BILL ANALYSIS                                                                                                                                                                                                    Ó




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 26                       HEARING:  8/20/14
          AUTHOR:  Correa                       FISCAL:  Yes
          VERSION:  6/17/14                     TAX LEVY:  No
          CONSULTANT:  Ewing                    

                         PURSUANT TO SENATE RULE 29.10

                        ORANGE COUNTY WATER DISTRICT ACT
          

          Requires the Orange County Water District to provide notice  
          to an affected city, and hold a public meeting in that  
          city, prior to developing property within city boundaries.


                           Background and Existing Law  

          The Legislature created the Orange County Water District in  
          1933 to meet the water and related needs of the residents  
          of Orange County (SB 1201, Edwards, 1933).  State law  
          authorizes the district to acquire, hold, use and dispose  
          of real property for purposes of the district, as  
          determined by the district's board of directors.  

          The Orange County Water District recently elected to enter  
          into an exploratory agreement with a private entity on the  
          potential to develop a thermal electricity generation plant  
          on a site owned by the District that is located within the  
          City of Anaheim.

          Generally, special districts must comply with the building  
          and zoning ordinances of the cities or counties in which  
          the facilities they construct are located (AB 56, Biddick,  
          1959).  However, the state has established exceptions for  
          the development of water and electrical facilities.  In  
          general, cities and counties cannot impede the development  
          of those facilities through their zoning and building  
          ordinances to ensure reliable water and energy systems. 

          For large thermal power plants, those that can produce 50  
          megawatts or more of electricity, the California Energy  
          Commission has the exclusive power to certify all sites and  
          related facilities in the state (SB 1277, Smith, 1976).   
          The Commission must consider local zoning and building  




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          ordinances during its decision-making process, but can  
          override those ordinances if the Commission determines that  
          the facility is required for public convenience and  
          necessity, and that there are not more prudent and feasible  
          means of achieving public convenience and necessity (SB  
          110, Peace, 1999).

          Similarly, AB 56 (Biddick, Chapter 2110, 1959) provided an  
          exemption from compliance with local building and zoning  
          ordinances for special districts that develop water or  
          electricity facilities.  Subsequent legislation sustained  
          the exemption from local building ordinances for the  
          construction of facilities for the production, generation,  
          storage, treatment or transmission of water, wastewater, or  
          electricity by a special district, and provided limited  
          exemptions from zoning ordinances, as follows (SB 1711,  
          Costa, 2002):

                 Local zoning ordinances do not apply to the  
               location or construction of facilities for the  
               production, generation, storage, treatment, or  
               transmission of water, or for the production of  
               electricity that are subject to the Municipal Utility  
               District Act, or electrical substations in an  
               electrical transmission system that receives  
               electricity at less than 100,000 volts.

                 Local zoning ordinances of a county or city shall  
               apply to the location or construction of facilities  
               for the storage or transmission of electrical energy  
               by a special district if the zoning ordinance makes  
               provisions for those facilities.  

          A special district may, upon a 4/5 vote of its board, at a  
          noticed public hearing, render a city or county zoning  
          ordinance inapplicable to a proposed use of a property if  
          that special district determines that there is no feasible  
          alternative and the use of the property is for facilities  
          related to storage or transmission of water or electrical  
          energy, including structures such as warehouses,  
          administrative buildings, and automotive storage and repair  
          buildings. 

          The special district must notify the city or county whose  
          zoning ordinance has been rendered inapplicable, as well as  
          affected property owners.  The affected city or county may  





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          seek judicial review of the decision to render the zoning  
          ordinance inapplicable. 

          Anaheim officials are concerned that current law does not  
          provide residents with sufficient opportunities to  
          participate in the decision-making process for the siting  
          of electric generation facilities on properties owned by  
          the Orange County Water District.


                                   Proposed Law  

          Senate Bill 26 clarifies that provisions of existing law  
          related to the application and exemptions from local zoning  
          and building ordinances, and notice requirements, apply to  
          the Orange County Water District.  

          SB 26 requires the Orange County Water District to provide  
          notice of intent to develop real property owned by the  
          district, which is within the boundaries of a city, to the  
          city planning agency, at least 30 days prior any action to  
          approve the development. 

          SB 26 requires the Orange County Water District to hold a  
          public meeting within the boundaries of a city if the  
          district proposes to locate, within that city, a facility  
          for the production, generation, storage, treatment or  
          transmission of water, wastewater, or electricity, or  
          related structures.

          SB 26 expresses the Legislature's intent to:
                 Clarify that existing law with regard to the  
               application of zoning and building ordinances adopted  
               by counties and cities applies to any property owned  
               by the Orange County Water District.
                 Foster collaboration between the district and the  
               cities in which the district owns property. 
                 Provide increased transparency to the public in  
               land use decisions made by the district.


                               State Revenue Impact
           
          No estimate. 







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                                     Comments  

          1.   Purpose of the bill  .  In 2013, the Orange County Water  
          District sought to develop an electricity generation plant  
          within the City of Anaheim, in an area of the city that  
          would be inconsistent with the city's land use plans.   
          Existing law includes provisions that address land use  
          conflicts when a special district intends to develop  
          property within the boundaries of a city or county.  Senate  
          Bill 26 includes language in the Orange County Water  
          District Act to clarify that existing statutory provisions  
          apply to the land use decisions of the water district and  
          strengthens the public disclosure and transparency  
          requirements in these instances. 

          2.   Special legislation  .  The California Constitution  
          prohibits special legislation when a general law can apply  
          (Article IV, Sec. 16).  SB 26 contains findings and  
          declarations explaining the need for a special statue for  
          the Orange County Water District.  

           3.   Gut and amend  .  As introduced and passed by the Senate,  
          SB 26 contained provisions relating to the Political Reform  
          Act.  Amendments taken in the Assembly deleted the initial  
          contents of SB 26 and inserted the current language  
          relating to the Orange County Water District.  Because this  
          topic was never heard in the Senate, the Senate Rules  
          Committee referred the amended bill under Senate Rule 29.10  
          to the Senate Governance and Finance Committee for a  
          hearing on the Assembly's amendments.  At its August 20  
          hearing, the Committee has two choices:
                 Hold the bill
                 Return the bill to the Senate Floor.


                                 Assembly Actions  

          Assembly Local Government Committee:9-0
          Assembly Appropriations Committee: 17-0
          Assembly Floor:                78-0


                         Support and Opposition  (8/18/14)

           Support  :  City of Anaheim.  






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           Opposition  : Unknown.