National Journal's CongressDailyAM
Issue date:  June 7, 2001

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HEALTH
Senate Transition Could Rekindle Generic Drug Reform Effort
   While drug patent reform legislation has been on the shelf for
the past few years, the changing political dynamics in the
Senate--coupled with the drive to find a way to reduce drug
costs--may soon mean a renewed effort on the issue. The House
Energy and Commerce Committee is considering changes to the 1984
drug patent law as part of the broader Medicare prescription drug
bill it is drafting, several key sources said.
   The idea would be to save the government money by removing
some barriers faced by generic copies of brand-name drugs when
they are ready to go to market, sources said.
   But any changes to the Hatch-Waxman law--named for its
sponsors, Sen. Orrin Hatch, R-Utah, and Rep. Henry Waxman, D-
Calif.--could open up a multitude of other drug patent issues
that have bogged down reform for years.
   "That type of dynamic might make you have to choose between
one [bill] or the other," said a prescription drug industry
source. The brand-name drug industry so far has  been reluctant
to back efforts to change the Hatch-Waxman law. But the generic-
drug industry said it would welcome the change.
   "If Congress is going to take full advantage of the savings
that generic drugs offer as it examines potential ways to bring
drug costs down to pay for a Medicare drug benefit, it makes
great sense" to enact a generic drug bill, said a lobbyist for
the generic drug industry.
   Recent bills to speed generic drugs to market introduced by
Sens. Charles Schumer, D-N.Y. and John McCain, R-Ariz., and by
Reps. Jo Ann Emerson, R-Mo., and Sherrod Brown, D-Ohio, could
save as much as $70 billion, sponsors estimate. CBO has yet to
score them.
   But the actual savings of such a bill are hard to estimate,
particularly when balanced against the research cuts drug
companies say they could be forced to make.
   The research-based pharmaceutical industry estimates that it
will spend about $30.5 billion on research and development this
year, compared with $2 billion in 1980. The industry says it
develops about 45 percent of the world's drugs in the United
States.
   The Energy and Commerce Committee is planning a hearing next
Wednesday on generic drugs, nonprescription drugs, and other
issues. But a spokesman warned observers not to read too much
into the scheduling of the hearing.
   "In noticing the hearing, no one should try to read between
the lines," the spokesman said. "Right now, we're looking at a
wide range of options. In the end, our goal is to address the
issue of escalating prices without harming research and
innovation."
   Hatch-Waxman reform also may get a boost from the switch to
Democratic control in the Senate.
   While aides said no official discussions have taken place on
moving a generic-drug bill since this week's Democratic takeover,
members of at least three panels--the Senate Health, Education,
Labor and Pensions Committee, the Commerce Committee and the
Judiciary Committee--have expressed interest.
   And Hatch issued a warning before stepping down as chairman.
   "To those who would propose to change the 1984 legislation, I
would urge you to consider that this is a carefully balanced bill
and caution against making changes that tilt the balance," Hatch
told a May 25 hearing. "Yet, no law is so perfect that it cannot
stand improvement as it gets tested by the realities of a
changing marketplace and society."
   Newly installed Judiciary Chairman Leahy introduced a bill
earlier this year that would require generic-drug companies that
enter deals with brand-name companies to keep their products off
the market to submit the terms of the deal to the FTC and the
Justice Department.
   Leahy will hold oversight hearings on the issue this year, a
spokesman said. -- By April Fulton
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ENERGY
Armey, Watts Differ Over Energy Strategy
   After weeks of sustained Democratic attacks on Republican
energy policy, House Majority Leader Armey and Republican
Conference Chairman J.C. Watts of Oklahoma--both of whom
represent oil-rich states--clashed publicly this week on what
action Congress should take to address the rising costs and
diminishing supplies of the nation's energy.
   Responsible for House communications strategy, Watts called on
House Resources Chairman Hansen and Energy and Commerce Chairman
Tauzin Monday to schedule hearings on the "volatile prices"
facing energy consumers this year.
   "We need to get answers from energy company executives
including producers, suppliers, refiners, transporters,
distributors and retailers, with the goals of finding solutions
to these price fluctuations and bringing price stability to the
public," Watts wrote in letters to the chairmen.
   Responding to a reporter's question Tuesday, Armey said he
opposed committee hearings to look at allegations of "price
gouging" by the energy industry.
   "I would not personally see the need," Armey said. "Why would
one hold hearings on what I characterize as cheap political
demagoguery? And that is what it is."
   Armey added: "If people want to look at the companies, point
their fingers at them, that's just nonsense. I don't care who it
comes from. It is just nonsense."
   Without specifically recommending hearings, Watts again urged
Republican members Wednesday "to provide the American people with
answers about the current energy crunch," saying he favored the
measures proposed under President Bush's energy plan.
   "While Democrats overstate the role government should play in
energy policy, Republicans cannot forget that it does have a
role," Watts wrote in his latest memo. "While price caps are not
an option, we must insist on price accountability."
   The Watts memo, based on New Models polling data produced by
Republican pollster David Winston, reflects GOP concerns about
the Democratic energy assault.
   Republicans also are frustrated by the attention given to the
party switch of Sen. James Jeffords, I-Vt., instead of the
Republican $1.35 trillion tax cut.
   "It complicates efforts to talk about tax relief and education
when the political media coverage overwhelmingly focused on
Jeffords," a Watts aide said.
   To keep the GOP tax relief message alive, Watts suggested in
his Wednesday memo that members tout the rebate checks the
Treasury Department will begin mailing to taxpayers this summer.
   "From public service announcements to franked mailings, the
possibilities are endless, and Conference is developing a number
of resources for you to use," Watts wrote.
   In his memo, Watts also urged members to "redouble" their
efforts to talk about the passage of education reform. "There is
no reason for us to stop talking to the public about education
just because the vote was gaveled," he wrote.
   An Armey spokesman said Wednesday there was no rift between
Armey and Watts. "It's just a question of exploring options," the
spokesman said. -- By Mark Wegner
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APPROPRIATIONS
Ag Approps Panel Sticks To Caps, Kills School Lunch Program
   In the first test of FY02 appropriations spending limits,
House Agriculture Appropriations Subcommittee Republicans
defeated a $300 million proposal Wednesday to continue the
international school lunch food-aid program.
   After strong pleas from House Appropriations Chairman Young
and Subcommittee Chairman Henry Bonilla, R-Texas, not to break
the caps, the subcommittee voted 8-7 against the amendment
sponsored by subcommittee ranking member Marcy Kaptur, D-Ohio, to
the FY02 Agriculture appropriations bill.
   Rep. Jo Ann Emerson, R-Mo., voted with the Democrats in favor
of the proposal.
   Voting against the amendment clearly made Republican
subcommittee members nervous. Rep. James Walsh, R-N.Y., quickly
proposed report language that the subcommittee "strongly urges"
the Agriculture Department to continue the program, formally
known as the Global Food for Education Initiative.
   Former Sen. George McGovern, D-S.D., now U.S. ambassador to
the world food agencies in Rome, and former Senate Majority
Leader Dole have promoted it.
   Kaptur asked Walsh to change the "strongly urges" wording to
"expects," and the report language passed unanimously. However,
after the markup session, Kaptur said that she does not know what
impact the report language will have.  She is "inclined" to re-
offer the amendment in full committee.
   Bonilla initially suggested the report language, but House
Appropriations ranking member David Obey, D-Wis., pressed for the
vote, saying that if the subcommittee "can't get together on food
aid to kids who need it," he did not know what measures it could
agree on.
   The Clinton administration started the international school
lunch initiative, using its administrative authority to
distribute surplus commodities. It did not have to be scored in
FY01, subcommittee staff director Hank Moore explained.
   Both Obey and Kaptur said they are concerned that the Bush
administration has not stated a clear position on the school
lunch initiative yet.  They believe a directive from the
subcommittee would encourage USDA officials to make a commitment
for next year.
   The subcommittee later approved the bill, which provides $74.2
billion for all programs, of which $15.5 billion is discretionary
funding. The rest is for mandatory farm and nutrition programs.
   Excluding $3.6 billion in emergency appropriations in the FY01
bill, it contains a 7 percent increase. Kaptur, who has had testy
relations with Bonilla, said the bill was "better than we
expected." -- By Jerry Hagstrom
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APPROPRIATIONS
Dem Appropriators Criticize Administration's NSF Funding Request
   A Senate appropriations panel Wednesday criticized the
administration's request for funding for the National Science
Foundation, saying it was inadequate to fully support the
agency's research efforts and failed to move toward the panel's
goal of doubling NSF funding over five years, National Journal's
Technology Daily reported.
   "I am disappointed in the administration's overall research
and development budget, and the NSF proposal in particular," said
Senate VA-HUD Appropriations Subcommittee Chairwoman Barbara
Mikulski, D-Md. "This is the first time in the NSF's 50-year
history that an administration has requested Congress to cut
NSF's research budget below the previous year's level."
   The administration requested $4.47 billion for NSF in FY02, a
$56 million increase, or 1.3 percent, which is less than the rate
of inflation. NSF's budget would have to rise by about $600
million in FY02 to meet the goal of doubling in five years,
Mikulski said. She asked NSF Director Rita Colwell, "Is this [$56
million increase] what you wanted, or is this what you got?"
   Colwell defended the budget request, saying it focuses on
areas the administration has identified as priorities, such as
education and training. But she also added that she fully
supports the panel's efforts to double NSF's budget.
   The NSF proposal calls for an 11 percent increase for
education and human resources, including $200 million for math
and science partnerships and $26.2 million for a program that
puts graduate students in K-12 classrooms. The proposal also
would increase stipends for graduate fellowships.
   "We are losing our best and brightest science students to
other fields," said Eamon Kelly, chairman of the National Science
Board, who expressed support for the budget proposal. "Even our
future workers who are not directly engaged in scientific
endeavors will need to be scientifically literate to perform
their tasks."
   Mikulski agreed with the panelists about the importance of
science and math education and worker literacy.
   But she also noted the value of funding basic research in
science and technology, saying that if NSF had not done the work
it began 50 years ago, "I don't believe we'd have the information
technology we have today."
   Colwell noted that the budget request would increase NSF's
support for nanoscale science and engineering research by 16.1
percent. "Nanotechnology ... could change the way almost
everything is designed, from medicines to computers to
automobiles."
   The budget request would increase funding for research and
related areas by 0.5 percent, to $3.33 billion. Members of the
House Science Research Subcommittee Wednesday afternoon
characterized that funding level as inadequate.
   "About the kindest thing I can say about this budget request
is that it's disappointing," said Rep. Eddie Bernice Johnson, D-
Texas.
   Testifying at the House hearing, NSF Deputy Director Joseph
Bordogna said the budget's focus on "people" was intentional.
   "NSF is as much about building a world-class workforce as it
is about discovery," he said. "It is important to emphasize that
research and education are pursued in an integrated way and that
synergy between the programs in each of these accounts is
fundamental to NSF's mission." -- By Robert Lamb
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APPROPRIATIONS
Despite Shrunken Surplus, GOP Sees Increased FY02 Cushion
   Despite CBO's reduced estimate of next year's surplus,
Republican budget writers said they still plan on an FY02 budget
cushion of about $27.5 billion--even after setting aside the
politically untouchable Medicare trust-fund surplus.
   GOP budget experts expect the cushion to come from smaller-
than-allowed costs of the FY02 share of the $1.35 trillion tax
cut. The experts explained their estimates of the figures in
response to a recent CongressDaily article indicating that the
FY02 cushion may have sagged to as low as $1 billion, based on
CBO's revised surplus estimates.
   Democrats, meanwhile, countered that the tax cut, which
President Bush plans to sign today, relies on an accounting
gimmick in FY02 to make additional money available. In FY03 and
beyond, this could cause Congress to tap the Medicare trust-fund
surplus--despite language in the budget resolution that bars
Congress from doing so.
   In an analysis that House Budget ranking member John Spratt,
D-S.C., planned to release today, Democrats charge that the $1.35
trillion tax cut "exhausts the available surplus in 2003 through
2006 and jeopardizes the solvency of Social Security and
Medicare," even assuming Congress adheres to the spending limits
in the budget resolution.
   The FY02 budget resolution approved by Congress used CBO's
January baseline to project a total FY02 budget surplus of $218.6
billion, with an on-budget surplus of $47.7 billion, of which
$35.9 billion comes from the Medicare Part A trust-fund surplus.
   The remaining $11.8 billion of the surplus was left as a
reserve to cover expenses not already built into the budget,
including the increase in defense spending expected to result
from Defense Secretary Rumsfeld's strategic review.
   Last week, CBO released its analysis of the president's
budget, using a revised baseline that reduced its estimate of the
surplus by $9 billion. In April, CBO recalculated the FY02
Medicare trust fund at $37.6 billion--or $1.7 billion larger than
estimated in January.
   Taken together, CBO's most recent estimates of the total
surplus and Medicare surplus component would reduce the size of
the FY02 reserve by $10.7 billion, leaving only $1.1 billion in
the reserve.
   The budget resolution allowed for taxes to be cut by $65.3
billion in FY02. But the final tax package that Congress enacted,
as scored by the Joint Committee on Taxation, carries an FY02
price tag of just $37.8 billion--meaning that $27.5 billion
budgeted for, but not "spent," in the tax bill should be included
in the available FY02 surplus.
   CBO's January baseline produced a reserve of nearly $12
billion for FY02, assuming the tax bill would use up the entire
$65.3 billion provided in the budget. Because the tax bill
actually cost $27.5 billion less, the reserve instead would
amount to about $39 billion, using the January surplus estimates.
   Using the less generous May baseline and the more-than-$1
billion reserve it produces, the unspent portion of the tax bill
would take the FY02 reserve to almost $29 billion.
   In both cases, the reserve represents the size of the surplus
after the Social Security and Medicare Part A trust funds are set
aside.
   In the analysis being issued today, Democrats say the size of
the tax cut "means that funding priorities like defense
modernization, a Medicare prescription drug benefit or
education--priorities that even Republicans support--will require
a choice between two equally undesirable outcomes: Either the
resources must come from funds already dedicated to Social
Security and Medicare, or funding of other national priorities
must be severely cut--simply because the tax cut is too big."
   The Democratic analysis uses CBO's May baseline and includes
the discretionary spending levels and policies assumed in the
budget resolution, adjusted to reflect the actual cost of the
enacted tax bill as scored by the Joint Committee on Taxation.
   It projects an available surplus, outside the Social Security
and Medicare trust funds, of $24 billion in FY02 (a figure that
accounts for $5 billion in debt service costs)--but a deficit of
$5 billion in FY03 and a $2 billion deficit in FY04.
   As for the FY02 surplus, Democrats counter that Republicans
were only able to show a surplus by using a $33 billion
accounting maneuver that merely moved money from FY01 to FY02.
   As part of the effort to keep the tax bill in compliance with
the budget resolution, a provision delays the deadline for
corporate estimated-tax payments from September 15 to October 1,
2001--effectively making the $33 billion in estimated revenue
available on the first day of FY02, instead of at the end of
FY01. -- By Lisa Caruso
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TRADE
