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HomeMy WebLinkAbout48-22 Decommissioning Plan Decommissioning Plan Redbud Run Solar Project Frederick County, Virginia Prepared for: Redbud Run Solar LLC c/o Orden LLC 106 Isabella Street Pittsburgh, Pennsylvania 15221 Prepared by: Stantec Consulting Services Inc. 1165 Scheuring Road De Pere, Wisconsin 54115 Project No: 237800356 July 15, 2022 DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA i This document entitled Decommissioning Plan – Redbud Run Solar Project, Frederick County, Virginia, was prepared by Stantec Consulting Services Inc. (“Stantec”) for the use of Redbud Run Solar LLC and Oriden LLC (the “Client”). The material in this document reflects Stantec’s professional judgment in light of the scope, schedule and other limitations stated in the document and in the contract between Cardno, now Stantec and the Client. The opinions in this document are based on conditions and information existing at the time this document was published and do not take into account any subsequent changes. In preparing the document, Stantec did not verify information supplied to it by others. (signature) Jill M. Dam, PE Civil Engineer (signature) JoAnne J. Blank Senior Associate (signature) David D. Faccas, PE Registration No. 402058992 Commonwealth of Virginia DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA ii Table of Contents 1.0 INTRODUCTION.......................................................................................................... 1 1.1 SOLAR FARM COMPONENTS................................................................................................ 1 1.2 TRIGGERING EVENTS AND EXPECTED LIFETIME OF PROJECT .......................................... 1 1.3 DECOMMISSIONING SEQUENCE ......................................................................................... 2 2.0 PROJECT COMPONENTS AND DECOMMISSIONING ACTIVITIES ................................ 4 2.1 OVERVIEW OF SOLAR FACILITY SYSTEM.............................................................................. 4 2.2 SOLAR MODULES .................................................................................................................... 5 2.3 RACKING SYSTEM AND SUPPORT ........................................................................................ 5 2.4 INVERTERS AND TRANSFORMER STATIONS ......................................................................... 5 2.5 ELECTRICAL CABLING AND CONDUITS .............................................................................. 5 2.6 PROJECT ABOVE GROUND COLLECTION LINE ................................................................. 6 2.7 PERIMETER FENCING, SITE ACCESS AND INTERNAL ROADS ............................................ 6 3.0 LAND USE AND ENVIRONMENT .................................................................................. 7 3.1 LAND USE ................................................................................................................................. 7 3.2 RESTORATION AND REVEGETATION .................................................................................... 7 3.3 SURFACE WATER DRAINAGE AND CONTROL ................................................................... 7 3.4 MAJOR EQUIPMENT REQUIRED FOR DECOMMISSIONING ............................................. 7 4.0 DECOMMISSIONING COST ESTIMATE SUMMARY....................................................... 9 4.1 DECOMMISSIONING EXPENSES............................................................................................ 9 4.2 POTENTIAL DECOMMISSIONING REVENUES .................................................................... 10 4.3 DECOMMISSIONING COST SUMMARY AND FINANCIAL ASSURANCE ....................... 11 LIST OF TABLES Table 1 Primary Components of Solar Farm to be Decommissioned .................................... 4 Table 2 Typical Access Road Construction Materials................................................................ 6 Table 3 Estimated Decommissioning Expenses ........................................................................... 9 Table 4 Estimated Decommissioning Revenues ....................................................................... 11 Table 5 Decommissioning Summary ........................................................................................... 11 LIST OF FIGURES Figure 1 Project Layout DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 1 1.0 INTRODUCTION Redbud Run Solar LLC a subsidiary of Oriden LLC is proposing to construct the Redbud Run Solar Project in Frederick County, Virginia. The proposed Redbud Run Solar Project (Redbud Run or “the Project”) is to be located northeast of the City of Winchester, Virginia. Major components of the Project include bi-facial solar modules, a racking system, inverter/transformer stations, access roads, and a pole-mounted distribution level interconnect . The Project will occupy approximately 150 acres of land (within perimeter fencing ) and will have a maximum nameplate generating capacity of up to 30 megawatts (MW) alternating current (AC). This Decommissioning Plan (Plan) provides a description of the decommissioning and restoration phase of the Project . Start -of-construction is planned for quarter three of 2023, with an anticipated Commercial Operation Date in late 2024. The decommissioning phase is assumed to include the removal of Project facilities as listed in Section 1.1 and shown in Figure 1. This Plan includes an overview of the primary decommissioning Project activities, including the dismantling and removal of facilities, and subsequent restoration of land. A summary of estimated costs and revenues associated with decommissioning the Project are included in Section 4.0. The summary statistics and estimates provided are based on a 30-MW[AC] Project array design . 