CONFIDENTIAL

Executive Summary Proposal NAME OF POWER ISLAND DEVELOPMENT PROJECT

AB900 ZERO EMISSIONS

ENVIRONMENTAL LEADERSHIP ENERGY PARK

CPUC CEC MUST TAKE MAXIMUM RETI-CREZ ATC.

600 MW Zero Emissions: Hybrid Flexible Oxy-Combined Clean Heat and Power Polygeneration (OXY-CCHPP) 400 MW Coupled Hybrid Advanced Energy Storage
First Phase Of Four (4) Separately Developed Phases Waste Heat Recovery and Combined Heat and Power Enabling >10,000 MW Intermittent/Variable Wind and Solar >2020 Enabling >2,000,000-AF Antelope Valley Water Bank and Recharge

Enabling Policy Goals:

U.S S.6001 GHG, AB900, SB292, SB226, DOE, EPA NSPS, ARB, CPUC, CEC, AB32 GHG, SB1368, SBX1-2 20K/MW, AB1925, 2011 IEPR 6.5K/MW ADDED CHP+ENERGY STORAGE.

CEQA-EIR, NEPA-EIS NEWLY ADOPTED CATEGORICAL EXEMPTIONS (2011) Subject Site CEQA_EIR Via AB900, SB292, SB226 Categorical Exemption (Oct-2011)
http://blog.aklandlaw.com/2011/10/articles/ceqa/adjacent-landowners-cant-use-ceqa-to-avoid-potential-nuisance-claims/index.html

Subject Site NEPA EIS Via FERC/EPA Multi-Purpose Transmission Designated Corridor (2011)

Submitted by:

Sundance Hybrid Power Solutions Inc. 110 West C Street #2101 San Diego, Ca, 92101
*Current Status and Project Update: First Phase of Four (4) Separate Phases.
Consortium: GE- LMS100 OEM, NCND/MOU Black and Veatch, NCND Burns and Mcdonnel, NCND A123. Turnkey Comprehensive EPC all-in cost GE LMS100 simple cycle completed August2011. (Attached) Design phase planned coupled MED system initiated September-2011. ACCESS: 2015-2020 Zero Emissions GHG CO2 pipeline (proposed) EOR/SALINE at CAL-CEMENT 9-MLS/N. WESTCARB (CEC) PIER October 1, 2011: ZERO EMISSION CES NGCC and CT integrated OXYFUEL COMBUSTION DESIGN COST and PERFORMANCE report WESTCARB CEC 500-2010-502 (OCT-2011), CEC 500-2010-037 (DUE-2012). http://www.energy.ca.gov/contracts/RFP_500-10-502/00-RFP-500-10502.pdf CEC 500-2010-037 STONE & WEBSTER
http://www.energy.ca.gov/business_meetings/2011_packets/2011-0420/Item_15/500-10-037_CRF.pdf

POWER /WATER OFF-TAKERS AVAILABLE PER BILATERAL NEGOTIATIONS RFP/RFO CREZ MUST TAKE. Project Assistance Sponsors: (DOE) US Department of Energy and The California Energy Commission (CEC). In collaboration with Pacific Clean Energy Application Center for CHP Combined clean Heat and Power. UC BERKELEY, UC IRVINE, (SDSU) SAN DIEGO STATE UNIVERSITY MECHANICAL ENGINEERING IPT dept.

Prepared By: Robert Rik Kemper

NASA, NETL (Registered) Industrial, Mechanical, Electrical Technical Consultant. Email : templarknightz@yahoo.com

*2011 DISTRIBUTED GENERATION: 1MW-300MW NETWORK TRANSMISSION. http://www.kirj.ee/public/oilshale_pdf/2011/issue_1s/Oil2011-1-240-252.pdf 2011 CCS WESTCARB GUIDELINES. http://pdf.wri.org/ccs_guidelines.pdf
http://www.energy.ca.gov/contracts/RFP_500-10-502/Att20PrelimAssessment.pdf

