Existing law authorizes the formation of reclamation districts by owners of swamp and overflowed lands, salt-marsh, or tidelands, or other lands subject to flood or overflow and by owners of land already reclaimed, or in progress of reclamation, and not included in a reclamation district. Existing law authorizes Reclamation District No. 1004, in conjunction with the County of Colusa, to construct, maintain, and operate a plant, transmission lines, and other necessary or appropriate facilities for the generation of hydroelectric power, as prescribed. Existing law requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

This bill would grant the above-described hydroelectric power authority to Reclamation District No. 108 until January 1, 2021.

Existing law authorizes the formation of reclamation districts by owners of swamp and overflowed lands, salt-marsh, or tidelands, or other lands subject to flood or overflow and by owners of land already reclaimed, or in progress of reclamation, and not included in a reclamation district. Existing law authorizes Reclamation District No. 1004, in conjunction with the County of Colusa, to construct, maintain, and operate a plant, transmission lines, and other necessary or appropriate facilities for the generation of hydroelectric power, as prescribed. Existing law requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

This bill would grant the above-described hydroelectric power authority to Reclamation District No. 108 until January 1, 2021.

Existing law authorizes the formation of reclamation districts by owners of swamp and overflowed lands, salt-marsh, or tidelands, or other lands subject to flood or overflow and by owners of land already reclaimed, or in progress of reclamation, and not included in a reclamation district. Existing law authorizes Reclamation District No. 1004, in conjunction with the County of Colusa, to construct, maintain, and operate a plant, transmission lines, and other necessary or appropriate facilities for the generation of hydroelectric power, as prescribed. Existing law requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

This bill would grant the above-described hydroelectric power authority to Reclamation District No. 108 until January 1, 2021.

Existing law authorizes the formation of reclamation districts by owners of swamp and overflowed lands, salt-marsh, or tidelands, or other lands subject to flood or overflow and by owners of land already reclaimed, or in progress of reclamation, and not included in a reclamation district. Existing law authorizes Reclamation District No. 1004, in conjunction with the County of Colusa, to construct, maintain, and operate a plant, transmission lines, and other necessary or appropriate facilities for the generation of hydroelectric power, as prescribed. Existing law requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

This bill would grant the above-described hydroelectric power authority to Reclamation District No. 108.

 THIRD READING 

Bill No: AB 568

Author: Dodd (D)

Amended: 5/14/15 in Assembly

Vote: 21

SENATE ENERGY, U. & C. COMMITTEE: 10-0, 6/16/15

AYES: Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva, McGuire, Morrell, Wolk

NO VOTE RECORDED: Pavley

ASSEMBLY FLOOR: 75-0, 5/22/15 - See last page for vote

SUBJECT: Reclamation District No. 108: hydroelectric power

SOURCE: Northern California Water Association

DIGEST: This bill allows Reclamation District No. 108 (RD 108), on the western edge of the Sacramento River, to construct and operate a hydroelectric powerplant and transmission lines.

ANALYSIS:

Existing law:

1. Authorizes the formation of reclamation districts for the reclamation of any land within any city, which land is subject in any manner, to overflow or incursions from the tide or inland waters of the state, and proscribes the powers of such districts. (Water Code §50110 et seq.)

2. Authorizes Reclamation District No. 1004 (RD 1004), in conjunction with the County of Colusa, to construct, maintain and operate a plant for the generation of hydroelectric power. (Water Code §50906)

3. Allows RD 1004 to lease the hydroelectric plant, transmission lines, and related facilities, and sell the power generated to a public utility or public agency engaged in the distribution, use or sale of electricity. (Water Code §50906)

4. Allows the construction of the plant and transmission lines to be financed by the issuance of time warrants, and allows the RD 1004 Board of Trustees, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. (Water Code §50906)

5. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. (Water Code §50906)

6. Prohibits RD 1004 from selling the power directly to the customer, other than to a public utility or public agency. (Water Code §50906)

This bill:

1. Provides RD 108 all the powers and authorities related to the hydroelectric power currently enjoyed by RD 1004, as described above under “Existing law.”

2. Repeals the provisions described above, for RD 108 only, as of January 1, 2021.

Background

Reclamation districts. Reclamation districts provide flood protection to the Central Valley. Statute provides for the formation, governance and powers of various types of special districts, including reclamation districts. Statute provides several types of special districts with the authority to operate hydroelectric power generation facilities. However, statute does not provide reclamation districts with this power, generally. One exception is RD 1004 in Colusa County, which statute, in 1984, authorized to construct, maintain, and operate a plant for the generation of hydroelectric power.

