Finance Committee postpones solar-array decision pending grant and incentive clarity

The Wausau Finance Committee on March 10 postponed consideration of engineering and construction for a proposed solar array at the city’s water treatment facility until the city receives EPA grant results and can refine the project’s net cost.

Committee members described a multi-year public process that produced several size-and-cost scenarios; the capital budget currently includes a $2.8 million option expected to supply roughly three-quarters of the treatment plant’s average power needs. Director Eric Lynman said the city has applied for an EPA grant of about $1.1 million and may be eligible for tax incentives that would cover a substantial portion of the remaining cost, but the precise final city obligation was not available at the meeting.

"We applied for a grant and the EPA said we'd hear in May," Lynman said, adding that staff had run scenarios but did not have final numbers available in the packet.

Alders pressed staff for clarity on how incentives and the grant would combine. Alder Grainer asked whether tax credits (discussed at roughly 30% in staff materials, with additional credits possible) would be calculated on the gross project cost or the amount after the grant. Lynman said staff had not yet confirmed that technical detail with the agencies.

Committee members and staff also discussed schedule constraints tied to incentives. Lynman said some incentives expect a meaningful portion of construction to start by July 4 and that the project must be operational by the end of 2027 to meet other program requirements; he warned new "Buy American" procurement limitations could narrow supplier choices and affect cost.

Public commenter Deb Hapa, whose neighborhood adjoins the proposed site, told the committee she and other neighbors opposed the array and criticized the project’s transparency and neighborhood outreach. "Every session the people were very clear they did not want this solar array," she said, adding she believed the city could not afford the project without affecting other priorities.

Given the outstanding grant and incentive questions, Alder Watson moved and Alder Griner seconded a motion to postpone action until the city has EPA grant information; the motion carried. Lynman said staff would monitor grant developments and return when more complete financial information was available.

The committee’s decision pauses any engineering or procurement commitments beyond limited near-term design tasks. The committee indicated it remains interested in the potential of the array to reduce long-term water-rate pressure if federal and tax incentives materialize.