----- Forwarded by Jeff Dasovich/NA/Enron on 03/10/2001 12:17 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	03/09/2001 06:59 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>, "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>, 
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<fderosa@sanfrancisco.usgen.com>, "Eric Eisenman" 
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<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 
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<danielle.quan-hill@mirant.com>, "Chris Ellison" <CTE@eslawfirm.com>, "Doug 
Kerner" <runwithmee@aol.com>, "Andy Brown" <ABB@eslawfirm.com>, "Dave 
Modisette" <dmodis@ns.net>
		 Subject: Legislative Status Report Week Ending 3/9


Date: 3/9/01
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 3/9


RECENT EVENTS:

-- AB 60x (Hertzberg) is going to be amended before its hearing on Monday.
The original version would have required, as a condition of permitting a
powerplant, developers to offer to sell the power to California entities.
The new amendments do not appear to address IEP,s concerns with the measure
and may be even worse.  IEP is currently reviewing the following language
and is expected to maintain its opposition:

Section 25525.3 is added to the Public Resources Code, to read:
(a) Notwithstanding any other provision of law, the commission shall
require, as a condition of certification, that the applicant shall offer to
enter into a contract to sell to an electrical corporation as defined in
Section 218 of the Public Utilities Code, a municipal corporation as defined
in Section 9601 of the Public Utilities Code, or the Department of Water
Resources, electrical power generated by the facility as its initial and
continuing available capacity on terms not less favorable than the terms of
the next offer that the applicant makes for the sale of electrical power
generated by that facility.
(b) This section applies to applications filed prior to the effective date
of the act that added this section that have not been certified by the
commission prior to that date.
(c)  Nothing in this section shall be construed to authorize the commission
to delay the adoption of a final decision in any proceeding in which public
record has been closed and submitted for a final decision.
(d)  The commission shall adopt rules and regulations for the implementation
and enforcement of this section.

-- AB 8x (Migden), which would give the EOB additional and undefined powers
related to the coordination of operation and maintenance schedules, passed
the Assembly Appropriations committee.  As a follow-up to the policy
committee hearing, IEP submitted comments and amendments to the author,s
office.  Before any changes to the bill are made, Migden,s office has
indicated their preference for a larger stakeholder meeting to address these
and others concerns, which is unlikely to occur before the bill passes off
the Assembly floor next week.  IEP,s primary interest is getting changes to
the bill that it can live with before it reaches the Senate policy
committee.

-- SB 39x (Speier), which would define generators as public utilities and
put the CPUC in the role of coordinating outages and maintenance schedules,
passed out of the Senate Appropriations Committee with little change.  One
of the amendments taken would clarify that only owners of the divested
plants would be subject to the provisions in the bill.  Several generators
met with Speier this week to plead their case with little affect.  The
measure will go to the Senate floor next and is expected to pass.  Where
this measure will find difficulties is in the Assembly, which will have
already passed out AB 8x (Migden), which accomplishes the same goals as SB
39x.  Chances are that the Assembly ECA committee would hold SB 39x in
deference to the committee,s position on AB 8x.  The same could be said for
AB 8x on the Senate side, but AB 8x came from the Administration which may
give it more weight to move it forward.

-- The Senate Energy Committee heard SB 47x (Battin), which lowers the
payments of the purchase power agreements between the QFs and the IOUs, but
did not vote on the measure.  Senator Bowen, Chair of the committee, was
intent on discussing selected provisions of the bill and their relationship
to public policy objectives before she felt comfortable taking a vote.  She
indicated a desire to continue discussions with stakeholders to address and
clarify issues and concerns in the bill, and bring it up for another hearing
and vote most likely next Tuesday.  IEP continues to seek support for the
measure and add co-authors.

-- The Senate Energy Committee also heard 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 9 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 goes to the Assembly.  Senator Bowen, however,
has indicated she will bring it back to her committee for another hearing if
there are any significant changes, slowing the bill,s progress.

-- 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 Appropriations Committee.  IEP testified in support of the
bill, still 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.

--  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, March 5th
Senate Appropriations Committee
SB 28x (Speier) ) makes various changes to siting process

Assembly Energy Costs and Availability Committee
AB 38x (Jackson) ) provides financial incentives for renewable generation
AB 60x (Hertzberg) ) ties &California first8 language to the siting process.

Assembly Revenue and Taxation Committee
AB 62x (Cohn) ) relating to local property taxes

--end--

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







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