Solar energy; permit to operate solar energy projects required, decommissioning and restoration requirements established, operators required to establish bonds, restoration of abandoned sites provided, enforcement provided

HB623 INTRODUCED Page 0 HB623 W1RAY95-1 By Representative Sells RFD: State Government First Read: 17-Mar-26 1 2 3 4 5 W1RAY95-1 03/16/2026 EGC (L)bm 2026-996 Page 1 First Read: 17-Mar-26 SYNOPSIS: This bill would require all persons to obtain a permit from the Alabama Department of Environmental Management to operate a utility-scale solar energy project . This bill would provide for a permit application process, establish filing fees, and require the department to issue a decision in writing within 30 days of receiving a permit application. This bill would require operators of utility-scale solar energy projects to decommission the projects within one year of ceasing operation and restore the land within three years of ceasing operation. This bill would require operators of utility-scale solar energy projects to establish a bond, security deposit, or other irrevocable financial assurances with the department in amounts sufficient to decommission the project and restore the affected lands. This bill would authorize the department to undertake decommissioning and restoration activities of utility-scale solar energy projects that the department determines are abandoned. This bill would establish the Abandoned 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB623 INTRODUCED Page 2 This bill would establish the Abandoned Utility-Scale Solar Energy Project Fund in the State Treasury for the purpose of decommissioning projects and restoring lands of abandoned projects. This bill would authorize the department to adopt necessary rules to implement and enforce the provisions of this act and would authorize the director to enforce the provisions of this act. A BILL TO BE ENTITLED AN ACT Relating to solar energy; to require a permit from the Alabama Department of Environmental Management to operate certain solar energy projects; to provide for a permit application process; to establish decommissioning and restoration requirements; to require operators to establish bonds, security deposits, or other irrevocable financial assurances with the department; to authorize the department to decommission and restore abandoned projects; to establish the Abandoned Utility-Scale Solar Energy Project Fund for decommissioning projects and restoring lands of abandoned projects; to provide for the enforcement of this act; and to authorize the department to adopt rules. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. For the purpose of this act, the following terms have the following meanings: 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB623 INTRODUCED Page 3 terms have the following meanings: (1) CONTIGUOUS. Two or more tracts of land in actual contact and touching for a continuous distance of at least 200 feet. The term includes tracts of land divided by bodies of water, streets, railroads, or utility rights-of-way, or by land owned by a governmental entity. (2) DEPARTMENT. The Alabama Department of Environmental Management. (3) DIRECTOR. The Director of the Alabama Department of Environmental Management. (4) OPERATOR. Any person engaged in or controlling one or more utility-scale solar energy project. (5) PHOTOVOLTAIC TECHNOLOGY. Technology that generates electrical power from sunlight. (6) UTILITY-SCALE SOLAR ENERGY PROJECT or PROJECT. A ground-mounted photovoltaic technology, concentrating photovoltaic technology, or concentrating solar power project capable of generating two or more megawatts of AC power which is directly connected to the local or regional electrical grid with the ability to deliver power to the electrical grid. The term includes solar arrays, accessory buildings, battery storage facilities, transmission facilities, and any other infrastructure necessary for the operation of the project. The term does not include renewable energy facilities owned or leased by a retail electric customer intended primarily for the customer's own use; to offset the customer's own retail electrical energy consumption at the premises; or for net metering. Section 2. (a) No person may operate a utility-scale 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB623 INTRODUCED Page 4 Section 2. (a) No person may operate a utility-scale solar energy project without a valid permit from the department. A separate permit shall be required for each utility-scale solar energy project that is not contiguous to another utility-scale solar energy project for which a person has a valid permit. (b) An operator desiring a permit shall file an application with the department which includes all of the following information: (1) Identification and contact information of the operator and any other legal entity that will be responsible for either decommissioning the project, providing financial assurance, or both. (2) A description of the tract or tracts of land to be affected by the applicant's utility-scale solar energy project, including the following information: (i) the estimated number of acres to be affected; (ii) the section, township, range, and county in which the land is located; and (iii) a description of access to the area from the nearest public highway. (3) A statement as to whether the operator or any other person associated with the operator holds or has held any other permits under this act and an identification of the permits. (4) A summary of the project timeline, including actual or anticipated initiation and