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HomeMy WebLinkAbout20252069.tiffResolution Approve Decommissioning Plan and Accept Collateral for Phase I of Use by Special Review Permit, USR24-0024, for a Solar Energy Facility (SEF) Outside of Subdivisions and Historic Townsites in the A (Agricultural) Zone District — Pivot Solar 45, LLC Whereas, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and Whereas, on the 19th day of February, 2025, the Board of County Commissioners approved the application of the Colorado State Land Board, 1127 Sherman Street, Denver, Colorado 80203, c/o Pivot Solar 45, LLC, 1601 Wewatta Street, Suite 700, Denver, Colorado 80202, for Use by Special Review Permit, USR24-0024, for a Solar Energy Facility (SEF) outside of subdivisions and historic townsites in the A (Agricultural) Zone District, on the following described real estate, being more particularly described as follows: Section 24, Township 4 North, Range 64 West of the 6th P.M., Weld County, Colorado Whereas, pursuant to Condition of Approval #5.A of the Resolution of USR24-0024, Pivot Solar 45, LLC, has presented the Board with a Decommissioning Plan for said USR, and requests the Board accept Decommissioning Bond #CMS0390087, insured through RLI Commercial Surety, 9025 North Lindbergh Drive, Peoria, Illinois 61615, in the amount of $112,500.00, guaranteeing maintenance, replacement, removal, relocation, and/or reclamation of Phase I of said solar energy facility, and Whereas, staff recommends approval of the Decommissioning Plan and acceptance of Decommissioning Bond #CMS0390087, since they comply with Section 23-4-1030.B of the Weld County Code and will satisfy Condition of Approval #5.A of the Resolution of USR24-0024. Now, therefore, be it resolved by the Board of County Commissioners of Weld County, Colorado, that the Decommissioning Plan, be, and hereby is, approved and accepted. Be it further resolved by the Board of County Commissioners that Decommissioning Bond #CMS0390087, insured through RLI Commercial Surety, 9025 North Lindbergh Drive, Peoria, Illinois 61615, in the amount of $112,500.00, guaranteeing maintenance, replacement, removal, relocation, and/or reclamation of Phase I of said solar energy facility, as permitted and operated under USR24-0024, be, and hereby is, approved and accepted. 5045796 Pages: 1 of 2 08/06/2025 10:47 AM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County , CO INFATZE liNIC k% 44IVA I MY4 III III cc;PL(DEMI.)/DA/STM/gpitAL4) 2025-2069 PL2936 og/iq /25 Decommissioning Plan and Collateral for Phase I of Use by Special Review Permit, USR24-0024, for a Solar Energy Facility (SEF) — Pivot Solar 45, LLC Page 2 The Board of County Commissioners of Weld County, Colorado, approved the above and foregoing Resolution, on motion duly made and seconded, by the following vote on the 21st day of July, A.D., 2025: Perry L. Buck, Chair: Aye Scott K. James, Pro-Tem: Aye Jason S. Maxey: Aye Lynette Peppler: Aye Kevin D. Ross: Aye Approved as to Form: Bruce Barker, County Attorney Attest: Esther E. Gesick, Clerk to the Board 5045796 Pages: 2 of 2 08/06/2025 10:47 AM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County , CO 1111 AN' VAIICIAIL LJha+IKALW N ilifill: K ii i "Ill 2025-2069 PL2936 MEMORANDUM To: Board of County Commissioners From: Molly Wright, Planner II Subject: USR24-0024 Acceptance of Surety Bond Date: July 7, 2025 for pticsA T pex molly ' S Case Number: USR24-0024 Applicant: Pivot Solar 45 LLC c/o Bradley Thomas Owner Colorado State Land Board Legal Description: All of Section 24, Township 4 North, Range 64 West of the 6th P.M., Weld County, Colorado. Location: Approximately 1 mile south of County Road 46; approximately 1 mile east of County Road 57 Zoning: A (Agricultural) Zone District Parcel #: 1053-24-0-00-008 Parcel Size: ± 628.65 acres Lease Area: ± 73 acres Summary: Pivot Solar LLC, has submitted a Surety Bond for the decommissioning and reclamation of USR24-0024 Solar Energy Facility. USR24-0024 was conditionally approved by the Board of County Commissioners on January 8, 2025. The applicant has submitted the Decommissioning Bond (#CMS0390087) from RLI Insurance Company in the amount of $112,500.00. This is Surety Bond will comply with Condition of Approval #5.A. of the Resolution. Recommendation: Staff recommends that the Board accept the Surety Bond because it complies with Section 23-4- 1030.B.4.g. of the Weld County Code and staff has accepted the related decommissioning/reclamation plan. If the surety bond is accepted by the Board of County Commissioners, it will satisfy Condition of Approval #5.A. of the Use by Special Review Resolution. 