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HomeMy WebLinkAboutNorthern California Power Agency (NCPA) 2018-04-04SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 TABLE OF CONTENTS Section 1. Definitions. 4 Section 2. Purpose. 9 Section 3. Authorities, Obligations, and Allocation of Project Cost. 9 Section 4. Billing and Payments 14 Section 5. Participation 16 Section 6. Cooperation and Further Assurances. 17 Section 7. Administration of Agreement 18 Section 8. Participant Covenants and Defaults 19 Section 9. Term and Termination. 23 Section 10. Withdrawal of Participants 23 Section 11. Settlement of Disputes and Arbitration. 24 Section 12. Miscellaneous. 24 EXHIBIT A: INITIATING MEMBERS 1 EXHIBIT B: LIST OF PARTICIPANTS AND GES 1 EXHIBIT C: LIST OF POTENTIAL SITES AND ESTIMATED CONTRACTOR COSTS PER PHASE 1 EXHIBIT D: PROJECT DEVELOPMENT AUTHORIZATION FORM i Section 1. Purpose. ii Section 2. Description of Site and Project. ii Section 3. List of Authorizing Participants & Site -Specific GES. ii Section 4. Project Costs for Phase 2C and Phase 2D iii Section 5. Authorities and Obligations. iii i SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 This SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 ("this Agreement") is dated as of A p f + 1 9 , 20 jby and among the Northern California Power Agency, a joint powers agency of the State of California ("NCPA"), and the signatories to this Agreement other than NCPA ("Participants"). NCPA and the Participants are referred to herein individually as a "Party" and collectively as the "Parties". RECITALS A. NCPA has heretofore been duly established as a public agency pursuant to the Joint Exercise of Powers Act of the Government Code of the State of California and, among other things, is authorized to acquire, construct, finance, and operate buildings, works, facilities and improvements for the generation and transmission of electric capacity and energy for resale. B. Each of the Participants is a signatory to the Joint Powers Agreement which created NCPA and therefore is a Member. C. Each of the Participants to this Agreement have executed the Amended and Restated Facilities Agreement which establishes the framework under which Project Agreements are created for the development, design, financing, construction, and operation of specific NCPA Projects. D. NCPA and each of the Participants are interested in developing additional Renewable Energy Supply to meet the future demands of the Participants. 1 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 E. NCPA, working in collaboration with Participants, proposes new solar photovoltaic generation facilities (individual photovoltaic generators referred to herein as "Generating Plants"), located in or near Participants' service territories, with anticipated individual project sizes ranging from less than 1 megawatt ("MW") and up to 16 MW, with a total project capacity of up to approximately 35 MW ("NCPA Solar Project 1"). F. The Parties desire to utilize NCPA as a project manager to oversee study, planning, and operations of the Project, and plan to solicit services of a third party ("Seller") to develop, own, and operate the Project during its initial term of commercial operations. G. This Agreement is intended to cover all pre -construction activities associated with the development of the Project. The Parties desire to divide Phase 2 activities authorized under this Agreement into four (4) sub -phases, designated as Phase 2A (Site Recommendation), 2B (Site Screening), 2C (Preliminary Development and Planning), and 2D (Project Development and Financing). This agreement is intended to authorize NCPA and Participants to initiate, fund, and complete activities of Phases 2A and 2B; and to describe subsequent processes and approvals needed in order to authorize NCPA to initiate Phase 2C and 2D activities. H. Each Participant is authorized by its Constitutive Documents to obtain electric capacity and energy for its present or future requirements, through contracts with NCPA or otherwise. 2 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 I. To enable NCPA to develop additional Renewable Energy Supply and negotiate and enter into the Renewable PPA on behalf of the Participants, pursuant to the terms and conditions of the Amended and Restated Facilities Agreement, NCPA and the Participants wish to enter into this Agreement to provide all means necessary for NCPA to perform its duties under this Agreement, and to enable and obligate the Participants to pay NCPA for all costs its incurs for undertaking the foregoing activities. J. The Parties desire NCPA to commence work on Phase 2A, if necessary, and Phase 2B activities on or shortly after the Effective Date of this Agreement. K. The Parties desire all Generating Plants developed under this Agreement to enter commercial operations within a three-month window of each other and that all Generating Plants reach completion not later than December 31, 2019. L. Contingent upon negotiating mutually acceptable terms and conditions with one or more prospective suppliers, NCPA will present the proposed Renewable PPA to the NCPA Commission for review and approval. Contemporaneously, NCPA will seek final approval from Participants through a Third Phase Agreement for the Project that would govern the rights and obligations of NCPA and Participants related to the sale and purchase of Products. M. Each of the Parties intends to observe the provisions of this Agreement in good faith and shall cooperate with all other Parties in order to achieve the full benefits of joint action. 3 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 N. The Parties desire to equitably allocate costs of NCPA's provision of services under this Agreement among the Participants, with costs of each site and each sub -process established in Section 3.5 of this Agreement. O. The Participants further desire, insofar as possible, to insulate other Members who are not Participants, from risks inherent in the services and transactions undertaken on behalf of the Participants pursuant to this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Definitions. 1.1 Definitions. Whenever used in this Agreement (including the Recitals hereto), the following terms shall have the following respective meanings, provided, capitalized terms used in this Agreement (including the Recitals hereto) that are not defined in Section 1 of this Agreement shall have the meaning indicated in Section 1 of the Power Management and Administrative Services Agreement: 1.1.1 "Agreement" means this Second Phase Agreement for NCPA Solar Project 1 including all Exhibits attached hereto. 1.1.2 "Authorizing Participants" means a subset of Participants that grant written authority to NCPA to commence Phase 2C and Phase 2D activities of this Agreement, using a Project Development Authorization Form found in Exhibit D of this Agreement. 