BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 426
                                                                  Page  1

          Date of Hearing:   May 14, 2003 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                AB 426 (Richman) - As Introduced:  February 14, 2003 

          Policy Committee:                              Water, Parks &  
          Wildlife     Vote:                            12-5
                        Utilities & Commerce                       9-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Department of Water Resources (DWR) to  
          establish a program to allow private entities to lease space  
          above aqueducts and other water conveyance facilities of the  
          State Water Project (SWP) to install solar panels that generate  
          electricity.

           FISCAL EFFECT  

          1)Moderate upfront costs, in the range of $280,000 in both FY  
            2003-04 and FY 2004-05, to the DWR to establish the solar  
            panel program.  These costs may ultimately be covered by  
            revenue generated from fees imposed on private entities who  
            lease space above aqueducts to install solar panels.  (GF or  
            various special accounts.)

          2)Moderate ongoing costs, perhaps $300,000 annually starting in  
            FY 2005-06, to the DWR to administer the solar panel program.   
            These costs are covered by fee revenue if the department  
            exercises its authority to impose fees.  (GF or various  
            special accounts.)

          3)Potential moderate ongoing revenue, perhaps in the range of  
            $300,000 annually starting in FY 2004-05, from lease payments  
            made to the DWR.  (Various special accounts.)   

           COMMENTS  

           1)Rationale  .  The author argues that unused air space above  
            aqueducts and other water conveyance facilities of the SWP is  








                                                                  AB 426
                                                                  Page  2

            suitable for the installation and operation of solar panels  
            that generate electricity for the state's grid.  To the extent  
            these panels form a canopy shading the water in the facility  
            from direct sunlight, the volume of water supply loss due to  
            evaporation could be slightly reduced.  Taking advantage of  
            air space of SWP facilities is consistent with the state's  
            efforts to encourage diversification of electricity  
            generation.
           
          2)The SWP  is a water storage and delivery system made up of  
            reservoirs, aqueducts, powerplants and pumping plants.  It  
            distributes water to 29 urban and agricultural water suppliers  
            throughout the state, making deliveries that serve two-thirds  
            of California's population via 660 miles of open canals and  
            pipelines.  Most SWP aqueducts and canals are located in areas  
            of the state suitable for solar panel installation.

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081