Anti-NAFTA Coalition Plans To Fight Chilean Trade Pact Effort
   Among the trade battles the Bush administration could be
facing this year is the establishment of a free-trade agreement
with Chile. A group of labor and environmental organizations
known as the Chilean Fair Trade Coalition will announce plans
today to step up lobbying against the deal.
   The coalition includes the International Brotherhood of
Teamsters and Friends of the Earth, along with a number of labor
groups from Chile.
   The Bush administration would like to see an agreement with
Chile worked out by the end of the year. It is expected that such
an agreement would be based largely on the North American Free
Trade Agreement, which many labor, environmental and human rights
groups charge has adversely affected U.S. jobs and environmental
standards in the business corridor along the U.S.-Mexican border.
   Among members who have championed the cause of expanded trade
with Chile are Sens. Christopher Dodd, D-Conn. and Phil Gramm, R-
Texas. Both have offered legislation to bring Chile into NAFTA.
   Once the administration presents Congress with a proposed
trade deal, sources said the debate would be reminiscent of the
bitter NAFTA controversy.
   While significant differences remain between the United States
and Chile over the details of the deal, the administration has
stressed the importance of moving toward the establishment of a
Free Trade Area of Americas, and the Chilean pact would help
advance that effort.
   In addition, such a pact would help Chile play a higher-
profile role in South American political and economic affairs
than its rival, Brazil.
   To help bring about the FTAA, many observers believe it is
essential for the president to have broad presidential trade-
negotiating authority. Formerly known as fast track, the proposal
is moving up on the congressional agenda.
   House Majority Leader Armey said this week he would like to
see a measure on the floor as soon as July, and Senate Finance
Chairman Baucus also has noted the importance of presidential
trade-negotiating authority. But Baucus has insisted that labor
and environmental matters be taken into account.
   This week, the Business Roundtable sent a policy paper to
Congress members.  It outlines a spate of bilateral trade
agreements in recent years--often without U.S. participation and
at the expense of the United States.
   To shore up the U.S. role in trade matters, the Business
Roundtable recommends renewal of what the Bush administration
calls "trade promotion authority" as quickly as possible. -- By
Stephen Norton
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TECHNOLOGY
High-Tech Companies Planning To Add Voice To Privacy Debate
   With the Democratic takeover of the Senate stirring
speculation that federal privacy legislation will take on a
higher priority in the chamber, members of the Silicon Valley
lobbying group TechNet are moving to become more engaged in the
issue, National Journal's Technology Daily reported.
   In a conference call earlier this week, lobbyists for high-
tech companies including Hewlett-Packard, Cisco Systems, Sun
Microsystems and Accenture decided to try to craft some privacy
principles, without advocating or opposing any particular
legislation. The list then could be used to educate senators on
how to view any particular privacy bill. "Companies are still
trying to decide whether they should get behind a piece of
legislation or not," said one person familiar with the TechNet
call.
   The ascension of new Senate Commerce Chairman Hollings, who
sponsored a tough privacy bill in the 106th Congress, fueled
speculation among several privacy advocates and business groups
that the chances for action on privacy legislation have improved.
   Expectations for action in 2001 had dimmed over the past six
months, as the complexity of privacy legislation became apparent
and Republican leaders showed little appetite for moving a bill.
   But several high-tech lobbyists said Hollings has expressed
personal interest in protecting consumers' privacy and could
become more aggressive on the issue.
   Other observers said Hollings is likely to have higher
priorities, such as transportation and television violence.
   A spokesman for Hollings has said the senator is still mulling
his priorities. Neither Hollings nor new Commerce ranking member
John McCain, R-Ariz., have re-introduced the privacy bills they
sponsored in the 106th Congress.
   TechNet Executive Vice President Connie Correll said the
organization's members are working on opening a dialogue with
Hollings to discuss privacy and other tech issues the committee
is expected to consider. She also said TechNet had been planning
to develop privacy principles.
   Correll declined to comment on which TechNet members would be
developing the group's privacy principles. She also would not
comment on what direction the group might pursue.
   The tech industry has been divided on what policy stance to
take on privacy, with some companies and associations taking a
stronger stance on the need for a basic privacy bill and others
advocating a free-market approach to determining a solution to
privacy protection.
   Meanwhile, the makeup of the Commerce Committee remains
uncertain while Republican and Democratic leaders negotiate an
agreement on committee assignments.
   Hollings is officially the chairman, but any freshman members,
such as Sen. George Allen, R-Va., currently have no seats on
Senate committees because committee membership temporarily is
based on the organizational structure adopted for the 106th
Congress. -- By Bara Vaida
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AGRICULTURE
Agricultural Conservation Groups Call For New Farm Programs
   Representatives of agricultural conservation, wildlife and
industry groups presented conflicting proposals on the
conservation title of the next farm bill Wednesday, when they
testified before the House Agriculture Conservation, Credit,
Rural Development and Research Subcommittee.
   Craig Cox, executive vice president of the Soil and Water
Conservation Society, called for doubling the Agriculture
Department budget for existing conservation programs and starting
a new $3 billion "stewardship-based farm and ranch program" to
pay farmers for continuing or starting to use good conservation
practices.
   If the current Freedom to Farm program is continued, Cox said,
farmers should have the option of signing land stewardship
contracts rather than continuing with the Freedom to Farm
program.
   Cox said the new spending should be focused on land kept in
production rather than idled in the Conservation Reserve Program.
The increased spending would require a "dramatically expanded"
Natural Resources and Conservation Service staff to provide
technical services, he said.
   A larger administrative staff also would be needed to analyze
the stewardship "contracts" farmers would have to take out with
the government to get the money, Cox said.
   Cox said the society's proposal, based on two years of
interviews and focus groups with a variety of people in
agriculture, would be available to farmers throughout the
country, unlike the current commodity programs, which concentrate
assistance in the Plains and the South.
   The proposal envisions large-scale assistance to ranchers with
grazing land and to growers of specialty crops.
   Asked his views on limits to conservation payments, Cox said
he believes the money should go those who deliver "environmental
goods and services" to the taxpayer.
   The National Association of State Departments of Agriculture
testified in favor of block grants to state governments to
develop assistance to farmers appropriate to each state. Wildlife
groups asked for an expansion of the land-idling Conservation
Reserve Program to 45 million acres.
   But the National Grain and Feed Association, which represents
agricultural suppliers, said the CRP should not be expanded
beyond the current 36.4 million acres.
   After the hearing, Subcommittee Chairman Frank Lucas, R-Okla.,
said in a statement that the conservation proposals would be
costly.
   "The interesting fact is that if we add up what the majority
of groups asked for in the commodity title, plus what most groups
have asked for or are going to ask for in a conservation title,
we will have already spent more money than was budgeted for the
entire farm bill," Lucas said. "That is why I want to focus on
what is working and what is not working; what is being done
efficiently and effectively and what is not." -- By Jerry
Hagstrom
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SENATE LEADERSHIP
Dorgan: Democrats Will Rule Senate With A `Different Tone'
   Democrats will seek to promote a "different tone and a
different style" as the majority party, although the new
political realities will force changes in the legislative agenda
and relationships that shape the Capitol, according to Sen. Byron
Dorgan, D-N.D.
   "The Bush agenda is an agenda that is not really central to
what we have to do in the next few weeks," Dorgan, who co-chairs
the Democratic Policy Committee, said Wednesday during a wide-
ranging interview with CongressDaily.
   Dorgan said after acting on managed care legislation, the
Senate would quickly have to begin to focus on moving the FY02
appropriations bills.
   On energy issues, a top Bush administration priority, Dorgan
said the president's plan "is not a balanced plan." He said the
Congress would have to grapple with energy issues in a way that
is "much more significant than any of us thought."
   Dorgan, who met with newly installed Energy and Natural
Resources Chairman Bingaman Wednesday, said Democratic
legislation would focus on production, conservation, renewable
energy, and efficiency of appliances. Emphasizing an area of
agreement with the White House, he said there were opportunities
to join on incentives to encourage production.
   "My hope is we don't debate the production issue over ANWR,"
he said in a reference to oil drilling in the Alaska National
Wildlife Refuge.
   He said Democrats were interested in using the tax code to
encourage conservation--but did not say how they would offset
costs of any tax credits the energy bill might include. Democrats
and Republicans face a tight budget environment because much of
the budget surplus is off the table because of the tax cut.
   But he gave no indication that Democrats planned to revisit
the $1.35 trillion tax bill that President Bush will sign today.
   "The budget is passed. The tax cut is passed. That largely
settled those fiscal policy issues for the year." Dorgan said.
   Dorgan, who will chair the Senate Treasury-Postal
Appropriations Subcommittee, predicted little change at the
Appropriations Committee with Democrats now running the show.
   Citing his friendly working relationship with subcommittee
ranking member Ben Nighthorse Campbell, R-Colo., Dorgan noted
that "most subcommittees work together in a bipartisan way," and
anticipated little change in the panel's spending priorities
under his chairmanship.
   The real problems are likely to come at the end of the year,
when appropriators are bumping up against the budget caps at the
same time they are trying to move the two largest spending
bills--Defense and Labor-HHS.
   With little room to maneuver, Congress might again be forced
to declare some spending as emergencies in order to keep from
busting the budget, or round up the 60 votes needed in the Senate
to raise the caps.
   The Senate faces similar constraints with the nearly $7
billion FY01 supplemental Bush sent to Capitol Hill last week.
   With only $500 million in offsets, the supplemental uses up
nearly the entire $6.5 billion by which Congress raised the FY01
in the budget resolution. Any more spending added to the
supplemental therefore would have to be offset or declared an
emergency.
   But OMB Director Daniels has already laid down the gauntlet--
cautioning Congress Tuesday not to bid up the supplemental or use
emergency declarations or other accounting gimmicks to spend
beyond the 4 percent increase for FY02 the administration has
called for. Otherwise, be prepared for presidential vetoes,
Daniels warned this week.
   In remarks that echoed the private grumblings of other
appropriators, Dorgan said: "Mitch Daniels is sounding his
political horn these days. I would sooner he just get down to
business and work with us, and back off the politics just a
little bit."
   Dorgan shied away from major political predictions about how
the year would unfold, although he reflected on several new
trends.
   "[Majority Leader] Daschle will play a much more pivotal role
in national politics now than he did as minority leader," he
said.
   Dorgan said Vermont Sen. James Jeffords' switch to independent
status is "not likely to be repeated in this Congress" by other
senators. A close confidant of the new leader, Dorgan praised
Daschle for his decentralized leadership style.
   "He brings people in. He meets ... He has the patience of
Job," declared Dorgan.
   Dorgan said the policy committee that he and Daschle chair
will switch from playing occasional "defense" to developing more
of an issues agenda.
   Dorgan chided Minority Leader Lott for stifling Democratic
amendments when Republicans were in the majority.
   "Senator Lott was someone who was concerned with having
absolute control on the floor of issues," he said, adding that
Democratic leaders have discussed how they will operate
differently.
   "I suspect you will see legislation coming to the floor of the
Senate without the restrictions Senator Lott imposed." Dorgan
said.
   Dorgan acknowledged that Democrats had to try to accommodate
Republicans because they hold such a narrow majority.
   "There's certainly a danger of high expectations," he said.
"Nothing much has changed, except the majority leader and the
committee chairs. The Republicans learned and we understand that
it's not easy to get things done in a Senate that's evenly
split." -- By Geoff Earle and Lisa Caruso
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SENATE LEADERSHIP
Organizing Talks Continue; Daschle Asks Monday-Friday Schedule
   A team of five Republican senators met for a second time
Wednesday with Senate Majority Leader Daschle to negotiate a new
organizing resolution to reflect Democratic control of the
Senate--and for the second straight day the two sides described
"productive" and "cordial" talks but reported no final agreement.
   "We had a good meeting and that's all I can say," Daschle said
late Wednesday.
   Sen. Phil Gramm, R-Texas, said the negotiating team had
another "good, productive meeting" with Daschle, adding: "I
believe we're making progress. Everybody wants to solve this
thing...I think we pretty well have done what we want to do."
   Moderate GOP Sen. Lincoln Chafee of Rhode Island said he
believed "some reality has set in" among his Republican
colleagues, many of whom were urging a hard line in the
negotiations earlier this week.
   "There were a lot less aggressive tones today [in a meeting of
the GOP Conference] than even back in January," when the power-
sharing agreement was negotiated for a 50-50 Senate. "[And] it
was a much more logical conversation" than earlier in the week,
he said. "There wasn't much of a moderate/conservative split in
there."
   One change will soon become evident in the Senate. Daschle
said the chamber would begin working on a Monday-through-Friday
schedule.
   Throughout the day Wednesday, Republicans continued to raise
the issue of judicial and other nominees, although the demand for
written assurances that such nominations would receive a floor
vote seemed to recede as the day progressed.
   Still, Sen. Rick Santorum, R-Pa., said there was "broad
concern within the [GOP] Conference that members of the new
majority have made statements that would change the precedent on
nominees."
   Santorum said he had "never called for a rules change" to
address the issue, but said he was concerned by comments he
attributed to Judiciary Chairman Leahy that nominees can be
disqualified simply because they are conservatives.
   "We need to confirm with the Democratic side that there will
be no break with precedent," he said.
   But Santorum agreed that the operating resolution should be
resolved within "another day or so."
   Sen. Edward Kennedy, D-Mass., a senior member of the Judiciary
Committee, was dismissive of the idea that Bush administration
nominees should receive any special consideration.
   "Bill Lan Lee is my answer to that," he said, in reference to
a Clinton administration Justice Department nomination that
Republicans refused to bring forward for a vote. "We will hear
from the Justice Department [on judicial nominees] and we will
have full and fair hearings. But there is no presumption to be on
the Supreme Court."
   GOP Policy Committee Chairman Larry Craig of Idaho, said one
of the options Republicans were discussing was dealing with their
concerns about nominations "for the record," either through a
"dialogue" on the Senate floor or through some other type of
understanding. He predicted that negotiations could be completed
today, although he said his guess was it would not be voted on
until next week.
   "The option is to take the appropriate time," Craig said.
   Craig agreed with statements by Daschle that the two parties
might try to reach an understanding that if Republicans were to
regain control, the now defunct 50-50 power sharing resolution
would again take effect.
   "That's probably fairly close," said Craig, who also seemed to
indicate that Democrats had reacted favorably to some GOP
suggestions. "We've asked for several things that they think are
fair that we think are fair."
   But he also acknowledged that as the minority party,
Republicans had limited tools at their disposal. "We cannot scalp
Pat Leahy," he said of the Judiciary Committee chairman. -- By
Charlie Mitchell and Geoff Earle
-=-=-=-=-=-=-=-

