Decoding Decommissioning Plans: Navigating Policy and Assuring Stakeholders

By Carrie Boecher, PE, Construction Permitting Manager

In renewable energy, the end of a facility's lifecycle can be as critical as its beginning. Decommissioning plans, which outline how to dismantle facilities and restore land, are vital for ensuring these projects are removed responsibly. Carrie Boecher, Construction Permitting Manager, recently shed light on this aspect of renewable energy projects at the ACP Siting and Permitting Conference in her presentation, Decoding Decommissioning Plans: Navigating Policy and Assuring Stakeholders. 

Understanding Decommissioning Plans 

A decommissioning plan aims to ensure the complete and safe removal of an energy generation or storage facility at the end of its life. The decommissioning plan typically includes two parts: a narrative describing the general removal and restoration process and a cost estimate to perform the work. This cost estimate is crucial as it forms the basis for a financial assurance—like a surety bond or a letter of credit—ensuring the plan may be carried out even if the project owner cannot fulfill their obligations. 

The Importance of Regulatory Compliance 

While the purpose of the decommissioning plan is universal, specific decommissioning regulations can vary significantly by jurisdiction. Elements of the plan that often differ include the required depth of removal of subsurface components, the frequency with which the plan and cost estimate must be updated throughout the life of the project, and the calculation and implementation of the financial assurance. 

These variations necessitate a robust strategy to manage compliance across different jurisdictions. At Westwood, we develop detailed, flexible templates for our decommissioning plans to ensure every plan has been prepared in consideration of the applicable regulations. 

Financial Assurance 

One of the most critical aspects of decommissioning planning is the development of financial assurance. This assurance, which can be provided as a surety bond, letters of credit, or other mechanisms, is the amount held by the governmental unit or landowner to ensure decommissioning is completed as written in the plan. Therefore, financial assurance provides a safety net for landowners and the community. Some jurisdictions will allow an offset for the estimated value obtained from salvageable project components, such as metals or functioning equipment. 

Assuring Stakeholders Through Effective Communication 

Beyond regulatory compliance and financial calculations, clear communication of the decommissioning plan to stakeholders is essential. Stakeholders, including local communities, government bodies, and landowners, often have concerns about the long-term impacts of renewable energy projects. Addressing these concerns transparently and empathetically can help mitigate fears and build trust. 

Navigating Challenges and Embracing Best Practices 

The variability in decommissioning regulations across different jurisdictions can pose a challenge for renewable energy developers.  

Staying current with changes in the regulatory landscape is crucial for accurate planning and implementation of renewables projects. Regular reviews and updates of decommissioning plans are not just a regulatory requirement; they are a best practice to ensure plans reflect current realities throughout the project's lifecycle. 

Looking Ahead 

As the renewable energy sector continues to grow, so will the complexity and importance of decommissioning plans. Staying ahead of regulatory changes, understanding the nuances of financial assurances, and maintaining open, informed dialogues with stakeholders will ensure these plans serve their intended purpose. 

Decommissioning is more than a regulatory requirement; it's a commitment to responsible environmental and community stewardship. 

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About the Author

Carrie Boecher, PE is a licensed civil engineer who has served as a Construction Permitting Manager at Westwood for over six years. She graduated from the University of Wisconsin-Madison in 2010 with a BS in Civil and Environmental Engineering and a Certificate in Technical Communications. Her expertise includes erosion control, environmental assessments, remediation, and water treatment. She handles all phases of civil engineering projects, from design and permitting to construction oversight, and is skilled in creating detailed reports and presentations.