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DEQ seeks statutory clarity on wind and solar decommissioning bonds in HB 31

January 08, 2025 | 2025 Legislature MT, Montana


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DEQ seeks statutory clarity on wind and solar decommissioning bonds in HB 31
The committee heard House Bill 31, a DEQ-request bill intended to clarify bonding and decommissioning requirements for large wind and solar generating facilities.

Representative Neil Durham described the bill’s purpose as resolving ambiguities in the original bonding statute for wind (over 25 megawatts) and solar (over 2 megawatts) facilities, including when an owner need not post a duplicate bond with DEQ.

Ben Brouwer, DEQ Energy Bureau chief, told the committee the measure would allow DEQ to recognize portions of a facility already bonded to another public or tribal entity so owners would not be required to post a second bond for the same component. The bill also clarifies that facility owners may apply to DEQ to reassess their bond amount every five years after the facility is initially bonded; changes in decommissioning plans can increase or reduce bond amounts.

Industry groups including the Montana Energy Business Alliance and the Montana Renewable Energy Association testified in favor, saying the bill reduces duplication and provides regulatory certainty. DEQ said it has already calculated and secured bonds for three facilities; bond amounts for those examples were described in testimony as roughly $14,000,000, $19,500,000 and $10,800,000 depending on facility size and decommissioning method. DNRC staff said they administer renewable energy leases on state trust land and were present for questions.

No opponents appeared at the hearing; the committee did not take executive action.

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