Silt & Sediment
Silt and sediment are fine-grained soil particles that can migrate in surface water run-off during a rain event, an accidental water pipe break, or excessive watering for dust suppression. During construction activities, a large proportion of bare ground and exposed earth leaves soil highly vulnerable to erosion by wind and water. Inadequate erosion control can lead to surface run-off of these soil particles, impairing the proper functioning of stormwater drainage systems, causing ecological damage to streams and rivers, and causing adjacent property damage. Control of silts/sediments is required under the Clean Water Act, and contractors and solar farm owners may face regulatory action such as cleanup orders, fines, and penalties from federal, state, or local regulators.
Stormwater Run-off
Stormwater run-off could come in contact with chemicals, debris, wastes, and other outside storage. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drainage systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.
Neighboring Properties
Contaminated stormwater run-off from adjacent properties could migrate onto solar farm properties, creating environmental liability. The liability burden could be placed on the solar farm’s owner if the contamination’s originator becomes insolvent or the source of the contamination cannot be confirmed.
Illicit Abandonment
Illicit abandonment is the illegal dumping of pollutants on a property by a third party. It can become the property owner’s burden for cleanup and third-party bodily injury or property damage if law enforcement cannot locate the originator of the waste.
Pesticides
Solar farm properties could have previously been used as farmland, orchards, or vineyards and may have been exposed to pesticides. The term pesticide covers many compounds, including insecticides, rodenticides, molluscicides, nematicides, plant growth regulators, and others. Applied pesticides can leach through the soil, migrate into groundwater, or become mobile through run-off drift and enter surface water or adjacent properties. Pesticide contamination can impact the drinking water supply and cause natural resource damage to non-target organisms, ranging from beneficial soil microorganisms to killing bees, wildlife, and aquatic systems.
Groundwater Contamination
Existing soil or groundwater contamination may be on, under, or adjacent to a property, resulting in potential environmental liability. Without knowledge of existing contamination at the site, the property owner may be held responsible for addressing the property’s cleanup or remediation.
Vadalism
Inadequate security at a solar farm can allow vandalism to occur. Damage to facility equipment, such as solar panels, aboveground tanks, or containers of chemicals, can result in environmental releases.
Hazardous Waste Management
Solar panels are manufactured using hazardous materials such as lead, cadmium, sulfuric acid, silica, and chromium and are considered a form of toxic, hazardous electronic waste. Disposed materials can pose an environmental liability if toxic materials leach out and contaminate soil and water supplies. Improper disposal could lead to cleanup and third-party liability, and there may be legal consequences for violating RCRA hazardous waste requirements.
Environmental Pollution Liability Can Provide Coverage For
On-site cleanup of new and pre-existing pollution conditions
Off-site cleanup of new and pre-existing pollution conditions
Third-party claims for cleanup costs
Third-party claims for bodily injury and property damage
Both sudden and gradual pollution conditions
Defense of third-party claims
First-party and third-party transportation pollution liability
Non-owned disposal sites (NODS)
Business Interruption expenses resulting in pollution conditions
Civil fines and punitive damages, where allowed by state law
Loading and unloading
Aboveground and underground storage tanks
Mold, bacteria, legionella, and more
Natural resource damage
Emergency response expenses
Illicit abandonment