POLITICS
Morella Declines Governor Bid; Focus Shifts To Ehrlich
   Rep. Constance Morella, R-Md., disclosed Tuesday that she
would not run for governor in 2002--while all but saying that she
will seek re-election to a ninth term, the Baltimore Sun
reported.
   "My concentration has always been in my district, I like where
I am," said Morella, who was first elected in 1986 to her
Montgomery County-based seat.
   The decision turns the statewide spotlight on GOP Rep. Robert
Ehrlich, who plans to make an announcement this summer on whether
he will seek the governor's office.
   But pollster Keith Haller said Morella's announcement is a big
setback for the Maryland Republican Party--because polls showed
her to be a formidable statewide candidate, and because Democrats
would have a hard time as portraying the politically moderate
Morella as out of the mainstream. Ehrlich as regarded as more
conservative.
   But Haller added, "Ehrlich now has a wide-open opportunity to
assume the Republican mantle should he believe it's politically
feasible."
   The leading contender for the Democratic gubernatorial
nomination is Lt. Gov. Kathleen Kennedy Townsend, daughter of the
late Sen. Robert Kennedy, D-N.Y.
   Even though she has taken herself out of contention for
governor, Morella may still face a member of the Kennedy dynasty
next year: state Del. Mark Shriver, son of Special Olympics
founder Eunice Kennedy Shriver, has announced he will seek
Morella's House seat.
-=-=-=-=-=-=-=-

POLITICS
Davis Appeals To GOP Lawmakers For Donations To Forbes
   National Republican Congressional Committee Chairman Tom Davis
of Virginia appealed to GOP House members Wednesday for donations
to the congressional bid of state Sen. Randy Forbes in a
forthcoming Virginia special election.
   Davis noted that 71 GOP members have already contributed to
the Forbes campaign, and urged the remaining 150 GOP Conference
members to pony up as well.
   Forbes is running against Democratic state Sen. Louise Lucas
in the June 19 special election for the 4th District seat of the
late Democratic Rep. Norman Sisisky. The politically marginal
district stretches across southern Virginia from the Richmond
area to Portsmouth.
   A NRCC spokesman confirmed the Davis request, saying, "It's a
close race, and we need all the help we can get."
   House Majority Whip DeLay Wednesday also briefed the GOP
Conference of his ROMP and STOMP programs.
   ROMP--the Retain Our Majority Program--encourages safe
incumbents to contribute excess campaign contributions to
vulnerable GOP members.
   STOMP--the Strategic Task Force for Organizing and Mobilizing
People--is designed to build a grassroots response to such
traditional Democratic allies as organized labor and
environmental activists.
-=-=-=-=-=-=-=-

POLITICS
In Mich., GOP Keeps Searching For Levin Foe
   Having already been turned down by a number of potential
candidates, Michigan Republicans are continuing their search for
a 2002 candidate to take on Democratic Sen. Carl Levin--who
Wednesday assumed the chairmanship of the Armed Services
Committee with the Senate's shift to Democratic control.
   Businessman Jim Nicholson, who lost a 1996 bid for the GOP
nomination against Levin, told The Detroit News that "it will
take brave people" to consider going against Levin, while adding,
"And I may be one of them." Nicholson said he would not decide
until late this year.
   Another possible Levin challenger getting high marks from the
state GOP headquarters is businessman David Brandon, a close ally
of GOP Gov. John Engler who is a University of Michigan trustee.
A party spokesman said Brandon is "a guy with a good story who
would be a good candidate."
   Another close Engler associate--Dan Pero, a former Engler
chief of staff who managed two of the governor's campaigns--last
month took himself out of the running.
-=-=-=-=-=-=-=-

