BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        AB 568|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                    THIRD READING

          Bill No:  AB 568
          Author:   Dodd (D)
          Amended:  5/14/15 in Assembly
          Vote:     21  

           SENATE ENERGY, U. & C. COMMITTEE:  10-0, 6/16/15
           AYES:  Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,  
            McGuire, Morrell, Wolk
           NO VOTE RECORDED:  Pavley

           ASSEMBLY FLOOR:  75-0, 5/22/15 - See last page for vote

           SUBJECT:   Reclamation District No. 108:  hydroelectric power

          SOURCE:    Northern California Water Association

          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.  


          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 seq.)


                                                                     AB 568  
                                                                    Page  2

          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  
            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  

          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.



                                                                     AB 568  
                                                                    Page  3

          Reclamation districts.  Reclamation districts provide flood  
          protection to the Central Valley.  Statute 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.

          RD 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 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.  RD 108 has constructed  
          a 386 kilowatt solar electricity generating facility.  In  
          addition, RD 108 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, RD 108 expects to benefit from  
          generation of hydropower following development of the proposed  
          Sites Reservoir north of the Delta.  However, RD 108 does not  
          have the authority to construct or operate such a hydropower  
          facility or to transmit or sell the electricity its produces.   
          AB 568 grants 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 facilitates development of the reservoir.  These  
          groups contend the reservoir would harm the Delta ecosystem  
          while providing few, if any, resource management benefits.


                                                                     AB 568  
                                                                    Page  4

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No

          SUPPORT:   (Verified6/16/15)

          Northern California Water Association (source)
          California Municipal Utilities Association
          County of Colusa
          County of Yolo
          Water Resources Association of Yolo County

          OPPOSITION:   (Verified6/16/15)

          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  
          facilitates development of the Sites Reservoir, which they  
          contend would harm the Delta ecosystem while providing few, if  
          any, resource management benefits.

          ASSEMBLY FLOOR:  75-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  


                                                                     AB 568  
                                                                    Page  5

            Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams,  
            Wood, Atkins
          NO VOTE RECORDED:  Alejo, O'Donnell, Olsen, Waldron, Weber

          Prepared by:Jay Dickenson / E., U., & C. / (916) 651-4107
          6/18/15 18:40:32

                                   ****  END  ****