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 used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026.

This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026. The bill would require Reclamation District No. 108 to submit a report to the Assembly and Senate Committees on Local Government on or before January 1, 2031, and between January 1, 2035, and January 1, 2036, containing certain information, including, among other things, whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority. The bill would also require the report to include the reasons the district is currently not exercising its hydroelectric authority and an estimated date by which the district expects to begin exercising that authority.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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 used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026.

This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026. The bill would require Reclamation District No. 108 to submit a report to the Assembly and Senate Committees on Local Government on or before January 1, 2031, and between January 1, 2035, and January 1, 2036, containing certain information, including, among other things, whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority. The bill would also require the report to include the reasons the district is currently not exercising its hydroelectric authority and an estimated date by which the district expects to begin exercising that authority.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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 used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026.

This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026. The bill would require Reclamation District No. 108 to submit a report to the Assembly and Senate Committees on Local Government on or before January 1, 2031, and between January 1, 2035, and January 1, 2036, containing certain information, including, among other things, whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority. The bill would also require the report to include the reasons the district is currently not exercising its hydroelectric authority and an estimated date by which the district expects to begin exercising that authority.

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 used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026.

This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026. The bill would require Reclamation District No. 108 to submit a report to the Assembly and Senate Committees on Local Government between January 1, 2035, and January 1, 2036, containing certain information, including, among other things, whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority.

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. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026.

This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 59

Author:(Aguiar-Curry)

As Amended Ver:June 23, 2025

Majority vote

SUMMARY

Makes permanent the authority of Reclamation District No. 108 (RD 108) to generate and sell hydroelectric power and requires RD 108 to submit specified reports to the Legislature regarding its hydroelectric operations.

Senate Amendments

1. Add a requirement for RD 108 to submit an additional report to the Assembly and Senate Committees on Local Government containing specified information on or before January 1, 2031.
2. Add further requirements for the reports submitted by RD 108 to the Assembly and Senate Committees on Local Government:
3. An estimated date for the use of its hydroelectric authority; and
4. If the district is not currently using its hydroelectric authority, regardless of whether the district has plans to use its hydroelectric authority, the reasons for not using that authority.

COMMENTS

1. Background. Reclamation Districts (RDs) are special 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. RDs provide a means to finance the reclamation of the land for future use, such as creating facilities for land irrigation or sewage and waste removal. RDs are formed by a petition of at least 50% of the owners of the land in the area. The petition is then presented to the county which notifies all affected property owners, holds public hearings to consider the petition and, if it finds that the statements in the petition are correct, makes an order approving the petition.

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 the authority to generate and sell hydroelectric power to RD 1004 in 1986 [AB 1048 (Costa), Chapter 21, Statutes of 1986]. In 2015, this authority was granted to RD 108 with a sunset date of January 1, 2021 [AB 568 (Dodd), Chapter 134, Statutes of 2015], which was later extended to January 1, 2026 [SB 1473 (Committee on Governance and Finance), Chapter 371, Statutes of 2020].

1. RD 108. RD 108 was formed in 1870 under the Reclamation District Law of 1868. It is located along the western edge of the Sacramento River. According to the Colusa Local Agency Formation Commission's (LAFCo) Municipal Service Review in 2018, RD 108 delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 works in coordination with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.
2. Hydroelectric Authority of RD 108. As a special district, RD 108 requires the approval of the Colusa LAFCo in order to activate these hydroelectric powers, which are outlined in Section 50906 of the Water Code. According to the Colusa LAFCo, "In 2019, the Commission approved hydroelectric power generation services for RD 108 under Resolution No. 2019-0003. It appears that this approval process was not completed, and RD 108 may need to make a new application to LAFCo for the exercise of new or different functions or classes of services (latent powers) pursuant to Government Code Section 56824.10 - 56824.14 to authorize hydroelectric power generation services."

