California Assembly Bill AB982 Amended / Bill

 BILL NUMBER: AB 982AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 26, 2011 INTRODUCED BY Assembly Member Skinner FEBRUARY 18, 2011  An act to add Chapter 13 (commencing with Section 25990) to the   An act to repeal and add Division 7.7 (commencing with Section 8700) of the  Public Resources Code, relating to energy. LEGISLATIVE COUNSEL'S DIGEST AB 982, as amended, Skinner. Energy:  Solar Energy Parks Program.   land exchange for renewable energy-   related projects.   The School Land Bank Act vests the State Lands Commission, as a trustee, with the exclusive jurisdiction and authority the School Land Bank Fund and interest in land acquired pursuant to that act. The act authorizes the commission, acting as a trustee, to acquire interest in real property for the purposes of facilitating the management of school lands to generate income.   This bill would require the commission to make best efforts to enter into a memorandum of agreement by April 1, 2012, with the United States Secretary of the Interior to facilitate land exchanges consolidating school land parcels into contiguous holdings for renewable energy-related projects. The bill would require the commission, by January 1 of each year, to report to the Legislature on the status of the memorandum of agreement and school land consolidation efforts for renewable energy-related projects.   Existing law, with respect to the California Solar Initiative, requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with the Public Utilities Commission, local publicly owned electric utilities, and interested members of the public, to establish eligibility criteria for solar energy systems receiving ratepayer funded incentives.   This bill would enact the Solar Energy Parks Act that would establish a program for solar energy parks on state lands for the advancement, development, assessment, and installation of commercial concentrating solar power energy systems. The bill would require the Energy Commission, in consultation with the State Lands Commission and the Public Utilities Commission, to determine lands that are suitable for the installation of concentrating solar power energy systems based on specified criteria.   This bill would require the Energy Commission, in consultation with the State Lands Commission, to consult with the United States Secretary of the Interior for possible exchange of lands to be used in the program, and to establish criteria for application processes for project developers of the solar energy parks. The bill would establish a rental fee for a commercial solar energy park development right-of-way grant, and a lease term of not less than 30 years.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Division 7.7 (commencing with Section 8700) of the   Public Resources Code   is repealed.   SEC. 2.   Division 7.7 (commencing with Section 8700) is added to the   Public Resources Code   , to read:   DIVISION 7.7. School Lands CHAPTER 1. SCHOOL LAND BANK ACT 8700. This division shall be known and may be cited as the School Land Bank Act. 8701. The Legislature finds and declares as follows: (a) Past policies of the state have resulted in significant depletion of the inventory of lands granted by the federal government to provide fiscal support for the public school system. (b) It is essential that all remaining school lands and attendant interests be managed and enhanced to provide an economic base for support of the public school system. (c) The commission shall plan and implement all transactions, including exchanges, sales, and acquisitions which would facilitate the management of school land interests for revenue generating purposes. (d) The state, through the commission, shall take all action necessary to fully develop school lands, indemnity interests, and attendant mineral interests into a permanent and productive resource base. (e) It is in the best interest of the state that school lands be managed as a revenue source and it is the intent of the Legislature that fair market value be a primary criterion in determining if proposed uses or dispositions of land should be approved. (f) The consolidation of school land parcels into contiguous holdings is essential to sound and effective management and the power to acquire lands by exchange or purchase is elemental to the consolidation process. 8702. Unless the context otherwise requires, the definitions in this section govern the construction of this division. (a) "Commission" means the State Lands Commission. (b) "Fund" means the School Land Bank Fund. (c) "Trustee" means the State Lands Commission acting in its role as trustee for the School Land Bank Fund. (d) "School land" means land or interests in land granted to the state by an Act of Congress March 3, 1853 (Ch. 145, 10 Stat. 244), for the specific purpose of providing support for the public schools. 8703. Acquisitions may be made by negotiated agreement with, or purchase from, the owners of the outstanding interests. Nothing in this division confers any authority to exercise the power of eminent domain for the purposes of this division, although that power is statutorily vested in the commission. 8704. The trustee shall make all reasonable attempts to acquire the mineral and other subsurface rights in any acquisition pursuant to this division. If the trustee is unable to acquire the mineral and other subsurface rights, the trustee may purchase real property upon the trustee expressly finding that the benefits to be derived from the acquisition are substantial and that acquisition of the property without the subsurface rights is in the best interests of the state for the purposes set forth in this division. 8705. The trustee has the exclusive jurisdiction and authority to administer the fund and the interest in real property acquired pursuant to this division, including the selection, acquisition, and conveyance of real property by the trustee as provided in this division. 8706. The state, in its sovereign capacity, shall accept any conveyance, and the land shall thereafter be held by the state as land of the legal character of school lands subject to the school land trust under the jurisdiction of the commission pursuant to Division 6 (commencing with Section 6001). 