BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 618|
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                              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





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           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.








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          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 







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                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.
           







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          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 







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             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 







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          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 








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                         SUPPORT/OPPOSITION:  SEE ABOVE

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