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7.a Discussion on ordinance amending the development code to regulate solar energy systems Memorandum To: Scandia Planning Commission Reference: Proposed Ordinance for Distribution Scale Solar Energy Systems Copies To: Neil Soltis, City Administrator Project No.: 17123.000 Brenda Ecklund, City Clerk Routing: From: Merritt Clapp-Smith, Planner Date: March 26, 2019 SUBJECT: Proposed ordinance allowing and regulating Distribution Scale Solar Energy Systems, under Chapter 2, Section 4.34 of the Development Code of the City of Scandia. Based on revisions to the former ordinance regulating Solar Farms and Community Solar Gardens under Chapter 2, Section 3.2. MEETING DATE: April 2, 2019 BACKGROUND The City of Scandia permitted, amended and repealed its community solar ordinance over the past few years.  June 2015 – City establishes ordinance allowing and regulating community solar  April 2016 – 3 month moratorium on new installations  June 2016 – City amends regulations for community solar  September 2017 – City repeals ordinance allowing community solar Scandia’s experience with the community solar installations has been fraught with concerns from residents related to various aspects of how they look and their size. In Fall 2018, the city was encouraged to reconsider an ordinance for community solar, with stronger requirements and performance standards for the installations. The table on the next page provides an overview of the past ordinances and revisions and installations that have occurred in the city since 2015. Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 2 of 10 On January 31, 2019, the Scandia City Council and Planning Commission hosted a public information and input session on community solar gardens. The input from community members at the meeting was shared with the Planning Commission at its February 5th meeting and discussed. Based on that input and ongoing discussion in the community about solar, the Planning Commission directed staff to propose some changes to the last version of the city’s community solar ordinance for consideration. They discussed these changes on March 5th and requested additional revisions to be reflected in a proposed ordinance for PC review on April 2nd. The following pages provide an overview of potential changes. Ordinance number 162 170 174 187 193 Date 6/16/2015 4/19/2016 6/16/2016 9/19/2017 1/16/22018 Purpose Established regulations for community solar Amended community solar regulations Passive solar as accessory use Performance Standards Minimum lot size 5 acres none none Side setback Same as principal structure 75' minimum 20' Front setback greater of 200' from centerline or 150' from right-of-way No Change parallel to or behind primary structure Height 15' maximum 15' maximum Screening from right of way to the extent possible up to 25' in depth and up to 95% of view from adjacent parcels within 2 if CUP required or within 100' of right- of-way Power lines Underground from array to interconnection No change Fencing MNDNR wildlife Size need CUP if array over 800 s.f. Timeline of solar projects approved under each ordinance 5 mW - 97 / Manning 10/20/2015 2015 - 4 permits 5 mW - south of 97 4/19/2016 2016 - 5 permits 3 mW - 95 5/17/2016 2017 - 6 permits 5 mW - Oldfield 8/16/2016 2018 - 1 permit 40 kW Lofton 11/15/2016 1 mW - Manning 6/20/2017Interim ordinance establishing 3-month moratoriumOrdinance repealed Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 3 of 10 One key item addressed was the naming convention for these systems, since “community solar” and “solar garden” have unique meanings in other contexts, which may differ from what’s being considered in Scandia. A new naming convention has been suggested for the systems – “Distribution Scale Solar Energy System (Distribution SES)”. The correct location within the Development Code was considered by staff following the meeting, and it is proposed that it be added under Chapter 2, Section 4.34, following the code language for solar systems for on-site energy use. This packet includes two versions of the proposed ordinance language – one shows it as a revision to the former ordinance, to show what has changed, and the other shows it as added text to Section 3.43. KEY STANDARDS FOR DISTRIBUTED SOLAR AND POTENTIAL CHANGES TO THE LAST SOLAR ORDINANCE The summary below highlights proposed regulations and underlines those that are key changes from the city’s last ordinance. Black text shows items proposed for discussion on March 5th and red text shows recommended revisions following the March 5th discussion. Districts  Allow in Agriculture Core (AG C) and Agriculture Preserves (AP). Do not allow in General Rural (GR).  Do not allow to be more than 3,000 feet from the power distribution line it connects to. Size  Provision for size limit may not be needed if screening is good. The previously discussed limitation was “Solar farms and community solar gardens shall not exceed One (1) Megawatt AC in size.”  