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VII.3. First Reading: Solar Energy Systems Zoning Text Amendment; Lindahl May 1, 2018 City Council Report 2018-051 Solar Energy Systems Zoning Text Amendment Proposed Action: Move to adopt Resolution 2018-036, approving the first reading of Ordinance 2018-036 amending Section 520 of the City Code related to Solar Energy Systems. Overview In late 2017 staff presented information from the SolSmart program, a national designation program intended to recognize communities that take steps to address local barriers to the implementation of solar energy systems. During that review, staff identified the need for a zoning text amendment to promote the use of solar energy systems, remove regulatory barriers and create a clear regulatory path for approval. City staff studied this issue and reviewed various items with the Planning & Zoning Commission during the first quarter of 2018. Based on information from the SolSmart program, the City’s sustainability goals, existing energy conditions in Hopkins and research on solar energy systems standards in other communities, staff has prepared the attached draft Solar Energy Systems Ordinance. The ordinance is based on the Minnesota Model Solar Ordinance but has been modified to address specific needs and conditions in Hopkins. The Planning & Zoning Commission reviewed this item during their April 24 meeting and recommend approval by the City Council. Should the City approve the proposed ordinance, it would set Hopkins on a path to become a certified SolSmart Community and make the following zoning changes: • Establish the purpose and intent behind the proposed regulations. • Define specific terms associated with solar energy systems. • Detail allowable uses by zoning district. • Create specific performance standards for solar energy systems • Outline a review process and necessary application materials. • Place reasonable limits on private groups to restrict solar energy systems and encourage protection of solar access through easements Primary Issues to Consider • Prior Action by the Planning & Zoning Commission • Existing Energy Conditions in Hopkins • Legal Authority • Proposed Zoning Changes • Alternatives Supporting Information • Resolution 2018-036 • Ordinance 2018-1132 Related to Solar Energy Systems • Great Plains Institute Report - Existing Energy Conditions in Hopkins Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: City Council Report 2018-051 Page 2 Prior Action by the Planning & Zoning Commission. In July and August of 2017, staff presented information from the SolSmart program, a national designation program intended to recognize communities that take steps to address local barriers to the implementation of solar energy systems. During that review, staff identified several steps for Hopkins to achieve SolSmart designation. Chief among them was approval of a zoning text amendment to promote the use of solar energy systems, remove regulatory barriers to these systems and create a clear regulatory path for approval. In January, the Planning & Zoning Commission reviewed existing energy conditions in Hopkins, the State of Minnesota’s Model Solar Ordinance and directed staff to do further research and schedule a presentation from the SolSmart program. During the February meeting, the Commission heard a presentation from SolSmart staff on existing energy conditions in Hopkins, different types of solar energy systems and various zoning options. During their March meeting, the Commission opened the public hearing on this item but heard no comments and continued it to the April 24 meeting. During the April 24 meeting, the Commission continued the public hearing but heard no comments. After some questions and discussion, the Commission voted to recommend the City Council approve Ordinance 2018- 1132 amending the City Code related to Solar Energy Systems. Existing Energy Conditions in Hopkins. The Existing Energy Conditions report provides a detailed profile of energy use in Hopkins and the renewable energy resources available in the community. Overall, this information suggests that increased use of renewable energy would help reduce greenhouse gas emissions (GHG) in Hopkins. More specifically, the report suggests the use of solar energy by commercial buildings, would have the largest impact on GHG emissions. The report finds the vast majority of energy used and emissions produced in Hopkins come from buildings, with 75 percent of all greenhouse gas emissions coming from residential and commercial buildings. Transportation makes up the remaining 25 percent of energy use and GHS emissions. Of the GHG emissions from building, the commercial sector makes up 72 percent of GHG emission from buildings. In addition, most of the GHG emissions from buildings come from the use of electricity (57%) compared to natural gas (43%). It is also important to note that while commercial buildings consume a majority of the energy, they comprise only 20 percent of the square footage and represent little over 10 percent of the number of buildings in the community. From this information, the report concluded focusing on commercial and industrial building energy was a potentially high-impact strategy for the City. The report goes on to calculate Hopkins’ “solar reserve” or how much solar energy is reasonability economically available for development (similar to how oil or gas reserves are measured). The total capacity of only the commercial rooftop solar resource in Hopkins is 86 MW, equal to approximately 55 percent of all electricity consumed in the City. The report also notes that if buildings undergo high levels of energy efficiency investment, the solar resource could meet an even higher percentage of electric needs. A closer look at the Gross Solar Potential map for Hopkins suggests several high impact sites including SUPERVALU, the City’s landfill as well as other large industrial sites. The report also examines Hopkins’ wind and biomass resources and finds they would likely have less of an impact than solar. Legal Authority. Zoning Code amendments are legislative actions in that the City is creating new standards to regulate the development of certain types of uses and/or structures. Under the law, the City has wide flexibility to create standards that will ensure the type of development it City Council Report 2018-051 Page 3 desires; however, zoning regulations must be reasonable and supported by a rational basis relating to promoting the public health, safety and welfare. Staff finds