Bill Summary for S 669 (2023-2024)

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Summary date: 

Apr 13 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 669 (Public) Filed Thursday, April 6, 2023
AN ACT TO REQUIRE RESPONSIBLE DECOMMISSIONING OF NEWLY-SITED UTILITY-SCALE SOLAR PROJECTS UPON CESSATION OF OPERATIONS.
Intro. by P. Newton, Moffitt, Rabon.

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Bill summary

Enacts GS 130A-309.240, pertaining to decommissioning and restoration requirements for utility-scale solar projects, as part of new Part 2J (Management of Solar Energy Equipment) to Article 9 of GS Chapter 130A. Defines photovaltaic module (PV module) to mean the smallest nondivisible, environmentally protected assembly of photovoltaic cells or other  photovoltaic collector technology and ancillary parts intended to generate electrical power under sunlight, that is part of a utility-scale solar project. Also defines cessation of operations, expansion or expanded, rebuild or rebuilt, recycle, transfer or transferred, and utility-scale solar project.

Requires the owner or operator of a utility-scale solar project to be responsible for proper decommissioning of the project upon cessation of operations and restoration of the property to its condition before the utility-scale solar project was sited, including all costs, by no later than one year following cessation of operations. Specifies the following minimum steps to be taken in decommissioning a project:

  • Disconnect the solar project from the power grid.
  • Remove all equipment from the solar project, and collect and ship equipment for reuse, or recycle all of the components thereof capable of being recycled, including the PV modules; the entire solar module racking system; aboveground electrical interconnection and distribution cables that are no longer deemed necessary; subsurface cable no longer deemed necessary; any metal fencing; electrical and electronic devices, including transformers and inverters; and defined term, energy storage system batteries. Components that will not be shipped for reuse, and are incapable of being recycled, must be properly disposed of in (i) an industrial landfill; (ii) a municipal solid waste landfill; or (iii) a hazardous waste disposal facility, for materials determined to be hazardous. Recycling of equipment must be conducted in compliance with environmentally sound management practices to transport and recycle such items. An owner or operator must conduct and document due diligence assessments of the recyclers it contracts with, including an assessment of compliance with environmentally sound recovery standards. Requires the Department of Environmental Quality (Department) to adopt rules to establish environmentally sound recovery standards for this purpose.
  • Restore the property to (i) its condition before the utility-scale solar project was sited or (ii) an alternative condition approved by both the landowner and the Department. Land that was filled, graded, or cleared of trees for the solar project may be revegetated or reforested with seedlings instead of restored to its original condition.

Provides for notice to the Department. Sets forth registration requirements with the Department for utility-scale solar projects. 

Effective August 1, 2025, and applies to utility-scale solar projects constructed prior to or after that date

Requires the owner/operator to submit a decommissioning plan, by the specified time frame, containing six required elements (contact information, project narrative, information on equipment to be salvaged, information on how the property will be restored, cost estimate, and how the financial assurance requirement will be met) that is prepared by a professional engineer licensed in North Carolina for approval by the Department. Requires the owner/operator of the project to establish financial assurance either by August 1, 2025, or at least 90 days prior to the commencement of the project, depending on when the project is constructed. Specifies that the financial assurance must be in an amount acceptable to the Department that will ensure that sufficient funds are available for decommissioning the project and restoration of the property. Effective August 1, 2025, and applies only to (1) utility-scale solar projects for which applications for certificates of public convenience and necessity are pending or submitted on or after the effective date of the act; (2) utility-scale solar projects in operation on the date the act become effective, only if the project is rebuilt or expanded, as those terms are defined by GS 130A-309.240(a)(2) and (4), after the effective date of the act, in which case the project will be subject to the registration and decommissioning plan requirements of GS 130A-309.240(c) and (d); and (3) utility-scale solar projects in operation on the date the act becomes effective, if ownership of the project is transferred after the effective date of this act, in which case the project will be subject to the registration and decommissioning plan requirements of GS 130A-309.240(c) and (d) upon transfer of ownership.

Requires the Utilities Commission to develop and maintain a list of all utility-scale projects operating within the State and to provide the Department with an updated list on or before July 1 each year. Permits landowners and local governments to establish more stringent requirements for decommissioning and financial assurance projects for their property/jurisdictions. Permits the Department to collect fees and to delegate all or some responsibility for the implementation of GS 130A-309.240 to local governments.

Requires the Department to adopt permanent rules establishing criteria to set the amount of financial assurance criteria and other rules as necessary setting criteria for decommissioning plans, registration fees, and any other matter it deems necessary by August 1, 2025.  Requires quarterly reports to the specified NCGA committee on the implementation of the act starting December 1, 2023, through December 1, 2025.

Enacts GS 130A-309.241 requiring the Department and the Department of Commerce to identify existing incentives and grant programs to encourage research and development on recycling and reuse of PV modules and to facilitate growth of the State's PV module recycling and reuse industry. Permits enforcement of the act under the remedies provision of GS Chapter 130A, including any appeals taken as part of an enforcement action.

Makes conforming changes to GS 130A-309.06 (pertaining to the powers and duties of the Department).

Appropriates to DEQ (1) $10,000 in nonrecurring funds for the 2023-24 fiscal year for operational start-up costs to establish the program as required by GS 130A-309.240 and (2) $379,000 in recurring funds for the 2023-24 fiscal year for three full-time equivalent (FTE) positions to implement the program as required by GS 130A-309.240.

Requires the Public Staff of the Utilities Commission to identify existing laws that do not require ratepayer contribution or governmental appropriations that would enable recovery of the costs of decommissioning for utility-scale solar facilities not subject to a financial assurance requirement pursuant to GS 130A-309.240, a requirement of local government with jurisdiction over the property where the facility is located, or a lease or other binding contract and to compile a list in consultation with the Department of all utility-scale solar projects operating within the State as of the effective date of the act and to report this information to the NCGA by no later than January 1, 2025.

Specifies rules of construction pertaining to existing contracts. Contains severability clause.