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. 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 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 §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 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 ****