2011 DOE/NETL WESTCARB PHASE III FACT SHEET:

http://www.energy.ca.gov/contracts/RFP_500-10-502/addendum-01/05-PreBid_Presentations.pdf

http://www.netl.doe.gov/publications/proceedings/08/rcsp/ factsheets/22-WESTCARB_Large%20Volume %20Sequestration%20Test_PhIII.pdf

http://www.netl.doe.gov/publications/proceedings/07/rcsp/factsheet s/6-WESTCARB_Integrated%20Capture%20and%20CO2%20Storage %20in%20Central%20Val.pdf
2011 FINDINGS AND RECOMMENDATIONS BY THE CALIFORNIA CARBON CAPTURE AND STORAGE REVIEW PANEL

http://www.westcarb.org/annualmtg_2010sacramento_pdfs/Deel.pdf http://ucciee.org/downloads/Background_Reports_for_CCS.p df
2010 AUGUST-TO-2011 SEPTEMBER DOE/NETL EXECUTIVE SUMMARY AND A LINK TO THE REPORT OF THE INTERAGENCY TASK FORCE FOR CCS.(RCSP) http://prod75inter1.netl.doe.gov/technologies/carbon_seq/refshelf/news/2011/2011-Newsletter-Index.pdf

2009 U.S DEPARTMENT OF ENERGYS REGIONAL CARBON SEQUESTRATION PARTNERSHIP PROGRAM : OVERVIEW DOE/NETL 2005-2011 KIMBERLINA SALINE VALIDATION PHASE. http://www.netl.doe.gov/technologies/carbon_seq/refshelf/project
%20portfolio/2011/SelectedPubs/US%20DOE%20RCSP%20Program.pdf

http://www.westcarb.org/annualmtg_2010sacramento_pdfs/Lityns ki.pdf http://www.westcarb.org/annualmtg_2010sacramento_pdfs/Deel.pdf

http://www.ifpenergiesnouvelles.com/content/download/69636/1500052/file/17_FERNALD.pdf
http://www.co2geonet.com/UserFiles/file/ESF/ESF-CO2Storage_U_S_%20Carbon%20Sequestration%20Research %20in%20the%20Regional%20Carbon%20Sequestration%20Partnership%20Program_RFinley.pdf

http://www.nma.org/pdf/fact_sheets/ccs.pdf
2011JULY CCS DOE REGIONAL SEQUESTRATION PARTNERSHIPS
http://belfercenter.ksg.harvard.edu/files/Hart%20Putting%20It%20All%20Together%20DP%20ETIP%202011%20web.pdf

2011 (APR.-2009/TO/DEC.2010) A POLICY, LEGAL, AND REGULATORY EVALUATION OF THE FEASIBILITY OF A NATIONAL PIPELINE

INFRASTRUCTURE FOR THE TRANSPORT AND STORAGE OF CARBON DIOXIDE. http://www.sseb.org/downloads/pipeline.pdf

Conceptual Photograph Of 500MW CHP Power Plant Without Water Desalination

CONFIDENTIAL
Introduction
Sundance Hybrid Power Solutions Inc., subject to this proposal, submits its Application for Certification (AFC) to seek a license from the California Energy Commission (CEC) to construct and operate a Combined Heat and Power Plant System to meet the Industrial needs of Industry in Zones near the city of Lancaster in Los Angeles County for Power and Water. The city AB117 CCA or POU or IOU as a potential proponent owner and off-taker for the project referred to as the Tehachapi Renewable Energy Transmission Project (TRETP). It is proposed to be a Combined Power and Water Plant (CPW) that developed from Combined Heat and Power (CHP) technologies and is modular in construction and transportable to the planned construction site by rail and / or roadway. The Combined Power and Water ( CPW ) Plant System consists of SIX ( 6 ) General Electric LMS 100 natural gas - fired combustion turbine generators ( CTGs ) , a MEDi Plant for Desalinating brackish/impaired water , a Heat Recovery Steam Generator ( HRSG ) utilizing Turbine Exhaust Gases for use by the Multiple Effect Distillation Plant that will produce the Raw Water , and a Reverse Osmosis ( RO ) Plant .

