BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 618|
          |Office of Senate Floor Analyses   |                         |
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                                 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 
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          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 

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             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

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          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

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