Committee approves solar siting substitute that limits state incentives on prime farmland and requires decommissioning plans

The House Public Utilities and Energy Committee on Friday adopted changes to HB 241 that would restrict state incentives for utility-scale solar projects sited on certain productive croplands and grazing lands and would require decommissioning plans and financial assurances for large solar installations.

Under the first substitute — adopted in committee — project sites located on soils or grazing lands classified in the bill as productive would not be eligible for specified state incentives. The second substitute, which the committee recommended favorably on a 9–1 vote, also added a requirement that solar project owners submit decommissioning plans and provide financial security (for example, a bond, escrowed funds, a letter of credit, or other acceptable financial assurance) adequate to cover reclamation costs, with credit allowed for reasonable salvage value.

Representative Kevin J. Jack (committee chair) and sponsor Representative Jack said the bill is intended to protect Utah’s agricultural capacity while preserving private property rights; the substitute does not prohibit landowners from building solar on their own land, but removes some state incentives for projects placed on soils or grazing lands the bill defines as prime for farming or grazing.

The Utah Department of Agriculture and Food reported the state has about 10.5…