BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2241
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          ASSEMBLY THIRD READING
          AB 2241 (Eggman)
          As Amended  May 23, 2014
          Majority vote

           AGRICULTURE         6-0         LOCAL GOVERNMENT    9-0         
           
           ----------------------------------------------------------------- 
          |Ayes:|Eggman, Olsen, Dahle,     |Ayes:|Achadjian, Levine, Alejo, |
          |     |Pan, Quirk, Yamada        |     |Bradford, Gordon,         |
          |     |                          |     |Melendez, Mullin, Rendon, |
          |     |                          |     |Waldron                   |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      16-0                                    
           
           -------------------------------- 
          |Ayes:|Gatto, Bigelow,           |
          |     |Bocanegra, Bradford, Ian  |
          |     |Calderon, Campos, Eggman, |
          |     |Gomez, Holden, Jones,     |
          |     |Linder, Pan, Quirk,       |
          |     |Ridley-Thomas, Wagner,    |
          |     |Weber                     |
          |     |                          |
           -------------------------------- 
           SUMMARY  :  Changes the rescission fee charged by a city or county  
          when land under the Williamson Act (WA) contract or land  
          designated as a farmland security zone (FSZ) enters into a  
          solar-use easement, to 10% of the fair market value of the  
          property.  Requires 50% of the rescission fees collected to be  
          deposited in the state General Fund (GF), until January 1, 2020.  
           Specifically,  this bill :  

          1)Raises the rescission fee for land exiting a WA contract to  
            enter into a solar-use easement from 6.25 % to 10%.

          2)Lowers the rescission fee for land designated FSZ exiting a WA  
            contract to enter into a solar-use easement from 12.5 % to  
            10%.

          3)Changes from 100% to 50% the amount of a rescission fee for  
            exiting a WA or FSZ contract to enter into a solar-use  








                                                                  AB 2241
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            easement the county transmits to the state GF.

          4)Provides that this provision will be active until January 1,  
            2020.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, the effect on fee revenue to the Department of  
          Conservation and the GF is unknown.  

           COMMENTS  :  Current law allows marginally productive or  
          physically impaired land, restricted by a WA contract, to be  
          converted to a solar use easement agreement for the sole purpose  
          of siting large-scale solar facilities, provided certain  
          conditions are met.

          SB 618 (Wolk), Chapter 596, Statutes of 2011, provided both  
          perpetual and term easement as an alternative for nonprime  
          farmland that could be reclaimed to its previous agricultural  
          condition after the useful life of the power facility.  The use  
          of marginally productive or physically impaired land for solar  
          facilities could help California meet its Renewables Portfolio  
          Standard goals without jeopardizing more valuable food producing  
          prime farmland.  The intent of solar use easements was to  
          provide an alternative mechanism for counties to exit a contract  
          under WA, as well as provide statewide uniformity with respect  
          to financial assurances for subsequent reclamation of the site.

          Supporters state to date, the implementation of solar use  
          easements has not been widely embraced.  WA contract  
          cancellations continue on prime farmland.

          This bill proposes to change the fee for solar use easements to  
          10% for both WA and FSZ contracts and allow the counties to  
          retain half of the fee, could provide a significant financial  
          incentive for counties to implement the solar use easement  
          program.

           
          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084 


                                                                FN: 0003659









                                                                  AB 2241
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