NEW YORK STATE BOARD ON ELECTRIC GENERATION SITING AND THE ENVIRONMENT

CASE 12-F-0410 - Application of Cape Vincent Wind Power, LLC, for a Certificate of Environmental Compatibility and Public Need to Construct an Approximately 200-285 Megawatt Wind Electric Generating Facility in the Town of Cape Vincent, New York.

RULING ON INTERVENOR FUNDING REQUESTS (Issued May 28, 2013)

PAUL AGRESTA and MARIA E. VILLA, Examiners:

INTRODUCTION The Notice of Available Intervenor Funds and Deadline for Submitting Funding Requests, issued April 10, 2013, directed eligible municipal and local parties participating in the preapplication process of this proceeding to submit their requests for pre-application phase intervenor funding by May 10, 2013. Ten requests were submitted. Six requests were submitted by the

Town of Cape Vincent; three of the Town of Cape Vincent requests were co-sponsored by the Wind Power Ethics Group, LLC. were also submitted by the Town of Lyme, the Development Authority of the North Country, the Lyme Central School District, and on behalf of the Farm Bureau of Jefferson County. The requests sought funding totaling $151,840 in relation to $99,750 in available funds. The request on behalf of the Farm Requests

Bureau of Jefferson County was withdrawn by the party that made the request. On May 21, 2013, the Examiners held a public preapplication conference at the Cape Vincent Elementary School to consider the requests. Although an opportunity for objections

was provided, no objections were received to any of the requests. After receiving answers to questions posed by the

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Examiners concerning the requests, the Examiners made an initial oral bench-ruling on the requests. No action was taken on the The

request of the Development Authority of the North Country. request of the Lyme Central School District was denied. following intervenor funding awards were made: The

Town of Cape Vincent

To hire Dr. Carl V. Philips as a consultant regarding health issues and impacts. To hire Kris Dimmick, P.E., PWLF of Bernier Carr & Associates as an engineering consultant regarding safety and setbacks, karst geology, and application of the Town zoning law. To hire Paul J. Curtin, Jr. Esq. of Shulman, Curtin & Grunder P.C. to provide legal counsel. To hire Dr. Paul Schomer of Schomer and Associates as a consultant regarding noise issues and impacts. To hire Michael S. McCann, CRA as a consultant regarding property value impacts.

$15,515.00

Town of Cape Vincent

$16,410.00

Town of Cape Vincent

$11,320.00

Town of Cape Vincent and Wind Power Ethics Group LLC

$16,855.00

Town of Cape Vincent and Wind Power Ethics Group LLC

$15,940.00

Town of Cape Vincent and Wind Power Ethics Group LLC

To hire William Ross Evans, Ornithologist as a consultant regarding wildlife and habitat issues and impacts. To hire Kris Dimmick, P.E., PWLF of Bernier Carr & Associates as an engineering consultant regarding transmission line issues and impacts (up to $8,000), and to hire Mark G. Gebo, Esq. of Hrabchak, Gebo & Langone, P.C. to provide legal counsel (up to $3,000).

$6,560.00

Town of Lyme

$11,000.00

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The purpose of this ruling is to confirm the intervenor funding determinations in writing and to state the reasoning of the Examiners. DETERMINATIONS Lyme Central School District We find that the Lyme Central School District is an eligible municipal or local party, on the basis that the proposed interconnection powerline and a number of the proposed wind turbines are proposed to be located within the boundaries of the Lyme Central School District. However, because the

funding request is primarily for expenses associated with the potential negotiation of a payment-in-lieu-of-taxes (PILOT) agreement between the Applicant and the School District, the funding request is denied as it is for an ineligible purpose. PILOT agreements are not required for Article 10 facilities and are not matters before the Siting Board. Awards of intervenor

funds during the pre-application stage are limited to uses to make an effective contribution to review of the Preliminary Scoping Statement and the development of an adequate scope of the Application to be submitted, thereby increasing public participation in matters before the Siting Board. The only

other purpose stated in the request is to assist the School District to become familiar with the Article 10 process. We

find that to be an insufficient justification and note that there are many outreach activities performed by the Applicant and the Department of Public Service that could be utilized by the School District to gain familiarity with the Article 10 process at no cost to itself. In addition, we have also

determined that the school facilities of the Lyme Central School

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District are not in close proximity to the facility such that we would expect concerns about impacts on school property. 1 Town of Cape Vincent We find that the Town of Cape Vincent is an eligible municipal or local party, on the basis that all of the proposed wind turbines are proposed to be located within the boundaries of the Town. We find that the pre-application issues identified

