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HomeMy WebLinkAbout01-13-15 Bozeman Climate Partners AgendaBOZEMAN CLIMATE PARTNERS WORKING GROUP Meeting Agenda Rescheduled Time: January 13, 2015, 2:30-4:00 121 Rouse Ave., Bozeman City Hall, Madison Room 1) Call to Order 2) Changes to the Agenda 3) Public Comment – Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Bozeman Climate Partners Working Group. This public comment period will be your only opportunity to comment at this meeting. Please limit your comments to three minutes. 4) Minutes – 5) Action Items a) City of Bozeman Community Solar Project *I move to endorse the document “Bozeman Community Solar: Local potential for subscriber-based solar arrays” to the Bozeman City Commission. b) Net Metering Law in the Local Energy Investment Act *I move to endorse the Bozeman City Commission’s adopted 2015 Legislative priority to increase flexibility in Montana’s Net Metering Law through the Local Energy Investment Act. 6) Non-Action Items a) Summit Affordable Housing Development Update b) 2015 Sustainability Priorities 7) FYI/Discussion a) Bozeman Energy Project & Energy Smackdown i) YTCEC Sustainability Series b) Energy Performance Contract c) Green Fleet Assessment d) Next Regular Meeting: Wednesday, February 18, 2015, 9:00am to 10:30am 8) Adjournment Bozeman Climate Partners Working Group meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, James Goehrung, at 582-3232. NOT INTENDED FOR FINAL DISTRIBUTION THIS WORKING DRAFT UPDATED 1/7/2014 (TK this page to end of document, before back cover) Supported by Downtown Bozeman Partnership Co-op Downtown Intrinsik Architecture Massive Studios Mint Dental Nova Cafe Owenhouse Ace Hardware Thinktank Design Group (Bozeman residents) (City of Bozeman Climate Partners?) Working group members Marshall Swearingen - Independent Researcher Orion Thornton - Onsite Energy Bill Stoddart - Northfork Financial Jeff Fox - Renewable Northwest Contact bozemancommunitysolar@gmail.com (406) 580-7030 Authors Marshall Swearingen - Text Mary Schaad - Graphic Design Cover photos taken by Robert Benjamin during open-house for Emerson Center solar PV system, summer 2014. No copyright Who is Bozeman Community Solar? We are a local, grassroots initiative dedicated to informing elected officials and members of the public about community solar in Bozeman, Montana. In summer 2014, Bozeman-based freelance journalist Marshall Swearingen was researching community solar efforts taking place in other Western states, and wanted to make that information locally relevant. As others expressed support and contributed their expertise, this grew into an effort to envision community solar projects in Bozeman. Although we receive guidance from the Montana Renewable Energy Association and others, we are committed to remaining an independent source of clear information about Bozeman’s community solar potential. Choosing terms: “community solar” The “subscriber” model of community solar described here is sometimes referred to by different names – “shared solar,” “neighborhood solar,” and so on. Although the sponsors of Montana’s proposed Local Energy Investment Act have good reasons for using the term “neighborhood net metering” to describe the policy that would enable these subscriber-based solar arrays, we prefer the term “community solar” because many of the projects described here, such as one at the closed Bozeman landfill, would be on a community rather than a neighborhood scale. In another caveat to the term, this subscriber model could also work for wind and other renewable energy sources. 1 “Community solar” sometimes also refers to other models of shared solar development, such as when a utility directly sells blocks of electricity produced by a large solar array. See “A Guide to Community Shared Solar: Utility, Private, and Nonprofit Project Development,” National Renewable Energy Laboratory, 2012. Available at http://www.nrel.gov/docs/fy12os- ti/54570.pdf 2 The U.S. Department of Energy has estimated that perhaps only a quarter of U.S. residential buildings are suitable for solar because of shading and other factors. See “Supply Curves for Rooftop Solar PV-Generated Electricity for the United States,” National Renewable Energy Laboratory, Nov. 2008. Available at www.nrel. gov/docs/fy09osti/44073.pdf “Community solar”1 is a way for utility customers to invest in solar energy by “subscribing” to the electric output of solar arrays that are not located on their own property. Typically, these solar arrays are many times larger than a home-sized array, have many subscribers, and are located on community buildings or municipal land. Subscribers usually pay up-front for their portion Parking garage solar potential Potential solar square footage: 11,2506 Potential power output: 385-550kW7 Number of subscribers: up to 385-5508 Parking garage power demand with LED retrofit: 270kW9 Who is Clean Energy Collective? Clean Energy Collective (CEC) is a Colorado-based LLC