Clean Energy and Land Use Law Reform

Transcription

1 Clean Energy and Land Use Law Reform Josh Galpern, Yale Law School, Environmental Policy Clinic, Director Karl Rábago, Executive Director, Pace Energy and Climate Center (PECC) Jordan Gerow, Staff Attorney, PECC Emily Chessin, Consultant, Meister Consultants Group John Nolon, Professor and Counsel, Land Use Law Center

2 Opening Remarks Josh Galperin, Clinical Director and Lecturer in Law, Environmental Protection Clinic, Yale Law School Environmental Law and Policy Program Director Yale School of Forestry and Environmental Studies

3 NY S REFORMING THE ENERGY VISION PROCESS Karl R. Rábago Executive Director, Pace Energy and Climate Center krabago@law.pace.edu

4 Drivers of Change Natural gas supply & prices Declining economics of central station power solutions/model Environmental responsibility & imperatives Improving economics of distributed energy resources ( DER ) Resiliency & the inherent benefits of communitybased solutions Rábago [krabago@law.pace.edu] LULC Annual Conference 12 Dec

5 Economics are Compelling, Even When Only Wholesale Costs are Considered! P. Kind, Pathways to a 21 st Century Electric Utility, CERES (Nov. 2015) 5 Rábago [krabago@law.pace.edu] LULC Annual Conference 12 Dec 2015

6 Some Things New Markets Will Offer to Citizens and Businesses P. Kind, Pathways to a 21 st Century Electric Utility, CERES (Nov. 2015) 6 Rábago [krabago@law.pace.edu] LULC Annual Conference 12 Dec 2015

7 Your Energy Infrastructure Landscape Will Change Dramatically 7 Rábago [krabago@law.pace.edu] LULC Annual Conference 12 Dec 2015

8 Thank you! Learn more and follow our work: Contact: Karl R. Rábago Rábago LULC Annual Conference 12 Dec 2015

9 COMMUNITY MICROGRIDS: BACKGROUND, ZONING AND FRANCHISING CONCERNS Jordan Gerow Staff Attorney Pace Energy and Climate Center

10 Microgrids can combine a variety of different technologies to serve different types of energy users. 12/14/2015

11 Combined heat and power is often a centerpiece of reliable, clean, and economic microgrids. 12/14/2015

12 Microgrids can also incorporate renewable distribute generation. 12/14/2015

13 Microgrids can utilize energy storage to create hybrid systems for clean & reliable power. 12/14/2015

14 A Menu of Microgrid Technologies Whole-Building Energy Efficiency Retrofits: employed before sizing generation to right size generation. Renewables, including solar photovoltaic, solar thermal, wind, hydro, geothermal, and biomass. CHP, District heating and cooling systems Energy storage technologies, such as batteries, flywheels, and physical materials like hot water ice or hydrogen. Intelligent energy management devices and IT systems communicate to balance load and generation Smart-grid technologies manage the interface and flows between the macrogrid and the microgrid Energy Law 11/13/2014

15 Franchising: Why private wires? No existing utility business models for providing power wheeling service Selling power at bulk rates and buying at retail to transport it next door has a huge impact on project economics Being able to transport power between customers and DERs behind-the-meter can help balance utility load between customers, and effectively lower standby rates. Energy Law 11/13/2014

16 Franchising: Are you allowed to cross public rights-of-way with your power? New York Franchises typically non-exclusive. NY Const. Art. 3, S 17. Municipalities may grant lesser permissions e.g., revocable consent to cross public rights of way, or grant full competing franchises. Similar process for steam distribution Energy Law 11/13/2014

17 Franchising NY City, Town, and Village Laws grant general authority to local councils and boards to grant franchises Many municipalities will have no code on the books to direct the application process. Munis may have franchising provisions for other types of services, such as telecom or cable providers Do these codes apply? A mix of yes, no, and maybe observed across Pace s communities Energy Law 11/13/2014

18 Franchising, Cont d Existing cable and telecom franchising provisions may pose difficulties for microgrids Examples: Distance limits on revocable consent: Should we be giving more strenuous review to projects because the lines are long, or because they impact more customers? Mandatory, open-ended compensation to the muni: For making the hospital more reliable? Restrictions on assignment/transfer: Trouble for projects making use of flip ownership structures? Large deposits for funding municipal review Energy Law 11/13/2014

19 Land Use Regulations Can Hinder Microgrid Development... Zoning codes may hinder microgrid development Permitted uses covered in more depth later Height restrictions, lot coverage limitations, and setback requirements may not allow for the placement of solar panels or small wind installations on existing rooftops or building sites. Homeowner s associations can put covenants into place on properties that restrict their ability to generate power.

