March 2003

Welcome to the newest edition of my e-mail newsletter, which has been designed to keep the people of California informed about issues facing our State, our Nation and the latest developments in the U.S. Senate.

IRAQ - SUPPORT FOR OUR TROOPS AND HONORING THOSE WHO HAVE MADE THE ULTIMATE SACRIFICE

I would like to share an open letter that I have sent to our troops and their families courtesy of newsletters at bases throughout California:

"During these very challenging times, I would like to extend my deepest appreciation and my heartfelt thanks to all the men and women of America's armed forces. You have been called on to make great personal sacrifices to defend our liberties and to protect our citizens - and for this all of America is grateful.

You are part of the finest military establishment the world has ever known, and I am completely confident that the war to end the tyrannical regime of Saddam Hussein, to destroy his weapons of mass destruction, and most importantly, to liberate the long-suffering Iraqi people, will be successful, and that you will be soon be reunited with your families.

Once hostilities have ended, however, significant challenges will remain. America must take the lead in rebuilding Iraq, and here, too, you will be called on to play a vital role. You will also continue to be engaged in fighting the war on terror, at home and abroad, as well as meeting any other threat to our country that may arise. You are democracy's front line of defense, and your dedication and service to our country and the values we cherish remain an inspiration to us all.

If there is some way I can help you or your family during this difficult time please do not hesitate to call me. I have four state offices located throughout California in San Francisco (415) 393-0707, Los Angeles (310) 914-7300, San Diego (619) 231-9712 and Fresno (559) 485-7430."

IN MEMORY OF THOSE WHO HAVE MADE THE ULTIMATE SACRIFICE

I would also like to honor the 24 young American men who have died in the conflict in Iraq and I would like to pay particular tribute to the six men from my home state of California, and to talk briefly about each of them.

To date, these young men account for one fourth of all the Americans that have made the ultimate sacrifice. At the same time, nearly 120,000 men and women now stationed in the Middle East, many of them in harm's way, are either from California or were stationed there before being deployed.

It is often said that California receives too much from the federal government - too much of the appropriations pie. But when you consider our population is 35 million and you remember that, on average, Californians pay more in federal taxes than they receive in federal programs, this is simply not the case. And Californians are playing a very prominent role in liberating the Iraqi people from the tyranny of Saddam Hussein.

Of the six Californians that have died so far, two were not yet citizens, while one was a direct descendant of the second and sixth presidents of the United States.

Together, they embody the depth and breadth of America's armed forces - men and women from all walks of life, willing to give their lives to defend our freedoms:

Navy Lt. Thomas Mullen Adams, 27, La Mesa

Marine Sgt. Michael E. Bitz, 31, Ventura

Marine Cpl. Jose A. Garibay, 21, Costa Mesa

Marine Cpl. Jorge A. Gonzalez, 20, Rialto

Marine Lance Cpl. Jose Gutierrez, 22, Lomita

Marine Cpl. Randal Kent Rosacker, 21, San Diego

For a full copy of the floor statement I gave in their memory, please go to http://feinstein.senate.gov/03Releases/garibay-statement.htm

PANEL FINDS FRAUD AND MANIPULATION BY ENERGY FIRMS IN CALIFORNIA ENERGY CRISIS

On Wednesday, March 26, the Federal Energy Regulatory Commission (FERC) announced that its 13-month investigation found that energy companies had deliberately manipulated electricity and natural gas markets during the energy crisis of 2000-2001.

FERC also announced that California would likely receive more than $3.3 billion in refunds, although according to FERC, California still owes $3 billion for unpaid electricity, so the net result might not be so great.

FERC ordered more than 30 energy companies and municipal utilities to turn over unjust profits unless they counter the evidence uncovered in the investigation and prove that they did not engage in market manipulation. This could dramatically boost the refund to California.

Most significantly, FERC charged four energy companies with engaging in market manipulation that could now result in loss of their authority to charge free-market rates. FERC is also considering banning eight Enron connected gas companies from selling natural gas in California.

