10.1-1197.6 - Permit by rule for small renewable energy projects.

§ 10.1-1197.6. Permit by rule for small renewable energy projects.

A. Notwithstanding the provisions of § 10.1-1186.2:1, the Department shalldevelop, by regulations to be effective as soon as practicable, but not laterthan July 1, 2012, a permit by rule or permits by rule if it is determined bythe Department that one or more such permits by rule are necessary for theconstruction and operation of small renewable energy projects, including suchconditions and standards necessary to protect the Commonwealth's naturalresources. If the Department determines that more than a single permit byrule is necessary, the Department initially shall develop the permit by rulefor wind energy, which shall be effective as soon as practicable, but notlater than January 1, 2011. Subsequent permits by rule regulations shall beeffective as soon as practicable.

B. The conditions for issuance of the permit by rule for small renewableenergy projects shall include:

1. A notice of intent provided by the applicant, to be published in theVirginia Register, that a person intends to submit the necessarydocumentation for a permit by rule for a small renewable energy project;

2. A certification by the governing body of the locality or localitieswherein the small renewable energy project will be located that the projectcomplies with all applicable land use ordinances;

3. Copies of all interconnection studies undertaken by the regionaltransmission organization or transmission owner, or both, on behalf of thesmall renewable energy project;

4. A copy of the final interconnection agreement between the small renewableenergy project and the regional transmission organization or transmissionowner indicating that the connection of the small renewable energy projectwill not cause a reliability problem for the system. If the final agreementis not available, the most recent interconnection study shall be sufficientfor the purposes of this section. When a final interconnection agreement iscomplete, it shall be provided to the Department. The Department shallforward a copy of the agreement or study to the State Corporation Commission;

5. A certification signed by a professional engineer licensed in Virginiathat the maximum generation capacity of the small renewable energy project by(i) an electrical generation facility that generates electricity only fromsunlight, wind, falling water, wave motion, tides, or geothermal power asdesigned does not exceed 100 megawatts, or (ii) an electrical generationfacility that generates electricity only from biomass, energy from waste, ormunicipal solid waste as designed does not exceed 20 megawatts;

6. An analysis of potential environmental impacts of the small renewableenergy project's operations on attainment of national ambient air qualitystandards;

7. Where relevant, an analysis of the beneficial and adverse impacts of theproposed project on natural resources. For wildlife, that analysis shall bebased on information on the presence, activity, and migratory behavior ofwildlife to be collected at the site for a period of time dictated by thesite conditions and biology of the wildlife being studied, not exceeding 12months;

8. If the Department determines that the information collected pursuant tosubdivision B 7 indicates that significant adverse impacts to wildlife orhistoric resources are likely, the submission of a mitigation plan detailingreasonable actions to be taken by the owner or operator to avoid, minimize,or otherwise mitigate such impacts, and to measure the efficacy of thoseactions;

9. A certification signed by a professional engineer licensed in Virginiathat the small renewable energy project is designed in accordance with all ofthe standards that are established in the regulations applicable to thepermit by rule;

10. An operating plan describing how any standards established in theregulations applicable to the permit by rule will be achieved;

11. A detailed site plan with project location maps that show the location ofall components of the small renewable energy project, including any towers.Changes to the site plan that occur after the applicant has submitted anapplication shall be allowed by the Department without restarting theapplication process, if the changes were the result of optimizing technical,environmental, and cost considerations, do not materially alter theenvironmental effects caused by the facility, or do not alter any otherenvironmental permits that the Commonwealth requires the applicant to obtain;

12. A certification signed by the applicant that the small renewable energyproject has applied for or obtained all necessary environmental permits;

13. A requirement that the applicant hold a public meeting. The publicmeeting shall be held in the locality or, if the project is located in morethan one locality in a place proximate to the location of the proposedproject. Following the public meeting, the applicant shall prepare a reportsummarizing the issues raised at the meeting, including any written commentsreceived. The report shall be provided to the Department; and

14. A 30-day public review and comment period prior to authorization of theproject.

C. The Department's regulations shall establish a schedule of fees, to bepayable by the owner or operator of the small renewable energy projectregulated under this article, which fees shall be assessed for the purpose offunding the costs of administering and enforcing the provisions of thisarticle associated with such operations including, but not limited to, theinspection and monitoring of such projects to ensure compliance with thisarticle.

D. The owner or operator of a small renewable energy project regulated underthis article shall be assessed a permit fee in accordance with the criteriaset forth in the Department's regulations. Such fees shall include anadditional amount to cover the Department's costs of inspecting such projects.

E. The fees collected pursuant to this article shall be used only for thepurposes specified in this article and for funding purposes authorized bythis article to abate impairments or impacts on the Commonwealth's naturalresources directly caused by small renewable energy projects.

F. There is hereby established a special, nonreverting fund in the statetreasury to be known as the Small Renewable Energy Project Fee Fund,hereafter referred to as the Fund. Notwithstanding the provisions of §2.2-1802, all moneys collected pursuant to this § 10.1-1197.6 shall be paidinto the state treasury to the credit of the Fund. Any moneys remaining inthe Fund shall not revert to the general fund but shall remain in the Fund.Interest earned on such moneys shall remain in the Fund and be credited toit. The Fund shall be exempt from statewide indirect costs charged andcollected by the Department of Accounts.

G. After the effective date of regulations adopted pursuant to this section,no person shall erect, construct, materially modify or operate a smallrenewable energy project except in accordance with this article or Title 56if the small renewable energy project was approved pursuant to Title 56.

(2009, cc. 808, 854.)