NY State Senate Bill 2021-S7420

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to energy and telecommunications
Oct 06, 2021	referred to rules

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2021-S7420 (ACTIVE) - Details

See Assembly Version of this Bill:: A8353
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §66-s, Pub Serv L; amd §94-c, Exec L
Versions Introduced in 2023-2024 Legislative Session:: S1265, A1733

2021-S7420 (ACTIVE) - Summary

Requires financial security for reclamation for solar and wind electric generating systems.

2021-S7420 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7420

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the public service law and the executive law, in
relation to requiring financial security for reclamation for solar and
wind electric generating systems

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill requires developers of wind and solar power to post a reclama-
tion bond to ensure the proper reclamation of a solar or wind project at
the end of its useful life.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new section 66-s to the Public Service Law to require
applicants for permits from the Public Service Commission for solar and
wind projects to furnish financial security in an amount sufficient to
ensure the proper reclamation of the solar or wind project at the end of

its useful life.

Section 2 adds a new section 94-c to the Executive Law to require appli-
cants for permits from the Office of Renewable Energy Siting for solar
and wind projects to furnish financial security in an amount sufficient
to ensure the proper reclamation of the solar or wind project at the end
of its useful life.

Section 3 provides that the legislation would take effect 180 days after
its enactment.

 
JUSTIFICATION:

Solar and wind projects have well-known useful life expectancies. For
example, wind turbine blades last an average of about 25 to 30 years.
When they are replaced, the old blades become a costly disposal chal-
lenge, from transporting them out of the field to finding a place to
store or recycle the blades, which can be longer than a Boeing 747 wing.

Unfortunately, thermoset plastics are almost impossible to recycle, so
many windmill blades currently do not have much scrap value and are not
very appealing to recyclers. Therefore, many spent turbine blades are
piling up in landfills, although some reinforced plastic blades are
downcycled into cement products.

Likewise, solar panels typically have a commercial life-expectancy of
about 25-30 years, after which the solar energy production has declined
significantly below the original production levels. Once the solar
panels are no longer commercially viable, the panels need to be removed
and/or replaced.

The difficulty with recycling solar panels reflects the fact that they
are constructed from many parts all used together in one product.  Sepa-
rating those materials and recycling them each in a unique way is a
complex and expensive process.

Although the New York Environmental Conservation Law requires reclama-
tion bonds for natural gas wells, gravel pits, mining operations, and
other activities that have a substantial reclamation cost, there is no
comparable requirement for solar or wind projects.  As a result, there
is a significant danger that the owner of the solar or wind project
might lack the financial resources at the end of the project necessary
to properly decommission or reclaim such projects. Some of the owners
might no longer exist, might be bankrupt, or might simply lack the
financial resources or the willingness to properly decommission or
reclaim such projects.

To ensure that solar and wind projects are properly decommissioned,
recycled, or reclaimed, it is essential that a bond or other financial
security be posted at the beginning of the project and included in the
overall project cost.

 
EFFECTIVE DATE:
This bill would become effective 180 days after adoption, provide that
any rule or regulation necessary for the implementation of this bill on
its effective date are authorized to be made and completed on or before
such effective date.

2021-S7420 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7420
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              October 6, 2021
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  public  service  law  and  the  executive  law,  in
   relation to requiring financial security for reclamation for solar and
   wind electric generating systems

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public service law is amended by adding a  new  section
 66-s to read as follows:
   § 66-S. FINANCIAL SECURITY FOR RECLAMATION FOR SOLAR AND WIND ELECTRIC
 GENERATING  SYSTEMS. 1. BEFORE THE COMMISSION MAY ISSUE A PERMIT OR FIND
 A SOLAR OR WIND ELECTRIC GENERATING SYSTEM IN COMPLIANCE WITH ANY  TERMS
 AND  CONDITIONS  SET  FORTH  IN ANY PERMIT ALREADY ISSUED, THE APPLICANT
 SHALL FURNISH FINANCIAL SECURITY TO ENSURE THE PERFORMANCE  OF  RECLAMA-
 TION  AS  PROVIDED  IN  THE  APPROVED  PLAN FOR A SOLAR OR WIND ELECTRIC
 GENERATING SYSTEM AND NAMING THE STATE AS BENEFICIARY. FINANCIAL SECURI-
 TY SHALL BE IN THE FORM OF A BOND FROM A CORPORATE SURETY LICENSED TO DO
 BUSINESS AS SUCH IN THE STATE OR ANY OTHER  FORM  THE  COMMISSION  DEEMS
 ACCEPTABLE.  ANY INTEREST ACCRUING AS A RESULT OF SUCH SECURITY SHALL BE
 THE EXCLUSIVE PROPERTY OF THE PERMITTEE.
   2. THE COMMISSION SHALL DETERMINE THE AMOUNT, CONDITION, AND TERMS  OF
 THE  FINANCIAL  SECURITY.  THE  AMOUNT SHALL BE BASED UPON THE ESTIMATED
 COST OF RECLAIMING THE AFFECTED LAND, WHICH SHALL BE BASED  ON  INFORMA-
 TION CONTAINED IN THE PERMIT APPLICATION AND UPON SUCH INFORMATION AS AN
 INVESTIGATION BY THE COMMISSION MAY DISCLOSE.
   3.  THE FINANCIAL SECURITY SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
 THE COMMISSION HAS APPROVED THE RECLAMATION. AT THE  DISCRETION  OF  THE
 COMMISSION,  THE PERMITTEE MAY SECURE THE RELEASE OF THAT PORTION OF THE
 FINANCIAL SECURITY FOR AFFECTED  LAND  ON  WHICH  RECLAMATION  HAS  BEEN
 COMPLETED AND APPROVED BY THE COMMISSION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13183-01-1

