----- Forwarded by Jeff Dasovich/NA/Enron on 03/02/2001 07:42 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	03/02/2001 07:03 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" 
<siliff@riobravo-gm.com>, "Stephanie Newell" 
<stephanie-newell@reliantenergy.com>, "Ross Ain" <rain@caithnessenergy.com>, 
"Roger Pelote" <roger.pelote@williams.com>, "Robert Lamkin" 
<rllamkin@seiworldwide.com>, "Richard Hyde" <rwhyde@duke-energy.com>, "Randy 
Hickok" <rjhickok@duke-energy.com>, "Paula Soos" 
<paula_soos@ogden-energy.com>, "Nam Nguyen" <nam.nguyen@powersrc.com>, "Marty 
McFadden" <marty_mcfadden@ogden-energy.com>, "Lynn Lednicky" 
<lale@dynegy.com>, "Larrea, John" <John.g.Larrea@williams.com>, "kent 
Palmerton" <kent.palmerton@williams.com>, "Ken Hoffman" 
<khoffman@caithnessenergy.com>, "Kate Castillo" <ccastillo@riobravo-gm.com>, 
"Kassandra Gough" <kgough@calpine.com>, "Jonathan Weisgall" 
<jweisgall@aol.com>, "John Stout" <john_h_stout@reliantenergy.com>, "Joe 
Ronan" <joer@calpine.com>, "Joe Greco" <jgreco@caithnessenergy.com>, "Jim 
Willey" <elliottsa@earthlink.net>, "Jeff Dasovich" <Jeff.Dasovich@enron.com>, 
"Jack Pigott" <jackp@calpine.com>, "Jack Hawks" <jack.hawks@gen.pge.com>, 
"Hap Boyd" <rboyd@enron.com>, "Greg Blue" <gtbl@dynegy.com>, "Frank DeRosa" 
<fderosa@sanfrancisco.usgen.com>, "Eric Eisenman" 
<eric.eisenman@gen.pge.com>, "Eileen Koch" <eileenk@calpine.com>, "Ed Tomeo" 
<ed.tomeo@uaecorp.com>, "Duane Nelson" <dnelsen@msn.com>, "Doug Fernley" 
<fernley.doug@epenergy.com>, "Dean Gosselin" <dean_gosselin@fpl.com>, "David 
Parquet" <dparque@ect.enron.com>, "Curtis Kebler" 
<curtis_l_kebler@reliantenergy.com>, "Curt Hatton" <Curt.Hatton@gen.pge.com>, 
"Craig Chancellor" <craigc@calpine.com>, "Cody Carter" 
<cody.carter@williams.com>, "Carolyn Baker" <cabaker@duke-energy.com>, "Bob 
Gates" <bob.gates@enron.com>, "Bob Escalante" <rescalante@riobravo-gm.com>, 
"Bob Ellery" <bellery@spi-ind.com>, "Bill Woods" <billw@calpine.com>, "Bill 
Carlson" <william_carlson@wastemanagement.com>, "Quan-Hill, Danielle" 
<danielle.quan-hill@mirant.com>, "Chris Ellison" <CTE@eslawfirm.com>, "Andy 
Brown" <ABB@eslawfirm.com>, "Doug Kerner" <runwithmee@aol.com>, "Robert 
Weisenmiller" <rbw@mrwassoc.com>, "Jean Munoz" <jmunoz@mcnallytemple.com>
		 Subject: Legislative Status Report Week Ending 3/2


Date: 3/2/01
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 3/2


RECENT EVENTS:

-- AB 8x (Migden), which would give the EOB additional and undefined powers
related to the coordination of operation and maintenance schedules, passed
the Assembly ECA committee 14 to 0.  This measure came from the Governor,s
office in response to one of his Executive Orders.  IEP, along with several
IEP members, opposed the bill in committee, but noted commitments to working
with the author on language.

IEP counsel drafted comments which are attached.  PLEASE PROVIDE COMMENT BY
NOON ON MONDAY so that these changes may be considered by the author before
the next committee hearing.  The measure will go to the Assembly
Appropriations Committee next.

-- AB 60x (Hertzberg), which would have required, as a condition of
permitting a powerplant, developers to offer to sell the power to California
entities, was pulled from the Assembly ECA Committee hearing at the last
minute.  IEP is working with the Chair of the committee and the Speaker,s
office on appropriate language that would preferably not be tied to the
siting process but provide the needed political cover on this new, growing
&California First8 concept.  Any suggestions on how to deal with the
&California First8 issue is welcomed.