POLITICS
Backus Moving From DNC To DCCC
   Jenny Backus says she decided to leave her post as spokeswoman
for the Democratic National Committee to move to the Democratic
Congressional Campaign Committee because "I wanted the
opportunity to work directly on House races, which are
essential."
   DCCC Chairwoman Nita Lowey of New York has tapped the veteran
political operative to head the committee's communications shop
for the 2002 cycle, effective June 22.  Backus replaces Erik
Smith, who left the DCCC recently to serve as communications
director for House Minority Leader Gephardt.
   Backus said she will miss working with DNC Chairman Terry
McAuliffe, but added that she wanted more contact with "up and
coming stars" in the Democratic Party, and said the new job will
help her learn the country's new redistricting map.
   Before joining the DNC, Backus worked on the 1998 campaign of
Sen. Harry Reid, D-Nev., in which he defeated now-GOP Sen. John
Ensign by a mere 428 votes.
-=-=-=-=-=-=-=-

COLUMN: ON THE MONEY
A Train Wreck Wrecker?
   When you ask most people how this year's appropriations season
will go, they let out a groan reminiscent of Lurch on "The Addams
Family." But not Mitch Daniels. The OMB director still thinks
everything may turn out OK--although he is a little less
optimistic now that the Democrats have taken over the Senate.
   "We're very serious about this being an orderly process,"
Daniels said in an interview this week. Asked if the process can
be smooth, Daniels said, "We'll find out." But he also said, "I'm
confident we were on our way to that and I'm confident we can
still do it." He conceded that working with Democrats leading the
Senate may be different from working with the Republicans, but
said, "We'll have to be flexible where we can be."
   For the past few years of the Clinton administration, then-OMB
Director Lew started the season with a speech in which he
projected gloom and doom: The budget resolution contained false
numbers....They were too low....Nobody believed that was the
amount the government really would spend....We would end up in a
budget confrontation at the end of the fiscal year, and the
confrontation would drag into November or later....
   Many predict the same endgame this year. They contend
education, defense and other priorities will exceed the budget
resolution, and the spending caps will be increased.
   Daniels is making it clear that that is not acceptable. Rather
than start with a speech, he opened the appropriations season
with an op-ed piece in the Washington Post, in which he
emphasized that the administration wants to stick with this
year's budget resolution.
   In this week's interview, Daniels said he is trying to change
the way OMB interacts with Congress to try to convince members.
Republicans used to complain that OMB only entered the
appropriations process at the end--when the president threatened
a veto and the endgame negotiations had to begin.
   Daniels said OMB is trying to work with Congress at the start
of the process. Asked when his office became involved, he
commented, "Have been, are, will be." OMB officials already have
met with appropriations subcommittee staff and will continue to
do so throughout the process, Daniels said. The new strategy was
a careful calculation, he said. As a former Senate staffer, he
certainly realizes that members carefully protect their
prerogatives. And he kept saying OMB would be only as involved as
appropriators want them to be. But having said that, Daniels
added, "From the beginning, it seemed clear to me that we wanted
to be in body contact with the appropriators all the way, and we
have been."
   However, he is not sure how the appropriations dynamic changes
with changeover in the Senate. "This moves the needle a little
bit, but not far." As Republicans have been fond of pointing out,
the membership of the Senate has not changed.
   But of course, being bipartisan means swallowing hard
sometimes and being willing to compromise--even on pork barrel
projects, a particular target of the administration. President
Bush has made it clear he wants to cut down on earmarked
projects. In the supplemental spending bill sent to Congress this
month, Bush proposed to rescind some $93 million earmarked last
year for I-49 in Arkansas--money put in the Transportation bill
to try to help the unsuccessful re-election campaign of former
appropriator Rep. Jay Dickey, R-Ark.
   The proposed rescission has been criticized--and clearly is a
sign that Bush is targeting such projects. Even so, Daniels said
the administration realizes it is going to have to be somewhat
pragmatic. "We called a lot of attention to the sixfold explosion
of earmarks, which is a distinctly bipartisan phenomenon,"
Daniels said. But he quickly added: "We do think this trend ought
to be reined in, but we're realistic. To the extent that this is
a lubricant to the process or a bipartisan process, we recognize
that a lot of it will go on."
   Although Democrats have repeatedly criticized this year's
budget process, Daniels believes it worked "fine." But Bush has
proposed a series of budget reforms--ranging from a two-year
budget cycle to an automatic continuing resolution that would go
into effect if Congress did not complete the 13 annual funding
bills by the end of the year.
   Daniels said that reform of the CR process would be a good
place to start. Appropriators have said they believe an automatic
CR takes away all of the incentive to complete the 13 individual
bills. The administration believes just the opposite. "The
president interprets it as a way to move the process to
conclusion to avoid end-of-session chaos," said Daniels.
   And of course, end-of-session chaos is something everyone--
especially the president--would like to avoid. -- By  David
Baumann
-=-=-=-=-=-=-=-

COLUMN: HOUSE RACE HOTLINE
A Very Special Time Of Year
   2001 hardly has been an "off year" in the House, with a total
of six special elections slated--and it's only June. However,
unlike in most presidential inaugural years, just one of the six
special elections resulted from a job offer with the
administration. The remaining special elections resulted from two
resignations--both by members of the president's party--and three
deaths.
   As expected, former state Sen. Diane Watson won Tuesday's
special election in California's heavily Democratic 32nd
District. That race, along with last month's special election in
Pennsylvania's heavily Republican 9th District, set the pattern
for the majority of 2001 special elections.  They hold heavily
competitive primaries--or district conventions--with the eventual
winner cruising to victory in the special general election.
   The exception to that rule is in Virginia's 4th District,
which is known as "the only game in the country." The race to
replace the late Democratic Rep. Norman Sisisky matches two state
senators in a district that President Bush carried by just 500
votes last November.
   While pressure to hold the seat lies with the Democratic
Congressional Campaign Committee, the Republicans boast a home-
field advantage, with fellow Virginia Rep. Tom Davis at the helm
of the National Republican Congressional Committee and Gov. James
Gilmore leading the Republican National Committee. Voters will
head to the polls June 19.
   Here is your primer on the remaining primary-to-watch
specials:
   Massachusetts 09: In February, the late Democratic Rep. Joe
Moakley announced he would not run for re-election in 2002 due to
incurable leukemia, so potential candidates had been jockeying
for his seat well before his death on Memorial Day. The current
frontrunner--at least in the media--is Max Kennedy, one of the
younger sons of the late Sen. Robert Kennedy, D-N.Y. But the
"frontrunner" title is very tenuous: The Kennedy clan publicly
expressed concern about Max's bid after early missteps.
   Early speculation circulated that Kennedy's chief competitor,
state Sen. Stephen Lynch, would run as an independent, to avoid a
crowded Democratic primary that would give Kennedy an advantage.
Then he would take on Kennedy one-on-one. Some observers believe
that if a Kennedy is beatable, it would be in a special election
primary held this year--not in a regular primary held 15 months
from now. Acting GOP Gov. Jane Swift has yet to announce a
special election.
   Arkansas 03: Originally, the race to replace GOP Rep. Asa
Hutchinson, Bush's appointment to lead the Drug Enforcement
Administration, was set up to be a race between two of Arkansas'
political families--the Hutchinsons and the Huckabees. However,
not one but two of GOP Gov. Mike Huckabee's candidates have
dropped out. Meanwhile, Hutchinson's nephew, former state Rep.
Jim Hendren, dropped out, only to decide the next day that he was
back in.
   When the seat opened up, a member of another political family,
state Sen. Gunner DeLay, said he would defer to Hendren. However,
after Hendren's indecision, House Majority Whip DeLay's cousin
moved ahead with plans to run.
   While this is a solidly Republican seat--then-President
Clinton couldn't even carry his hometown district in 1996--a
number of Democrats are considering bids, because in a special,
you just never know. The date of this special election has not
been set yet, since Hutchinson is not resigning from the seat
until he is confirmed by the Senate.
   Florida 01: After a fake retirement announcement was the
subject of a radio station's April Fool gag, GOP Rep. Joe
Scarborough fooled us all in late May by announcing he would
resign in September. Scarborough took the seat from Democrats in
1994 GOP landslide, and Republicans are heavily favored to hold
this district.  In fact, the chief of staff to former Democratic
Rep. Earl Hutto is running as a Republican.
   To date, things appear to be in a minor mess, as no fewer than
18 candidates are currently looking at the race--including a
father and a son running against each other. GOP Gov. Jeb Bush
has set a special election for October 16, with the primary July
24 and a runoff Sept. 4.
   Meanwhile, in Ohio's 17th District, talk is already swirling
about a potential special election if indicted Democratic Rep.
James Traficant is convicted. The Warren Tribune-Chronicle
speculated that after the case goes to trial next February, the
state "might be able to fit either the primary for the special
election or the special election itself" on May 7--which would
coincide with the regular primary for Congress.
   Add the fact that redistricting would have two different sets
of voters in Ohio's 17th District, and this special election
could be the most special--or at least most interesting--of them
all. -- By Charles Todd and Maureen Hurley Schweers
-=-=-=-=-=-=-=-

ENVIRONMENT
Administration Will Address Global Warming, Rice Says
   White House National Security Adviser Condoleezza Rice
indicated Wednesday that the administration will advance ideas
about global warming before President Bush leaves for Europe next
week, but she was unclear about whether Bush himself will speak
on the issue, as many expect.
   Rice said Bush would be ready to share "what we've learned
thus far" with the allies during his trip. Rice, who briefed
reporters on the trip agenda, said the Cabinet-level group
mulling the issue has not determined what it will tell the
president before he embarks.
   But she indicated that whatever information it gives Bush, the
group will not issue final recommendations before he meets with
European leaders, who have criticized his decision to scrap the
Kyoto treaty.
   Rice confirmed that Bush believes global warming is taking
place but added that the advisory group--which includes EPA
Administrator Whitman, Energy Secretary Abraham, Treasury
Secretary O'Neill, Interior Secretary Norton and White House
National Economic Council Director Larry Lindsey--is trying to
"understand better what we don't know."
   Rice said the panel is exploring the evidence that
"sequestration"--the removal of carbon dioxide from the
atmosphere by plant life--can "play a role in dealing with
emissions,"among other proposals.
-=-=-=-=-=-=-=-

POLITICS
Moderate Republicans Help Dems Win First Senate Vote
   Moderate Republicans helped Senate Democrats win their first
vote since Democrats took control of the chamber Wednesday on an
amendment, sponsored by Sen. Paul Wellstone, D-Minn., to the
education bill.  It requires states to develop quality, peer-
reviewed tests before receiving grants.
   But Democrats may face a more difficult challenge today.
   Wellstone, along with Sen. Christopher Dodd, D-Conn., is
planning to offer an amendment to prevent states from being
required to comply with President Bush's plan to test every child
in grades 3-8, unless the federal government fully funds Title I.
   Title I provides funds to educate poor and disadvantaged
students, and Democrats have argued that traditionally it has
been underfunded.
   Senate Health, Education, Labor and Pensions Chairman Kennedy,
who is managing the bill on the floor, will oppose the so-called
"trigger" amendment because it would "undercut the bill," a
spokesman said.
   "Senator Kennedy shares Sen. Wellstone's concern....  However,
efforts to secure additional funding should not set back the
efforts to put into place the quality assessments," said a
spokesman.
-=-=-=-=-=-=-=-

