Page 85 - Beyond Decommissioning

66 Beyond Decommissioning

owners could be interested in investing their own resources for a profit, this is not
always realistic and supplementary resources should be provided by the authorities
in the light of broader interests (e.g., environmental, regional development, etc.).
Financial resources can include rehabilitation loans, tax credits or abatements, etc.
Technical assistance can also be provided including permit streamlining, flexible
rehabilitation codes, referrals to private consultants and contractors, coordination with
nonprofits, and other local agencies.
In the United States, the EPA-managed Superfund program (see Glossary) has
increased the amount of federal funds for brownfield cleanup. The Federal EPA
Brownfields Office and regional offices are sources of funding, such as grants and
loans to assist in the cleanup process. Most federal and state brownfields programs
offer market-based incentives and limitations on liability to foster brownfields rede-
velopment. In certain cases, local assistance can help with cleanup costs.
Redeveloping a brownfield site is often urged by the owners whose properties have
been contaminated. The small size of some brownfields can make them hard to market
to investors. Often the people with the strongest motivation to redevelop these sites are
neighbors, who seldom have the specialist knowledge, the understanding of complex
regulations, or the financial resources to manage a complicated remediation/
redevelopment case.
Normally a completed site characterization and the identification of resources mark
a decision point. In general, when plants are situated near population centers or near
amenities raising strong demand for land, owners can feel financially prompted to
either sell the site as-is or fully decommission and remediate it for redevelopment.
For remotely located plants or other areas with weak demand for land, owners have
less financial interest to fully decommission and remediate a site, which may result in
prolonged inactivity. In other locations, available access to natural gas pipelines, elec-
tricity grid, or other infrastructure may encourage power plant owners to repower (i.e.,
build new generating units) at the site.
Regardless of location, the power plant owner will assess the value of their exis-
ting assets together with the costs incurred under each of the four below-mentioned
options.

1. Keep the plant ready for restart. If not restarted, the owner will ultimately embark on one of
the remaining options below (Fig. 3.2). Well-maintained plants can be kept in this standby
condition for a long time.
2. Take the plant to a mothballed condition. The owner performs limited D&ER and partial
demolition, then secures the site. The facility is left as-is, and its future remains undefined.
The owner is still subject to environmental liabilities and financial obligations.
3. Decommission and/or reuse the site (repower being a subordinate option). The planned
end use of the facility will determine the extent of demolition and remediation works,
if any.
4. Sell the plant as-is. Depending on the physical condition and contamination of the units and
the site, the owner may find a buyer who will take responsibility for the redeveloping of the
site. The new owner takes over the site’s environmental liabilities and financial obligations.
However, should the new owner go insolvent, environmental liabilities may or may not go
back to the former owner (see Box: A difficult case of redevelopment) (Raimi, 2017).