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HomeMy WebLinkAbout03-20 Decommissioning PlanDECOMMISSIONING PLAN (Frederick County) Revised June 24, 2020 I. Introduction This plan for decommissioning (the “Plan”) is for the Foxglove Solar Project (the “Project”) located in Frederick, County, Virginia (the “County”), and shall be binding on each successor and assignee (the “Facility Owner”). The purpose of the Plan is to ensure the Project is properly removed at the end of the Project’s useful life, or earlier if abandoned in whole or in part, and that the Project site is restored to pre-existing conditions. Pursuant to this Plan, a Decommissioning Cost Estimate will be provided for County review prior to the site plan approval and updated every five (5) years during the Project Life. II. Decommissioning The expected life of the Project is the period during which the facility can produce electrical energy generation (the “Project Life”). At the end of the Project Life, or earlier in the event of abandonment of all or a portion of the Project, the Facility Owner shall decommission the Project or a portion thereof, as set forth below. The decommissioning process for the Project is generally expected to occur as follows (“Decommissioning”):1 1. The following items shall be removed, dissembled (if applicable), packaged and shipped for re-sale or to a salvage/recycling facility or other processing facility where possible, or to a landfill for disposal. a. PV Module b. Racking System c. Mounting Posts d. Electrical wiring/cabling e. Inverters/transformers/connector station f. Fencing g. Concrete Foundations h. Gravel from Access Drive(s) 2. Dispose of any components in a landfill that cannot be salvaged/recycled, re-sold or re- used. 3. Stabilize any exposed soil where equipment was removed, consistent with County and other applicable erosion and sediment control standards. 4. Maintain and replant turf-grass throughout the site, as necessary, unless required otherwise by the landowner. 5. The Project site or portion thereof shall be restored to its pre-development condition. 1 It is expected, but not required, that most components of the Project will be salvageable, recyclable, re-usable or re-salable. 2 6. The Project does not generate any hazardous materials. In the unlikely event, and to the extent that, any hazardous materials, as defined by federal, state and/or local laws, are present due to the Project, as part of Decommissioning the Facility Owner shall dispose of all such materials in accordance with applicable federal, state and local laws and regulations governing such materials and the disposal of the same. III. Decommissioning Process Decommissioning generally proceeds in reverse order of installation of the Project: 1. The facility is disconnected from the utility power grid. 2. Solar arrays are disconnected, collected, and either shipped to another project, salvaged, or submitted to a collection and recycling program. 3. Electrical interconnection and distribution cables are removed and recycled off-site by an approved recycler. 4. Array support H-beams and racking are removed and recycled off-site by an approved metals recycler. 5. Electrical and electronic devices, including transformers and inverters are removed and recycled off-site by and approved recycler. 6. Concrete pads (if used for the inverter blocks) are removed and recycled off-site by a concrete recycler. 7. Fencing is removed and recycled off-site by an approved recycler. 8. Any interior Project roads, typically constructed of 4” aggregate base, can either remain onsite should the landowner choose to retain them, or be removed and the gravel repurposed either on-or off-site. 9. Unless agreed otherwise by the landowner, the Project site is returned to its condition prior to installation of the Project, in accordance with applicable land use regulations in effect at the time of Decommissioning. IV. Decommissioning Cost Estimate The Facility Owner shall provide an estimate of the cost to decommission the Project (the “Decommissioning Cost Estimate”) prepared by a Virginia Licensed Engineer prior to site plan approval for installation of the Project, which shall include the following: (a) The gross estimated cost to perform Decommissioning as set forth in Section II above (“Gross Cost”); (b) An administrative and inflation factor of 10% of the Gross Cost (the “Admin Factor”); (c) The estimated resale and salvage values associated with the Project equipment (“Salvage Value”); and (d) A reduction in the Salvage Value by 10% such that only 90% of the Salvage Value can be used as a credit against the Gross Cost and Admin Factor. The Salvage Value multiplied by 90% is the “Salvage Credit.” 