Board discusses Solar Power Purchase Agreement; staff asked to prepare RFP for next meeting

At the June 16 Oak Brook Park District meeting, consultant Jim Belden briefed the board on solar procurement options and recommended a Power Purchase Agreement (PPA) as a lower-risk path given potential changes to federal tax incentives.

Belden told the board that an investment tax credit would expire 60 days after the reconciliation bill is signed into law and that a PPA shifts equipment, installation and maintenance responsibility to a solar investor. He described typical PPA terms as 15 to 20 years, with a fixed, non-escalating contracted rate not tied to actual solar production, and noted that warranties for panels are commonly written for 20 years under Illinois practice.

Attorney Steve Adams asked whether contract language should address loss of incentives; Belden agreed that contractual variables for potential incentive changes should be included. Commissioners asked about panel degradation and warranties; Belden said typical efficiency degradation concerns are addressed in warranties and monitoring, and that the Park District purchasing energy under a PPA is not directly at risk for equipment replacement costs.

Deputy Director Bob Johnson asked the Board whether staff should issue a Request for Proposal (RFP) for a Solar PPA provider and said several other Park Districts are already pursuing PPAs. Commissioners Gondek and Ivkovic Kelley indicated they would move forward with staff pursuing an RFP; Commissioner Chan opposed pursuing the RFP; Commissioner Vescovi asked for additional information about other participating institutions and contract durations. Johnson said staff would return with an RFP recommendation at a future meeting.