Archive for the ‘Wind’ Category

Offshore Wind Projects to get a boost with ORECs

Written by PisauroLawAdmin on July 22nd, 2010 in Ocean, Renewable Energy, Wind | No Comments »

On June 28th both houses of the legislature passed S2036.  It now waits for the Governor to sign it into law, which he is expected to do.  S2036 does two things for offshore wind.  First it creates an offshore wind renewable energy credit or OREC.  Second the bill provides additional financial incentives for building offshore wind farms and encourages manufacturers of wind turbines and related equipment to locate their facilities in NJ.

S2036 encourages the offshore wind industry by creating ORECs.  An OREC is equal to one megawatt hour of electricity from an offshore wind project. The bill also requires the Board of Public Utilities to set up a schedule of electricity that must be supplied from offshore wind power similar to the carve out for solar.

S2036 amends NJ’s 1999 deregulation of electrical generation to create the ORECs.  As part of the 1999 deregulation the State set in place a renewable energy portfolio requirement.  The law and its regulations required electricity utilities to supply a certain percentage of its electricity from renewable sources.  These utilities could generate their own renewable energy or they could purchase renewable energy credits from those people and business that have installed renewable energy systems.  These RECs would then count towards the utilities’ RPS requirements.  The RPS increases overtime.  Currently the State plans to obtain the equivalent of 30% of its electricity from renewable sources by 2022.  The State also really wanted to encourage solar systems so it broke out from the RECs the SREC (solar renewable energy credit) and a corresponding solar RPS. These SRECs are partially responsible for NJ being #2 in the nation for renewable energy.  The SRECs are also one of the reasons that NJ has the shortest return on investment periods for solar anywhere in the country.   It is the legislature’s hope that ORECs have a similar impact that SRECs did for solar installations.

The second part of the bill provides incentives for manufactures to locate their facilities in NJ.  The bill amends NJ’s Global Warming Solutions Fund law to reallocate some of the money that NJ gets from the RGGI auctions.  These monies are available as grants or “other forms of financial assistance” to manufacturers of wind turbines and associated equipment who locate their plants in NJ.  Offshore wind projects can also receive these monies to help finance the project.

There are four wind farm projects proposed for the waters of New Jersey.  Hopefully this bill helps create the financial incentives needed to keep these projects moving forward as well as enticing new projects.

Was 2009 the year for renewables in NJ?

Written by Mike Pisauro on February 10th, 2010 in Green Building, land use, legislation, Renewable Energy, Solar, Uncategorized, Wind | No Comments »

A lot has happen since I wrote Renewables and Land Use Law in 2008.  2009 may be one of the best years for renewable energy in New Jersey.  Several laws were passed 2009-2010 in NJ that help move the acceptance and adoption of renewable energy in NJ.

There were two very significant bills.  The first modifies NJ land use laws.  P.L. 2009 C. 146 adds the definition of inherently beneficial to the land use statutes.  Up to now what was inherently beneficial was determined on a case by case basis and only after litigation.  The recently enacted law defines inherently beneficial (for the first time) to include “wind, solar or photovoltaic energy facility or structure.”  Being inherently beneficial is very useful for land use applicants who are seeking a D variance from their local land use board.  D variances are the toughest to get and require the applicant to show that the positive aspects of the project outweigh the negatives.  If your proposed project is inherently beneficial you automatically meet the positive requirements of a D variance.  What is left is showing that the proposal does not create a substantial detriment to the public good and will not substantially impact the zone plan and township ordinances.

Another law that will have far ranging implications is P.L. 2009 c. 244.  This law goes even farther than P.L. 2009 c. 146.  In essence this bill requires municipalities to allow small wind turbines within their borders.  The bill provides that municipalities “shall not unreasonably limit such limitations or unreasonably hinder the performance of such installations.”  Under the bill municipalities cannot enact ordinances that unduly restrict the installation of renewable energy.  A small wind energy system or turbine is one which is primarily for onsite consumption of electricity.  It is considered an unreasonable for a municipality to:

  • Prohibit small energy systems in all districts within the municipality
  • Restricting tower height by applying generic height ordinances that does not make allowance for tower heights.
  • Requiring setbacks more than 150 percent of the system height.
  • Setting noise level lower than 55 decibels.
  • Setting electrical or structural criteria that exceed the applicable UCC standards

This is a very important step forward for wind turbines in NJ.  It will not remove all barriers to the installation of wind turbines as a town could require a setback of 150% which many property owners may not meet.  Given that the towers for small wind energy systems are rated for hurricane winds, the setbacks really are overly restrictive.