RD 108. RD 108, as described on its website, is located along the western edge of the Sacramento River and delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County.  The district was formed in 1870 to build levees and reclaim flooded land.

According to the author, RD 108 uses a significant amount of energy operating its pumping facilities. RD 108 has constructed a 386 kilowatt solar electricity generating facility. In addition, RD 108 has joined a joint powers authority (JPA) with Glenn-Colusa Irrigation District, Tehama-Colusa Canal Authority, Maxwell Irrigation District, Glenn County, Colusa County, and the Yolo County Flood Control and Water Conservation District. As a member of the JPA, RD 108 expects to benefit from generation of hydropower following development of the proposed Sites Reservoir north of the Delta. However, RD 108 does not have the authority to construct or operate such a hydropower facility or to transmit or sell the electricity its produces. AB 568 grants RD 108 such authority.

Not without controversy. As mentioned above, statute allows many special districts that manage water to build and operate hydroelectric facilities. It is unclear why reclamation districts are not, generally, provided the same authority. The proposal to allow RD 108 to construct and operate a hydroelectric facility is not particularly controversial. However, development of the Sites Reservoir is controversial. Several conservation and environmental organizations oppose this bill because it facilitates development of the reservoir. These groups contend the reservoir would harm the Delta ecosystem while providing few, if any, resource management benefits.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 6/16/15)

Northern California Water Association (source)

California Municipal Utilities Association

County of Colusa

County of Yolo

Water Resources Association of Yolo County

OPPOSITION: (Verified 6/16/15)

American Whitewater

California Outdoors

California Sportfishing Protection Alliance

Foothill Conservancy

Friends of the River

Sierra Club California

ARGUMENTS IN SUPPORT: Proponents claim this bill will allow RD 108 to reduce its energy costs in an environmentally responsible way.

ARGUMENTS IN OPPOSITION: Opponents contend this bill facilitates development of the Sites Reservoir, which they contend would harm the Delta ecosystem while providing few, if any, resource management benefits.

ASSEMBLY FLOOR: 75-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, O'Donnell, Olsen, Waldron, Weber

Prepared by: Jay Dickenson / E., U., & C. / (916) 651-4107

6/18/15 18:40:32

**** END ****

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2015 - 2016 Regular

Bill No: AB 568 Hearing Date: 6/16/2015

SUBJECT: Reclamation District No. 108: hydroelectric power

DIGEST: This bill allows Reclamation District No. 108 (RD 108), on the western edge of the Sacramento River, to construct and operate a hydroelectric powerplant and transmission lines.

ANALYSIS:

Existing law:

1. Authorizes the formation of reclamation districts for the reclamation of any land within any city, which land is subject in any manner, to overflow or incursions from the tide or inland waters of the state and proscribes the powers of such districts. (Water Code §50110 et sec.)

2. Authorizes Reclamation District No. 1004 (RD 1004), in conjunction with the County of Colusa, to construct, maintain and operate a plant for the generation of hydroelectric power. (Water Code §50906)

3. Allows RD 1004 to lease the hydroelectric plant, transmission lines, and related facilities, and sell the power generated to a public utility or public agency engaged in the distribution, use or sale of electricity. (Water Code §50906)

4. Allows the construction of the plant and transmission lines to be financed by the issuance of time warrants, and allows the RD 1004 Board of Trustees, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. (Water Code §50906)

5. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. (Water Code §50906)

6. Prohibits RD 1004 from selling the power directly to the customer, other than to a public utility or public agency. (Water Code §50906)

This bill:

1. Provides RD 108 all the powers and authorities related to the hydroelectric power currently enjoyed by RD 1004, as described above under “Existing law.”

2. Repeals the provisions described above, for RD 108 only, as of January 1, 2021.

Background

Reclamation districts. Reclamation districts provide flood protection to the Central Valley. Stature provides for the formation, governance and powers of various types of special districts, including reclamation districts. Statute provides several types of special districts with the authority to operate hydroelectric power generation facilities. However, statute does not provide reclamation districts with this power, generally. One exception is RD 1004 in Colusa County, which statute, in 1984, authorized to construct, maintain, and operate a plant for the generation of hydroelectric power.