1.1 SOLAR FARM COMPONENTS The main components of the Project include: • Solar modules and associated above ground cabling • Racking system and steel piles • In-string inverters • Transformers stations • Site access and internal roads • Perimeter fencing • Below ground electrical cabling and conduits • Brief above ground collection cabling to point of interconnection (POI) 1.2 TRIGGERING EVENTS AND EXPECTED LIFETIME OF PROJECT Project decommissioning may be triggered by events such as the end of a power purchase agreement or when the Project reaches the end of its operational life. Per Frederick County (County) - Decommissioning will commence upon the earlier of: (i) Completion of the Project Life; or (ii) Abandonment of the Project or any portion thereof. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 2 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. If properly maintained, the expected lifetime of a utility-scale solar panel is approximately 30 to 35 years with an opportunity for a project lifetime of 50 years or more with equipment replacement and repowering. Depending on market conditions and project viability, solar arrays may be retrofitted with updated components (e.g., panels, frame, racking system, etc.) to extend the life of a project. In the event that the modules are not retrofitted, or at the end of the Project’s useful life, the panels and associated components will be decommissioned and removed from the Project site. The value of the individual components of the solar facility will vary with time. In general, the highest component value would be expected at the time of construction with declining value over the life of the Project. Over most of the life of the Project, components such as the solar panels could be sold in the wholesale market for reuse or refurbishment. As efficiency and power production of the panels decrease due to aging and/or weathering, the resale value will decline accordingly. Secondary markets for used solar components include other utility scale solar facilities with similar designs that may require replacement equipment due to damage or normal wear over time; or other buyers (e.g., developers, consumers) that are willing to accept a slightly lower power output in return for a significantly lower price point when compared to new equipment. Components of the solar facility that have resale value may be sold in the wholesale market. Components with no wholesale value will be salvaged and sold as scrap for recycling or disposed of at an approved offsite licensed solid waste disposal facility (landfill). Decommissioning activities will include removal of the arrays and associated components as listed in Section 1.1 and described in Section 2. 1.3 DECOMMISSIONING SEQUENCE Decommissioning activities will begin within 12 months of the Project ceasing operation and will be completed within approximately 9 to 12 months from the start of decommissioning. Monitoring and site restoration may extend beyond this period to ensure successful revegetation and rehabilitation. The anticipated sequence of decommissioning and removal is described below; however, overlap of activities is expected. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 3 • Reinforce access roads, if needed, and prepare site for component removal • Install temporary fencing and erosion control best management practices (BMPs) to protect sensitive resources • De-energize solar arrays • Dismantle panels and above ground wiring • Remove module rack ing and piles • Remove in-string inverters • Remove transformers and skids • Remove below-ground electrical cables and conduit (less than 36-inches in depth) • Remove above ground collection line and poles • Remove access and internal roads and grade site to restore original contours, as necessary • De-compact subsoils (if required), restore and revegetat e disturbed land to pre-construction land use to the extent practicable DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 4 2.0 PROJECT COMPONENTS AND DECOMMISSIONING ACTIVITIES The solar facility components and decommissioning activities necessary to restore the Project area, as near as practicable, to pre -construction conditions are described within this section. 