Wind Generation Facility Owners in Montana Need Bond

montana wind generation facility

With the recent passage of Montana HB 216 , it is required that wind generation facility owners need to obtain a surety bond to secure the decommissioning of the facility. The Department of Environmental Quality will determine the bond amount required. The bond will be forfeited if the owner fails to properly decommission the facility. This bill is effective immediately.

According to the bill, this requirement applies to any person that owns a wind generation facility used for the generation of electricity. A wind generation facility is any combination of physically connected wind turbine or turbines, associated prime movers, and other associated property.

What is required of wind generation facility owners?

On or before July 1, 2018, wind generation facility owners should notify the department in writing of the date that the facility began commercial operation and submit a plan for decommissioning. Wind generation owners should also make sure that they provide the department with any other necessary information in accordance with the rules adopted in order for the department to determine bond requirements. The terms of the bond dictate that, if the owner of the wind generation facility fails to submit a decommissioning bond acceptable to the department within the given time frame, the department may assess an administrative penalty of not more than $1,500 and an additional administrative penalty of not more than $1,500 for each day the failure to submit the decommissioning bond continues. The principal may be released of his or her obligation if it is determined that they have properly decommissioned the wind generation facility.

How does the department determine the price of a decommission bond?

To determine the amount of the bond, the department should consider the character and nature of the site where the wind generation facility is located and the current market salvage value of the wind generation facility, as determined by an independent evaluator.

Exemptions from surety bond requirement

According to the Montana HB 216, an owner of a wind generation facility is exempt from the state bond requirement if the owner posts a bond with a federal agency, the Department of Natural Resources & Conservation for the lease of state land, or with a tribal, county, or local government. The exemption also applies to private landowners owning a 10% or greater share of the wind generation facility on the land where is located or if commercial operations began on or before January 1, 2018, and has less than 25 megawatts in nameplate capacity.

For questions regarding this bond or to get your free, no obligation quote, contact an expert at SuretyBonds.com by calling 1 (800) 308-4358 today!