PLEASE INCLUDE THIS INFORMATION.
 
Jim
 
 
-----Original Message-----
From: Dernehl, Ginger 
Sent: Wednesday, September 19, 2001 1:00 PM
To: Alamo, Joseph; Allegretti, Daniel; Allen, Joe; Alvarez, Ramon; Arefieva, Maria; Assaf, Lisa; Bellas, Kirsten; Benson, Eric; Binns, Darran; Bolton, Scott; Boston, Jerry; Boston, Roy; Briggs, Tom; Buerger, Rubena; Burns, Stephen; Canovas, Guillermo; Cantrell, Rebecca W.; Chan, Stella; Comnes, Alan; Connor, Joe; Cooney, Carolyn; Dadson, Aleck; Dasovich, Jeff; Decker, Larry; Dernehl, Ginger; Dressler, Jean; Floris, Vinio; Frank, Robert; Fromer, Howard; Fulton, Donna; Guerrero, Janel; Hamilton, Allison; Hardy Jr, John; Hawkins, Bernadette; Hemstock, Robert; Hetrick, Nancy; Hoatson, Tom; Huang, Karen; Hueter, Barbara A.; Hunter, Bevin; Huson, Margaret; Ibrahim, Amr; Ingersoll, Richard; Kaufman, Paul; Kean, Steven J.; Keene, Patrick; Kingerski, Harry; Kishigami, Kikumi; Knight, Laurie; Landwehr, Susan M.; Lassere, Donald; Lawner, Leslie; Leibman, Lara; Leonardo, Sam; Levy, Alberto; Linnell, Elizabeth; Mara, Susan; Maurer, Luiz; McVicker, Maureen; Migden, Janine; Miller, Terri; Montovano, Steve; Moore, Bill; Nersesian, Carin; Neustaedter, Robert; Nicolay, Christi L.; Nord, Sue; Noske, Linda J.; Novosel, Sarah; Ogenyi, Gloria; Palmer, Germain; Perez, Carmen; Perrino, Dave; Petrochko, Mona L.; Pharms, Melinda; Reblitz, Scott; Rishe, Frank; Rizzo, Helen; Roan, Michael; Robertson, Linda; Robinson, Marchris; Rodriquez, Andy; Ryall, Jean; Lindberg, Susan; Shapiro, Richard; Shelk, John; Shortridge, Pat; Staines, Dan; Steffes, James D.; Stransky, Joan; Stroup, Kerry; Sullivan, Kathleen; Sullivan, Lora; Thome, Jennifer; Tiberi, Fino; Tracy, Lysa; Twiggs, Thane; Walton, Steve; Warner, Geriann; Yeung, Charles; Yoho, Lisa
Subject: FW: Federal Government Affairs Report (September 1-15, 2001) 


-----Original Message-----
From: Shapiro, Richard 
Sent: Wednesday, September 19, 2001 12:53 PM
To: Dernehl, Ginger
Subject: FW: Federal Government Affairs Report (September 1-15, 2001) 


Please distribute to North America.
 

Ginger Dernehl 
Administrative Coordinator 
Global Government Affairs 
Phone# 713-853-7751 
Fax# 713-646-8160 

-----Original Message-----
From: Sullivan, Lora 
Sent: Wednesday, September 19, 2001 12:01 PM
To: Dernehl, Ginger
Cc: Sullivan, Lora
Subject: Federal Government Affairs Report (September 1-15, 2001) 


 

FEDERAL GOVERNMENT AFFAIRS MEMORANDUM FOR HOUSTON

Update on Legislative Issues (September 1-15, 2001)

 ENERGY ISSUES

1.    Senate Energy Chairman Bingaman (D-NM) released his draft "Chairman's Mark" of electricity restructuring legislation.  The draft is positive for Enron on transmission issues (including access, jurisdiction and RTOs) and reliabiilty.  We have concerns about provisions on transparency, market-based rates and merger review.  We have said we are generally pleased, while we work to amend those provisions about which we have concerns.
 
2.    We drafted testimony for Jim Steffes to be the EPSA witness at a House Energy and Air Quality Subcommittee hearing on reliability, siting and transmission pricing issues (the hearing was cancelled due to the tragic events of September 11, 2001).
 

