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Bill clarifies wind and solar decommissioning bonds, sets five‑year review window
Summary
HB 31 (at DEQ request) would clarify when owners may seek a reduction in decommissioning bonds for wind and solar facilities and allow previously bonded portions covered by federal/state/local bonds to be excluded from DEQ bonding; DEQ provided example bond amounts and calculation methods.
House Bill 31, presented by Representative Neil Durham at the request of the Department of Environmental Quality, would amend statutory wording to clarify decommissioning and bonding provisions for certain wind and solar generating facilities.
DEQ Director Sonya Nowakowski and Energy Bureau Chief Ben Brower said the statute requiring decommissioning bonds for wind (>25 MW) and solar (>2 MW) facilities was enacted in prior sessions but has produced implementation questions. HB 31 would clarify two areas: (1) where a portion of a facility is already bonded with a federal, state or local entity the owner need not post an additional DEQ bond for that portion, and (2) the statute should specify that facility owners may apply every five years after the facility is originally bonded to request a bond reduction based on an amended decommissioning plan.
Brower described the bond‑calculation approach: the department evaluates the facility size, number of turbines, roads, proposed decommissioning method, equipment hours, and salvage value; DEQ has secured bonds for three wind facilities to date with amounts stated in testimony (examples roughly $10.8 million, $14 million and $19.5 million). Proponents from industry groups (Montana Energy Business Alliance and Montana Renewable Energy Association) supported clarity and streamlined implementation; DNRC trust‑lands deputy Ryan Weiss was an informational witness regarding leases on state trust lands.
Representative Durham said the bill merely clarifies legislative intent and provides certainty to avoid judicial or administrative interpretation.
