BILL ANALYSIS                                                                                                                                                                                                              1










                    SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                                           

                             Senator Sheila Kuehl, Chair
                              2005-2006 Regular Session

               BILL NO:       AB 515
               AUTHOR:   Richman
               AMENDED:       May 26, 2005
               FISCAL:        Yes            HEARING DATE:June 21, 2005
               URGENCY:       No        CONSULTANT:Dennis O'Connor
               SUBJECT:       State Water Project: Solar photovoltaic  
               panels and systems.
          
               Summary:       This bill would authorize the Department of  
               Water Resources (DWR) to establish a program to lease space  
               above State Water Project (SWP) conveyance facilities, such  
               as aqueducts, to private entities for installing solar  
               panels and generating electricity from those panels.  

               Existing Law: 
               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 authorize DWR to establish a program to  
               lease space above SWP conveyance facilities, such as  
               aqueducts, to private entities, for the installation of  
               solar panels and to generate electricity from those panels.  
                












               DWR, upon request, would be required to evaluate proposals  
               for installing solar photovoltaic panels and related  
               systems for the generation and transfer of electricity. 
                     A proposal submitted to the department for  
                 evaluation shall include, but need not be limited to, an  
                 engineering study of the proposed solar photovoltaic  
                 panels and related systems. 
                     The costs of the engineering study and the  
                 department's evaluation shall be paid by the person or  
                 entity making the request.

               DWR would be authorized to negotiate any level of  
               compensation that is equal to, or greater than, the cost to  
               the department of meeting its obligations under the  
               agreement.

               Arguments in Support:  

               According to the Author, "California has a long-standing  
               policy to maintain a diversified energy portfolio.   
               Advancements in solar generation technologies, which  
               increased efficiencies and lowered costs, have made solar a  
               viable cost effective generation alternative - particularly  
               because solar's peaking generation capacity correlates well  
               with utilities' daily load patterns."  

               "AB 515 will encourage the deployment of solar generation  
               panels along the State Water Project, which includes about  
               660 miles of open canals and pipelines.  Many of those  
               hundreds of miles could be suitable for solar electricity  
               generation portfolio.  Not only would such a project  
               attract investment and jobs to California, but it would  
               also reduce evaporation from the canals and minimize  
               environmental drawbacks associated with 'solar farms.'"

               Arguments in Opposition: None

               Comments: 

               Is This Bill Necessary?  Under existing law, DWR already  
               has the authority to lease airspace over the SWP aqueducts  
               for photovoltaic, or any other purposes.  












               Related Bills:  

               SB 543 (Margett) - would establish an encroachment permit  
               process for the Department of Water Resources' State Water  
               Project.  Passed Senate 40-0

               AB 426 (Richman) (2003) - Principle difference from the  
               current bill is that AB 426 would have required, not  
               authorized, DWR to establish a lease program for solar  
               power.  Held in Senate Appropriations.

               SUPPORT: 
               Environmental Entrepreneurs 
               Natural Resources Defense Council
               Northern California Community Technologies
               
               OPPOSITION: 
               None received