Reclamation District No.108. RD 108, as described on its website, is located along the western edge of the Sacramento River and delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County.  The district was formed in 1870 to build levees and reclaim flooded land.

According to the author, RD 108 uses a significant amount of energy operating its pumping facilities. The district has constructed a 386 kilowatt solar electricity generating facility. In addition, the district has joined a joint powers authority (JPA) with Glenn-Colusa Irrigation District, Tehama-Colusa Canal Authority, Maxwell Irrigation District, Glenn County, Colusa County, and the Yolo County Flood Control and Water Conservation District. As a member of the JPA, the reclamation district expects to benefit from generation of hydropower following development of the proposed Sites Reservoir north of the Delta. However, the district does not have the authority to construct or operate such a hydropower facility or to transmit or sell the electricity its produces. AB 568 would grant RD 108 such authority.

Not without controversy. As mentioned above, statute allows many special districts that manage water to build and operate hydroelectric facilities. It is unclear why reclamation districts are not, generally, provided the same authority. The proposal to allow RD 108 to construct and operate a hydroelectric facility is not particularly controversial. However, development of the Sites Reservoir is controversial. Several conservation and environmental organizations oppose this bill because it would facilitate development of the reservoir. These groups contend the reservoir would harm the Delta ecosystem while providing few, if any, resource management benefits.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

ASSEMBLY VOTES:

Assembly Floor (75-0)

Assembly Utilities and Commerce Committee (15-0)

Assembly Local Government Committee (9-0)

SUPPORT:

Northern California Water Association (Source)

California Municipal Utilities Association

Colusa County

Water Resources Association of Yolo County

Yolo County

OPPOSITION:

American Whitewater

California Outdoors

California Sportfishing Protection Alliance

Foothill Conservancy

Friends of the River

Sierra Club California

ARGUMENTS IN SUPPORT: Proponents claim this bill will allow RD 108 to reduce its energy costs in an environmentally responsible way.

ARGUMENTS IN OPPOSITION: Opponents contend this bill would facilitate development of the Sites Reservoir, which they contend would harm the Delta ecosystem while providing few, if any, resource management benefits.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 568

Author:(Dodd)

As Amended Ver:May 14, 2015

Majority vote

SUMMARY: Authorizes Reclamation District No. 108, until January 1, 2021, to generate and sell hydroelectric power. Specifically, this bill:

1. Extends to Reclamation District No. 108 (RD 108) until January 1, 2021, the authority already granted to Reclamation District No. 1004 (RD 1004), to do the following:

1. Construct, maintain and operate a plant and transmission lines for the generation of hydroelectric power;

2. Sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity; and,

3. Lease the hydroelectric plant, transmission lines, and related facilities to a public utility or public agency engaged in the distribution, use, or sale of electricity.

2. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for the construction of the facilities and for the powers and purposes for which the district was formed.

3. Allows the construction of the plant, transmission lines and other facilities to be financed by the issuance of time warrants and allows the RD 108's Board of Trustees (Board), by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. Allows the Board to pledge the plant, transmission lines, and other facilities, and revenue as the sole security for the payment of the time warrants.

4. Prohibits the direct sale of hydroelectric power to customers other than a public utility or public agency.

EXISTING LAW:

1. Establishes powers and duties for reclamation districts.

2. Authorizes a reclamation district to levy assessments and allows the board of trustees to each reclamation district to issue time warrants.

3. Authorizes RD 1004, in conjunction with Colusa County, to construct, maintain, and operate a plant for the generation of hydroelectric power.

4. Allows RD 1004 to lease the hydroelectric plant, transmission lines, and related facilities and to sell power generated to a public utility or public agency engaged in the distribution use or sale of electricity.

5. Prohibits RD 1004 from selling the power directly to the customer rather than to a public utility or agency.

6. Allows the construction of the plant, transmission lines, and other facilities to be financed by the issuance of time warrants and allows the RD 1004 Board, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. Allows the RD 1004 Board to pledge the plan, transmission lines, and other facilities, and revenue as the sole security for the payment of the time warrants.

7. Requires proceeds from the sale of electricity to be utilized to retire any time warrant issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

FISCAL EFFECT: None

COMMENTS:

1. Background. Existing law allows several types of special districts to generate hydroelectric power, including water conservation districts, county water districts, municipal water districts, irrigation districts, and community service districts. Current law allows these districts to use the hydraulic force of the water they deliver to generate electricity. In all of these examples, the generation of hydroelectric power is the secondary product of the district's primary purpose.

