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Resolution No. 2012-165RESOLUTION NO. 2012-165 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A PHASE II RENEWABLE DEVELOPMENT AGREEMENT BY AND BETWEEN THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITIES OF ANAHEIM, AZUSA, BANNING, BURBANK, CERRITOS, COLTON, GLENDALE, PASADENA, RIVERSIDE, THE IMPERIAL IRRIGATION DISTRICT, THE CITY OF LOS ANGELES ACTING BY AND THROUGH THE DEPARTMENT OF WATER AND POWER, AND THE CITY OF VERNON WHEREAS, several cities entered into a Joint Powers Agreement dated November 1, 1980, to create the Southern California Public Power Authority ("SCPPA") pursuant to the provisions of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, as amended; and WHEREAS, on December 16, 1980, the City Council of the City of Vernon adopted Resolution No. 4765 agreeing to the provisions of the Joint Powers Agreement in order to become a member of SCPPA; and WHEREAS, the SCPPA and SCPPA Members have developed a Phase II Renewable Development Agreement (the "Agreement") to carry forth renewable energy resource acquisition efforts from the present time and 2020, and to assist members in reaching their 2020 renewable energy goals; and WHEREAS, the Agreement will allow SCPPA Members to participate with other members of SCPPA in the planning, investigation, diligence efforts and the potential development of new renewable resourceoptions; and WHEREAS, by memo dated August 13, 2012, the Direct of Light & Power has recommended that the,agreement between SCPPA and SCPPA members be approved and executed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of. the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Agreement with the Southern California Public Power Authority, in substantially the same form as the copy which is attached hereto as Exhibit A. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute the Agreement for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any nonsubstantive changes to the Agreement attached herein. .SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or the City Clerk's designee, to send one executed Agreement to: Southern California Public Power Authority Attn: Randy Howard 1160 Nicole Court Glendora, CA 91740 - 2 - SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 21st day of August, 2012. � n Name: William J. Davis Title: *Layez;�,/ Mayor Pro-Tem - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2012-165, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, August 21, 2012, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of August, 2012, at Vernon, California. (SEAL) 7 - 4 - AN PHASE II RENEWABLE DEVELOPMENT AGREEMENT BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF ANAHEIM; THE CITY OF AZUSA; THE CITY OF BANNING; THE CITY OF BURBANK; THE CITY OF CERRITOS; THE CITY OF COLTON; THE CITY OF GLENDALE; THE IMPERIAL IRRIGATION DISTRICT; THE CITY OF LOS ANGELES ACTING BY AND THROUGH THE DEPARTMENT OF WATER AND POWER; THE CITY OF PASADENA; THE CITY OF RIVERSIDE; THE CITY OF VERNON (AS APPPLICABLE) DATED FOR CONVENIENCE AS OF JULY 18, 2012 TABLE OF CONTENTS SECTION PAGE 1. PARTIES, PHASE II RENEWABLE DEVELOPMENT AGREEMENTS TO BE SEPARATELY AND INDIVIDUALLY EFFECTIVE .................................................... 1 2. RECITALS........................................................................................................................ 2 3. AGREEMENT ................................................ :................................................................ 12 4. DEFINITIONS.................................................................................................................12 4.1 Acquisition..................................................................:........................................13 4.2 Act........................................................................................................................13 4.3 Additional Party ...........................................................:.......................................13 4.4 Agreement............................................................................................................14 4.5 Board of Directors ..................................... :............................................. ............. 14 4.6 Consolidated Coordinating Committee................................................................14 4.7 Entitlement Share .......................................... :...................................................... 14 4.8 Estimated Monthly Renewable Development Work Costs.................................14 4.9 Executive Director...............................................................................................14 4.10 Financing Work...................................................................................................14 4.11 Joint Powers Agreement......................................................................................15 4.12 LADWP...............................................................................................................15 4.13 Participation Agreements.....................................................................................15 4.14 Party.....................................................................................................................16 4.15 Power Sales Agreement.......................................................................................16 4.16 Power Sales Agreement/Transmission Services Agreement Work.....................16 g 4.17 Phase I.....................................................................................:............................16 4.18 Phase I Agreement...............................................................................................17 4.19 Phase I Coordinating Committee.........................................................................17 4.20 Phase II........................................................................:........................................17 4.21 Phase II Agreement..............................................................................................17 4.22 Phase II Coordinating Committee........................................................................17 4.23 Phase II Project....................................................................................................17 4.24 Pre -Operation Costs..............................................................................................18 4.25 Project..................................................................................................................19 4.26 Project Representative and Contract Administrator............................................19 4.27 Project Agreements .... :......................................................................................... 19 4.28 Project Element......................................................................................I..............20 4.29 Project Element Determination............................................................................ 20 4.30 Project Element Participant..................................................................................21 4.31 Project Manager.....................................................................:.............................21 Phase II Renewable Development Agreement i 4.32 Project Matter.......................................................................................................21 4.33 Prudent Utility Practice........................................................................................21 4.34 Renewable Development Work..........................................................................422 4.35 Renewable Development Work Costs.................................................................24 4.36 Renewable Development Work Cost Share...........................:.............................24 4.37 Renewable Electric Energy Generation Resource...............................................24 4.38 Renewable Electric Energy Resource..................................................................25 4.39 Renewable Electric Energy Resource Project......................................................25 4.40 Renewable Electric Energy Transmission Resource...........................................25 4.41 Renewable Electric Energy Storage Resource.....................................................25 4.42 Renewable Portfolio Standard.............................................................................25 4.43 Required Concurrence.........................................................................................26 4.44 Transmission Services Agreement.......................................................................26 5. PROJECT MANAGER................................................................................................... 26 5.1 Appointment......................................:................................................................. 26 5.2 Term.....................................................................................................................27 5.3 Authority of the Project Manager........................................................................27 5.4 Duties and Responsibilities of the Project Manager............................................28 5.5 No Warranty for Project Manager Services.........................................................35 5.6 Indemnification of the Project Manager..............................................................35 6. RENEWABLE DEVELOPMENT WORK BUDGET; SCHEDULE; COSTS; ANDAUDITS................................................................................................................. 36 6.1 Initial Budget, Not to Exceed Costs..................................................................... 36 6.2 Initial Schedule.................................................................................................... 38 6.3 Renewable Development Work Costs................................................................. 38 6.4 Renewable Development Work Cost Share.........................................................41 6.5 Costs of Expenses Incurred for Sole Benefit of Purchaser .................................. 41 6.6 Final Audit of Renewable Development Work Costs and Pre -Operation Costs..................................................................................................................... 42 6.7 Interim Audit of Renewable Development Work Costs and Pre -Operation Costs...............................................................................:..................................... 42 7. PAYMENT OF RENEWABLE DEVELOPMENT WORK COSTS AND PRE - OPERATION COSTS..................................................................................................... 42 7.1 Payment of Costs.......................................................................I.......................... 43 7.2 Payment of Invoices............................................................................................. 43 7.3 Disputed Invoices.................................................................................................44 7.4 Adjustments to Billings........................................................................................ 44 7.5 Incurrence of Pre -Operation Costs .......... :....... :.................................................... 44 7.6 Other Additional Cost Reconciliation Mechanisms ............................................ 44 8. COORDINATING COMMITTEE..................................................................................45 8.1 Formation.............................................................................................................45 Phase II Renewable Development Agreement ii 8.2 Duties and Responsibilities of the Coordinating Committee ............................... 48 8.3 Arranging for Audits of Project Manager's Records ........................................... 52 8.4 Establishment of Other Committees.................................................................... 53 8.5 Limited Authority of Coordinating Committee to Amend Agreement ............... 53 8.6 Written Records to be Kept.................................................................................. 54 8.7 Cost Incurred by Representatives of Participants ................................................ 54 9. ROLE OF THE PARTICIPANT, THE BOARD OF DIRECTORS AND THE SCPPA EXECUTIVE DIRECTOR.................:............................................................... 54 9.1 Project Matter Voting Methodology.................................................................... 54 9.2 Participant's Project Representative and Contract Administrator ........................ 55 9.3 Duties and Responsibilities of the Board of Directors ........................................ 56 9.4 Audits...................................................................................................................60 9.5 Establishment of Other Committees.................................................................... 60 9.6 Delegation..............................................................................60 10. OBLIGATIONS OF THE PARTIES...............................................................................60 10.1 Furnishing Studies to SCPPA.............................................................................. 60 .10.2 Participant's Payment Obligations Unconditional; No Release of Project Manager from Its Obligations; Action by Parties Against Third Parties or Underthis Agreement.......................................................................................... 61 10.3 Parties to Furnish Information............................................................................. 61 ] L WITHDRAWAL.............................................................................................................. 62 11.1 Withdrawal from the Project................................................................................ 62 11.2 No Reimbursement of Costs upon Withdrawal, Exception ................................. 63 12. PARTICIPANT'S ELECTION TO PROCEED WITH THE PROJECT ........................ 63 12.1 Action of the Parties at or near the Conclusion of Renewable Development Work.................................................................................................................... 63 12.2 Exercise of Election to Proceed with the Project ................................................. 64 13. EXECUTION OF PROJECT AGREEMENTS............................................................... 64 14. LIABILITY...........................................................................................:..........................65 14.1 No Liability of the SCPPA or the Project Manager, their Directors, Officers, Employees, Etc.; SCPPA and its Directors, Officers, Employees and Project Manager and its Directors, Officers, Employees Not IndividuallyLiable............................................................................................... 65 14.2 Limitation on Liability......................................................................................... 67 14.3 Extent of Exculpation; Enforcement of Rights in Equity .................................... 67 14.4 Allocation of Costs to Discharge Liability .......................................................... 68 14.5 No Relief of Insured Obligations......................................................................... 70 15. DEFAULT....................................................................................................................... 70 Phase II Renewable Development Agreement iii 15.1 Notice of Default.................................................................................................. 70 .15.2 Obligation to Cure Default................................................................................... 71 15.3 Initial Dispute Resolution of Alleged Default ..................................................... 71 16. ARBITRATION.............................................................................................................. 73 17. RELATIONSHIP OF PARTIES...................................................................................... 73 17.1 Individual Responsibility.....................................................................................74 17.2 Methodologies for Cost Sharing.......................................................................... 74 18. BINDING OBLIGATIONS............................................................................................. 74 19. ASSIGNMENT...........................................................................................................I....74 19.1 Limited Assignment Rights.................................................................................74 19.2 Assignment Procedures........................................................................................ 75 19.3 Effectiveness of Assignment................................................................................ 76 20. GENERAL PROVISIONS.............................................................................................. 76 20.1 Waiver Not to Affect Subsequent Defaults......................................................... 77 20.2 Execution in Counterparts.................................................................................... 77 20.3 No Rights in Third Parties or Duties Created ...................................................... 77 20.4 Headings Not Binding.......................................................................................... 77 20.5 Severability.................................... :...................... ............................................... 77 20.6 Amendments........................................................................................................ 78 20.7 Entire Agreement.................................................................................................78 21. GOVERNING LAW AND VENUE............................................................................... 78 22. EFFECTIVE DATE AND TERMINATION..................................................................78 22.1 Effective Date...................................................................................................... 78 22.2 Termination..........................................................................................................78 23. NOTICES.........................................................................................................................80 23.1 Addresses for Notices.......................................................................................... 80 23.2 Designation of Different Addresses and Persons ................................................. 82 24. DESIGNATION OF PURCHASER'S PROJECT REPRESENTATIVE AND CONTRACT ADMINISTRATOR.................................................................................. 83 25. AGREEMENT TO BE EFFECTIVE AS BETWEEN SCPPA AND PARTICIPANT UPON APPROVAL BY PARTICIPANT APPROVING AUTHORITY.................................................................................................................. 83 SIGNATURECLAUSE.................................................................................................. 84 Phase II Renewable Development Agreement iv EXHIBIT A — Schedule of Renewable Energy Development Project Elements [Exhibit A may be revised from time to time to reflect modifications of Renewable Development Project Elements as reflected therein, or pursuant to Sections 4, 6, 8, 9,10, 11, 14, 17 and 19 of this Agreement] Phase Il Renewable Development Agreement v PHASE II RENEWABLE DEVELOPMENT AGREEMENT 1.. PARTIES, PHASE II RENEWABLE DEVELOPMENT AGREEMENTS TO BE SEPARATELY AND INDIVIDUALLY EFFECTIVE. 1.1 This Phase II Renewable Development Agreement (this "Agreement"), which is dated for convenience as of July 1, 2012 is made and entered into by and between the SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, a joint powers agency and a public entity organized under the laws of the State of California, hereinafter designated as "SCPPA," created under the provisions of the Act, and the City of Anaheim ("ANAHEIM"), the City of Azusa ("AZUSA"), the City of Banning (`BANNING"), the City of Burbank (`BURBANK"), the City of Cerritos (CERRITOS), the City of Colton ("COLTON"), the City of Glendale ("GLENDALE"), the Imperial Irrigation District ("IID"), the City of Los Angeles acting by and through the Department of Water and Power ("LADWP"), the City of Pasadena ("PASADENA"), the City of Riverside ('RIVERSIDE"), and the City of Vernon ("VERNON"), as applicable, (each, individually, a "Party", and collectively, the "Parties"). ANAHEIM, - AZUSA, BANNING, BURBANK, CERRITOS, COLTON, GLENDALE, IID, LADWP, PASADENA, RIVERSIDE, and VERNON are also, each as a signatory to this agreement and as may be applicable, each referred to individually as the "Participant" and collectively as "Participants." In addition ANAHEIM, AZUSA, BANNING, BURBANK, CERRITOS, COLTON, GLENDALE, IID, LADWP, PASADENA, RIVERSIDE, and VERNON to the extent they participate in any renewable resource Phase II Renewable Development Agreement - 1 - development activities associated. with any Project Element may be referred to, depending on the context, individually as a "Project Element Participant" or collectively as "Project Element Participants." Additional Parties or Participants may be added as provided in Section 9.3.2 or, if applicable, as may be provided by way of Section 19 herein. 1.2 This Agreement shall become independently effective between SCPPA and any separate or discrete Party specified in Section 1.1 (irrespective of the approval or lack of approval of this Agreement by any other Participant) upon the approval of this Agreement by the Board of Directors and the other contracting Party 's approving authority. 2. RECITALS, CONSTRUCTION AND PRELIMINARY MATTERS. 2.1 The Recitals set forth herein and the facts, which follow, are incorporated into this Agreement by reference for all purposes. The facts and the circumstances of the Parties contained in the Recitals, among others, represent the background and framework for this Agreement, the aim and purpose of this Agreement and the iritendments of the Parties with respect thereto. This Agreement has been reviewed by attorneys for both Parties and shall not be interpreted with reference to the rules of construction providing for construction against a Party responsible for drafting or creating a particular provision or section, but should instead be interpreted in a manner which broadly carries forth the goals and objectives of the Parties as expressed herein. References to "Sections," "Annexes," "Appendices," "Schedules" and "Exhibits" shall be to Sections, Annexes, Appendices, Schedules Phase II Renewable Development Agreement -2- and Exhibits, as the case may be, of this Agreement unless otherwise specifically provided. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose nor given any substantive effect. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. The use herein of the word "include" or "including", when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. This Agreement is made with reference to the following facts among others: 2.2 SCPPA was created pursuant to provisions contained in the joint exercise of powers act found in Chapter 5 of Division 7 of Title 1 of the Government Code of California, as amended from time to time (the "Act"), by its members, which are municipalities and an irrigation district that supply electricity in the State of California, for the purpose of jointly and cooperatively undertaking planning, financing, development, acquisition, construction, reconstruction, improvement, enlargement, betterment, operation and maintenance of projects for the generation, storage or transmission of electric energy, including renewable generation technologies in accordance with the Act. Phase II Renewable Development Agreement -3- 2.3 SCPPA's members created SCPPA as a separate and independent public entity pursuant to the Act and pursuant to the Joint Powers Agreement between SCPPA and its members dated as of November 1, 1980 as amended. 2.4 Pursuant to the terms of the Act, and the Joint Powers Agreement constituting SCPPA's formative instrument, SCPPA has the power to plan, develop, finance, own, acquire, design, construct, operate, maintain and repair electric generation or transmission projects or to cause such projects to be planned, developed, financed, designed, constructed, operated, maintained and repaired, and to provide by agreement with a public agency of the State of California to perform such activities. 2.5 Pursuant to the terms of the Act and the SCPPA Joint Powers Agreement, SCPPA has the power, for the purpose of promoting, maintaining and operating electric generation and transmission, to plan, develop, contract for, finance, acquire, design, undertake, own, construct, manage, operate and administer projects involving generation and transmission of electric energy, including renewable energy projects, and involving systems, methodologies and programs for the acquisition, supply procurement and delivery of services related to the studying, planning, contracting for, administering, financing, developing, acquiring, constructing, reconstructing, improving, enlarging, bettering, managing, operating, maintaining or decommissioning any such projects, and to cause such projects to be planned, developed, contracted for, financed, acquired, designed, constructed, improved, managed, operated, maintained, and administered and to provide by agreement for the performance and carrying out of any such activities Phase II Renewable Development Agreement 2.6 All of the members of SCPPA are California public entities which provide electric energy to their citizens through their municipally owned electric systems. In many SCPPA projects the administration of such projects is parried forth through various mechanisms provided in the Act or SCPPA's Joint Powers Agreement or by way of a variety of arrangements between SCPPA and its members. 2.7 In recent years SCPPA members have experienced the imposition of a substantial number of new laws, rules and regulations addressing energy procurement and the development of energy resources which have effectively required the Participants to shift generation assets to increasingly rely on renewable generation and other systems and methods to conserve generation resources and to reduce emissions from existing generating systems and the members of SCPPA have utilized SCPPA for many of the projects and programs which have been developed to achieve these goals, and desire to continue to so utilize SCPPA. 2.8 Certain of the proposed Participants which are contemplated to participate in this Phase II Renewable Development Agreement are publicly owned utilities which are members of SCPPA and have utilized SCPPA in the past to develop and finance projects. Over the course of the past several years, members of SCPPA have developed numerous renewable energy projects through SCPPA and in carrying forth these projects have utilized both their own staff and the staff of other SCPPA members to develop, implement, and where applicable to administer such projects. Phase II Renewable Development Agreement -5 2.9 Through an earlier agreement for the development of renewable resources SCPPA and certain Participants have carried forth certain renewable energy goals to investigate, plan, design, develop and provide for the eventual financing, contracting for, procurement, acquisition, deployment and operation of a number of Renewable Electric Energy Resource Projects by which to meet certain SCPPA members' Renewable Portfolio Standard. Through the renewable energy Acquisition process described in this Agreement the Parties intend to provide the resources necessary to continue this process to investigate, plan, design, develop and provide for the eventual financing, contracting for, procurement, acquisition, deployment and operation of the Renewable Electric Energy Resources which Participant desires to be acquired, developed, financed, implemented or deployed through SCPPA. The Parties desire to carry forth such work as may be necessary to bring such Acquisitions to fruition to assist the Participant in meeting its Renewable Portfolio Standard. 2.10 To further the aims of the proposed SCPPA Renewable Electric Energy Resource Project, on January 19, 2006 the SCPPA Board of Directors approved Resolution 2006-2 which declared its intention to reimburse certain renewable resource expenditures from the proceeds of future financings, as required by United States Department of Treasury Regulations section 1.150-2. 2.11 Thereafter on April 20, 2006 the SCPPA Board of Directors by way of Resolution 2006-13 created the SCPPA Renewable Electric Energy Resource Project and declared this project to be an official SCPPA Study Project pursuant to the SCPPA Joint Powers, Agreement. Phase II Renewable Development Agreement 2.12 By way of Resolution 2006-13 the SCPPA Board of Directors also authorized the execution of the Renewable Electric Energy Resource Project Development Agreement for the SCPPA Renewable Electric Energy Resource Project among SCPPA and each of SCPPA's members and entities participating in the Study Project created thereby. This earlier agreement approved pursuant to Resolution 2006-13 is referred to herein as the "Phase I Agreement". 2.13 Under the Phase I Agreement, SCPPA and the SCPPA members and entities participating in the Phase I Agreement have carried out the development measures necessary to acquire, purchase,, procure, construct or otherwise contract for, as the case may be, a substantial number of Renewable Electric Energy Resources for the benefit of the participating entities under that agreement. 2.14 Participant has a continuing need for Renewable Electric Energy Resources which may be currently be in development phase by SCPPA pursuant to the Phase I Agreement as well as by other means and which are contemplated to be developed in the future pursuant to this Agreement. Participant desires to participate in the continuing development and Acquisition of Renewable Electric Energy Resources by way of this Phase II Agreement. Given these needs and to draw upon and utilize their combined resources, SCPPA and Participant have determined that it is desirable to enter into this Agreement to provide a vehicle by which to achieve the continuing renewable goals of Participant and SCPPA through this Phase II Agreement. Phase II Renewable Development Agreement -7- 2.15 By way of this Phase II Agreement the Parties desire to provide a mechanism for the continuation of and the eventual further consummation of the work begun under the Phase I Agreement and to provide for the investigation, examination, study, exploration, Acquisition and development of renewable electric energy resources entailing both renewable generation resources, transmission resources and other facilities and arrangements for the storage, exchange or management of renewable energy, for the purpose of facilitating the delivery of renewable energy to assist the Participant in meeting the significant and growing needs of its Renewable Portfolio Standard or renewable energy requirements. Participant has either participated previously in the Phase I Project or has worked with SCPPA in the past and, because of the significant, continuing and growing need for renewable resources described herein, SCPPA and Participant desire to carry forth this Project. 2.16 The Parties contemplate that certain Project Elements with respect to certain Participants may be financed through SCPPA, and that differing Acquisitions may take the form of either power purchase agreement structures, prepayments for renewable energy, outright facility or renewable asset purchases, or option arrangements incorporating any of these structures. 2.17 It is the intention of SCPPA and Participant that SCPPA shall undertake on Participant's behalf to facilitate or provide those administrative, operational and other resources and requirements as shall be necessary or advisable to develop, operate and carryforth the Participant's interests and objectives in the Phase II Renewable Development Agreement -8- aforementioned Renewable Electric Energy Resources in a manner consonant with the objectives of this Agreement. 2.18 It is also contemplated through this Agreement that SCPPA and Participant may continue, where desired or appropriate, to carry forth those measures to further the renewable objectives of the Phase I and the Phase II Coordinating Committees (together the Consolidated Coordinating Committee) and the objectives of the SCPPA members represented on these committees having pressing renewable resource needs, to obtain a seamless cooperative working relationship culminating in the successful achievement of meaningful renewable energy Acquisitions for those Parties participating in this Project, in Phase I or in other renewable energy resource projects. 2.19 To further the goals of the Project SCPPA and Participant desire to carry forth this Phase II with the preparatory steps for the development and Acquisition of a number of renewable resources for the benefit of Participant and, if applicable, for the eventual financing; procurement, acquisition, engineering, construction, deployment, operation and maintenance of proposed renewable energy projects. 2.20 The Parties desire, by way of this Phase II Project, to continue to study, examine, investigate, explore and further develop the potential acquisition of energy and capacity from Renewable Electric Energy Resources and the potential pathways, interties, interconnections, substations, energy storage equipment and facilities, other facilities and equipment and transmission resources to deliver such energy, Phase II Renewable Development Agreement -9- to ensure that each Participant meets its respective renewable energy resource goals. 2.21 To further the Participant's renewable energy objectives the Parties desire, by way of this Phase II Agreement, to proceed forward with and carry out this Phase II Project to further the achievement of the Participant's RPS goals pursuant to the terms and conditions set forth herein. 2.22 In order to enable SCPPA to carry forth the goals and purposes of the Phase II Project as set forth herein, it is necessary for SCPPA to have a binding agreement with Participant to pay Participant's share of SCPPA's costs associated with the Project, Project Element(s) and Participant's share of those payments required to be made in accordance with provisions of any applicable Project Agreements. SCPPA shall further provide for the investigation, implementation, administration, operation and maintenance of the Project for the purpose of securing and paying for the rights, services, entitlements and deliverables contemplated hereby, through the application of the payments required to be made by the Participant to SCPPA in accordance with the provisions of this Agreement. 2.23 Participant shall pay from its electric revenue fund, including any and all legally available electric system reserves, all amounts payable to SCPPA under this Agreement, including but not limited to its proportionate share of Renewable Development Costs, Pre -operation costs and all other costs incurred pursuant to this Agreement, and such payments shall constitute an operating expense of Participant's electric utility. Phase II Renewable Development Agreement M[Ile 2.24 As one of matters contemplated under this Agreement SCPPA and Participants have identified certain releases, exculpations, liability protections, and related matters which are more fully set forth in Section 5 and 14 of this Agreement, the cost of which shall be paid by the Participants, pursuant to the provisions of this Agreement, including Section 10.2 herein. It is the intention of the Parties that, to the extent SCPPA incurs any costs in connection with providing the Participants such releases, exculpations, liability protections or related matters under Section 14, such costs shall constitute Renewable Development Work Costs which shall be passed through to the applicable Participant or Participants pursuant to the terms of this Agreement. Therefore it is the intention of the Parties that all such releases, exculpations, liability protections and related matters provided by SCPPA will be ultimately and entirely paid for by the Participants through the inclusion in SCPPA's costs to be billed by SCPPA to the Participants as part of the Renewable Development Work Costs in conformance with the billing and payment methodology established by this Agreement, and the Participant agrees to pay its Renewable Development Cost Share of such costs. 2.25 Through this Agreement the Parties intend to, among other things: (i) pursue certain Renewable Development Work (as defined herein) to carry forth the Project and Project Elements, including the preparation of regulatory applications, carrying out potential site reviews, the undertaking of those measures necessary to exercise due diligence in the examination of leasing arrangements, obtain planning studies, surveys, permits, licenses, easements, entitlements, approvals, cost estimates and construction, project delivery and deployment schedules; (ii) Phase II Renewable Development Agreement ONE prepare contracts, instruments and documents to carry forth the renewable energy Acquisitions described herein, (iii) take such other actions as are necessary or desirable for securing of any regulatory approvals and meeting environmental requirements to undertake the renewable energy Acquisitions described herein; (iv) determine the feasibility and estimated cost of the Project and the described renewable energy Acquisitions; (v) secure all property rights and entitlements; (vi) permit the acquisition of equipment, goods, materials, parts, facility assets or other items (or the acquisition of an option to purchase any of same in the future) to facilitate the timely or cost-effective deployment of the proposed renewable energy projects; (vii) cause to be provided advisory and consulting services related to the Project, including engineering, environmental, regulatory, legal, financial, accounting and related services, through contracts or otherwise; and (viii) provide a mechanism to facilitate the payment from each Participant, in accordance with each participant's proportionate share, to SCPPA of SCPPA's costs for the Renewable Development Work and Pre -Operation Costs and all other costs in carrying out and in furtherance of this Project in the manner provided herein 3. AGREEMENT. In consideration of the mutual covenants herein, the Parties agree as follows: 4. DEFINITIONS. In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and in the exhibits attached hereto and initially capitalized, shall have the meanings specified: Phase II Renewable Development Agreement -12- 4.1 Acquisition. The procurement of energy, capacity and/or renewable energy attributes associated with any Renewable Electric Energy Resource(s) including facilities for interconnection with, or transmission or delivery of, any Renewable Electric Generation Resource, and any Renewable Electric Energy Transmission Resource. Acquisition also includes procurement, construction, obtainment or creation of new transmission paths or facilities, or upgrading of existing transmissions paths (whether physical, virtual or otherwise) or facilities to accommodate transmission of energy from Renewable Electric Energy Generation Resources. In addition Acquisition includes the procurement of energy storage facilities, devices, and arrangements, energy exchange management and peak load shifting technologies. An Acquisition may be carried forth by way of an asset purchase, an exchange, a joint ownership or participation arrangement, a power purchase agreement, a purchase and sale arrangement, a transmission purchase or service arrangement, an environmental attribute procurement arrangement, a prepayment arrangement, construction, upgrading or any other action, contract, device or other means deemed appropriate to achieve Participant's renewable resource goals. 