Williamson Act contracts: cancellation fees: photovoltaic solar facilities.

The bill now also amends Sections 51283 and 51295 of the Government Code, adding a new subject area covering Williamson Act cancellation fees and photovoltaic solar facilities.

Updated legislative findings increase the expected utility-scale solar growth target from 20,000 to 45,000 megawatts by 2035, and the total grid addition target from 62,000 to 68,000 megawatts by 2045. Also adds 'reliability' alongside 'decarbonization' as a state goal.

Removes the ability of a city or county to waive payment or extend the time for making payment of a Williamson Act cancellation fee. Instead, authorizes the Secretary of the Natural Resources Agency to make that determination upon application by the landowner, if the cancellation is caused by an involuntary transfer or change in use, or to facilitate a photovoltaic solar facility meeting specified conditions.

Until January 1, 2037, requires the Secretary of the Natural Resources Agency to approve a completed application for extension of payment if it includes certain items, and to waive payment entirely if the landowner attests and provides proof that a solar project has been constructed on the property.

Deems a Williamson Act contract null and void when the land is approved for use as a photovoltaic solar facility certified under the Jobs and Economic Improvement Through Environmental Leadership Act of 2021 (JLEL).

The finding on community benefit agreements (subsection k) now references 'nullification or fee waiver' in addition to 'suspension,' reflecting the new mechanisms added by this amendment.

The water-insufficiency eligibility criterion was narrowed. Previously, land qualified if there was 'insufficient surface water or groundwater available to support commercially viable irrigated agricultural use.' Now it must have insufficient water that 'results in significantly reduced agricultural production for agricultural activities,' which is a lower threshold of harm required before the land becomes eligible.

Community benefits agreements changed from optional to mandatory. Previously a city or county 'may require' a solar facility to enter into a community benefits agreement with 'one or more local communities.' Now a city or county 'shall require' the agreement, and it must be with the city or county itself rather than with broader community groups.

New requirement that community benefits must begin to be provided no later than the start of construction of the solar facilities, and that they must supplement but not supplant resources the developer is already required to provide under other laws.

The Department of Conservation's role in determining parcel eligibility was clarified as mandatory ('shall make a determination') rather than permissive, upon request from the landowner.

The definition of 'community benefits agreement' was changed from a general agreement providing specific benefits to a 'legally binding and enforceable agreement between the developer and the city or county.' The list of qualifying community benefits was expanded to include farm worker training, groundwater recharge contributions, agricultural innovation research, displaced worker support, and community improvements like parks and bike paths.

The definition of 'local community' was expanded to include workforce development organizations, labor unions, land trusts, community foundations, state agricultural extension services, local governmental agencies, and local nonprofits with relevant responsibilities.

The essential nexus and rough proportionality requirements for mitigation measures on the easement land were retained (the prior version's summary indicated these would be deleted). The performance bond deletion was clarified to apply specifically to term easements or self-renewing easements.

A new coordination provision was added stating that changes to Section 21080 of the Public Resources Code (CEQA) proposed by either AB 149 or SB 149 will be operative only if this bill and either AB 149 or SB 149 are both enacted, and this bill is enacted last.

A new Section 1 containing legislative findings and declarations was added, citing California's zero net carbon by 2045 goal, the need for 20,000 MW of additional solar by 2035, an estimate that 1 million acres of San Joaquin Valley farmland will be fallowed by 2040, and the value of community benefit agreements tied to Williamson Act suspensions.

The mechanism for handling Williamson Act contracts changed from 'suspension' to 'conversion' into a solar-use easement. Conversion means the contract is replaced for the term of the easement rather than temporarily paused, which has different legal and financial implications for landowners.

A new workforce notification requirement was added: at least 14 days before the city or county meeting to decide whether to enter into the agreement, the landowner must notify any relevant workforce in writing of its intent to enter into a solar-use easement, including the time and location of the meeting.