that is widely credited with developing the model of community solar now widely used in Colorado by multiple businesses, including others such as SunShare. In 2009, CEC partnered with Holy Cross Energy, a rural electric coop, to create a 78kW array in Carbondale, Colorado. In that project and several since, CEC has negotiated a power purchase agreement with the utility, secured a lease for the land or building space, recruited subscribers, and used its RemoteMeter software to calculate subscriber billing shares, which it provides to the utility. CEC is able to claim the federal solar investment tax credit by partnering with investors, and passes those savings on to subscribers. CEC has developed over 35 projects in seven states,10 and would be a strong candidate, with a tested model, for developing community solar projects in Bozeman. Similar businesses might take root and evolve in Montana specifically to administer community solar projects. 3 Personal correspondence, Chris Naumann, Downtown Bozeman Partnership Executive Director, Dec. 15, 2014 4 Taos News, Sept. 6, 2012: “Co-op fetes Taos’ first community solar array.” http:// www.taosnews.com/news/business/ article_752b24b4-f85f-11e1-8b47- 0019bb2963f4.html 5 Personal correspondence with parent organizer of project, Aug. 2014. 6 Ibid, Naumann, Dec. 2014. 7 Preliminary bid to Downtown Bozeman Partnership, July 2014. 8 Based on proposed provision in Local Energy Investment Act establishing minimum subscription of 1kW 9 Personal correspondence, Natalie Meyer, City of Bozeman Sustainability Programs Manager, Nov. 20, 2014 10 Clean Energy Collective website: http://www. easycleanenergy.com/communitysolarprojects. aspx The roughly 300 businesses in Bozeman’s historic downtown illustrate the potential for community solar projects to expand access to solar electricity. Some 64 percent of downtown businesses lease their business space,3 so they cannot decide for themselves if they would like to invest in solar — only the property owner can, even though the tenants pay the electric bill. Moreover, Story Mill landfill solar potential Total city-owned area: 200 acres15 Potential solar acreage: 16.75 acres16 Potential power output: 2.4 MW17 Enough energy for: 316 Montana homes18 Number of subscribers: up to 2,40019 Other assets: Under-used 3-phase power feed to city facility on property Wastewater plant solar potential Total city-owned area: 140 acres Potential solar acreage: 22 acres20 Potential power output: 3.1 MW Enough energy for: 408 Montana homes Number of subscribers: up to 3,100 Other assets: 3-phase 440v connection and substation at southern edge of property Subscriber-based community solar arrays developed in cooperation with the City of Bozeman would not only expand access to solar — they would play a major role in meeting the goals established by the city’s 2011 Community Climate Action Plan, the official city document detailing how the city will reduce Bozeman’s carbon dioxide emissions.11 The Community Climate Action Plan specifies that the greater part of emissions reductions will be achieved with renewable energy. The foremost recommendation for developing that renewable energy calls for creating “large scale alternative energy production capable of servicing the city,” and specifically mentions “creat(ing) community based solar array(s) to allow citizens the option of buying locally produced alternative energy,” listing potential sites at the Story Mill landfill and other city-owned open spaces.12 In Colorado and other states with enabling policies or willing utilities, projects such as these are typically some of the largest and most successful. City-owned land that would otherwise sit unused provides an ideal location for developing large community solar projects because of stable future ownership and low lease value.13 The City of Bozeman’s stated interest, plus the suitability of multiple sites (see sidebar), suggests the significant potential for developing these projects. As with the downtown parking garage, the most likely scenario of development would involve a third-party business like Clean Energy Collective or SunShare. Because Clean Energy Collective administers every aspect of the project and assumes all financial liabilities, the city could facilitate development of large community solar arrays simply by leasing suitable city land. For use of that land, the city would be compensated monetarily or with a portion of the solar energy, and would have the option of further subscribing to the solar array as a way of offsetting its own carbon emissions. The city could support the project through marketing and outreach. Example: The City of Craig, Colorado, a rural town of 10,000 residents where coal undergirds the economy, the city government partnered with Clean Energy Collective to construct a 500kW community solar array on unused land at the municipal water treatment plant.14 In exchange for leasing the city acreage, the city will receive a 5kW share of the