While Rep. Joe Barton (R-TX) awaits the go-ahead from the WhiteHouse to move forward on a “package” of proposals to aid Californiaenergy markets, California Democratic lawmakers on Capitol Hillhave registered their strong objections to Barton’s decision toexclude price controls on wholesale electricity transactions fromconsideration.

Barton forwarded the proposals over the weekend to the WhiteHouse energy task force and is looking for a green light to proceedwith emergency California legislation that incorporates theseideas, said spokeswoman Samantha Jordan. The White House hasassured Barton that it will respond “quickly” so that Barton andhis House Energy and Air Quality Subcommittee can proceed in an”ASAP timeframe” on any legislation. The proposals were culled fromthe series of subcommittee hearings on California’s energy crisisthat were held in recent weeks.

“Some of the legislative proposals you’ve circulated areintriguing,” acknowledged four Democrats on the subcommittee. But”we are concerned that your list of proposals does not adequatelyaddress the single most important step the federal governmentshould take to assist California and other states in the westernpower grid: reining in skyrocketing energy prices.”

This should be the “central focus of any [legislation] wedevelop, as this issue falls solely within the jurisdiction of thefederal government,” wrote Reps. Henry Waxman, Anna G. Eshoo, JaneHarman and Lois Capps in a letter to Barton.

The standoff between House Republicans and Democrats on thecontroversial issue of price controls could sink any legislationthat Barton introduces to address the out-of-control Californiapower markets.

The House Democrats supported their position by referencing FERCCommissioner William Massey, who testified before the subcommitteethat FERC needed to “call a time out from this broken westernelectricity market.” He is the only member of the Commission whoadvocates a temporary price cap on bulk power sales in westernmarkets.

Massey also has called on the Commission to undertake aninvestigation under Section 206 of the Federal Power Act todetermine whether wholesale electricity prices in the West areunjust and unreasonable. Barton reportedly favors such a probe.

“We believe that it is essential that the subcommittee takeimmediate action to address wholesale prices. There are manylegislative vehicles and options from which the subcommittee candraw in crafting an emergency bill,” the lawmakers wrote to Barton.Without federal intervention on the price issue, “California andother western states could face an enormous energy crisis thissummer.”

In addition, “we…strongly object to your proposals toundermine the Clean Air Act. There is widespread agreement amongthose directly involved in California’s electricity system thatclean air rules are not responsible for [the current] electricityshortages.” Environmental Protection Agency Administrator ChristineTodd Whitman has refused to cite the clean air regulations as acontributing factor as well, they said.

Among some of the key ideas offered by Barton include proposalsto establish a Federal Emergency Management Agency office inCalifornia to help the public deal with the blackouts that arepredicted for this summer; turn over responsibility for theexpansion (and payment) of the critical Path 15 – a south-to-northtransmission line for shipments in California – to the federalWestern Area Power Administration; require FERC to establishinterconnection standards for distributed generation (which haslong been advocated by Massey); require FERC to issue an orderpermitting Qualifying Facilities and other small generators to makepower sales to third parties; and allow states to adjust DaylightSavings Time.

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