A. Purpose: The intent of this section is to regulate and ensure the proper decommissioning and reclamation of commercial wind conversion systems, geothermal generating systems, commercial solar generation, and commercial energy storage systems to protect the public health, safety and general welfare.
B. Decommissioning And Reclamation: The conditional use permit for commercial wind conversion systems, geothermal generating systems, commercial solar generation, and commercial energy storage systems shall include the submission of a Detailed Decommissioning Plan. Prior to the issuance of construction permits, the cost estimate for the complete removal of non-operational above and below ground improvements must be submitted and financial assurance must be posted.
1. Decommissioning Plan: The Decommissioning Plan will address the following items:
a. All physical improvements, materials, and equipment related to solar energy generation, transmission, and storage must be removed from the surface and the subsurface to a minimum depth of forty-eight (48") inches. The pre-existing soil grade shall also be restored following disturbance caused in the removal process. These shall include, but are not limited to, structures, buildings, equipment, cabling and wiring, solar electric systems, electrical components, security barriers, foundations, pilings, berms, storm water improvements, and any other associated facilities.
b. All fencing shall be removed and recycled or reused unless the Community Development Director grants approval for any existing perimeter fencing to remain in place, in which case, the Nevada Department of Wildlife will be consulted to ensure that the remaining fence will not negatively impact wildlife.
c. All access roads located within the Project Area shall be removed unless the road was in existence prior to the development or the Community Development Director approves a written request from the current or purchasing landowner to allow a portion of the access roads and associated culverts or related materials to remain.
d. For any part of the facility on leased property, the Decommissioning Plan may propose to incorporate agreements with landowners regarding the retainment of driveways, roads, landscaping, berms, fences, gates or repurposed buildings or other structures with approval by the Board of County Commissioners. However, any proposed use of remaining buildings or other structures must be in conformance with the regulations for the zoning district in effect at the time of Board of County Commissioners approval.
e. Ground cover and screening established as part of the Facility Development Plan and other existing vegetation may remain as part of the Decommissioning Plan. Land disturbed as part of the decommissioning process must be reseeded and re-vegetated with certified weed free native seed mixes or other plant species suitable to the area. A list of such appropriate plant materials shall be provided by the Community Development Director. Such planting and associated grading or other land disturbance must be completed within one (1) year of removal of Facility structures and equipment, in accordance with the Decommissioning Plan approved and adopted by the Board of County Commissioners.
f. Disposal and recycling of all facility materials and equipment, including but not limited to, PV panels, inverters, and batteries must fully comply with all applicable County, state and federal laws, regulations, and code requirements, which includes a County-approved demolition permit for work to be performed by a licensed contractor and an approved location for disposal of such materials and equipment.
g. Guaranteed Funds: Financial assurance for the estimated cost of decommissioning and reclamation, which may include the possibility of salvage value if allowed by the Board of County Commissioners must be guaranteed by the owner or operator of the Facility prior to issuance of construction permits to ensure that decommissioning and reclamation can successfully occur. Should another authority having jurisdiction (e.g., NDEP, Bureau of Land Management, etc.) also require financial assurance for decommissioning and reclamation, the Board of County Commissioners may consider accepting the same or portions of the same financial assurance to satisfy both requirements, so long as the assurance meets the specifications of both Lyon County and the separate authority. Upon issuance of the financial assurance, the applicant shall name the County as a party to the financial assurance. The applicant may choose one of the following options (either the full cost option or the tiered securitization option) to provide financial assurance.
h. Full Decommissioning Cost: The full cost of decommissioning and reclamation will be guaranteed by one or any combination of the following as determined acceptable by the Board of County Commissioners.
(1) Trust Fund: The owner or operator of the Facility shall establish a trust fund into which money specifically earmarked for decommissioning and reclamation is deposited. The Facility conditional use permits and the terms of the trust fund shall prohibit the release of these funds without the written consent of the County. The County shall consent to the release of the funds upon compliance with the Decommissioning Plan approved by the Board of County Commissioners.
(2) Payment Surety Bond: The owner or operator of the Facility shall obtain a surety bond satisfactory to and approved by the County in an amount equal to the estimated cost of decommissioning and reclamation. A standby trust fund must be established into which the surety company will make payments if the owner or operator fails to comply with their financial responsibilities. This money deposited into the standby trust fund shall be used to pay a third party to perform the work described in the Decommissioning Plan approved by the Board of County Commissioners.
(3) Letter Of Credit: A letter of credit issued by a financial institution that has a credit rating of at least A- or higher by Standard and Poor's or A3 or higher by Moody's; and financial ratios and capitalization requirements that are acceptable to the County, in the full amount of the decommissioning and reclamation estimate.
