Decision 25481-D01-2020

2171802 Ltd.

Bull Pound Community Solar Project

June 30, 2020

Alberta Utilities Commission Decision 25481-D01-2020 2171802 Alberta Ltd. Bull Pound Community Solar Project Proceeding 25481 Application 25481-A001

June 30, 2020

Published by the: Alberta Utilities Commission Eau Claire Tower 1400, 600 Third Avenue S.W. , Alberta T2P 0G5

Telephone: 310-4AUC (310-4282) in Alberta 1-833-511-4AUC (1-833-511-4282) outside Alberta Email: [email protected] Website: www.auc.ab.ca

The Commission may, within 30 days of the date of this decision and without notice, correct typographical, spelling and calculation errors and other similar types of errors and post the corrected decision on its website.

Alberta Utilities Commission Calgary, Alberta

Decision 25481-D01-2020 2171802 Alberta Ltd. Proceeding 25481 Bull Pound Community Solar Project Application 25481-A001

1 Decision summary

1. In this decision, the Alberta Utilities Commission considers whether to approve an application from 2171802 Alberta Ltd., operating as Bull Pound Solar Partners, to construct and operate a 15-megawatt solar power plant designated as the Bull Pound Community Solar Project, to qualify the power plant as a community generating unit, and to connect the power plant to the electric distribution system of ATCO Electric Ltd.

2. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the project is in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment. The Commission also qualifies the power plant as a community generating unit and approves the connection of the power plant to the ATCO Electric Ltd. electric distribution system.

2 Introduction

3. 2171802 Alberta Ltd., operating as Bull Pound Solar Partners (BPSP), filed an application with the Commission seeking an approval to construct and operate a 15-megawatt (MW) solar power plant and connect it to ATCO Electric Ltd.’s electric distribution system in the Dorothy area within Special Areas No. 2 (the project), pursuant to sections 11 and 18 of the Hydro and Electric Energy Act. BPSP also applied for the project to be designated as a community generating unit as defined in Section 3 of the Small Scale Generation Regulation. The application was registered on 25, 2020, as Application 25481-A001.

4. The Commission issued a notice of application in accordance with Section 7 of Rule 001: Rules of Practice for the project and did not receive any submissions in response to the notice.

3 Discussion

5. The proposed project would be located on cultivated land within Special Areas No. 2, approximately 20 kilometres southeast of the of Dorothy, within the southeast quarter of Section 17, 26, Range 15, west of the Fourth Meridian. The proposed power plant would consist of approximately 54,000 solar panels and six inverter/transformer units, and have a gross generation capability of 15 MW.

6. BPSP clarified that the project would be connected to ATCO’s 25-kilovolt electric distribution system at a point in Legal 2 of Section 17, Township 26, Range 15,

Decision 25481-D01-2020 (June 30, 2020) 1 Bull Pound Community Solar Project 2171802 Alberta Ltd.

west of the Fourth Meridian.1 BPSP provided a letter from ATCO indicating that it is prepared to allow the interconnection.

7. BPSP submitted a solar glare analysis report for the project prepared by Phoventus Inc. The report predicted the potential glare impacts of the project using solar panels with an anti-reflective coating at five buildings within a five-kilometre radius of the project area and along a five-kilometre section of Highway 862 south of the project area. The report determined that the project could cause incidences of green glare at two of the buildings, with no incidence lasting longer than 10 minutes per day, and that there would be no incidences of solar glare along Highway 862. The report stated that the incidences of green glare would be “analogous to “green” glare reflecting off a small lake during sunrise.”2 Phoventus concluded that the project would pass U.S. Federal Aviation Administration regulations for glare and that no mitigation measures would be necessary for the project.

8. BPSP retained Shrike Environmental Consulting Ltd. to conduct an environmental evaluation for the project. Shrike assessed the potential impact of the project to soils, terrain and vegetation, and concluded that the project would not result in significant residual effects on the environment. The environmental evaluation included a conservation and reclamation plan acknowledging BPSP’s obligations under the Environmental Protection and Enhancement Act and the Conservation and Reclamation Regulation, to properly reclaim the project and obtain a reclamation certificate at the project’s end of life.

9. BPSP received a renewable energy referral report from Alberta Environment and Parks Wildlife Management (AEP-WM). The referral report ranked the project as a “low risk to wildlife and wildlife habitat, based on project siting, limited wildlife use in the area and commitments made by the proponent to mitigate and monitor wildlife impacts.”3

10. BPSP conducted a participant involvement program pursuant to Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. That program included consultation with stakeholders within 800 metres of the project and notification of stakeholders within 2,000 metres of the project. BPSP consulted with the Chair of the Special Areas Board who advised that a meeting with the Special Areas Board is not required until the project applies for development permits. BPSP also consulted with the administrator for Special Areas No. 2 and no concerns were raised.4 BPSP stated there are no residences within 2,000 metres of the project boundary and there are no outstanding stakeholder concerns regarding the project.

