Solar Decommissioning Plans Underway for 36 U.S. States: A Sunrise Brief

Law Firm Lewis Roca has made a groundbreaking contribution by releasing what is thought to be the first comprehensive legal analysis that compiles and evaluates renewable energy decommissioning requirements across the entire United States. The publication, titled “State Requirements For Decommissioning End-Stage Renewable Energy Projects,” is an exhaustive investigation of the legal landscape for renewable energy decommissioning.

This analysis reveals that out of the 36 states examined, 33 have full-fledged rules and regulations for decommissioning, while the remaining three are in various stages of development. This demonstrates a strong national commitment to responsible renewable energy management.

The report is designed as a user-friendly resource, complete with an index that references the specific laws in each state. This feature allows developers and other stakeholders to swiftly locate the appropriate language and legal provisions for their respective projects.

Co-authors Tom Dougherty and Dietrich Hoefner, legal experts in the field, not only compile the regulations but also delved into the most prevalent decommissioning requirements. These commonly include the formulation and regular updating of decommissioning plans, stringent land restoration guidelines, and bonding requirements to guarantee that the necessary finances for end-of-life work are secured.

The study uncovers some intriguing insights, such as the fact that 29 out of the 36 states have made provisions specifically for solar energy, while two states with significant wind energy infrastructure – Iowa and Kansas – lack decommissioning regulations altogether.

The report meticulously details each state’s profile with concise descriptions and references to the decommissioning requirements. This includes both state and local-level rules, providing a panoramic view of the legal landscape.

North Dakota offers an illustrative example of financial insurance requirements, mandating a timeline for decommissioning and financial assurance equivalent to 5% of the estimated cost. The assurance can be in various forms, catering to the diversity of financial arrangements in the energy sector.

New York, on the other hand, presents a more intricate set of guidelines. The state’s decommissioning guideline handbook provides specific cost estimates for dismantling facilities and necessitates various guarantees and agreements, especially for third-party-owned lands.

Furthermore, New York imposes strict regulations regarding the content of the permitting process. This includes detailed decommissioning plans that encompass various aspects, such as environmental impacts, aesthetics, recycling plans, potential future site uses, and the projected end of the facility’s useful life. The ongoing monitoring and updating every five years ensure compliance and adaptability to changing circumstances.

New York is also forward-thinking in considering legislation aimed at preserving prime soils or farmland where solar facilities are built, ensuring that they remain viable for agricultural production after the equipment is removed.

While Lewis Roca’s report is pioneering in its scope, it is part of a broader trend of nationwide analyses focusing on solar power regulations across the United States. The concerted efforts of legal professionals, regulators, environmentalists, and industry stakeholders all contribute to shaping a sustainable and responsible future for renewable energy in the country. The report serves as a critical tool for decision-makers and the industry at large in navigating the complex and ever-evolving regulatory environment.