AB59 - Reclamation District No. 108: hydroelectric power.

Assembly Bill No. 59 CHAPTER 141 An act to amend and repeal Section 50906 of the Water Code, relating to reclamation districts. [ Approved by Governor October 01, 2025. Filed with Secretary of State October 01, 2025. ] LEGISLATIVE COUNSEL'S DIGEST AB 59, Aguiar-Curry. Reclamation District No. 108: hydroelectric power. Existing law authorizes the formation of reclamation districts by owners of swamp and overflowed lands, salt-marsh, or tidelands, or other lands subject to flood or overflow, and by owners of land already reclaimed, or in progress of reclamation, and not included in a reclamation district. Existing law authorizes Reclamation District No. 1004, in conjunction with the County of Colusa, to construct, maintain, and operate a plant, transmission lines, and other necessary or appropriate facilities for the generation of hydroelectric power, as prescribed. Existing law requires proceeds from the sale of electricity to be used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. Existing law authorizes Reclamation District No. 108 to exercise this hydroelectric power authority until January 1, 2026. This bill would authorize Reclamation District No. 108 to continue to exercise the above-described hydroelectric power authority after January 1, 2026. The bill would require Reclamation District No. 108 to submit a report to the Assembly and Senate Committees on Local Government on or before January 1, 2031, and between January 1, 2035, and January 1, 2036, containing certain information, including, among other things, whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority. The bill would also require the report to include the reasons the district is currently not exercising its hydroelectric authority and an estimated date by which the district expects to begin exercising that authority. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 50906 of the Water Code, as amended by Section 30 of Chapter 371 of the Statutes of 2020, is amended to read: 50906. (a) A reclamation district specified in subdivision (d) may construct, maintain, and operate a plant for the generation of hydroelectric power, together with transmission lines for the conveyance thereof and with other facilities that may be necessary or appropriate for the construction, maintenance, and operation of that plant. Construction of the plant and transmission lines may be financed by the issuance of time warrants pursuant to Article 3 (commencing with Section 53040) of Chapter 1 of Part 9 to pay the cost of construction of the plant, transmission lines, and related facilities, except that the board may, by resolution, provide for the payment of those time warrants solely from the proceeds derived from the operation of the hydroelectric powerplant, in lieu of the assessment described in Section 53040, and may, in that event, pledge the plant, transmission lines, and related facilities and the revenues from the operation of the hydroelectric powerplant as the sole security for the payment of the time warrants. (b) The hydroelectric powerplant, transmission lines, and related facilities constructed pursuant to this section may be leased for operation to, or the power generated may be sold to, a public utility or public agency engaged in the distribution, use, or sale of electricity, but shall not be offered for sale directly by the district to customers other than a public utility or public agency. (c) Proceeds from the sale of electricity shall be used to retire any time warrants issued for construction of the facilities and otherwise for the powers and purposes for which the district was formed. (d) This section applies only to the following reclamation districts: (1) Reclamation District No. 1004 acting in conjunction with the County of Colusa. (2) Reclamation District No. 108. (e) Reclamation District No. 108 shall submit to the Assembly and Senate Committees on Local Government, on or before January 1, 2031, and between January 1, 2035, and January 1, 2036, a report containing the following information: (1) Whether the district has obtained permission from the Colusa Local Agency Formation Commission to enact its hydroelectric authority. (2) (A) Whether the district is using its hydroelectric authority or has plans to use its hydroelectric authority. (B) If the district is using its hydroelectric authority or has plans to use its hydroelectric authority, the report shall include the following information: (i) The status of the project. (ii) Financial statements related to the selling of hydroelectric power. (iii) An estimated date for the use of its hydroelectric authority. (3) If the district is not currently using its hydroelectric authority, regardless of whether the district has plans to use its hydroelectric authority, the reasons for not using that authority. SEC. 2. Section 50906 of the Water Code, as amended by Section 31 of Chapter 371 of the Statutes of 2020, is repealed. SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.