The TRETP is designed to provide the power and water requirement for Antelope Valley, Southern California Communities and the city of Lancasters

8 , 534 Acre Industrial US-World Free Trade Zone as well as for the 1 , 400 Acres in the newly incorporated Heavy Industrial Sector that is located outside the city . These Zones make up one of the Largest and Newest World Free Trade Zones (WFTZ) in the U. S. today. The CPW Plant System for TRETP is to be located inside the RETI - CREZ DRECP-Desert Renewable Energy Conservation Plan priority transmission corridor. Inside SCE Segment 3 is access to the 500 kV SCE Bulk Transmission Line, that is currently rated at 220 kV, 66KV and 34.5KV, including 2nd (proposed) foundational 500KV WECC Bulk Transmission Line .

CPW s inner core Power Train Plant portion of the generating Plant System facility includes five ( 6 ) LMS 100 natural gas - fired combustion turbine generators , each equipped with water injection to the combustors for reducing the production of oxides of nitrogen ( Nox ) , a selective catalytic reduction ( SCR ) system with 19 percent ( % ) aqueous ammonia injection to further reduce Nox emissions , and an oxidation catalyst to reduce carbon monoxide ( CO ) emissions . The total net power generating capacity will be nominally 600 MW. Auxiliary equipment will include inlet air filters with evaporative coolers , turbine compressor section inter - cooler , mechanical draft cooling tower , circulating water pumps , water treatment equipment , natural gas compressors , generator step - up and auxiliary transformers , and water storage tanks . This Application for Certification ( AFC ) to be prepared in accordance with the CEC s Rules of Practice and Procedure and Power Plant Site Certification ( August , 2008 ) , as amended. A detailed description of the proposal TRETP An assessment of the anticipated project impacts on the existing environment ( LORS ) A discussion of compliance with applicable laws , ordinances , regulations , and standards The remainder of this Executive Summary summarizes the more detailed information presented in the balance of the AFC.

Purpose of the Project

The CPW derivative CHP Plant System for TRETP fulfills the required power and water needs of the Industrial Zones within the existing city limits of Lancaster plus the newly incorporated Heavy Industrial Sector outside the

current city limits. As the CPW Plant System uses the LMS 100 HWPi Integrated Power / Water Plant modular components it offers a fifteen percent (15 %) - thirty percent (30 %) efficiency improvement over traditional thermal desalination - higher water / power ratios are possible. Since it is a next generation combined cycle plant its electrical efficiency approaches sixty percent (60 %). The annual capacity factor for the CPW Plant System has been calculated to be forty five percent (45 %). Due to the Dry Low Emissions Nox ( DLN ) and Lean Premixed ( LPM ) Triple Annular Combustor ( TAC ) Design Approach reliability , low cost due to reduced consumption of fuel required , and low emissions are optimized to a ZERO EMISSION Advanced Hybrid Flexible Power, Water, and Products, Oxy-Combined Clean Waste Heat Power Polygeneration + CCS. http://www.netl.doe.gov/technologies/coalpower/ewr/pubs/CO2Handbook/CO2-Capture-TechUpdate-2011_Front-End%20Report.pdf http://www.worleyparsons.com/CSG/Hydrocarbons/SpecialtyCapabilities/Documents/Carbon %20Capture%20Overview%20(3).pdf

http://www.netl.doe.gov/technologies/coalpower/ewr/pubs/CO2Hand book/ http://www.iea.org/papers/2011/costperf_ccs_powergen.pdf http://web.mit.edu/mitei/docs/reports/herzog-meldon-hatton.pdf http://www.cnie.org/NLE/CRSreports/10Aug/R41325.pdf

Project Location
The TRETP facility will be located within the Tehachapi and Fairmont Wind and Solar RETI - CREZ PRIORITY DESIGNATED DEVELOPMENT ZONE. This site is at the corner intersection of two (2) newly designated major county highways: HWY B and HWY 110th W and surrounded by two additional side streets. It will be inside the SCE Power Plant Equipment and

