4.14 REVISED 4,14
RE-SOLUTIONSIZONINGWortliem Gateway Renewables—Solar Decommissioning Plan—ACCEPT-3-18-2043
RESOLUTION ACCEPTING SOLAR DECOMMISSIONING PLAN,
AGREEMENT AND SAND FORM FOR NORTHERN GATEWAY
RENEWABLES ASSOCIATED WITH
TAX MAP PARCEL NO: 297.1.5-1-1
RESOLUTION NO.. ,2024
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED JBY:
WHEREAS, Northern Gateway Renewables, 1;XC (Northern, Gateway) proposes
developing a five megawatt AC solar farm facility at property located at 443 Queensbury Avenue
and identified as Tax Map Parcel No. 297.15-1-1 (the"Project"), and
WHEREAS, the Planning Board considered applications for the Project,which application
materials included a Decommissioning Plan, and at its meeting of October 18, 2022, the
Queensbury Planning Board approved Site Plan 56-2022 and Special Use Permit 5-2022, and
WHEREAS, during Planning Board review, the Planning Board provided all application
materials, including the Decorninissioning Plan, to the Town Designated Engineer for review and
comment, and
WHEREAS, before approving the Site Play and the Special Use Permit, the Town
Designated Engineer provided a final letter indicating that it had no further comments on the
Project indicating the application satisfied requirements under the Town Zoning Code, and
WHEREAS, Queensbury Town Code Chapter 179 "Zoning" §179-10-070 DD requires
that Decommissioning Plans be approved by the Town Board, and
WHEREAS, the following documents are presented at this meeting: 1) Decommissioning
Agreement, 2) Decommissioning Plan, and 4) Decommissioning Bond,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby approves the Decommissioning
Plan, Decommissioning Agreement and Decommissioning Bond for Northern Gateway
Renewables associated with Tax Map Parcel No: 2 7,15-1-1 as delineated in the preambles of this
Resolution and in substantially the same form as presented at this meeting, and
BE IT FURTHER,
RESOLVED, that the Town Supervisor is hereby authorized to execute the
Decommissioning Agreement and Bond in forms acceptable to the Town Supervisor and Town.
Counsel, and
BE IT FURTHER,
RESOLVED, that the Town Board further authorizes and directs the Town, Supervisor, Town
Budget Officer, Town Clerk, Town Zoning Administrator, Planner and/or Town Counsel to take
any other actions necessary to effectuate the intent and provisions of this Resolution,
Duty adapted dais 18�'day of]March, 2024,by the Following vote:
AYES:
NOES:
ABSENT:
DECOMMISSIONING AGREEMENT
This DECOMMISSIONING AGREEMENT (the "Agreement") dated as of
2024 (the "Effective bate") is made by and among the Town of
Queensbury, a municipal corporation duly organized and existing under the laws of
New York (the "Town"), with offices at 742 Bay Road, Queensbury, NY 12804 and
Northern Gateway Renewables, LLC, with offices at 101 Summer Street, 2nd Floor,
Boston, Massachusetts, 02110 (the "Owner").
WHEREAS, Owner intends to permit, construct, operate and maintain solar
energy generating and storage facilities with an aggregate size of approximately 5.0
Megawatts of alternating-current nameplate capacity that will generate electric
power (the "Project") on a property located at 443 Queensbury Avenue, Town of
Queensbury, Warren County, New York and identified as Tax Map Parcel No.
297.15-1-1 (the "Property"), such parcel being located within the Town (the then
current owner(s) of the Property are referred to under this Agreement as the
"Landowner"), and
WHEREAS, the Owner submitted a ❑ecommissioning Cost Estimate and Plan
(the "Decommissioning Plan") to the Town Planning Board; and
WHEREAS, the Town Planning Board approved the Decommissioning Man as
part of its Resolution Granting Site Plan (55-2022), Special Use Permit (5-2022)
Approval and Freshwater Wetlands (11-2022) dated October 18, 2022; and
WHEREAS, Owner has agreed to provide, or cause to be provided, a
Decommissioning Security(as defined below) providing the Town with access to funds
for the Decommissioning (as defined below) of the Project on the terms and conditions
set forth under this Agreement; and
WHEREAS, the Queensbury Town Board has approved by Resolution the
Decommissioning Plan, this Decommissioning Agreement and the Decommissioning
Bond; and
WHEREAS, the Parties now desire to enter into this Agreement and to agree
upon terms and conditions of the Decommissioning Security, including a
Decommissioning Bond, provided to the Town for the purpose of Decommissioning
the Project;
NOW, THEREFORE, in consideration of the promises and for other good and
valuable consideration, the receipt and sufficiency. of which are hereby
acknowledged, the Parties agree as follows;
1. Prior to Owner applying for building permit(s) from the Town, the Owner
shall post a decommissioning security (the "Decommissioning Security") as, in its
discretion, either as a cash escrow deposit in the amount of $283,500 or a bond in
the form attached hereto as Exhibit A ("Decommissioning Band") and approved by
the Town Board and in the amount of$283,500, consistent with its Decommissioning
Plan, which the owner submitted to the Town and which the Town approved. A copy
of the Decommissioning Plan is attached as Exhibit 8 and is incorporated by
reference herein with full force and effect, and is herein referred to as the
"Decommissioning Plan".
