1. Clean Cities – Coachella Valley Region July 10, 2013 AB 1318 Mitigation Fees Fund Program Update on Projects

2. Background  CA Assembly Bill 1318 (V.M. Perez)  Facilitated transfer of emission offsets from the SCAQMD to CPV Sentinel power plant project  Approximately $53 million transferred to the SCAQMD  Placed in a mitigation fees fund approved by the Board June 2011  Designated to fund emissions reduction projects

3. Emissions Mitigation Funds Use  AB 1318 specifies use of mitigation fees for emission reduction purposes  At least 30% “within close proximity” to the power plant project, which the SCAQMD Governing Board has determined to be the radial distance of 6 miles  At least 30% in EJ Areas under SCAQMD jurisdiction  Remaining 40% can be used anywhere in the SCAQMD jurisdiction

4. RFP Development  January 2012  In conjunction with development of an RFP for expending the funds, staff held two public consultation meetings in the Coachella Valley  February 2012  Determined that all funds are to be used in the Coachella Valley, that is the area that is both within SCAQMD jurisdiction and the Salton Sea Air Basin  Defined “close proximity” and EJ areas  Authorized the release of the RFP (issued February 9, 2012)  Proposal submittal period extended from normal 60 days to 120 days (deadline - no later than 5:00 p.m. on June 8, 2012)

5. Environmental Justice Area Definition per AB 1318  Refers to SCAQMD Rule 1309.1 – Priority Reserve (adopted August 2007)  Areas where at least 10% of the population is below the poverty level (2000 Census); AND  Disproportionate impacts from fine particulate (PM10) exposure (> 46 µg/m 3 )

6. Project Site Close Proximity = Six Mile Radial Distance

7. Available Funding  Available funding for project is based on the Mitigation Fees Fund Deposit of $53,318,358.30, less 5% for administration  Therefore, minimum 30% funding for close proximity and EJ Areas = $15,195,732.12  Interest earned from the fund will be used to fund additional projects under the program as approved

8. RFP Process  Year long process  Extensive Public Outreach  2 Bidders Workshops (one in Palm Desert)  Noticing in inland newspapers in both English and Spanish print versions  Additional Newspaper Noticing newspapers specific to the desert communities (1/4 advertisements in English & Spanish)  4 two-day “office hour” sessions held throughout valley region  7 technical staff available for ~50 hours each  Special web page created with video (English & Spanish), FAQ, checklist, etc.

9. Summary of Mitigation Projects Submitted  75 proposals received containing >$375M in projects submitted, including:  ~$173M in close proximity (6-miles) to the power plant  ~$190M in EJ areas  Submittals generally fell into the following categories:  Solar: ~$132M  Alternative fueled vehicles and infrastructure: ~$41M  Air Filtration: ~$22.5M  Paving: ~$27M  Gardening: ~$12.5M  Weatherizing buildings and homes: ~$20.5M  Other: ~$121M (e.g., congestion relief & alternative energy)

10. Panel Recommendations Regarding Evaluations  Award 5 additional points to local governments and schools, as was done for local businesses doing at least 90% business in the SCAQMD jurisdiction  Set a minimum technical score of 70 points for funding consideration  Several proposals have multiple projects or layers therefore partial funding of some was awarded

11. Governing Board Process  Held two meetings of the Administrative Committee  October 18, 2012 in Coachella Valley  December 14, 2012 in Diamond Bar  Combined ~9 hours of testimony by more than 100 individuals  Resulted in numerous action items resulting in modified staff recommendations resulted in >$11 million being reallocated and funding 9 additional projects  Greater consideration for non-profits  Remove grid scale projects from consideration  Forwarded for full Board consideration on January 4, 2013

12. January 4, 2013 Governing Board Actions  Approved updated funding proposal as directed by Administrative Committee  If contracts are not executed, move to the back-up list, ensuring AB 1318 minimums are met  Utilize interest earned to fund projects, consistent with AB 1318 Requirements  Update Administrative Committee semi-annually, or more frequently if needed  Three-year cumulative report to the Governing Board

13. Funding Awards vs. AB 1318 Minimum Funding Requirements CategoryClose ProximityEJOtherTotal Minimum Funding$15,195,732.12 ≤$20,260,976.15$50,652,440.39 Recommended Funding$15,311,336.00$15,196,169.00$20,144,935.00$50,652,440.00 Minimum Funding Met?Yes --- Note: Does not include interest accrued to date.

