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City studies lease transfer and power‑purchase deals as Horn Rapids solar site developer seeks expansion
Summary
City staff described a potential transition of the Horn Rapids solar storage training site that would transfer the lease to the city, combine power‑purchase agreements and subleases, and could add roughly 10 MW of capacity; tax‑credit timelines (safe harbor) were cited as accelerating a June decision window.
Energy Services Director Clint Whitney briefed the Richland City Council on a potential owner transition and expansion at the Horn Rapids solar storage training site that could allow additional solar generation and a larger storage footprint.
Whitney said the developer believes roughly 10 megawatts could be developed on remaining acreage and that the city appears in the chain of agreements in four ways: transfer the existing site lease into the city's name, combine the existing and new power purchase agreements, and issue two subleases (one to the primary developer and one to Energy Northwest to continue operating battery storage). Whitney said the city would be able to hold a developer accountable for production and removal obligations by holding the lease.
Timing pressure: Whitney flagged a tax‑credit "safe harbor" deadline of July 4, 2026 that could accelerate the developer's interest in completing agreements; he said staff anticipate multiple agreements coming forward in June and, if approved, construction would begin later in 2026 with potential online dates in 2027.
Why it matters: The city currently obtains most of its power from Bonneville Power Administration and purchases a small share from the training site; the proposed expansion could provide an additional ~1.8% of the city's power needs under purchase terms Whitney outlined and would help the city meet increasing renewable purchase requirements under state law.
Questions from councilors addressed panel disposal responsibility (stated as the developer's obligation under lease), the need for recyclability planning and current limits of landfill disposal, and typical grid‑storage duration (about four hours for present systems). Whitney said alternative projects (e.g., Ruby Flats) are also being pursued to meet renewable requirements.
Representative quote: "There'll be four different agreements potentially coming in the second quarter, which basically June, time frame," Whitney said.
Ending: Staff warned of multiple future council agreements (lease transfer, PPA, subleases) and recommended continued review of terms and timelines to protect city interests.
