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HomeMy WebLinkAbout2015-09-28 PACKET 06.2.STAFF REPORT CASE: TA2015-025 ITEM: 6.2 PUBLIC MEETING DATE: 9/28/15 TENTATIVE COUNCIL REVIEW DATE: 10/21/15 APPLICATION APPLICANT: City of Cottage Grove REQUEST: A zoning text amendment to City Code Title 11, Chapter 4, Special Zoning Provisions, to add Section 10, Solar Collector Systems, to regulate solar energy systems in all zoning districts. SITE DATA LOCATION: N/A ZONING: N/A GUIDED LAND USE: LAND USE OF ADJACENT PROPERTIES: CURRENT GUIDED NORTH: EAST: N/A SOUTH: WEST: SIZE: N/A DENSITY: NIA RECOMMENDATION Approval. cottage COTTAGE GROVE PLANNING DIVISION J Grove k%e,e viae a�eeo:vedw neve Planning Staff Contact: John McCool, Senior Planner; 651-458-2874; amccooI(cDcottage-g rove. org Application Accepted:. N/A 60 -Day Review Deadline: N/A City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016 Planning Staff Report Solar Energy Systems Ordinance Case TA2015-025 September 28, 2015 Proposal The City of Cottage Grove has proposed a zoning text amendment to City Code Title 11, Chapter 4, Special Zoning Provisions, to add Section 10, Solar Collector Systems, to regulate solar collector systems in all zoning districts. Background Presentations relative to zoning regulations for solar collector systems were presented to the Plan- ning Commission on May 18, June 22, and July 27, and to the Environmental Commission on July 8. A draft solar energy ordinance was presented to the Planning Commission and Environmental Commission members at a joint workshop meeting on August 24. At the August 24 joint workshop meeting, Commission members and other attendees made the following comments: • Prohibit solar collection systems on accessory structures. • Prohibit solar collection systems on the wall of any structure facing a public street or require a conditional use permit if the percentage of wall area is covered by a solar collector system. • Require four walls for accessory structures. An accessory structure must comply with the regu- lations in City Code Title 11, Chapter 3, Section 3, Accessory Structures. • Modify the proposed regulation in line #187 in the August 24 draft ordinance to require the sub- mittal of an application to the local electric utility company with the conditional use permit appli- cation, and as a condition of approval require that a copy of the executed agreement between the applicant and local electric utility be submitted to the City. • Modify the proposed regulation in lines #239-241 in the August 24 draft ordinance to allow a bond as a financial security option. • Modify the proposed regulation in lines #211-212 in the August 24 draft ordinance to allow com- munity solar garden and solar farm utility -scale systems as a conditional use in all zoning districts and delete the requirement that such systems must be outside the Metropolitan Urban Service Area (MUSA). Proposed Solar Collector Ordinance Changes were made to the proposed Solar Collector Ordinance as suggested at the joint Planning Commission and Environmental Commission workshop. These changes are highlighted in yellow; there is a double line beneath the text that was added and text proposed for deletion has a strike - through line. Memorandum to Planning Commission Solar Collector Systems September 2, 2015 Page 2 of 3 At the joint meeting, Chuck Beisner with SunShare Companies had said that a copy of the agreement with Xcel Energy probably would not be available at the time a conditional use permit application is filed with the City. Alternatively, Mr. Beisner suggested that the draft ordinance language as written in line #187 be changed to require that a copy of the application to the local electric utility could be available at the time a solar company files the required applications with the City. The City could then require as a condition of approval that a copy of the executed agreement be submitted to the City. Mr. Beisner also suggested that a bond be allowed as an alternative option for any required financial securities and that community solar gardens and solar farms be allowed on property within the (MUSA). Staff revised the proposed ordinance language relative to providing the City with a copy of the agree- ment between the applicant and local electric utility company as a condition of approval and included the "bond" financial security as an option in lines #239-241 in the August 24 draft. No change was made to requiring community solar garden and solar farms to be outside the MUSA. Great Plains Institute for Sustainable Development Brian Ross with Great Plains Institute for Sustainable Development (GPISD) has provided cursory comments regarding the draft solar collector draft. In general, the overall content of the proposed draft ordinance was okay. Mr. Ross expressed some concerns that there are a few "overly -restrictive" provisions and some that might be difficult to enforce. GPISD tries to make sure solar land uses are regulated consistently with similar land uses in each community. Cottage Grove's draft ordinance is unique in respect that it proposes to prohibit solar collectors on accessory structures, requires free- standing solar collectors to be on