14. Funding Summary Project TypeNo. of Projects $(M)Percent of Total Solar712.123.7 Paving and Dust Control37.113.9 Alternative Fuel Infrastructure & Vehicles64.38.5 School Bus/Infrastructure42.44.6 Air Filtration/Weatherization44.79.2 Transportation (parkway & synchronization)220.440.1

15. AB 1318 Emission Mitigation Projects Approved for Funding Project #Project ProponentProject Type Requested Funding Amount ($) Recommended Award Status w/in 6-Mile Vacinity ($)w/in EJ Areas ($) Award in Other Areas ($) 69Border Valley TradingLNG/CNG stations$900,000.00 Contract Language Being Finalized 15Renova EnergySolar$1,572,917.00 $314,584.00Contract Language Being Finalized 33Riverside CountyPaving & dust control$5,089,011.00 $4,097,114.00 Awaiting Contractor Signature 22City of Desert Hot SpringsCNG vehicles & station upgrade$1,024,641.00$594,290.00 $430,351.00Contract Language Being Finalized 63c-1Desert Sands USDCNG/Propane Buses (5)$3,535,500.00 $650,000.00 Contract Executed 41a-2Coachella Valley USDCNG Buses (7)$12,994,700.00 $1,235,500.00 Contract Executed 41cCoachella Valley USD Air filtration at schools Mecca and Saul Martinez elementary schools$337,200.00 Contract Language Being Finalized 41bCoachella Valley USDCNG Fueling Facility$1,618,400.00 $300,000.00 Contract Language Being Finalized 35Sun PowerSolar at College of the Desert$2,000,000.00 Awaiting Contractor Signature 57cCity of CoachellaCNG station/solar carport$2,120,000.00 $1,895,000.00 Contract Language Being Finalized 63c-2Desert Sands USD CNG station upgrade and school bus replacements (only CNG station upgrade recommended)$3,889,250.00 $174,250.00 Contract Language Being Finalized 24aCity of Palm Springs Solar Visitor Center, train station, fire station and Unity Center buildings$1,175,225.00 Contract Language Being Finalized 14CVAGParkway 1e11 (main trunk)$38,000,000.00 $17,400,000.00Contract Language Being Finalized 61aIQ AirAir Filtration for schools in EJ area$13,698,732.00 $921,235.00 Contract Language Being Finalized 5Angel ViewCNG vehicles (5)$270,817.50 Awaiting Contractor Signature 20 Torres Martinez Desert Cahuilla IndiansPaving & dust control$999,989.00 Awaiting Contractor Signature 74Sun WizeSolar at Boys and Girls Clubs$1,232,696.00 $785,881.00 Contract Language Being Finalized 57aCity of CoachellaSignal synchronization$3,000,000.00 Approved by CC, Awaiting Signature 47Palm Springs USDSolar project at high school$13,168,818.00$3,000,000.00 Partial Funding, Revising Designed 38Quality InteriorsWeatherization$7,950,000.00$1,554,164.00$800,000.00 Contract Language Being Finalized 18Summit InsulationWeatherization$4,196,151.00$1,054,164.00 Contract Language Being Finalized 46City of Desert Hot SpringsDust control$2,000,000.00 Awaiting Contractor Signature 13b St. Elizabeth's of Hungary Food PantryCNG Vehicles$53,995.00 SOW Under Review by Contractor 45City of Desert Hot SpringsSolar$1,484,329.00 Contract Language Being Finalized 62Mission Springs Water District3 MW solar project$9,800,000.00$3,330,546.00 Contract Language Being Finalized 36aFIND Food BankGas to Gas replacement$164,623.00 Contract Language Being Finalized

16. Overall Status as of July 5, 2013  2 contracts executed  5 awaiting contractor signature  17 contract language being finalized  1 partial funding requiring revised design  1 SOW in progress * All contracts expected to be executed by September 2013