RD 108 has not thus far exercised its authority to generate and sell hydroelectric power. According to the Northern California Water Association, sponsor of this bill, "RD 108 has completed an evaluation of the total expected capacity of future hydropower projects. They have identified opportunities through hydropower and floating solar power assessments considering multiple types of power generating equipment and has evaluated the total capacity of RD 108's infrastructure to be 20 megawatts. Of that 20 MW of available potential capacity, 19.8 MW is hydropower and 0.2 MW is floating solar power. They have also received suggestions through the evaluation on how to phase the development of the 20 MW into smaller phases."

According to the Author

According to the author, "Reclamation District 108 (RD 108) delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 is responsible for water supply, levee maintenance, drainage, and flood control within its boundaries and has high energy costs due to its pumping facilities, including for projects that reduce water use by recycling water within the district. This bill allows RD 108 to continue to explore affordable solutions to reduce energy costs through hydropower by extending its existing hydropower authority"

Arguments in Support

The Northern California Water Association (NCWA), sponsor of this bill, states, "AB 59 would remove a January 1, 2026 sunset date from Reclamation District (RD) 108's existing hydropower authorization that was created by AB 568 (Dodd, 2015). AB 59 would continue to authorize RD 108 to 'construct, maintain, and operate a plan 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' among other specified authorities. (Water Code Section 509096(a).)…

"The hydropower authorization presents opportunities for RD 108 to develop power through hydroelectric generation, including potentially through small hydropower facilities in the District's various canals. AB 59 would allow RD 108 to reduce its energy costs in an affordable and environmentally responsible way."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

VOTES:

ASM LOCAL GOVERNMENT: 8-0-2

YES: Carrillo, Hoover, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward

ABS, ABST OR NV: Ta, Wilson

ASSEMBLY FLOOR: 77-0-3

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, DeMaio, Dixon, Elhawary, Ellis, Essayli, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wilson, Zbur, Rivas

ABS, ABST OR NV: Alvarez, Davies, Wicks

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

UPDATED

VERSION: June 23, 2025

CONSULTANT: Julia Mouat / L. GOV. / (916) 319-3958 FN: 0001530

 THIRD READING  

Bill No: AB 59

Author: Aguiar-Curry (D)

Amended: 6/23/25 in Senate

Vote: 21

SENATE LOCAL GOVERNMENT COMMITTEE: 7-0, 6/18/25

AYES: Durazo, Choi, Arreguín, Cabaldon, Laird, Seyarto, Wiener

SENATE ENERGY, U. & C. COMMITTEE: 16-0, 7/7/25

AYES: Becker, Ochoa Bogh, Allen, Archuleta, Arreguín, Ashby, Caballero, Gonzalez, Grove, Hurtado, Limón, McNerney, Rubio, Stern, Strickland, Wahab

NO VOTE RECORDED: Dahle

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 4/1/25 - See last page for vote

SUBJECT: Reclamation District No. 108: hydroelectric power

SOURCE: Northern California Water Association

DIGEST:

This bill makes permanent the authority of Reclamation District No. 108 (RD 108) to generate and sell hydroelectric power.

ANALYSIS:

Existing law:

1. Defines “reclamation” as public works and equipment needed to drain, irrigate, or water lands within a RD and other district operations.
2. Authorizes the formation of a RD, as specified, for the purposes of performing reclamation on any land subject to overflow from neighboring rivers and water bodies.
3. Allows RD 1004 and RD 108 to operate hydroelectric facilities and associated transmission lines, as specified. Existing law allows a RD operating a hydroelectric power plant to sell power generated by its facility to a public utility or public agency supply electricity; however, existing law prohibits the RD from selling this electricity to any customers other than a public utility or public agency.
4. Provides RD 1004 with indefinite authority to operate a hydroelectricity facility while providing RD 108 with authority to operate a hydroelectricity facility until January 1, 2026.

This bill:

1. Repeals the January 1, 2026, sunset on RD 108’s authority to operate a hydroelectric facility.
2. Requires RD 108 to submit a report to the Assembly and Senate Committees on Local Government containing the following information:
   1. Whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority.
   2. Whether the district is using its hydroelectric authority or has plans to use its hydroelectric authority.
   3. Specified information about the RD’s hydroelectric power sales if the RD is generating hydroelectric power.
   4. The RD’s reasons for not using its hydroelectric authority if has not exercised that authority.
3. Requires RD 108 to submit the report required by this bill by the following dates:
   1. January 1, 2031.
   2. Between January 1, 2035, and January 1, 2036.