a. Should the Owner provide the Decommissioning Security as a cash
escrow, Owner shall deliver $283,500 to the Town Budget Officer
as "Escrow Agent" to be held in escrow in an account ("Escrow
Account") opened in the name of the Town with the Town of
Queensbury having sole signatory authority on the account, The
Escrow Agent shall establish the Escrow Account and deposit the
escrow funds therein. Such escrow funds shall not be utilized for
any purpose other than Decommissioning the Project in accordance
with this Agreement.
b. Should the Owner provide the Decommissioning Security as a cash
escrow, the Owner, at its sole discretion, may provide a
Decommissioning Bond in the form attached hereto as Exhibit A as
replacement security. If a Decommissioning Bond is provided to the
Town as a replacement, the cash escrow must be returned to the
Owner within 10 days of providing the Decommissioning Bond in
acceptable form to the Town.
2. Upon posting of a Decommissioning Bond as the Decommissioning
Security, the Owner will provide the Town a copy of the related Decommissioning
Bond policy with contact information for the financial provider. Owner or its successor
in title to the Project shall be responsible for renewing such Decommissioning Bond
until the Project is decommissioned as required by the Decommissioning Plan.
3. The Parties agree that the Decommissioning Security shall be used
solely to pay for any Decommissioning costs of the Project pursuant to the terms and
conditions of this Agreement. Owner shall have no further payment obligations in
connection with Decommissioning during the operation of the Project provided that
Owner complies with posting the Decommissioning Security in accordance with this
Agreement. Nonetheless, in the event the Town undertakes decommissioning and the
necessary and reasonable Decommissioning costs exceed the amount covered by the
Decommissioning Security, Owner or its successor in title to this Project shall be
responsible for any such excess costs, provided such excess costs are not as a result
of the Town using any amount covered by the Decommissioning Security for any
reason other than to pay for Decommissioning costs of the Project. The Town will have
no right to use any amount from the Decommissioning Security for any reason other
than to pay for Decommissioning costs related to the Project pursuant to the terms and
conditions of this Agreement, and any breach by the Town of the foregoing will be
deemed a default under this Agreement.
4. Decommissioning as used in this Agreement shall mean the removal and
disposal, in accordance with the approved Decommissioning Plan, of the Project and the
reasonable restoration of the parcel of land on which the Project is built to either of the
following, at the Owner's and the Landowner's option ("Decommissioning"). (i) the
condition such lands were in prior to the development, construction and operation of the
Project, including restoration, regrading, and reseeding, or(ii) the condition designed by
Owner or its successor and as agreed upon with the Landowner and the Town. coats of
Decommissioning under this Agreement include labor, disposal costs, professional
services, and any other costs reasonably associated with such restoration.
2
5. The Parties agree that the Decommissioning process of the Project may
commence by Owner for the following reasons, (each, a "Triggering Event"):
(a)Owner provides written notice to the Town of
its intent to retire or decommission the Project
(the"Owner Decommissioning Notice");
(b)The Project "ceases to be operational" (as
defined below) in its entirety for more than
twelve (12) consecutive months; or
(c)Failure to keep in effect the
Decommissioning Bond meeting the
requirements of this Agreement (including
escalation in amount pursuant to
paragraphs 1 and 2 as required under this
Agreement.
6. In the event the Owner fails to complete Decommissioning of the Project
in accordance with the Decommissioning Plan within Six (6) months after any
Triggering Event, then the Town may commence Decommissioning of the Project
through use of the Decommissioning Security after providing Owner written notice of
the same. Upon the Town providing such written notice to the Owner, and in the event
the form of Decommissioning Security is a cash escrow held pursuant to Paragraph
1(a), the Escrow Agent shall release monies in the Escrow Account for the Town's
use in Decommissioning the Project. For the purposes of this Agreement, "ceases to
be operational" shall mean that the Project is no longer generating any electricity,
other than due to repairs to the Project or causes beyond the reasonable control of
Owner. Any one of the Triggering Events outlined in Section 5 shall be deemed a
Triggering Event based upon which the Town shall have the right to demand
Decommissioning pursuant to the terms and conditions of this Agreement. In such an
instance, all such costs for ❑ecommissioning incurred by the Town must be
reasonable and necessary. In the event the Town has the right to perform the
Decommissioning itself pursuant to the terms and conditions set forth in Sections 3,
4 and 5 above, Owner (or its successors or assigns) agrees to give the Town a right
of reasonable access, to the extent that Owner has the right to give such access, on
Landowner's property to decommission the Project and shall defend, hold harmless,
and indemnify the Town for any and all claims, liability, loss, or damage arising out of
its exercise of its right to Decommission the Project as provided for herein, except in
cases of negligence or willful misconduct by the Town or any of its employees,
contractors, or agents. In the event the Town undertakes the Decommissioning as
provided for in this Agreement on its own, consistent with the terms and conditions of
this Agreement and the approved Decommissioning Plan, it is entitled to recover from
Owner reasonable and necessary costs it incurs in Decommissioning the Project
through any and all means permitted under this Agreement and/or State and Local
Laws if such costs exceed the amount of the Decommissioning Security, including
costs the Town may incur to obtain access to the site to Decommission the Project.