4.2 Act. The "Act" has the meaning set forth in Section 2.1. 4.3 Additional Party. A public agency which is added to or made a Participant under this Agreement, as may be applicable, either pursuant to Section 9.3.2 of this Agreement or, if applicable, pursuant to Section 19 of this Agreement. Phase II Renewable Development Agreement -13- 4.4 Agreement. This Agreement,'as more specifically set forth in Section I hereof, as it may be amended from time to time. 4.5 Board of Directors. The Board of Directors of the Southern California Public Power Authority. 4.6 Consolidated Coordinating Committee. The combination of the Phase II Coordinating Committee and any Coordinating Committee existing pursuant to the Phase I Agreement. 4.7 Contribution. The principles of contribution set forth in Section 14.5 hereof. 4.8 Entitlement Share. The percentage entitlement of each Participant in a Project Element as set forth in Exhibit A herein, as the same may be amended or supplemented from time to time. 4.9 Estimated Monthly Renewable Development Work Costs. For any particular month, the estimated amount that the Project Manager determines will be required to be paid to cover the Renewable Development Work Costs during such month, including adjustments for differences between previously estimated and recorded Renewable Development Work Costs. 4.10 Executive Director. The Executive Director of the Southern California Public Power Authority. 4.11 Financing Work. All activities associated with the proposed financing of a Project Element or Project Elements on behalf of a financing Participant or Phase II Renewable Development Agreement -14- financing Participants, including preparation and drafting of instruments and agreements necessary to the financing, and including tax considerations and all other necessary or desirable work to enable Participants identified on Exhibit A to obtain financing for their respective percentage share in ,the ensuing project associated with any Project Element. Financing Work may include, where applicable, work to establish any financial structure, contractual arrangement, or other device which might be useful to any Participant or Project Element Participant to take advantage of, or indirectly obtain a benefit from, any tax advantage, tax credit or other tax or financial incentive which might otherwise not be directly available to a governmental entity. 4.12 Joint Powers Agreement. The "Southern California Public Power Authority Joint Powers Agreement" dated as of November 1, 1980, as amended and modified, entered into pursuant to the provisions of the Act, between SCPPA and its members and any successor agreement. 4.13 LADWP. The City of Los Angeles acting by and through the Department of Water and Power, which has also been a participating SCPPA member in, and the Project Manager for, Phase I. 4.14 Participation Agreements. The agreement or agreements, as determined by the Coordinating Committee or the Board of Directors as applicable, that provide for the participation of any members of SCPPA, potentially in association with other entities, in the potential acquisition, purchase, procurement, financing, Phase II Renewable Development Agreement -15- deployment, management, operation or maintenance of any project or any Project Element. 4.15 art . This term shall have the meaning ascribed thereto in Section 1 hereof. 4.16 Power Sales Agreement. The agreement or agreements which will provide for SCPPA's ownership, interest, rights or entitlements or other form of participation in a proposed SCPPA generation project and the respective rights and obligations of the parties with respect to such project. As determined by the Board of Directors and the participants in the proposed project, the Power Sales Agreements may provide, among other things, for the procurement, acquisition, financing, construction, operation, maintenance or decommissioning of the project. 4.17 Power Sales Agreement/Transmission Services Agreement Work. All activities associated with the preparation of Power Sales Agreements or Transmission Services Agreements, or of agreements carrying forth similar purposes, as the case may be, between SCPPA and a Project Element Participant relating to any Project Element. 4.18 Phase I. The project on behalf of all SCPPA members participating therein created by way of the Renewable Electric Energy Resource Project Development Agreement entered into between SCPPA and various SCPPA members and entities pursuant to SCPPA Resolution 2006-13. Phase II Renewable Development Agreement -16- 4.19 Phase I Agreement. The Renewable Electric Energy Resource Project Development Agreement(s) entered into between SCPPA and certain members of SCPPA and publicly owned utilities, pursuant to SCPPA Resolution No. 2006-13, 4.20 Phase I Coordinating Committee. The Coordinating Committee established pursuant to Phase I. 4.21 Phase II. The cumulative project or projects and Project Element and Project Elements created through the approval of Phase II Renewable Development Agreement(s) between SCPPA and Participant, and SCPPA and other SCPPA members or participating entities. 4.22 Phase II Agreement. This Phase II Renewable Development Agreement. 4.23 Phase II Coordinating Committee. The Coordinating Committee as may be established pursuant to Section 8 herein. 4.24 Phase II Project. The total aggregate of all proposed cumulative Acquisitions associated with any and all Project Element(s) and all of the rights and obligations associated therewith, including all related agreements and arrangements, all appurtenant equipment thereto as may be applicable, the applicable portion of any common facilities and related facilities for interconnection or transmission of the output of any Project Element(s) and all necessary or related facilities to carry forth the deployment and placement into operation of any Project Element(s). Exhibit A contains the proposed Acquisitions or Project Elements and the Entitlement Share of energy or capacity contemplated to be acquired by each Phase II Renewable Development Agreement -17- SCPPA member participating in Phase I or Phase II as of the date of this Agreement. Exhibit A may be amended by the Coordinating Committee or as otherwise provided in this Agreement to reflect revisions in participation, revisions in generation or transmission entitlements, percentages or capacity, the addition or withdrawal of new or different proposed Project Element Participants, the addition of new Project Elements and the deletion of then existing Project Elements. Each such amendment, revision, modification or addition to Exhibit A shall be supplied to each Participant requesting the same. The Coordinating Committee or the Board of Directors, as provided herein or as may be applicable, shall have the authority to modify the project description contained herein to accommodate or adapt to new circumstances or changed conditions. For,the purpose of this Agreement the terms "Project' and "Phase II Project' shall be synonymous. 4.25 Pre -Operation Costs. Those costs or expenses relating to the acquisition of equipment, goods or other resources necessary to the development of a Project Element or otherwise acquired in anticipation of financing, procurement, construction, implementation or deployment of the initial phases of an Acquisition (including the acquisition of an option or options for procurement or to purchase any of same in the future) for the benefit of the Project Element that the Board of Directors or the Coordinating Committee, as appropriate, has determined will facilitate the timely or cost-effective acquisition, implementation, deployment, construction or placement into operation of the Project Element. Phase II Renewable Development Agreement -18- 4.26 Project For purposes of this Agreement "Project" shall have the meaning set forth in the definition of Phase II Project. 4.27 Project Representative and Contract Admi isr� trator. The person appointed by Participant pursuant to Section 24 of this Agreement to act as a liaison between Participant and SCPPA with respect to the performance of this Agreement and to represent Participant in all aspects and elements of the administration of this Agreement. 4.28 Project Agreements. This Agreement, the Participation Agreements, the Power Sales Agreements, the Transmission Services Agreements, the joint ownership agreements, any asset purchase agreement or purchase and sale agreement in connection with the acquisition, purchase or procurement of any renewable resource or associated facility forming part of a project or any Project Element, any power purchase agreement associated with a project or any Project Element, any agreement addressing the scheduling or tagging of any energy associated with a project or any Project Element, any agreement addressing entitlement to or transfer of renewable attributes or addressing any renewable certifications, designations, characterizations or nominations relating to any energy associated with a project or any Project Element, any agreement relating to the dispatching, interconnection, transmission or delivery of energy associated with any project or Project Element from the point or points of generation to the point or points of delivery as determined by the Coordinating Committee, any agreement relating to storage of energy or equipment, facility maintenance or operation of any project Phase II Renewable Development Agreement -19- or Project Element, and any other agreement or agreements designated as a Project Agreement by the Coordinating Committee. 4.29 Project Element. Any Renewable Electric Energy Resource or any of the various SCPPA wind, geothermal, biomass, landfill, solar or other subprojects which form a discrete component within the Project as setforth by way of example in Exhibit A, or which may qualify as a renewable project under Participant's renewable portfolio standard, or as may hereafter be approved for Acquisition with respect to a Participant by action of the Participant's Project Representative and Contract Administrator or otherwise by approval of the Coordinating Committee or Board of Directors or as otherwise provided herein. A Project Element may also entail procurement, construction, obtainment or creation of new transmission paths, facilities and equipment or upgrading of existing. transmissions paths, facilities and equipment (whether physical, virtual or otherwise) any interconnections or interconnection arrangements, or any means of transmission congestion remediation which may accommodate the transmission of energy from Renewable Electric Energy Generation Resources. Project Elements may be added to or deleted from this Agreement with respect to a Participant by action of the Participant's Project Representative and Contract Administrator or otherwise with the approval of the Coordinating Committee or the Board of Directors. 4.30 Project Element Determination. "Project Element Determination" means any matter involving a question pertinent to the studying, investigating, planning, financing, engaging, developing, acquiring, constructing, reconstructing, Phase lI Renewable Development Agreement operating, mitigating, maintaining, administering, managing, improving, enlarging, or bettering of a Project Element_ 4.31 Project Element Participant: An entity sharing in the cost in the manner set forth herein, and participating in a specific Project Element development pursuant to this Agreement or the Phase I Agreement. Project Element Participants and their respective corresponding Project Elements are set forth in Exhibit A herein, which exhibit may be amended or supplemented from time to time to reflect changes in participation, changes in participants or changes in participant shares with respect to any Project Element or changes in Entitlement Share with respect to any participant and/or with respect to any Project Element. 4.32 Project Manager. The entity appointed or designated as such pursuant to the provisions in Section 5 hereof. 4.33 Project Matter. The term, "Project Matter" shall mean a matter for decision by the Board of Directors involving a question pertinent to the studying, planning, financing, developing, acquiring, constructing, reconstructing, improving, enlarging, bettering, operating or maintaining of a Project as to which there shall be one or more Project Contracts as defined in the Joint Powers Agreement. 4.34 Prudent Utility Practice. Any of the practices, methods and acts, which, in the exercise of reasonable judgment in the light of the facts (including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the electrical utility industry or approved by the governing body that establishes the standards or recommendations of the particular area of science or Phase Il Renewable Development Agreement -21- industry practice prior thereto) known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with good business practices, reliability, safety and expedition, taking into account the anticipated design and operational characteristics of the Project and the fact that Prudent Utility Practice is not intended to be limited to the optimum practice, methods or acts to the exclusion of all others, but rather to be a spectnun of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. Prudent Utility Practice includes due regard for manufacturers' warranties and requirements of governmental agencies of competent jurisdiction and shall apply not only to functional parts of the Project, but also to appropriate structures, landscaping, painting, signs, lighting, other facilities and public relations programs reasonably designed to promote public enjoyment, understanding and acceptance of the Project. 4.35 Renewable Development Work. All activities necessary or desirable to (i) determine the scope and extent of any Project Element and determine and develop those documents, instruments, agreements or arrangements necessary or desirable to achieve the agreed upon structure of any Project Element, (ii) determine the particular renewable resources and related facilities to be acquired and the structure of the Acquisitions, (iii) determine the nature of the participation structure, (iv) perform legal work, investigative and due diligence work, site studies, meteorological, geological, heliographical, diurnal, geophysical, engineering or environmental studies or work, or any other reviewing, regulatory, Phase II Renewable Development Agreement -22- permitting, licensing or entitlement work as may be required for any Project Element, (v) draft and negotiate all contracts necessary or appropriate or as may otherwise be required to carry forth any Project Element, (vi) perform Power Sales Agreement/Transmission Services Agreement Work, (vii) perform any transmission, interconnection or congestion studies as may be required by any Project Element, (viii) estimate the cost to and of all Project Elements for any proposed Acquisition, purchase or procurement, as appropriate, of associated renewable resources and related facilities, (ix) estimate the cost to the Project and all Project Elements of any transmission or interconnection proposals associated with any Project Element, (x) estimate the cost of any new or upgraded transmission paths or any other transmission congestion remediation measures associated with the Project or any Project Element, (xi) perform any Financing Work, (xi) estimate the proposed schedule for the overall Project and for all Project Elements and the anticipated schedules for any proposed Acquisition, purchase or procurement, as appropriate, of associated renewable resources and related facilities, (xii) estimate the proposed schedule for any Acquisition involving any transmission related resource and the proposed schedule for any new or upgraded transmission path or other transmission congestion remediation measure associated with the Project or any Project Element, (xiii) obtain the appropriate permits, entitlements, licenses and approvals, (xiv) take all necessary or desirable actions relating any other appropriate pre -acquisition measures associated with the Project or any Project Element, (xv) identify potential corridors, interconnections, transmission paths and points of delivery for energy Phase II Renewable Development Agreement - 23 - and capacity associated with any Project Element and address issues -relating to providing transmission, interconnection services, scheduling, dispatching and delivery to Participants, and (xvi) perform any other service or activity related to the Project or any Project Element as determined by the Coordinating Committee which is consistent with this Agreement and any budget approved by the Coordinating Committee. 4.36 Renewable Development Work Costs. All costs and expenses necessary or desirable to carry forth or complete Renewable Development Work and all costs as further described in Section 6.3 hereof. 4.37 Renewable Development Work Cost Share. With respect to any Participant, its percentage share of Renewable Development Work Costs as set forth on Exhibit A hereto, as such shares may be adjusted pursuant to Sections 4, 6, 8, 10, 11, 14, 17 and 19 herein. The fraction of all costs of all Project Elements created by posing the cumulative total of Participant's costs in all Project Elements in which Participant is a Project Element Participant as the numerator of such fraction with the cumulative total of all costs of all Participants in all Project Elements representing the denominator of such a fraction is the proportionate share which a Participant has in the Project. 4.38 Renewable Electric Energy Generation Resource. A source of energy which meets the definition of an "eligible renewable energy resource" under California law or which satisfies the requirements necessary to be included in a Participant's Phase II Renewable Development Agreement -24- Renewable Portfolio Standard or which otherwise satisfies a Particpant's renewable energy goals. 4.39 Renewable Electric Energy Resource. A Renewable Electric Energy Generation Resource, a Renewable Electric Energy Transmission Resource or a Renewable Electric Energy Storage Resource. 4.40 Renewable Electric Energy Resource Project. Renewable Electric Energy Resource Project is described in Sections 2.10, 2.11 and 2.12 herein. 4.41 Renewable Electric Energy Storage Resource. A storage resource that can be utilized to store Renewable Electric Energy or other energy resources for utilization at a later period in time. 4.42 Renewable Electric Energy 'Transmission Resource. A resource which can be utilized to transmit electric energy or to facilitate or direct the transmission or movement of electric energy from a Renewable Electric Energy Generation Resource or other energy resource, and includes, without limitation, interconnections, transmission lines, interties, substations, switchyards, switching stations and other resources used in directing and moving electric energy. 4.43 Renewable Portfolio Standard. The formal pronouncement issued by or on behalf of a Participant, or which may otherwise be applicable to a Participant, describing its renewable energy goals or requirements as the same may be modified or amended from time to time. A Participant's Renewable Portfolio Standard may Phase II Renewable Development Agreement - 25 - also be referred to from time to time as its renewable portfolios standard or as its RPS. 4.44 Required Concurrence. The affirmative vote of more than one half, numerically, of the Participants participating in the Project Element to which the vote pertains, who, in addition, represent greater than sixty percent (60%) of the Entitlement Shares in the Project Element to which the vote pertains. 4.45 Transmission Services Agreement. The agreement or agreements which will provide for SCPPA's ownership, interest, rights or entitlement or other form of participation in the proposed SCPPA transmission project and the respective rights and obligations of the Parties with respect to such project. As determined by the Board of Directors and the participants in the proposed project, the Transmission Services Agreement may provide, among other things, for the financing, construction, operation, maintenance or decommissioning of the project or Project Element. 5. PROJECT MANAGER. 5.1 Appointment. SCPPA or its designee shall act as Project Manager under this Agreement. Unless LADWP declines to be Project Manager or fails to take action to determine whether it desires or elects to be Project Manager, or unless SCPPA and the LADWP shall agree otherwise, SCPPA may appoint, designate and authorize LADWP to be the Project Manager to carry out, as agent for and on behalf of SCPPA and SCPPA members participating in Phase I and Phase II, and as principal on its own behalf, the Renewable Development Work in accordance Phase II Renewable Development Agreement -26- with this Agreement. Should LADWP act as Project Manager under this Agreement, unless SCPPA and LADWP shall agree otherwise, LADWP shall continue as Project Manager for Phase I and Phase II so long as SCPPA members continue to participate in Phase I or Phase II and so long as Phase I and Phase II or either of them continue as an active SCPPA Project. Notwithstanding the forgoing, in the event LADWP becomes the Project Manager either SCPPA or LADWP may terminate LADWP's services as Project Manager upon two (2) years written notice. 5.2 Term. Unless SCPPA and the Project Manager shall mutually agree otherwise, or unless otherwise provided in this Agreement, the Project Manager shall serve in the capacity of Project Manager as provided herein, during the term of and pursuant to this Agreement for so long as this Agreement is in effect. 5.3 Authority of the Project Manager. Subject to the express limitations of this Agreement, the Project Manager is authorized, in its discretion, in the performance of Renewable Development Work, to incur costs, liabilities and obligations and to perform and arrange for the performance of Renewable Development Work. The Project Manager may perform Renewable Development Work through its own employees, other SCPPA members, consultants, contractors or otherwise. To assist the Project Manager in its responsibilities, at the Project Manager's request, SCPPA and Participant will endeavor to furnish such further information as may be reasonably available from other members touching upon or relating to tasks or responsibilities as may confront the Project Manager, which the Project Manager may reasonably find useful in performing Phase II Renewable Development Agreement -27- Renewable Development Work and/or to meet the requirements of regulatory agencies having jurisdiction over the Project, any Project Element or any part thereof. In the execution of Renewable Development Work, the Project Manager is authorized to exercise those SCPPA powers as may be reasonably necessary to carry forth such work as are vested in SCPPA pursuant to the Act and its Joint Powers Agreement as agent for SCPPA to carry forth the objectives set forth herein. 5.4 Duties and Responsibilities of the Project Manager. The Parties hereto acknowledge that a principal purpose of this Agreement is to continue Renewable Development Work which may have been commenced pursuant to the Phase I Agreement so that this work can be brought to consummation and also to continue to investigate such additional potential Project Elements as may materially assist the Participants in meeting their required RPS goals. The Participants and the Project Manager desire to fully cooperate in these efforts to obtain a seamless cooperative working relationship eventuating in the successful accomplishment of meaningful Acquisitions for all Participants and culminating in the fulfillment of those RPS goals as may be accomplished through this Agreement. Subject to the provisions of Section 10 hereof, the duties and responsibilities of the Project Manager in performing Renewable Development Work or in incurring Pre - Operation Costs, as applicable, under this Agreement shall include but not be limited to: 5.4.1 .Obtaining appropriate leases, permits, licenses, entitlements, clearances, rights, certifications and approvals, including such state, county, city or Phase II Renewable Development Agreement -28- other local approvals as may be necessary or appropriate to the Project and any Project Element and, prior to obtaining same, identifying all major governmental, regulatory, permitting or contractual conditions proposed to be imposed with respect to such leases, permits, licenses, entitlements, clearances, rights, certifications and approvals, which conditions shall be agreed upon by the Coordinating Committee. 5.4.2 Identifying and reporting on renewable resource options and identifying vendors and contractor supply options or other alternatives with respect to any Project Element. 5.4.3 Identifying any environmental, pollution or contaminant costs and any mitigation measures (i) that will be required by, or which may be expected to be applicable to, any Project Element and/or (ii) that the Project Manager recommends, if any, should be incurred as part of Pre -Operation Costs. 5.4.4 Developing a Project plan including, among other things a breakdown with respect to each Project Element of Project cost estimates and developing schedules and arrangements for delivery of the Project output of each Project Element. 5.4.5 Promptly informing and consulting with the Coordinating Committee and, when appropriate, the Board of Directors, regarding significant factors or events which may affect, or have affected, Renewable Development Phase 11 Renewable Development Agreement -29- Work, Renewable Development Work Costs, Pre -Operation Costs, any schedules relating to any Project Elements. 5.4.6 Submitting, to the Coordinating Committee at mutually agreed times a status report to reflect the progress of Renewable Development Work and the incurrence of Pre -Operation Costs and any necessary or desirable revisions to the schedule. 5.4.7 Recommending to the Coordinating Committee for its review and approval, the plans, cost estimates and schedules for Acquisition of each renewable resource or of renewable resources and related facilities to be acquired as part of any Project Element, and recommending to the Coordinating Committee for its review and approval the plans, cost estimates and schedules for development, construction or otherwise for the implementation of any Project Element. 5.4.8 Preparing and submitting to SCPPA for its review and approval budget revisions for Renewable Development Work Costs and any proposals or revisions for the proposed incurrence of Pre -Operation Costs. 5.4.9 Notifying and invoicing, or causing to be notified and invoiced, each Participant at least thirty (30) days prior to the beginning of a given month, of its share of Estimated Monthly Renewable Development Work Costs; or Renewable Development Work Costs which may be due, as applicable, during said month and adjusting, or causing to be adjusted, the amount of money invoiced each month for Renewable Development Work Phase II Renewable Development Agreement -30- Costs to reflect variations between the prior recorded costs for Renewable Development Work and amounts received from Participants for Renewable Development Work. Notwithstanding the foregoing, with respect to the first invoice for Estimated Monthly Renewable Development Work Costs (which invoice may also include the balance of the month or months following the effective date of this Agreement), such invoice shall be sent immediately following the effective date of this Agreement and shall be payable by the Participants within twenty days or by the twenty fifth day of the month, whichever shall be later, after receipt of such invoice. Notwithstanding the forgoing, however, the Board of Directors may, by resolution, authorize or prescribe other billing, payment, costing and cost reconciliation mechanisms to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to the Project. 5.4.10 Expending, or causing to be expended, the funds provided for Renewable Development Work Costs and Pre -Operation Costs in accordance with this Agreement. 5.4.11 Arranging and negotiating contracts for furnishing, purchasing, procuring, acquiring and obtaining from any source it may select (including any Party), engineering, architectural, construction, legal, environmental, regulatory, financial, accounting and other services necessary or desirable for the performance and completion of Renewable Development Work Phase II Renewable Development Agreement -31- and the performance or completion of work relating to Pre -Operation Costs. 5.4.12 Arranging and negotiating contracts for the financing of any costs associated with any Project Element as directed by the Coordinating Committee. 5.4.13 Administering, performing and enforcing contracts entered into for Renewable Development Work and entered into relating to Pre -Operation Costs and furnishing conformed copies of such contracts as requested by any representative on the Coordinating Committee. 5.4.14 Complying with any and all laws and regulations applicable to the performance of Renewable Development Work and to the incurrence of Pre -Operation Costs. 5.4.15 Keeping and maintaining, or causing to be kept and maintained, records of moneys received and expended, obligations incurred, credits accrued, and maintaining or causing to be maintained for auditing by SCPPA or any auditor selected pursuant to Section 6.6 or Section 6.7 hereof, those accounting records used by the Project Manager or SCPPA, as applicable, pertaining to financial and statistical data for Renewable Development Work and for the incurrence of Pre -Operation Costs. 5.4.16 Preparing and submitting, or causing to be prepared and submitted, to the Board of Directors each calendar quarter after the date of this Agreement Phase.II Renewable Development Agreement -32- a cost report which shall be developed from the, records kept and maintained pursuant to Section 5.4.15 hereof and which shall include both the accumulated total disbursements for each work activity category from the beginning of Renewable Development Work, including a comparison to the most recently approved Renewable Development Work budget, Pre - Operation Costs incurred and a reconciliation of payments to date for Renewable Development Work Costs and Pre -Operation Costs to the total disbursements to date for Renewable Development Work Costs and Pre - Operation Costs, respectively. 5.4.17 Enforcing all claims against contractors, subcontractors, suppliers, consultants and others arising out of Renewable Development Work or relating to Pre -Operation Costs. 5.4.18 At the request of SCPPA, providing reasonably available assistance and furnishing information that it has relating to Renewable Development Work or to Pre -Operation Costs. 5.4.19 . Preparing a final completion report for SCPPA upon termination of this Agreement or completion of an applicable Project Element, which shall include studies performed, summaries of executed Project contracts, and a final cost report for Renewable Development Work and Pre -Operation Costs. 5.4.20 Not permitting any unsatisfied liens arising , out of Renewable Development Work or the incurrence of Pre -Operation Costs to remain in Phase II Renewable Development Agreement -33- effect other than liens for taxes or assessments not yet delinquent, liens for workers' compensation awards and liens for labor and material not yet perfected, provided that the Project Manager shall not be required to pay or discharge any such lien as long as the Project Manager is contesting such lien in good faith. 5.4.21 Assisting in the negotiations for and preparing all Project Agreements. 5.4.22 Providing for the orderly administration of meetings of the Coordinating Committee and maintaining the agenda, records and minutes thereof. 5.4.23 Determining the advisability of incurring Pre -Operation Costs and recommending to the Board of Directors the incurrence of Pre -Operation Costs. 5.4.24 Upon termination of this Agreement pursuant to Section 22.2.2 hereof or upon a determination by the Coordinating Committee not to proceed with construction of a Project Element (a) selling, at such time as directed by the Coordinating Committee and to such party or parties as approved by the Coordinating Committee, any and all equipment, goods or other assets relating to the Project Element (including options to purchase any of same) the costs of which were Renewable Development Costs or Pre- . Operation Costs and (b) promptly distributing the proceeds thereof (less any costs which may be owing by a Project Element Participant with respect thereto and any costs incurred in connection with the sale thereof) to each respective Project Element Participant in proportion to the Phase II Renewable Development Agreement -34- proportionate contributed share of the Pre -Operation Costs and Renewable Development Work Costs of the Project Element by the Project Element Participants. 5.4.25 Procuring and maintaining in force, insurance coverage for Renewable Development Work in such form and amounts as the Project Manager, the Coordinating Committee, or, as applicable, the Board of Directors may deem to be necessary or desirable. 5.4.26 Conducting all other activities deemed necessary or desirable to complete Renewable Development Work and to complete work relating to the incurrence of Pre -Operation Costs and performing such other functions and duties as may be assigned to it by the SCPPA, but in any event in a manner consistent with this Agreement. 5.5 No Warranty for Project Manager Services. If a Participant serves as Project Manager, all services provided by said Project Manager are provided on an "as is" basis, and Project Manager disclaims all warranties, express or implied, statutory or otherwise, including, without limitation, any implied warranties of merchantability or fitness for a particular purpose. 5.6 Indemnification of Project Manager. If a Participant serves as Project Manager, in its capacity as Project Manager under this Agreement, Project Manager shall be entitled to indemnification by SCPPA as set forth herein. SCPPA shall indemnify and hold harmless Project Manager, its board, officers, employees, and the employees of the governmental entity of which the Project Manager is a part, Phase II Renewable Development Agreement -35- past, present or future (collectively, "Project Manager Indemnitees") from and against any and all claims, demands, liabilities, obligations, losses, damages (whether direct, indirect or consequential), penalties, actions, loss of profits, judgments, orders, suits, costs, expenses (including attorneys' fees and expenses) or disbursements of any kind or nature whatsoever in law, equity or otherwise (including, without limitation, death, bodily injury or personal injury to any person or damage or destruction to any property of Project Manager, SCPPA or third persons) (collectively, "Losses") arising by reason of any actions, inactions, errors or omissions incident to the performance of this Agreement (excluding gross negligence or willful misconduct which, unless otherwise agreed to by the Parties, are both to be determined and established by a court of competent jurisdiction in a final, nonappealable order) on the part of Project Manager Indemnitees. At Project Manager's option, SCPPA shall defend Project Manager Indemnitees from and against any and all Losses. If SCPPA, with Project Manager's consent, defends any Project Manager Indemnitee, Project Manager and Project Manager's City Attorney's Office (or other appropriate Project Manager counsel or authority, as appropriate) shall approve the selection of counsel, and Project Manager shall, further approve any settlement or disposition, such approval not to be unreasonably withheld. For the avoidance of doubt, nothing in this Section 5.6 or in any other provision of this Agreement shall affect the Project Manager's obligation in its capacity as a Project Participant or Project Element Participant including Project Elements in which it serves as the Project Manager to make any and all payments in accordance with the first two sentences Phase II Renewable Development Agreement -36- in Section 10.2 of this Agreement and Section 2.24 of this Agreement or to pay any other amounts or costs required to be paid by it under this Agreement. 6. RENEWABLE DEVELOPMENT WORK BUDGET, SCHEDULE: COSTS; AND AUDITS. 6.1 Initial Budget, Subsequent Budgets, Not to Exceed Costs. The Coordinating Committee or the Project Representative and Contract Administrator, may, as it shall deem appropriate, approve such initial budgets and subsequent budgets as may be necessary to track costs associated with any Project Element. The budget may be structured in a way which sets forth separate specific budgets or budget categories for each Project Element for which the Project Representative and Contract Administrator desires to proceed forward or incur any costs. The budget or budgets so implemented shall be developed with the participation of SCPPA, the Participant and the other applicable Participants in the Renewable Development Project to address Renewable Development Work Costs and Pre - Operation Costs. Modification of such budgets or any subsequently revised budget shall be subject to review and approval by the Coordinating Committee, the Project Representative and Contract Administrator, or the Board of Directors, as may be applicable. Costs under this Agreement shall not exceed five million four hundred thousand dollars ($5,400,000.00) without a further amendment of this agreement between SCPPA and the Participant which is signatory to this Agreement. For avoidance of doubt, however, for purposes of this Section 6.1 costs which are subsumed or otherwise covered under, or returned to a Project Element Participant by way of, a Power Sales Agreement, a Transmission Phase II Renewable Development Agreement -37- Services Agreement or a Participation Agreement relating to or associated with a Project Element shall be considered costs under that Power Sales Agreement, Transmission Services Agreement or Participation Agreement, respectively, and shall not be considered a cost under the associated Project Element through this Agreement. In the absence of a budget or other billing mechanism relating to a Project Element, the Project Element"Participants in such a Project Element may be billed for the Renewable Development Work Costs or Pre -Operation Costs pertaining to such a Project Element at such times as such costs are incurred pursuant to the same monthly project billing methodology which SCPPA employs and under which SCPPA members are billed with respect to other SCPPA projects and programs. 6.2 Initial Schedule. The Parties shall develop an initial schedule for Renewable Development Work and the incurrence of Pre -Operation Costs. Such schedule shall specify the overall schedule agreed to by the Parties with any specific Project Element and its associated Renewable Development Work and the work associated . with the incurrence of Pre -Operation Costs indicated therein. Modification of such schedule or any subsequently revised schedule shall be subject to review and approval by the Coordinating Committee. 