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Renewable Energy on Brownfields: Latest Developments

Webinar

July 31, 2013

Empowering localities to revitalize their communities through the exchange of strategies, tools, and best

practices for brownfields reuse

NALGEP’s Environmental Justice Workshop – Save the Date! • Wednesday, August 28th in East Tampa, FL

• Topics will also include Healthfields, Community Engagement, and more

• Sponsored by the Florida Brownfields Association ‘s EJ & Outreach Committees and NALGEP

• Can’t travel? The workshop will be available via webinar.

The NALGEP Brownfield Communities Network • More than 2000 brownfields leaders in the community, non-profit,

government and private sectors • Overcoming barriers by convening experts, preparing white papers,

and educating decision makers • Providing technical assistance and sharing lessons learned through

regional workshops, webinars, and conferences

Cultivating Green Energy on Brownfields: A Nuts and Bolts Primer for Local Governments

NALGEP’s 2012 Report

Thank you to NALGEP’s 2013 Sponsors

Webinar Speakers

Ken Brown, Moderator • Executive Director of NALGEP

Anjali Patel • Attorney at Spiegel & McDiarmid LLP

Adam Klinger and Marc Thomas • EPA’s RE-Powering America’s Land, Center for Program Analysis, OSWER

Doug MacCourt • Attorney at Ater Wynne LLP

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CULTIVATING GREEN ENERGY ON BROWNFIELDS

7

NALGEP Webinar

July 31, 2013

Anjali Patel

NALGEP

NALGEP’s 2012 Report

Cultivating Green Energy on

Brownfields: A Nuts and

Bolts Primer for Local

Governments

8

9

Some of the Parties Involved

Renewable Energy on

a Brownfield

Attorneys (Environmental, Energy, Land

Use)

Engineers

Developers

Local Utility

Land Owner Technical

Assistance Organizations

Zoning Board

Federal and/or State EPA

Federal, State and Local Permitting Authorities

10

Cultivating Green Energy

Where to site and what renewable energy can be sited?

How are renewable energy systems financed?

What are some ways local governments can get involved or encourage this type of development?

Case Studies and Links to Additional Resources

11

Benefits of Siting Renewable Energy on a Brownfield

Productive reuse of land

Lease income/property tax

payments

Jobs

Compatible with other beneficial

redevelopment

Source of “green” energy for your

community and/or local utilities

Preservation of greenfields

Other environmental benefits

12

Uses for the Energy: Remediation

Pemaco Superfund Site

• Maywood, California

• 3.4 kw PV system

Photo © U.S. EPA Office of Superfund Remediation and

Technology Innovation

Photo © U.S. EPA Office of Superfund Remediation

and Technology Innovation

13

Uses for the Energy: On-Site Power Consumption and Net Metering

Fort Carson Solar Array

• Fort Carson, Colorado

• 2 MW PV system

Summitville Mine

Hydroelectric Project

• Rio Grande County,

Colorado

• 35 kW

14

Uses for the Energy: 3rd Party Sale or Utility Owned

Silver Lake Solar

• Pittsfield, Massachusetts

• 1.8 MW

Steel Winds

• Lackawanna, New York

• 20 MW

Examples of Where to Site and What to Site

15

Where:

• Commercial or industrial properties

• Closed landfills

• Mines

• Agricultural facilities

• Former gas stations

Renewable Energy Technologies

• Solar (Photovoltaic, CSP, Water Heater)

• Wind Turbines

• Biomass (Landfill Gas, Biopower)

• Small hydro

• Geothermal

High Level Site Assessments

Resource Potential Maps

Economic and Performance Assessment Models

(PVWatts, SAM, JEDI)

16

Site Specific Considerations

Power potential

Engineering constraints

Clean-up status and potential

liability

Transmission and

interconnection infrastructure

Transportation infrastructure

Liability concerns

17

Economic Feasibility

Government Incentives

• Brownfield redevelopment incentives

Assessment Pilot/Grant

Clean-up Grants

Revolving Loan Fund Pilots/Grants

• Renewable energy incentives

Tax Incentives (PTC, ITC, 1603

Cash Grants)

Renewable Energy Production

Incentive

Bonds

Grants

18

Financing Continued

State and Local Utility Policies and Incentives

• Renewable Portfolio Standards

• Net Metering

• Interconnection Standards

• Loans/Grants

• Tax Incentives or Rebate Programs

Energy Sales

• Power (Power Purchase Agreement, Net Metering etc.)

• Renewable Energy Credits (RECs)

19

Renewable Portfolio Standard Policies.. www.dsireusa.org / March 2013.

29 states,+ Washington DC and 2

territories,have Renewable Portfolio

Standards (8 states and 2 territories have

renewable portfolio goals).

How can Local Governments participate?

