Overview of the SEC Process

Robert Varney

Executive Vice President

Normandeau Associates, Inc.

Environmental Business Council of New England

Energy Environment Economy

OVERVIEW OF THE ENERGY

SITE EVALUATION COMMITTEE

PROCESS IN NEW HAMPSHIRE

EBC New Hampshire Chapter Program

March 12, 2014

• Olympic Oil Refinery Proposal (early 1970s)

HISTORICAL PERSPECTIVE

• Seabrook Station (1970s)

• Hydro-Quebec Transmission Line (1980s)

HISTORICAL PERSPECTIVE Continued

• Champlain Gas Pipeline Proposal (1980s)

HISTORICAL PERSPECTIVE Continued

TWO ENERGY SITING STATUTES

1. RSA 162-F – Bulk Power Facilities

– Seabrook Station Review/Certificate

– HQ Transmission Line Review/Certificate

2. RSA 162-H – Energy Facilities

– Champlain Gas Pipeline Review/Withdrawn

Two Committees; Two sets of Requirements.

1970s — 1980s

STATE ELECTRICAL ENERGY NEEDS PLANNING COMMITTEE REPORT

• “Committee recommends that the New Hampshire General Court investigate the procedures for siting, licensing and operation of energy facilities for efficiency and fairness. The Committee further recommends that the NH General Court investigate the procedures of public involvement to insure that neither state nor local practices unduly hinder the process.”

• Report led to HB 608 in 1989 session to implement this recommendation.

1988

“ENERGY FACILITY SITING, LICENSING AND OPERATION STUDY COMMITTEE”

• HB 608/Chapter 239 Study Committee.

• 4 Senators, 4 Representatives, and 14 Ex-Officio Members.

– Utilities, Alternate Power Producers, Municipal, Business, Environmental, Consumer Interests

• Open forum, consensus based approach.

• Major focus was (1) integration of State’s two siting laws, RSA 162-F and RSA 162-H; (2) enhance opportunities for public input; and (3) accelerate energy siting process.

• Report to Governor and Legislature – August 1990.

• Report led to revised legislation which was enacted in the 1991 session.

• Many, but not all, of the Study Committee recommendations were implemented in the new RSA 162-H.

• Amendments, since 1991, have been less comprehensive.

1989

SUMMARY OF RECOMMENDED CHANGES

• Consolidate RSA 162-F and RSA 162-H into a single energy siting law: RSA 162-H (162-F remained but was revised to address

decommissioning of nuclear power plants).

• Establish timeframes to accelerate SEC process.

• Clarify that major gas pipeline projects are covered by the statute.

• Lower threshold from 50 MW to 30 MW facilities.

• Add Director of Energy Office to SEC (Energy Efficiency).

• No designees – Committee found that “Siting energy facilities and power plants was so significant to the overall economic and environmental condition of the state, that it required the active participation of the agency heads, themselves.”

August 1990 Report

SUMMARY OF RECOMMENDED CHANGES

• Only one vote for 3 PUC Commissioners, not 3.

• Notification requirements to AG’s Office and Mayor/Selectmen.

• Conduct at least one public informational meeting for each county in which project is located, in addition to committee hearings.

• Require applicant to submit each agency application form with the SEC petition, and pay to each agency the normal application fees.

• Allow committee to condition a certificate upon the results of any required federal agency studies whose study period exceeds the application period.

• Many but not all recommendations were implemented.

August 1990 Report - continued

THE NEW HAMPSHIRE SITE EVALUATION COMMITTEE IN 2013

• 15 Members – DES Commissioner, Water Director and Air Director; PUC Commissioners and Engineer; DRED Commissioner, Forests and Lands Director and Parks and Recreation Director; DOT Commissioner; HHS Commissioner; F&G Director; OEP Director; DCR Commissioner (added in 2009).

• Chaired by DES Commissioner, PUC Chairman is Vice-Chair. Many specified designees allowed.

• SEC can establish subcommittee of at least 7 members to consider and take action on renewable energy facilities, and agencies have more flexibility in designating agency representatives on subcommittee.

• Issues certificate with terms, conditions and findings for construction for energy facilities.

• Required to monitor construction and operation of energy facilities that are issued certificates and enforce terms and conditions of certificate.

• Monitoring usually delegated to agencies represented on SEC, but hearings, issuance of certificates with terms and conditions and enforcement cannot be delegated.

• AG appoints an assistant AG to serve as Counsel for the Public.

SEC JURISDICTIONAL THRESHOLDS

Generally:

• Oil, coal and gas plants and associated facilities and transmission lines, equivalent to 30 MW or more.

• Renewable energy facilities (wind; geothermal; hydrogen; ocean thermal, wave, current or tidal; methane; biomass; solar; and hydroelectric) between 30 and 120 MW, or if deemed necessary by SEC, between 5 and 30 MW.

• Generally, gas pipelines and electric transmission lines at or above 100 KV threshold within an existing ROW; 200 KV threshold if outside existing transmission line ROW.

• Petition process in statute.

• SEC may vote to grant exemptions or take jurisdiction.

SEC TIMEFRAME — 9 MONTHS

• SEC has 60 days after filing to accept, not accept or exempt application.

• If rejected, applicant has 10 days to cure defect and resubmit.

• Within 30 days after accepting application, SEC must hold at least one public hearing in each County in which proposed facility is to be located.

• Within 5 months, participating agencies must report their progress on application to SEC, outlining draft permit conditions and data requirements.

• Within 9 months, SEC must issue or deny certificate, unless parties agree to extension (agencies submit final decisions to SEC within 8 months).

• Timeframes for renewable energy projects are shorter – 30 days to accept/not accept application; 30 days to hold at least one public informational meeting 3 months for agencies to submit progress reports; 6 months for agencies to submit proposed final decisions; 7 months for adjudicative hearing; and 8 months to issue or deny certificate. The subcommittee may extend timeframe; if they deem it in the public interest.

PUBLIC INFORMATION

Informational Hearings

• At least one public hearing in each county is which proposed facility to be located (within 30 days of SEC’s acceptance of application).

• Hearing satisfies hearing requirements of agencies represented on SEC.

Adjudicative Hearings

• Usually held in Concord; also can be held in county where facility to be located.

• Frequently multiple days of hearings.

• Formal hearing with sworn testimony, cross examination of witnesses, exhibits, transcripts, etc.

Public Records

• Free public access to application information and records.

CERTIFICATE OF SITE AND FACILITY

SEC must find that:

• The applicant has adequate financial, technical, and managerial capability for the project.

• The project will not unduly interfere with the orderly development of the region.

• The project will not have an unreasonable adverse effect on aesthetics, historic sites, air and water quality, the natural environment, and public health and safety.

• Project operation will be consistent with State energy policy (RSA: 378:37).

RECENT SEC-RELATED LEGISLATION

Senate Bill 99-2013 • Study of SEC and its processes. • Directed OEP to hire outside vendor(s); funds from PUC. • Focus Groups and Citizen Workshops – Completed December 2013. • Requires SEC to adopt rules by 1/1/15.

Senate Bill 191-2013 • Directs OEP to develop a new state energy strategy. • Outside vendor assistance. • Advisory Council includes 3 state representatives, 2 senators, DES

Commissioner, PUC Chair and OEP Director. • Final Report Presentation – September 2014.

Senate Bill 245-2014 • Energy siting legislation. • Proposes significant changes to RSA 162-H. • See March 6, 2014 Amendment.