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08.b2 DNR SL OrdCondApproval1 Central Region Headquarters 1200 Warner Road St. Paul, MN 55106 December 15, 2021 Evan Monson, Planner City of Scandia 14727 209th Street North Scandia, MN 55073 Re: Conditional Approval of Scandia Shoreland Ordinance Amendment Dear Evan Monson: Thank you for sending your proposed shoreland ordinance amendment to the DNR for conditional approval review. I am pleased to inform you that the proposed amendment regarding distribution-scale solar energy systems (SES) is substantially compliant with the statewide rules and hereby approved, provided all conditions of approval in this letter are met. Ordinance Evaluation We have reviewed the following sections that you propose to amend in your draft ordinance received on November 5, 2021, for compliance with state shoreland rules (MR 6120.2500 – 6120.3900). We specifically reviewed the proposed amendments to Section 4.23 in Chapter 5, Shoreland Management Regulations, of the Scandia Development Code. We also reviewed the closely related proposed amendments to Chapter 2, Section 4.34(B) of the Scandia Development Code. Our conditional approval only applies to these specific sections. Recommendations The following comments are suggestions for potential revisions to improve shoreland protection and are not required for final approval from DNR. More information can be found in the attached DNR guidance document, “Considerations and Options for Siting Solar Power Facilities in Shorelands.” • The upper reaches of Falls Creek, a designated trout stream is located within the Agriculture - Core (AG C) zoning district, where distribution-scale SES would be allowed with a conditional use permit by this proposed amendment. The upper reaches are not within the St. Croix River District, where distribution-scale SES is clearly prohibited. Since trout streams rely on cool water, they are sensitive to degradation from warming due to stormwater runoff from impervious surfaces. To protect this sensitive resource beyond the St. Croix River District, we recommend the proposed ordinance be revised to clearly prohibit distribution-scale SES within the shoreland area of Falls Creek. 2 • The proposed screening requirements in Chapter 2, Section 4.34(B)(4) could be improved by limiting the use of a “scenic canvas” to a temporary basis until a natural vegetative buffer reaches an adequate height to provide permanent screening. Conditions of Approval The following conditions must be met before the DNR will issue final approval: 1. Return the attached “Ordinance Processing Checklist” and documents identified on the checklist. Next Steps Following are the steps for completing and receiving final DNR approval for your amendment: 1. The city council adopts the amendment. 2. Email the completed Ordinance Processing Checklist (attached) and the documents identified on the checklist within 10 days of city council adoption to: a. Dan Scollan, daniel.scollan@state.mn.us b. Ordinance.review.dnr@state.mn.us 3. We will review the amendment adopted by the city council for consistency with the ordinance that received conditional approval. 4. If the adopted amendment is consistent, I will send you a “final approval” letter. State rules require DNR final approval of shoreland ordinances and amendments for those ordinances to be effective. A shoreland ordinance is an important land use regulation that helps to protect surface water quality, near shore habitat, and shoreland aesthetics of Minnesota’s public waters. We appreciate your efforts to protect these resources for all present and future Minnesotans. Dan Scollan is available to assist with ordinance technical guidance and to consult with you on other land and water-related projects. Sincerely, Megan Moore District Manager, Ecological & Water Resources Division Attachments: Proposed Ordinance Received November 5, 2021 Ordinance Processing Checklist DNR Fact Sheet: Considerations for Siting Solar Power Facilities near Lakes and Rivers c: Dan Scollan, DNR Hydrologist Ordinance.review.dnr@state.mn.us Revised 10/15/2019 Considerations for Siting Solar Power Facilities near Lakes and Rivers Purpose The purpose of this document is to help local governments determine how to regulate solar power facilities and minimize impacts to land in shoreland, Wild and Scenic River, and floodplain districts. The shoreland rules were developed in 1989, long before solar power became a feasible energy source, and thus do not directly address this land use. The following considerations are provided for communities exploring how to permit solar facilities in shorelands. Applicability This document addresses the following solar facilities, all of which are principal land uses that generate solar power for consumption off-site: • Facilities generating 50 MW or more, which require environmental review and relevant permits from the Public Utilities Commission and may require a permit from the local government. • Facilities generating between 25 MW and 50 MW, which require environmental review by the Environmental Quality Board (Minnesota Rules, part 4410.4300) and typically need a conditional use permit from the local government. • Facilities generating between 1 and 25 MW, which are subject to discretionary environmental review by the local government (Minnesota Rules, part 4410.4500) and typically need a conditional use permit from the local government. These facilities include solar gardens pursuant to Minnesota Statutes, § 216B.1641. This document does not address facilities that provide power primarily for on-site consumption where excess power may be sold back to the grid. These types of on-site power facilities are considered accessory uses or structures and should be regulated through a local zoning ordinance and permit. See model solar ordinance for ideas on how to regulate these facilities. These accessory facilities must also comply with shoreland rule (Minnesota Rules, parts 6120.2500 – 6120.3900) provisions in local zoning ordinances discussed below. Natural Resource Impacts While there are many positive benefits of using the sun’s energy as a sustainable source of power, there are also a number of natural resource considerations in siting solar power facilities in shorelands and other sensitive natural resource areas. Solar power facilities require a large footprint and compete for space with natural areas. In the big picture, it is not sustainable to replace existing naturally vegetated areas (such as grasslands, wetlands, and wooded areas) with power generating facilities. It is best to locate solar facilities in areas already affected by humans and cleared of natural vegetation such as over parking lots, on rooftops, on old mining sites or previously altered sites. Revised 10/15/2019 Shoreland Rule Provisions Applicable to Solar Power Facilities and Structures All facilities are structures and must comply with applicable shoreland rule (Minnesota Rules, parts 6120.2500 – 6120.3900) provisions in local zoning ordinances, including: o Structure setbacks from the ordinary high water level and bluff lines o Vegetation cutting and screening requirements o Height limits Considerations and Options for Siting Solar Power Facilities in Shorelands The following considerations and options for regulating solar power facilities in shorelands can help communities minimize natural resource impacts. 