Bill Text: NJ A1299 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes State Agriculture Development Committee program preserving farmland in danger of being developed for warehouse purposes or other high-density development projects; appropriates $50 million from Global Warming Solutions Fund.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A1299 Detail]
Download: New_Jersey-2024-A1299-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Establishes State Agriculture Development Committee program preserving farmland in danger of being developed for warehouse purposes or other high-density development projects; appropriates $50 million from Global Warming Solutions Fund.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning farmland preservation, supplementing P.L.1983, c.32 (C.4:1C-11 et al.), amending P.L.2007, c.340, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in sections 1 through 8 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Agricultural or horticultural land" or "land" means land deemed actively devoted to agricultural or horticultural use pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).
"High-density development project" means a development project as the term is defined in section 3 of P.L.1983, c.32 (C.4:1C-13) and designated as a high-density development project pursuant to rules and regulations adopted pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Warehouse" means a building that stores cargo, goods, or products on a short-term or long-term basis for later distribution to businesses or retail customers.
2. (New section) a. The State Agriculture Development Committee shall purchase and acquire, in the name of the State, fee simple titles to, or development easements on, land, in accordance with sections 3 through 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), to preserve agricultural or horticultural land that is in danger of development for warehouse purposes or any other high-density development project.
b. There is established in the Department of Agriculture a special, nonlapsing fund to be known as the "Protection of Farmland from Development Fund." Moneys in the fund shall be invested in permitted investments or shall be held in interest-bearing accounts in those depositories as the State Treasurer may select, and may be invested and reinvested in permitted investments or as other trust funds in the custody of the State Treasurer in the manner provided by law.
The fund shall be administered by the committee and shall be credited with:
(1) moneys appropriated pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), from the "Global Warming Solutions Fund," established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50);
(2) any other moneys appropriated by the Legislature for the purposes of subsection a. of this section; and
(3) all interest or other income or earnings derived from the investment or reinvestment of moneys in the fund.
c. Moneys in the fund shall be used solely for the acquisition of fee simple titles to, or development easements on, land pursuant to sections 3 through 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. Annually, the committee shall recommend to the Department of Agriculture the amount of additional funds required for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), if any, to be included in the department's annual budget request.
3. (New section) a. A landowner who wishes to sell agricultural or horticultural land for warehouse development or for any other high-density development project, or if such land has been sold for such development but construction has not commenced on the land as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the landowner shall give to the committee written notice, by certified mail, that a purchase offer for the land has been made or a contract of sale has been executed. The notice shall:
(1) set forth the terms and conditions of the purchase offer or the executed contract of sale and name the proposed purchaser or any assignee thereof;
(2) present the landowner's offer to sell fee simple absolute interest in the land or a development easement on the development rights for the land to the committee, including the landowner's offer price, which, in the opinion of the landowner, represents a fair value of the development potential of the land for the proposed warehouse development or other proposed high-density development project, or is the actual price the purchaser proposing the development has offered or paid for the land; and
(3) any other information that the committee may reasonably require by rule or regulation adopted pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The committee shall have the first right and option to purchase the land in fee simple or the development rights to the land upon substantially similar terms and conditions, which right and option shall be exercised as provided by this section.
b. Within 30 days following the date of receipt of a notice pursuant to subsection a. of this section, the committee shall determine, in accordance with section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), if the land is suitable for preservation and in need of protection from development, and, if so determined, the committee shall give notice of its intent to exercise its first right and option to the landowner. Within 60 days after the expiration of the 30-day period for the committee to choose to exercise its first right and option, the committee shall submit its offer to match the terms in the notice to the landowner or make a counter-offer based on its valuation of the land and its development rights pursuant to subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), whichever is greater.
c. If no notice is given within the 30-day period that the committee intends to exercise the first right and option, or if no offer is submitted to the landowner within the 60-day period following the 30-day period, the landowner may at the expiration of the 30-day period or the 60-day period, as the case may be, proceed to:
(1) convey the land to the proposed purchaser named in the executed contract of sale upon the terms and conditions specified therein, or to the proposed purchaser's assignee as provided in that executed contract of sale;
(2) accept or negotiate the terms and conditions of a contract of sale with the proposed purchaser for development of the land; or
(3) commence construction of the development project on the land.
d. If the owner fails to convey the land to the proposed purchaser or an assignee thereof named in the notice issued pursuant to subsection a. of this section, the land shall again become subject to the committee's first right and option to purchase as provided by this section. A landowner may elect to convey the land to the committee upon the exercise of the committee's first right and option to purchase without breaching the original contract of sale, notwithstanding that the committee's offer is different than that in the original executed contract of sale.
e. A certificate executed and acknowledged by the committee stating that the provisions of this section have been met by the landowner, and that the first right and option to purchase of the committee has terminated, shall be conclusive upon the committee and the owner in favor of all persons who rely thereon in good faith, and this certificate shall be furnished to any landowner who has complied with the provisions of this section.