7. Upon Decommissioning of the Project in accordance with the approved
Decommissioning Plan, the Owner shall have no further obligation to the Town and
3
any excess Decommissioning Security that was not required for decommissioning of
the Project will be promptly returned and released to the Owner and any and all excess
Escrow Funds held pursuant to Paragraph 1(a) most be returned to Owner within 30
business days.
8. This Agreement may not be amended or modified except by written
instrument signed and delivered by the Parties. This Agreement is binding upon and
shall inure to the benefit of the Parties and their respective administrators, successors
and assigns, including a successor Owner of the Project.
9. Owner shall provide the Town with proof that, if applicable, it either
carries sufficient Workers' Compensation insurance coverage for any of its
employees, or employees of any of its affiliates, in New York who are working on the
Project from time to time, or that it is exempt from such requirement.
10. The Parties agree to execute and deliver any additional documents or
take any further action as reasonably requested by another Party to effectuate the
purpose of this Agreement.
11. The Parties agree that this Agreement shall be construed and enforced
in accordance with and governed by the laws of New York without regard for conflict
of laws.
12. This Agreement may be executed through separate signature pages or
in any number of counterparts, and each of such counterparts shall, for all purposes,
constitute one agreement binding on all parties,
13. Any and all notices required to be sent by the parties shall be addressed
as follows: By certified mail or mail courier service
To the Town:
Town of Queensbury
ATTN: Town Supervisor
742 Bay Road
Queensbury, New York 12804
To the Owner:
Northern Gateway Renewables, LLC
101 Summer Street, 2nd Floor, Boston,
Massachusetts, 02110
IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, have duly executed this Agreement as of the date first written above.
[Signature Page Follows]
4
TOWN:
By.
Name: John F. Strough
Title: Town Supervisor
OWNER;
Northern Gateway Renewabies, LLC
By.
Name:
Title:
IIMRDS1companylCPenWOUE ENS 0URYWLAMNOrthem GstewaylNorthem Gateway-Oecom Agreement-FINAL.doex
5
Exhibit A
Decommissioning Bond Form
Brand No. _m
DECOMMISSIONING BOND
KNOW ALL BY THESE PRESENTS, That we, Northern Gateway Renewables, LLC as
Principal, and , , an corporation duly authorized
under the laws of the State of , as Surety, are held and firmly bound unto the
Town of Queensbury, New York, as Obligee in the maximum aggregate penal sum of Two
Hundred Eighty-three Thousand Five Hundred and 001100 Dollars ($283,500.00), lawful
money of the United States of America, to be paid to the said Obligee, successors or assigns;
for which payment, well and truly to be made, we bind ourselves, our heirs, executors,
successors, administrators and assigns,jointly and severally, firmly by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS, Principal intends to place solar panels and related facilities on property located on
Queensbury Avenue and 443 Queensbury Avenue, Town of Queensbury, Now York and
identified as Tax Map Parcel No. 297.15-1-1 (the "Project");
WHEREAS, Principal has obtained approvals for the Project from Obligee's Planning Board and
the decommissioning of the solar facilities is a requirement of the Planning Board approvals;
and
WHEREAS, the Principal and Obligee have entered into an agreement whereby principal
agrees to complete decommissioning of the Project In accordance with the Decommissioning
Agreement between Principal and Obligee, which agreement, dated 2.02_(the
"Agreement" or"Decommissioning Agreement") is hereby referred to and made a part hereof;
and
WHEREAS, said Principal is required under the terms of said agreement to furnish a bond for
the faithful performance of the decommissioning referred to in said Agreement.
NOW, THEREFORE, the condition of this obligation is such that if the above bounded Principal,
his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to
and abide by, and well and truly keep and perform the decommissioning provisions in the said
agreement and any alteration thereof made as therein provided, on his or their part, to be kept
and performed at the time and in the manner therein specified, and in all respects according to
their true intent and meaning, and shall indemnify and save harmless the Obligee, Its officers,
agents and employees, as therein stipulated, then this obligation shall become null and void;
otherwise it shall be and remain in full force and effect.
