31149.1-31149.7

WATER CODE
SECTION 31149.1-31149.7




31149.1.  A district may, by using any water or water supplies
furnished to the district or used by the district, construct,
maintain, and operate one or more plants for the generation of
hydroelectric power from the water, and the transmission lines for
the conveyance thereof.
   "Plant for the generation of hydroelectric power" includes water
driven generators and appurtenant facilities for the generation of
electric power and structures for the protection of the generators on
appurtenant facilities.
   The plant or plants so constructed shall be operated in a manner
which is compatible with the proper operation of the district's water
storage, transmission, and distribution system. Construction of the
plant or plants and transmission lines may be financed by the
issuance of general obligation bonds or revenue bonds or any other
method of financing district works authorized in this division.



31149.2.  The hydroelectric power plant or plants and transmission
lines constructed pursuant to this article may be leased for
operation by, or the power generated may be sold to, a public utility
or public agency engaged in the distribution, use, or sale of
electricity. The power generated may be used by a district for its
own purposes, or for the production or transmission of water, but
shall not be offered for sale directly by a district to customers
other than such a public utility or public agency. The power to
acquire works and facilities shall not include, and nothing in this
article shall be interpreted to allow, the acquisition of property
already employed in the generation of hydroelectric energy for public
utility purposes, except by mutual agreement between the district
and the owner of that property.



31149.3.  (a) The North Marin County Water District may construct,
maintain, and operate one or more plants for the generation of power
from wind or solar radiation, and the transmission lines for the
conveyance thereof, and in connection therewith shall have all the
powers set forth in this article for the generation of hydroelectric
power.
   (b) Notwithstanding Section 31149.1, the North Marin County Water
District may use any water for the generation of hydroelectric power
subject, however, to any limitations or provisions contained in
Section 106.7, Part 2 (commencing with Section 1200) of Division 2,
or any other provisions of law. The hydroelectric power shall be
developed so as to meet the direct and indirect energy requirements
of the district for the proper operation of the district's water
storage, transmission, and distribution system.
   (c) The authority contained in subdivision (b), in the case of
sole projects of the North Marin County Water District, may only be
exercised by the district if the project is approved by the board of
supervisors of the county in which the project is located or, in the
case of joint projects, may only be exercised by the district if the
project is approved by contract with the public agency acting as lead
agency on the project.



31149.4.  Notwithstanding Section 31149.1 or any other provision of
law, the Sierra Lakes County Water District may construct works for
generating hydroelectric power, at Lake Dulzura and Lake Serena and
on Serena Creek in Placer County, and may operate and maintain the
works, or contract for that operation or maintenance.
   Construction of the works authorized by this section may be
financed by the issuance of general obligation bonds or revenue bonds
or any other method of financing authorized by law for public
agencies. The power generated may be used by the district for its own
purposes, but shall not be offered for sale directly by the district
to customers other than a public utility or public agency engaged in
the distribution, use, or sale of electricity.
   Any of the powers may be exercised jointly with other public
agencies authorized to exercise those powers. The power to acquire
works and facilities does not include, and nothing in this section
authorizes, the acquisition of property already employed in the
generation of hydroelectric energy for public utility purposes,
except by mutual agreement between the district and the owner of that
property. The authority to construct, maintain, and operate works
pursuant to this section applies only to works constructed and
maintained after January 1, 1984.



31149.5.  (a) The Marina County Water District may finance,
construct, maintain, operate, lease, use, and sell power to any
public utility or public agency from one or more plants within the
district's boundaries for the cogeneration of electric power in
conjunction with facilities for removing dissolved solids and
impurities from seawater, and may finance, construct, maintain,
operate, and lease the transmission lines for the conveyance of the
power.
   (b) Prior to January 1, 1996, the district may not exercise the
authority set forth in subdivision (a) to provide water that is a
substitute for water from the Monterey County Water Resources Agency'
s seawater intrusion project.



