House Bill No. 638, introduced by Representative Coates, establishes a framework for imposing agricultural conversion fees on large-scale solar development projects with a footprint of ten acres or more. The bill authorizes the Department of Agriculture and Forestry to implement these fees as part of a letter of clearance process, which is necessary for solar developments. The department, in consultation with the LSU AgCenter, is tasked with creating rules to determine an annual per-acre fee that reflects the impact of converting agricultural resources for solar energy production. The fee calculation may consider factors such as average yield per acre and specific commodities like sugarcane, corn, and timber.

Additionally, the bill creates a Solar Conversion Fund within the state treasury, where all collected fees will be deposited after being credited to the Bond Security and Redemption Fund. The funds will be used exclusively for covering the costs associated with the letter of clearance process and for mitigating the loss of agricultural resources due to solar development. The bill will only take effect if another related bill, HB 615, is enacted during the same legislative session.