Limit to 1 megawatt in size or smaller Poles  Limit the installer to 1 interconnection pole per 1 MW system and require operator to get confirmation from the utility that it can limit itself to 1 additional pole in the public right-of- way. (The City cannot regulate how many poles the utility chooses to put in the public right-of-way, but it consider it as a criteria for approval. Distance from Adjacent Uses  Setback at least 75 feet from property lines  Setback 350 feet from any existing residential structures on adjacent parcels  Setback 500 feet from centerline of minor arterials or 200 feet from centerline of all other public road right-of-ways. Height  Fifteen (15) feet, when oriented at maximum tilt Vegetative Buffer Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 4 of 10  Enough screening to provide a complete, opaque screen in the summer months to adjacent ROWs and existing residential structures on adjacent parcels. Up to fifteen (15) feet tall  Up to 25 feet deep  Screened up to 95% from adjacent residential parcels  Screened up to 75% from non-residential parcels and public ROWs  Required screening to be achieved within 4 growing seasons  At least 30% - 50% of vegetative buffers to be composed of evergreen plantings  Planting area under and around arrays to be deep rooted, native grass and pollinator mix suitable to soil type and moisture conditions  Secure an escrow, bond or letter of credit to ensure screening is installed and survives Fencing  Must be mounted on wood posts  Barbed and razor wire not allowed  Shall not exceed eight (8) feet in height from ground  Must have gap at the bottom for passage of birds and small animals Lighting  If used, must be shielded and downcast Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 5 of 10 POTENTIAL CHANGES TO PREVIOUS CITY ORDINANCE AN ORDINANCE THE SCANDIA DEVELOPMENT CODE, CHAPTER 2, SECTION 4.34____, REGARDING DISTRIBUTION SCALE SOLAR ENERGY SYSTEMS FARMS AND COMMUNITY SOLAR GARDENS The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Revisions to former Ordinance No. 122, the City of Scandia Development Code (“Development Code” or “Code”), Chapter Two, Section 3.2, Solar Farms and Community Solar Gardens, as follows: Distribution Scale Solar Energy Systems Solar Farms and Community Solar Gardens. Solar farms and community solar gardens shall comply with all of the following standards:  Districts and PermitsSize Limits (A) Solar farms and community solar gardens are allowed within the Agriculture Core (AG C) and, Agriculture Preserves (AP), and General Rural (GR) zoning districts and require a Conditional Use Permit. In the AP (A) District, the use is permitted on parcels where the Agriculture Preserves Program status and agreements permit this use. (B) perational area , including fencing and solar array, shall be located . (C)(B) Solar Farms and The City prohibits solar farms and community solar gardensCommunity Solar Energy systemsDistribution SES are prohibited in the following areas: within the following districts: 1. Within areas designated as Shoreland Districts by the Department of Natural Resources and the City of Scandia Shoreland Ordinance, and within associated Shoreland setback areas as designated by the City of Scandia. 1. 2. Within wetlands to the extent required by the Minnesota Wetlands Conservation Act, and within associated wetland setback areas as designated by the City of Scandia. 2.3.Within the Floodplain District and associated setback areas as designated by the City of Scandia. (2) Accessory solar farm and community solar gardenDistribution SES uses are exempt from the Residential and Agricultural Accessory Structure standards Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 6 of 10 regarding the square footage and number of structures permitted on a parcel, but must conform to the setback and lot coverage standards in this Development Code. (3) Permit Application (A) Existing Site Plans Required. The applicant for a solar farm or community solar garden Distribution SES shall submit a detailed site plan of existing conditions, showing site boundaries; existing access roads, driveways, and easements; existing structures; setbacks; surface water drainage patterns, floodplains, Shoreland districts, delineated wetlands, toe and top of bluffs, ordinary high water mark and other protected natural resources; existing vegetation, soil types, topography (2-foot contour intervals), and all other items required in Chapter 1, Section 5 of this Code for Conditional/Interim Use Permit applications or by the City. The Existing Site Plan shall include a graphic scale not less than 1:100 and a north arrow. (B) Proposed Site Plan Required. The applicant shall also submit a site plan of proposed conditions, including the proposed number, location and spacing of solar panels; proposed height of panels; location of access roads; planned location of underground or overhead electric lines connecting the solar farm to the building, substation or other electric load; new electrical equipment other than at the existing building or substation that is the connection point for the solar farm; proposed stormwater management facilities; proposed erosion and sediment control measures, and other information as required by the City. The Proposed Site Plan shall include a graphic scale not less than 1:100 and a north arrow. The application shall also include twoa vertical sketch elevations of the premises accurately drawn to a scale identified on the drawing, depicting the proposed solar energy conversion system and its relationship to the surrounding topography and public roadways. The sketches shall depict the proposed system’s relationship to structures on adjacent lots within 150 feet of the parcel boundary (if any), and include a depiction