4. (New section) a. In making its determination concerning agricultural or horticultural land and its suitability for preservation or need for protection from development pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the committee shall consider:
(1) if it is demonstrated to the committee's satisfaction that the land is in danger of development for warehouse purposes or any other high-density development project;
(2) the regional significance of the land as agricultural or horticultural land and the impact that the loss of the land as agricultural or horticultural land would have on the quality of life of nearby residents and the State's agricultural industry;
(3) the likelihood that the development of the land would negatively impact the maintenance of a positive agricultural business climate in the municipality or county in which the land is located and that of adjacent municipalities;
(4) the likelihood that the development may adversely affect the environment or ecology of the municipality and county in which the land is located and that of adjacent municipalities;
(5) the proximity of the land to preserved agricultural lands, lands preserved for recreation and conservation purposes, aquifer recharge areas, other lands subject to development or conservation easements, and historic districts and historic preservation sites; and
(6) the capacity of the road infrastructure in the municipality and county in which the land is located and that of adjacent municipalities.
b. When evaluating the landowner's offer price, the committee may:
(1) use the difference between the value of the undeveloped land and the value of the land, if developed, or use the municipal average of the value of the development rights of properties in the municipality, in order to calculate the value of the development rights of the land, provided that the higher valuation from these two methods of calculation is offered to the landowner;
(2) include the value of avoided carbon dioxide emissions caused by the purchase of development rights in the sale price; and
(3) include the value of avoiding the negative impacts of the proposed development on the agricultural community and residents of the municipality and county in which the land is located.
5. (New section) Any land acquired by the committee pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be held in the name of the State and shall be offered for sale by the committee with agricultural deed restrictions for farmland preservation purposes. Land sold by the committee with agricultural deed restrictions for farmland preservation purposes pursuant to this section shall be exempt from the provisions of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), provided that the terms of the sale and use of the land are consistent with the development easement and agricultural deed restrictions for farmland preservation purposes placed on the land. All agricultural deed restrictions for farmland preservation purposes shall be filed and recorded with the county clerk of the county in which the land is located in the same manner as a deed.
6. (New section) a. The title to land for which the development rights have been acquired by the committee pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall have recorded as a development easement to the deed the agricultural deed restrictions for farmland preservation purposes, a permanent restriction from nonagricultural development, and a restriction that any subdivision of the land would result in parcels not lesser in size than the minimum size required for qualification for farmland assessment pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.). All development easements shall be filed and recorded with the county clerk of the county in which the land is located in the same manner as a deed.
b. The landowner retains all other rights and responsibilities associated with the land, including the ability to sell the land, provided that the terms of the sale and use of the land are consistent with the development easement and agricultural deed restrictions for farmland preservation purposes placed on the land.
7. (New section) The committee shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, guidelines as to what constitutes high-density development in addition to development of land for a warehouse.
8. (New section) Notwithstanding any other law, or rule or regulation adopted pursuant thereto, to the contrary, there is appropriated the sum of $50,000,000, and any additional amounts as may, from time to time, be required, from moneys received as a result of any sale, exchange or other conveyance of allowances through a greenhouse gas emissions allowance trading program pursuant to P.L.2007, c.340 (C.26:2C-45 et seq.) or otherwise received from participation in the Regional Greenhouse Gas Initiative pursuant to P.L.2007, c.340 (C.26:2C-45 et al.) and deposited into the "Global Warming Solutions Fund" established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50), to the State Agriculture Development Committee for the purposes of preserving agricultural or horticultural land threatened by development for warehouse purposes or any other high-density development project pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
9. Section 7 of P.L.2007, c.340 (C.26:2C-51) is amended to read as follows:
7. a. The agencies administering programs established pursuant to this section shall maximize coordination in the administration of the programs to avoid overlap between the uses of the fund prescribed in this section.
