Subject: FW: CMTA Legislative Weekly - 10/15/01
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Mon, 15 Oct 2001 14:21:02 -0700 (PDT)

FYI.  Some interesting tid-bits from CMTA.
 
-----Original Message-----
From: Geri L. Royer [mailto:[email-masked]]
Sent: Monday, October 15, 2001 2:43 PM
Cc: Royer, Geri
Subject: CMTA Legislative Weekly - 10/15/01

The CMTA Fall Conference scheduled for 
October 30 - November 2 has been canceled. 

  _____  

Legislative Weekly 
October 15, 2001 
Issue 40, Volume 3 

A weekly publication from the 
California Manufacturers & Technology Association 
detailing legislative and regulatory developments in Sacramento

ECONOMIC SUMMIT 

In the wake of repeated economic blows on the state's business community and announcements of losses, layoffs and declining tax revenues, the Governor has stated his intention to hold an Economic Summit in early November with business and labor leaders, and professional economists to identify and discuss measures to stimulate California's economy.   The date and participants will be announced this week.  Governor Davis is also considering the possibility of calling a Special Legislative Session to enact such measures immediately.   In an effort to avoid or minimize a looming State budget deficit, the Department of Finance has instructed state agencies to cut their budgets by 15%. 

CMTA's members are devising a priority list of policies that should be adopted to help mitigate the effects of the international economic cooling and hopefully, stave-off recession in this state. 

POWER AUTHORITY MEETING 

Renewables and the Power Authority 
At an October 5 Consumer Power and Conservation Financing Authority (Power Authority) meeting in San Francisco, Chairman David Freeman acknowledged that renewable peaking capacity may comprise a significant portion of the 15 percent reserve the Authority expects to establish to prevent future price spikes in the cost of electricity. 

Freeman indicated that the Authority has received proposals for 18,000 MW in peaker capacity, which have been evaluated and winnowed down to 3,000 MW.  While commitments to build these peaker facilities have not yet been formalized, the Power Authority is moving forward with proposals for a few hundred renewable megawatts. 

Freeman also indicated that at least two state biomass plants are at risk of shutting down.  He believes that these plants should continue to run, despite the high costs associated with this market.  Power Authority staff has been asked to look at options to keep the plants operating, and to report back to the Power Authority. 

Board member Donald Vial expressed concern at the way in which the Power Authority is looking at the 15 percent reserve.  He believes that the reserve should be a working capacity margin used to phase out dirty plants and to move into, and to promote renewables. 

Board member John Stevens pointed out that the Power Authority has limited funding with which to purchase peaking capacity, and reminded the members that any plan must reasonably balance the costs associated with the generation capacity. 

Department of Water Resources Update 
The Power Authority also received a report from staff of the Department of Water Resources (DWR) who indicated that the Department is looking at load curtailment, renewables and new supplies that ideally are north of Path 15.  The Department believes it has been instrumental in keeping the spot market under control and minimizing the number of blackouts experienced this summer.  The Department also gave a great deal of credit to customers who have been instrumental in preventing blackouts through conservation. 

The Department will be updating its energy portfolio needs, and posting its information on its website at www.cers.water.ca.gov, sometime next week. 

Public Utilities Commission Natural Gas Infrastructure Report 
Barbara Hale, the Director of Strategic Planning at the Public Utilities Commission (PUC) provided an update on the Natural Gas Infrastructure Report that is due to the Power Authority by November 15.  Ms. Hale indicated that the PUC is working with the California Energy Commission (CEC) to evaluate the adequacy of the natural gas infrastructure, including interstate pipelines, intrastate pipelines, local distribution, storage and backbone.  The PUC fully expects to have the report finalized and ready to deliver to the Power Authority by November 15. 

Preliminary findings indicate that in-ground storage is at 85 percent of capacity, a healthy margin to meet demands through the winter.  While there still is room to inject additional natural gas, the PUC is expecting a moderate winter with low gas demand. 
Chairman Freeman requested that the Natural Gas Infrastructure Report also include a forecast of natural gas availability from the lower 48 states and Canada, as well as whether or not California may depend on these sources to meet its needs. 

Board Member Vial questioned if the unbundling of storage has been successful.  Ms. Hale replied that the PUC is monitoring non-core use, and that preliminary findings indicate that many non-core customers are increasing their use of storage. 