11. BPSP stated that it consulted with emergency responders including the local RCMP detachment and chief of the Special Areas Fire Detachments. The local RCMP expressed no concerns with the project as proposed. The fire chief advised that he had no concerns with the project as proposed and a more detailed emergency response plan would be discussed when the project applies for local development permits.5

1 Exhibit 25481-X0022, IR1 Responses, PDF page 9. 2 Exhibit 25481-X0006, Attachment 4 Glint and Glare, PDF page 13. 3 Exhibit 25481-X0008, Attachment 6 AEP Referral Report, PDF page 3. 4 Exhibit 25481-X0004, Attachment 3 Part A – PIP Summary and Appendices A–D, PDF page 9. 5 Exhibit 25481-X0004, Attachment 3 Part A – PIP Summary and Appendices A-D, PDF page 10.

Decision 25481-D01-2020 (June 30, 2020) 2 Bull Pound Community Solar Project 2171802 Alberta Ltd.

12. BPSP received a development permit from Alberta Transportation on July 2, 2019, which stipulated that a full site plan of the project must be provided to Alberta Transportation prior to construction. In response to an information request, BPSP stated it will provide its full site plan to Alberta Transportation prior to construction and confirmed that construction will not commence until any permit amendments that may be required by Alberta Transportation have been finalized.6

13. BPSP submitted a noise impact assessment for the project to address the requirements of Rule 012: Noise Control. The noise impact assessment concluded that the project would meet the daytime and nighttime permissible sound levels as set out in Rule 012.7

14. BPSP indicated that project construction is scheduled to start in August 2020 and the expected in-service date of the project is in June 2021.

15. BPSP provided a certificate of incorporation for 2171802 Alberta Ltd., under the Business Corporations Act.

16. In support of its application to be qualified as a community generating unit, BPSP provided a community benefits agreement signed by 2171802 Alberta Ltd. and the Municipal of Acadia #34.8 BPSP confirmed that the of Acadia #34 will receive a minimum annual community benefit payment. BPSP provided a letter from ATCO confirming that it had qualified the project as a small-scale generator under the Small Scale Generation Regulation.9 BPSP stated that based on preliminary guidance it expects the cost of the project meter to range between $50,000 and $60,000.10

4 Findings

17. For the following reasons, the Commission finds that the approval of the project is in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act.

18. The Commission has reviewed the application and has determined that the technical, siting, emissions, environmental and noise aspects of the power plant have been met. The Commission is satisfied that BPSP’s participant involvement program has been conducted in accordance with Rule 007 and there are no outstanding public or industry objections or concerns.

19. There are currently no public safety standards or regulations in place associated with solar glare. The Commission observes that Phoventus’ conclusion was premised upon the use of an anti-reflective coating applied to the solar panels that would limit solar glare. Accordingly, the approval of this project is conditional upon the use of an anti-reflective coating. The Commission imposes the following as conditions of approval:

a. BPSP shall use a standard anti-reflective coating for the project’s solar panels.

b. BPSP shall file a report detailing any complaints or concerns it receives or is made aware of regarding solar glare from the project during its first year of operation, as well as

6 Exhibit 25481-X0022, IR1 Responses, PDF page 2. 7 Exhibit 25481-X0013, Attachment 10 NIA, PDF page 18. 8 Exhibit 25481-X0022, IR1 Responses, PDF pages 16-24. 9 Exhibit 25481-X0021, IR1 Responses, PDF page 9. 10 Exhibit 25481-X0024, IR2 Responses, PDF page 2.

Decision 25481-D01-2020 (June 30, 2020) 3 Bull Pound Community Solar Project 2171802 Alberta Ltd.

BPSP’s response to the complaint. BPSP shall file this report no later than 13 months after the project becomes operational.

20. The Commission acknowledges the low risk ranking assigned to the project in AEP-WM’s renewable energy referral report. The Commission accepts the project’s environmental evaluation, which concluded that the potential and residual effects of the project are not anticipated to be significant.

21. Rule 033: Post-approval Monitoring Requirements for Wind and Solar Power Plants applies to all solar projects approved after September 1, 2019. Accordingly, BPSP must comply with the requirements of Rule 033. Subsection 3(3) of Rule 033 requires approval holders to submit to Alberta Environment and Parks and the AUC annual post-construction monitoring survey reports. Consequently, the Commission imposes the following as a condition of approval:

c. BPSP shall submit an annual post-construction monitoring survey report to Alberta Environment and Parks (AEP) and the AUC within 13 months of the project becoming operational, and on or before the same date every subsequent year for which AEP requires surveys pursuant to Subsection 3(3) of Rule 033: Post-approval Monitoring Requirements for Wind and Solar Power Plants.

22. The Commission finds that the project’s noise impact assessment fulfills the requirements of Rule 012. Based on the results in the noise impact assessment, the Commission accepts that the predicted cumulative sound levels for the project are expected to comply with daytime and nighttime permissible sound levels.

23. The Commission finds that the application meets the requirements for a connection order to ATCO’s electric distribution system. There are no outstanding technical issues regarding the connection, nor are there any outstanding public or industry concerns regarding the connection.

