Posts Tagged ‘Renewable Energy’

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.

NJ Governor Canditates promote renewable energy, NJ needs more than rhetoric

Written by Mike Pisauro on July 18th, 2009 in land use, legislation, Politics, Renewable Energy | No Comments »

Recently the Republican and the Democratic candidates for NJ governor addressed renewable energy. NJ needs renewable energy. The Country and the World needs the switch to renewable energy. Christie’s website indicates we have one of the strongest renewable energy portfolio standard (RPS), but rank 48th in the country for renewable energy generation. Why? Well according to the EIA a vast majority of the renewable energy capacity and generation in the country is hydro power. NJ does not have a lot of hydro possibilities. So, if you take out hydro from the calculations, I am not so sure that NJ is doing so badly. For example, NJ is second only to California in solar generation. Granted NJ is a long way down from California but it is still ahead of 48 other states. Take a look at NJ is #2 in Solar and seeking to increase.

After hearing and reading about Chris Christie’s stump for renewable energy, I took at look at his website for more information on how he plans on getting us to the promised land of more renewable energy. With two exceptions the plan was a little sparse. Lots of rhetoric and not a lot of detail. Mr. Christie indicates that one of his methods encourage manufacturers of renewable energy systems to build plants here is to offer a credit of up to 100% corporate business tax or the insurance premium tax. I am not going to delve into the murky depths of whether a 100% tax credit is good or bad. I do wonder how a tax credit encourages the installation of renewable energy in NJ. The plan may or may not encourage companies to locate here, but it does not affect the actually installation of systems in NJ.

Christie also pledges to make solar farms a permitted use under our land use laws. He also pledges to require all landfills to install renewable energy systems on their properties. Lastly, he would allow up to 20% of a preserved farm to be used for solar farms instead of traditional farming products, i.e. vegetables, fruits, etc. There is no mention in his plan on how he will encourage and grow the use of wind energy in the State.

On the other hand, Gov. Corzine’s campaign website has no mention of a renewable energy plan. I presume he will point to the Energy Master Plan released late last year. That plan calls for 1000 megawatts of offshore wind by 2012 (that time frame looks to be way off, please see my post on MMS leases), and an increase in renewable energy generation to 30% by 2020 from the current goals of 22.5%. Those are good goals. But like the Christie plan goals without real concrete steps on how to reach them are not useful. The EMP is short on implementation. As noted above, NJ is not going to have 1000 megawatts of offshore wind by 2012.

Christies plan for solar farms on preserved farmlands is in one shape or form already in the works. S1538 was introduced in the Senate on March 17, 2008. It would allow wind, solar and biomass generation on up to 1% of the farmland including preserved farmland. The bill was passed in the Senate in June 25, 2009 and referred to the Assembly appropriations committee. An Assembly version was heard and reported out of committee, but it has not been considered by the full Assembly yet. With the upcoming elections in the Assembly, it may not be voted on by the full house until after the November elections.

There is also a bill (S1303) that would define wind and solar generation systems as inherently beneficial for land use purposes. This bill has passed out of both houses and is waiting for the Governor’s signature. That bill took almost a year and half to get where it is now. Hopefully the governor signs it into law. This bill is not the full measure that Christie calls for, but is a very small step in the right direction.

Last year the State did enact a law last year that prohibits municipalities from considering the value of renewable energy systems when calculating a properties value. That is a good step in encouraging people and businesses to install renewable energy systems. The law removes a perverse disincentive to renewable energy.

While it is good that both the Democratic and the Republican candidates have made renewable energy a part of their campaign, the State, its citizens and the environment needs more than rhetoric. The State needs to take the goals of the EMP and to implement them in an effective and efficient manner. The State will have to move several pieces of legislation in order to meet the 30% RPS goals some of which are noted above.

One of the most important steps to bringing renewable energy jobs and renewable energy to NJ is the removal of State and local impediments to renewable energy installation even the 22.5% goals by 2021 that are currently in place are unreachable. I have also called for the passage of a state law that would prohibit municipalities from restricting the installation of renewable energy systems. I have published an article discussing the conflicts between renewable energy and land use law. So far no legislator has been willing to introduce that legislation to would truly move the State to a renewable energy future. I do not believe that such legislation should not be earth shattering but would be a change in emphasis. We would be putting teeth in our current land use laws that require:

NJSA 40:55D-2.   It is the intent and purpose of this act:

a. To encourage municipal action to guide the appropriate use or development of all lands in this State, in a manner which will promote the public health, safety, morals, and general welfare;

j. To promote the conservation of historic sites and districts, open space, energy resources and valuable natural resources in the State and to prevent urban sprawl and degradation of the environment through improper use of land;

n. To promote utilization of renewable energy resources . . .

