BILL ANALYSIS AJR 2 Page 1 Date of Hearing: May 6, 2002 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Roderick D. Wright, Chair AJR 2 (Havice) - As Amended: January 15, 2002 SUBJECT : Defense industry. SUMMARY : Memorializes the Congress to designate various defense contractors as operating in the national interest, thereby protecting them from possible electricity interruptions. Specifically, this resolution : 1)Declares, among other things, that: a) California is host to a vast array of manufacturing and support industries essential to America's military preparedness and national security, not the least of which are plants engaged in the planning and production of the C-17 Globemaster airlift plane, the Delta II Rocket, the F-18 fighter, and other aerospace products. b) The recent electrical supply crisis has negatively impacted the state's vast military industrial contractors and has resulted in temporary shutdowns and slowdowns of production lines due to the price and availability of electricity. c) In the event that a future energy crisis occurs, plant shutdowns and slowdowns due to energy policies threaten the viability of our state's military industrial complex. d) The security of our nation places constant demands of readiness upon California's utility industries. e) Energy regulators are empowered to issue rules that delineate who are exempted from involuntary electric service outages and interruptions. f) It is appropriate that the Congress of the United States act through legislation to designate the various contractors now engaged in advanced military hardware technology work for this nation as "operating in the national interest," thereby protecting these businesses from the threat of electric service interruption, owing to AJR 2 Page 2 the lessons of the past and the possibility of future energy disruptions 2)Memorializes Congress to legislatively designate the various contractors engaged in defense work for the nation as "operating in the national interest." FISCAL EFFECT : Unknown. COMMENTS : Author's statement "Due to the current national situation regarding the security of our nation, this resolution is important to ensure that California has a sustained, reliable source of energy in the event that an energy crisis may arise in the future. This reliable source of electricity is necessary to maintain the defense industry and military readiness of California and the nation. This resolution is very important so that the President and the Congress are ever aware that California is among the leaders in the defense industry and therefore on the front lines in protecting our national security." REGISTERED SUPPORT / OPPOSITION : Support Aerojet General, Inc. Opposition None on file. Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083