P.L. 2009 c. 35 provides that on industrial property of 20 or more acres solar and wind systems are permitted uses.  This would prevent municipalities from requiring variances for the installation of these systems.  An applicant would only need a construction permit to install these kinds of systems.

P.L. 2009 c. 33 requires developers of new residential housing to offer as an option to their purchaser’s solar energy systems.  This requirement applies developments of 25 units or more.  The systems also must be covered under the New Home Warranty and Builder’s Registration Act.  Interesting the Legislature set out a section of findings prefacing this law.  The State has declared that, “[t]hat the installation of even small scale solar energy systems will combat global warming and reduce the nation’s dependence on foreign energy sources, resulting in a significant environment benefit.”  I would suggest a similar finding can be found for wind in the State of NJ.

P.L. 2009 c. 289 revises our electricity generation laws.  In particular it increases the amount of electricity that utilities selling power in NJ have to get from solar sources.  The law also changes the requirement from a percentage of total electricity generation to absolute numbers.  Under this law the State of NJ is requiring that utilities supply either directly or purchase from other generators the following gigawatt hours of electricity generated from solar systems:

2011 306 Gwhrs 2019 1,858 Gwhrs
2012 442 Gwhrs 2020 2,164 Gwhrs
2013 596 Gwhrs 2021 2,518 Gwhrs
2014 772 Gwhrs 2022 2,928 Gwhrs
2015 965 Gwhrs 2023 3,433 Gwhrs
2016 1,150 Gwhrs 2024 3,989 Gwhrs
2017 1,357 Gwhrs 2025 4,160 Gwhrs
2018 1,591 Gwhrs 2026 5,316 Gwhrs

After 2026 the State will still require at least 5,316 Gwhrs of electricity from solar sources.  The law allows for the number of Gwhrs to be increased.

The law also permits that the above schedule can be increased by 20% if in the three preceding years there were enough or excess SRECs to meet the requirements and the average price of SRECs in the same three years decreased.

The State changed the system from requiring a percentage of energy to absolute numbers because of the intent in the Energy Master Plan to reduce overall all energy demand.  If the RPS requirements remained as a percentage the State would start generating less electricity from renewable energy sources the more successful the EMP was.

The next two are not renewable energy bills but also fairly significant for the energy usage of NJ.

P.L. 2009 c. 106 requires the Department of Community Affairs to develop new enhanced energy codes.  These codes are based upon the projected energy costs for the next tens years.  The enhanced energy codes shall be designed to increase energy conservation for buildings.  In 2006 buildings accounted for 39% of the energy use in the United States.  So by enhancing the energy efficiency of new or renovated buildings will go a long way to reducing greenhouse gas emissions and overall energy usage.  The new codes are to be set so any increased in cost to meet the new codes will be paid back within seven years from the reduced energy usage.

Lastly, P.L. 2009 c. 33 allows BPU to give grant money to install energy efficiency, renewable energy, reduction in peak demand, and reduction in energy usage for commercial and industrial business with high peak demand.  As industry is one of the largest users of energy in NJ some have argued that more money should be spent to help them reduce their energy demands and thus help NJ reduce its consumption of fossil fuels.  I am frankly not that convinced that industry should be given this kind of hand out given that many of these energy efficiency, renewable energy systems will pay the company back in a relatively short time frame.

All of these new laws move renewable energy in NJ forward. They make it less expensive to buy, obtain permits and install.  The laws improve the market for renewable energy by creating a greater demand.  While NJ has moved forward we still have some road to travel.  There are several bills being considered for the 2010-2011 legislative session that will again impact NJ’s energy and environmental future.  I will look at these bills in a future post.

Other related posts:

NJ declares wind and solar energy as inherently beneficial
NJ Governor Canditates promote renewable energy, NJ needs more than rhetoric
Governor takes small steps for renewable energy, more needed.
Wind and Solar are ahead of coal in more than ways than one.
Federal RPS has been introduced

NJ declares wind and solar energy as inherently beneficial

Written by Mike Pisauro on December 28th, 2009 in land use, legislation, Renewable Energy, Solar, Wind | No Comments »

Last month, the Governor finally signed legislation that decrees that wind turbines and solar panels are inherently beneficial under New Jersey’s land use laws.  This is a step forward for wind energy in New Jersey.

Up to now, in most cases if a person or business wanted to install a wind turbine in New Jersey they would have to seek a variance.  A variance is usually necessary because the wind turbine does not meet the height restrictions in most towns.  Some towns also consider the wind turbine as non-permitted structure.  In either event in many instances an applicant for a wind turbine must file for a D variance.  D variances are the toughest type to get.