20 But Can Also Create Incentives Zoning review procedures can help open up opportunities for community energy E.g., Portland OR used its Regulatory Improvement Code Amendment Process (RICAP) to allow for the production of energy as of right in any Industrial Zone Incentives can include density or floor area ratio bonuses E.g., Pullman, Washington grants five density bonus points to new planned residential developments for incorporating solar energy into 50% or more of proposed units. Green Building Ordinances might assign points for incorporating community energy features Incentives can also include streamlined or reduced cost permitting procedures E.g., San Diego created expedited permitting tracks based on building to LEED standards or incorporating PV

21 Or Help Make the Development Process Simpler Finding out where existing underground infrastructure will block new gas, electric or thermal distribution can be difficult. E.g., NYC proposes providing ready access to the Maps and Plates data that identifies underground infrastructure. Setting aside room for future development. Portland s Dept. of Transportation put casings in the ground to carry thermal and electric distribution at key intersections where district heating and cooling systems may become feasible in the future. Coordinating with other large capital projects can save time and money. E.g., Portland and NYC both propose making their cities capital improvement schedules available to developers.

22 Permitted Use Challenges for Distributed Generation Silence in permitted use sections of a zoning code creates problems for DG Many jurisdictions will consider on-site backup to be accessory, but an open question when you re exporting large amounts of power If not accessory, a special use permit or a variance may be required Energy Law 11/13/2014

23 Permitted Use Challenges, Cont d Variances will typically require a showing that property cannot be economically utilized E.g., local codes requiring licensed realtor s affidavit that the property has been marketed unsuccessfully If local code does not specify, State precedent and legislation will still control appeals, requiring (1) no reasonable rate of return, (2) unique hardship, (3) no change to neighborhood s essential character, (4) no selfimposed harm. A microgrid may add value for its customers, but unlikely to satisfy standard that properties have no reasonable rate of return without it. Energy Law 11/13/2014

24 Permitted Use Challenges, Cont d Special use permits for generation may not be included in local code, or may be available only to municipal or public utility parties Energy Law 11/13/2014

25 Permitted Use Challenges, Cont d Potential Solutions: Special Use Permit process for microgrid generation Microgrid defined consistent with NYS and DOE. Consider other restrictions on size, generation type, and entities served. Size restrictions: E.g., not to exceed 100% of the peak load of contracted microgrid customers Generation-type prohibitions: Ruling out on-site diesel, e.g., with potential exception for back-up Entities served: May require one or more critical infrastructure customers Requirements for harmonious enclosures, landscaping, noise, etc. can often be imported from elsewhere in code Energy Law 11/13/2014

26 Permitted Use, Cont d For a pathway broader than only microgrid generation, consider a special permit use for all DER DEC s DG rules, now under public comment, may supplant local concerns on air quality, and applicable noise and neighborhood-character-type restrictions can be imported from other areas of the code. Energy Law 11/13/2014

27 Thank you! Jordan Gerow Staff Attorney Energy Law 11/13/2014

28 LOCAL BARRIERS TO SOLAR PV Emily Chessin Meister Consultants Group NY-Sun PV Trainers Network

29 Types of Solar Energy Systems Small-Scale Roof Large-Scale Roof Building Integrated Small-Scale Ground Large-Scale Ground

30 Global Market & Module Prices $/W GW Installed Module cost ($/W) GW

31 NY State Solar Market $10.00 Weighted Average Installed Cost NYS $9.00 $8.00 $7.00 $6.00 $/Watt $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 * 2015 figures through Nov. 30, 2015

32 NY State Solar Market 600 Solar PV in New York State MW-DC *2015 Annual Installations Cummulative Total * 2015 figures through November 30, 2015

33 2014 Quick Facts on NY Solar Market # 7 in solar installations in US # 5 in solar jobs across US 540 solar companies 7,300 people employed Source: SEIA; The Solar Foundation; NYSERDA, LIPA Incentive Data, LI Solar Farm, NYPA & Con Edison

34 US Solar Costs $4.00 $ per Watt $3.50 $3.00 $2.50 $2.00 $1.50 Profits, Taxes, & Overhead Non-Hardware Hardware $1.00 $0.50 $- US Solar Cost Source: Solar Energy industry Association, Solar Market Insight Report 2014 Q4

35 US Solar Costs $ per Watt $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $ per Watt $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 Solar Solar Soft Soft Costs Other Paperwork Permitting Column1 & Inspection Non-Hardware Cost Financing Hardware Costs Cost Customer Acquisition $0.50 $0.20 Installation Labor $- US Solar Cost $0.00 German Solar Cost Source: Solar Energy industry Association, Solar Market Insight Report 2014 Q4