6.3 Renewable Development Work Costs. Renewable Development Work Costs shall include: 6.3.1 All costs of services, transportation, studies, and engineering, architectural, construction, legal, environmental, regulatory, financial, Phase II Renewable Development Agreement -38- accounting and other services necessary or desirable for the performance and completion of Renewable Development Work and the performance and completion of work relating to Pre -Operation Costs, performed by the Project Manager in its capacity as Project Manager or by any other person or entity, in connection with this Agreement and approved by the Project Manager (including, but not limited to, costs for Renewable Development Work incurred but not paid prior to the effective date of this Agreement). 6.3.2 Payroll and other expenses of Project Manager's employees while performing work in connection with this Agreement, including applicable overhead costs.and labor loading charges, including but not limited to time off allowances, payroll taxes, workers' compensation insurance, retirement and death benefits and other employee benefits. Labor loading shall be in conformance with the Project Manager's in- house rates as adjusted from time to time. 6.3.3 Applicable costs of materials, supplies, services and apparatus used in connection with this Agreement. 6.3.4 All costs incurred with respect to Pre -Operation Costs that are incurred prior to the execution, if applicable, of any separate agreement pursuant to which Pre -Operation Costs would otherwise be paid. Phase II Renewable Development Agreement -39- 6.3.5 Federal, state, and local taxes, payments in lieu of taxes, and permit, entitlement, license, certification, and approval -related fees of any character arising out of the performance of this Agreement. 6.3.6 All costs for Renewable Development Work insurance in such form and amounts, as determined by the Project Manager or the Board of Directors. 6.3.7 All costs of the Project Manager, including payments made out of the self-insurance fund, if any, of the Project Manager, and to the extent not initially provided for by insurance, of discharging or paying any liability and loss, damage and expense, including costs and expenses for attorneys' fees, and other costs of defending, settling or otherwise administering claims, liabilities or losses arising out of workers' compensation or employers' liability claims or by reason of property I damage or injuries to or death of any person or persons or by reason of claims of any and every character resulting from, arising out of or connected with the performance of the Renewable Development Work, whether wholly or partially by the negligence of the Project Manager or its respective employees or agents, including without limitation and by way of example, any indemnity provided to Project Manager in Section 5.6. 6.3.8 The Project Manager's administrative and general expenses to cover services in the performance of Renewable Development Work and Phase II Renewable Development Agreement -40- administrative and general expenses incurred by the Project Manager in connection with services regarding the incurrence or proposed incurrence of Pre -Operation Costs. 6.3.9 The costs arising out of the issuance of and administration of any request for proposal process undertaken for the purpose of identifying potential renewable energy projects or otherwise initiating Renewable Development Work for any proposed renewable energy project. 6.3.10 The cost of pursuing any legal action or defending against any action associated with or arising out of any Renewable Development Work, including but not limited to all costs incurred by SCPPA in connection with or in carrying out the provisions of Section 14.1. 6.3.11 All costs relating to the preparation and drafting of Power Sales Agreements, Transmission Services Agreements or Participation Agreements on behalf of Project Element Participants identified in Exhibit A hereto, whether performed by the Project Manager in its capacity as Project Manager or by SCPPA or any other person or.entity, in connection with this Project or any Project Element. 6.3.12 The cost of any audit carried out under or pursuant to the terms of this Agreement. 6.3.13 All out-of-pocket expenses relating to Renewable Development Work. Phase II Renewable Development Agreement -41- 6.4 Renewable Development Work Cost Share. Unless otherwise provided by way of this Agreement Participant shall pay its Renewable Development Work Cost Share of all its costs of Renewable Development Work, Financing Work and Pre - Operation Costs in accordance with this Agreement. 6.5 Costs or Expenses Incurred for Sole Benefit of Purchaser. Notwithstanding anything to the contrary in this Agreement, if a particular cost or expense is incurred by SCPPA for the sole benefit of Participant, unless otherwise determined by the Coordinating Committee, then such cost or expense shall be allocated only to Participant, in which event only Participant (and no other participating. entity in the Renewable Development Project) shall be responsible for the payment thereof under this Agreement. 6.6 Final Audit of Renewable Development Work Costs and Pre -Operation Costs. Should the Project Manager and SCPPA deem it appropriate or advisable the Parties may cause to be conducted a final audit of all Renewable Development Work Costs and Pre -Operation Costs, including Renewable Development Work Costs incurred prior to the effective date of this. Agreement, upon determination that the Renewable Development Work (or substantially all of the Renewable. Development Work) is complete or upon termination of this Agreement. Within thirty (30) days following completion of the final audit, a report of total audited costs expended under this Agreement may be submitted by the Project Manager to the Board of Directors. Phase Il Renewable Development Agreement -42- 6.7 Interim Audit of Renewable Development Work Costs and Pre -Operation Costs. Should the Board of Directors deem it advisable it may cause to be conducted one or more interim audits of all Renewable Development Work Costs and. Pre - Operation Costs expended to the date of the interim audit, including Renewable Development Work Costs and Pre -Operation Costs incurred prior to the effective date of this Agreement: 7. PAYMENT OF RENEWABLE DEVELOPMENT WORK COSTS AND PRE - OPERATION COSTS. 7.1 Payment of Costs. Except as may be otherwise provided herein, or by way of a separate resolution of the Board of Directors, by the twenty fifth (25th) day of the month or within twenty (20) days after receipt of an invoice for Renewable Development Work Costs furnished pursuant to the provisions of this Agreement, whichever is later, Participant shall pay to SCPPA its Estimated Monthly Renewable Development Work Costs and its Renewable Development Work Costs, as the same may be applicable and which may be due., All such amounts so paid may be expended by the Project Manager for Renewable Development Work in accordance with the terms of this Agreement. Within twenty (20) days after receipt of an invoice for Pre -Operation Costs furnished pursuant to this Agreement, Participant shall pay to SCPPA the amount of Pre -Operation Costs so invoiced. All such amounts so paid may be expended by the Project Manager for Pre -Operation costs in accordance with the terms of this Agreement. Should a Participant elect to pay any cost of its proportionate share of any Project Element Phase II Renewable Development Agreement -43- by way of payment through the Phase I Agreement, then such cost shall not be billed or payable under this Agreement. 7.2 Pavment of Invoices. Participant shall make payment of invoices which are billed for the costs, expenses, liabilities and obligations of the Project including Renewable Development Work Costs and Pre -Operation Costs, to SCPPA, at the following address: Southern California Public Power Authority 1160 Nicole Court Glendora, California 91740 SCPPA shall deposit all such payments made to it in a separate account. All payments from such account shall be made by SCPPA upon the direction of the Project Manager (or its agent) or as otherwise authorized by the Executive Director or the Board of Directors. 7.3 Disputed Invoices. If any portion of an invoice is disputed, the total invoice, including the disputed amount, shall be paid to SCPPA when due and under. protest. If the disputed amount is found by SCPPA to be validly disputed and proven to be incorrectly invoiced such incorrectly invoiced amount shall be promptly refunded to the Participant. Payments not made under protest shall be deemed to be correct, except to the extent audits may reveal overpayments or underpayments by Participant. 7.4 Adjustments to Billings. Adjustments to billings resulting from an audit described in Section 8.3 hereof shall be made within thirty (30) days of resolution. Phase II Renewable Development Agreement -44- 7.5 Incurrence of Pre -Operation. Costs. The Project Manager is authorized to incur Pre -Operation Costs in support of a specific Project Element in a manner and to the extent authorized by a determination of the Coordinating Committee which is reflected in its minutes or by a Resolution of the Board of Directors. Pre - Operation Costs shall be separately accounted for but shall be billed as part of the Renewable Development Work Costs. 7.6 Other or Additional Cost Reconciliation Mechanisms. The Board of Directors may, by resolution, authorize or prescribe other billing, payment, costing and cost reconciliation mechanisms to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to the Project. 8. COORDINATING COMMITTEE. 8.1 Formation. There may be established under this Agreement, in the discretion of each Participant's Project Representative and Contract Administrator, a Coordinating Committee to provide management direction for the Project Manager and to secure the effective cooperation and interchange of information among the Parties in connection with the incurrence of Pre -Operation Costs and in connection with various administrative, technical and other matters that may arise from time to time associated with the Renewable Development Work and Financing Work. 8.1.1 In the event a Coordinating Committee is established, each Participant and SCPPA shall appoint a representative to the Coordinating Committee and shall designate such representative within a reasonable Phase II Renewable Development Agreement -45- time (or within thirty days (30) days of any assignment pursuant to Section 19 of this Agreement) by giving notice to the other Parties of such designation. Each voting Party may, by giving notice to the other Parties, designate an alternate to act as its representative on the Coordinating Committee in the absence of the regular member or to act on specified occasions with respect to specified matters; such notice to be effective, however, only if given at least one day prior to the first meeting of the Coordinating Committee at which such alternate shall attend. The Chairperson of the Coordinating Committee shall be the representative of the Project Manager. Such Chairperson shall be responsible for calling and.presiding over meetings of the Coordinating Committee. The Chairperson may call a meeting of the Coordinating Committee at the request of any representative on the Coordinating Committee. The Chairperson shall promptly call a meeting of the Coordinating Committee at the request of representatives on the Coordinating Committee, or their designated alternates, who are entitled in the aggregate, to votes totaling the number of votes required to take action on the matter before the Coordinating Committee. Notwithstanding anything to the contrary in this Agreement, the representative of SCPPA on the Coordinating Committee shall not be entitled to vote on any matter. 8.1.2 Each member of the Coordinating Committee shall only be entitled to vote with respect to those Project Elements in which the member is a Phase II Renewable Development Agreement -46- Project Element Participant. Votes on matters which affect the Project as a whole or which are otherwise within the jurisdiction of the Board of Directors shall be voted on by the Board of Directors in accordance with the provisions of Section 9 of this Agreement. Each Project Element Participant shall have a weighted vote in proportion to its Entitlement Share in the particular Project Element to which the vote is addressed. Should a Coordinating Committee decision address the Project as a whole as opposed to a Project Element or Project Elements each Participant represented on the Coordinating Committee shall be entitled to a weighted vote equal to the proportion which the Entitlement Shares belonging to that Participant in all Project Elements bears to the sum of all Participant Entitlement Shares in all Project Elements. In addition to any other voting requirements imposed by this Agreement all actions or decisions by the Coordinating Committee with respect to Renewable Development Work concerning the Project or any Project Element shall be by agreement of at least the Required Concurrence of the applicable Participants or Project Element Participants entitled to vote on the matter based on the Renewable Development Work Cost shares as set forth in Exhibit A. Any vote of the Coordinating Committee may be taken in an assembled meeting or by telephone, facsimile transmission, telegraph, telex, letter or by any combination thereof, to the extent permitted by law, provided that if taken by telephone, a written record shall thereafter be made as soon as Phase II Renewable Development Agreement -47- possible by the Chairperson of the Coordinating Committee or by the person designated by the Chairperson to make such record. If a Participant is sixty (60) days or more delinquent in its payment of Renewable Development Work Costs or Pre -Operation Costs its representative on the Coordinating Committee, at the discretion of the remaining Coordinating Committee members in good standing, shall not be entitled to vote.for so long as such delinquency continues, and all votes taken while such delinquency continues shall be adjusted to eliminate the voting percentage of the Participant in default. 8.1.3 Each Party shall promptly give notice to the other Parties participating in Phase I or Phase II of any change in the designation of its representative or alternate representative on the Coordinating Committee and any other committee. Any such notice shall be effective if given at least one day prior to the first meeting of the Coordinating Committee or other committee at which such new representative or alternate representative will attend. 8.2 Duties and Responsibilities of the Coordinating Committee. The Coordinating Committee may meet at such times and locations as the Participants shall deem advisable, and the Coordinating Committee or the Board of Directors, as applicable, shall have the following duties and responsibilities, among others: 8.2..1 Monitor the continuation and completion of Renewable Development Work and Financing Work. Phase II Renewable Development Agreement 48 - 8.2.2 Provide liaison among the Parties and the Project Manager with respect to Renewable Development Work and Financing Work. 8.2.3 Exercise general supervision over the committees established pursuant to Section 8.4 herein. 8.2.4 Review, discuss and attempt to resolve any disputes relating to the Project or any Project Element among Parties or among Parties and the Project Manager. 8.2.5 Make recommendations to the Project Manager with respect to Renewable Development Work and Financing Work. 8.2.6 Review written statistical and administrative reports and information and other similar reports and records furnished to the Coordinating Committee by the Project Manager. 8.2.7 Review and take such action as is appropriate with respect to all proposed budget revisions prepared and submitted by the Project Manager. 8.2.8 Review and act upon revisions recommended by the Project Manager with respect to the description of the Project and the description of each Project Element, which revisions shall be in accordance with Prudent Utility Practice. 8.2.9 Review and act upon other recommendations of the Project Manager. Phase II Renewable Development Agreement 8.2.10 Review and act upon all contracts or contract amendments negotiated and arranged for by the Project Manager which relate to Renewable Development Work or Financing Work, 8.2.11 Prepare, revise or otherwise act upon the minutes of meetings of the Coordinating Committee. 8.2.12 Review and act upon all proposed amendments to this Agreement and, if the Coordinating Committee approves such amendment or amendments, provide for the forwarding of same to the Parties for their consideration and, if necessary, their approval. 8.2.13 Review and act upon the Project schedules and cost estimates 8.2.14 Review and approve those Project Agreements and other agreements for the retention of specialized services or consultants for the purpose of carrying out Renewable Development Work and Financing Work. 8.2.15 Review and approve the form of each Project Agreement with respect to the Project and each Project Element prior to the circulation thereof for execution pursuant to Section 12 hereof. 8.2.16 Review and act . upon proposed renewable resource procurement arrangements, purchases and acquisitions and any. Acquisition or related facilities recommended by the Project Manager to be acquired for any Project Element or by any Project Element Participants in accordance with Prudent Utility Practice. Phase II Renewable Development Agreement - 50 8.2.17 Determine, where deemed appropriate, such cost allocation related matters and cost allocation questions as may arise upon the entry of a new Project Element Participant or new Project Element Participants into a Project Element. 8.2.18 Determine, where deemed appropriate, such cost allocation related matters and cost allocation questions as may arise upon the departure or withdrawal of any Project Element Participant or Participants from a Project Element. 8.2.19 Review and act upon any litigation or potential litigation, including the settlement thereof, relating to Renewable Development Work, Financing Work or relating to the Project or any Project Element. 8.2.20 Meet or coordinate with such other SCPPA Committees as may be appropriate to exchange information or coordinate work which may touch upon matters of mutual interest. 8.2.21 Meet and coordinate and in appropriate cases decide upon and approve revisions to the Project description. 8.2.22 Review, study, modify and approve as necessary the revisions of Exhibit A, which may be necessary or appropriate to reflect the revision of participation with respect to any Project Element by any Project Element Participant, including revisions of Proposed Production Capacities, Entitlement Shares, Development Work Cost Phase II Renewable Development Agreement -51- Shares, as well as the entry or withdrawal of a Project Element Participant with respect to any Project Element. 8.2.23 Arrange as necessary for the financing of the costs, as applicable, of each Project Element (or of SCPPA's ownership interest therein) for the Participants as identified on Exhibit A hereto. 8.2.24 Arrange as necessary for the financing of costs, as applicable, of each Project Element for Participant(s) identified on Exhibit A hereto, including the pledging of, and the imposition of a lien upon, the amounts collected from such Participant(s) pursuant to this Agreement. (other than amounts reimbursed to the Project Manager and SCPPA pursuant to the provisions of this Agreement) for the purpose of securing any obligation incurred by SCPPA or the Project Manager for the purpose of paying such costs payable by the Participant(s) identified in Exhibit A hereto. 8.2.25 Review and act upon the contracts arranged and negotiated by the Project Manager pursuant to Section 5.4.12 herein. 8.2.26 Perform such other functions and duties as are reposed in it or assigned to it by this Agreement. 8.3 Arranging for Audits. of Project Manager's Records. The Coordinating Committee or the Board of Directors may arrange for audits of the books and cost records of Phase II Renewable Development Agreement -52- the Project Manager and any cost reimbursable consultant or contractor, relating to the performance of Renewable Development Work, 8.4 Establishment of Other Committees. The Coordinating Committee or the Board of Directors may establish other committees, including, but not limited to, auditing, legal, financial, engineering, operating, insurance, environmental and public information committees. The Coordinating Committee shall establish the authority, membership, rules and duties of each committee, and each such committee shall be subject to the provisions of this Agreement. Each such committee shall be responsible to the Coordinating Committee. 8.5 Limited Authority of Coordinating Committee to Amend Agreement. 8.5.1 Exhibit A contained herein may be amended by the Coordinating Committee, by the Board of Directors, or when applicable to a Project Element in which Participant is participating by the Project Representative and Contract Administrator, or as otherwise provided in this Agreement toreflect revisions in participation, revisions in generation or transmission shares, proportions, percentages or capacity, the addition of new Project Elements or the deletion of previously existing Project Elements. The budget with respect to any Project Element approved by the Coordinating Committee or Board of Directors may be amended by the Coordinating Committee or Board of Directors or as otherwise provided in this Agreement. Any such Phase II Renewable Development Agreement -53- amendment or addition to Exhibit A shall be supplied to Participant upon request. 8.5.2 Except for those amendments which may be effectuated as specifically otherwise provided under this Agreement, this Agreement may only be amended as provided in Section 20.6. Except as otherwise provided herein, neither the Coordinating Committee nor any of its appointed committees shall have the authority to amend this Agreement. 8.6 Written Records to be Kent. Actions by the Coordinating Committee as required by this Agreement shall be set forth in its minutes, except when made by telephone pursuant to Section 8.1.2 and 8.1.3, as applicable, here, whereupon a written record thereof shall be made thereafter as soon as possible as provided in Section 8.1.2 and 8.1.3, as applicable, herein or as provided by law. 8.7 Costs Incurred by Representatives of Participants. Unless otherwise provided by resolution of the Coordinating Committee or the Board of Directors, any expenses incurred by the Project Representative and Contract Administrator, or incurred by any representative of any Participant serving on the Coordinating Committee or any other committee in connection with his or her duties on the Coordinating Committee or any other committee shall be paid by the Participant and shall not be included as Renewable Development Work Costs or Pre -Operation Costs. 9. ROLE OF PARTICIPANT. SCPPA AND THE BOARD OF DIRECTORS Phase II Renewable Development Agreement -54- 9.1 Project Matter Voting Methodology. The performance contemplated under this Agreement and rights and obligations of SCPPA under this Agreement shall be subject to the ultimate and supervening control of the Board of Directors. Actions by the SCPPA Board of Directors with respect to a Project Element in which the Participant is a Project Element Participant shall only be carried forth with Participant's participation. Voting on Project Element Determinations with respect to a Project Element which is proposed to become a SCPPA project shall be conducted in accordance with the voting procedures set forth in the Joint Powers Agreement. Participant will participate in the SCPPA Board of Directors meetings with respect to any Project Element in which it is a Project Element Participant and Participant will cooperate with SCPPA and the Board of Directors to provide for effective interchange of information relating to such Project Element to provide coordination on a prompt and orderly basis to SCPPA, in connection with the various financial, administrative and technical matters which may arise from time to time in connection with administration of Renewable Development Work and Pre -Operation Costs affecting the Project Element. All actions with respect to any Project Element or the Project as a whole taken by the SCPPA Board of Directors shall be carried out in conformance with SCPPA's Joint Powers Agreement, dated as of November 1, 1980, as amended. 9.2 Participant's Project Representative and Contract Administrator. In accordance with the provisions of Section 24 herein, Participant may designate an individual to act as the Project Representative and Contract Administrator who shall be responsible for the ongoing exchange of information, coordination and Phase II Renewable Development Agreement -55- cooperation with SCPPA and such elections with respect to Project Elements under this Agreement as may be necessary to carry out the Participants renewable energy goals with respect to the Project. Participant may designate alternate representatives by similar notice to act as alternates in place of or on behalf of its regular Project Representative and Contract Administrator, in the absence of the regular representative or to act on specified occasions with respect to specified matters. Participant shall promptly give notice to SCPPA of any change in the designation of its representative or alternate representative. 9.3 Duties and Responsibilities of the Board of Directors The actions carried forth pursuant to this Agreement and the agreements associated with any Project Element as well as the rights and obligations of SCPPA in relation to the Participants under this Agreement or any agreement associated with ariy Project Element and under other agreements and arrangements pertaining to ongoing Phase I Project matters and Phase II Project matters, shall be subject to the ultimate control at all times of the Board of Directors. The Board of Directors shall have the following duties and responsibilities, among others: 9.3.1 The Board of Directors may, by resolution, authorize or prescribe alternative billing, payment, costing and cost reconciliation mechanisms as an alternative to the billing mechanisms otherwise provided in this agreement, to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to the Project or with respect to any Project Element. Phase II Renewable Development Agreement -56- 9.3.2 To the extent provided by law, the Board of Directors may, by resolution, act upon and approve the participation of additional .public agencies as participants in the Phase II Project (which additional public agencies, as applicable, may become Additional Parties under the terms and conditions of an agreement which mirrors this agreement) and shall have authority to approve any agreement with such an agency to carry forth such participation. 9.3.3 Where appropriate, the Board of Directors may provide overview or recommendations with respect to the progress of Renewable Development Work. 9.3.4 When necessary or appropriate the Board of Directors may provide liaison between SCPPA and the Project Manager and, where desirable or appropriate, between the Participant and other SCPPA members with respect to Renewable Development Work. 9.3.5 The Board of Directors shall exercise general supervision over any committee(s) created pursuant to Section 9.5 hereof, if any such committee(s) are so established 9.3.6 The Board of Directors shall review, discuss and attempt to resolve any problems, disputes or issues among members relating to any Project Element or relating to the Project in general. Phase II Renewable Development Agreement -57- 9.3.7 The Board of Directors shall review and act upon all recommendations of the Project Manager made to the Board of Directors to incur Pre - Operation Costs. 9.3.8 The Board of Directors may make recommendations to the Project Manager with respect to Renewable Development Work. 9.3.9 The Board of Directors may review written statistical and administrative reports and information and other similar reports and records furnished to the Board of Directors by the Project Manager. 9.3.10 The Board of Directors may review and act upon revisions recommended by the Project Manager with respect to the description of the Project or any Project Element, which revisions shall be in accordance with Prudent Utility Practice. 9.3.11 The Board of Directors may review and act upon other recommendations of the Project Manager 9.3.12 The Board of Directors, where appropriate, may create or issue such budgets or budgetary or cost payment mechanisms as may be appropriate or desirable to pay and account for all costs of Renewable Development Work. 9.3.13 The Board of Directors may review and act upon any and all contracts or contract amendments which relate to Renewable Development Work or the incurrence of Pre -Operation Costs. Phase I1 Renewable Development Agreement -58- 9.3.14 The Board of Directors may review and act upon all proposed amendments to this Agreement and, if any such amendment or amendments are approved, provide if requested, for the forwarding of same to the Participant which is signatory hereto. 9.3.15 The Board of Directors may review and act upon any litigation or potential litigation, including the settlement thereof, relating to Renewable Development Work or Pre -Operation Costs or otherwise arising out of or associated with any Project Element. 9.3.16 The Board of Directors may take such action as may be necessary to make preparations and arrangements for the financing of any Project Element which is being posed to be developed into a proposed SCPPA project and for SCPPA's interest therein. 9.3.17 The Board of Directors may review and act upon the contracts requested by, arranged for or otherwise negotiated by the Project Manager pursuant to .Section 5 hereof. 9.3.18 The Board of Directors is reposed with the complete power and authority to act upon any matter which is capable of being acted upon by the Coordinating Committee or which is specified as being within the authority of the Coordinating Committee pursuant to the provisions of this Agreement, including those matters enumerated in Section 8 of this Agreement. Phase 1I Renewable Development Agreement -59- 9.3.19 The Board of Directors may perform such other functions and duties as may be appropriate for the Board of Directors to efficiently carry forth the objectives of this Agreement. 9.4 Audits. The Board of Directors may arrange for audits of the books and cost records of the Project Manager and any cost reimbursable consultant or contractor, relating to the performance of Renewable Development Work or the incurrence of Pre -Operation Costs. 9.5 Establishment of Other Committees. The Board of Directors may establish other committees, including, but not limited to, auditing, legal, financial, engineering, operating, insurance, environmental and public information committees. The authority, membership, rules and duties of any such committee, if established, shall be as prescribed by the Board of Directors, and each such committee shall be subject to the provisions of this Agreement and shall be responsible to the Board of Directors. 9.6 Dele ag tion. To secure the timely administration of this Agreement by SCPPA and to promote the necessary actions, approvals and coordination in connection with various administrative, technical and other matters which .may arise from time to time in connection with the development, construction, management, operation, administration and maintenance of the Project, in appropriate cases the authority, powers, duties and responsibilities of the Board of Directors under this Section 9, may be delegated to the Executive Director. 10. OBLIGATIONS OF THE PARTIES. Phase II Renewable Development Agreement (5.1119 10.1 Furnishing Studies to SCPPA. Upon completion of the Renewable Development - Work, the Project Manager shall furnish to SCPPA copies of reports and studies which may have been developed during the planning and development stage related to the Renewable Development Work in addition to those described in Section 5.4.19 hereof. 10.2 Participant's Payment Obligations Unconditional, No Release of Project Manager from Its Obligations: Action by Parties Against Third Parties or Under this Agreement. The obligation of the Participant pursuant to this Agreement to make payments under this Agreement is absolute and unconditional,, irrespective of any rights of setoff or counterclaim Participant might otherwise have against SCPPA. Participant shall be responsible for such payments to SCPPA for any costs incurred by SCPPA for the benefit of Participant with respect to the Project or for the benefit of Participant as a Project Element Participant in any Project Element. This provision shall not be construed to release either SCPPA or Participant from the performance of either SCPPA's or the Participant's obligations or undertakings contained in this Agreement or to release the Project Manager from any of its obligations or undertakings, or, except to the extent provided in this Section, prevent or restrict any Participant at its own costs and expense, from prosecuting or defending any action or proceeding against or by third parties or taking any other action to secure or protect its rights under this Agreement; provided, however, that any costs incurred by SCPPA in prosecuting or defending any such action or proceeding or taking any other action to secure or protect its Phase II Renewable Development Agreement Ed rights under this Agreement shall be Renewable Development Work Costs which shall be paid as incurred by SCPPA, in accordance with this Agreement. 10.3 Parties to Furnish Information. In addition to its obligation to provide information to the Project Manager as provided in Section 5.3 hereof, SCPPA and Participant each agree to cooperate fully in connection with any regulatory authority, as required, in connection with obtaining leases, permits, licenses, entitlements, rights, certifications and approvals, including such city, county or other local approvals as may be necessary or appropriate to the Project pursuant to Section 5.4.1 hereof. Such cooperation may include, but shall not be limited to, the furnishing of necessary financial, operational and other information of either Party as related to the Project. Nothing in this section shall preclude SCPPA or Participant from contesting the validity or applicability of any such conditions, permits, approvals, or regulatory or governmental authorizations in good faith by appropriate proceedings. 11. WITHDRAWAL FROM THE PROJECT. 11.1 Withdrawal from the Project. Notwithstanding the expiration date otherwise prescribed for this Agreement, Participant may unilaterally terminate this Agreement at any time during the Term upon 180 days written notice to SCPPA. Upon such unilateral termination by Participant, SCPPA shall transfer or assign to Participant, and Participant shall assume all SCPPA's rights, responsibilities, obligations and liabilities associated with the Project including all rights and obligations of SCPPA under such Project Agreements as may be applicable but Phase It Renewable Development Agreement -62- only to the extent such Project Agreements permit such an assignment. Notwithstanding the unilateral withdrawal right under this Section 11.1, if any of SCPPA's obligations associated with the Project, pursuant to any Project Agreement or any other applicable agreement for development of the project or for the effectuation of any such withdrawal or assignments, survive said transfer from SCPPA to Participant, then any such obligations shall continue to remain the obligation of Participant and shall survive under this Agreement. Any outstanding payment obligations of _Participant due to Renewable Development Work Costs incurred prior to the date of withdrawal and any outstanding Pre - Operation Costs incurred by the Project Manager or otherwise on behalf of the withdrawing Participant prior to the date of withdrawal shall continue until satisfied, and Participant shall be entitled to access to and, upon request, receive copies of documents relating to Renewable •. Development Work and the incurrence of Pre -Operation Costs pertaining thereto. 11.2 No Reimbursement of Costs upon Withdrawal. Exception. Should Participant withdraw from a Project Element pursuant to Section 11.1 herein, it shall not be entitled to reimbursement of Renewable Development Work Costs incurred by SCPPA except as to those costs for which SCPPA is able to obtain reimbursement. 12. PARTICIPANT'S ELECTION TO PROCEED WITH REPECT TO A PROJECT ELEMENT. Phase II Renewable Development Agreement -63- 12.1 Action of the Parties at or near the Conclusion of Renewable Development Work. Based upon the results of Renewable Development Work and a determination by any respective Project Representative and Contract Administrator, or the Coordinating Committee or the Board of Directors that Renewable Development Work (or substantially all Renewable Development Work) with respect to a Project Element is for practical purposes, complete and that the Project Element is fully subscribed and should proceed, or that the Project Element should proceed even though some Renewable Development Work may remain, the Project Element Participants shall review as soon as possible and, as applicable, act upon (i) a description of the proposed project, (ii) the proposed schedules and various cost estimates associated with the final implementation of the proposed project and (iii) the instruments and agreements which should be approved by the approving authorities of each.of the Project Element Participants, including but not limited to Power Sales Agreements, Participation Agreements, Transmission Services Agreements or other or additional similar agreements or instruments by which to implement the proposed project. 12.2 Exercise of Election to Proceed with the Project. After satisfying the matters addressed in Section 12.1 Participant and SCPPA shall, at a time governed by their respective approval. processes and the extent of the governmental business before their respective approving authorities, elect whether each Party wishes to proceed with the proposed project. Such election may be provided to SCPPA by way of the approval of the agreements for implementation of the proposed project by the Project Element Participants' respective governing bodies. Provided, Phase II Renewable Development Agreement however, that the proposed project shall not be finally approved or proceed unless and until the appropriate SCPPA subscription in the proposed project is obtained by way of final approval by the respective Project Element Participants' governing bodies. 13. EXECUTION OF PROJECT AGREEMENTS. As soon as practicable after the Parties have elected pursuant to Section 12 to proceed with the.Project, the Project Manager shall assist SCPPA in the preparation and approval of any remaining Project Agreements which may be appropriate for the Project and (ii) such other matters as shall be necessary or desirable to complete said Project Agreements including, without limitation, a detailed description of the Project as then proposed. The Parties hereby agree that they will use their best efforts to obtain all such authorizations and approvals as promptly as possible. 