 S. 7420                             2
 
   4. IF THE FINANCIAL SECURITY SHALL FOR ANY REASON BE CANCELLED, WITHIN
 THIRTY  DAYS AFTER RECEIVING NOTICE THEREOF, THE PERMITTEE SHALL PROVIDE
 A VALID REPLACEMENT UNDER THE  SAME  CONDITIONS  AS  DESCRIBED  IN  THIS
 SECTION.   FAILURE TO PROVIDE A REPLACEMENT BOND WITHIN SUCH PERIOD MAY,
 AT  THE DISCRETION OF THE COMMISSION, RESULT IN THE IMMEDIATE SUSPENSION
 OF THE PERMIT.
   5. IF A PERMIT IS SUSPENDED OR REVOKED, THE COMMISSION MAY REQUIRE THE
 PERMITTEE TO COMMENCE RECLAMATION UPON THIRTY DAYS NOTICE.
   6. IF THE PERMITTEE FAILS TO COMMENCE OR TO COMPLETE  THE  RECLAMATION
 AS  REQUIRED, THE COMMISSION MAY ATTACH THE FINANCIAL SECURITY FURNISHED
 BY THE PERMITTEE. IN ANY EVENT, THE FULL COST OF COMPLETING  RECLAMATION
 SHALL  BE  THE  PERSONAL  LIABILITY  OF  THE PERMITTEE AND/OR THE PERSON
 OWNING OR OPERATING THE SOLAR OR WIND ELECTRIC GENERATING SYSTEM AND THE
 COMMISSION, ACTING BY THE ATTORNEY GENERAL, MAY BRING  SUIT  TO  RECOVER
 ALL COSTS TO SECURE THE RECLAMATION NOT COVERED BY THE FINANCIAL SECURI-
 TY.  THE MATERIALS, MACHINERY, IMPLEMENTS AND TOOLS OF EVERY DESCRIPTION
 WHICH MAY BE FOUND AT THE SOLAR OR WIND ELECTRIC GENERATING SYSTEM SITE,
 OR  OTHER  ASSETS OF THE PERMITTEE AND/OR THE PERSON OWNING OR OPERATING
 THE SOLAR OR WIND ELECTRIC GENERATING SYSTEM SHALL BE SUBJECT TO A  LIEN
 OF  THE  COMMISSION  FOR THE AMOUNT EXPENDED FOR RECLAMATION OF AFFECTED
 LANDS AND SHALL NOT BE  REMOVED  WITHOUT  THE  WRITTEN  CONSENT  OF  THE
 COMMISSION.   SUCH LIEN MAY BE FORECLOSED BY THE ATTORNEY GENERAL IN THE
 SAME MANNER AS A MECHANIC'S LIEN.
   7. POLITICAL SUBDIVISIONS, MUNICIPALITIES, THE UNITED STATES  AND  ANY
 OF  ITS  AGENCIES  AND  AGENCIES  OF  THE STATE SHALL BE EXEMPT FROM THE
 REQUIREMENTS OF THIS SECTION.
   § 2. Section 94-c of the executive law is  amended  by  adding  a  new
 subdivision 9 to read as follows:
   9.  FINANCIAL  SECURITY  FOR  RECLAMATION  FOR SOLAR AND WIND ELECTRIC
 GENERATING SYSTEMS. (A) BEFORE THE OFFICE MAY ISSUE A SITING PERMIT  FOR
 A SOLAR OR WIND ELECTRIC GENERATING SYSTEM OR FIND A SOLAR OR WIND ELEC-
 TRIC  GENERATING  SYSTEM IN COMPLIANCE WITH ANY TERMS AND CONDITIONS SET
 FORTH IN ANY SITING PERMIT ALREADY ISSUED, THE APPLICANT  SHALL  FURNISH
 FINANCIAL  SECURITY TO ENSURE THE PERFORMANCE OF RECLAMATION AS PROVIDED
 IN THE APPROVED PRE-APPLICATION PUBLIC INVOLVEMENT PROGRAM  PLAN  FOR  A
 SOLAR OR WIND ELECTRIC GENERATING SYSTEM AND NAMING THE STATE AS BENEFI-
 CIARY.  FINANCIAL  SECURITY SHALL BE IN THE FORM OF A BOND FROM A CORPO-
 RATE SURETY LICENSED TO DO BUSINESS AS SUCH IN THE STATE  OR  ANY  OTHER
 FORM  THE  OFFICE DEEMS ACCEPTABLE. ANY INTEREST ACCRUING AS A RESULT OF
 SUCH SECURITY SHALL BE THE EXCLUSIVE PROPERTY OF THE PERMITTEE.
   (B) THE OFFICE SHALL DETERMINE THE AMOUNT, CONDITION, AND TERMS OF THE
 FINANCIAL SECURITY. THE AMOUNT SHALL BE BASED UPON THE ESTIMATED COST OF
 RECLAIMING THE AFFECTED  LAND,  WHICH  SHALL  BE  BASED  ON  INFORMATION
 CONTAINED  IN THE SITING PERMIT APPLICATION AND UPON SUCH INFORMATION AS
 AN INVESTIGATION BY THE OFFICE MAY DISCLOSE.
   (C) THE FINANCIAL SECURITY SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
 THE OFFICE HAS APPROVED  THE  RECLAMATION.  AT  THE  DISCRETION  OF  THE
 OFFICE,  THE  PERMITTEE  MAY  SECURE  THE RELEASE OF THAT PORTION OF THE
 FINANCIAL SECURITY FOR AFFECTED  LAND  ON  WHICH  RECLAMATION  HAS  BEEN
 COMPLETED AND APPROVED BY THE OFFICE.
   (D) IF THE FINANCIAL SECURITY SHALL FOR ANY REASON BE CANCELLED, WITH-
 IN  THIRTY  DAYS  AFTER  RECEIVING  NOTICE  THEREOF, THE PERMITTEE SHALL
 PROVIDE A VALID REPLACEMENT UNDER THE SAME CONDITIONS  AS  DESCRIBED  IN
 THIS  SECTION.  FAILURE TO PROVIDE A REPLACEMENT BOND WITHIN SUCH PERIOD
 MAY, AT THE DISCRETION OF THE OFFICE, RESULT IN THE IMMEDIATE SUSPENSION
 OF THE SITING PERMIT.