4 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 1.1.3 "Authorized Project Site" means the Generating Plant that NCPA will conduct Phase 2C and Phase 2D activities for, as directed by Authorizing Participants using a Project Development Authorization Form. There may be multiple Authorized Project Sites addressed under this Agreement. 1.1.4 "Capacity Attributes" means any and all current or future defined characteristics consistent with the operational limitations of the Project, certificates, tags, credits, ancillary service attributes, or accounting constructs, howsoever entitled, including resource adequacy benefits, Flexible Capacity Benefits, and any tracking or accounting associated with the foregoing, intended to value any aspect of the capacity of the Project to produce Energy or ancillary services, attributed to or associated with the Project. 1.1.5 "Constitutive Documents" means, with respect to NCPA, the Joint Powers Agreement and any resolutions or bylaws adopted thereunder with respect to the governance of NCPA, and with respect to each Participant, the California Government Code and other statutory provisions applicable to such Participant, any applicable agreements, charters, contracts or other documents concerning the formation, operation or decision making of such Participant, including, if applicable, its City Charter, and any codes, ordinances, bylaws, and resolutions adopted by such Participant's governing body. 1.1.6 "Effective Date" shall have the meaning set forth in Section 9 of this Agreement. 5 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 1.1.7 "Energy" means electric energy expressed in units of kWh or MWh. 1.1.8 "Environmental Attributes" means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the Project, as the case may be, and its displacement of conventional energy generation. Environmental Attributes include: (i) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (ii) any avoided emissions of carbon dioxide (CO2), methane (CH4) and other greenhouse gases that have been determined by the United Nations Intergovernmental Panel on Climate Change to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere; and (iii) the reporting rights to these avoided emissions such as, but not limited to, a Renewable Energy Certificate ("REC"). Environmental Attributes do not include: (i) any Energy, capacity, reliability or other power attributes from the Project, (ii) production tax credits associated with the construction or operation of the Project, and other financial incentives in the form of credits, reductions, or allowances associated with the Project that are applicable to a state or federal income taxation obligation, (iii) fuel -related subsidies or "tipping fees" that may be paid to Seller to accept certain fuels, or local subsidies received by Seller or the owners of the site for the destruction of particular pre-existing pollutants or the promotion 6 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Project for compliance with local, state, or federal operating and/or air quality permits. 1.1.9 "Flexible Capacity" has the meaning set forth in the CAISO Tariff. 1.1.10 "Flexible Capacity Benefits" means the rights and privileges attached to any generating resource that satisfy any entity's Flexible Capacity requirement. 1.1.11 "Generating Plants" shall have the meaning as defined in the Recitals of this Agreement. 1.1.12 "Initiating Members" shall have the meaning as set forth in Section 5.2. 1.1.13 "NCPA" has the meaning set forth in the preamble hereto. 1.1.14 "Participant" has the meaning set forth in the Recitals of this Agreement. 1.1.15 "Power Management and Administrative Services Agreement" means the NCPA Power Management and Administrative Services Agreement, dated as of October 1, 2014 between NCPA and the Members who are signatories to that agreement by which NCPA provides Power Management and Administrative Services. 1.1.16 "Product" means Energy, Capacity Attributes and Environmental Attributes delivered to the Participants pursuant to the Renewable PPA. 7 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 1.1.17 "Project" means the NCPA Solar Project 1 as defined in the Recitals of this Agreement. 1.1.18 "Project Development Authorization Form" is Exhibit D of this Agreement, and one form is required for each site for which NCPA will conduct Phase 2C and Phase 2D activities. 1.1.19 "Party" or "Parties" has the meaning set forth in the preamble hereto; provided that "Third Parties" are entities that are not Party to this Agreement. 1.1.20 "Renewable Energy Supply" refers to power supply resources eligible for use under the Renewable Portfolio Standard Program. 1.1.21 "Renewable PPA" means the Power Purchase Agreement to be negotiated by NCPA and Seller, under which NCPA, on behalf of the Participants, purchases Product from newly constructed solar photovoltaic resources. 1.1.22 "RPS" or "Renewable Portfolio Standard Program" means the State of California Renewable Portfolio Standard Program, as codified at California Public Utilities Code Section 399.11, et seq. 1.1.23 "Seller" has the meaning set forth in the recitals of this Agreement. 1.1.24 "Term" has the meaning set forth in Section 9. 1.2 Rules of Interpretation. As used in this Agreement (including the Recitals hereto), unless in any such case the context requires otherwise: The terms "herein," 8 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 "hereto," "herewith" and "hereof" are references to this Agreement taken as a whole and not to any particular provision; the term "include," "includes" or "including" shall mean "including, for example and without limitation;" and references to a "Section," "subsection," "clause," "Appendix", "Schedule", or "Exhibit" shall mean a Section, subsection, clause, Appendix, Schedule or Exhibit of this Agreement, as the case may be. All references to a given agreement, instrument, tariff or other document, or law, regulation or ordinance shall be a reference to that agreement, instrument, tariff or other document, or law, regulation or ordinance as such now exists and as may be amended from time to time, or its successor. A reference to a "person" includes any individual, partnership, firm, company, corporation, joint venture, trust, association, organization or other entity, in each case whether or not having a separate legal personality and includes its successors and permitted assigns. A reference to a "day" shall mean a Calendar Day unless otherwise specified. The singular shall include the plural and the masculine shall include the feminine, and vice versa. Section 2. Purpose. The purpose of this Agreement is to establish the rights and obligations of the Parties, define Phase 2 activities and sub -phases, and establish a cost allocation methodology for Phase 2 activities. Section 3. Authorities, Obligations, and Allocation of Project Cost. 3.1 Authorities. 