June 13, 2017 Steal My Sunshine: Concerns for Net Metering Applications Under the Board s New Rule 5.100
No. 1: Change in Focus Vermont solar hits peak net-metering in 2014-2016 Board and VT Legislature determine that costs of 172 MW of NM is chiefly being passed on to ratepayers and utilities. Revised statute sets neutral tone in 8010(a): A customer may install and operate a NM system in accordance with this section and the rules New rule 5.101 starts with 248a prohibition language: C. No person may commence site preparation for or construction of a net-metering system or convert an existing plant into a net-metering system without first obtaining a CPG under this Rule D. In the event that any portion of this Rule is found by a court of competent jurisdiction to be illegal or void, the remainder is unaffected and continues in full force and effect. New Rule contains part V: Compliance proceeding where complaint is filed by any member of the public or Board. Board changes role from facilitator to goaltender 7/5/2017 2
No. 2: Advance Notice Changes Requirement that for all projects (not just <150kW), must provide sufficient detail to afford the recipient reasonable notice of the nature of the project so that the recipient is able to make an informed judgement as to any potential impact of the construction or operation of the project on any interest of the recipient that is within the Board s jurisdiction to address. (5.106(C)(3), 5.107(B(3)). Site plans must be included with advance notice. If within 180 days of advance notice, the applicant has not filed a complete application that fully complies with the filing requirements of this Rule, the submission will be treated as withdrawn without further action required by the Board. QUESTION: What is fully comply does that mean administratively complete enough? PROBLEM: Advance notice process is boxed in to time: if Town has not provided recommendations, or utility I/C letter not received, must file nevertheless on day 180 to preserve rights. 7/5/2017 3
No. 3: Service Headaches Certified mail can vary from 1 to 5 business days. Can send to a PO Box but USPSwill require box holder to come to sign. Email service requires proof that the recipient acknowledged and accepted this form of service documentation will be critical. Email service to entities mandatory problem with Section 248a filings earlier in 2017. NOTE: Adjoining landowners no longer just receive a notice of application must receive a complete copy. 5.106(F)(1); 5.107(E) Extension language: Board will grant reasonable extensions of time for responses / comments if applicant fails to cause timely service of copies of an application. 7/5/2017 4
No. 4: Up Front I/C Letters 5.107(C)(10)(a) For NM systems greater than 150 kw, the applicant must file a letter from the electric co. stating that the proposed system may be safely interconnected with the company s grid, and describing all improvements to the grid necessary to interconnect. 5.107(C)(10)(b) For NM systems between 50kW to 150 kw, no I/C letter needed; however, electric co can file letter by day 31 (!) after completeness determination raising concerns. Electric co letter must contain recommendation for resolution (no type of cost limit or constraint). Board will not issue CPG until stability / reliability letter from electric co has been filed with Board, describing all improvements necessary to interconnect. All disputes run through separate dispute resolution process under Rule 5.500 CPG is on hold in the interim. 7/5/2017 5
No. 4: Post-Filing I/C Letters (5kW to 50kW) No up front I/C letter needed in advance notice packet. 5.106(H): If electric co finds adverse effect on system stability or reliability, electric co must raise concerns by day 31 (!) following Board s completeness determination. Electric co must include recommendation for resolution. If concern is raised, NO CPG will be issued until electric co states that concern has been addressed (incl. all improvements to the grid necessary to interconnect), or Board finds safe interconnection. Dispute must be resolved using Rule 5.500 PROBLEM 1: I/C issues can hold up a CPG indefinitely while Rule 5.500 dispute is pending. There are plenty of specific timelines for electric co and applicant to respond to information submissions, but nothing binding on Board for timing to resolve dispute. PROBLEM 2: Concern letter from electric co could be weaponized by other project opponents. 7/5/2017 6
