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HomeMy WebLinkAboutCAO-15-029 - FIT3 IESO Notice to Proceed Blanket Resolution REPORT TO: Special Council Meeting DATE OF MEETING: Monday, September 21, 2015 SUBMITTED BY: Rod Regier, Executive Director, Economic Development 519-741-2200 ext 7506 PREPARED BY: Thom Ryan, Senior Business Development Officer, Economic Development 519-741-2200 ext 7826 WARD (S) INVOLVED: All DATE OF REPORT: Monday, September 21, 2015 REPORT NO.: CAO-15-029 SUBJECT:Notice to Proceed FIT 3.1 Rooftop Solar Applications under the Independent Electricity System Operator (IESO) Feed In Tariff (FIT) Program – FIT 4 Program ___________________________________________________________________________ RECOMMENDATION: WHEREAS capitalized terms not defined herein have the meanings ascribed to them in the FIT Contract, Version 3.1; AND WHEREAS the Province's FIT Program encourages the construction and operation of rooftop and other solar generation projects (the "Projects"); AND WHEREAS one or more Projects may be subject to FIT Contracts and may be constructed and operated in The City of Kitchener ("Local Municipality"); AND WHEREAS in accordance with the FIT Rules, Version 3.0, the Council of the Local Municipality ("Council") had previously indicated, by a resolution, its support for Projects in the Local Municipality (the "Prior Resolution"); AND WHEREAS Council now indicates, by a resolution dated no earlier than June 10, 2015, Council's continued support for the construction and operation of the Projects anywhere in the Local Municipality (the "New Resolution"); AND WHEREAS pursuant to the FIT Contract, where a New Resolution is received in respect of the Projects in the Local Municipality, Suppliers will be recognized as fulfilling the requirements under Section 2.4(d)(vii) of the FIT Contract, which may result in Suppliers being offered Notice to Proceed in accordance with the terms of their respective FIT Contract(s); NOW THEREFORE BE IT RESOLVED THAT: *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Council of The City of Kitchener supports the construction and operation of the Projects anywhere in the City of Kitchener. This resolution's sole purpose is to enable Suppliers to achieve Notice to Proceed under their FIT Contracts and may not be used for the purpose of any other form of municipal approval in relation to a FIT Contract or Project or for any other purpose. This resolution shall expire twelve (12) months after its adoption 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 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. On June 15, 2015, Council endorsed the blanket municipal resolution in support of FIT 4. For information on the FIT 4 program and the City of Kitchener, please refer to the June 15, 2015 Staff Report: CAO-15-019 Rooftop Solar Applications under the Independent Electricity System Operator Feed-in Tariff (FIT) Program – FIT 4 Program. For full and additional information on FIT, please visit the IESO’s FIT website. REPORT: In approving this blanket resolution of Council, the City of Kitchener is re-confirming blanket endorsement of previously approved solar rooftop projects in the City of Kitchener that have extended beyond FIT 3, and will continue into the FIT 4 project timeline. The FIT 4 application period is now expected to open October 5 and end October 23, 2015, and includes any projects in the City of Kitchener previously approved by IESO and expected to continue into the FIT 4 project timeline. At current, there is at least one known such solar rooftop construction project seeking continuation, but more may arise in the upcoming application period. This municipal blanket resolution protects all such continued projects. Under IESO, the Notice to Proceed (NTP) blanket municipal resolution is now a necessary pre- requisite for those previously approved FIT 3 projects which seek to continue. Otherwise, the upcoming FIT 4 application round could render the previous construction sponsor’s obligation invalid (an approved NTP indicates notice issued by the contract sponsor that it is prepared to waive its option set out in Section 2.4 of the FIT Contract to terminate such contract). The NTP is only necessary for those FIT 3 contracts that wish to continue into the FIT 4 procurement timeline (it is not necessary for entirely new FIT 4 projects or completed FIT 3 projects). ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic priorities from Kitchener’s Strategic Plan 2015-2018 include: Strategic Priority #4: SUSTAINABLE ENVIRONMENT AND INFRASTRUCTURE We will have well planned, managed and cost effective infrastructure systems that support long-term community needs for services, harnessing the benefits of nature through green infrastructure programs to create a healthy urban environment. 4.3 Reduce greenhouse gas emissions and energy consumption in all areas of city operations. 4.6 Improve the City of Kitchener’s ability to leverage funding opportunities for the development and renewal of infrastructure through federal or provincial programs and other partnerships. 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: 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. PREVIOUS CONSIDERATION OF THIS MATTER: Staff Report: CAO-15-019 Rooftop Solar Applications under the Independent Electricity System Operator Feed In Tariff (FIT) Program – FIT 4 Program. June 15, 2015. ACKNOWLEDGED BY: Jeff Willmer, Chief Administrative Officer