a minimum of five acres of land area, and prohibits wall -mounted solar collector systems on the face of a residential dwelling wall that faces a public street. Mr. Ross suggested that ground -mounted solar collector systems be allowed on urban residential lots, and if necessary, require that a conditional use permit be reviewed and approved by the City. Ross also commented that there might be an enforcement issue relative to "glare" from solar instal- lations; reflected sunlight is far more likely from windows than from a solar collector, but everyone acknowledges that such reflection does not rise to the level of a nuisance. GPISD also recommends to cities and counties that they require vegetated ground cover under and around ground -mounted systems to mitigate for stormwater impacts. Mr. Ross suggested that the ordinance prohibit the use of gravel or impervious surfaces as a means to "control vegetative growth." Metropolitan Urban Service Area (MUSA) At the Joint Planning and Environmental Commission workshop, there was a general understanding why land within the MUSA is important for Cottage Grove's future growth and maintaining the avail- ability of public utilities for planned development within the MUSA. The City's investment in providing city utilities in certain areas in the community was completed in the West Draw, East Ravine, and Southwest District with the anticipation that development was going to occur in the near future. With the slow -down in new residential development since 2008, the City has not yet recouped the costs of these public improvements. At the joint meeting, it was suggested that the utility area and connection charges be collected as a means to permit the development of large-scale solar utilities in the MUSA. Property tax revenue for residentially developed land is likely to be higher than land covered with solar collector systems, but Memorandum to Planning Commission Solar Collector Systems September 2, 2015 Page 3 of 3 solar collector systems will likely have less demand on city services (e.g. water, sewer, roads, police, fire, etc.). Area charges, connection fees, and major road fees for residential development within the Upper Ravine area of the East Ravine ranges from $16,568 per acre (low density residential) to $54,305 per acre (high density residential). The water connection fee is $1,160 per unit and the sanitary sewer connection fee is $360 per unit (2015 rate). If 40 acres of land developed with 2.5 units per acre, the aggregate total would be approximately $152,000 for low density and approxi- mately $486,400 for high density residential units. The idea of community solar gardens or solar farms outside the MUSA has also raised the question about whether the stormwater area assessment fee will be collected. Because the stormwater area assessment fee is based on gross land area, developing large-scale solar collection systems on land outside the MUSA will require that this fee be collected. The 2015 rate for this fee ranges from $4,673 per acre (single-family rate) to $9,372 per acre (high-density rate). The agricultural rate is $6,710 per acre. Even if large utility -scale solar collector systems are allowed outside the MUSA, a concern was ex- pressed for land adjoining the current MUSA area that might be added to the MUSA in the process of updating the City's Future Vision 2030 Comprehensive Plan. The process to update the Compre- hensive Plan is tentatively scheduled for late 2015 or early 2016. For this reason, the proposed ordinance might need to include a provision that certain properties currently outside the MUSA will not permit community solar gardens or solar farms. Alternatively, a moratorium for the development of community solar gardens or solar farms might also be considered to complete the process of updating the City's Comprehensive Plan before a solar collection ordinance can be adopted. City Attorney Review A copy of the draft solar collection ordinance and draft planning staff report were provided to the City Attorney for review and comment. The City Attorney provided no additional comments. Recommendation That the Planning Commission recommend approval of the zoning text amendment to City Code Title 11, Chapter 4, Special Zoning Provisions, to add Section 10, Solar Collection Systems, to reg- ulate solar energy systems in all zoning districts. Prepared by: John McCool Senior Planner Attachment: Draft Ordinance ORDINANCE NO. XXX AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA AMENDING TITLE 11, CHAPTER 4, SPECIAL ZONING PROVISIONS BY ADDING SECTION 10, SOLAR COLLECTOR SYSTEMS TO THE CITY CODE 8 The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby 9 ordain as follows: 10 11 SECTION 1. AMENDMENT. Title 11, Chapter 4, Special Zoning Provisions is amended 12 by inserting Section 10, Solar Collector Systems and shall read as follows: 13 11-4-10: SOLAR COLLECTOR SYSTEMS: l• 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 0-3 Purpose. Cottage Grove supports the use of solar collection systems as an accessory use in all zoning districts and as a conditional use in special zoning districts whereby it is determined that rural and urban agricultural land is unproductive farmland. The development of solar energy farms should be balanced with the protection of the public safety and the existing natural resources in Cottage Grove. The ordinance is to provide for the regulation of the construction and operation of solar collector systems in Cottage Grove, subject to reasonable conditions that will protect the environment, public health, safety, and welfare. The provisions of this section of the ordinance shall apply within all zoning districts; allowing solar panels as an appurtenance to rooftops and exterior walls, and allow modest adjustments to regulations to allow applicants access to solar resources on their property. In no case shall the provisions of this ordinance guarantee rights to solar access. Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section: Alternative Energy System: A ground source heat pump, wind or solar energy system Community Solar Garden: A solar -electric (photovoltaic) array that provides retail electric power (or a financial proxy for retail power) to multiple community members or businesses residing or located off-site from the location of the solar energy system, under the provisions of Minn. Statutes 2166.1641 or successor statute. Photovoltaic System: An active solar energy system that converts solar energy directly into electricity. Solar Collector: A device, structure or a part of a device or structure for which the primary purpose is to capture sunlight and transform it into thermal, mechanical, chemical, or electrical energy. Ordinance No. XXX Page 2 of 7 42 Solar Collector Surface: Any part of a solar collector that absorbs solar energy for use in the 43 collector's energy transformation process. Collector surface does not include frames, 44 supports and mounting hardware. 45 46 Solar Daylighting: A device specifically designed to capture and redirect the visible portion of 47 the solar spectrum, while controlling the infrared portion, for use in illuminating interior 48 building spaces in lieu of artificial lighting. 49 50 Solar Energy: Radiant energy received from the sun that can be collected in the form of heat 51 or light by a solar collector. 52 53 Solar Energy Device: A system or series of mechanisms designed primarily to provide 54 heating, cooling, electrical power, mechanical power, solar daylighting or to provide any 55 combination of the foregoing by means of collecting and transferring solar generated energy 56 into such uses either by active or passive means. Such systems may also have the 57 capability of storing such energy for future utilization. Passive solar energy systems shall 58 clearly be designed as a solar energy device such as a trombe wall and not merely a part of 59 a normal structure such as a window. 60 61 Solar Energy System: A device or structural design feature, a substantial purpose of which is 62 to provide daylight for interior lighting or provide for the collection, storage and distribution of 63 solar energy for space heating or cooling, electricity generation or water heating. 64 65 Solar Energy System; Building-Intergrated: A solar energy system that is an integral part of a 66 principle or accessory building, replacing or substituting for an architectural or structural 67 component of the building. Building -integrated systems include but are not limited to 68 photovoltaic or hot water solar energy systems that are contained within or substitute for 69 roofing materials, windows, skylights,awnings and shade devices. 70 71 Solar Energy System, Roof -Mounted: A solar energy system mounted directly or abutting the 72 roof of a principal or accessory building. 73 74 Solar Energy System, Grid-Intertie: A photovoltaic solar energy system that is connected to 75 an electric circuit served by an electric utility company. 76 77 Solar Energy System, Off -Grid: A photovoltaic solar energy system in which the circuits 78 energized by the solar energy'system are not electrically connected in any way to electric 79 circuits that are served by an electric utility company. 80 81 Solar Energy System, Ground -Mount: A freestanding solar system mounted directly to the 82 ground using a rack or pole rather than being mounted on a building. 83 84 Solar Farm: A commercial facility that converts sunlight into electricity, whether by 85 photovoltaic (PV), concentrating solar thermal devices (CST), or other conversion 86 technology, for the principal purpose of wholesale sales of generated electricity. 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 Ordinance No. XXX Page 3 of 7 Solar Heat Exchanger: A component of a solar energy device that is used to transfer heat from one substance to another, either liquid or gas. Solar Hot Air System (also referred to as Solar Air Heat or Solar Furnace): An active solar energy system that includes a solar collector to provide direct supplemental space heating by heating and re -circulating conditioned building air. The most efficient performance typically uses a vertically mounted collector on a south -facing wall. Solar Hot Water System (also Thermal System): A system that includes a solar collector and a heat exchanger that heats or preheats water for building heating systems or other hot water needs, including residential domestic hot water and hot water for commercial processes. Solar Mounting Devices: Racking, frames, or other devices that allow the mounting of a solar collector onto a roof surface or the ground. Solar Resource: A view of the sun from a specific point on a lot or building that is not obscured by any vegetation, building, or object for a minimum of four hours between the hours of 9:00 AM and 3:00 PM Standard Time on any day of the year. Solar Storage Unit: A component of a solar energy device that is used to store solar generated electricity or heat for later use. C. Standards. 