1. Solar Photovoltaic Renewable Energy Initiative – Phase II Joe Mouawad, P.E. Senior Director of Engineering Greg Kowalski, P.E. Senior Civil Engineer March 16, 2016 www.emwd.org 1

2. Background www.emwd.org 2 Solar Photovoltaic renewable energy generating facilities at existing load serving facilities o Regional Water Reclamation Facilities o Desalination Facilities 1 Megawatt per site, 5 sites Offset energy usage, average 30% reduction Design/Build Delivery Construction o Cost - $14.6M  Stronghold Engineering  SolarCity Corporation o Change Orders - $ 22k net o Substantially complete CSI Reservation – May 2016 o Total Incentives - $6M Regional Water Reclamation Facility Location Map Moreno Valley RWRF San Jacinto Valley RWRF Temecula Valley RWRF Sun City RWRF and Desalter Perris Valley RWRF

3. CSI reserved at Step 9 of 10 Steps (all facilities) o Step 9 – 11.4 cents per kWh All steps currently exhausted Estimated Incentives o Approximately $1.2 M per year o Total all sites  $6 Million www.emwd.org 3 California Solar Initiative (CSI) California Leads the Nation - 479,507 solar projects - 3,790 megawatts installed - $5.32 avg cost/watt <10kW - $4.29 avg cost/watt >10kW data sources: http://www.gosolarcalifornia.ca.gov/data sources

4. Cost/Benefit Analysis www.emwd.org 4 Year kWhAverage UtilityEstimatedOperationCSI Incentives ProductionRates w/4%Net MeteringMaintenance@ Step 9Annual SavingsCumulative Degradation RateAnnualCost Savingsandper kWh producedO&M Costs IncludedSavings Set at.5% AnnuallyEscalation Repair Costsfor 5 years 1 10,971,607 $ 0.1060 $ 1,169,480 $ - $ 1,238,694 $ 2,408,175 2 10,916,749 $ 0.1102 $ 1,210,178 $ 152,829 $ 1,232,501 $ 2,289,850 $ 4,698,025 3 10,862,165 $ 0.1146 $ 1,252,292 $ 153,672 $ 1,226,338 $ 2,324,959 $ 7,022,984 4 10,807,855 $ 0.1192 $ 1,295,872 $ 154,539 $ 1,220,207 $ 2,361,540 $ 9,384,524 5 10,753,815 $ 0.1240 $ 1,340,969 $ 155,433 $ 1,214,106 $ 2,399,642 $ 11,784,166 6 10,700,046 $ 0.1290 $ 1,387,634 $ 156,353 $ - $ 1,231,281 $ 13,015,447 7 10,646,546 $ 0.1341 $ 1,435,924 $ 157,301 $ - $ 1,278,623 $ 14,294,070 8 10,593,313 $ 0.1395 $ 1,485,894 $ 158,277 $ - $ 1,327,617 $ 15,621,687 9 10,540,347 $ 0.1451 $ 1,537,603 $ 159,283 $ - $ 1,378,320 $ 17,000,007 10 10,487,645 $ 0.1509 $ 1,591,112 $ 160,319 $ - $ 1,430,793 $ 18,430,799 11 10,435,207 $ 0.1569 $ 1,646,483 $ - $ 1,646,483 $ 20,077,282 12 10,383,031 $ 0.1632 $ 1,703,780 $ - $ 1,703,780 $ 21,781,062 13 10,331,116 $ 0.1697 $ 1,763,072 $ - $ 1,763,072 $ 23,544,134 14 10,279,460 $ 0.1765 $ 1,824,427 $ - $ 1,824,427 $ 25,368,560 15 10,228,063 $ 0.1836 $ 1,887,917 $ - $ 1,887,917 $ 27,256,477 16 10,176,922 $ 0.1909 $ 1,953,616 $ - $ 1,953,616 $ 29,210,093 17 10,126,038 $ 0.1985 $ 2,021,602 $ - $ 2,021,602 $ 31,231,695 18 10,075,408 $ 0.2065 $ 2,091,954 $ - $ 2,091,954 $ 33,323,649 19 10,025,031 $ 0.2147 $ 2,164,754 $ - $ 2,164,754 $ 35,488,403 20 9,974,905 $ 0.2233 $ 2,240,087 $ - $ 2,240,087 $ 37,728,490 TOTALS 209,315,270 $ 33,004,650 $ 1,408,007 $ 6,131,846 $ 37,728,490 Summary Initial EPC Cost (Phase 2) $ 14,603,357 Program Capital Costs $ 21,845,813 CSI Incentives $ 6,131,846 Net Metering Savings $ 33,004,650 Simple Payback 12 Estimated Average Annual Costs Savings = $1.7 M Estimated 20-yr Cumulative Savings = $ 37.7M Estimated Payback at 4% SCE Rate Escalation = 12 yrs

5. Best Value Selection www.emwd.org 5 Contractor prequalification process o Sunpower, Solar City, Chevron Energy, Borrego Solar, Stronghold/Sun Edison, Synergy Electric/Marathon Electric Design/Build Delivery Design/Build Proposals Evaluation Criteria for Best Value Selection Simultaneous Negotiations for all sites o SolarCity and Stronghold Engineering Technical Design and Construction Expertise Design-Build Cost Proposal and O&M Service Life Cycle Cost, System Performance, and Guarantee Safety Record SCE Expertise and Coordination Construction Schedule Performance Guarantee Terms Design-Build Team Personnel & Organization Proposed Work Plan and Schedule

