BILL NUMBER:  SBX1 5
  ITEM VETO DATE: 04/11/2001




APR 11 2001

To Members of the California State Senate:

I have signed Senate Bill 5X 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 appropriation:

* $10 million to the California Energy Commission (CEC) for
incentives for installation of light-emitting diode (LED) traffic
signals.

In addition, I am reducing the following allocations:

* From the funds appropriated to the Public Utilities Commission,
reduce the allocation from $16.3 million to $12 million for pump and
motor retrofits for oil and gas producers and pipelines.

* From the funds appropriated to the CEC, reduce the allocation from
$60 million to $40 million for allocation to locally owned public
utilities for energy efficiency, peak demand reduction and low-income
assistance measures.  However, I am directing the Department of
Community Services and Development to offset this reduction by
proportionally increasing the Low-Income Home Energy Assistance
Program (LIHEAP) funds appropriated by this bill to community based
organizations in areas served by lo cally owned public utilities.

* From the funds appropriated to the CEC, reduce the allocation from
$35 million to $30 million for programs for the low-energy usage
building materials program.

* From the funds appropriated to the CEC, reduce the allocation from
$75 million to $70 million for the purchase of high-efficiency
electrical agricultural equipment.  * From the funds appropriated to
the Department of General Services, reduce the allocation from $50
million to $40 million for energy efficiency projects in state
buildings, including community colleges.

Regretfully, a previous version of this bill contained a $15.4
million appropriation to the Department of Water Resources to
implement recommendations from my Advisory Drought Planning Panel.
These funds would have provided incentives to better manage surface
and groundwater resources to create greater energy and water
efficiencies.  I encourage the Legislature to appropriate funds for
this important purpose.

Sincerely,



GRAY DAVIS