2025-2069 -7/Zl Pt_ 293( Jessica Reid From: Sent: To: Cc: Subject: Hi! Molly Wright Monday, July 7, 2025 4:16 PM Jessica Reid Diana Aungst; Maxwell Nader RE: USR24-0024 Yes. This one is a little funky because they are only doing the surety bond for phase 1. I am having them submit a decommissioning plan with that price split up accurately! Once I get that I will send it over to you. Best Regards, !86"X. COUNTY, CO Molly Wright Planner II Department of Planning Services Desk: 970-400-3525 1402 N. 17th Avenue, Greeley, CO 80632 ONO ®O Join Our Team IMPORTANT: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Jessica Reid <jreid@weld.gov> Sent: Monday, July 7, 2025 4:15 PM To: Molly Wright <mrwright@weld.gov> Cc: Diana Aungst <daungst@weld.gov>; Maxwell Nader <mnader@weld.gov> Subject: USR24-0024 Hi Molly, I think I need a Decommissioning/Reclamation Plan for this one to attach to the Bond you dropped off. Do you have that? Also, please feel free to correct me if that's not accurate. I'm still learning and we haven't done one in a while. COUNTY, CO Jess Reid Deputy Clerk to the Board Desk: 970-400-4212 P.O. Box 758, 1150 O St., Greeley, CO 80632 0 x 0 O 0 Join Our Team IMPORTANT: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. 2 Bond No. CMS0390087 DECOMMISSIONING BOND C oP`I� KNOW ALL BY THESE PRESENTS: That we, Pivot Solar 45 LLC, as Principal, and RLI Insurance Company, a corporation duly authorized under the laws of the State of Illinois, as Surety, are held and firmly bound unto Weld County, as Obligee in the maximum aggregate penal sum of One Hundred Twelve Thousand Five Hundred and 00/100 Dollars ($112,500.00), lawful money of the United States of America, to be paid to the said Obligee, successors or assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, successors, administrators and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION IS SUCH THAT: Whereas, the Principal and Obligee have entered into an agreement whereby principal agrees to complete decommissioning in accordance with the Solar Energy Planning Lease No. 15444, which said agreement, dated May 5, 2023, is hereby referred to and made a part hereof; and Whereas, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of the decommissioning referred to in said agreement. Now, Therefore, the condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors or assigns, shall in all thing stand to and abide by, and well and truly keep and perform the decommissioning provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Obligee, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. PROVIDED HOWEVER, that this bond is executed subject to the following express provisions and conditions: 1. In the event of default by the Principal, Obligee shall deliver to Surety by certified mail, a written statement of the facts of such default, within thirty (30) days of the occurrence. 2. The obligation of Surety shall arise when Principal is notified to cure a default, with concurrent notice to Surety, and does not cure the default within the timeframe required under the decommissioning Agreement, such cure period not to exceed 30 days. a.) If there is no Obligee Default, the Surety's obligation under this Bond shall arise after i) The Obligee has notified the Principal and the Surety that the Obligee is considering declaring a Principal Default and has requested and attempted to arrange a conference with the Principal and the Surety to be held not later than fifteen days after receipt of such notice to discuss methods of performing the decommissioning Agreement. If the Obligee, the Principal and the Surety agree, the Principal shall be allowed a reasonable time to perform the Agreement, but such an agreement shall not waive the Obligee's right, if any, subsequently to declare a Principal Default, and Bond No. CMS0390087 ii) The Obligee has declared a Principal Default and formally terminated the Principal's right to complete the Decommissioning Agreement. Such Principal Default shall not be declared earlier than Thirty days (30) after the Principal and the Surety have received notice, and iii) The Obligee has agreed to pay the Remaining Balance Due under the Agreement to the Surety in accordance with the terms of the Agreement or to an entity selected to perform the Agreement in accordance with the terms of the Agreement with the Obligee. 3. When the Obligee has satisfied the conditions of Paragraph 2, the Surety will have the right and opportunity, at its sole discretion to promptly take one of the following actions: a) cure the default; b) assume the remainder of the Decommissioning Agreement and to perform or sublet same c) tender to the Obligee funds sufficient to cure the default, up to an amount not to exceed the penal sum of the bond. In no event shall the Surety be liable for fines, penalties, liquidated damages, or forfeitures assessed against the Principal. 4. After the Obligee has terminated the Principal's right to complete the Decommissioning Agreement, and if the Surety elects to act under Paragraph 3a, 3b or 3c above, then the responsibilities of the Surety to the Obligee shall not be greater than those of the Principal under the decommissioning Agreement, and the responsibilities of the Obligee to the Surety shall not be greater than those of the Obligee under the Agreement 5. No assignment by the Principal shall be effective without the written consent of the surety. 6. This bond may be terminated or canceled by surety by giving not less than sixty (60) days written notice to the Obligee, stating therein the effective date of such termination or cancellation. Such notice shall not limit or terminate any obligations resulting from default by the Principal that may have accrued under this bond as a result of default by Principal prior to the effective date of such termination. 