BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 929
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          ASSEMBLY THIRD READING
          AB 929 (Blakeslee)
          As Introduced  February 26, 2009
          Majority vote 

           NATURAL RESOURCES   9-0         AGRICULTURE         8-0         
           
           ----------------------------------------------------------------- 
          |Ayes:|Skinner, Gilmore,         |Ayes:|Galgiani, Tom Berryhill,  |
          |     |Brownley, Chesbro, De     |     |Conway, Fuller, Ma,       |
          |     |Leon, Hill, Huffman,      |     |Mendoza, Yamada, Bonnie   |
          |     |Knight, Logue             |     |Lowenthal                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      17-0                                        
           
           ---------------------------------------------------------------- 
          |Ayes:|De Leon, Nielsen, Ammiano,       |  |                     |
          |     |Charles Calderon, Davis, Duvall, |  |                     |
          |     |Fuentes, Hall, Harkey, Miller,   |  |                     |
          |     |John A. Perez, Price, Skinner,   |  |                     |
          |     |Solorio,                         |  |                     |
          |     |Audra Strickland, Torlakson,     |  |                     |
          |     |Krekorian                        |  |                     |
          |-----+---------------------------------+--+---------------------|
          |     |                                 |  |                     |
           ---------------------------------------------------------------- 
           SUMMARY  :  Authorizes the Department of Conservation (DOC) to  
          make grants for the acquisition of an agricultural conservation  
          easement in order to protect non-agricultural values such as  
          flood protection, wildlife habitat, and open space.   
          Specifically,  this bill:

           1)Authorizes the DOC to make a grant for the acquisition of an  
            agricultural conservation easement from a source other than  
            the California Farmland Conservancy Program Fund (Fund) if the  
            easement meets all of the following criteria:

             a)   The primary purpose for which the easement is being  
               sought is consistent with continuing agricultural use of  
               the easement property;

             b)   The easement does not, and will not, substantially  








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               prevent agricultural use of the easement property;

             c)   Any restrictions on the current or reasonably  
               foreseeable agricultural use of the easement property would  
               only be imposed to restrict those areas of the easement  
               property that are not in cultivation;

             d)   If the easement property has characteristics or  
               qualities that meet the original purpose of the funding  
               source as cultivated land, the easement property may  
               continue to be commercially cultivated with the minimum  
               restrictions necessary to meet with original funding source  
               requirements;

             e)   The nonagricultural qualities that will be protected by  
               the easement are inherent to the easement property; and,

             f)   The easement will require that a subsequent easement or  
               deed restriction placed on the easement property will be  
               subordinate to the agricultural conservation easement and  
               require approval of DOC.

           EXISTING LAW  :  Enacts the California Farmland Conservancy  
          Program (CFCP) Act (Public Resources Code section 10200, et  
          seq.).  The CFCP, in part:

          1)Authorizes the DOC to issue grants to local governments,  
            districts, and nonprofit organizations to acquire agricultural  
            conservation easements and fee title interests to preserve  
            farmland.  These perpetual easements keep agricultural land in  
            private ownership while the owners voluntarily agree to limit  
            use of the land to agricultural production only.

          2)Requires applicants for an easement or acquisition grant to  
            meet three criteria: 

             a)   The parcel proposed for conservation is expected to  
               continue to be used for, and is large enough to sustain,  
               commercial agricultural production;

             b)   The applicable city or county has a general plan that  
               demonstrates a long-term commitment to agricultural land  
               conservation; and,









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             c)   Without conservation, the land proposed for protection  
               is likely to be converted to nonagricultural use in the  
               foreseeable future.