Educate yourself

Publicize shovel ready sites and the clean-up status of non-shovel ready sites

Spearhead a Project/Participate in a Development Partnership

Work with federal agencies (EPA- RE-Powering America, NREL- Technical Assistance Program) and state partners (e.g. state brownfield offices)

Lease land and/or purchase power

Offer local financial incentives

Lower zoning hurdles and offer permitting assistance

Conduct an all-appropriates inquiry for liability protection

Community outreach

21

Contact Information

Anjali Patel

anjali.patel@spiegelmcd.com

202.879.2041

22

RE-Powering America’s Land

NALGEP Webinar

July 31, 2013

WIND SOLAR

GEOTHERMAL BIOMASS

SOLAR WIND

RE-Powering America’s Land

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Encourages renewable energy development on current and formerly

contaminated lands, landfills and mine sites when such development

is aligned with the community's vision for the site.

Why Renewables on Potentially

Contaminated Lands

25

Gain community support

Leverage existing

infrastructure

Improve project

economics through

reduced land costs &

tax incentives

Protect open

space

Build sustainable

land development

strategy

Provide low-cost,

clean power to

communities

Reduce project

cycle times with

streamlined zoning

and permitting

RE-Powering America’s Land

26

- Brownfield Sites, but also…

- Superfund Sites

- Other Federal CERCLA Sites

- RCRA Corrective Action Sites

- Federal Facilities

- Mining Sites

- Leaking Underground Storage Tank Sites

- State Voluntary Cleanup Sites

- MSW and Industrial Landfills

- Etc.

26

Potential Contaminated Sites Can Include:

Photo Courtesy of Volkswagen America

27

RE-Powering America’s Land Projects installed nationwide

Wind turbines installed during remediation at

abandoned steel mill

Texas

Concentrators installed on

remediated mine tailings

New Mexico

New York

Solar geomembrane capping landfill

Georgia

Wind turbines at former industrial

site

Wyoming

Solar array installed on landfill cap

Colorado

Solar array at former manufactured gas

plant

Massachusetts

Solar array at former foundry

Illinois

California

Solar array at Superfund site

28

Project Tracking

28

RE-Powering Installations

# Sites

Installed

Capacity (MW)

NY 6 67.2

NJ 10 22.7

MA 16 21.4

SC 1 20.0

WY 2 19.8

NV 1 14.2

CA 8 12.1

IL 2 10.9

TN 2 9.7

CO 5 5.9

RoUS 20 13.0

73 216.9

Selected Tools & Resources

Mapping and Screening Tools

• RE-Powering Mapper Tool

- National Maps of Screened Sites

• Solar and Wind Decision Trees

Technical Assistance and Support

• EPA-NREL Feasibility Studies

• Liability Considerations

Best Practices

• Handbook on Siting Renewable Energy While

Addressing Environmental Issues

• Best Practices for Siting Solar Photovoltaics on

Municipal Solid Waste Landfills

• Fact Sheets

Tools and Resources

29

RE-Powering Mapper Google Earth Overlay

Mapped inventory of 66,000+ EPA and

select state tracked sites (over 35 million

acres of land)

> 185,000 renewable energy opportunities

across all technologies and scales

Incorporates data from:

• EPA Cleanup and Landfill Programs

• National Renewable Energy Lab

• Wind, Solar, and Biomass Resources

• Southern Methodist University and USGS

• Geothermal

• Department of Homeland Security

• U.S. Highways

• Railroads

• Transmission Lines

• Substations

• State Agencies from CA, HI, NJ, NY, OR, PA,

VA, and WV

U.S. Environmental Protection Agency 30

U.S. Environmental Protection Agency 31

RE-Powering Mapper Google Earth Overlay

Electric Boat Corp

Positive Screening for Large Scale PV

(41 MW)

Site type: RCRA

Davisville Naval Construction Battalion

Center

Positive Screening Utility Scale Solar PV

(215 MW)

Site type: Superfund

T.H. Baylis

Positive Screening for Off-Grid PV

Site type: Brownfields

Screening Criteria:

• Resource Availability

• Acreage

• Infrastructure (distance to

transmission lines, graded roads)

32

RE-Powering Mapper Google Earth Overlay

Geothermal Heat

Pump Potential

Off-Grid PV

Potential

Biopower Potential

90 kW PV installed

RE-Powering Mapper EPA Tracked Sites: Site-level information

33 U.S. Environmental Protection Agency 33

RE-Powering Google Earth Solar PV & CSP Potential – U.S.

6.9x US Renewable

Energy Capacity 146 GW, including hydro

2011 Renewable Energy Databook, NREL

Large- and Utility-Scale PV Potential

+

U.S. Environmental Protection Agency 34

Solar Opportunities

Solar PV CSP

Large Scale PV Utility ScalePV*

CSP

2,389

706

9,117 225 GW potential using 20% of 6.7 million acres;

1 MW / 6 acres

783 GW potential using 20% of 23.6 million acres;

1 MW / 6 acres

# sites reflects screening result for largest scale opportunity

* Includes Policy-Drive, Utility-Scale PV

U.S. Environmental Protection Agency 35

RE-Powering Screening Dataset

Contains detailed site information for all 66,000+ sites RE-Powering tracks

Example: Sites in Aurora, Colorado with Large Scale Solar PV

Potential (over 300 kW capacity)

