PENNSYLVANIA BACKGROUND INCENTIVES FOR WIND DEVELOPMENT

PENNSYLVANIA

B

Contact: William A. Capouillez, Bureau Director, Pennsylvania Game Commission, (717) 787- 6818, [email protected], 2001 Elmerton Ave., Harrisburg PA 17110

Installed Utility Scale Wind Power: 179 MW

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W

D

Renewable Portfolio Standard: Yes - 8% Tier I, 10% Tier II by 2020 (wind is Tier I)

Incentives for Industrial or “Big Wind” Production:

FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and Penelec Sustainable Energy Fund to provide funding in the form of loans or equity investments (a limited number of grants may be available) to businesses that advance the fund’s objectives: the development and use of renewable energy and clean-energy technologies; energy conservation and efficiency; sustainable-energy businesses; and projects that improve the

environment in the companies' service territories; loans typically do not exceed $500,000 and grants typically do not exceed $25,000.

The Sustainable Development Fund Grant Program (PECO Territory) provides financial assistance in the form of grants, commercial loans, subordinated debt, royalty financing, and equity financing for Sustainable Energy Business Planning Grants, Sustainable Energy

Demonstration Grants, and other grants that follow the SDF’s mission of “promoting renewable energy, energy conservation and sustainable energy businesses”; grants average approximately

$25,000 and are available for up to 75% of the cost of the work.

The West Penn Power Sustainable Energy Fund (WPPSEF) promotes the use of renewable energy and clean energy among commercial, industrial, institutional and residential customers, funding for eligible projects may include grants, commercial loans, equity investment,

subordinated debt and royalty financing; commercial loans are available to manufacturers, distributors, retailers and service companies involved in renewable and advanced clean energy technologies, as well as energy efficiency and conservation products and services to end-user companies and community-based organizations.

The Sustainable Energy Fund of Central Eastern Pennsylvania (SEF) disburses a limited number of grants and loans to organizations seeking funding for projects consistent with the Fund’s mission “to promote research and invest in clean and renewable energy technologies, energy conservation, energy efficiency and sustainable energy enterprises that provide opportunities and benefits for PP&L ratepayers”; research projects are not eligible for grant financing.

The Pennsylvania Energy Development Authority (PEDA) offers periodic grant and loan funding to provide support for innovative, advanced energy projects, and for businesses interested in locating or expanding their alternative-energy manufacturing or production operations in Pennsylvania; Commercial, Industrial, Nonprofit, Schools, Local Government, Agricultural sectors are eligible and the maximum individual award is $1 million.

Incentives for Residential and “Small Wind” Production:

Pennsylvania law provides that wind turbines and related equipment (including towers and foundations) may not be counted by tax assessors when setting property values, instead the valuation of real property used for the purpose of wind-energy generation is developed by the county assessor utilizing the income capitalization approach to value (the capitalized value of the land-lease agreements, supplemented by a sales comparison data approach).

Pennsylvania’s Energy Harvest program provides financing for the implementation of clean and renewable-energy technologies that have measurable benefits in terms of pollution reduction, environmental quality and reduced energy use; grants are intended to address the dual concerns of energy and environmental quality so proposals must simultaneously reduce or supplement the use of conventional energy sources and lead to improvements in water or air quality.

The Keystone Home Energy Loan Program (HELP) is a low-interest loan program for

homeowners to make their homes more energy efficient or to install wind, solar or geothermal systems; maximum loan amount is $10,000 with a 10-year repayment term and 8.99% interest rate, some low-income participants may qualify for a lower 6.99% interest rate.

Interconnection and Net Metering Standards:

Pennsylvania’s interconnection standards include provisions for four levels of interconnection for generators up to two megawatts (MW) in capacity. The Commonwealth’s investor-owned utilities must make net metering available to residential customers with systems up to 50 kilowatts (kW) in capacity; nonresidential customers with systems up to one megawatt (MW) in capacity; and

customers with systems greater than 1 MW but no more than 2 MW who make their systems available to the grid during emergencies, or where a microgrid is in place in order to maintain critical infrastructure

E

S

P

Power Siting Authority: Local government has the authority to plan and regulate land use.

Wind Specific Siting Authority? No, however there are state regualtions which entail protection compliance to certain wildlife resources

Code or Regulations: Land use authority granted to local government in Municipalities Planning Code

Role of State Fish & Wildlife Agency: Department of Conservation & Natural Resources and Pennsylvania Game Commission and PA Fish & Boat Commission all have jurisidictional mandatory oversight on review of proposal; to include, wetlands, streams, Yhreatened or Endangered Species etc.

How are wildlife laws applied: Mitigation is mandatory when protection and minimizatoin processes are not enough to significantly reduce any probabale adverse impacts to state agency juridictional oversight resources, such as stream, wetlands, Threatened or Endangered species, etc.