In order to obtain a D variance an applicant must get the approval of 5 of the 7 board members i.e. more than a majority.  Also the applicant must prove that the wind turbine is has benefits to society that outweigh the negatives.  It also must meet other positive requirements.  One would think that proving wind turbines have a positive effect to society and that positive effect outweighs any negative effect.  The one thing that can be sure is that when a hearing for a wind turbine is scheduled anybody and everybody will be there to protest with complaints that are in large part invalid (in my humble opinion).

This is where P.L. 2009 C. 146 comes in.  This new law defines inherently beneficial under our land use laws.  Before this bill what was inherently beneficial was left up to the individual land use boards and ultimately to the courts to decide on a case by case basis.  This law defines inherently beneficial as, ‘a use which is universally considered of value to the community because it fundamentally serves the public good and promotes the general welfare.  Such uses includes, but is not limited to, a hospital, school, child care center, group home, or a wind, solar or photovoltaic energy facility or structure.”  The law in essence removes one small hurdle to the installation of wind energy to NJ.  Once a project is considered inherently beneficial it now longer has to prove that the benefits to the public outweigh the negatives.  It is assume that the benefits outweigh the negatives.

There was opposition to this bill before it was passed and the League of Municipalities issued a statement on the law arguing that this is taking the power from the municipalities and the courts.  In particular the League noted that by including wind and solar energy as inherently beneficial that further legal challenges will be forthcoming.

I agree with the League on this issue, merely declaring wind and solar energy as inherently beneficial does not mean that litigation over the systems will end.  I am aware of at least two lawsuits in NJ involving the installation of a wind turbine.  I suspect as the green economy grows and the need for clean reliable renewable energy grows more and more businesses and individuals will like to install wind turbines.  Those applications will continue to be denied by land use boards for real reasons as well as NIMBY reasons.  This will lead to a multitude of lawsuits whose costs will far outstrip the energy benefits to the owner.

While P.L. 2009 C. 146 is a good start, what NJ needs is a laws that prevents townships from prohibiting (either directly or indirectly) the installation of wind turbines in their borders.  California has a similar law:

any ordinances regulating small wind energy systems adopted by local agencies have the effect of providing for the installation and use of small wind energy systems and that provisions in these ordinances relating to matters including, but not limited to, parcel size, tower height, noise, notice, and setback requirements do not unreasonably restrict the ability of homeowners, farms, and small businesses to install small wind systems in zones in which they are authorized by local ordinance.  It is the policy of the state to promote and encourage the use of small wind energy systems and to limit obstacles to their use.” The statute goes further to provide that, “[t]he implementation of consistent standards to achieve the timely and cost-effective installation of small wind energy systems is not a municipal affair . . . but is instead a matter of statewide concern.”  Ca. Gov’t Code §65892.13(a)(5).

If New Jersey is going to meet its terrestrial goals of 200 megawatts of energy from terrestrial wind turbines in the state by 2020 it needs to do more than talk about supporting wind and P.L. 2009 c. 146.  We need to do more.

MMS issues lease for met towers off NJ Coast

Written by Mike Pisauro on June 28th, 2009 in Federal, Ocean, Renewable Energy, Wind | No Comments »

Last week, MMS announced they would be issuing leases to the three proposed wind farm developers so that they could begin the process of installing their meteorological towers. Bluewater Wind NJ Energy, Fishermen’s Energy of New Jersey, and Deepwater Wind will all be placing met towers off the coast of NJ. These towers are a necessary first step to the eventual development of shore wind. Once the met towers are in place, they will be recording data for at least 12 months or mid to late 2010.

Back in October 2008 the State issued its Energy Master Plan. The Plan sets a goal of having 1000 megawatts of offshore wind by 2012. I have always thought that time table was very aggressive and was unlikely to occur. Assuming the developers do not begin the NEPA process at the same time as they collect the data from the met towers, that process will begin late 2010 or early 2011. The NEPA process of obtaining information, analyzing the information, etc will take a significant period of time. For example, the Cape Wind project, which began around 2001, took almost three years from the very beginning of the NEPA process to the issuance of the draft EIS. It then took another four+ for MMS to issue its final EIS on the project.

