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Wausau submits EPA grant application for $1.18M toward $2.5M solar array; construction timing tied to tax credits
Summary
The Waterworks Commission voted Oct. 7 to submit a U.S. EPA grant application seeking up to $1,180,000 for a solar array at the water treatment facility; the project’s estimated cost is $2.5 million and staff said starting construction before July 1, 2026, would be necessary to secure certain tax credits.
The Wausau Waterworks Commission on Oct. 7 approved submission of a U.S. EPA grant application seeking up to $1,180,000 toward a proposed $2.5 million solar array at the municipal water treatment facility at 1010 Bug B Avenue.
"The estimated cost of the project is 2,500,000," Eric, director of utilities, said, and staff noted an EPA grant request for $1,180,000 was submitted late on Oct. 6. Commissioners approved the grant submission (motion to approve moved by the Mayor and seconded by Alder Watson) and staff confirmed it will go forward to the city council for any final budget or borrowing decisions.
Tax credits and timeline: Staff cautioned that certain federal tax credits and prevailing wage or domestic‑sourcing rules could affect project economics and timing. To secure applicable tax incentives staff said construction likely must begin before July 1, 2026, and that an award from EPA would not be announced until about May 2026. "A lot of this stuff is gonna have to be done, you know, simultaneously... That will likely happen before we find out what happens on this grant," Eric said, describing the need to progress design and procurement while the grant review is pending.
Competition and scope: Staff said the EPA grant is nationwide and expected to be competitive; the grant program indicates only a small number of awards are anticipated. Staff said the city has completed conceptual design (roughly 25–30% design) and used leftover consultant fees to support the application write‑up.
Next steps: If the city pursues the project, the council would need to decide whether to authorize borrowing or other funding to begin construction on the timeline required to capture tax credits; any outside grant or tax‑credit awards would reduce borrowing needs.
Ending: The commission approved the grant submission and asked staff to keep the commission informed as the grant review and council deliberations proceed.