In addition to including the generation of hydroelectric power on the list of powers and duties for several special district principal acts, the Legislature has also authorized individual special districts to generate and sell hydroelectric power. The Legislature granted authority to RD 1004 to generate and sell hydroelectric power in 1986.

2. Bill Summary. This bill extends to RD 108, until January 1, 2021, the authority currently granted to RD 1004 to construct, maintain, and operate a plant for the generation of hydroelectric power. This bill also allows RD 108 to sell the hydroelectric power and to lease related facilities to a public utility or public agency that is engaged in the use or sale of electricity. This bill is sponsored by the Northern California Water Association.

3. Author's Statement. According to the author, "RD 108 is responsible for water supply, levee maintenance, drainage and flood control within its boundaries. In 2009, RD 108 completed construction of a 386KW DC solar generation facility on seven acres adjacent to the District's Sycamore Slough Pump Station. Water and recycled water enters and leaves the District through the pumping facilities along the Sacramento River. The pump station is used to recycle water within the District boundaries and is partially powered by the solar facility. Energy is a significant operating expense for RD 108. Potential future water storage facilities in the vicinity of RD 108 present opportunities for the District to develop power from clean hydro-electric generation provided that the District has the authority to construct, maintain, and operate a hydroelectric facility."

4. RD 108. RD 108 was formed in 1870 under the Reclamation District Law of 1868. According to the Colusa Local Agency Formation Commission's Municipal Service Review in 2010, RD 108 began construction of irrigation canals and began pumping plants in 1916, shortly after becoming the first reclamation district in California to deliver irrigation water. RD 108 includes 74,000 acres and delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County.

RD 108 overlaps with the service area of the Knights Landing Ridge Drainage District and the Sacramento River Westside Levee District and provides administration for the two districts. RD 108 is also party to a joint powers authority (JPA) with Glenn-Colusa Irrigation District, Tehama-Colusa Canal Authority, Maxwell Irrigation District, Glenn County, Colusa County, and the Yolo County Flood Control and Water Conservation District. The JPA was formed to pursue the development and construction of the Site Reservoir Project, a proposed project with the Bureau of Reclamation and the California Department of Water Resources, in cooperation with other federal, state, and local agencies to increase surface storage north of the Sacramento-San Joaquin Delta.

5. Local Agency Formation Commission (LAFCO). As a special district, RD 108 would need to get the approval of the Colusa LAFCO in order to activate the powers contained in this bill. The Cortese-Knox-Hertzberg Act establishes the process to activate a latent power, including passing a resolution by the Board, holding a public hearing, and submitting a petition to LAFCO which includes a plan for services and the estimated cost of the new service.

6. Arguments in Support. Supporters argue that this bill would provide RD 108 with the similar authority to generate and sell hydroelectric power possessed by other entities providing irrigation water, including irrigation districts and water districts.

7. Arguments in Opposition. Opposition argues that this bill would authorize RD 108 to participate in the generation of electricity with other potential partners at the proposed Sites dam. Opposition argues that Sites dam is not currently authorized by the state or federal government; therefore, both the Site dam and this bill are premature.

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958 FN: 0000454

Date of Hearing: May 11, 2015

ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE

Anthony Rendon, Chair

ABPCA Bill Id:AB 568 (

Author:Dodd) – As Introduced Ver:February 24, 2015

SUBJECT: Reclamation District No. 108: hydroelectric power

SUMMARY: This bill authorizes Reclamation District No. 108 (RD 108) to construct and operate a hydroelectric power plant. Specifically, this bill:

1. Authorizes RD 108 to do the following:

1. Construct, maintain, and operate a plant and transmission lines for the generation of hydroelectric power,

2. Sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity, and

3. Lease the hydroelectric plant, transmission lines, and related facilities to a public utility or public agency engaged in the distribution, use, or sale of electricity.

2. Allows the construction of the plant and transmission lines to be financed by the issuance of time warrants and allows the RD 108 Board of Trustees, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants.

3. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and for the powers and purposes for which the district was formed.

4. Allows the RD 108 Board of Trustees to pledge the plant, transmission lines, and related facility and the revenues from the operation of the hydroelectric plant as the sole security for the payment of the time warrants.

