1. (a) Subject to subsection (b), and except as otherwise allowed by IC 36-7-4-1109 , a project owner may not install or locate a CSE system in a unit unless the project owner submits to the permit authority a decommissioning and site restoration plan, and posts a surety bond, or an equivalent means of security acceptable to the permit authority, including a parent company guarantee or an irrevocable letter of credit, but excluding cash, in an amount equal to the estimated cost of decommissioning the CSE system, as calculated by a third party licensed or registered engineer or by another person with suitable experience in the decommissioning of CSE systems, as agreed upon by the project owner and the permit authority. The required bond or other security shall be posted in increments such that the total amount of the bond or security posted is as follows:

   1. (1) An amount equal to twenty-five percent (25%) of the total estimated decommissioning costs not later than the start date of the CSE system's full commercial operation.
   2. (2) An amount equal to fifty percent (50%) of the total estimated decommissioning costs not later than the fifth anniversary of the start date of the CSE system's full commercial operation.

   3. (3) An amount equal to one hundred percent (100%) of the total estimated decommissioning costs not later than the tenth anniversary of the start date of the CSE system's full commercial operation. For purposes of this subdivision, the total estimated decommissioning costs shall be reevaluated by a third party licensed or registered engineer (or by another person with suitable experience in the decommissioning of CSE systems, as agreed upon by the project owner and the permit authority):

      1. (A) in connection with the tenth anniversary of the start date of the CSE system's full commercial operation; and

      2. (B) at least once every succeeding five (5) year period after the tenth anniversary of the start date of the CSE system's full commercial operation;

         and the total amount of the bond or security posted under this subdivision shall be adjusted as necessary after each reevaluation.

2. (b) For purposes of this section, the estimated cost of decommissioning a CSE system, as calculated by a licensed or registered professional engineer (or by another person with suitable experience in the decommissioning of CSE systems, as agreed upon by the project owner and the permit authority), shall be net of any estimated salvage value attributable to the CSE system at the time of decommissioning, unless the unit and the project owner agree to include any such value in the estimated cost.

3. (c) A project owner shall provide to the permit authority written notice of the project owner's intent to decommission a CSE system not later than sixty (60) days before the discontinuation of commercial operation by the CSE system. Except as provided in subsection (e), after the discontinuation of commercial operation by the CSE system, and as part of the decommissioning process:

   1. (1) all structures, foundations, roads, gravel areas, and cables associated with the project shall be removed to a depth of at least thirty-six (36) inches below grade; and
   2. (2) the ground shall be restored to a condition reasonably similar to its condition before the start of construction activities in connection with the CSE system project.

4. (d) Except as provided in subsection (e), if the project owner fails to remove all CSE system project assets not later than one (1) year after the proposed date of final decommissioning, as set forth in the notice to the permit authority under subsection (c), the permit authority may engage qualified contractors to:

   1. (1) enter the project site;
   2. (2) remove the CSE system project assets;
   3. (3) sell any assets removed; and

   4. (4) remediate the site;

      and may initiate proceedings to recover any costs incurred.

5. (e) Project assets may remain in place after decommissioning is complete if:

   1. (1) the location and condition of the assets conform with local regulations at the time of decommissioning; and
   2. (2) the written consent of the landowner is obtained.

As added by P.L.90-2022, SEC.2.