1. Presented to ABA RADER Committee/Columbia Law School's Environmental Law Society Symposium INTRODUCTION TO RENEWABLE ENERGY DEVELOPMENT www.velaw.com Becky Diffen Vinson & Elkins L.L.P. February 22, 2016

2. Confidential and Proprietary ©2015 Vinson & Elkins LLP www.velaw.com2 WHAT IS CLEAN ENERGY? Power Generation o Wind o Solar o Geothermal o Hydro o Biomass o Wave/Tidal Transmission Energy Storage Energy Efficiency Biofuels

3. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com3 Wind/Solar Resource Real Estate Power Sales Tax Abatement Interconnection Permitting & Environmental Issues Equipment Financing Construction Operations & Maintenance KEY STEPS FOR DEVELOPING PROJECTS

4. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com4 KEY PROJECT CONTRACTS Power Purchase Agreement (PPA) Engineering, Procurement & Construction Agreement (EPC), Balance of Plant Agreement (BOP), Equipment Supply Agreements Operations & Maintenance Agreement (O&M) Interconnection Agreement Regulatory Approvals & Permits Leases and other real estate agreements

5. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com5 Size of Project Conflicting Surface Uses o Oil & Gas Obstruction & Wake Effect Wind Rights REAL ESTATE CONSIDERATIONS

6. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com6 WATERFALL EFFECT

7. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com7 SALE OF POWER & POWER PURCHASE AGREEMENTS

8. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com8 IMPORTANCE OF TAX Tax Credits Accelerated and Bonus Depreciation The “Flip” Structure Sale-Leaseback Inverted Leases

9. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com9 STATE INCENTIVES Renewable Portfolio Standard (RPS) Renewable Energy Credits (RECs) Tax Credits Tax Abatements

10. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com10 INTERCONNECTION Feasibility Study System Impact Study Facility Study Interconnection Agreement

11. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com11 PERMITTING FAA Construction State/Utility Commission Generator registrations NEPA (federal) EWG/QF

12. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com12 ENVIRONMENTAL Avian Endangered Species Cultural Resources Wetlands

13. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com13 EQUIPMENT Turbines Balance of Plant o Substation & transformer o Electrical gathering system o Roads o Foundations o O&M building o Permanent met towers

14. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com14 FINANCING Development phase Construction loan Tax Equity financing Long-term project financing / debt

15. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com15 CONSTRUCTION

16. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com16 OPERATIONS & MAINTENANCE

17. Confidential and Proprietary ©2016 Vinson & Elkins LLP www.velaw.com17 Confidential and Proprietary ©2015 Vinson & Elkins LLP www.velaw.com Abu Dhabi T +971.2.412.0700 Austin T +1.512.542.8400 Beijing T +86.10.6414.5500 Dallas T +1.214.220.7700 Dubai T +971.4.330.1800 Hong Kong T +852.3658.6400 Houston T +1.713.758.2222 London T +44.20.7065.6000 Moscow T +7.495.544.5800 New York T +1.212.237.0000 Palo Alto T +1.650.687.8200 Riyadh T +966.11.250.0800 San Francisco T +1.415.979.6900 Tokyo T +81.3.3282.0450 Washington T +1.202.639.6500 THANK YOU 2801 Via Fortuna, Suite 100 Austin, TX 78746 512.542.8737 bdiffen@velaw.com www.velaw.com