BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 982 (Skinner)
Hearing Date: 08/25/2011 Amended: 08/15/2011
Consultant: Brendan McCarthy Policy Vote: GO 13-0
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BILL SUMMARY: AB 982 requires the State Lands Commission to
enter into an agreement with the federal Department of the
Interior to facilitate land exchanges between the state and
federal government, to allow for the development of renewable
energy project on state lands.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Negotiating land exchanges $450 $900
$900Special *
Lease revenues Unknown, potentially up to
($10,000)Special *
per year
* Land Bank Fund.
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Under current law, the State Land Commission manages lands owned
by the state and referred to as "School Lands". These school
lands were given to the state by the federal government in the
19th century with the stipulation that they be used for the
benefit of public education. (Of the 5.5 million acres granted,
about 90 percent have been sold.) In general, the remaining
school lands are located in the desert region of the state and
are divided into many non-contiguous parcels, often with limited
economic value. Revenues that are generated from state lands
(through lease revenues, mining royalties, or other uses) are
deposited in the Land Bank Fund and are used to support the
California Teacher's Retirement System. Last year, school lands
generated about $6 million in revenue.
AB 982 (Skinner)
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AB 982 requires the State Lands Commission to enter into an
agreement with the federal Department of the Interior, by April
1, 2012, to facilitate land exchanges between the state and
federal government. The bill provides that its requirements are
contingent on cooperation by the federal government. The bill
generally directs the Commission to perform the land exchanges
on an acre-for-acre basis, but allows the Commission to request
additional lands or reject a proposed exchange if a specific
school land parcel has greater potential value that an
equivalent amount of federal land. The bill directs the
Commission to consult with the Department of Fish and Game to
identify lands suitable for renewable energy development or use
as mitigation habitat lands for endangered species.
The purpose of the proposed land exchanges is to allow the state
to consolidate parcels into properties that are large enough to
allow for the development of renewable energy projects. The
intention is to assist the state in meeting its renewable energy
goals and to increase the potential of the school lands to
generate revenues for the state.
The Commission indicates that it will need six additional
positions to plan for potential land exchanges, negotiate with
the federal government, and then negotiate lease agreements with
renewable energy developers. Staff estimates these additional
positions will cost about $900,000 per year for the foreseeable
future.
By facilitating additional development of school lands, the bill
is likely to result in increased revenues to the state. The
actual revenue increases will depend on the Commission's ability
to put together properties that are large enough and located in
areas conducive to such development. Based on current and
proposed renewable energy projects in the desert region of the
state, the Commission indicates that potential future revenues
under the bill could be up to $10 million per year.
The proposed committee amendments authorize the recovery of
administrative costs from future project revenues and provide
flexibility for the Commission in negotiating land exchanges.
AB 982 (Skinner)
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