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, this energy supply emergency poses a threat to public health, safety, and welfare and requires, among other measures, the construction of new powerplants to ensure reliability of the grid and delivery of power in the State; and

WHEREAS, on February 8, 2001, I issued Executive Order D-27-01 to provide performance awards to accelerate the construction of powerplants that can be brought on-line before July 1, 2001; and

WHEREAS, there is a continuing need for new powerplants to come on-line after July 1, 2001, to meet this summer's peak electricity demand; and

NOW, THEREFORE, I, GRAY DAVIS, Governor of the State of California, by 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IT IS ORDERED that Executive Order D-27-01 is hereby rescinded and replaced by this Order.

IT IS FURTHER ORDERED that the Department of Parks and Recreation shall make its remaining appropriated funds immediately available for transfer at the direction of the Governor to the Department of Water Resources for the provision of performance awards relating to the construction of powerplants for new sources of generation brought on line by August 31, 2001. These expenditures by the Department of Water Resources shall constitute a proper charge against the appropriated funds.

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., which includes Government Code Section 8645.

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.