          3)Requires the DOC to evaluate a grant proposal based on  
            selection criteria such as:

             a)   The quality of the agricultural land, based on land  
               capability, farmland mapping and monitoring program  
               definitions, productivity indices, and other soil, climate,  
               and vegetative factors;

             b)   Whether the proposal meets multiple natural resource  
               conservation objectives, including, but not limited to,  
               wetland protection, wildlife habitat conservation, and  
               scenic open-space preservation;

             c)   Whether the city or county demonstrates a long-term  
               commitment to agricultural land conservation as  
               demonstrated by, among other things, the policies of its  
               general plan, of active local agricultural land  
               conservancies or trusts, and an effective right-to-farm  
               ordinance; and,

             d)   The conservation of the land supports long-term private  
               stewardship and continued agricultural production in the  
               region.

          4)Prohibits the DOC from making a grant to acquire agricultural  
            conservation easements which restrict husbandry practices  
            defined broadly as "commercial agricultural activities," as  
            further specified.

          5)Creates the Fund, monies of which are appropriated by the  
            Legislature in the annual Budget Act for the purposes of the  
            CFCP.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, potentially substantial cost pressures, in the  
          millions of dollars annually, primarily to proceeds of bonds  
          authorized by Proposition 1E approved by voters at the November  
          2006 statewide election and to any future funding made available  
          for the uses described in this bill.









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           COMMENTS  :  The Legislature established the CFCP in 1996 to  
          encourage the permanent conservation of productive agricultural  
          lands.  In doing so, the Legislature recognized the important  
          contribution that farmland makes to the state, national and  
          world food supply, as well as the additional benefits that  
          farmland provides in the form of wildlife habitat conservation,  
          wetland protection, and scenic open space preservation.   
          Unfortunately, much of the land area needed to support the  
          state's growing population increase continues to be provided by  
          conversion of the state's farmland, particular in urbanizing  
          areas that are situated within historically agricultural  
          landscapes.  More than 50,000 acres of farmland are converted to  
          urban uses each year, and thousands more are transformed into  
          low density, unincorporated rural developments.

          The CFCP supports local efforts to conserve farmland by  
          providing grant funds (currently, from Propositions 12 and 40)  
          for the purchase of agricultural conservation easements.   
          Agricultural conservation easements are deed restrictions that  
          ensure that land can never be used for purposes that will  
          interfere with farming, while leaving farmers free to make  
          agricultural management decisions on their land.  Grant funds  
          are made available through a competitive process to qualified  
          applicants.  To date, DOC has provided grants for the purchase  
          of more than 100 agricultural conservation easements on more  
          than 33,000 acres of farmland in the state.

          Existing law prohibits the DOC from making CFCP grants to  
          acquire easements which restrict agricultural practices in any  
          way.  However, some funding sources (e.g., Propositions 84 and  
          1E) not currently available to the DOC are structured to protect  
          multiple uses or values such as agriculture and wildlife  
          habitat.  Accordingly, these sources, in essence, seek a  
          compromise between exclusive land uses in order to protect the  
          fundamental attributes that make the land valuable for both  
          uses.  For example, if a river runs through agricultural lands,  
          it may make sense to restrict activity in or near a riparian  
          zone, through an easement, in order to protect riparian habitat  
          or water quality.  Non-cultivated portions of farmland could  
          also be restricted because it does not provide ideal farming  
          conditions but could provide habitat or flood protection.

          This bill will allow DOC to maximize agricultural land  
          conservation opportunities by permitting the CFCP to draw from  








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          more diverse funding sources, such as Proposition 84 and  
          Proposition 1E bond funds that recognize the importance of  
          multiple resource protection.  Proposition 84 provides for $90  
          million in grants and incentives for, among other things, the  
          development of regional local land use plans designed to protect  
          natural resources  and  agricultural lands.  Proposition 1E  
          provides $290 million for the protection, creation, and  
          enhancement of flood protection corridors and bypasses through  
          acquisition of easements to protect or enhance flood protection  
          corridors while preserving agricultural use or wildlife values.

          However, if this bill were to become law, DOC would continue to  
          pursue easements on properties that exclusively protect  
          agricultural uses.  This authority would only be used if the  
          Department is awarded or becomes eligible for funds designed to  
          protect multiple resources, including agricultural resources.

           
          Analysis Prepared by  :  Dan Chia / NAT. RES. / (916) 319-2092 


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