5. Prohibits the direct sale of hydroelectric power to customers, other than a public utility or public agency.

EXISTING LAW:

1. Authorizes Reclamation District No. 1004 (RD 1004), in conjunction with the County of Colusa, to construct, maintain, and operate a plant for the generation of hydroelectric power. (Water Code Section 50906)

2. Allows RD 1004 to lease the hydroelectric plant, transmission lines, and related facilities, and sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity. (Water Code Section 50906)

3. Allows the construction of the plant and transmission lines to be financed by the issuance of time warrants, and allows the RD 1004 Board of Trustees, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. (Water Code Section 50906)

4. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. (Water Code Section 50906)

5. Prohibits RD 1004 from selling the power directly to the customer, other than to a public utility or public agency. (Water Code Section 50906)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Author’s Statement: “RD 108 is responsible for water supply, levee maintenance, drainage and flood control within its boundaries. In 2009, RD 108 completed construction of a 386KW DC solar generation facility on seven acres adjacent to the District’s Sycamore Slough Pump Station. Water and recycled water enters and leaves the District through the pumping facilities along the Sacramento River. The pump station is used to recycle water within the district boundaries and is partially powered by the solar facility. Energy is a significant operating expense for RD 108… Potential future water storage facilities in the vicinity of RD 108 present opportunities for the District to develop power from clean hydro- electric generation provided that the District has the authority to construct, maintain and operate a hydroelectric facility.”

2. Background: Reclamation Districts are districts formed to pay for the cost of reclaiming land that may be subject to frequent overflow or flooding, such as swamps, salt marshes, or tidelands. Reclamation Districts provide a means for counties to finance the reclamation of the land for future use, such as creating facilities for land irrigation or sewage and waste removal. Reclamation Districts are formed by a petition of at least 50% of the owners of the assessed value of land in the area. The petition is then presented to the county which notifies all affected property owners and hold public hearings to consider the petition. A vote of all landowners will then be conducted on whether or not to form the Reclamation District.

3. Reclamation District No. 108: RD 108 was formed in 1870 under the Reclamation District Law of 1868. RD 108 is located along the western edge of the Sacramento River and delivers water to nearly 48,000 acres of farmland within the southern Colusa County and northern Yolo County. RD 108 was created for the purpose of forming a district to build levees and reclaim land subject to periodic overflowing or flooding. RD 108 is surrounded by levees on three sides and works in collaboration with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.

4. Sites Project Joint Powers Authority: In August 2010, RD 108, the Glenn-Colusa Irrigation District, the Tehama-Colusa Canal Authority, the Maxwell Irrigation District, the County of Glenn, the County of Colusa, and the Yolo County Flood Control and Water Conservation District created a joint powers authority (JPA) to pursue the development and construction of the Sites Reservoir Project. The Sites Reservoir Project, also referred to as North of Delta Offstream Storage, is a proposed project between the Bureau of Reclamation and the California Department of Water Resources, in cooperation with other federal, state, and local agencies, to increase surface storage north of the Sacramento-San Joaquin Delta. Due to the location of each member of the JPA relative to the Sites Reservoir, the JPA provides a way for each member to help design, acquire, construct, manage, govern, and operate the project for the purposes of improving water management and restoring the ecological health of the Sacramento-San Joaquin Delta and the Sacramento River watershed.

5. Hydroelectric Power Plant: Existing law provides RD 1004 authority to generate hydroelectric power. This authority was granted by statute almost 30 years ago. Although there is currently no hydroelectric plant in RD 108, nor are their active plans for the construction of one, according to the author, because RD 108 is a member of the Sites Reservoir JPA, RD 108 is the only JPA member to lack the authority to participate in the creation of a hydroelectric plant should the JPA decide to do so in the future, depending on if or when the Sites Reservoir Project is completed. This bill would give RD 108 the authority to construct, maintain, and operate a hydroelectric power plant consistent with other members of the JPA should the JPA decide to do so in the future.

Given the fact that RD 1004 is the only Reclamation District currently allowed to generate hydroelectric power but has yet to use such authority, the author may wish to consider an amendment to sunset RD 108’s authority after five years, should RD 108 not use such authority as well.

6. Arguments in Support: According to the Northern California Water Association (NCWA), the sponsor of the bill, “NCWA is committed to advancing the economic, social, and environmental sustainability of the Sacramento Valley by enhancing and preserving its water rights, supplies, and water quality for the rich mosaic of farmlands, refuges and managed wetlands, meandering rivers that support fisheries and wildlife, and cities and rural communities in the region. AB 568 would provide RD 108 with similar authorities to those possessed by other entities providing irrigation water, including irrigation districts and water districts.”