by the Town (health issues and impacts; safety and setbacks; karst geology; application of the Town zoning law; noise issues and impacts; property value impacts; and wildlife and habitat issues and impacts) are all relevant in the context of review of the Preliminary Scoping Statement and the development of an adequate scope of the Application to be submitted, and that the awards have been made on an equitable basis after having examined the interests of all of the parties that made requests. In addition, we find it reasonable and equitable to make the award to the Town to defray the Town's costs of legal counsel in connection with these pre-application stage activities. Wind Power Ethics Group, LLC We find that the Wind Power Ethics Group, LLC is an eligible municipal or local party, on the basis that its directors and officers are all residents local to the area of the proposed wind facility and that its purposes appear to be to advocate concerns directly related to the local impacts of the proposed facility. Its partnering with the Town of Cape Vincent

on its funding requests gives us particular comfort that the Wind Power Ethics Group, LLC should be recognized as a local entity. We find that the pre-application issues identified by

the Wind Power Ethics Group, LLC (noise issues and impacts; property value impacts; and wildlife and habitat issues and
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The School District was given an opportunity to amend its request to propose an eligible purpose, but did not make such an amendment. -4-

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impacts) are all relevant in the context of review of the Preliminary Scoping Statement and the development of an adequate scope of the Application to be submitted, and that the awards have been made on an equitable basis after having examined the interests of all of the parties that made requests. Town of Lyme We find that the Town of Lyme is an eligible municipal or local party, on the basis that the interconnection powerline for the facility is proposed to be located within the boundaries of the Town. We find that the pre-application issues identified

by the Town (transmission line issues and impacts) are all relevant in the context of review of the Preliminary Scoping Statement and the development of an adequate scope of the Application to be submitted, and that the awards have been made on an equitable basis after having examined the interests of all of the parties that made requests. In addition, we find it

reasonable and equitable to make the award to the Town to defray the Town's costs of legal counsel in connection with these preapplication stage activities. Share to Municipalities On the basis of our substantial award of funds to the Towns of Cape Vincent and Lyme, we find that clearly at least 50% of the funds have been awarded to municipalities. Use and Disbursement of Funds Each party receiving an award of funds must use the awarded funds only for the purposes that have been specified in the particular award of intervenor funding. Intervenor funds

can be used to pay for expert witnesses, consultants, administrative costs (such as document preparation and duplication) and legal fees. No intervenor funds may be used to

pay for appeals of Siting Board decisions or other matters before a court. These pre-application stage funds are awarded -5-

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to be used to make an effective contribution to review of the Preliminary Scoping Statement and the development of an adequate scope of the Application to be submitted. used for any other purpose. They are not to be

In making these funding awards, we

are not making any determination on the merits of the party's positions on the issues identified in the award. A party who receives a funding award will be required by the Department of Public Service (DPS) Finance Office to sign Local Assistance Contract documents, which set forth the terms and conditions for providing intervenor funding. In the case of

the co-requests made by the Town of Cape Vincent and the Wind Power Ethics Group, LLC, both parties must execute the required documents. In addition, we hereby require the Wind Power Ethics

Group, LLC, to submit to the Examiners a copy of its certificate of incorporation and a copy of a corporate resolution duly adopted indicating its authorization to enter into the Local Assistance Contract and its authorization of an official of the corporation to sign such vouchers and other documents as may be necessary to obtain the disbursement of funds. No funds will be disbursed until after the work has been performed and detailed invoices have been submitted to DPS for review by both the Examiners and the Finance Office. All

disbursements from the pre-application intervenor account to any person shall be made by the DPS upon audit and warrant of the Comptroller of the State on vouchers approved by the Chairperson or a designee. All such vouchers must include a description and In the case of

explanation of all expenses to be reimbursed.

the co-requests made by the Town of Cape Vincent and the Wind Power Ethics Group, LLC, both parties must execute the required documents. Any monies remaining in the intervenor account after

the Siting Board's jurisdiction over an Application has ceased shall be returned to the applicant. -6-

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Reporting Requirements A party receiving an award of funds must also comply with certain reporting requirements. On a quarterly basis,

unless otherwise required by the Examiners, any party receiving an award of funds shall provide an accounting of the monies that have been spent, and submit a report to the Examiners showing the results of any studies and a description of any activities conducted using such funds; whether the purpose for which the funds were awarded has been achieved; if the purpose for which the funds were awarded has not been achieved, whether reasonable progress toward the goal for which the funds were awarded is being achieved; and why further expenditures are warranted.

(SIGNED)

PAUL AGRESTA

(SIGNED)

MARIA E. VILLA

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