This bill provides that if a county does not have county zoning, then the county mayor may enter into a voluntary agreement for energy infrastructure improvements for clean or renewable energy in the county. The county legislative body must pass a resolution by 2/3 vote authorizing the county mayor to enter into the agreement. The voluntary agreement may impose reasonable terms and conditions for the improvements. Upon entering into the voluntary agreement under this bill, the contracting entity is entitled to the benefits of a vested property right subject to the restrictions of existing law.
This bill also provides that if a county has county zoning, then the county mayor may enter into a voluntary agreement for energy infrastructure improvements for clean or renewable energy in the county. The county legislative body must authorize the county mayor, under the process outlined in the law regarding amendments of zoning ordinance provisions, to enter into the agreement. The voluntary agreement may impose reasonable terms and conditions for the improvements. Upon entering into the voluntary agreement under this bill, the contracting entity is entitled to the benefits of a vested property right subject to the restrictions of existing law.
Before enacting the zoning ordinance or any amendment thereof, present law requires the chief legislative body to hold a public hearing, at least 15 days' notice of the time and place of which must be published in the official municipal journal or in a newspaper of general circulation in the municipality.
This bill provides that upon meeting the notice and hearing requirements of the above provision, a mayor for a municipality or metropolitan government may enter into a voluntary agreement for energy infrastructure improvements for clean or renewable energy in the municipality or metropolitan government. The voluntary agreement may impose reasonable terms and conditions for such improvements. Upon entering into the voluntary agreement under this bill, the contracting entity is entitled to the benefits of a vested property right subject to the restrictions of existing law.
ON MARCH 7, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2424, AS AMENDED.
AMENDMENT #1 rewrites the bill to authorize counties and municipalities to enter into energy siting agreements, as described below.
ENERGY SITING AGREEMENTS
This amendment authorizes a county mayor or municipality to negotiate an energy siting agreement with a developer of an energy project. The county mayor's agreement takes effect upon approval of the county legislative body by resolution and execution by the developer of the energy project. The municipality's agreement takes effect upon approval of the municipal legislative body by resolution and execution by the developer of the energy project. As used in this amendment, "energy project" means energy infrastructure improvements, whether composed of real or personal property, or both, for clean energy or renewable energy, and "energy siting agreement" means a voluntary agreement by and between a county and a developer of energy infrastructure improvements approving the siting in the county of one or more energy projects upon a finding that such an agreement is in the best interest of the county.
This amendment requires an energy siting agreement to specify (i) the duration of the energy siting agreement; (ii) the proposed tract or tracts of land on which the energy project is proposed to be located; (iii) a description of the proposed energy project together with the nature of any allowable modifications to the described or depicted design of the energy project; and (iv) any additional terms determined to be necessary by the county or municipality and the developer.
This amendment authorizes an energy siting agreement to include reductions in setbacks, vegetative buffers, or other visual screening or fencing requirements that would otherwise be imposed on the energy project under existing applicable county or municipal ordinances or resolutions based upon site-specific conditions or a written waiver of such requirements by a landowner or landowners of property adjoining the affected tract of land where the energy project is proposed to be located. Because the characteristics of energy projects may be consistent with agricultural uses, an energy siting agreement may authorize the siting of an energy project in a zoning district intended to be used primarily for agricultural or similar uses or in other rural areas upon a finding by the legislative body of the county or the legislative body of the municipality that the proposed energy project is consistent with present or future agricultural uses in the surrounding area.
This amendment provides that modifications of design standards or conditions included in an energy siting agreement are binding during the vested period on all county or municipal agencies, boards, and commissions with the power to recommend, approve, or disapprove applications for a special exception, use permitted on appeal, conditional use permit, site plan, building permit, or another similar permit or approval required to site, construct, or operate an energy project in the county or municipality.
This amendment prohibits authorizing a county or municipality to take any action that would constitute a de facto prohibition of any form of energy project based solely on the failure of an energy project to be the subject of an energy siting agreement. Additionally, except to the extent expressly authorized in this amendment or another law, an energy siting agreement does not relieve any public agency of actual and timely performance of any obligation or responsibility imposed upon it by law.
VESTED PROPERTY RIGHT
This amendment provides that a vested property right is established with respect to property upon the approval of an energy siting agreement by the legislative body of the local government in which the property is situated. During the vesting period, the locally adopted development standards that are in effect on the date of approval of an energy siting agreement, including any modifications to such standards pursuant to the terms of the energy siting agreement, remain the development standards applicable to that property or building during the vesting period.
This amendment requires the vesting period applicable to an energy siting agreement to be for the following period, unless the energy siting agreement expires or is validly terminated by the local government in accordance with its terms during the vesting period: (i) 10 years where no preliminary or final development plan is required by ordinance; (ii) seven years where no preliminary development plan is required by ordinance; or (iii) 5 years where a preliminary development plan is required by ordinance.
Present law provides that if construction commences during the vesting period, the development standards applicable during the vesting period must remain in effect until the local government has certified final completion of the development or project. However, the total vesting period for the project must not exceed 10 years from the date of the approval of the preliminary development plan unless the local government grants an extension pursuant to an ordinance or resolution. This amendment provides that the 10-year limit does not apply a vested property right established with respect to property upon the approval of an energy siting agreement by the legislative body of the local government in which the property is situated.
Present law provides that in the case of developments which proceed in two or more sections or phases as described in the development plan, there must be a separate vesting period applicable to each section or phase. The development standards that are in effect on the date of approval of the preliminary development plan for the first section or phase of the development must remain the development standards applicable to all subsequent sections or phases of the development. However, the total vesting period for all phases must not exceed 15 years from the date of the approval of the preliminary development plan for the first section or phase unless the local government grants an extension pursuant to an ordinance or resolution. This amendment provides that the 15-year limit does not apply a vested property right established with respect to property upon the approval of an energy siting agreement by the legislative body of the local government in which the property is situated.

Statutes affected:
Introduced: 13-7-101, 13-7-105, 13-7-203
Amended with SA0582 -- 03/07/2024: 13-7-101, 13-7-105, 13-7-203, 13-4-310(d)(2), 13-4-310, 13-4-310(d)(3), 13-4-310(k), 13-3-413(d)(2), 13-3-413, 13-3-413(d)(3), 13-3-413(k)