1. Before deciding to allow solar power facilities in shoreland, communities should evaluate the potential impact of solar power facilities for each shoreland area/water body on the following: o Natural existing vegetation o Stormwater and nutrient runoff into lakes, rivers, and wetlands o Scenic views from surface waters and existing/potential homes in shoreland. o State-listed endangered or threatened species o Other valuable resources important to the community as identified in comprehensive plans, water plans and mandatory or discretionary environmental reviews. 2. Communities should then explore available options for regulating these facilities based on the potential impacts. Option 1: Allow with a CUP If impacts are minor or can be managed through conditions, one option is to allow solar facilities as a conditional use. This approach allows communities to evaluate each proposal and address natural resource impacts with conditions. If a community chooses this option, the following conditions should be considered: • No intensive vegetation clearing allowed to site solar facilities. • No placement of structures and facilities on slopes over 12% • Treatment of stormwater runoff should be consistent with MPCA storm water manual guidance for solar projects. • All structures and facilities must not significantly impact views from public waters through limits on structure height, use of vegetation or combination thereof. • Native vegetation must be planted on the site wherever practical to provide habitat. See the MNDNR Prairie Establishment & Maintenance Technical Guidance for Solar Projects. June 2018. • Use best management practices for managing erosion control. • Facility location and design must demonstrate that the facility will minimize impact on habitat and wildlife movement. Revised 10/15/2019 Communities are encouraged to contact the DNR for help in assessing impacts to these natural resources and in designing facilities that minimize impacts on natural vegetation and wildlife. See the Minnesota DNR Commercial Solar Siting Guidance, May 2016. Option 2: Prohibit in Areas of Potential Significant Impact If impacts are likely to be significant in some shoreland areas, particularly on lakes and rivers that are sensitive to development (such as Natural Environment Lakes), communities may prohibit solar facilities in these areas. In this case, communities should define solar power facilities and clearly list them as prohibited uses in the specified sensitive shorelands. Option 3: Prohibit in All Shorelands Communities may also choose to prohibit solar power facilities on ALL lakes and rivers in their jurisdiction. DNR Review and Approval of Shoreland Ordinance Amendments If a community elects to amend its shoreland ordinance to more clearly address solar power facilities, all shoreland ordinance amendments must be submitted to the DNR for review and approval to ensure substantial compliance with state shoreland rules. Communities are encouraged to engage their DNR Area Hydrologist as early in the amendment process as possible. Please note that DNR will continue to review shoreland ordinances on a case-by-case basis and no one option provided in this document is intended to provide a blanket approval in all instances. Application to Wild & Scenic River and the Lower St. Croix Riverway Districts Solar facilities are not allowed in the Lower St. Croix National Scenic Riverway (Minnesota Rules, part 6105.0370, subp. 2) and the six Wild and Scenic River districts (Minnesota Rules, part 6105.0100, subp. 3). Solar facilities do not fit into any of the uses identified in the use table for Wild and Scenic River districts, and as such, are not allowed (Minnesota Rules, part 6105.0100, subp. 3). Solar facilities do not meet the definition for “Essential Services,” which are intended for right-of-way uses, and are exempt from the setback standards (Minnesota Rules, parts 6105.0040, subp. 10 and 6105.0110, subp. 3). Application to Floodplain Districts Solar facilities are structures and are subject to the same standards for development in floodplains and are subject to local ordinance requirements including the following: • No structures are allowed in the floodway. If the floodway is not shown on the official maps, an analysis is required to demonstrate the structures are outside the floodway. Revised 10/15/2019 • A permit is required for any solar structure and associated grading within the floodplain. Many communities require a conditional use permit. • If grading is proposed in the floodway, the applicant must provide certification it will not cause any rise in the flood elevations (usually done with “no-rise” certificate). • Grading in the floodplain must be evaluated to ensure it is not blocking drainage ways or tributaries, and is not altering drainage in a way that negatively impacts surrounding properties and water bodies. • Structures in the floodplain (i.e., outside of the floodway) must be: o Anchored to prevent floatation, collapse, or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy; and o Constructed with materials and utility equipment resistant to flood damage. The statements in this document do not have the force and effect of law. This document is informational only and should not be interpreted as creating new criteria or requirements beyond what is already established in the relevant statutes and rules. Whether a local ordinance or zoning decision complies with the relevant statutes and rules will be determined on a case-by-case basis. Nothing in this document should be considered legal advice. Local governments should consult their attorney for specific advice in adopting, amending, and administering ordinances.