(4) Tiered Securitization: An amount equal to, or more than, ten (10%) percent of the approved decommissioning and reclamation cost estimate shall be either: deposited into a cash escrow account at a financial institution acceptable to the County; or an amount equal to, or more than, ten (10%) percent of the decommissioning and reclamation cost estimate in the form of a payment surety bond or a letter of credit issued by a financial institution that has a credit rating of at least A- from Standard & Poor's or A3 from Moody's and assets (50%) and capital surplus (50%) totaling at least ten billion dollars ($10,000,000,000.00), or an A.M. Best financial strength rating of at least A- (Excellent) or other credit rating and capitalization reasonably acceptable to the County shall be obtained. The amount deposited in the cash escrow account, or the amount of the surety bond or letter of credit, shall increase by an additional ten (10%) percent each year on the anniversary of the commencement of operation of the Facility for nine (9) additional years until one hundred (100%) percent of the full cost estimate of decommissioning and reclamation is achieved.
i. Cost Estimate Update: The estimated decommissioning and reclamation costs must be recalculated at an interval no sooner than every year but not later than every five (5) years by an independent third-party Nevada licensed engineer, following the requirements for the original decommissioning cost estimate, and using the most current industry standards. The cost of preparing this update must be paid by the owner or operator.
j. If the recalculated estimated cost of decommissioning and reclamation exceeds the original estimated cost by two percent (2%) or greater, then the Facility owner or operator shall deposit additional funds into the trust fund or cash escrow account or make an update to the payment surety bond or letter of credit to meet the new cost estimate.
k. If the recalculated estimated cost of decommissioning and reclamation is less than ninety-eight percent (98%) of the original estimated cost, then the County may consider approval of a written request by the owner or operator to reduce the required deposits or, payment surety bond, or letter of credit to the recalculated estimate of decommissioning and reclamation cost.
l. Any increase or decrease in the decommissioning and reclamation securitization shall be funded by the applicant or refunded to the applicant (if permissible by the form of security) within ninety (90) calendar days and shall be similarly readjusted for every subsequent five (5)-year decommissioning cost estimate update.
C. Amendment To Decommissioning Plan: Any amendment must be approved by the Board of County Commissioners prior to beginning decommissioning and reclamation. Applications for an amendment shall require a public hearing under the same procedures as required for the Facility conditional use permit. Required timeframes for completion of decommissioning and reclamation shall not be extended due to the amendment application process.
D. Partial Decommissioning: If decommissioning is triggered for a portion, but not the entire Facility, then the owner or operator shall complete decommissioning and reclamation in accordance with the Decommissioning Plan for the applicable portion of the Solar Facility. The remaining portion of the Solar Facility shall continue to be subject to the Decommissioning Plan.
E. Date Of Decommissioning: If the Solar Facility is to be decommissioned and reclaimed, the Facility owner or operator must notify the Community Development Director in writing of the proposed date of discontinued operations and plans for removal.
F. Abandonment Of Facility: Unless otherwise approved by the Community Development Director (e.g., to allow time to repair damage from severe weather or to update equipment), Facilities that have not been in active and continuous service for a period of twelve (12) months, as determined by the Community Development Director based upon receipt of a valid Land Use complaint, an unsatisfactory report from a state of federal agency, unsatisfactory annual life and fire safety inspections and/or unsatisfactory self-inspection of battery units, or a failure to provide any of these reports, shall be decommissioned and reclaimed at the Facility owner or operator's expense. However, following the first six (6) months of failure to maintain the site, the County will have the option to hire appropriate professionals to perform needed maintenance using the surety funds required by the conditional use permit.
G. The owner or operator or their successors, within six (6) months after the complete cessation of use of the Facility and at their sole expense, shall initiate and provide continuous decommissioning of the Facility in accordance with the approved Decommissioning Plan.
1. Following the completion of decommissioning of the entire Facility and payment for any such costs arising out of a default by the owner or operator or their successors, any remaining securitized funds held by the County shall be distributed to the project owner(s) in the same percentage of the securitized funds matched with the percentage of the project owner's acreage ownership of the Facility.
H. Default Decommissioning And Reclamation By The County: If the owner or operator, or their successors, fail to decommission the Facility pursuant to the approved Decommissioning Plan, and the County has not approved a repowering of the Facility, the County shall have the right, but not the obligation, to commence decommissioning and reclamation activities and shall have access to the property, and shall have the right to draw on securitized funds up to the amount of the actual decommissioning costs, and the rights to the generation equipment and ESS equipment and materials remaining on the property. If applicable, any excess decommissioning and reclamation securitized funds shall be returned to the current owner(s) of the property after the County has completed the decommissioning and reclamation activities and paid all outstanding invoices, divided according to the percentage of the property owner's acreage ownership of the Solar Facility. Nothing herein shall limit other rights or remedies that may be available to the County to enforce the obligations of the owner or operator or their successors, including under the County's zoning powers.