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HomeMy WebLinkAbout2023.03.23 Packet - Solar Farm Workshop AGENDA City Council and Planning Commission Joint Workshop - Solar Farm Ordinance City Hall Oneka Room Thursday, March 23, 2023 6:00 p.m. 1. Call to Order and Roll Call 2. Background 3. Overview of Existing Solar Farm Ordinance 4. Discussion on Existing Solar Farm Ordinance 5. Direction to Staff 6. Adjournment Memorandum To: Bryan Bear, City Administrator From: Rachel Juba, Community Development Director Date: March 17, 2023 Re: City Council and Planning Commission Joint Workshop Discussion on Solar Energy Systems Ordinance – Solar Farms 1. BACKGROUND: The Planning Commission and City Council have included reviewing the Solar Energy Systems ordinance in their goals for 2023. The ordinance was adopted by the City Council in 2016. At its February 6, 2023, meeting the City Council approved a 6-month moratorium for any consideration or approvals of Solar Farms and directed staff to schedule a joint workshop with the Planning Commission. The goal of the workshop to review the existing ordinance and to discuss whether or not revisions should be made to the ordinance. 2. EXISTING ORDINANCE: The existing ordinance regulated two types of solar energy systems, Accessory Solar Energy Systems and Solar Farms. Accessory Solar Energy Systems are individual systems such as solar panels on residential homes or the roofs of commercial and industrial buildings. Solar Farms are large systems with multiple panels that produce energy for wholesale subscribers. The moratorium is only on Solar Farms. Solar Farms Solar Farms are allowed with an interim use permit (IUP) approved by the City. Performance Standards for Solar Farms a) Solar Farms are required to be located on a minimum lot size of ten acres within the Long Term Agricultural (LA), Agricultural (AG), Rural Residential (RR), and Future Urban Service (FUS) zoning districts. Solar farms may also be located in any other zoning district only in the floodplain, as long as all other conditions are met. b) Solar farms shall be 50 feet from all property lines and public road rights-of-way. c) Ground mounted solar energy systems shall not exceed 15 feet in height at any point when oriented at maximum tilt. d) Solar farms shall be enclosed by approved perimeter fencing or adequate vegetative buffer for screening. Exception may be granted if the natural landscape provides screening from all public right of ways and neighboring properties. 2 e) The owner/ operator of the solar farm shall provide the city with evidence that the solar energy system is functioning properly. This shall be provided at any time deemed necessary by the city. f) The owner/operator shall submit a decommissioning plan and financial security for the solar farm to ensure that the owner/operator properly removes the equipment and facilities upon the end of the project life, abandonment, expiration, or termination of the interim use permit. There are additional conditions of approval that can be included in the IUP, such as limitations an period of use and operations and buffering and screening requirements. 3. RECOMMENDATION: At the workshop staff will present background on solar farms and discussion topics. Staff recommends the City Council and Planning Commission review the existing ordinance and discuss whether or not revisions should be made to the ordinance. Attachments: 1. Existing Ordnance Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 1 of 6 Definitions: Accessory solar energy systems means a solar energy system that is composed of a single or multiple solar panels where the system is deemed accessory to the primary land use. An accessory solar energy system is intended to primarily reduce on-site consumption of utility power for an active existing use/structure. Excess electrical power generated and not presently needed for on-site use may be provided to the utility company. Solar energy system means a system whose primary purpose is to harvest energy by transforming solar energy into another form of energy or transferring heat from a collector to another medium using mechanical, electrical, or chemical means. Solar farm means a solar energy system that is composed of multiple solar panels where the primary land use, whether by footprint or visual impact or both, of the parcel is for a solar array. A solar farm produces energy for wholesale to subscribers. Sec. 90-278. Solar energy systems. (a) Unlawful unless conditions met. It is unlawful for any person to construct, erect, install, or maintain a solar energy system in the city, except in conformance with this section. (b) Purpose and intent. The purpose of this section is to allow for the generation of renewable energy within the City of Hugo. Promoting the safe, effective, and efficient use of solar energy, may reduce the onsite consumption of fossil fuels and utility-supplied electric energy while avoiding adverse impacts on the community at large. (c) General standards for all solar energy systems. Solar energy systems must conform to all of the following standards: (1) A building permit shall be required for the erection of solar energy system. Prior to the issuance of a building permit, the operator must provide evidence of an agreement with the local utility. Off-grid systems shall be exempt from providing evidence of an agreement with the local utility. (2) It shall be the responsibility of the property owner to secure any solar energy easements, if applicable, to protect solar access for the system (as per MN Statute Section 500.30). (3) Solar energy system components shall be labeled with the manufacturers name and address, model number, and serial number. (4) All exterior electrical or other service lines shall be buried underground. The collection system may be placed overhead near substations or points of interconnection to the electrical grid. Exceptions may be granted in instances where shallow bedrock, water courses, or other elements of the natural landscape interfere with the ability to bury lines. (5) All solar energy systems shall be in compliance with the adopted city and state building code, electrical code, and plumbing code, as amended and receive any necessary permits or approvals from any regulatory agency having jurisdiction. (d) Solar farms. Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 2 of 6 (1) Solar farm interim use permits. An interim use permit application must be submitted for approval by the planning commission and city council before a permit is issued for a solar farm. The information required and the procedure to be followed for all solar farm interim use permit applications shall be the same as that required for a conditional use permit set forth in subsections 90-37(a) and (b). In addition, the applicant shall submit supplementary information pertaining to the nature of the solar farm including: a. Total square footage of the solar energy system. b. Total energy production for the site. c. To scale horizontal and vertical (elevation) drawings. d. Drawings must show the location of the system on the property including the property lines and proposed fencing or vegetative buffer. e. Decommissioning plan. (2) Performance standards for solar farms. Solar farms shall be erected and maintained to meet the following standards. a. Solar farms shall be located on a minimum lot size of ten acres within the Long Term Agricultural (LA), Agricultural (AG), Rural Residential (RR), and Future Urban Service (FUS) zoning districts. Solar farms may also be located in any other zoning district only in the floodplain, as long as all other conditions are met. b. Solar farms shall be 50 feet from all property lines and public road rights-of-way. c. Ground mounted solar energy systems shall not exceed 15 feet in height at any point when oriented at maximum tilt. d. Solar farms shall be enclosed by approved perimeter fencing or adequate vegetative buffer for screening. Exception may be granted if the natural landscape provides screening from all public right of ways and neighboring properties. e. The owner/ operator of the solar farm shall provide the city with evidence that the solar energy system is functioning properly. This shall be provided at any time deemed necessary by the city. f. The owner/operator shall submit a decommissioning plan for the solar farm to ensure that the owner/operator properly removes the equipment and facilities upon the end of the project life, abandonment, expiration, or termination of the interim use permit. If the solar energy system remains nonfunctional or inoperative for a continuous period of 12 months, the system shall be deemed abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after a demolition permit has been obtained within 90 days after notice has been given. Removal includes the entire structure including transmission equipment, structures and foundations, and the restoration of soil and vegetation. The owner/operator shall provide a current-day decommissioning cost estimate, and shall post financial security in a form acceptable by the city. This estimate must include an inflationary escalator, in an amount determined by the city, which will allow the city to remove the solar farm from the property after the 90-day period has elapsed. (3) Criteria of approval of a solar farm. An application for a solar farm interim use permit may be granted only upon finding that all of the following criteria have been met: a. The applicant owns the property or has secured a proper lease agreement on the property, unless the city council determines that unique conditions or circumstances warrant special arrangement. Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 3 of 6 b. The proposed solar farm is allowed as a principle use in the respective zoning district and conforms to this chapter. c. The proposed solar farm is keeping with the spirit and intent of this chapter. d. The construction of a solar farm shall not impede the city's ability to implement its comprehensive plan. e. The proposed solar farm is compatible with the present character of the surrounding area. f. The proposed solar farm shall have a set date in which the permit shall be reviewed or terminated. g. The proposed solar farm shall be subject to any conditions that the city council deems appropriate for the permission of the use. (4) Conditions of approval. In permitting a new solar farm interim use permit or amending an existing solar farm interim use permit, the planning commission may recommend and the city council may impose additional conditions and requirements to protect the health, safety, and welfare of the surrounding area and the community at large, mitigate unfavorable consequences of activities resulting from the solar farm, enforce laws and regulations, and ensure compliance with the conditions of the permit. These conditions may include, but are not limited to, the following: a. Limitations on period of use and operation. b. Buffering and screening measures. c. Approval periods between one to twenty-five years. (5) Renewal of a solar farm interim use permit. Because of its temporary nature, an interim use permit for a solar farm shall not be renewed. Continuation of a solar farm beyond the date of expiration of its interim use permit requires approval of a new interim use permit. (6) Interim use permit nontransferable. Solar farm interim use permits do not run with the land. The permit is not transferable from person-to-person, and shall expire if there is a change in ownership of the property, unless the following conditions are met: a. The new permit holder must own the property or have a written lease agreement with the property owner stating the land will continue to be used for the production of energy via a solar farm. b. The new permit holder shall abide by all requirements of the original permit, including, but not limited to, posting financial security to the city for decommissioning, as outlined in subsection (2)f. c. The transfer of the permit must be approved by the city and filed accordingly. (7) Basis for denial. In order to recommend denial of an interim use permit, the planning commission must find that the proposed use will not meet one or more of the conditions found in subsection (d)(3) of this section. (8) Suspension and revocation. a. The city council may suspend or revoke an interim use permit upon failure of the interim use, or the interim use permit holder, owner, operator, tenant, or user, to comply with city codes, the laws of the State of Minnesota, the approved plans, or the conditions of approval, or by which that activities allowed under the permit adversely affect the public