array’s output, saving the city an estimated $800 per year on its electric bill. Utility customers purchase shares of solar panels for $825 each, yielding an annual bill credit of $45 per year. Even before the project broke ground in October 2014, more than half the array was subscribed to by utility customers. City of Bozeman “Community solar is a promising financial model that will provide businesses and residents access to clean, affordable and locally generated electricity. A large solar PV array at the Story Landfill or the Water Reclamation Facility would enhance the function and value of these public facilities, while also helping the City meet its greenhouse Emerson solar array specs Peak output: 30kW21 Number of solar panels: 110 Estimated annual energy production: 40,300 kWh Enough energy for: 4 Montana homes22 17 Based on metric of 7 acres per megawatt of solar, provided by Tom Hunt, Clean Energy Collective, Nov. 24, 2014. 18 Calculation based on Energy Information Administration residential energy data and estimated solar output provided by the National Renewable Energy Lab’s PV Watts calculator. 19 Ibid, Local Energy Investment Act 20 Personal correspondence with Herb Bartle, City of Bozeman Water Reclamation Facility Superintendent, acreage using city’s online GIS tool available at http://bit.ly/1xSn0Bd 21 Project specs provided by Orion Thornton, Onsite Energy 22 Ibid, EIA and PV Watts data “We are glad to have good choices to make when going solar. Rather than sacrifice a garden area behind our house to pole- mounted solar array or pay a lot to rig rooftop panels, we think it could be an even better idea to subscribe to a solar array on the Emerson building near our house, or yet another big array that’s ideally sited. We believe others in our neighborhood would be interested in pursuing these options, too.” - Steve Kirchhoff, resident and former Mayor of Bozeman “The Emerson” building, near the heart of Bozeman’s downtown, is a thriving community hub with a movie theater and stage, community events space, many artist studios, classrooms for language and arts lessons, offices for non-profit organizations, and a good restaurant. Originally constructed as a public school in 1918, the Emerson was slated for demolition when a group of Bozeman residents organized a non-profit to purchase and manage the building. Today, the Emerson anchors a community of tenants, donors, patrons, and the visiting public. The Emerson has also recently demonstated its solar potential. In September 2014, Bozeman-based Onsite Energy installed a large solar array on a portion of the building’s south-facing roof (see sidebar). The system was generously donated by long-time Emerson patron Tim Crawford, and the energy produced by the array offsets a portion of the energy consumed by the building. The Emerson is bordered on the south by a historic neighborhood that stretches several blocks to Montana State University. As an older neighborhood, there is an abundance of mature trees that discourages installation of single-residence (typically rooftop) solar arrays. In this sense, the Emerson is similar to many other, similar buildings such as schools, which could provide islands of ideal solar development. The Emerson, then, is not so much a case for future community solar development (although additional roof space allows that option) as much as it is an example of how public buildings could provide solar access for surrounding neighborhoods. An array like the Emerson’s is relatively small Acknowledgments We wish to thank the following people for their time and thoughful input in the making of this report: Natalie Meyer Sustainability Programs Manager City of Bozeman Chris Naumann Executive Director Downtown Bozeman Partnership Kevin Handelin Solid waste superintendent City of Bozeman Herb Bartel Water reclamation superintendent City of Bozeman Carson Taylor Deputy Mayor City of Bozeman Tom Hunt Director of Research and Gov’t Affairs Clean Energy Collective Conclusions We hope the examples presented here will help our legislators, local officials and others envision the kinds of community solar projects that are possible in Bozeman. This is but a preliminary sketch, and the list of organizations, businesses, elected officials and Bozeman residents supportive of this study is but a cross-section. We intend to continue to connect with those who are interested in shaping a future presence for community solar in Bozeman. Community solar itself is growing and changing, and the shape it will take in Bozeman is yet unknown. There remain many unanswered questions. For instance: given Montana’s relatively low electric rates, will these projects make economic sense? Questions like this, it would seem, can only be answered in the context of a particular project. So our general recommendation would be: Let’s begin exploring specific projects in greater detail, and let the questions, and answers, emerge. That is the spirit expressed by those who have signed their support here. These supporters are not endorsing any particular solar project, nor any particular policy. Rather, they are expressing enthusiasm for community solar and its future role in Bozeman, and for a few general points of view: 1) We believe community solar could considerably expand local solar potential. By allowing Bozeman individuals and businesses to subscribe to community solar arrays, we could begin to build larger arrays on ideal sites. We could begin to tap the investment of residents who currently cannot invest in solar because their homes or businesses are not suitable due to shading and other factors. 