24. In accordance with the requirements of Section 23 of the Hydro and Electric Energy Act, 2171802 Alberta Ltd. is incorporated under the Business Corporations Act. Based upon the information provided in the application, 2171802 Alberta Ltd. has demonstrated that it is eligible to hold the power plant approval and connection order in its name.

25. Section 3 of the Small Scale Generation Regulation allows a small-scale power producer who owns a small-scale generating unit that is the subject of a community benefits agreement or a community benefits statement to apply to the Commission to have it qualified as a community generating unit. That section requires that the application be in a form established by the Commission and include the community benefits agreement or community benefits statement that applies to the small-scale generating unit and any other information required by the Commission.

26. Upon receipt of an application and related information, the Commission must determine whether the small-scale generating unit qualifies as a community generating unit. If it is qualified, the Commission must determine the amount of costs for which the distribution owner should be compensated, as described in either subsections 5(2)(a) or (3)(a)(i) of the Small Scale Generation Regulation.

Decision 25481-D01-2020 (June 30, 2020) 4 Bull Pound Community Solar Project 2171802 Alberta Ltd.

27. BPSP filed its application in the form established by the Commission. BPSP also provided additional information about costs estimates and included a community benefits agreement by way of responses to information requests from the Commission.

28. The Commission finds that BPSP’s application for the project’s designation as a community generating unit satisfies the requirements of the Small Scale Generation Regulation. ATCO has qualified the project as a small-scale generating unit and BPSP has provided a signed community benefits agreement which outlines the economic benefits of the Bull Pound Community Solar Project to the Municipal District of Acadia #34.

29. The Commission therefore qualifies the project as a community generating unit under the Small Scale Generation Regulation.

30. Section 5 of the Small Scale Generation Regulation specifies the costs for which a small-scale power producer is responsible. Specifically, in the case of a community generating unit that is not within an isolated community, as is the case with BPSP’s generating unit, Subsection 5(3)(a)(i) requires that the distribution owner purchase the meter that is installed for the community generating unit, to a maximum of one meter per facility.

31. The Commission is satisfied that as the distribution owner, ATCO is entitled to recover the costs incurred to purchase the meter for the project (estimated to be between $50,000 and $60,000), pursuant to Subsection 5(3)(a)(i) of the Small Scale Generation Regulation. Accordingly, the Commission imposes the following condition:

d. Once the distribution owner has purchased the meter for the community generating unit, BPSP must provide the Commission with written confirmation of the actual cost to purchase the meter.

5 Decision

32. Pursuant to Section 11 of the Hydro and Electric Energy Act, the Commission approves the application and grants 2171802 Alberta Ltd. the approval set out in Appendix 1 – Power Plant Approval 25481-D02-2020 – June 30, 2020, to construct and operate the Bull Pound Community Solar Project.

33. Pursuant to Section 18 of the Hydro and Electric Energy Act, the Commission approves the interconnection and grants 2171802 Alberta Ltd. the order set out in Appendix 2 – Connection Order 25481-D03-2020 – June 30, 2020, to connect the Bull Pound Community Solar Project to ATCO Electric Ltd.’s electric distribution system.

Decision 25481-D01-2020 (June 30, 2020) 5 Bull Pound Community Solar Project 2171802 Alberta Ltd.

34. Pursuant to Section 3 of the Small Scale Generation Regulation, the Commission qualifies the Bull Pound Community Solar Project as a community generating unit.

Dated on June 30, 2020.

Alberta Utilities Commission

(original signed by)

Carolyn Dahl Rees Chair

Decision 25481-D01-2020 (June 30, 2020) 6 Bull Pound Community Solar Project 2171802 Alberta Ltd.

Appendix A – Summary of Commission conditions of approval

This section is intended to provide a summary of all conditions of approval for the convenience of readers. In the event of any difference between the directions and conditions in this section and those in the main body of the decision, the wording in the main body of the decision shall prevail.

The following are conditions of Decision 25481-D01-2020 that require follow up with the Commission, and will be tracked as conditions of Power Plant Approval 25481-D02-2020 using the AUC’s eFiling System:

• BPSP shall use a standard anti-reflective coating for the project’s solar panels.

• BPSP shall file a report detailing any complaints or concerns it receives or is made aware of regarding solar glare from the project during its first year of operation, as well as BPSP’s response to the complaint. BPSP shall file this report no later than 13 months after the project becomes operational.

• BPSP shall submit an annual post-construction monitoring survey report to Alberta Environment and Parks (AEP) and the AUC within 13 months of the project becoming operational, and on or before the same date every subsequent year for which AEP requires surveys pursuant to Subsection 3(3) of Rule 033: Post-approval Monitoring Requirements for Wind and Solar Power Plants.

• Once the distribution owner has purchased the meter for the community generating unit, BPSP must provide the Commission with written confirmation of the actual cost to purchase the meter.

Decision 25481-D01-2020 (June 30, 2020) 7