7. Arguments in Opposition: According to the opposition, “This legislation is premature. Sites dam would pull water off the Sacramento River to be stored for later use. The impacts of its operations would largely be on the Sacramento River and Delta. It would be a net user of electricity as more gigawatt hours would be used for pumping water into the reservoir than would be released in releasing this water. It’s estimated cost is $3.8 billion. It, when coupled with other potential but expensive Cal Fed dams, is modeled to add about one percent to California’s available water supply. That is not much. Sites dam is not currently authorized by the state or federal governments. It is not clear who would own and operate the facility, nor how it would be operated, nor just about anything on how it would be paid for.”

8. Suggested Amendment:

The construction of this amendment sunsets the authority for Reclamation District 108 and preserves the authority of Reclamation District 1004 to develop hydroelectric generation.

50906 (e) This section shall remain in effect only until January 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2021, deletes or extends that date.

50906.1 (a)  A reclamation district specified in subdivision (d) may construct, maintain, and operate a plant for the generation of hydroelectric power, together with transmission lines for the conveyance thereof and with other facilities that may be necessary or appropriate for the construction, maintenance, and operation of that plant. Construction of the plant and transmission lines may be financed by the issuance of time warrants pursuant to Article 3 (commencing with Section 53040) of Chapter 1 of Part 9 to pay the cost of construction of the plant, transmission lines, and related facilities, except that the board may, by resolution, provide for the payment of those time warrants solely from the proceeds derived from the operation of the hydroelectric powerplant, in lieu of the assessment described in Section 53040, and may, in that event, pledge the plant, transmission lines, and related facilities and the revenues from the operation of the hydroelectric plant as the sole security for the payment of the time warrants.

(b)  The hydroelectric plant, transmission lines, and related facilities constructed pursuant to this section may be leased for operation to, or the power generated may be sold to, a public utility or public agency engaged in the distribution, use, or sale of electricity, but shall not be offered for sale directly by the district to customers other than a public utility or public agency.

(c)  Proceeds from the sale of electricity shall be utilized to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

(d) This section applies only to the following reclamation districts:

1. Reclamation District No. 1004 acting in conjunction with the County of Colusa.

(e) This section shall become operative on January 1, 2021.

9. Double Referred: This bill was previously heard in the Assembly Committee on Local Government and passed out on a 9-0 vote.

REGISTERED SUPPORT / OPPOSITION:

Support

Northern California Water Association (Sponsor)

California Municipal Utilities Association

County of Colusa

County of Yolo

Water Resources Association of Yolo County

Opposition

American Whitewater

California Outdoors

California Sportfishing

Foothill Conservancy

Friends of the River

Sierra Club California

Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083

Date of Hearing: April 8, 2015

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Brian Maienschein, Chair

ABPCA Bill Id:AB 568

Author:(Dodd) – As Introduced Ver:February 24, 2015

SUBJECT: Reclamation District No. 108: hydroelectric power.

SUMMARY: Authorizes Reclamation District No. 108 to generate and sell hydroelectric power. Specifically, this bill:

1. Extends to Reclamation District No. 108 (RD 108) the authority already granted to Reclamation District No. 1004 (RD 1004), to do the following:

1. Construct, maintain and operate a plant and transmission lines for the generation of hydroelectric power;

2. Sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity; and,

3. Lease the hydroelectric plant, transmission lines, and related facilities to a public utility or public agency engaged in the distribution, use, or sale of electricity.

2. Requires proceeds from the sale of electricity to be utilized to retire any time warrants issued for the construction of the facilities and for the powers and purposes for which the district was formed.

3. Allows the construction of the plant, transmission lines and other facilities to be financed by the issuance of time warrants and allows the RD 108's Board of Trustees (Board), by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. Allows the Board to pledge the plant, transmission lines, and other facilities, and revenue as the sole security for the payment of the time warrants.

4. Prohibits the direct sale of hydroelectric power to customers other than a public utility or public agency.

EXISTING LAW:

1. Establishes powers and duties for reclamation districts.

2. Authorizes a reclamation district to levy assessments and allows the board of trustees to each reclamation district to issue time warrants.

