BILL ANALYSIS
AB 426
Page 1
Date of Hearing: April 22, 2003
ASSEMBLY COMMITTEE ON WATER, PARKS AND WILDLIFE
Joseph E. Canciamilla, Chair
AB 426 (Richman) - As Introduced: February 14, 2003
SUBJECT : State Water Project: solar panels.
SUMMARY : Would require the Department of Water Resources (DWR)
to establish a program which would allow private entities to
lease space above State Water Project (SWP) conveyance
facilities for solar panels. Specifically, this bill :
1)Requires DWR to establish a program to authorize private
entities to lease space above SWP conveyance facilities deemed
appropriate for the installation of solar panels used to
generate electricity.
2)Authorizes DWR to impose charges that cover only the actual
cost incurred to implement the program.
FISCAL EFFECT : Unknown.
COMMENTS :
The SWP extends more than 660 miles and includes 33 storage
facilities, 20 pumping plants, 4 hydroelectric plants, and 4
pumping-generating plants. The SWP originates on tributaries of
the Feather River and extends down the Sacramento River, through
the Delta and San Joaquin Valley and over the Tehachapi
Mountains into Pyramid and Castaic lakes in Southern California.
The SWP supplies drinking water to 22 million Californians,
and irrigation water for 750,000 acres of farmland.
Solar electric or photovoltaic (PV) systems convert some of the
energy in sunlight directly into electricity. PV cells are made
primarily of silicon, the same semiconductor material used for
computers. When the silicon is combined with one or more
materials, it exhibits unique electrical properties in the
presence of sunlight. Electrons are excited by the light and
move through the silicon. This is known as the PV effect and
results in direct current (DC) electricity. PV modules have no
moving parts, and have a working life of 20-30 years. A PV
system includes an array (a group of panels which consist of
modules that are wired together), and other equipment like
AB 426
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charge controllers, storage (batteries) and tracking and
monitoring equipment, collectively called balance of system
(BOS) components.
The author states that it has been the policy of the state to
maintain a diversified energy portfolio in order to minimize
risk during periods of volatile fuel prices. Technological
advances have increased overall efficiencies and lowered costs
of solar technology, and solar power is available when it is
needed at peak demand periods, during daylight hours.
The author believes that many miles of the SWP's open canals and
pipelines could be suitable for the deployment of solar
electricity generating facilities. A secondary benefit
mentioned would be to reduce evaporation from the canals and
attract investment and jobs to the state.
The Association of California Water Agencies (ACWA) is in
opposition to the bill. ACWA maintains that the placement of
solar panels above SWP conveyance facilities will interfere with
the operation and maintenance of those facilities. Further,
ACWA believes that the placement of these solar panels would
compromise SWP system security measures. ACWA suggests that
there are multiple other locations owned by the State that would
be more appropriate for the placement of solar panels such as
placement on the roofs of state buildings where there is easy
access to the electrical distribution grid.
In response to an inquiry by committee staff, DWR states that
they have the current authority to lease parts of the SWP, but
have never been approached by solar energy companies for use of
the SWP. Currently, the issue of placement of any structure
within the SWP right-of-way is one that DWR evaluates on a
case-by-case basis. Considerations include, among other things,
potential adverse effects on Aqueduct facilities, potential
impacts to water operations and water deliveries, DWR personnel
safety while conducting maintenance activities, potential
environmental impacts, and the ability of DWR to maintain water
system security.
Committee staff notes that while the bill authorizes DWR to
impose charges to cover the actual cost incurred to implement
the program, the charges would not cover potential increased
costs for other activities in and around the SWP right-of-way,
such as maintenance, that may be impacted by the presence of PV
AB 426
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system equipment. By not allowing DWR to negotiate a market
price for space leasing SWP contractors would be required to
absorb any additional costs.
The California Solar Energy Industries Association (CAL SEIA)
states that the bill would make available space in areas of the
state where the best solar resource in the U.S. exists. CAL
SEIA notes that the California Aqueduct runs directly through an
area near Barstow where the existing Solar Electrical Generating
Systems are currently producing 354 megawatts of solar generated
electricity, and that this area has the highest solar resource
in the entire world, making it an ideal location for installing
PV systems.
REGISTERED SUPPORT / OPPOSITION :
Support
California Solar Energy Industries Association
Independent Energy Producers
Opposition
Association of California Water Agencies
Analysis Prepared by : Kathy Mannion / W., P. & W. / (916)
319-2096