Activities Related to Renewable Energy and Conservation 
Staff at the Power Authority reported that coordination between the PUC and the Power Authority is necessary to optimize conservation, energy efficiency, and demand response.  Specifically, the Power Authority is putting together a residential loan program; financing for efficiencies in public buildings; and, financing for small commercial and industrial upgrades.  The Power Authority believes that the small commercial and industrial market is the most under-served, due to the multiple demands on owners and their lack of resources.  The Power Authority is looking at ways to assist these customers in retrofitting their facilities. 

At the other end of the spectrum, the Power Authority believes that large commercial and industrial customers require the least assistance.  The Power Authority believes these customers are well served under current programs, but acknowledged that many of the demand response programs would be better coordinated under the administration of just one agency. 

Finally, Board Member Vial questioned why there has been little emphasis on real time pricing.  Power Authority staff agreed that real time pricing has not been a priority, and that the infrastructure to implement a real time pricing program does not currently exist.  Staff did indicate, however, that a recent $35 million investment in meters should help to incentivize these programs. 

Freeman concluded that it is important for the Power Authority to build on the momentum of conservation, and he acknowledged that technology finally is being priced such that real time pricing makes sense and likely will be an integral part of the Power Authority's program. 

Laura Doll Named as New Executive Director 
Laura Doll of Austin, Texas was approved as the Chief Executive Officer of the Power Authority at the October 5 Board meeting.  Most recently, Doll was Director of Customer Service for Grande Communications.  She also has held the positions of Senior Vice President for Planergy, as well as Chief Administrative Officer for Austin Energy.  Doll received a master of public affairs from the University of Texas at Austin, and a bachelor of arts degree from Virginia Polytechnic Institute.  She will receive an annual salary of $200,000. 

COMPUTER RECORDS CONFIDENTIALITY BILL VETOED (AGAIN) 

Governor Davis vetoed SB 147 by Senator Debra Bowen (D-Marina Del Rey) on October 8.  The bill would have required employers to prepare and distribute by hard copy or electronically, a company monitoring policies and practices notice to each employee, to collect and verify their understanding of the notice, and file and maintain each employee's signed notice indefinitely.  This is the third time Senator Bowen's notice bill has been vetoed by the Governor and we hope that the bill has struck out. 

In his veto message, the governor referred to some of the concerns expressed by employers such as the need to monitor and control the use of company property for business purposes.  Also employers are potentially liable for the misuse of computers for improper purposes, such as sexual harassment, defamation and the like, so employers have a legitimate reason to monitor e-mail and computer files from time to time. 

The Governor said in closing his veto message, " I support reasonable privacy protections for employees in the workplace and my Administration proposed amendments which would carry out the intent of the bill without imposing undue regulatory burdens and potential legal exposure to businesses for doing what any employee should assume is the employer's right when they accept employment.  Senator Bowen rejected the proposed amendments. Thus, I must veto the bill a third time." 

This is a significant victory for employers.  The bill had the potential to open up Pandora's box on employee notices in the workplace by greatly expanding the scope, confirmation and tracking of notices.  CMTA applauds the Governor's veto of SB 147. 

GOVERNOR SIGNS MERCURY LEGISLATION 

Governor Davis has signed legislation to place new controls on products containing mercury.  SB 633 by Senator Byron Sher (D-Palo Alto) places new controls on the disposal of appliance and vehicle components found to contain mercury. 

"I am signing this bill because it will help reduce the amount of mercury added to the environment by broken and discarded thermometers, novelty products, and by mercury-containing electrical switches that are not removed before junked vehicles are crushed or shredded," said Davis. 

SB 633 also bans the sale of new automobiles in California after January 1, 2005 that contain mercury electrical switches. 

LATE BREAKING NEWS: 

SB 71 (Burton D-San Francisco), Workers' Compensation, vetoed by the Governor. 

www.cmta.net <http://www.cmta.net/> 
California Manufacturers & Technology Association 
980 9th Street, Suite 2200 
Sacramento, CA  95814 
(916) 441-5420 phone 
(916) 447-9401 fax 

You are receiving this message today because your company is a valued member of the California Manufacturers & Technology Association (CMTA).  While we'd be pleased to continue to tell you about CMTA's efforts to make California a better place for manufacturing you can unsubscribe by e-mailing a message to [email-masked]