1. Building -Integrated Solar Energy System. A building -integrated solar energy system shall be allowed only on principal structures in all zoning districts and regulated as any other building element. Wall mounted solar collection systems are prohibited on the side of a principal structure facing a public street.;;;., ALTERNATIVE LANGUAGE. Section 3, Accessory Structures, 2. Minimum Lot Size. A minimum lot area of five acres is required for ground -mounted solar energy systems for all residential properties in any zoning district. Height. Roof -mounted solar energy systems shall comply with the maximum height requirements in the zoning district that the property is zoned. In nonresidential zoning Ordinance No. XXX Page 4 of 7 133 districts, ground -mounted solar energy systems may be permitted in the front, side or 134 rear yards, but must setback a minimum of 20 feet from the property line. 135 136 4. Roof -mounting Devices and Roof -mounted Solar Energy Systems. Roof -mounting 137 devices and roof -mounted solar energy systems shall be flush mounted on pitched roofs. 138 Solar energy systems located in non-residential districts or on non-residential uses may 139 be mounted at an angle to the roof to improve their efficiency; however, the highest point 140 of a solar panel shall not be more than five feet, measured in a straight line above the 141 roof upon which the panel is mounted. Roof -mounted devices and roof -mounted solar 142 energy systems shall not extend beyond the exterior perimeter of the building on which 143 the system is mounted or built, unless the collector and mounting system has been 144 explicitly engineered to safely extend beyond the edge, and setback standards are not 145 violated. Exterior piping for solar hot water systems is prohibited to extend beyond the 146 perimeter of the building, 147 148 5. Mirror Reflecting Designed Solar Energy Systems. Mirror reflecting designed solar 149 energy systems are permitted only on properties with five acres or larger and located 150 outside the Metropolitan Urban Service Area(MUSA). A conditional use permit is 151 required. 152 153 6. Easements. Solar energy systems,shall,not encroach on public drainage or utility 154 easements. 155 156 7. Aesthetics. Reflection angles from solar energy systems shall be oriented away from 157 neighboring windows. Where necessary, screening may be required to address glare. 158 159 8. Ground -Mounted Solar Energy Systems. Ground or pole -mounted solar energy systems 160 shall not exceed 15 feet in height when oriented at maximum tilt. Ground -mounted solar 161 energy systems shall comply with the accessory structure setback standards for the 162 applicable zoning district in which they are located. Community solar gardens or solar 163 farms shall comply with the principal structure setback standards for the applicable 164 zoning district in which they are located. Solar energy systems may not extend into the 165 minimum side or rear yard setbacks When oriented at minimum or maximum design tilt. 166 167 9. Standards. Solar energy systems shall meet the minimum standards outlined by the 168 International Electrotechnical Commission (IEC), the American Society of Heating, 169 Refrigerating, and Air-conditioning Engineers (ASHRAE), ASTM International, 170 International Organization for Standardization (ISO), Underwriter's Laboratory (UL), the 171 Solar Rating and Certification Corporation (SRCC) or other standards as determined by 172 the Community Development Director. 173 174 10. Certification. Solar energy systems and components shall be certified by Underwriters 175 Laboratories, Inc. (UL), the National Renewable Energy Laboratory, and Solar Rating and 176 Certification Corporation (SRCC), or other appropriate certifications) as determined by 177 the City. The City reserves the right to deny a building permit for proposed solar energy 178 systems deemed to have inadequate certification. Ordinance No. XXX Page 5 of 7 179 180 11. Building Permit Required. All solar energy systems require a building permit. A building 181 permit application and plan submittal must comply with the following requirements: 182 183 a. Applications for Solar Energy Systems. An application to the City for a building permit 184 under this section shall contain the following information, including but not limited to 185 the following: 186 187 i. A building permit application. 188 189 ii. A site plan of existing and proposed site conditions. 190 191 iii. Number of solar collectors to be installed. 192 193 iv. Location and spacing of solar panels. 