9 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 3.1.1 Upon the Effective Date of this Agreement, NCPA is hereby authorized to conduct all work necessary to complete its obligations of Phase 2A and Phase 2B. 3.1.2 NCPA shall conduct all work necessary to complete its obligations under Phase 2C and Phase 2D upon full execution of a Project Development Authorization Form, with a template attached hereto as Exhibit D. Such form shall apply to a single Authorized Project Site and shall become effective when signed by NCPA and all Authorizing Participants of the Authorized Project Site. 3.2 Obligations of NCPA. Upon the Effective Date of this Agreement, NCPA shall commence work pertaining to its duties under Phase 2A and/or Phase 2B, as described further below. Upon the effective date of a Project Development Authorization Form, NCPA shall commence work pertaining to its duties under Phase 2C and Phase 2D, as described further below. NCPA, on behalf of itself and Participants, shall act as lead or responsible agency for the purposes of environmental review of the Project, shall act as project manager for all Phase 2 activities, and is responsible for engaging necessary expert professional services including those of NCPA staff. NCPA shall divide Phase 2 activities into 4 sub -phases, defined below. 3.2.1 Phase 2A (Site Recommendation): NCPA shall assist Participants that have provided multiple potential sites in a single service territory to identify the best site(s) for further evaluation in subsequent Phase 2 sub -processes. 10 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 3.2.2 Phase 2B (Site Screening): NCPA shall complete a feasibility study for each proposed site listed in Exhibit C. For Participants that have identified multiple potential sites in a single service territory, NCPA shall conduct a Phase 2B feasibility study only for those sites identified in Phase 2A for subsequent Phase 2 sub -phases, or as mutually agreed to in writing by NCPA and the Participant(s) of the selected sites. NCPA shall deliver a "Go / No Go" determination for each project site. NCPA shall advance the due diligence investigation required for each proposed site, initiate environmental studies, initiate financial planning, and complete a feasibility assessment for each proposed site. Participants may also opt, at an additional cost, for a Storage Feasibility Study to determine the technical and economic feasibility of incorporating energy storage (e.g. batteries) at their site. 3.2.3 Phase 2C (Preliminary Development & Planning): NCPA shall finalize project design and specifications, prepare conceptual physical and electrical layout diagrams, provide capital, identify site preparation requirements, identify permit requirements, and identify other risks and recommendations. 3.2.4 Phase 2D (Project Development and Project Financing): NCPA shall complete CEQA review; gain site control; complete financing arrangements; and negotiate a Renewable Energy Power Purchase Agreement ("Renewable PPA") to purchase electric capacity, energy, and environmental attributes produced by eligible 11 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 renewable resources for the benefit of the Participants' customers, and to include an option to purchase the project facilities from the third party at a future date. 3.3 Obligations of Participants. 3.3.1 Participants hereby agree to continue to pay or advance to NCPA its allocated share of the costs authorized by Participants in accordance with this Agreement in connection with its participation in the Project. 3.3.2 Upon execution of this Agreement, Participant shall identify the individual who is authorized to initiate Phase 2C and Phase 2D activities using a Project Development Authorization Form. Participants' designees shall be listed in Exhibit A. 3.4 Obligations of the Parties. NCPA and Participants hereby agree to conduct all necessary work, secure all necessary authorities, transmit all necessary forms, and to work collaboratively to complete all Phase 2 activities in a timely manner, with the goal that all facilities developed under this Agreement enter commercial operations within a three-month window of each other and that all Generating Plants reach completion not later than December 31, 2019. 3.5 Project Costs and Cost Allocation. 3.5.1 Project Costs. Estimated costs for each sub -process at each site are listed in Exhibit C, including a 15% contingency. Upon execution of this Agreement, NCPA is authorized to expend funds listed in Exhibit C to conduct Phase 2A and Phase 2B activities for each site for Parties to this Agreement. NCPA is authorized to expend funds 12 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 for Phase 2C and Phase 2D activities, contingent upon receiving a duly authorized written consent from Authorizing Participants under a completed Project Development Authorization Form for each Authorized Project Site, which shall specify the not -to -exceed costs for Phase 2C and Phase 2D. To the extent that Phase 2C and Phase 2D costs differ between Exhibit C of this Agreement and that of Section 4 of the completed Project Development Authorization Form, the latter will control. 3.5.2 NCPA shall assign costs to Participants using a three-step process. i. NCPA shall designate a cost as either "General" or "Site -Specific." ii. All General costs shall be assigned to each site, in proportion to each site's capacity rating relative to the total capacity of the NCPA Solar Project 1. iii. General costs assigned to each site, and all site-specific costs, shall be allocated to each Participant in proportion to Participants' site-specific GES. 3.6 Adjustments to Generation Entitlement Shares. The GES of each Participant shall be revised proportionately if less than the full megawatt capacity of the Project is subscribed. The GES of each Participant shall be revised if and when any Participant withdraws in whole or in part. The full megawatt capacity of the Project shall be revised if and when project specification of individual sites are added, modified, or eliminated for consideration. Notwithstanding the foregoing, Participants are responsible for all obligations and actual costs incurred up to the effective date of changes to participation levels and site specifications. 13 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 3.7 Third Phase Agreement Funding and Participation. The Third Phase Agreement that supersedes and replaces this Agreement, if any, shall provide for reimbursement, retirement or refunding of (1) any preliminary expenditures including financing costs, architectural, engineering, surveying, soil testing, debt issuance costs, and (2) expenditures relating to the acquisition, construction, and land acquisition of the project, of any expenditure of the Participants in the Second Phase of the Project, out of final long-term financing of the Project, or other funding method, including but not limited to cash payments. It is expected that the amount of long term bonds or other reimbursement is not expected to exceed $4,000,000. This provision is also meant to establish with the requirements of Section 1.150-2 of the Treasury Regulations. Section 4. Billing and Payments. 