Linear Facilities Segment 3 and FERC/EPA 2011 Categorical Exemption Multi-Purpose Transmission Designated corridor.
http://www.arb.ca.gov/regact/2010/res2010/res10h.pdf
http://www.energy.ca.gov/2009publications/RETI-1000-2009-001/RETI1000-2009-001-F-REV2.PDF

http://www.energy.ca.gov/2010publications/RETI-1000-2010002/RETI-1000-2010-002-F.PDF The TRETP will be a nominal 600 - megawatt facility powered by six (6) GE Energy LMS 100 natural gas - fired combustion turbine - generators (CTG s ) and associated equipment . This CPW Plant System is capable of supplying greater than ( > ) 40,000 cubic meters ( m3 ) / day x 6 = 200,000 cubic meters ( m3 ) / day raw , process , and potable water for the industrial needs in the city of Lancaster and the Heavy Industrial Sector adjoining the current city limits . This translates to an aggregate capacity of 44 Million Imperial Gallons per Day (MIGD). The LMS 100 is unique in that it integrates features of both GE s frame and aero-derivative CTG systems and is capable of rapid

starts , with the ability to quickly ramp electrical output from low to full power . Each of the LMS 100 CTG s will be equipped with water injection capability to reduce emissions of nitrogen oxides ( Nox ) , selective catalytic reduction ( SCR ) to further reduce Nox emissions , and an oxidation catalyst to reduce carbon monoxide ( CO ) emissions . The emission reduction equipment will be contained within a housing that terminates at the 90 - foot tall CTTG exhaust stacks. A 39 - foot tall, 5 - cell mechanical - draft cooling tower extending approximately 211 feet in length will meet plant cooling needs.

Electrical Transmission
The electric power produced by the facility will be transmitted to the electrical grid through the on - site 34. 5 kV and 66 kV double circuit transmission lines in tandem on the same pole that will utilize a Step - Up Transformer to connect with SCE Segment 3 Corridor affording access to the THREE (3) X 500 kV SCE Bulk Transmission Lines SPECIFIC TO TEHACHAPI WIND RESOURCE AREA (TWRA) (EDISON ELECTRIC INSTITUTE PG.78), which is currently rated for 220 kV . In a southerly direction from our site s Main Generator Station , in the city of Lancaster , are to be two ( 2 ) Switching Substations , known as the Antelope Gateway Switching Station with 500 - 230 - 66 kV Transmission Lines . The second one will be newly acquired by the year 2013, as a 230 - 66 kV Transmission Line Switching Substation. Both will be intertied from our site. Adjacent to our site in a westerly direction is the Sage Brush Power Output Transmission Corridor with a double circuit transmission line at 230 kV. Adjacent to that in a westerly direction are the LADWP 230 kV, 500 kV Barren Ridge/HaskellRinaldi and nearby LADWP 800-100KV-DC North-South Transmission Lines Corridors. In a northerly direction from our site is an intertie switching substation between the Antelope Gateway and Windhub Substations where Antelope # 1 has 500 - 230 - 66 kV Transmission Lines and #2 has 230 66kV Transmission Lines both in the city of Lancaster and Windhub 500-23066KV Transmission Lines. Inside the TRETP site there are Corridor accesses to multiple 500-230 - 66 kV Transmission Lines. Our site includes corridor access for direct transmission inside (expanded) TRADING HUB CRITICAL PATH - 26 and PATH - 15 (N - S / S - N) via the VINCENT GATEWAY and ANTELOPE GATEWAY Switching Substations for congestion remediation and mitigation FERC 890 OATT ATC firm dispatch and firm re-dispatch. PATH - 26 is overloaded more than 1000 hours annually, after the 500 kV upgrade the overloading reduced to more than 200 hours / year. Current capacity rating is N - S 4000 MW / S - N 3000 MW , with the upgrade added expansion of the 500 kV Transmission Line , the cumulative rating for (expanded) TRADING HUB CRITICAL PATH - 26 + PATH - 15 increases to 8 , 500 MW from the current 7,000 MW, includes firming and stabilizing the transmission grid.

