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69th Legislature 2025 HB0031.2
- 1 - Authorized Print Version – HB 31
1 HOUSE BILL NO. 31
2 INTRODUCED BY N. DURAM
3 BY REQUEST OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT CLARIFYING CERTAIN BONDING REQUIREMENTS FOR WIND
6 AND SOLAR GENERATION FACILITIES; PROVIDING FOR A DECOMMISSIONING LIEN; AMENDING
7 SECTION SECTIONS 75-26-304, AND 75-26-308, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE
8 DATE.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12 Section 75-26-304, MCA, is amended to read:
13 "75-26-304. (1) (a) Within 12 months of a wind generation
14 facility or solar facility commencing commercial operation, the owner of a wind generation facility or solar facility
15 operating in Montana shall:
16 (i) notify the department in writing of the date that the facility began commercial operation;
17 (ii) subject to subsection (2), submit a plan for decommissioning the facility to the department,
18 including the scope of work to be completed and cost estimates for completion; and
19 (III) AN ABSTRACT OF ANY LEASING AGREEMENT BETWEEN A
20; AND
21 (iii)(IV) provide the department with any other necessary information in accordance with this part and
22 rules adopted pursuant to this part in order for the department to determine bond requirements in accordance
23 with this section.
24 (b) Except as provided in subsection (1)(c), if a wind generation facility or solar facility commenced
25 commercial operation before May 7, 2019, the owner of the facility shall submit to the department the
26 information required in subsection (1)(a) on or before July 1, 2020.
27 (c) If a wind generation facility commenced commercial operation before May 7, 2019, and the
28 owner of the facility submitted information required by subsection (1)(a) on or before July 1, 2018, the owner is - 2025
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1 not required to resubmit the information.
2 (D) W90 DAYS OF A WIND GENERATION FACILITY OR SOLAR,
3
4
5 (2) If a property owner and the owner of a wind generation facility or solar facility reach an
6 agreement concerning alternative restoration of buildings, cabling, electrical components, roads, or any other
7 associated facilities, instead of removal, or alternative plans for reclamation of surface lands, or both,
8 decommissioning does not include removal, plans for reclamation, or both, as long as a copy of the agreement
9 is provided to the department.
10 (3) (a) If necessary, the department may modify a plan for decommissioning to determine bond
11 requirements in accordance with subsections (4) through (8).
12 (b) The department shall notify the owner of the facility of any modification. The owner of the wind
13 generation facility or solar facility may appeal a modification by the department of a plan for decommissioning to
14 the board within 60 days of receiving notice of the modification to the plan.
15 (4) (A) In determining the amount of a bond required in accordance with subsection (6), the
16 department shall consider:
17 (a)() the character and nature of the site where the wind generation facility or solar facility is located;
18 and
19 (b)() the current market salvage value of the wind generation facility or solar facility, as determined
20 by an independent evaluator.
21 (B) T100% OF THE AMOUNT
22 BY THE DEPARTMENT (3) THROUGH (5) AND (12).
23 (5) Except as provided in subsections (7) and (8) and in accordance with subsection (6), the owner
24 of a wind generation facility or solar facility shall submit to the department a bond payable to the state of
25 Montana in a form acceptable by the department and in the sum determined by the department, conditioned on
26 the faithful decommissioning of the wind generation facility or solar facility.
27 (6) (a) Except as provided in subsections (7) and (8), if a wind generation facility or solar facility
28 commenced commercial operation on or before January 1, 2007, the operator OWNER shall submit the - 2025
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1 decommissioning bond to the department prior to the conclusion of the 16th year of operation of the wind
2 generation facility or solar facility.
3 (B) E(6)(D), (7), AND (8), IF A WIND GENERATION FACILITY OR SOLAR
4JANUARY 1, 2007,O1, 2025,
5 DECOMMISSIONING BOND TO THE DEPARTMENT PRIOR TO THE CONCLUSION OF THE TH YEAR OF
6.
7 (b)(C) Except as provided in subsections (6)(D), (7), and (8), if a wind generation facility or solar
8 facility commenced commercial operation after January 1, 2007 ON OR AFTER OCTOBER 1, 2025, the operator
9shall submit the decommissioning bond to the department prior to the conclusion of the 15th 12year
10 of operation of the wind generation facility or solar facility.
11 (D) EXCEPT AS PROVIDED IN SUBSECTIONS (7) AND (8),
12,, IF A PROPERTY LEASE FOR
13 FACILITY TERMINATES PRIOR TO THE CONCLUSION OF THE TH YEAR OF OPERATION OF THE FACILITY,
14 1 YEAR PRIOR TO THE PROPERTY LEASE
15.
16 (7) If a wind generation facility or solar facility is repurposed, as determined by the department in
17 consultation with the owner, the owner is not required to provide a bond, and any existing bond must be
18 released until the repurposed facility reaches its 5th year of operation.
19 (8) An owner of a wind generation facility or solar facility is exempt from the requirements of
20 subsection (6) if:
21 (a) for that portion of a wind generation facility or solar facility, the owner posts has posted a
22 decommissioning bond with a federal agency, with the department of natural resources and conservation for
23 the lease of state land, or with a tribal, county, or local government;
24 (b) the owner furnishes documents to the department that prove the owner is responsible under
25 the terms and conditions of a lease agreement to provide private bonding. The parties shall agree that release
26 of the agreed upon on bond is subject to the approval of the department upon on completion of reclamation.
