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03_2022-09-15 Decommissioning Plan NEXAMP- DECOMMISSIONING PLAN FOR NORTHERN GATEWAY RENEWABLES, LLC & SOUTHERN GATEWAY RENEWABLES, LLC September 15th, 2022- V2 Northern Gateway Renewables, LLC & Southern Gateway Renewables, LLC, as provided by Nexamp, has prepared this Decommissioning Plan (Plan) for its proposed solar photovoltaic facilities (Facilities) to be constructed on County property located on 433 Queensbury Avenue (Tax Parcel No. 297.15-1-1 & 303.8- 1-1). 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 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 pad(s) • Screw or driven piles and racking to support the PV modules • DC and AC wiring • Pad mounted equipment • A gravel access drive • 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 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 recycler. In the event of a total fracture of any modules, the interior materials are silicon-based and are not hazardous. 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 NGRID 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 Requirements 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 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 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. 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 removed, 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 protected 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. Permit Agency Threshold/Trigger State Pollutant Discharge Elimination System (SPDES) General Permit for Discharges from Construction Activity New York State Department of Environmental Conservation (NYSDEC) Ground disturbance of greater than 1 acre with discharge to wetlands or water bodies. Requires preparation of a Stormwater Pollution Prevention Plan, including erosion and sedimentation controls. Building Permit Warren County & Town of Queensbury A Building Permit must be obtained for any construction, alteration, repair, demolition, or change to the use or occupancy of a building. 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 $283,500 for each project. This surety will provide the requisite capital for solar project decommissioning in the unlikely event that Nexamp is unable to meet its contractual obligations for solar project removal and restoration. In addition to the decommissioning cost, Nexamp included a 5% contingency and allowance for associated legal costs. Below is a summary of the analysis: Project Capacity: 5.0 MW AC Decommissioning (35,000$/MW) $ 175,000 Contingency (5%) $ 8,750 Legal (3%) $ 5,250 Decommissioning Subtotal $ 189,000 Total Decommissioning Costs (150%) $ 283,500 Solar Guidebook for Local Governments NYSERDA 17 Columbia Circle Albany, NY 12203 150 Decommissing Solar Panel Systems Information for local governments and landowners on the decommissioning of large-scale solar panel systems. 151 Section Contents 1. Abandonment and Decommissioning ...........152 1.1 Decommissioning Plans ....................152 1.2 Estimated Cost 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 ........155 152 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 local governments develop solar regulations and landowners negotiate land leases, it is important to understand the options for decommissioning solar panel systems 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 often 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 systems be removed after a specified period of time if they are no longer in use. Local governments establish timeframes for the removal of abandoned systems based on aesthetics, system size and complexity, and location. For example, the Town of Geneva, NY, defines a solar panel 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.22 • 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. 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 components, and the stabilization and re-vegetation of the site. 1.1 Decommissioning Plans Local governments may require having a plan in place to remove solar panel systems at the end of their lifecycle, 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. Plans may also include an estimated cost schedule and a form of decommissioning security (see Table 1). 22 Town of Geneva, N.Y. CODE § 130-4(D)(5) (2016): 153 1.2 Estimated Cost of Decommissioning Given the potential costs of decommissioning and land reclamation, it is reasonable for landowners and local governments to proactively consider system removal guarantees. A licensed professional 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-mounted 2-MW solar panel system. Figures are based on estimates from the Massachusetts solar market. Decommissioning costs for a New York solar installation 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 1: Sample list of decommissioning tasks and estimated costs Tasks Estimated Cost ($) Remove Rack Wiring $2,459 Remove Panels $2,450 Dismantle 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 (see Table 2). Therefore, a local government should consult their municipal attorney when evaluating financial mechanisms. 154 The various financial and regulatory mechanisms to decommission projects are detailed below. Table 2: Relevant Provisions of General City, Town, and Village Laws Relating to Municipal Authority to Require Conditions, Waivers, and Financial Mechanisms Site Plan Review General City Law Town Law Village 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-a (7)274-a (7)7-725-a (7) Subdivision General City Law Town Law Village Law Waivers 33 (7)277 (7)7-730 (7) Performance bond or other security 33 (8)277 (9)7-730 (9) Special General City Law Town Law Village Law Conditions 27-b (4)274-b (4)7-725-b (4) Waivers 27-b (5)274-b (5)7-725-b (5 Source: Referenced citations may be viewed using the NYS Laws of New York Online Excerpts from these statutes are also contained within the “Guide to Planning and Zoning Laws of New York State,” New York State Division of Local Governments Services, June 2011: https://www.dos.ny.gov/lg/publications/Guide_to_planning_and_zoning_laws.pdf 2.1 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 land-lease agreement. 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 equipment to generate 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 estimated cost of decommissioning. Landowners or third-party financial institutions can manage these accounts. Terms on individual payment amounts and frequency can be included in the land lease. Removal or Surety Bonds. Solar developers can provide decommissioning security in the form of bonds to guarantee the availability of funds for system removal. The bond amount equals the decommissioning and reclamation costs for the entire system. The bond must remain valid until the decommissioning obligations have been met. Therefore, the bond must be renewed or replaced if necessary to account for any changes in the 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 specified 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 must be continuously renewed or replaced to remain effective until obligations under the decommissioning plan are met. 155 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 antennas. The following 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 mandated 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 aesthetics, 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 government 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 governments could employ a temporary variance/special permit process (effectively a re- licensing system). Under this system, the locality would issue a special permit 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 endorsement of content: • Town of Geneva, N.Y., § 130-4(D): ecode360 .com/28823382 • Town of Olean, N.Y., § 10.25.5: https://www.cityofolean.org/council/minutes/ccmin2015-04-14.pdf 2.4 Checklist for Decommissioning Plans The following items are often addressed in decommissioning plans requirements: • Defined conditions upon which decommissioning 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 cleanenergyhelp@ nyserda.ny.gov or request free technical assistance at nyserda.ny.gov/SolarGuidebook. The NYSERDA team looks forward to partnering with communities across the state to help them meet their solar energy goals.