2) We believe community solar is feasible. Several sites in Bozeman appear favorable for community solar development, and many other sites are probably equally or more favorable. Businesses that have formed in other states to administer community solar projects have demonstrated successful business models that support the local solar economy. 3) We support expanding opportunities for community solar. Implementing community solar projects is currently difficult or impossible given Montana’s policy framework. The experience of other states, such as Colorado, indicates that a supportive policy framework is key to enabling community solar. We urge our elected officials to consider the benefits that community solar could offer Bozeman and other Montana communities. “Community solar provides a clear advantage over traditional solar project development, allowing for better economies of scale, more energy choices for Montanans, and a concise path to carbon reduction goals. As a long-time solar energy professional and advocate, I believe making community solar projects viable for our city is not only attainable but absolutely necessary.” CITY OF BOZEMAN 12 1 North Rouse P.O. Box 1230 Bozeman, MT 59771 Phone: (406) 582-2324 Cell: (406) 581-7026 TDD: (406) 582-2301 www. bozeman.net City Manager Chris A. Kukulski Core Values Integrity: Be honest. hard- working, reliable and accountable to the public. Leadership: Take initiative. lead by example, and be open to innovative ideas. Service: Work unselfishly for our community and its citizens. Teamwork: Respect others. welcome citizen involvement, and work together to achieve the best result. Rep. Art Wittich Rep. Chris Pope Rep. Denise Hayman Rep. Kathleen Williams Rep. Kerry White Rep Matthew Monforton Rep. Tom Burnett Rep. Tom Woods Rep. Zach Brown Sen. J edediah Hinkle Sen. JP Pomnichowski Sen. Mike Phillips Sen. Scott Sales Sen. Gordon Vance January 9, 2015 Sent via E-mail RE: City of Bozeman Adopted Resolutions for 2015 Legislative Session Dear Bozeman Legislative Delegation, On January 5, 2015 the City Commission voted to approve priorities for the 2015 Montana Legislative Session. The priorities include Montana League of Cities and Towns' (MLCT) adopted Resolution numbers 2, 3, 9, 10, 12, 14, 16, 25, and 27. The resolutions are attached for your review and consideration. Additionally, the City Commission supports greater flexibility in net metering and the facilitation of state property transfers to municipal governments in mutually beneficial situations, the East Gallatin Recreation Area for an example. Further information on the two additional priorities is also attached. A City of Bozeman contact list is attached for your use during the session. Please feel free to reach out to our team with any questions or clarification of issues. We wish you a successful session and thank you for your service to not only our community, but to all citizens of our state. Attachments: MLCT Resolutions adopted by City of Bozeman Net Metering Information Sheet Governmental Property Transfer Inf ormation Sheet City of Bozeman Contact List Sincerely, 29 September 2014 Resolution #2014-2 ENTITLEMENT SHARE PROGRAM BACKGROUND Section 15-1-121, MCA, contains the formula for calculating the annual growth factor that is applied to Entitlement Share Payments. The Legislative changes in 2011 based the growth factor on the collection of gambling, motor vehicle, beer, liquor and financial institutions tax revenues over the most recent three-year period. It also includes a factor for personal and corporate income tax collections. During the 2013 Session, the Legislature amended 15-1-121, MCA, to provide that entitlement payments are intended to provide a secure and predictable stream of revenue with a growth adjustment tied to state collections, with a floor of zero. For Fiscal Year 2014, the growth factor on the Entitlement Share Payment Program was 3.5%, which added $2.15 million to cities and towns. ACTION The League will monitor the Entitlement Share Payments program to ensure its continuation and application of growth factor adjustments. 