No. 5: New Site Plan Requirements Contained in 5.106(D)(5), 5.107(C)(6), also 5.113 (setbacks) Some items of concern to work through : For the 15kW -50kW in 5.106, approx. setback distances from approx. prop. boundaries to the corner of the closest project-related structure For the 50kW -499kW in 5.107, approx. setback distances from approx. prop. boundaries to the corner of the nearest project-related structure Significant? New definition of limits of disturbance for vegetation clearing purposes: includes decomm, access road, utility lines, operational clearing / management. the approved site plan from any Act 250 Land use Permit applicable to the host parcel. not clear which one if multiple. Wetland delineation: consultant must be a qualified consultant, but there are no longer lists. New 150 setback to significant wetlands has been quelched. Setback agreement: not explicitly stated, but Bdcan approve an agreement to smaller setback among applicant, municipal legislative body, and each owner of property adjoining the smaller setback. 7/5/2017 7
No. 5: New Site Plan Requirements Issue: Can site plan requirements discourage creativity in siting design when solar starts to evolve from the standard row upon row design? 7/5/2017 8
No.6: Major and Minor Amendments 5.108 = Amending pending registration / application for new system Basic rule if major, start over. If minor, file new site plan and supp. testimony with all parties; 10 day comment 5.109 = Amending system post-cpg Basic rule if major, start over. if minor, notice to agencies and all parties, but deemed approved if no objection within 10 biz days Major: Nameplate capacity increase of more than 5% Nameplate capacity reduction of more than 60% Move limits of disturbance by more than 50 feet Fuel source change Case by case in Board s discretion Minor Additional aesthetic mitigation Change to physical plans or design that is not a major amendment. Maintenance and repairs are exempt. 7/5/2017 9
No. 7: Codifying Quechee 5.108 = Amending pending registration / application for new system Basic rule if major, start over. If minor, file new site plan and supp. testimony with all parties; 10 day comment 5.109 = Amending system post-cpg Basic rule if major, start over. if minor, notice to agencies and all parties, but deemed approved if no objection within 10 biz days Major: Nameplate capacity increase of more than 5% Nameplate capacity reduction of more than 60% Move limits of disturbance by more than 50 feet Fuel source change Case by case in Board s discretion Minor Additional aesthetic mitigation Change to physical plans or design that is not a major amendment. Maintenance and repairs are exempt. 7/5/2017 10
No. 8: Act 250/Stakeholder Comment Summary 5.107(C)(11); 5.106(D)(7): applicant must provide responses summarizing comments and recommendations received during the 45-day advance notice period, and state steps taken / not taken (and reasons for not taking) as part of submission. PROBLEM: Expect some blowback on applicants interpretations of neighbor / town / RPC / agency comments. 5.107(C)13); 5.106(D)(8): applicant must file document describing whether NM system will interfere with the satisfaction of any condition contained in Act 250 LUP, and state steps taken / not taken (and reasons for not taking) as part of submission. PROBLEM: Unfulfilled Act 250 conditions can be difficult to research; necessity of district coordinator / DEC involvement; interpretation problem. 7/5/2017 11
No. 9: Providing Preferred Site Status Preferred sites are defined in 8005a(D)(iv); now codified in Rule 5.103, pp.8-10: matches the statute, but adds special category: where Town / RPC agree. Major task in each filing will be to establish preferred site statues esp. for gravel pits, quarries and similar sites where activities pertaining to site reclamation required by applicable law or permit condition are completed prior to installation of the plant. In some cases providing historical records, photos, affidavits that parcel was used for earth extraction might be necessary. In other cases, unfinished reclamation business might need to be completed pre-application, or as part of post-cpg condition. 7/5/2017 12
No. 10: Administratively Complete Enough Under 5.106(E) and 5.107(D), Board staff determines whether each application is administratively complete enough to process. Represents a change to existing practice where completeness is assumed, and completeness issue arises only if Board spots an issue or is challenged by an opponent. Applicants should receive an email message within 5 business days of the date the Board receives application; but there is no presumed complete cannot file without the email. PROBLEM: Could Board begin to graft on requirements not stated in the rule, as what happened with 248a. WARNING: Administratively complete enough email is not a legal determination regarding the sufficiency of the information in the application unclear whether opponent can still challenge on completeness and have Board change its mind. 7/5/2017 13
Will Dodge Director 802.846.8395 wdodge@drm.com 7/5/2017 14