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HB623 INTRODUCED
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HB623
W1RAY95-1
By Representative Sells
RFD: State Government
First Read: 17-Mar-26
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W1RAY95-1 03/16/2026 EGC (L)bm 2026-996
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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
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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:
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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
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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
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(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
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(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
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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.
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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
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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
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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
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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
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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,
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(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
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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
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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.
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