Phase 3 Solar Renewable Energy Initiative - Site Improvements Greg Kowalski, P.E. November 21, 2017

Phase 3 Solar Initiative Strategic Plan Goal: Net Energy independence Plan and cost effectively implement local renewable energy projects with sufficient generation to meet the District’s net energy demands. Objective: Implement cost effective additions or expansions of solar power generation Net Energy Metering (NEM 2.0) Renewable Energy Self-Generation Bill Credit Transfer (RES-BCT) San Jacinto Valley RWRF Solar Arrays

Phase 3 Solar - Power Generation Approximately 14.3 MW of additional Solar Photovoltaic Systems Power Purchase Agreement (PPA) Estimated savings of $25.2 million over 25 years Project In-Service Date Projects Installed MW’s Installed Anticipated Annual Production (kWh) Fuel Cell- MVRWRF Fuel Cell- PVRWRF 2009 2012 2 1.5 11 million (85% Rated Output) Phase 1 Solar 2014 1 0.5 1.3 million Phase 2 Solar 2015 5 5.0 12 million Total (2017) 8 7.0 24.3 million * Phase 3 Solar 2020 14.3 29.6 million Total (Future) 13 21.3 53.9 million * Purchased Electricity (2017) = 100 million kWh

Phase 3 Solar Project Sites MVRWRF NEM 2.0 SJVRWRF- North RES-BCT SJVRWRF NEM 2.0 PVRWRF NEM 2.0 SCRWRF/Desalters NEM 2.0

Feasibility Recommendations/Next Steps Confirm Market Pricing: Secure firm PPA rate pricing from the market by advancing an RFP process (structured specifically for solar energy PPA Providers) Consider bundling all five projects in a single RFP process to leverage the benefits of economies of scale, which will result in more favorable PPA pricing Update Savings Pro-Formas: Use the PPA rate pricing obtained from the RFP process to verify net saving projections by updating the cash flow pro-formas Site Preparation: Proceed with professional services agreements Site design (Civil, Earthwork/Grading, Geotechnical, Survey) CEQA Proceed with SCE Interconnection Applications Concurrent schedule

Site Preparation - Scope of Work Negotiated design services scope with Parsons ($229,680) Project Management Meetings and Communication Earthwork Strategy Memorandum Quantify soil import Identify sources of soil import Survey and Geotechnical Coordination Construction Contract Documents Plans and Specifications Construction Cost Estimate Bid Phase Services Parsons successfully provided similar professional services for previous Phases of EMWD’s Solar Program

Schedule

Budget

Recommendations Execution by the General Manager, or his designee, of the District’s standard form of contract with Parsons, Inc., for engineering design of the site grading improvements for the Phase 3 Solar Renewable Energy Initiative, in the amount of $229,680; Administrative award and execution by the General Manager, or his designee, of the District’s standard form of necessary contracts and agreements for the implementation of new or expanded solar power opportunities as part of the Solar Renewable Energy Initiative; and Appropriation in the amount of $490,900 to fund project costs though the approval and award of a potential PPA contract(s) and related site improvement construction contract(s). Moreno Valley RWRF Solar Arrays – Existing and Proposed

Contact Information Greg Kowalski, P.E. Sr. Civil Engineer (951) 928-3777, Ext. 4466 Email: kowalskg@emwd.org