FERC Order 2023 Site Control Glossary

Attachment E Affidavit (MISO)

A sworn document submitted to MISO as proof of site control at interconnection queue milestones. The affidavit attests that the developer controls a specified percentage of the project footprint through eligible instruments such as leases, options, or fee ownership. MISO requires this filing at DPP Phase 1 (75% coverage) and again at IA execution (100% coverage). False attestation can result in queue withdrawal and potential FERC enforcement action.

BLM Right-of-Way Permit

A Bureau of Land Management permit authorizing the use of federal public lands for energy generation, transmission, or related infrastructure. For solar and wind projects on BLM-administered land, the ROW status directly affects site control coverage calculations, particularly in CAISO's market where parcels must have at least a "granted" status before counting toward coverage at certain study phases. The BLM ROW process typically takes 2-5 years due to NEPA review, cultural resource surveys, and public comment periods. See also: DRECP.

Related: FAQ: BLM right-of-way and site control

Cluster Study (CAISO, NYISO Class Year)

A grouped interconnection study process where multiple projects in the same electrical area are evaluated together rather than sequentially. FERC Order 2023 mandated cluster-based processing across all RTOs, replacing the former first-come-first-served serial approach. In CAISO, clusters form annual windows with specific entry requirements including 90% site control (options excluded). NYISO uses the analogous "Class Year" process. Cluster studies identify shared network upgrades and allocate costs proportionally among included projects.

Related: Blog: Coverage Thresholds by RTO and Stage

Commercial Operation Date (COD)

The date on which a generation facility begins producing electricity for sale to the grid under its interconnection agreement. The COD is a critical milestone because leases, options, and other site control instruments must remain active through this date. If an instrument expires before COD, the project loses site control on the underlying parcels. RTOs use the COD to determine whether a project has met its interconnection timeline commitments, and failure to achieve COD by the agreed date can trigger penalties or agreement termination.

Conservation Easement / Conservation Restriction

A legal agreement that permanently restricts development on a parcel to protect natural, agricultural, or scenic values. Conservation easements are typically held by land trusts or government agencies and survive changes in ownership. For site control purposes, a parcel encumbered by a conservation easement is generally ineligible for solar or wind development because the easement prohibits the change in land use. Parcels with conservation restrictions are flagged as encumbrances during a coverage audit and excluded from the coverage calculation.

Coverage Threshold

The minimum percentage of a project's footprint that must be under valid site control at a given interconnection queue stage. Each RTO defines its own stage-specific thresholds: PJM requires 100% at application, CAISO requires 90% at cluster study entry (options excluded), and MISO requires 75% at DPP Phase 1. Falling below the threshold at any milestone results in automatic withdrawal from the queue. Coverage is calculated as the ratio of controlled acreage (passing all five audit filters) to total project footprint acreage.

Related: Blog: Coverage Thresholds by RTO and Stage | FAQ: Thresholds by RTO

Definitive System Agreement (DSA)

A binding agreement in MISO that formalizes the interconnection terms, allocated network upgrade costs, and operational requirements for a generation project. The DSA is executed after the Definitive Planning Phase (DPP) studies are complete and the developer has demonstrated 100% site control. Signing the DSA commits the developer to fund their share of network upgrades and establishes the project's commercial operation date. Failure to execute the DSA within the allotted timeframe results in queue withdrawal.

DRECP (Desert Renewable Energy Conservation Plan)

A comprehensive land-use plan governing renewable energy development on BLM-administered public lands in the California desert. The DRECP designates Development Focus Areas (DFAs) where solar and wind projects are encouraged, and conservation areas where development is restricted. For CAISO interconnection applicants, parcels within DRECP conservation areas cannot count toward site control coverage. Projects on BLM land in the California desert must demonstrate that their footprint falls within a DFA or has an approved variance before the BLM ROW can be granted.

Easement

A legal right to use another party's land for a specific, limited purpose such as access roads, utility corridors, or transmission line routing. Unlike a lease or fee ownership, an easement does not transfer possession of the land. Most RTOs accept easements as eligible site control instruments, but the easement must be active, cover the relevant portion of the project footprint, and be signed by all landowners of record. Easements are commonly used for gen-tie lines and substation access rather than the primary generation facility footprint.

Encumbrance

A claim, lien, mortgage, or restriction on a property that may affect site control eligibility for interconnection purposes. Common encumbrances include mortgages (which may require an SNDA to resolve), conservation easements, tax liens, and use restrictions like the Williamson Act. Each RTO has its own encumbrance policy as part of the five-filter coverage audit. A parcel that fails the encumbrance filter is excluded from the coverage calculation regardless of whether a valid lease exists.

Related: FAQ: 5 filters in a site control audit

Executed Lease

A fully signed land lease agreement granting the developer the right to use the property for energy project development over a specified term. An executed lease is the strongest form of site control short of fee simple ownership and is accepted at full weight (100%) by all RTOs at all queue stages. The lease must be active (not expired), signed by all required owners, and free of disqualifying encumbrances to count toward coverage.