4.1 Participant Payment Obligations. Each Participant agrees to pay to NCPA each month its respective portion of the actual costs associated with activities authorized under this Agreement and the Amended and Restated Facilities Agreement. 4.2 Invoices. NCPA will issue an invoice to each Participant for its share of actual costs associated with negotiation and implementation of the Renewable PPA, and all other costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. Such invoice may be either the All Resources Bill or separate special invoice, as determined by NCPA. At NCPA's discretion, invoices may be issued to Participants using electronic media or physical distribution. 14 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 4.3 Payment of Invoices. All invoices delivered by NCPA (including the All Resources Bill) are due and payable thirty (30) Calendar Days after the date thereof; provided, however, that any amount due on a day other than a Business Day may be paid on the following Business Day. 4.4 Late Payments. Any amount due and not paid by a Participant in accordance with Section 4.3 shall be considered late and bear interest computed on a daily basis until paid at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT&SA then in effect, plus two percent (2%) or (ii) the maximum rate permitted by law. 4.5 Billing Disputes. A Participant may dispute the accuracy of any invoice issued by NCPA under this Agreement by submitting a written dispute to NCPA, within thirty (30) Calendar Days of the date of such invoice; nonetheless the Participant shall pay the full amount billed when due. If a Participant does not timely question or dispute the accuracy of any invoice in writing, the invoice shall be deemed to be correct. Upon review of a submitted dispute, if an invoice is determined by NCPA to be incorrect, NCPA shall issue a corrected invoice and refund any amounts that may be due to the Participant. If NCPA and the Participant fail to agree on the accuracy of an invoice within thirty (30) Calendar Days after the Participant has disputed it, the General Manager shall promptly submit the dispute to the Commission for resolution. If the Commission and the Participant fail to agree on the accuracy of a disputed invoice within sixty (60) Calendar 15 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 Days of its submission to the Commission, the dispute may then be resolved under the mediation and arbitration procedures set forth in Section 11 of this Agreement. Provided, however, that prior to resorting to either mediation or arbitration proceedings, the full amount of the disputed invoice must be paid. 4.6 Billing/Settlement Data and Examination of Books and Records. 4.6.1 Settlement Data. NCPA shall make billing and settlement data available to the Participants in the All Resources Bill, or other invoice, or upon request. NCPA may also, at its sole discretion, make billing and settlement support information available to Participants using electronic media (e.g. electronic data portal). Procedures and formats for the provision of such electronic data submission may be established by the Commission from time to time. Without limiting the generality of the foregoing, NCPA may, in its reasonable discretion, require the Participants to execute a non -disclosure agreement prior to providing access to the NCPA electronic data portal. 4.6.2 Examination of Books and Records. Any Participant to this Agreement shall have the right to examine the books and records created and maintained by NCPA pursuant to this Agreement at any reasonable, mutually agreed upon time. Section 5. Participation. 5.1 Eligibility. All Members who are signatory to the Amended and Restated Facilities Agreement are eligible to participate in this Agreement by delivering a duly 16 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 executed copy of this Agreement to NCPA, and subject to availability of the Renewable Energy Supply as described in Section 5.2. 5.2 Priority. This Agreement has been developed in response to certain Members' request for NCPA to acquire Renewable Energy Supply on their behalf (hereinafter referred to as the "Initiating Members"). The Initiating Members are listed in Exhibit A. To the extent the amount of Renewable Energy Supply that is made available by Seller is not sufficient to satisfy all Members' requests for a desired amount of Renewable Energy Supply; first priority will be given to the Initiating Members, and secondary priority will be given to all other Members who become a Participant. If after meeting the requests of the Initiating Members, any remaining available Renewable Energy Supply will be allocated to all other Participants based on a first-come first -serve basis, until the total amount of available Renewable Energy Supply is exhausted, or until all Participants' requests have been satisfied, whichever comes first. 5.3 Final Participation Percentages. Upon the Effective Date of this Agreement, NCPA shall include each Participant's Final Project Participation Percentage in Exhibit B. NCPA shall update Exhibit B to reflect changes in Participants and/or GES, in writing, and shall provide written notice to Participants of such changes. Section 6. Cooperation and Further Assurances. Each of the Parties agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by any 17 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 other Party which are consistent with the provisions of this Agreement and which do not involve the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. The Parties agree to cooperate and act in good faith in connection with obtaining any credit support required in order to satisfy the requirements of this Agreement. Section 7. Administration of Agreement 7.1 Commission. The Commission is responsible for the administration of this Agreement. Each Participant shall be represented by its Commissioner or their designated alternate Commissioner ("Alternate") pursuant to the Joint Powers Agreement. Each Commissioner shall have authority to act for the Participant represented with respect to matters pertaining to this Agreement. 7.2 Forum. Whenever any action anticipated by this Agreement is required to be jointly taken by the Participants, such action shall be taken at regular or special meetings of the NCPA Commission. 7.3 Quorum. 7.3.1 General Administration. For purposes of acting upon matters that relate to general administration of this Agreement, a quorum of the Commission shall consist of those Commissioners, or their designated Alternates, representing a numerical majority of the Participants. 7.3.2 Relating to a Project Site. For purposes of acting upon matters that relate to a specific Project site, a quorum of the Participants shall consist of those Commissioners, 18 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 or their designated Alternate, representing a GES majority of the Participants with an entitlement interest in such Project site. 7.4 Voting. 7.4.1 General Administration. For acting upon matters that relate to the general administration of this Agreement, each Participant shall have the right to cast one (1) vote. Actions of the Commission shall be effective only upon a majority vote of the Participants. 