PA 07-131—sHB 7275

Environment Committee

Appropriations Committee

Finance, Revenue and Bonding Committee

AN ACT CONCERNING THE FACE OF CONNECTICUT

SUMMARY: This act increases grant ceilings for, and makes adjustments to, the Open Space and Watershed Acquisition Grant Program. It also creates a loan program to help municipalities purchase agricultural land.

By law, grants under the Open Space and Watershed Acquisition Grant Program are capped at certain percentages of a desired property's fair market value. The act increases those percentages. It also increases, from 2% to 5%, the percentage of grant funds that the Department of Environmental Protection (DEP) may use for certain administrative expenses related to the program.

The act requires the Department of Agriculture (DOAG) commissioner to administer a program that provides eligible municipalities with loans to purchase agricultural land. The act provides that municipalities (1) are eligible for the loan if they provide at least 20% of the purchase price for the land and (2) may apply for it on a form the DOAG commissioner prescribes. Under the act, the loan term cannot exceed five years and is not subject to interest.

The act establishes the “municipal purchasing of agricultural land account” as a separate, non-lapsing account within the General Fund. It specifies that the account may contain any money the law requires to be deposited in it. The DOAG commissioner must use the account funds to provide municipalities the interest-free agricultural land acquisition loans.

The act authorizes the DOAG commissioner to adopt regulations that establish the criteria for the agricultural land acquisition loans and the terms governing the loans.

It also makes a technical change.

EFFECTIVE DATE: July 1, 2007

OPEN SPACE AND WATERSHED LAND ACQUISITION PROGRAM

By law, this program provides financial assistance to (1) municipalities and nonprofit land conservation organizations to acquire open space and watershed land and (2) water companies to acquire water supply property. The land or watershed must meet certain eligibility criteria (see BACKGROUND).

The law authorizes the DEP commissioner to make Open Space Acquisition and Watershed Acquisition Grants to:

1. a municipality for open space acquisition or for acquisition of land for class I and class II water supply protection;

2. non-profit land conservation organizations for acquisition of land for open space or watershed protection;

3. water companies to acquire land that is eligible to be classified as class I or II land; or

4. a distressed municipality or targeted investment community, or with such a municipality's permission, a nonprofit land conservation organization, to acquire land for open space preservation—the act additionally allows such a municipality or community to also give permission to a water company.

Under prior law, a grant to a municipality was 50% of the land's fair market value or interest. The act increases the amount to 65%. (By law, a grant to a municipality for acquisition of land for class I and class II water supply protection is already capped at 65%. )

The act also increases the cap amount on the percentage of land value:

1. from 50% to 65% for grants to nonprofit land conservation organizations for acquisition of land for open space or watershed protection;

2. from 40% to 65% for grants to water companies to acquire land that is eligible to be classified as class I or II land; and

3. from 65% to 75% for grants to distressed municipalities, targeted investment communities, or the entity they approve for open space acquisition.

BACKGROUND

Class I and II Land

By law, class I land is water company property that is closest to a supply source (e. g. , within 200 feet of a well) or that meets certain geological criteria (e. g. , having a slope of 15% or more). Class II land is other property that is (1) within a watershed or (2) off a watershed but within 150 feet of a reservoir or a stream that flows into a reservoir.

Farmland Preservation Purchase of Development Rights (PDR) Program

The state's primary farmland preservation program is the voluntary Farmland Preservation PDR Program, which allows DOAG to purchase from farmers development rights to preserve prime and important farmland. As of January 3, 2007, the Farmland Preservation Program had preserved 31,782 acres on 228 farms. Farmers may apply to DOAG, which evaluates applications according to regulatory criteria. The program's primary goal is to preserve farmland containing a high percentage of prime farmland soils in established farm communities.

OLR Tracking: KM: SP: PF: TS