Water Code section 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.(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.
Source:
Section 50906, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=WAT§ionNum=50906. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