 S. 7420                             3
 
   (E) IF A SITING PERMIT IS SUSPENDED OR REVOKED, THE OFFICE MAY REQUIRE
 THE PERMITTEE TO COMMENCE RECLAMATION UPON THIRTY DAYS NOTICE.
   (F)  IF THE PERMITTEE FAILS TO COMMENCE OR TO COMPLETE THE RECLAMATION
 AS REQUIRED, THE OFFICE MAY ATTACH THE FINANCIAL SECURITY  FURNISHED  BY
 THE  PERMITTEE.  IN  ANY  EVENT, THE FULL COST OF COMPLETING RECLAMATION
 SHALL BE THE PERSONAL LIABILITY  OF  THE  PERMITTEE  AND/OR  THE  PERSON
 OWNING OR OPERATING THE SOLAR OR WIND ELECTRIC GENERATING SYSTEM AND THE
 OFFICE,  ACTING  BY  THE ATTORNEY GENERAL, MAY BRING SUIT TO RECOVER ALL
 COSTS TO SECURE THE RECLAMATION NOT COVERED BY THE  FINANCIAL  SECURITY.
 THE  MATERIALS,  MACHINERY,  IMPLEMENTS  AND  TOOLS OF EVERY DESCRIPTION
 WHICH MAY BE FOUND AT THE SOLAR OR WIND ELECTRIC GENERATING SYSTEM SITE,
 OR OTHER ASSETS OF THE PERMITTEE AND/OR THE PERSON OWNING  OR  OPERATING
 THE  SOLAR OR WIND ELECTRIC GENERATING SYSTEM SHALL BE SUBJECT TO A LIEN
 OF THE OFFICE FOR THE AMOUNT EXPENDED FOR RECLAMATION OF AFFECTED  LANDS
 AND SHALL NOT BE REMOVED WITHOUT THE WRITTEN CONSENT OF THE OFFICE. SUCH
 LIEN  MAY  BE FORECLOSED BY THE ATTORNEY GENERAL IN THE SAME MANNER AS A
 MECHANIC'S LIEN.
   (G) POLITICAL SUBDIVISIONS, MUNICIPALITIES, THE UNITED STATES AND  ANY
 OF  ITS  AGENCIES  AND  AGENCIES  OF  THE STATE SHALL BE EXEMPT FROM THE
 REQUIREMENTS OF THIS SECTION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that  the  amendments  to
 section  94-c  of  the  executive  law, made by section two of this act,
 shall not affect the repeal of such section and shall be deemed repealed
 therewith. Effective immediately, the addition, amendment and/or  repeal
 of  any  rule or regulation necessary for the implementation of this act
 on its effective date are authorized to be  made  and  completed  on  or
 before such effective date.

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Senate Bill S7420

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2021-S7420 (ACTIVE) - Details

2021-S7420 (ACTIVE) - Summary

2021-S7420 (ACTIVE) - Sponsor Memo

2021-S7420 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7420

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Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

2021-S7420 (ACTIVE) - Details

2021-S7420 (ACTIVE) - Summary

2021-S7420 (ACTIVE) - Sponsor Memo

2021-S7420 (ACTIVE) - Bill Text download pdf

Comments