TRADE
Bush Orders Permits For Firms To Truck International Cargo
   President Bush ordered Wednesday that U.S. businesses owned by
Mexican citizens be permitted to truck international cargo
between points within the United States.
   The order, in a memorandum to Transportation Secretary Mineta
that will be published in the Federal Register, implements a
portion of a NAFTA arbitration panel decision against U.S.
treatment of Mexican trucking firms. The order does not affect
the right of Mexican trucks to enter the United States, a portion
of the decision that has not yet been implemented.
   Under Wednesday's order, Mexican-owned enterprises also will
be allowed to provide bus service within the United States. Bush
directed the Transportation Department to "expeditiously"
implement the order.
-=-=-=-=-=-=-=-

COMMERCE
New Democrat Coalition To Kick-Start `E-Genda'
   Five members of the New Democrat Coalition are scheduled to
kick-start their e-commerce "e-genda" by introducing a House
resolution calling for businesses, government agencies and
Congress members to incorporate the Platform for Privacy
Preferences technology into their Web sites, a technology policy
analyst for the Progressive Policy Institute told National
Journal's Technology Daily.
   Rep. Adam Smith, D-Wash., is expected to introduce a
resolution supported by California Reps. Calvin Dooley and Ellen
Tauscher, as well as Reps. James Moran of Virginia and Rick
Larsen of Washington.
   All five lawmakers also are expected to announce that their
Web sites are compliant with P3P, a technology that its
supporters say will help users preserve their online privacy.
   The new Democrats' "e-genda" will be released later this
month.
-=-=-=-=-=-=-=-

TECHNOLOGY
Coble Introduces Measure Reauthorizing Patent Office
   House Judiciary Courts, the Internet and Intellectual Property
Subcommittee Chairman Howard Coble, R-N.C., introduced a bill to
reauthorize the Patent and Trademark Office in FY02 and enable
the PTO to keep all the revenue it raises from patent fees,
National Journal's Technology Daily reported.
   The measure, introduced Tuesday, would prohibit the practice,
commonplace since 1992, of diverting to other federal programs
the money the PTO raises from patent and trademark application
fees.
-=-=-=-=-=-=-=-
FLOOR SCHEDULE

*SENATE*
Convenes at 9:30 a.m. to resume consideration of education
legislation. A vote is expected at 11:30 a.m., with other votes
throughout the day.

*HOUSE*
Convenes at 10 a.m. for the swearing-in of Rep.-elect Diane
Watson, D-Calif. and to consider Coast Guard reauthorization. The
last vote is expected at 1 p.m.

TODAY
=SENATE COMMITTEES=

ARMED SERVICES
Pending Nominations
Full committee hearing on the nominations of Susan Morrisey
Livingstone to be undersecretary of the Navy; Jessie Hill
Roberson to be assistant Energy secretary for environmental
management; Thomas Christie to be director of operational test
and evaluation, Defense Department. 216 HSOB. 9:30 a.m. Contact:
202-224-3871. (Revised.)

Future Years Defense
Seapower Subcommittee hearing to receive testimony on Navy and
Marine Corps equipment requirements in review of the defense
authorization request for FY02 and the future years defense
program. 232-A RSOB. 2 p.m. Contact: 202-224-3871.

Health, Education, Labor and Pensions
Mental Health Parity
Full committee hearing to examine mental health parity. 430 DSOB.
10 a.m. Contact: 202-224-5375.

=HOUSE COMMITTEES=

APPROPRIATIONS
Bureau of Prisons
Commerce, Justice, State and Judiciary Subcommittee hearing on
FY02 appropriations for Bureau of Prisons. H-309, Capitol. 2 p.m.
Contact: 202-225-2771.

FY02 Appropriations
Interior Subcommittee markup on FY02 appropriations for programs
under its jurisdiction. (No new date announced.) B-308 RHOB. 10
a.m. Contact: 202-225-2771.

Architect Appropriations
Legislative Subcommittee hearing on FY02 appropriations. (No new
date announced.) H-140, Capitol. 11 a.m. Contact: 202-225-2771.
(Postponed.)
GOP Appropriations
Legislative Subcommittee hearing on FY02 appropriations for the
House of Representatives. (No new date announced.) H-140,
Capitol. 10 a.m. Contact: 202-225-2771. (Postponed.)
Education and the Workforce
Sales Incentive
Workforce Protections Subcommittee hearing on a resolution on the
Sales Incentive Compensation Act. 2175 RHOB. 1 p.m. Contact: 202-
225-4527.
Energy and Commerce
Imported Pharmaceuticals
Oversight and Investigations Subcommittee hearing on continuing
concerns over imported pharmaceuticals. 2123 RHOB. 10 a.m.
Contact: 202-225-2927. (Revised.)

Financial Services
Accounting Standards
Capital Markets, Insurance and Government Sponsored Enterprises
Subcommittee hearing on promotion of international capital flow
through accounting standards. 2128 RHOB. 10 a.m. Contact: 202-
225-7502.

INTERNATIONAL RELATIONS
HIV/AIDS Combat
Full committee hearing on the U.S. Agency for International
Development's fight against AIDS. 2172 RHOB. 10 a.m. Contact:
202-225-5021

JUDICIARY
Faith-Based Funding
Constitution Subcommittee oversight hearing on the constitutional
role of faith-based organizations in competitions for federal
social service funds. 2141 RHOB. 9:30 a.m. Contact: 202-225-3951.

Patent Oversight
Courts, the Internet, and Intellectual Property Subcommittee
oversight hearing on the operations of the U.S. Patent and
Trademark Office. 2141 RHOB. 2 p.m. Contact: 202-225-3951.

Human Cloning
Crime Subcommittee oversight hearing on human cloning. 2237 RHOB.
11 a.m. Contact: 202-225-3951

RESOURCES
Fisheries Legislation
Fisheries Conservation, Wildlife and Oceans Subcommittee hearing
on H.R.896, to ensure the safety of recreational fishermen and
other persons who use motor vehicles to access beaches adjacent
to the Brigantine Wilderness Area in the Edwin Forsythe National
Wildlife Refuge, New Jersey, by providing a narrow transition
zone above the mean high-tide line where motor vehicles can be
safely driven and parked; H.R.1989, the Fisheries Conservation
Act  to reauthorize various fishery conservation management
programs. 1324 LHOB. 9:30 a.m. Contact: 202-225-2761.

National Parks Legislation
National Parks, Recreation and Public Lands Subcommittee hearing
on H.R.1461, to amend the National Parks Omnibus Management Act
of 1998 to remove the exemption for nonprofit organizations from
the general requirement to obtain commercial use authorizations;
H.R.1491, to assist in the preservation of archaeological,
paleontological, zoological, geological and botanical artifacts
through construction of a new facility for the University of Utah
Museum of Natural History, Salt Lake City, Utah. 1334 LHOB. 10
a.m. Contact: 202-225-2761

SCIENCE
Pending Legislation
Research Subcommittee markup of H.R.100, National Science
Education Act; H.R.1858, the National Mathematics and Science
Partnership Act. 2318 RHOB. 10 a.m. Contact: 202-225-6371

VETERANS' AFFAIRS
GI Bill Enhancement
Benefits Subcommittee hearing on H.R.1291, the 21st Century
Montgomery GI Bill Enhancement Act. Witness: Veterans Secretary
Principi. 334 CHOB. 11:30 a.m. Contact: 202-225-9164. (Revised.)

ON THE HILL TODAY

EDUCATION
Senate Republican Conference  pen and pad briefing on upcoming
Senate action and strategy on S.1, the Better Education for
Students and Teachers Act. Rescheduled from June 6, 2001.
Participants: Sens. Judd Gregg, R-N.H. and William Frist, R-Tenn.
Senate Print Gallery, Capitol. 10 a.m. Contact: Julie Teer, 202-
224-5316. (New.)

Energy
Senate Governmental Affairs Committee news conference on
"Committee Goals," including energy issues and Federal Energy
Regulatory Commission oversight. Participant: Sen. Joseph
Lieberman, D-Conn. 342 DSOB. 10:15 a.m. Contact: 202-224-2627.
(New.)

Environment
News conference to introduce the National Monuments Fairness Act,
which would amend the 1906 Antiquities Act to require state input
and congressional authorization in the creation of national
monuments of 50,000 acres or more. Participants: House Resources
Chairman Hansen, Reps. Michael Simpson, R-Idaho, John Peterson,
R-Pa., Greg Walden, R-Ore., Jim Gibbons, R-Nev., Dennis Rehberg,
R-Mont., and Bob Stump, R-Ariz. House Triangle, Capitol; rain
site, 1334 LHOB. 2 p.m. Contact: 202-226-9019.

FOREIGN AFFAIRS
News conference on legislation to reauthorize Iran-Libya
Sanctions Act which expires in August. Participant: Sen. Gordon
Smith, R-Ore. Senate Radio-TV Gallery. 11:15 a.m. Contact: 202-
228-1823.

News conference on honor killing legislation. Participants: Rep.
Jerrold Nadler, D-N.Y., and Sen. Hillary Rodham Clinton, D-N.Y.
House Triangle, Capitol. 11 a.m. Contact: 202-225-5635. (New.)

SOCIAL ISSUES
Ceremony to present a Congressional Gold Medal posthumously to
Charles Schulz, the creator of the "Peanuts" comic strip
Participants:, Rep. Mike Thompson, D-Calif., Welcome and
Introduction, Sen. Dianne Feinstein, D-Calif., Remarks and
Reading of the Resolution, Senate Minority Leader Lott, Senate
Majority Whip Reid, House Speaker Hastert, Remarks, Hastert and
Sen. Robert Byrd, D-W.Va., presentation of award. Rotunda,
Capitol. 2 p.m. Contact: 202-224-9629. (New.)

News briefing on issues essential to rural fire departments.
Participant: Rep. Jo Ann Emerson, R-Mo.;. 311 CHOB. 10 a.m.
Contact: 202-225-4404. (New.)

News conference to announce a new effort to pass legislation
banning genetic discrimination in the workplace and in health
insurance. Participants: Senate Majority Leader Daschle, Sens.
Christopher Dodd, D-Conn., Tom Harkin, D-Iowa, Edward Kennedy, D-
Mass.; Reps. Constance Morella, R-Md., Louise Slaughter, D-N.Y.
S-211, Capitol. 10 a.m. Contact: 202-225-3615. (New.)

TAXES
News conference on the tax bill signing. Participants: House
Minority Leader Gephardt and Rep. Charles Rangel, D-N.Y. HC-9,
Capitol. 10:30 a.m. Contact: 202-225-0100. (New.)

TRANSPORTATION
House Committee on Transportation and Commerce. News conference
with executives from several major airlines to outline the status
of the airlines' efforts in implementing the numerous customer
service improvements recommended by the Transportation
Department. Participants: House Transportation and Infrastructure
Chairman Young and Rep. John Mica, R-Fla.; Carol Hallet, Air
Transport Assn. 2167 RHOB. 1 p.m. Contact: 202-225-8767.

