1 | 1 | | Session of 2025 |
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2 | 2 | | SENATE BILL No. 233 |
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3 | 3 | | By Committee on Federal and State Affairs |
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4 | 4 | | 2-6 |
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5 | 5 | | AN ACT concerning energy; relating to commercial wind and solar energy |
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6 | 6 | | facilities; establishing requirements for the decommissioning of such |
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7 | 7 | | facilities; requiring a county to enter into a decommissioning agreement |
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8 | 8 | | with a facility owner prior to construction of any such facility; |
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9 | 9 | | requiring the facility owner to provide financial assurance in an amount |
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10 | 10 | | sufficient to cover the costs of decommissioning; requiring |
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11 | 11 | | decommissioning costs to be paid by affected landowners under certain |
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12 | 12 | | circumstances. |
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13 | 13 | | Be it enacted by the Legislature of the State of Kansas: |
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14 | 14 | | Section 1. (a) (1) Prior to the construction of any commercial solar |
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15 | 15 | | energy facility or commercial wind energy facility in this state, the board |
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16 | 16 | | of county commissioners of the county where such proposed facility will |
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17 | 17 | | be located shall require the facility owner to enter into a decommissioning |
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18 | 18 | | agreement with the county. The decommissioning agreement shall |
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19 | 19 | | establish a sufficient, efficient and enforceable decommissioning plan for |
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20 | 20 | | the facility. The decommissioning plan shall require a facility owner to |
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21 | 21 | | decommission all generating units and applicable supporting facilities and |
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22 | 22 | | materially return and restore any land disturbed or changed as a result of |
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23 | 23 | | the construction, operation and decommissioning of the facility to the |
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24 | 24 | | condition that such land existed prior to such construction, operation and |
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25 | 25 | | decommissioning. |
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26 | 26 | | (2) The decommissioning plan shall be prepared by an independent, |
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27 | 27 | | third-party engineer licensed under the laws of this state. Such plan shall |
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28 | 28 | | include an estimate and description of the amount of financial assurance |
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29 | 29 | | that shall be sufficient for the facility owner to implement the |
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30 | 30 | | decommissioning plan. Such financial assurance cost estimate shall be |
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31 | 31 | | updated by such an engineer at least once every five years to account for |
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32 | 32 | | any inflation adjustments or other factors. The facility owner shall |
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33 | 33 | | reimburse the county for any costs borne by the county to contract with an |
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34 | 34 | | engineer pursuant to this section. |
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35 | 35 | | (3) The facility owner shall provide the financial assurance |
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36 | 36 | | determined pursuant to paragraph (2) in the form of an irrevocable standby |
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37 | 37 | | letter of credit, performance bond, surety bond or unconditional payment |
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38 | 38 | | guarantee executed by a parent company of the facility owner only if such |
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39 | 39 | | parent company maintains an investment grade credit rating. The county |
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75 | 75 | | 36 SB 233 2 |
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76 | 76 | | shall have the sole authority to determine the form of financial assurance |
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77 | 77 | | required pursuant to a decommissioning plan and may, from time to time |
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78 | 78 | | and as conditions may require, revise the form of financial assurance |
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79 | 79 | | required. Such financial assurance shall at all times be accessible by such |
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80 | 80 | | county so that the county may initiate decommissioning of the facility in |
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81 | 81 | | accordance with the terms and conditions of the decommissioning |
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82 | 82 | | agreement. |
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83 | 83 | | (b) Upon any change of ownership of a commercial solar energy |
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84 | 84 | | facility or commercial wind energy facility, a decommissioning agreement |
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85 | 85 | | entered into pursuant to this section shall be transferred to and all such |
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86 | 86 | | rights and obligations assumed by the subsequent facility owner. |
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87 | 87 | | (c) If a facility owner indicates an inability to complete |
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88 | 88 | | decommissioning, or is no longer in business, and the county is unable to |
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89 | 89 | | access the financial assurance to complete decommissioning in accordance |
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90 | 90 | | with a decommissioning plan entered into pursuant to this section, the |
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91 | 91 | | county shall decommission such facility in accordance with the |
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92 | 92 | | decommissioning plan and shall assess against any landowner who is |
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93 | 93 | | subject to a lease or easement relating to such facility the costs borne by |
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94 | 94 | | the county to decommission any such facility on such landowner's land. |
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95 | 95 | | Prior to the county bearing the costs to decommissioning any such facility |
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96 | 96 | | and assessing such costs against landowners as provided in this subsection, |
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97 | 97 | | the county may authorize any landowner to decommission any such |
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98 | 98 | | facility and may establish reasonable time limitations for the landowner's |
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99 | 99 | | completion of such decommissioning. |
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100 | 100 | | (d) Any decommissioning agreement entered into pursuant to this |
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101 | 101 | | section shall include meaningful remedy and penalty provisions for a |
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102 | 102 | | facility owner's noncompliance with such agreement, including a |
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103 | 103 | | requirement that when the county commences a civil action against a |
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104 | 104 | | facility owner with respect to the enforcement or interpretation of a |
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105 | 105 | | decommissioning agreement, the county shall be entitled to an award of |
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106 | 106 | | the county's costs of such litigation, including reasonable attorney fees, |
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107 | 107 | | from the facility owner. The county shall have authority to enforce a |
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108 | 108 | | decommissioning agreement by mandamus or other appropriate |
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109 | 109 | | proceeding at law or equity. |
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110 | 110 | | (e) As used in this section: |
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111 | 111 | | (1) "Commercial solar energy facility" means any device or assembly |
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112 | 112 | | of devices and supporting facilities that has a nameplate capacity of a least |
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113 | 113 | | one megawatt and uses solar energy to generate electricity for the primary |
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114 | 114 | | purpose of wholesale or retail sale. |
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115 | 115 | | (2) "Commercial wind energy facility" means any device or assembly |
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116 | 116 | | of devices and supporting facilities that has a nameplate capacity of at |
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117 | 117 | | least one megawatt and uses kinetic energy from the wind to generate |
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118 | 118 | | electricity for the primary purpose of wholesale or retail sale. |
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161 | 161 | | 43 SB 233 3 |
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162 | 162 | | (3) "Facility owner" means any person who has a direct ownership |
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163 | 163 | | interest in or who is acting as the developer or operator of a commercial |
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164 | 164 | | solar energy facility or commercial wind energy facility. |
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165 | 165 | | Sec. 2. This act shall take effect and be in force from and after its |
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166 | 166 | | publication in the statute book. |
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