BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 426
                                                                  Page  1

          Date of Hearing:  April 28, 2003

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                                 Sarah Reyes, Chair
                 AB 426 (Richman) - As Introduced:  February 14, 2003
           
          SUBJECT  :  State Water Project: solar panels.

           SUMMARY  :  Requires the Department of Water Resources (DWR) to  
          establish a program allowing private entities to lease space  
          above the 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.

           EXISTING LAW  provides for DWR operation of the SWP.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :   

          SWP extends more than 660 miles and includes 33 storage  
          facilities, 20 pumping plants, 4 hydroelectric plants, and 4  
          pumping-generating plants.  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. 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 electricity.  PV modules have no  
          moving parts, and have a working life of 20-30 years. 








                                                                  AB 426
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           Author's statement  

          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 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.
           Opposition  

          The Association of California Water Agencies (ACWA) opposes this  
          bill.  ACWA states 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.

           Support  

          The California Solar Energy Industries Association (CAL SEIA)  
          states that this 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 350 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 
           
          Independent Energy Producers








                                                                  AB 426
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          California Solar Energy Industries Association

           Opposition 
           
          Association of California Water Agencies
           

          Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083