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.









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          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  :








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          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  








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               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
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           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
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           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)









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           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