8707. The commission shall accept the conveyances on the part of the state and shall authorize their acknowledgment and recordation. 8708. Until expended for acquisitions in accordance with this division, moneys in the fund shall be deposited in the Pooled Money Investment Fund and the interest deposited in the fund. 8709. In addition to the purchase price to be paid, the costs and expenses attributable to the acquisition may be payable from the fund, provided that those costs shall not exceed 5 percent of the expended funds. 8709.5. Expenses attributable to management and remediation efforts on state school lands are payable from the fund. 8710. An action under this division is not subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7 of the Government Code), or the Property Acquisition Law (Part 11 (commencing with Section 15850) of Division 3 of Title 2 of the Government Code). 8711. There is in the State Treasury the School Land Bank Fund, which is hereby created. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are appropriated to the commission for expenditure, without regard to fiscal years, for the purposes of this division. When performing the powers and duties set forth in this division, the commission shall be known as the School Land Bank Trustee. 8712. The trustee may acquire real property or any interest in real property with the objective of facilitating management of school lands for the purpose of generating revenue. 8713. The trustee shall act only at an open, scheduled public meeting, subject to all provisions of Division 6 (commencing with Section 6001) relating to meetings of the commission. The trustee may combine its meeting with the meetings of the commission. 8715. The provisions of this division are not intended as exclusive, and shall not restrict the commission in otherwise meeting any other responsibilities and jurisdiction the commission presently has by law. 8716. The trustee may accept gifts of real property or money for the purposes of this division. CHAPTER 2. LAND EXCHANGES FOR RENEWABLE ENERGY-RELATED PROJECTS 8720. The Legislature finds and declares all of the follows: (a) The high cost of energy is taking a financial toll on California's citizens and economy, as well as making the state more dependent on foreign oil. (b) The use of fossil-fueled energy sources has caused detrimental effects on the environment and human health by polluting the air, soil, and water, as well as contributing to climate change. (c) California is home to abundant renewable energy resources, such as solar, wind, geothermal, and biomass. (d) The State Lands Commission manages on behalf of the State Teachers' Retirement Fund (STRS) hundreds of thousands of acres of school lands, a great deal of which have significant potential for siting renewable energy projects. (e) The State Lands Commission has a duty pursuant to the School Land Bank Act (Chapter 1 (commencing with Section 8700)) to take all action necessary to fully develop school lands into a permanent and productive resource base for the benefit of STRS. (f) A significant amount of school lands are not producing revenue because they are isolated, landlocked parcels, the majority of which are remote desert lands. The consolidation of school land parcels into contiguous holdings would facilitate the sound and effective management of these lands. (g) On October 16, 2008, the State Lands Commission adopted a resolution supporting the environmentally responsible development of school lands for renewable energy-related projects. (h) If school lands are leased for commercial, large-scale renewable energy projects, the state will benefit in the form of reduced carbon emissions, a cleaner and healthier environment, affordable energy, stronger national security, new jobs, and more funding for STRS. (i) It is the policy of the state to promote the advancement, development, assessment, and installation of renewable energy systems on school lands. Any consolidation and development of school lands for renewable energy should be done with assurances that the state's unique and sensitive environment will be protected. 8721. For the purposes of this chapter, "California desert" means the California Desert Conservation Area as described in Section 1781 of Title 43 of the United States Code. 8722. (a) The commission shall make best efforts to enter into a memorandum of agreement by April 1, 2012 with the United States Secretary of the Interior to facilitate land exchanges that consolidate school land parcels into contiguous holdings for renewable energy-related projects. (b) If a memorandum of agreement is entered into, the commission shall make best efforts to consolidate all school land parcels in the California desert into contiguous holdings for renewable energy-related projects. (c) The commission shall report to the Legislature by January 1 of each year on the status of the memorandum of agreement and school land consolidation efforts in the California desert. 8724. (a) Within 240 days of the execution of the memorandum of agreement, the commission shall prepare and submit to the United States Secretary of the Interior a proposal for land exchanges that consolidate all school land parcels in the California desert into contiguous holdings for renewable energy-related projects. In developing the proposal, the commission shall give priority to land exchanges that will facilitate the development of large-scale commercial renewable energy projects. (b) The commission's proposal shall be based on an acre-for-acre exchange with the United States. (c) Notwithstanding subdivision (b), the commission may withhold a school land parcel from an exchange proposal or request additional consideration from the United States Secretary of the Interior if the commission reasonably believes, based on existing and reliable information, that an acre-for-acre exchange would not provide the state with compensation that is equal to or greater than the fair market value of the school land parcel. For the purpose of this subdivision, the commission shall consider the potential renewable energy value of a parcel the commission would receive in the exchange. (d) In preparing