HomeMy WebLinkAboutCAO-15-019 - Fit 4 Rooftop Solar Applications Under the IESO Staff Report
ITC:HFI ? .R CA0 Office www.kitchenerca
REPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: June 15, 2015
SUBMITTED BY: Rod Regier, Executive Director, Economic Development
519-741-2200 ext 7506
PREPARED BY: Thom Ryan, Sr. Business Development Officer, Economic
Development 519-741-2200 ext 7826
WARD(S) INVOLVED: All
DATE OF REPORT: June 4, 2015
REPORT NO.: CAO-15-019
SUBJECT: Rooftop Solar Applications under the Independent Electricity
System Operator Feed In Tariff(FIT) Program — FIT 4
Program
RECOMMENDATION:
WHEREAS the Province's FIT Program encourages the construction and operation of rooftop
solar generation projects (the "Projects");
AND WHEREAS one or more Projects may be constructed and operated in the City of
Kitchener;
AND WHEREAS, pursuant to the rules governing the FIT Program (the "FIT Rules"),
Applications whose Projects receive the formal support of Local Municipalities will be awarded
Priority Points, which may result in these Applicants being offered a FIT Contract prior to other
Organizations applying for FIT Contracts;
NOW THEREFORE BE IT RESOLVED THAT:
Council of The Corporation of the City of Kitchener supports without reservation the construction
and operation of the Projects anywhere in the City of Kitchener.
This resolution's sole purpose is to enable the participants in the FIT Program to receive priority
points under the FIT Program and may not be used for the purpose of any other form of
municipal approval in relation to the Application or Projects or any other purpose.
This resolution shall expire twelve (12) months after its adoption by Council.
EXECUTIVE SUMMARY:
From the inception of the FIT Program series, the City has received 40 applications regarding
solar rooftop generation projects seeking to obtain Council support in order to receive Priority
Points under the province's FIT Program. The FIT 4 Program Rules have recently been
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released, with the application period for FIT projects expected to open July 13, 2015. This is
essentially a renewal of the previous FIT 3 blanket support resolution passed by Council.
BACKGROUND:
The Feed-In Tariff(FIT) Program was developed for the Province of Ontario to encourage and
promote greater use of renewable energy sources including on-shore wind, waterpower,
renewable biomass, biogas, landfill gas and solar photovoltaic (PV) for electricity generating
projects in Ontario. The fundamental objective of the FIT Program, in conjunction with the Green
Energy and Green Economy Act, 2009 (Ontario) and Ontario's Long Term Energy Plan, 2010, is
"to facilitate the increased development of renewable generating facilities of varying sizes,
technologies and configurations via a standardized, open and fair process."
The FIT Program is open to projects with a rated electricity generating capacity greater than 10
kilowatts (kW) and generally up to 500 kW.
Projects of 10 kW or less (e.g., a residential rooftop solar installation) may qualify under the
Ontario Power Authority (OPA)'s microFIT Program for small renewable energy projects. For a
project larger than 500 kW, the OPA is currently developing a new competitive procurement
process for large renewable projects.
By encouraging the development of renewable energy in Ontario, the FIT Program:
• Helped Ontario phase out coal-fired electricity generation by 2014 - the largest climate
change initiative in Canada
• Boosts economic activity and the development of renewable energy technologies
• Creates new green industries and jobs.
The program delivers benefits to project developers - including communities, Aboriginal groups
and Municipalities - as well as equipment suppliers and installers, consumers and the overall
provincial economy.
FIT encourages renewable power generation through a guaranteed price structure for
renewable electricity production. The prices are designed to cover project costs and provide a
reasonable rate of return on the investment over the term of the contract. It includes
standardized program rules, prices and contracts for those interested in developing a qualifying
renewable energy project.
In 2012, the FIT 2 Program incorporated a point-system whereby municipal support (via a
blanket support resolution of Council) may add the weight of two priority points (see table) to
qualifying solar rooftop projects in a municipality. This point-rating system has persisted
throughout version FIT 3 and forthcoming FIT 4 Programs, and has no bearing on the
responsibility of the municipality for each individual FIT contract.