completion of construction, initiation of operations, and expected service life of the project. (5) A comprehensive decommissioning plan, as described 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB623 INTRODUCED Page 5 (5) A comprehensive decommissioning plan, as described in subsection (g). (6) Any other information the department may require to determine whether a permit should be issued. (c) At the time of filing a permit application, an operator shall pay a filing fee of two thousand five hundred dollars ($2,500). (d)(1) Upon receipt of a completed utility-scale solar energy project permit application, the department shall grant, require modification of, or deny the permit within 30 days and notify the operator in writing of its decision. (2) The department may deny a permit for any of the following reasons: a. The information in the application is incomplete, false, or inaccurate. b. The operator fails to submit a feasible decommissioning plan. c. The operator, or other entity listed in the application, controls or has controlled a utility-scale solar energy project with a demonstrated pattern of willful violations of this act. d. The operator, or other entity listed in the application, has forfeited a bond for failure to decommission a utility-scale solar energy project under this act. (e) At the time the department grants a permit, the operator shall have 10 days to establish with the department a bond, security deposit, or other irrevocable financial assurance as described in Section 4. (f)(1) An operator may file an amended permit 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB623 INTRODUCED Page 6 (f)(1) An operator may file an amended permit application with the department to do either of the following: a. Include additional land in an issued permit. b. Withdraw land covered by an issued permit. (2) At the time of filing an amended permit application, an operator shall pay a filing fee of five hundred dollars ($500). (3) Upon granting an amended application to include additional land, the department shall: a. Require the operator to increase the bond, security deposit, or other irrevocable financial assurance to reflect the additional land covered by the permit; and b. Issue an amendment to the original permit covering the additional land described in the amended application for the period of time remaining in the original permit. (4)a. Upon receipt of an amended application to withdraw land covered by an issued permit, the department shall inspect the land to be withdrawn to verify that the withdrawn land is not affected by the operator's utility-scale solar energy project. b. Upon granting an amended application to withdraw land covered by an issued permit, the department shall: 1. Proportionately reduce the bond, security deposit, or other irrevocable financial assurance; and 2. Issue an amendment to the original permit that covers the land that has not been withdrawn from the permit. (g) The comprehensive decommissioning plan, required under subsection (b), shall be prepared, signed, and sealed by a professional engineer licensed in this state and shall 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB623 INTRODUCED Page 7 a professional engineer licensed in this state and shall include all of the following information: (1) The name, address, and contact information of the operator of the utility-scale solar energy project, and the name, address, and contact information of the landowner of the property on which the utility-scale solar energy project is located, if different from the operator. (2) A narrative description of how the decommissioning will be conducted, including: (i) the decommissioning sequencing; (ii) the disposition of materials used in the project upon decommissioning, such as landfilling, reuse, or recycling of project equipment, and specifying the methods for disposing of hazardous waste; and (iii) a schedule for completion of the decommissioning activities. (3) Information on equipment proposed to be salvaged, including the estimated salvage value of the equipment for the purpose of determining the required value of the bond, security deposit, or other irrevocable financial assurance. (4) Information on steps to be taken to restore the land according to Section 3(b). (5) A cost estimate for decommissioning the project and restoration of the land according to Section 3. (6) The proposed mechanism to satisfy the financial assurance requirements established under Section 4 act, including, but not limited to, the following information: a. Which legal entity will establish the mechanism. b. When the mechanism will be established. c. How the department will access the funds from the mechanism if needed. 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB623 INTRODUCED Page 8 mechanism if needed. Section 3. (a) Upon cessation of operations, the operator of a utility-scale solar energy project shall do all of the following: (1) Notify the department within 30 days. (2) Decommission the project within one year. (3) Commence restoration of the land according to subsection (b) within one year. (b) The operator of a utility-scale solar energy project shall take all of the following steps in decommissioning a project: (1) Disconnect the project from the power grid. (2) Remove all equipment from the project site and properly reuse, recycle, or dispose of all equipment. Equipment that meets the definition of hazardous waste shall be disposed of according to the requirements of Chapter 30, Title 22, Code of Alabama 1975. (3)a. Restore the land to either: (i) as nearly as practicable