BILL ANALYSIS Ó
AB 568
Page 1
ASSEMBLY THIRD READING
AB
568 (Dodd)
As Amended May 14, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+---------------------+---------------------|
|Local |9-0 |Maienschein, | |
|Government | |Gonzalez, Alejo, | |
| | |Chiu, Cooley, | |
| | |Gordon, Holden, | |
| | |Linder, Waldron | |
| | | | |
|----------------+------+---------------------+---------------------|
|Utilities |15-0 |Rendon, Patterson, | |
| | |Achadjian, Bonilla, | |
| | |Burke, Dahle, | |
| | |Eggman, Cristina | |
| | |Garcia, Hadley, | |
| | |Roger Hernández, | |
| | |Obernolte, Quirk, | |
| | |Santiago, Ting, | |
| | |Williams | |
| | | | |
| | | | |
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AB 568
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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:
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.
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.
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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.
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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
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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.
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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
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