BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 618
                                                                  Page  1

          SENATE THIRD READING
          SB 618 (Wolk)
          As Amended  September 2, 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 
          rescind a Williamson Act (Act) contract on agricultural lands 
          (Ag land) of limited agriculture or wildlife habitat value and 
          enter into a solar-use easement that restricts the use of land 
          to photovoltaic (PV) solar facilities.  This bill exempts PV 
          solar energy systems (PV systems) from the California 
          Environmental Quality Act (CEQA) when placed on specific lands, 
          including some classes of unproductive Ag land.  Specifically 
           this bill  :

          1)Expands the California Department of Fish and Game's (DFG) 
            authorization to grant permits to take Fully Protected Species 
            (FPS) if those species are covered and conserved in a Natural 
            Communities Conservation Plan (NCCP).  

          2)Defines solar-use easement as any rights or interests acquired 
            by a city or county in perpetuity or a term of years that 
            restricts the use of land to a solar facility, with the 








                                                                  SB 618
                                                                  Page  2

            purpose to provide for the collection and distribution of 
            solar energy for electricity generation, as specified.

          3)Defines land eligible for a solar-use easement  under the Act, 
            as meeting the following criteria:

             a)   The land meets either of the following:

               i)     Land consisting predominately of soil with 
                 significantly reduced agriculture productivity for 
                 agriculture activities, as specified; and,

               ii)    Land that has severely adverse soil conditions that 
                 are detrimental to agricultural activities and 
                 production, as specified.    

             b)   Requires the parcel to not be located on prime farmland, 
               unique farmland, or land of statewide importance as 
               determined by the Farmland Mapping and Monitoring Program 
               of the California Natural Resources Agency (NRA), unless 
               the California Department of Conservation (DOC) determines 
               that the parcel is eligible for a PV easement based on 
               circumstances that cause limited agricultural use for the 
               parcel.  Requires lands designated as important farmland 
               not to be reclassified due to irrigation status.

          4)Requires the landowners requesting a PV easement to provide 
            DOC with the following information, if applicable:

             a)   A written explanation why the land, even under best 
               management practices, is agriculturally unproductive; 

             b)   A recent soil test showing characteristics that make the 
               land agriculturally unproductive;

             c)   An analysis showing water availability on the land;

             d)    An analysis of water quality on the land; and,

             e)   Crop and yield information for the past six years.

          5)Requires the landowner to provide to DOC a proposed management 
            plan for the life of the PV easement describing soil 
            management, minimizing impact on adjacent agriculture 
            operations, and plans to restore the land to its previous 








                                                                  SB 618
                                                                  Page  3

            condition when the easement ends.  Requires the landowner, 
            when a local government approves a solar easement, to 
            implement the management plan if the land is deemed eligible 
            by DOC, as specified.

          6)Allows DOC to establish a fee, to be paid by the landowner, to 
            recover the estimated cost incurred by DOC in the consultation 
            a solar easement.

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

          8)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 20 years, 
            unless the landowner request a shorter term, that may not be 
            less than 10 years.

          9)Requires the landowner to pay an Act cancellation fee equal to 
            6.25% of the fair market valuation of the land when placing 
            Act land into a solar-use easement, unless the land is 
            designated as a Farmland Security Zone (FSZ).  FSZ land must 
            pay a cancellation fee of 12.5%. 

          10)Authorizes DOC to adopt regulations regarding the 
            implementation of the provisions of this measure. 

          11)Exempts PV system from the California Environmental Quality 
            Act (CEQA) on the following lands:

             a)   Abandoned surface mines, as specified;

             b)   Land with active, idle, abandoned or closed oil wells;

             c)   Solid waste landfills that have been closed, as 
               specified; 

             d)   National Priorities List sites (Superfund sites) and 
               sites that were remediated and removed from the Superfund 
               sites list, or sites where corrective action has been 
               ordered, is underway or is complete;

             e)   Hazards substance release site where remediation or 
               corrective action has occurred;









                                                                  SB 618
                                                                  Page  4

             f)    Right of way owned by the California Department of 
               Transportation, as specified;

             g)   Land designated a hazardous air space in an airport land 
               use zone;

             h)   Industrial zoned land that has been mechanically 
               disturbed at least five years prior to the PV system 
               project application, as specified; and,

             i)   Agricultural land as determined by DOC, as specified.

          12)Defines a PV system to include all parts and materials that 
            enable the generation and use of solar electricity; any 
            monitoring, control, safety, conversion and emergency 
            responder equipment, equipment to connect to electrical 
            services, and equipment to connect to the electric grid. 

          13)Requires reclamation, closure, remediation, or corrective 
            action required in previous permits, mitigation plans, or as a 
            condition of a previous project approval related to this 
            project site, to be carried out and determined to be complete 
            by the responsible agency prior to implementation of a PV 
            system project approval. 

