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To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Carter, McCaughn
SENATE BILL NO. 2527
(As Sent to Governor)
AN ACT TO PROVIDE FOR DECOMMISSIONING OF SOLAR PANELS; TO 1
DEFINE TERMS; TO PROVIDE REQUIREMENTS FOR SOLAR POWER FACILITY 2
AGREEMENTS CONCERNING REMOVAL OR RESTORATION; TO REQUIRE 3
AGREEMENTS TO REQUIRE THE GRANTEE TO OBTAIN AND DELIVER TO THE 4
LANDOWNER FINANCIAL ASSURANCE IN CERTAIN AMOUNTS TO SECURE 5
PERFORMANCE OF REMOVAL AND RESTORATION OBLIGATIONS; TO PROVIDE 6
ACCEPTABLE FORMS OF ASSURANCE; TO AUTHORIZE LOCAL GOVERNMENTS TO 7
REGULATE SOLAR POWER FACILITIES UNDER CERTAIN CONDITIONS; TO 8
PROVIDE THAT CERTAIN AGREEMENTS THAT PURPORT TO WAIVE A RIGHT OR 9
EXEMPT A GRANTEE FROM LIABILITY OR DUTY IS VOID; TO PROVIDE THAT 10
NOTHING IN THIS ACT SHALL BE CONSTRUED TO LIMIT THE DISCRETION OF 11
COUNTIES OR MUNICIPALITIES PURSUANT TO CERTAIN AUTHORITIES; TO 12
PROVIDE FOR REMEDIES; TO PROVIDE FOR APPLICABILITY OF THIS ACT; 13
AND FOR RELATED PURPOSES. 14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 15
SECTION 1. (1) As used in this section, the following words 16
shall have the meanings ascribed herein unless the context clearly 17
requires otherwise: 18
(a) "Decommissioning cost" means the estimated cost of 19
performing the removal and restoration obligations set forth in 20
subsection (3) of this section, less the estimated salvage value 21
of the components of the solar power facility as of the date of 22
removal. 23
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(b) "Grantee means a person, other than a public 24
utility, as defined by Section 77-3-3, who leases property from a 25
landowner or holds an easement interest pursuant to a solar power 26
facility agreement. 27
(c) "Landowner" means the owner or owners of a fee 28
simple interest in land. 29
(d) "Premises" means the real property leased or 30
granted by a landowner to a grantee pursuant to a solar power 31
facility agreement. 32
(e) (i) "Solar power facility" means, collectively, a 33
device or structure, or series thereof, that provides for the 34
collection of solar energy for electricity generation, together 35
with all facilities and equipment, other than any facility or 36
equipment owned by a public utility, as defined by Section 77-3-3, 37
located proximate to and in support of the operation of such 38
electricity generation device or structure, including, without 39
limitation, all underground and aboveground electrical collection, 40
distribution, and transmission lines; inverters; transformers; 41
substations; energy storage facilities; telecommunications 42
equipment and communication lines; meteorological towers; 43
maintenance yards; switchgear; fences; and foundations supporting 44
other components of the solar power facility; and 45
(ii) "Solar power facility" does not include a 46
solar-generating device or structure that is less than five (5) 47
megawatts in size, measured in alternating current at the point of 48
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interconnection to the electrical grid, unless the application of 49
this section is expressly provided for in the solar power facility 50
agreement. 51
(f) "Solar power facility agreement" means a lease or 52
easement agreement for real property between a grantee and a 53
landowner for the construction, installation and operation of all 54
or a part of a solar power facility on such real property that 55
generates electricity primarily for use and consumption off the 56
premises. 57
(2) All solar power facility agreements: 58
(a) Shall provide, at a minimum, that the grantee 59
shall, upon or prior to the expiration or termination of the solar 60
power facility agreement, safely remove or cause the removal of 61
all components of the solar power facility located on the 62
premises, except for any electrical or communications lines buried 63
more than three (3) feet below the surface grade of the land, and 64
restore the land comprising the premises to, as near as reasonably 65
possible, a condition suitable for supporting the same general 66
land use existing on the premises as of the date of the 67
commencement of construction of the solar power facility, or such 68
other land use as mutually agreed to in writing by the grantor and 69
grantee; and 70
(b) Shall either contain or provide that the grantee 71
shall deliver to the landowner a decommissioning plan detailing 72
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the grantee's plan for performing or causing the performance of 73
the obligations in paragraph (a) of this subsection (2). 74
(3) (a) A solar power facility agreement must require the 75
grantee to obtain and deliver to the landowner financial assurance 76
in the following amounts to secure the performance of the 77
grantee's removal and restoration obligations in subsection (2) of 78
this section: 79
(i) No less than five percent (5%) of the 80
decommissioning cost on the date the solar power facility 81
commences commercial operation; 82
(ii) No less than fifty percent (50%) of the 83
decommissioning cost on the tenth anniversary of the date the 84
solar power facility commences commercial operation; and 85
(iii) No less than the decommissioning cost on the 86
fifteenth anniversary of the date the solar power facility 87
commences commercial operation. 88
(b) Acceptable forms of financial assurance must be set 89
forth in the solar power facility agreement and must include one 90
or more of the following in the amount required by paragraph (a) 91
of this subsection (3): 92
(i) A surety bond; 93
(ii) A collateral bond; 94
(iii) An irrevocable letter of credit; 95
(iv) A parent guaranty; 96
(v) Cash; 97
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(vi) A cashier's check; 98
(vii) A certificate of deposit; 99
(viii) A bank joint custody receipt; 100
(ix) An approved negotiated instrument not 101
described in subparagraphs (i) through (viii) of this paragraph 102
(b); or 103
(x) A combination of the forms of security 104
described in subparagraphs (i) through (ix) of this paragraph (b). 105
(c) A landowner has the right to expressly extend the 106
date the financial assurance required by this subsection (3) is 107
first delivered to the landowner no later than the fifteenth 108
anniversary of the date the solar power facility commences 109
commercial operation. 110
(4) This section does not prohibit a local government from 111
regulating solar power facilities pursuant to its zoning authority 112
granted in Title 17, Mississippi Code of 1972, except that a local 113
government shall not impose solar power facility removal or 114
restoration obligations or require financial assurance securing 115
such obligations beyond those requiring a demonstration of 116
compliance with this section. 117
(5) Except as provided in subsection (3)(c) of this section, 118
a provision of a solar power facility agreement that purports to 119
waive a right or exempt a grantee from a liability or duty 120
established by this section is void unless the landowner and the 121
grantee are affiliated entities. 122
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ST: Solar decommissioning; create provisions
concerning.
(6) Nothing in this section shall be construed to limit the 123
discretion of counties or municipalities pursuant to their 124
authority granted under Title 27, Mississippi Code of 1972. 125
(7) In addition to other remedies available at law, a person 126
who is harmed by a violation of this section is entitled to relief 127
pursuant to Rule 57 of the Mississippi Rules of Civil Procedure. 128
(8) The environmental samples shall be tested during 129
decommissioning and the results of such testing shall be provided 130
to the Public Service Commission. 131
(9) The requirements of this section only apply to solar 132
power facility agreements initially entered into on or after the 133
effective date of this act. If a grantee and landowner agree to 134
amend a solar power facility agreement initially entered into 135
before the effective date of this act, the parties may include the 136
rights and obligations established by this section, and this 137
section must govern such amended agreements. 138
SECTION 2. This act shall take effect and be in force from 139
and after July 1, 2026. 140