29 September 2014 Resolution #2014-3 REMOVING CAP ON INCREASES IN MILL LEVY BACKGROUND Cities and towns are only authorized to impose a mill levy that is sufficient to generate the amount of property taxes actually assessed in the prior year plus one-half of the average rate of inflation for the prior 3 years. Cities and towns cannot financially survive this limitation on the mill levy to one-half of a rolling 3 year average of the rate of inflation. Expenses incurred by cities and towns are not limited to any similar cap. ACTION The League will sponsor legislation to remove the restrictions on the cities’ and towns’ mill levy authority currently imposed under Title 15, chapter 10, part 4, MCA. 29 September 2014 Resolution #2014-9 IMPACT TAX FOR ALL CITIES AND TOWNS BACKGROUND The Resort Tax, Title 7, chapter 6, part 15, MCA, has been an economic blessing for those resort areas that qualify under the limited definitions. The reality is all cities and towns would equally benefit from having a similar type of local sales tax on defined goods and services. Many cities and towns are being burdened with impacts from growth and economic development. Municipalities, especially those with robust tourist industry or those impacted by natural resource development, need the option to have an additional revenue source that targets the activity causing the impact. A local impact tax, imposed optionally by local government, would meet this need and ease the burden on local property taxpayers. A local impact tax could easily be based upon the models of the Resort Tax and the state sales tax (Title 15, chapter 68, part 1, MCA) on accommodations and rental cars. ACTION MLCT will sponsor creation of a local impact tax option that is available to all municipalities. 29 September 2014 Resolution #2014-10 LOCAL MOTOR FUEL TAX BACKGROUND This 1979 law allows voters of a county to authorize an excise tax of up to two cents per gallon on the retail sale of gasoline. This additional money would help cities and towns improve, expand and maintain their street systems. Cities and towns cannot get this additional excise tax money unless a majority of the voters in the entire county approves it. Cities and towns need the ability to present this issue solely to their individual electorate and not be at the mercy of the county voters not living within the corporate limits of the city or town. ACTION MLCT will support allowing cities and towns the authority upon approval of their respective electorates to impose an excise tax upon the retail sale of gasoline occurring within the corporate limits and having those funds available to use for purposes allowed by other gas tax proceeds. 29 September 2014 Resolution #2014-12 MS4 AND STORMWATER QUALITY BACKGROUND More cities in Montana are being classified as Municipal Separate Storm Sewer (“MS4”) cities for purposes of stormwater regulations under EPA and MTDEQ. Under the federal law, MS4 cities are required to use best management practices to reduce pollution from stormwater runoff. MTDEQ is responsible for issuing general permits to the MS4 cities. In past years MTDEQ was more aggressive than the EPA BMP standards and required additional burdens such as monitoring and sampling of water quality in stormwater runoff. Though this initially only affected the larger Montana cities, the history of the MS4 designation has been to reach down into lower populated cities. Originally in 1990, only cities with populations over 100,000 were affected. By 1999, it potentially affected municipalities with 1,000 people or more. The MLCT and affected cities agree with protecting water quality and using BMPs for stormwater. What we do not agree with is having to do sampling and monitoring that is of no benefit. Sampling for the sake of sampling. The concern is that MTDEQ may interpret "state waters" (75-5-104(34), MCA) to include stormwater retention and detention ponds, which are the BMP’s means for trapping pollutants before reaching bona fide state waters. This interpretation would require retention and detention ponds, constructed as BMPs for stormwater, to have water quality compliance similar to lakes and rivers. Such an interpretation has resulted in difficulties conducting water main flushing, fire hydrant testing, water main repair and maintenance (non-stormwater discharges). That interpretation combined with the first 1/2" treatment requirement in the current discharge permit has also raised questions about whether it is permissible for stormwater leaving a site to enter the MS4 at all, and thus detention or retention ponds and basins, before the first 1/2" of water is treated. MTDEQ has established working groups with the MS4 cities to reach a mutually satisfactory resolution on these issues. This process is still on-going and will take more time and work to resolve the differences. ACTION MLCT extends its appreciation to MTDEQ for its efforts having a working group to work toward resolution of BMP requirements for mitigation for stormwater quality. The MLCT will consult with and work with DEQ if legislative changes may be needed for effective implementation of BMPs in a cost-effective and reasonable manner. The MLCT will monitor legislation dealing with stormwater quality and MS4 regulations. 