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H0500.........................................by RESOURCES AND CONSERVATION STATE LANDS - LEASES - Amends existing law relating to the lease of state lands to revise the definition of the term "commercial purposes" to include fuel cells, low impact hydro, wind, geothermal resources, biomass, cogeneration, sun or landfill gas as the principal source of power for a facility capable of generating not less than twenty-five kilowatts of electricity; and to delete reference to geothermal leases. 02/08 House intro - 1st rdg - to printing 02/11 Rpt prt - to Res/Con 02/20 Rpt out - rec d/p - to 2nd rdg 02/21 2nd rdg - to 3rd rdg 02/22 3rd rdg - PASSED - 63-0-7 AYES -- Anderson, Barrett, Bayer, Bell, Bilbao, Black, Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30)(Stanek), Snodgrass, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(35), Mr. Speaker NAYS -- None Absent and excused -- Andrus, Bedke, Kren, Raybould, Smith(24), Stevenson, Wood(27) Floor Sponsor - Anderson Title apvd - to Senate 02/25 Senate intro - 1st rdg - to Res/Env 03/06 Rpt out - rec d/p - to 2nd rdg 03/07 2nd rdg - to 3rd rdg 03/10 3rd rdg - PASSED - 34-0-1 AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett, Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai(Sagness), McGee, McKague, Pearce, Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk NAYS -- None Absent and excused -- McKenzie Floor Sponsor - Stennett Title apvd - to House 03/11 To enrol - Rpt enrol - Sp signed 03/12 Pres signed - To Governor 03/14 Governor signed Session Law Chapter 115 Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 500 BY RESOURCES AND CONSERVATION COMMITTEE 1 AN ACT 2 RELATING TO LEASE OF STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO FUR- 3 THER DEFINE THE TERM "COMMERCIAL PURPOSES" AND TO DELETE REFERENCE TO GEO- 4 THERMAL LEASES. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR 9 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than 10 those valuable for stone, coal, oil, gas or other minerals, shall be for a 11 longer term than ten (10) years. 12 (2) Notwithstanding any other provisions of law, all state lands may be 13 leased for a period of up to twenty-five (25) years to the federal government, 14 to federal agencies, state agencies, counties, or cities, school districts or 15 political subdivisions when leased for public purposes. Such leases for public 16 purposes may be entered into by negotiation and shall secure a rental amount 17 based on the fair market value of the state land. 18 (3) Notwithstanding any other provisions of law, all state endowment 19 lands may be leased for a period of up to forty-nine (49) years for commercial 20 purposes, or for lands eligible for the federal conservation reserve enhance- 21 ment program (CREP), under such terms and conditions as may be set by the 22 board, provided that, for such leases in excess of ten (10) years, the board 23 consults with the county commissioners of the county in which the lands are 24 located before leasing the lands, and the use for which the land is leased 25 shall be consistent with the local planning and zoning ordinances insofar as 26 is reasonable and practicable. For each lease in excess of ten (10) years, the 27 department shall hold a hearing in the county in which the parcel is located. 28 (4) The term "commercial purposes" means fuel cells, low impact hydro, 29 wind,orgeothermalenergy projects,resources, biomass, cogeneration, sun or 30 landfill gas as the principal source of power with a facility capable of gen- 31 erating not less than twenty-five (25) kilowatts of electricity, industrial 32 enterprises, retail sales outlets, business and professional office buildings, 33 hospitality enterprises, commercial recreational activities, multifamily resi- 34 dential developments and other similar businesses. For purposes of this sec- 35 tion, agricultural leases, grazing leases, oil and gas leases, mineral leases, 36geothermal leases,communication site leases, single family, recreational cot- 37 tage site and homesite leases, and leases for other similar uses, are not con- 38 sidered leases for commercial purposes. The terms fuel cells, low impact 39 hydro, wind, geothermal resources, biomass, cogeneration, sun or landfill gas 40 shall have the same definitions as provided in section 63-3622QQ, Idaho Code. 41 (5) The board may require that all fixed improvements constructed upon 42 land leased for commercial purposes be removed or become the property of the 43 state upon termination of the lease, and that any heirs, encumbrances or 2 1 claims of third parties with respect to any improvements shall be expressly 2 subordinate and subject to the rights of the state under this section. 3 (6) Except forgeothermal,oil and gas, mineral and commercial leases, 4 the lease year shall run from January 1 through December 31, and all leases 5 shall expire on December 31 of the year of expiration. 6 (7) All applications to lease or to renew an existing lease which expires 7 December 31 of any year, shall be filed in the office of the director of the 8 department of lands by the thirtieth day of April preceding the date of such 9 expiration. Such applications will be considered by the state land board and 10 be disposed of in the manner provided by law; except that the board may reject 11 conflicting applications for a lease for commercial purposes if the lessee 12 exercises the preference right to renew clause, and provided such right is 13 specified in the lease. 14 (8) Where conflicts appear upon leases, except for mineral leases which, 15 pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to 16 renew clause, such applications shall be considered as having been filed 17 simultaneously. However, nothing herein shall be construed to prevent the 18 state board of land commissioners from accepting and considering applications 19 for new leases at any time. 20 (9) In case improvements have been made on land while under lease which 21 is expiring, and the former lessee is not the successful bidder, but the land 22 is leased to another, the amount of such improvements shall be paid to the 23 former lessee. The following shall be considered improvements: plowing done 24 within one (1) year, provided no crop has been raised on the plowed land after 25 such plowing, fencing, buildings, cisterns, wells, growing crops and any other 26 asset which shall be considered an improvement by the director. 27 (10) Commercial leases of the state lands shall not be subject to the con- 28 flict auction provisions of section 58-310, Idaho Code. The board may, at its 29 discretion, consider individual applications or call for proposals and sealed 30 bids by public advertisement, and may evaluate said proposals and award the 31 lease to the bidder whose proposal achieves the highest return over the term 32 of the lease and who is capable of meeting such terms and conditions as may be 33 set by the board; in the alternative, the board may call for lease applica- 34 tions by public advertisement and if more than one (1) person files an appli- 35 cation to hold an auction in the same manner as provided in section 58-310, 36 Idaho Code. In all cases, the board must obtain a reasonable rental, based 37 upon fair market value of the state land, throughout the duration of the 38 lease. The board may reject any or all proposals and any or all bids, and may 39 reoffer the lease at a later date if the board determines that the proposals 40 or bids do not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE RS 17834C1 The proposed legislation amends Section 58-307, Idaho Code, to further define the term "commercial purposes" as they apply to leases on school endowment lands. It expands the identified renewable resources allowed to include fuel cells, low impact hydro, sun or landfill gas, as well as wind and geothermal resources. Revision of Section 58-307, Idaho Code, will broaden the definition of renewable energy projects to give consistency in Code, and establish the same definitions as provided in Section 63-3622 QQ, Idaho Code. FISCAL NOTE There will be no negative fiscal impact from the passage of this legislation. Contact Name: Representative Anderson Phone: 332 1000 Representative Nonini Speaker Denney Representative Mike Moyle Representative Scott Bedke Representative Ken Roberts Representative George Eskridge Representative Frank Henderson Representative Cliff Bayer STATEMENT OF PURPOSE/FISCAL NOTE H 500