ML020420223

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Declaration of Margaret J. Kim in Support of Joinder of the People of the State of California Ex. Rel. Dtsc, Et. Al. to Cpcu Objection to Debtor'S Second Motion for Order Further Extending Exclusivity Period to Permit Filing of Alternative
ML020420223
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 01/09/2002
From: Michael Kim
State of CA, General Counsel of Resource Agency
To:
Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM
Download: ML020420223 (4)


Text

BILL LOCKYER Attorney General of the State of California x~

i~. I I, Margret J. Kim, declare as follows:

MORRIS BEATUS 2 1. I am employed by the State of California in the position of General Counsel of Senior Assistant Attorney General MARGARITA PADILLA, State Bar No. 99966 3 the Resources Agency, a cabinet-level state agency directed by the Secretary of the Resources, Deputy Attorney General P.O. Box 70550 4 who adopts the state's regulations to implement the provisions of the California Environmental 1515 Clay Street, 20" Floor Oakland, CA 94612-0550 5 Quality Act ("CEQA") (Public Resources Code section 21000 et. seq.), pursuant to the provisions Telephone: (510) 622-2135 Facsimile: (510) 622-2270 6 of Public Resources Code section 21084. The Resources Agency is also responsible for the STEVEN H. FELDERSTEIN, State Bar No. 059678 7 conservation, enhancement, and management of California's natural and cultural resources, PAUL J. PASCUZZI, State Bar No. 148810 FELDERSTEIN FITZGERALD WILLOUGHBY & 8 including land, water, wildlife, energy, parks, minerals, and historic sites. The Resources Agency PASCUZZI LLP 400 Capitol Mall, Suite 1450 has the power of general supervision over, and is directly responsible for, the operations of 9

Sacramento, CA 95814 Telephone: (916) 329-7400 10 several departments, boards, conservancies, commissions, and programs including the Coastal Facsimile: (916) 329-7435 Attorneys for the People of the State of California, Ex Rel. 11 Commission, Department of Boating and Waterways, Department of Conservation, Department California Department of Toxic Substances Control, Central Coast Regional Water Quality Control Board, Colorado River 12 of Fish and Game, Department of Forestry and Fire Protection, Department of Parks and Basin Regional Water Quality Control Board, State Water Resources Control Board, Lahontan Regional Water Quality 13 Recreation, Department of Water Resources, Energy Commission, Native American Heritage Control Board, Central Valley Regional Water Quality Control Board, San Francisco Bay Regional Water Quality Control 14 Commission, and Wildlife Conservation Board (collectively, the "Resources Agency").

Board, North Coast Regional Water Quality Control Board, California Department of Fish and Game, California Department 15 2. I have personal knowledge of the facts stated herein except as to matters stated of Forestry and Fire Protection, and California Department of Water Resources 16 upon infonmation and belief, andas to those matters, I believe them to be true. If called upon to UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA 17 testify in this matter, I could and would testify competently to the facts set forth herein.

SAN FRANCISCO DIVISION 18 3. 1 submit this declaration on behalf of the Resources Agency in support of the In re: Case No. 01-30923 DM 19 joinder by the various state agencies listed on the caption of this pleading in the California Public PACIFIC GAS AND ELECTRIC Chapter 11 Case COMPANY, a California corporation, DECLARATION OF MARGRET J. KIM IN 20 Utilities Commission's Objection to Pacific Gas & Electric's Second Motion for Order Further SUPPORT OF JOINDER OF THE PEOPLE Debtor. OF THE STATE OF CALIFORNIA EX. REL. 21 Extending Exclusivity Period for Filing Plan of Reorganization to Permit the California Public DTSC, ET. AL. TO CPUC OBJECTION TO Federal I.D. No. 94-0742640 DEBTOR'S SECOND MOTION FOR ORDER Utilities Commission to File an Alternative Plan of Reorganization.

22 FURTHER EXTENDING EXCLUSIVITY PERIOD TO PERMIT FILING OF 23 4. The Resources Agency has had a major role with respect to the environmental ALTERNATIVE PLAN Date: Januaiy 16, 2002 24 issues in the proceedings before the California Public Utilities Commission (the "Commission")

Time: 9:30 a.m.

Place: 235 Pine St., 22nd Floor 25 in which PG&E has sought approval to auction its hydroelectric generation assets, application no.