OFF THE HILL TODAY:
COMMERCE
Center for International Policy. One-day conference on "U.S. and
Cuban Trademarks: Current Status, Prospects and Problems."
Participants:  9:15 a.m.,  Panel I, "Protecting Trademarks in
Cuba: How the System Works", 10:45 a.m.,  Panel II, "The System
Threatened: U.S. Violation of Treaty Commitments to Cuba and the
Consequences to U.S. Companies";  12:30 p.m.,  Gareth Jenkins,
editor, Cuba Business, London, luncheon speaker, "The Real
Potential Market for U.S. Goods and Services in a Post-Embargo
Cuba", 2:15 p.m., Panel III, "Resuming Trade with Cuba: Ensuring
a Foundation for the Future." Carnegie Endowment for
International Peace, 1779 Massachusetts Ave., NW, Root Room. 9
a.m. Contact: Leah Riley, 202-232-3317.

DEFENSE
National Defense University Foundation seminar on theater missile
defense and national missile defense policy and spending issues.
Participants: House Armed Services Chairman Spence. Capitol Hill
Club, 300 First St., SE. 8 a.m. Contact: 202-685-2268. (New.)

EMPLOYMENT
NAACP Federal Sector Task Force news conference in support of the
No FEAR (Federal Employment Antidiscrimination and Retaliation)
Act of 2001 (H.R.169). Freedom Plaza, Pennsylvania Ave., NW
(between 13th and 14th Sts., NW),Washington, DC. 11:30 a.m.
Contact: 202-332-3199. (New.)

Environment
National Park Service, National Park Foundation and Ford Motor
Company ceremony to present honorary keys to the historic, and
newly refurbished with clean technology, Red Bus #98 of Glacier
National Park as part of a series of transportation solutions to
emerge from the private-public partnership of the National Park
Service, National Park Foundation and Ford Motor Company.
Participant: Interior Secretary Norton. Lincoln Memorial, East
Side (between the Memorial and the Reflecting Pool), The National
Mall. 10 a.m. Contact: 202-452-9447. (New.)

Media
Public Relations Society of America, National Capital Chapter
dinner to present "The 2001 Thoth Awards for Excellence in Public
Relations." Participant: White House press secretary Ari
Flescher, special guest. Mayflower Hotel, 1127 Connecticut Ave.,
NW. 7 p.m. Contact: 703-691-9212.

POLITICS
American Enterprise Institute for Public Policy Research, "Are We
All `Compassionate Conservatives' Now?" Participant: House
Minority Whip Bonior. AEI, 1150 17th St., NW, Wohlstetter
Conference Center, 12th Floor. 4 p.m. Contact: 202-862-5800.
Judicial Watch reception and dinner tribute to the Honorable
Sanders Sauls, Florida circuit court judge. Participants: Judge
Saules and Catherine Crier, host of Court TV's Catherine Crier
Live, master of ceremonies. National Press Club. 6 p.m. Contact:
202-646-5172.

Women's Campaign Fund reception preceding nine simultaneous
dinners in its "Party of Your Choice" fund-raiser supporting pro-
choice women candidates in both political parties. Participants:
Former Rep. Pat Schroeder, D-Colo. Stewart Mott House, 122
Maryland Ave., NE. 6 p.m. Contact: Susan Medalie, 202-393-8164.

SOCIAL ISSUES
People for the American Way awards celebration to present the
Defender of Democracy, Spirit of Liberty and Equine Posterior
awards. Seating for media is limited; please RSVP. Participants:
John Sweeney, president, AFL-CIO, (Defender of Democracy Award);
Kathy Bushkin, senior vice president, AOL Time Warner and Sara
Ehrman, senior adviser, Center on Middle East Peace and Economic
Cooperation, (Spirit of Liberty Awards); Equine Posterior Award,
TBA. Kennedy Center's Terrace Theater, New Hampshire Ave., NW, at
Rock Creek Parkway, Washington, DC. 7:30 p.m. Contact: 202-467-
4999. (New.)

Appointed members of the U.S. Census Monitoring Board news
conference to release a report on the methods used in the
controversial technique known as "statistical adjustment."
National Press Club, Murrow Room. 1 p.m. Contact: 301-457-5085.
(New.)

TRADE
Economic Strategy Institute luncheon, featuring "U.S.-EU: The
Biggest Trading Elephants in the Jungle, But Will They Behave?"
Participant: Pascal Lamy, European trade commissioner. Willard
Hotel, 1401 Pennsylvania Ave., NW, Crystal Room. Noon. Contact:
Sanjay Mongia, 02-326-8554.

FRIDAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
Energy and Commerce
Energy Policy
Energy and Air Quality Subcommittee hearing on the national
energy policy. 2123 RHOB. 10 a.m. Contact: 202-225-2927.
Government Reform Committee and Senate Governmental Affairs
DC Government
House Government Reform Committee's District of Columbia
Subcommittee and Senate Governmental Affairs Committee's
Oversight of Government Management, Restructuring and the
District of Columbia Subcommittee joint hearing on the outlook
for the District of Columbia government. 2154 RHOB. 11 a.m.
Contact: 202-225-5074.

ON THE HILL FRIDAY:

DEFENSE
Center for Strategic and International Studies. News conference
to release its report, "Computer Exports and National Security in
a Global Era: New Tools for a New Century." Participants: John
Hamre, president/CEO, CSIS, and Brent Scowcroft, former national
security adviser. 430 DSOB. 2 p.m. Contact: 202-775-3242.

HEALTH
News conference to announce introduction of the Responsible Stem
Cell Research Act of 2001. Participant: Rep. Christopher Smith,
R-N.J. House Triangle, Capitol. 10 a.m. Contact: 202-225-3765.
(New.)

SOCIAL ISSUES
American-Arab Anti-Discrimination Committee national convention.
Participants:, noon, Rep. James Moran, D-Va., Human Rights award;
Mary Ramadan, "Pro-bono Attorney of the Year;" and Jennifer
Granholm, Michigan attorney general, speaker. Crystal Gateway
Marriott, 1700 Jefferson Davis Highway, Arlington. 9 a.m.
Contact: 202-244-2990
District of Columbia Bar Assn. Breakfast with House District of
Columbia Subcommittee chairman. Participant: Rep. Constance
Morella, R-Md. Hogan and Hartson, 555 13th St., NW. 8 a.m.
Contact: 202-626-3463.

OFF THE HILL FRIDAY:
None.

MONDAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
None.

TUESDAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
Education and the Workforce
ERISA
Employer-Employee Relations Subcommittee hearing on the
foundation of employee health coverage. 2175 RHOB. 10:30 a.m.
Contact: 202-225-4527.

GOVERNMENT REFORM
DNA Technologies
Government Efficiency, Financial Management and Intergovernmental
Relations Subcommittee hearing on how effectively states and
federal agencies are working together to implement the use of new
DNA technologies. 2154 RHOB. 10 a.m. Contact: 202-225-5074.

INTERNATIONAL RELATIONS
Foreign Policy
East Asia and the Pacific Subcommittee hearing on U.S. foreign
policy in East Asia and the Pacific. (Rescheduled from June 5.)
2172 RHOB. 10 a.m. Contact: 202-225-5021

RESOURCES
Gas/Oil Royalties
Energy and Mineral Resources Subcommittee hearing on collection
and disposition of federal oil and gas royalties taken in-kind.
1324 LHOB. 10 a.m. Contact: 202-225-2761.

Pending Legislation
National Parks, Recreation and Public Lands Subcommittee hearing
on H.R.271, to direct the secretary of the Interior to convey a
former Bureau of Land Management administrative site to the city
of Carson City, Nev., for use as a senior center; H.R.980, to
establish the Moccasin Bend National Historic Site in the State
of Tennessee as a unit of the National Park System; H.R.1668, to
authorize the Adams Memorial Foundation to establish a
commemorative work on federal land in the District of Columbia
and its environs to honor former President John Adams and his
family. 1334 LHOB. 10 a.m. Contact: 202-225-2761

SCIENCE
Energy Policy
Energy Subcommittee hearing on the president's national energy
policy. 2318 RHOB. 10 a.m. Contact: 202-225-6371.

Space Launch
Space and Aeronautics Subcommittee hearing on the space launch
initative. 2318 RHOB. 2 p.m. Contact: 202-225-6371

WAYS AND MEANS
Rural Health Care
Health Subcommittee hearing on rural health care. 1100 LHOB. 10
a.m. Contact: 202-225-3625. (New.)

Energy Conservation/Supply
Select Revenue Measures Subcommittee hearing on the effect of
federal tax laws on the production, supply and conservation of
energy. 1100 LHOB. 2 p.m. Contact: 202-225-3625. (New.)

WEDNESDAY
=SENATE COMMITTEES=

APPROPRIATIONS
Army Budget Overview
Defense Subcommittee hearing on FY02 appropriations for Army
budget overview. (Rescheduled from April 25). 192 DSOB. 9:30 a.m.
Contact: 202-224-3471. (Revised.)

EPA
VA-HUD Subcommittee hearing on FY02 appropriations for the EPA.
Witness: EPA Administrator Whitman. 138 DSOB. 10 a.m. Contact:
202-224-3471

BANKING
Ferguson Nominations
Full committee hearing on the nomination of Roger Walton Ferguson
Jr. to be a member of the Board of Governors of the Federal
Reserve System. 538 DSOB. 10 a.m. Contact: 202-224-7391. (New.)

=HOUSE COMMITTEES=

AGRICULTURE
Peanut Program
Specialty Crops and Foreign Agriculture Programs Subcommittee
hearing to review the peanut program. 1300 LHOB. 10 a.m. Contact:
202-225-2171.

Energy and Commerce
National Energy Plan
Energy and Air Quality Subcommittee hearing on President Bush's
comprehensive national energy plan. Witness: Energy Secretary
Abraham. 2123 RHOB. 10 a.m. Contact: 202-225-2927. (New.)

GOVERNMENT REFORM
Census Bureau
Census Subcommittee hearing on oversight of the Census Bureau's
proposed American community survey. 2203 RHOB. 2 p.m. Contact:
202-225-5074.

SMALL BUSINESS
Exporting
Full committee hearing on the Export-Import Bank of the United
States and its assistance to small business exporters. 2360 RHOB.
10 a.m. Contact: 202-225-5821

TRANSPORTATION AND INFRASTRUCTURE
Airport Construction
Aviation Subcommittee hearing on airport runway construction
challenges. 2167 RHOB. 9:30 a.m. Contact: 202-225-9446.

Capital Investments
Economic Development, Public Buildings and Emergency Management
Subcommittee hearing on General Services Administration FY02
capital investment program. 2253 RHOB. 2 p.m. Contact: 202-225-
9446.

-=-=-=-=-=-=-=-
CongressDailyAM is published daily, Monday through Friday, by
National Journal Inc., when Congress is in session. Copyright
2001 by National Journal Inc., 1501 M St., NW, #300, Washington,
D.C. 20005. Retransmission, redistribution or reproduction of
CongressDaily is prohibited without the express, written
permission of National Journal Inc.

