BILL ANALYSIS
SENATE AGRICULTURE & WATER RESOURCES COMMITTEE
Senator Michael J. Machado, Chair
BILL NO: AB 426 HEARING: 7/8/03
AUTHOR: Richman FISCAL: Yes
VERSION: 6/27/03 CONSULTANT: Dennis
O'Connor
State Water Project: Solar panels.
BACKGROUND AND EXISTING LAW
The State Water Project (SWP) is one of the largest water and
power systems in the world. It has delivered an average annual
2.4 million acre-feet of water to the long-term water
contractors. The Department Of Water Resources (DWR) delivers
this water to the contractors via the SWP's 17 pumping plants, 8
hydroelectric power plants, 28 dams and reservoirs, 418 miles of
aqueducts, and 244 miles of pipelines, tunnels, and other
conveyance facilities.
Under existing law, DWR has the authority to lease or rent SWP
rights of way, easements, or property. The law further
specifies that to the extent the proceeds from such leases
exceed DWR's costs, DWR must use proceeds for SWP purposes.
Under existing law, it is state policy to promote the
development and use of renewable energy sources, including
photovoltaic solar panels. Existing law also requires that no
later than January 1, 2007, solar energy equipment is to be
installed on all state buildings and state parking facilities,
where feasible.
PROPOSED LAW
This bill would do two things.
First, it would declare that it is in the interest of the state
to conserve resources and to promote projects that further that
interest.
Second, it would require DWR to establish a procedure to lease
space above SWP conveyance facilities, such as aqueducts, to
private entities for installing solar panels and generating
electricity from those panels.
DWR would be required, upon request, to evaluate proposals for
installing solar photovoltaic systems. The requester would be
required to pay the cost of that evaluation.
AB 426 -- 6/27/03 -- Page 2
DWR could deny a lease request if DWR determined that the
proposed project would interfere with the operation of the
SWP.
DWR could negotiate a lease price equal to, or greater than,
DWR's cost to meet its obligations under the agreement.
DWR would be required to include the following conditions in a
lease agreement:
The solar panels must be interconnected to the electric
transmission grid in accordance with applicable rules,
orders, or tariffs of the Public Utilities Commission.
If the Independent System Operator declares a Stage 3
emergency regarding the electric system, the electricity
generated from the solar panels may not be sold out of
state.
COMMENTS
1.Consistent With State Policy. On numerous occasions, the
legislature has expressed support and encouragement of the
development and use of renewable energy sources. This bill
would continue that practice.
2.Is This Bill Necessary? Under existing law, DWR already has
the authority to lease airspace over the SWP aqueducts for
photovoltaic. The law further specifies that proceeds from
such leases that exceed DWR's costs must be used for SWP
purposes. The only real new provisions of this bill are those
requiring solar panels to be connected consistent with PUC
regulations, and those prohibiting power generated by the
solar panels from being sold out of state during a Stage 3
emergency.
3.Are SWP Protections Sufficient? The bill would authorize DWR
to deny a lease request if DWR determined that the proposed
project would "interfere with the operation" of the SWP.
However, solar photovoltaic systems could impair the SWP in
other ways as well. For example,
The SWP occasionally requires restoration and
rehabilitation projects beyond those associated with simple
operations and maintenance.
Some segments of the aqueducts are on less than ideal
soil conditions. DWR notes that there is the potential
that permanent loads may result in aqueduct subsidence
problems.
AB 426 -- 6/27/03 -- Page 3
Creating and maintaining necessary access to the solar
panels could create a greater security risk for the SWP.
Some newer solar panels use thin membranes composed of
materials such as cadmium telluride, a known carcinogen.
Failure of solar panels could potentially expose SWP water
to toxic chemicals.
The committee might consider amending this bill to expand
DWR's authority to deny a lease agreement to include
situations such as these.
PRIOR ACTIONS
Senate Energy, Utilities, and Communications5-2
Assembly Floor 71-4
Assembly Appropriations 23-1
Assembly Utilities and Commerce 9-2
Assembly Water, Parks, and Wildlife 12-5
Assembly Water, Parks, and Wildlife 1-6 (FAILED)
AB 426 -- 6/27/03 -- Page 4
SUPPORT
California Solar Energy Industries Association
Independent Energy Producers
OPPOSITION
Association of California Water Agencies