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 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 618 Author: Wolk (D), et al. Amended: 9/8/11 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 SENATE FLOOR : 39-0, 6/2/11 AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Runner ASSEMBLY FLOOR : Not available SUBJECT : Local government: solar-use easement SOURCE : Author CONTINUED SB 618 Page 2 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, as specified. Assembly Amendments (1) delete language in the Senate version relating to the Permit Streamlining Act, (2) make clarifying language concerning the solar-use easement, (3) require the county assessor to consider when valuing real property for property taxation purposes, solar-use easements, (4) expand the Department of Fish and Game's authorization to grant permits to take fully protected species, if those species are covered and conserved in a Natural Communities Conservation Plan, and (5) add coauthors. ANALYSIS : Existing law, the California Land Conservation Act of 1965 (Williamson Act), authorizes landowners to sign 10-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 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. SB 618 Page 3 This bill: 1. Expands the 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 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: (1) Land consisting predominately of soil with significantly reduced agriculture productivity for agriculture activities, as specified. (2) 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 Department of Conservation (DOC) determines that the parcel is eligible for a photovoltaic (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 SB 618 Page 4 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. 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 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 percent 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 percent. SB 618 Page 5 10.Authorizes DOC to adopt regulations regarding the implementation of the provisions of this bill. 11.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. 12.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. 13.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. C. A streambed alteration permit. 14.Allows DOC, in consultation with the 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 #3 through #5 above. 15.Allows the Secretary of the Natural Resources Agency to further refine and limit the categories of lands allowed SB 618 Page 6 a CEQA exemption for PV system projects. 16.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. 17.States that landowners are not exempt from obligation imposed by other laws. 18.Repeals the CEQA exemptions for PV systems on January 1, 2018. Comments According to the author's office, 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's office 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 agricultural 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 SB 618 Page 7 determine that some important 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's office, 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 agricultural land. Agricultural land eligible for this exemption have the same limitation as land open to solar use easement, with the added restriction that the agricultural land has limited habitat value. The exemptions only apply for PV system projects on a maximum of 320 acres. The author's office states that this policy will encourage solar companies to seek out more degraded lands to locate PV system projects. According to the author's office, this is another tool that allows PV system projects to opt to be part of NCCP. The author's office 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/26/11) (Unable to reverify at time of writing) California Farm Bureau Federation Trust for Public Land Westland Solar Park AGB/DLW:mw 9/9/11 Senate Floor Analyses SB 618 Page 8 SUPPORT/OPPOSITION: SEE ABOVE **** END ****