the proposed zoning changes reasonable and supported by the existing Comprehensive Plan, initial findings from the process to update the comprehensive plan and the City Council’s 2018 Goals and Strategic Plan. Proposed Zoning Changes. Based on information from the SolSmart program, the City’s sustainability goals, existing energy conditions in Hopkins and research on solar energy systems standards in other communities, staff has prepared the attached draft Solar Energy Systems ordinance for consideration. The ordinance is based on the Minnesota Model Solar Ordinance but has been modified to address specific needs and conditions in Hopkins (see attached). The draft ordinance includes the following sections. Subdivision 1 - Purpose & Intent. This section details the rationale for the ordinance and what it intends to accomplish. Subdivision 2 - Definitions. This section details the specific terms and meanings associated with the Solar Energy Systems. Subdivision 3 - Allowable Uses. Solar energy systems are allowed as an accessory use in various zoning districts throughout the city. Roof Mounted Solar Energy Systems are a permitted accessory use in all zoning districts. Roof Mount Solar Energy Systems part of a Solar Garden are a permitted accessory use in all non-residential districts. Ground Mounted Solar Energy Systems part of a Solar Farms or Solar Gardens are limited to the Closed Landfill Restricted District and require a conditional use permit. Subdivision 4 - Performance Standards. This section contains performance standards for height, setback, visibility, coverage, system certification, utility connection, abandonment and compliance with other codes. Subdivision 5 - Review Process & Materials. This section details the review process for solar energy systems. Roof Mounted Solar Energy Systems that meet the design requirements of the ordinance will be granted administrative approval by the Zoning Official and not require Planning & Zoning Commission review or City Council Approval. Roof Mounted Solar Gardens or Ground Mounted Solar Energy Systems part of a Solar Farm require a conditional use permit with review by the Planning & Zoning Commission and approval by the City Council. Planning approval does not indicate compliance with Building Code or Electric Code. Subdivision 6 - Conditional Use Permit. Deviation from the required standards of this section may be allowed through a conditional use permit, provided that requests to reduce minimum setback require a variance. In granting a conditional use permit, the city council shall consider the criteria unique to solar energy systems. Subdivision 7 - Restrictions on Solar Energy Systems Limited. As of (adoption date for this ordinance) new homeowners’ agreements, covenant, common interest community standards, or other contract between multiple property owners within a subdivision of Hopkins shall not restrict or limit solar energy systems to a greater extent than Hopkins solar energy standards. City Council Report 2018-051 Page 4 Subdivision 8 - Solar Access. The City of Hopkins encourages protection of solar access. Solar access easements may be filed consistent with Minnesota State Statute 500.30. Any property owner can purchase an easement across neighboring properties to protect access to sunlight. The easement can apply to buildings, trees, or other structures that would diminish solar access. Alternatives. To take action on this item, the City Council has the following options: 1. Move to approve the First Reading of Ordinance 2018-1132 related to Solar Energy Systems. Voting to approve the First Reading of this ordinance would move this item forward for a Second Reading and final approval on May 15. 2. Move to deny the First Reading of Ordinance 2018-1132 related to Solar Energy Systems. Voting to deny the First Reading of this ordinance would prevent this item from moving forward for a Second Reading and final approval on May 15. Should the City Council select this alternative, the Council must also identify findings that support this determination. 3. Continue for further information. If the City Council determines that further information is needed, the item should be continued. CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION 2018-036 A RESOLUTION APPROVING THE FIRST READING OF ORDINANCE 2018-1132 AMENDING SECTIONS 520 OF THE CODE RELATED TO SOLAR ENERGY SYSTEMS WHEREAS, the City of Hopkins initiated an application to amend the Zoning Ordinance related to Solar Energy Systems; and WHEREAS, the procedural history of the application is as follows: 1. The Hopkins Planning & Zoning Commission reviewed the SolSmart Program during their July and August 2017 meetings; and 2. That the Hopkins City Council reviewed and discussed this item during their September 5, 2017 meeting; and 3. That an application to amend the Zoning Ordinance related to Solar Energy Systems was initiated by the City of Hopkins on December 22, 2017; and 4. That the Hopkins Planning & Zoning Commission review and heard presentations on such application during the January 23 and February 27, 2018 meetings; and 5. That the Hopkins Planning & Zoning Commission, pursuant to published notice, held a public hearing to review such application on March 27, 2018 and all persons present were given an opportunity to be heard; and 6. That during the March 27 meeting, the Hopkins Planning & Zoning Commission voted to continue this item until their April 24, 2018 meeting to allow more time for study; and 7. That the Hopkins Planning & Zoning Commission, continued the public hearing to review such application on April 24, 2018 and all persons present were given an opportunity to be heard; and 8. That written comments and analysis of City staff were considered; and 9. That the Hopkins Planning & Zoning Commission voted 5-0 to recommend the Hopkins City Council approve an ordinance amending the zoning standards for Solar Energy Systems. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby approves the First Reading of Ordinance 2018-1132 amending Sections 520 of the City Code related to Solar Energy Systems based on the findings detailed in City Council Report 2018-051. Adopted this 1st day of May 2018. _______________________ Molly Cummings, Mayor ATTEST: ______________________ Amy Domeier, City Clerk CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 2018-1132 AN ORDINANCE AMENDING SECTIONS 520 OF THE CITY CODE RELATED SOLAR ENERGY SYSTEMS THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 520, General Provisions, is hereby amended to add the following: 520.10. Solar Energy Systems. Subd 1. Purpose & Intent. It is the goal of the city council, as expressed in the comprehensive plan, for Hopkins to become a more sustainable community by encouraging activities that conserve energy and result in less/no pollution. In accordance with this objective, the city finds that it is in the public interest to encourage the safe, effective and efficient use of alternative energy systems that have a positive impact on energy production and conservation while not having an adverse impact on the community. Therefore, the purposes of this section include: • Implement the solar resource protection element required under the Metropolitan Land Planning Act by promoting rather than restrict development of alternative energy sources, removing regulatory barriers and creating a clear regulatory path for approving alternative energy systems. • To create a livable community where development incorporates sustainable design elements such as resource and energy conservation and use of renewable energy. • Protect and enhance the environment, limit the effects of climate change and decrease the use of fossil fuels. • To encourage alternative energy development in locations where the technology is viable and environmental, economic and social impacts can be mitigated. • Support additional energy choice for consumers and promote competition in the electricity and natural gas supply market. Subd 2. Definitions. The following word, terms, and phrases, when used in this title, shall have the meanings ascribed to them in this section: COMMUNITY SOLAR GARDEN (SOLAR GARDEN): A roof or ground mounted solar-electric (photovoltaic) array that provides retail electric power (or a financial proxy for retail power) to multiple community members or businesses residing or located off-site from the location of the solar energy system, consistent with Minn. Statutes 216B.1641 or successor statute. RENEWABLE ENERGY EASEMENT, SOLAR ENERGY EASEMENT: An easement that limits the height or location, or both, of permissible development on the burdened land in terms of a structure or vegetation, or both, for the purpose of providing access for the benefited land to wind or sunlight passing over the burdened land, as defined in Minn. Stat. 500.30 Subd. 3 or most recent version. RENEWABLE ENERGY SYSTEM: A solar energy or wind energy system. Renewable energy systems do not include passive systems that serve a dual function, such as a greenhouse or window. ROOF PITCH: The final exterior slope of a building roof calculated by the rise over the run, typically but not exclusively expressed in twelfths such as 3/12, 9/12, 12/12. SOLAR ACCESS: Unobstructed access to direct sunlight on a lot or building through the entire year, including access across adjacent parcel air rights, for the purpose of capturing direct sunlight to operate a solar energy system. SOLAR COLLECTOR: A device, structure or a part of a device or structure for which the primary purpose is to transform solar radiant energy into thermal, mechanical, chemical, or electrical energy. SOLAR COLLECTOR SURFACE: Any part of a solar collector that absorbs solar energy for use in the collector’s energy transformation process. Collector surface does not include frames, supports and mounting hardware. SOLAR DAYLIGHTING: A device specifically designed to capture and redirect the visible portion of the solar spectrum, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting. SOLAR ENERGY: Radiant energy received from the sun that can be collected in the form of heat or light by a solar collector. SOLAR ENERGY SYSTEM: A device or structure design feature, the substantial purpose of which is to provide daylight for interior lighting or provide for the collection, storage and distribution of solar energy for space heating or cooling, electricity generation, or water heating. SOLAR ENERGY SYSTEM, ACTIVE: A solar energy system whose primary purpose is to harvest energy by transferring solar energy into another form of energy or transferring heat from a solar collector to another medium using mechanical, electrical, or chemical means. SOLAR ENERGY SYSTEM, BUILDING INTEGRATED: A solar energy system that is an integral part of a principal or accessory building, rather than a separate mechanical device, replacing or substituting for an architectural or structural component of the building. Building-integrated systems include but are not limited to photovoltaic or hot water solar energy systems that are contained within roofing materials, windows, skylights, and awnings. SOLAR ENERGY SYSTEM, GRID INTERTIE: A photovoltaic solar energy system that is connected to an electric circuit served by an electric utility company. SOLAR ENERGY SYSTEM, GROUND MOUNTED: A freestanding solar system mounted directly to the ground using a rack or pole rather than being mounted on a building. SOLAR ENERGY SYSTEM, OFF GRID: A photovoltaic solar energy system in which the circuits energized by the solar energy system are not electrically connected in any way to electric circuits that are served by an electric utility company. SOLAR ENERGY SYSTEM, PASSIVE: A system that captures solar light or heat without transforming it to another form of energy or transferring the energy via a heat exchanger. SOLAR ENERGY SYSTEM, PHOTOVOLTAIC: A solar energy system that converts solar energy directly into electricity. SOLAR ENERGY SYSTEM, ROOF MOUNTED: A solar energy system mounted on a rack that is fastened to or ballasted on the roof of a principal or accessory building. SOLAR FARM: A ground mounted commercial facility that converts sunlight into electricity, whether by photovoltaics (PV), concentrating solar thermal devices (CST), or other conversion technology, for the primary purpose of wholesale sales of generated electricity. SOLAR HEAT EXCHANGER: A component of a solar energy device that is used to transfer heat from one substance to another, either liquid or gas. SOLAR HOT AIR SYSTEM: (also referred to as Solar Air Heat or Solar Furnace) – A solar energy system that includes a solar collector to provide direct supplemental space heating by heating and re- circulating conditioned building air. The most efficient performance typically uses a vertically mounted collector on a south-facing wall. SOLAR HOT WATER SYSTEM: A system that includes a solar collector and a heat exchanger that heats or preheats water for building heating systems or other hot water needs, including residential domestic hot water and hot water for commercial processes. SOLAR