The regulatory hammer has finally begun to drop. The question now is how hard. FERC needs to do much more to ensure that the people and businesses of California are adequately compensated for their financial losses and hardships during the energy crisis.

California has requested a total of nearly $9 billion in refunds and provided significant documentation of the widespread fraud and manipulation to back up its claim. In view of the inflated profits that energy companies realized at the expense of California homeowners and businesses - FERC should right this wrong and honor California's claim.

Based on the evidence that I have reviewed, which documents a coordinated attempt by energy companies to manipulate the Western energy market, I am also urging U.S. Attorney General John Ashcroft to investigate fraud and anti-trust violations during the energy crisis.

Further details can be found at:

http://feinstein.senate.gov/03Releases/r-ferc-10.htm

http://feinstein.senate.gov/03Releases/r-antitrustletter.htm

WHAT'S HAPPENING IN THE SENATE

The War in Iraq and our continuing War on Terror have been at the top of the Senate's agenda, but there have been other concerns as well.

BUDGET

On Wednesday, March 26, the Senate approved a $2.2 trillion budget for the next fiscal year. Earlier, the Senate had voted to trim the President's proposed $726 billion tax cut package to $350 billion. But I felt that even this smaller tax cut was too much during these very difficult times and voted along with 43 of my colleagues against the proposal.

I did so because I believed moving ahead with this tax cut at a time is fiscally irresponsible. For instance, this budget alone would increase the fiscal year 2004 budget deficit to $338 billion and over the next 10 years, it would add more than $1.3 trillion to the national debt.

This does not include the cost of the war or the reconstruction of Iraq, which is likely to push the budget deficit above $400 billion. At the same time, the budget does not adequately address numerous domestic spending priorities, such as education and homeland security.

I believe that bipartisan cooperation is crucial to the federal budget process, and such cooperation requires both sides to forego certain new spending initiatives and new tax cuts.

In an attempt to bridge the gap, I co-sponsored a bipartisan amendment offered with Senators Carper, Chafee, Lincoln, and Landrieu. Our substitute budget included significant tax relief for low and middle-income families that is paid for over a 10 year period by freezing future tax cuts for taxpayers in the two highest income tax brackets.

That amendment would have balanced the budget in 2009, three years before the underlying resolution. That amendment would have required tough choices with regard to discretionary spending, but it would have been entirely revenue-neutral over the ten year budget period and would not have added any new debt whatsoever.

Further details on this can be found at: http://feinstein.senate.gov/03Releases/r-budget-no.htm

IDENTITY THEFT AND PRIVACY

In each of these newsletters, I will also try to give updates on a specific area of legislative concern. Today, I would like to share some details of our efforts to protect American's from identity theft.

My goal is to protect Americans personal information - including medical data, financial data, social security numbers and driver's license information, and create an appropriate balance between protecting personal information from identity thieves and others who would misuse it, while allowing legitimate business and government practices to go forward.

To achieve this, I have introduced a package of legislation designed to:

• Combat the growing crime of identity theft;
• Give identity theft victims the ability to restore their good names;
• Prohibit sale and display of social security numbers to the public; and
• Set a national standard for how individuals personal information is protected.

The Social Security Number Protection Act -- Makes it harder for identity thieves to obtain Social Security numbers by restricting public access to the number. Prohibits the sale or display of Social Security numbers to the general public, removes Social Security numbers from government checks and driver's licenses, and requires Social Security numbers to be taken off documents obtained via the internet. At the same time, the bill would permit legitimate business and government use of the number.

The Identity Theft Prevention Act - Makes it harder for identity thieves to get access to your credit card numbers or take over your credit card account. Penalizes credit card companies that ignore a victim's report of fraud and continue to issue credit to the thief. Requires truncation of any credit card number printed on a store receipt.