29 September 2014 Resolution #2014-14 PARK DEDICATION BACKGROUND When a developer proposes a residential subdivision, the developer as part of the approval of that subdivision is required to dedicate either a percentage of the land for parkland or a cash-in-lieu payment that is equal to the fair market value of the unsubdivided, unimproved land. (76-3-621, MCA). The cash-in-lieu payment is restricted to use for acquiring or improving other neighboring parks that could serve the subdivision. Using the undeveloped, unimproved land value for determining the cash-in-lieu is usually insufficient to make substantial improvements in neighboring parks that would serve the newly created subdivision ACTION The League will monitor legislation to change the formula for determining “fair market value” for cash-in-lieu payments to closer reflect the value of the post-subdivision, improved tracts. 29 September 2014 Resolution #2014-16 GOVERNOR’S MENTAL HEALTH PROPOSAL BACKGROUND The Governor is proposing a plan to address critical issues in the state’s ability to provide mental health services to individuals with severe and disabling mental illness. The proposal creates a funding and programmatic framework for strengthening services. The specific items in the proposal span the continuum of care from community based health promotion, prevention, out- patient services, crisis intervention, and acute care services, to measures that support ultimate stability in the community. There are four distinct program components in the proposed framework: • Expanded Community Mental Health Services. • Behavioral Health Inpatient Facility site planning. • Forensic Unit D Wing Improvements at the Montana State Hospital. • Dementia Treatment Unit at the Montana Mental Health Nursing Care Center. ACTION The League will support legislation to develop and implement the proposal to provide mental health services to individuals with severe and disabling mental illness. The League also supports prevention and early intervention efforts by supporting children’s mental health and crisis diversion. 29 September 2014 Resolution #2014-25 ACCUMULATION OF BUILDING CODE FEE COLLECTIONS BACKGROUND For cities who are certified to enforce the state building codes, the cities are allowed to charge for plan approval and inspections. The fees charged, however, cannot accumulate for an amount needed to enforce the codes for twelve months. (50-60-106, MCA) With the cyclical nature of development, in some years a twelve month accumulation is insufficient to fund the costs of an enforcement program. A twenty-four month reserve would be a better cushion to weather the peaks and valleys. Some cities with certified building code enforcement programs are required by the Montana Department of Labor to have the building code fee collection fund audited separately rather than as part of the city’s annual audit. (ARM 24.301.208 and 2-7-503, MCA). This results in the building code fee fund being audited twice. ACTION The League will sponsor legislation to allow cities certified to enforce the building codes to accumulate fees and charges needed to enforce building codes for twenty-four months and to clarify that any audit of the building code fee collection fund may be part of the city’s annual audit. 8 October 2014 Resolution #2014-27 STATEWIDE AUTHORITY FOR PEACE OFFICERS BACKGROUND The Montana Police Protective Association is contemplating having legislation presented at the 2014 Session that would give Montana certified peace officers the authority to perform law enforcement duties beyond the limits of the officer’s normal jurisdiction in defined situations. The extended authority would give a peace officer statewide authority to enforce laws, make arrests and assist peace officers of another jurisdiction, among others. In this time of public fear over terrorism, this proposal for having expanded law enforcement has an appeal. However, this expanded authority raises concerns over liability exposure to the jurisdiction who employs the officer, workers compensation issues if the officer is injured, and whether the officer is entitled to compensation and if so from whom. ACTION The League will oppose legislation to authorize a peace office to exercise police duties beyond the limits of the officer’s normal jurisdiction. Net Metering in the Local Energy Investment Act BACKGROUND Montana’s net metering law guarantees that the customers of NorthWestern Energy get fair credit on their bill for any extra energy they have generated on-site with a renewable power source. Since its passage in 1999, with near unanimous support of the Legislature, our net metering law has served this state well. More than 1,000 solar arrays, small wind turbines and micro-hydro generators have been installed across the state. These generators on homes, fire stations, schools, farms and Montana businesses have helped Montanans secure their energy supply and control energy costs. Net metering