2.1 OVERVIEW OF SOLAR FACILITY SYSTEM Dominion Energy anticipates utilizing approximately 81,972 solar modules, with a total nameplate generating capacity of up to 43.4 MW direct current (DC) converting to approximately 30.0 MW[AC] on the approximately 150-acre site. Statistics and cost estimates provided in this Plan are based on a Jinko bifacial module although the final panel manufacturer has not been selected at the time of this report. Foundations, steel piles, electrical cabling and conduit will be removed . Access roads may be left in place if requested and/or agreed to by the landowner. Redbud Run will communicate with the appropriate local agency to coordinate the repair of public roads damaged or modified during the decommissioning and reclamation process. Estimated quantities of materials to be remov ed and salvaged or disposed of are included in this section. Most of the materials described have salvage value, although there are some components that will likely have none at the time of decommissioning. All recyclable materials, salvaged and non-salvag e, will be recycled to the extent possible. All other non-recyclable waste materials will be disposed of in accordance with state and federal law in a licensed solid waste facility. Table 1 presents a summary of the primary components of the Project included in this decommissioning plan. Table 1 Primary Components of Solar Farm to be Decommissioned Component Quantity Unit of Measure Solar Modules (approximate) 81,972 Each Racking System (equivalent racking – 54 modules) 1,518 Equivalent Racking Steel Piles 10,879 Each Inverters (within arrays) 253 Each Transformer Stations (on skids and piles) 16 Each Electrical Cables and Conduits 12,770 Lineal Foot (estimated) Perimeter Fencing 23,700 Lineal Foot (estimated) Internal Access Roads (approximate) 19,790 Lineal Foot (estimated) Overhead Collection Line 200 Lineal Foot (estimated) DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 5 2.2 SOLAR MODULES Redbud Run is considering a 530-watt bi-facial module, such as those manufactured by Jinko or similar type of model for the Project. Each module assembly (with frame) has a total weight of approximately 61.7 pounds. The modules are approximately 89.7 inches long and 44.6 inches in width and are mainly comprised of non-metallic materials such as silicon, mono- or poly-crystalline glass, composite film, plastic, and epoxies, with an anodized aluminum frame. At the time of decommissioning, module components in working condition may be refurbished and sold in a secondary market yielding greater revenue than selling as salvage material. 2.3 RACKING SYSTEM AND SUPPORT The solar modules will be mounted on a two-in-portrait racking system, such as the racking manufactured by RBI Solar or a similar manufacturer. Solar racking enables the design to allow for variable lengths of racking to efficiently utilize available space. Cost estimat es are based on an equivalent rack ing section of 2-strings (54 modules), approximately 31.4 meters (103 feet) in length . The racking system is mainly comprised of galvanized and stainless steel; steel piles that support the system are comprised of structural steel. The solar arrays will be deactivated from the surrounding electrical system and made safe for disassembly. Electronic components, and internal electrical wiring will be removed and salvaged. The steel piles will be completely removed. The supports, racking system, and piles contain salvageable materials which will be sold to provide revenue to offset decommissioning costs. 2.4 INVERTERS AND TRANSFORMER STATIONS Redbud Run is proposing to use the Chint Power Systems SCA125KTL-DO/US-600 inverters, which will be located within the solar arrays, mounted on a racking system . The transformers typically sit on a skid assembly mounted on steel pile foundations within the array. The inverters, transformers, and associated equipment will be deactivated, disassembled and removed. Depending on condition, the equipment may be sold for refurbishment and re-use. If not re -used, they will be salvaged or disposed of at an approved solid waste management facility. All oils and lubricants will be collected and disposed of at a licensed facility. 2.5 ELECTRICAL CABLING AND CONDUITS The Project’s underground electrical collection system will be placed at a minimum depth of approximately three (3) feet (36 inches) unless a greater depth is required by a landowner. Cabling installed below three feet will not interfere with future land use and DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 6 can be abandoned in place. For purposes of this Plan, it is assumed that all cabling and conduit located at a depth greater than three (3) feet below the surface will be abandoned in place. 2.6 PROJECT ABOVE GROUND COLLECTION LINE No Project specific substation will be utilized for the Project. The Project will utilize a combination of above ground and below ground medium voltage collection line to interconnect to the Rappahannock Electric Cooperative 36.3 kV line. The collection will be located below the ground surface, with the exception of the final 200 feet as it approaches the POI. The above ground collection line and associated structures will be removed. The transmission line will service Redbud Run and although they may be retained at the end of the Project life, an estimated decommissioning cost has been included in this Plan. 2.7 PERIMETER FENCING , SITE ACCESS AND INTERNAL ROADS The Project site will include an approximately seven-foot-high chain-link or agricultural style fence surrounding the perimeter of each array site. A network of access roads will allow access to solar facility equipment. The internal access roads will be composed of gravel approximately 14 feet wide and totaling approximately 19,790 feet (3.7 miles) in length. The internal access road lengths may change with f inal Project design. To be conservative, the decommissioning estimate assumes that all internal access roads will be completely removed. During installation of the Project site access roads, subgrade conditions may be stabilized by either the placement of geotextile reinforced