Facilities Study

The final detailed engineering study in the interconnection process that determines the exact cost, scope, and timeline of required network upgrades and interconnection facilities. The facilities study follows the System Impact Study and produces a binding cost estimate. In PJM's reformed process, the facilities study corresponds to the Phase 2 study completed before Decision Point 2 (DP2). Developers must maintain compliant site control through the facilities study phase or face withdrawal.

Fee Simple

Outright ownership of land with no limitations on its use, transfer, or inheritance, representing the most complete form of property ownership. Fee simple is the strongest site control instrument and is accepted at full weight by all RTOs at every queue stage. Unlike leases and options, fee ownership does not expire and cannot be terminated by a landowner, eliminating expiration risk. However, fee-owned parcels can still be subject to encumbrances such as mortgages, conservation easements, or tax liens that may affect coverage eligibility.

FERC Order 2023

A federal regulation issued by the Federal Energy Regulatory Commission in July 2023 that reformed the interconnection queue process across all U.S. RTOs. The order replaced serial, first-come-first-served queues with a clustered study process requiring developers to demonstrate commercial readiness -- including site control -- at every queue milestone. Projects that cannot prove compliant site control at each stage are withdrawn automatically. The rule applies to PJM, MISO, CAISO, ISO-NE, NYISO, SPP, and indirectly influences ERCOT.

Related: FAQ: What is FERC Order 2023? | Blog: FERC 2023 Compliance in 2026

Forward Capacity Market (FCM) ISO-NE

ISO New England's capacity market that procures commitments from generators to meet projected electricity demand three years in advance. New generation projects must qualify through the FCM before they can earn capacity payments. To qualify, projects must demonstrate site control and interconnection progress, linking the FCM timeline to cluster study milestones. ISO-NE requires 50% site control at cluster study entry and 100% at IA execution, with capacity obligations beginning on the Forward Capacity Auction delivery date.

Generation Interconnection Agreement (GIA)

The final contract between a generator and the transmission provider that governs the terms of grid interconnection, including technical requirements, cost allocation for network upgrades, and operational obligations. The GIA is executed after all interconnection studies are complete and the developer has met all readiness requirements, including 100% site control in most RTOs. Executing the GIA is the last major queue milestone before construction and represents a binding financial commitment to fund allocated network upgrades.

Interconnection Queue

The ordered list of generation projects waiting to connect to the transmission grid in a given RTO. Under FERC Order 2023, the queue now operates as a clustered process where projects are grouped by region and study window. As of 2024, there are over 2,600 GW of generation capacity in U.S. interconnection queues, with median wait times of 5 years from application to commercial operation. Approximately 77% of projects withdraw before reaching operation.

M-3.1S Attestation (PJM)

PJM's site control attestation form submitted under Manual 14H to certify that the applicant controls 100% of the project footprint for the generating facility. The M-3.1S form requires the developer to list each parcel, the instrument type (lease, fee, option, easement), and the controlling entity. PJM requires this attestation at application for Cycle 1 (deadline April 27, 2026) and at each subsequent Decision Point. False or incomplete attestation can result in queue withdrawal and forfeiture of readiness deposits.

Related: Free PJM Cycle 1 Toolkit | PJM Hub

Municipal Right of First Refusal (ROFR) Massachusetts Ch. 61

A municipality's statutory right to purchase or restrict the sale of land enrolled in preferential tax programs (such as Massachusetts Chapter 61, 61A, or 61B) before it is sold to a third party for a change in use. When a developer acquires land under these programs for solar development, the municipality has 120 days to exercise its right of first refusal by matching the purchase price. This creates a timing risk for site control: parcels subject to a municipal ROFR cannot be considered fully controlled until the municipality waives or the 120-day period expires.

Option-to-Lease

A contract granting the developer the right, but not the obligation, to execute a full land lease within a specified period (typically 1-3 years). Options are accepted as site control instruments by most RTOs at early queue stages, but may be excluded or weighted at less than 100% depending on the RTO and stage. Notably, CAISO excludes options entirely at cluster study entry. Because interconnection studies often take 3-5 years, developers must plan option conversions carefully to avoid coverage gaps at later milestones.

Related: Blog: Option-to-Lease Expiration and Milestones | FAQ: What happens if an option expires?

Option-to-Purchase

A contract granting the developer the right, but not the obligation, to buy the land outright within a specified period. Like an option-to-lease, the option-to-purchase is accepted at some RTOs for early-stage site control but excluded at later stages or in certain markets (CAISO excludes all options at cluster study entry). Converting an option-to-purchase to fee simple ownership eliminates expiration risk but requires significant upfront capital.

Option Weight

The fractional value assigned to an option instrument (option-to-lease or option-to-purchase) when calculating site control coverage. Some RTOs count options at full weight (100%) at early stages, while others discount or exclude them. For example, PJM accepts options at 100% weight at application, while CAISO assigns options 0% weight at cluster study entry. The option weight directly affects whether a project meets its coverage threshold, making it critical to understand each RTO's stage-specific treatment of options.

Point of Interconnection (POI)

The physical location where a generation facility connects to the transmission or distribution system, typically at an existing or new substation. The POI determines which transmission system the project impacts, which in turn drives the interconnection study scope and network upgrade costs. Site control for the POI location and the gen-tie line corridor connecting the project to the POI must be demonstrated separately from the generation facility footprint. Choosing a POI with available transmission capacity can significantly reduce upgrade costs and study timelines.