We've had some good news on this front. On March 6, I joined Visa CEO Carl Pascarella to announce new Visa regulations prohibiting the display of all but the last four digits of credit card numbers on consumer receipts. By taking this action, Visa is joining in the fight against identity theft, setting a new industry standard for the protection of personal information.
The Identity Theft Penalty Enhancement Act - Strengthens the criminal penalties for those who use identity theft as a means to perpetrate other serious crimes, including terrorism, fire arms offenses and immigration violations. Makes it easier for prosecutors to prove identity theft. This bill was approved by the Senate on March 20.

The Privacy Act - Sets a national standard for protection of personal information, including Social Security numbers, driver's licenses and health and financial data, including information collected both on-line and off-line. This bill will be introduced in the next two weeks.

My home page has further details on these bills along with links to learning how to better protect yourself from identity theft: http://feinstein.senate.gov/

HOMELAND SECURITY

This week I also announced plans to offer an amendment to an emergency spending bill that would provide $400 million to help first responders obtain interoperable communication systems.

It is critical that first responders be able to talk with each other if another terrorist attack occurs. In all too many jurisdictions, however, this is not possible - police, fire, and emergency medical services use different radios, which operate on different frequencies.

On September 11, for instance, while police received a radio message that the World Trade Center was going to collapse, firefighters never received the message because they use different radios. As a result, lives were lost."

Eighteen months after September 11 the federal government still has not provided the necessary funding to remedy the situation. This is why I am going to offer an amendment to the supplemental appropriations bill that would help local governments and first responders obtain the communications systems they need.

Other details of my legislative agenda can be found at: http://feinstein.senate.gov/leg_priorities_108.htm

ACTION ON OTHER CALIFORNIA PRIORITIES

I would also like to highlight an issue of growing importance to Californians: Perchlorate contamination of our drinking water.

In this day and age, no American should have to worry about whether their drinking water is clean and safe. Regrettably, this is not always the case. Long battles have been fought over the potential health threats caused by MTBE and Chromium 6 in drinking water. And now, another source of contamination - perchlorate - has surfaced and it demands our attention.

Widely used during the Cold War, perchlorate is a primary ingredient in rocket propellants that was allowed to seep into the ground in at least 22 states, including California, Colorado, Massachusetts, and Maryland.

The situation is very serious in California. According to a recent report by the California Department of Health Services, perchlorate has been detected in 292 groundwater wells operated by 80 different water agencies throughout the State. Collectively, these agencies serve 24.8 million people, or 71% of the total population.

When ingested, perchlorate can interfere with the iodine intake of the thyroid gland, which regulates our hormones. High doses of perchlorate have also been linked to thyroid tumors, while newborn children and fetuses may be the most vulnerable.

Last November, in a letter to Secretary of Defense Donald Rumsfeld, I asked the Department of Defense to assume responsibility for cleaning up perchlorate. In a separate letter to Environmental Protection Agency Administrator Christine Todd Whitman, I urged the EPA to assist communities whose drinking wells have been contaminated.

It was the U.S. military and defense contractors that used much of the land. Yet the Defense Department continues to deny its responsibility. In fact, in a particularly troubling turn of events, the Bush Administration is now seeking exemptions for the Pentagon, which would greatly diminish the defense establishment's liability for perchlorate contamination in our water supply.

This, to me, is unacceptable. And I will continue to press the Administration not only to accept responsibility for this contamination, but to end its infighting and take the lead on what is clearly a national issue.

FEEDBACK FROM YOU

Finally, as this is my second e-mail newsletter, I am sure there is still a lot of room for improvement. So I would appreciate feedback on how you think it can be approved or if there are other ways in which I can better communicate with my constituents.

Please send any thoughts you have by logging onto to http://feinstein.senate.gov/contact.html

About Senator Feinstein:

http://feinstein.senate.gov/biography.html

Contact Senator Feinstein:

http://feinstein.senate.gov/contact.html

Learn more by visiting Senator Feinstein's Website:

http://feinstein.senate.gov

This message was sent from the Office of Senator Dianne Feinstein to keep you informed about issues affecting you and your family. To subscribe or unsubscribe please visit: http://feinstein.senate.gov/issue.html

Best Regards.

Sincerely yours,