San Francisco, California 26 99-09-053, and other related proceedings. The Resources Agency convened and coordinated the 27 work of 15 state and federal agencies with environmental and energy interests in these 28 proceedings over the last two years to ensure that CEQA is fully applied to the Commission's Declaraotio tn Support of Joinder to Objection Decloration to Supprt ofloindcr to Objection 1152.100 to Motion to Further Exteod Exolusivity Period 1152.100 -!- to Motion to FurtherExtendExclusivity Period AtV " I-,I, 4 if

!<<,Cý 14

JAN-09-02 11:59 AM AGENCY.LEGAL 9166538123 P. 02 I discretionary decisions. The Resources Agency also has a supervisory role with respect to many 2 of the agencies which would have to grant approvals in connection with the transfers of 3 ownership of natural gas pipelines and electric transmission lines proposed as part of PG&E's 4 Plan of Reorganization. As I understand it, PG&E seeks approval from this Court to transfer 5 those assets in connection with its Plan of Reorganization relying on preemption by the 6 Bankruptcy Code to claim that state agency review and approval under California law, such as 7 CEQA is not required.

8 5. PG&E has never attempted to negotiate the terms of either its original or 9 amended Plan of Reorganization with me, or, to the best of my knowledge, and upon information 10 and belief, representatives of the Resources Agency or any components thereof Since this case I1 began, PG&E has not contacted me, or, to the best of my knowledge, and upon information and 12 belief, any other representatives of the Resources Agency or any components thereof, regarding 13 the terms of PG&E's Plan or alternative means of reorganizing PG&E's bankruptcy estate and 14 paying its creditors. Additionally, I was not nor, to the best of my knowledge, and upon 15 information and belief, was any representative of the Resources Agency or any components 16 thereof, given any meaningful notice of PG&E's Plan prior to it being publicly announced and 17 then filed with the Court.

18 I declare under penalty of perjury under the laws of the tri~ed States and the State of 19 California that the foregoing is true and correct. Executed this day of January, 2002, in cL 20 Sacramento, California.

21 22 223 General Counsel, Resources Agency 24 25 26 27 28 152,100 Ditclitniion in SuppOr of Joindff to Obj0=tio to Motion to Futthwr Stwtd k*tluiovity Fronod

1 The People of the State of California, ex. rel. California Department of Toxic Substances 1 BILL LOCKYER Attorney General of the State of California 2 Control, Central Coast Regional Water Quality Control Board, Colorado River Basin Regional 2 MORRIS BEATUS Senior Assistant Attorney General 3 Water Quality Control Board, State Water Resources Control Board, Lahontan Regional Water 3 MARGARITA PADILLA, State Bar No. 99966 Deputy Attorney General 4 Quality Control Board, Central Valley Regional Water Quality Control Board, San Francisco Bay 4 P.O. Box 70550 1515 Clay Street, 2 0th Floor 5 Regional Water Quality Control Board, North Coast Regional Water Quality Control Board, 5 Oakland, CA 94612-0550 Telephone: (510) 622-2135 6 California Department of Fish and Game, California Department of Forestry and Fire Protection, 6 Facsimile: (510) 622-2270 STEVEN H. FELDERSTEIN, State Bar No. 059678 7 and California Department of Water Resources (collectively, the "State"), hereby file this joinder 7 PAUL J. PASCUZZI, State Bar No. 148810 FELDERSTEIN FITZGERALD WILLOUGHBY & 8 to the California Public Utilities Commission's (the "Commission") objection to Pacific Gas &

8 PASCUZZI LLP 400 Capitol Mall, Suite 1450 9 Electric Company's second motion for order further extending exclusivity period for filing plan 9 Sacramento, CA 95814 Telephone: (916) 329-7400 10 of reorganization ("PG&E Motion") to permit the Commission to file an alternative plan of 10 Facsimile: (916) 329-7435 11 reorganization ("Commission Objection") as follows.'

