USSP Decommissioning and Financial Assurance Overview

NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY
)DIVISION
OF WASTE MANAGEMENT
UTILITY -SCALE SOLAR MANAGEMENT PROGRAM
Oeparlmeni of Environmental Quality
Utility -Scale Solar Project Decommissioning and Financial Assurance Overview
Applicability and Compliance Timeframe
North Carolina Session Law (SL) 2023-58 requires the owner of a utility -scale solar project capable of generating
two (2) or more megawatts (MW) alternating current (AC) that is directly connected to the electrical grid to:
• Properly decommission the project upon cessation of operations and restore the property.
• Register with the North Carolina Department of Environmental Quality (NCDEQ) and pay a fee.
• Submit a decommissioning plan and establish financial assurance for new and rebuilt/expanded utility -scale
solar projects.
Who must comply?
Only utility -scale solar protects capable of generating 2 or more MWAC that are directly connected to the local
or regional electrical grid with the ability to deliver power to the electrical grid must comply with the
requirements set forth in SL 2023-58.
• The requirements to decommission/restore the site, to register with NCDEQ, and pay a fee apply to existing
and new utility -scale solar projects.
• The requirements for submittal of a decommissioning plan and financial assurance apply to utility -scale
solar projects:
- For which applications for certificates of public convenience and necessity (CPCN) are pending or
submitted on or after November 1, 2025 and
- Generating solar energy or are interconnected to a transmission facility on November 1, 2025, that are
rebuilt or expanded after November 1, 2025.
These requirements do not apply to utility -scale solar projects smaller than 2 MWAC, or to renewable energy
facilities owned or leased by a retail electric customer intended primarily for the customer's own use or to offset
the customer's own retail electrical energy consumption at the premises or for net metering.
When is the compliance date?
The requirements become effective November 1, 2025.
• The requirements to properly decommission upon cessation of operation and restoration of the site apply
as of November 1, 2025 to existing and new utility -scale solar projects.
• The owner of a utility -scale solar project must register with NCDEQ and pay a fee as follows:
- By November 1, 2025, or at least 90 days prior to the commencement of construction of the project if
the project is to be constructed after November 1, 2025; and
- At least 90 days prior to commencement of a rebuild or expansion of a utility -scale solar project.
• The owner of a utility -scale solar project must submit a decommissioning plan and establish financial
assurance as follows:
- By November 1, 2025, or prior to commencement of construction of the project if the project is
constructed after November 1, 2025, and
- Prior to commencement of a rebuild or expansion of a utility -scale solar project.
Created: 07/13/2023 1

What do I need to do now?
If you are the owner of a utility -scale solar project who must comply with the requirements of SL 2023-58, other
than familiarizing yourself with the requirements of SL 2023-58 and planning for its November 1, 2025
implementation, there is currently no action you need to take at this time.
NCDEQ must go through a state rulemaking process to codify and further clarify requirements mandated in SL
2023-58. Additional information on the requirements and future rulemaking as well as guidance will be
released soon and can be found at this link: https://www.deg.nc.gov/utility-scale-solar-management-program
In the meantime, you are welcome to contact us if you have any questions. See "Who do I contact if I have
questions?" section of this document.
Terms defined in SL 2023-58:
• Cessation of operations means a utility -scale solar project has not produced power for a period of 12 months. This
12-month period shall not, however, include a period in which the (i) project fails to produce power due to an event
of force majeure or (ii) owner has retained legal control of the project's footprint and has commenced rebuilding the
facility.
• Expansion or expanded, when used in reference to a utility -scale solar project, means adding 2 megawatts AC (MW
AC) or more of directly connected solar energy generating capacity to the local or regional electrical grid with the
ability to deliver power to the electrical grid, or increasing the ability of the project to deliver power to the electrical
grid by thirty-five percent (35%), whichever is larger.
• Photovoltaic module or PV module means the smallest non -divisible, environmentally protected assembly of
photovoltaic cells or other photovoltaic collector technology and ancillary parts intended to generate electrical power
under sunlight, which is part of a utility -scale solar project. (PV modules are commonly referred to as solar panels and
the term can be used interchangeably.)
• Rebuild or rebuilt when used in reference to a utility -scale solar project means a utility -scale solar project for which
more than fifty percent (50%) of the original photovoltaic modules have been replaced with a different type of
photovoltaic module or other fuel source and the project is deemed to be new for income tax purposes.
• Utility -scale solar project means a ground -mounted PV, concentrating PV (CPV), or concentrating solar power (CSP or
solar thermal) project capable of generating 2 MWAC or more directly connected to the local or regional electrical grid
with the ability to deliver power to the electrical grid. The term includes the solar arrays, accessory buildings, battery
storage facilities, transmission facilities, and any other infrastructure necessary for the operation of the project. A
utility -scale solar project does not include renewable energy facilities owned or leased by a retail electric customer
intended primarily for the customer's own use or to offset the customer's own retail electrical energy consumption at
the premises or for net metering.
Where can I find more information about the management of waste PV modules/solar panels?
Specific requirements apply to waste PV modules in addition to/beyond the scope of SL 2023-58. Below is a
link to North Carolina hazardous waste guidance documents for PV modules.
https://www.deg.nc.gov/about/divisions/waste-management/hazardous-waste-section/technical-assistance-
and-guidance-documents#SolarPanels-3173
Who do I contact if I have questions?
Jenny Patterson
Environmental Program Consultant
NCDEQ, Division of Waste Management
Hazardous Waste Section
Email: [e-mail]
Phone: [phone]
Jessica Montie
Environmental Program Consultant
NCDEQ, Division of Waste Management
Solid Waste Section
Email: [e-mail]
Phone: [phone]
Created: 07/13/2023