keeps our energy dollars close to home and has encouraged individuals to invest private capital in clean, renewable energy, without a government mandate. Renewable energy is helping Montana families and businesses take charge of their energy costs like never before. The wholesale cost of solar photovoltaic (PV) panels has dropped by two- thirds since 2008. However, policy barriers are artificially constraining renewable energy businesses. The current law sets arbitrary limits that keep affordable, clean energy financially out of reach for too many households and businesses. Studies in Texas, Minnesota, California, Vermont and Nevada demonstrate that on-site solar energy provides a net benefit to utility customers, including customers that do not own solar panels. That’s because solar power comes online at times of high demand when power from other sources is most expensive. Plus, on-site renewable energy delivers energy without inefficient transmission line losses and costly pollution controls. These investments keep our energy dollars close to home and put engineers, electricians, roofers, and renewable energy installers to work. ACTION We support the passage of legislation that will put Montana businesses to work while giving consumers more energy choices. 1) Allow neighborhood net metering: Several states have passed laws that allow individual utility customers to buy into a local solar array or wind turbine. Subscribers receive a credit on their power bill according to how much of the project they own, and how much energy it produces each month. This way a customer can get the benefits of renewable energy even if they are a renter or do not have an ideal site for solar panels or a wind turbine on their own property. 2) Lift the cap: Montana law caps the size of a NorthWestern Energy customer’s net-metered solar array, wind turbine or micro-hydro generator at 50 kilowatts (kW). That’s big enough for a home or small business, but it’s too small to allow a large farm, manufacturing facility, hospital or school to meet their energy needs with on-site, clean energy. Thirty-seven states allow net- metered systems larger than 50 kW, enabling businesses and institutions to secure greater energy savings. Increasing the cap to 1 Megawatt (MW) will allow for better economies of scale and spur investment in the renewable energy industry. 3) Multiple meters, multiple savings: A farm, university or multi-unit housing project with multiple electric meters on the same or adjacent property should be able to run all those meters with the energy from one solar array or wind turbine. This simple fix would streamline on-site renewable energy projects and cut costs. 4) Stop the credit giveaway: Under current law a net-metered customer must sacrifice any unused net metering credits to the utility at the end of a 12-month billing cycle. The customer receives no compensation for the extra energy they have given to the utility. As a matter of fairness, customers should be able to keep those credits for more than a year. Governmental Property Transfer BACKGROUND A potential bill should be more broad as to permit the transfer of state lands to counties, municipalities or tribal governments when the transfer is found to be in the best interest of both parties and the county, municipality or tribal government agrees to maintain and the operate the property fitting with the intent of the original acquisition by the state. While the East Gallatin Recreation Area is a perfect example of how this bill could work for taxpayers and visitors, there are other areas across the state that could benefit from such a bill. Therefore, the bill should not be specific to the East Gallatin Recreation Area. ACTION Support legislation broadening the conditions of transferring state property to counties, municipalities or tribal governments when the transfer is found to be in the best interest of both parties and the county, municipality or tribal government agrees to maintain and the operate the property fitting with the intent of the original acquisition by the state. Chris Kukulski, City Manager - Orion Thornton, Onsite Energy 5 by community solar standards, and is less attractive for businesses like SunShare or Clean Energy Collective. Nonetheless, it suggests one model of community solar development that could be undertaken by parties such as non-profits and local schools. The Emerson Center for the Arts & Culture Image: Rendering of hypothetical solar array at Story Mill landfill. Photo and rendering by Marshall Swearingen. 4 gas emissions reduction goals.” - Natalie Meyer, City of Bozeman Sustainability Programs Manager 11 City of Bozeman Community Climate Action Plan, 2011. Available at http://www.bozeman.net/Smarty/ files/92/92587259-fd07-414e-95cb- 8c041f22d8a0.pdf 12 Community Climate Action Plan, page 85. 