BILL ANALYSIS Ó SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS Senator Ben Hueso, Chair 2015 - 2016 Regular Bill No: AB 568 Hearing Date: 6/16/2015 ----------------------------------------------------------------- |Author: |Dodd | |-----------+-----------------------------------------------------| |Version: |5/14/2015 As amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Jay Dickenson | | | | ----------------------------------------------------------------- SUBJECT: Reclamation District No. 108: hydroelectric power DIGEST: This bill allows Reclamation District No. 108 (RD 108), on the western edge of the Sacramento River, to construct and operate a hydroelectric powerplant and transmission lines. ANALYSIS: Existing law: 1)Authorizes the formation of reclamation districts for the reclamation of any land within any city, which land is subject in any manner, to overflow or incursions from the tide or inland waters of the state and proscribes the powers of such districts. (Water Code §50110 et sec.) 2)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 §50906) 3)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 §50906) 4)Allows the construction of the plant and transmission lines to be financed by the issuance of time warrants, and allows the AB 568 (Dodd) Page 2 of ? 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 §50906) 5)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 §50906) 6)Prohibits RD 1004 from selling the power directly to the customer, other than to a public utility or public agency. (Water Code §50906) This bill: 1)Provides RD 108 all the powers and authorities related to the hydroelectric power currently enjoyed by RD 1004, as described above under "Existing law." 2)Repeals the provisions described above, for RD 108 only, as of January 1, 2021. Background Reclamation districts. Reclamation districts provide flood protection to the Central Valley. Stature provides for the formation, governance and powers of various types of special districts, including reclamation districts. Statute provides several types of special districts with the authority to operate hydroelectric power generation facilities. However, statute does not provide reclamation districts with this power, generally. One exception is RD 1004 in Colusa County, which statute, in 1984, authorized to construct, maintain, and operate a plant for the generation of hydroelectric power. Reclamation District No.108. RD 108, as described on its website, is located along the western edge of the Sacramento River and delivers water to nearly 48,000 acres of farmland within southern Colusa County and northern Yolo County. The AB 568 (Dodd) Page 3 of ? district was formed in 1870 to build levees and reclaim flooded land. According to the author, RD 108 uses a significant amount of energy operating its pumping facilities. The district has constructed a 386 kilowatt solar electricity generating facility. In addition, the district has joined 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. As a member of the JPA, the reclamation district expects to benefit from generation of hydropower following development of the proposed Sites Reservoir north of the Delta. However, the district does not have the authority to construct or operate such a hydropower facility or to transmit or sell the electricity its produces. AB 568 would grant RD 108 such authority. Not without controversy. As mentioned above, statute allows many special districts that manage water to build and operate hydroelectric facilities. It is unclear why reclamation districts are not, generally, provided the same authority. The proposal to allow RD 108 to construct and operate a hydroelectric facility is not particularly controversial. However, development of the Sites Reservoir is controversial. Several conservation and environmental organizations oppose this bill because it would facilitate development of the reservoir. These groups contend the reservoir would harm the Delta ecosystem while providing few, if any, resource management benefits. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No ASSEMBLY VOTES: Assembly Floor (75-0) Assembly Utilities and Commerce Committee(15-0) Assembly Local Government Committee(9-0) SUPPORT: Northern California Water Association (Source) California Municipal Utilities Association AB 568 (Dodd) Page 4 of ? Colusa County Water Resources Association of Yolo County Yolo County OPPOSITION: American Whitewater California Outdoors California Sportfishing Protection Alliance Foothill Conservancy Friends of the River Sierra Club California ARGUMENTS IN SUPPORT: Proponents claim this bill will allow RD 108 to reduce its energy costs in an environmentally responsible way. ARGUMENTS IN OPPOSITION: Opponents contend this bill would facilitate development of the Sites Reservoir, which they contend would harm the Delta ecosystem while providing few, if any, resource management benefits. -- END --