MOUNTING DEVICES: Racking, frames, or other devices that allow the mounting of a solar collector onto a roof surface or the ground. SOLAR RESOURCE: A view of the sun from a specific point on a lot or building that is not obscured by any vegetation, building, or object for a minimum of four hours between the hours of 9:00 AM and 3:00 PM Standard time on all days of the year. Subd. 3. Allowable Uses. Solar energy systems shall be allowed as an accessory use in various zoning districts throughout the city as prescribed below. Solar Farms or Solar Gardens shall require a conditional use permit as prescribed in Section 525.13 (Conditional Use Permit). A. Roof Mounted Solar Energy Systems are a permitted accessory use in all zoning districts. B. Roof Mounted Solar Energy Systems part of a Solar Garden are a permitted accessory use in all non-residential districts. C. Ground Mounted Solar Farms or Solar Gardens are a conditional accessory uses in the Closed Landfill Restricted District, subject to: 1. Conformance with the standards of the Closed Landfill Restricted District. 2. Stormwater. Solar farms are subject to the City’s stormwater management and erosion and sediment control provisions and National Pollutant Discharge Elimination System (NPDES) permit requirements. 3. Ground Cover and Buffer Areas. The following provisions shall be met related to the clearing of existing vegetation and establishment of vegetated ground cover. Additional requirements may apply as required by the City. a. The project site design shall include the installation and establishment of ground cover meeting the beneficial habitat standard consistent with Minnesota Statutes, Section 216B.1642, or successor statutes and guidance as set by the Minnesota Board of Water and Soil Resources. b. Beneficial habitat standards shall be maintained on the site for the duration of operation, until the site is decommissioned. c. The applicant shall submit a financial guarantee in the form of a letter of credit, or other form acceptable to the City Attorney equal to one hundred twenty-five (125) percent of the costs to meet the beneficial habitat standard. The financial guarantee shall remain in effect until vegetation is sufficiently established. 4. Foundations. A qualified engineer shall certify that the foundation and design of the solar panels racking and support is within accepted professional standards, given local soil and climate conditions. 5. Power and Communication Lines. Power and communication lines running between banks of solar panels and to nearby electric substations or interconnections with buildings shall be buried underground. Exemptions may be granted by the City in instances where shallow bedrock, water courses, or other elements of the natural landscape interfere with the ability to bury lines, or distance makes undergrounding infeasible, at the discretion of the zoning administrator. 6. Aviation Protection. For solar farms located within 500 feet of an airport or within approach zones of an airport, the applicant must complete and provide the results of the Solar Glare Hazard Analysis Tool (SGHAT) for the Airport Traffic Control Tower cab and final approach paths, consistent with the Interim Policy, FAA Review of Solar Energy Projects on Federally Obligated Airports, or most recent version adopted by the FAA. 7. Decommissioning. A decommissioning plan shall be required to ensure that facilities are properly removed after their useful life. Decommissioning of solar panels must occur in the event they are not in use for 12 consecutive months. The plan may include provisions for removal of all structures and foundations, restoration of soil and vegetation and a plan ensuring financial resources will be available to fully decommission the site. The City may require the posting of a bond, letter of credit or the establishment of an escrow account to ensure proper decommissioning. Subd. 4. Performance Standards A. Height. Solar energy systems shall comply with the following height requirements: 1. Roof Mounted Solar Energy Systems shall comply with the height standards of the applicable zoning district. 2. Ground Mounted Solar Energy Systems part of a Solar Farms or Solar Garden shall not exceed fifteen feet (15') in height when oriented at maximum tilt. B. Setback. Solar energy systems shall comply with the following setback requirement. 1. Roof Mounted Solar Energy Systems shall comply with the setbacks requirement for the applicable zoning district and structure type (principal or accessory) on which they are mounted. 2. Ground Mounted Solar Energy Systems part of a Solar Farms or Solar Garden shall comply with the principal front yard setback requirements of the abutting zoning district. 3. Setback encroachments shall be permitted as allowed under Section 520.09, Subdivision 2.a (Not Encroachments) provide the applicant demonstrates the collector and mounting system has been explicitly engineered to safely extend beyond the roof edge C. Visibility. Solar energy systems shall be designed to blend into their surroundings or the architecture of the associated building provided mitigating for visual impacts will allow the system to function within expected industry standards. The color of the solar collector is not required to be consistent with other roofing materials. 1. Pitched Roofs. Systems mount on pitched roofs that are visible from the nearest edge of the right-of-way, other than an alley, shall not have a highest finished pitch steeper than the roof pitch on which the system is mounted and shall be no higher than ten (10) inches above the roof. 2. Flat Roofs. System mounted on flat roof may be attached at an angle to improve their efficiency, provided the highest point of a solar panel is not visible from the nearest edge of the public right-of-way, other than an alley. 3. Ground Mounted Solar Energy Systems. Ground Mounted Solar Energy Systems part of a Solar Farm or Solar Gardens and visible from the public right-of-way shall include buffering features such as setback, berming, landscaping, fences, walls or a combination thereof to soften the appearance of the system and improve visual aesthetics. 