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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FIT 4 Program Point Rating
Community Participation Project 3
Aboriginal Participation Project 3
Municipal or Public Sector Entity Participation Project 3
Municipal Council Support Resolution 2
Aboriginal Support Resolution 2
Municipal Site Host or Public Sector Entity Site Host 2
System Benefit 1
Source: |E8O2015 (hUp://fiLpovwenauUmrity»n.oa/fit-pmgnam/c|aiming'phohb+points)
On January 1. 2O15. the (]PA and the Independent Electricity System Operator (|EG(])
amalgamated into a new organization that continues operations under the IESO name and to
administer the FIT Program. Successful eligible participation in the FIT Program requires
applicants to make necessary investments, bear ongoing costs and risks, and enter into a FIT
Contract with the |EG(]. Projects are prioritized using the point-system, ranked and awarded FIT
Contracts by the |EGC).
ROOFTOP SOLAR INSTALLATIONS IN KITCHENER
Renewable green energy projects are exempt from Ontario's Planning Act legislation. The City
of Kitchener's Official Plan and Zoning By-laws do not apply to renewable energy undertakings,
although Building Permits are required when proposed facilities are to be attached to existing
buildings.
The City requires a building permit be obtained for any solar collector with an aggregate face
area of sq. m. or greater that is mounted to a building or structure. Since March 2010 the City
has issued commercial and residential building permits for rooftop solar generation projects
valued at more than $15M. For additional context, the City's Kitchener Operations Facility solar
project installation was issued a $3M building permit.
Proposals to install solar technology on Part IV and Part V (Group A, B, and C) cultural heritage
resources require the submission and approval of Heritage Permit Application. Heritage
Planning staff developed guidelines which Council approved (COSID71-12—Guidelines for the
Installation of Solar Technology on Cultural Heritage Resources) in order to ensure a consistent,
fair and transparent process for the consideration of such Heritage Permit Applications.
From the period of Nov 2013 to Jan 2015, City Clerks provided 10 resolutions with confirmatory
by-laws in support of FIT 3 projects for solar rooftop projects in the City ofKitchener.
This information is available in accessible formats upon request.
Please call 519-741-2345or TTY 1-888-989-9994 for assistance.
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REPORT:
In 2015, IESO introduced the FIT 4 Program. Key changes from the FIT 3 Program to the FIT 4
Program reflect the policy decisions issued by the Minister of Energy on April 7, 2015 as well as
feedback received on the FIT 2015 Discussion Paper.
In addition, several revisions have been made to the draft version of the FIT Program Rules as
a result of feedback received from Municipalities and participating/applicant commercial
enterprises in FIT 3, including:
• Addition of Price Reduction Priority Points
• Removal of Project Type Priority Points and System Benefit Priority Point
• Incorporation of the Unconstructed Rooftop Solar Pilot
• Provision for municipal exemption for residential, commercial and industrial land-use
restrictions
• Harmonization of land-use restrictions with 2014 Provincial Policy Statement
For additional information on FIT 4 Program enhancements: Link to FIT 4 Enhancements
document
There were no significant revisions or impact on municipalities and the Priority Point structure,
whereby Municipalities have the opportunity to support solar rooftop projects.
The application period for FIT projects is expected to open on July 13, 2015, and close on
August 3, 2015.
From time to time the IESO may announce FIT Program procurement targets and application
periods.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN
Strategic priorities from the City of Kitchener Strategic Plan 2011-2014 include:
• LEAD BY EXAMPLE: The City of Kitchener can be a model of environmental stewardship
and citizen engagement in that effort.
• MAKE LIVING GREEN EASIER: A good, green transportation plan, a citizen-focused
education and awareness program, incentives for green power and water conservation.
• PARTNER IN PROTECTING OUR NATURAL ENVIRONMENT Assume responsibility to
ensure appropriate partnering. Federal, provincial and 2-tier municipal governments with
community partners and citizens as stakeholders.
Community Priority #9. Environment and Health: A healthy environment is critical to sustain the
present and future population of the city. Underpinned by ongoing concerns about issues such
as climate change, air quality and access to green space, Kitchener residents have made it
clear that preserving and protecting the environment should remain one of our top community
priorities - and that we, as a city, should be focusing our plans, our efforts and our dollars on
safeguarding our environment.
FINANCIAL IMPLICATIONS:
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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Not applicable.
COMMUNITY ENGAGEMENT:
Communication is not required as the FIT program is administered by the IESO.
INFORM — This report has been posted to the City's website with the agenda in
advance of the council / committee meeting.
CONCLUSION:
The FIT 4 Program has developed a point system whereby positive municipal support adds
more weight to a green commercial project, providing opportunity for municipalities to let the
IESO know they support these projects. The more points a project receives, the higher
likelihood the project will secure project approval.
ACKNOWLEDGED BY: Jeff Willmer, Chief Administrative Officer
***This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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