          14)Requires the proposed PV system project land to be determined 
            by a qualified biologist to have no significant habitat value 
            as detailed in a complete biological resource survey 
            consistence with survey protocols recommended by DFG.  The 
            CEQA exemption would not apply if the project would otherwise 
            require one of the following:

             a)   A new individual federal permit under the Federal Clean 
               Water Act or a new individual water discard permit under 
               the porter-Cologne Water Quality Control Act;

             b)   A new individual take permit for species under the 
               federal or California Endangered Species Act; or,

             c)   A streambed alteration permit.

          15)Allows DOC, in consultation with the California Department of 
            Food and Agriculture, to determine if agricultural land is 
            suitable for a CEQA exemption for a PV system project, if it 
            meets the requirements detailed in section 3 through 6 above.  








                                                                  SB 618
                                                                  Page  5



          16)Allows the Secretary of the Natural Resources Agency to 
            further refine and limit the categories of lands allowed a 
            CEQA exemption for PV system projects.

          17)Requires PV system project to be on 320 acres or less.  
            Prohibits successive applications for proposed PV systems on 
            adjacent parcels subject to common ownership and control. 

          18)States that landowners are not exempt from obligation imposed 
            by other laws.

          19)Repeals the CEQA exemptions for PV systems on January 1, 
            2018.

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for 
            carrying out or approving a proposed project to prepare a 
            negative declaration, mitigated negative declaration, or 
            environmental impact report (EIR) for this action, unless the 
            project is exempt from CEQA.

          2)Creates the Act, also known as the California Land 
            Conservation Act of 1965, which authorizes cities and counties 
            to enter into Ag 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.  Allows for 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.  When a cancellation 
            is approved, 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. 

          3)Allows DFG to issue permits allowing for the taking of any 
            covered species whose conservation and management is provided 
            for in a NCCP approved by DFG.

           FISCAL EFFECT  :  Unknown  

           COMMENTS  :  The Act conserves agricultural and open space land by 
          allowing private property owners to sign voluntary contracts 








                                                                  SB 618
                                                                  Page  6

          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.  

          CEQA provides a process for evaluating the environmental effects 
          of projects undertaken or approved by public agencies.  Projects 
          not exempt from CEQA undergo an initial study to determine 
          whether the project may have a significant effect on the 
          environment.  Depending on if the initial study shows that there 
          would or would not be a significant effect on the environment, 
          the lead agency must prepare an EIR or a negative declaration.  
          A lead agency must base its determination of significant effects 
          on substantial evidence.

          According to the author, as the state strives to meet its new, 
          ambitious, 33% Renewables Portfolio Standard (RPS), counties and 
          landowners are left struggling to balance the competing needs of 
          large-scale solar PV development and protecting critical habitat 
          and farmland.  The state has invested for decades in protecting 
          important farmland through subvention payments under the Act.  
          Now those lands are being targeted for development.  Meanwhile, 
          there are millions of acres of degraded and economically 
          unproductive lands that are better suited for PV energy 
          production and have fewer environmental impacts.

          The author states this bill establishes clear policy directions 
          to bring projects proposed for degraded lands on line faster and 
          cheaper. These policies will lead to greater job creation, help 
          the state reach its RPS goals, and ensure that California 
          continues to feed the nation by protected our most valuable 
          agricultural lands. This bill accomplishes this goal by allowing 
          landowners to rescind an Act contract by placing the land into a 
          new solar-use easement and a limited and precisely written 
          exemption for appropriately sited PV system projects from CEQA.

          Recent amendments to this bill define Ag lands that would be 
          suitable for a solar use easement.  The land needs to limited 
          values for agricultural production and not be prime farmland, 
          unique farmland or farmland that is of statewide importance 
          (important farmland).  DOC may determine that some important 








                                                                  SB 618
                                                                  Page  7

          farmland is eligible for a solar-use easement if it can be shown 
          that the land has limited use for agricultural activities.  
          According to the author, this gives landowners a clear path to 
          terminate their contracts, while ensuring the state retains an 
          interest in the lands taxpayers have invested in for decades 
          through subvention payments.

          Recent amendments to this bill define new CEQA exemptions for PV 
          system projects.  The exemptions apply to lands that are 
          degraded and economically unproductive, such as clean-up 
          superfund sites, land near airports and specified Ag land.  Ag 
          land eligible for this exemption have the same limitation as 
          land open to solar use easement, with the added restriction that 
          the Ag land has limited habitat value.  The exemptions only 
          apply for PV system projects on a maximum of 320 acres.  The 
          author states that this policy will encourage solar companies to 
          seek out more degraded lands to locate PV system projects. 

          According to the author, this is another tool that allows PV 
          system projects to opt to be part of NCCP.  The author states 
          that the expanded DFG authorization to grant permits to take 
          FPS, if those species are covered and conserved in a NCCP, finds 
          the elusive middle ground between important land use protections 
          and unreasonable bureaucratic impediments in existing programs. 
          The expansion of authorization to take FPS is not limited to PV 
          system projects.


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


                                                                FN: 0002679