BILL ANALYSIS
AB 426
Page 1
ASSEMBLY THIRD READING
AB 426 (Richman)
As Amended May 8, 2003
Majority vote
WATER, PARKS & WILDLIFE 12-5 UTILITIES & COMMERCE
9-2
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|Ayes:|Keene, Daucher, Dymally, |Ayes:|Reyes, Richman, Campbell, |
| |Shirley Horton, Leslie, | |La Malfa, La Suer, |
| |Lowenthal, Parra, Pavley, | |Levine, Nunez, |
| |Plescia, Spitzer, Wolk, | |Ridley-Thomas, Wolk |
| |Yee | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Canciamilla, Berg, |Nays:|Calderon, Canciamilla |
| |Bermudez, Frommer, | | |
| |Matthews | | |
| | | | |
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APPROPRIATONS 23-1
(vote not available)
SUMMARY : Requires 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)Requires DWR to include as conditions in the lease that:
a) The solar panels shall be interconnected to the
electric transmission grid in accordance with applicable
rules, orders, or tariffs of the Public Utilities
Commission; and,
b) If the Independent System Operator declares a Stage
3 emergency, the electricity generated from the solar
panels may not be sold out of state.
AB 426
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3)Authorizes DWR to impose charges that cover the actual cost
incurred to implement the program.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis:
1)Moderate upfront costs, in the range of $280,000 in both
fiscal year (FY) 2003-04 and FY 2004-05, to DWR to establish
the solar panel program. These costs may ultimately be
covered by revenue generated from fees. (GF or various special
accounts)
2)Moderate on going costs, perhaps $300,000 annually starting in
FY 2005-06, to DWR to administer the program. Costs covered
by fee revenue if DWR exercises its authority to impose fees.
(GF or various special accounts)
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3)Potential moderate on-going revenue, perhaps in the range of
$300,000 annually starting in FY 2004-05, from lease payments
made to DWR. (Various special accounts)
COMMENTS : SWP extends more than 660 miles and includes 33
storage facilities, 20 pumping plants, four hydroelectric
plants, and four 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. A PV system
includes an array (a group of panels which consist of modules
that are wired together), and other equipment like charge
controllers, storage (batteries) and tracking and monitoring
equipment, collectively called balance of system 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. The author
believes that many miles of SWP's open canals and pipelines
could be suitable for the deployment of solar electricity
generating facilities.
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
SWP. Currently, the issue of placement of any structure within
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.
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
AB 426
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compromise SWP system security measures.
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.
Analysis Prepared by : Kathy Mannion / W., P. & W. / (916)
319-2096
FN: 0001259