1. Solar Power Project at the Sacramento Regional Wastewater Treatment Plant August 26, 2015

2. Background June 2014: Staff provided Board update on potential solar projects –Staff was directed to explore project alternatives December 2014: Board approved an agreement with Sage Renewables to: –Conduct Feasibility Study –Procure a Solar Contractor –Conduct CEQA –Negotiate a Power Purchase Agreement

3. EchoWater Project GHG mitigation EchoWater Project Final Environmental Impact Report −Includes mitigation requirement for greenhouse gas emissions −A solar energy project is an option considered to meet the mitigation requirement −Solar projects being considered are sized to fulfill the mitigation requirements over 25-year design life of system

4. SRWTP and energy use SRWTP is one of SMUD’s largest energy users −Annual energy costs are over $10 million Usage over 100,000,000 kwh per year −Equivalent to energy used by approximately 12,000 homes −Will increase in future due to EchoWater Projects being considered would offset approximately 7% of current usage

5. SRWTP property 3,500 total acres Process area 900 acres 2,600 acres of Bufferlands

6. Locating a solar project – Feasibility Study Key considerations: −Avoid conflicts with plant operations and construction −Minimize impacts to neighbors −Preserve Bufferlands open space areas −Cost reduction with areas most suitable for solar

7. Roof top solar Considered but ultimately eliminated due to cost −Existing roofs are near the mid-point of their service life −Roof replacement now or during the lifetime of the solar panels would increase cost of the systems such that they are no longer financially efficient

8. Solar energy – project structure Regional San would enter into a “power purchase agreement” −Purchase all energy produced −Flat rate over 25-year term −Performance guarantee for minimum level of production Solar developer would finance and own the system and be responsible for all costs and risk −Engineering, permitting, construction, operation, maintenance, decommissioning

9. Alternative 1 Parking Lot + North East Area

10. Alternative 2 Parking Lot + Misc. Process Areas + DLD 7

11. Alternative 3 Parking Lot + DLD 7

12. Alternative 4 DLD 7

13. Financial Summary Current annual average SMUD rate is $0.0913 per kilowatt hour

14. Recommended project locations: Alternative 3

15. Recommended project locations detail

16. Solar energy project benefits Estimated financial benefits −Approximately $5 million over 25-year term −Potential that financial benefit could be applied to Bufferlands restoration, sustainability and outreach efforts Environmental benefits −Clean and sustainable energy source Other benefits −Fulfill required greenhouse gas mitigation −Diversify Regional San’s green energy portfolio

17. Soliciting public input Held two public meetings −Invited property owners from neighborhood south of Dwight Road via direct mail (600+) −Invited large list of environmental stakeholders via email −No aesthetic or visual concerns mentioned −Largest response from environmental stakeholders over impact to Bufferlands

18. Solar project concerns Environmental concerns –Although project is in future process area, conflict with some of the policies and objectives of the Bufferlands Master Plan Open SpaceWildlife HabitatAesthetics Management of Special Status Species Minimization of Permanent Structures

19. Today’s recommended actions Approve staff’s recommendation of the preferred alternative for a solar project Direct staff to begin the California Environmental Quality Act process

20. Questions?

21. Timeline Aug 2015: Begin CEQA work and develop RFP Nov 2015: Issue draft CEQA document Dec 2015: Issue RFP Feb 2016: Board approval CEQA and PPA contract Mar 2016: Solar system design May 2016: Construction Sept 2016: Interconnection, system operational

22. Open Space Connectivity

23. Environmental Stakeholders

24. What would a solar energy project look like? Parking canopies Fixed tilt ground mount