Hertzberg Press Conference

----- Forwarded by Jeff Dasovich/NA/Enron on 02/08/2001 03:03 PM -----

=09Jean Munoz <jmunoz@mcnallytemple.com<
=0902/08/2001 02:32 PM
=09=09=20
=09=09 To: IEP <jmunoz@mcnallytemple.com<
=09=09 cc:=20
=09=09 Subject: Hertzberg Press Conference

Attached are press materials from the Hertzberg press conference held
earlier today.

Just FYI, this press conference was originally going to include Republican
members -- and was originally scheduled for last week.

Thanks,
Jean

--
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)

______________________________________________________________________
FOR IMMEDIATE RELEASE CONTACT: Paul Hefner
February 8, 2001 (916) 319-2408

ASSEMBLY DEMOCRATS PUSH TO IMPROVE ENERGY OUTLOOK
Legislative Package Would Increase Supply and Provide Immediate Energy
Savings

SACRAMENTO dAssembly Speaker Robert M. Hertzberg and a coalition of Assembl=
y
Members announced today a package of bills aimed at increasing the supply o=
f
electricity and cutting down on demand through energy efficiency.

"While working to protect consumers in the short term, we have also
been looking for long-term solutions to provide reliable power for
California," said Hertzberg (D-Van Nuys). "Today, we are taking the next
step d proposing realistic ways to meet the energy needs of the world?s
sixth largest economy d and offering sound proposals to help Californians
use energy wisely."

Joined at a news conference by Assemblymembers Christine Kehoe (D-San
Diego) and Carole Migden (D-San Francisco), leaders of the working groups
the Speaker established earlier this year, and other Members of his caucus,
Hertzberg said that the package being introduced will produce more than 750
megawatts and save 1,200 megawatts over the next couple of years.

"It?s important that we look for ways to end this energy crisis on all
fronts d both using short-term solutions to =01@keep the lights on? d as we=
ll
as long-term solutions to stabilize the energy market," said Kehoe, the lea=
d
author of the energy efficiency package. "By providing incentives to make
California?s homes, schools and businesses more energy efficient, we can
save in just a couple of short years enough energy to supplant two or three
new and expensive power plants."

Kehoe said that, by this summer, the energy efficiency package may save
as many as 500 megawatts, equivalent to a new power plant.

Assemblymember Carole Migden agreed, but added, "We know that reducing
demand will not by itself solve our energy crisis. We also have to address
the supply side of the energy equation as well."

The Democrats presented a four bill package aimed at rapidly increasing
and stabilizing the supply of power available to the demands of residents
and businesses. The bills would:

=14 ? Provide $50 million to establish an incentives program to encourage
businesses to install clean and modern on-site generation;
=14 ?? Provide $150 million to develop clean and efficient renewable energy
supply;
=14 ? Allow plants up to 100 megawatts to be cited by local government and =
not
through the more time-consuming Energy Commission review;
=14 ??Ensure power for Californians by requiring new power plants to enter =
into
purchasing agreements with the state.

The Assembly Democrats? proposal also includes an energy efficiency
package of five bills, which would provide funding to, among other things:

=14 ??Replace energy inefficient appliances like refrigerators and air
conditioners;
=14 ? Give schools grants and loans to decrease consumption;
=14 ? Provide 50 percent grants and 50 percent loans to local governments t=
o
retrofit government buildings;
=14 ? Establish a Mobile Efficiency Brigade with $100 million in grants to
nonprofits to hire a team of people to not only distribute low-energy
lightbulbs to residences, saving 125 megawatts, but also to help the other
conservation programs get started well before the summer by providing peopl=
e
to do the work while learning new skills.

"We have reshaped this house," Hertzberg said, "using every resource
available to address this problem. Throughout this effort, our focus has
been on protecting taxpayers, consumers and the future of this great state.

"Today, I am proud to stand with members of my caucus as we take the next
step," the Speaker concluded.

Assembly Democratic Caucus begins today to address the short and mid-term
implications of the ongoing energy needs of the state. The following bills
are the first in a series of proposals the Caucus will be offering to
address the supply and conservation needs of our residential and commercial
energy consumers.

Supply

1. On-site and Distributed Generation. Requires the CEC to design an
incentives program to promote the installment of clean and modern on-site
generation technologies as defined in SB 1298 (Bowen, 2000) including
eliminating standby and installment fees charged by electrical corporations=
.
$50 million shall be allocated to the CEC to subsidize the development of
on-site distributed generation through this program.
Provides: 20 MWs clean power the first year d additive in out years. Also
reduces demand on the grid in peak periods.
(Frommer, Alquist & Wiggins)

2. Renewable Sources of Power. Provides $150 million to establish a loan
guarantee program for underwriting joint venture agreements to develop clea=
n
and efficient renewable energy supply.
Provides: 1,000 MWs over four years.
(Jackson, Aroner & Pavley)

3. Expedited Power Plant Permitting. Increases from 50 to 100 MW generation
facilities subject to local instead of CEC review and approval. Impacts
seven applicants who have withdrawn their applications because of the CEC
review. Provides: 634 MWs.
(Cardoza, Calderon & Salinas)

4. Ensuring Power for Californians. Requires, as a condition of receiving a
permit for plant construction, that developers enter into power purchasing
agreements with the state to ensure that a significant amount of the energy
output is available to the state.
Provides: 6,000 MWs (Hertzberg and Caucus)

TOTAL SUPPLY ADDED: 7,654 MWs over the next four years
Energy Efficiency

1. Residential & Small Business Energy Efficiency Program (AB 29X).
Appropriates $375 million and requires the commission:
=14 ? To pay the costs of installation of an interval meter to a small busi=
ness
that voluntarily reduces its electric consumption.
=14 ? To administer a grant program for the replacement of energy inefficie=
nt
appliances.
=14 ? To administer a grant and loan program for eligible construction or
retrofit projects.
=14 ? Expand the Emerging Renewables Buy-Down Program for renewable energy
systems such as photovoltaics (PVs).
Savings: About 400 MWs
(Kehoe, Cedillo, Nakano, Shelley & Wesson)

2. Schools 2001. Appropriates $250 million for grants and loans to make
2001 schools more energy efficient, including 750 older year-round schools
by June 30, 2001.
Savings: 250 MWs
(Kehoe)

3. 50-50 Local Government Program. Appropriates $350 million as a matching
grant to local governments to make local government buildings energy
efficient.
Savings: 400 MWs
(Steinberg & Oropeza)

4. Mobile Efficiency Brigade. Provide $100 million (50% grants/50% loans)
to nonprofits to distribute energy efficient light bulbs and to assist in
getting all the other programs announced in this package up and running
quickly to achieve as much energy savings as possible by this summer.
Savings: 125 MWs (in addition to the MWs, the Brigade will help us save in
the other elements of the package).
(Correa & Cedillo)

5. Shopping Center Program. Provide $50 million in low-cost loans to
shopping centers to install energy-saving lighting devices.
Savings: 60 MWs
(Lowenthal, Thomson & Nakano)

TOTAL SUPPLY SAVED: 1,235 MWs
500 MWs BY SUMMER

- ASSY Dem Supply/Cons Memo