Maples Road Solar developer asks Lee County to accept letter of credit instead of cash for decommissioning

Representatives for a planned solar project asked Lee County to accept a financial instrument instead of cash escrow to secure decommissioning costs for the Maples Road Solar Project.

Kayla Flood of Standard Solar told the committee the company seeks to provide a surety bond, decommissioning bond or a letter of credit in lieu of a cash escrow equal to 125% of the county-approved cost estimate. “We are either requesting a surety bond, decommissioning bond, or a letter of credit for the full amount, which would be the 125 percent of the decommissioning amount, which comes out to roughly $1,000,000,” Flood said.

Zoning staff cited the county ordinance under which the request is made. Alice explained that Lee County’s ordinance (filed under 11-22-8) requires a deposit of 125% of the county-approved cost estimate unless the county board, at its discretion, accepts an alternate form of security such as a surety bond approved by the county. Alice said the county has approved similar arrangements in the past, citing the Shady Oaks 2 wind farm as a precedent.

Committee members discussed administrative oversight of a letter-of-credit arrangement. One member said the county typically charges a nominal annual administration fee; staff said the Shady Oaks 2 arrangement had an administrative charge of about $55 per megawatt and that annual updating of the instrument would be required to keep the county protected. Flood did not confirm acceptance of that specific fee during the recorded discussion.

The committee moved and approved a motion to forward the petition requesting alternate financial security for decommissioning of the Maples Road Solar Project to the executive committee and to place it on the January county board agenda. The committee’s vote was recorded by voice and the chair announced the motion carried.