Oklahoma § 17-820.5 - Financial assurance

§ 17-820.5. Financial assurance

A. A solar power facility agreement shall provide that the

grantee obtain and deliver to the landowner evidence of financial

Oklahoma Statutes - Title 17. Corporation Commission

assurance that conforms to the requirements of this section to

secure the performance of the grantee's obligation to remove the

grantee's solar power facilities located on the landowner's property

as described by Section 5 of this act. Acceptable forms of

financial assurance include a parent company guaranty with a minimum

investment grade credit rating for the parent company issued by a

major domestic credit rating agency, a letter of credit, a bond, or

another form of financial assurance reasonably acceptable to the

landowner.

B. The amount of the financial assurance must be at least equal

to the estimated amount by which the cost of removing the solar

power facilities from the landowner's property and restoring the

property to as near as reasonably possible the condition of the

property as of the date the agreement begins exceeds the salvage

value of the solar power facilities, less any portion of the value

of the solar power facilities pledged to secure outstanding debt.

C. The agreement shall provide that:

1. The estimated cost of removing the solar power facilities

from the landowner's property and restoring the property to as near

as reasonably possible the condition of the property as of the date

the agreement begins and the estimated salvage value of the solar

power facilities must be determined by an independent, third-party

professional engineer licensed in this state;

2. The grantee shall deliver to the landowner an updated

estimate, prepared by an independent, third-party professional

engineer licensed in this state, of the cost of removal and the

salvage value:

a.

on or before the tenth anniversary of the commercial

operations date of the solar power facilities, and

b.

at least once every five (5) years after the

commercial operations date of the solar power

facilities for the remainder of the term of the

agreement; and

3. The grantee is responsible for ensuring that the amount of

the financial assurance remains sufficient to cover the amount

required by subsection B of this section, consistent with the

estimates required by this subsection.

D. The grantee is responsible for the costs of obtaining

financial assurance described by this section and costs of

determining the estimated removal costs and salvage value.

E. The agreement must provide that the grantee shall deliver

the financial assurance not later than the earlier of:

1. The date the solar power facility agreement is terminated;

or

2. The twentieth anniversary of the commercial operations date

of the solar power facilities located on the landowner's leased

property.

Oklahoma Statutes - Title 17. Corporation Commission

F. For purposes of this section, "commercial operations date"

means the date on which the solar power facilities are approved for

participation in market operations by a regional transmission

organization and does not include the generation of electrical

energy or other operations conducted before that date for purposes

of maintenance and testing.

G. The grantee may not cancel financial assurance before the

date the grantee has completed the grantee's obligation to remove

the grantee's solar power facilities located on the landowner's

property in the manner provided by this act, unless the grantee

provides the landowner with replacement financial assurance at the

time of or before the cancellation. In the event of a transfer of

ownership of the grantee's solar power facilities, the financial

security provided by the grantee shall remain in place until the

date evidence of financial security meeting the requirements of this

act is provided to the landowner.

Added by Laws 2025, c. 25, § 6, eff. Nov. 1, 2025.