Background

Property owners in Colusa County formed RD 108 in 1870 under the Reclamation District Law of 1868. It is located along the western edge of the Sacramento River. According to the Colusa Local Agency Formation Commission’s (LAFCO) Municipal Service Review in 2018, RD 108 delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 works in coordination with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.

Hydroelectric power sales by special districts. 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, so long as they sell the energy to a public agency or public utility, not directly to retail customers, and use the proceeds for the purposes of the district. The Legislature granted the authority to generate and sell hydroelectric power to RD 1004 in 1986 (AB 1048, Costa). In 2015, the Legislature granted this authority to RD 108 with a sunset date of January 1, 2021 (AB 568 Dodd), which the Legislature later extended to January 1, 2026 (SB 1473, Committee on Governance and Finance, 2020).

RD 108 has not yet exercised this authority. The Northern California Water Association wants the Legislature to repeal the sunset on its ability to exercise this authority.

Comments

1. Purpose of this bill. According to the author, “Reclamation District 108 (RD 108) delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 is responsible for water supply, levee maintenance, drainage, and flood control within its boundaries and has high energy costs due to its pumping facilities, including for projects that reduce water use by recycling water within the district. This bill allows RD 108 to continue to explore affordable solutions to reduce energy costs through hydropower by extending its existing hydropower authority.”
2. Time flies. RD 108 last received an extension of its authority to generate and sell hydropower in 2020, which expires on January 1, 2026. In those intervening five years, the district has not yet begun to exercise this authority. As a special district, RD 108 requires the approval of the Colusa LAFCO in order to activate these hydroelectric powers. According to the Colusa LAFCO, “In 2019, the Commission approved hydroelectric power generation services for RD 108 under Resolution No. 2019-0003. It appears that this approval process was not completed, and RD 108 may need to make a new application to LAFCO for the exercise of new or different functions or classes of services (latent powers) pursuant to GOV § 56824.10 - 56824.14 to authorize hydroelectric power generation services.” One reason RD 108 may not have exercised its hydropower generation authority may be related to lack of progress on the construction of Sites Reservoir, a proposed 1.5 million acre foot offstream reservoir in the Sacramento Valley. According to their website, construction for the Sites Reservoir is scheduled to begin in 2026 with the reservoir anticipated to be operational at the end of 2032. RD 108 is a member of the Sites Project Authority, a joint powers authority (JPA) made up of several local agencies that leads the development and construction of the project. A JPA can only exercise powers in common to all member agencies. Accordingly, in 2020, when seeking an initial reauthorization of the authority made permanent by AB 59, the Northern California Water Association indicated that if RD 108 lost the authority to generate hydroelectricity, they could no longer participate in the JPA. AB 59 includes reporting requirements for RD 108 to report on the use of its authority, so that in the future the Legislature can evaluate whether RD 108 continues to need its hydroelectric authority.

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

SUPPORT: (Verified 8/19/25)

Northern California Water Association (Source)

California Central Valley Flood Control Association

Colusa County

County of Yolo

OPPOSITION: (Verified 8/19/25)

None received

ASSEMBLY FLOOR: 77-0, 4/1/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, DeMaio, Dixon, Elhawary, Ellis, Essayli, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wilson, Zbur, Rivas

NO VOTE RECORDED: Alvarez, Davies, Wicks

Prepared by: Anton Favorini-Csorba / L. GOV. / (916) 651-4119

8/20/25 23:06:52

**** END ****

SENATE COMMITTEE ON LOCAL GOVERNMENT

Senator María Elena Durazo, Chair

2025 - 2026 Regular

Reclamation District No. 108: hydroelectric power

Makes permanent the authority of Reclamation District No. 108 (RD 108) to generate and sell hydroelectric power.

Background

Reclamation districts. Reclamation Districts (RDs) are special 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. RDs provide a means to finance the reclamation of the land for future use, such as creating facilities for land irrigation or sewage and waste removal. RDs are formed by a petition of at least 50% of the owners of the land in the area. The petition is then presented to the county which notifies all affected property owners, holds public hearings to consider the petition and, if it finds that the statements in the petition are correct, makes an order approving the petition.