to its condition before the utility-scale solar energy project was undertaken; or (ii) an alternative condition agreed upon in a written contract or lease agreement between the operator and the landowner, if different from the operator. b. A copy of the agreement signed by both parties shall be provided to the department prior to decommissioning. c. The condition of the land shall otherwise comply with any applicable statutory requirements, rules adopted by the department, or local ordinances. d. The operator may revegetate or reforest land that 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB623 INTRODUCED Page 9 d. The operator may revegetate or reforest land that was cleared of trees with seedlings. (c) The operator shall complete the restoration of all affected lands within three years of ceasing operations. (d) Upon commencing decommissioning and restoration activities, the operator shall provide quarterly reports of all decommissioning and restoration activities to the department until the operator completes the restoration of the affected lands. Section 4. (a)(1) The operator of a utility-scale solar energy project shall obtain a performance bond or provide a security deposit or other financial assurance with the department in an amount determined by the department to be sufficient to decommission the project and restore the affected lands according to Section 3 even if the operator becomes insolvent or ceases to reside in, be incorporated, do business, or maintain assets in this state. (2) The operator shall maintain the bond, security deposit, or other financial assurance until the operator has completely decommissioned and restored the site. (3) The operator shall update the bond, security deposit, or other financial assurance with the department every three years until the project is decommissioned and the site restored. (b) Any bond shall be made payable to the State of Alabama and conditioned on the operator's faithful performance of all applicable requirements of this act and all applicable rules adopted by the department under this act. The bond shall be signed by the operator, as principal, and by a corporate 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB623 INTRODUCED Page 10 be signed by the operator, as principal, and by a corporate surety licensed to do business in Alabama, as surety. The penalty of the bond shall be not less than ten thousand dollars ($10,000) for each acre covered by the permit. (c)(1) When an operator has completed all applicable requirements under this act as to any affected lands, the operator shall notify the department. (2) The department, within 30 days of receiving notification from the operator, shall inspect the affected lands. If the utility-scale solar energy project has been decommissioned and the affected lands restored according to the requirements under Section 3, the department shall release the operator from further obligations regarding the affected lands and reduce or release the bond, security deposit, or other financial assurance of the operator. (d)(1) A bond established according to subsections (a) and (b) shall be conditioned so that it cannot be cancelled by the surety except after at least 90 days written notice to the department. (2) If a bond is cancelled after the notice, the operator, on or before the effective date of the cancellation, shall substitute another bond, security deposit, or other financial assurance as provided in this section. (e)(1) If a surety's license to do business in this state, which is on a bond filed with the department under this section, is suspended or revoked, the surety shall notify the operator within 10 days of the suspension or revocation. (2) Within 30 days of receiving written notice that a surety's license to do business in this state is suspended or 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB623 INTRODUCED Page 11 surety's license to do business in this state is suspended or revoked, the operator shall substitute for the surety a new corporate surety licensed to business in this state, or substitute another bond, security deposit, or other financial assurance as provided in this section. (f) If the operator fails to make a substitution as required by subsection (e) or (f), the operator's permit shall automatically be suspended, and the operator shall cease operating the utility-scale solar energy project until the operator complies with subsection (e) or (f). Section 5. (a)(1) If an operator fails to decommission a utility-scale solar energy project and restore the affected lands within three years of ceasing operations, then the director may make a finding in writing, with supporting facts, that the site is abandoned, and the department may commence decommissioning and restoration activities according to this section. (2) A utility-scale solar energy project site shall be considered abandoned and eligible for decommissioning and restoration expenditures under this section if it meets the following conditions: a. The site was affected by a utility-scale solar energy project. b. The site was left in an unrestored or inadequately restored condition. c. No entity exists at the time of the finding which is responsible for decommissioning and restoring the site. d. The site continues to degrade the quality of the environment, prevent or damage the beneficial use of the land 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB623 INTRODUCED Page 12 environment, prevent or damage the beneficial use of the land or water resources, or endangers the health or safety of the public. (b)(1) The director and his or her agents, employees, and contractors may enter upon land adversely affected by a past utility-scale solar energy project to take all necessary measures to decommission the project, restore the affected land, and abate or prevent adverse effects if the director does the following: a. Makes a finding in writing, with supporting facts, of all of the following: 1. Land or water resources have been adversely affected by a past utility-scale solar energy project. 