of views from the ground elevation of adjacent residences to the solar installation, one sketch showing the view without screening and the other sketch showing the view with proposed screening, . The sketch elevations shall include a graphic scale not less than 1:50, or as needed to clearly show the vertical relationship between the proposed solar facilities and structures on adjacent lots. (C) Use of Public Roads. The applicant shall obtain all necessary approvals from the appropriate road authority for site access and driveways. (D) Interconnection Agreement. The applicant shall complete an interconnection agreement with a local utility and provide a copy of the agreement to the City before approval of electrical, building, or other required permits. The system operator shall provide a visible external disconnect if required by the utility. Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 7 of 10 Utility poles associated with each one (1) megawatt AC of electricity shall be limited to one interconnection pole to the solar array. Additional pole(s) may be required by the utility in the public right-of-way, if required by the utility. The applicant shall provide a letter from the utility indicating that the utility has reviewed the plans & specifications and determined if it can accommodate the installation with no more than one new pole in its easement area. The City will not approve any application unless the utility provides written assurance, to the City’s satisfaction, that the utility would require only one new pole in its easement area. The proposed placement of all utility poles and any proposed aerially mounted equipment shall be shown in any proposed plans submitted. (D)(E) Liability Insurance. The applicant shall maintain a current general liability policy covering bodily injury and property damage with limits of at least $1 million per occurrence and $1 million in the aggregate, and provide proof that it meets the insurance requirement to the city. (E)(F) Decommissioning Plan. The applicant shall submit a decommissioning plan to ensure that facilities are properly removed after their useful life. If the Distribution SES solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The plan shall include provisions for removal of all structures and foundations, restoration of soil and vegetation, and a plan ensuring financial resources will be available to fully decommission the site. The City may require the posting of a bond, letter of credit or the establishment of an escrow account to ensure decommissioning. (F)(G) Payment In Lieu of Taxes. Notwithstanding that Minnesota Statutes Section 272.02, Subdivision 24 (or its successor) classifies real property upon which a solar energy generating system is located that is used primarily for solar energy production (subject to the production tax under Minnesota Statutes Section 272.0295) as class 3a, the City may require the applicant to enter into a Payment In Lieu of Taxes Agreement to compensate the City for any prospective tax revenue that may be lost due to such reclassification. (4) Performance Standards (A) Solar farms which have a generating capacity of 50 megawatts of power or more shall fall under the jurisdiction of the Minnesota Public Utilities Commission. The limitations on the number or cumulative generating capacity of community solar garden facilities is regulated by Minnesota Statutes 216B.164 and related regulations. (B) Distribution SES Solar farms and community solar gardens shall be in compliance with all applicable local, state and federal regulatory standards, Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 8 of 10 including the State of Minnesota Uniform Building Code, as amended; the National Electric Code, as amended; the State Plumbing Code, as amended; the Minnesota Energy Code, as amended. (C) If the proposed Distribution SES solar farm or community solar garden is adjacent to areas designed or formally protected from development by Federal, State, or County agencies as a wildlife management area, scenic byway, or National Wild and Scenic corridor, the applicant shall implement mitigation measures that would protect the resource values of the designated wildlife area or scenic corridor as a condition of approval. Such measures may include, but are not limited to, maintaining wildlife travel corridors, setting the development back from the right-of-way or stream corridor, using the natural topography to screen the project, and retaining or planting vegetation that would obsure fully obscure the view of the energy project within the scenic corridor. (D) All Distribution SES solar farms and community solar gardens shall be setback a minimum 75 feet’ from all parcel boundaries and 350 feet from residential structures on adjacent existing at the time of the application for the permit. The City may require wider setbacks if it determines that the wider setbacks are warranted by the potential impacts to adjacent properties. (E) Distribution SES Solar farms and community solar gardens shall be setback a minimum of 500 200 feet from the centerline or 150 feet from the right-of- way of minor arterial roadways or 200 feet from the centerline of all other public road right-of-ways, whichever is greater. (F) Ground-mounted solar energy systems shall not exceed fifteen feet (15’) in height when oriented at maximum tilt. Building-integrated solar energy