4. Reflectors. All solar energy systems using a reflector to enhance solar production shall minimize glare from the reflector affecting adjacent or nearby properties. Measures to minimize glare include selective placement of the system, screening on the north side of the solar array, modifying the orientation of the system, reducing use of the reflector system, or other remedies that limit glare. D. Coverage. Roof Mounted Solar Energy Systems, excluding building-integrated systems, shall allow for adequate roof access for fire-fighting purposes to the south-facing or flat roof upon which the panels are mounted. Ground-mount systems shall be exempt from building coverage standards if the soil under the collector is not compacted and maintained in vegetation. Foundations, gravel, or compacted soils are considered impervious. E. Certifications. Solar electric system components shall be certified by Underwriters Laboratories, Inc., and solar thermal systems shall be certified by the Solar Rating and Certification Corporation, or other appropriate certification(s) as determined by the city. The city reserves the right to deny a building permit for proposed solar energy systems deemed to have inadequate certification. F. Compliance with Building Code. All solar energy systems shall meet approval of Building Officials, consistent with the State of Minnesota Building Code, and solar thermal systems shall comply with HVAC-related requirements of the Energy Code. G. Compliance with State Electric Code. All photovoltaic systems shall comply with the Minnesota State Electric Code. H. Compliance with State Plumbing Code. Solar thermal systems shall comply with applicable Minnesota State Plumbing Code requirements. I. Utility Connection: All grid intertie systems shall have an agreement with the local utility prior to the issuance of a building permit. A visible external disconnect must be provided if required by the utility. Off grid systems are exempt from this requirement. J. Abandonment. If the solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after a demolition permit has been obtained. Removal includes the entire structure including transmission equipment. Subd. 5. Review Process & Materials. Except as provided below, no solar energy system shall be erected, altered, improved, reconstructed, maintained or moved in the city without first securing a permit from the city. Roof Mounted Solar Energy Systems that meet the design requirements of this ordinance shall be granted administrative approval by the Zoning Official and shall not require Planning & Zoning Commission review or City Council Approval. Roof Mounted Solar Gardens or Solar Farms shall require a conditional use permit as prescribed under Section Plan 525.13. Planning approval does not indicate compliance with Building Code or Electric Code. A. Elevation Drawings Required. All solar energy system applications shall include horizontal and vertical building elevation draw at an Architects scale. The drawings must show the location of the system on the building and the applicable information detailed below. 1. Pitched Roof Mounted Solar Energy Systems. The drawings shall show the highest finished slope of the solar collector and the slope of the finished roof surface on which it is mounted. 2. Flat Roof Mounted Solar Energy Systems. The drawings must shows the distance to the roof edge and any parapets on the building. They shall also identify the height of the building on the street frontage side, the shortest distance of the system from the street frontage edge of the building, and the highest finished height of the solar collector above the finished surface of the roof. B. Site Plan Required. All solar energy system applications shall include site plan drawn at an Engineer’s scale. The site plan must show the location of all solar arrays, other structures, property lines, rights-of-way, service roads, floodplains, wetlands and other protected natural resources, topography, electric equipment, and all other characteristics requested by City. C. Exemptions. The following solar energy systems are exempt from the requirements of this section. 1. Passive and building integrated systems. These systems shall be regulated as any other building element. 2. Solar energy collector devices less than one (1) square foot in area and generally used for garden decoration, exterior accent lighting for residential homes, lawns, and flagpoles. 3. Accessory systems installed by a government agency on light poles, signs, transit shelters or within public right-of-way. D. Deviations. Deviation from the required standards of this section may be allowed through a conditional use permit in accordance with Section 525.13 provided that request to reduce minimum setback requirements shall be by variance. In granting a conditional use permit, the city council shall consider the criteria in said Section 525.13 of this title and the following additional criteria unique to solar energy systems: 1. That the deviation is required to allow for the improved operation of the Solar Energy System. 2. That the Solar Energy System has a net energy gain. 3. That the Solar Energy System does not adversely affect solar access to adjacent properties. 4. That the Solar Energy System complies with all other engineering, building, safety and fire regulations; and 5. That the Solar Energy System is found to not adversely impacts on the surrounding area, including the health, safety and general welfare of occupants of neighboring properties and users of public rights of way. Subd. 6. Restrictions on Solar Energy Systems Limited. As of (adoption date for this ordinance) new homeowners’ agreements, covenant, common interest community standards, or other contract between multiple property owners within a subdivision of Hopkins shall not restrict or limit solar energy systems to a greater extent than Hopkins solar energy standards. Subd. 7. Solar Access. The City of Hopkins encourages protection of solar access. Solar access easements may be filed consistent with Minnesota State Statute 500.30. Any property owner can purchase an easement across neighboring properties to protect access to sunlight. The easement can apply to buildings, trees, or other structures that would diminish solar access. SECTION 2. This ordinance shall take effect and be in force upon its publication, in accordance with Section 3.07 of the City Charter. First Reading: May 1, 2018 Second Reading: April 15, 2018 Date of Publication: May 24, 2018 Date Ordinance Takes Effect: May 24, 2018 ______________________ Molly Cummings, Mayor ATTEST: _______________________ Amy Domeier, City Clerk EXISTING ENERGY CONDITIONS CITY OF HOPKINS OCTOBER 2017 Prepared by: Great Plains Institute The development of this guide is supported by the Department of Energy, Office of Energy Efficiency and Renewable Energy (EERE), under Award Number DE- DE-EE0007229. This project was made