6. Design-Build Contracts www.emwd.org 6

7. Implementation Process www.emwd.org 7

8. Design-Build Process and Partners www.emwd.org 8 RFP Construction Grade Pads Design-Build Solar Systems D-B Contracts Design-Bid Grade Pads Design-Bid Grade Pads Commissioning Design Construction Green Tag Power Systems Services

9. Inspection and Sign-offs www.emwd.org 9 Applications o NEM/Rule 21 Agreements o Generating Facility Interconnection Agreement (GFIA) o Interconnection Facility Financial Ownership Agreement (IFFOA) “Green Tag” (3 rd party independent inspection) SCE Inspection SCE Permit to Operate (PTO) TVRWRF – Testing of Breakers

10. SCE Coordination www.emwd.org 10 Developed Partnership o Weekly coordination o Account Representative Interface Challenges with SCE o Multiple Departments o No concurrent work allowed  Activities finish to start o Extended review and approval periods SCE and EMWD Partnership

11. Project Status www.emwd.org 11

12. Improvements Required - All Sites www.emwd.org 12 Electrical o Underground Electrical Ductbank and Manholes o Switchgear, Transformers and Switchboards o Existing Switchgear Modifications o Cable and Cable Tray o Inverters o Concrete Equipment Pads o Weather Station o Control Scheme Programming Solar Array and System o Structural Driven Pier Foundation o Structural Single Axis Tracker System o Module Installation o Communication and Control Integration o Preliminary Functional Operation Start- up, Testing and Pre-commissioning PVRWRF – String Inverter

13. Perris Valley RWRF www.emwd.org 13 Status o Green Tag: February 29, 2016 o Conditional PTO: March 1, 2016 o System energized o Remaining work  Install Net Generation Output Meter at Fuel Cells  Final SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim PVRWRF – Equipment Pad

14. San Jacinto Valley RWRF www.emwd.org 14 Status o Green Tag: January 22, 2016 o PTO: February 11, 2016 o System energized o Remaining work  Punch list Items  As-built Drawings  CSI Incentive Claim SJVRWRF – Solar Array

15. SJVRWRF – Solar Array Looking South www.emwd.org 15 Single Axis Tracking System Size – 1 MW 3,680 – 315W SolarWorld Panels 31 String Inverters 8.3 Acres SJVRWRF – Solar Array

16. Moreno Valley RWRF www.emwd.org 16 Status o Green Tag: March 3, 2016 o Conditional PTO: March 11, 2016 o System energized o Remaining work  Install Net Generation Output Meter at Fuel Cells  Final SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim MVRWRF – Solar Array Distribution Panel

17. Sun City RWRF www.emwd.org 17 Status o Arrays complete o Ductbanks complete o Remaining work  Install Electrical equipment »Switchgear, bud duct and switchboard  Install 12kV Cable  Modify existing 12kV Switchgear and Breakers  Control Programming/System Integration  Functional Operational Startup and Testing  Pre-commissioning  Green Tag  SCE Inspection  Install Net Generation Output Meters  SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim SCRWRF Pier Installation

18. Status o NETA Testing ongoing o Remaining Items  Control Programming/System Integration  Functional Operational Startup, and Testing  Pre-commissioning  Green Tag  SCE Inspection  Install Net Generation Output Meters  SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim Temecula Valley RWRF www.emwd.org 18 TVRWRF Chord and Bracket Installation

19. TVRWRF Solar Array Lot A www.emwd.org 19 Fixed Array System Size – 1 MW 3,576 – 310W Trina Solar Panels 29 String Inverters 25-degree tilt (fixed) 4 Acres

20. TVRWRF Solar Array Lot E www.emwd.org 20

21. Stronghold Engineering o Original Contract Amount$ 11,857,741 o Change Orders – to date(NET)$ 76,467 o Total Contract Amount – to date$11,934,208 SolarCity o Original Contract Amount$2,745,616 o Change Orders – to date (NET)$ (54,255) o Total Contract Amount – to date$2,691,361 Combined Total o Total Original Contract Amounts$14,603,357 o Net Change Orders $ 22,212 (0.2%) o Total Contract Amounts$14,625,569 Design-Build Contract Summary www.emwd.org 21

22. Completion Schedule www.emwd.org 22 FacilityGreen TagSCE Permit to Operate -San JacintoJanuary 22, 2016February 11, 2016 -Perris Valley February 29, 2016 March 11, 2016 -Moreno Valley >Main Facility March 3, 2016 March 11, 2016 -Temecula Valley March 25, 2016 April 8, 2016 -Sun City/DesalterApril 1, 2016April 15, 2016 -CSI DeadlineMay 25, 2016 -Final Contract Completion May-16 Staff incorporated lessons learned from the Administrative Facility Solar Project and since has completed five concurrent sites with added complexity, twice the size, and under two headings Facility Online – Feb. 11, 2016 Facility Online – Mar. 1, 2016 - Conditional PTO Facility Online – Mar. 11, 2016 - Conditional PTO

23. Summary and Conclusions www.emwd.org 23 Design/Build is an effective delivery method for this type of program. Five concurrent construction sites delivered on schedule within the CSI timeline. Greater latitude provided to design/build firms which allowed for innovation and efficiency. Construction change order rate extremely low at 0.2% or original contract amount. Collaboration with all stakeholders was effective and resulted in excellent budget and schedule performance.

24. www.emwd.org 24 Contact Information EASTERN MUNICIPAL WATER DISTRICT www.emwd.org Joe Mouawad, P.E. Senior Director of Engineering (951) 928-3777 Ext. 4463 mouawadj@emwd.org Greg Kowalski, P.E. Senior Civil Engineer (951) 928-3777 Ext. 4466 kowalskg@emwd.org