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Department of Water Resources seeks statutory clarification to enable sale or transfer of three strategic reliability reserve units
Summary
DWR asked the committee to add language to Water Code 80710(c) to clarify that statutory limits on reserve operation apply to units "constructed by DWR" and would not prevent sale or transfer; DWR gave capital cost and revenue estimates and warned of decommissioning costs if ownership pathways are blocked.
The Department of Water Resources told the Assembly Budget Subcommittee No. 4 that three gas‑fired, ultra‑low‑emissions generators procured under emergency authority are designed to operate as part of the state's Strategic Reliability Reserve, but contractual terms and current Water Code language may limit the department’s ability to transfer ownership.
Delphine Ho, Deputy Director for Statewide Energy at DWR, said the three units were sited with local…
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