14. LIABILITY 14.1 No Liability of SCPPA. Participants, or the Project Manager, their Directors Officers, Em lloovees, Etc., SCPPA and its Directors Officers Employees and Proiect Manager and its Directors Officers Employees Not Individually Liable, Subject to the conditions set forth herein and except for the duty of each Participant to pay its costs under this Agreement as set forth in the last sentence of this Section 14.1, the Parties to this Agreement agree that neither SCPPA; Participants or the Project Manager (in its capacity as Project Manager separate and apart from its capacity as a Participant) nor any of their past, present or future directors, officers, employees, board members, agents, attorneys or advisors (collectively the "Released Parties") shall be liable for any claims, demands, Phase II Renewable Development Agreement !rile liabilities, obligations, losses, damages (whether direct, indirect or consequential), penalties, actions, loss of profits, judgments, orders, suits, costs, expenses (including attorneys' fees and expenses) or disbursements of any kind or nature whatsoever in law, equity or otherwise (including, without limitation, death, bodily injury or personal injury to any person or damage or destruction to any property of any .of the Participants, SCPPA or third persons) suffered by any Released Party as a result of the performance or non-performance by any of the Released Parties under this Agreement .(excluding gross negligence. or willful misconduct which, unless otherwise agreed to by the Parties, are both to be determined and established by a court of competent jurisdiction in a final, nonappealable order). Each Party releases the Released Parties from any claim or liability that the Party may have cause to assert as a result of any actions or inactions or performance or non-performance by the Released Parties under this Agreement (excluding gross negligence or willful misconduct which, unless otherwise agreed to by the Parties, are both to be determined and established by a court of competent jurisdiction in a final, non -appealable order). No such performance or non-performance by the Released Parties shall relieve either SCPPA, Participants or the Project Manager of their respective obligations under this Agreement, including either Party's obligation to make payments required under this Agreement. The provisions of this Section 14.1 shall not be construed so as to otherwise relieve the Project Manager, from any obligation under this Agreement or other applicable agreements. It is also hereby recognized and agreed that no member of the Board of Directors, the Project Manager or SCPPA Phase fI Renewable Development Agreement = or the Participants, nor their officers, employees, board members, agents, attorneys or advisors, shall be individually liable in respect of any undertakings by any of the Released Parties under this Agreement. The provisions of this Section 14.1 with respect to the Project Manager shall only apply to the Project Manager in its capacity as Project Manager, and shall not extend to or affect any payment obligations incurred in its capacity as a Participant. Therefore, notwithstanding any provision of this Agreement . which might . arguably be construed to the contrary, nothing in this Section 14 shall affect a Participant's obligation to pay its appropriate Renewable Development Work Cost Share or its proportionate share of Pre -Operation costs which are imposed upon it in its capacity as a Participant, or Project Element Participant under its Phase II Renewable Development Agreement, irrespective of whether or not the Participant or Project Element Participant is also serving in the capacity of Project Manager. For the avoidance of doubt, nothing in this Section 14.1 or in any other provision of this Agreement shall affect Participant's obligation to make any and all payments in accordance with the first two sentences in Section 10.2 of this Agreement and Section 2.24 of this Agreement or to pay any other amounts or costs required to be paid by it under this Agreement. 14.2 Limitation on Liability. It is hereby recognized and agreed that SCPPA's directors, officers and employees shall not be individually liable with respect to any loss or damage not covered by insurance and resulting from Renewable Development Work, matters relating to Pre -Operation Costs or the performance or nonperformance of any obligation under this Agreement. The obligations of Phase II Renewable Development Agreement -67- SCPPA under this Agreement shall never constitute a debt or indebtedness of SCPPA within the meaning of any provision or limitation of the Constitution or statutes of the State of California and shall not constitute or give rise to a pecuniary liability of SCPPA or a charge against its general credit. 14.3 Extent of Exculpation: Enforcement of Rights in Equity.. The exculpation provision set forth in Section 14.1 and 14.2 hereof shall apply to all types of claims or actions including, but not limited to, claims or actions based on contract or tort. Notwithstanding the foregoing, either Party may protect and enforce its rights under this Agreement by a suit or suits in equity for specific performance of any obligation or duty of the other Party, and each Party shall at all times retain the right to recover, through appropriate legal proceedings, any amount determined to have been an overpayment, underpayment or other direct monetary damages owed by either a Participant, SCPPA or the Project Manager as the case may be, including, without limitation, any costs payable to SCPPA and any costs payable to the Project Manager in its capacity as Project Manager in accordance with the terms of this Agreement. 14.4 Allocation of Costs to Discharge Liability. The costs and expenses of discharging liability of either of SCPPA or Participant, or the respective past, present or future directors, officers, employees, board members, agents, attorneys or advisors of each, to a third party, resulting from Renewable Development Work, the incurrence of Pre -Operation Costs or the performance or nonperformance of any obligation under this Agreement with respect to any Project Element, and for which payment is not made by insurance provided through SCPPA, shall be Phase II Renewable Development Agreement -68- allocated to the Project Element Participants in accordance with the Entitlement Share of each such Project Element Participant in such Project Element. 14.5 Application of California Law of Contribution. In conformance with the philosophy of the Southern California Public Power Authority upon this subject as embodied in Section 7 of the Joint Powers Agreement, the following principles shall apply with respect to the law of contribution between the respective Project Element Participants in a Project Element under this Agreement. 14:5.1 Notwithstanding any provision of this Agreement to the contrary, in the event any Project Element Participant is held liable upon any judgment for damages (whether direct, indirect or consequential) caused by a negligent or wrongful act or omission occurring with respect to a Project Element in which it is participating, and to the extent reasonable expenses (including without limitation, attorney's fees) are incurred by the Project Element Participant with respect to the relevant action or suit (such expenses and judgment for damages collectively to be termed "Judgment Damages") and further provided that such Project Element Participant pays in excess of its Liability Share of such Judgment Damages, such Project Element Participant shall be entitled to contribution from each other Project Element Participant in such Project Element and such Project Element.Participant. may require each other Project Element Participant to pay any amount in excess of such Project Element Participant's Liability Share of such judgment which such Project Element Participant has paid, but in no event shall any Phase II Renewable Development Agreement such other Project Element Participant be so required to pay in excess of such other Project Element Participant's Liability Share of such Judgment Damages. 14.5.2 With respect to any Judgment Damages or portion thereof referenced in Section 14.5.1 the term "Liability Share" shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Project Element Participant's then existing entitlement or right, if any, to participate in such Project Element, divided by (ii) the aggregate amount of all Project Element Participants' entitlements or rights to participate in such Project Element. 14.6 No Relief of Insured Obligations. The provisions of this Section 14 shall not be construed so as to relieve any insurer of its obligation to pay any insurance proceeds in accordance with the terms and conditions of a valid and collectible insurance policy. 15. DEFAULT. 15.1 Notice of Default.If either Party to this Agreement is of the opinion that the other Party is in default under this Agreement, the Party having that opinion may give written notice to the other Party of the alleged default. At its next regularly scheduled meeting the Board of Directors shall attempt to informally resolve the matter. If no such informal resolution can be achieved by the Board of Directors the Board of Directors shall determine the existence and nature of the alleged default after opportunity by each Party to provide a full presentation of all facts Phase II Renewable Development Agreement -70- and issues in dispute, by a vote taken by the Board of Directors, excluding the vote of Participant. If it is determined by such vote (as adjusted to eliminate the voting percentage of Participant) that a default exists, the Board of Directors shall request that the defaulting Party immediately cure the default. 1.5.2 Obligation to Cure Default. Subject to Section 15.3 hereof, a Party determined to be in default by the Board of Directors pursuant to Section IS. I shall take all steps necessary to cure such default as promptly and completely as possible. 15.3 Initial Dispute Resolution of Alleged Default. In the event that a Party. shall dispute the existence or nature of a default determined by the Board of Directors pursuant to Section 15.1 hereof, such Party shall pay the disputed payment or perform the disputed obligation but may do so under protest. Any such protest shall be promptly filed in writing with the Secretary of the Board of Directors and shall specify the ground on which the protest is based. Upon the filing of such a protest the Parties agree that the Parties shall first employ the non -binding mediation process which is set forth in this Section 15.3 before initiating any other legal action. 15.3.1 Unless the time requirement is otherwise extended by the mutual assent of the Parties, as soon as practicable after the filing of the protest of a Party pursuant to Section 15.3 but not later than thirty (30) days after the determination by the SCPPA Board of Directors pursuant to Section 1.5.1 herein, the Parties shall select a retired judge or other disinterested person with previous mediation experience to serve as mediator. Phase II Renewable Development Agreement -71- Unless this requirement is waived by the mutual agreement of the Parties, the mediator, in his or her personal capacity, shall not be a ratepayer of the Participant. Unless otherwise waived by mutual agreement of the Parties, either Party may require disclosure by the mediator of those matters, as shall be specified by the requesting Party, which are set forth in Standard 7 of the 'Ethics Standards for Neutral Arbitrators in Contractual Arbitration" (Division VI of Appendix to California Rules of Court) or such successor ethical standard for neutral arbitrators in contractual arbitration promulgated by the California Judicial Council or its successor body, requiring neutral arbitrators in contractual arbitrations to disclose certain interests they may have in relation to the matter to the Parties. 15.3.2 If the Parties are unable to agree upon a mediator, the Parties shall obtain a list of proposed mediators from the Judicial Arbitration and Mediation Service (JAMS) or successor organization. Unless waived by the Parties the proposed mediators shall satisfy the conditions regarding rate payer status and disclosure set forth in Section 15.3.1. Once the list is provided, the Parties shall each have ten (10) days in which to . strike names objected to, number . the remaining names in order of preference, and return the list to the JAMS. If a Party does not return the list within the time specified, all persons named therein shall be deemed acceptable. From among the persons who have been approved on both lists, and in accordance with the designated order of Phase II Renewable Development Agreement -72- mutual preference, the JAMS shall invite the acceptance of a mediator to serve. If the Parties fail to agree on any of the persons named, or if acceptable mediators are unable to act, or if for any other reason the appointment cannot be made from the submitted lists, the Parties shall repeat the procedure set forth in this Section 15.3.2 unless the Parties shall agree to another process for selection of a mediator. 15.3.3 The mediation shall be commenced within sixty (60) days of the final determination by the SCPPA Board of Directors, referenced in Section 15.1, that it is unable to resolve the dispute and shall be concluded within thirty (30) days from the commencement of the mediation unless the time requirements are extended upon agreement of the Parties. 15.3.4 Failure of Resolution through Mediation. If the non binding mediation set forth herein fails to resolve the dispute and if the dispute still cannot, even with the hindsight of the mediation, be resolved by the by the SCPPA Board of Directors, either Party may take any action permitted by law to enforce its rights under this Agreement, including but not limited to termination of this Agreement, and/or bring any suit, action or proceeding at law or in equity as may be necessary or appropriate to recover damages and/or enforce any covenant, agreement or obligation in dispute. 16. ARBITRATION. Nothing herein shall prevent the Parties from resolving any dispute under this Agreement by submission of the dispute to such form of arbitration as the Phase II Renewable Development Agreement -73- Parties may agree upon, provided however, that the Parties shall first exhaust the mediation process set forth in Section 15 hereof. 17. RELATIONSHIP OF PARTIES 17.1 Individual Responsibili1y. The covenants, obligations and liabilities of this Agreement shall not be construed to create an association, joint venture, trust, partnership or other legal entity or to impose a trust or partnership covenant, obligation of liability on or with regard to the Parties. Each Party shall be individually responsible for its own covenants, obligations and liabilities under this Agreement; provided, however, that any liability incurred by SCPPA and/or the Project Manager, under this Agreement shall be treated as Renewable Development Work Costs which shall be paid or reimbursed by Participant. 17.2 Methodologies for Cost Sharing. The Parties mutually acknowledge that other SCPPA members, in addition to Participant, have expressed interest in planning and developing certain Project Elements which may form a portion of this Phase II project. Whenever feasible and practicable, and to the extent the costs of such Renewable Development Work relating to such other SCPPA members can be shared by Participant and such other participating SCPPA members, SCPPA shall endeavor to implement a mutually agreeable and equitable methodology to share such costs among the participating members. Participant agrees to pay its share of all such costs. 18. BINDING OBLIGATIONS. All of the obligations set forth in this Agreement shall bind the Parties and their successors and assigns. Phase II Renewable Development Agreement -74- 19. ASSIGNMENT. 19.1 Limited Assignment Right. A Participant may assign or convey all or part of its rights, interests and obligations with respect to a Project Element under this Agreement to a third party (non Participant), provided that (i) the Coordinating Committee approves of such assignment, which such approval may be withheld for any reason or no reason at all at the sole discretion of the Coordinating Committee and (ii) the Coordinating Committee may, as a condition to approving the assignment, require that the remaining Participants which may be signatory to a Phase I Agreement or Phase II Agreement, may have the right of first refusal on such terms and under such time constraints as the Coordinating Committee may specify. 19.2 Assignment Procedures. Prior to any third party, assignment, the assigning Participant by United States Postal Service certified mail shall offer in writing to each of the remaining Participants its Renewable Development Work Cost Share, Pre -Operation Cost share or its share of the Project Element upon the same or better terms and conditions provided to the third party. Upon receipt of such written offer each remaining Participant shall have 30 days in which to exercise its right of first refusal. Exercise of such right shall be in writing and communicated to the assigning Participant by United States Postal Service Certified Mail. If more than the total amount of the assigning Participant's Renewable Development Work Cost Share, Pre -Operation Cost share or its share of the Project Element is requested to be assigned to the remaining Participants, the assigning Participant's Renewable Development Work Cost Share, Pre - Phase II Renewable Development Agreement -75- Operation Cost share or its share of the Project Element shall be allocated pro rata (based upon the amounts requested) to the remaining Participants, and such allocation shall be deemed effective upon compliance with Section 19.2 and 19.3 hereof. 19.3 Effectiveness of Assignment. Any assignment shall not become effective until (i) the assignee assumes the assignor's rights, interests and obligations under this Agreement for the rights, interests and obligations so assigned and pays any amount (or the applicable portion thereof) then due and owing by the assignor under this Agreement (unless the assignor has agreed pursuant to the applicable assignment agreement to pay all such amounts then due and owing by the assignor) and (ii) the assignee executes and delivers to the Project Manager a signature page to this Agreement in substantially the form attached hereto or otherwise enters into an agreement mutually agreeable to assignor, assignee and the non -assigning Participants as a substitute agreement to this Agreement. Upon any such assignment and execution of this Agreement or applicable substitute agreement, the assignee shall become a party to such agreement and a Participant in the Project as of the effective date of the assignment. Immediately following such assignment and execution of this Agreement or applicable substitute agreement, the Project Manager promptly shall distribute to each Party (i) a copy of the signature page signed by the assignee, (ii) a revised cover page and page 1 of this Agreement or the applicable substitute agreement that includes the name of the assignee, (iii) a revised Exhibit A hereto, if applicable and (iv) the address, Phase II Renewable Development Agreement -76- contact and notice information pertaining to the assignee for purposes of Section 23.1 hereof. 20. GENERAL PROVISIONS. 20.1 Waiver Not to Affect Subsequent Defaults. A waiver at any time by any Party of its rights with respect to a default or any other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any other or subsequent default or matter. 20.2 Execution in Counterparts. This Agreement may be executed in counterparts, and each signatory Party shall deliver its executed counterparts to the Project Manager. All such counterparts, collectively, shall constitute but one and the same agreement. 20.3 No Ri@.hts in Third Parties or Duties Created. Except as provided in this Agreement, the Parties do not create any rights in or grant remedies to any third party as a beneficiary of this Agreement or create for the benefit of any third party any duty or standard of care by any covenant, obligation or undertaking established herein. 20.4 Headings Not Binding. The headings and captions in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. Phase Il Renewable Development Agreement -77- 20.5 Severability. In the event that any provision of this Agreement shall be determined to be invalid or unenforceable in any respect, such determination shall not affect any other provision hereof, which shall remain in full force and effect. 20.6 Amendments. Except as otherwise provided in this Agreement, including but not limited to Section 8.5 and 9.3 hereof, this Agreement may be amended only by a written amendment signed by the Parties. 20.7 Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to Renewable Development Work, Pre -Operation Costs and the Project. 21. GOVERNING LAW AND VENUE. This Agreement shall be interpreted, governed by -and construed under the laws of the State of California, as if executed and to be performed wholly within the State of California. The Parties each submit to the jurisdiction of the Courts of Los Angeles County and unless the Parties shalt agree otherwise, venue with respect to any dispute resolution or litigation arising out of this Agreement shall be inLosAngeles County. 22. EFFECTIVE DATE AND TERMINATION. MI. Effective Date. This Agreement shall become effective when duly executed and delivered by Participant and. SCPPA. 22.2 Termination. Phase II Renewable Development Agreement -78- 22.2.1 Unless terminated earlier pursuant to Section 22.2.2 hereof, with the mutual concurrence of the Parties, the provisions of this Agreement with respect to a Project Element may be deemed terminated upon the execution of a Power Sales Agreement, Transmission Services Agreement or Participation Agreement with respect to such a Project Element, except that any payment obligation hereunder (whether or not a billing statement has been received by the date of termination) and any right to receive reimbursement or otherwise, if any should exist, shall survive until satisfied. 22.2.2 This Agreement may 'be terminated at any time by agreement of the Parties hereto. Upon such agreement or upon termination of this Agreement, (i). the Project Manager shall terminate all Renewable Development Work respecting Participant in an orderly manner, (ii) Participant shall fulfill all obligations hereunder to pay for the costs incurred for Renewable Development Work, including any Pre - Operation Costs that have been incurred, and (iii) any payment obligation hereunder (whether or not a billing statement has been received by the date of termination) and any right to receive . reimbursement or otherwise, if any should exist, shall survive until . satisfied. 22.2.3 Upon termination of this Agreement, the Project Manager shall retain in a reasonably accessible location all original reports, data and other documentation relating to Renewable Development Work and the Phase II Renewable Development Agreement -79- incurrence of Pre -Operation Costs for a period of three (3) years from the date this Agreement is terminated. 22.2.4 Upon termination of this Agreement, and for a period of three (3) years thereafter, each Party shall have full access to the Project files and records retained by the Project Manager and upon reasonable notification to the Project Manager may, at the requesting Party's sole expense, reproduce any or all of such Project files and records to the extent permitted by law. 23. NOTICES. 23.1 Addresses for Notices. Any notice, demand or request provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the persons specified below: With respect to the City of Anaheim: City of Anaheim Attention: Public Utilities General Manager 201 South Anaheim Boulevard, 11th Floor Anaheim, California 92805 With respect to the City of Azusa: City of Azusa Director of Utilities City of Azusa Light and Water P.O Box 9500 (729 N. Azusa Ave.) Phase lI Renewable Development Agreement -80- Azusa, California 91702-9500 With respect to the City of Banning: City of Banning Electric Utility Department Attention: Fred Mason, Director 176 E. Lincoln Street Banning, CA 92220 With respect to the City of Burbank: City of Burbank Burbank Water and Power Attention: Ronald E. Davis, General Manager P.O. Box.631 Burbank, California 91503-0631 With respect to the City of Cerritos: City of Cerritos Attention: Art Gallucci, City Manager Alternate: Vince Brar 18125 Bloomfield Ave. Cerritos, CA 90703 With respect to the City of Colton: City of Colton Electric Utility Director 650 N. La Cadena Drive Colton, California 92324 With respect to the City of Glendale: City of Glendale Glendale Water and Power Attention: General Manager 141 N. Glendale Avenue, 4th Level Glendale, California 91206-4496 With respect to the City of Los Angeles Acting by and through the Department of Water and Power: Phase II Renewable. Development Agreement - 81.- General Manager Los Angeles Department of Water and Power I I I North Hill Street, 15th Floor Los Angeles. California 90012 With respect to the City of Pasadena: City of Pasadena Attention General Manager - Water and Power Department 150 S. Los Robles Avenue, Suite 200 Pasadena, California 91101 With respect to the Imperial Irrigation District: Imperial Irrigation District Manager, Energy Department P. O. Box 937 (333 East Barioni Blvd.) Imperial, California 92251-0937 With respect to the City of Riverside: City of Riverside Riverside Public Utilities Dept. Attention: David H. Wright, General Manager 3901 Orange Street Riverside, California 92522 With respect to the City of Vernon: Abraham Alemu City of Vernon Resource Planning & Development Manager 4305 Santa Fe Avenue Vernon, CA 90058 With respect to SCPPA: Southern California Public Power Authority Executive Director SCPPA Office Building 1160 Nicole Court Glendora, California 91740 Phase II Renewable Development Agreement -82- 23.2 Designation of Different Addresses and Persons. Any Party may, at any time, by written notice to the other Parties, designate different persons or different addresses for giving of notices hereunder. 24. DESIGNATION OF THE PARTICIPANT'S PROJECT REPRESENTATIVE AND CONTRACT ADMINISTRATOR. Participant's Project Representative and Contract Administrator for this Agreement having the complete capacity and plenary authority to administer this Agreement on behalf of Participant shall be the individual so designated by the person authorized to receive notices pursuant to Section 23. 25. AGREEMENT TO BE EFFECTIVE AS BETWEEN SCPPA AND PARTICIPANT UPON APPROVAL BY PARTICIPANT'S APPROVING AUTHORITY. This Agreement shall become effective between SCPPA and the Participant which is signatory to this Agreement, upon approval by the signatory Participant's approving authority, irrespective of whether or not approved by any of the other Participants. SIGNATURE PAGE FOLLOWS Phase II Renewable Development Agreement -83- IN WITNESS WHEREOF, each signatory hereto represents that he or she has been properly authorized to execute and deliver this Agreement as of the date first above written, on behalf of the Party for which he or she signs. Date: 2012 CITY OF ANAHEIM (Seal) BY Attest: Title Date:- 2012 CITY OF AZUSA (Seal) By Attest: Title Date: , 2012 CITY OF BANNING (Seal) BY Attest: Title Phase II Renewable Development Agreement -84- Date: 2012 (Seal) Attest: Date: (Seal) Attest: Date: (Seal) Attest: 001% 2012 CITY OF BURBANK By_ Title CITY OF CERRITOS L-A Title CITY OF COLTON M Title Phase II Renewable Development. Agreement -85- Date: 2012 CITY OF GLENDALE (Sea]) Attest: Date: (Seal) Attest: 2012 Date: 12012 (Seal) Attest: By Title IMPERIAL IRRIGATION DISTRICT By Title CITY OF LOS ANGELES acting by and through its DEPARTMENT OF WATER AND POWER Title And Secretary. Phase II Renewable Development Agreement Date: 2012 CITY OF PASADENA (Seal) By Attest: Title Date: 2012 CITY OF RIVERSIDE (Seal) By Attest: Title Date: 2012 CITY OF VERNON (Seal) By Attest: Title Date: 1.2012 (Seal) Attest: By_ Title Phase II Renewable Development Agreement -87- Date: 2012 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY. (Seal) Attest: By BILL D. CARNAHAN Title: Assistant Secret RONALD E. DAVIS Title: President Phase II Renewable Development Agreement -88- EXHIBIT "A" EXHIBIT A - PROJECT ELEMENT NO. 1 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. I Participants Proposed Production Capacity Entitlement Share Renewable . Development . Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED 1N THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase'II Renewable Development Agreement Exhibit A-1 EXHIBIT A - PROJECT ELEMENT NO.2 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PRn-M..CT RUPMTi NT Wn O - Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim .0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9; 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE. REFERENCED IN; APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-2 EXHIBIT A — PROJECT ELEMENT NO.3 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.3 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrijatioi District 0 0 0 City of Los.Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total _ tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND, COST SHARES. NEW PROJECT ELEMENTS MAY ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY. A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-3 EXHIBIT A — PROJECT ELEMENT NO.4 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.4 Participants . Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 100% 100% ' EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. - Phase II Renewable Development Agreement Exhibit A-4 EXHIBIT A — PROJECT ELEMENT NO.5 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT F,i,F.MF.NT IVn C Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 ' City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 . 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, A14D REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE, ADDED BY THE COORDINATING COMMITTEE,OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HERBIN,.AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR Phase II Renewable Development Agreement Exhibit A-5 EXHIBIT A — PROJECT ELEMENT NO.6 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.6 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 1000/0 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT. REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR.OTHER WISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-6 EXHIBIT A — PROJECT ELEMENT NO.7 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.7 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District —0 --0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING. COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENTSHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE. COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE.OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-7 EXHIBIT A — PROJECT ELEMENT NO.8 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.8 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa, 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District. 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAYBE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-8 EXHIBIT A — PROJECT ELEMENT NO.9 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.9 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND'19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR Phase II Renewable Development Agreement Exhibit A-9 EXHIBIT A — PROJECT ELEMENT NO. 10 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 10 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, S, 9, IQ 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A- 10 EXHIBIT A — PROJECT ELEMENT NO. 11 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 11 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% . EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9; 10, 11, 14 AND 19 HEREOF. THIS'TABLE MAY BE REVISED; MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE . BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-11 EXHIBIT A — PROJECT ELEMENT NO. 12 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 12 Participants Proposed Production Capacity Entitlement Share. Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A- 12 EXHIBIT A — PROJECT ELEMENT NO. 13 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.13 Participants Proposed Production Capacity Entitlement Share Renewable. Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTIERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED•IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase JI Renewable Development Agreement Exhibit A-13 EXHIBIT A — PROJECT ELEMENT NO. 14 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 14 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share A MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, G, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMI7TEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-14 EXHIBIT A — PROJECT ELEMENT NO. 15 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 15 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% . EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT 'SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY -A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A- 15 EXHIBIT A — PROJECT ELEMENT NO. 16 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 16 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO . REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A- 16 EXHIBIT A — PROJECT ELEMENT NO. 17 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 17 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE. COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT.AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE . BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR - Phase II Renewable Development Agreement Exhibit A- 17 EXHIBIT A — PROJECT ELEMENT NO. 18 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT .. WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 18 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa' 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0. 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE: PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11 14 AND 19 HEREOF. THIS TABLE MAYBE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A- 18 EXHIBIT A — PROJECT ELEMENT NO. 19 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. 19 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena (1 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY', ENTITLEMENT SHARES,. PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE.. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-19 OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 August 22, 2012 Southern California Public Power Authority Attn: Randy Howard 1160 Nicole Court Glendora, CA 91740 Re: Phase II Renewable Development Agreement Dear Mr. Howard: Transmitted herewith is the original signature page of the above -referenced agreement executed by the City of Vernon, and approved by City Council on August 21, 2012, through Resolution No. 2012-165. Please ensure that a fully executed copy of the agreement is returned to the attention of the undersigned. If you have any questions regarding this matter, please call Carlos Fandino at (323) 583-8811 ext. 834. Very tru y yours, Deborah R. Juarez Records Management Assistant Enclosures c: Carlos Fandino Resolution No. 2012-165 Agreement No. 12-089 Excfusivefy Industrial Date: . 2012 (Seal) Attest: Date: 12012 (Seal) Attest: Date: ✓a&"..c k ova, 2012 (Seal) (Seal) CyrWKS]a 9 MM 03QM Title CITY OF RIVERSIDE am Title CITY OF VERNON B William Davis Title Mayor Pro—Tem Attest: By— Title Phase II Renewable Development Agreement -87- RECEIVED RECEIVIED AUG 13 2012 AUG 15 2012 CITY ADMINISTRATION CITY CLERK'S OFFICE STAFF REPORT LIGHT & POWER DATE: August 13, 2012 TO: Honorable Mayor and City Council n / FROM: Carlos R. Fandino, Jr., Director of Light & Power !� RE: Phase II Renewable Development Agreement PURPOSE The Phase II Renewable Development Agreement has been developed between SCPPA and SCPPA members to carry forth renewable energy resource acquisition efforts between current time and 2020 and to assist members in reaching their 2020 renewable energy goals. The attached final version of the Phase II Renewable Development Agreement has been reviewed and approved as to form by the City's Legal Department. RECOMMENDATION Recommend attached Phase II Renewable Development Agreement be approved for execution at the August 21, 2012 council meeting. FISCAL IMPACT No fiscal impact. CRF:ah Attachments (2) Phase II Renewable Development Agreement k �ryt EG CITY ATTORNEY'S OFFICE INTER -DEPARTMENT MEMORANDUM DATE: August 9, 2012 TO: Carlos Fandino, Director of Light & Power / FROM: Willard G. Yamaguchi, Chief Deputy City Attorne( RE: Phase II Renewable Development Agreement lv U I have received and reviewed your Memorandum dated August 2, 2012, and the attachments thereto. The revised Agreement is approved as to form. WY:em Enclosures PHASE xI RENEWABLE DEVELOPMENT AGREEMENT BETWEEN SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND THE CITY OF ANAHEIM; THE CITY OF AZUSA; THE CITY OF BANNING; THE CITY OF BURBANK; THE CITY OF CERRITOS; THE CITY OF' COLTON; THE CITY OF GLENDALE; THE IMPERIAL IRRIGATION DISTRICT; THE CITY OF LOS ANGELES ACTING BY AND THROUGH THE DEPARTMENT OF WATER AND POWER; THE CITY OF PASADENA; THE CITY OF RIVERSIDE; THE CITY OF VERNON (AS APPPLICABLE) DATED FOR CONVENIENCE AS OF JUL Y l 8, 20:12 TABLE OF CONTENTS SECTION PAGE 1. PARTIES, PHASE II RENEWABLE DEVELOPMENT AGREEMENTS TO BE SEPARATELY AND INDIVIDUALLY EFFECTIVE ...........................:........................ I 2. RECITALS ...................... ..... 2 3. AGREEMENT.................................................................................................................12 4. DEFINITIONS.................................................................................................................12 4.1 Acquisition...........................................................................................................13 4.2 Act........................................................................................................................13 4.3 Additional Party ................... .................. ................................ .......................13 4.4 Agreement............................................................................................................14 4.5 Board. of Directors................................................................................................14 4.6 Consolidated Coordinating Committee................................................................14 4.7 Entitlement Share.......................................................................... .14 ......... ......... ..... 4.8 Estimated Monthly Renewable Development Work Costs.................................14 4.9 Executive Director............................................................................................... 14 4.10 Financing Work...................................................................................................14 4.11 Joint Powers Agreement......................................................................................15 4.12 LADWP ................... ........•.....15 4.13 Participation Agreements..........................................................................15 4.14 Party ... .................................................................................. .................16, 4.15 Power Sales Agreement.......................................................... ....................16 4.16 Power_ Sales Agreement/Transmission Services Agreement Work .....................16 4.17 Phase I ......................................... :........................................................................ 