Now, a lot has changed from the time Cape Wind started their project. The Energy Policy Act of 2005 was passed. The State of New Jersey has convened a Blue Ribbon Panel on Wind; evaluated the issues and set forth its recommendations. MMS has interim rules for renewable energy developed on the OCS. The nation as a whole has hopefully progressed towards acceptance of wind generation. (I question how far we have progressed on this score). Also, the State is in the process of doing performing their own biological studies off the coast of NJ. All of these things may help move the process along so that the planning of these projects is not a decade long process. The NJ developers will have a framework to follow that Cape Wind did not.

Hopefully, the fact that there is a legal framework in place will shorten the legal wrangling over the project. I do believe that there will be many lawsuits challenging these projects. Local, county and some legislators have expressed concern over off shore wind development. Local property owners will certainly band together to challenge these projects. There may also be an environmental group or two who may challenge the projects in Court.

In short I believe after the NEPA process has been engaged and the lawsuits resolved one or more of the proposed wind projects will go forward. What I am fairly certain of is that no project will be in the water and generating electricity by the end of 2012. The State will have to adjust their energy master plan to account for the revised time table.

Grays Harbor's application is dismissed

Written by Mike Pisauro on May 13th, 2009 in Federal, Ocean, Renewable Energy, Wave & Tidal, Wind | No Comments »

I saw a post, at RenewablesOffshore regarding the memorandum of understanding between FERC and MMS.  As I noted previously these agencies have entered into a memorandum of understanding on the handling of offshore renewable energy projects.  As a result of the MOU, FERC has dismissed Grays Harbor’s application for a preliminary permit for a wave project off the coast of Atlantic City.  I wrote about Grays Harbor’s application here.   The dismissal at least deals with the objects filed by NJ Board of Public Utilities, EPA, Interior, several of the wind energy companies, and the New Jersey Environmental Lobby.  This clears the way to an organized way to move NJ’s goals of offshore renewable energy forward.

Also, this MOU opens the way for the final MMS’ rules to be adopted to regulate the offshore renewable energy projects.

MMS releases final rule for offshore renewable energy's leasing

Written by Mike Pisauro on April 22nd, 2009 in Federal, Global Warming, Ocean, Renewable Energy, Wind | No Comments »

On Earth Day, MMS released for publication the final rule on offshore renewable energy leasing of the outer continental shelf.  The 579 rule.  You can find the rule (here) and the much much shorter press release (here).  This is good news for New Jersey.  Once the rule takes affect after 60 days, the three proposed wind farms can begin the leasing process.  Assuming the environmental impact statements show that the harm to the ocean environment is minimal or none then NJ can get just a little closer to its goal under its energy master plan.

Hopefully, I will get a chance to reveiw the final rule and I will post my thoughts.

Happy Earth Day!

Governor takes small steps for renewable energy, more needed.

Written by Mike Pisauro on April 4th, 2009 in Global Warming, land use, legislation, Renewable Energy, Solar, Wind | No Comments »

Late last year the State finalized its Energy Master Plan. That plan was several years in the making and was over a decade overdue. The EMP called for increasing NJ’s energy efficiency and the generation of electricity from renewable energy. The State also tied its Global Warming Response plan very tightly with the Energy Master Plan. The sooner NJ puts in place the policies necessary to achieve the twin goals of reducing our generation of energy from dirty power and reducing our global greenhouse gas emissions the better of we will be economically and environmentally. In baby steps towards these goals, the Governor recently signed into three law three bills that will reduce our use of fossil fuels and encourage the development of electricity form renewable energy.

P.L. 2009 c. 33 (A1558/S2265) will help encourage solar energy by making solar photovoltaic panels an option you can choose as when you buy new construction. This new laws requires developer of 25 homes or more to explain to new home buyers the benefits of solar energy, the financial incentives available and to install the panels on the new home if chosen by the buyer. By making solar energy systems just another option a home buyer can choose from as their new home is built, hopefully we will continue to grow NJ’s place as a leader in renewable energy.

P.L. 2009 c. 35 (A2550/S1299) defines solar and wind facilities as a permitted use in industrial zones with 20 or more acres. This bill would help prevent municipalities from excluding solar and wind facilities from industrial zones. In essence towns cannot prohibit renewable energy in these zones by defining them as not a permitted use. They will still be able to discourage these systems by setting up prohibitive setback requirements or height limitations.

P.L. 2009 c. 34 (A2507/S1932) gives BPU the authority/requirement to grant money to companies that was to install cogen facilities. Cogen facilities are systems that use oil/gas/etc. to generate not only electricity but heat as well. Normally, fossil fuels are used to generate heat for a building or electricity but not both. By encouraging the use of cogen the overall use of fossil fuels will decrease.