-- IEP, along with the other QF stakeholders, had an opportunity to brief
the Senate Energy Committee staff on SB 47x (Battin).  The measure will be
heard in the committee on Tuesday next week.

-- The Senate Environmental Quality committee met this week to hear SB 28x
(Sher/Battin) which makes various changes to the siting process including
many IEP-sponsored proposals.  So far this is the most comprehensive and
positive siting bill introduced, with the greatest chance of moving forward.
The bill passed out of the committee on a 7 to 0 vote even though most of
the environmental community testified in opposition.  Chris Ellison and I
are continuing to work with the authors, staff to develop additional
language which should be available before the measure is heard in the Senate
Energy Committee on Tuesday.

-- AB 45x (Kelley) also passed 7 to 0 out of the Assembly Revenue and
Taxation Committee this week.  AB 45x would extend the manufacturers
investment credit (MIC) to include the generation of electricity through the
use of solar, wind, geothermal, solid-fuel biomass, waste tire, municipal
solid waste, digester gas, or hydropower with a generating capacity of 30
megawatts or less.  The bill does not include a generator who produces
electricity for sale to a utility pursuant to a contract originally entered
into before January 1, 2001.  The committee staff estimates revenue losses
in the range of $5 to $10 million annually beginning in 2001-02. Sponsored
by CalEnergy, AB 45x will heard in the Assembly Appropriations Committee
next.

-- AB 36x (Wright), which would apply specified repower projects to the
6-month expedited siting process established in AB 970 (2000), passed out of
the Assembly Energy Costs and Availability Committee 17 to 0.  IEP testified
in support of the bill, noting we were still working with the author on
language.  IEP continues to believe that with the current language, few, if
any, projects would qualify and is working with staff on fixing that.
Recent conversations, however, with one of Asm. Wright,s staff indicates
Wright would be willing to drop the bill if the language IEP wants is
already in another measure (SB 28x).  Wright would then carry some other
siting language IEP supports and not in any other vehicle.  I will be
follow-up on this next week and welcome any suggestions.

-- ACR 4x (Cohn), which urges the CEC to move swiftly to license the Metcalf
Energy Center and to permit its construction., passed off the Assembly floor
71 to 0.  The measure, which has 5 primary authors and 42 co-authors, is
headed to the Senate a policy committee hearing.

-- A hearing in the Assembly Natural Resources Committee for AB 34x (La
Suer), which would make various changes to the siting process, including
some IEP-sponsored proposals, was put off again.  The author will be
accepting amendments that will make it a study bill in the special session.
The author will try to move the larger measure in its original form during
the regular session.

-- The Senate Energy Committee held an informational hearing on Energy
Market Reform this week.  Stakeholders, especially the generators, were
grilled on current market problems and solutions.  Senator Bowen, Chair of
the committee, was clearly unhappy with generator,s comments.  It is
unclear, however, how forthcoming her staff was regarding what participants
should have been prepare for in terms of the of the line of questioning that
came primarily from Senators Bowen and Dunn.  Bowen suggested she was going
to hold another hearing on the issue on a date to be determined later.

--  Attached is the most recent legislative tracking report of all the
special session bills introduced to date.  I have separated out the regular
session list of bills since the list was getting out of control.  I will
send that list under separate cover as I,m still plowing through the over
1,300 bills that were introduced last Friday.  Please let me know if you
need copies of any of these bills.


UPCOMING EVENTS:

MONDAY, March 5th
Senate Appropriations Committee
10 am, Room 4203
SB 39x (Speier) ) defines a generator as a utility

Assembly Energy Costs and Availability Committee
Subcommittee on Energy Oversight
2 pm, Room 4202
Info Hearing on Electricity Supply and Demand for Summer 2001.

TUESDAY, March 6th
Assembly Natural Resources Committee
10 am, Room 437
AB 55x (Pacheco) ) exempts CEQA for repowers.
AB 68x (Firebaugh) ) California First
ACR 2x (Cogdill) ) power production and long-term contracts

Senate Energy Committee
1:30 pm, Room 4203.
SB 28x (Sher/Battin) ) makes various changes to the siting process.
SB 47x (Battin/Keeley) ) QF bill

Assembly Energy Costs and Availability Committee
2 pm, Room 4202.

THURSDAY, March 8th
Assembly Natural Resources Committee
Room 437
AB 34x (La Suer) ) makes various changes to siting.

--end--

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


 - 2001 Tracking Report.doc
 - ab08x.IEP comments.doc