7.4.2 Relating to a Project Site. For acting upon matters that relate to a specific Project site, Participant shall have the right to cast one (1) vote. Actions of the Commission shall be effective only upon a majority vote of the Participants with an entitlement interest in such Project site. Section 8. Participant Covenants and Defaults 8.1 Each Participant covenants and agrees: (i) to make payments to NCPA, from its Electric System Revenues, of its obligations under this Agreement as an operating expense of its Electric System; (ii) to fix the rates and charges for services provided by its Electric System, so that it will at all times have sufficient Revenues to meet the obligations of this Agreement, including the payment obligations; (iii) to make all such payments due NCPA under this Agreement whether or not there is an interruption in, interference with, or reduction or suspension of services provided under this Agreement, such payments not being subject to any reduction, whether by offset or otherwise, and regardless of whether 19 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 any dispute exists; and (iv) to operate its Electric System, and the business in connection therewith, in accordance with Good Utility Practices. 8.2 Events of Default. An Event of Default under this Agreement shall exist upon the occurrence of any one or more of the following by a Participant (the "Defaulting Participant"): (i) the failure of any Participant to make any payment in full to NCPA when due; (ii) the failure of a Participant to perform any covenant or obligation of this Agreement where such failure is not cured within thirty (30) Calendar Days following receipt of a notice from NCPA demanding cure. Provided, that this subsection shall not apply to any failure to make payments specified by subsection 8.2 (i)); (iii) if any representation or warranty of a Participant material to the services provided hereunder shall prove to have been incorrect in any material respect when made and the Participant does not cure the facts underlying such incorrect representation or warranty so that the representation or warranty becomes true and correct within thirty (30) Calendar Days of the date of receipt of notice from NCPA demanding cure; or (iv) if a Participant is in default or in breach of any of its covenants or obligations under any other agreement with NCPA and such default or breach is not cured within the time periods specified in such agreement. 20 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 8.3 Uncontrollable Forces. A Party shall not be considered to be in default in respect of any obligation hereunder if prevented from fulfilling such obligation by reason of Uncontrollable Forces. Provided, that in order to be relieved of an Event of Default due to Uncontrollable Forces, a Party affected by an Uncontrollable Force shall: (i) first provide oral notice to the General Manager using telephone communication within two (2) Business Days of the onset of the Uncontrollable Force, and provide subsequent written notice to the General Manager and all other Parties within ten (10) Business Days of the onset of the Uncontrollable Force, describing its nature and extent, the obligations which the Party is unable to fulfill, the anticipated duration of the Uncontrollable Force, and the actions which the Party will undertake so as to remove such disability and be able to fulfill its obligations hereunder; and (ii) use due diligence to place itself in a position to fulfill its obligations hereunder and if unable to fulfill any obligation by reason of an Uncontrollable Force such Party shall exercise due diligence to remove such disability with reasonable dispatch. Provided, that nothing in this subsection shall require a Party to settle or compromise a labor dispute. 8.4 Cure of an Event of Default. An Event of Default shall be deemed cured only if such default shall be remedied or cured within the time periods specified in Section 8.2 above, as may be applicable, provided, however, upon request of the Defaulting 21 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 Participant the Commission may waive the default at its sole discretion, where such waiver shall not be unreasonably withheld. 8.5 Remedies in the Event of Uncured Default. Upon the occurrence of an Event of Default which is not cured within the time limits specified in Section 8.2, without limiting other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action NCPA may have against the Defaulting Participant, NCPA may take any or all of the following actions: (i) suspend the provision of services under this Agreement to such Defaulting Participant; or (ii) demand that the Defaulting Participant provide further assurances to guarantee the correction of the default, including the collection of a surcharge or increase in electric rates, or such other actions as may be necessary to produce necessary Revenues to correct the default. 8.6 Effect of Suspension. 8.6.1 Generally. The suspension of this Agreement will not terminate, waive, or otherwise discharge any ongoing or undischarged liabilities, credits or obligations arising from this Agreement until such liabilities, credits or obligations are satisfied in full. 22 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 8.6.2 Suspension. If performance of all or any portion of this Agreement is suspended by NCPA with respect to a Participant in accordance with subsection 8.5(i), such Participant shall pay any and all costs incurred by NCPA as a result of such suspension including reasonable attorney fees, the fees and expenses of other experts, including auditors and accountants, or other reasonable and necessary costs associated with such suspension and any portion of the Project Costs, scheduling and dispatch costs, and Administrative Services Costs that were not recovered from such Participant as a result of such suspension. Section 9. Term and Termination. This Agreement shall become effective when it has been duly executed by NCPA and at least one Participant (the "Effective Date"). The date on which NCPA makes this Agreement effective shall be determined by NCPA, at its sole discretion. NCPA shall deliver a written notice to all signatories to this Agreement and to all Members that are signatory to the Amended and Restated Facilities Agreement, stating the Effective Date of this Agreement. This Agreement shall commence on the Effective Date and shall continue until the Agreement terminates, which shall occur when either: 9.1 All activities pursuant to this Agreement are terminated by NCPA in its discretion; or 9.2 Upon the effective date of a Third Phase Agreement with one or more Participants relating to a Renewable Energy PPA. Section 10. Withdrawal of Participants. 