SolarIndustryPerspective

TaskForceonRenewableEnergyDevelopmentandSiting

JohnFinnerty,StandardSolarDavidMurray,MDV-SEIA

10/31/19

2

3

• RatepayerImpactreinvestedthroughgrid,societalandeconomicbenefitsat1:4ratio,perPSC’sValueofSolar study

4

5

“Thecostofdoingnothingishuge…Centralbanksarerecognizingthecostofdoingnothing…Doingnothingisnotanoption- howevertheopportunityofdoingsomethingiswherewehavetobe.WearedoingitinMd.”

•SenatorChrisVanHollen

“Leveragetheopportunityaroundyou…It’sanawesometimetobeintheenergysector”. •Maryland PSCChairmanJasonStanek

MessagesfortheMarylandCleanEnergyCenterSummit,October24th2019

6

Part1:Developing&SitingResidentialSolar

Excellentforhomegeneration- offset&backup-Workswellwithnetmetering-Pathwaysfornetzero-IdealforEVchargingoffsetloads-Pairedwithstorageforaddedvalue

SomeSitingChallenges● Roofconditions● SplitIncentives● Historicpreservationconcerns● Shadingissues–treesorneighboringstructures

7

Residentialsolarpowercreatesthegreatestnumberofpermanent,localjobsonaperMWbasis.

Part2:Developing&SitingCommercialandCommunitySolar

CommunitySolar

1. Unlockssolaraccesstoineligiblecustomers

2. Projectsarenevermorethan20acresinsize(2MW)

3. Countiesarestrugglingwithunderstandingthevalueofsolarandsimplyzoningoutsolarorplacingmoratoriumsoncommunitysolarprojects

CommercialSolar

1. CommercialratedesignmakesROIforsolarchallenging

2. AccesstoANEMcanacceleratecommercialuseofsolar

3. Ballastedsystems,suchasrooftopsandparkingcanopiesarecommon

4. Brownfieldsitesrequireconsiderablelocalbalancedcontracting

8

Part3:Development&SitingUtility-ScaleSolarCommonMisconceptionsAroundUtility-ScaleSolar

1. Solarcanbetreatedlikeotherlanduses.Bycreating“solarzones”wecanreachourenergydeploymentgoalswhileensuringfewresidentsliveclosetosolarfacilities.

2. Onceacountypermitsalargeproject,developerswillflocktothecountytobuildmoreprojects,ie“solarsprawl.”

3. Mostoftheutility-scaleprojectscanbeplacedonMaryland’sbrownfieldsandparkingcanopies

4. Solarisatoddswiththeagriculturaleconomy

9Thesubsequentslidesdispeleachofthesemyths

CommonConcepts/MisconceptionsDrivingSolarSitingConcerns1. Wecan/shouldtreatsolarlikeotherlandusesandcreate“solarzones”wherewe

wantsolartogoFact:Unlikeotherlanduses,solarsitingisdrivenbytechnicalconstraintsthatcannotbemapped.

2. Wecan/shouldjustputsolaronbrownfields/landfills/carports.Fact:ThereisnegligiblecapacityforsolaronMaryland’scontaminateslands.Withsupportivepolicies,thecapacityislimitedtobetween200to400MWstatewide.

3. “SolarSprawl”- Wherethereis1solarfarmtoday,willtherebe10tomorrow?Fact:Thenatureofscarcetransmissioncapacitymeansthateachsolarfarmthatisdevelopedislikelytomakeitmoredifficult/costlytofitanothersolarfarminthesameareaofthetransmissiongird.

4. Solarfarmswilldestroytheagriculturaleconomy/wayoflife.Fact:Marylandcanmeetit’sRPSobligationsthrough2030withlessthan1%ofthestate’saglanddevotedtosolarfarmswithpermittingconditionsthatensureanetpositiveimpacttolocalcommunities

10

WhatConstrainsSolarSiting?• Limitedcarryingcapacity inMaryland’stransmissioninfrastructureisthedominantconstraint forsitingasolarfarm,anditisbothdynamic andunmappable.

• Anyeffortstomapthedesiredlocationsforsolarfarmswillnotreflectthelocationsthatwillactuallyhaveroomforsolarpoweronthegrid.

• AveragetimeofPJMtransmissionstudyprocessfrominitialapplicationtoprojectenergizationis>5years.

• PJMinterconnectionqueueshowslocationsofprojectsinqueue.Duetoscarcityoftransmissioncapacity&longPJMprocess,thiseffectivelyreflectsthelocationofmostutility-scalesolarfarmsthrough2030.