A new provision requires that any mitigation measures imposed on land subject to a solar-use easement have an 'essential nexus' between the measure and the impact, and be 'roughly proportional' to the impact being mitigated. This applies CEQA-like proportionality standards to local mitigation requirements.

The provision allowing cities or counties to serve notice of nonrenewal was modified. The Assembly version specified this could occur 'at the end of the photovoltaic solar facility's operating life'; the Senate version removes that specific timing and replaces it with the broader phrase 'under prescribed circumstances.'

The Department of Conservation's role changed from discretionary ('may determine') to mandatory ('shall make a determination'), meaning the department must issue a ruling on eligibility rather than having the option to decline.

A new eligibility criterion was added for land with insufficient water that results in significantly reduced agricultural production. To qualify, the land must be in a groundwater basin designated as high priority in the most recent Bulletin 118 by the Department of Water Resources, AND water deliveries must have been reduced or curtailed by a water district or governmental agency by a substantial amount for multiple consecutive years.

The prime farmland restriction was reinstated. The Assembly version had deleted the requirement that land not be on prime farmland, unique farmland, or farmland of statewide importance. The Senate version reinstates this restriction but adds an exception: the Department of Conservation may determine a parcel is eligible despite the designation if circumstances (including insufficient water supplies) limit agricultural use.

A new application completeness review process was added: the Department of Conservation must review applications for completeness within 30 days of receipt, identify any missing materials, and if no determination is made within 30 days the application is deemed complete. The department may not request additional materials beyond those specified in the statute.

A second version of Section 51191.5.5 was added that redefines 'community benefits agreement' as a legally binding and enforceable agreement specifically between the solar facility developer and the city or county, as opposed to the earlier broader definition that allowed agreements with one or more local communities including community-based organizations.

The Energy Commission is removed as a potential party to solar-use easements throughout the bill. Only cities and counties may now enter into these easements, eliminating the state-level role previously included.

Williamson Act contracts are no longer 'suspended' during the solar-use easement term. Instead, the contract is 'converted' or its provisions become 'inoperative,' with the land becoming enforceably restricted under the solar-use easement chapter. Upon termination, the preexisting contract provisions become operative again.

A new provision in Section 51191.2 clarifies that execution and acceptance of a solar-use easement deed constitutes an enforceable restriction of the land for solar photovoltaic and appurtenant clean energy facilities.

Section 51192.1 expands the circumstances requiring land restoration to include boundary adjustments under Section 51191.3(b)(3), and changes the contract reinstatement language from 'suspension shall terminate' to 'provisions of any preexisting contract shall once again be operative.'

The water availability eligibility criterion is broadened from requiring 'insufficient surface water or groundwater rights associated with the land available' to simply 'insufficient surface water or groundwater available,' removing the specific reference to water rights and making it easier for parcels to qualify.

A new subdivision (d) in Section 51191.3 preserves a city or county's authority to require measures preventing interference with adjacent land (such as adequate fencing) and its police power under Section 7 of Article XI of the California Constitution.

Section 51192 subdivision (c) is significantly expanded to allow cities and counties to serve notice of nonrenewal when: (1) the landowner has materially failed to comply with easement terms after notice and a public hearing, or (2) the facilities constitute a continuing or repeated legal nuisance after notice and a public hearing. If notice is served under these circumstances, the easement cannot be renewed for the remainder of its term.

A new subdivision (c) in Section 51191.5.5 clarifies that the community benefits agreement requirement does not limit a city or county's authority or remedies under any other provision of law, including police power under Section 7 of Article XI.

All solar-use easements are now limited to a term of years. The previous option for counties or cities to hold easements in perpetuity was removed. The Energy Commission already had a term-of-years limitation, and this now applies uniformly.

The Williamson Act contract is now suspended during the solar-use easement term rather than rescinded. Upon termination of the easement, the contract automatically returns to full force and effect. This preserves the land conservation relationship.

The request for an eligibility determination can now be made by the landowner directly, rather than only by a city or county. This gives individual landowners more direct access to the process.