Property owners in Colusa County formed RD 108 in 1870 under the Reclamation District Law of 1868. It is located along the western edge of the Sacramento River. According to the Colusa Local Agency Formation Commission’s (LAFCO) Municipal Service Review in 2018, RD 108 delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 works in coordination with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.

Hydroelectric power sales by special districts. 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, so long as they sell the energy to a public agency or public utility, not directly to retail customers, and use the proceeds for the purposes of the district. The Legislature granted the authority to generate and sell hydroelectric power to RD 1004 in 1986 (AB 1048, Costa). In 2015, the Legislature granted this authority to RD 108 with a sunset date of January 1, 2021 (AB 568 Dodd), which the Legislature later extended to January 1, 2026 (SB 1473, Committee on Governance and Finance, 2020).

RD 108 has not yet exercised this authority. The Northern California Water Association wants the Legislature to repeal the sunset on its ability to exercise this authority.

Proposed Law

Assembly Bill 59 repeals the sunset date on RD 108’s authority to generate and sell hydroelectric power. AB 59 also requires RD 108 to report to the Assembly and Senate Committees on Local Government, between January 1, 2035 and January 1, 2036, on whether the district has obtained permission from the Colusa LAFCO to enact its hydroelectric authority and whether it is using or has plans to use its authority. If RD 108 has used the authority, the report must include the status of the project and financial statements related to the sale of hydroelectric power.

Comments

1. Purpose of the bill. According to the author, “Reclamation District 108 (RD 108) delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 is responsible for water supply, levee maintenance, drainage, and flood control within its boundaries and has high energy costs due to its pumping facilities, including for projects that reduce water use by recycling water within the district. This bill allows RD 108 to continue to explore affordable solutions to reduce energy costs through hydropower by extending its existing hydropower authority.”

2. Time flies. RD 108 last received an extension of its authority to generate and sell hydropower in 2020, which expires on January 1, 2026. In those intervening five years, the district has not yet begun to exercise this authority. As a special district, RD 108 requires the approval of the Colusa LAFCO in order to activate these hydroelectric powers. According to the Colusa LAFCO, “In 2019, the Commission approved hydroelectric power generation services for RD 108 under Resolution No. 2019-0003. It appears that this approval process was not completed, and RD 108 may need to make a new application to LAFCO for the exercise of new or different functions or classes of services (latent powers) pursuant to GOV § 56824.10 - 56824.14 to authorize hydroelectric power generation services.” RD 108 has produced a document that indicates that a company called Emrgy could generate up to 20 megawatts of power in the district via a mechanism called hydrokinetics, as well as technology under research and development, although details are sparse. It is unclear why RD 108 has not proceeded further in its efforts to use the authority to generate hydroelectric power.

3. What about Sites? One reason RD 108 may not have exercised its hydropower generation authority may be related to lack of progress on the construction of Sites Reservoir, a proposed 1.5 million acre foot offstream reservoir in the Sacramento Valley. According to their website, construction for the Sites Reservoir is scheduled to begin in 2026 with the reservoir anticipated to be operational at the end of 2032. RD 108 is a member of the Sites Project Authority, a joint powers authority (JPA) made up of several local agencies that leads the development and construction of the project. A JPA can only exercise powers in common to all member agencies. Accordingly, in 2020, when seeking an initial reauthorization of the authority made permanent by AB 59, the Northern California Water Association indicated that if RD 108 lost the authority to generate hydroelectricity, they could no longer participate in the JPA.

4. Tell me more. AB 59 removes the January 1, 2026 sunset on this authority and requires a report to the Legislature on the use of its authority within the next 11 years. However, the reporting language in the bill only requires RD 108 to indicate whether it has used the authority and, if it has, how it has done so. This does not necessarily provide the Legislature with full information regarding whether RD 108 continues to need the authority. The Committee may wish to consider amending AB 59 to require RD 108 to also report on or before January 1, 2031 on whether it has used the authority, and to include in the reports information on why it has not used the authority as well as d projected dates for usage of the authority.

