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Date: Thu, 24 May 2001 11:47:43 -0700 (PDT)
From: kevinscott@onlinemailbox.net
To: skeane@enron.com
Subject: Shift May Empower California.htm
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Thanks for taking time to call  yesterday.  Good luck with the Lockyer situ=
ation.  I truly do believe  that direct and prompt interaction with Lockyer=
 will prove more effective for  Enron than delayed or intermediated action.=
    As we discussed,  if I can be of any help with reconnaissance or as sou=
nding  board, just let me know.
=20
I have attached an article from  this morning's LA Times.  It provides an C=
alifornia view on how the  shakeup in the Senate might impact the state's e=
nergy  situation.  Certainly, by the time that President Bush visits  the C=
alifornia in a few days, the state's two Democratic US  Senators will be a =
good bit more empowered.
=20
Kevin
213-926-2626
=20

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[IMAGE]  [IMAGE] =09[IMAGE]=09[IMAGE] Thursday, May 24, 2001 | [IMAGE]Print=
 this story  [IMAGE] [IMAGE]  Shift May Empower California    By RICHARD SI=
MON, ELIZABETH SHOGREN, Times Staff  Writers        WASHINGTON--James  M. J=
effords has never mattered much to Californians. Until now.        The Verm=
ont senator's widely anticipated  decision to abandon his fellow Republican=
s and put Democrats in control of  the Senate could have big implications f=
or California, particularly on  energy and environmental policy, lawmakers =
and lobbyists said Wednesday.        The change, which Jeffords is expected=
  to announce today, could increase political pressure on the Bush  adminis=
tration to respond more aggressively to California's electricity  crisis, t=
hese insiders said.       And it  might force the White House to compromise=
 on key elements of the national  energy policy it unveiled last week. In f=
act, the administration's  proposed budget cuts for programs to promote ren=
ewable energy were said to  be a factor in Jeffords' decision.       At  th=
e very least, Senate observers said, Sen. Dianne Feinstein (D-Calif.) is  l=
ikely to get the floor vote she has sought on price controls for  wholesale=
 electricity.       That doesn't  necessarily mean that the administration'=
s critics will be able to have  everything their way. Even if the Senate ap=
proves electricity price caps,  for example, the measure would face stiff o=
pposition in the GOP-dominated  House--and a likely veto if it made it to t=
he president's desk.        Still, a Democratic majority in the  Senate wou=
ld give Feinstein and other party members a platform to turn up  the politi=
cal heat on the administration and congressional Republicans on  energy pol=
icy.       "It kicks up the dust,"  groaned one energy industry lobbyist wh=
o requested anonymity.        Observed Sen. John F. Kerry (D-Mass.):  "If P=
resident Bush's hard-edged conservative approach has in fact caused  the ba=
lance to shift towards Democrats in the Senate, it will have  profound impl=
ications not just for California, but for the environment and  our nation's=
 energy policy."        Environmentalists seemed almost giddy as  they cont=
emplated the possible impact of Jeffords' decision on the  policies they ca=
re about.       All of a  sudden, they said, it seems less likely that oil =
exploration will take  place in the Arctic National Wildlife Refuge, that r=
ecreational  snowmobiles will have free access to Yellowstone National Park=
, or that  the administration's desire to promote nuclear power will be emb=
raced by  Congress.       On the other hand, it seems  more probable that C=
ongress would approve a new plan for managing a vast  swath of the Sierra N=
evada to protect the region's oldest trees, consider  legislation to restri=
ct emissions of carbon dioxide from power plants and  protect California fr=
om a resurgence of offshore oil drilling.        "It's stunning how broad t=
he  repercussions are, particularly on the environment," said Gregory Wetst=
one  of the Natural Resources Defense Council. "We're trying not to count o=
ur  chickens before they hatch. But it will be easier for us in our battles=
 at  least to keep from moving backwards."        For instance, Jeffords is=
 a chief  advocate of a bill that would regulate carbon dioxide from power =
plants.  And if events play out as expected, he'll become the new chairman =
of the  Senate committee with jurisdiction over the issue.        Another i=
ssue under his purview would be  the two-decade dispute over a proposed rep=
ository for the nation's spent  nuclear fuel at Yucca Mountain in Nevada.  =
      "Yucca Mountain is a dead turkey,"  declared Michael Francis of the W=
ilderness Society.        Environmentalists had been worried that  a number=
 of pro-development provisions would be packed into appropriation  bills. B=
ut with Democratic senators in charge, that would become less of a  threat,=
 they said.       "Every wacko idea  Republicans have will get a higher lev=
el of scrutiny," Francis said.        The biggest change would be the power=
 of  Senate Democrats to decide which bills will be considered in committee=
s,  and which ones will make it to the floor of the Senate for votes.      =
  As part of a new Democratic majority,  Feinstein and fellow California De=
mocrat Barbara Boxer are likely to gain  leverage with the administration o=
n a number of issues considered  important to the state.       "That transl=
ates  into more federal assistance for California across the board," predic=
ted  Steve Maviglio, spokesman for Gov. Gray Davis.        "I think it mean=
s more attention to our  state, for sure," Boxer said. "Right now, the pres=
ident doesn't seem to  give a darn. They're all looking at California as a =
Democratic state.  They're not interested."       Feinstein, who  has been =
unable to arrange a meeting with Bush to discuss the energy  crisis, may ge=
t better treatment if winning Democratic support becomes  more important to=
 the administration. She has been regarded as a  bridge-builder who worked =
effectively with Republicans in the past.        "This has not been a warm =
and friendly  administration," she complained Wednesday. "They've got peopl=
e who know  all the answers and don't want to listen."        The White Hou=
se disputed that. In fact,  Bush agreed Wednesday to meet with Davis during=
 the president's first  visit to California next week.       Under a  Democ=
ratic majority, Feinstein would be in line to chair two  subcommittees: the=
 military construction panel of the Senate  Appropriations Committee, and t=
he technology, terrorism and government  information subcommittee of the Se=
nate Judiciary Committee.        Boxer would be in line to chair the  subco=
mmittee on Superfund, waste control and risk assessment, and the  Foreign R=
elations subcommittee on international operations and terrorism.        Mav=
iglio predicted that the effects of  Jeffords' expected party defection wou=
ld be felt immediately.        The chairmanship of the Senate Energy  and N=
atural Resources Committee would be taken away from Frank H.  Murkowski (R-=
Alaska), who has been "openly hostile to California's  plight," and handed =
to Jeff Bingaman (D-N.M.), who supports Davis' request  for electricity pri=
ce controls, according to Maviglio.        Democrats have assailed Bush's e=
nergy  plan for tilting heavily toward the supply side. With Democrats in c=
harge  of the Senate, the administration would be more likely to compromise=
,  perhaps beefing up funding for Democrat-supported causes such as increas=
ed  energy assistance to low-income households and more aggressive promotio=
n  of conservation and renewable energy sources such as wind and solar powe=
r.     Search  the archives of the Los Angeles Times for similar stories ab=
out:  United  States - Politics , Republican  Party , James  M Jeffords , P=
olitical  Party Defections , California  - Politics , Senate  (U.s.) . You =
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