3. Authorizes Reclamation District No. 1004, in conjunction with Colusa County, to construct, maintain, and operate a plant for the generation of hydroelectric power.

4. Allows RD 1004 to lease the hydroelectric plant, transmission lines, and related facilities and to sell power generated to a public utility or public agency engaged in the distribution use or sale of electricity.

5. Prohibits RD 1004 from selling the power directly to the customer other than to a public utility or agency.

6. Allows the construction of the plant, transmission lines, and other facilities to be financed by the issuance of time warrants and allows the RD 1004 Board of Trustees, by resolution, to only use the proceeds from the hydroelectric power plant, instead of assessments, to pay for the time warrants. Allows the RD 1004 Board of Trustees to pledge the plan, transmission lines, and other facilities, and revenue as the sole security for the payment of the time warrants.

7. Requires proceeds from the sale of electricity to be utilized to retire any time warrant issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed.

FISCAL EFFECT: None

COMMENTS:

1. Background. Existing law allows several types of special districts to generate hydroelectric power including water conservation districts, county water districts, municipal water districts, irrigation districts, and community service districts. Current law allows these districts to use the hydraulic force of the water they deliver to generate electricity. In all of these examples, the generation of hydroelectric power is the secondary product of the district's primary purpose.

In addition to including the generation of hydroelectric power on the list of powers and duties for several special district principal acts, the Legislature has also authorized individual special districts to generate and sell hydroelectric power. The Legislature granted authority to RD 1004 to generate and sell hydroelectric power in 1986.

2. Bill Summary. This bill extends, to RD 108, the authority currently granted to RD 1004 to construct, maintain, and operate a plant for the generation of hydroelectric power. This bill also allows RD 108 to sell the hydroelectric power and to lease related facilities to a public utility or public agency that is engaged in the use or sale of electricity. This bill is sponsored by the Northern California Water Association.

3. Author's Statement. According to the author, "RD 108 is responsible for water supply, levee maintenance, drainage and flood control within its boundaries. In 2009, RD 108 completed construction of a 386KW DC solar generation facility on seven acres adjacent to the District’s Sycamore Slough Pump Station. Water and recycled water enters and leaves the District through the pumping facilities along the Sacramento River. The pump station is used to recycle water within the district boundaries and is partially powered by the solar facility. Energy is a significant operating expense for RD 108. Potential future water storage facilities in the vicinity of RD 108 present opportunities for the District to develop power from clean hydro-electric generation provided that the District has the authority to construct, maintain, and operate a hydroelectric facility."

4. RD 108. RD 108 was formed in 1870 under the Reclamation District Law of 1868. According to the Colusa Local Agency Formation Commission's Municipal Service Review in 2010, RD 108 began construction of irrigation canals and began pumping plants in 1916, shortly after becoming the first reclamation district in California to deliver irrigation water. RD 108 includes 74,000 acres and delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County.

RD 108 overlaps with the service area of the Knights Landing Ridge Drainage District and the Sacramento River Westside Levee District and provides administration for the two districts. RD 108 is also party to a joint powers authority with Glenn-Colusa Irrigation District, Tehama-Colusa Canal Authority, Maxwell Irrigation District, Glenn County, Colusa County, and the Yolo County Flood Control and Water Conservation District.

5. Local Agency Formation Commission (LAFCO). As a special district, RD 108 would need to get the approval of the Colusa LAFCO in order to activate the powers contained in this bill. The Cortese-Knox-Hertzberg Act establishes the process to activate a latent power including passing a resolution by the Board, holding a public hearing, and submitting a petition to LAFCO which includes a plan for services and the estimated cost of the new service.

6. Policy Consideration. The Committee may wish to consider adding a sunset date to this bill. The Legislature allowed RD 1004 to generate and sell hydroelectric power almost thirty years ago, yet they have never used the authority. Without a plan in place for either district, the Committee may wish to include a sunset date which would allow the Legislature to reconsider the necessity of this authority if it remains unused for another ten years.

7. Arguments in Support. Supporters argue that this bill would provide RD 108 with the similar authority to generate and sell hydroelectric power possessed by other entities providing irrigation water, including irrigation districts and water districts.

8. Arguments in Opposition. None on file.

9. Double-Referral. This bill is double-referred to the Utilities and Commerce Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Northern California Water Association [SPONSOR]

Opposition

None on file

Analysis Prepared by: Misa Lennox / L. GOV. / (916) 319-3958