(a) The costs of closure and post-closure maintenance of the facility, excluding the costs of removing anchors, cables or any other equipment that is not required to be removed from beneath the submerged lands in Oregon’s territorial sea under subsection (8) of this section; and

(b) Any corrective action required to be taken at the site of the facility.

(2) The cost estimates required by subsection (1) of this section must be prepared by a person qualified by experience and knowledge to prepare such cost estimates.

(3) The financial assurance requirements established by subsection (1) of this section may be satisfied by any one or a combination of the following:

(a) Insurance;

(b) Establishment of a trust fund;

(c) A surety bond; or

(d) A letter of credit.

(4) In adopting rules under ORS 274.876 to implement the provisions of this section, the Director of the Department of State Lands may specify policy or other contractual terms, conditions or defenses necessary to establish evidence of financial assurance.

(5)(a) Prior to the time that operation of an ocean renewable energy facility is authorized, the owner or operator of the facility must provide the director with a plan for decommissioning the facility after the permanent cessation of use of that facility for generating ocean renewable energy. The plan for decommissioning the facility must include, but need not be limited to:

(A) Information regarding the anticipated useful life of the facility;

(B) The cost estimates required by subsection (1) of this section;

(C) The evidence of financial assurance required by subsections (1) and (3) of this section;

(D) A description of the method and schedule for updating the costs of decommissioning the facility;

(E) A description of the anticipated methods that will be used to close the facility, engage in post-closure maintenance and take any corrective action required at the site of the facility; and

(F) Any other information required by the director by rule.

(b) By January 31 of each subsequent calendar year, the owner or operator of the facility must update the information required under this subsection with the Department of State Lands.

(6) An owner or operator shall provide evidence of financial assurance before beginning corrective action at the site of an ocean renewable energy facility.

(7) An owner or operator shall establish provisions satisfactory to the director for disposing of any excess moneys received or interest earned on moneys received for financial assurance.

(8)(a) An owner or operator of an ocean renewable energy facility must initiate removal of all equipment related to that facility, excluding anchors, cables and any other equipment that lies at least one meter beneath submerged lands in Oregon’s territorial sea, within 12 months after the permanent cessation of use of that facility for generating ocean renewable energy.

(b) Notwithstanding paragraph (a) of this subsection, an owner or operator of an ocean renewable energy facility may be required to remove anchors, cables or any other equipment that lies at least one meter beneath submerged lands in Oregon’s territorial sea if removal is deemed necessary by the director, in consultation with the owner or operator, and is permitted by the applicable requirements of federal regulatory agencies.

(c) All equipment required to be removed under this subsection must be removed within two years after the permanent cessation of use of the facility for generating ocean renewable energy.

(d) The director may extend the deadlines under this subsection if the owner or operator of the facility can show good cause and has undertaken a good faith effort to remove the equipment as required by this subsection. [Formerly 274.867]

Note: See note under 274.870.