BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 618| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 618 Author: Wolk (D) Amended: 5/11/11 Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 9-0, 4/27/11 AYES: Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez, Kehoe, La Malfa, Liu SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/26/11 AYES: Kehoe, Walters, Alquist, Lieu, Pavley, Price, Runner, Steinberg NO VOTE RECORDED: Emmerson SUBJECT : Local government: solar-use easement SOURCE : Author DIGEST : This bill authorizes a city or county and a landowner to simultaneously rescind a Williamson Act contract on marginally productive or physically impaired lands and enter into a solar-use easement that restricts the use of land to photovoltaic solar facilities. ANALYSIS : Existing law, the California Land Conservation Act of 1965 (Williamson Act), authorizes landowners to sign ten-year contracts with counties, agreeing to restrict a property's use to agriculture, open space, or compatible uses. In return for the agreement to keep the land out of development, the landowner benefits from reduced property CONTINUED SB 618 Page 2 tax assessments based on the property's use rather than its market value. These contracts renew automatically each year, unless the contract is ended through nonrenewal, cancellation, or termination. Under nonrenewal, either the landowner or the county may provide notice to not renew the contract. When the term of the contract runs out after nine years, the property is reassessed at its market value and land restrictions end. County officials can cancel a Williamson Act contract at a landowner's request if the board of supervisors finds that cancellation is consistent with the Act's purpose or in the public interest. A contract ends immediately upon cancellation and payment of cancellation fees by the landowner to the state in an amount equal to 12.5 percent of the property's unrestricted value. A contract can be rescinded when a board of supervisors cancels a Williamson Act contract and the landowner simultaneously enters into an agricultural conservation easement on other land of an equal or greater value. This bill authorizes a city or county and a landowner to simultaneously rescind a Williamson Act contract on marginally productive or physically impaired lands and enter into a solar-use easement that restricts the use of land to photovoltaic solar facilities. Among other things, this bill: 1. Defines "marginally productive" as parcels not used for agricultural purposes for the previous six years and consisting predominantly of soil with significantly reduced agricultural productivity due to chemical or physical limitations, as specified. 2. Defines "physically impaired land" as land with severely adverse soil conditions that are detrimental to continued agricultural cultivation and production, as specified. 3. Requires a designation of marginally productive or physically impaired to be based on substantial evidence and approved by the Secretary of Food and Agriculture. 4. Requires the term of a solar use easement to be at least ten years and specify that the contract automatically CONTINUED SB 618 Page 3 renews each year unless notice of nonrenewal is given by either party. Upon nonrenewal, the solar-use easement would continue for the balance of the term. The land must be restored to its original condition by the landowner if he or she initiates nonrenewal of a solar-use easement. 5. Requires any lead or responsible agency to expedite the review and issuance of any necessary permits for solar photovoltaic facilities located on marginally productive, physically impaired, or specified disturbed land. 6. Authorizes the Department of Conservation to adopt regulations necessary for the implementation of the bill. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Cancellation fees unknown, significant loss of General/ cancellation fees Special* Property reassessments likely increase in property tax Local/ revenues related to reassessmentsGeneral DFA determinations unknown, potentially significant costs General to make determinations of marginally productive or physically impaired lands DOC regulations one-time costs, likely exceeding $200Special* * Soil Conservation Fund CONTINUED SB 618 Page 4 SUPPORT : (Verified 5/26/11) California Farm Bureau Federation Trust for Public Land Westland Solar Park AGB:mw 5/26/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED