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AB-2528 Williamson Act contracts: cancellation: energy projects.(2023-2024)

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Date Published: 05/06/2024 02:00 PM
AB2528:v97#DOCUMENT

Amended  IN  Assembly  May 06, 2024
Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2528

Introduced by Assembly Member Arambula

February 13, 2024

An act to add Sections 51282.8 and 51297.05 to the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 2528, as amended, Arambula. Williamson Act contracts: cancellation: energy projects.
Existing law, the California Land Conservation Act of 1965, otherwise known as the Williamson Act, authorizes a city or county to enter into contracts with owners of agricultural land to preserve the land for agricultural use, as specified, in return for reduced property tax assessments. The act authorizes a landowner to petition the city council or board of supervisors, as applicable, for cancellation of the Williamson Act contract under specified circumstances and imposes a cancellation fee equal to 12.5% of the fair market value of the land without the restriction of the Williamson Act contract. The act also authorizes a landowner of specified agricultural land to petition the board to cancel the Williamson Act contract in order to designate the land as a farmland security zone, whereby the land is eligible for a specified property tax valuation and taxed at a reduced rate for specified special taxes. The act authorizes a landowner to petition the council or board, as applicable, to cancel a farmland security zone contract under specified circumstances and imposes a cancellation fee equal to 25% of the fair market value of the land without the restriction of the contract.
This bill would authorize a landowner landowner, if their land is located in the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, or Tulare, with a water basin in condition of critical overdraft, to petition the board or council to cancel a Williamson Act contract or a farmland security zone contract if the land meets specified criteria, including, among other things, not having permanent access to sufficient water to support commercially viable irrigated agricultural use on the land, and the landowner would be subject to a land use entitlement for specified energy projects. The bill would authorize a board or council to approve the cancellation if the board or council finds that the land does not have permanent access to sufficient water to support commercially viable irrigated agricultural use and the landowner would be subject to a land use entitlement for the specified energy projects that would use less water than the agricultural use on the land. The bill would require special energy projects to provide a community benefits package, as specified. The bill would prohibit the imposition of a cancellation fee. impose a cancellation fee equal to 6.25% of the fair market value of the property without the restriction of the Williamson Act contract for cancellation of a Williamson Act contract, and would impose a cancellation fee equal to 12.5% of the fair market value of the property without the restriction of the contract for cancellation of a farmland security zone contract. The bill would require the cancellation fees to be collected by the county treasurer, remitted to the Controller, and, upon appropriation by the Legislature, allocated to the Department of Conservation, and for community benefits packages within the county, as specified.
The act requires a board or council, as applicable, to adopt rules governing the administration of agricultural preserves, including rules related to compatible uses consistent with specified principles of compatibility.
This bill would specify that a cancellation under the bill’s provisions does not prevent a board or council from determining that the specified energy projects are a compatible use on contracted land.
Existing law authorizes any local agency or combination of local agencies overlying a groundwater basin to become a groundwater sustainability agency for that basin.
This bill would require a landowner to submit a notification to the relevant groundwater sustainability agency when starting a cancellation petition and to report a completed contract cancellation to the relevant groundwater sustainability agency. The bill would prohibit a contract cancellation from precluding a landowner from voluntary participation in the Multibenefit Land Repurposing Program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California has set an ambitious path to achieve a zero net carbon economy by 2045. The 2022 California Air Resource Board (CARB) Scoping Plan calls for California to cut air pollution by 71 percent and reduce fossil fuel consumption by 86 percent.
(b) The 100 Percent Clean Energy Act of 2018 (SB 100, Chapter 312 of the Statutes of 2018) updated the California Renewables Portfolio Standard Program to ensure that by 2030 at least 60 percent of California’s electricity is renewable and for California to provide 100 percent of its retail sales from renewable zero emission sources by 2045.
(c) The Clean Energy, Jobs and Affordability Act of 2022 (SB 1020, Chapter 361 of the Statutes of 2022), made it the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity by December 31, 2035, 95 percent of all retail sales by December 31, 2040, 100 percent of all retail sales by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035.
(d) Central to this effort is the significant acceleration of renewable energy deployment, particularly utility-scale solar, which state planners expect should grow by 39,000 megawatts by 2035, with approximately 70,000 megawatts added to the grid by 2045 to meet the state’s decarbonization goals.
(e) California has similar ambitious goals to protect and sustainably manage groundwater resources in the state. The Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code) mandates that local water management agencies bring groundwater use to sustainable levels by the early 2040s.
(f) Many of California’s climate and environmental policies can be complementary, such as managing groundwater resources while promoting clean and renewable energy development in areas with water constraints.
(g) The California Land Conservation Act of 1965 (Williamson Act) (Chapter 7 (commencing with Section 51200) of Part 1 of Division 1 of Title 5 of the Government Code) enables cities and counties to contract with landowners who agree to limit their land to agricultural use. However, the Williamson Act has remained largely unchanged since its inception. While it has provided a useful tool to limiting urban sprawl and conserving farmland, the Act should be updated to provide alternative paths for lands that can no longer stay in agricultural production due to water constraints.
(h) It is imperative that the state look for opportunities to align and advance our climate and energy and air quality policies where practical. Aligning policy implementation will provide statewide benefits while providing regional economic alternatives.
(i) It is the intent of the Legislature to provide a streamlined Williamson Act cancellation option to allow the development of renewable energy projects and storage on water-constrained agricultural lands.