There is one bill that was considered by both houses of the legislature on March 16th – A3062/S1303. These bills would define wind and solar systems as inherently beneficial. This definition is necessary because many towns require a person who wishes to install a renewable energy system (in particular wind) to apply for a variance. With certain variance applications a person will have to prove that the renewable energy system is “inherently beneficial.” This term has never been defined by the legislature up to now, but we have had to rely on each individual town and the courts to provide the definition on a case by case basis. While this bill is not best solution it is a step in the right direction.

The run of the mill variance application is time consuming, money consuming process without any guarantee that the end result will be favorable. When the variance application is for renewable energy the process because more expensive and more time consuming. Also, it will drive everybody who opposes change to the hearings. These “nimby” people will spout “facts” to oppose the project which have very little relationship to reality. Declaring renewable energy as inherently beneficial, one hurdle is removed from the process.

All of these bills are good first steps to reaching the goals of the energy master plan and the global warming response act. There are several other bills, that will further these goals even more, that have been introduced and are awaiting consideration. I will discuss these bills in a future post.

FERC and MMS begin to play nice.

Written by Mike Pisauro on March 17th, 2009 in Federal, Ocean, Renewable Energy, Wave & Tidal, Wind | 1 Comment »

The Federal Energy Regulatory Commission (FERC) and Mineral Management Service (MMS) have finally decided to work together in dealing with offshore renewables.  They issued a press release announcing that they have agreed to work together in permitting offshore renewables. Up till now there was a dispute as to which agency had jurisdiciton over the permitting of wave and tidal projects in Federal waters.  I have been meaning to write about the dispute and how it was going to work against progress but had not gotten around to it.  Instead Carolyn Elefant has a discussion of the issue on her blog, Offshore Renewable Energy Blog.

The press release seems to indicate that FERC will have jurisdiction over wave and tidal projects and MMS will have jurisdiction over wind projects in federal waters.  We will have to wait to see how the Memorandum of Understanding sets out how this is going to work.  For example, while FERC will be issuing permits for wave and tidal projects does the applicant have to also get a lease from MMS?  What happens if they have the permits but cannot get the lease?  What happens when a permit application goes in for a wave project in the same area as where developers are seeking leases from MMS for wind projects?   That is exactly what is happening with Grays Harbour proposed site is overlayed with Blue Water Wind and one other (i think Deepwater Wind) sites.

If the Country is interested in developing renewable energy than these kinds of conflicts really need to be worked out ahead of time not as they develop.  Back in 2004 the U.S. Commission on Ocean Policy recommended that these issues be dealth with ahead of time and that the jursidicational disputes be clarified with a National Ocean Council.  We will see if the FERC and MMS compromise provides a workable framwork.

Wind and Solar are ahead of coal in more than ways than one.

Written by Mike Pisauro on February 17th, 2009 in Business, Renewable Energy, Solar, Sustainability, Wind | No Comments »

Everyone is talking about renewable energy.  Renewable energy is part of the Obama administration’s plan  and part of the stimulus plan.  Renewable energy is front and center to the State’s energy master plan and its Global Warming Response Act.  Well, wind and solar energy is also a major employer and economic driver.    I saw a couple of days ago over at Renewable + Law that wind and solar employees more people than the coal industry.

That is fairly amazing considering on how little electricity the country generates from renewables compared to the almost 50% from coal.  It does mean that by investing in renewables government will be driving employment.  I hope this also means that are at a tipping point away from fossil fuels and moving towards a more sustainable manner for generating energy.

U.S. somehow is #1 for wind energy

Written by Mike Pisauro on December 31st, 2008 in legislation, Renewable Energy, Wind | No Comments »

The American Wind Energy Association noted in their 2008 Year End Review that the United States is #1 for wind energy production.  We as of September 2008 produce more than 21,000 megawatts of electricity from wind turbines.  AWEA’s news release is here.  Given the Bush administration’s lack of interest in renewable energy and the almost expired tax credits for renewable energy, this is fairly amazing.

With President Elect Obama’s professed support for renewable energy and NJ’s goal of 30% of our electricity coming from renewable sources in our new energy master plan, I hope NJ and the rest of the Country can improve on this milestone.  Given local opposition to the installation of wind turinbes in New Jersey I do have my doubts whether NJ will be a leader in wind energy.  That opposition comes from towns and individuals seeking to ban wind turinbes or objecting to their installation.  There is at least on bill in the legislature which would make it somewhat easier for a person or business to install wind turbines on their property but that bill cannot get a hearing in an Assembly committee and does not seem to be moving in the Senate either.

I have hopes, but I am not holding my breath.    Hopefully 2009 brings better things.