House Bill 623 Alabama 2026 Session

Updated Mar 17, 2026

Notable

Summary

Primary Sponsor: Chris SellsRepresentative
Republican
Session: 2026 Regular Session
Title: Solar energy; permit to operate solar energy projects required, decommissioning and restoration requirements established, operators required to establish bonds, restoration of abandoned sites provided, enforcement provided
Summary: HB623 would require a state permit, financial assurances, and clear decommissioning/restoration rules for utility-scale solar projects and create a fund to pay for abandoned-site cleanup.
What This Bill Does
It requires that operators obtain a permit from the Alabama Department of Environmental Management to operate utility-scale solar projects (with a separate permit for non-contiguous projects). It sets timelines for decommissioning (within 1 year after stopping operation) and restoration (within 3 years), and requires bonds or other financial assurances to cover those costs. It creates a state Abandoned Utility-Scale Solar Energy Project Fund to pay for decommissioning/restoration and empowers the department to enforce the rules, including requiring a comprehensive decommissioning plan signed by a licensed engineer and allowing permit amendments and bond adjustments.

Who It Affects
Owners/operators of utility-scale solar projects (must obtain permits, post bonds, decommission/restore on schedule, and file timelines and reports)
Alabama Department of Environmental Management (administers permits, enforces provisions, and manages the abandonment fund)
Sureties/financial guarantors (must be licensed, back bonds, and respond to substitutions or cancellations)
Landowners hosting or affected by solar projects (restoration to pre-project conditions or contract terms; potential liens for restoration costs)
State of Alabama (funds, enforcement, and environmental/public health protections)

Key Provisions
Permit required from ADEM to operate utility-scale solar projects; separate permit for non-contiguous projects; $2,500 permit filing fee; 30-day permit decision
Decommissioning within 1 year of cessation; restoration within 3 years; comprehensive decommissioning plan signed by a licensed professional engineer
Operator must establish bonds or other irrevocable financial assurances; minimum $10,000 per acre; bonds payable to the State; bonds updated every 3 years; substitution rules if a surety is suspended
Abandoned Utility-Scale Solar Energy Project Fund created in State Treasury to pay for decommissioning/restoration; fund priorities to protect health/safety, restore land/water/resources, and support related projects
Department can decommission abandoned projects and must maintain enforcement, rules, and a project list; quarterly reports during decommissioning/restoration; department inspections and potential lien creation on land for unrecovered costs
Amendments to permit may add or withdraw land with associated bond adjustments and permit amendments
Decommissioning steps include disconnecting from grid, removing equipment, proper disposal/reuse, restoring land (nearly to pre-project condition or as contracted), and reporting to the department
Enforcement provisions and potential penalties; effective date October 1, 2026

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Environmental Protection