Bill Summary – FastDemocracy

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                                     _____________ BILL NO. _____________
                                           (Primary Sponsor)
                           INTRODUCED BY _________________________________________________
                      BY REQUEST OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY
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 A BILL FOR AN ACT ENTITLED: “AN ACT CLARIFYING CERTAIN BONDING REQUIREMENTS FOR WIND
 AND SOLAR GENERATION FACILITIES; AMENDING SECTION 75-26-304, MCA; AND PROVIDING AN
 IMMEDIATE EFFECTIVE DATE.”
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 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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         Section 1. Section 75-26-304, MCA, is amended to read:
         "75-26-304.    Bond -- penalty for failure to submit. (1) (a) Within 12 months of a wind generation
 facility or solar facility commencing commercial operation, the owner of a wind generation facility or solar facility
 operating in Montana shall:
         (i)      notify the department in writing of the date that the facility began commercial operation;
         (ii)     subject to subsection (2), submit a plan for decommissioning the facility to the department,
 including the scope of work to be completed and cost estimates for completion; and
         (iii)    provide the department with any other necessary information in accordance with this part and
 rules adopted pursuant to this part in order for the department to determine bond requirements in accordance
 with this section.
         (b)      Except as provided in subsection (1)(c), if a wind generation facility or solar facility commenced
 commercial operation before May 7, 2019, the owner of the facility shall submit to the department the
 information required in subsection (1)(a) on or before July 1, 2020.
         (c)      If a wind generation facility commenced commercial operation before May 7, 2019, and the
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 owner of the facility submitted information required by subsection (1)(a) on or before July 1, 2018, the owner is
 not required to resubmit the information.
          (2)      If a property owner and the owner of a wind generation facility or solar facility reach an
 agreement concerning alternative restoration of buildings, cabling, electrical components, roads, or any other
 associated facilities, instead of removal, or alternative plans for reclamation of surface lands, or both,
 decommissioning does not include removal, plans for reclamation, or both, as long as a copy of the agreement
 is provided to the department.
          (3)      (a) If necessary, the department may modify a plan for decommissioning to determine bond
 requirements in accordance with subsections (4) through (8).
          (b)      The department shall notify the owner of the facility of any modification. The owner of the wind
 generation facility or solar facility may appeal a modification by the department of a plan for decommissioning to
 the board within 60 days of receiving notice of the modification to the plan.
          (4)      In determining the amount of a bond required in accordance with subsection (6), the
 department shall consider:
          (a)      the character and nature of the site where the wind generation facility or solar facility is located;
 and
          (b)      the current market salvage value of the wind generation facility or solar facility, as determined
 by an independent evaluator.
          (5)      Except as provided in subsections (7) and (8) and in accordance with subsection (6), the owner
 of a wind generation facility or solar facility shall submit to the department a bond payable to the state of
 Montana in a form acceptable by the department and in the sum determined by the department, conditioned on
 the faithful decommissioning of the wind generation facility or solar facility.
          (6)      (a) Except as provided in subsections (7) and (8), if a wind generation facility or solar facility
 commenced commercial operation on or before January 1, 2007, the operator shall submit the
 decommissioning bond to the department prior to the conclusion of the 16th year of operation of the wind
 generation facility or solar facility.
          (b)      Except as provided in subsections (7) and (8), if a wind generation facility or solar facility
 commenced commercial operation after January 1, 2007, the operator shall submit the decommissioning bond
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 to the department prior to the conclusion of the 15th year of operation of the wind generation facility or solar
 facility.
             (7)    If a wind generation facility or solar facility is repurposed, as determined by the department in
 consultation with the owner, the owner is not required to provide a bond, and any existing bond must be
 released until the repurposed facility reaches its 5th year of operation.
             (8)    An owner of a wind generation facility or solar facility is exempt from the requirements of
 subsection (6) if:
             (a)    for that portion of a wind generation facility or solar facility, the owner posts has posted a
 decommissioning bond with a federal agency, with the department of natural resources and conservation for
 the lease of state land, or with a tribal, county, or local government;
             (b)    the owner furnishes documents to the department that prove the owner is responsible under
 the terms and conditions of a lease agreement to provide private bonding. The parties shall agree that release
 of the agreed upon on bond is subject to the approval of the department upon on completion of reclamation.
             (c)    the private landowner on whose land the wind generation facility or solar facility is located owns
 a 10% or greater share of the wind generation facility or solar facility, as determined by the department; or
             (d)    the facility:
             (i)    commenced commercial operation on or before January 1, 2018, is a wind generation facility,
 and has less than 25 megawatts in nameplate capacity; or
             (ii)   commenced commercial operation on or before January 1, 2020, is a solar facility, and has less
 than 2 megawatts in nameplate capacity.
             (9)    (a) If the owner of the wind generation facility or solar facility fails to submit a decommissioning
 bond acceptable to the department within the timeframe required by this section, the department shall provide
 notice to the facility owner. If after 30 days the owner of a wind generation facility or solar facility has not
 submitted a decommissioning bond, the department may assess an administrative penalty of not more than
 $1,500 and an additional administrative penalty of not more than $1,500 for each day the failure to submit the
 decommissioning bond continues.
             (b)    The owner of the wind generation facility or solar facility may appeal the department's penalty
 assessment to the board within 20 days after receipt of written notice of the penalty. The contested case
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 provisions of the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, apply to a hearing before the
 board under this subsection (9).
            (10)   If the owner of a wind generation facility or solar facility transfers ownership of the facility to a
 successor owner, the first owner's bond must be released after 90 days. The new owner shall submit any
 necessary bond within 90 days after transfer of ownership or be subject to penalties in accordance with this
 section.
            (11)   Once every 5 years after a facility is bonded, the owner of a wind generation facility or solar
 facility may submit an amended plan for the department's approval. As part of the submission, the owner of a
 wind generation facility or solar facility may also apply to the department for a reduction in the amount of the
 decommissioning bond applicable to the wind energy facility or solar facility. The owner's application to the
 department must include a detailed description of any material changes to information considered by the
 department in setting the initial amount of the bond and may include an amended decommissioning plan for the
 department's approval.
            (12)   Submitting a bond in accordance with this section does not absolve the owner of a wind
 generation facility or solar facility from complying with applicable regulations and requirements for:
            (a)    areas subject to local zoning adopted under Title 76, chapter 2;
            (b)    military affected areas under Title 10, chapter 1, part 15; or
            (c)    airport affected areas under Title 67, chapter 7."
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            NEW SECTION. Section 2.        Effective date. [This act] is effective on passage and approval.
                                                            - END -
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Statutes affected: 
LC Text: 75-26-304