Message-ID: <11113063.1075846338283.JavaMail.evans@thyme> Date: Tue, 10 Oct 2000 04:41:00 -0700 (PDT) From: cynthia.sandherr@enron.com To: thomas.white@enron.com, bill.votaw@enron.com, john.carr@enron.com, laren.tarbet@enron.com, robert.frank@enron.com, vicki.sharp@enron.com, robert.williams@enron.com Subject: def authorization Cc: steven.kean@enron.com, richard.shapiro@enron.com, joe.hillings@enron.com, tom.briggs@enron.com, chris.long@enron.com, stephen.burns@enron.com, allison.navin@enron.com, bmoss@gcwdc.com, mymirviss@venable.com, peggy.mahoney@enron.com, hap.boyd@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: steven.kean@enron.com, richard.shapiro@enron.com, joe.hillings@enron.com, tom.briggs@enron.com, chris.long@enron.com, stephen.burns@enron.com, allison.navin@enron.com, bmoss@gcwdc.com, mymirviss@venable.com, peggy.mahoney@enron.com, hap.boyd@enron.com X-From: Cynthia Sandherr X-To: Thomas E White, Bill Votaw, John Carr, Laren Dean Tarbet, Robert Frank, Vicki Sharp, Robert C Williams X-cc: Steven J Kean, Richard Shapiro, Joe Hillings, Tom Briggs, Chris Long, Stephen D Burns, Allison Navin, bmoss@gcwdc.com, mymirviss@venable.com, Peggy Mahoney, Hap Boyd X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Dod X-Origin: KEAN-S X-FileName: skean.nsf Attached herewith is the filed Conference Report statutory and report language for the Department of Defense Reauthorization. Today, at 5:00 p.m. EST, The House Rules Committee will meet to formulate a rule on H.R. 4205, The Floyd Spence National Defense Authorization Act for FY2001--Conference Report . The plan is to then vote on both the Rule and the Conference Report on the House floor tomorrow, October 11th. The Senate also plans consideration this week, but they have not yet announced their exact date for floor consideration (and they are still seeking resolution of the price cap concerns which could result in a possible filibuster.) The Conference statutory language and report language is a victory for Enron Federal Solutions which had been threatened with House language which would have required a sole source by the local franchise utility. The House receded to the Senate language (translation: the Hefley language was killed.) Further, the political compromise reached does not support state franchise rights; nor does it challenge Federal sovereignty; nor does it challenge bundling; but it does affirm the competitive rights for non-utility bidders. Given the resources employed by EEI and their member companies plus employed by APPA, NRECA and NARUC, this is a major victory for EFS and the DOD. By close of business today, we need to determine whether or not to proceed with a possible floor Colloquy. Congratulations to all involved with this successful team effort! SEC. 2813. CONVEYANCE AUTHORITY REGARDING UTILITY SYSTEMS OF MILITARY DEPARTMENTS. (a) Selection of Conveyee.--Subsection (b) of section 2688 of title 10, United States Code, is amended-- (1) by inserting ``(1)'' before ``If more than one''; and (2) by adding at the end the following new paragraphs: ``(2) Notwithstanding paragraph (1), the Secretary concerned may use procedures other than competitive procedures, but only in accordance with subsections (c) through (f) of section 2304 of this title, to select the conveyee of a utility system (or part of a utility system) under subsection (a). ``(3) With respect to the solicitation process used in connection with the conveyance of a utility system (or part of a utility system) under subsection (a), the Secretary concerned shall ensure that the process is conducted in a manner consistent with the laws and regulations of the State in which the utility system is located to the extent necessary to ensure that all interested regulated and unregulated utility companies and other interested entities receive an opportunity to acquire and operate the utility system to be conveyed.''. (b) Applicability of Regulatory Requirements.--Subsection (f) of such section is amended-- (1) by inserting ``(1)'' before ``The Secretary''; and (2) by adding at the end the following new paragraph: ``(2) The Secretary concerned shall require in any contract for the conveyance of a utility system (or part of a utility system) under subsection (a) that the conveyee manage and operate the utility system in a manner consistent with applicable Federal and State regulations pertaining to health, safety, fire, and environmental requirements.''. Conveyance authority regarding utility systems of military departments (sec. 2813) The House bill contained a provision (sec. 2813) that would amend section 2688 of title 10, United States Code, to require the secretary concerned to comply with the competition requirements of section 2304 of title 10, United States Code, in the conveyance of utility system infrastructure. The provision would also require that the secretary concerned carry out a conveyance or award only if he determines that the conveyance or award complies with State laws, regulations, rulings, and policies governing the provision of utility systems. The Senate amendment contained a provision (sec. 2813) that would amend section 2688 of title 10, United States Code, to clarify that the secretary concerned may use procedures other than competitive procedures only under the circumstances specified in section 2304 (c) through (f) of title 10, United States Code. The House recedes with an amendment that would require the secretary concerned to structure the solicitation process for the privatization of utility systems on military installations in such a manner that would allow, to the maximum extent possible, all interested regulated and unregulated entities the opportunity to acquire and operate utility systems on military installations regardless of franchise rights in the area of the installation concerned. The amendment would also direct the secretary concerned to require the conveyee or awardee of the utility system to manage and operate the utility system consistent with federal and state regulations pertaining to health safety, fire, and environmental requirements.