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G

W

Wildlife Guidelines for Wind Power Siting: Wind Energy Voluntary Cooperative Agreement

Lead Agency on Guidelines: Pennsylvania Game Commission Status of Wildlife Guidelines: Final – February 2007

Summary of Guidelines: The Pennsylvania Game Commission developed a voluntary cooperative agreement to help avoid, minimize and potentially mitigate any adverse impacts the development of wind energy may have on the state’s wildlife resources; the agreement has been signed by 28 wind power companies (“Cooperator”). Included with the agreement are site and project risk assessments and survey processes, defiend efforts for protection and minimization of known resources, and planned efforts to reduce potential adverse impacts to wildlfie resources, as well as standardized protocols for wildlife monitoring and impact review procedures primarily for migrating raptors - particularly eagles - and bats. In return, Coopertors reap the benfit of reduced liabailty for potetnail unauthroized takes, increased planning effieincy, reduced overhead costs for permitting and

regaultory complinace, and overall improved public relations. The Game Commission has also outlined steps for appropriate post-construction mortality studies and in 2005 finalized guidelines for development of wind facilities on Game Lands.

Web site for Guidelines:

http://www.pgc.state.pa.us/pgc/lib/pgc/programs/voluntary_agreement.pdf

Detailed Summary of Pennsylvania’s Voluntary Guidelines

Pre-construction survey

Pre-construction surveys are required as part of the Cooperative Agreement for both birds and bats. Migrating raptor studies are required in both spring and fall and if the area is a known eagle migratory route than an additional spring eagle survey would be required. If the project area is within an Important Bird Area (IBA) as previously designated by the Audubon process, or within an area supporting birds identified as those priority species of “greatest conservation concern” within the Pennsylvania Comprehensive Wildlife Conservation Strategy, a survey (consisting of three days of effort one day in May, two in June, separated by at least one week) to confirm or deny the presence of the species will be required. The cooperator is responsible for surveying the project area for any caves, abandoned mine portals, or other openings that may harbor bats to be surveyed by a qualified bat biologist in order to determine those bat hibernacula existing within 5 miles of the project area that may induce additional avoidance and minimization measures due to anticipated adverse bat impacts from project operations. The cooperator will conduct pre- and post-construction acoustic surveys based on priority level to assess the level of bat activity for both hibernating and tree bats. Specific pre-construction monitoring protocols for both birds and bats that describe habitat priority levels as well as duration and extent of surveys are outlined in addendums to the cooperative agreement.

Design/Operation Recommendations

The Cooperator agrees to utilize to the greatest extent possible, all

reasonable and feasible generally accepted wind industry and Commission best management practices relevant to the conservation of wildlife resources during construction and subsequent operation of the wind-energy facility.

Site Development Recommendations

None are given initially, however as part of the agreement, Cooperator’s meet with the PA Game Commission after initial project review in order to jointly assess risk of site development and project placement based on vegetative cover types, field verified local wildlife resources and survey results, known migration rates, proximity to hibernacula’s and species populations, and overall forest fragmentation, slope, wind speeds,

infrastructure build-out plans, etc. Site development recommendations and adherence to them are than made part of the overall Cooperator’s

obligations in order for the Cooperator to remain in good standing with compliance of the Cooperative Agreement.

Consultation with wildlife agency, USFWS

The agreement with the Game Commission provides that the Commission will be notified of a pending development at least 14 months prior to construction. The Commission in consultation with the Cooperator will determine the risk level for monitoring and survey efforts. The Commission and Cooperator agree to share relevant information concerning wildlife resources under the jurisdiction of the Commission in and around the project area and the potential adverse impact to those resources. The Commission will to the extent feasible, be made available to provide consistency and oversight management for all conducted surveys.

Commission recommendations or decisions under the Cooperative

Agreement do not supersede any comments, decisions, or recommendations of the United States Fish & Wildlife Service.

Mitigation requirements

In the event that an incidental take occurs upon a Pennsylvania listed

threatened or endangered species of bird or mammal during the operation of any of the Cooperator’s wind-energy facilities, the Cooperator liability is less due to having adhered to the protect, minimize process and is

subsequently directed to take all reasonable measures as deemed appropriate by the Commission and the Cooperator to further avoid, minimize and/or mitigate such wildlife losses in the future. Failure on the Cooperator’s part to do so, causes a breach in the Agreement and the Cooperator liability and risk is immediately increased.

Post-Construction/

Operational Surveys

The Cooperator is required to perform bird and bat mortality monitoring for a minimum of two years post-construction. Mortality studies shall be conducted from April 1 through November 15 by a qualified biologist(s) having expertise in the identification of bats and/or birds. Detailed overviews of mortality studies are included as addendums to the cooperative agreement.

Decommissioning None