----- Forwarded by Jeff Dasovich/NA/Enron on 03/30/2001 06:45 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	03/30/2001 06:29 PM
	Please respond to "Julee Malinowski-Ball"
		 
		 To: "Jan Smutny Jones" <smutny@iepa.com>, "Steven Kelley" <steven@iepa.com>, 
"Katie Kaplan" <kaplan@iepa.com>
		 cc: "William Hall" <wfhall2@duke-energy.com>, "Tony Wetzel" 
<twetzel@thermoecotek.com>, "Sue Mara" <smara@enron.com>, "Steven Kelley" 
<steven@iepa.com>, "Steve Ponder" <steve_ponder@fpl.com>, "Steve Iliff" 
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<marty_mcfadden@ogden-energy.com>, "Lynn Lednicky" <lale@dynegy.com>, 
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		 Subject: Legislative Status Report Week Ending 3/30


Date: 3/30/01
To: Jan Smutny-Jones, Steven Kelly, Katie Kaplan
Cc: IEP Board of Directors
From: Julee Malinowski-Ball, Edson + Modisette
RE: Legislative Status Report Week Ending 3/30


RECENT EVENTS:

-- SB 28x (Sher/Battin), which makes various changes to the siting process
including many IEP-sponsored proposals, passed off the Senate floor last
week 37 to 1.  Asm. Wright,s office is now working with the authors and IEP
to make additional changes to the bill, as opposed to moving more siting
issues in AB 36x (Wright) (although that is still an option).  Chris Ellison
and I are continuing to work with the authors, staff to develop additional
language. The bill is scheduled to be heard on Monday in the Assembly Energy
Costs and Availability Committee.  We are waiting to review new language
from the author,s office.  At this point we are recommending the bill does
NOT move forward without this additional language.  I will let members know
the status of these amendments before the hearing.

-- IEP has a meeting with the newly-elected Assembly Republican Leader Dave
Cox (Sacramento) on Tuesday at 8:30 am to discuss the Republican,s position
on siting and direct access, and possibly linking those issues with the
passage SB 5x (Sher), the billion dollar energy conservation bill on the
Assembly side.  Although they are not the only issues IEP and its members
want resolved in this legislative session, they are currently the most
visible and active issues with the best chance of passage.

-- AB 60x (Hertzberg), which ties to the siting process the requirement that
a developer enter into a contract to sell power to specified California
entities, is out of the Assembly on a 64 to 12 vote.  The bill will be heard
in the Senate Energy Committee next.  IEP members have agreed on amendments
to the bill which it will present to the Speaker, however, it and its
members will be meeting with members of the Senate Energy Committee to stop
the bill.  IEP,s opposition message is twofold: 1) the bill creates another
obstacle in the siting process when the state should be streamlining it;
and, 2) as a net-importer, California would be sending the wrong signals to
its neighboring states that send us power in our time of need.

-- AB 8x (Migden), which would have given the EOB additional and undefined
powers related to the coordination of operation and maintenance schedules,
was gutted in the Senate last week and used as a vehicle for the State to
get the generation component of the utilities, rates, the San Diego rate cap
extended to all customers, and kicking the QF issue to the CPUC.  AB 8x in
its new form, authored by Assembly Member Keeley, passed out of the Senate,
but failed to get enough Republicans to vote for the bill on the Assembly
floor.  The biggest opposition came primarily from the gas-fired QFs which
wanted to be exempt from the measure,s QF provisions.

Migden,s office has communicated its intention to move forward with the
language previously in AB 8x, although in a different vehicle not yet
identified.  There remains a commitment on the table to meet with IEP to
discuss amendments.  IEP member company lobbyists have agreed to continue
lobbying her office to urge her to wait hearing the bill again until this
meeting has happened.

-- There appears as if there is going to be another attempt at moving QF
legislation next week.  SB 66x (Bowen) was introduced on Wednesday in which
a Senate Floor analysis was already prepared.  The measure is still in
spot-bill format, but rumor has it &they8 are working on language as we
speak.  Be prepared for anything.

-- Senator Burton,s office is sending IEP another set of amendments
attempting to solve our problem with the eminent domain provision in SB 6x
(Burton), which is the state power authority measure.  I will report on the
status of these amendments once we have had a chance to review them.

-- SB 39x (Speier), which would define generators as public utilities and
put the CPUC in the role of coordinating outages and maintenance schedules,
remains on the Senate floor awaiting a vote.  There is no action item on
this measure at this time.

-- Regular session is getting under way in conjunction with the on-going
special session hearings.  IEP has taken a support position on the following
bills which are scheduled for hearings next week:  SB 64x (Costa), which
expands to Biomass-to-Energy grant program; AB 49x (Campbell), AB 226
(Campbell), and SB 30x (Brulte), each of which would allocate property tax
revenues from new power plants exclusively to the residing local government;
and, AB 1138 (LaSuer), which in its introduced form would provide
low-interest loans for repower projects and peaker plants, with specified
conditions.

--  Attached is the most recent legislative tracking reports, both the
special session and regular session.  Please let me know if you need copies
of any of these bills.


UPCOMING EVENTS:

MONDAY, April 2nd
-- Assembly Energy Costs and Availability Committee
SB 28x (Sher) - siting
-- Assembly Utilities and Commerce Committee
AB 226 (Campbell) ) property tax revenues
-- Assembly Revenue and Taxation Committee
AB 49x (Campbell) ) property tax revenues
-- Senate Environmental Quality Committee
SB 64x (Costa) ) Biomass-to-Energy grant program
-- Assembly ECA subcommittee on Natural Gas
Natural Gas Cost and Availability Legislative Proposals

TUESDAY, April 3rd
-- Assembly Economic Development Committee
AB 1138 (LaSuer) ) low-interest loans for repowers and peakers.

WEDNESDAY, April 4th
-- Senate Local Government Committee
SB 30x (Brulte) ) property tax revenues

THURSDAY, April 5th
Spring recess begins upon adjournment of session.

ON THE ASSEMBLY FLOOR
AB 8x (Keeley)

ON THE SENATE FLOOR
SB 33x (Burton) ) transmission measure.
SB 39x (Speier) ) coordination of outages and maintenance scheduling.

--end--

Julee Malinowski-Ball
Senior Associate
Edson + Modisette
916-552-7070
FAX-552-7075
jmball@ns.net







 - 2001 Tracking Report.special session.doc
 - 2001 Tracking Report.doc