31149.7.  (a) A district may provide, generate, and deliver electric
power, and may construct, operate, and maintain any and all works,
facilities, improvements, and property, or portion thereof, necessary
or convenient for that generation and delivery.
   (b) The electric powerplant or plants and transmission lines
constructed pursuant to this section may be leased for operation. The
power generated shall be used by a district for its own purposes. A
district may sell surplus power to a public or private entity that is
engaged in the distribution or sale of electricity. For purposes of
this section, "for its own purposes" means a district performing only
functions in its capacity as a water district, including, but not be
limited to, any of the following:
   (1) Pumping operations.
   (2) Water treatment operations.
   (3) Barrier intrusion operations.
   (4) Desalination operations.
   (c) Nothing in this section grants to a district the authority to
provide, sell, or deliver electric power at retail.
   (d) A district may not acquire property employed in the generation
or delivery of electric power for public or private utility
purposes, except by mutual agreement between the district and the
owner of that property.
   (e) (1) It is the intent of the Legislature, that each district
that has purchased electricity from an electrical corporation on or
after February 1, 2001, regardless of whether the district thereafter
generates its own electricity, bear a pro rata share of the
Department of Water Resources' electricity purchase costs, that are
recoverable from electrical corporation customers in
commission-approved rates. It is the further intent of the
Legislature to prevent any shifting of recoverable costs from
districts that generate their own electricity pursuant to this
section, to electrical corporation bundled customers.
   (2) To the extent that any shifting of recoverable costs would
occur, in the determination of the commission, those costs shall be
recovered from districts that generate their own electricity,
pursuant to this section.
   (3) The Legislature finds and declares that the revisions of this
subdivision are consistent with the requirements of Chapter 4 of the
Statutes of 2001, First Extraordinary Session, and do not constitute
a change in, but are declaratory of existing law.
   (f) A district that generates its own electricity pursuant to this
section shall be responsible for paying the following:
   (1) A charge equivalent to the charges that would otherwise be
imposed on the district by the commission to recover bond related
costs pursuant to any agreement between the commission and the
Department of Water Resources pursuant to Section 80110 of the Water
Code, which charges shall be payable until all obligations of the
Department of Water Resources pursuant to Division 27 (commencing
with Section 80000) of the Water Code are fully paid or otherwise
discharged. All bond charges are the property of the Department of
Water Resources.
   (2) If a district generates new offsite power, it shall be
responsible for the additional costs of the Department of Water
Resources, equal to the share of the Department of Water Resources'
estimated net unavoidable electricity purchase contract costs
attributable to the district as determined by the commission, for the
period commencing with the district's initial generation of its
offsite electricity, through the expiration of all then existing
electricity purchase contracts entered into by the Department of
Water Resources.
   (g) A district generating its own electricity pursuant to this
section shall reimburse the electrical corporation that previously
served the district for all of the following:
   (1) The electrical corporation's unrecovered past undercollections
for electricity purchases, including any financing costs,
attributable to that district, that the commission lawfully
determines may be recovered in rates.
   (2) Any additional costs of the electrical corporation recoverable
in commission approved rates, equal to the share of the electrical
corporation's estimated net unavoidable electricity purchase contract
costs attributable to the district, as determined by the commission,
for the period commencing with the district's initial generation of
electricity pursuant to this section, through the expiration of all
then existing electricity purchase contracts entered into by the
electrical corporation.
   (h) (1) Any charges imposed pursuant to subdivision (f) shall be
the property of the Department of Water Resources. Any charges
imposed pursuant to subdivision (g) shall be the property of the
particular electrical corporation. The commission shall establish
sufficient mechanisms, including agreements with, or orders with
respect to, electrical corporations as are necessary to ensure that
charges payable pursuant to this section shall be promptly remitted
to the party entitled to the payment.
   (2) Charges imposed pursuant to this section shall be
nonbypassable.
   (i) Prior to implementing this section, the commission shall
submit a report certifying its satisfaction of the provisions of this
section to the Senate Energy, Utilities and Communications
Committee, or its successor, and the Assembly Committee on Utilities
and Commerce, or its successor.