Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2528Introduced by Assembly Member ArambulaFebruary 13, 2024An act to amend Section 51283 of the Government Code, relating to local government. add Sections 51282.8 and 51297.05 to the Government Code, relating to local government.LEGISLATIVE COUNSEL'S DIGESTAB 2528, as amended, Arambula. Williamson Act contracts: cancellation fees. 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 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 prohibit the imposition of a cancellation fee.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.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 to agricultural use, as specified. Existing law authorizes the cancellation of a contract under certain circumstances. Existing law requires the city or county to execute and record a certificate of cancellation of contract if the city and county approves a cancellation of a contract. Existing law authorizes the city or county to charge a cancellation fee in an amount equal to 12.5% of the cancellation valuation of the property. Existing law requires these cancellation fees to be transmitted by the county treasurer to the Controller upon collection within 30 days of the execution of a certificate of cancellation of contract, and specifies that these cancellation fees are to be deposited in the General Fund, except as specified.This bill would instead require that the cancellation fees be transmitted by the county treasurer to the Controller within 45 days of the execution of a certification of cancellation of contract.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YESNO Local Program: NO Bill TextThe 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 Californias electricity is renewable and for California to provide 100 percent of its retail sales from renewable 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 states 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 Californias 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 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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 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 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.(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) 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) 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.(e) 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.SECTION 1.Section 51283 of the Government Code is amended to read:51283.(a)Prior to any action by the board or council giving tentative approval to the cancellation of any contract, the county assessor of the county in which the land is located shall determine the current fair market value of the land as though it were free of the contractual restriction. The assessor shall certify to the board or council the cancellation valuation of the land for the purpose of determining the cancellation fee. At the same time, the assessor shall send a notice to the landowner indicating the current fair market value of the land as though it were free of the contractual restriction and advise the parties, that upon their request, the assessor shall provide all information relevant to the valuation, excluding third-party information. If any information is confidential or otherwise protected from release, the department and the landowner shall hold it as confidential and return or destroy any protected information upon termination of all actions relating to valuation or cancellation of the contract on the property. The notice shall also advise the landowner and the department of the opportunity to request formal review from the assessor.(b)Prior to giving tentative approval to the cancellation of any contract, the board or council shall determine and certify to the county auditor the amount of the cancellation fee that the landowner shall pay the county treasurer upon cancellation. That fee shall be an amount equal to 1212 percent of the cancellation valuation of the property.(c)If it finds that it is in the public interest to do so, the board or council may waive any payment or any portion of a payment by the landowner, or may extend the time for making the payment or a portion of the payment contingent upon the future use made of the land and its economic return to the landowner for a period of time not to exceed the unexpired period of the contract, had it not been canceled, if all of the following occur:(1)The cancellation is caused by an involuntary transfer or change in the use which may be made of the land and the land is not immediately suitable, nor will be immediately used, for a purpose which produces a greater economic return to the owner.(2)The board or council has determined that it is in the best interests of the program to conserve agricultural land use that the payment be either deferred or is not required.(3)The waiver or extension of time is approved by the Secretary of the Natural Resources Agency. The secretary shall approve a waiver or extension of time if the secretary finds that the granting of the waiver or extension of time by the board or council is consistent with the policies of this chapter and that the board or council complied with this article. In evaluating a request for a waiver or extension of time, the secretary shall review the findings of the board or council, the evidence in the record of the board or council, and any other evidence the secretary may receive concerning the cancellation, waiver, or extension of time.(d)The first five million dollars ($5,000,000) of revenue paid to the Controller pursuant to subdivision (e) in the 200405 fiscal year, and any other amount as approved in the final Budget Act for each fiscal year thereafter, shall be deposited in the Soil Conservation Fund, which is continued in existence. The money in the fund is available, when appropriated by the Legislature, for the support of all of the following:(1)The cost of the farmlands mapping and monitoring program of the Department of Conservation pursuant to Section 65570.(2)The soil conservation program identified in Section 614 of the Public Resources Code.(3)Program support costs of this chapter as administered by the Department of Conservation.(4)Program support costs incurred by the Department of Conservation in administering the open-space subvention program (Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2).(5)The costs to the Department of Conservation for administering Section 51250.(6)When available, after funding the duties of the Department of Conservation pursuant to paragraphs (1) through (5), inclusive, program support costs incurred by the department in carrying out the duties of the department pursuant to Sections 65565 and 66565.1.