Provided further, that if the Principal fails to respond to the Obligee's notice of default or fails to
perform its Decommissioning responsibilities as outlined in sold Agreement the Surety shall
promptly and at the Surety's election and expense take one of the following actions:
1.Arrange for the Principal, with consent of the Obligee, to perform and complete the
Decommissioning; or
2. Undertake to perform and complete the Decommissioning itself, through its agents or
through independent contractors; or
Bond No.
3. Waive its right to perform the Decommissioning and forfeit the full bond penalty to the
Obligee.
The surety may cancel this bond at any time by giving the Obligee sixty (60) days written notice
of its desire to be relieved of Liability. Should the Principal fail to provide a replacement bond or
alternate financial assurance acceptable to the Obligee within thirty (30) days of the receipt by
the Obligee of the Notice of Cancellation, the Surety may choose to reinstate this Bond,
otherwise the Surety will be in default and shall forfeit the full Penal Sum of this Bond to
Obligee_
Any notice provided to Obligee shall be provided as required under the Decommissioning
Agreement.
Nonpayment of the premiums associated with this Bond will not invalidate this Bond nor shall
Obligee be obligated for the payment thereof.
The liability of the Surety under this Bond and all continuation certificates issued in connection
therewith shall not be cumulative and shall in no event exceed the amount as set forth in this
Bond or in any additions, riders, or endorsements properly issued by the Surety as supplements
thereto.
IN WITNESS WHEREOF, the above bounded Principal and Surety have hereunto signed and
sealed this bond effective this day of 20,,,,,_,.
Witness/Attest: Principal
Northern Gateway Renewables, LLC
By.
........................ .. ......... . ......... ... . ... . .
Witness
Witness/Attest: Surety
By:
Witness
IIMRDSloompanylClientslQU6t:NSBURYkSOLAR1Northern Qateway0ecomm Bond_FINALDOCx
Bond No.
APPENDIX A
Decommissioning Agreement and Decommissioning Plan
Exhibit 8
Decommissioning Plan
xo
oAmp
NExAMP-DECOMMISSIONING PLAN FOR
NORTHERN GATEWAY RENEWABLES, LLC&
SOUTHERN GATEWAY RENEWABLES, LLC
February 2024 W V4
Northern Gateway Renewables, LLC & Southern Gateway Renewables, LLC, as provided by
Nexamp, has prepared this decommissioning Platy (plan) for its proposed solar photovoltaic
facilities (Facilities) to be constructed on County property adjacent to the Flloyd Bennet Memorial
Airport. The Plan describes the process for decommissioning the Facility in accordance
with state requirements and the Town of Queensbury renewable Energy Systems and
Facilities Regulations.
Northern Gateway Renewables, LLC & Southern Gateway Renewables shall be responsible for
dismantling and removing the solar facility and reclaiming the site in accordance with this
Decommissioning Plan, The Decommissioning Plan will be implemented at the end of the
leasing period or as required by the Town of Queensbury Renewable Energy Systems and
Facilities Regulations, Section DD. Solar Farms (12), the removal of the facility shall occur if
the solar farm has not been in active and continuous service for a period of one year. The
owner or operator shall remove the facility within six months of the date of expiration of the
one-year period at its own expense.
Facility description
Northern Gateway: 443 Queensbury Ave SHL 297.15-1-1 E
Southern Gateway: West Queensbury Ave I SBL 303.8-1-1 and 303.12-1-3
The Facilities will consist of two 5-MW(AC)capacity solar power-generating array secured within a chain
linked fence,accessed through a locked gate.The Facility will include the following site features:
• PV Modules, inverter(s),and transformer(filled with biodegradable mineral oil)
* Combiner boxes and switchgear
+ Concrete pads) ,
+ Screw or driven plies and racking to support the PV modules
+ DC and AC wiring
+ Pad mounted equipment
+ A gravel access drive
6 Exterior security fencing
+ A security gate at the entrance to the array area
Decommissioning Plan
The Facility will be decommissioned by completing the following major steps: Dismantlement,
Demolition,and Disposal or Recycle; and Site Stabilization, as further described below,
Dismantlement, Demolition,and Disposal or Recycle
A significant portion of the components that comprise the Facility will include recyclable or re-saleable
components, including copper,aluminum,galvanized steel,and modules. Due to their re-sale monetary
new' �s;
value, these components will be dismantled, disassembled, and recycled rather than being demolished
and disposed of.
Following coordination with National Grid ("NGRID") regarding timing and required procedures for
disconnecting the Facility from the utility distribution network, all electrical connections to the system
will be disconnected and all connections will be tested locally to confirm that no electric current is
running through them before proceeding.All electrical connections to the PV modules will be severed at
each module, and the modules will then be removed from their framework by cutting or dismantling the
connections to the supports. Modules will be removed and sold to a purchaser or recycled. In the event
of a total fracture of any modules, the interior materials are silicon-based and disposal of these
materials at a landfill will be permissible.
