his draft "Chairman's= Mark" of electricity restructuring legislation. The draft is positive for= Enron on transmission issues (including access, jurisdiction and RTOs) and= reliabiilty. We have concerns about provisions on transparency, market-ba= sed rates and merger review. We have said we are generally pleased, while = we work to amend those provisions about which we have concerns. =20 2. We drafted testimony for Jim Steffes to be the EPSA witness at a Hous= e Energy and Air Quality Subcommittee hearing on reliability, siting and tr= ansmission pricing issues (the hearing was cancelled due to the tragic even= ts of September 11, 2001). =20 TRADE PROMOTION AUTHORITY =20 House Speaker Dennis Hastert (R-IL) said that he didn't expect the House to= vote on Trade Promotion Authority until next month citing a need for House= Republicans to "get all our ducks in a row." Senate Finance Chairman Bauc= us (D-MT) has stated that he would wait until the House took action on TPA = before he would introduce his measure. With the House pushing the vote unt= il October, it lessens (but doesn't eliminate) the likelihood that a bill w= ill be done this year. =20 Ways and Means Chairman Bill Thomas (R-CA), who is taking the lead for the = House Republicans, has vowed to spend more time working with Democrats to c= raft a bipartisan product. Ways and Means Ranking Member Carl Levin (D-MI)= has not yet introduced his bill. He is still meeting with Democrats and h= as stated that he wants to introduce the most "balanced" bill he can that w= ill include labor and environmental provisions. =20 =20 The Administration continues to push hard for TPA. They have made securing= trade promotion authority their chief trade objective this year. Presiden= t Bush recently said that he wants TPA before the World Trade Organization = ministerial in November. =20 BANKRUPTCY REFORM =20 House and Senate Conferees are hoping that conflicts between the House and = Senate versions of the Bankruptcy Reform bill will be worked out expeditiou= sly. House Judiciary Chairman James Sensenbrenner (R-MI), who is chair of = the Conference, has stated that the Conference will meet formally for the f= irst time next week. =20 There are two sections of the Bankruptcy Reform bill that have significant = importance to Enron: 1. financial contract netting provisions, which are in= cluded in both the House and Senate versions; and 2. a technical correction= s amendment regarding production payments, which is currently included in t= he House version only. =20 =20 There are 32 members of the House and Senate who have been appointed to the= Conference, which is unusually large. The Conference has to deal with 38 = amendments that the Senate made to the House bill (including the technical = corrections amendment regarding production payments). The Administration h= as some problems with the bill, none that pertain to our issues. The progr= ess is expected to be slow. =20 FY 2002 TRANSPORTATION APPROPRIATIONS - MEXICO TRUCKING BAN =20 Just prior to the adjournment for the August Recess, the Senate passed the = FY 02 Transportation bill, which contained provisions that called for stric= t safety standards for Mexico trucks gaining unrestricted access to U.S. ro= ads. Senator Phil Gramm (R-TX) and Senator John McCain (R-AZ) both vehemen= tly oppose the restrictive language but in the end allowed a final vote on = the appropriations measure. They have vowed, however, to hold the bill up = in the House-Senate Conference until the Mexico trucking language is resolv= ed (note: the House prohibitive language is more restrictive, effectively p= rohibiting Mexico trucks from ever going beyond the current 20-mile radius = they now have access to). The White House has, on several occasions, reite= rated their objection to any language in the bill that would halt or slow d= own NAFTA provisions allowing cross-border transit, which were to have been= enacted January 1, 2001 - making the provision well-behind schedule alread= y. =20 While the Mexico's Economic Minister has stated that he would not seek sanc= tions against the United States for violations of the NAFTA, Mexico Preside= nt Vincente Fox has stated that he would consider limiting or even prohibit= ing U.S. trucks on Mexico's roads. A recent study indicated that the U.S.'= s failure to execute the cross-border transit provisions of NAFTA could cos= t Mexico's economy upwards of $100 billion per year. =20 =20 The Senate and House will now go to conference on the measure, and it's exp= ected to be a contentious debate in Conference. =20 =20 MINIMUM WAGE HIKE =20 The House will likely act on a minimum wage measure following Senate action= , which is expected this fall. House Republican leaders are insisting, how= ever, that any increase in the minimum wage be accompanied by tax breaks fo= r small businesses. Additionally, it is likely that the minimum wage bill = will be a vehicle for other business tax credits and pro-business measures.= =20 =20 Senate Majority Leader Tom Daschle (D-SD) said that the Democratic minimum = wage bill will come to the floor in the fall. It is expected, however, tha= t Senate Republicans will attempt to add several tax cuts, which Democrats = would oppose unless there are offsets (meaning, the tax measures would have= to be paid for elsewhere in the budget). =20 =20 The White House has said it favors a minimum wage increase providing it con= tains flexibility provisions. President Bush would be unlikely to veto a m= easure absent state flexibility provisions if it contained certain tax cut = components.=20 =20
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