(e)When cancellation fees required by this section are collected, they shall be transmitted by the county treasurer to the Controller and deposited in the General Fund, except as provided in subdivision (d) of this section and subdivision (b) of Section 51283.1. The funds collected by the county treasurer with respect to each cancellation of a contract shall be transmitted to the Controller within 45 days of the execution of a certificate of cancellation of contract by the board or council, as specified in subdivision (b) of Section 51283.4.(f)It is the intent of the Legislature that fees paid to cancel a contract do not constitute taxes but are payments that, when made, provide a private benefit that tends to increase the value of the property. Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2528Introduced by Assembly Member ArambulaFebruary 13, 2024An act to amend Section 51283 of the Government Code, relating to local government. add Sections 51282.8 and 51297.05 to the Government Code, relating to local government.LEGISLATIVE COUNSEL'S DIGESTAB 2528, as amended, Arambula. Williamson Act contracts: cancellation fees. 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 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 prohibit the imposition of a cancellation fee.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.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 to agricultural use, as specified. Existing law authorizes the cancellation of a contract under certain circumstances. Existing law requires the city or county to execute and record a certificate of cancellation of contract if the city and county approves a cancellation of a contract. Existing law authorizes the city or county to charge a cancellation fee in an amount equal to 12.5% of the cancellation valuation of the property. Existing law requires these cancellation fees to be transmitted by the county treasurer to the Controller upon collection within 30 days of the execution of a certificate of cancellation of contract, and specifies that these cancellation fees are to be deposited in the General Fund, except as specified.This bill would instead require that the cancellation fees be transmitted by the county treasurer to the Controller within 45 days of the execution of a certification of cancellation of contract.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YESNO Local Program: NO Amended IN Assembly March 18, 2024 Amended IN Assembly March 18, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2528 Introduced by Assembly Member ArambulaFebruary 13, 2024 Introduced by Assembly Member Arambula February 13, 2024 An act to amend Section 51283 of the Government Code, relating to local government. add Sections 51282.8 and 51297.05 to the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 2528, as amended, Arambula. Williamson Act contracts: cancellation fees. 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 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 prohibit the imposition of a cancellation fee.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.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 to agricultural use, as specified. Existing law authorizes the cancellation of a contract under certain circumstances. Existing law requires the city or county to execute and record a certificate of cancellation of contract if the city and county approves a cancellation of a contract. Existing law authorizes the city or county to charge a cancellation fee in an amount equal to 12.5% of the cancellation valuation of the property. Existing law requires these cancellation fees to be transmitted by the county treasurer to the Controller upon collection within 30 days of the execution of a certificate of cancellation of contract, and specifies that these cancellation fees are to be deposited in the General Fund, except as specified.This bill would instead require that the cancellation fees be transmitted by the county treasurer to the Controller within 45 days of the execution of a certification of cancellation of contract. 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 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 prohibit the imposition of a cancellation fee. 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. 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 to agricultural use, as specified. Existing law authorizes the cancellation of a contract under certain circumstances. Existing law requires the city or county to execute and record a certificate of cancellation of contract if the city and county approves a cancellation of a contract. Existing law authorizes the city or county to charge a cancellation fee in an amount equal to 12.5% of the cancellation valuation of the property. Existing law requires these cancellation fees to be transmitted by the county treasurer to the Controller upon collection within 30 days of the execution of a certificate of cancellation of contract, and specifies that these cancellation fees are to be deposited in the General Fund, except as specified. This bill would instead require that the cancellation fees be transmitted by the county treasurer to the Controller within 45 days of the execution of a certification of cancellation of contract. ## Digest Key ## Bill Text 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 Californias electricity is renewable and for California to provide 100 percent of its retail sales from renewable 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 states 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 Californias 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 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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 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 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.(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) 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) 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.(e) 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.SECTION 1.Section 51283 of the Government Code is amended to read:51283.(a)Prior to any action by the board or council giving tentative approval to the cancellation of any contract, the county assessor of the county in which the land is located shall determine the current fair market value of the land as though it were free of the contractual restriction. The assessor shall certify to the board or council the cancellation valuation of the land for the purpose of determining the cancellation fee. At the same time, the assessor shall send a notice to the landowner indicating the current fair market value of the land as though it were free of the contractual restriction and advise the parties, that upon their request, the assessor shall provide all information relevant to the valuation, excluding third-party information. If any information is confidential or otherwise protected from release, the department and the landowner shall hold it as confidential and return or destroy any protected information upon termination of all actions relating to valuation or cancellation of the contract on the property. The notice shall also advise the landowner and the department of the opportunity to request formal review from the assessor.