Readiness Deposit

A financial deposit required by RTOs at interconnection queue milestones to demonstrate commercial commitment and filter out speculative projects. In PJM's reformed process, Readiness Deposit No. 1 (RD1) is $4,000/MW at application, RD2 is 10% of allocated network upgrade costs at Decision Point 1, and RD3 is 20% at Decision Point 2. Deposits become progressively less refundable at each stage, creating increasing financial exposure for projects that later withdraw. The readiness deposit structure was a key reform introduced by FERC Order 2023.

Related: PJM Deposit Calculator | FAQ: PJM Decision Points

Regional Transmission Organization (RTO)

A FERC-regulated entity that coordinates and controls electric power transmission across a multi-state region, managing the interconnection queue and enforcing site control requirements. The seven U.S. RTOs are PJM (Mid-Atlantic/Midwest), MISO (Central U.S.), CAISO (California), ISO-NE (New England), NYISO (New York), SPP (Great Plains), and ERCOT (Texas, not FERC-jurisdictional). Each RTO implements FERC Order 2023 with its own stage-specific coverage thresholds, eligible instrument rules, and encumbrance policies.

Right-of-Way (ROW) Agreement

A legal agreement granting the right to pass through or use a strip of land for infrastructure such as transmission lines, access roads, or pipelines. ROW agreements are essential for gen-tie corridors connecting a generation facility to its Point of Interconnection. On federal lands, a BLM Right-of-Way Permit serves the same function. ROW agreements must be active and properly executed to count toward site control coverage for the interconnection corridor.

Site Control

Legal documentation proving a developer's right to use land for energy project development, required at every interconnection queue milestone under FERC Order 2023. Eligible instruments include fee simple ownership, executed leases, options, and easements. A complete site control audit checks five filters: active status, eligible instrument type, encumbrance policy, owner signature verification, and BLM ROW status. Failing any filter on a parcel excludes it from the coverage calculation.

Related: FAQ: What counts as site control?

SNDA (Subordination, Non-Disturbance, and Attornment Agreement)

A three-party agreement among a lender, landlord, and tenant (developer) that makes a mortgage junior to a lease, protecting the developer's site control through foreclosure. Without an SNDA, an existing mortgage has senior priority -- if the lender forecloses, the lease is extinguished and site control is lost. While no RTO currently disqualifies sites based on subordination status (it does not affect coverage calculations), project finance lenders and tax equity investors will not fund a project without subordination resolution on every encumbered parcel.

Related: FAQ: What is an SNDA?

Study Deposit

An upfront payment required when submitting an interconnection application to fund the RTO's engineering studies of the proposed project. Study deposits vary by RTO and project size: PJM requires $75,000-$400,000 depending on megawatt capacity, while other RTOs have their own fee schedules. The study deposit is separate from the readiness deposit and covers the cost of the System Impact Study and Facilities Study. Unused portions may be refundable, but the non-refundable portion is forfeited upon withdrawal.

Related: PJM Deposit Calculator

System Impact Study (SIS)

An engineering study that evaluates the effect of a proposed generation project on the reliability and performance of the transmission system. The SIS identifies potential thermal overloads, voltage violations, and stability issues that would result from adding the project to the grid, and determines what network upgrades are needed to mitigate them. Under the reformed cluster study process, the SIS is conducted for all projects in the cluster simultaneously, with costs allocated proportionally.

Tenancy-in-Common

A form of co-ownership where multiple parties each hold an undivided interest in a property, meaning no single owner controls a specific physical portion of the land. For site control purposes, all tenants-in-common must sign the lease or option for the instrument to be valid -- a missing signature from any co-owner disqualifies the parcel from the coverage calculation. Tenancy-in-common is common in agricultural land passed through estates, where multiple heirs each hold a fractional interest, making signature collection a significant due diligence challenge.

Williamson Act (California)

California's Land Conservation Act (Government Code Section 51200) allowing landowners to receive reduced property tax assessments in exchange for restricting land use to agriculture or open space for a minimum of 10 years. Solar and wind projects on Williamson Act land may face restrictions depending on the county's policies -- some counties allow solar as a compatible use, while others require non-renewal, triggering a 9-year phase-out period. CAISO may require documentation that the contract has been non-renewed or that the county permits solar development as a compatible use before counting the parcel toward site control coverage.

Related: Blog: Williamson Act and CAISO Queue | FAQ: Williamson Act and CAISO

Withdrawal Penalty

A financial penalty imposed on developers who withdraw from the interconnection queue after committing readiness deposits. Under FERC Order 2023, withdrawal penalties increase at each queue stage to discourage speculative applications. In PJM, withdrawing before Decision Point 1 forfeits only the non-refundable study deposit portion, but after DP1, the full readiness deposit for that phase becomes non-refundable. These escalating penalties make it critical to validate site control coverage early -- discovering a coverage gap after committing deposits can mean forfeiting millions of dollars.

Related: PJM Deposit Calculator | FAQ: PJM Decision Points