1. A. An energy storage resource agreement executed after the effective date of this act shall provide that the grantee obtain and deliver to the landowner evidence of financial assurance that conforms to the requirements of this section to secure the performance of the grantee's obligation to remove the grantee's energy storage resource 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.
2. B. The amount of the financial assurance shall be at least equal to the estimated amount by which the cost of removing the energy storage resource 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 facilities, less any portion of the value of the facilities pledged to secure outstanding debt.

3. C. The agreement shall provide that:

   1. 1. The estimated cost of removing the energy storage resource 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 energy storage resource facilities, shall be determined by an independent, third-party professional engineer licensed in this state;

   2. 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:

      1. a. on or before the tenth anniversary of commencement of operations of the energy storage resource facility, and
      2. b. at least once every five (5) years thereafter for the remainder of the term of the agreement; and
   3. 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.
4. 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.

5. E. The agreement shall provide that, if the grantee fails to fulfill the scope of decommissioning and removal work specified in the agreement, the grantee shall deliver the financial assurance not later than the earlier of:

   1. 1. The date the energy storage resource agreement is terminated; or
   2. 2. The twentieth anniversary of the commencement of operations of the energy storage resources located on the landowner's property, unless the term of the agreement is extended.
6. F. The grantee may not cancel financial assurance before the date the grantee has completed the grantee's obligation to remove the grantee's energy storage resource 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 energy storage resource facilities, the financial security provided by the grantee shall remain in place until the date evidence of replacement financial security meeting the requirements of this act is provided to the landowner by the transferee.
7. G. The provisions of this section shall only apply to energy storage resource agreements executed after the effective date of this act and shall have no effect on existing agreements.

Laws 2026, HB 3464, c. 155, § 6, emerg. eff. July 1, 2026.