Green Surety Bonds: Guaranteeing Environmentally Friendly Wind Farm

The interest in green energy still seems to be at its peak. A large wind farm is in the works to be built in Illinois but once the wind farm has served its purpose, time and money must be used to remove it for the environments sake; a surety bond will ensure that this happens.

A company named Affinity Wind is ready to begin building the 75-turbine farm which will be located in Pike County, Illinois. A surety bond has been required of the contractor by the county. The surety bond or more specifically, contract bond, will be in place to guarantee that funds will be available for the decommissioning of the wind farm once it has fulfilled its purpose. The decommissioning includes the disposal of the turbine structures and the restoration of the land back to the same condition it was in before work began. The Pike County Farm Bureau Manager, Blake Roderick, said wind farm applications are very common which will likely cause the county to institute a statute for decommissioning works and the relating surety bonds which are comparable to the requirements for cell phone towers and oil wells.

Surety bonds guarantee something. In this case, the surety bond required of the contractor building the wind farm is meant to guarantee that it will be properly removed when the time comes 20 years down the road. Should the contractor fail to remove the turbines as agreed upon in the contract, a claim can be put on the bond. The surety company who wrote the bond will pay the claim, whether the surety needs to fund a portion of the job or the whole job as a result of a contractor walking off the site. Once the surety pays the claim to avoid the loss of tax dollars in Pike County, they will go back to the contractor who was responsible for the claim for reimbursement. One way or another, the bond will make sure the work gets done.

Being this is a long term construction project, it’s important to have some assurance that it will be done correctly; and the bond helps accomplish this. With the protection of the bond in place, the wind energy project will be completed as planned which is to the benefit of both Illinois taxpayers and the environment.