16 4.18 Phase I Agreement ........... ..............................................17 4.19 Phase I Coordinating Committee.........................................................................17 4.20 Phase II.................................................................................................................17 4.21 Phase II Agreement..............................................................................................17 4.22 Phase II Coordinating Committee...............................:........................................17 4.23 Phase II Project....................................................................................................17 4.24 Pre -Operation Costs.....................................................:................:......................18 4.25 Project.........................................................................................................19 4.26 Project Representative and Contract Administrator............................:...............19 4.27 Project Agreements .................................... :............................. I ............................. 19 4.28 Project Element.................................................................................................... 20 4.29 Project Element Determination............................................................................ 20 4.30 Project Element Participant.................................................................................. 21 4.31 Project Manager...................................................................................................21 Phase 11 Renewable Development Agreement i 4.32 Project Matter....................................................................................................... 21 4.33 Prudent Utility Practice........................................................................................ 21 4.34 Renewable Development Work..........................:.:..............:............................... 22 4.35 Renewable Development Work Costs................................................................. 24 4.36 Renewable Development Work Cost Share......................................................... 24 4.37 Renewable Electric Energy Generation Resource ............................................... 24 4.38 Renewable Electric Energy Resource................................................................... 25 4.39 Renewable Electric Energy Resource Project ...................................................... 25 . 4.40 Renewable Electric Energy Transmission Resource ............................................ 25 4.41 Renewable Electric Energy Storage Resource ..................................................... 25 4.42 Renewable Portfolio Standard............................................................................. 25 4.43 Required Concurrence....................................................................................... 26 4.44 Transmission Services Agreement....................................................................... 26 5. PROJECT MANAGER ............................ :................................................ .....26 ................. 5.1 Appointment...........................:..................................................:......................... 26 5.2 Term .................................................... ................................................................... 27 5.3 Authority of the Project Manager........................................................................ 27 5.4 Duties and Responsibilities of the Project Manager ............................................ 28 5.5 No Warranty for Project Manager Services......................................................... 35 5.6 Indemnification of the Project Manager.............................................................. 35 6. RENEWABLE DEVELOPMENT WORK BUDGET; SCHEDULE; COSTS; ANDAUDITS.................................................................................................................36 6.1 Initial Budget, Not to Exceed Costs..................................................................... 36 6.2 Initial Schedule..................................................................... 6.3 Renewable Development Work Costs................................................................. 38 6.4 Renewable Development Work Cost. Share......................................................... 41 6.5 Costs of Expenses Incurred for Sole Benefit of Purchaser....... ........................... 41 6.6 Final Audit of Renewable Development Work Costs and Pre -Operation Costs...................................................................................................................... 42 6.7 Interim Audit of Renewable Development Work Costs and Pre -Operation Costs..................................................................................... ............................ 42 7. PAYMENT OF RENEWABLE DEVELOPMENT WORK COSTS -AND PRE - OPERATIONCOSTS..................................................................................................... 42 7.1 Payment of Costs..................................................:.............................................. 43 7.2 Payment of Invoices.....................:....................................................................... 43 7.3 Disputed Invoices.................................................................................................44 7.4 Adjustments to Billings........................................................................................ 44 7.5 Incurrence of Pre -Operation Costs ................... ....... ............ ................................. 44 7.6 Other Additional Cost Reconciliation Mechanisms .:.......................................... 44 8. COORDINATING COMMITTEE.................................................................................. 45 8.1 Formation.............................................................................................................45 Phase II Renewable Development Agreement 11 8.2 Duties and Responsibilities of the Coordinating Committee ............................... 48. 8.3 Arranging for Audits of Project Manager's Records ............................................ 52 8.4 Establishment of Other Committees .................................................I.............. 53 8.5 Limited Authority of Coordinating Committee to Amend Agreement ......:......:. 53 8.6 Written Records to be Kept ................................................................... 54 .. . ........ .. 8.7 Cost Incurred by Representatives of Participants ....................................... I........ 54 9. ROLE OF THE PARTICIPANT, THE BOARD OF DIRECTORS AND THE SCPPA EXECUTIVE DIRECTOR................................................................................. 54 9.1 Project Matter Voting Methodology.................................................................... 54 9.2 Participant's Project Representative and Contract Administrator ........................ 55 9.3 Duties and Responsibilities of the Board of Directors ......:................................. 56 9.4 Audits...................................................................................................................60 9.5 Establishment of Other Committees...... .. .............. + ......................... . 60 9.6 Delegation................ ................................................. 60 10. OBLIGATIONS OF THE PARTIES............................................................................... 60 10.1 Furnishing Studies to SCPPA................................_.............................................60 .10.2 Participant's Payment Obligations Unconditional; No Release of Project Manager from Its Obligations; Action by Parties Against Third Parties or Under this Agreement........................................................................ ........ 61 10.3 Parties to Furnish Information............................................................................. 61 11. WITHDRAWAL., ......... I ...................................................................................... 11 .......... 62 11.1 Withdrawal from the Project................................................................................ 62 11.2 No Reimbursement of Costs upon Withdrawal, Exception ................................. 63 12. PARTICIPANT'S ELECTION TO PROCEED WITH THE PROJECT ........................63 12.1 Action of the Parties at or near the Conclusion of Renewable Development Work.................................................................................................................... 63 12.2 Exercise of Election to Proceed with the Project ................................................. 64 13. EXECUTION OF PROJECT AGREEMENTS...............................................................64 14. LIABILITY......................................................................................................................65 14.1 No Liability of the SCPPA, or the Project Manager, their Directors, Officers, Employees, Etc.; SCPPA and its Directors, Officers, Employees and Project Manager and its Directors, Officers, Employees Not IndividuallyLiable .............. :....................... ......................................................... 65 14.2 Limitation on Liability......................................................................................... 67 14.3 Extent of Exculpation; Enforcement of Rights in Equity .................................... 67 14.4 Allocation of Costs to Discharge Liability.......................................................... 68 14.5 No Relief of Insured Obligations........ ........ ......................................... 70 15. DEFAULT ....................... ........ ................... .. .................. ........................... 70 Phase II Renewable -Development Agreement iii 15.1 Notice of Default.................................................................................................. 70 ,15.2 Obligation to Cure Default.....:.............................................................................. 71 15.3 Initial Dispute Resolution of Alleged Default ..................................................... 71 16. ARBITRATION......................................................:....................:.........:........................ 73 17. - RELATIONSHIP OF PARTIES...................................................................................... 73 17.1 Individual Responsibility........................................................... I......................... 74 17.2 Methodologies for Cost Sharing.........:................................................................ 74 18. BINDING OBLIGATIONS............................................................................................. 74 19. ASSIGNMENT ................................... ....... _.....................:..............: ........ ........."........... 74 19.1 Limited Assignment Rights................................................................................. 74 19.2 Assignment Procedures........................................................................................ 75 19.3 Effectiveness of Assignment...... .......................................:. .............................. 76 20. GENERAL PROVISIONS.............................................................................................. 76 20.1 Waiver Not to Affect Subsequent Defaults..........:.............................................. 77 20.2 Execution in Counterparts..................................................................._................ 77 20.3 No Rights in Third Parties.or Duties Created ...... :................................................ 77 20.4 Headings Not Binding..............................................:........................................... 77 20.5 Severability................................. ...77 ...................................................................... 20.6 Amendments ................................................... *"*'"*"'*'........... ......*'""'............ .. '. 78 20.7 Entire Agreement........................................................:........................................ 78 21. GOVERNING LAW AND VENUE ..................... ............... 78 ...................:....................... 22. EFFECTIVE DATE AND TERMINATION ............................. ............................... 78 22.1 Effective Date ................................ ....................................................................... 78 22.2 Termination..........................................................................................................78 23. NOTICES.......:.................................................................................................................80 23.1 Addresses for Notices ........... ................. ..... ...................... 80 23.2 Designation of Different Addresses and Persons ................................................. 82 24. DESIGNATION OF PURCHASER'S PROJECT REPRESENTATIVE AND CONTRACT ADMINISTRATOR .............................................................................. 83 25. AGREEMENT TO BE EFFECTIVE AS BETWEEN SCPPA AND PARTICIPANT UPON APPROVAL BY PARTICIPANT APPROVING AUTHORITY.......................................................................................................... 83 SIGNATURE CLAUSE..:..........................................:....................:............................... 84 Phase II Renewable Development Agreement iv EXHIBIT A — Schedule of Renewable Energy Development Project Elements [Exhibit A may be revised from time to time to reflect modifications of Renewable Development Project Elements as reflected therein, or pursuant to Sections 4, 6, 8, %10, 11, 14, 17 and 19 of this Agreement] Phase II Renewable Development Agreement V PHASE II RENEWABLE DEVELOPMENT AGREEMENT 1. PARTIES, PHASE II RENEWABLE DEVELOPMENT AGREEMENTS TO BE SEPARATELY AND INDIVIDUALLY EFFECTIVE. 1.1 This Phase H Renewable Development Agreement (this "Agreement'), which is dated for convenience as of July 1, 2012 is made and entered into by and between the SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY, a joint powers agency and a public entity organized under the laws of the State of California, hereinafter designated as "SCPPA," created under the provisions of the Act, and the City of Anaheim ("ANAHEIM"), the City of Azusa ("AZUSA"), the City of Banning ("BANNING"), the City of Burbank (`BURBANK"), the City of Cerritos (CERRITOS), the City of Colton ("COLTON"), the City of Glendale ("GLENDALE"), the Imperial Irrigation District ("IID"), the City of Los Angeles acting by and through the Department of Water and Power ("LADWP"), the City of Pasadena ("PASADENA"), the City of Riverside ("RIVERSIDE"); and the City of Vernon - ("VERNON"), as applicable, (each, individually, a "Party", and collectively, the "Parties"). ANAHEIM, ' AZUSA, BANNING, BURBANK, CERRITOS, COLTON, GLENDALE, IID, LADWP, PASADENA, RIVERSIDE, and VERNON are also, each as a .signatory to this agreement and as may be applicable, each referred to individually as the "Participant" and collectively as "Participants." In addition ANAHEIM, AZUSA, BANNING, BURBANK, CERRITOS, COLTON, GLENDALE, IID, LADWP, PASADENA, RIVERSIDE, and VERNON to the extent they participate in any renewable resource Phase II Renewable Development Agreement -1- development activities associated with any Project Element may be referred to, depending on the context,. individually as a "Project Element Participant" or collectively as "Project Element Participants." Additional Parties or Participants may be added as provided in Section 9.3.2 or, if applicable, as may be provided by way of Section 19 herein. 1.2 This Agreement shall become independently effective between SCPPA and any separate or discrete Party specified in Section 1.1 (irrespective of the approval or lack of approval of this Agreement by any other Participant) upon the approval of this Agreement by the Board of Directors and the other contracting Party's approving authority. 2. RECITALS, CONSTRUCTION AND PRELIMINARY MATTERS. 2.1 The Recitals set forth herein and the facts, which follow, are incorporated into this Agreement by reference for all purposes. The facts and the circumstances of the . Parties contained in the Recitals, among others, represent the background and framework for this Agreement, the aim and purpose of this Agreement and the intendments of the Parties with respect thereto. This Agreement has been reviewed by attorneys for both Parties and shall not be interpreted with reference to the rules of construction providing for construction against a Party responsible for drafting or creating a particular provision or section, but should instead be interpreted in a manner which broadly carries forth the goals and objectives of the Parties as expressed herein. References to "Sections," "Annexes," "Appendices," "Schedules" and "Exhibits" shall be to Sections, Annexes, Appendices, Schedules Phase II Renewable Development Agreement -2- and Exhibits, as the case may be, of this Agreement unless otherwise specifically provided. Section headings in this Agreement are included herein for. convenience of reference only and shall not constitute a part of this Agreement for any other purpose nor given any substantive effect. Any of the terms defined herein may,.unless the context otherwise requires, be used in the singular or the plural, depending on the reference. The use herein of the word "include" or "including", when following any general statement, term or matter, shall not be' construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as."without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. This Agreement is made with reference to the following facts among others: 2.2 SCPPA was created pursuant to provisions contained in the joint exercise of powers act found in Chapter 5 of Division 7 of Title I of the Government Code of California, as amended from time to time (the "Act'), by its members, which are municipalities and an irrigation district that supply electricity in the State of California, for the purpose of jointly and cooperatively undertaking planning, financing, development, acquisition, construction, reconstruction, improvement, enlargement, betterment, operation and maintenance of projects for the generation, storage or transmission of electric energy, including renewable generation technologies in accordance with the Act. Phase 1I Renewable Development Agreement -3- 2.3 SCPPA's members created SCPPA as a separate and independent public entity pursuant to the Act and pursuant to the Joint Powers Agreement between SCPPA and its members dated as of November 1, 1980 as amended. 2.4 Pursuant to the terms of the -Act, and the Joint Powers Agreement constituting SCPPA's formative instrument, SCPPA has the power to plan, develop, finance, own, acquire, design, construct, operate, maintain and repair electric generation or transmission projects or to cause such projects to be planned, developed, financed, designed, constructed, operated, maintained and repaired, and to provide by agreement, with a public agency of the State of California to perform such activities. 2.5 Pursuant to the terms of the Act and the SCPPA Joint Powers Agreement, SCPPA has the power, for the purpose of promoting, maintaining and operating electric generation and transmission, to plan, develop, contract for, finance, acquire, design, undertake, own, construct, manage, operate and administer projects involving generation and transmission of electric energy, including renewable energy projects, and involving systems, methodologies and programs for the acquisition, supply procurement and delivery of services related to the studying, planning, contracting for, administering, financing, developing, acquiring, constructing, reconstructing, improving, enlarging, bettering, managing, operating, maintaining or decommissioning any such projects, and to cause such projects to be planned, developed, contracted for, financed, acquired, designed, constructed, improved, managed, operated, maintained, and administered and to provide by agreement for the performance and carrying out of any such activities Phase II Renewable Development Agreement -4- 2.6 All of the members of SCPPA are California public entities which provide electric energy to their citizens through their municipally owned electric systems. In many SCPPA projects the administration of such projects is carried forth through various mechanisms provided in the Act or SCPPA's Joint Powers Agreement or by way of a variety of arrangements between SCPPA and its members. 2.7 In recent years SCPPA members have experienced the imposition of a substantial number of new laws, rules and regulations addressing energy procurement and the development of energy resources which have effectively required the Participants to shift generation assets to increasingly rely on renewable generation and other systems and methods to conserve generation resources and to reduce emissions from existing. generating systems and the members of SCPPA have utilized SCPPA for many of the projects and programs which have been developed to achieve these goals, and desire to continue to so utilize SCPPA. 2.8 Certain of the proposed Participants which are contemplated to participate in this Phase II Renewable Development Agreement are publicly owned utilities which are members of SCPPA and have utilized SCPPA in the past to develop and finance projects. Over the course of the past several years, members of SCPPA have developed numerous renewable energy projects through SCPPA and in carrying forth these projects have utilized both their own staff and the staff of other SCPPA members to develop, implement, and where applicable to administer such projects. Phase II Renewable Development Agreement -5- 2.9 "Through an earlier agreement for the development of renewable resources SCPPA and certain Participants have carried forth certain renewable energy goals to investigate, plan, design, develop and provide for the eventual financing, contracting for, procurement, acquisition, deployment and operation of a number of Renewable Electric Energy Resource Projects by which to meet certain SCPPA members' Renewable Portfolio Standard. Through the renewable . energy Acquisition process described in this Agreement the Parties intend to provide the resources necessary to continue this process to investigate, plan, design, develop and provide for the eventual financing, contracting for, procurement, acquisition, deployment and operation of the Renewable Electric Energy Resources which Participant desires to be acquired, developed, financed; implemented or deployed through SCPPA. The Parties desire to carry forth such work as may be necessary to bring such Acquisitions to fruition to assist the Participant in meeting its Renewable Portfolio Standard. 2.10 To further the aims of the proposed SCPPA Renewable Electric Energy Resource Project, on January 19, 2006 the SCPPA Board of Directors approved Resolution 2006-2 which declared its intention ,to reimburse certain renewable resource expenditures from the proceeds of future financings, as required by United States Department of Treasury Regulations section 1.150-2. 2.11 Thereafter on April 20, 2006 the SCPPA Board of Directors byway of Resolution 2006-13 created the SCPPA Renewable Electric Energy Resource Project and declared this project to be an official SCPPA Study Project pursuant to the SCPPA Joint Powers Agreement. Phase I1 Renewable Development Agreement -6- 2.12 By way of Resolution 2006-13 the SCPPA Board of Directors also authorized the execution of the Renewable Electric Energy Resource Project Development Agreement for the SCPPA Renewable Electric Energy Resource Project among SCPPA and each of SCPPA's members and entities participating in the Study Project created thereby. This earlier agreement approved pursuant to Resolution 2006-13 is referred to herein as the "Phase I'Agreement". 2.13 Under the Phase I Agreement, SCPPA and the SCPPA members and entities participating in the Phase I Agreement have carried out the development measures necessary to acquire, purchase,, procure, construct or otherwise contract for, as the case may be, a substantial number of Renewable Electric Energy Resources for the benefit of the participating entities under that agreement. 2.14 Participant has a continuing need for Renewable Electric Energy Resources which may be currently be in development phase by SCPPA pursuant to the Phase I Agreement as well as by other means and which are- contemplated to be developed in the future pursuant to this Agreement. Participant desires to participate in the continuing development and Acquisition of Renewable Electric Energy Resources by way of this ,Phase II Agreement. Given these needs and to draw upon and utilize their combined resources, SCPPA and Participant have determined that it is .desirable to enter into this Agreement to provide a vehicle by which to achieve the continuing renewable goals of Participant and SCPPA through this Phase II Agreement. Phase II Renewable Development Agreement -7- 2.15 By way of this Phase II Agreement the Parties desire to provide a mechanism for the .continuation of and the eventual further consummation of the work begun under the Phase I Agreement and to provide for the investigation, examination, study, exploration, Acquisition and development of renewable electric energy resources entailing both renewable generation resources, transmission resources and other facilities and arrangements for the storage, exchange or management of renewable energy, for the purpose of facilitating the delivery of renewable energy to assist the Participant in meeting the significant and growing needs of its Renewable Portfolio Standard or renewable energy requirements. Participant has either participated previously in the Phase I Project or has worked with SCPPA in the past and, because of the significant continuing and growing need for renewable resources described herein, SCPPA and Participant desire to carry forth this Project. 2.16 The Parties contemplate that certain Project Elements with respect to certain Participants may be financed through SCPPA, and that differing Acquisitions may take the form of either • power purchase agreement structures, prepayments for renewable energy, outright facility or renewable asset purchases, or option arrangements incorporating any of these structures. 2.17 It is the intention of SCPPA and Participant that SCPPA shall undertake on Participant's behalf to facilitate or provide those administrative, operational and other resources and requirements as shall be.necessary or advisable to develop, operate and carry forth the Participant's interests and objectives in the Phase II Renewable Development Agreement -8- aforementioned Renewable Electric Energy Resources in a manner. consonant with the objectives of this Agreement. 2.18 It is also contemplated through this Agreement that SCPPA and Participant may continue, where desired or appropriate, to carry forth those measures to further the renewable objectives of the Phase I and the Phase Il Coordinating Committees (together -the Consolidated Coordinating Committee) and the objectives of the SCPPA members represented on these committees having pressing renewable resource needs, to obtain a seamless cooperative working relationship culminating in the successful achievement of meaningful renewable energy Acquisitions for those Parties participating in this Project, in'Phase I or in other renewable energy resource projects. 2.19 To further the goals of the Project SCPPA and Participant desire to carry forth this Phase II with the preparatory steps for the development and Acquisition of a number of renewable resources for the benefit of Participant and, if applicable, for the eventual financing, procurement, acquisition, engineering, construction, deployment, operation and maintenance of proposed renewable energy projects. 2.20 The Parties desire, by way of this Phase II Project; to continue to study, examine, investigate, explore and further develop the potential acquisition of energy and capacity from Renewable Electric Energy Resources and the potential pathways, interties, interconnections, substations, energy storage equipment and facilities, other facilities and equipment and transmission resources to deliver such energy, Phase Il Renewable Development Agreement -9- to ensure that each Participant meets its respective renewable energy resource goals. 2.21 To further the Participant's renewable energy objectives the Parties desire, by way of this Phase II Agreement, to proceed forward with and carryout this Phase II Project to further the achievement of the Participant's RPS goals pursuant to the terms and conditions set forth herein. 2.22 , In order to enable SCPPA to carry forth the goals and purposes of the Phase II Project as set forth herein, it is necessary for SCPPA to have a binding agreement with Participant to pay Participant's share of SCPPA's costs associated with the Project, Project Element(s) and Participant's share of those payments required to be made in accordance with provisions of any applicable Project Agreements. SCPPA shall further provide for the investigation, implementation, administration, operation and maintenance of the Project for the purpose of securing and paying for the rights, services, entitlements and deliverables contemplated hereby, through the application of the payments required to be made by the Participant to SCPPA in.accordance with the provisions of this Agreement. 2.23 Participant shall pay from its electric revenue fund, including any and all legally available electric system reserves, all amounts payable to SCPPA under this Agreement, including but not limited to its proportionate share of Renewable Development Costs, Pre -operation costs and all other costs incurred pursuant to this Agreement, and such payments shall constitute an operating expense of. Participant's electric utility. Phase I1 Renewable Development Agreement -10- 2.24 As one of matters contemplated under this Agreement SCPPA and Participants have identified certain releases, exculpations, liability protections, and related matters which are more fully set forth in Section 5 and 14 of this Agreement, the cost of which shall be paid by the Participants, pursuant to the provisions of this Agreement, including Section 10.2 herein. It is the intention of the Parties that, to the extent SCPPA incurs any costs in connection with providing the Participants such releases, exculpations, liability protections or related matters under Section 14, such costs shall 'constitute Renewable Development Work Costs which shall be passed through to the applicable Participant or Participants pursuant to the terms of this Agreement. Therefore it is the intention of the Parties that all such releases, exculpation, liability protections and related matters provided by SCPPA will be ultimately and entirely paid for by the Participants through the inclusion in SCPPA's costs to be billed by SCPPA to the Participants as part of the Renewable Development Work Costs in conformance with the billing and payment methodology established by this Agreement, and the Participant agrees to pay its Renewable Development Cost Share of such costs. 2.25 Through this Agreement the Parties intend to, among other things: (i) pursue certain Renewable Development Work (as defined herein) to carry forth the Project and Project Elements, including the preparation of regulatory applications, carrying out potential site reviews, the undertaking of those measures necessary to exercise due diligence in the examination of leasing arrangements, obtain planning studies, surveys, permits, licenses, easements, entitlements, approvals, cost estimates and construction, project delivery and deployment schedules; (ii) Phase II Renewable Development Agreement . -11- prepare contracts, instruments and doeuments-to carry forth the renewable energy Acquisitions described herein, (iii) take such other actions as are necessary or desirable for securing of any regulatory approvals and meeting environmental requirements to undertake the renewable energy Acquisitions described herein; (iv) determine the feasibility and estimated cost of the Project and the described renewable -energy Acquisitions; (v) secure all property rights and entitlements; (vi) permit the acquisition of equipment, goods, materials, parts, facility assets or other items (or the acquisition of an option to purchase any of same in the future) . to facilitate the timely or cost-effective deployment of the proposed renewable energy projects; (vii) cause to be provided advisory and consulting services related to the Project, including engineering, environmental, regulatory, legal, financial, accounting and, related services, through contracts or otherwise; and (viii) provide -a mechanism to facilitate the payment from each Participant, in accordance with each participant's _ proportionate share, to SCPPA of SCPPA's costs for the Renewable Development Work and Pre -Operation Costs and all other costs in carrying out and in furtherance of this Project in the manner. provided herein 3. AGREEMENT. In consideration of the mutual covenants herein, the Parties agree as follows: 4. DEFINITIONS. In addition to the - other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and in the exhibits attached hereto and initially capitalized, shall have the meanings specified: Phase It Renewable Development Agreement -12- 4.1 Acquisition. The procurement of energy, capacity and/or renewable energy attributes associated with any Renewable Electric Energy Resource(s) including facilities for interconnection with, or transmission or delivery of, -any Renewable Electric Generations Resource, and any Renewable Electric Energy Transmission Resource. Acquisition also includes procurement, construction, obtainment or creation of new transmission paths or facilities,- or upgrading of existing transmissions paths (whether physical, virtual or otherwise) or facilities to accommodate transmission of energy from Renewable Electric Energy Generation Resources.. In addition -Acquisition includes the procurement of energy storage facilities, devices, and arrangements, energy exchange management and peak load shifting technologies. An Acquisition may be carried forth by way of an asset purchase, an exchange, a joint ownership or participation arrangement, a power `purchase agreement, a purchase and sale arrangement, a transmission purchase or service arrangement, an environmental attribute procurement arrangement, a prepayment arrangement, construction, upgrading or any other action, contract, device 'or other means deemed appropriate to achieve Participant's renewable resource goals. 4.2 Act. The "Act" has the meaning set forth in Section 2.1. 4.3 Additional Party. A public agency which is added to or made a Participant under this Agreement, as may be applicable, either pursuant to Section 9.3.2of this Agreement or, if applicable, pursuant to Section 19 of this Agreement. Phase II Renewable Development Agreement -13- 4.4 Agreement. This Agreement,'as more speci$cally set forth in Section 1 hereof, as it may be amended from time to time. 4.5 Board of Directors. The Board of Directors of the Southern California Public Power Authority. 4.6 Consolidated Coordinating Committee. The combination of the Phase II Coordinating Committee and any Coordinating Committee existing pursuant to the Phase I Agreement. 4.7 Contribution. The principles of contribution set forth in Section 14.5 hereof. 4.8 Entitlement Share. The percentage entitlement of each Participant in a Project Element as set forth in Exhibit A herein, as the same may be amended or supplemented from time to time. 4.9 Estimated Monthly Renewable Develonnnent Work Costs. For any particular month, the estimated amount that the Project Manager determines will be required to be paid to cover the Renewable Development Work Costs during such month, including adjustments for differences between previously estimated and recorded Renewable Development Work Costs. 4.10 Executive Director. The Executive Director of the Southern California Public Power Authority. 4.11 Financing Work. All activities associated with the proposed financing of a Project Element or Project Elements on behalf of a financing Participant or Phase II Renewable Development Agreement -14- financing Participants, including preparation and drafting of instruments and agreements necessary to the financing, and including tax considerations and all other necessary or desirable work to enable Participants identified on Exhibit A to obtain financing for their respective percentage share in the ensuing project associated with any Project Element. Financing Work may include, where applicable, work to establish any financial structure, contractual arrangement, or -other device which might be useful to any Participant or Project Element Participant to take advantage of, or indirectly obtain a benefit from, . any tax advantage, tax credit or other tax or financial incentive which might otherwise not be directly available to a governmental entity. 4.12 Joint Powers Agreement. The "Southern California Public Power Authority Joint Powers Agreement" dated as of November 1, 1980, as amended and modified, entered into pursuant to the provisions of the Act, between SCPPA and its members and any successor agreement. 4.13 LADWP. The City of Los Angeles acting by and through the Department of Water and Power, which has also been a participating SCPPA member in, and the Project Manager for, Phase I. 4.14 Participation Agreements. The agreement or agreements, as determined by the Coordinating Committee or the Board of Directors as applicable, that provide for the participation of any members of SCPPA, potentially in association with other entities, in the. potential acquisition, purchase, procurement, financing, Phase II Renewable Development Agreement -15- deployment, management, operation or maintenance of any project or any Project Element. 4.15 Pam. This term shall have the meaning ascribed thercto.in Section-1 hereof. 4.16 Power Sales Agreement. The agreement or agreements which will provide for SCPPA's ownership, interest, rights or entitlements or other form of participation in a proposed SCPPA generation project and the respective rights and obligations of the parties with respect to such project. As determined by the Board of Directors and the participants in the proposed project, the Power Sales Agreements may provide, among other things, for the procurement, acquisition, financing, construction, operation, maintenance or decommissioning of the project. 4.17 Power Sales Agreement/Transmission Services Agreement Work. All activities associated with the preparation of Power Sales Agreements or Transmission Services Agreements, or of agreements carrying forth similar purposes, as the case may be, between SCPPA and a Project Element Participant relating to any Project Element. 4.18 Phase I. The project on behalf of all SCPPA members participating therein created by way of the Renewable Electric Energy Resource Project Development Agreement entered into between SCPPA and various SCPPA members and entities pursuant to SCPPA Resolution 2006-13. Phase II Renewable Development Agreement -16- 4.19 Phase I Agreement. The Renewable Electric Energy Resource Project Development Agreement(s) entered into between SCPPA and certain members of SCPPA and publicly owned utilities, pursuant to SCPPA Resolution No. 2006-13. 4.20 . Phase I Coordinating Committee. pursuant to Phase I. The Coordinating Committee established 4.21 Phase II. The cumulative project or projects and Project Element and Project Elements created through the approval of Phase II Renewable Development Agreement(s) between SCPPA and Participant, and SCPPA and other SCPPA members or participating entities. 