Pennsylvania’s Dawning Solar Industry: What Every Developer Should Know November 3, 2020 Braden Christopher Gillian Flick Jon Beckman 724-749-3181 724-749-3187 814-333-4913
The Ins and Outs Behind Pennsylvania’s Solar Future Plan
Pennsylvania’s Solar Future Plan Available at: https://www.dep.pa.gov/Business/Energy/ OfficeofPollutionPrevention/SolarFuture/Pa ges/Pennsylvania's-Solar-Future-Plan.aspx
Existing Solar Assets • Resource potential • Abundant land • Geographic location • Grid readiness • Competitive prices • Interested project developers
The Plan for 2030 Solar A Model • – 11 GW total – 3.9 GW (35%) Distributed capacity – 7.1 GW (65%) Grid scale capacity – Economic Cost: $513 Million net annual – Land Use: 89 square miles (56,800 acres) – Jobs: 100,000 Solar B Model • – 11 GW total – 1.1 GW (10%) Distributed capacity – 9.9 GW (90%) Grid scale capacity – Economic Cost: $613 Million net annual – Land Use: 124 square miles (79,200 acres) – Jobs: 60,000
Grid Scale Strategies Long Term Contracts – Develop guidelines for limited use of • long-term contracts (LTCs) for a period of 10 or more years to ensure Pennsylvania benefits from grid scale solar energy Long Term Contracts – Evaluate and consider utility ownership • of solar generation especially in cases where market-driven deployment may be insufficient to achieve public goals and/or reliability concerns Grid Modernization – Investigate opportunities to grid • modernization to enable increased solar generation
Distributed Generation Strategies Virtual Net Metering – Expand customers’ ability to use net • metering Community Solar – Identify and remove the barriers to the • deployment of community solar systems in Pennsylvania Alternative Ratemaking – Ensure alternative ratemaking is • addressed in a manner that does not create a disincentive for solar development Property Assessed Clean Energy (PACE) – Enable and encourage • municipalities to offer PACE programs that include solar projects Addressing Interconnection Issues – Accelerate use of smart • inverters to manage over-voltage concerns on low voltage distribution lines and avoid unnecessarily adding costs on small solar distributed generation projects
Cross-Cutting Strategies • Alternative Energy Portfolio Standards – Increase the AEPS solar photovoltaic (PV) carve-out to between 4 and 8 percent by 2030 and ensure creditable Solar Renewable Energy Credits are limited to those generated in Pennsylvania wherever possible • Access to Capital – Increase access to capital by expanding availability of solar lending products to residential and commercial projects to enable solar ownership • Access to Capital – Provide loan guarantees to lower interest rates and incentivize deployment of solar generation • Carbon Pricing – Implement a carbon pricing program and invest the proceed in renewable energy and energy efficiency measures
Cross-Cutting Strategies • Siting and Land Use – Support the creation and adoption of uniform policies to streamline siting and land-use issues while encouraging conservation • Tax Incentives – Evaluate the state of tax policy and consider exemptions that encourage the development of solar PV systems • Tax Incentives – Assist solar project sponsors in identifying investors and/or companies that have sufficient tax equity appetite to take full advantage of the federal solar Investment Tax Credit and Modified Accelerated Cost Recovery System depreciation, if sponsors can't do so themselves
Project Development • Three phases of project life – Development phase – Construction phase – Operating phase
Project Development • The development phase – Greenfield (concept) stage – Mid-stage development – Late stage development
Greenfield Stage • Feasibility (proof of concept) • Interconnection studies • Land availability and characteristics • Permitting • Taxation • Community support
Mid-Stage Development • Site control • Engineering studies • Environmental studies • Site plan • Interconnection agreement • Real estate • Permitting applications • Local governmental relations
Late Stage Development • Facility design • Real estate • Final reports • Final preparations for earthwork and construction
Siting and Permitting • Location • Land access • Leasing/purchase • Title ownership reports
Siting and Permitting • Title Considerations – Coal – Oil and Gas – Surface Rights – Easements
Siting and Permitting • Review state and local laws • Environmental review • Transmission siting and interconnection
Land Use • Municipalities Planning Code • Uniform Construction Code • Pennsylvania Sewage Facilities Planning Act • Pennsylvania Storm Water Management Act • Pennsylvania Flood Plain Management Act
Land Use • Planning commission • Comprehensive plan • Subdivision and land development ordinance • Zoning ordinance
Real Estate – Land Title • Considerations – Severed coal, oil, gas and mineral (“COGM”) estate ownership – Reservations of rights in COGM – Oil and gas operations began in 1859 in Pennsylvania – Commercial coal fields cover portions of Pennsylvania – COGM owners and surface owners may have conflicting rights to use the real property
Real Estate – Land Title Possible Actions • – Obtain or certify legal status of ownership (including COGM rights) – Obtain Title Insurance – Review federal and state law for provisions affecting ownership – Negotiated lease provisions – Non-disturbance agreements – Purchase severed interests – Obtain surface use waivers – Obtain insurance on the improvements (facilities)
Real Estate – Land Title • Title Insurance – ALTA 35.3-06 Endorsement – Provides coverage against enforced removal or alteration of existing and planned future improvements due to the exercise by a COGM estate owner of the right to use the surface of the property to extract COGM – Relevant considerations to be satisfied before issuance (representative example): • Detailed plans demonstrating the future improvements • Title search back to 1859 • Title search of severed COGM estates • Possible investigation beyond record title
Steptoe & Johnson PLLC • Alternative and Renewable Energy Team – Our attorneys assist with project development, site acquisition, financing, permitting, compliance, and negotiation of power purchase and other commercial agreements. Team members also advise clients on renewable energy credits, tax incentives, and energy efficiency and savings. – Our firm has title insurance agents, abstracting and land services in-house – Colorado, Kentucky, Ohio, Pennsylvania, Texas and West Virginia – https://www.steptoe-johnson.com/services/alternative- renewable-energy
QUESTIONS?
Braden Christopher Gillian Flick Jon Beckman 724-749-3181 724-749-3187 814-333-4913 braden.christopher@steptoe- gillian.flick@steptoe- jon.beckman@steptoe- johnson.com johnson.com johnson.com
These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the authors and are not individualized legal advice. It is understood that each case is fact-specific, and that the appropriate solution in any case will vary. Therefore, these materials may or may not be relevant to any particular situation. Thus, the authors and Steptoe & Johnson PLLC cannot be bound either philosophically or as representatives of their various present and future clients to the comments expressed in these materials. The presentation of these materials does not establish any form of attorney-client relationship with the authors or Steptoe & Johnson PLLC. While every attempt was made to ensure that these materials are accurate, errors or omissions may be contained therein, for which any liability is disclaimed.
Recommend
More recommend