possible by a grant from the U.S. Department of Energy and the Minnesota Department of Commerce. The team includes LHB, Great Plains Institute, and the University of Minnesota’s Energy Transition Lab and Center for Science, Technology, and Environmental Policy. Hopkins Existing Energy Conditions 2 EXISTING ENERGY CONDITIONS: HOPKINS Hopkins is a Step 3 GreenStep City and is committed to building a sustainable community. The city is interested in better understanding how energy is consumed in its community so it can implement strategies to reduce energy consumption and increase clean energy production, and to reduce greenhouse gas (GHG) emissions from buildings and transportation. The information for this report includes data from the Regional Indicators Initiative (2013) and Xcel Energy’s Community Energy Reports (2016). Energy Use Profile Businesses and residents in Hopkins are served by Xcel Energy for electricity and CenterPoint Energy for natural gas. The types of energy used in Hopkins for buildings and industrial processes are primarily electricity and natural gas. Few residents may use heating fuel, biomass, or propane as their primary heating source, but that is not captured in this report. Figure 1 demonstrates that consumers use more natural gas than electricity, with 60% of the energy consumed in buildings coming from natural gas. Natural gas is primarily used for space and water heating, cooking, and various industrial processes. Electricity is used for appliances, water and space heating, space cooling, lighting, commercial and industrial processes, as well as other electronic devices. Figure 2 illustrates that commercial consumers use a greater share of total energy than residential consumers. The commercial sector makes up 71% of total commercial energy use (natural gas and electricity). According to the Community Energy Report from Xcel Energy, Hopkins residents and businesses spent $20.8 million on electricity in 2016; an average of $771 per household, $4,975 per commercial customer, and $43,830 per industrial customer. This information is not available for natural gas use at this time. According to the Energy Information Administration, Minnesota households spent $1,108 on electricity in 2015, and Minnesota businesses spent $7,585, on average. Figure 2 Data Source: 2013 Regional Indicators Initiative Report, 2016 Community Energy Report from Xcel Energy 29% 71% Energy Use by Sector (MMBtu) Total Residential Total Commercial Figure 1 Data Source: 2013 Regional Indicators Initiative Report, 2016 Community Energy Report from Xcel Energy Total Electricity 40% Total Natural Gas 60% Energy Use by Type (MMBtu) Total Electricity Total Natural Gas Hopkins Existing Energy Conditions 3 There are 8,290 residential customers and 1,152 commercial customers in Hopkins. Consumption of natural gas has largely remained steady between 2007 and 2013. As mentioned, natural gas is the primary fuel for space heating. In Minnesota, it is especially important to have reliable and affordable heating systems. Inefficient homes and high energy costs have a greater impact on low- and moderate-income residents who are less able to respond to such changes and bear a greater energy burden (energy costs as a percentage of total income) than higher income residents. Greenhouse gases (GHG) are emitted from burning conventional fuels like coal and natural gas, which are both inputs in the production of electricity. GHGs are also emitted from burning natural gas, propane, or fuel oil for the purpose of space and water heating, as well as cooking and other uses. Figure 4 indicates that the greatest source of GHG emissions from all buildings (commercial and residential) in Hopkins (57%) come from consumption of electricity as compared to heating fuels. Using carbon free (wind and solar) or carbon- neutral (biomass) energy sources and investing in energy efficiency can significantly reduce the amount of greenhouse gases that are attributable to building energy use. Hopkins’ electric energy supply is getting cleaner as Xcel Energy adds more clean energy each year. Developing local clean energy capacity for homes and businesses, or through mechanisms such as community shared solar systems, is an alternative to a supply-side effort. The commercial sector makes up 72% of the of the GHGs emitted from building energy use. Because there are fewer business customers, there is greater opportunity to reduce GHG emissions among fewer large commercial customers than there is residential. Much of those emissions are from industrial processes. Figure 4 Data Source: 2013 Regional Indicators Initiative Report - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2007 2008 2009 2010 2011 2012 2013 Natural Gas Usage Residential Service Gas Commercial/Industrial Gas Total Electricity, 72,809 , 57% Total Natural Gas, 54,938 , 43% Greenhouse Gas Emissions by Energy Type Total Electricity Total Natural Gas Figure 3 Source: CenterPoint Energy Hopkins Existing Energy Conditions 4 Transportation Energy Use Profile Transportation energy is almost exclusively attributable to car and truck travel, and is estimated by the vehicle miles traveled (VMT) within the city boundaries (regardless of through traffic or with an origin or destination in the city). The VMT includes commercial and freight vehicles, personal cars, and mass transit vehicles. VMT does not capture energy attributable to rail and airplanes, but those are generally a very small portion of transportation energy. Regional Indicators Initiative data shows that 93,604,485 vehicle miles were traveled within Hopkins in 2014. The greenhouse gas emissions associated with this travel is approximately 41,794 tonnes of CO2e, or about 25% the city’s total GHG emissions. The U.S. Department of Energy reports that there are 15,500 light duty vehicles in the Hopkins market with an average fuel economy 23.4 miles per gallon. 