36 Role of Local Governments 1,550+ local jurisdictions in NY With permitting and land use authority Opportunity to streamline local land use regulation for solar PV systems Standard, small-scale PV systems Source: NREL

37 Solar Barriers: Planning Barrier New York law states that zoning, and all land use regulations, must be in conformance with the comprehensive plan Options Add a solar energy component to the comprehensive plan Adopt a special solar energy policy or plan to guide the reform of land use regulations Model Resolution Supporting Implementation of Solar Energy Program

38 Solar Barriers: Zoning Barrier Haven t amended zoning ordinances to allow & accommodate for solar energy systems Directly or indirectly land use authorities may discourage solar energy projects Complicated or burdensome processes for small-scale systems Options For standard, small-scale systems simplify and streamline the process Define each type of solar energy system permitted Update zoning and determine where to permit and how to regulate Identify appropriate zoning districts Adjust use regulations Adjust bulk & area requirements Update requirements for review & approval processes

39 Solar Barriers: Permitting Barrier For most solar systems require: Building Permit Electrical Permit Permit Fee Inspection Directly or indirectly add time and costs to solar projects Options Differentiate between standard (e.g. small-scale residential rooftop) and non-standard installations Small-scale, roof-mounted ( 12 kw): Adopt the New York Unified Solar Permit or Long Island Fast Track Permit $2,500-5,000 incentive Government/Local-Government

40 Solar Barriers: Blocked Solar Access Adopt Local regulations that protect property owners access to sunlight and reduce risk of shading 40 Solar Easements Solar Access Permits Solar Fences

41 Solar Barriers: Special Districts HPC Review ARB Review Amend regulations to exempt or expedite the review process for PV systems that meet local review or design guidelines

42 Solar Barriers: Bulk & Area Requirements Zoning Board of Appeals Amend zoning ordinances to accommodate for PV systems

43 How do I get help? Visit the Solar Table in the Lobby to Pick up Resources & Learn About Free Technical Assistance through NY-Sun PV Trainers Network & Solarize Westchester Removal_Guide.pdf Resource_Guide.pdf

44 Contact us: Emily Chessin Meister Consultants Group (617) Jessica Bacher Land Use Law Center Pace Law School (914)

45 Removing Zoning Barriers for Solar and Clean Energy Facilities John R. Nolon Distinguished Professor of Law, Pace Law School Counsel, Land Use Law Center

46 Zoning Chapter Relevant Contents Purpose Definitions Establishment of Districts & Zoning Map District Use, Lot and Bulk Regulations Special Permit Regulations Supplemental Regulations Site Plan Review & Approval

47 Defining Solar Energy Systems Zoning Definitions Section

48 Defining Solar Energy Systems Solar Electric Systems Small-Scale Solar Ground-Mounted Solar Facility Principal Solar Energy System Roof-Mount System Solar Energy Facility Medium Solar Energy System Building-Integrated Photovoltaic Systems Large-Sized Solar Energy System NREL

49 Defining Solar: Four Factors To Consider Energy System Type Location Where System-Produced Energy is Used Bulk & Area of System Dimensions System Energy Capacity

50 Example: System Type and Energy Capacity For Small-Scale Solar Electric Systems: Rated capacity of 12 kw or less Roof-Mounted

51 Siting: Determine which zoning districts to permit each defined system Update Zoning Code

52 Amending District Use Regulations to Allow Solar Land Uses Allowed in Districts As: 1. Principal Use 2. Accessory Use 3. Secondary Use 4. Special Use

53 53 1. Solar as Principal Use

54 2. Solar as Accessory Use

55 55 3. Solar as Secondary Use

56 56 4. Solar as Special Use

57 Review and Approval Process Project review and approval requirements generally intensify as impacts associated with permitted solar energy systems increase.

58 Land Use Review Options For Building-Integrated: Building parts exempt from land use review Subject to building code compliance

59 Land Use Review Options For Small-Scale, Accessory Systems: Review by Zoning Enforcement Officer Building Permit Review Some may Require Site Plan Review

60 Land Use Review Options For Small-Scale, Accessory Systems: Must be 12 kw or less & roof-mounted Exempt from zoning review Expedited review for combined building and electrical permit

61 Land Use Review Options For Larger Systems with Greater Impacts: Major & Minor Site Plan Review Special Use Permit Review

62 Amending Site Plan Requirements Major Site Plan Review Minor Site Plan Review

63 Thank You! Visit our Solar Table in the Lobby or Contact us: John Nolon Land Use Law Center Pace Law School (914) Jessica Bacher Land Use Law Center Pace Law School (914)