President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com)
Publisher--Steve Hull, 202-739-8475 (shull@njdc.com)
Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com)

Subscription price: $2,497 a year. Subscription and e-mail
transmission information: 202-266-7230 (cngdaily@njdc.com).
-=-=-=-=-=-=-=-

CDENDIT


Start Date: 1/1/02; HourAhead hour: 17;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002010117.txt
###Cannot locate a Preferred or Revised_Preferred Schedule that matches the FINAL Individual Interchange Schedule.  Unable to assign deal number.
!!!General SQL error.
Couldn't update; currently locked.
Table
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.
!!!A user transaction is already in progress.

---- Energy Import/Export Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTstSW
  MKT_TYPE: 2
  TRANS_DATE: 1/1/02
  TIE_POINT: PVERDE_5_NG-PLV
  INTERCHG_ID: EPMI_CISO_SW
  ENGY_TYPE: FIRM
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTstSW
  MKT_TYPE: 2
  TRANS_DATE: 1/1/02
  TIE_POINT: MEAD_2_WALC
  INTERCHG_ID: ENRJ_CISO_8001
  ENGY_TYPE: FIRM

---- Load Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  LOAD_ID: SDG1
  MKT_TYPE: 2
  TRANS_DATE: 1/1/02
  SC_ID: ENRJ


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/31/2001
10:11 AM ---------------------------

Tanya Tamarchenko
03/29/2001 01:49 PM
To: Frank Hayden/Corp/Enron
cc: Vince J Kaminski/HOU/ECT@ECT, Jaesoo Lew/NA/Enron@ENRON, Jason
Sokolov/HOU/ECT@ECT, Rakesh Bharati/NA/Enron@Enron, Rabi De/NA/Enron@ENRON
Subject: Re: implementing clustering and jumps for power

Frank,
our VAR team has been looking at different ways to implement clustering and
jumps for power prices simulation
in VAR.
I attached the suggestion we came up with and the results of clustering and
jump parameters estimation.
Would you like to discuss this methodology? We need your input.

Please, let me know,

Thank you,

Tanya.


The NYISO is reserving hour beginning 11:00 in the February 5,
2002 Real-Time Market.

In addition, the NYISO is reserving the following hours in the February 5,
2002 Hour-Ahead Locational Reserve Market: 06:00-8:00, 10:00,12:00,13:00,
16:00-19:00, 21:00 and 22:00.

Prices in the February 6, 2002 Day-Ahead Market are correct.

This e-mail information is a copy of the official posting which can be
found at the following address of our website:
http://mis.nyiso.com/public/htm/OperMessages/CurrentOperMessages.htm#mm

---
You are currently subscribed to nyiso_tie as: paul.d.thomas@enron.com
To unsubscribe send a blank email to leave-nyiso_tie-629431H@lyris.nyiso.com


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/19/2001
04:28 PM ---------------------------
From: Iris Mack/ENRON@enronXgate on 04/19/2001 03:22 PM
To: Scott Salmon/EU/Enron@Enron, Amitava Dhar/Corp/Enron@ENRON
cc: Craig Chaney/HOU/ECT@ECT, Mike Mumford/LON/ECT@ECT, Eric
Kirkpatrick/EU/Enron@Enron, Richard Brent/EU/Enron@Enron, Ben
Parsons/LON/ECT@ECT, George Albanis/LON/ECT@ECT, Vasant
Shanbhogue/ENRON@enronXgate, Vince J Kaminski/HOU/ECT@ECT
Subject: RE: D&B Contact Names

Hi again,

 As, I stated is a prior emails, the contact details for the RiskCalc folks
are as follows:

1.  Marc Brammer
Director of Strategic Sales
tel:  800.523.2627, x5706
mbrammer@MoodysRMS.com

2. Neal Clark
Vice President
Tel:  800.523.2627, x5701
nclark@MoodysRMS.com

 Neal said that he would be willing to set up a meeting between us and their
quants to better understand their model, the various inputs and whether or
not the model can be tweaked for less than the 17 specified inputs.

 Let me know if you guys wish to have Neal set up a conference between
Moody's quants and Enron folks in Houston and London.

Ciao,
Iris

 -----Original Message-----
From:  Salmon, Scott
Sent: Thursday, April 19, 2001 3:00 PM
To: Mack, Iris; Dhar, Amitava
Cc: Chaney, Craig; Mumford, Mike; Kirkpatrick, Eric; Brent, Richard; Parsons,
Ben; Albanis, George
Subject: RE: D&B Contact Names

Iris/Amitava,

I may have already said this, but we've had so many e-mails and telephone
calls flying back and forth that I wanted to make sure I at least got this
much out to you.  Clearly, I would like you to set up the meeting with the
RiskCalc gurus to dig deeper into their methodology (as much as they'll tell)
and the impact of missing variables and any other idiosyncracies the model
may have.  Also try to get a better feel for how well they think the model
extends to other countries.  I know from a previous conversation with Lea
Carty and reading about the model that it was calibrated off North American
names but they suspect it might extend to other countries.  Conversely, I
know they are working efforts within Moody's Risk Management Services to
develop private (and probably public) firm models specific to regions.  One
they mentioned was Australia and also within Western Europe.  Data, as
always, was the issue.  See if the quants have any perspective on their
success/plan in that area.

Lastly, we truly appreciate the aggressive efforts you both have made toward
pushing off this private model initiative and I'm very confident we'll be
able to nail a firm plan down upon receipt of either D&B and/or Experian data.

Cheers,
Scott
---------------------- Forwarded by Scott Salmon/EU/Enron on 19/04/2001 20:51
---------------------------

Mike Mumford@ECT
19/04/2001 17:55
To: Scott Salmon/EU/Enron@Enron
cc:

Subject: RE: D&B Contact Names

---------------------- Forwarded by Mike Mumford/LON/ECT on 19/04/2001 17:59
---------------------------
From: Iris Mack/ENRON@enronXgate on 19/04/2001 09:23 CDT
To: Mike Mumford/LON/ECT@ECT
cc: Amitava Dhar/Corp/Enron@ENRON

Subject: RE: D&B Contact Names

Hi,

 Two RiskCalc sales people made a presentation this week about their product.

 They stated that they could set up a meeting with their quants and our
people to discuss the model input and what happens if we have less than 17
inputs.

Regards,
Iris

 -----Original Message-----
From:  Mumford, Mike
Sent: Thursday, April 19, 2001 1:37 AM
To: Mack, Iris
Subject: RE: D&B Contact Names

Ooops... part II.

I just threw out 12 as a number for something we might develop... it's really
not based on anything.  We know 17 will work for pre-packaged programs.  We
also know there will be a great number of names with less than the full 17...
I assume we would pursue another model (internal or external) to provide
probably less accurate numbers but at least available for names with fewer
inputs.

Mike

From: Iris Mack/ENRON@enronXgate on 18/04/2001 15:02 CDT
To: Mike Mumford/LON/ECT@ECT
cc: Amitava Dhar/Corp/Enron@ENRON, Scott Salmon/EU/Enron@Enron, Eric
Kirkpatrick/EU/Enron@Enron

Subject: RE: D&B Contact Names

Hi Mike,

 Thanks for your email.

 What do you mean by "buying blind  all major data associated with these
specific DUNS numbers"?

 I am puzzled about why you would be looking at 17 vs 12 fields.  I know
RiskCalc requires 17 inputs and seem to apply that the model does not work
for less than 17.  Yesterday the RiskCalc sales people could not guarantte
that their model would work for less than the required 17 data inputs.  They
suggested that this would be a question to direct towards their quants who
developed the model.

Regards,
Iris

 -----Original Message-----
From:  Mumford, Mike
Sent: Wednesday, April 18, 2001 1:20 PM
To: Mack, Iris
Cc: Dhar, Amitava; Salmon, Scott; Kirkpatrick, Eric
Subject: RE: D&B Contact Names

Iris,

Thanks.

After our meeting we stuck around to discuss things a little further.

Specifically with respect to global counterparty names... we have DUNS
cross-references on about 70 of active names (13k out of 18.5k).  We could
greatly accellerate purchase of some useful data by buying blind all major
data associated with these specific DUNS numbers.

Pro  -  Data gets in on names we know we want to review ASAP, but without
resolution on which specific fields are most useful.  We also get to test for
completeness of data (how many have all 17 fields... how many have only 12 of
which fields, etc.).

Con  -  Costs could be significantly higher... buying info we don't know we
need (converse of buying only the 17 fields doesn't seem best answer).  We
would end up buying additional info later... overhead costs and piecemeal
buying will increase costs.  IT development time would be greatly
increased... multiple file formats... developing to unknown maximum size,
etc.... redoing when more data is purchased.

Any thoughts.

Mike


I have added an executive summary, removed a repetitive argument on historical need for balanced schedules and retitled the section headings.


Great!  John L said he was going to leave legal to us.  So please take the
lead in proposing changes for the legal team and propose the changes to me so
we can get it done.

Regards,

Mark

	John Novak@ENRON
	06/06/2001 01:25 PM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: Sami's contract is done!

next step: Luiz and Vicky.


What's it for?  When are you planning on submitting the cash request to the committee?

 -----Original Message-----
From: 	Parks, Joe
Sent:	Monday, March 25, 2002 3:40 PM
To:	Polsky, Phil
Subject:	Duke Field Services

I will try to pay Duke Field Services  $293543, ASAP


u ah dead.


How is it going?  Can we go public with it yet?

	Enron Energy Services

	From:  Suzanne Farrow                           09/27/2000 03:14 PM
	Phone No: 713-853-0665

To: Susan J Mara/SFO/EES@EES
cc:
Subject: www.ChooseEnron.com Web Site

Sue,

I left you a voice mail on the www.ChooseEnron.com project.  Mona (through
legal) has reviewed the site.

The purpose of the site is to provide commercial customers within certain
industries (restaurants, hotels, motels, hospitals, nursing homes, grocery
stores, convenience stores) the opportunity to purchase power from Enron.  At
this time, this isn't truly an "online" purchase.

The customer is sent a mailer directing them to the site and providing them a
unique customer ID and password.  When they arrive at the site, they will be
asked to enter customer contact information and basic energy usage
information for up to 5 meters and/or up to 2,000,000 kWh of aggregate
usage.  (The minimum usage size corresponds to the 20 kW per meter peak
demand.)  When the customer requests a price, the site is currently
configured to pull the price from the executable pricing matrix and fill-in a
contract.  The contract is then emailed to the customer within minutes (at
worst within 4 hours when the system is extremely busy).  The customer must
physically sign the contract and fax that back to Enron.  At that time, the
customer goes into the normal set -up and billing process.

The site is available 24 hours/day and 7 days/week unless the power desk
shuts it down during times when the desk is reaching it's open position
limits.

I've reserved several customer IDs for you.  Those are:

The password for each of these user IDs is "begin".

Keep in mind, we've set this up to protect ourselves against arbitrage risk.
If you enter a request for a price quote(s) under a particular user ID, you
cannot log in under that ID again until those quotes have expired (5PM CST
the next business day).  That's why I've given you so many user IDs.

I hope you'll have a chance to look at the site.  Please let me know if you
have any questions or comments.

