BILL NUMBER: AB 982	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2011

INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 18, 2011

    An act to add Chapter 13 (commencing with Section 25990)
to the   An act to repeal and add Division 7.7
(commencing with Section 8700) of the  Public Resources Code,
relating to energy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 982, as amended, Skinner. Energy:  Solar Energy Parks
Program.   land exchange for renewable energy- 
 related projects.  
   The School Land Bank Act vests the State Lands Commission, as a
trustee, with the exclusive jurisdiction and authority the School
Land Bank Fund and interest in land acquired pursuant to that act.
The act authorizes the commission, acting as a trustee, to acquire
interest in real property for the purposes of facilitating the
management of school lands to generate income.  
   This bill would require the commission to make best efforts to
enter into a memorandum of agreement by April 1, 2012, with the
United States Secretary of the Interior to facilitate land exchanges
consolidating school land parcels into contiguous holdings for
renewable energy-related projects. The bill would require the
commission, by January 1 of each year, to report to the Legislature
on the status of the memorandum of agreement and school land
consolidation efforts for renewable energy-related projects. 

   Existing law, with respect to the California Solar Initiative,
requires the State Energy Resources Conservation and Development
Commission (Energy Commission), in consultation with the Public
Utilities Commission, local publicly owned electric utilities, and
interested members of the public, to establish eligibility criteria
for solar energy systems receiving ratepayer funded incentives.
 
   This bill would enact the Solar Energy Parks Act that would
establish a program for solar energy parks on state lands for the
advancement, development, assessment, and installation of commercial
concentrating solar power energy systems. The bill would require the
Energy Commission, in consultation with the State Lands Commission
and the Public Utilities Commission, to determine lands that are
suitable for the installation of concentrating solar power energy
systems based on specified criteria.  
   This bill would require the Energy Commission, in consultation
with the State Lands Commission, to consult with the United States
Secretary of the Interior for possible exchange of lands to be used
in the program, and to establish criteria for application processes
for project developers of the solar energy parks. The bill would
establish a rental fee for a commercial solar energy park development
right-of-way grant, and a lease term of not less than 30 years.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Division 7.7 (commencing with Section
8700) of the   Public Resources Code   is repealed.

   SEC. 2.    Division 7.7 (commencing with Section
8700) is added to the   Public Resources Code   ,
to read:  

      DIVISION 7.7.  School Lands


      CHAPTER 1.  SCHOOL LAND BANK ACT


   8700.  This division shall be known and may be cited as the School
Land Bank Act.
   8701.  The Legislature finds and declares as follows:
   (a) Past policies of the state have resulted in significant
depletion of the inventory of lands granted by the federal government
to provide fiscal support for the public school system.
   (b) It is essential that all remaining school lands and attendant
interests be managed and enhanced to provide an economic base for
support of the public school system.
   (c) The commission shall plan and implement all transactions,
including exchanges, sales, and acquisitions which would facilitate
the management of school land interests for revenue generating
purposes.
   (d) The state, through the commission, shall take all action
necessary to fully develop school lands, indemnity interests, and
attendant mineral interests into a permanent and productive resource
base.
   (e) It is in the best interest of the state that school lands be
managed as a revenue source and it is the intent of the Legislature
that fair market value be a primary criterion in determining if
proposed uses or dispositions of land should be approved.
   (f) The consolidation of school land parcels into contiguous
holdings is essential to sound and effective management and the power
to acquire lands by exchange or purchase is elemental to the
consolidation process.
   8702.  Unless the context otherwise requires, the definitions in
this section govern the construction of this division.
   (a) "Commission" means the State Lands Commission.
   (b) "Fund" means the School Land Bank Fund.
   (c) "Trustee" means the State Lands Commission acting in its role
as trustee for the School Land Bank Fund.
   (d) "School land" means land or interests in land granted to the
state by an Act of Congress March 3, 1853 (Ch. 145, 10 Stat. 244),
for the specific purpose of providing support for the public schools.