90% of these vehicles use gasoline as the primary fuel; flex fuel (e85) makes up the next highest fuel source. Figure 5 Data Source: https://apps1.eere.energy.gov/sled/#/ 90% Unknown Hybrid Diesel/Biodiesel Flex Fuel 10% Hopkins Light Duty Passenger Vehicle Fuel Type Gasoline Unknown Hybrid Diesel/Biodiesel Flex Fuel Hopkins Existing Energy Conditions 5 Greenhouse Gas Emissions Summary The energy use data gathered for building energy consumption and transportation illustrate a clear picture of the major sources of GHG emissions in the community, as seen in Figure 6. The largest share of emissions come from residential and commercial (buildings) energy consumption, making up 75% of total emissions. Broken down by sector, residential energy use accounts for 21% of emissions, while the commercial sector emits 54% of all emissions. Transportation makes up 25% of total emissions. Additional sources of emissions not included in this graph are those associated with regional facilities such as air travel, solid waste, and wastewater treatment. While these sources are significantly smaller than those evaluated in this report, a GHG inventory that meets the U.S. community protocol or the Global Protocol would consider these emissions. The city can determine whether to conduct the additional analysis to be compliant with the protocol as part of a deeper GHG inventory. Transportation, 41,794 , 25% Residential, 35,238 , 21% Commercial, 92,509 , 54% GHG Breakdown (Tons of CO2) Transportation Residential Commercial Figure 6 Data Source: 2013 Regional Indicators Initiative Report Hopkins Existing Energy Conditions 6 Efficiency Resource The city’s efficiency resource is measured by looking at current energy use. The greater the energy consumption, the greater resource available for Hopkins to be more efficient. As noted in the energy use profile, the energy use - and therefore the efficiency resource - is largest in businesses as compared to households. Energy use in the commercial and industrial sector is 55% of the city’s total building energy use. Further, electricity is a greater use among businesses, while heating fuels dominant residential energy use. It is also important to note that while commercial buildings consume a majority of the energy, they comprise only 20% of the square footage, and represent little over 10% of the number of buildings in the community. Focusing on commercial and industrial building energy use is a potentially high-impact strategy for capturing the city’s efficiency resource; a single successful efficiency investment could reap the efficiency benefits of dozens of residential successes. Residential building efficiency opportunities tend to be more standardized than commercial use, even if the efficiency resource is distributed across many buildings rather than being concentrated in relatively few. Residential efficiency opportunities are in building envelopes, heating and cooling equipment, lighting, appliances, and plug loads. These uses have efficiency solutions that do not need to be customized, and can reduce typical residential household use by 20-25%. Xcel Energy offers incentives to residential and business customers to help increase energy efficiency action. Participation rates for these programs can be found in the Community Energy Reports. For Hopkins, 2016 participation rates by businesses and residents were: Table 1 Participants in Xcel Energy’s rebate program Sector Rebates Given Electricity Savings (kWh) Business 46 2,688,030 Residential 139 93,763 Table 1 Xcel Energy's rebate program summary Fuel (MMBtu) Fuel (MMBtu) Fuel (MMBtu) Electricity (MMBtu) Electricity (MMBtu) - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Residential Commercial Transportation Energy Efficiency Potential Figure 7 Source: RII 2013, and Xcel CER 2016 Hopkins Existing Energy Conditions 7 Transportation efficiency is another significant resource, as travel comprises 25% of the city’s GHG emissions. GHG emissions can be reduced with three distinct strategies: 1) fuel switching to a low-carbon or carbon-free fuel; 2) improved efficiency (miles per gallon) or right-sizing vehicles to the vehicle use; 3) mode shifting, or increased use of non-motorized or transit options. Electric vehicle markets are poised for rapid expansion over the next decade and the city has opportunities to accelerate market transformation and reduce GHG emissions associated with transportation fuels and vehicle use. For example, including EVs in city fleets, investing in public charging stations, and promoting EV benefits can help drive consumers to choose electric vehicles. Improved efficiency in vehicles is likely to occur via increased use of hybrid models. These still burn gasoline, but have long-ranges and now come in a variety of vehicle types used by residents and businesses. Hopkins is already well attuned to creating opportunities for mode-shifting, particularly related to creating pedestrian and bicycle friendly transportation infrastructure and urban design. There will be additional opportunities for the city to expand transit-oriented development as Metro Transit expands light rail service through the community. Hopkins Existing Energy Conditions 8 Solar Resource The University of Minnesota developed a high-resolution statewide solar resource map that allows cities to calculate how much electricity they could potentially receive from locally installed solar energy systems. These data (see map, next page) were used to calculate Hopkins’ solar resource, or the city’s “solar reserves.” The solar reserves are how much solar energy is reasonably economically available for development, similar to how oil or gas reserves are measured. The solar map shows the good sites for solar installations and helps identify where there may be land use conflicts with solar development. Table 2, below, shows the amount of solar energy reasonably available for development in Hopkins. The gross potential includes the total available resource, regardless of location; rooftop capacity and generation include only the resource available on the rooftops of commercial buildings located in the city. Table 2. Hopkins Rooftop Solar Resource The total capacity of the commercial rooftop solar resource in Hopkins is 86 MW, equal to approximately 55% of all the electricity consumed in the city. This means that if the city wanted to maximize its entire commercial rooftop solar resource, it could set a solar generation goal of up to 55% on-site solar generation (this is an upper limit, and does not consider individual site limitations due to roof structure, ownership, or local regulations that might limit solar installations). If buildings undergo high levels of energy efficiency investment, the solar resource could meet a higher percentage of electric needs. The efficiency and solar resources are, in this analysis, calculated independently of each other. Solar installations are not limited to rooftop applications. This analysis does not include ground-mount systems, but the city will want to develop criteria for where they would and would not allow solar installations. For instance, commercial parking lots may make good solar resources, or public right