http://www.caiso.com/242a/242ae729af70.pdf *SCE CONCEPTUAL TRANSMISSION REQUIREMENTS AND COSTS FOR INTEGRATING RENEWABLE RESOURCES. (REF.PG.1-2) W/ATP BID ADDER 1.35CENTS KH-Hr. http://asset.sce.com/Documents/Shared/20090629_RFP_Appendix_D_ SCE_TRCR.pdf *SCE TCSG ALTERNATIVE 4-F-PG. 25, ALTERNATIVE 4-G-PG. 26 FOR 4,500MW TWRA-WIND = 3 X 500KV W/ATP TWRA SEGMENT THREE-3 CORRIDOR. http://www.ceert.org/PDFs/reports/Tehachapi2006v1.pdf ftp://ftp.cpuc.ca.gov/gopherdata/environ/tehachapi_renewables/PEA/1.0_Purpose-Need.pdf

*(REF. PG.31) SCE TWRA (3 X 500KV) ALTERNATIVES 3 AND FOUR RECOMMENDED BY CAISO TEHACHAPI STUDY GROUP AND CONSTRUCTION IS TO COMMENCE IMMEDIATELY. http://www.caiso.com/18db/18dbaedf2cca0.pdf *(NOTE REF. PG. 78) EDISON ELECTRIC INSTITUTE: TEHACHAPI RENEWABLE TRANSMISSION PROJECT (TRTP) 500KVSEGMENTS 1-3 ARE SPECIFIC TO TEHACHAPI WIND RESOURCE AREA (TWRA) IN SOUTHERN KERN COUNTY AND LOS ANGELES COUNTY. http://www.eei.org/ourissues/ElectricityTransmission/Documents/Tra ns_Project_lowres.pdf *(NOTE REF. PG. 4) SCE FERC DOCKET NO. EL 07-62-000 SCE TEHACHAPI PROJECT 500KV TRANSMISSION AND APPROXIMATELY 10 MILES OF 220KV TRANSMISSION LINE (TRTP) WILL INTERCONNECT UP TO 4500MW MEGAWATTS OF GENERATING RESOURCES CONSISTING PRIMARILY OF WIND IN THE TEHAHCAPI AREA TO THE SCE TRANSMISSION SYSTEM. http://www.hks.harvard.edu/hepg/Papers/2010/Pizarro_Pedro_HEPG_ Feb2010.pdf

Additional Equipage
In order to enhance maximum usage of the proposed site, it has been determined to help stabilize the power grid, it has been decided to install a 400 MW battery backup system. This system will be provided by A123 Inc., 24M ADVANCED COUPLED HYBRID SEMI-SOLID LITHIUM-ION MULTI-MEGAWATT INDUSTRIAL SCALE ENERGY STORAGE BATTERY SYSTEMS COMMERCIALLY AVAILABLE 2013 PER 24M Inc. Smart Grid Hybrid Stabilization System. Other considerations which will enhance the project installation of a 66KV portable sub/switching station on the property expanded with 230KV

substation on site.

Natural Gas Supply

Natural Gas will be delivered to the CPW Plant System Site via a 32 - inch diameter pipeline, 10 Miles in length running along Tehachapi Road and connecting to one or more of three (3) existing pipelines . Either the FERC NG pipeline at HWY - 110 tie and Cal - Cement : the Kern River, El Paso, Mojave, All American, PG&E line # 400-401 Pipelines in the northerly direction 8-15 miles from the site , and/or the FERC NG - pipeline at HWY 110th and Ave - M in Lancaster : SO - CAL SEMPRA FERC NG - pipeline in the southerly direction 11 miles from the site , which are both 32 pipe connections , and / or the SEMPRA SO CAL CITY GATE PIPELINE ( 8 P / L ) 8 - inch pipe connection at 110th & Ave F, which is located 4 miles in a southerly direction from the site.

