Decommissioning requirements

Ark. Code Ann. § 23-18-1408 — under Light, Heat, and Power Utilities.

Ark. Code Ann. § 23-18-1408

(a) An owner is responsible, at the owner's expense, for the proper decommissioning of a wind energy facility.

(b) (1) Before the start of construction of a wind energy facility, the applicant for a permit for the construction or operation of the wind energy facility or the wind energy facility expansion shall establish financial security in the amount of one hundred percent (100%) of the estimate of the total cost to decommission and remove the wind energy facility as determined by an independent consultant, selected and paid for by the applicant.(2) To establish financial security under subdivision (b)(1) of this section, the applicant shall file with the Arkansas Public Service Commission a surety bond, collateral bond, irrevocable letter of credit, parent guaranty, cash, cashier's check, certificate of deposit, bank joint custody receipt, or other approved negotiated instrument, or any combination of the items listed in this subdivision (b)(2), in the amount required by subdivision (b)(1) of this section.

(1) Before the start of construction of a wind energy facility, the applicant for a permit for the construction or operation of the wind energy facility or the wind energy facility expansion shall establish financial security in the amount of one hundred percent (100%) of the estimate of the total cost to decommission and remove the wind energy facility as determined by an independent consultant, selected and paid for by the applicant.

(2) To establish financial security under subdivision (b)(1) of this section, the applicant shall file with the Arkansas Public Service Commission a surety bond, collateral bond, irrevocable letter of credit, parent guaranty, cash, cashier's check, certificate of deposit, bank joint custody receipt, or other approved negotiated instrument, or any combination of the items listed in this subdivision (b)(2), in the amount required by subdivision (b)(1) of this section.

(c) A wind energy facility shall be decommissioned or removed if:(1) A wind turbine of a wind energy facility ceases to generate electricity for one hundred eighty (180) continuous days, unless:(A) The termination of electricity was mandated by state or federal law; or(B) (i) As authorized by the commission.(ii) Two (2) extensions may be allowed by the commission for one-hundred-eighty-day periods at a time if the wind energy facility continues to be maintained in proper working order; or(2) (A) Any wind turbine or group of wind turbines of a wind energy facility violates the noise level restrictions under § 23-18-1406(c)(1), unless the wind turbine or group of wind turbines is brought into compliance within one hundred eighty (180) days of the violation.(B) One (1) extension under subdivision (c)(2)(A) of this section is permitted.

(1) A wind turbine of a wind energy facility ceases to generate electricity for one hundred eighty (180) continuous days, unless:(A) The termination of electricity was mandated by state or federal law; or(B) (i) As authorized by the commission.(ii) Two (2) extensions may be allowed by the commission for one-hundred-eighty-day periods at a time if the wind energy facility continues to be maintained in proper working order; or

(A) The termination of electricity was mandated by state or federal law; or

(B) (i) As authorized by the commission.(ii) Two (2) extensions may be allowed by the commission for one-hundred-eighty-day periods at a time if the wind energy facility continues to be maintained in proper working order; or

(i) As authorized by the commission.

(ii) Two (2) extensions may be allowed by the commission for one-hundred-eighty-day periods at a time if the wind energy facility continues to be maintained in proper working order; or

(2) (A) Any wind turbine or group of wind turbines of a wind energy facility violates the noise level restrictions under § 23-18-1406(c)(1), unless the wind turbine or group of wind turbines is brought into compliance within one hundred eighty (180) days of the violation.(B) One (1) extension under subdivision (c)(2)(A) of this section is permitted.

(A) Any wind turbine or group of wind turbines of a wind energy facility violates the noise level restrictions under § 23-18-1406(c)(1), unless the wind turbine or group of wind turbines is brought into compliance within one hundred eighty (180) days of the violation.

(B) One (1) extension under subdivision (c)(2)(A) of this section is permitted.

(d) Within twelve (12) months following the decommissioning of a wind energy facility or a wind energy facility expansion, the property shall be restored to its original condition before commencement of activities on the site.

(e) Not less than one (1) time every five (5) years following the issuance of the permit by the commission, the commission may require the owner to:(1) Update the estimated costs of decommissioning and removal;(2) File the new estimate with the commission; and(3) Provide a surety bond, collateral bond, irrevocable letter of credit, parent guaranty, cash, cashier's check, certificate of deposit, bank joint custody receipt, or other approved negotiated instrument, or any combination of the items listed in this subdivision (e)(3), in the updated amount.

(1) Update the estimated costs of decommissioning and removal;

(2) File the new estimate with the commission; and

(3) Provide a surety bond, collateral bond, irrevocable letter of credit, parent guaranty, cash, cashier's check, certificate of deposit, bank joint custody receipt, or other approved negotiated instrument, or any combination of the items listed in this subdivision (e)(3), in the updated amount.

(f) Proper decommissioning of a wind energy facility shall include:(1) Removal of wind turbines, towers, buildings, cabling, electrical components, foundations, and any other associated facilities, to a depth of forty-eight (48) inches below grade in the ground; and(2) (A) Except as provided in subdivision (f)(2)(B) of this section, disturbed earth being graded and reseeded or otherwise restored to substantially the same physical condition as it existed before the construction of the wind energy facility by the owner.(B) Replacement of trees that may have been removed during construction is not required.

(1) Removal of wind turbines, towers, buildings, cabling, electrical components, foundations, and any other associated facilities, to a depth of forty-eight (48) inches below grade in the ground; and

(2) (A) Except as provided in subdivision (f)(2)(B) of this section, disturbed earth being graded and reseeded or otherwise restored to substantially the same physical condition as it existed before the construction of the wind energy facility by the owner.(B) Replacement of trees that may have been removed during construction is not required.

(A) Except as provided in subdivision (f)(2)(B) of this section, disturbed earth being graded and reseeded or otherwise restored to substantially the same physical condition as it existed before the construction of the wind energy facility by the owner.

(B) Replacement of trees that may have been removed during construction is not required.

(g) (1) Decommissioning of a wind energy facility or individual pieces of commercial wind energy equipment shall be completed by the owner within twelve (12) months after:(A) Abandonment;(B) The end of the useful life of the commercial wind energy equipment in the wind energy facility; or(C) Receipt of a notice to decommission or remove under subsection (c) of this section.(2) If the owner fails to complete the decommissioning within the period prescribed under subdivision (g)(1) of this section, the commission shall take such measures as are necessary to complete the decommissioning.

(1) Decommissioning of a wind energy facility or individual pieces of commercial wind energy equipment shall be completed by the owner within twelve (12) months after:(A) Abandonment;(B) The end of the useful life of the commercial wind energy equipment in the wind energy facility; or(C) Receipt of a notice to decommission or remove under subsection (c) of this section.

(A) Abandonment;

(B) The end of the useful life of the commercial wind energy equipment in the wind energy facility; or

(C) Receipt of a notice to decommission or remove under subsection (c) of this section.

(2) If the owner fails to complete the decommissioning within the period prescribed under subdivision (g)(1) of this section, the commission shall take such measures as are necessary to complete the decommissioning.

(h) A lease or other agreement between a landowner and an owner may contain provisions for decommissioning that are more restrictive than those provided under this section.