Oklahoma 2025 Regular Session

Oklahoma House Bill HB1373 Compare Versions

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29-SENATE FLOOR VERSION
30-April 17, 2025
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3328 ENGROSSED HOUSE
3429 BILL NO. 1373 By: Boles and Crosswhite Hader
3530 of the House
3631
3732 and
3833
3934 Green of the Senate
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4538 An Act relating to commercial solar facilities;
4639 creating the Commercial Solar Facility
4740 Decommissioning Act; defining terms; making certain
4841 agreement provisions void; providing for certain
4942 injunctive relief; stating certain provision s are not
5043 exclusive; requiring agreement contain certain
5144 provisions; requiring landowner make certain timely
5245 request; requiring certain financial assurance be
5346 delivered; stating acceptable forms of financial
5447 assurance; requiring certain amount of financial
5548 assurance; assigning ce rtain costs to grantee;
5649 prohibiting certain cancellation of financial
5750 assurance; providing for codification; and providing
5851 an effective date.
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6356 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6457 SECTION 1. NEW LAW A new section of law to be codified
6558 in the Oklahoma Statutes as Section 820 of Title 17, unless there is
6659 created a duplication in numbering, reads as follows:
6760 This act shall be known and may be cited as the "Commercial
6861 Solar Facility Decommissioning Act ".
62+SECTION 2. NEW LAW A new section of law to be codified
63+in the Oklahoma Statutes as Section 820.1 of Title 17, unless there
64+is created a duplication in numbering, reads as follows:
65+As used in Commercial Solar Facility Decommissioning Act:
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96-SECTION 2. NEW LAW A new section of law to be codified
97-in the Oklahoma Statutes as Section 820.1 of Title 17, unless there
98-is created a duplication in numbering, reads as follows:
99-As used in Commercial Solar Facility Decommissioning Act:
10092 1. "Generation assets" means all assets associated with the
10193 production of electricity, including generation plants, electrical
10294 interconnections of the ge neration plant to the transmission system,
10395 fuel contracts, fuel transportation contracts, water contracts,
10496 lands, surface or subsurface water rights, emissions -related
10597 allowances, and gas pipeline interconnections ;
10698 2. "Grantee" means a person, other than an electric utility
10799 who:
108100 a. leases property from a landowner, and
109101 b. operates a solar power facility on the property;
110102 3. "Solar energy device" means a solar energy collector or
111103 solar energy system that provides for the collection of solar energy
112104 or the subsequent use of that energy as thermal, mechanical, or
113105 electrical energy;
114106 4. "Solar power facility " includes:
115107 a. a solar energy device , and
116108 b. a facility or equipment, other than a facility or
117109 equipment owned by an electric utility, used to
118110 support the operation of a solar energy device,
119111 including an underground or aboveground electrical
112+transmission or communications line, an electric
113+transformer, a battery storage facility, an energy
114+storage facility, telecommunications equipment, a
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147-transmission or communications line, an electric
148-transformer, a battery storage facility, an energy
149-storage facility, telecommunicat ions equipment, a
150141 road, a meteorologica l tower, or a maintenance yard;
151142 and
152143 5. "Solar power facility agreement " means a lease agreement
153144 between a grantee and a landowner that authorizes the grantee to
154145 operate a solar power facility on the leased property.
155146 SECTION 3. NEW LAW A new section of law to be codified
156147 in the Oklahoma Statutes as Section 820.2 of Title 17, unless there
157148 is created a duplication in numbering, reads as follows:
158149 The Commercial Solar Facility Decommissioning Act shall apply
159150 only to a solar power facilit y that is a generation asset as defined
160151 in Section 2 of this act.
161152 SECTION 4. NEW LAW A new section of law to be codified
162153 in the Oklahoma Statutes as Section 820.3 of Title 17, unless there
163154 is created a duplication in numbering , reads as follows:
164155 A. A provision of a solar power facility agreement that
165156 purports to waive a right or exempt a grantee from a liability or
166157 duty established by the Commercial Solar Facility Decommissioning
167158 Act is void.
168159 B. A person who is harmed by a violatio n of the Commercial
169160 Solar Facility Decommissioning Act is entitled to appropriate
170161 injunctive relief to prevent further violation of the act.