13 Personal correspondence with Tom Hunt, Clean Energy Collective, Dec. 5, 2014 14 Craig Daily Press, Oct. 15, 2014: “Craig’s solar garden to light up renewable opportunities.” Available online at http://www. craigdailypress.com/news/2014/oct/15/craigs- cleanest-garden/ 15 http://svc.mt.gov/msl/mtcadastral/ 16 Personal tour of Story Mill landfill with Kevin Handelin, City of Bozeman Solid Waste Superintendent, Nov. 24, 2014. Estimate of acreage using city’s online GIS tool available at http://bit.ly/1xSn0Bd 3 these old downtown buildings are a challenging environment for solar in terms of structure and roof line. At some locations, however — like the downtown Bridger Park Garage — solar makes sense. This parking garage is a tall structure with ample square footage for a large solar array (see sidebar). Downtown leaders have already begun exploring the possibility of a solar array on the parking garage in connection with providing more covered parking space on the upper level of the garage. This would be an ideal place to situate a solar array that could serve the downtown business community. Montana’s business community has shown that it is interested in investing in solar. To give one Bozeman example, Pacific Outdoor Equipment, which manufactures outdoor recreation gear such as drybags, recently installed a 3kW solar array on its business space. Many other Bozeman businesses, when building or renovating their business spaces, have planned for installing solar in the future, “roughing in” conduit to the roof, for example. There are multiple ways that a subscriber-based solar array on the parking garage might be financed and managed. One likely scenario, minimizing financial risk for the City of Bozeman and downtown organizations, would be to invite a third-party company such as Clean Energy Collective (see sidebar) to administer the project. Example: At the Taos Charter School, in Taos, New Mexico, parent volunteers invited Clean Energy Collective in 2012 to create the first community solar project in the state.4 The 98 kW array — consisting of 420 panels mounted on a covered parking structure — was sold out to subscribers in under two years.5 Subscribers purchased panel shares for $845, and receive a credit directly on their utility bill for the output of their share. “Downtown Bozeman is home to dozens of very progressive businesses whose owners would participate in a community solar project. We strive to create and a maintain a thriving live-work-play community with an emphasis on achieving the ‘triple bottom line’: economic sustainability, social sustainability and environmental sustainability. The opportunity to implement a community solar project would be embraced by a variety of downtown stakeholders.” - Chris Naumann, Downtown Bozeman Partnership Downtown Parking Garage 2 of a community solar array, and then receive credit directly on their utility bill for the electric output of their portion of that array. Community solar was pioneered in the 2000s, mostly by municipal utilities. Now, largely in response to legislation passed in several states, community solar is rapidly expanding, bringing a model of solar development that complements traditional net-metered solar projects. What is community solar? Community solar offers several benefits to utility customers, including: 1) Expanding access to solar electricity. Many people cannot produce solar electricity on their property because of shading or other factors, or simply because they rent their home or business space.2 2) Making solar electricity more affordable. Rather than foot the bill for a home- or business-sized solar array, subscribers can purchase in smaller increments, often for around $1,000. Constructing one large solar array, rather than several smaller arrays, contributes to cost savings for subscribers. 3) Creating a more flexible structure of ownership. A subscriber’s investment is not bound to a particular building. If a subscriber moves within the same local area, his subscription is unaffected. Community solar could also benefit the Bozeman community by: 1) Growing the solar industry. Already, at least five solar businesses operate in Bozeman. In states where community solar has taken root, large businesses have developed specifically to administer community solar projects. 2) Fulfilling the city’s community climate action plan. The City of Bozeman has committed to significantly reducing Bozeman’s climate change-causing emissions, and has expressed a strong interest in developing community solar projects as a significant part of reaching that goal. 3) Concentrating solar development on marginal and unused land. Developing large solar arrays on sites like the closed landfill would optimize solar production while avoiding conflicts with neighborhood bylaws, historic preservation ordinances, and other restrictions. Bozeman Community Solar believes there is ample evidence that community solar could work, and work well, in Bozeman. We offer the following examples to help our elected officials and others ask — and answer — the question: What might community solar look like in Bozeman? Why community solar? 1