7. Neither cancellation nor termination of this bond by Surety, nor inability of Principal to file a replacement bond or replacement security for its obligations, shall constitute a loss to the Obligee recoverable under this bond. 8. No claim, action, suit or proceeding shall be instituted against this bond unless same be brought or instituted and process served within one year after termination or cancellation of this bond. 9. No right of action shall accrue on this bond for the use of any person, corporation or entity other than the Obligee named herein or the heirs, executors, administrators or successors of the Obligee. Bond No. CMS0390087 10. The aggregate liability of the surety is limited to the penal sum stated herein regardless of the number of years this bond remains in force or the amount or number of claims brought against this bond. 11. The Surety's liability under this bond shall not extend in any manner nor will the Surety be responsible to pay any sums due related to hazardous waste cleanup, wetlands mitigation, remediation actions or removal or responsibility for any of these pollution risks whatsoever or for tort liability. 12. In no event shall this bond guarantee the Principal's obligations under said agreement relating to lease or rent payments. 13. If any conflict or inconsistency exists between the Surety's obligations as described in this bond and as may be described in any underlying agreement, permit, document or contract to which this bond is related, then the terms of this bond shall prevail in all respects. 14. This bond shall not bind the Surety unless the bond is accepted by the Obligee. If the Obligee objects to any language contained herein, within 30 days of the date this bond is signed and sealed by the Surety, Obligee shall return this bond, certified mail or express courier, to the Surety at its address at: RLI Commercial Surety Attention: Kevin Richards, Director 9025 N. Lindbergh Dr., Peoria, IL 61615 Failure to return the bond as described above shall constitute Obligee's acceptance of the terms and conditions herein. IN WITNESS WHEREOF, the signature of said Principal is hereto affixed and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact, this 14th day of v, 2025. Pivot Solar 45 LLC Principal By: RLI Insurance Company Surety By: Nadia Ortega, Attornoy'in-Fact POWER OF ATTORNEY RLI Insurance Company Contractors Bonding and Insurance Company 9025 N. Lindbergh Dr. Peoria, IL 61615 Phone: 800-645-2402 Know All Men by These Presents: That this Power of Attorney is not valid or in effect unless attached to the bond which it authorizes executed, but may be detached by the approving officer if desired. That RLI Insurance Company and/or Contractors Bonding and Insurance Company, each an Illinois corporation, (separately and together, the "Company") do hereby make, constitute and appoint: John L. Hohlt, Senia Hernandez, Nathan Wonder, Jack Meikle, MaLeatra English. Nadia Ortega. William Ison, jointly or severally in the City of Denver , State of Colorado its true and lawful Agent(s) and Attorney(s) in Fact, with full power and authority hereby conferred, to sign, execute, acknowledge and deliver for and on its behalf as Surety, in general, any and all bonds and undertakings in an amount not to exceed Twenty Five Million Dollars ( $25,000.000.00 ) for any single obligation. The acknowledgment and execution of such bond by the said Attorney in Fact shall be as binding upon the Company as if such bond had been executed and acknowledged by the regularly elected officers of the Company. RLI Insurance Company and/or Contractors Bonding and Insurance Company, as applicable, have each further certified that the following is a true and exact copy of a Resolution adopted by the Board of Directors of each such corporation, and is now in force, to -wit: "All bonds, policies, undertakings, Powers of Attorney or other obligations of the corporation shall be executed in the corporate name of the Company by the President, Secretary, any Assistant Secretary, Treasurer, or any Vice President, or by such other officers as the Board of Directors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys in Fact or Agents who shall have authority to issue bonds, policies or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, policies, undertakings, Powers of Attorney or other obligations of the corporation. The signature of any such officer and the corporate seal may be printed by facsimile." IN WITNESS WHEREOF, the RLI Insurance Company and/or Contractors Bonding and Insurance Company, as applicable, have caused these presents to be executed by its respective 1a Vice President with its corporate seal affixed this 18th day of June , 2024 ,`�`�",r irrri r � ,,,, RLI Insurance Company , A°`^s�''-- �.` �•yJ yp •: Contractors Bonding and Ins ance Company _�' SEAL ,� :14 ;{,. er . 