TRADE PROMOTION AUTHORITY
 
House Speaker Dennis Hastert (R-IL) said that he didn't expect the House to vote on Trade Promotion Authority until next month citing a need for House Republicans to "get all our ducks in a row."  Senate Finance Chairman Baucus (D-MT) has stated that he would wait until the House took action on TPA before he would introduce his measure.  With the House pushing the vote until October, it lessens (but doesn't eliminate) the likelihood that a bill will be done this year.
 
Ways and Means Chairman Bill Thomas (R-CA), who is taking the lead for the House Republicans, has vowed to spend more time working with Democrats to craft a bipartisan product.  Ways and Means Ranking Member Carl Levin (D-MI) has not yet introduced his bill.  He is still meeting with Democrats and has stated that he wants to introduce the most "balanced" bill he can that will include labor and environmental provisions.  
 
The Administration continues to push hard for TPA.  They have made securing trade promotion authority their chief trade objective this year.  President Bush recently said that he wants TPA before the World Trade Organization ministerial in November.
 
BANKRUPTCY REFORM
 
House and Senate Conferees are hoping that conflicts between the House and Senate versions of the Bankruptcy Reform bill will be worked out expeditiously.  House Judiciary Chairman James Sensenbrenner (R-MI), who is chair of the Conference, has stated that the Conference will meet formally for the first time next week.
 
There are two sections of the Bankruptcy Reform bill that have significant importance to Enron: 1. financial contract netting provisions, which are included in both the House and Senate versions; and 2. a technical corrections amendment regarding production payments, which is currently included in the House version only.  
 
There are 32 members of the House and Senate who have been appointed to the Conference, which is unusually large.  The Conference has to deal with 38 amendments that the Senate made to the House bill (including the technical corrections amendment regarding production payments).  The Administration has some problems with the bill, none that pertain to our issues.  The progress is expected to be slow.
 
FY 2002 TRANSPORTATION APPROPRIATIONS - MEXICO TRUCKING BAN
 
Just prior to the adjournment for the August Recess, the Senate passed the FY 02 Transportation bill, which contained provisions that called for strict safety standards for Mexico trucks gaining unrestricted access to U.S. roads.  Senator Phil Gramm (R-TX) and Senator John McCain (R-AZ) both vehemently oppose the restrictive language but in the end allowed a final vote on the appropriations measure.  They have vowed, however, to hold the bill up in the House-Senate Conference until the Mexico trucking language is resolved (note: the House prohibitive language is more restrictive, effectively prohibiting Mexico trucks from ever going beyond the current 20-mile radius they now have access to).  The White House has, on several occasions, reiterated their objection to any language in the bill that would halt or slow down NAFTA provisions allowing cross-border transit, which were to have been enacted January 1, 2001 - making the provision well-behind schedule already.
 
While the Mexico's Economic Minister has stated that he would not seek sanctions against the United States for violations of the NAFTA, Mexico President Vincente Fox has stated that he would consider limiting or even prohibiting U.S. trucks on Mexico's roads.  A recent study indicated that the U.S.'s failure to execute the cross-border transit provisions of NAFTA could cost Mexico's economy upwards of $100 billion per year.  
 
The Senate and House will now go to conference on the measure, and it's expected to be a contentious debate in Conference.  
 
MINIMUM WAGE HIKE
 
The House will likely act on a minimum wage measure following Senate action, which is expected this fall.  House Republican leaders are insisting, however, that any increase in the minimum wage be accompanied by tax breaks for small businesses.  Additionally, it is likely that the minimum wage bill will be a vehicle for other business tax credits and pro-business measures.  
 
Senate Majority Leader Tom Daschle (D-SD) said that the Democratic minimum wage bill will come to the floor in the fall.  It is expected, however, that Senate Republicans will attempt to add several tax cuts, which Democrats would oppose unless there are offsets (meaning, the tax measures would have to be paid for elsewhere in the budget).  
 
The White House has said it favors a minimum wage increase providing it contains flexibility provisions.  President Bush would be unlikely to veto a measure absent state flexibility provisions if it contained certain tax cut components.