5. Coming and going. The Senate Rules Committee has ordered a double referral of AB 59: first to the Committee on Local Government to hear issues related to local government powers and duties, and second to the Committee on Energy, Utilities, and Communications.

Assembly Actions

Assembly Local Government Committee: 8-2

Assembly Floor: 77-0

Support and Opposition

(6/13/2025)

Support: Northern California Water Association (Sponsor)
California Central Valley Flood Control Association
Colusa County
County of Yolo

Opposition: None Submitted

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 59

Author:(Aguiar-Curry)

As Amended Ver:March 27, 2025

Majority vote

SUMMARY

Makes permanent the authority of Reclamation District No. 108 (RD 108) to generate and sell hydroelectric power.

Major Provisions

1. Removes the January 1, 2026 sunset date on the authority of RD 108 to do the following:
   1. 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;
   2. Finance construction of the plant and transmission lines by the issuance of time warrants, which shall be retired by proceeds from the sale of electricity, as specified;
   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;
   4. Sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity. The power generated shall not be offered for sale directly by the district to customers other than a public utility or public agency.
2. Requires RD 108 to submit to the Assembly and Senate Committees on Local Government, between January 1, 2035, and January 1, 2036, a report containing the following information:
   1. Whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority.
   2. Whether the district is using its hydroelectric authority or has plans to use its hydroelectric authority. If the district is using its hydroelectric power or has plans to use its hydroelectric power, the report shall include the following information
      1. The status of the project.
      2. Financial statements related to the selling of hydroelectric power.
3. Makes conforming changes.

COMMENTS

1. Background. Reclamation Districts (RDs) are special 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. RDs provide a means to finance the reclamation of the land for future use, such as creating facilities for land irrigation or sewage and waste removal. RDs are formed by a petition of at least 50% of the owners of the land in the area. The petition is then presented to the county which notifies all affected property owners, holds public hearings to consider the petition and, if it finds that the statements in the petition are correct, makes an order approving the petition.

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 the authority to generate and sell hydroelectric power to RD 1004 in 1986 [AB 1048 (Costa), Chapter 21, Statutes of 1986]. In 2015, this authority was granted to RD 108 with a sunset date of January 1, 2021 [AB 568 (Dodd), Chapter 134, Statutes of 2015], which was later extended to January 1, 2026 [SB 1473 (Committee on Governance and Finance), Chapter 371, Statutes of 2020].

1. RD 108. RD 108 was formed in 1870 under the Reclamation District Law of 1868. It is located along the western edge of the Sacramento River. According to the Colusa Local Agency Formation Commission's (LAFCo) Municipal Service Review in 2018, RD 108 delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 works in coordination with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.
2. Hydroelectric Authority of RD 108. As a special district, RD 108 requires the approval of the Colusa LAFCo in order to activate these hydroelectric powers, which are outlined in Section 50906 of the Water Code. According to the Colusa LAFCo, "In 2019, the Commission approved hydroelectric power generation services for RD 108 under Resolution No. 2019-0003. It appears that this approval process was not completed, and RD 108 may need to make a new application to LAFCo for the exercise of new or different functions or classes of services (latent powers) pursuant to Government Code Section 56824.10 - 56824.14 to authorize hydroelectric power generation services."

RD 108 has not thus far exercised its authority to generate and sell hydroelectric power. According to the Northern California Water Association, sponsor of this bill, "RD 108 has completed an evaluation of the total expected capacity of future hydropower projects. They have identified opportunities through hydropower and floating solar power assessments considering multiple types of power generating equipment and has evaluated the total capacity of RD 108's infrastructure to be 20 megawatts. Of that 20 MW of available potential capacity, 19.8 MW is hydropower and 0.2 MW is floating solar power. They have also received suggestions through the evaluation on how to phase the development of the 20 MW into smaller phases."

According to the Author

Reclamation District 108 (RD 108) delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 is responsible for water supply, levee maintenance, drainage, and flood control within its boundaries and has high energy costs due to its pumping facilities, including for projects that reduce water use by recycling water within the district. This bill allows RD 108 to continue to explore affordable solutions to reduce energy costs through hydropower by extending its existing hydropower authority.

