WHEREAS, on January 17, 2001, I proclaimed a State of Emergency to exist due to the energy shortage in the State of California; and

WHEREAS, there is a high probability that the electricity supply shortage will continue to cause rolling blackouts throughout California affecting millions of Californians; and

WHEREAS, all reasonable conservation, allocation, and service restriction measures will not alleviate this energy supply emergency; and

WHEREAS, the energy supply emergency poses a threat to public health, safety, and welfare;

, Governor of the State of California, by the virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this order to become effective immediately:

IT IS ORDERED that the local air pollution control and air quality management districts (hereinafter "districts") shall modify emissions limits that limit the hours of operation in air quality permits as necessary to ensure that power generation facilities that provide power under contract to the Department of Water Resources are not restricted in their ability to operate. The districts shall require a mitigation fee for all applicable emissions in excess of the previous limits in the air quality permits. The Board is directed to ensure that appropriate modifications are made in all applicable permits of the districts or other local or regional agencies (hereinafter "agencies"). In the event that such modifications do not occur expeditiously, the Board or the Executive Officer shall immediately exercise the powers of the districts or agencies and modify the permits consistent with this order. In exercising the powers of the districts or agencies, the Board or the Executive Officer shall not be required to comply with the provisions of the Administrative Procedure Act, or with the normally required notice and hearing procedures specified in Division 26 of the Health and Safety Code.

IT IS FURTHER ORDERED that the Board shall establish an emissions reduction credit bank using emissions reductions from all available sources. Such credits shall be made available through the Board to powerplant peaking sources that need emissions offsets in order to add new or expanded peaking capacity for the summer peak season in 2001. Such credits shall be provided to such facilities at up to the market rate for emissions reduction credits. In the case of a powerplant that agrees to sell its power under contract to the Department of Water Resources, the State of California will make available where necessary and available the required emissions credits at up to a 50 percent reduction. In order to maximize the amount of electrical generating capacity that can be created with available funding, emissions reduction credits for new generation capacity shall be made available to facilities where necessary and available. Proceeds from the sales of these emissions reduction credits shall be made available to fund emissions reduction programs in the air district where the new or expanded facility is located.

IT IS FURTHER ORDERED that the Board shall make its remaining appropriated funds immediately available for the purchase of emissions offset credits for its emissions reduction credit bank or that of any district.

IT IS FURTHER ORDERED that the Board may contract for the services of necessary qualified personnel to perform these functions. Each is authorized to enter into such contracts as expeditiously as possible and for this purpose shall be exempt from the provisions of the Government Code and the Public Contract Code applicable to state contracts, including, but not limited to, advertising and competitive bidding requirements, to the extent that they would prevent, hinder, or delay the prompt mitigation of the effects of this emergency.

IT IS FURTHER ORDERED that this order shall expire on December 31, 2001, unless extended by further executive order responding to the continued need for emergency action to deal with the electricity emergency or unless terminated by proclamation of the Governor or concurrent resolution of the Legislature that the state of emergency has ended.

The activities herein are authorized to be carried out pursuant to the Emergency Services Act, Government Code Sections 8550 et seq.

I FURTHER DIRECT that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.