BILL ANALYSIS Ó SB 618 Page 1 SENATE THIRD READING SB 618 (Wolk) As Amended August 30, 2011 Majority vote SENATE VOTE :39-0 LOCAL GOVERNMENT 9-0 AGRICULTURE 9-0 ----------------------------------------------------------------- |Ayes:|Smyth, Skinner, Bradford, |Ayes:|Galgiani, Valadao, Bill | | |Campos, Davis, Gordon, | |Berryhill, Hill, Ma, | | |Hueso, Knight, Norby | |Mendoza, Olsen, Perea, | | | | |Yamada | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Fuentes, Harkey, | | | | |Blumenfield, Bradford, | | | | |Charles Calderon, Campos, | | | | |Davis, Donnelly, Gatto, | | | | |Hall, Hill, Lara, | | | | |Mitchell, Nielsen, Norby, | | | | |Solorio, Wagner | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- 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. SB 618 Page 2 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 SB 618 Page 3 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 FN: 0002325