BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 618
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        SENATE THIRD READING
        SB 618 (Wolk)
        As Amended  August 30, 2011
        Majority vote 

         SENATE VOTE  :39-0  
         
         LOCAL GOVERNMENT    9-0         AGRICULTURE         9-0          
         
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        |Ayes:|Smyth, Skinner, Bradford, |Ayes:|Galgiani, Valadao, Bill   |
        |     |Campos, Davis, Gordon,    |     |Berryhill, Hill, Ma,      |
        |     |Hueso, Knight, Norby      |     |Mendoza, Olsen, Perea,    |
        |     |                          |     |Yamada                    |
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         APPROPRIATIONS      17-0                                         
         
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        |Ayes:|Fuentes, Harkey,          |     |                          |
        |     |Blumenfield, Bradford,    |     |                          |
        |     |Charles Calderon, Campos, |     |                          |
        |     |Davis, Donnelly, Gatto,   |     |                          |
        |     |Hall, Hill, Lara,         |     |                          |
        |     |Mitchell, Nielsen, Norby, |     |                          |
        |     |Solorio, Wagner           |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |     |                          |
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         SUMMARY  :  This bill allows a city or county and a landowner to 
        concurrently rescind a Williamson Act (Act) contract on marginally 
        productive or physically impaired lands and enter into a solar-use 
        easement that restricts the use of land to photovoltaic (PV) solar 
        facilities.  Specifically,  this bill  :

        1)Authorizes any county or city to enter into an agreement with a 
          landowner to hold marginally productive or physically impaired 
          land in a solar-use easement for a term of not less than 10 years.

        2)Requires a solar-use easement to be officially recorded with the 
          county assessor. 

        3)Authorizes the Department of Conservation (DOC) to adopt 
          regulations regarding the implementation of the provisions of this 
          measure. 








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        4)Requires every lead agency and responsible agency to expedite its 
          review for issuing any necessary permits for solar photovoltaic 
          facilities located on marginally productive or physically 
          impaired, or disturbed land.

        5)Requires a parcel be designated as marginally productive or 
          physically impaired under this subdivision based on substantial 
          evidence in the public record, and requires the designation be 
          approved by DOC.

        6)Requires the landowner to pay an Act cancellation fee equal to 
          6.25% of the property's nonrestricted value when placing Act land 
          into a solar-use easement, as specified. 
         
        EXISTING LAW:  

        1)Creates the Act, also known as the California Land Conservation 
          Act of 1965, which authorizes cities and counties to enter into 
          agricultural land preservation contracts with landowners who agree 
          to restrict the use of their land for a minimum of 10 years in 
          exchange for lower-assessed valuations for property tax purposes.

        2)Allows a landowner or a county to not renew an Act contract.  The 
          Act contract then runs out in nine years.  After nonrenewal, a 
          county will increase the property's assessed value to its market 
          value by the end of the contract period when the land use 
          restrictions also end.  

        3)Allows for a cancellation of an Act contract at the request of the 
          landowner.  Cancellation immediately ends the contract and allows 
          the landowner to use the property for another specified use.  If 
          the cancellation is approved by the county supervisor, the 
          landowner must pay a cancellation fee equal to 12.5% of the 
          property's nonrestricted value.  The revenues go to the state 
          General Fund (GF). 

        4)Allows for the rescission of an Act contract.  Rescission occurs 
          when the county supervisors cancel an Act contract, but the 
          landowner simultaneously puts an agricultural conservation 
          easement on other land of equal or greater value. 

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
        this bill may cost the GF several million dollars in lost Act 








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        cancellation fees.  Other minor costs would include approximately 
        $200,000 to DOC for implementation of the provisions of this bill 
        and approximately $50,000 to reimburse mandate for requirements 
        placed on the county assessor.  

         COMMENTS  :  The Act conserves agricultural and open space land by 
        allowing private property owners to sign voluntary contracts with 
        counties and cities, restricting their land to agricultural, open 
        space, and compatible uses.  In return, county assessors must lower 
        the assessed value of the contracted lands to reflect their use as 
        agricultural or open space instead of the market value.  Making sure 
        that private property owners use their Act land appropriately is 
        essential to maintaining the statute's constitutional integrity.  
        Approximately 16.6 million acres are under Act contracts.  

        Although the Act recognizes the construction of electric facilities 
        as a compatible use, opinions differ over whether a solar PV 
        facility qualifies as a compatible use.  To avoid lawsuits, 
        landowners and county officials prefer to terminate their Act 
        contracts before building solar PV facilities.  Some county 
        supervisors have made the public interest findings and cancelled Act 
        contracts so that investors can build solar PV facilities.  Others 
        want to find a different method to terminate Act contracts before 
        building solar PV facilities.

        According to the author, this bill offers incentives to solar PV 
        developers who choose to develop on lands that are less suited for 
        agricultural use or have a lower habitat value.  The bill defines 
        "marginally productive and physically impaired lands" to be those 
        lands which have significantly reduced agricultural value due to 
        chemical or physical limitations and are unusable for agricultural 
        purposes.


         Analysis Prepared by  :    Victor Francovich / AGRI. / (916) 319-2084 


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