The PV mounting system framework will be dismantled and recycled. The metal piles will be removed
from their approximated depth of four feet and recycled. All other associated structures will be
demolished and removed from the site for recycling or disposal. This will include the site fence and
gates,which will likely be reclaimed or recycled.
Grade slabs will be broken and removed to a depth of three feet below grade,and clean concrete will be
crushed and disposed of off-site or recycled(reused either on-or off-site).The portion of the gravel access
road created specifically for the project, namely that portion within the perimeter fence surrounding the
PV modules,will be removed as well.
Above ground utility poles or ground mounted equipment owned by Northern& Southern Gateway, LLC
will be completely removed and disposed of off-site In accordance with utility best practices. Any
overhead wires will be removed from the Facility and will terminate at the utility owned (NGRID)
connections inside the property. The access road will remain in place and NGRiD will be responsible for
dismantling those overhead wires, poles, or ground mounted equipment under its ownership.
Coordination with NGRID personnel will be conducted to facilitate NGRIi] removal of any poles and
overhead wires located on the site.
A final site walkthrough will be conducted to remove debris and/or trash generated during the
decommissioning process and will include removal and proper disposal of any debris that may have been
wind-blown to areas outside the immediate footprint of the facility being removed.
Site Stabilization
The areas of the Facility that are disturbed during decommissioning will be re-graded to establish a
uniform slope and stabilized via hydroseeding with a ground treatment approved by the Zoning
Officer,
Permitting ate uirements
Given the size and location of the Facilities, approvals will be obtained prior to initiation of the
decommissioning process. Table 1 provides a summary of the expected approvals if the decommissioning
nexnmp
were to take place in May 2022. Noting that the decommissioning is expected to occur at a much later
date, the permitting requirements listed in the table below will be reviewed at that time and updated
based on then current local,state, and federal regulations.
Table 1. Current Permitting Requirements for Decommissioning
' n
State Pollutant Discharge New York State Ground disturbance of greater than 1
Elimination System (SPDES) Department of acre with discharge to wetlands or
General Permit for Discharges Environmental water bodies.Requires preparation of a
from Construction Activity Conservation (NYSDEC) Stormwater Pollution Prevention Plan,
including erosion and sedimentation
controls.
Building Permit Warren County& A Building Permit must be obtained for
Town of Oueensbury any construction, alteration, repair,
demolition,or change to the use or
occupancy of a building.
......... ....... ............... ........... . ...__... .........._.
Prior to the decommissioning phase, the surface water conditions, including stormwater management
areas and wetlands, will be reassessed. Depending on the results of this assessment, the appropriate
stormwater construction and wetland disturbance permits will be obtained. A Stormwater Pollution
Prevention Plan (SWPPP)will be prepared describing the required protections needed which comply with
the applicable federal,state, and local regulations at that time.
Site Restoration Plan
Due to the long-life expectancy of these facilities, this decommissioning plant and site restoration plan
will be updated as necessary to Incorporate changes in best practice, technologies, and site restoration
methods when decommissioning is closer to commencing.
Decommissioning activities such as the removal of facility components, Including below-grade
foundations and cables could result in impacts to the land similar to those during the construction phase
of the facility. As previously mentioned, It is anticipated that soil erosion and Stormwater pollution and
prevention will be employed.These protective measures are expected to remain in place until the site is
restored, and ground cover is stabilized.
Once decommissioning activities are completed,site restoration activities will commence. During this
phase of work,ground disturbance will be minimized to the extent practical to allow the site to be re-
stored to original land use. soil that is stockpiled during decommissioning activities will be re-used across
ne>,-o,.(;mp
the site during restoration activities. Except minor trenching and grading during construction, it is antici-
pated that areas occupied by the solar arrays will remain in their undisturbed natural state of vegetation,
Any area disturbed during decommissioning will be reseeded.The exact seed mix and planting require-
ments will be discussed with landowner at the time of decommissioning.
After the removal of the panels and racking,decommissioning of the access road will begin. Unless the
County specifically requests the access road to remain in-place, it is expected that gravel road will be
removed.After removal,the ground surface will be lightly re-graded to blend and match the surrounding
elevations.The near-surface soil will be lightly re-compacted to minimize the potential for erosion and
runoff,as well as placement of topsoil and seed to allow growth. Drainage infrastructure adjacent to
roadways will be removed as well as other man-made features constructed to promote drainage.The
removal of these drainage features will be completed in accordance with the New York State Standards
and Specifications for Erosion and Sediment Control.
