BILL ANALYSIS Ó
AB 568
Page 1
Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 568
(Dodd) - As Introduced 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:
a) Construct, maintain and operate a plant and transmission
lines for the generation of hydroelectric power;
b) Sell the power generated to a public utility or public
agency engaged in the distribution, use, or sale of
electricity; and,
c) 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.
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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
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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.
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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
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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.
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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