27 (c) the private landowner on whose land the wind generation facility or solar facility is located owns
28 a 10% or greater share of the wind generation facility or solar facility, as determined by the department; or - 2025
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1 (d) the facility:
2 (i) commenced commercial operation on or before January 1, 2018, is a wind generation facility,
3 and has less than 25 megawatts in nameplate capacity; or
4 (ii) commenced commercial operation on or before January 1, 2020, is a solar facility, and has less
5 than 2 megawatts in nameplate capacity.
6 (9) (a) If the owner of the wind generation facility or solar facility fails to submit a decommissioning
7 bond acceptable to the department within the timeframe required by this section, the department shall provide
8 notice to the facility owner. If after 30 days the owner of a wind generation facility or solar facility has not
9 submitted a decommissioning bond, the department may assess an administrative penalty of not more than
10 $1,500 and an additional administrative penalty of not more than $1,500 for each day the failure to submit the
11 decommissioning bond continues.
12 (b) The owner of the wind generation facility or solar facility may appeal the department's penalty
13 assessment to the board within 20 days after receipt of written notice of the penalty. The contested case
14 provisions of the Montana Administrative Procedure Act, Title 2, chapter 4, part 6, apply to a hearing before the
15 board under this subsection (9).
16 (10) If the owner of a wind generation facility or solar facility transfers ownership of the facility to a
17 successor owner, the first owner's bond must be released after 90 days. The new owner shall submit any
18 necessary bond within 90 days after transfer of ownership or be subject to penalties in accordance with this
19 section.
20 (11) Once every 5 years after a facility is bonded, the owner of a wind generation facility or solar
21 facility may submit an amended plan for the department's approval. As part of the submission, the owner of a
22 wind generation facility or solar facility may also apply to the department for a reduction in the amount of the
23 decommissioning bond applicable to the wind energy facility or solar facility. The owner's application to the
24 department must include a detailed description of any material changes to information considered by the
25 department in setting the initial amount of the bond and may include an amended decommissioning plan for the
26 department's approval.
27 (12) Submitting a bond in accordance with this section does not absolve the owner of a wind
28 generation facility or solar facility from complying with applicable regulations and requirements for: - 2025
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1 (a) areas subject to local zoning adopted under Title 76, chapter 2;
2 (b) military affected areas under Title 10, chapter 1, part 15; or
3 (c) airport affected areas under Title 67, chapter 7."
4
5 NEW SECTION. SECTION 2. ECOMMISSIONING LIEN. (1) FOR A WIND GENERATION FACILITY OR SOLAR
630 DAYS OF ABANDONMENT OF A WIND
7, THE DEPARTMENT SHALL FILE A LIEN ON THE GENERATION ASSETS OF THE
8
975-26-304 PLUS AN ANNUAL INFLATIONARY AMOUNT DETERMINED BY THE DEPARTMENT.
10 (2) THE DEPARTMENT SHALL RELEASE A LIEN SECURED PURSUANT TO SUBSECTION (1) FOLLOWING THE
1175-26-304(6)(B), (6)(C), OR
12 (6)().
13 (3) IF THE OWNER OF A WIND GENERATION FACILITY OR SOLAR FACILITY FAILS TO PROPERLY
14
1590 DAYS AFTER NOTICE BY THE DEPARTMENT, THE DEPARTMENT MAY FORECLOSE ON THE
16. THE DEPARTMENT, THROUGH DEPARTMENT STAFF, EQUIPMENT,, AND MATERIAL UNDER ITS CONTROL
17, MAY TAKE ANY ACTION NECESSARY TO DECOMMISSION THE WIND GENERATION FACILITY
18.
19
20ECTION 3. SECTION 75-26-308, MCA,:
21 "75-26-308. (1) There is
22 a wind and solar decommissioning account within the state special revenue fund established in 17-2-102. There
23 must be paid into the account:
24 (a) penalties collected in accordance with 75-26-304(9);
25 (b) proceeds from the sale of assets secured by liens on a wind generation facility or solar facility
26 that has been liquidated pursuant to [section 2(3)]; and
27 (b)(c) interest income earned on the account.
28 (2) Funds in the wind and solar decommissioning account are statutorily appropriated, as provided - 2025
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1 in 17-7-502, to the department.
2 (3) (a) Money in the account may only be used by the department in implementing this part and
3 rules adopted pursuant to this part.
4 (b) The department shall administer this part using existing resources and money in the account
5 pursuant to subsection (1).
6 (4) The department shall maintain and hold bonds or other surety received by the department as
7 authorized in 75-26-304 for use in accordance with this part."
8
9 NEW SECTION. Section 4. [This act] is effective on passage and approval.
10
11 NEW SECTION. SECTION 5. ODIFICATION INSTRUCTION. [SECTION 2] IS INTENDED TO BE CODIFIED AS AN
12T75, CHAPTER 26, PART 3, AND THE PROVISIONS OF TITLE 75, CHAPTER 26, PART 3, APPLY TO
13 [SECTION 2].
14 - END -