23 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 If at any time following the execution of this Agreement, NCPA issues a written notice of a change to Exhibit B or an increase in the financial commitment beyond that contemplated in Exhibit C, Participants may partially withdraw (i.e., from participating in the increase), or may withdraw wholly from the Project. Any withdrawal shall be subject to honoring any commitments made to them or on their behalf pursuant to authorization of this Agreement. To withdraw, such Participant shall give NCPA written notice of such withdrawal, in part or in whole, within thirty (30) days of the receipt of the notice by them of the increase. Notwithstanding the above, a Participant may withdraw following the completion of any sub -process. In this event the Participants may vote to consider modifications to this Agreement and/or the applicable executed Project Development Authorization Form for affected site(s). Section 11. Settlement of Disputes and Arbitration. The Parties agree to make best efforts to settle all disputes among themselves connected with this Agreement as a matter of normal business under this Agreement. The procedures set forth in Section 10 of the Power Management and Administrative Services Agreement shall apply to all disputes that cannot be settled by the Participants themselves; provided, that the provisions of Section 4.5 of this Agreement shall first apply to all disputes involving invoices prepared by NCPA. Section 12. Miscellaneous. 12.1 Indemnification and Hold Harmless. Subject to the provisions of Section 12.3, each Participant agrees to indemnify, defend and hold harmless NCPA and its Members, including their respective governing boards, officials, officers, agents, and employees, from and against any and all claims, suits, losses, costs, damages, expenses and liability of any kind or nature, including reasonable attorneys' fees and the costs of 24 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 litigation, including experts, to the extent caused by any acts, omissions, breach of contract, negligence (active or passive), gross negligence, recklessness, or willful misconduct of that Participant, its governing officials, officers, employees, subcontractors or agents, to the maximum extent permitted by law. 12.2 Several Liabilities. No Participant shall, in the first instance, be liable under this Agreement for the obligations of any other Participant or for the obligations of NCPA incurred on behalf of other Participants. Each Participant shall be solely responsible and liable for performance of its obligations under this Agreement, except as otherwise provided for herein. The obligation of each Participant under this Agreement is, in the first instance, a several obligation and not a joint obligation with those of the other Participants. Notwithstanding the foregoing, the Participants acknowledge that any debts or obligations incurred by NCPA under this Agreement on behalf of any of them shall be borne solely by such Participants, and not by non -Participant Members of NCPA, pursuant to Article IV, Section 3(b) of the Joint Powers Agreement. 12.3 No Consequential Damages. FOR ANY BREACH OF ANY PROVISION OF THIS AGREEMENT FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER DAMAGES OR REMEDIES ARE HEREBY WAIVED. IF NO REMEDY OR MEASURE OF 25 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 DAMAGE IS EXPRESSLY PROVIDED, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED TO ACTUAL DAMAGES ONLY AND ALL OTHER DAMAGES AND REMEDIES ARE HEREBY WAIVED. IN NO EVENT SHALL NCPA OR ANY PARTICIPANT OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, REPRESENTATIVES, DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, SPECIAL, EXEMPLARY, INDIRECT, PUNITIVE OR INCIDENTAL LOSSES OR DAMAGES, INCLUDING LOSS OF USE, LOSS OF GOODWILL, LOST REVENUES, LOSS OF PROFIT OR LOSS OF CONTRACTS EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NCPA AND EACH PARTICIPANT EACH HEREBY WAIVES SUCH CLAIMS AND RELEASES EACH OTHER AND EACH OF SUCH PERSONS FROM ANY SUCH LIABILITY. The Parties acknowledge that California Civil Code section 1542 provides that: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." The Parties waive the provisions of section 1542, or other similar provisions of law, and intend that the waiver and release provided by this Section of this Agreement shall be fully enforceable despite its reference to future or unknown claims. 26 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 12.4 Waiver. No waiver of the performance by a Party of any obligation under this Agreement with respect to any default or any other matter arising in connection with this Agreement shall be effective unless given by the Commission. Any such waiver by the Commission in any particular instance shall not be deemed a waiver with respect to any subsequent performance, default or matter. 12.5 Amendments. Except where this Agreement specifically provides otherwise, this Agreement may be amended only by written instrument executed by the Parties with the same formality as this Agreement. 12.6 Assignment of Agreement. 12.6.1 Binding Upon Successors. This Agreement shall inure to the benefit of and shall be binding upon the respective successors and assignees of the Parties to this Agreement. 12.6.2 No Assignment. Neither this Agreement, nor any interest herein, shall be transferred or assigned by a Party hereto except with the consent in writing of the other Parties hereto, which such consent shall not be unreasonably withheld, provided that such transfer or assignment shall be only to another NCPA Member. 12.7 Severability. In the event that any of the terms, covenants or conditions of this Agreement or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, all other terms, covenants or conditions of this Agreement and their application shall not be affected 27 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 thereby, but shall remain in force and effect unless the court holds that such provisions are not severable from all other provisions of this Agreement. 12.8 Governing Law. This Agreement shall be interpreted, governed by, and construed under the laws of the State of California. 12.9 Headings. All indices, titles, subject headings, section titles and similar items are provided for the purpose of convenience and are not intended to be inclusive, definitive, or affect the meaning of the contents of this Agreement or the scope thereof. 12.10 Notices. Any notice, demand or request required or authorized by this Agreement to be given to any Party shall be in writing, and shall either be personally delivered to a Participant's Commissioner or Alternate, and to the General Manager, or shall be transmitted to the Participant and the General Manager at the addresses shown on the signature pages hereof. The designation of such addresses may be changed at any time by written notice given to the General Manager who shall thereupon give written notice of such change to each Participant. All such notices shall be deemed delivered when personally delivered, two (2) Business Days after deposit in the United States mail first class postage prepaid, or on the first Business Day following delivery through electronic communication. 