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 Page 2 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 Page 3 California Solar Energy Industries Association Opposition Association of California Water Agencies Analysis Prepared by : Paul Donahue / U. & C. / (916) 319-2083