BILL ANALYSIS Ó
AB 568
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Date of Hearing: May 11, 2015
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Anthony Rendon, Chair
AB 568
(Dodd) - As Introduced 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:
a)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.
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a)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.
b)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.
c)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.
d)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
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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."
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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
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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
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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.
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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.
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(e) This section shall become operative on January 1, 2021.
1)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
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California Sportfishing
Foothill Conservancy
Friends of the River
Sierra Club California
Analysis Prepared by:Edmond Cheung / U. & C. / (916) 319-2083