(b)Prior to giving tentative approval to the cancellation of any contract, the board or council shall determine and certify to the county auditor the amount of the cancellation fee that the landowner shall pay the county treasurer upon cancellation. That fee shall be an amount equal to 1212 percent of the cancellation valuation of the property.(c)If it finds that it is in the public interest to do so, the board or council may waive any payment or any portion of a payment by the landowner, or may extend the time for making the payment or a portion of the payment contingent upon the future use made of the land and its economic return to the landowner for a period of time not to exceed the unexpired period of the contract, had it not been canceled, if all of the following occur:(1)The cancellation is caused by an involuntary transfer or change in the use which may be made of the land and the land is not immediately suitable, nor will be immediately used, for a purpose which produces a greater economic return to the owner.(2)The board or council has determined that it is in the best interests of the program to conserve agricultural land use that the payment be either deferred or is not required.(3)The waiver or extension of time is approved by the Secretary of the Natural Resources Agency. The secretary shall approve a waiver or extension of time if the secretary finds that the granting of the waiver or extension of time by the board or council is consistent with the policies of this chapter and that the board or council complied with this article. In evaluating a request for a waiver or extension of time, the secretary shall review the findings of the board or council, the evidence in the record of the board or council, and any other evidence the secretary may receive concerning the cancellation, waiver, or extension of time.(d)The first five million dollars ($5,000,000) of revenue paid to the Controller pursuant to subdivision (e) in the 200405 fiscal year, and any other amount as approved in the final Budget Act for each fiscal year thereafter, shall be deposited in the Soil Conservation Fund, which is continued in existence. The money in the fund is available, when appropriated by the Legislature, for the support of all of the following:(1)The cost of the farmlands mapping and monitoring program of the Department of Conservation pursuant to Section 65570.(2)The soil conservation program identified in Section 614 of the Public Resources Code.(3)Program support costs of this chapter as administered by the Department of Conservation.(4)Program support costs incurred by the Department of Conservation in administering the open-space subvention program (Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2).(5)The costs to the Department of Conservation for administering Section 51250.(6)When available, after funding the duties of the Department of Conservation pursuant to paragraphs (1) through (5), inclusive, program support costs incurred by the department in carrying out the duties of the department pursuant to Sections 65565 and 66565.1.(e)When cancellation fees required by this section are collected, they shall be transmitted by the county treasurer to the Controller and deposited in the General Fund, except as provided in subdivision (d) of this section and subdivision (b) of Section 51283.1. The funds collected by the county treasurer with respect to each cancellation of a contract shall be transmitted to the Controller within 45 days of the execution of a certificate of cancellation of contract by the board or council, as specified in subdivision (b) of Section 51283.4.(f)It is the intent of the Legislature that fees paid to cancel a contract do not constitute taxes but are payments that, when made, provide a private benefit that tends to increase the value of the property. The people of the State of California do enact as follows: ## 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 Californias electricity is renewable and for California to provide 100 percent of its retail sales from renewable 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 states 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 Californias 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. 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 Californias electricity is renewable and for California to provide 100 percent of its retail sales from renewable 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 states 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 Californias 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. SECTION 1. The Legislature finds and declares all of the following: ### SECTION 1. (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 Californias electricity is renewable and for California to provide 100 percent of its retail sales from renewable 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 states 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 Californias 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 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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. 2. Section 51282.8 is added to the Government Code, to read: ### SEC. 2. 51282.8. (a) The 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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. 51282.8. (a) The 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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. 51282.8. (a) The 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 as high or medium priority under Californias 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.(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) 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) 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.(e) 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. 51282.8. (a) The 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 as high or medium priority under Californias 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. (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) 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) 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. (e) 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 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 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.