162+C. The provisions of this section are not exclusive. The
163+remedies provided in this section are in addition to any other
164+procedures or remedies provided by other law.
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198-C. The provisions of this section are not exclusive. The
199-remedies provided in this section are in addition to any other
200-procedures or remedies provided by other law.
201191 SECTION 5. NEW LAW A new section of law to be codified
202192 in the Oklahoma Statutes as Section 820.4 of Title 17, unless there
203193 is created a duplication in numbering, reads as follows:
204194 A. A solar power facility agreement shall provide that the
205195 grantee is responsible for removing the grantee 's solar power
206196 facilities from the landowner 's property and that the grantee shall,
207197 in accordance with any other applicable laws or regulation s, safely:
208198 1. Clear, clean, and remove from the property each solar energy
209199 device, transformer, and substation;
210200 2. For each foundation of a solar energy device, transformer,
211201 or substation installed in the ground:
212202 a. clear, clean, and remove the foundation from the
213203 ground to a depth of at least three (3) feet below the
214204 surface grade of the land in which the foundation is
215205 installed, and
216206 b. ensure that each hole or cavity created in the ground
217207 by the removal is filled with soil of the same type or
218208 a similar type as the predominant soil found on the
219209 property;
220210 3. For each buried cable, including power, fiber -optic, and
221211 communications cables, installed in the ground:
212+a. clear, clean, and remove the cable from the ground to
213+a depth of at least three (3) feet below the surface
214+grade of the land in which the cable is installed , and
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249-a. clear, clean, and remove the cable from the ground to
250-a depth of at least three (3) feet below the surface
251-grade of the land in which the cable is installed , and
252241 b. ensure that each hole or cavity created in the ground
253242 by the removal is filled with soil of the same type or
254243 a similar type as the predominant soil found on the
255244 property; and
256245 4. Clear, clean, and remove from the property each overhead
257246 power or communications line installed by the grantee on the
258247 property at the request of the landowner .
259248 B. The agreement shall provide that, at the request of the
260249 landowner, the grantee shall:
261250 1. Clear, clean, and remove each road constructed by the
262251 grantee on the property; and
263252 2. Ensure that each hole or cavity created in the ground by the
264253 removal is filled with soil of the same type or a similar type as
265254 the predominant soil found on the property.
266255 C. The agreement shall provide that, at the request of the
267256 landowner, if reasonable, the grantee shall:
268257 1. Remove from the property all rocks over twelve (12) inches
269258 in diameter excavated during the decommissioning or removal process;
270259 2. Return the property to a tillable state using scarification,
271260 V-rip, or disc methods, as appropriate; and
272261 3. Ensure that:
262+a. each hole or cavity created in the ground by the
263+removal is filled with soil of the same type or a
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300-a. each hole or cavity created in the ground by the
301-removal is filled with soil of the same type or a
302290 similar type as the predominant soil found on the
303291 property, and
304292 b. the surface is returned as near as reasonably possible
305293 to the same condition as before the grantee dug holes
306294 or cavities, including by reseeding pastureland with
307295 native grasses prescribed by an appropriate
308296 governmental agency, if any. Noninvasive grasses
309297 shall be allowed when reseeding native grasses isn't
310298 economically feasible.
311299 D. The landowner shall make a request under subsection B or C
312300 of this section not later than the one hundred eightieth day after
313301 the later of:
314302 1. The date on which the solar power facility is no longer
315303 capable of generating electricity in commercial quantities; or
316304 2. The date the landowner receives written notice of intent to
317305 decommission the solar power facility from the grantee.