If the stormwater management areas are not considered wetlands during the surface water assessment;
the overflow infrastructure will be removed.The ponds will be dewatered,excess sediments will be re-
moved, and the ponds will be filled to grade to restore the predevelopment site conditions and drainage
pathways_ in the event the stormwater management areas are considered wetlands,they will be pro-
tected during the decommissioning process In a method which complies with federal,state,and local
regulations at that time
Any access into wetland areas will be minimized to the greatest extent practical. In areas where access
Into wetland areas is unavoidable,timber mats will be laid and low pressure,tracked equipment will be
utilized to remove Infrastructure, unless more practicable, less invasive methods exist at the time of
decommissioning.Additionally,decommissioning work within wetland areas, if needed,will take place
during dry or frozen ground conditions to the greatest extent practical.Any temporarily disturbed
wetland areas will be mulched and reseeded with a wetland specific seed mix which will be determined
prior to the decommissioning phase and deemed suitable at the time for the site-specific conditions.
Upland areas will be seeded with a seed mixture approved by the Zoning Officer.
All disturbed areas during decommissioning activities will be restored to pre-construction conditions and
may be used for agricultural purposes after the completion of the decommissioning activities, if an area
disturbed by the solar facility is not planned to be used for agricultural purposes,this area will be re-
seeded using a native seed mix.This use of a native seed mix will promote the natural succession and
return of the project to its original site conditions
ne'.%x.o.Amp
NORTHERN GATEWAY RENEWABLES, LLC&SOUTHERN GATEWAY RENEWABLES, LLC
DECOMMISSIONING!SURETY
Consistent with the approach It has taken in other communities, prior to the issuance of a building permit
Nexamp shall provide a decommissioning surety in the amount of JZgAL500 for each project.This surety
will provide the requisite capital for solar project decommissioning in the unlikely event that Nexamp is
unable to meet its contractual obligations for solar project removal and restoration. In addition to the
decommissioning cost, Nexamp included a S%contingency and allowance for associated legal costs.
Below is a summary of the analysis:
gl
Cecommissioning(35,000$/MW) $ 175,000
Contingency(5%) $8,750
f....,..... I
Legal (3%) $ 5,250
Decommissioning Subtotal $ 189,000
Total Decommissioning Costs (150%) $ 283,500
DECOMMISSIONING ESTIMATE 5MW AC
Category LABOR DISPOSAL TOTAL
�w �.._., ..... Decomm Decomm Decomm
.,.,,. .,-,_.,m.,_......�,�..., Prevailing Wages ..,.�...,,,�.,�...„ ..,.,....�....,.y....
MOC]'U $ 32,000 $ 32,000
MODULE MOUNTING � � $BOS
IPM ENT .. .., ,. � $ 44,059)
,059 ,,M....� .
INVERTER, $ 6,203
C AS $ 2,134 $ IL,134)
ELECTRICAL»-'MATERIAL �., '. ...-ARRAY wiring„materials "- M M 14,657 $�wmm- M0,432) $ 4,225
-AC wiring materials
-MV under round conductor&equipment . . .y...,_.,
- MV overhead conductor& equipment $ 3,632 Tmm mM- u
-ARRAY wiring installation (incl u_ cond labor)
ADC equipment&wiringinstallation $ 11,070 $ 11,070
-AG equipment&wirin installation(incl u. cond)
-Medium Voltage installation
-General Conditions $ 3,0 21 $ 23,021
INSTALLATION
-Racking
$ 34,529 $ 34,529
,—,--Mounting system foundation $ 42.864 m .., 42,864
Modules $ 38,956 $ 38,956
SITE CONSTRUCTION
Trenching&directional burin $ mm7,624 ..M,..„�7,624
-Access Road + Seeding/M droseedin 25,000 $ 25 000
-E ui ment& Storage Pads $ 2,301 ._,. ,.,. $ 2,301
TOTAL M __w W ,.$, H.. .. 203,654 $ 27 5301 $ w 176,124
Decommissing So
Panel
Information for local governments and landowners on the
decommissioning of lame-scale solar panel systems.
..
Section Contents
1. Abandonment and Decommissioning ... ........152
1.1 Decommissioning Plans. . . . .. . . . . . . . . . . . .. . 152
1.2 Estimated Cast of Decommissioning. . . . . . . . . 152
2. Ensuring Decommissioning . ..... ... ....... ....153
2.1 Financial mechanisms . . .. . . . . . . . . . . . . . . . . . .154
2.2 Nonfinancial mechanisms . . . . . . . . .. . . . . . . . . 155
2.3 Examples of abandonment and
decommissioning provisions. . . . . . . . . . . . . . . . . . . . . 155
2.4 Checklist for Decommissioning Plans. . . . .. . . 155
151
Overview
We provide information for local governments and landowners on the
decommissioning of large-scale solar panel systems through the topics
of decommissioning plans and costs and financial and non-financial
mechanisms in land-lease agreements.
As Kcal governments develop solar regulations and landowners negotiate
land leases, it is important to understand the options for decommissioning
solar panel systerns and restoring project sites to their original status.
