BILL NUMBER:  ABX1 29
  ITEM VETO DATE: 04/11/2001




APR 12

To Members of the California State Assembly:

I have signed Assembly Bill AB 29X with the following line item
vetoes and reductions to more closely align the bill with my
expenditure plan and to prioritize conservation measures for this
summer.

I am eliminating the following:

* $25,150,000 million re-appropriation from the Proposition 98
Reversion Account to the Chancellor of the California Community
Colleges for energy efficient projects and a statewide utility usage
database.  These funds are already budgeted for other purposes and
are required by law to be used by community colleges for educational
purposes.

* $20 million to the Department of Community Services and Development
to supplement the Low-Income Housing Energy Assistance Program
(LIHEAP). $120 million has been provided for this program in SB 5X.

* $50 million to the California Energy Commission (CEC) for loans and
grants for construction and retrofit projects and $50 million to the
CEC for the Small Business Energy Efficiency Refrigeration Loan
Program.  These new programs require the establishment of
administrative procedures and will not deliver peak reduction savings
for this summer.

* $24 million to the Department of Corrections to install systems to
retrofit generating units.  These funds would not increase
electricity supply or reduce demand.

* $15 million to the Public Utilities Commission to fund a study of
real-time meters. This bill appropriates funds for the purchase and
installation of these meters.

In addition, I am reducing the following allocations:

* From the funds allocated to the California Conservation Corps,
reduce the allocation from $40 million to $20 million for the Mobile
Efficiency Brigade.  In order to achieve the most effective energy
savings by this summer, I am directing the Conservation Corps to use
these funds to purchase materials and mobilize crews to deliver high
efficiency lighting to low-income residences.

While I am signing this bill, it is my understanding that the
Legislature will enact subsequent legislation to remove the mandate
created by the Statewide Energy Management Program.  I am also
requesting subsequent legislation to continuously appropriate the
Renewable Energy Loan Guarantee Program.  It is standard for loan
guarantee programs to be continuously appropriated and not contingent
upon the annual budget.  As drafted, this bill removes the incentive
for banks to participate in this wo rthy program.

Sincerely,







GRAY DAVIS