SEC. 2.

 Section 51282.8 is added to the Government Code, to read:

51282.8.
 (a) The If the land is located in the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, or Tulare, with a water basin in condition of critical overdraft, a landowner may petition the board or council for cancellation of any contract as to all or any part of the subject land if the land meets both of the following criteria:
(1) The land meets one of the following criteria:
(A) The land is located in a basin that is either of the following:
(i)Designated designated as high or medium priority under California’s Groundwater (Bulletin 118) and is subject to a groundwater sustainability plan pursuant to the Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code), an interim plan by the State Water Resources Control Board pursuant to Chapter 11 (commencing with Section 10735) of Part 2.74 of Division 6 of the Water Code, or a groundwater management plan pursuant to Part 2.75 (commencing with Section 10750) of Division 6 of the Water Code. Code).

(ii)Subject to a final judgment in an adjudication action pursuant to Chapter 12 (commencing with Section 10737) of Part 2.74 of Division 6 of the Water Code.

(B) There are no water or overlying groundwater rights associated with the land sufficient to support commercially viable irrigated agricultural use.
(C) The land does not have permanent access to sufficient water to support commercially viable irrigated agricultural use on the land.
(2) The landowner would be subject to a land use entitlement to use the land for any of the following projects:
(A) A solar photovoltaic or wind electrical generating power plant and appurtenant facilities.
(B) An energy storage system.
(C) An electric transmission line carrying electric power from a facility described in subparagraph (A) or (B) that is located in the state to a point of junction with any interconnected electrical transmission system.
(b) (1) The landowner shall submit a notification to the relevant groundwater sustainability agency when starting a cancellation petition and shall report a completed contract cancellation under this section to the relevant groundwater sustainability agency.
(2) A contract cancellation shall not preclude a landowner from voluntary participation in the Department of Conservation’s Multibenefit Land Repurposing Program.

(b)

(c) Upon petition pursuant to subdivision (a), the board or council may approve the cancellation of the contract only if it makes both of the following findings:
(1) The land does not have permanent access to sufficient water to support commercially viable irrigated agricultural use on the land.
(2) The landowner would be subject to a land use entitlement to use the land for a project described in paragraph (2) of subdivision (a) that would use less water than the agricultural use on the land.

(c)The provisions of Section 51283 shall not apply to any cancellation under this section, and no cancellation fee shall be imposed.

(d) (1) The cancellation fee under this section shall be 6.25% of the fair market value of the property, which shall be determined in accordance with Section 51283.
(2) Notwithstanding Section 51283, cancellation fees required by this section shall be collected by the county treasurer and allocated as follows:
(A) ____percent shall be remitted by the county treasurer to the Controller and, upon appropriation by the Legislature, shall be allocated to the Department of Conservation.
(B) ____percent for community benefits packages, as described in subdivision (f), within the county.

(d)

(e) This section shall not prevent a board or council from determining a project described in paragraph (2) of subdivision (a) is a compatible use on contracted land.
(f) Projects built pursuant to paragraph (2) of subdivision (a) shall provide a community benefits package, including, but not limited to, local employment, water services, and electricity discounts.

