AB 2528: 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 bills provisions does not prevent a board or council from determining that the specified energy projects are a compatible use on contracted land.