6 _ Eric Raudins State of Illinois �L�"°�s ,, ° •• � 4,h≤11 N o),,g SS '., �. County of Peoria ��,, L I N 00,,`, On this 18th day of June , 2024 , before me, a Notary Public, personally appeared Eric Raudins , who being by me duly swom, acknowledged that he signed the above Power of Attomey as the aforesaid officer of the RLI Insurance Company and/or Contractors Bonding and Insurance Company and acknowledged said instrument to be the voluntary act and deed of said corporation. By: Jill A. Scott A Notary Public JiLL A SCOTT Notary Public State or Ohio My Comm. Expires September 22, 2025 Sr. Vice President CERTIFICATE I, the undersigned officer of RLI Insurance Company and/or Contractors Bonding and Insurance Company, do hereby certify that the attached Power of Attorney is in full force and effect and is irrevocable; and furthermore, that the Resolution of the Company as set forth in the Power of Attorney, is now in force. In testimony whereof, I have hereunto set my hand and the seal of the RLI Insurance Company and/or Contractors Bonding and Insurance Company this 14th day of May 2025 RLI Insurance Company Contractors Bonding and Insurance Company By: Jeffrey is1O Corporate Secretary 05E9911020212 A0058D19 A— Pivot 74/4k Energy Decommissioning Plan Pivot Solar 45 and 55 LLCs (USR24-0024) Updated 7/2/25 Weld County requires that Pivot Solar 45 LLC and Pivot Solar 55 LLC, c/o Pivot Energy Inc., ("Pivot") submit a Decommissioning plan to the Department of Planning Services as part of the final administrative review and approval process for a Solar Energy Facility. Our estimate of the decommissioning costs is $22,500 per megawatt, totaling approximately $112,500 for each 5 - megawatt phase. Pivot Solar 45 LLC and Pivot Solar 55 LLC will be constructed as two separate phases and will require separate decommissioning securities. The useful life of the solar facility is expected to be at least 20 -years. At the end of the project's useful life, Pivot will suspend operations and decommission the plant, which will include any necessary demolition, removal of above and below ground equipment, and site reclamation efforts. Pivot's obligation under the Solar Lease Agreement is to return the site to the landowner in substantially the same condition that the property was in prior to the improvements being made. This document establishes a detailed plan for decommissioning and reclamation activities once the project reaches the end of its useful life. The proposed activities will likely need to be refined throughout the project's life to reflect future best practices of the solar industry. Pivot has assumed the planning process will be initiated one to two years prior to the anticipated end of commercial operation. The final plans will be developed in consultation with Weld County and any other applicable agencies that have jurisdiction of activities in the decommissioning process. 1. Decommissioning Project Elements and Milestones The key tasks of project decommissioning are divided into related activities that represent milestones in the process. Each activity is described in further detail below. The decommissioning schedule reflects the conceptual timing of the milestones and overall process. The individual project components to be decommissioned will either be 1) recycled or reused to the maximum extent practicable, or 2) removed from the site and disposed of at an appropriately licensed disposal facility. The general decommissioning approach will be the same whether a portion of, or the entire Project is decommissioned. The activities involved in the facility closure will depend on the expected future use of the site. Certain facility equipment and features may be left in place at the property owner's request, such as transmission facilities, roads, and drainage features. At the time of decommissioning, a plan will be submitted to the County proposing the equipment that will be removed and, if applicable, equipment that will remain, based on expected future use of the site. Pre -closure activities include final closure and reclamation planning, which identifies measures to be taken to restore the site to near pre -construction conditions. This includes but is not limited to the following: APP- Pivot ��►� Energy Complete an analysis of the project materials and their composition to identify those specific components that may be recycled, re -used, scrapped, or sent to disposal sites; as well as identifying specific recycling facilities and disposal sites for materials. Coordinate with local officials to obtain permits and develop plans for the transportation of materials and equipment to and from the site. Develop specifications for demolition and reclamation, which will serve as the basis for contractor bids for decommissioning the project and establish the scope of demolition and reclamation, including developing reclamation plans in compliance with local, state, and federal regulations. During the planning process Pivot will brief the County and other applicable agencies on the decommissioning process and plans. All necessary permits and approvals required for the decommissioning will be obtained prior to commencing operations. The first step in the decommissioning process will be assessing existing site conditions and preparing the site for demolition. Site decommissioning and equipment removal is expected to take up to one year. Therefore, access roads, fencing, some electrical power, and other facilities will temporarily remain in place for use by the decommissioning workers until no longer needed. Demolition debris will be placed in temporary onsite storage areas pending final transportation and disposal and/or