DWR seeks Water Code change to allow sale of emergency generators constructed under strategic reserve program

Delphine Ho, deputy director for statewide energy at the California Department of Water Resources, told the Senate Budget Subcommittee that three generators constructed under the Electricity Supply Strategic Reliability Reserve are ultra-low-emission natural‑gas units sited at Modesto Irrigation District, Turlock Irrigation District and the City of Lodi, and that DWR seeks a small change to Water Code language to preserve sale value if the state sells the facilities.

DWR’s proposal: Ho explained trailer‑bill language that would add the phrase "and owned" to Water Code section 80,710 so the statutory operational restriction — which currently limits DWR‑built generators to operate only during extreme events while the state owns them — would not automatically carry over to a purchaser were DWR to transfer ownership. DWR says the change would allow counterparties to operate the generators under their own policies after purchase and preserve residual value.

Cost and structure: Ho told the committee the three‑site program has a committed budget of about $330 million that covers construction, site lease, interconnection and operations agreements; the…