Water Supply and Discharge

For generating raw water and industrial process and potable water through the MEDi Desalination Plant within the CPW Plant System two or more supply wells are to connect to the brackish/impaired aquifer inside the 1, 000, 000 acre feet (AF) Feed Site. Water Pumps will transport the water to feed Raw Water to AVEK and LADWP. There will be an easement dedication at the subject site for + 48 inch dual capacity RAW water transmission to a proposed facility nearby to AVEK - Antelope Valley East Kern water district and LADWP 36 dual capacity pipelines. The LADWP (#2) Owens Valley Canal and SWRD - SWP AQUADUCT are near the subject site and inside the one (1) million acre feet water / recharge aquifer water banking hydrological region. SWRCB has proclaimed the Antelope Valley Aquifer as a priority designated primary groundwater resource for the remediation / mitigation and susceptibility to pollutants ARSENIC, CHROMIUM 6, SALT and NUTRIENTS. The comprehensive final water laboratory reports from USGS and SWRCB were completed 2008. Power plant 600 MW cooling water needs can be supplied via 32 reclaimed water pipeline located 11/2 miles north on a major county highway, at (110th West) and Gaskell Rd. Intended usage is for Rosamond Western Development 500,000 acre feet recharge bank. Antelope Valley is part of the >2,000,000 acre feet cumulative LADWP, Lancaster, Palmdale, Avek/Rosamond Development recharge bank project. In addition there is a LACSD 32 reclaimed water pipeline on major county highway which is located 5 miles east of the subject site at Highway B and 60th Street West. This pipeline is used to recharge the Antelope valley Aquifer with expansion delivery capacity exceeding 16,000.000 gallons daily. At subject site Highways B and 110th W LADWP dual capacity 36 and AVEK 48 dual capacity water transport (proposed) pipelines. Per California DWR project transfer agreement the entire >15,000 acres water bank recharge Western Development/Rosamond Water district shall have open access for the public consumers benefit and use. There will be Zero Liquid Discharge ( ZLD ) due to the utilization of an Electric Deionizer (ED) or a Electric Deionizer Reversal ( EDR ) with a crystallizer system , and the by - product is

saleable salt cake that is safe enough to dispose of at your local landfill site . http://www.desalination.biz/news/news_story.asp?src=nl&id=6173 The combined wastewater discharge from the plant will consist of cooling tower blow down, RO rejects, evaporative cooler blow down, CTG intercooler condensation and effluent from the oilwater separator. Sanitary wastes drains are sent to a septic tank and leach field in ground that has been determined to be acceptable by a percolation test. Storm water will be conveyed by overland flow and swales to an infiltration basin located at the southeast corner of the proposed site. The infiltration basin will serve as a storm water treatment facility to manage the quality and quantity of storm water runoff from the proposed site, Transmission corridor, and inside the RETI - CREZ priority transmission corridors. *2011 Conjunctive Use of Aquifers and reservoirs: Tradeoffs Between Energy Generation and Water Supply CEC 500-2010-023, CEC 500-2009-100
http://www.energy.ca.gov/publications/displayOneReport.php?pubNum=CEC-500-2010-023 http://www.energy.ca.gov/publications/displayOneReport.php?pubNum=CEC-500-2009-100

SUBJECT SITE AND INTEGRATED ADVANCED FLEXIBLE POWER/WATER/PRODUCTS OXY-CCHPP QUALIFIES FOR ALL TOP APPLIED PRIORITIES AS REQUIRED IN ASPEN SCORING GUIDELINES. *SCORING RENEWABLE ENERGY PROJECTS FOR 33% RPS GOALS.
http://www.cpuc.ca.gov/NR/rdonlyres/84257CC3-2EA5-422E-90FC-3D9EE485AE1B/0/WhitePaperEnv_Scoring.pdf http://www.cpuc.ca.gov/NR/rdonlyres/A852C58D-F7DC-4719-8D08-FC90D3003308/0/TimelinesWhitePaper.pdf

*2011 Life Cycle Assessment Of Existing and Emerging Distributed Generation Technologies In California: Final Project Report.
http://www.energy.ca.gov/publications/displayOneReport.php?pubNum=CEC-500-2011-001