• Take-away:Sitingpolicytargetingtransmission-levelsolarneedstobeflexibletoallowfordevelopmentwherethereistransmissioncapacity.

11

TransmissionCapacityDictatestheSolarIndustry

• Proximitytohighvoltagetransmissionlinesisnotsufficienttomakeaprojectviable,becauseroomonthetransmissionlinesisscarceandunmappable.

• “ReverseSprawl:”Solardeveloperscompeteoverspaceonthetransmissiongrid,oneprojectcandisplaceanotherifitisbuiltfirst!

• Factorsexternaltotheindustry- suchasanindustrialfacilityclosing- affecttransmissioncapacity,hencewhyittakesyearsfortheutilitytostudy

12

WhatAboutSolaronBrownfields&Landfills?

• Maryland’ssolarindustryscreenedtwodatabasestotalingover400contaminatedsitesacrossMaryland(fullreportatwww.mdsolarcoalition.com)

• TheopportunitytodevelopsolaroncontaminatedsitesinMarylandisnegligible,limitedtoarangeofbetween~200to~400MWacrossthestate,assumingenablinglegislation.

• Policiesdesignedtoincentivizesolardevelopmentonthesesitesmustaddressnumerouschallengeswiththeircommercialviability.

• Uncertaintyaroundtransmissioninjectioncapacityandlandownerinterestatthesesitesremainsanobstacleevenwithenablinglegislation.

13

MDFarmland

DevelopmentPressuresIn

Context

•~HalfofMaryland’ssolarmandatewillbemetby~2000MWofutility-scalesolarby2030.If~90%ofthatisdevelopedonfarmland,thattranslatestoaround15,000acresofMarylandfarmlandusedtohostsolarthrough2030.•Incontext,Maryland’scounties&municipalitieshavezoned~150,000acresofthestate’s~1.4macresofcurrentcroplandforresidential/commercialdevelopment.

14

2,200,000

1,400,000

300,000

150,00047,000 15,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

AcresofAgLandInMaryland

AcresofAgLandinCrops AcresinAgPreservation AcresofCurrentCroplandZonedfor

Development(Resid/Comm)

AcresofCroplandLosttoDevelopment&SeaLevelRise

2002-2012(NoSolar)

AcresofLandNeededtoMeetUtility-ScalePortion

of50%RPS(includesoperating

projects)

Acres(Ap

proxim

ate)

MarylandSolarSitingonFarmlandinContext

15

1. Providebestpracticestotownsandcountiesforeducation,economic,environmentalandtechnicalissues.TheVADMMEandUniversityofVirginianowhaveexpertsin-housetoprovidesupporttocountieswiththisexpertise

1. AddressbarriersandacceleratecommunityandcommercialsolardeploymentthroughexpandingcurrentMEAgrantprograms,openingANEMtocommercialentitiesandcommunitysolarprogramchangestoincentivizecommercialengagement.

1. AdjustNEMprogramcaptofacilitatedistributedgenerationsectorgrowth,increasecommunitysolarsystemsizecapto5MW

1. Supportexpansionofresidentialsolarbyaddressingrestrictivecovenants,streamlinepermittingprocesstoreducesoftcostsofdistributedgeneration,developtoolstoexpandsolaraccesstoLMIcommunities

1. Confirmvalueofsolarasasoilsrestorationtoolatdegradedsoil(ag)sites

1. PPRPtoissuepollinatorfriendlystandardsforprojects

Recommendations for Siting Task Force

Appendix

1. WherearethelargeprojectsinMaryland’squeue?2. HowdoestheCPCNprocessgovernresponsiblesolarsitingprocess?

3. Howarelocalvoicesheardinthepermittingprocess?4. Howcandevelopersmitigateviewshedconcerns?5. HowdoIcalculatetheacreagerequiredbasedonthesizeofaproject?

17

18

StateCPCNProcessforPermittingLargeSolarProjects

• Projectsover2MWs(~16acres)arepermittedthroughthestateCPCNprocess.Projectsup-to2MWareentirelygovernedbythelocalpermittingprocess.

• DepartmentofNaturalResources'PowerPlantResearchProgram(PPRP),onbehalfofthePSC,ischargedwithevaluatingthewaterquality,wildlife,soil,stormwater,health,andeconomicimpactsofeachproject.

• TheCPCNprocessgivessignificantconsiderationforlocal/countylandusepreferencesinthefinaldetermination.

