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HomeMy WebLinkAbout02-22 Decomissioning Plan Decommissioning Plan Redbud Run Solar Project Frederick County, Virginia Redbud Run Solar LLC 106 Isabella St, Suite 400 Pittsburgh, PA 15212 2 Table of Contents 1. Introduction ............................................................................................................................................... 3 2. Decommissioning Process ........................................................................................................................ 3 Sequence of Activities ............................................................................................................................ 3 Timing for Decommissioning .................................................................................................................. 4 Partial Decommissioning ........................................................................................................................ 4 Completion of Decommissioning ............................................................................................................ 4 3. Decommissioning Cost Estimate .............................................................................................................. 4 4. Financial Security ...................................................................................................................................... 5 Default by the Facility Owner .................................................................................................................. 5 3 1. INTRODUCTION This Decommissioning Plan ("Plan") has been prepared for the Redbud Run Solar Project ("Project") located in Frederick County, Virginia ("County"), and shall be binding on each successor and assignee ("Facility Owner"). The purpose of the Plan is to describe the decommissioning process for the Project. 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. The proposed Project is located on approximately 263 acres, with approximately 150 acres proposed within the fence line. The Project will interconnect to the Rappahannock Electric Cooperative 34.5kV line, located approximately 0.5-mile north of the site. The Project is expected to operate for a minimum of 30 years based on the anticipated useful life of the facility equipment and warrantees thereof. 2. DECOMMISSIONING PROCESS The expected life of the Project is the period during which the facility can produce electrical energy ("Project Life"). The Project has been designed for a lifespan of 30 years or greater. 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. Most components of the Project are composed of valuable recyclable materials, including glass semiconductor material, steel, aluminum, and wiring, and will therefore be salvageable, recyclable, reusable, or resaleable. At the conclusion of the Project Life, these components are typically 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. SEQUENCE OF ACTIVITIES The following sequence of activities is anticipated for decommissioning: 1. Access roads are repaired/reinforced as necessary to support heavy equipment traffic. 2. Sediment control systems are installed according to best management practices (“BMPs”) to control erosion and protect neighboring properties and sensitive resources. 3. The facility is disconnected from the utility power grid and solar arrays are de-energized. 4. Solar modules are disconnected, collected, and either shipped to another project, salvaged, or submitted to a collection and recycling program. 5. Electrical interconnection, wiring, and distribution cables are removed and recycled off-site by an approved recycler. Inert materials below a depth of 36 inches may be abandoned in place if removal would result in greater disturbance. 6. Array steel piles and racking are removed and recycled off-site by an approved metals recycler. Inert materials below a depth of 36 inches may be abandoned in place if removal would result in greater disturbance. 7. Electrical and electronic devices, including transformers and inverters are removed and recycled off-site by an approved recycler. 4 8. Concrete pads (if used for the transformers and inverter blocks) are removed and recycled and/or repurposed. 9. Fencing is removed and recycled off-site by an approved recycler. 10. Project access and internal roads can either remain onsite should the landowner choose to retain them, or be removed and the gravel repurposed either on- or off-site. 11. Unless agreed otherwise by the landowner, the Project site is restored to pre-construction conditions, to the extent feasible, by de-compacting subsoils (if required) and revegetating disturbed land. Restoration will be completed in consultation with the landowner(s) in accordance with applicable land use regulations in effect at the time of Decommissioning. The Project is not expected to generate hazardous materials. In the unlikely event that hazardous materials, as defined by federal, state and/or local laws, are encountered, the Facility Owner shall dispose of such materials in accordance with applicable federal, state and local laws and regulations. TIMING FOR DECOMMISSIONING Decommissioning will commence upon the earlier of: (i) Completion of the Project Life; or (ii) Abandonment of the Project or any portion thereof. 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. 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. 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. 3. 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. The Decommissioning Cost Estimate will account for the gross estimated cost to perform 5 decommissioning and account for administrative and inflation factors as well as the estimated resale and salvage values associated with the Project equipment. A 10% reduction will be applied to the resale and salvage value. During the Project Life, the Facility Owner will provide an updated Decommissioning Cost Estimate to the County 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"). The updated Decommissioning Cost Estimate will account for inflation, cost and value changes, and advances in decommissioning technologies and approaches. 4. FINANCIAL SECURITY Financial security shall be in an amount equal to the Decommissioning Cost Estimate (the "Decommissioning Security"). The Decommissioning Security may be provided in the form of certified funds, cash escrow, bond, letter of credit, or parent guarantee, and will be provided within ninety (90) days of achieving Commercial Operation Date. The Facility Owner shall adjust the amount of the Decommissioning Security to match the updated Decommissioning Cost Estimate after each update during the Project Life. 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. If the Facility is owned 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"), no financial security will be required. This does not negate the Facility Owner’s financial security obligations to the landowner as established in the Lease Agreement. 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, each landowner shall have the right to commence Decommissioning activities within the area it owns. 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.