b. [Moneys in the fund, after] After appropriation annually for payment of administrative costs authorized pursuant to subsection c. of this section [,] and appropriations authorized pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill), moneys in the fund shall be annually appropriated and used for the following purposes:
(1) Sixty percent shall be allocated to the New Jersey Economic Development Authority to provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support end-use energy efficiency projects and new, efficient electric generation facilities that are state of the art, as determined by the department, including but not limited to energy efficiency and renewable energy applications, to develop combined heat and power production and other high efficiency electric generation facilities, to stimulate or reward investment in the development of innovative carbon emissions abatement technologies with significant carbon emissions reduction or avoidance potential, to develop qualified offshore wind projects pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), and to provide financial assistance to manufacturers of equipment associated with qualified offshore wind projects. The authority, in consultation with the board and the department, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, which criteria shall include the ability of the project to result in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand, provided, however, that neither the development of a new combined heat and power production facility, nor an increase in the electrical and thermal output of an existing combined heat and power production facility, shall be subject to the requirement to demonstrate such a measurable reduction; and (c) the process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability;
(2) Twenty percent shall be allocated to the board to support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban areas, including efforts to address heat island effect and reduce impacts on ratepayers attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.) or to support the light duty plug-in electric vehicle incentive program and the incentive program for in-home electric vehicle service equipment established pursuant to sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and C.48:25-6). For the purposes of this paragraph, the board, in consultation with the authority and the department, shall determine the types of programs to be supported and the mechanism by which to quantify benefits to ensure that the supported programs result in a measurable reduction in energy demand or accomplishment of the plug-in electric vehicle goals established pursuant to section 3 of P.L.2019, c.362 (C.48:25-3);
(3) Ten percent shall be allocated to the department to support programs designed to promote local government efforts to plan, develop and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand. For the purpose of conducting any program pursuant to this paragraph, the department, in consultation with the authority and the board, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to local governments; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance; (c) the process by which grants or other forms of financial assistance can be applied for and awarded; and (d) a mechanism by which to quantify benefits; and
(4) Ten percent shall be allocated to the department to support programs that enhance the stewardship and restoration of the State's forests and tidal marshes that provide important opportunities to sequester or reduce greenhouse gases.
c. (1) The department may use up to four percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the department in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(2) The board may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(3) The New Jersey Economic Development Authority may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the authority in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases.
d. The State Comptroller shall conduct or supervise independent audit and fiscal oversight functions of the fund and its uses.
(cf: P.L.2019, c.362, s.12)
10. This act shall take effect immediately.
STATEMENT
This bill establishes a farmland preservation program under which the State Agriculture Development Committee (SADC) would purchase and acquire, in the name of the State, fee simple titles to, or development easements on, agricultural or horticultural land, i.e., farmland, that is in danger of development for warehouse purposes or any other high-density development project.
The bill would require a landowner who wishes to sell, for warehouse development or for any other high-density development project, agricultural or horticultural land, or if such land has been sold for such development but construction has not commenced on the land as of the effective date of the bill, to provide written notice, by certified mail, to the SADC that a purchase offer for the land has been made or a contract of sale has been executed. The SADC would be required, within time periods specified in the bill, to: 1) determine if the land is suitable for preservation and in need of protection from development; and 2) if so determined, offer to the landowner to match the landowner's terms or make a counter-offer, based on the committee's valuation of the land and its development rights, whichever is greater.
Factors to be considered by the SADC when making the determination and valuation are specified in section 4 of the bill and include the regional significance of the land as agricultural or horticultural land, the impact that the loss of the land as agricultural or horticultural land would have on the quality of life of nearby residents and the State's agricultural industry, and the value of avoiding the negative impacts of the proposed development on the agricultural community and residents of the municipality and county in which the land is located, and that of adjacent municipalities.
The bill provides that any land acquired by the SADC would be held in the name of the State and offered for sale by the SADC with agricultural deed restrictions for farmland preservation purposes. When the development rights on the land have been acquired by the SADC, the bill provides that a development easement would be recorded with the title for the land establishing the agricultural deed restrictions for farmland preservation purposes, a permanent restriction from nonagricultural development, a restriction that any subdivision of the land would result in parcels not lesser in size than the minimum size required for qualification for farmland assessment. In either case, the land could be sold in the future, provided that the terms of the sale and use of the land are consistent with the development easement or any agricultural deed restrictions placed on the land. All agricultural deed restrictions for farmland preservation purposes and development easements would be filed and recorded with the county clerk of the county in which the land is located in the same manner as a deed.
The bill appropriates $50 million from moneys in the "Global Warming Solutions Fund," established pursuant to section 6 of P.L. 2007, c.340 (C.26:2C-50), for the program established by the bill. These moneys would be deposited into a new fund, created by the bill, called the "Protection of Farmland from Development Fund."