   8703.  Acquisitions may be made by negotiated agreement with, or
purchase from, the owners of the outstanding interests. Nothing in
this division confers any authority to exercise the power of eminent
domain for the purposes of this division, although that power is
statutorily vested in the commission.
   8704.  The trustee shall make all reasonable attempts to acquire
the mineral and other subsurface rights in any acquisition pursuant
to this division. If the trustee is unable to acquire the mineral and
other subsurface rights, the trustee may purchase real property upon
the trustee expressly finding that the benefits to be derived from
the acquisition are substantial and that acquisition of the property
without the subsurface rights is in the best interests of the state
for the purposes set forth in this division.
   8705.  The trustee has the exclusive jurisdiction and authority to
administer the fund and the interest in real property acquired
pursuant to this division, including the selection, acquisition, and
conveyance of real property by the trustee as provided in this
division.
   8706.  The state, in its sovereign capacity, shall accept any
conveyance, and the land shall thereafter be held by the state as
land of the legal character of school lands subject to the school
land trust under the jurisdiction of the commission pursuant to
Division 6 (commencing with Section 6001).
   8707.  The commission shall accept the conveyances on the part of
the state and shall authorize their acknowledgment and recordation.
   8708.  Until expended for acquisitions in accordance with this
division, moneys in the fund shall be deposited in the Pooled Money
Investment Fund and the interest deposited in the fund.
   8709.  In addition to the purchase price to be paid, the costs and
expenses attributable to the acquisition may be payable from the
fund, provided that those costs shall not exceed 5 percent of the
expended funds.
   8709.5.  Expenses attributable to management and remediation
efforts on state school lands are payable from the fund.
   8710.  An action under this division is not subject to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000)), the Subdivision Map Act (Division 2 (commencing with
Section 66410) of Title 7 of the Government Code), or the Property
Acquisition Law (Part 11 (commencing with Section 15850) of Division
3 of Title 2 of the Government Code).
   8711.  There is in the State Treasury the School Land Bank Fund,
which is hereby created. Notwithstanding Section 13340 of the
Government Code, all moneys in the fund are appropriated to the
commission for expenditure, without regard to fiscal years, for the
purposes of this division. When performing the powers and duties set
forth in this division, the commission shall be known as the School
Land Bank Trustee.
   8712.  The trustee may acquire real property or any interest in
real property with the objective of facilitating management of school
lands for the purpose of generating revenue.
   8713.  The trustee shall act only at an open, scheduled public
meeting, subject to all provisions of Division 6 (commencing with
Section 6001) relating to meetings of the commission. The trustee may
combine its meeting with the meetings of the commission.
   8715.  The provisions of this division are not intended as
exclusive, and shall not restrict the commission in otherwise meeting
any other responsibilities and jurisdiction the commission presently
has by law.
   8716.  The trustee may accept gifts of real property or money for
the purposes of this division.
      CHAPTER 2.  LAND EXCHANGES FOR RENEWABLE ENERGY-RELATED
PROJECTS


   8720.  The Legislature finds and declares all of the follows:
   (a) The high cost of energy is taking a financial toll on
California's citizens and economy, as well as making the state more
dependent on foreign oil.
   (b) The use of fossil-fueled energy sources has caused detrimental
effects on the environment and human health by polluting the air,
soil, and water, as well as contributing to climate change.
   (c) California is home to abundant renewable energy resources,
such as solar, wind, geothermal, and biomass.
   (d) The State Lands Commission manages on behalf of the State
Teachers' Retirement Fund (STRS) hundreds of thousands of acres of
school lands, a great deal of which have significant potential for
siting renewable energy projects.
   (e) The State Lands Commission has a duty pursuant to the School
Land Bank Act (Chapter 1 (commencing with Section 8700)) to take all
action necessary to fully develop school lands into a permanent and
productive resource base for the benefit of STRS.
   (f) A significant amount of school lands are not producing revenue
because they are isolated, landlocked parcels, the majority of which
are remote desert lands. The consolidation of school land parcels
into contiguous holdings would facilitate the sound and effective
management of these lands.
   (g) On October 16, 2008, the State Lands Commission adopted a
resolution supporting the environmentally responsible development of
school lands for renewable energy-related projects.
   (h) If school lands are leased for commercial, large-scale
renewable energy projects, the state will benefit in the form of
reduced carbon emissions, a cleaner and healthier environment,
affordable energy, stronger national security, new jobs, and more
funding for STRS.
   (i) It is the policy of the state to promote the advancement,
development, assessment, and installation of renewable energy systems
on school lands. Any consolidation and development of school lands
for renewable energy should be done with assurances that the state's
unique and sensitive environment will be protected.
   8721.  For the purposes of this chapter, "California desert" means
the California Desert Conservation Area as described in Section 1781
of Title 43 of the United States Code.
   8722.  (a) The commission shall make best efforts to enter into a
memorandum of agreement by April 1, 2012 with the United States
Secretary of the Interior to facilitate land exchanges that
consolidate school land parcels into contiguous holdings for
renewable energy-related projects.
   (b) If a memorandum of agreement is entered into, the commission
shall make best efforts to consolidate all school land parcels in the
California desert into contiguous holdings for renewable
energy-related projects.
   (c) The commission shall report to the Legislature by January 1 of
each year on the status of the memorandum of agreement and school
land consolidation efforts in the California desert.
   8724.  (a) Within 240 days of the execution of the memorandum of
agreement, the commission shall prepare and submit to the United
States Secretary of the Interior a proposal for land exchanges that
consolidate all school land parcels in the California desert into
contiguous holdings for renewable energy-related projects. In
developing the proposal, the commission shall give priority to land
exchanges that will facilitate the development of large-scale
commercial renewable energy projects.
   (b) The commission's proposal shall be based on an acre-for-acre
exchange with the United States.
   (c) Notwithstanding subdivision (b), the commission may withhold a
school land parcel from an exchange proposal or request additional
consideration from the United States Secretary of the Interior if the
commission reasonably believes, based on existing and reliable
information, that an acre-for-acre exchange would not provide the
state with compensation that is equal to or greater than the fair
market value of the school land parcel. For the purpose of this
subdivision, the commission shall consider the potential renewable
energy value of a parcel the commission would receive in the
exchange.
   (d) In preparing the land exchange proposal, the commission shall
do both of the following:
   (1) Consult with the State Energy Resources Conservation and
Development Commission to identify areas that are best suited for
renewable energy projects because of access to transmission lines,
renewable energy resources, and any other relevant factors.
   (2) Consult with the Department of Fish and Game to identify areas
in the California desert meeting both of the following criteria:
   (i) It is not likely that a renewable energy project would have a
significant effect on sensitive environmental habitat or migratory
birds in the area.
   (ii) The area would serve as a potential mitigation area to offset
the impacts that renewable energy-related projects may have on the
environment.
   (e) The commission's costs and expenses attributable to the land
exchange process may be payable from the fund.
   (f) The commission may consider counter land exchange proposals
from the United States Secretary of the Interior and make additional
proposals to the extent that the additional proposals achieve the
goals set forth in this chapter.
   (g) Final approval of a land exchange proposed pursuant to this
chapter shall be made by the commission at a properly noticed
commission meeting.  
  SECTION 1.    Chapter 13 (commencing with Section
25990) is added to Division 15 of the Public Resources Code, to read:

      CHAPTER 13.  SOLAR ENERGY PARKS PROGRAM


   25990.  (a) This chapter shall be known, and may be cited, as the
Solar Energy Parks Act.
   (b) It is the policy of the state to promote a program for solar
energy parks on state lands for the advancement, development,
assessment, and installation of commercial concentrating solar power
energy systems.
   25991.  (a) By April 1, 2012, the commission and the State Lands
Commission shall submit to the Governor both of the following:
   (1) A determination of federal lands managed by the federal Bureau
of Land Management (BLM), and which are not already encumbered by
applications or rights of way, that may be suitable for the
installation of projects for 10 gigawatts (GW) of commercial
concentrating solar power energy systems.
   (2) A determination of state-owned lands equal in size to the
federal lands identified in paragraph (1), and which are not already
encumbered by applications or rights of way, that may be exchanged
with the BLM lands, which would thereafter become state-owned lands.
   (b) The commission shall make the determination of site
suitability for the installation of commercial concentrating solar
power energy systems in consultation with the State Lands Commission
and the Public Utilities Commission.
   (1) A site shall be assessed for all of the following:
   (A) Existence of high insolarity.
   (B) Access to water.
   (C) Access to existing or planned transmission lines and natural
gas pipelines.
   (D) Avoidance of wilderness areas, areas of critical environmental
concern, United States Park System lands, and other environmentally
sensitive areas.
   (E) Suitability for a variety of concentrating solar power
technologies.
   (2) Each site identified as suitable for the installation of
commercial concentrating solar power systems shall be sufficient for
the installation of at least 1 GW.
   (3) In aggregate, sites determined suitable by the commission,
with the concurrence of the State Lands Commission, shall be
sufficient for the installation of 10 GW of concentrating solar
power.
   25992.  (a) The commission and the State Lands Commission shall
consult with the United States Secretary of the Interior on the
implementation of the exchange of lands for concentrating solar
energy parks of 10 GW. The commission shall make best efforts to
complete the exchange of lands within 180 days after the
identification of those lands and formal consultation with the United
States Secretary of the Interior.
   (b) Prior to the transfer of title to the state, the commission,
in consultation with the State Lands Commission, shall establish
criteria for individual application processes for project developers
and shall establish project development milestones to ensure due
diligence in the development of the solar energy parks.
   (c) The commission, in consultation with the State Lands
Commission, shall complete all necessary environmental surveys, and
compliance and permitting processes for a programmatic right of way
pursuant to the California Environmental Quality Act (Division 13
(commencing with Section 21000)), within one year of the exchange of
lands with the BLM.
   25993.  (a) The commission shall ensure that all solar energy park
project applications submitted by individual developers or
applicants pursuant to this chapter are permitted utilizing expedited
permitting processes and shall approve or deny lease applications
within six months. Any additional costs created by utilizing
expedited permitting processes, and any environmental mitigation
costs incurred to develop solar power on these lands, shall be
recoverable from applicants who are developing projects within the
solar energy parks. An application for use of state-owned land may
not be approved by the commission unless the applicant has a power
purchase agreement with a utility with a term of at least 10 years
and a pending or approved application with a permitting authority
having jurisdiction to provide all necessary permits for the
construction and operation of the solar energy project.
   (b) The rental fee for a commercial solar energy park development
right-of-way grant is established at two hundred dollars ($200) per
acre for the first year of operation, increasing 25 percent after the
first five years, and increasing 25 percent in the 10th year of the
program, to be paid in annual payments commencing on the day of
operation. During the development and construction phase of a
project, the rental fee shall be waived. A lease for a project within
the concentrating solar energy parks program shall be for a term of
not less than 30 years.
   25994.  The commission shall, in consultation with the State Lands
Commission, the Public Utilities Commission, the Federal Energy
Regulatory Commission, affected utility industries and authorities,
and other interested agencies and persons, identify necessary gas and
electric transmission upgrades to the identified solar energy parks
pursuant to this chapter.