CCC   PPPPP   U    U    CCC       N    N  EEEEE  W  W  W   SSS
 C   C  P    p  U    U   C   C      NN   N  E      W  W  W  S   S
C       P    P  U    U  C           N N  N  E      W  W  W  S
C       PPPPP   U    U  C           N N  N  EEE    W W W W   SSS
C       P       U    U  C           N  N N  E      WW   WW      S
 C   C  P       U    U   C   C      N   NN  E      W     W  S   S
  CCC   P        UUUU     CCC       N    N  EEEEE  W     W   SSS
             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Dianne Dienstein             December 9, 1996  CPUC - 96
         415-703-2423                 (R. 94-04-031/ I.94-04-032)

LEGISLATION RENDERS ELECTRIC INDUSTRY RESTRUCTURING EIR UNNEEDED

    The California Public Utilities Commission (CPUC) today
halted preparation of a "policy-level" Environmental Impact
Report (EIR) to study the environmental effects of moving to a
competitive electric generation market.  Recently-enacted
Assembly Bill 1890 (Stats. 1996, Ch 854) takes precedence in
planning the new market, and thus renders this type of EIR
unnecessary.
    The Commission proposed a policy to guide transition to and
implementation of generation competition in California's electric
industry on December 20, 1995.  Among the many planning and
implementation tasks it undertook after that date, was hiring of
an independent consultant to prepare an EIR pursuant to CEQA.
    Fundamental to an EIR is comparison of the environmental
consequences of a policy, and what would happen if the policy
were not implemented.  CEQA's goal is to influence public agency
decisions, and environmental review is not appropriate if it has
no potential to influence an agency's decision.  With enactment
of AB 1890, there is no alternative.  The policy of introducing
competition into California's electric generation sector in 1998
is now law.
    In response to requests by several air quality regulatory
agencies, the CPUC will prepare, outside the context of CEQA, a
report containing relevant, readily available information that
might be useful to them or to other agencies in pursuing their
respective mandates.
                               ###