BILL NUMBER: AB 426	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 14, 2004
	AMENDED IN SENATE  JULY 10, 2003
	AMENDED IN SENATE  JUNE 27, 2003
	AMENDED IN ASSEMBLY  MAY 8, 2003

INTRODUCED BY   Assembly  Member Richman  
Members Cox and Richman 
    (Coauthors:  Assembly Members Cogdill, Dutton, La Malfa,
Leslie, Nakanishi, and Wolk) 
    (Coauthors:  Senators Aanestad,  McPherson, Morrow, and
Oller) 

                        FEBRUARY 14, 2003

   An act to add Section  139 to the Water Code, relating to
the State Water Project.   9607.5 to the Public
Utilities Code, relating to local publicly owned electric utilities.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 426, as amended,  Richman   Cox  .
 State Water Project: solar panels  Local
publicly owned electric utilities:  cost responsibility surcharge
 . 
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Under existing law, the commission has imposed a cost responsibility
surcharge on municipal departing load, as defined in commission
decisions.  Existing law relative to electrical restructuring, with
certain exceptions, prohibits a local publicly owned electric utility
from providing electric service to a retail customer of an
electrical corporation unless the customer first confirms in writing
an obligation to pay to the electrical corporation a nonbypassable
generation-related transition charge established by the regulatory
body for that electrical corporation.
   This bill would prohibit the commission from imposing any cost
responsibility surcharge on a customer of a local publicly owned
electric utility when the customer's service location has not
previously received service from an electrical corporation. 

   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   no  . 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
 
  SECTION 1.  Section 9607.5 is added to the Public Utilities Code,
to read:
   9607.5.  Notwithstanding any other law, the commission shall not
impose any cost responsibility surcharge on a customer of a local
publicly owned electric utility if the customer's service location
has not previously received service from an electrical corporation.
  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.