OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-350

AN ACT REQUIRING THE POSTING OF A DECOMMISSIONING BOND FOR CERTAIN SOLAR PROJECTS.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Various State Agencies

Various - Potential Cost

Potential Significant

Potential Significant

Note: Various=Various

Municipal Impact:

Municipalities

Effect

FY 19 $

FY 20 $

Various Municipalities

Potential Cost

Potential Significant

Potential Significant

Explanation

The bill requires anyone who receives Connecticut Siting Council approval for a solar photovoltaic facility of at least two megawatt capacity on prime farmland or core forest land, to post a decommissioning bond in an amount sufficient to restore farmland to a productive agricultural condition, or to restore the land as core forest.1

To the extent state agencies or municipalities develop solar facilities on these sites, the bill could result in significant costs associated with posting decommissioning bonds for these projects.

For example, the costs for the Tobacco Valley Solar Decommissioning Plan are $2,250,000.2

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the cost of solar decommissioning bonds.

1 A decommissioning bond is a way to secure paying for removing an abandoned solar panel system and remediating the land.

2 Source: Tobacco Valley Solar Decommissioning Plan, June 2017, DWW Solar II, LLC