194 195 V. Ground mounted system applications shall identify existing vegetation on 196 installation site (list vegetation type and percent of coverage; i.e. grassland, 197 plowed field, wooded areas, etc.), and provide a maintenance plan for controlling 198 vegetative growth on site upon installation of the solar energy system. 199 200 vi. A description of the method of connecting the array to a building or substation and 201 a signed' copy of the ,ate, ct;c„ agreement a copy of the application to with �•y rr ua� 202 the local electric utility be included with the conditional use permit application or a 203 written explanation outlining why an interconnection agreement is not necessary. 204 205 vii. Planned location of underground or overhead electric lines connecting the solar 206 electric system to the building, substation or other electric load. 207 208 viii. New electrical equipment other than at the existing building or substation that is 209 the connection point for the solar electric system. 210 211 ix. Manufacture's specifications and recommended installation methods for all major 212 equipment, including solar panels, mounting systems and foundations for poles or 213 racks. 214 215 X. Existing and proposed (if existing grade will be altered) topography at two foot 216 contours. 217 218 12. Feeder Lines and Grid-Interties. All power lines shall be placed underground within the 219 interior of each parcel. The collection system may be placed overhead near substations 220 or points of interconnection to the electric grid. All grid-intertie systems shall have an 221 agreement with the local utility prior to the issuance of a building permit. A visible external 222 disconnect must be provided if required by the utility. Off -grid systems are exempt from 223 this requirement. 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 Ordinance No. XXX Page 6 of 7 13. Special Exceptions. A solar collection system with a cumulative area of six square feet or less is permitted in all zoning districts and does not require a building permit. Examples of these systems are outdoor accent lighting systems, power supply for traffic control systems, powering a water pump for water gardens, tele -communication systems, backup power systems during power outages, and etc. D. Community Solar Garden or Solar Farm. A conditional use permit is required for community solar garden or solar farm systems and must be located outside the Metropolitan Urban Service Area (MUSA). Utility -scale is defined as an energy system that is the primary use of land, designed to provide energy primarily to off-site users or export to the wholesale market. Utility -scale solar energy systems are allowed in all zoning districts. A minimum of five acres of land is required. E. De -commissioning. A de -commissioning plan shall be submitted with all applications for community solar garden or solar farm systems. 1. De -commissioning plans shall outline the anticipated means and cost of removing the system at the end of its serviceable life or upon its becoming a discontinued use. The cost estimates shall be made by a competent party, such as professional engineer, a contractor capable of decommissioning or a person with suitable expertise or experience with decommissioning. The plan shall also identify the financial resources that will be available to pay for the decommissioning and removal of the system. Owners of residential solar energy systems may rely on manufactures data to submit estimates. 2. De -commissioning of the system must occur within 90 days from either of the following: a. The end of the system's service life; or b. The system becomes a discontinued use.; c. A system shall be considered a discontinued use after one year without energy production, unless a plan is developed and submitted to the Zoning Administrator outlining the steps and schedule for returning the system to service. d. The City may at its discretion require the owner and/or operator of the commercial or utility scale system to provide financial security in the form of a cash escrow, bond, or irrevocable letter of credit in an amount equal to 125 percent of a cost estimate for de- commissioning the system. The owner of a utility -scale system must notify the City in writing when feeder lines and/or grid-interties are disconnected from the local utility transmission line. 267 F. Abandonment. If the solar energy system remains nonfunctional or inoperative for a 268 continuous period of one year, the system shall be deemed to be abandoned and shall 269 constitute a public nuisance. The owner shall remove the abandoned system at their 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 Ordinance No. XXX Page 7 of 7 expense after a demolition permit has been obtained. Removal includes the entire structure and components. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance: The new solar energy ordinance includes requirements regarding permitting, screening, setbacks, maximum size array, minimum lot size, designated zoning districts, etc. for all types of solar energy systems. SECTION 3. EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its adoption and publication according to law. Passed this day of Attest: Joe Fischbach, City Clerk 2015 Myron Bailey, Mayor