BILL NUMBER: AB 426	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 10, 2003
	AMENDED IN SENATE  JUNE 27, 2003
	AMENDED IN ASSEMBLY  MAY 8, 2003

INTRODUCED BY   Assembly Member Richman

                        FEBRUARY 14, 2003

   An act to add Section 139 to the Water Code, relating to the State
Water Project.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 426, as amended, Richman.  State Water Project:  solar panels.
   Under existing law, the Department of Water Resources operates the
State Water Project.
   This bill would require the department to establish a procedure to
authorize private entities to lease space above appropriate
conveyance facilities of the State Water Project for the purposes of
installing solar panels and generating electricity from those panels.
  The bill would authorize the department to deny a lease request if
the department determines that the proposed project would interfere
with the operation of the State Water Project  , as defined 
.  The bill would require the department to include certain
conditions in the leases.  The bill would authorize the department to
negotiate any level of compensation for an agreement for the
installation of solar photovoltaic systems in accordance with the
bill that is equal to, or greater than, the cost to the department to
meet its obligations under the agreement.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that it is in the
interest of the state to conserve resources and to promote projects
that further that interest.
  SEC. 2.  Section 139 is added to the Water Code, to read:
   139.  (a) The department shall establish a procedure to authorize
private entities to lease space above appropriate conveyance
facilities of the State Water Project for the purpose of installing
solar panels and generating electricity from those panels.  Upon
request, the department shall evaluate proposals  , or may enter
into a contract to evaluate proposals,  for installing solar
photovoltaic systems.  The cost of that evaluation shall be paid by
the requester.
   (b) The department may deny a lease request if the department 
, after consulting in good faith with the applicant to resolve the
department's concerns, nonetheless  determines that the proposed
project would interfere with the operation of the State Water
Project.   As used in this section, interference with the
operation of the State Water Project includes, but is not limited to,
all of the following:
   (1) Impairment of the department's ability to operate, maintain,
or inspect the State Water Project.
   (2) Impairment of the department's ability to restore or
rehabilitate the State Water Project beyond those actions associated
with operations, maintenance, and inspection.
   (3) Impairment of the department's ability to respond to
emergencies.
   (4) Creation of an unreasonable risk of subsidence in one or more
sections of an aqueduct.
   (5) Creation of an unreasonable security risk for the State Water
Project and safety risk to personnel.
   (6) Creation of an unreasonable risk to the quality of water
stored in or conveyed through the State Water Project. 
   (c) The department shall include, but is not limited to, the
following conditions in a lease pursuant to this section:
   (1) The solar panels shall be interconnected to the electric
transmission grid in accordance with applicable rules, orders, or
tariffs of the Public Utilities Commission.
   (2) If the Independent System Operator declares a Stage 3
emergency regarding the electric system, the electricity generated
from the solar panels may not be sold out of state.
   (d) For the purposes of carrying out subdivision (a), the
department may negotiate any level of compensation for an agreement
for the installation of solar photovoltaic systems in accordance with
this section that is equal to, or greater than, the cost to the
department to meet its obligations under the agreement.