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Home My WebLink About2013-09-16 PACKET 03.b.City of Oakdale Environmental Management Commission Focus Areas and Projects Joint Commission Meeting 9/16/13 Generation Green - Completed yearly update of Generation Green Sustainability Plan. - Continued to pursue the implementation of best practices in the GreenStep Cities program, awarded Step 2 status at annual League of MN Cities conference. - Completed annual city operations emissions and energy use inventory, updated results to MN B3 Benchmarking website. The following progress has been made towards the commission's greenhouse gas emissions reduction goals. Buildings and Facilities — 15% emissions reduction goal by 2013 There has been a 9.3% reduction in GHG emissions since 2007. Water Delivery Facilities — 10% emissions reduction goal by 2013 There has been a 4.2% reduction in GHG emissions since 2007. Vehicle Fleet —25 %emissions reduction goal by 2013 There has been a 4.5% reduction in GHG emissions since 2007. Traffic Signals — 2% emissions reduction goal by 2013 There has been a 4.5% reduction in GHG emissions since 2007 Total Emissions — 13% reduction goal by 2013 There has been a 1.2% reduction in overall GHG emissions from city operations since 2007. - Received approval from City Council to install two 40 kW solar PV systems on the city's two fire stations; however the city did not receive rebate funding from Xcel Energy to complete the project. Depending on how the new solar rebate program is structured, the city may consider moving forward with the projects in 2014. - Actively promoted the Trillion BTU commercial energy loan program to Oakdale businesses. Trillion BTU is low- interest financing offered by the St. Paul Port Authority to commercial and industrial properties for energy efficiency improvements. Loan payments are structured to be less than the estimated energy savings from the project. - Participated in Regional Indicators Initiative with twenty other Minnesota cities to measure energy use and emissions on a community -wide scale. Water Quality - Held annual Tanner's Lake Clean -Up Event, removed 500 pounds of debris from Tanner's Lake. - Passed ban on using coal tar driveway sealants in the city in late 2012 as chemicals in the sealant can cause health and pollution issues. Spring 2013 worked with MPCA to do contractor education and create a registry for contractors who pledged not to use the sealant. Did resident education through newsletters and at city events. (State of MN passed a state -wide ban as part of 2013 Legislative session.) - Reviewed a number of educational articles about water conservation and heard a presentation from the Metropolitan Council on regional water planning in preparation to focus on water issues in 2014. Waste Hauling and Recycling - Continued the popular Recycling Rewards program, rewarding residents for recycling. - Approved annual waste hauler license applications and reviewed annual recycling data. Education and Outreach - Kept city website up -to -date with latest information in residential and commercial energy saving and recycling resources. - Environmental story section in each issue of the Oakdale Update, which is distributed city -wide on a quarterly basis. - Monthly editorials in local newspaper written by commissioners on the environmental topic of their choosing. Subject: Value of Solar Tariff Methodology To: Solar / Distributed Generation / Net Metering Stakeholders From: Bill Grant, Deputy Commissioner MN Department of Commerce, Division of Energy Resources Date: 8/9/2013 Legislation passed in 2013 requires the Department of Commerce (Commerce) to establish a solar value methodology (Alternative tariff: MN Laws 2013, Chapter 85 HF 729, Article 9, Section 10). Key points of the statute include (the full language is pasted below): As an alternative to net metering, investor -owned utilities may apply to the MN Public Utilities Commission (PUC) for a value of solar tariff that compensates customers through a credit (i.e., moves the netting from the meter to the bill) for the value to the utility, its customers, and society for operating distributed PV systems interconnected to the utility and operated by the customer primarily for meeting their own energy needs. The utility must demonstrate that the alternative tariff appropriately applies the methodology established by the Department and approved by the Commission; • The Department of Commerce must establish the methodology and submit it to the PUC no later than January 31, 2014. The methodology must include the value of energy and its delivery, generation capacity, transmission capacity, transmission and distribution line losses, and environmental value. The credit will represent the present value of the future revenue streams of these components. Please note the following draft schedule for upcoming stakeholder engagement regarding Value of Solar (VOS) methodology development: September 17 (8:30am to 4pm) Workshop: Overview — Objectives, Process, Schedule, Commerce Review of Solar PV Benefit and Cost Studies Rocky Mountain Institute Stakeholder Q &A September 20 — Initial comments due on VOS methodology (send to: DG. Energy(@ state. mn.us These comments will be used to frame the Stakeholders Perspectives portion of the October 1 Stakeholder Workshop October 1 (8:30am to 4pm) Workshop: Proposed approach to methodology, Commerce and Clean Power Research Stakeholder perspectives Identification of key issues, Facilitated discussion October 15 (8:30am to 4pm) Workshop: • Discussion and resolution of key issues, Facilitated discussion with stakeholders, Commerce and Clean Power Research November 19 (8:30am to 1pm) Workshop Presentation of initial draft methodology, Commerce and Clean Power Research Stakeholder Q &A December 10 — Comments due on draft methodology (send to DG. Energy(a� state. mn.us These comments will be used to inform the final draft VOS Methodology that the Department will submit to the PUC (by January 31, 2014). Additional details on agenda and location will be provided in the coming weeks. Please send any questions or comments on this process and schedule to DG. Energy(o� state. m n. us MN Laws 2013, Chapter 85 HF 729, Article 9, Section 10 Sec. 10. Minnesota Statutes 2012, section 2166.164, is amended by adding a subdivision to read: Subd. 10. Alternative tariff; compensation for resource value. (a) A public utility may apply for commission approval for an alternative tariff that compensates customers through a bill credit mechanism for the value to the utility, its customers, and society for operating distributed solar photovoltaic resources interconnected to the utility system and operated by customers primarily for meeting their own energy needs. (b) If approved, the alternative tariff shall apply to customers' interconnections occurring after the date of approval. The alternative tariff is in lieu of the applicable rate under subdivisions 3 and 3a. (c) The commission shall after notice and opportunity for public comment approve the alternative tariff provided the utility has demonstrated the alternative tariff: (1) appropriately applies the methodology established by the department and approved by the commission under this subdivision; (2) includes a mechanism to allow recovery of the cost to serve customers receiving the alternative tariff rate; (3) charges the customer for all electricity consumed by the customer at the applicable rate schedule for sales to that class of customer; (4) credits the customer for all electricity generated by the solar photovoltaic device at the distributed solar value rate established under this subdivision; (5) applies the charges and credits in clauses (3) and (4) to a monthly bill that includes a provision so that the unused portion of the credit in any month or billing period shall be carried forward and credited against all charges. In the event that the customer has a positive balance after the 12 -month cycle ending on the last day in February, that balance will be eliminated and the credit cycle will restart the following billing period beginning on March 1; (6) complies with the size limits specified in subdivision 3a; (7) complies with the interconnection requirements under section 2166.1611; and (8) complies with the standby charge requirements in subdivision 3a, paragraph (b). (d) A utility must provide to the customer the meter and any other equipment needed to provide service under the alternative tariff. (e) The department must establish the distributed solar value methodology in paragraph (c), clause (1), no later than January 31, 2014. The department must submit the methodology to the commission for approval. The commission must approve, modify with the consent of the department, or disapprove the methodology within 60 days of its submission. When developing the distributed solar value methodology, the department shall consult stakeholders with experience and expertise in power systems, solar energy, and electric utility ratemaking regarding the proposed methodology, underlying assumptions, and preliminary data. (f) The distributed solar value methodology established by the department must, at a minimum, account for the value of energy and its delivery, generation capacity, transmission capacity, transmission and distribution line losses, and environmental value. The department may, based on known and measurable evidence of the cost or benefit of solar operation to the utility, incorporate other values into the methodology, including credit for locally manufactured or assembled energy systems, systems installed at high -value locations on the distribution grid, or other factors. (g) The credit for distributed solar value applied to alternative tariffs approved under this section shall represent the present value of the future revenue streams of the value components identified in paragraph (f). (h) The utility shall recalculate the alternative tariff on an annual cycle, and shall file the recalculated alternative tariff with the commission for approval. (i) Renewable energy credits for solar energy credited under this subdivision belong to the electric utility providing the credit. (j) The commission may not authorize a utility to charge an alternative tariff rate that is lower than the utility's applicable retail rate until three years after the commission approves an alternative tariff for the utility. (k) A utility must enter into a contract with an owner of a solar photovoltaic device receiving an alternative tariff rate under this section that has a term of at least 20 years, unless a shorter term is agreed to by the parties. (1) An owner of a solar photovoltaic device receiving an alternative tariff rate under this section must be paid the same rate per kilowatt -hour generated each year for the term of the contract. U ' U U ' O U o +j C Q U U 4-j U +- � o U � -I� +j • cn C� ct ct o ct O ct c c ct ct ct W U O ct 3 U v� O O ¢' W ct •4-j O U $=i . ,.., c ct ct 0 0 �O c U ct ° ct � ct ct U U o o ct • ,� U O ct +j U ct +� U U � � U