health, safety, or welfare. b. A suspension or revocation of an interim use permit shall be preceded by written notice to the permit holder and a hearing before the city council. The notice shall provide at least ten days' Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 4 of 6 notice of the time and place of the hearing and shall state the nature of the violations. The notice shall be mailed to the permit holder at the most recent address listed on the application. (9) Expiration and termination. An interim use permit shall expire and the interim use permit shall terminate at the earlier of: a. The expiration date established by the city council at the time of approval, but in no case more than 25 years from the date of approval. b. Occurrence of any event identified in the interim use permit for the termination of the use. c. Upon an amendment to the City Code that no longer allows the interim use. (10) Issuance of permit. The community development director or designee shall, within ten days of city council approval of any interim use permit, provide one copy of the completed permit to the applicant, the city clerk, and for permits issued in the floodplain district or shoreland district, to the Commissioner of the Department of Natural Resources. (e) Accessory solar energy systems. (1) Accessory solar energy systems building permit. A building permit application must be submitted and approved by the building official before an accessory solar energy system is installed. The information required and the procedure to be followed for all accessory solar energy system applications shall be the same as that required for a building permit. In addition, the applicant shall submit supplementary information pertaining to the nature of the accessory solar energy system including: a. Total square footage of the solar energy system. b. Total energy production for the site. c. To scale horizontal and vertical (elevation) drawings. d. Drawings must show the location of the system on the building or on the property including the property lines and proposed screening, if required. (2) Accessory commercial or industrial solar energy systems building permit. All commercial or industrial solar energy systems will require submittal for approval by the community development director or designee before a permit is issued for any accessory solar energy system. This submittal process will require the same application and supplementary information required in (e) (1). Denial of a building permit request may be appealed to the planning commission by following the procedures outlined in section 90-37.1. (3) Performance standards for accessory solar energy systems. Accessory solar energy systems shall be erected and maintained to meet the following standards. a. Setbacks for accessory solar energy systems are as follows: 1. Ground or pole mounted solar energy system panels shall conform to all setback requirements for accessory uses in the district in which they are located. 2. Roof mounted solar energy systems shall abide by all manufacturer specifications and requirements. b. Coverage requirements for accessory solar energy systems are as follows: 1. Ground mounted solar energy systems are considered accessory structures. The size of the system (sq. ft.) will be calculated as part of the maximum combined number and size of accessory structures allowed by lot size. The number and size of accessory structures permitted are as follows: Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 5 of 6 Lot size Maximum Number of Accessory Structures Allowed Maximum Combined Size of Accessory Structures (Square Feet) Under 1.5 acre 1 260 1.5 to 2.99 acres 2 1,500 3 to 4.99 acres 2 2,000 5 to 9.99 acres 2 3,500 10 or more acres 3 5,000 2. Roof mounted systems are not accessory structures and are excluded from size and number calculations for accessory structures. 3. A variance application may be submitted if the ground mounted solar energy system exceeds the limits for maximum combined size of accessory structures, but does not meet the definition of a solar farm. c. Height requirements for accessory solar energy systems are as follows: 1. Ground or pole mounted solar energy systems shall not exceed 15 feet in height when oriented at maximum tilt. 2. Roof mounted solar energy systems shall not project vertically more than the height requirements of the district in which they are located. d. Screening requirements for accessory solar energy systems are as follows: 1. Residential roof mounted solar energy systems are not required to be screened by this section. 2. Commercial or industrial roof mounted solar energy systems shall be installed such that it is compatible with the building architecture. Architectural standards as found in the commercial and industrial guidelines, a PUD, or other architectural conditions shall apply. e. Except in the agricultural and long-term agricultural zoning districts, no ground or pole mounted solar energy system shall be located or protrude in front of the principle building on the site, in relation to any public street. f. Roof mounted solar energy systems shall not extend beyond the perimeter of the building on which the system is mounted or built. Exterior piping for solar hot water systems shall be allowed to extend beyond the perimeter of the building. g. If the solar energy system remains nonfunctional or inoperative for a continuous period of 12 months, the system shall be deemed abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense within 90 days. Removal includes the entire structure including transmission equipment, structures and foundations, and the restoration of soil and vegetation. (4) Criteria for approval of an accessory commercial or industrial solar energy system. An application for an accessory commercial or industrial solar energy system permit may be granted only upon a finding that all the following criteria have been met: a. The applicant owns the property or has a leasing contract with the owner of the property. b. The proposed solar energy system conforms to this chapter. Created: 2023-03-09 14:35:42 [EST] (Supp. No. 31) Page 6 of 6 d. The proposed solar energy system shall be subject to, by agreement with the property owner or lease holder, any conditions that the city deems appropriate for permission of the use. (Ord. No. 2016-475, 12-21-2015)