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Planning Board asks town counsel to review decommissioning-bond language for solar projects
Summary
Board members discussed ambiguity around the form and amount of decommissioning security for solar projects, including whether a 25% cash deposit policy applies. The board asked planning staff to seek town counsel review and recommended drafting bylaw language for a future town meeting.
Charlton’s Planning Board on May 21 discussed a standing question about decommissioning security for solar installations after receiving correspondence from an attorney for NextEra Energy about the acceptable form of surety.
Board members noted that the town’s solar-energy zoning language requires a decommissioning surety but does not explicitly prescribe whether that surety must be cash, bond, or letter of credit. A 2020 Planning Board policy requiring a 25 percent cash deposit had been used previously; the board discussed legal uncertainty about applying that policy to projects approved before the policy’s adoption.
Several board members said the town should seek a written opinion from town counsel explaining the safest and most administrable form of security (cash, surety bond, standby letter of credit, insurance or other instrument) and whether changes to the zoning bylaw or a town policy are advisable. The board asked staff to ask town counsel to review the bylaw language and the NextEra attorney’s letter and to prepare recommended language and process steps, noting an amendment could be proposed at the fall town meeting if needed.
Why it matters: Decommissioning security is intended to ensure that, if a commercial solar or energy-storage installation is abandoned, funds will be available to remove panels, batteries and associated equipment and restore the site. The form and reliability of the security determine how well the town is protected from orphaned sites and cleanup costs.
Board direction and next steps The board asked planning staff to ask town counsel to provide a legal opinion and recommended that planning staff prepare a bylaw amendment or clarified policy to present at a future public hearing and, if appropriate, at town meeting. No final rule change was adopted at the May 21 meeting.
Attestations: Board members cited prior instances where reliance on non-cash surety created enforcement and tracking problems and said they want counsel’s opinion on a defensible, administrable standard.