granular fills over soft ground, chemical stabilization, or cement stabilization. This Plan assumes the installation of up to six (6) inches of aggregate base materials. The estimated quantity of these materials is provided in Table 2. Table 2 Typical Access Road Construction Materials Item Quantity Unit Gravel or granular fill; six-inch thick 5,131 Cubic Yards Decommissioning activities include the removal and stockpiling of aggregate materials on site for salvage preparation. It is conservatively assumed that all aggregate materials will be removed from the Project site and hauled up to five (5) miles from the Project area. Following removal of aggregate, the access road areas will be graded, de- compacted with deep ripper or chisel plow (ripped to 18 inches), backfilled with native subsoil and topsoil, as needed, and land contours restored as near as practicable to preconstruction conditions. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 7 3.0 LAND USE AND ENVIRONMENT 3.1 LAND USE Land use prior to proposed development is mainly forested and agricultural. The areas of the Project that have been dist urbed will be restored, as near as practicable, to their preconstruction condition. Topsoil, reserved during construction and stored in long-term berms, will be used if available and supplemented with comparable soils. Restored areas will be revegetated in compliance with regulations in place at the time of decommissioning. 3.2 RESTORATION AND REVEGETATION Portions of the Project site that have been excavated and backfilled will be restored, as near as practicable, to preconstruction conditions. Soils compacted during de- construction activities will be de-compacted, as necessary, to restore the land to pre- construction land use. The site will be returned to a condition similar to pre-construction within a year of decommissioning. 3.3 SURFACE WATER DRAINAGE AND CONTROL As previously described, the proposed Project area is predominantly located on forested and agricultural land. The terrain consists of rolling hills with natural drainages. The Project facilities are being sited to avoid wetlands, waterways, and drainage ditches to the extent practicable. Surface water conditions at the Project site w ill be reassessed prior to the decommissioning phase. Redbud Run will obtain the required water quality permits from the Virginia Department of Environment Quality (DEQ) and the U.S. Army Corps of Engineers (USACE), as needed, prior to decommissioning the Project. Required construction stormwater permits will also be obtained, and a Stormwater Pollution Prevention Plan (SWPPP) prepared describing the protection needed to reflect conditions present at the time of decommissioning. Best management practices may include: construction entrances, temporary seeding, permanent seeding, mulching (in non-agricultural areas), erosion control matting, silt fence, filter berms, and filter socks. 3.4 MAJOR EQUIPMENT REQUIRED FOR DECOMMISSIONING The activities involved in decommissioning the Project include removal of the Project components: solar modules, racking system, foundations and piles, inverters, transformers, access roads, and electrical cabling and conduits. Restoration activities include back -filling of pile and foundation sites; de-compaction of subsoils; grading of surfaces to pre-construction land contours and revegetation of the disturbed areas. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 8 Equipment required for the decommissioning activities is similar to what is needed to construct the solar facility and may include, but is not limited to: small cranes, low ground pressure (LGP) track mounted excavators, backhoes, LGP track bulldozers, LGP off-road end-dump trucks, front-end loaders, deep rippers, water trucks, disc plow s and tractors to restore subgrade conditions, and ancillary equipment. Standard dump trucks may be used to transport material removed from the site to disposal facilities and to import clean fill and topsoil if necessary. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 9 4.0 DECOMMISSIONING COST ESTIMATE SUMMARY Expenses associated with decommissioning the Project will be dependent on labor costs at the time of decommissioning. For t he purposes of this report, 2022 average market values were used to estimate labor expenses. Fluctuation and inflation of the labor costs were not factored into the estimates. 4.1 DECOMMISSIONING EXPENSES During decommissioning, the Project will incur costs associated with disposal of components not sold for salvage, including materials which will be disposed of at a licensed facility, as required. Decommissioning costs also include backfilling, grading, and restoration of the proposed Project site as described in Section 2. Table 3 summarizes the estimates for activities associated with the major components of the Project. Table 3 Estimated Decommissioning Expenses Activity Unit Number Cost per Unit Total Overhead and management (includes estimated permitting required) Lump Sum 1 $15 1,000 $151,000 Solar modules; disassembly and removal Each 81,972 $4.60 $377,071 Racking system disassembly and removal Each 1,518 $400 $607,200 Steel pile/post removal Each 10,879 $12.50 $135,988 Inverters (in-string) Each 253 $275 $69,575 Transformer stations Each 16 $1,100 $17,600 Access road excavation and removal Lump Sum 1 $30,200 $30,200 Perimeter fence removal Lineal Foot 23,700 $2.80 $66,360 Topsoil replacement and rehabilitation of site Lump Sum 1 $202,150 $202,150 Overhead collection line (200-foot) Lump Sum 1 $8,000 $8,000 Total estimated decommissioning cost $1,665,144 DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 10 4.2 POTENTIAL DECOMMISSIONING REVENUES A summary of potential revenue to be realized from resale or salvage of the facilities is included in this report. As previously described, the value of the decommissioned components will be higher in the early stages of the Project and decline over time. Resale of components such as solar panels is expected to be greater than salvage (i.e., scrap) value for most of the life of the Project, as described below. For purposes of this report, only estimated salvage values were considered in net revenue calculations, as this is the more conservative estimate strategy. Modules and other solar plant components can be sold within a secondary market for re-use. A current sampling of reused solar panels indicates a wide range of pricing depending on age and condition ($0.10 to $0.30 per watt). Future pricing of solar panels is difficult to predict at this time, due to the relatively young age of the market, changes to solar panel technology, and the ever-increasing product demand. A conservative estimation of the value of solar panels at $0.10 per watt would yield approximately $4,340,000. Increased costs of removal, for resale versus salvage, would be expected in order to preserve the integrity of the panels; however, the net revenue would be substantially higher than the estimated salvage value. The resale value of components such as rack ing, may decline more quickly; however, the salvage value of the steel that makes up a large portion of the racking is expected to stay at or above the value used in this report. The market value of steel and other materials fluctuates daily and has varied widely over the past five (5) years. Salvage value estimates were based on an approximate five-year- average price of steel and copper derived from sources including on-line recycling companies and United States Geological Survey (USGS) commodity summaries. The price used to value the steel used in this report is $241 per metric ton; aluminum at $0.40 per pound; silicon at $0.40 per pound and glass at $0.05 per pound. The main material of the racking system and piles is assumed to be salvageable steel. The main components of the solar modules are glass and silicon with aluminum framing. A 50 percent recovery rate was assumed for all panel components, due to the processing required to separate the panel components. Alternative and more efficient methods of recycling solar panels are anticipated before this Project is decommissioned, given the large number of solar facilities that are currently being developed. Table 4 summarizes the potential salvage value for the solar array components and construction materials. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 11 Table 4 Estimated Decommissioning Revenues Item Unit of Measure- ment Quantity per Unit Salvage Price per Unit Total Salvage Price per Item Number of Items Total Panels – Silicon Pounds per Panel 1.5 $0.40 $0.600 81,972 $49,183 Panels – Aluminum Pounds per Panel 2.5 $0.40 $1.000 81,972 $81,972 Panels – Glass Pounds per Panel 23.1 $0.05 $1.155 81,972 $94,678 Racking System and Posts Metric tons per MW[DC] 32.0 $241 $7,712.0 43.40 $334,701 Total Potential Revenue $560,534 * Revenue based on salvage value only. Revenue from used panels at $0.10 per watt could raise $4,340,000 as resale versus the estimated salvage revenue. 4.3 DECOMMISSIONING COST SUMMARY AND FINANCIAL ASSURANCE Table 5 provides a summary of the estimated cost to decommission the Project, using the information detailed in Section 4.1. Estimates are based on 2022 prices, with no market fluctuations or inflation considered. The following table represents the total estimated decommissioning cost without reductions based on salvage value. Per County guidance, a 10-percent reduction in potential salvage value will be included in the net decommissioning cost. Table 5 Decommissioning Summary Item Cost Decommissioning Expenses $1,665,144 Potential Revenue – salvage value of panel components and recoverable materials ($560,534) 10% Reduction in Potential Revenue – per County guidance $56,053 Net Decommissioning Cost $1,160,663 Redbud Run has indicated that, in compliance with the Frederick County Chapter 165 Zoning Ordinance and Virginia State Code, Section 15.2-2241.2, financial assurance to DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA 12 cover the approved decommissioning cost will be provided to Frederick County . The financial assurance will be in the form of certified funds, cash escrow, bond, letter of credit, parent guarantee, or other approved method of financial assurance that is acceptable to Frederick County . An updated Decommissioning Cost Estimate will be provided to Frederick County on each fifth yearly anniversary of the Project Commercial Operation Date. The update will account for inflation, changes in cost and value due to market changes, and improvements in technology and removal/salvaging methods. Redbud Run will be responsible for decommissioning the Project facilities. DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA FIGURES DECOMMISSIONING PLAN REDBUD RUN SOLAR PROJECT , FREDERICK COUNTY, VIRGINIA Figure 1 Project Layout