The requirement that land NOT be designated as prime farmland, unique farmland, or farmland of statewide importance was deleted. Land on these designations can now potentially qualify for solar-use easements if other criteria are met.

New eligibility criterion: the parcel must have been historically used primarily as irrigated cropland rather than unirrigated grazing land. This narrows eligibility to land with a history of intensive agricultural use.

New eligibility criterion: the parcel must not be encumbered by a conservation easement or enrolled in a land conservation program whose primary purpose is protecting non-agricultural resources (recreation, grazing, open space, or biological resources).

A new section (51191.5.5) allows a city or county to require, as a condition of entering into a solar-use easement, that the photovoltaic solar facility enter into a community benefits agreement with one or more local communities.

Removed the mandatory requirement for landowners to post a performance bond or other securities to fund land restoration for term easements or self-renewing easements. Financial assurances are now only required if deemed necessary by the local agency.

Removed the right of any person or entity to seek an injunction if the county or city fails to enforce the easement. Also removed the court's authority to award litigation costs and attorney's fees to a prevailing plaintiff in enforcement actions.

The CEQA exemption for eligibility determinations was broadened to cover all determinations under Section 51191, not just those related to projects described in Section 21080. However, the bill now explicitly states that the photovoltaic solar facility itself is NOT exempt from CEQA.

Added 'storage' to the definition of solar-use easement uses: land must be restricted to photovoltaic solar facilities for collection, storage, and distribution of solar energy (previously only collection and distribution).

Nonrenewal notice can now only be served by the landowner (previously either party could serve it). A city or county may serve notice of nonrenewal only at the end of the photovoltaic solar facility's operating life, giving local governments less flexibility to exit early.

The water availability eligibility criterion was expanded to include not just insufficient water rights but also insufficient surface water and groundwater actually available to support commercially viable irrigated agricultural use.

The bill was expanded from amending only Section 51190 to amending Sections 51190 through 51192.1, repealing Section 51192.2, replacing Section 51255.1, and adding a CEQA exemption in Public Resources Code Section 21080.

Entry into or recordation of a solar-use easement is now exempt from CEQA (California Environmental Quality Act) environmental review under Public Resources Code Section 21080.

The definition of 'solar-use easement' now includes the Energy Commission as an authorized acquirer, expands permitted uses to include solar energy storage and appurtenant renewable energy facilities, requires a term of years (removing the perpetual option), and adds language that Williamson Act contracts are suspended during the easement term.

Eligibility determinations can now be requested by the landowner (not just a city or county), require consultation with groundwater sustainability agencies, add insufficient water rights as a qualifying criterion, remove the bar on prime/unique/statewide importance farmland (replacing it with a conservation easement and historical cropland use test), and impose a 120-day deadline with deemed approval if not rejected.

The core mechanism changes from rescission (permanent termination) of Williamson Act contracts to suspension for the term of the solar-use easement. Upon easement termination, the conservation contract automatically resumes in full force and effect.

The performance bond requirement for term easements changed from mandatory to only 'if deemed necessary' by the local agency or Energy Commission, and salvage value can now be applied toward decommissioning costs. Decommissioning requirements cannot duplicate other state or local decommissioning obligations.

The Department of Conservation is now authorized to establish a fee paid by the landowner to recover the estimated costs of its participation in the eligibility consultation process.

Repealed Section 51192.2, which had established a termination fee equal to 12.5 percent of the fair market value of the property when a solar-use easement was terminated.

Removed the authorization for private persons or entities to seek injunctions against easement violations and deleted the court's authority to award litigation costs and attorney fees to a prevailing plaintiff. Also removed mandatory mitigation measures on or beyond the easement land.

Added a 120-day deadline for the Department of Conservation to issue an eligibility determination after receiving a completed application package; applications not rejected within that period are deemed approved.

Term easements must be at least 20 years unless the landowner requests a shorter term, in which case the minimum is 10 years. Nonrenewal notice is now only required from the landowner (previously either party could serve it).