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, the shortage of available electricity supply will continue to cause rolling blackouts throughout California affecting millions of Californians; and the imminent threat of disruption of electrical power to California's schools, hospitals, homes businesses and roadways constitutes a condition of extreme peril to the safety of persons and property; and

WHEREAS, the State has implemented a comprehensive conservation and demand reduction campaign involving all segments of the public and private sectors, yet all reasonable conservation, allocation, and load curtailment measures will not eliminate this energy supply emergency until sufficient new supply can be brought on line; and

WHEREAS, this energy supply emergency requires the State to seek expertise in expediting the siting of new powerplants and emergency peaking facilities, to increase the output from or restarting existing powerplants in order to ensure reliability of the grid and delivery of power in the State.

WHEREAS, this emergency has caused wholesale power suppliers to discontinue energy sales to these utilities, resulting in the State assuming the obligation to procure electricity for the end use customers of these utilities thereby necessitating the State to acquire the services of energy consultants, bond counsel, legal and financial advisors; 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 the Department of Water Resources (DWR) facilitate the expeditious implementation of the conservation initiatives enacted by Senate Bill 5X and Assembly Bill 29X of the 2001-02 First Extraordinary Session and the 20/20 Program established by Executive Order D-30-01. Revenues from the Electric Power Fund shall be used to fund these essential activities.

IT IS FURTHER ORDERED that DWR retain appropriate expert resources for the implementation and financing of its power purchase program as enacted by Assembly Bill 1X of the 2001-02 First Extraordinary Session.

IT IS FURTHER ORDERED that the State and Consumer Services Agency (hereinafter "Agency"), the Department of General Services (hereinafter "DGS"), and the Energy Commission implement, coordinate, and promote an aggressive energy conservation and demand reduction initiative involving leadership from the State and local governments, schools, and the commercial, industrial, and agricultural sectors, as well as organizers for broad community involvement statewide.

that the DWR and the Department of Finance (hereinafter "DOF") conduct essential and critical activities on an ongoing basis, including energy demand forecasts, energy cost forecasts, financial analysis, rate modeling and design, and other activities related to the State’s negotiations with investor-owned electric utilities and power suppliers, to ensure a sufficient supply of power at just and reasonable prices to meet the power demand of California consumers.

IT IS FURTHER ORDERED that the DGS provide essential legal and related services to advise and assist the State in pending rate litigation, its negotiations with the investor-owned electric utilities related to, among other things, the utilities' undercollections, drafting of legislation and contracts related to the acquisition of power, and matters before the Federal Energy Regulatory Commission related to, among other things, wholesale prices charged by power suppliers.

IT IS FURTHER ORDERED that the Energy Commission act as the project manager in coordinating and ensuring timeliness in the state permitting, siting, finance, design, and construction or restart of electrical generating facilities.

IT IS FURTHER ORDERED that unless otherwise specified above, revenues available in the Disaster Response-Emergency Operations Account of the Special Fund for Economic Uncertainties shall be used to fund all essential activities of the Agency, DGS, DWR, DOF, and Energy Commission pursuant to this order.

IT IS FURTHER ORDERED that the Agency, DGS, DWR, DOF, and Energy Commission shall enter into contracts in furtherance of this order as expeditiously as possible, and is hereby authorized to do so, notwithstanding the provisions of the Government Code and the Public Contracts Code applicable to state contracts, including, but not limited to, advertising and competitive bidding requirements, which provisions are suspended pursuant to Government Code Section 8571 to the extent that they would prevent, hinder, or delay the prompt mitigation of the effects of this emergency. Moreover, any agreement commenced after January 17, 2001, that would otherwise be authorized under this order is hereby affirmed and ratified.

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.

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.