Montana Legislature enacts decommissioning bond regulations for wind and solar facilities

In a significant move to bolster renewable energy infrastructure in Montana, the state legislature has introduced House Bill 31, aimed at establishing a regulatory framework for the decommissioning of small-scale wind and solar facilities. Introduced on April 18, 2025, this bill addresses growing concerns about the long-term sustainability and environmental impact of renewable energy installations.

The primary purpose of House Bill 31 is to ensure that owners of wind generation facilities with a capacity of less than 25 megawatts and solar facilities under 2 megawatts are held accountable for the decommissioning of their sites once they cease operations. The bill mandates that facility owners submit a decommissioning bond to the state’s Department of Environmental Quality, which serves as a financial guarantee for the proper dismantling and restoration of the site. If owners fail to submit the required bond within the specified timeframe, they face administrative penalties that can accumulate daily.

Key provisions of the bill include a structured process for bond submission, penalties for non-compliance, and the ability for owners to appeal penalties to a designated board. Additionally, the bill allows for the transfer of ownership of facilities, stipulating that new owners must also submit a bond within 90 days to avoid penalties. This provision aims to maintain accountability throughout the lifecycle of renewable energy projects, even as ownership changes.

The introduction of House Bill 31 has sparked notable debates among lawmakers and stakeholders. Proponents argue that the bill is essential for protecting Montana’s landscapes and ensuring that renewable energy projects do not leave behind environmental liabilities. Critics, however, express concerns about the potential financial burden on small facility owners, particularly those operating on tight margins. The economic implications of the bill could be significant, as it may influence the viability of small-scale renewable energy projects in the state.

Experts suggest that while the bill is a step forward in regulating the renewable energy sector, it also highlights the need for a balanced approach that supports the growth of green energy while safeguarding environmental interests. The bill’s passage could set a precedent for similar legislation in other states, reflecting a growing trend toward accountability in the renewable energy industry.

As House Bill 31 moves through the legislative process, its outcomes will be closely monitored by environmental advocates, industry stakeholders, and policymakers alike. The bill represents a critical intersection of environmental responsibility and economic viability, underscoring the complexities of transitioning to a sustainable energy future in Montana.