recycling according to the procedures listed below. A plan will be implemented for de -energizing portions of the facility to allow safe decommissioning and formal lock out and tag out procedures. This will ensure all electrical components are placed and maintained in a safe condition for demolition activities prior to the start of work. PV Module and Tracker Removal and Recycling During decommissioning, project components that are no longer needed will be removed from the site and recycled, reused or disposed of at an appropriately licensed disposal facility. The first operation is to disconnect and remove modules from the tracker assemblies. Next, the tracker and mounting structures, DC wiring materials, and combiner boxes will all be assembled and segregated for disposal or salvage. Steel piles that support the Pv racking system will be removed and either re- used or recycled to the maximum amount possible. Below ground portions of the supports will either be removed or cut off at least two feet below ground surface and left in place. The demolition debris and removed equipment will be safely removed from the premises and transported to an appropriately licensed disposal facility or recycling center. Photovoltaic modules will either be re -used, recycled or disposed of in accordance with applicable laws at the time of decommissioning. Roads Onsite access roads will remain in place during the decommissioning process. The roads may remain intact after decommissioning if the property owner deems them beneficial for the future use of the site. Roads that will not be used after the solar project's decommissioning will be removed at the end of the process. 1 Pivot 1,d► Energy Fencing Project site perimeter fencing will be removed at the end of the decommissioning project, unless it may be utilized for future use of the site and the property owner requests the fence remain in place. This includes the removal of all posts, fencing material, gates, etc. to return the site to pre - project condition. Transportation and Cleanup During the disassembly and demolition process, materials will be segregated and temporarily placed in gathering areas for transportation. Various materials including, but not limited to, concrete, steel, aluminum, and copper will be temporarily stockpiled at or near a designated processing location pending transport to an appropriate offsite recycling facility. All such materials wil then be transported from the site to approved designated facilities for recycling, scrapping or disposal. All metals will be recycled to the extent practical given the recycling options available at the time of decommissioning. In general, the decommissioning will be undertaken using traditional heavy construction equipment including, but not limited to, front end loaders, cranes, track mounted and rubber -tired excavators, bull dozers, and scrapers. Areas where excavation is required will be backfilled with natural material and compacted. Any voids left from the removal of foundations will be backfilled with surrounding subsoil and topsoil and fine graded to ensure suitable drainage and reclamation of natural grades. Soil management and re -contouring operations will be conducted to minimize the surface area disturbance and implement the activities in the safest and most efficient manner and in accordance with applicable local requirements. Major earthwork is not anticipated as construction of the site will not alter the general grade across the site. To account for post -decommissioning dust control, areas of exposed soils will be revegetated, consistent with the expected future use of the site and State or County requirements. The native dry grass vegetation will be re-established to prevent the spread of weeds. Mulching or palliatives may be used for temporary dust control until vegetation is established. Monitoring Site Restoration Upon completion of the decommissioning process, a one-year restoration monitoring period will begin. Monitoring will ensure that grading and drainage implemented is successful in stabilizing water flow patterns and that the cover vegetation (native dry grass vegetation or other depending on land use) will be reestablished to prevent the spread of weeds. Corrective actions will be implemented if such monitoring determines adverse conditions are present because of an inadequate restoration. 2. Decommissioning/Reclamation Cost Estimates Pivot commits to working together with the County to update the cost estimates every five years from the establishment and submittal of the security bond. The cost estimates will include all costs associated with the dismantling, recycling, and safe disposal of facility parts and site reclamation activates and consider the salvage value of the facility. Pivot ► Energy Cost Estimate: Modules ;,750 '50 This scope includes: • Electrical permit fees • Removal and disposal of wildlife -friendly game fence • Removal of racking and foundations • Removal of modules • Removal of electrical equipment (transformers, pads, etc.) • Removal of electrical DC string wiring and AC underground wiring • Site restoration and reclamation • Waste disposal fees • Temporary restrooms and necessary facilities for workers • Safety and protection equipment Hello