12.11 Warranty of Authority. Each Party represents and warrants that it has been duly authorized by all requisite approval and action to execute and deliver this Agreement and that this Agreement is a binding, legal, and valid agreement enforceable in accordance 28 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 with its terms. Upon execution of this Agreement, each Participant shall deliver to NCPA a resolution of the governing body of such Participant evidencing approval of and authority to enter into this Agreement. 12.12 Counterparts. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument and as if all the signatories to all of the counterparts had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages. 12.13 Venue. In the event that a Party brings any action under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California. 12.14 Attorneys' Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, each Party shall bear its own fees and costs, including attorneys' fees, associated with the action. 12.15 Counsel Representation. Pursuant to the provisions of California Civil Code Section 1717 (a), each of the Parties were represented by counsel in the negotiation and 29 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 execution of this Agreement and no one Party is the author of this Agreement or any of its subparts. Those terms of this Agreement which dictate the responsibility for bearing any attomey's fees incurred in arbitration, litigation or settlement in a manner inconsistent with the provisions of Section 12.1 were intentionally so drafted by the Parties, and any ambiguities in this Agreement shall not be interpreted for or against a Party by reason of that Party being the author of the provision. 12.16 No Third Party Beneficiaries. Nothing contained in this Agreement is intended by the Parties, nor shall any provision of this Agreement be deemed or construed by the Parties, by any third person or any Third Parties, to be for the benefit of any Third Party, nor shall any Third Party have any right to enforce any provision of this Agreement or be entitled to damages for any breach by the Parties of any of the provisions of this Agreement. 30 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 IN WITNESS WHEREOF, NCPA and each Participant have, by the signature of its duly authorized representative shown below, executed and delivered a counterpart of this Agreement. NORTHERN CALIFORNIA POWER AGENCY 651 Commerce Drive Roseville, CA 95678 By: Title: Date: Rand S. Ho% and General ager -4-7IS Approved as to form: • [ 91 / (//‘://Y‘. By: // Jane Ludkhardt Title: ///a1 Counsel Date: ener Attestation (if applicable) By: Title: Date: L\�a�\�i CITY OF ALAMEDA 2000 Grand Street P.O. Box H Alameda, CA 94501 By: Title: Date: e'aciTir Approved as to form: By: Title: Date: A ssirgn� zr r/i Attestation (if applicable) By: Title: Date: j_j 6-6 lot itAt\I 31 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF HEALDSBURG 401 Grove Street Healdsburg, CA 95448 141 vr CITY OF LODI 221 W. Pine Street Lodi, CA 95240 By: David Mick 'a 1i w By: Title: City Manager Title: Date: May 1, 2018 Date: Approved as t form: Approved as to form: By:Ley, By: Title: rp Title: Date: Ay,30/ /r Date: Attestation if applicable) 11 Attestation (if applicable) By: Maria Curie! By: Title: City Clerk Title: Date: May 1, 2018 Date: 32 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF HEALDSBURG 401 Grove Street Healdsburg, CA 95448 CITY OF LODI 221 W. Pine Street Lodi, CA 95240 By: By: Title: Title: Date: Date: y D.7. 18 Approved as to form: Approved as to form: By: By: ', t,cSanicc .:ccL;cl... Title: Title: Ci., Pd-h'cr Date: Date: Attestation (if applicable) Attestation (if applicable) 0,44 % 1 I V AA. By: By: 1 ,' m- F -Orono Title: Title: G1, 04111--- Date: Date: apt RV- 32 ft 32 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF LOMPOC 100 Civic Center Plaza Lompoc, CA 93436 CITY OF OAKLAND, acting by and through its Board of Port Commissioners 530 Water Street Oakland, CA 94607 By: By: Title: Title: Date: Date: Approved as to form: Approved as to form: By: By: Title: Title: Date: Date: Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: 33 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF PALO ALTO 250 Hamilton Avenue Palo Alto, CA 94301 PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE 73233 H ighwav 70 Portola, CA 96122 By: By: Title: Title: Date: Date: Approved as to form: Nc4K a� - `� / Approved as to form: By: By: Title: Title: Date: Date: Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: 34 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF PALO ALTO 250 Hamilton Avenue Palo Alto, CA 94301 PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE 73233 Highway 70 Portola, CA 96122 By: By: Title: Title: Date: Date: 6evI . /14 wf-,✓ S ,7—1 Approved as to form: Approved as to form: By: By: Title: Title: Date: Date: Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: 34 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF REDDING 777 Cypress Avenue Redding, CA 96001 CITY OF SANTA CLARA 1500 Warburton Avenue Santa Clara, CA 95050 By: By: Title: Title: Date: Date: Approved as to form: Approved as to form: By: By: Title: Title: Date: Date: Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: 35 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 CITY OF SHASTA LAKE 1650 Stanton Drive Shasta Lake, CA 96019 C Alo. Isla -lei CITY OF UKIAH 300 Seminary Avenue Ukiah, CA 95482 By: By: Title: Title: Date: Date: age a acomo City anager c,_. Do *tom Approved as to form: Approved as to form: By: By: Title: Title: Date: Date: Rapport City Attorney Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: 36 SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 EXHIBIT A: INITIATING MEMBERS The following is a list of the Initiating Members who submitted a request for NCPA to purchase Renewable Energy Supply on their behalf. Their respective Initial Project Participation Percentage share of the Project* are: Participant MW (estimated) GES (estimated) Authorized Representative to Initiate Phases 2C and 2D Alameda 2.4 6.45% Healdsburg 1.8 4.84% Lodi 5.0 13.44% Lompoc 5.6 15.05% Palo Alto 0.7 1.88% Plumas-Sierra 4.7 12.63% Port of Oakland 2.0 5.38% Redding 10.0 26.88% Shasta Lake 3.0 8.06% Ukiah 2.0 5.38% TOTAL 37 100.00% *Example only. Subject to change. A -i SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 EXHIBIT B: LIST OF PARTICIPANTS AND GES Effective Date: The following is a list of the Participants who are signatory to this Agreement, and their respective Generation Entitlement Share for each Generating Plant contemplated under this Agreement. Participant GES for Each Site* Site Location Site Description Est. Size (MW) ALA HEA LOD LOM PAL PLU PORT REU SVP SHL UKI Alameda Doolittle 2.4 100% Healdsburg WWT 1.8 100% Lodi Century Pixley Basin Pixley West Locust Gara a Structure Awani 1.1 4.9 1.4 0.5 0.5 1.3 100% Lompoc Parcel 11003 5.6 100% Palo Alto Golf Course 0.7 100 0/0 Plumas-Sierra Beckwourth Marble 4.6 3.9 100% Port of Oakland Redding Airport 2.0 100% East Landfill Stillwater 13.9 10.3 3.1 100% Ukiah WWT Carport? 