4.22 Phase II Agreement. This Phase II Renewable Development Agreement. 4.23 Phase II Coordinating Committee. The Coordinating Committee as may be established pursuant to Section 8 herein. 4.24 Phase II Project. The total aggregate of all proposed cumulative Acquisitions associated with any and all Project Element(s) and all of the rights and obligations associated therewith, including all related agreements and arrangements, all appurtenant equipment thereto as may be applicable, the applicable portion of any common facilities and related facilities for interconnection or transmission of the output of any Project Element(s) and all necessary or .related facilities to carry forth the deployment and placement into operation of any Project Element(s). Exhibit A contains the proposed Acquisitions or Project Elements and the Entitlement Share of energy or capacity contemplated to be acquired by each Phase II Renewable Development Agreement -17- SCPPA member participating in Phase I or Phase II as of the date of this Agreement. Exhibit A may be amended by the Coordinating Committee or as otherwise provided in this Agreement to refleet revisions in participation, revisions in generation or transmission entitlements, percentages or capacity, the addition or withdrawal of new or different proposed Project Element Participants, the addition of new Project Elements and the deletion of then existing Project Elements. Each such amendment, revision, modification or addition to Exhibit A shall be supplied to each Participant requesting the same. 'The Coordinating Committee or the Board of Directors, as provided herein or as may be applicable, shall have the authority to modify the project description contained herein to accommodate or adapt to new circumstances or changed conditions. For- the purpose of this Agreement the terms "Project" and "Phase II Project" shall be synonymous. 4.25 Pre -Operation Costs. Those costs or expenses relating to the acquisition of equipment, goods or other resources necessary to the development of a Project Element or otherwise acquired in anticipation of financing, procurement, construction, implementation or deployment of the initial phases of an Acquisition (including the acquisition of an option or options for procurement or to purchase any of same in the future) for the benefit of the Project Element that the Board of Directors or the Coordinating Committee, as appropriate, has determined will facilitate the timely or cost-effective acquisition, implementation, deployment, construction or placement into operation of the Project Element. Phase II Renewable Development Agreement -18- 4.26 Pr_ oject, For purposes of this Agreement "Project" shall have the meaning set forth in the definition of Phase II Project. 4.27 Project Representative and Contract Administrator. The person appointed by Participant pursuant to Section 24 of this Agreement to act as a liaison between Participant and SCPPA with respect to the performance of this Agreement and to represent Participant in all aspects and elements of the administration of this Agreement. 4.28 Project Agreements. This Agreement, the Participation Agreements, the Power Sales Agreements, the Transmission. Services Agreements, the joint ownership agreements, any asset purchase agreement or purchase and sale agreement in connection with the acquisition, purchase or procurement of any renewable resource or associated facility forming part of a project or any Project Element, any power purchase agreement associated with a project or any Project Element, any agreement addressing the scheduling or tagging of any energy associated with a project or any Project Element, any agreement addressing entitlement to or transfer of renewable attributes or' addressing any renewable certifications, designations,, characterizations or nominations relating to any energy associated with a project or any Project Element, any agreement relating to the dispatching, interconnection, transmission or delivery of energy associated with any project or Project Element from the point or points of generation to the point or points of delivery as determined by the Coordinating Committee, any agreement relating to storage of energy or equipment, facility maintenance or operation of any project Phase II Renewable Development Agreement -19- or Project Element, and any other agreement or agreements designated as a Project Agreement by the Coordinating Committee. 4.29 Project Element. Any Renewable Electric Energy Resource or any of the various SCPPA wind, geothermal, biomass, landfill, solar or other subprojects which form a discrete component within the Project as set- forth by way of example in Exhibit A, or which may qualify as a renewable project under Participant's renewable portfolio standard, or as may hereafter be approved for Acquisition with respect to a Participant by actionofthe Participant's Project Representative and Contract Administrator or otherwise by approval of the Coordinating Committee or Board of Directors or as otherwise provided herein. A Project Element may also entail procurement, construction, obtainment or creation of new transmission paths; facilities and equipment or upgrading of existing transmissions paths, facilities and equipment (whether physical, virtual or otherwise) any interconnections or interconnection arrangements, or any means of transmission' congestion remediation which may accommodate the transmission of energy from Renewable Electric Energy Generation Resources. Project Elements may be added to or deleted from this Agreement with respect to a Participant by action of the Participant's Project Representative and Contract Administrator -or otherwise with the approval of the Coordinating Committee or the Board. of Directors. 4.30 Project Element Determination. "Project Element Determination" means any matter involving a question pertinent to the studying, investigating, planning, financing, engaging, developing, acquiring, constructing, reconstructing, Phase II Renewable Development Agreement - 20 operating, mitigating, maintaining, administering, managing, improving, enlarging, or bettering of a Project Element_ 4.31 Project Element Participant: An entity sharing in the cost in the manner set forth herein, and participating in a specific Project Element development pursuant to this Agreement or the Phase I Agreement. Project Element Participants and their respective corresponding Project Elements are set forth in Exhibit A herein, which exhibit may be amended or supplemented from time'to time to reflect changes in participation, changes in participants or changes in participant shares with respect to any Project Element or changes in Entitlement Share with respect to any participant and/or with respect to any Project Element. 4.32 Project Manager. The entity appointed or designated as such pursuant to the provisions in Section 5 hereof. 4.33 Project Matter. The term, "Project Matter" shall mean a matter for decision by the Board of Directors involving a question pertinent to the studying, planning, financing, developing, acquiring, constructing, reconstructing, improving, enlarging, bettering, operating or maintaining of a Project as to which there shall be one or more Project Contracts as defined in the Joint Powers Agreement. 4:34 Prudent Utility Practice. Any of the practices, methods and acts, which, in the exercise of reasonable judgment in the light of the facts {including but not limited to the practices, methods and acts.engaged in or approved by a significant portion of the electrical utility industry or approved by the governing- body that establishes the standards or recommendations of the particular area of science or Phase II Renewable Development Agreement -21- industry practice prior thereto) known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with good business practices, reliability, safety and expedition, taking into account the anticipated design and operational characteristics of the Project and the fact that Prudent Utility Practice is not intended to be limited to the optimum practice, methods or acts to the exclusion of all others, but rather to be a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and 'expedition. Prudent Utility Practice includes due regard for manufacturers' warranties and requirements of governmental agencies of competent jurisdiction and shall apply not only to functional parts of the Project, but also to appropriate structures, landscaping, painting, signs, lighting, other facilities and public relations programs reasonably designed to promote public enjoyment, understanding and acceptance of the Project. 4.35 Renewable Developnnent- Work. All activities necessary or desirable to (i) determine the scope and extent of any Project Element and determine and develop those documents, instruments, agreements or arrangements necessary or desirable to achieve the agreed upon structure of any Project Element, (ii) determine the particular renewable resources and related facilities to be acquired and the structure of the Acquisitions, (iii) determine the nature of the participation structure, (iv) perform legal work, investigative and due diligence work, site studies, meteorological, geological, heliographical, diurnal, geophysical, engineering or environmental studies or work, or any other reviewing, regulatory, Phase II Renewable Development Agreement -22- permitting, licensing or entitlement work as may be required for any Project Element, (v) draft and negotiate all contracts necessary or appropriate or as may otherwise be required to carry forth any Project Element,. (vi) perform Power Sales. Agreement/Transmission Services Agreement Work, (vii) perform any transmission, interconnection or congestion studies as . may be required by any Project Element, (viii) estimate the cost to and of all Project Elements for any proposed Acquisition, purchase or -procurement, as appropriate, of associated renewable resources and related facilities, (ix) estimate the cost to the Project and all Project Elements of any transmission or interconnection proposals associated with any Project Element, (x) estimate the cost of any new or upgraded transmission paths or any other transmission congestion remediation measures associated with the Project or any Project Element, (xi) perform any Financing Work, (xi) estimate the proposed schedule for the overall Project and for all Project Elements and the anticipated schedules for any proposed Acquisition, purchase or procurement, as appropriate, of associated renewable resources and related facilities, (xii) estimate the proposed schedule for any Acquisition involving any transmission related. resource and the proposed schedule for any new or upgraded transmission path or other transmission congestion remediation measure associated with the Project or any Project Element, (xiii) obtain the appropriate permits, entitlements, licenses and approvals, (xiv) take all necessary or desirable actions relating any other appropriate pre -acquisition measures associated with the Project or any Project Element, (xv) identify potential corridors, interconnections, transmission paths and points of delivery for energy Phase tl Renewable Development Agreement 23 and capacity associated with any Project Element and address issues relating to providing - transmission, interconnection services, scheduling, dispatching and delivery to Participants, and (xvi) perform any other service or activity related to the Project or any Project Element as determined by the Coordinating Committee 'which is consistent with this Agreement and any • budget approved by the Coordinating Committee. 4.36 Renewable Develo ment Work Costs. All costs and expenses necessary or desirable to carry forth or complete Renewable Development Work and all costs as fiuther described in Section 6.3 hereof. 4.37 Renewable Development Work Cost Share. With respect to any Participant, its percentage share of Renewable Development Work Costs as set forth on Exhibit A hereto, as such shares may be adjusted pursuant to Sections 4, 6, 8, 10, 11, 14, 17 and 19 herein. The fraction of all costs of all Project Elements created by posing the cumulative total of Participant's costs in all Project Elements in which Participant is a Project Element Participant as the numerator -of such fraction with the cumulative total of all costs of all Participants. in all Project Elements representing the denominator of such a fraction is the proportionate share which a Participant has in the Project. 4.38 Renewable Electric Energy Generation Resource. A source of energy which meets the definition of an "eligible renewable energy resource" under California law or which satisfies the requirements necessary to be included in a Participant's Phase 11 Renewable Development Agreement -24- Renewable Portfolio Standard or which otherwise satisfies a Particpant's renewable energy goals. 4.39 Renewable Electric Energy Resource. A Renewable Electric Energy Generation Resource, a Renewable Electric Energy Transmission Resource or a Renewable Electric Energy Storage Resource. 4.40 Renewable Electric Energy Resource Project. Renewable Electric Energy Resource Project is described in Sections 2.10, 2.11 and 2.12 herein. 4.41 Renewable Electric >rnerg, r Storage Resource. A. storage resource that can be utilized to store Renewable Electric Energy or other energy resources for utilization at a later period in time. 4.42 - Renewable Electric Energy Transmission Resource. A resource which can be utilized to transmit electric energy or to facilitate or direct the transmission or movement of electric energy from a Renewable Electric Energy Generation Resource or other, energy resource, and includes, without limitation, interconnections, transmission lines, interties, substations, switchyards, switching stations and other resources used in directing and moving electric energy. 4.43 Renewable Portfolio Standard. The formal pronouncement issued by. or on behalf of a Participant, or which may otherwise be applicable to a Participant, describing its renewable energy goals or requirements as the same may be modified or amended from time to time. A Participant's Renewable Portfolio Standard may Phase II Renewable Development Agreement -25- also be referred to from time to time as its renewable portfolios standard or as its 4.44 Required' Concurrence. The affirmative vote of more than one half, numerically, of the Participants participating in the project Element to which the vote pertains, who, in addition, represent greater than sixty percent (60%) of the Entitlement Shares in the Project Element to which the vote pertains. 4.45 Transmission Services Agreement The agreement or agreements , which will provide for SCPPA's ownership, interest, rights or entitlement or other form of participation in the proposed SCPPA transmission project and the respective rights and obligations. of the Parties with respect to such project. As determined by the Board of Directors and the participants in the proposed project, the Transmission Services Agreement may provide, among other things, for the financing, construction, operation, maintenance or decommissioning of the project or Project Element. 5. PROJECT MANAGER. 5.1 Appointment. SCPPA or its designee shall act as Project Manager under this Agreement. Unless LADWP declines to be Project Manager or fails to take action to determine whether it desires or elects to be Project Manager, or unless SCPPA and the LADWP shall agree otherwise, SCPPA may appoint, designate and authorize LADWP to be the Project Manager to carry out, as agent for and on behalf of SCPPA. and SCPPA members participating in Phase I and Phase 1I, and as principal on its own behalf, the Renewable Development Work in accordance Phase Il Renewable Development Agreement -26- with this Agreement. Should LADWP act as Project Manager under this Agreement, unless SCPPA and LADWP shall agree otherwise, LADWP shall continue as Project Manager for Phase I and Phase II so long as SCPPA members continue to participate in Phase I or Phase II and so long as Phase I and Phase II or either of them continue as an active SCPPA Project. Notwithstanding the forgoing, in the event LADWP becomes the Project Manager either SCPPA or. LADWP may terminate LADWP's services as Project Manager upon two (2) years written notice. 5.2 Term. Unlzss SCPPA and the Project Manager shall mutually agree otherwise, or . unless otherwise provided in this Agreement, the Project Manager shall serve in the capacity of Project Manager as provided herein, during the term of and pursuant to this Agreement for so long as this Agreement is in effect. 5.3 Authority of the Project Manager. Subject to the express limitations of this Agreement, the Project Manager is authorized, in its discretion, in the performance of Renewable Development Work, to incur costs, liabilities and obligations and to perform and arrange for the performance of Renewable Development Work. The Project Manager may perform Renewable Development Work through its own employees, other SCPPA members, consultants, contractors or otherwise. To assist the Project Manager in its responsibilities, at the Project Manager's request, SCPPA and Participant will endeavor to furnish such further information as may be reasonably available from other members touching upon or relating to tasks or responsibilities as may confront the Project Manager, which the Project Manager may reasonably find useful in performing Phase II Renewable Development Agreement -27- Renewable Development Work and/or to meet the requirements of regulatory agencies -having jurisdiction over the Project, any Project Element or any part thereof. In the execution of Renewable Development Work, the Project Manager is authorized to exercise those SCPPA powers as may be reasonably necessary to carry forth such work as are vested in SCPPA pursuant to the Act and its Joint Powers Agreement as agent for SCPPA to carry forth the objectives set forth herein. 5.4 Duties. and Responsibilities of the Project Manager. ' The Parties hereto acknowledge that a principal purpose of this Agreement is.to continue Renewable Development Work which may have been commenced pursuant to the Phase I Agreement so that this work can be brought to consummation and also to continue to investigate such additional potential Project Elements as may materially assist the Participants in meeting their required RPS goals. The Participants and the Project Manager desire to fully cooperate in these efforts to obtain a seamless cooperative working relationship eventuating in the successful accomplishment of meaningful Acquisitions for all Participants and culminating in the fulfillment of those RPS goals.as may be accomplished through this Agreement. Subject to the provisions of Section 10 hereof, the duties and responsibilities of the Project Manager in performing Renewable Development Work or in incurring Pre - Operation Costs, .as applicable, under this Agreement shall include but not be limited to: 5.4.1 Obtaining appropriate leases, permits, licenses; entitlements, clearances, rights, certifications and approvals, including such state, county, city or Phase II Renewable Development Agreement -28- other local approvals as may be necessary or appropriate to the Project and any Project Element and, prior to obtaining same, identifying all major governmental, regulatory, permitting or contractual conditions proposed to be imposed with respect to such leases, permits, licenses, entitlements, clearances, rights, certifications and approvals, which conditions shall be agreed upon by the Coordinating Committee. 5.4.2 Identifying and reporting on renewable resource options and identifying vendors and contractor supply options or other alternatives with respect to any Project Element. 5.4.3 Identifying any environmental, pollution or contaminant costs and any mitigation measures (i) that will be required by, or which may be expected to be applicable to, any Project Element and/or (ii) that the Project Manager recommends, if any, should be incurred as part of Pre -Operation Costs. 5.4.4 Developing a Project plan including, among other things a breakdown with respect to each Project Element of Project cost estimates and developing schedules and arrangements for delivery of the Project output of each Project Element. 5.4.5 Promptly informing and consulting with the Coordinating Committee and, when appropriate, the Board of Directors, regarding significant factors or events which may affect, -or have affected, Renewable Development Phase II Renewable Development Agreement 29 Work, Renewable Development Work Costs, Pre -Operation Costs, any schedules relating to any Project Elements. 5.4.6 Submitting, to the Coordinating Committee at mutually agreed times a status report to reflect the progress of Renewable Development Work and the incurrence of Pre -Operation Costs and any necessary or desirable revisions to the schedule. 5.4.7 Recommending to the Coordinating Committee for its review and approval, the plans, cost estimates and schedules for Acquisition of each renewable resource or of renewable resources and related facilities to be acquired as part of any Project Element, and recommending to the Coordinating Committee for its review and approval the plans, cost estimates and schedules for development, construction or otherwise for the implementation of any Project Element. 5.4.8 Preparing and submitting to SCPPA for its review and approval budget revisions for Renewable Development Work Costs and any proposals or revisions for the proposedincurrence of Pre -Operation Costs. 5.4.9 Notifying and invoicing, or causing to be notified and invoiced, each Participant at least thirty (30) days prior to the beginning of a given month, of its share of Estimated Monthly Renewable Development Work Costs; or Renewable Development Work Costs which may be due, as applicable, during said month and adjusting, or causing to be adjusted, the amount of money invoiced each month. for Renewable Development Work Phase II Renewable Development Agreement -30- Costs to reflect variations between the prior recorded costs for Renewable Development Work and amounts received from Participants for Renewable Development Work.: Notwithstanding the foregoing, with respect to the. first invoice for Estimated Monthly Renewable Development Work Costs (which invoice may also include the balance of the month ' or months following the effective date of this Agreement), such invoice shall be sent immediately following the effective date of this Agreement and shall be payable by the Participants within twenty days or by the twenty fifth day of the month, whichever shall be later, after receipt of such invoice. Notwithstanding the forgoing, however, the Board of Directors may, by resolution,, authorize or prescribe other billing, payment, costing and cost reconciliation mechanisms to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to the Project. 5.4.10 Expending, or causing to be expended, the funds provided for Renewable Development Work Costs and Pre -Operation Costs in accordance with this Agreement. 5.4.11 Arranging and negotiating contracts for furnishing, purchasing, procuring, acquiring. and obtaining from any source it may select (including any Party), engineering, architectural, 'construction, legal, environmental, regulatory, financial, accounting and other services necessary or desirable for the performance and completion of Renewable Development Work Phase II Renewable Development Agreement -31- and the performance or completion of work relating to Pre -Operation Costs. 5.4.12 Arranging and negotiating contracts for the financing of any costs associated with any Project Element as directed by the Coordinating Committee. 5.413 Administering, performing and enforcing contracts entered into for Renewable Development Work and entered into relating to Pre -Operation Costs and furnishing conformed copies of such contracts as requested by any representative on the Coordinating Committee. 5.4.14 Complying with any and all laws and regulations applicable to the performance, of Renewable Development Work and to the incurrence of Pre -Operation Costs. 5.4.15 Keeping and maintaining, or causing to be kept and maintained, records of moneys received and expended, obligations incurred, credits accrued, and maintaining or causing to be maintained for auditing by SCPPA or any auditor selected pursuant to Section 6.6 or Section 6.7 hereof, those accounting records used by the Project Manager or SCPPA, as applicable, pertaining to financial and statistical data for Renewable Development Work and for the incurrence of Pre -Operation Costs. 5.4.16 Preparing and submitting, or causing to be prepared and submitted, to the Board of Directors each calendar quarter after the date of this Agreement Phase_II Renewable Development Agreement -32- a cost report which shall be developed from the records kept and maintained pursuant to Section 5.4.15 hereof and which shall include both the accumulated total disbursements for each work activity category from the beginning of Renewable Development Work, including a comparison to the most recently approved Renewable Development Work budget, Pre- Operation Costs incurred and a reconciliation of payments to date for Renewable Development Work Costs and Pre -Operation Costs to the total disbursements to date for Renewable Development Work Costs and Pre - Operation Costs, respectively. 5.4.17 Enforcing all claims against contractors, subcontractors, suppliers, consultants and others arising out of Renewable Development Work or relating to Pre -Operation Costs. 5.4.18 At the request of SCPPA, providing reasonably available assistance and furnishing information that it has relating to Renewable Development. Work or to Pre -Operation Costs. 5.4.19 Preparing a final completion report for SCPPA upon termination of this Agreement or completion of an applicable Project Element, which shall include studies performed, summaries of executed Project contracts, and a final cost report for Renewable Development Work and Pre -Operation Costs. 5.4.20 Not permitting any unsatisfied liens arising out of Renewable Development Work or the incurrence of Pre -Operation Costs to remain in. Phase lI Renewable Development Agreement -33- effect other than liens for taxes or assessments not yet delinquent, liens for workers' compensation awards and liens for labor. and material not yet perfected, provided that the Project Manager shall not be required to pay or discharge any such lien as long as the Project Manager is contesting such lien in good faith. 5.4.21 Assisting in the negotiations for and preparing all Project Agreements. 5.4.22 Providing for the orderly administration of meetings of the Coordinating Committee and maintaining the agenda, records and minutes thereof. 5.4.23 Determining the advisability of incurring Pre -Operation Costs and recommending to the Board of Directors the incurrence of Pre -Operation Costs. 5.4.24 Upon termination of this Agreement pursuant to Section 22.2.2 hereof or upon a determination by the Coordinating Committee not to proceed with construction of a Project Element (a) selling, at such time as directed by the Coordinating Committee and to such party or parties as approved by the Coordinating Committee, any and all equipment, goods or other assets relating to the Project Element (including options to purchase any of same) the costs of which were Renewable Development Costs or Pre - Operation Costs and (b) promptly distributing the proceeds thereof (less any costs which may be owing by a Project Element Participant with respect thereto and any costs incurred in connection with the sale thereof) to each respective' Project Element Participant in proportion to the Phase U Renewable Development Agreement -34- proportionate contributed share of the Pre -Operation Costs and Renewable Development Work Costs of the Project Element by the Project Element Participants. 5.4.25 Procuring and maintaining in force, insurance coverage for Renewable Development Work in such form and amounts as the Project Manager, the Coordinating Committee, or, as applicable, the Board of Directors. may deem to be necessary or desirable. 5.4.26 Conducting all other activities deemed necessary or desirable to complete Renewable Development Work and to complete work relating to the incurrence of Pre -Operation Costs and performing such other functions and duties as may be assigned to it by the SCPPA, but in any event in a manner consistent with this Agreement. 5.5 No Warranty for Project Manager Services. If a Participant serves as Project Manager, all services provided by said Project Manager are provided on an "as is" basis, and Project Manager disclaims all warranties, express or implied, statutory or otherwise; including, without limitation, any implied warranties of merchantability or fitness for a particular purpose. 5.6 Indemnification of Project ManaU . if a Participant serves as Project Manager, in its capacity as Project Manager under this Agreement, Project Manager shall be entitled to indemnification by SCPPA as set forth herein. SCPPA shall indemnify and hold harmless Project Manager, its board, officers, employees, and the employees of the governmental entity of which the Project Manager is a part, Phase .II Renewable Development Agreement - 35 past, present or future (collectively, "Project Manager Indemnitees") from and against any and all claims, demands, liabilities, obligations, losses, damages (whether direct, indirect or consequential), penalties, actions, loss of profits, judgments, orders, suits, costs, expenses (including attorneys' fees and expenses) or disbursements of any kind or nature whatsoever in law, equity or otherwise (including, without limitation, death, bodily injury or personal injury to any person or damage or destruction to any property of Project Manager, SCPPA or third persons) (collectively, "Losses") arising by reason of any actions, inactions, errors or omissions incident to the performance of this Agreement (excluding gross negligence or willful misconduct which, unless otherwise agreed to by the Parties, are 'both to be determined and established by a . court of competent jurisdiction in a final, nonappealable order) on the part of Project Manager Indemnitees. At Project Manager's option, SCPPA shall defend Project Manager Indemnitees from and against any and all Losses. If SCPPA, with Project Manager's consent, defends any Project Manager Indemnitee, Project Manager and Project Manager's City Attorney's Office (or other appropriate Project Manager counsel or authority, as appropriate) shall approve the selection of counsel, and Project Manager -shall further approve any.settlement or disposition, such approval not to be unreasonably withheld. For the avoidance of doubt, nothing in this Section 5.6 or in any other provision of this Agreement shall affect the Project Manager's obligation in its capacity as a Project Participant or Project Element Participant including Project Elements in .which it serves as the Project Manager to snake any and all payments in accordance with the first two sentences Phase II Renewable Development Agreement -36- in Section 10.2 of this Agreement and Section 2.24 of this Agreement or to pay any other amounts or costs required to be paid by itunder this Agreement. 6. RENEWABLE DEVELOPMENT WORK BUDGET, SCHEDULE, COSTS: AND AUDITS. 6.1 Initial Budget, Subsequent Budgets. Not to Exceed Costs. The Coordinating Committee or the Project Representative and Contract Administrator, may, as it shall deem appropriate, approve such initial budgets and subsequent budgets as may be necessary to track costs associated with any Project Element. The budget maybe structured in a way which sets forth separate specific budgets or budget categories for each Project Element for which the Project Representative and Contract Administrator desires to proceed forward or incur any costs. The budget or budgets so implemented shall be developed with the participation of SCPPA, the Participant and the other applicable Participants in the Renewable Development Project to address Renewable_ Development Work Costs and Pre - Operation Costs. Modification of such budgets or any subsequently revised budget shall be subject to review and approval by the Coordinating Committee, the Project Representative and Contract Administrator, or the Board of Directors, as may be applicable. Costs under this Agreement shall not exceed five million four hundred thousand dollars ($5,400,000.00) without a further amendment of this agreement between SCPPA and the Participant which is signatory to this Agreement. For avoidance of doubt, however, for purposes of this Section 6.1 costs whichare subsumed or otherwise covered under, or returned to a Project Element Participant by way of, a Power Sales Agreement, a Transmission Phase II Renewable Development Agreement -37- Services Agreement or a Participation Agreement relating to or associated with a Project Element shall be considered costs under that Power Sales Agreement, Transmission Services Agreement or Participation Agreement, respectively, and shall not be considered a cost under the associated Project Element through this Agreement. In the absence of a budget or other billing mechanism relating to a Project Element, the Project Element Participants in such a Project Element may be billed for the Renewable Development Work Costs or Pre -Operation Costs pertaining to such a Project Element at such times as such costs are incurred pursuant to the same monthly project billing methodology which SCPPA employs and under which SCPPA members are billed with respect to other SCPPA projects and programs. 6.2 Initial Schedule. The Parties shall develop an initial schedule for Renewable Development Work and the incurrence of Pre -Operation Costs. Such schedule shall specify the overall schedule .agreed to by the Parties with any specific Project Element and its associated Renewable Development Work and the work associated . with the incurrence of Pre -Operation Costs indicated therein. Modification of such schedule or any subsequently revised schedule shall be subject to review and approval by the Coordinating Committee. 6.3 Renewable Development 'Work Costs. Renewable Development Work Costs shall include: 6.3.1 All costs. of services, transportation, studies, and engineering, architectural, construction, legal, environmental, regulatory, financial, Phase H Renewable Development Agreement -38- accounting and other services necessary or desirable 'for the performance and completion of Renewable Development Work and the performance and completion of work relating to Pre -Operation Costs, performed by the Project Manager in its capacity as Project Manager or by any other person or entity, in connection with this Agreement and approved by the Project Manager (including, but not limited to, costs for Renewable Development Work incurred but not paid prior to the effective date of this Agreement). 6.3.2 Payroll and other expenses of Project Manager's employees while performing work in connection with this Agreement, including applicable overhead costs and labor loading charges, including but not limited to time off allowances, payroll taxes, workers' compensation insurance,- retirement and death benefits and other employee benefits. Labor loading shall be in conformance with the Project Manager's in- house rates as adjusted from time to time. 6.3:3 Applicable costs of materials, suppiies, services and apparatus used in connection with this Agreement. 6.3.4 All costs incurred with respect to Pre -Operation Costs that are incurred prior to the execution, if applicable, of any separate agreement pursuant to which Pre -Operation Costs would otherwise be paid. Phase II Renewable Development Agreement -39- 6.3.5 Federal, state; and local taxes, payments in lieu of taxes, and permit, entitlement, license, certification, and approval -related fees of any character arising out of the performance of this Agreement. 6.3.6 All costs for Renewable Development Work insurance in such form and amounts as determined by the Project Manager or the Board of Directors. 6.3.7 All costs of the Project Manager, including payments made out of the self-insurance fund, if any, of the Project Manager, and to the extent not initially provided for by insurance, of discharging or paying any liability and loss, damage and expense, including costs and expenses for attorneys' fees, and other costs of defending, settling or otherwise administering claims, liabilities ,or losses arising out of workers' compensation or employers' liability claims or by reason of property 1 damage or injuries to or death of any person or persons or by reason of claims of any and every character resulting from, arising, out of or connected with the performance of the -Renewable Development Work, whether wholly or partially by the negligence of the Project Manager or its respective employees or agents, including without limitation and by way of example, any indemnity provided to Project Manager in Section 5.6. 6.3.8 The Project Manager's administrative and general expenses to cover services in the performance of Renewable Development Work and Phase II Renewable Development Agreement -40- administrative and general expenses incurred by the Project Manager in connection with services regarding the incurrence or proposed incurrence of Pre -Operation Costs. 6.3.9 The costs arising out of the issuance of and administration of any request for proposal process undertaken for the purpose of identifying potential renewable energy projects or otherwise initiating Renewable Development Work for any proposed renewable energy project. 6.3.10 The cost of pursuing any legal action or defending against any action associated with or arising out of any Renewable Development Work, including but not limited to all costs incurred by SCPPA in connection with or in carrying out the provisions of Section 14.1. 6.3.11 All costs relating to the preparation and drafting of Power Sales Agreements, Transmission Services Agreements or Participation .Agreements on behalf of Project Element Participants identified in Exhibit A hereto, whether performed by the Project Manager in its capacity as Project Manager or by SCPPA or any other person or entity, in connection with this Project or any Project Element. 6.3.12 The cost of any audit carried out under or pursuant to the terms of this Agreement. 6.3.13 All out-of-pocket expenses relating to Renewable Development Work. Phase II Renewable Development Agreement -41 - 6.4 Renewable Development Work Cost Share. Unless otherwise provided by way of this Agreement Participant shall pay its Renewable Development Work Cost Share of all its costs of Renewable Development Work, Financing Work and Pre - Operation Costs in accordance with this Agreement. 6.5 Costs or Expenses Incurred for Sole Benefit of Purchaser. Notwithstanding anything to the contrary in this Agreement, if a particular cost or expense is incurred by SCPPA for the 'sole benefit of Participant, unless otherwise determined by the Coordinating Committee, then such cost or expense shall be allocated only to Participant, in which event only Participant (and no other participating.entity in the Renewable Development Project) shall be responsible for the payment thereof under this- Agreement. 