(1) In accordance with applicable provisions of ORS chapter 183, the Director of the Department of State Lands may adopt rules for the authorization of wave energy facilities or devices.
(2) Unless exempted under rules adopted by the director under this section, an owner or operator of a facility or device sited within Oregonís territorial sea, as defined in ORS 196.405, that converts the kinetic energy of waves into electricity shall maintain cost estimates of the amount of financial assurance that is necessary, and demonstrate evidence of financial assurance, for:
(a) The costs of closure and post-closure maintenance, excluding the removal of anchors that lie beneath submerged lands in Oregonís territorial sea, of the facility or device; and
(b) Any corrective action required to be taken at the site of the facility or device.
(3) The financial assurance requirements established by subsection (2) of this section may be satisfied by any one or a combination of the following:
(b) Establishment of a trust fund;
(c) A surety bond;
(d) A letter of credit;
(e) Qualification as a self-insurer; or
(f) Any other method set forth in rules adopted by the director.
(4) In adopting rules to implement the provisions of this section, the director may specify policy or other contractual terms, conditions or defenses necessary to establish evidence of financial assurance.
(5)(a) The owner or operator of a facility or device described in subsection (2) of this section must provide the evidence of financial assurance required under this section for closure, post-closure maintenance and corrective action at the time operation of the facility or device is authorized.
(b) By January 31 of each subsequent calendar year, the owner or operator of the facility or device must update the information required under this subsection with the Department of State Lands.
(6) When financial assurance is required for corrective action at the site of a facility or device described in subsection (2) of this section, the owner or operator shall provide evidence of financial assurance before beginning corrective action.
(7) An owner or operator required to provide financial assurance under this section shall establish provisions satisfactory to the director for disposing of any excess moneys received or interest earned on moneys received for financial assurance. [2007 c.591 §3]
Note: Section 4, chapter 591, Oregon Laws 2007, provides:
Sec. 4. Section 3 of this 2007 Act [274.867] applies to all applications for authorization to operate a wave energy facility or device issued on or after July 1, 2007. [2007 c.591 §4]
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Last modified: August 7, 2008