County tightens decommissioning assurances for multiple solar projects, approves related building permits
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Summary
The board approved decommissioning agreements and building-permit-related resolutions for several utility-scale solar projects, securing 100% financial assurance at the building-permit stage (often via letters of credit) and revising surety language to strengthen the county’s claim rights.
Vermilion County board members on Nov. 18 approved decommissioning agreements and related building-permit resolutions for several solar projects after staff described negotiated changes intended to protect the county’s financial interests.
County staff said state statute requires an owner to post 10% of decommissioning costs after one year of commercial operation, but the developer(s) for the Vermilion Solar 3 LLC project agreed to post 100% of the decommissioning cost at the building-permit phase. Staff also reported revising the surety language in the agreement to make it easier for the county to claim against bond funds if necessary.
Similar provisions were identified for the Pivot Energy project and for a CVE US Illinois Ridge Farm project (also described as CVE Ridge Farm). In those cases, developers provided either letters of credit or other financial assurances in lieu of a bond; staff said letters of credit are generally more secure from the county’s perspective. Mr. Kite, the county presenter, reviewed a checklist of required documents (road-use agreement, decommissioning agreement, livestock management plan and other items) and said a building permit would be issued only after all required documentation was provided and the county board confirmed receipt.
Board members voiced support for securing stronger financial assurances. The board voted to adopt the resolutions and approve the related permit-stage actions; the clerk announced that the motions carried.
Why it matters: Utility-scale solar and associated storage projects can carry decommissioning liabilities years after operation ceases. Securing 100% of projected decommissioning costs at an earlier stage reduces the county’s long-term fiscal risk.
What’s next: Staff will monitor compliance with the checklist and confirm documentation before issuing building permits; the county may exercise claim rights on surety instruments if developers fail to meet decommissioning obligations.
Attribution: Presentation and explanation of the agreements were given by Mr. Kite (S9) and county staff.