3 Thus, the Decommissioning Cost Estimate formula is: Gross Cost + Admin Factor – Salvage Credit = the Decommissioning Cost Estimate. The Facility Owner shall provide an updated Decommissioning Cost Estimate on every 5th year anniversary of the date when the Project first began to continuously deliver electric energy to the electric grid for commercial sales (the “Commercial Operation Date”) during the Project Life, which shall account for inflation, cost and value changes, and advances in decommissioning technologies and approaches. If the Project lies on property owned by more than one person, entity or group (multiple owners), the Decommissioning Cost Estimate shall include a table allocating the Decommissioning Cost Estimate across the Project site, based on the percentage of generating capacity in megawatts (MW) attributable to each separately owned part of the property (the “Cost Allocation”). V. Timing for Decommissioning Upon the earlier of: (i) Completion of the Project Life; or (ii) Abandonment of the Project or any portion thereof, the Facility Owner shall promptly arrange for and be responsible for the full Decommissioning of the Project. If the Project or any portion thereof has ceased operations and is not maintained for a continuous period of longer than one (1) year and decommissioning is required before the end of the Project Life, the County may provide written notice of suspected abandonment to the Facility Owner. Upon receipt, the Facility Owner shall have a sixty (60) day period in which to refute the claim, remedy any problem, commence Decommissioning, or show why more than sixty (60) days is reasonably necessary to remedy the problem. If at the end of the sixty (60) day period the parties are unable to resolve amicably any dispute arising out of or in connection with this Decommissioning Plan, then such dispute shall be resolved by an action filed in the Circuit Court of Frederick County, Virginia. VI. Partial Decommissioning If Decommissioning is triggered for a portion, but not the entire Project, prior to the end of the Project Life, the Facility Owner shall commence and complete Decommissioning, in accordance with the Decommissioning Plan, for the applicable portion of the Project. If a portion of the Project is Decommissioned, the remaining portion of the Project would continue to be subject to this Decommissioning Plan. VII. Completion of Decommissioning Decommissioning will be complete when the County Construction Official or County Engineer, or another party appointed by the County, determines that Decommissioning has been completed in accordance with this Decommissioning Plan by issuance of a letter to the Facility Owner. VIII. Default by the Facility Owner If the Facility Owner is in default of its obligation to commence or complete Decommissioning, and such default remains uncured for more than sixty (60) days (as explained in Section V above), each landowner shall have the right to commence Decommissioning activities within the area it owns. 4 Nothing herein shall limit other rights or remedies that may be available to the County to enforce the obligations of the Facility Owner, including the County’s zoning powers. IX. Notice under this Decommissioning Plan Foxglove Solar, LLC c/o Urban Grid Solar Projects, LLC 337 Log Canoe Circle Stevensville, MD 21666 Attn: Decommissioning Notice Department of Planning & Development County of Frederick, Virginia 107 North Kent Street Winchester, Virginia 22601 Attn: Planning Director X. Financial Security Financial security shall be in an amount equal to the Decommissioning Cost Estimate (as determined by a Virginia licensed Engineer in Section III) (the “Decommissioning Security”). When the Decommissioning Cost Estimate is redone during the Project Life, the Facility Owner shall adjust the amount of the Decommissioning Security to match the updated Decommissioning Cost Estimate. If the Facility is not developed by a public utility company or an independent power producer with an investment grade credit rating with Moody’s or Standard and Poor’s (a “Qualified Company”), prior to commencement of commercial operations the Facility Owner shall provide financial security for the removal of the Facility. If the Facility is at any time neither owned nor operated by an entity that is a Qualified Company, then at such time either the owner or the operator shall provide such financial security. If such financial security is required to run to the benefit of the County, such security shall also run to the benefit of the landowner. The Facility Owner will only be required to provide one instrument or obligation equal to the Decommissioning Security to satisfy its obligations to both the County and the landowner. The Decommissioning Security may be provided in one of the following forms: (i) a surety bond, (ii) a letter of credit from a financial institution, (iii) a parent guaranty, or (iv) such other financial instrument as is commonly used in business to secure monetary obligations, so long as such instrument is irrevocable unless replaced with cash or other form of security reasonably acceptable to the parties that benefit from such security.