(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) 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) 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.(e) 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: ### SEC. 3. 51297.05. (a) The 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 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.(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) 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) 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.(e) 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. 51297.05. (a) The 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 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.(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) 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) 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.(e) 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. 51297.05. (a) The 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 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.(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) 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) 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.(e) 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. 51297.05. (a) The 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 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. (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) 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) 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. (e) 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. (a)Prior to any action by the board or council giving tentative approval to the cancellation of any contract, the county assessor of the county in which the land is located shall determine the current fair market value of the land as though it were free of the contractual restriction. The assessor shall certify to the board or council the cancellation valuation of the land for the purpose of determining the cancellation fee. At the same time, the assessor shall send a notice to the landowner indicating the current fair market value of the land as though it were free of the contractual restriction and advise the parties, that upon their request, the assessor shall provide all information relevant to the valuation, excluding third-party information. If any information is confidential or otherwise protected from release, the department and the landowner shall hold it as confidential and return or destroy any protected information upon termination of all actions relating to valuation or cancellation of the contract on the property. The notice shall also advise the landowner and the department of the opportunity to request formal review from the assessor. (b)Prior to giving tentative approval to the cancellation of any contract, the board or council shall determine and certify to the county auditor the amount of the cancellation fee that the landowner shall pay the county treasurer upon cancellation. That fee shall be an amount equal to 1212 percent of the cancellation valuation of the property. (c)If it finds that it is in the public interest to do so, the board or council may waive any payment or any portion of a payment by the landowner, or may extend the time for making the payment or a portion of the payment contingent upon the future use made of the land and its economic return to the landowner for a period of time not to exceed the unexpired period of the contract, had it not been canceled, if all of the following occur: (1)The cancellation is caused by an involuntary transfer or change in the use which may be made of the land and the land is not immediately suitable, nor will be immediately used, for a purpose which produces a greater economic return to the owner. (2)The board or council has determined that it is in the best interests of the program to conserve agricultural land use that the payment be either deferred or is not required. (3)The waiver or extension of time is approved by the Secretary of the Natural Resources Agency. The secretary shall approve a waiver or extension of time if the secretary finds that the granting of the waiver or extension of time by the board or council is consistent with the policies of this chapter and that the board or council complied with this article. In evaluating a request for a waiver or extension of time, the secretary shall review the findings of the board or council, the evidence in the record of the board or council, and any other evidence the secretary may receive concerning the cancellation, waiver, or extension of time. (d)The first five million dollars ($5,000,000) of revenue paid to the Controller pursuant to subdivision (e) in the 200405 fiscal year, and any other amount as approved in the final Budget Act for each fiscal year thereafter, shall be deposited in the Soil Conservation Fund, which is continued in existence. The money in the fund is available, when appropriated by the Legislature, for the support of all of the following: (1)The cost of the farmlands mapping and monitoring program of the Department of Conservation pursuant to Section 65570. (2)The soil conservation program identified in Section 614 of the Public Resources Code. (3)Program support costs of this chapter as administered by the Department of Conservation. (4)Program support costs incurred by the Department of Conservation in administering the open-space subvention program (Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2). (5)The costs to the Department of Conservation for administering Section 51250. (6)When available, after funding the duties of the Department of Conservation pursuant to paragraphs (1) through (5), inclusive, program support costs incurred by the department in carrying out the duties of the department pursuant to Sections 65565 and 66565.1. (e)When cancellation fees required by this section are collected, they shall be transmitted by the county treasurer to the Controller and deposited in the General Fund, except as provided in subdivision (d) of this section and subdivision (b) of Section 51283.1. The funds collected by the county treasurer with respect to each cancellation of a contract shall be transmitted to the Controller within 45 days of the execution of a certificate of cancellation of contract by the board or council, as specified in subdivision (b) of Section 51283.4. (f)It is the intent of the Legislature that fees paid to cancel a contract do not constitute taxes but are payments that, when made, provide a private benefit that tends to increase the value of the property.