36

RE-Powering America’s Land

www.epa.gov/renewableenergyland

Adam Klinger, RE-Powering Team Lead

klinger.adam@epa.gov

202-566-0546

Marc Thomas, RE-Powering Policy Analyst

thomas.marc@epa.gov

202-566-0791

Katie Brown, AAAS Science & Technology Policy Fellow

Hosted by US EPA

brown.katie@epa.gov

415-972-3073

General inquiries

cleanenergy@epa.gov

Renewable Energy on Brownfields

Project Essentials / Mine Site Project Case Study

Douglas C. MacCourt, Ater Wynne LLP

Chair Past Chair, Executive Committee

Indian Law Practice Group Indian Law Section

Ater Wynne LLP Oregon State Bar Association

dcm@aterwynne.com

www.aterwynne.com NALGEP Board of Directors

NALGEP WEBINAR

Renewable Energy on Brownfields

July 31, 2013

Utility/Community Scale Power on Brownfields

1. Case study:

- Tohono O’odham

Nation & Tucson

Electric Power

- Phased solar pv on

tribal lands: EPA study

- Developing on the

active Asarco

Mission mine

complex

2. Project Essentials

3. Resources

Case Study: The View from Space

Project Basics

• The ASARCO Mission Mine Complex is a

commercial open pit / underground copper

mine

• The facility is located near Sahuarita,

Arizona (18 miles south of Tucson).

• The mine site covers approximately 19,000

acres (29 square miles) and includes an

open pit 2.5 miles long and 1.5 miles across,

associated crushing, grinding and flotation

facilities, tailings areas, waste rock dumps,

and warehouse and administrative areas

Tribal Interests

• A portion of the mine complex is located on

leased lands within the San Xavier District of

the Tohono O’odham Indian Nation

• The lands within the District, referred to

collectively as “San Xavier Reservation

lands,” consist of both Nation Trust Lands

and individually-allotted Trust Lands

• Tucson Electric Power (TEP) and a Section 17

Corporation formed by the tribe negotiated a

lease of trust lands on the brownfield to site

and operate solar pv for delivery of electricity

to TEP customers

Progress

• EPA technical assistance from R9

Abandoned Mine Lands (AML) Team

confirmed geotechnical suitability of site

for either surface mount or piling mounted

pv panels

• Connection to nearby TEP substation

• Lease of project site

• Phased buildout starting with 5 MW in

2013, potential increase to 50 MW in five

years

SunPower Photovoltaic Technology

• New concentrator

technology for site

application

• 7X increase to

output per pv

panel

• Low tech, some

additional space

needed to avoid

shadow effect

Asarco Mission Mine Complex

EPA Report on Asarco Mine Tailing Project

Project Feasibility

• Determining renewable energy project

feasibility and attracting capital for

renewable projects generally requires five

essential elements:

– 1. Renewable resource

– 2. Site control

– 3. Buyers for the energy

– 4. Transmission to market

– 5. Incentives (production tax

credits, other tax incentives)

Have Energy Resources Been Assessed?

• Type and amount/magnitude of resource

• Economic feasibility of development

• Will resource(s) meet demand?

• Ability to meet other objectives

– Sponsor of renewable energy projects

– Utility owners/operators

– Regulators

– Public/community

Land Control

• Site control and fair market valuation early in the development process

• Requirement for many regulatory processes

– Key for brownfield issues: • Time/cost for site preparation

• Price for power must remain competitive

• Budget and schedule must account for all the approvals

– Major federal action – NEPA

– Overlapping jurisdictions

Buyers

• Fairly certain in states with RPS

• Price increase predictions driven by climate change issues changing the demand and supply outlook

• Utilities

– Firm capacity?

– Infrastructure?

• Long-term offtake agreements (power purchase agreements or “PPA’s”) with credit-worthy third party buyers

Transmission

• Distance to transmission system

• Market factors for creative transmission contracts

• Load capacity to deliver to market

• Ballpark overview a fairly simple exercise for qualified energy consultants

• Regional transmission coordinating agencies manage regional transmission grid and maintain data, require reliability and capacity studies

• Other DOE agencies, private and public utilities with transmission info

Key Drivers for Energy Investment

• Tax benefits: Accelerated depreciation and

Production Tax Credits (renewables)

• Serve local energy demands (small projects)

or economic development with utility scale

projects with revenues to participants

• Cash flow to equity investors

• Affiliate contracts

• Economic Development and Other Policy

– State/federal incentives

– Environmental/social benefits

National Renewable Energy Laboratory

• Renewable Energy

Development in

Indian Country: A

Handbook for

Tribes

• Project essentials

• http://www.nrel.go

v/docs/fy10osti/480

78.pdf

For Updates and Resources:

Doug MacCourt

Ater Wynne LLP

1331 NW Lovejoy St., Suite 900

Portland, Oregon 97209

dcm@aterwynne.com

503-226-8672 telephone

503-705-6031 cell

503-226-0079 facsimile

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