AB 568
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ASSEMBLY THIRD READING
AB 568 (Dodd)
As Amended May 14, 2015
Majority vote
Committee
Local Government
Votes
9-0
Ayes
Maienschein, 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
Noes
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.
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.
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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.
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 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
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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. 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