New legislation was enacted in Maine relating to offshore energy demonstration projects. The new law is titled SB 545 and provides for offshore energy demonstration projects to construct wind energy complexes and wave energy conversion facilities. SB 545 requires operators of these facilities to attain a permit and to supply an approximation of the total project removal cost which includes the salvage value of the equipment and the net expenses of project removal. The operator is required to sustain funds in an amount equivalent to the net project removal cost. The new law authorizes the utilization of a performance bond, surety bond, letter of credit, corporate guarantee or other variety of financial assurance; this financial assurance must be accessible if the operator ceased to exist, affirmed bankruptcy, or is unable to finance and back the required project removal plan at the cancelation of the project permit.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.