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