6.6 Final Audit of Renewable Development Work Costs and Pre -Operation Costs. Should the Project Manager and SCPPA deem it appropriate or advisable the Parties may cause to be conducted a final audit of all Renewable Development Work Costs and Pre -Operation Costs, including Renewable Development Work Costs incurred prior to the effective date of this. Agreement, upon determination that the Renewable Development Work (or substantially all of the Renewable Development Work) is complete or upon termination of this Agreement: Within thirty (30) days following completion of the final audit, a report of total audited costs expended under this Agreement may be submitted by the Project Manager to the Board of -Directors. Pbase II Renewable Development Agreement - 42 6.7 Interim Audit of Reviewable Development Work Costs and Pre -Operation Costs. Should the Board of Directors deem it advisable it may cause to be conducted one or more interim audits of all Renewable ' Development Work Costs and Pre - Operation Costs expended to the date of the interim audit, including Renewable Development Work Costs and Pre -Operation Costs incurred prior to the effective date of this Agreement. 7. PAYMENT OF RENEWABLE DEVELOPMENT WORK COSTS AND PRE. OPERATION COSTS. 7.1 Payment of Costs. Except as may be otherwise provided herein, or by way of a separate resolution of the Board of Directors, by the twenty fifth (25th) day of the month or within twenty' (20) days after receipt of an invoice for Renewable Development Work Costs furnished pursuant to the provisions of this Agreement, whichever is later, Participant shall pay to SCPPA its Estimated Monthly Renewable Development Work Costs and its Renewable Development Work Costs, as the same may be applicable and which may be due. All such amounts so paid may be expended by the Project Manager for Renewable Development Work in accordance with the terms of this Agreement. Within twenty (20) days after receipt of an invoice for Pre -Operation Costs furnished pursuant to this Agreement, Participant shall pay to SCPPA the amount of Pre -Operation Costs so invoiced. All such amounts so paid may be expended by the Project Manager for Pre -Operation costs in accordance with the terms of this Agreement. Should a Participant elect to pay any cost of its proportionate share of any Project Element Phase II Renewable Development Agreement - 43 - by way of payment through the Phase I Agreement, them such cost shall not be billed or payable under this Agreement. 7.2 Payment of Invoices. Participant shall make payment of invoices which are billed for the costs, expenses, liabilities and obligations of the Project including Renewable Development Work Costs and Pre -Operation Costs, to SCPPA, at the following address: Southern California Public Power Authority 1160 Nicole Court Glendora, California 91740 SCPPA shall deposit all such payments made to it in a separate account. All payments from such account shall be made by SCPPA upon the direction of the Project Manager (or its agent) or as otherwise authorized by the Executive Director or the Board of Directors. 7.3 Disputed Invoices. If any portion of an invoice is disputed, the total invoice, including the disputed amount, shall be paid to. SCPPA when due and under protest. If the disputed amount is found by SCPPA to be validly disputed and proven to be incorrectly invoiced such incorrectly invoiced amount shall be promptly refunded to the Participant. Payments not made under protest shall be deemed to be correct, except to the extent audits may reveal overpayments or underpayments by Participant. 7.4 Adjustments to Billings. Adjustments to billings resulting from an audit 1 described in Section 8.3 hereof shall be made within thirty (30) days of resolution. Phase II Renewable Development Agreement -44- 7.5 Zneyff nce of Pre -Operation Costs. The Project Manager is authorized to incur Pre -Operation Costs - in support of a specific Project Element in a manner and to the extent authorized by a determination of the Coordinating Committee which 'is reflected in its minutes or by a Resolution of the Board of Directors. Pre - Operation Costs shall be separately accounted for but shall be billed as part of the Renewable Development Work Costs. 7.6 Other or Additional Cost Reconciliation Mechanisms. The Board of Directors may, by resolution, authorize or prescribe other billing, payment, costing and cost reconciliation mechanisms to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to the Project. 8. COORDINATING COMMITTEE. 8.1 Formation. There may be established under this Agreement, in the discretion of each Participant's - Project Representative and Contract Administrator, a Coordinating Committee to provide management direction for the Project Manager and to secure the effective cooperation and interchange of information among the Parties in connection with the incurrence of Pre -Operation Costs and in connection with various administrative, technical and other matters that may arise from time to time associated with the Renewable Development Work and Financing Work. 8.1.1 In the event a Coordinating Committee is established, each Participant and SCPPA ' shall appoint a representative to the Coordinating Committee and shall designate such representative within a reasonable Phase II Renewable Development Agreement - 45 time (or within thirty days (30) days of any assignment pursuant to Section 19 of this Agreement) by giving notice to the other Parties of such designation. Each voting Party may, by giving notice to the other Parties, designate an alternate to act as its representative on the Coordinating Committee in the absence "of the regular member or to act on specified occasions with respect to specified matters; such notice to be effective, however, only if given at least one day prior to the first meeting of the Coordinating Committee at which such alternate shall attend. The Chairperson of the Coordinating Committee shall be the representative of the Project Manager. Such Chairperson shall be responsible for calling and presiding over meetings of the Coordinating Committee. The Chairperson may call a meeting of the Coordinating Committee at the request of any representative on the Coordinating Committee. The Chairperson shall promptly call a meeting of the Coordinating Committee at the request of representatives on the Coordinating Committee, or their designated alternates, who are entitled in the aggregate,. to votes totaling the number of votes required to take action on the matter before the Coordinating Committee. Notwithstanding anything to the contrary in this Agreement, the representative of SCPPA on the Coordinating Committee shall not be entitled to vote on any matter. 8.1.2 Each member of the Coordinating Committee shall only be entitled to vote with respect to those Project Elements in which the member is a Phase Il Renewable Development Agreement -46- Project Element Participant. Votes on matters which affect the Project as a whole or which are otherwise within the jurisdiction of the Board of Directors shall be voted on -by the Board of Directors in accordance with the provisions' of Section 9 of this Agreement. Each Project Element Participant shall have a weighted vote in proportion to its Entitlement Share in the particular Project Element to which the vote is addressed. Should a Coordinating Committee decision address the Project as a whole as opposed to a Project Element or Project Elements each Participant represented on the Coordinating Committee shall be entitled to a weighted vote equal to the proportion which the Entitlement Shares belonging to that Participant in all Project Elements bears to - the sum of all Participant Entitlement Shares in all Project Elements. In addition to -any other voting requirements imposed by this Agreement all actions or decisions by the Coordinating Committee with respect to Renewable Development Work concerning the Project or any Project Element shall be by agreement of at least, the Required Concurrence of the applicable Participants or Project Element Participants entitled to vote on .the matter based on the Renewable Development Work Cost shares as set forth in Exhibit A. Any vote of the Coordinating Committee may be taken in an assembled meeting or by telephone, facsimile transmission, telegraph, telex, letter or by any combination thereof, to the extent permitted by law, provided that if taken by telephone, a written record shall thereafter be made as soon as Phase 11 Renewable Development Agreement -47- possible by the Chairperson of the Coordinating Committee ' or by the person designated by the Chairperson to make such record. If a Participant is sixty (60) days or more delinquent in its payment of Renewable Development Work . Costs or Pre -Operation Costs its representative on the Coordinating Committee, at the discretion of the remaining Coordinating Committee members in good standing, shall not be entitled to vote for so long as such delinquency continues, and all votes taken while such delinquency continues shall be adjusted to eliminate the voting percentage of the Participant in default. 8.1.3 Each Party shall promptly give notice to the other Parties participating in Phase I or Phase II of any change in the designation of its representative or alternate representative on the Coordinating Committee and any other committee. Any such notice shall be effective if given at least one day prior to the first meeting of the Coordinating Committee or other committee at which such new representative or alternate representative will attend.. 8.2 Duties and Res onsibilities of the Coordinatin Committee. The Coordinating Committee may meet at such times and locations as the Participants shall deem advisable, and the Coordinating Committee or the Board of Directors, as applicable, shall have the following duties and responsibilities, among others: 8.2.1 Monitor the continuation and completion of Renewable Development Work and Financing Work. 'Phase 11 Renewable Development Agreement - 48 - 8.2.2 Provide liaison among the Parties and the Project Manager with respect to Renewable Development Work and Financing Work. 8.2.3 Exercise general supervision over the committees established pursuant to Section 8.4 herein. 8.2.4 Review, discuss and attempt to resolve 'any disputes relating to the Project or any Project Element among Parties or among Parties and the Project Manager. 8.2.5 Make recommendations to the Project Manager with respect to Renewable Development Work and Financing Work. 8.2.6 Review written statistical and administrative reports and information and other similar reports and records. furnished to the Coordinating Committee by the Project Manager. 8.2.7 Review and take such action as is appropriate with respect to all proposed budget revisions prepared and submitted by the Project Manager. 8.2.8 Review and act upon revisions recommended by the Project Manager with respect to the description of the Project and the description of each Project Element, which revisions shall be in accordance with Prudent Utility Practice. 8.2.9 Review and act upon other recommendations of the Project Manager. Phase ILRenewable Development Agreement -49- 8.2.10 Review and act upon all contracts or contract amendments negotiated and arranged for by the Project Manager which relate to Renewable Development Work or Financing Work. 8.2.11 Prepare, revise or otherwise act upon the minutes of meetings of the Coordinating Committee. 8.2.12 Review and act upon all proposed amendments to this Agreement and, if the Coordinating Committee approves such amendment or amendments, provide for the forwarding of same to the Parties for their consideration and, if necessary, their approval. 8.2.13 Review and act upon the Project schedules and cost estimates 8.2.14. Review and approve those Project Agreements and other agreements for the retention of specialized services or consultants for the purpose of carrying out Renewable Development Work and Financing Work. 8.2.15 Review and approve the form of each, Project Agreement with respect to the Project and each Project Element prior to the circulation thereof for execution pursuant to Section 12 hereof. 8.2.1 b Review and act . upon proposed . renewable resource procurement arrangements, purchases and acquisitions and any Acquisition -or related facilities recommended by the Project Manager to be acquired for any Project Element or by any Project Element Participants in accordance with Prudent Utility Practice. Phase II Renewable Development Agreement - 50 - 8.2.17 Determine, where deemed appropriate, such cost allocation related matters and cost allocation questions as may arise upon the entry of a new Project Element Participant or new Project Element Participants into a Project Element. 8.2.18 Determine, where deemed appropriate, such cost allocation related matters and cost allocation questions as may arise upon the departure or withdrawal of any Project Element Participant or Participants from a Project Element. 8.2.19 Review and aot upon any litigation or potential litigation, including the settlement thereof, relating to Renewable Development Work, Financing Work or relating to the Project or any Project Element. 8.2.20 Meet or coordinate with such other SCPPA Committees as may be appropriate to exchange information or coordinate work which may touch upon matters of mutual interest. 8.2.21 Meet and coordinate and in appropriate cases decide upon and approve revisions to the Project description. 8.2.22 Review, study, modify and approve as necessary the revisions of Exhibit A,, which may be necessary or appropriate to reflect the revision of participation with respect to any .Project Element by any Project Element Participant, including revisions of Proposed Production Capacities, Entitlement Shares, Development Work Cost Phase II Renewable Development Agreement -51- Shares, as well as the entry or withdrawal of a .Project Element Participant with respect to any Project Element. 8.2.23 Arrange as necessary for the financing of the costs, as applicable, of each Project Element (or of SCPPA's ownership interest therein) for the Participants as identified on Exhibit A hereto. 8.2.24 Arrange as necessary for the financing of costs, as applicable, of each Project Element for Participant(s) identified on Exhibit A hereto, including the pledging of,- and the imposition of a lien upon, the - amounts collected from such Participant(s) pursuant to this Agreement. (other than amounts reimbursed to the Project Manager and SCPPA pursuant to the provisions of this Agreement) for the purpose of securing any obligation incurred by SCPPA or the Project Manager for the purpose of paying such costs payable by the Participant(s) identified in Exhibit A hereto. 8.2.25 Review and act upon the contracts arranged and negotiated by the Project Manager pursuant to Section 5.4.12 herein. 8.2.25 Perform such other functions and duties as are reposed in it or assigned to it by this Agreement. 8.3 Arrandung for Audits of Project Manager's Records. The Coordinating Committee or the Board of Directors may arrange for audits of the books and cost records of Phase II Renewable Development Agreement -52- the Project Manager and any cost reimbursable consultant or contractor, relating to the performance of Renewable Development Work. 8.4 Establishment of Other Committees. The Coordinating Committee or the Board of Directors may establish other committees, including, but not limited to, auditing, legal, financial, engineering, operating, insurance, environmental and public information committees. The Coordinating Committee shall establish the authority, membership, rules and duties of each committee, and each such committee shall be subject to the provisions of this Agreement. Each such committee shall be responsible to the Coordinating Committee. 8.5 Limited Authority of Coordinating Committee to Amend A ear ernent. 8.5.1 Exhibit A contained herein may be amended by the Coordinating Committee, by the Board of Directors, or when applicable to a Project Element in which Participant is participating by the Project Representative and Contract Administrator, or as otherwise provided in this Agreement to reflect revisions in participation, revisions in generation or transmission shares, proportions, percentages or capacity, the addition of new Project Elements or the deletion of previously existing Project Elements. The budget with respect to any Project Element approved by the Coordinating Committee or Board of Directors may be amended by the Coordinating Committee or Board of Directors or as otherwise provided in this Agreement. Any such Phase II Renewable Development Agreement -53- amendment or addition to Exhibit A shall be supplied to Participant upon request. 8.5.2 Except for those amendments which may be effectuated as specifically otherwise provided under this Agreement, this Agreement may only be amended as provided in Section 20.6. Except as otherwise provided herein, neither the Coordinating Committee nor any of its appointed committees shall have the authority to amend this Agreement. 8.6 Written Records to be Kept Actions .by the Coordinating Committee as required by this Agreement shall be set forth in its minutes, except when made by telephone pursuant to Section 8.1.2 and 8.1.3, as applicable, here, whereupon a written record thereof shall be made thereafter as soon as possible as provided in Section 8.1.2 and 8.1.3, as applicable, herein or as provided by law. 8.7 Costs Incurred by Representatives of Participants. Unless otherwise provided by resolution of the Coordinating Committee or the Board of Directors, any expenses incurred by the Project Representative and Contract Administrator, or incurred by any representative of any Participant serving on the Coordinating Committee or any other committee in connection with his or her duties on the Coordinating Committee or any other committee shall be paid by the Participant and shall not be included as Renewable Development Work Costs or Pre -Operation Costs. 9. ROLE OF PARTICIPANT SCPPA AND THE BOARD OF DIRECTORS. Phase II _Renewable Development Agreement -54- 9.1 Project Matter Voting Methodology. The performance contemplated. under this Agreement and rights and obligations of SCPPA under this Agreement shall be subject to the ultimate and supervening control of the Board of Directors. Actions by the SCPPA Board of Directors with respect to a Project Element in which the Participant is a Project Element Participant shall only be carried forth with Participant's participation. Voting on Project Element Determinations with respect to a Project Element which is proposed to become a SCPPA project shall be conducted in accordance with the voting procedures set forth in the Joint Powers Agreement. Participant will participate in the SCPPA Board of Directors meetings with respect to any Project Element in which it is a Project Element Participant and Participant will cooperate with SCPPA and the Board of Directors to provide for effective interchange of information relating to such Project Element to provide coordination on a prompt and orderly basis to SCPPA, in connection with the various financial, administrative and technical matters which may arise from time to time in connection with administration of Renewable Development Work and Pre -Operation Costs affecting the Project Element. All actions with respect to any Project Element or the Project as a whole taken by the SCPPA Board of Directors shall be carried out in, conformance with SCPPA's Joint Powers Agreement, dated as of November 1, 1980, as amended. 9.2 Participant's Project -Representative and Contract Administrator. In accordance with the provisions of Section 24 herein, Participant may designate an individual to act as the Project Representative and Contract Administrator who shall be responsible for the ongoing exchange of information, coordination and Phase II Renewable Development Agreement -55- cooperation with SCPPA and such elections with respect to Project Elements under this Agreement'as may be necessary to carry out the Participants renewable energy goals with respect to the Project. Participant may designate alternate representatives by similar notice to act as alternates in -place of or on behalf of its regular Project Representative and Contract Administrator, in the absence of the regular representative or to act on specified occasions with respect to specified matters. Participant shall promptly: give notice to SCPPA of any change in the designation of its representative or alternate representative. 9.3 Duties and Responsibilities of the Board of Directors The actions carried forth pursuant to this Agreement and the agreements associated with any Project Element as well as the rights and obligations of SCPPA in relation to the Participants under this Agreement or any agreement associated with ariy Project Element and under other agreements and arrangements pertaining to ongoing Phase I Project matters and Phase II Project matters, shall be subject to the ultimate control at all times of the Board of Directors. The Board of Directors shall have the following duties and responsibilities, among others: 9.3.1 The Hoard of Directors may, by resolution, authorize or prescribe alternative billing, payment, costing and cost reconciliation mechanisms as an alternative to the billing mechanisms otherwise provided in this agreement, to address such billing, payment, costing and cost reconciliation issues as may from time to time arise with respect to. the Project or with respect to any Project Element. Phase II Renewable Development Agreement -56- 9.3.2 To the extent provided by law, the Board of Directors may, by resolution, act upon and. approve the participation, of additional .public agencies as participants in the Phase H Project (which additional public agencies, as applicable, may become Additional Parties under the terms and conditions of an agreement which mirrors this agreement) and shall have ' authority to approve any agreement with such an agency to carry forth such participation. 9.3.3 Where appropriate, the Board of Directors -may provide overview or recommendations with respect to the progress of Renewable Development Work. 9.3.4 When necessary or appropriate the Board of Directors may provide liaison between SCPPA and the Project Manager and, where desirable or appropriate, between the Participant and other SCPPA members with respect to Renewable Development Work. 9.3.5 The Board of Directors shall exercise general supervision over any committee(s) created pursuant to Section '9.5 hereof, if any such committee(s) are so established 9.3.6 The Board of Directors shall review, discuss and attempt to resolve any problems, disputes or issues among members relating to any Project Element or relating to the Project in general. Phase H Renewable Development Agreement -57- 9.3.7 The Board of Directors shall review and act upon all recommendations of the Project Manager made to the Board of. Directors to incur Pre - Operation Costs. 9.3.8 The Board of Directors may make recommendations to the Project Manager with respect to Renewable Development Work. 9.3.9 The Board of Directors may review written statistical and administrative reports and information and other similar reports and records furnished to the Board of Directors by the Project Manager. 9.3.10 The Board of Directors may. review . and act upon revisions recommended by the Project Manager with respect to the description of the Project or any Project 'Element, which revisions shall be in accordance with Prudent Utility Practice. 9.3.11 The Board of Directors may review and. act upon other recommendations of the Project Manager 9.3.12 The Board of Directors, where appropriate, may create or issue such budgets or budgetary or cost payment mechanisms as may be appropriate or desirable to pay and account for all costs of Renewable Development Work. 9.3.13 The Board of Directors may review and act upon any and all contracts or contract amendments which relate to Renewable Development Work or the incurrence of Pre -Operation Costs. Phase 11 Renewable Development Agreement 9.3.14 The Board of Directors may review and act upon all proposed amendments to this Agreement and, if any such amendment or amendments are approved, provide if requested, for the forwarding of same to the Participant which is signatory hereto. 9.3.15 The Board of Directors may review and act upon any litigation or potential .litigation, including , the settlement thereof, relating to Renewable Development Work or Pre -Operation Costs or otherwise arising out of or associated with any Project Element. 9.3.16 The Board of Directors may take such action as may be necessary to make preparations and arrangements for the financing of any Project Element which is being posed to be developed into a proposed SCPPA project and for SCPPA's interest therein. 9.3.17 The Board of Directors may review and act upon the contracts requested by, arranged for or otherwise negotiated by the Project Manager pursuant to .Section 5 hereof. 9.3.18 The Board of Directors is reposed with the complete power and authority to act upon any matter which is capable of being acted upon by the Coordinating Committee or which is specified as being within the authority of the Coordinating Committee pursuant to the provisions of this Agreement, including those matters enumerated in Section 8 of this Agreement. Phase II Renewable Development Agreement -59- 9.3.19 The Board of Directors may perform such other functions and duties as may be appropriate for the Board of Directors to efficiently carry forth the objectives of this Agreement. 9.4 Audits. The Board of Directors may arrange for audits of the books and cost - records of the Project Manager and any cost reimbursable consultant or contractor, relating to the performance of Renewable Development Work or the incurrence of Pre -Operation Costs. 9.5 Establishment of Other Committees. The Board of Directors may establish other committees, including, but not limited to, auditing, legal, financial, engineering, operating, insurance, environmental and public information committees. The authority, membership, rules and duties of any such committee, if established, shall be as prescribed by the Board of Directors, and each such committee shall be subject to the provisions of this Agreement and shall be responsible to the Board of Directors. 9.6 Delegation. To secure the timely administration of this Agreement by SCPPA - and to promote the necessary actions, approvals and coordination -in connection with various administrative, technical and other matters which .may arise from time to time in connection with the development, construction, management, operation, administration and maintenance of the Project, in appropriate cases the authority, powers, duties and responsibilities of the Board of Directors under this Section 9, may be delegated to the Executive Director. 10. OBLIGATIONS OF THE PARTIES. Phase Il Renewable Development Agreement 10.1 Furnishing Studies to SCPPA. Upon completion of the Renewable Development Work, the Project Manager shall furnish to SCPPA copies of reports and studies which may have been developed during the planning and development stage related to the Renewable Development Work in addition to those described in Section 5.4.19 hereof. 10.2 Participant's Payment Obligations Unconditional, No Release of Project Manager from Its O li ations: Action by Parties Against Third Parties or Under this Agreement. The obligation of the Participant pursuant to this Agreement to make payments under this Agreement is absolute and unconditional, irrespective of any rights of setoff or counterclaim Participant might otherwise have against SCPPA. Participant shall be responsible for such payments to SCPPA for any costs incurred by SCPPA for the benefit of Participant with respect to the Project or for the benefit of Participant as a Project Element Participant in any Project Element. This provision shall not be construed to release either SCPPA or Participant from the performance of either SCPPA's or the Participant's obligations or undertakings contained in this Agreement or to release the Project Manager from any of its obligations or undertakings, or, except to the extent provided in this Section, prevent or restrict any Participant at its own costs and expense, from prosecuting or defending any action or proceeding against or by third parties or taking any other action to secure or protect its rights under this Agreement; provided, however; that any costs incurred by SCPPA in prosecuting or defending any such action or proceeding or taking any other action to secure or protect its Phase H Renewable Development Agreement -61- rights under this Agreement shall be Renewable Development Work Costs which shall be paid as incurred by SCPPA, in accordance with this Agreement. 10.3 Partie to Furnish Information. In addition to its obligation to provide information to the Project Manager,as provided in Section 5.3 hereof, SCPPA and Participant each agree to cooperate fully in connection with any regulatory authority, as required, in connection with obtaining leases, permits, licenses, entitlements, rights, certifications and approvals, including such city, county or other local approvals as may be necessary or appropriate to the Project pursuant to Section 5.4.1 hereof. Such cooperation may include, but shall not be limited to, the furnishing of necessary financial, operational and other information of either Party as related to the Project. Nothing in this section shall preclude SCPPA or Participant from contesting the validity or applicability of any such conditions, permits, approvals, or regulatory or governmental authorizations in good faith by appropriate proceedings. 11. WITHDRAWAL FROM THE PROJECT. 11.1 Withdrawal from the Project. Notwithstanding the expiration date otherwise prescribed for this Agreement, Participant may unilaterally terminate this Agreement at any time during the Term upon 180 days written notice to SCPPA. Upon such unilateral termination by Participant, SCPPA shall transfer or assign to Participant, and Participant shall assume all SCPPA's rights, responsibilities, obligations and liabilities associated with the Project including all rights and obligations of SCPPA under such Project Agreements as may be applicable but. Phase II Renewable Development Agreement -62- only to the extent such Project Agreements permit such an assignment. Notwithstanding the unilateral withdrawal right under this Section 11.1, if any of SCPPA's obligations associated with the Project, pursuant to any Project Agreement or any other applicable agreement for development of the project. or for- the effectuation of any such withdrawal or assignments, survive said transfer from SCPPA to Participant, then any such obligations shall continue to remain the obligation of Participant and shall survive under this Agreement. Any - outstanding payment obligations of Participant due to Renewable Development Work Costs incurred prior to the date of withdrawal and any outstanding Pre - Operation Costs incurred by the Project Manager or otherwise on behalf of the withdrawing Participant prior - to the date of withdrawal shall continue until satisfied, and Participant shall be entitled to access to and, upon request, receive copies of documents relating to Renewable . Development Work and the incurrence of Pre -Operation Costs pertaining thereto. 11.2 No Reimbursement of Costs upon Withdrawal Exception. Should Participant withdraw from a Project Element pursuant to Section 11.1 herein, it shall not be entitled to reimbursement of Renewable Development Work Costs incurred by SCPPA except as to those costs for which SCPPA is able to obtain reimbursement. 12. PARTICIPANT'S ELECTION TO PROCEED WITH REPECT TO A PROJECT ELEMENT. Phase II Renewable Development Agreement -63- 12.1 Action of the Parties at or near the Conclusion of Renewable Development_Work. Based upon the results of Renewable Development Work and a determination by any respective Project Representative and Contract Administrator, or the Coordinating Committee or the Board of Directors that Renewable Development Work (or substantially all Renewable Development Work) with respect to a. Project Element is for practical purposes, complete and that .the Project Element is fully subscribed and should proceed, or that the Project Element should proceed even though some Renewable Development Work may remain, the Project EIement Participants shall review as soon as possible and, as applicable, act upon (i) a description of the proposed project, (ii) the proposed schedules and various cost estimates associated with the final implementation of the proposed project and (iii) the instruments and agreements which should be approved by the approving authorities of each of the Project Element Participants, including but not limited to. Power Sales Agreements, Participation Agreements, Transmission Services Agreements or other or additional similar agreements or instruments by which to implement the proposed project. 12.2 Exercise of Election to Proceed with the Project. After satisfying the matters addressed in Section 12.1 Participant and SCPPA shall, at a time governed by their respective approval processes and the extent of the governmental ' business before their respective approving authorities, elect whether each Party wishes to proceed with the proposed project. Such election may be provided to SCPPA by. way of the approval of the agreements for implementation of the proposed project by the Project, Element Participants' respective governing bodies. Provided, Phase 11 Renewable Development Agreement -64- however, that the proposed project shall not be finally approved or proceed unless and until the appropriate SCPPA subscription in the proposed project is obtained by way of final approval by the respective Project Element Participants' governing bodies. 13. EXECUTION OF PROJECT AGREEMENTS. As soon as practicable after the Parties have elected pursuant to Section 12 to proceed with the Project, the Project Manager shall assist SCPPA in the preparation and approval of any remaining Project Agreements which may be appropriate for the Project and (ii) such other matters as shall be necessary or desirable to complete said Project Agreements including, without limitation, a detailed description of the Project as then proposed. The. Parties hereby agree that they will use their best efforts to obtain all such authorizations and approvals as promptly as possible. 14. LIABILITY 14.1 No Liability of SCPPA. Participants, or the. Project Manager,, their Directors Officers Em toe Etc. SCPPA and its Directors Officers Em to ees and Project Manager and its Directors. Officers, Emplovees Not Individually Liable, Subject to the conditions set forth herein and except for the duty of each Participant to pay its costs under this Agreement as set forth in the last sentence of this Section 14.1, the Parties to this Agreement agree that neither SCPPA, Participants or the Project Manager (in its capacity as Project Manager separate and apart from its capacity as a Participant) nor any of their past, present or future directors, officers, employees, board members, agents, attorneys or advisors (collectively the "Released Parties") shall be liable for any claims, demands, Phase H Renewable Development Agreement -65- liabilities; obligations, losses, damages (whether direct, indirect or consequential), penalties, actions, loss of profits, judgments, orders, suits, costs, expenses (including attorneys' fees and expenses) or disbursements of any kind or nature whatsoever in law, equity or otherwise (including, without limitation, death, bodily injury or personal injury to any person or damage or destruction to any property of any of the Participants, SCPPA or third persons) suffered by any Released Party as a result of the performance or non-performance by any of the Released Parties under this Agreement .(excluding gross negligence; or willful misconduct which, unless otherwise agreed to by the Parties, are both to be determined and established by a court of competent jurisdiction in a final, nonappealable order). Each Party releases the Released Parties from any claim or liability that the Party may have cause to assert as a result of any actions or inactions or performance or non-performance by the Released Parties under this. Agreement (excluding gross negligence or willful misconduct which, unless otherwise agreed to by the Parties, are both to be determined and established by a court of competent jurisdiction in a final, non -appealable order). No such performance or non-performance by the Released, Parties shall relieve either SCPPA, Participants or the Project Manager of their respective obligations under this Agreement, including either Party's obligation to make payments required under this Agreement. The provisions of this Section 14.1 shall not be construed so as to otherwise relieve the Project Manager_ from any obligation under this Agreement or other applicable agreements. It is also hereby recognized and agreed that no member of the Board of Directors, the Project Manager or SCPPA Phase II Renewable Development Agreement -66- or the Participants, nor their officers, employees, board members, agents, attorneys or advisors, shall be individually liable in respect of any undertakings by any of the Released Parties under this Agreement. The provisions of this Section 14.1 with respect to the Project Manager shall only apply to the Project Manager in its capacity as Project Manager, and shall snot extend to or affect any Payment obligations incurred in its capacity as a Participant: Therefore, notwithstanding any provision of this Agreement which might arguably be construed to the contrary, nothing in this Section 14 shall affect a Participant's obligation to pay its appropriate Renewable Development Work Cost Share or its proportionate share of Pre -Operation costs which are imposed upon it in * its capacity as a Participant or Project Element Participant under its .Phase II Renewable Development Agreement, irrespective of whether or not the Participant or Project Element Participant is also serving in the capacity of Project Manager. For the avoidance of doubt, nothing in this Section 14.1 or in any other provision of this Agreement shall affect Participant's obligation to make any and all payments in accordance with the first two sentences in ' Section 10.2 of this Agreement and Section 2.24 of this Agreement or to pay any other amounts or costs required to be paid by it under this Agreement. - 14.2 Limitation on Liabili . It is hereby recognized and agreed that SCPPA's directors, officers and employees shall not be individually liable with respect to any loss or damage not covered by insurance and resulting from Renewable Development Work, matters relating to Pre -Operation Costs or the performance or nonperformance of any obligation under this Agreement. The obligations of Phase II Renewable Development Agreement -67. SCPPA under this Agreement shall never constitute a debt or indebtedness of SCPPA within the meaning of any provision or limitation of the Constitution or statutes of the State of California and shall not constitute or give rise to a pecuniary liability of SCPPA or a charge against its general credit. 14.3 Extent -of Exculpation: Enforcement of Rights in Equity. The exculpation provision set forth in Section 14.1 and 14.2 hereof shall apply to all types of claims or actions including, but not limited to, claims or actions based on contract or tort. Notwithstanding the foregoing, either Party may protect and enforce its rights under this Agreement by a suit or suits in equity for specific performance of any obligation or duty of the other Party, and each Party shall -at all times retain the right to recover, through appropriate legal proceedings, any amount determined to have been an overpayment, underpayment or other direct monetary damages owed by either a Participant, SCPPA or the Project Manager as the case maybe, including, without limitation, any costs payable to SCPPA and any costs payable to the Project Manager in its capacity as Project Manager in accordance with the terms of this Agreement. 