Arguments in Support

The Northern California Water Association (NCWA), sponsor of this bill, states, "AB 59 would remove a January 1, 2026 sunset date from Reclamation District (RD) 108's existing hydropower authorization that was created by AB 568 (Dodd, 2015). AB 59 would continue to authorize RD 108 to 'construct, maintain, and operate a plan 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' among other specified authorities. (Water Code Section 509096(a).)…

"The hydropower authorization presents opportunities for RD 108 to develop power through hydroelectric generation, including potentially through small hydropower facilities in the District's various canals. AB 59 would allow RD 108 to reduce its energy costs in an affordable and environmentally responsible way."

Arguments in Opposition

None on file.

FISCAL COMMENTS

None.

VOTES

ASM LOCAL GOVERNMENT: 8-0-2

YES: Carrillo, Hoover, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward

ABS, ABST OR NV: Ta, Wilson

UPDATED

VERSION: December 2, 2024

CONSULTANT: Julia Mouat / L. GOV. / (916) 319-3958 FN: 0000189

Date of Hearing: March 26, 2025

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

ABPCA Bill Id:AB 59 (

Author:Aguiar-Curry) – As Introduced Ver:December 2, 2024

SUBJECT: Reclamation District No. 108: hydroelectric power.

SUMMARY: Makes permanent the authority of Reclamation District No. 108 (RD 108) to generate and sell hydroelectric power. Specifically, this bill:

1. Removes the January 1, 2026 sunset date on the authority of RD 108 to do the following:
   1. 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;
   2. Finance construction of the plant and transmission lines by the issuance of time warrants, which shall be retired by proceeds from the sale of electricity, as specified;
   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;
   4. Sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity. The power generated shall not be offered for sale directly by the district to customers other than a public utility or public agency.
2. Makes conforming changes.

EXISTING LAW:

1. Establishes powers and duties for reclamation districts. (Water Code Section 50000-53901)
2. Authorizes RD 108 and Reclamation District No. 1004 (RD 1004) to 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. (Water Code Section 50906)
3. Authorizes RD 108 and RD 1004 to finance construction of the plant and transmission lines by the issuance of time warrants, and allows the reclamation district’s 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 RD 108 and RD 1004 to utilize proceeds from the sale of electricity 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. Authorizes RD 108 and RD 1004 to 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. (Water Code Section 50906)
6. Authorizes RD 108 and RD 1004 to sell the power generated to a public utility or public agency engaged in the distribution, use, or sale of electricity. (Water Code Section 50906)
7. Prohibits RD 108 and RD 1004 from selling the power directly to customers, other than to a public utility or public agency. (Water Code Section 50906)
8. Specifies that Water Code Section 50906, as referenced in comments 2-7 above, applies to RD 1004 indefinitely and to RD 108 until January 1, 2026.

FISCAL EFFECT: None

COMMENTS:

1. Background. Reclamation Districts (RDs) are special 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. RDs provide a means to finance the reclamation of the land for future use, such as creating facilities for land irrigation or sewage and waste removal. RDs are formed by a petition of at least 50% of the owners of the land in the area. The petition is then presented to the county which notifies all affected property owners, holds public hearings to consider the petition and, if it finds that the statements in the petition are correct, makes an order approving the petition.

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 the authority to generate and sell hydroelectric power to RD 1004 in 1986 [AB 1048 (Costa), Chapter 21, Statutes of 1986]. In 2015, this authority was granted to RD 108 with a sunset date of January 1, 2021 [AB 568 (Dodd), Chapter 134, Statutes of 2015], which was later extended to January 1, 2026 [SB 1473 (Committee on Governance and Finance), Chapter 371, Statutes of 2020].

1. Bill Summary and Author’s Statement. This bill eliminates the sunset date of January 1, 2026 that applies to RD 108’s authority to generate and sell hydroelectric power. This bill is sponsored by the Northern California Water Association.