318306 SECTION 6. NEW LAW A new section of law to be codified
319307 in the Oklahoma Statutes as Section 820.5 of Title 17, unless there
320308 is created a duplication in numbering, reads as follows:
321309 A. A solar power facility agreement shall provide that the
322310 grantee obtain and delive r to the landowner evidence of financial
323311 assurance that conforms to the requirements of this section to
312+secure the performance of the grantee 's obligation to remove the
313+grantee's solar power facilities located on the landowner 's property
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351-secure the performance of the grantee 's obligation to remove the
352-grantee's solar power facilities located on the landow ner's property
353340 as described by Section 5 of this act. Acceptable forms of
354341 financial assurance include a parent company guaranty with a minimum
355342 investment grade credit rating for the parent company issued by a
356343 major domestic credit rating agency, a letter of credit, a bond, or
357344 another form of financial assurance reasonably acceptable to the
358345 landowner.
359346 B. The amount of the financial assurance must be at least equal
360347 to the estimated amount by which the cost of removing the solar
361348 power facilities from the landowner 's property and restoring the
362349 property to as near as reasonably possible the condition of the
363350 property as of the date the agreement begins exceeds the salvage
364351 value of the solar power facilities, less any portion of the value
365352 of the solar power facilities pledged to secure outstandi ng debt.
366353 C. The agreement shall provide that:
367354 1. The estimated cost of removing the solar power facilities
368355 from the landowner's property and restoring the property to as near
369356 as reasonably possible the condition of the property as of the date
370357 the agreement begins and the estimated salvage value of the solar
371358 power facilities must be determined by an independent, third -party
372359 professional engineer licensed in this state;
373360 2. The grantee shall deliver to the landowner an updated
374361 estimate, prepared by an indep endent, third-party professional
362+engineer licensed in this state, of the cost of removal and the
363+salvage value:
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402-engineer licensed in this state, of the cost of removal and the
403-salvage value:
404390 a. on or before the tenth anniversary of the commercial
405391 operations date of the solar power facilities , and
406392 b. at least once every five (5) years after the
407393 commercial operations date of the solar power
408394 facilities for the remainder of the term of the
409395 agreement; and
410396 3. The grantee is responsible for ensuring that the amount of
411397 the financial assurance remains sufficient to cover the amount
412398 required by subsection B of this section, consistent with the
413399 estimates required by this subsection.
414400 D. The grantee is responsible for the costs of obtaining
415401 financial assurance described by this section and costs of
416402 determining the estimated removal costs and salvage va lue.
417403 E. The agreement must provide that the grantee shall deliver
418404 the financial assurance not later than the earlier of:
419405 1. The date the solar power facility agreement is terminated;
420406 or
421407 2. The twentieth anniversary of the commercial operations dat e
422408 of the solar power facilities located on the landowner 's leased
423409 property.
424410 F. For purposes of this section, "commercial operations date "
425411 means the date on which the solar power facilities are approved for
412+participation in market operations by a regional transm ission
413+organization and does not include the generation of electrical
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453-participation in market operations by a regional transmission
454-organization and does not include the generation of electrical
455440 energy or other operations conducted before that date for purposes
456441 of maintenance and testing.
457442 G. The grantee may not cancel financial assurance before the
458443 date the grantee has co mpleted the grantee's obligation to remove
459444 the grantee's solar power facilities located on the landowner 's
460445 property in the manner provided by this act, unless the grantee
461446 provides the landowner with replacement financial assurance at the
462447 time of or before the ca ncellation. In the event of a transfer of
463448 ownership of the grantee 's solar power facilities, the financial
464449 security provided by the grantee shall remain in place until the
465450 date evidence of financial security meeting the requirements of this
466451 act is provided to the landowner.
467452 SECTION 7. This act shall become effective November 1, 2025.
468-COMMITTEE REPORT BY: COMMITTEE ON ENERGY
469-April 17, 2025 - DO PASS
453+Passed the House of Representatives the 3rd day of March, 2025.
454+
455+
456+
457+
458+ Presiding Officer of the House
459+ of Representatives
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463+Passed the Senate the ___ day of __________, 2025.
464+
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467+
468+ Presiding Officer of the Senate