Sen. Gene Yaw, R-Williamsport, speaks during an event earlier this year in his district. Legislation that Yaw sponsored requiring bonding requirements to decommission solar projects was signed into law by Gov. Josh Shapiro on Monday.

Legislation extending state bonding requirements to decommission solar projects has been signed into law by Gov. Josh Shapiro.

The legislation was first introduced by Sen. Gene Yaw, R-Williamsport, in 2022. Sen. Scott Hutchinson, R-Oil City, was among the co-sponsors of the bill in the state Senate while Rep. Kathy Rapp, R-Warren, voted for the bill once it made it to the House of Representatives for approval. Shapiro signed the bill into law on Monday.

Senate Bill 349, now Act 44 of 2026, establishes decommissioning and financial requirements for solar generation projects, ensuring landowners won’t bear the burden of dismantling solar facilities once they cease operation. The proposal includes a graduated phase-in process for financial assurances, setting up five-year benchmarks using third-party professional engineers to assess and calculate fair market value of the project and costs to decommission it.

“This new law establishes a clear framework for the responsible development of solar projects in Pennsylvania,” Yaw said. “It requires developers to plan for the full life cycle of their projects and provides greater accountability for what happens when those facilities are no longer in operation. By putting these expectations in place from the start, Pennsylvania is taking a more thoughtful and responsible approach to solar development.”

The bill was overwhelmingly approved in both the Senate and the House of Representatives in a bipartisan manner. Yaw noted the measure is supported by the Pennsylvania Farm Bureau, as well as several solar associations.

Before the passage of Act 44 there was no statewide protocol or bonding requirement to ensure that solar energy facilities are removed and the land restored once the solar projects stop producing power. Decommissioning requirements had been a patchwork of local ordinances around the commonwealth or what had been included in solar power leases. Yaw’s proposal requires any new solar energy facility agreements contain a provision stating that the solar company is responsible for decommissioning the solar energy facility, generally within 18 months after the facility stops producing electricity. There are no penalties for solar projects that don’t already contain such a provision. Yaw’s bill also requires proof of financial assurance to pay for decommissioning by requiring proof of financial insurance, like surety bonds, to provide a source of funding to decommission solar projects if the operator doesn’t pay the costs.

Similar requirements exist for coal, natural gas, solid waste and other industries in Pennsylvania, but Yaw handles those requirements differently by having county recorders of deeds handle the decommissioning plans and provide notice to the surface property owner. Act 44 also requires solar energy facility operators to submit decommissioning plans and proofs of financial assurance to the county recorder of deeds office no more than 30 days before construction of the solar energy facility begins, and then again every five years.

Tim Pawlenty, president and CEO of the Solar Energy Industries Association, signaled approval for Act 44 on Tuesday.

“This is a bipartisan win for energy affordability, economic strength, and supporting landowners in Pennsylvania,” Pawlenty said. “Senate Bill 349 provides clear expectations for developers and landowners while ensuring developers are responsible for meeting state requirements. The solar and storage industry applauds Governor Shapiro, Senator Yaw, and lawmakers on both sides of the aisle for delivering this common-sense solution for Pennsylvania.”