Suzanne
x30665


---------------------- Forwarded by Joann Collins/Corp/Enron on 05/30/2000
01:56 PM ---------------------------

kdestep@columbiaenergygroup.com on 05/30/2000 01:39:25 PM
To: " - *joann.collins@enron.com" <joann.collins@enron.com>
cc: " - *Porter, Jeffrey" <jporte1@columbiaenergygroup.com>, " - *Dalphon,
Charles" <cdalpho@columbiaenergygroup.com>, " - *Kinney, Doug"
<dkinney@columbiaenergygroup.com>

Subject: Allocation of June Deal at COH

Joann,

Here is the distribution of the CES EU deal that Chris did with Charlie last
week.  The original deal volume was
for 263,580 dth/month. Doug could you please ask Chris if he will keep us
whole
on the contracted price for
the extra 20,000 dth?

Joann pls call me if you have trouble reading this.  Please note that the
volumes to 8-35 are for TIMET only (k64939).

Thanks,
Kara

MARKET  Enron Request
AREA  DTH PER MONTH DTH PER DAY

3-15   0   0

5-2    45,160  1,505

5-7    14,240  475

7-1    23,825  794

7-3    0   0

7-4   34,590  1,153

7-5    0   0

7-6   3,030  101

7-8   30,070  1,002

7-9    89,765  2,992

8-35   42,900  1,430

TOTAL   283,580  9,453


If you wish to run sensitivities to heat rate and daily dispatch,  I have
attached the spreadsheet below.

Tyrell
303 575 6478


Tana,

These are the groups that we have available for the cities that you mentioned:

 All Enron Houston
 Everyone_in_ECT_Calgary
 Everyone_in_ECT_London
 Everyone_in_ECT_Portland
 Everyone_in_ECT_New York
 Everyone_in_ECT_Denver
 Everyone_in_ECT_Oslo
 Everyone_in_ECT_Singapore
 Singapore EI Announcements
 EI-Australia
 Buenos Aires Argentina - Office Staff
 Buenos Aires Argentina - TGS Office Staff
 Enron Everyone_EOG_Denver
 Enron Everyone_EOG_Calgary

If this will do, let me know and I'll use these groups.  If you need
something else , please contact Linda Lannom in HR to provide you with a list
of all Enron employees by city.  Again, if you do this I will need them in an
Excel spreadsheet with First Name, Last name, Social Security number and
department.

I will send you a draft of the letter in a few minutes.  I will need you to
send approval to Enron Messaging Administration in order to send it out.

Thanks

Erika

From: Tana Jones@ECT on 06/20/2000 06:06 PM
To: Enron Messaging Administration@ENRON
cc:

Subject: Re: Company Wide Email

Please direct this email to all employees at the offices indicated below (I
think Sydney is our Australia office).  I have revised the letter a little
and am reattaching  it.  Thanks!

	Enron Messaging Administration@ENRON
	Sent by: Erika Vaughan@ENRON
	06/19/2000 02:58 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: Company Wide Email

It is the "and any other offices where we might have trading affiliates"
portion of your message that still has me concerned.  I can send the message
to all ENA and, if we don't have one already, have HR provide a list of
employees in the other cities you listed.  However, I don't know the answer
to the any other offices.  Do you want to send it to every employee
worldwide?

Sorry to be difficult but I still don't have a good idea of your desired
audience.

Erika

From: Tana Jones@ECT on 06/19/2000 02:44 PM
To: Enron Messaging Administration@ENRON
cc:

Subject: Re: Company Wide Email

I do not have an individual list.  It will have to got to all the employees
in the cities, and or countries where we have trading offices, which is
pretty much the list I had below.

	Enron Messaging Administration@ENRON
	Sent by: Erika Vaughan@ENRON
	06/19/2000 02:24 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: Company Wide Email

Tana,

We have a recent group with all of ENA.  However, we do not have anything set
up for trading affiliate offices or a way to determine that information.
Please provide any names/addresses that are needed other than the ENA.

If you do give me names that are not already in a Notes address format, I
will need you to provide them in an Excel spreadsheet with First Name, Last
name, Social Security number and department to help resolve conflicts.

Please contact me if you have any questions.

Erika

From: Tana Jones@ECT on 06/19/2000 01:42 PM
To: Enron Messaging Administration/Corp/Enron@Enron
cc:

Subject: Company Wide Email

I need to send out the attached memo ASAP to all employees of Enron North
America and its trading affiliate offices.  This includes Houston, Calgary,
London, Denver, New York, Oslo, Singapore, Portland, Australia, Buenos Aires,
and any other offices where we might have trading affiliates.  Can someone
with your team get back to me ASAP so we can be clear about who we send this
to.  Thanks!


Start Date: 10/18/01; HourAhead hour: 17;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001101817.txt

Error retrieving HourAhead price data - process continuing...


Here's the latest...
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/24/2001 09:28
AM ---------------------------

Ron Tapscott@ECT
01/24/2001 07:56 AM
To: Matthew Tezyk/ENRON_DEVELOPMENT@Enron_Development
cc: Kay Mann/Corp/Enron@Enron, Ben Jacoby/HOU/ECT@ECT

Subject: new version of letter to Lynn Dekrey (SW) on 501d5a

Matt,

I have attached a letter we plan to send today (or, tomorrow at the latest)
and require copies of letter's from SW that Dan Schultz references in his
Nov. 10th letter.  In addition, there is another matter regarding other
correspondence we need to have in hand that other letters reference.  Most
notably, a reference to a request from Scott Laidlaw (dated January 12, 2001)
noted in Lynn DeKrey's letter on January 18, 2001.

Absence of this correspondence jeapordizes our claim!  We need to close the
loop on this information so we know our response is appropriate.

Kay -- the attached letter is a newer version from the one you received
yesterday.  I would appreciate any input you may have.

Thanks, Ron.


We are pleased to announce the creation of a new group - Asset Marketing - within Enron Americas. The Asset Marketing group will have responsibility for the asset divestment function within Enron Americas and work with Generation Investments on selected portfolio acquisitions as well as managing power origination funding requirements with Treasury.

Don Miller will head the Asset Marketing group and will report directly to the Office of the Chair, Enron Americas. Joining Don's group will be Stuart Zisman.  Stuart was formerly in ENA Legal, having most recently worked on the sale of ENA's peaker plants with Don.

Please join us in congratulating Don and Stuart in their new roles.


Trena,

3:00 PM is fine.

Patti

Trena McFarland@ENRON
10/18/2000 09:22 AM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Re: Mtg w/ Sally Beck

could I make this 3.00 if possible?

Thanks
Trena


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I've been having a "personal field day" with it in Sacramento.

Best,
Jeff


Yes, she'snot familiar with the music, but said she would listen to the music
and see what she thought, but I have put in a call to my other friend, but I
know she would do it if her schedule was open, but she does is
professionally, and I know there would be a charge,  I should hear something
today from my other friend.


LighTrade Aims For Bandwidth Boom With "Points"
Monday, February 14, 2000 03:29 PM

	?Mail this article to a friend

	By Michael Rieke
	HOUSTON (Dow Jones)--Washington, D.C. entrepreneur Ted Pierson is betting on
a boom in bandwidth trading.
	His company, LighTrade Inc., will spend $20 million-$25 million this year to
install and operate hardware to trade bandwidth, or space on telecom lines,
in Atlanta, Chicago, Denver, Dallas, Miami, San Francisco, San Jose, Seattle
and Washington, D.C.
	Bandwidth trading is growing, driven by increased demand by businesses for
the Internet. In a report released last December, CIBC World Markets
estimated that 20% of total bandwidth traffic, or $12 billion in revenues,
could be traded in some manner within five years.
	Last week, Oklahoma energy company Williams Communications Group Inc. (WCG,
news, msgs) announced plans to open a bandwidth trading unit.
	LighTrade will be the first company not affiliated with a larger energy or
telecommunications concern to develop the trading sites, known as pooling
points, Pierson told Dow Jones Newswires.
	The points connect telecommunications carriers, allowing data to move from
one network to another. They are installed in "telecom hotels," buildings
that house carrier facilities, and essentially consist of a Lucent
Technologies Inc. (LU, news, msgs) bandwidth manager about the size of a
tall, narrow refrigerator.
	Enron Broadband Services, a unit of Enron Corp. (ENE, news, msgs),
established the first two points last year in New York and Los Angeles. It
plans to build another in London this year.
	Last year, Enron Corp. proposed trading bandwidth under a standardized
contract. It executed the first trade under the contract in December, buying
space on a monthly basis on a New York-Los Angeles line from Global Crossing
Ltd. of Bermuda.
	Forrester Research Inc., a Cambridge, Mass.-based technology research firm,
has charged that Enron's ownership of pooling points prevents neutrality in
bandwidth trades.
	Having an independent company like LighTrade operate points will help the
bandwidth trading market get off the ground, said Stephen Kamman, a
telecommunications industry analyst for CIBC World Markets.
	It's a "very positive" development for the bandwidth trading market, said Tom
Gros, vice president of international bandwidth trading for Enron.
	"This is the first of what I think will be at least a few others who are
interested in building pooling points that meet the Enron specifications for
the open trading of bandwidth," Gros said.
	The industry has been trading bandwidth without a standardized contract for
years. Deals have typically taken weeks or months to negotiate. Companies
must start from scratch with each deal, negotiating price, quantity, length
of contract and quality of service.
	In the past, deals have been long-term, sometimes as long as 20 years. But
with the cost of bandwidth along some routes declining 15%-20% a year, such
terms are less attractive.
	Enron has also called on telecommunications companies to form a bandwidth
trading organization, an independent body that will decide on standard terms
and conditions for trading. Two groups in London and one in the United States
are vying to form such a group.
	LighTrade chose pooling point sites based on telecommunications traffic,
Pierson said. Long-range plans call for the company to have sites in the 50
U.S. cities that develop the most traffic.
	But the company's pace building a network of points will depend on how
quickly the telecommunications industry can decide on standards for trading
bandwidth as a commodity.
	LighTrade wants to install points in Boston, Houston, Las Vegas, Memphis and
Phoenix in 2001, Pierson said. It is eyeing a move into international markets
as early as next year, if the market will support it. Western Europe is a
likely starting point, with Paris and Frankfurt possible sites.
	Eventually, LighTrade could connect Miami to a South American city like Rio
de Janeiro or Sao Paulo, and build Asian pooling points in sites like Tokyo
and Osaka.
	The company raised financing from private investors in two rounds last year
and is now looking for investment from venture capital companies.
	In addition to reaching an agreement with Lucent Technologies to use its
bandwidth managers, LighTrade has another connection to the high-tech
company. William Plunkett, a senior vice president at Lucent, is on
LighTrade's board of directors. Pierson declined to say whether Lucent would
invest in his company.
	LighTrade isn't Pierson's first startup company. The telecommunications
attorney founded Advanced Radio Telecom (ARTT, news, msgs), a NASDAQ-traded
company that owns and operates broadband wireless metropolitan area networks.
That company now has market capitalization of $800 million.
	Pierson has commitments to tie pooling points into the networks of three
major telecommunications carriers, he said. He wouldn't identify the
companies. He said he doesn't know of any competitors building pooling
points, but he expects others to enter the market.
	He and his investors are taking a chance starting a company to develop
pooling points because they don't know how quickly the market will develop,
he said.
	"But I wouldn't be in it if ... I did not think this would be a very
significant economic return," Pierson said.
	-By Michael Rieke 1-713-547-9207 michael.rieke@dowjones.com