11 Attorneys for the People of the State of California, Ex Rel.

California Department of Toxic Substances Control, Central 12 The State hereby joins in the Commission's objection to PG&E's Motion. For the reasons 12 Coast Regional Water Quality Control Board, Colorado River Basin Regional Water Quality Control Board. State Water 13 set forth in the Commission Objection, the State contends that PG&E has not established cause as 13 Resources Control Board, Lahontan Regional Water Quality Control Board, Central Valley Regional Water Quality Control 14 is required under section 1121(d) of the Bankruptcy Code for a further extension of the 14 Board, San Francisco Bay Regional Water Quality Control Board, North Coast Regional Water Quality Control Board, 15 exclusivity period. As is the case with the Commission, PG&E has not even attempted to 15 California Department of Fish and Game, California Department of Forestry and Fire Protection, and California Department of 16 negotiate with the Resources Agency regarding its plan of reorganization during the nine months 16 Water Resources UNITED STATES BANKRUPTCY COURT 17 it has enjoyed exclusivity. See, Declaration of Margret Kim, General Counsel of the Resources 17 NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 18 Agency, in support of this joinder. Because they have filed claims and have regulatory authority 18 In re: Case No. 01-30923 DM 19 over PG&E and its property, permits and licenses, inter alia, the various state agencies listed 19 PACIFIC GAS AND ELECTRIC Chapter 11 Case COMPANY, a California corporation, JOINDER OF THE PEOPLE OF THE STATE 20 above are important parties in interest in this case. See, Request for Judicial Notice filed in 20 OF CALIFORNIA FX. REL. DTSC, ET. AL.

Debtor. TO CALIFORNIA PUBLIC UTILITIES 21 support of Objection of the People of the State of California, ex. rel., DTSC, et al., to Approval of 21 COMMISSION OBJECTION TO DEBTOR'S Disclosure Statement Because Plan of Reorganization is Facially Invalid Based on Sovereign Federal I.D. No. 94-0742640 SECOND MOTION FOR ORDER FURTHER 22 22 EXTENDING EXCLUSIVITY PERIOD TO PERMIT FILING OF ALTERNATIVE PLAN 23 Immunity and Impermissible Preemption, Exhibits 4-58. Instead of negotiating, PG&E has 23 Date: January 16, 2002 24 decided to pursue a course for reorganization that requires extraordinary relief from this Court 24 Time: 9:30 a.m.

Place: 235 Pine St., 22nd Floor 25 with the goal of escaping state regulation. PG&E's proposed plan is not confirmable as a matter 25 San Francisco, California 26 26 27 1 By filing this joinder, the State is making a special and limited appearance. The State does not waive its 27 immunity under the Eleventh Amendment and expressly reserves all rights to assert its sovereign 28 immunity in defense to all relief sought in this and any other proceeding.

28 Joinder to Objection to Motion to Joinder to Objection to Motion to 1152.150 0l - Further Extend Exclusivity Period 1152.100 Further Extend Exclusivity Period

1 of law for the reasons set forth in the Objection of the People of the State of California ex.rel.,

2 DTSC, et. al. to Approval of Disclosure Statement Because Plan of Reorganization is Facially 3 Invalid Based on Sovereign Immunity and Impermissible Preemption filed January 8, 2002.

4 For the reasons set forth in the Commission's Objection, PG&E should not be allowed to 5 use exclusivity as a tactical device to prevent the creditors and parties in interest from knowing 6 that there are alternatives that would pay them in full without the risks associated with PG&E's 7 proposed plan, PG&E's motion should be denied to the extent necessary to permit the 8 Commission to file an alternative plan and solicit acceptances thereto. The State agencies listed 9 above welcome the opportunity to evaluate an alternative plan.

1o Dated: January _,2002 Respectfully submitted, BILL LOCKYER 11 Attorney General of the State of California MORRIS BEATUS 12 Senior Assistant Attorney General 13 MARGARITA PADILLA Deputy Attorney General 14 15 By: kJill &

STEVEN H. FEIýDERSTEIN 16 PAUL J. PASCOZZI 17 FELDERSTEIN FITZGERALD WILLOUGHBY

& PASCUZZI LLP 18 Attorneys for the People of the State of California, ex rel.

California Department of Toxic Substances Control, 19 Central Coast Regional Water Quality Control Board, Colorado River Basin Regional Water Quality Control 20 Board, State Water Resources Control Board, Lahontan Regional Water Quality Control Board, Central Valley 21 Regional Water Quality Control Board, San Francisco Bay Regional Water Quality Control Board, North Coast 22 Regional Water Quality Control Board, California Department of Fish and Game, California Department of 23 Forestry and Fire Protection, and California Dipartment of Water Resources 24 25 26 27 28 Joinderto ObjectiontoMotion to I 52.100 Further Extend Ex.luslvty Period