DEQ’s Renewable Energy Permit by Rule: Overview of Wind Regulation

1. DEQ’s Renewable EnergyPermit by Rule:Overview of Wind Regulation Carol C. Wampler Virginia Department of Environmental Quality For Virginia Offshore Wind Conference Virginia Beach June 17, 2011

2. An Overview . . . of how DEQ worked to “ensure efficient yet thorough environmental review” at the state level

3. What is DEQ’s policy regarding renewable energy?

4. VIRGINIA ACTS OF ASSEMBLY -- 2009 RECONVENED SESSION CHAPTER 808 & 854

5. Directs DEQ to develop by regulations “permits by rule . . . for the construction and operation of small renewable energy projects, including such conditions and standards necessary to protect the Commonwealth’s natural resources”

6. Statutory Goals & Policy: • Promote renewable energy – provide certainty, timeliness, reasonable regulatory requirements • Protect natural resources – provide enforceable standards that are protective of wildlife & historic resources at/near project site

7. What is a “small renewable energy project”?

8. An electrical generation facility producing electricity from. . . • sunlight • wind • falling water • motion • tides • geothermal power < 100 MW OR

9. An electrical generation facility producing electricity from . . . • biomass • energy from waste • municipal solid waste < 20 MW

10. Status of Wind PBR: • Statutory deadline was January 1, 2011 • After 22 RAP meetings, 2 public comment periods, 1 public hearing, 1 public meeting, and Executive Review, the Wind PBR became final & effective on December 22, 2010 • Drafting of Guidance now in progress

11. Regulatory Advisory Panels(RAP’s) Balanced Group Of Stakeholders Including . . .

12. Regulatory Advisory Panels: Virginia Departments of . . . • Game & Inland Fisheries • Historic Resources • Conservation & Recreation • Marine Resources • Environmental Quality • Agriculture & Consumer Services • Forestry • Mines, Minerals & Energy

13. RAP’s (continued) • Quasi Agencies: VIMS, CCB, VA Aquarium • State Universities • VACO & Local Officials • Advocacy Groups – TNC, PEC, Sierra, Audubon • Developers – Utility & Independent

14. What process does the PBR replace?

15. State Corporation Commission: • Developer applies to SCC for individual order/permit • Environmental agencies submit recommendations to SCC re proposed site • SCC decides what environmental requirements to include in order for that site

16. New System: • Developer applies to DEQ for permit by rule • Environmental requirements are set forth “up front” in regulation for all sites • DEQ, in consultation with other agencies, reviews application • If applicant meets requirements and submits required certifications, then DEQ notifies applicant that project is authorized under PBR (or states deficiencies)

17. WHAT IS A“PERMIT BY RULE”?

18. A Permit by Rule (PBR) is . . • Expedited permitting process used by DEQ for certain solid waste facilities & now for renewable energy • Regulation stating “up front” the criteria that applicant must meet • Requirement that applicant submit docs/certification that has met requirements • Requirement that DEQ review submission for completeness & adherence to regulation • If complete & adequate, then DEQ notifies within 90 days that project is authorized under the PBR

19. A Permit by Rule is not . . . • An individual permit • Site-specific • Based on a case-by-case technical analysis

20. Statutory Permit by Rule Requirements (“full PBR”)

21. PBR Criteria10.1-1197.6.B • Notice of intent • Local-government certification • Interconnection studies • Final interconnection agreement • PE certification of generation capacity • Analysis of impacts on NAAQS

22. PBR Criteria (continued) • Analysis of impact on natural resources • Determination of likely significant adverse impacts; mitigation plan & monitoring • PE certification of design • Operating plan • Site plan • Certification re environmental permits • Public meeting • Public comment period

23. DEQ’s Operative Provisions10-1:1197.6.B.7 & 8: • Analysis of natural resources (pre-construction) • Determination of likely significant impact • Wildlife • Historic resources • Mitigation & post-construction monitoring

24. NOTE : All necessary environmental permits (obtained or applied for) are a statutory prerequisite for PBR coverage (including DEQ permits, such as Air, Wetlands, Waste).

25. Further Note: 10.1-1197.6.A DEQ has authority over CONSTRUCTION and OPERATION of small renewable energy projects

26. Phases of a Project: • Siting • CONSTRUCTION • OPERATION • Decommissioning

27. Local GovernmentAuthority • Siting– compliance with local land-use ordinances • Decommissioning • Health, safety, welfare • Police powers

28. Local government certification of compliance with land-use ordinances is a prerequisite for PBR coverage

29. Local Outreach Chairman, DEQ Director David Paylor Informal Stakeholder Group met on March 31 & June 8 Work is continuing Tentative goals include model ordinances, technical support, workforce training, and repository of research

30. Local OutreachStakeholder Group includes: • Local Government • Developers • NGO’s/Citizens • State government • Academia

31. Federal requirements . . . Although not referenced in our state regulation, federal requirements must be met. Potentially, for example: Army Corps, FAA, US Fish & Wildlife, National Park Service

32. Our Policies & Goals include . . . • Certainty • Timeliness • Balance between facilitating renewable energy & protecting natural resources • Sound science • Consensus-based decisions where possible • Partnership of local, state, & federal authorities

33. Are these policies & goals also relevant for Offshore Wind?

34. Contact Information Carol C. Wampler Department of Environmental Quality 804-698-4579 carol.wampler@deq.virginia.gov Website: deq.virginia.gov Program information: Renewable Energy

35. “Small Renewable Energy Project” PBR Virginia Energy Policy E=promote renewable energy Permit by Rule Reality Legality e=protect local resources