• PPRPcanimposeanyconditionsnecessarytoavoidnegativeimpactsandcanrecommendagainstapermitifanynegativeimpactsaredeemedtooutweighaproposedproject’sbenefits.Standardconditionsincludesetbacks,plantingofvegetativescreens,decommissioningrequirementsandbonding.

• ApublicutilitylawjudgeconsidersevidenceanddeterminesapprovalordenialofpermitsonbehalfofPSC,thoughPSCcanhavefinalsayonappeal.

19

StatePermittingwithSignificantLocalInput• In2017,theMarylandsolarindustryworkedwithMACotostrengthenthelocalvoiceinthestate’sCPCNprocess,andtodatenumerouspermittingdecisionsforsolarprojectsthathavebeenpermittedorhavebeenrejectedforapermitthroughtheCPCNprocesshavementionedtheaddedweightgiventolocalinputandzoning.

• Numerouscountieshavedevelopedordinances thatareroutinelyconsidered&referencedaspartofCPCNpermitdecisionsbypublicutilitylawjudges.

• MarylandcountieshavetakenvaryingapproachestoparticipationintheCPCNprocess,including:

• SomecountiesrelyentirelyonthestateCPCNprocessvs.alocalprocess• SomecountieshavepassedsolarordinancesastheirexpressionofinputintotheCPCNprocessbuthavemergedthelocalprocessintotheCPCNprocess

• SomecountiesrequireprojectstogothroughthelocalprocesswhichtheninformstheirinputintotheCPCNprocess

• Openquestion(especiallysincekey2019Marylandcourtrulingaffirmingstatepreemptionoflocalzoning)astowhetherit’sappropriatetosubmitlocalapplicationsforCUPs vs.localgovernmentsparticipatinginCPCNprocessasinterestedpartiesorintervenors. 20

CPCNProcessInPractice• ForestConservationAct(FCA) - SolarprojectssubjecttotheCPCNprocessmustcomplywiththeFCA withtheexceptionofanarrowexemptioninstatutethatallowsCPCNsolarprojectsthatarenotremovingforestsandthatcomplywiththelocalForestConservationOrdinancetobeexemptfrommitigationrequirements.AllothersolarprojectssubjecttoCPCNmustcomplywithFCArequirements.

• Decommissioning – AsastandardconditiononallCPCNprojects,PPRPrequiresthatprojectsbedecommissionedandthelandrestoredattheendofaproject’slife.Therequireddecommissioningplanmustincludeafinancialmechanism(ex.bond)toensurethatdecommissioningoccurs.

• VegetativeScreening– AcommonconditionacrossallCPCNsolarprojectsrequiresthattrees,shrubs,andothervegetationbeplantedaroundsolarprojectsinordertoobscuretheirviewfromthepublic.Suchconditionsoftenincludefinancialassurancestoguaranteescreeningefficacy.

• Stormwater – MarylandDepartmentoftheEnvironmenthasguidelinesthatgovernstormwatermanagementforsolarfarms.SolarprojectsalsotypicallyrequireNationalPollutantDischargeEliminationSystem(NPDES)stormwaterpermitcoverageandotherstateregulatoryapprovalsincludingconformancewithstormwatermanagement,sedimentanderosioncontrol,andconsistencywithCriticalAreas. 21

UtilityScaleSolarBestPractices- Screening• Screeningmaybeappropriateinsomecases,suchasmitigatingimpactstohistoricstructuresorothervisually-sensitivereceptors

• Consistsofa“row”ofhedges,shorttreesornaturalized,nativeplantingstocreate“greenwall”

• Costcanbesignificantsousuallynotappliedasblanketapproachtoentireprojectperimeter

• PPRPgenerallyrequiresscreeningasindicatedbylocalauthoritiesandacrossfromallsensitivereceptors/scenicbi-ways

22

• AcresofUtilityScaleSolaronAgLandBy2030=• [(EligibleRetailPowerSalesin2030x14.5%)÷• SolarNetCapacityFactor ÷ 8760(no.ofhrs.inayear)]x• %ofSupplyMetbyUSSonAgLand x• AcresofSolarperMWac

• AcresofUtilityScaleSolaronAgLandBy2030=• [(61,760,000x14.5%)÷ 25%÷ 8760)]x45%x8=14,718acres

• 14,718acrestranslatestojustover1,800MWofsolar,whichisconsistentwithwhatweknowaboutthecurrentPJMtransmissionqueueandprocess

HowToCalculateAcresofSolaronFarmland

23

MWhsolarneededby2030

ConvertsMWhtoMW

Limitstosolaronagland

FORMULANOTES:

ConvertsMWtoAcres