of ways; while areas planned for future development or park space may not. These criteria can be used to recalculate potential solar generation and redefine future solar goals for local development. Community Total Generation Potential Rooftop Generation Potential Rooftop Capacity Top 10 Rooftop Potential Hopkins 5,402,574 MWh/year 111,590 MWh/year 86 MW 30,195 MWh/year Figure 6 Example of Solar Potential and Community Goal 1.5% 10% 25% 0 20,000 40,000 60,000 80,000 100,000 120,000 Total Rooftop Top 10 buildings Local Government Goal Solar Generation Potential (MWh/yr) Figure 8 City of Hopkins solar generation potential Hopkins Existing Energy Conditions 9 Hopkins Existing Energy Conditions 10 Wind Resource Hopkins is a suburban community with small town characteristics and varying suitability for towers above a certain height. The Minnesota Department of Commerce developed wind speed maps at a 500-meter resolution to give a general sense of the wind resource at various tower heights, these are not adequate for a specific site assessment (Figure 8). Figure 10 Wind speeds at different tower heights, 30 meters, 80 meters, and 100 meters from left to right. Source: MN Department of Commerce A good rule of thumb is that 12 mph is typically the minimum average annual wind speed for a good wind resource. At 30 meters, much of Hopkins has an average wind speed of less than 9 miles per hour, below the optimal speed needed for a productive wind energy system, suggesting that taller towers would be necessary from a production standpoint. At 80 meters, wind speeds are between 11 and 13 mph, and at 100 meters, wind speeds are up to 13-15 mph. While there may be some opportunity to capture the resource at taller tower heights, it may not be feasible in Hopkins. The taller towers would require deeper foundation, which may not work in areas where the water table is too high. Additionally, the community may run into resistance if residents do not agree that tall wind turbines fit the community’s character. While the city does not have many opportunities for wind energy development, residents and businesses can participate in Xcel Energy’s Windsource® or Renewable*Connect programs. These programs provide the clean Wind Resource A good wind energy site needs to meet a number of characteristics, the most important of which is a good wind resource. Other characteristics include soils that can support the weight of the turbine; a site large enough to accommodate safety setbacks from neighboring properties, structures, or other uses; and surrounding land uses for which the visual impact and potential nuisances will not create a conflict. Regarding the wind resource, the height the rotor needs to be above any disturbance within an ideal radius of 500 feet. The Distributed Wind Energy Association offers this guidance: The industry guidance on minimum wind turbine height states that the lowest extension of a wind turbine rotor must be 60 feet above the ground, assuming no surrounding obstacles. Where obstacles are present, the wind turbine rotor should be at least 30 feet above the tallest obstacle within a 500 -foot radius. If trees are not fully grown, then the tower height must be adjusted for the growth over the next two or so decade s, the life of the wind turbine. Figure 9 Solar Resource Map, Metropolitan Council Community Page Hopkins Existing Energy Conditions 11 energy benefit of having local wind (and solar) energy, although the economic benefits of clean energy development are realized elsewhere. According to Xcel Energy, two businesses are subscribed to a total of 16,207 kWh of wind energy, 296 residences are subscribed to a total of 609,390 kWh of wind energy. Hopkins Existing Energy Conditions 12 Biomass Resource Fuel derived from biomass can be used in several processes as a source of renewable energy, including electricity, waste heat, and renewable gas. Minnesota has several facilities that use biomass to generate electricity and/or heat. Biomass resources include municipal solid waste, landfill gas, wood waste, and agricultural byproducts, food processing residue and other organic waste. Much of the biomass resource can come from the metropolitan area, particularly for solid waste and landfill gas, as well as yard and urban forest waste. Information about the type of biomass resources at the community level is difficult to acquire; there is little standardized assessment of potential biomass resources, and the types of resources vary across communities. All of the refuse that is not recycled or composted in Hopkins goes to one of two waste-to-energy facilities: Hennepin Energy Resource Company or NRG Elk River (NSP) Resource Recovery. In its draft master solid waste management plan, Hennepin County seeks to expand organics recycling by adding capacity to receive, transfer, and process organics close to where the materials are generated and collected. Organic materials are the largest portion of trash, making up approximately 25% of the waste stream. As part of its strategies, the County will release a request for proposals for an anaerobic digestion project to be in operation no later than the end of 2022. The County is looking at technologies to create renewable, bio-based energy and green chemicals. Biomass as Renewable Energy Anaerobic digestion is a process that uses captured biogas (methane and carbon dioxide) from the decomposition of organic material to generate heat and/or electricity. Biogas generated from this process can also be cleaned to remove carbon dioxide and other impurities to produce a renewable product equivalent to conventional natural gas, referred to as renewable natural gas. Renewable natural gas (or biogas) can serve as a replacement for any natural gas application and can also be compressed to provide a source of transportation fuel in place of conventional natural gas. Biogas can be used to generate electricity in a process called combined heat and power. Combined heat and power (CHP) systems simultaneously generate electricity and thermal energy within a single system. By using the thermal energy, CHP systems efficiency is much greater than conventional power generating systems. While this system is well established in Minnesota, there is still great potential to harness this resource. Benefits CHP application include: • Power is produced at a cost below retail electricity • Enhance local power reliability • Produces more useful energy than biogas that is used solely for thermal loads • Reduces greenhouse gas emissions and other air pollutants