14.4 Allocation of Costs to Dischar e Liability. The costs and expenses of discharging liability of either of SCPPA or Participant, or the respective past, present or future directors, officers, employees, board members, agents, attorneys or advisors of each,, to a third party, resulting from Renewable Development Work, the incurrence of Pre -Operation Costs or the performance or nonperformance of any obligation under this Agreement with respect to any .Project Element, and for which payment is not made by insurance provided through SCPPA, shall be Phase II Renewable Development Agreement -68- allocated to the Project Element Participants in accordance with the Entitlement Share of each such Project Element Participant in -such Project Element. 14.5 Application of California Law of Contribution. In conformance with the philosophy of the Southern California Public Power Authority upon this subject as embodied in Section 7 of the Joint Powers Agreement, the following principles shall apply with respect to the law of contribution between the respective ,Project Element Participants in a Project Element under this Agreement. 14:5.1 Notwithstanding any provision of this Agreement to the contrary, in the event any Project Element Participant is held liable upon any judgment for damages (whether direct, indirect or consequential) caused by a negligent or wrongful act or omission occurring with respect to a Project Element in which it is participating, and. to the extent reasonable expenses (including without limitation, attorney's fees) are incurred by the Project Element Participant with respect to the relevant action or suit (such expenses and judgment for damages collectively to be termed "Judgment Damages") and further provided that such Project Element Participant pays in excess of its Liability Share of - such Judgment Damages, such Project Element Participant shall be entitled to contribution from each other Project Element Participant . in such Project Element and such Project Element Participant may require each other Project Element Participant to pay any amount in excess of such Project Element Participant's Liability Share of such judgment which such Project Element Participant has paid, but in no event shall any Phase Il Renewable Development Agreement -69- such other Project Element Participant be so required to pay in excess of such other Project Element Participant's Liability Share of such Judgment Damages. 14.5.2 With respect to any Judgment Damages or portion thereof referenced in Section 14.5.1 the term "Liability Share" shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Project Element Participant's then existing entitlement or right, if any, to participate in such Project Element, divided by (ii) the. aggregate amount of all Project Element Participants' entitlements or rights to participate in such Project Element. 14.6 No`,Relief of Insured Obligations. The provisions of this Section 14 shall not be construed so as to relieve any insurer. of its obligation to pay any insurance. proceeds in accordance with the terms and conditions of a valid and collectible insurance policy. 15. DEFAULT. 15.1 Notice of Default. If either Party to this Agreement is of the opinion that the other Parry is in default under this Agreement, the Party having that opinion may give written notice to the other Party of the alleged default. At its next regularly scheduled meeting the Board of Directors shall attempt to informally resolve, the matter. If no such informal resolution can be achieved by the Board of Directors the Board of Directors shall determine the existence and nature of the alleged default after opportunity by each Party to provide a full presentation of all facts Phase II Renewable Development Agreement -70- and issues in dispute, by a vote taken by the Board of Directors, excluding the vote of Participant. If it is determined by such vote (as adjusted to eliminate the voting percentage of Participant). that a default exists, the Board of Directors shall request that the defaulting Party immediately cure the default. 15.2 Obligation to Cure Default. Subject to Section 15.3 hereof, a Party determined to be in default by the Board of Directors pursuant to Section 15.1 shall take all steps necessary to cure such default as promptly and completely as possible. 15.3 Initial Dispute Resolution of Alleged Default. In the event that a Party shall dispute the existence or nature of a default determined by the Board of Directors pursuant to Section 15.1 hereof, such Party shall pay the disputed payment or perform the disputed obligation but may do so under protest. Any such protest shall be promptly filed in writing with the Secretary of the Board of Directors and shall specify the ground on which the protest is based. Upon the filing of such a protest the Parties agree that the Parties. shall first employ the non -binding mediation process which is set forth in this Section 15.3 before initiating any other legal action. 15.3.1 Unless the time requirement is otherwise extended by the mutual assent of the Parties, as soon. as practicable after the filing of the protest of a Party pursuant to Section 15.3 but not later than thirty (30) days after the determination by the SCPPA Board of Directors pursuant to Section 15.1 herein, the Parties shall select a retired judge or other disinterested person with previous mediation experience to serve as mediator. Phase II Renewable Development Agreement -71- Unless this requirement is waived by the mutual agreement of the Parties, the mediator, in his or her personal capacity, shall not be a ratepayer- of the Participant. Unless otherwise waived- by mutual agreement of the Parties, either Party may require disclosure by the mediator of those matters, as shall be specified by the requesting Party, which are set forth in Standard 7 of the "Ethics Standards for Neutral Arbitrators in Contractual Arbitration" (Division VI of Appendix to California Rules of Court) or such successor ethical standard for neutral arbitrators in contractual arbitration ,promulgated by the California Judicial Council or its successor body, requiring neutral arbitrators in contractual arbitrations to disclose certain interests they may have'in relation to the matter to the Parties. 15.3.2 If the Parties are unable to agree upon a mediator, the Parties shall obtain a list of proposed mediators from the Judicial Arbitration and Mediation Service (JAMS) or successor organization. Unless waived. by the Parties the proposed mediators shall satisfy' the conditions regarding rate payer status and disclosure set forth in Section 15.3.1. Once the list is provided, the Parties shall each have ten (10) days in which to strike names objected to, number . the remaining names in order of preference, and return the list to the JAMS. If a Party does not return the list within the time specified, all persons named therein shall be deemed acceptable. From among the persons who have been approved on both lists, and in accordance with the designated order of Phase II Renewable Development Agreement -72- mutual preference, the JAMS shall invite the acceptance of a mediator to serve. If the Parties fail to agree on any of the persons named, or if . acceptable mediators are unable to act, or .if for any other reason the appointment cannot be made from the submitted lists, the Parties shall repeat the procedure set forth in this Section 15.3.2 unless the Parties shall agree to another process for selection of a mediator. 15.3.3 The mediation shall be commenced within sixty (60). days of the fmal determination by the SCPPA Board of Directors, referenced in Section 15.1, that it is unable to resolve the dispute and shall be concluded within thirty (30) days from the commencement of the mediation unless the time requirements are extended upon agreement of the Parties. 15.3.4 Failure of Resolution through Mediation. If the non binding mediation set forth herein fails to resolve the dispute and, if the dispute still cannot, even with the hindsight of the mediation, be resolved by the by the SCPPA Board of Directors, either Party may take any action permitted by law to enforce its rights under this Agreement, including but not limited to termination of this Agreement, and/or bring any suit, action. or proceeding at law or in equity as may be necessary or appropriate to recover damages and/or enforce any covenant, agreement or obligation in dispute. 16. ARBITRATION. Nothing herein shall prevent the Parties from resolving any dispute under this Agreement by submission of the dispute to such form of arbitration as the Phase II Renewable Development Agreement - 73 - Parties may agree upon, provided however, that the Parties shall first exhaust the mediation process set forth in Section 15 hereof. 17. RELATIONSHIP OF PARTIES 17.1 Individual ResRonsibility. The covenants, obligations and liabilities of this Agreement shall not be construed to create an -association, joint venture, trust, partnership or other legal entity or to impose a trust or partnership covenant, obligation of liability on or with regard to the Parties. Each Party shall be individually responsible for its own covenants,- obligations and liabilities under this Agreement; provided, however, that any liability incurred by SCPPA and/or the Project Manager, under this Agreement shall. be treated as Renewable Development Work Costs which shall be paid or reimbursed by Participant. 17.2 Methodologies for Cost Sharing. The Parties mutually acknowledge that other SCPPA members, in addition to Participant, have expressed interest in planning and developing certain Project Elements which may form a portion of This Phase II project. Whenever feasible and practicable, and to the extent the costs of such Renewable Development. Work relating to such other SCPPA members can be shared by Participant and such other participating SCPPA members, SCPPA shall endeavor to implement a mutually agreeable and equitable methodology to share such costs among the participating members. Participant agrees to pay its share of all such costs. 18. BINDING OBLIGATIONS. All of the obligations set forth in this Agreement shall bind the Parties and their successors and assigns. Phase II Renewable Development Agreement -74- 19. ASSIGNMENT. 19.1 Limited Assignment Right. A Participant may assign or convey all or part of its rights, interests and obligations with respect to a Project Element under this Agreement to a third party (non Participant), provided that (i) the Coordinating Committee approves of such assignment, which such approval may be withheld for any reason or no Treason at all at the sole discretion of the Coordinating Committee and (ii) the Coordinating Committee may, as a condition to approving the assignment, require that the remaining Participants which may be signatory to a Phase I Agreement or Phase H Agreement, may have the right of first refusal on such terms and under such time constraints as the Coordinating Committee may specify. 19.2 Assignment Procedures. Prior to any third party assignment, the assigning Participant by United States Postal Service certified mail shall offer in writing to each of the remaining Participants its Renewable Development Work Cost Share, Pre -Operation Cost share or its share of the Project Element upon the same or better terms and conditions provided to the third party. Upon receipt of such written offer each remaining Participant shall have 30 days in which to exercise its right of first refusal. Exercise of . such right shall be in writing and communicated to the assigning Participant by United States Postal Service Certified Mail. If more than the total amount of the assigning Participant's Renewable Development Work Cost Share, Pre=Operation Cost share or its share of the Project Element is requested to be assigned to the remaining Participants, the assigning Participant's Renewable Development Work Cost Share, Pre - Phase Il Renewable Development Agreement -75- Operation Cost share or its share of the Project Element shall be allocated pro rata (based upon the amounts requested) to the. remaining Participants, and such allocation shall be deemed effective upon compliance with Section 19.2 and 19.3 hereof . 19.3 Effectiveness of Assigment. Any assignment shall not become effective until (i) the assignee assumes the assignor's rights, interests and obligations under this Agreement for the rights, interests and obligations so assigned and pays any amount (or the applicable portion thereof) then due and owing by the assignor under this Agreement (unless the assignor has agreed pursuant to the applicable assignment agreement to pay all such , amounts then due and owing by the assignor) and (ii) the assignee executes and delivers to the Project Manager a signature page to this Agreement in substantially the form attached hereto or otherwise enters into an agreement mutually agreeable to assignor, assignee and the non -assigning Participants as a substitute agreement to this Agreement. Upon any such assignment and execution of this Agreement or applicable substitute agreement, the assignee shall become a party to such agreement and a Participant in the Project as of the effective date of the assignment. Immediately following such assignment and execution of this Agreement or applicable substitute agreement, the Project Manager promptly shall distribute to -each Party (i) a copy of the signature page signed by the assignee, (ii) a revised cover page and page 1 of this Agreement or the applicable substitute agreement that includes the name of the assignee, (iii) a revised Exhibit A hereto, if applicable and (iv) the address, Phase II Renewable Development Agreement -76- contact and notice information pertaining to the assignee'for purposes of Section 23.1 hereof. 20. GENERAL PROVISIONS. 20.1 Waiver Not to Affect Subsequent Defaults. A waiver at any by any Party of its rights with respect to a default or any other matter arising in connection with this Agreement shall not be deemed a waiver with respect to any other or subsequent default or matter. 20.2 Execution in Counterparts. This Agreement may be executed in counterparts, and each signatory Party shall deliver its executed counterparts to the Project Manager. All such counterparts, collectively, shall constitute but one and the same agreement. 20.3 No Rights in Third Parties or Duties Created. Except as provided in this Agreement, the Parties do not create any rights in or grant remedies to'any third party as a beneficiary of this Agreement or create for the benefit of any third party any duty or standard of care by any covenant, obligation or undertaking established herein. 20.4 Headings Not Binding. The headings and captions in this Agreement are for convenience only and in no .way define, limit or describe the scope or intent of any provisions or sections ofthis Agreement. Phase II Renewable Development Agreement -77- 20.5 Severability. In the event that any provision of this Agreement shall be determined to be invalid or unenforceable in any respect, such determination shall not affect any other provision hereof, which shall remain in full force and effect. • 20.6 Amendments. Except as otherwise provided in this Agreement, including but not limited to Section 8.5 and 9.3 hereof, this Agreement may be amended only by a written amendment signed by the Parties. 20.7 Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to Renewable Development Work, Pre -Operation Costs and the Project. 21. GOVERNING LAW AND VENUE. This Agreement shall be interpreted, governed by and construed under the laws of the State of California, as if executed and to be -performed wholly within the State of California. The Parties each submit to the jurisdiction of the Courts of Los Angeles County. and unless the Parties shall agree otherwise, venue with respect to any dispute resolution or litigation arising out of this Agreement shall be in Los Angeles County. 22. EFFECTIVE DATE AND TERMINATION. 22.1 Effective Date, This Agreement shall become effective when duly executed and delivered by Participant and SCPPA. 22.2 Termination. Phase II Renewable Development Agreement -78- 22.2.1 Unless terminated earlier pursuant to Section 22.2.2 hereof, with the mutual concurrence of the Parties, the provisions of this Agreement with respect to a Project Element may be deemed terminated upon the execution of a Power Sales Agreement, Transmission Services Agreement or Participation Agreement with respect to such a Project Element, except that any payment obligation hereunder (whether.or not a billing statement has been received by the date of termination) and any right to receive reimbursement or otherwise, if any should exist, shall survive until satisfied. 22.2.2 This Agreement may be terminated at any time by agreement of the Parties hereto. Upon such agreement or upon termination of this Agreement, (i) the Project Manager shall terminate all Renewable Development Work respecting Participant in an orderly manner, (ii) Participant shall fulfill all obligations hereunder to pay for the costs incurred for Renewable Development Work, including any Pre - Operation Costs that have been incurred, and (iii) any payment obligation hereunder (whether or not a billing statement has been received by the date of termination) and any right to receive reimbursement or otherwise, if any should exist, shall survive until satisfied. 22.2.3 Upon termination of this Agreement, the Project Manager shall retain in a reasonably accessiblelocation all original reports, data and other documentation relating to Renewable Development Work and the Phase II Renewable Development Agreement -79- incurrence of Pre -Operation Costs for a period of three (3) years from the date this Agreement is terminated. 22.2.4 Upon termination of this Agreement, and for a period of three (3) years thereafter, each Parry. shall have full access to the Project files and records retained by the Project Manager and upon reasonable notification to the Project Manager may, at the requesting Party's sole expense, reproduce any or all of such Project files and records to the extent permitted by law. 23. NOTICES. 23.1 Addresses for Notices. Any notice, demand or request provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered. or certified mail, postage prepaid, to the persons specified below: With respect to the City of Anaheim: City of Anaheim Attention: Public Utilities General Manager 201 South Anaheim Boulevard, 1 lth Floor Anaheim, California 92805 With respect to the City of Azusa: City of Azusa Director of Utilities City of Azusa Light and Water P.O Box 9500 (729 N. Azusa Ave.) Phase II Renewable Development Agreement - 80 - Azusa, California 91702-9500 With respect to the City of Banning: City of Banning Electric Utility Department Attention: Fred Mason, Director 176 E. Lincoln Street Banning, CA 92220 With respect to the City of Burbank: City of Burbank Burbank Water and Power Attention: Ronald E. Davis, General Manager P.O. Box 631 Burbank, California 91503-0631 With respect to the City of Cerritos: City of Cerritos Attention: Art Gallucci, City Manager Alternate: Vince Brar 18125 Bloomfield Ave. Cerritos, CA 90703 With respect to the City of Colton: City of Colton Electric Utility Director 650 N. La Cadena Drive Colton, California 92324 With respect to the City of Glendale: City of Glendale Glendale Water and Power Attention: General Manager 141 N. Glendale Avenue, 4th Level Glendale, California 91206-4496 With respect to the City of Los Angeles Acting by and through the Department of Water and Power: Phase II Renewable Development Agreement - - -81— General Manager Los Angeles Department of Water and Power I I I North Hill Street, 15th Floor Los Angeles. California 90012 With respect to the City of Pasadena: City of Pasadena Attention General Manager - Water and Power Department 150 S. Los Robles Avenue, Suite 200 Pasadena, California 91101 With respect to the Imperial Irrigation District: Imperial Irrigation District Manager, Energy Department P. O. Box 937 (333 East Barioni Blvd.) Imperial, California 92251-0937 With respect to the City of Riverside: City of Riverside Riverside Public Utilities Dept. Attention: David H. Wright, General Manager 3901 Orange Street Riverside, California 92522 With respect to the City of Vernon: Abraham Alemu City of Vernon Resource Planning & Development Manager 4305 Santa Fe Avenue Vernon, CA 90058. With respect to SCPPA: Southern California Public Power Authority Executive Director SCPPA Office Building 1150 Nicole Court Glendora, California 91740 Phase II Renewable Development Agreement -82- 23.2 Designation of Different Addresses and Persons. Any Party may, at any time, by written notice to the other Parties; designate different persons or different addresses for giving of notices hereunder. 24. DESIGNATION OF THE PARTICIPANT'S PROJECT REPRESENTATIVE AND CONTRACT ADMINISTRATOR. Participant's Project Representative and Contract Administrator for this Agreement having the complete capacity and plenary authority to administer this Agreement on behalf of Participant shall be the individual so designated by the person authorized to receive notices pursuant to Section 23. 25. AGREEMENT TO BE EFFECTIVE AS BETWEEN ' SCPPA AND PARTICIPANT UPON APPROVAL BY PARTICIPANT'S APPROVING AUTHORITY. This Agreement shall become effective between SCPPA and the Participant which is signatory to this Agreement, upon approval by the signatory Participant's approving authority, irrespective of whether or not approved by any of the other Participants. SIGNATURE .PAGE FOLLOWS Phase II Renewable Development Agreement -83- Juarez, Debbie From: Julie Felipe jjfelipe@scppa.org] Sent: Friday, July 26, 2013 9:45 AM To: CaThompson@anaheim.net; Charles Guss; fcawte@ci.azusa.ca.us; gmorrow@ci.azusa.ca.us; ylehr@ci.azusa.ca.us; (mason@ci.banning.ca.us; jsteffens@ci.banning.ca.us; SFriedman@burbankca.gov; Ibleveans@burbankca.gov; HKPandey@burbankca.gov; dkolk@ci.colton.ca.us; rgallegos@ci.colton.ca.us; Puffer, Valerie; (peters@ci.glendale.ca.us; randolph.krager@ladwp.com; Sarmiento, Roberto; Daniel.Beese@ladwp.com; Juarez, Debbie; Alemu, Abraham; creeley@riversideca.gov; btang@riversideca.gov; rbarry@riversideca.gov; nxu@riversideca.gov; Bawa, Gurcharan; Nayudu, Leesa; sendo@cityofpasadena.net; rzhang@cityofpasadena.net Cc: knguyen@scppa.org; rmorillo@scppa.org; Daniel Hashimi Subject: RE: Update: Cerritos' Signed Phase II Renewable Development Signature Pages Attachments: Extract —Cerritos' Signature Pages Phase II Renewable Development Agreement.pdf For your records, attached is Cerritos' signature pages, which will now complete your file. Thank you, Julie Office: 626-793-9364 Cell: 626-660-5610 ifelipe@scooa.ora SCPPA: 1160 Nicole Court, Glendora, CA 91740 PRIVILEGED AND CONFIDENTIAL COMMUNICATION This electronic transmission, and any documents attached hereto, may contain confidentlaI and/or legally privileged Information. The Information Is Intended only for use by the recipient named above. If you have received this electronic message in error, please notify the sender and delete the electronic message. Any disclosure, copying, distribution, or use ofthe contents of Information received In error is strictly prohibited. From: Julie Felipe Sent: Friday, May 31, 2013 2:56 PM Subject: Update: IID's Signed Phase II Renewable Development Signature Pages All, For your files, attached is IID's respective signatures pages from their Phase II Renewable Development Agreement. No change in status on Cerritos' agreement. Have a wonderful weekend! Thank you, Julie Office: 626-793-9364 Cell: 626-660-5610 ifelipe@scpoa.ore SCPPA: 1160 Nicole Court, Glendora, CA 91740 PRIVILEGED AND CONFIDENTIAL COMMUNICATION This electronic transmission, and any documents attached hereto, may contain confidential and/or legally privileged Information. The Information is Intended only for use by the recipient named above. If you have received this electronic message In error, please notify the sender and delete the electronic message. Any disclosure, copying, distribution, or use of the contents of information received In error is strictly prohibited. IN WITNESS WHEREOF, each signatory hereto represents that he or she has been properly authorized to execute and deliver this Agreement as of the date first above written; on behalf of the P y r wfiich he or she signs. Date: , /Z3 12013 (Seal) Date: 2012 (Seal) Attest: Date: 2012 (Seal) Attest: Phase 11 Renewable Development Agreement CITY OF ANAHEIM By Title VW? UC KTIU n (,iM YLA1. WIAyQY< APPROVED AS TO FORM: CITY OFfNA L. TALLEY, CInT�Y ATTORNEY � Daniel A. Bailin CITY OF BANNING Title -84- Date: 2 R 1 ^�N 2-e (Seal) Attest: By _ BIL D. C . AHAN Title: Assistant Secretary SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY Phase H Renewable Development Agreement -88- IN WITNESS WHEREOF, each signatory hereto represents that he or she has been properly authorized to execute and deliver this Agreement as of the date first above written, on behalf of the Party for which he or she signs. Date: , 2012 (Seal) Attest: Date: October 22 „2012 (Seal) Date: , 2012 (Seal) Attest: CITY OF ANAHEIM Title CITY OF AZUSA B Au Title Mayor CITY OF BANNING Title Phase II Renewable Development Agreement -84- Date:.bWeM&r 2012 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (Seal) Attest: By D. eKR AHAN Title: Assistant Secretary Phase I1 Renewable Development Agreement By i RQ [ E. DAVIS Title: P "side it 1M IN WITNESS WHEREOF, each signatory hereto represents that he or she has been properly authorized to execute and deliver this Agreement as of the date first above written, on behalf of the Party for which he or she signs. Date: 2012 (Seal) Attest: Date: 12012 (Seal) Attest: Date: c— 2012 (Seal) Attest: Marie A. Calderon, City Clerk Phase H Renewable Development Agreement CITY OF ANAHEIM Title CITY OF AZUSA Title CITY OF BANNING i � / 4 Andrew J. Takata Title City Manager -84- Date: GbT'• 10 , 2012 (Seal) Attest: By BILL D: C AI-IAN Title: Assistant ecretary Phase II Renewable Development Agreement SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY By j LD ] DAVISTitlent' -88- Date: l l ' P'(?F. 2012 CITY OF BURBANK (Seal) Y Attest: Z�\ Date: 2012 (Seal) Attest: Date: 2012 (Seal) Attest: I J Cl1�t'J!°Ir;N Phase Il Renewable Development Agreement CITY OF CERRITOS Title CITY OF COLTON Title -85- Date:ZLeemLF* 20 2012 Attest: By �,qt—{,.h BILL D. CAT. HAN' Title: Assistant.Secretary SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY By % " J R N L `E. DAVIS Title: resident Phase II Renewable Development Agreement -88- Date (Seal) Attest: Date: 6 —2- , 2013 (Seal) Date: , , 2012 (Seal) Attest: Phase II Renewable Development Agreement CITY OF BURBANK By., Title CITY OF CERRITOS 13Y�ti _ Title C/Tl �/ilf CITY OF COLTON Title, 17,85 - 20 Date: July. 18� (Seal) SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY I Attest. BY BILLD NAHAN Title:, Assistant Secretary. Phase II Renewable Development Agreement -88- Date: 2012 CITY OF BURBANK (Seal) By Attest: CITY OF CERRITOS Date: , 2012 (Seal) Attest: Date: 12012 (Seal) Attest: Phase 11 Renewable Development Agreement Title Title t N4(NtLAP -85- Date: MAYCh 'Z (, 2013 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (Seal) w N E. DAVIS Attest: Titler- xesdent By BILL D. CAUAHAN Title: Assistant Secrets Phase II Renewable Development Agreement -88- Date: 2012 Date: 2012 (Seal) Attest: Date: 12012 (Seal) Attest: Phase II Renewable Development Agreement CITY OF GLENDALE IMPERIAL IRRIGATION DISTRICT Title CITY OF LOS ANGELES acting by and through its DEPARTMENT OF WATER AND POWER By Title And Secretary �N Date: 2012 CITY OF GLENDALE (Seal) By_ Attest: Date: tvi aq Q .2013 IMPERIAL IRRIGATION DISTRICT (Seal) Attest: Title��er� L_`n��ti.l� Ocvtce� Dates 2012 CITY OF LOS ANGELES acting by and through its DEPARTMENT OF WATER AND (Seal) POWER Attest: By Title And Secretary Phase II Renewable Development Agreement -86- Date:.M0. 31 _ 2013 (Seal) Attest: By BILL D. RNRN Title: Assistant Secretary Phase II Renewable Development Agreement SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 0 B IICt%`1• . NATD E. DAVIS Title:'_ President MM 2013 Date: 2 21 49{2-PZfF (Seal) Attest: By�cd�l BILL D. CA.FffiAI3(1N Title: Assistant Secretary SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY r By RONA E. 15AVIS Title: Presid' nt Phase II Renewable Development Agreement -88- Date: 2012 (Seal) Date: 2012 (Seal) Attest: Date: q - 7 - 12012 (Seal) Attest: w JUL I I BLORICOE EPUTY CITY ATTORNEY Phase II Renewable Development Agreement CITY OF GLENDALE LM Title IMPERIAL IRRIGATION DISTRICT 0 Title CITY OF LOS ANGELES acting by and through its DEPARTMENT OF WATER AND POWER o M By m v Ronald 0. Nichol �rn Title General Manager p. N c ca And Barbara E. Moschos N N Secretary 9?4.t)cd_1 N P N co -86- :Date;i0k20, 2012 (Seal) SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY NIS Attest: 4 Title: President, Board of Directors a By BILL D. 90MAHAN Title: Treasure/Auditor & Assistant Secretary Phase II Renewable Development Agreement (LADWP No. 12-020) _gg_ Date: OaE. // , 2012 (Seal) Attest: Date: .2012 (Seal) Attest: CITY OF PASADENA CITY OF RIVERSIDE Title Date: 12012 CITY OF VERNON (Seal) Attest: Date: 2012 (Seal) Attest: Title Title Phase Il Renewable Development Agreement -87- Date: I*Vgmk-r 15 , 2012 (Seal) Attest: By BILL D. CAIWAHAN Title: Assistant Secretary SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY By N R = NA " E. DAVIS Title:' resident Phase II Renewable Development Agreement -88- Date: 2012 (Seal) Attest: Date: July 1 2012 (Seal) Attest: Date: 2012 (Seal) Attest: Date: 2012 (Seal) Attest: CITY OF PASADENA Title CITY OF RIVERSIDE B43,1l Deanna Lorson Title Assistant City Managers AMOVED A5 70 FORM OfPM CITY ATTORM CITY OF VERNON By Title Title Phase H Renewable Development Agreement _87_ Date: OGT. 1a , 2012 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (Seal) Attest: By -- BILL D. CA AHAN Title: Assistant Secretary By R AL E. DAVIS Title: resident Phase II Renewable Development Agreement -88- Date: . 2012 (Seel) Attest: Date: 2012 Attest: Date: Akrwjs�- J 2012 (Seal) (Seal) CITY OF PASADENA Title CITY OF RIVERSIDE By Title CITY OF VERNON William Davie Title ox P o-Tam Attest: By • . Title Phase 11 Renewable Development Agreemegt -87- Date:S '.emhw 2012 (Seal) Attest: BY BILL D. C ` ; AHAN Title: Assistant Secretary SOUTHERN CALIFORNIA PUBLIC POWERAUTHORTTY Phew 11 Renewable Development Agreement -88- EXHIBIT EXHIBIT "A" EXHIBIT A - PROJECT ELEMENT NO. I PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PRO.1F.rT F.LRX4RNT NR 1 Participants Proposed Production Capacity Entitlement Share Renewable . Development . Work -Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0" City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 1000/0 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, % 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase'II Renewable Development Agreement Exhibit A-1 EXHIBIT A - PROJECT ELEMENT NO.2 PRODUCTION CAPACITY, ENTITLEMENT -SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE VIDATTi!'vr LET "WILNUrrrn r►r� Is Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share NM* Percentage*. Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of .Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 p 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 1000/0 100% ` EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-2 EXHIBIT A — PROJECT ELEMENT NO.3 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.3 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City. of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 '0 0 City of Burbank 0. 0 0 City of Cerritos 0 - 0 0. City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los. Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY. A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase 11 Renewable Development Agreement Exllibit A-3 EXHIBIT A — PROJECT ELEMENT NO.4 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.4 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0, City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE, REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DJRECTOR . Phase H Renewable Development Agreement Exhibit A-4 EXHIBIT A - PROJECT ELEMENT NO.5 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELFMF.NT NO- 5 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0' 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 .0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR: AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS -PROVIDED IN THIS AGREEMENT, INCLUDING SECTION$ 4, 6, 8, 9,.10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR Phase H Renewable Development Agreement Exhibit A-5 EXHIBIT A — PROJECT ELEMENT NO.6 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.6 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0. 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT. ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXH®ITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SU13JECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-6 EXHIBIT A — PROJECT ELEMENT NO.7 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.7 Participants Proposed Production Capacity - Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SNARES, NEW PR07ECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN,.APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-7 EXHIBIT A — PROJECT ELEMENT NO.8 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.8 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share NW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa. 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District. 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Thd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-8 EXHIBIT A — PROJECT ELEMENT NO.9 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.9 Participants Proposed Production Capacity Entitlement. Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 p 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 .City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vornon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE -PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. _ NEW PROJECT ELEMENTS MAY BE ADDED BY .THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SU13JECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, b, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase I1 Renewable Development Agreement Exhibit A-9 EXHIBIT A — PROJECT ELEMENT NO.10 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.10 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 . 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District' 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0- 0 0 City of Vernon 0 0 0 Total Tbd 100% 100%_7 EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-10 EXHIBIT A —PROJECT ELEMENT NO.11 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO. II Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0. 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 . 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% . EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED; MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND. WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase 1I Renewable Development Agreement Exhibit A-11 EXHIBIT A — PROJECT ELEMENT NO.12 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.12 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share 1VIW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% l 00% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. _ NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-12 EXHIBIT A — PROJECT ELEMENT NO.13 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.13 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of.Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY AMENDED BY THE COORDINATING -COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF, THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-13 EXHIBIT A — PROJECT ELEMENT NO.14 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.14 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share ,r MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 . 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial. Irrigation District 0 0 • 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon ,0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT. TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING' INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR, Phase 11 Renewable Development Agreement Exhibit A-14 EXHIBIT A — PROJECT ELEMENT NO.15 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.15 Participants Proposed . Production Capacity Entitlement Share Renewable Development Work Cost. Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total T6d 1000/0 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY.AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED .IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY T1-IE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-15 EXHIBIT A — PROJECT ELEMENT NO.16 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.16 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim City of Azusa 0 0 0 0 0 0 City of Banning 0 p 0 City of Burbank 0 0 0 City of Cerritos City of Colton 0 0 0 0 0 0 City of Glendale 0 0 0 •Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon Total 0 Tbd 0 10011/0 0 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A 16 EXHIBIT A — PROJECT ELEMENT NO.17 PRODUCTION CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.17 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 0 .0 Imperial irrigation District 0 0 0 City of Los Angeles 0. 0 0 City of Pasadena 0 0 0 City of Riverside 0 .0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED 'PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS' WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE. BOARD OF -DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-17 EXHIBIT A — PROJECT ELEMENT NO. 18 PRODUCTION CAPACITY", ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO,18 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0. City of Azusa 0 0 0 City of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale. 0 '0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0 City of Pasadena. 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 1000/0 100% ` EXHIBITS MAY BE AMENDED BY THE -COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, b, 8, 9, 10, 11, 14 AND.19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE EXECUTIVE DIRECTOR.. Phase II Renewable Development Agreement Exhibit A-18 EXHIBIT A — PROJECT ELEMENT NO.19 PRODUCTION_ CAPACITY, ENTITLEMENT SHARES AND RENEWABLE DEVELOPMENT WORK COST SHARES IN RENEWABLE PROJECT ELEMENT NO.19 Participants Proposed Production Capacity Entitlement Share Renewable Development Work Cost Share MW* Percentage* Percentage* City of Anaheim 0 0 0 City of Azusa 0 0 0 City -of Banning 0 0 0 City of Burbank 0 0 0 City of Cerritos 0 0 0 City of Colton 0 0 0 City of Glendale 0 . 0 0 Imperial Irrigation District 0 0 0 City of Los Angeles 0 0 0. City of Pasadena 0 0 0 City of Riverside 0 0 0 City of Vernon 0 0 0 Total Tbd 100% 100% EXHIBITS MAY BE AMENDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN TO REFLECT REVISED PARTICIPATION, AND REVISED PRODUCTION CAPACITY, ENTITLEMENT SHARES, PERCENTAGES AND COST SHARES. NEW PROJECT ELEMENTS MAY BE ADDED BY THE COORDINATING COMMITTEE OR AS OTHERWISE PROVIDED HEREIN BY ADDING NEW EXHIBITS WITHIN EXHIBITS A HEREIN, AS APPLICABLE. PRODUCTION CAPACITY AND PERCENTAGES ARE SUBJECT TO ADJUSTMENT AS PROVIDED IN THIS AGREEMENT, INCLUDING SECTIONS 4, 6, 8, 9, 10, 11, 14 AND 19 HEREOF. THIS TABLE MAY BE REVISED, MODIFIED OR REPLACED -BY A TABLE OR TABLES WHICH CONDENSE THE FORGOING INFORMATION AND WHICH MAY BE REFERENCED IN, APPENDED TO OR MADE A PART OF THE MINUTES OF THE COORDINATING COMMITTEE OR THE BOARD OF DIRECTORS OR OTHERWISE MAINTAINED BY THE.EXECUTIVE DIRECTOR. Phase II Renewable Development Agreement Exhibit A-19