DEPARTMENT OF PUBLIC SERVICE ~ RULING ON INTERVENOR FUNDING REQUESTS

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

 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 pre-application 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. Requests 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 The request on behalf of the Farm Bureau of Jefferson County was withdrawn by the party that made the request.

On May 21, 2013, the Examiners held a public pre-application 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 request of the Development Authority of the North Country. The request of the Lyme Central School District was denied. The following intervenor funding awards were made:

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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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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 pre-application 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

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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 pre-application 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

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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. They are not to be used for any other purpose. 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 explanation of all expenses to be reimbursed. 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. Any monies remaining in the intervenor account after the Siting Board's jurisdiction over an Application has ceased shall be returned to the applicant.

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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