systems when at maximum tilt shall not exceed the maximum height permitted in the zoning district. (G) All components of the Distribution SES Solar farms and community solar gardens shall be screened from view from the public right of way to the extent possible by setbacks, berming, existing vegetation, landscaping, or a combination thereof. The City may require that the solar arrays be screened from view from nearby or affected properties using the same screening elements, and may require a vegetative buffer of height sufficient to provide a visual screen of the solar from adjacent rights-of-way, and from residences on adjacent parcels existing at the time of installation, as viewed from six (6) feet above ground level at the residential structural wall that sits closest to the solar installation. The visual screen shall be opaque during the summer monthsup to 25’ in depth and/or screening of up to ninety-five (95) percent of the view of the solar arrays from adjacent parcels. The required screening shall be achieved within four (42) growing seasons from the date of project approval. Between thirty (30) percent and fifty (50) percent of the area of the Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 9 of 10 vegetative buffer, as measured in square feet, shall be composed of evergreen plantings interspersed throughout the screen. The City will require the posting of a bond, letter of credit or the establishment of an escrow account to ensure vegetation is installed and establishes itself as identified in the approved permit, based on an estimated cost for plantings and labor provided by the applicant. The planting and screening plan must be approved by the City. (G) (H) Distribution SES Solar farms and community solar gardens are subject to stormwater management and erosion and sediment control best practices and NPDES permit requirements, and shall obtain required permits from the MPCA, local Watershed District, City and others. (H)(I) All ground areas under solar array installs that are not occupied by equipment or essential access paths, shall be planted with a deep rooted, native grass and pollinator seed mix suitable to the soil and moisture conditions of the immediate area. Plant growth shall be stable and self- supporting within two (2) growing seasons from the date of project approval. (I)(J) All plans submitted for building permit approval must be prepared by a licensed, professional engineer. The manufacturer’s engineer or another qualified engineer shall certify that the foundation and design of the solar panels is within accepted professional standards, given local soil and climate conditions. (J)(K) Power and communication lines that are not defined in this ordinance as Essential Services and running between banks of solar panels and to electric substations or interconnections with buildings that are on adjacent parcels shall be buried underground. Exemptions may be granted by the City in instances where shallow bedrock, water courses or other elements of the natural landscape interfere with the ability to bury lines, or the distance to a substation or other point of interconnection reasonablye precludes burial. (K)(L) All Distribution SESsolar farm and community solar garden facilities shall be designed and located in order to prevent reflective glare toward any inhabited buildings on adjacent properties, as well as adjacent street rights-of- way. Steps to control glare nuisance may include selective placement of the system, screening on the side of the solar array facing the reflectors, reducing use of the reflector system, or other remedies that limit glare. Distribution SES Solar farms utilizing a reflector system shall conduct a glare study to identify the impacts of the system on occupied buildings and transportation rights-of-way within a half mile of the project boundary. The glare study shall also address aviation impacts. (L)(M) The surface area of posts and related equipment for ground-mounted systems in combination with driveways, structures and other impervious Proposed Ordinance revisions for review at Scandia Planning Commission 4/2/19 Page 10 of 10 surfaces on the parcel shall not exceed the maximum lot coverage standard of the applicable zoning district. (M) A clearly-visible warning sign concerning voltage must be placed at the base of all pad-mounted transformers and substations. All mechanical equipment, including any structure for batteries or storage cells, shall be completely enclosed by a minimum eight (8) foot high fence with a self- locking gate, and provided with screening in accordance with the landscaping provisions of the Development Code. (N) Any fences or barriers installed for the project shall be mounted on wood posts, shall not include any barbed or razor wire, shall not exceed eight feet in height from the ground, and shall incorporate wildlife-friendly design with a gap at the bottom for passage of birds and small animals. The City will utilize recommendations from the Minnesota DNR to determine if the fence design is wildlife-friendly. (N)(O) If lighting is provided at the project, lighting shall be shielded and downcast such that the light does not spill onto adjacent properties. (O)(P) If the Distribution SES solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after obtaining a demolition permit. Removal includes the entire structure including transmission equipment.