the land exchange proposal, the commission shall do both of the following: (1) Consult with the State Energy Resources Conservation and Development Commission to identify areas that are best suited for renewable energy projects because of access to transmission lines, renewable energy resources, and any other relevant factors. (2) Consult with the Department of Fish and Game to identify areas in the California desert meeting both of the following criteria: (i) It is not likely that a renewable energy project would have a significant effect on sensitive environmental habitat or migratory birds in the area. (ii) The area would serve as a potential mitigation area to offset the impacts that renewable energy-related projects may have on the environment. (e) The commission's costs and expenses attributable to the land exchange process may be payable from the fund. (f) The commission may consider counter land exchange proposals from the United States Secretary of the Interior and make additional proposals to the extent that the additional proposals achieve the goals set forth in this chapter. (g) Final approval of a land exchange proposed pursuant to this chapter shall be made by the commission at a properly noticed commission meeting.   SECTION 1.   Chapter 13 (commencing with Section 25990) is added to Division 15 of the Public Resources Code, to read: CHAPTER 13. SOLAR ENERGY PARKS PROGRAM 25990. (a) This chapter shall be known, and may be cited, as the Solar Energy Parks Act. (b) It is the policy of the state to promote a program for solar energy parks on state lands for the advancement, development, assessment, and installation of commercial concentrating solar power energy systems. 25991. (a) By April 1, 2012, the commission and the State Lands Commission shall submit to the Governor both of the following: (1) A determination of federal lands managed by the federal Bureau of Land Management (BLM), and which are not already encumbered by applications or rights of way, that may be suitable for the installation of projects for 10 gigawatts (GW) of commercial concentrating solar power energy systems. (2) A determination of state-owned lands equal in size to the federal lands identified in paragraph (1), and which are not already encumbered by applications or rights of way, that may be exchanged with the BLM lands, which would thereafter become state-owned lands. (b) The commission shall make the determination of site suitability for the installation of commercial concentrating solar power energy systems in consultation with the State Lands Commission and the Public Utilities Commission. (1) A site shall be assessed for all of the following: (A) Existence of high insolarity. (B) Access to water. (C) Access to existing or planned transmission lines and natural gas pipelines. (D) Avoidance of wilderness areas, areas of critical environmental concern, United States Park System lands, and other environmentally sensitive areas. (E) Suitability for a variety of concentrating solar power technologies. (2) Each site identified as suitable for the installation of commercial concentrating solar power systems shall be sufficient for the installation of at least 1 GW. (3) In aggregate, sites determined suitable by the commission, with the concurrence of the State Lands Commission, shall be sufficient for the installation of 10 GW of concentrating solar power. 25992. (a) The commission and the State Lands Commission shall consult with the United States Secretary of the Interior on the implementation of the exchange of lands for concentrating solar energy parks of 10 GW. The commission shall make best efforts to complete the exchange of lands within 180 days after the identification of those lands and formal consultation with the United States Secretary of the Interior. (b) Prior to the transfer of title to the state, the commission, in consultation with the State Lands Commission, shall establish criteria for individual application processes for project developers and shall establish project development milestones to ensure due diligence in the development of the solar energy parks. (c) The commission, in consultation with the State Lands Commission, shall complete all necessary environmental surveys, and compliance and permitting processes for a programmatic right of way pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), within one year of the exchange of lands with the BLM. 25993. (a) The commission shall ensure that all solar energy park project applications submitted by individual developers or applicants pursuant to this chapter are permitted utilizing expedited permitting processes and shall approve or deny lease applications within six months. Any additional costs created by utilizing expedited permitting processes, and any environmental mitigation costs incurred to develop solar power on these lands, shall be recoverable from applicants who are developing projects within the solar energy parks. An application for use of state-owned land may not be approved by the commission unless the applicant has a power purchase agreement with a utility with a term of at least 10 years and a pending or approved application with a permitting authority having jurisdiction to provide all necessary permits for the construction and operation of the solar energy project. (b) The rental fee for a commercial solar energy park development right-of-way grant is established at two hundred dollars ($200) per acre for the first year of operation, increasing 25 percent after the first five years, and increasing 25 percent in the 10th year of the program, to be paid in annual payments commencing on the day of operation. During the development and construction phase of a project, the rental fee shall be waived. A lease for a project within the concentrating solar energy parks program shall be for a term of not less than 30 years. 25994. The commission shall, in consultation with the State Lands Commission, the Public Utilities Commission, the Federal Energy Regulatory Commission, affected utility industries and authorities, and other interested agencies and persons, identify necessary gas and electric transmission upgrades to the identified solar energy parks pursuant to this chapter.