2. It is in the public interest to decommission the project and restore the lands. 3. The operator of the project or owner of the land where the project is located is not known or readily available, or the operator of the project or owner of the land will not give permission to the director and his agents to enter upon the land. b. Gives written notice to the operator of the site or owner of the land if known, or, if not known, by posting notice on the premises and advertising once in a newspaper of general circulation in the county where the land is located. (2) The director and his or her agents, employees, and contractors may enter upon the land to: (i) conduct studies or exploratory work to determine whether there are adverse effects from a past utility-scale solar energy project; and (ii) determine the feasibility of decommissioning the project, 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB623 INTRODUCED Page 13 (ii) determine the feasibility of decommissioning the project, restoring the land, and abating any adverse effects. (c)(1) The Abandoned Utility-Scale Solar Energy Project Fund is created in the State Treasury. (2) The fund shall consist of all monies paid into the State Treasury to the credit of the fund or by legislative appropriations, grants, gifts, or otherwise. (3) Monies contained in the fund may be expended to decommission utility-scale solar energy projects and restore the affected lands according to the requirements established in Section 3 and shall be expended to reflect the following priorities in the order stated: a. The protection of public health, safety, general welfare, and property from harm attributable to the adverse effects of utility-scale solar energy projects. b. The restoration of land and water resources and the environment previously degraded by the adverse effects of utility-scale solar energy projects, including measures for conservation and development of soil; water, excluding channelization; woodland; fish and wildlife; recreation resources; and agricultural productivity. c. Research and demonstration projects relating to the development of utility-scale solar energy project decommissioning and site restoration methods and techniques. d. The protection, repair, replacement, construction, or enhancement of public facilities, such as utilities, roads, recreation, and conservation facilities, which were adversely affected by utility-scale solar energy projects. e. The development of publicly owned land adversely 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB623 INTRODUCED Page 14 e. The development of publicly owned land adversely affected by utility-scale solar energy projects, including land acquired as provided by this section for recreation and historic purposes, conservation and reclamation purposes, and open space benefits. (d)(1) Within six months of decommissioning a utility-scale solar energy project and restoring the affected lands, the director shall itemize the monies expended and file a statement in the judge of probate's office of the county where the land is located, including a notarized appraisal from a qualified, independent appraiser of the value of the land before the decommissioning and restoration activities if the activities result in a significant increase in property value. (2) The statement shall be considered a lien on the land. The lien shall not exceed the increase in market value of the land as determined by the appraisal. (3) The owner of land subject to a lien under this section, within 60 days of the director filing the lien, may file a petition in the circuit court of the county where the land is located to determine the increase in market value of the land because of the decommissioning and restoration activities. The increase in value of the land as determined by the court shall be the amount of the lien, and the owner may appeal the decision. (4) A lien established under this section shall have priority second only to a lien for real estate taxes imposed on the land. Monies derived from the satisfaction of liens shall be deposited in the Abandoned Utility-Scale Solar Energy 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB623 INTRODUCED Page 15 shall be deposited in the Abandoned Utility-Scale Solar Energy Project Fund. Section 6. (a) The director and his or her agents, employees, and contractors may enter upon the lands of a utility-scale solar energy project at any time for the purpose of inspecting the lands and facilities to determine whether the operator has complied with this act. (b) Whenever the director alleges that an operator has not complied with this act, the director shall commence an enforcement action pursuant to Section 22-22A-5, Code of Alabama 1975. (c) The department shall develop and maintain a list of all utility-scale solar energy projects operating in this state and shall update the list annually on or before July 1 of each year. (d) The department shall adopt rules necessary to implement and enforce this act. Section 7. This act shall become effective on October 1, 2026. 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410