From a land use perspective,solar panel systems are generally considered large-scale when they Constitute the
primary use of the land and can range from less than one acre In urban areas to 10 or more acres in rural areas.
Depending on where they are sited,large-scale solar projects can have habitat,farmland, and aesthetic impacts.
As a result, large-scale systems must orten adhere to specific development standards.
1 . Abandonment and Decommissioning
Abandonment occurs when a solar array Is inactive for a certain period of time,
•Abandonment requires that solar panel systerns bo removed after a specified period of time if they are no longer In
use. Local governments establish timeframes for the removal of abandoned systerns based on aesthetics,system size
and cornplexlty, and location. For example,the Town of Geneva, NY,defines a solar panPI system as abandoned if
Construction has not started within 18 months of site plan approval,or if the completed system has been nonoperational
for more than one year." i
• once a local government determines a solar panel system is abandoned and has provided thirty(30)days prior written
notice to the owner It can take enforcement actions, including imposing civil penalties/fines,and removing the system
and imposing a lien on the property to recover associated costs. j
Decommissioning is the process for removing an abandoned solar panel system and remediating the land.
•When describing requirements for decommissioning sites,it Is possible to specifically require the removal of
infrastructure,disposal of any cornponon#,, and the stabilization and re-vegetation of the site.
1.1 Decommissioning Plains
Local cgovornments may require having a plan In place to remove solar panel systems at the end of their Iifecycle,which
is typically 20-40 years.A decommissioning plan outlines required steps to remove the system, dispose of or recycle its
components,and restore the land to its original state. flans may also Include an estimated cost schedule and a form of
decommissioning socurity(see Table 1),
7owr7❑f Gencrvn.NY.CODE§
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1.2 Estimated Cost of Decommissioning
Given the potential costs of decomrnissioning and land reclamation, it is reasonable for landowners and loC81 governments
to proactively consider system removal guarantees.A licensed professlonal engineer, preferably with solar development
experience,Can estimate decommissioning costs,which vary across the United States, Decommissioning costs will vary
depending upon project size, location, and Complexity. Table 1 provides an estimate of potential decommissioning Costs
for a ground-rnounted 2-MW solar panel system. Plgures are based on estimates from the Massachusetts solar market.
Decornfnissioning costs for a New York solar Installat#on may differ. Some materials from solar Installations may be recycled,
reused, or even sold resulting in no costs or compensation.Consider allowing a periodic reevaluation of decommissioning
costs during the project's lifetime by a licensed professional engineer, as costs could decrease,and the required payment
should be reduced accordingly,
Table 9:Sample list of decominhssio Ling tasks and estimated costs
Tasks Estimated Cost($}
Remove Rack Wiring $2.459
Remove Panels $2,450
❑isrnantlo Racks $12,350
Remove Electrical Equipment $1,850
Breakup and Remove Concrete Pads or Ballasts $1,500
Remove Racks $7.800
Remove Cable $6,500
Remove Ground Screws and Power Poles $13,850
Remove Fence $4,950
Grading $4,000
Seed Disturbed Areas $250
Truck to Recycling Center $2,250
Current Total $60,200
Total After 20 Years(2.5%Inflation rate) $98,900
2 . Ensuring Decommissioning
Landowners and local governments can ensure appropriate decommissioning and reclamation by using financial and
regulatory mechanisms, However,these mechanisms come with tradeoffs. Including decommissioning costs in the upfront
price of solar projects increases overall project costs,which could discourage solar development.As a result,solar
developers are sometimes hesitant to provide or require financial surety for decommissioning costs.
It is also Important to note that many local governments choose to require a financial mechanism for decommissioning.Although
similar to telecommunications installations,there Is no specific authority to do so as part of a land use approval for solar projects
(soo Table 2). Therefore,a local government should consult their municipal attorney when evaluating financial mechanisms,
153
The various financial and regulatory mechanisms to decommission projects are detailed below.
Table 2,relevant Provisions of General City, Town, and Village Laws Relotirrcg to Municipal Authority to Require Conditions, Waivers,
and Financial MechOniSMS
z
Conditions 27-a (4) 274-a (4) 7-725-a (4)
Waivers 27�a (5) 274-a (5) 7-725-a(5)
Performance bond or other security 27-e(7) 274-a (7) 7-725-a(7)
Waivers 33(7) 277(7) 7-730(7)
Performance bond or other security 33(8) 277(9) 7-730 (9)
Conditions 27-b(4) 274-b(4) 7-725-b(4)
Waivers 27-b(5) 274-b(5) 7-725-b(5
Source Referenced dtotic,rrs moy be viewed using the NYS Laws of New York Online
Excerpts from these statutes ore also couoined within the"Guide to Plowing crud Zoning tows of New York State,"New York State OM5ion ofLocal
Governments Services,June 2411: to nlnnnin rmri lire !r 1,1f
1 Financial mechanisms
Decommissioning Provisions in Land-Lease Agreements. If a decommission plan Is required, public;or private landowners
should make sure a decommissioning clause Is Included In the Ianddease agreoment.This clause may depend on the
decommissioning preferences of the landowner and the developer,The clause could require the solar project developer
to remove all equipment and restore the, land to its original condition after the end of the contract,or after generation drops
below a certain level,or it could offer an option for the landowner to buy-out and continue to use the equlpment to genorate
electricity. The decommissioning clause should also address abandonment and the possible failure of the developer to
comply with the decommissioning plan.This clause could allow for the landowner to pay for removal of the system or pass
the costs to the developer.