According to the author, “Reclamation District 108 (RD 108) delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 is responsible for water supply, levee maintenance, drainage, and flood control within its boundaries and has high energy costs due to its pumping facilities, including for projects that reduce water use by recycling water within the district. This bill allows RD 108 to continue to explore affordable solutions to reduce energy costs through hydropower by extending its existing hydropower authority.”

1. RD 108. RD 108 was formed in 1870 under the Reclamation District Law of 1868. It is located along the western edge of the Sacramento River. According to the Colusa Local Agency Formation Commission's (LAFCo) Municipal Service Review in 2018, RD 108 delivers water from the Sacramento River to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. RD 108 works in coordination with the Sacramento River Westside Levee District and the Knights Landing Ridge Drainage District to maintain over 90 miles of levees.
2. Hydroelectric Authority of RD 108. As a special district, RD 108 requires the approval of the Colusa LAFCo in order to activate these hydroelectric powers, which are outlined in Section 50906 of the Water Code. According to the Colusa LAFCo, “In 2019, the Commission approved hydroelectric power generation services for RD 108 under Resolution No. 2019-0003. It appears that this approval process was not completed, and RD 108 may need to make a new application to LAFCo for the exercise of new or different functions or classes of services (latent powers) pursuant to GOV § 56824.10 - 56824.14 to authorize hydroelectric power generation services.”

RD 108 has not thus far exercised its authority to generate and sell hydroelectric power. According to the Northern California Water Association, sponsor of this bill, “RD 108 has completed an evaluation of the total expected capacity of future hydropower projects. They have identified opportunities through hydropower and floating solar power assessments considering multiple types of power generating equipment and has evaluated the total capacity of RD 108’s infrastructure to be 20 megawatts. Of that 20 MW of available potential capacity, 19.8 MW is hydropower and 0.2 MW is floating solar power. They have also received suggestions through the evaluation on how to phase the development of the 20 MW into smaller phases.”

1. Policy Consideration. Given that RD 108 is not currently utilizing its authority to generate and sell hydroelectric power, the Committee may wish to consider whether RD 108 should provide information on their use of this authority in the future.
2. Committee Amendments. In order to address the policy consideration raised above, the Committee may wish to consider the following amendments:

50906. (e) Reclamation District No. 108 shall submit to the Assembly and Senate Committees on Local Government, between January 1, 2035 and January 1, 2036, a report containing the following information:

(1) Whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority.

(2) Whether the district is utilizing its hydroelectric authority or has plans to use its hydroelectric authority. If the district is using its hydroelectric power or has plans to use its hydroelectric power, the report shall include the following information:

(A) The status of the project.

(B) Financial statements related to the selling of hydroelectric power.

1. Previous Legislation. SB 1473 (Committee on Governance and Finance), Chapter 371, Statutes of 2020, enacted the Local Government Omnibus Act of 2020 and, among other changes to existing laws governing the powers and duties of local agencies, extended the hydroelectric power authorization for RD 108 to January 1, 2026.

AB 568 (Dodd), Chapter 134, Statutes of 2015, granted RD 108 the authority to construct and operate a hydroelectric powerplant and transmission lines until January 1, 2021.

AB 1048 (Costa), Chapter 31, Statutes of 1986, granted authority to RD 1004 to generate and sell hydroelectric power.

1. Arguments in Support. The Northern California Water Association (NCWA), sponsor of this bill, states, “AB 59 would remove a January 1, 2026 sunset date from Reclamation District (RD) 108’s existing hydropower authorization that was created by AB 568 (Dodd, 2015). AB 59 would continue to authorize RD 108 to ‘construct, maintain, and operate a plan 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’ among other specified authorities. (Water Code § 509096(a).)…

“The hydropower authorization presents opportunities for RD 108 to develop power through hydroelectric generation, including potentially through small hydropower facilities in the District’s various canals. AB 59 would allow RD 108 to reduce its energy costs in an affordable and environmentally responsible way.”

1. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Northern California Water Association [SPONSOR]

County of Yolo

Colusa County

California Central Valley Flood Control Association

Opposition

None on file

Analysis Prepared by: Julia Mouat / L. GOV. / (916) 319-3958