Proposed legislation would elevate the goals of the land use laws to requirements for municipalities to meet. Municipal restrictions on renewable energy should be prohibited by state law unless there is a true public health and safety issue. This proposed legislation would be in line with laws already in places like California and Wisconsin. Such legislation would put teeth into the goals of NJ’s land use laws and to coordinate the States strong goals of promoting renewable energy. Hopefully, who ever the next Governor of NJ is, that person keeps their commitment to renewable energy and puts in place measures to really meet those commitments.

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!

RGGI's 3rd Auction adds to NJ coffers

Written by Mike Pisauro on April 5th, 2009 in Clean Air, Global Warming, Renewable Energy | No Comments »

On March 18th RGGI had its third auction of CO2 allowances. Overall the auction brought in $117,248,629.80. The auction sold not only 2009 allowances at $3.51 per ton and also sold some 2012 allowances at $3.05 per ton. Of the total proceeds, NJ will receive $15,909,991.11 for the 2009 allowances and 864,058.90 for the 2012 allowances.

How will the $16,774,050.01 be spent in NJ? NJ enacted the Global Warming Solutions Fund (2007 c. 340) back in the very beginning of 2008. The statute provides on how the funds received from the RGGI auction will be allocated.

Sixty percent of the receipts will be sent to the NJ Economic Development Authority. The EDA is to provide grants or other financial assistance to commercial, institutional and industrial groups’ implementation of energy efficiency projects and installation of efficient electric generation facilities which could, but does not have to include renewable energy systems.

Twenty percent of the funds are to be dedicated to the reduction of electricity demand or costs of electricity for low and moderate income residential customers.

Ten percent goes to DEP for support of local government’s efforts to reduce greenhouse gas emissions. These efforts can include energy efficiency, renewable energy and land use programs.

Lastly the remaining ten percent is to be used by the DEP for forest and tidal marsh stewardship and restoration programs.

Hopefully, NJ takes these funds and uses them to truly achieve maximum results of reducing energy consumption through effective energy efficiency programs and the promotion of renewable energy. The next auctions are scheduled for June 17th and Sept. 9th. Beyond that may be an issue as a recent lawsuit by Indeck Energy is challenging NY’s RGGI program. Are other companies going to follow? In a future post I will take a look at the Indeck suit.

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.

Federal RPS has been introduced

Written by Mike Pisauro on February 8th, 2009 in legislation, Renewable Energy | No Comments »

On Wed. Representative Markey posted a bill that would create a Federal Renewable Portfolio Standard (RPS). The bill proposes that a certain percentage of the electricity generated in the country comes from renewable sources. The bill proposes the following schedule:

Year Required %

2012 ……………………….. 6.0%

2013 ……………………….. 6.0%

2014 ……………………….. 8.5%

2015 ……………………….. 8.5%

2016 ……………………….. 11.0%

………………………..

2023 ……………………….. 21.0%

2024 ……………………….. 23.0%

2025 – 2039 …………….. 25.0%

Overall, this bill is a modest proposal. Currently, 31 states plus D.C. have various forms of a RPS already in place. For example under this bill the country would be generating 21% of its electricity from renewable sources by 2022. This compares well with Arizona, for example which has set 12% for its 2022 goal. And it compares well with NJ which currently requires 22.5% by the same time frame. Please note that under the recently released EMP NJ is proposing to increase its 2022 goals to 30%. It does not compare as well as California which is going to require 33% of its electricity to come from renewable sources by 2020. New York has targeted 25% of its electricity should come from renewable sources by 2013.

There are several good things in this bill. First, by creating a national RPS there will be a drive to changing how we create energy from fossil fuels to renewable energy. Second, the bill has, like almost all environmental bills, a clause which allows States to do better than the Federal government has proposed. So, even if this bill is enacted, California’s goal of 33% by 2020 will not be negatively affected by the Fed’s goal of 17.5%. NJ can continue to pursue its goals of 30% by 2020 as well.

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