2.0 I TBD 100% *As of 1/31/2018 and subject to change Assumes each participant participates 100% of its own generation. B -i SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 EXHIBIT C: LIST OF POTENTIAL SITES AND ESTIMATED CONTRACTOR COSTS PER PHASE Participant Site Description Est. Size (MW) Phase 2A Phase 2B Phase 2C Phase 2D Alameda Doolittle (Capped Landfill) 2.4 NA $34,500 $63,250 $258,750 Healdsburg WWT (Floating) 1.8 NA $34,500 $63,250 $258,750 Lodi Century 1.1 S25,760 $33,350 $69,000 $270,250 Pixley Basin 4.9 Pixley West 1.4 Locust 0.5 Garage Structure (Carport) 0.5 Awani (Capped Landfill) 1.3 Lompoc Parcel 11003 5.6 NA $27,600 $69,000 $253,000 Palo Alto Golf Course (Carport) 0.7 NA NA $63,250 $253,000 Plumas-Sierra Beckwourth 4.6 $21,275 $27,600 $69,000 $253,000 Marble 3.9 Port of Oakland Airport (Carport) 2 NA $27,600 $69,000 $258,750 Redding East 13.9 $16,790 $27,600 $80,500 $270,250 Landfill (Capped Landfill) 10.3 Stillwater 3.1 Ukiah WWT (Floating) or Carport TBD 2.0 $15,000 $28,000 $69,000 $270,250 Optional Storage Feasibility Study -- -- +$15,000/site -- Notes: 1) Figures above are based on high -side estimates as if each site were to be evaluated as a standalone project, plus 15% contingency. GES costs are not included. 2) Phase 2A costs only apply when multiple potential sites are identified for a single service territory. 3) Phase 2B, Phase 2C, and Phase 2D costs apply per site. 4) Phase 2D costs include California Environmental Quality Act (CEQA) expenses ($25,000 est. for full study) and expenses to attain site control ($80,000 est.). These costs may vary by site and not be entirely applicable for each site. 5) Storage Feasibility Study - Optional study to determine technical and financial feasibility of incorporating energy storage (e.g. batteries) at the site. Cost is per site. C -i SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 EXHIBIT D: PROJECT DEVELOPMENT AUTHORIZATION FORM This Project Development Authorization Form is made as of , 20 (the "Phase 2C/2D Effective Date"), by and between Northern California Power Agency ("NCPA") and the certain signatories to the SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 that are directing NCPA to continue work into Phase 2 activities into pre -construction, project development, and financing ("Authorizing Participants"). NCPA and the Authorizing Participants of this Project Development Authorization Form are referred to herein as "Parties". RECITALS A. NCPA and the Authorizing Participants are party to the Second Phase Agreement For NCPA Solar Project 1, which has an effective date of ("Second Phase Agreement"). B. Pursuant to the Second Phase Agreement, NCPA is developing Renewable Energy Supply on behalf of Participants, which consists of environmental analysis, pre -construction studies, design, and contract negotiation for several potential solar photovoltaic generation facilities located in or near Participants' electric service territories. C. The Second Phase Agreement, as executed, authorizes NCPA to carry out certain feasibility assessments and screening analyses (i.e. Phase 2A and Phase 2B activities) to help inform Participants if proposed sites and projects are viable and/or economical to pursue, and Participants agree to provide funding to cover all related costs for activities conducted on their behalf. D. The Second Phase Agreement requires supplemental action and authorities from Participants prior to NCPA conducting any Phase 2C or Phase 2D activites. E. This Project Development Authorization Form is intended to serve as the requisite supplemental action and authority from Authorizing Participants to direct NCPA to conduct D -i SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 Phase 2C and Phase 2D activities into pre-conscrution, project development, and financing on behalf of the Authorizing Participants; and is intended to serve as the Authorizing Participant(s) consent to provide funding to cover all related Phase 2C and Phase 2D costs for activities conducted ontheir behalf. NOW THEREFORE, the Parties agree as follows: Section 1. Purpose. The purpose of this Project Development Authorization Form is for the Authorizing Participants signatory hereto to authorize NCPA to conduct Phase 2C and Phase 2D activities, as defined in the Second Phase Agreement, on their behalf; and for Authorizing Participant to agree to provide funding for all such activities. Section 2. Description of Site and Project. This Project Development Authorization Form pertains to the project at the location described below ("Authorized Project Site"). Location (City): Facility Description: Approximate Acreage: Capacity (MW AC): Section 3. List of Authorizing Participants & Site -Specific GES. The following Authorizing Participants encompass all Members interested in further development of the Authorized Project Site and lists each Authorizing Participant's GES of the Authorized Project Site. Authorizing Participant GES (%) GES (MW AC) D -ii SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 Section 4. Project Costs for Phase 2C and Phase 2D The not -to -exceed cost for Phase 2C and Phase 2D activities for the Authorized Project Site is $,.00 (text description of NTE cost). Section 5. Authorities and Obligations. 5.1 Authorization and Funding. The Authorizing Participants hereby authorize NCPA to conduct Phase 2C and Phase 2D activities, as defined in the Second Phase Agreement, for the Authorize Project Site identified above. The Authorizing Participants hereby agree to provide all necessary funds to NCPA to conduct these activities, with costs not to exceed the figures listed in Exhibit C of the Second Phase Agreement for the Authorized Project. 5.2 Obligations of NCPA. Upon full execution of this Project Development Authorization Form, NCPA shall commence work on all Phase 2C and Phase 2D activities, as defined in the Second Phase Agreement, for the Authorized Project Site on behalf of the Authorizing Participants. 5.3 Obligations of Authorizing Participants. Authorizing Participants hereby agree to continue to pay or advance to NCPA its allocated share of the costs in accordance with the Second Phase Agreement and this Project Development Authorization Form in connection with its participation in the Authorized Project. IN WITNESS WHEREOF, NCPA and each Participant have, by the signature of its duly authorized representative shown below, executed and delivered a counterpart of this Agreement. D -iii SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1 NORTHERN CALIFORNIA AUTHORIZING PARTICIPANT POWER AGENCY ADDRESS 651 Commerce Drive CITY, STATE ZIP Roseville, CA 95678 By: Randy S. Howard By: Title: General Manager Title: Date: Date: Approved as to form: Approved as to form: By: Jane Luckhardt By: Title: General Counsel Title: Date: Date: Attestation (if applicable) Attestation (if applicable) By: By: Title: Title: Date: Date: D -iv SECOND PHASE AGREEMENT FOR NCPA SOLAR PROJECT 1