BILL ANALYSIS Ó AB 823 Page 1 Date of Hearing: April 29, 2013 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 823 (Eggman) - As Amended: April 23, 2013 SUBJECT : California Farmland Protection Act SUMMARY : As part of the California Environmental Quality Act (CEQA) review process for a project that involves the conversion of agricultural lands, requires the lead agency to (1) require that all feasible mitigation of the identified significant environmental impacts associated with the conversion be completed by the project applicant and (2) consider the permanent protection or replacement of agricultural land as feasible mitigation for these impacts. EXISTING LAW : 1)Pursuant to the California Land Conservation Act of 1965 (the Williamson Act), preserves agricultural and open space lands through property tax incentives and voluntary restrictive use contracts. Private landowners voluntarily restrict their land to agricultural and compatible open-space uses under minimum 10-year rolling term contracts with local governments. In return, restricted parcels are assessed for property tax purposes at a rate consistent with their actual use, rather than potential market value. In August of 1998, the Legislature enhanced the Williamson Act with the Farmland Security Zone (FSZ) provisions. The FSZ provisions offer landowners greater property tax reduction in return for a minimum rolling contract term of 20 years. 2)Pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, defines "agricultural lands" as land currently used for the purpose of producing an agricultural commodity for commercial purposes, land left fallow under a crop rotational program, or land enrolled in an agricultural subsidy or set-aside program. 3)Pursuant to Agricultural Land Stewardship Program of 1995, encourages voluntary, long-term private stewardship of agricultural lands by offering landowners financial incentives. AB 823 Page 2 4)Pursuant to the Planning and Zoning Law, requires the Governor to prepare and maintain a comprehensive State Environmental Goals and Policy Report that states, among other things, planning priorities that include the protection of environmental and agricultural resources by protecting, preserving, and enhancing the state's most valuable natural resources, including working landscapes such as farm, range, and forest lands; natural lands such as wetlands, watersheds, wildlife habitats, and other wildlands; recreation lands such as parks, trails, greenbelts, and other open space; and landscapes with locally unique features and areas identified by the state as deserving special protection. 5)Pursuant to CEQA, requires lead agencies, before carrying out or approving a proposed project, to prepare a negative declaration, mitigated negative declaration, or environmental impact report for this action, unless the project is exempt from CEQA (CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA guidelines). 6)Pursuant to CEQA, requires the Natural Resources Agency, in consultation with the Office of Planning and Research, to develop an amendment to the CEQA guidelines' "Environmental Checklist Form" to provide lead agencies an optional methodology to ensure that significant effects on the environment of agricultural land conversions are quantitatively and consistently considered in the environmental review process. The Environmental Checklist Form is a sample checklist that a lead agency can complete to satisfy legal requirements for initial studies when used in conjunction with the sample "Environmental Information Form," which is a form completed by the project applicant. 7)Pursuant to CEQA, requires the lead agency to balance, as applicable, the economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project against its unavoidable environmental risks when determining whether to approve the project. If the specific economic, legal, social, technological, or other benefits, including region-wide or statewide environmental benefits, of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered "acceptable." THIS BILL : AB 823 Page 3 1)Makes findings and declarations, which include the following: a) Despite the analysis and mitigation requirements of CEQA with respect to projects that result in agricultural land conversion, lead agencies do not consistently require feasible mitigation for agricultural land conversion impacts; b) The conversion of agricultural land (as defined by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000) to nonagricultural uses without appropriate mitigation negatively affects California's economic development, natural resources, social and economic equity, and environmental quality; and c) It is the intent of the Legislature to reaffirm the state's intention that a lead agency under CEQA should impose all feasible mitigation measures to address the significant impacts on agricultural lands or resources from development and provide for the permanent protection of replacement agricultural land or resources through permanent agricultural conservation easements, which may constitute feasible mitigation pursuant to CEQA. 2) Defines "development project" as a project, pursuant to CEQA, that involves residential, commercial, civic, industrial, or other infrastructure construction, or the use of property if the construction or use of land is unrelated to the agricultural use, is incompatible with either an agricultural or open-space use of the property, or substantially impairs the agricultural, open-space, or both uses of the property. Agricultural use, open-space use, or the acquisition of land or an interest in land is not a "development project." 3) Defines a "qualified entity" as a land trust, city, county, nonprofit organization, resource conservation district, special district, regional park or open-space district, or regional park or open-space authority that has the conservation of farmland among its stated purposes. 4) Requires a lead agency reviewing a development project to require that all feasible mitigation of the identified significant environmental impacts associated with the AB 823 Page 4 conversion of agricultural land be completed by the project applicant. 5) Requires the lead agency to consider the permanent protection or replacement of agricultural land as feasible mitigation for identified significant effects on agricultural land caused by a development project. 6) For an adopted mitigation measure that requires mitigation in the form of the permanent protection of agricultural land, requires at least one of the following: a) A grant in perpetuity to a qualified entity of an agricultural conservation easement that limits development that is inconsistent with agricultural uses and related activities to ensure the protection and stewardship of the agricultural productive capacity of the mitigation land. b) The project applicant to pay, or cause to be paid, a fee to the lead agency sufficient to acquire a perpetual agricultural conservation easement. The lead agency may secure an easement through a payment to a qualified entity or to the Department of Conservation for the California Farmland Conservancy Program through a deposit to either the California Farmland Conservancy Program Fund or the Farm, Ranch, and Watershed Account for the purposes of acquiring a perpetual agricultural conservation easement. c) The project applicant to enter into a fee agreement with a qualified entity to acquire an agricultural conservation easement. 7) Requires any fees paid by a project applicant to the lead agency or a qualified entity to acquire an agricultural conservation easement to include the purchase price of the easement, all transaction costs, and funding for a reasonable endowment for the purpose of monitoring, administering, legal defense, and all other services provided by the qualified entity to acquire, manage, and monitor the easement in perpetuity. FISCAL EFFECT : Unknown COMMENTS : AB 823 Page 5 1)Purpose of the Bill. According to the author, the goals of this bill "include supporting a vibrant agricultural economy, ensuring California's long-term food security, supporting climate protection benefits of farmland and addressing the need for consistent farmland mitigation. California farmland is currently being converted to nonagricultural uses, such as residential, commercial and industrial, at a rate of 30,000 acres per year. While CEQA requires lead agencies to mitigate for the loss of agricultural land to development projects, there is very little consistency from county to county or city to city in terms of their mitigation policies or even if such policies exist. [This bill] is intended to clarify CEQA requirements for farmland mitigation." 2)Recent History of Agriculture Land Conversion. According to a 2011 report released by the Department of Conservation on farmland conversion, from 1984 to 2008, more than 1.3 million acres of agricultural land in California were converted to nonagricultural purposes. This represents an area larger in size than Merced County or a rate of about one square mile every four days. Nearly 79 percent of this land was urbanized, while 19 percent went to miscellaneous land uses and less than 2 percent of the conversion represents new water bodies-primarily Diamond Valley Lake, Lake Sonoma, and Los Vaqueros Reservoir (in Riverside, Sonoma, and Contra Costa counties, respectively) or flooding of San Joaquin Delta islands for habitat (Contra Costa and Solano counties). The types of agricultural lands that suffered the largest losses are "prime farmland" and "grazing land" (559,743 and 386,525 acres, respectively). Urbanization at the periphery of California cities, many of which are located in agricultural valleys and coastal zones, is the primary reason these types of land are most affected. "Unique farmland" showed a small net increase over the 24 year period (19,279 acres) due to expansion of high value crops-mostly orchards and vineyards-on hilly terrain. 3)Double Referred. This bill has been double referred to the Agriculture Committee. REGISTERED SUPPORT / OPPOSITION : AB 823 Page 6 Support (Prior Version of the Bill) Beverly Hills Farmers' Market Big Bluff Ranch Burrows Family Farms Burrows Ranch, Inc. California Certified Organic Farmers California State Grange Chappellet Winery Committee for Green Foothills Durst Organic Growers, Inc. Ecological Farming Association Farmland Working Group Full Belly Farm Greenbelt Alliance Heaven and Earth Farm Hedgerow Farms Lagier Ranches, Inc. LandWatch Monterey County Mendocino Grain Project Midpeninsula Regional Open Space District Model Neighborhood Program The Nature Conservancy Nicholas Calf Ranch Oak Hill Farm Sonoma PRBO Conservation Science Quetzal Farm Ridge Vineyards Roots of Change San Diego Roots Sustainable Food Project, Wild Willow Farm & Education Center Santa Clara County Open Space Authority Sequoia Riverlands Trust Sierra Farms Lamb Sierra Nevada Alliance Sierra Orchards Sustainable Agriculture Education Sustainable Economies Law Center Straus Family Creamery Swanton Berry Farms Tulare County Citizens for Responsible Growth Valley Land Alliance Opposition (Prior Version of the Bill) AB 823 Page 7 American Council of Engineering Companies of California American Planning Association, California Chapter Association of California Water Agencies Building Industry Association of Central California Building Industry Association of Southern California California Alliance for Jobs California Apartment Association California Building Industry Association California Business Properties Association California Chamber of Commerce California Coast Forest Association California Land Title Association California Municipal Utilities Association Calleguas Municipal Utilities Association California State Association of Counties Camarillo Chamber of Commerce Coachella Valley Water District Eastern Municipal Water District Large Scale Solar Association Metropolitan Water District of Southern California National Federation of Independent Business Orange County Business Council Rural County Representatives of California Three Valleys Municipal Water District Southwest California Legislative Council Western Municipal Water District Westlands Water District Western States Petrolium Association Analysis Prepared by : Mario DeBernardo / NAT. RES. / (916) 319-2092