Council approves 20‑year solar PPA, city retains environmental attributes

The Burlington City Council on April 20 approved a resolution authorizing a 20‑year power purchase agreement (PPA) with Red Lion Burlington Solar LLC to install and operate solar photovoltaic systems at two city‑owned locations: the animal shelter and the RecPlex parking facility.

City negotiator Mr. Byrd told council the agreement leaves the city with full ownership of the project’s “environmental attributes” — the tracking of greenhouse‑gas reductions and renewable energy credits — allowing the city to claim or monetize those benefits separate from the electricity itself. Byrd explained: “Environmental attributes are the environmental benefits created when the solar system generates clean electricity such as reduced greenhouse gas emissions and renewable energy credits,” and added “we're not just buying solar power we're also owning the environmental value that comes with it.”

The PPA was described as having no upfront infrastructure cost to the city; instead Burlington would buy power from the provider under the contract. Byrd also explained the buyer’s purchase option at the end of the term: any city buyout would be at fair market value determined by negotiation or appraisal, not a nominal dollar‑amount buyout, because a dollar buyout is not permissible under IRS rules.

Council members asked questions; staff said changes requested by city attorneys were accepted by the provider and that a signed agreement was pending but that the council was being asked to approve the authorization to enter the PPA. The resolution passed on a recorded vote with all members voting in favor.

Next steps: staff will finalize the agreement language and proceed with implementation at the two sites after the provider executes the contract. No dollar amounts for projected power costs were presented in the hearing record.