(e)

(g) For the purposes of this section, the following terms have the following meanings:
(1) “Adjudication action” means as defined by subdivision (a) of Section 10721 of the Water Code.
(2) “Basin” means as defined by subdivision (b) of Section 10721 of the Water Code.
(3) “Bulletin 118” means as defined by subdivision (c) of Section 10721 of the Water Code.
(4) “Energy storage system” means as defined by subdivision (a) of Section 2835 of the Public Utilities Code.

SEC. 3.

 Section 51297.05 is added to the Government Code, to read:

51297.05.
 (a) The If the land is located in the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, or Tulare, with a water basin in condition of critical overdraft, a landowner may petition the board or council for cancellation of a farmland security zone contract created under this article as to all or any part of the subject land if the land meets both of the following criteria:
(1) The land meets one of the following criteria:
(A) The land is located in a basin that is either of the following:
(i)Designated designated as high or medium priority under Bulletin 118 and is subject to a groundwater sustainability plan pursuant to the Sustainable Groundwater Management Act (Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code), an interim plan by the State Water Resources Control Board pursuant to Chapter 11 (commencing with Section 10735) of Part 2.74 of Division 6 of the Water Code, or a groundwater management plan pursuant to Part 2.75 (commencing with Section 10750) of Division 6 of the Water Code. Code).

(ii)Subject to a final judgment in an adjudication action pursuant to Chapter 12 (commencing with Section 10737) of Part 2.74 of Division 6 of the Water Code.

(B) There are no water or overlying groundwater rights associated with the land sufficient to support commercially viable irrigated agricultural use.
(C) The land does not have permanent access to sufficient water to support commercially viable irrigated agricultural use on the land.
(2) The landowner would be subject to a land use entitlement to use the land for any of the following projects:
(A) A solar photovoltaic or wind electrical generating power plant and appurtenant facilities.
(B) An energy storage system.
(C) An electric transmission line carrying electric power from a facility described in subparagraph (A) or (B) that is located in the state to a point of junction with any interconnected electrical transmission system.
(b) (1) The landowner shall submit a notification to the relevant groundwater sustainability agency when starting a cancellation petition and shall report a completed contract cancellation under this section to the relevant groundwater sustainability agency.
(2) The cancellation shall not preclude a landowner from voluntary participation in the Department of Conservation’s Multibenefit Land Repurposing Program.

(b)

(c) Upon petition pursuant to subdivision (a), the board or council may approve the cancellation of the contract only if it makes both of the following findings:
(1) The land does not have permanent access to sufficient water to support commercially viable irrigated agricultural use on the land.
(2) The landowner would be subject to a land use entitlement to use the land for a project described in paragraph (2) of subdivision (a) that would use less water than the agricultural use on the land.

(c)The provisions of subdivision (b) of Section 51297 shall not apply to any cancellation under this section, and no cancellation fee shall be imposed.

(d) (1) The cancellation fee under this section shall be 12.5% of the fair market value of the property, which shall be determined in accordance with Section 51283.
(2) Notwithstanding Section 51283, cancellation fees required by this section shall be collected by the county treasurer and allocated as follows:
(A) ____percent shall be remitted by the county treasurer to the Controller and, upon appropriation by the Legislature, shall be allocated to the Department of Conservation.
(B) ____percent for community benefits packages, as described in subdivision (f), within the county.

(d)

(e) This section shall not prevent a board or council from determining a project described in paragraph (2) of subdivision (a) is a compatible use on contracted land.
(f) Projects built pursuant to paragraph (2) of subdivision (a) shall provide a community benefits package, including, but not limited to, local employment, water services, and electricity discounts.

(e)

(g) For the purposes of this section, the following terms have the following meanings:
(1) “Adjudication action” means as defined by subdivision (a) of Section 10721 of the Water Code.
(2) “Basin” means as defined by subdivision (b) of Section 10721 of the Water Code.
(3) “Bulletin 118” means as defined by subdivision (c) of Section 10721 of the Water Code.
(4) “Energy storage system” means as defined by subdivision (a) of Section 2835 of the Public Utilities Code.

SEC. 4.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the high amount of land that is in a condition of critical overdraft in the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare in California’s Central Valley.