Decommissioning Trusts or Escrow Accounts. Solar developers can establish a cash account or trust fund for
decommissioning purposes.The developer makes a series of payments during the project's lifecycle until the fund reaches
the ostimated cost of decommissioning. Landowners or thlyd-party flnanclal Institutions can rnanage these accounts, "terms on
individual payment amounts and frequency can be included in the land lease.
Removal or Surety Bonds.Solar developers can provido decommissioning security in the form of bonds to guarantee the
availability of funds for system removal. The bond amount equals the decommissioning and reclamation casts for the entire
system.The bond must remain valid until the decommissioning obligations have been met.Therefore,the band must be
renewed or replaced If necessary to account for any changes in they total decommissioning cost.
Letters of credit.A letter of credit Is a document Issued by a bank that assures landowners a payment up to a speci€led
amount,given that certain conditions have been met. In the case that the project developer fails to remove the}system,
the landowner can claim the specified amount to cover decommissioning costs.A letter of credit should clearly state the
conditions for payment, supporting documentation landowners must provide,and an expiration date. The document most be
continuously renewed or replaced to remain effective until obligations under the decommissioning plan are met.
154
2.2 Nonfinancial mechanisms
Local governments can establish nonfinancial decommissioning requirements as part of the law. Provisions for
decommissioning large-scale solar panel Systems are similar to those regulating telecommunications Installations, such as
cellular towers and arlwnnas.The fallowing options may be used separately or together.
•Abandonment and removal Clause. Local governments Can include in their zoning code an abandonment and removal
clause for solar panel systems,These cases effectively become zoning enforcement matters where project owners can
be mandatod to remove the equipment via the imposition of civil penalties and fines, and/or by imposing a lien on the
property to recover the associated costs.To be most effective,these* regulations should be very specific about the length
of time that constitutes abandonment. Establishing a timeframe for the removal of a solar panel system can be based on
system aesthotics,size, location,and complexity. Local governments should Include a high degree of specificity when
defining "removal"to avoid ambiguity and potential conflicts
•Special Permit Application.A local govemment may also mandate through its zoning code that a decommissioning plan be
submitted by the solar developer as part of a site plan or special permit application.Having such a plan in place allows the local
government,in cases of noncompliance,to place a lien on the property to pay for the costs of removal and remediation,
•Temporary Variance/Special Permit Process.As an alternative to requiring a financial mechanism as part of a land
use approval, local governrents could employ a temporary variance/special permit process(effectively a re-licensing
System). Under this system,the locality would issue a special perrnit or variance for the facility for a term of 20 or more
years;once expired (and if not renewed),the site would no longer be in compliance with local zoning, and the locality
could then use their regular zoning enforcement authority to require the removal of the facility.
2.3 Examples of abandonment and decommissioning provisions
The New York State Model Solar Energy Law provides model language for abandonment and decommissioning provisions in
the Model Law section of this Guidebook.
The following provide further examples that are intended to be illustrative and do not confer an endorsernent of content:
• Town of Geneva, NY,§130-4(D);ecode360 .com/28823382
• Town of Oloan, N.Y„§10,25.5; I}t.tps;//www,cityofoleaii,orci/council!minutes/ccmin2015-Q4-14.pclf
2.4 Checklist for Decommissioning Plans
The following items are often addressed In decommissioning plans requirements,
• Defined conditions upon which decomrnlssloning will be Initiated(i.e„end of land lease, no operation for 12 months,prior
written notice to Facility owner, etc,).
* Removal of all nonutility owned equipment,conduit,structures,fencing, roads,and foundations,
• Restoration of property to condition prior to solar development.
•The timeframe for completion of decommissioning activities,
• description of any agreement(e.g., lease)with landowner regarding decommissioning.
• The party responsible for decommissioning,
• Plans for updating the decommissioning plan.
• Before final electrical Inspection,provide evidence that the decommissioning plan was recorded with the Register of Deeds.
Questions .?
If you have any questions regarding the decommissioning of solar panels,please email questions to clocincnercryliel1DO
nyserds.ny.cicv or request free technical assistance at nygg.rd ,n,y,gov/Solar uidcbook,The NYSRRDA team looks forward to
partnering with communities across the state to help them meet their solar energy goals.
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