INTERAGENCY ROADMAP
http://www.cacleanenergyfuture.org/common/CCEF %20Roadmap_vFinal.pdf 2011 TEHACHAPI RENEWABLE ENERGY TRANSMISSION PROJECT (TRETP) PARTICIPATING TRANSMISSION OWNERS (PTO) WILL ACT AS PROJECT SPONSOR OWN, CONSTRUCT, AND FINANCE THE ADDITION OR UPGRADE, (SUBJECT TO CAISO APPROVAL PROCESS). http://www.hks.harvard.edu/hepg/Papers/2010/Pizarro_Pedro_HEPG_Feb20 10.pdf http://www.hks.harvard.edu/hepg/Papers/2010/Pizarro_Pedro_HEPG_Feb20 10.pdf

FINANCING: Private-Public Activity Bond, DOI-USBR incentives and subsidies $1000 per acre foot capacity (infrastructures), Prop 50 and 84, ARRA 2009 Stimulus, California Water Bond, H.R.1071 and MWD subsidies for alternative water source.

Potential Electricity Off-takers:

POTENTIAL POWER PPA OFF TAKERS FOR 600MW LMS100 CHP-COGENERATION * LOCAL CITY CCA REQUEST FOR 600MW LMS100 CHP SUBJECT TO RFP/RFO. 1) LADWP BILATERAL AND 2011 RFP/RFO INCLUDES REQUEST FOR GE-LMS100. 2) SCPPA 11 CITIES BILATERAL AND RFP/RFO PUBLICATION INCLUDES LMS100. 3) SCE 2011 BILATERAL NEGOTIATIONS AND RFP/RFO VIA PUBLICATION. 4) PG&E 2011 BILATERAL NEGOTIATIONS AND RFP/RFO VIA PUBLICATION. 5) SDG&E 2011 BILATERAL NEGOTIATIONS AND RFP/RFO VIA PUBLICATION. 6) OTHER MUNICIPALITIES ALSO SEEKING RFP/RFO FOR CHP-COGENERATION.

Potential Water Off-takers: LADWP, MWD, IOU, LOCAL CCA. *2012 Antelope Valley Integrated Water Plan, Includes >2,000,000 acre feet Aquifer recharge and water bank project. (Completed Final Report June-2011) http://www.avwaterplan.org/ Other Financial Considerations:
Financial subsidies and financing mechanism available are not to exclude a) HR1071 alternate water source subsidies of $220 per acre feet produced b) MWD/LADWP alternate water source supplements $195-$250 per acre foot c) Prop 50 and Prop 84 financing and incentive funding for alternate water source infrastructures and production. d) Approved by Cal. Governor Schwartzenegger eleven billion dollars California water and infrastructure bond financing 2011. e) AB811/474 tax assessed bond financing >1% interest rate for twenty (20yrs). f) AB117 CCA-community choice aggregation incentives and financing. g) CARB CARBON TRUST and AB1555 assistance for renewable clean GHG reduction technologies AB32 mandates, assisting developers h) DOI-USBR $1,000 per acre foot capacity for infrastructures subsidy. i) MACRS five years for qualifying projects.

*APPENDIX H MASTER REFERENCE INDEX

LIST.

DEVELOPED BY CEC, CPUC, AND ARB. http://www.arb.ca.gov/regact/2010/res2010/res10h.pdf *OCTOBER 2011 EIA ANNUAL ENERGY REVIEW: http://www.eia.gov/totalenergy/data/annual/ *2011 AUGUST CEC 200-2011-009 A REVIEW OF TRANSMISSION LOSSES IN PLANNING STUDIES. http://www.energy.ca.gov/2011publications/CEC-2002011-009/CEC-200-2011-009.pdf http://www.ethree.com/public_projects/cpucdr.html http://www.cpuc.ca.gov/PUC/energy/Demand+Response/CostEffectiveness.htm

*SEPT. 2011 ENERGY AWARE FACILITIES SITING AND PERMITTING GUIDE:

http://www.energy.ca.gov/energy_aware_guide/siting.html *SEPT. 13, 2011 CALIFORNIA FAST TRACK RENEWABLE ENERGY LEGISLATION DRECP. http://documents.jdsupra.com/f1fc4bb7-c6e5-4267ad7f-88d4d4c460dd.pdf *NOV. 2010 BEST MANAGEMENT PRACTICES AND GUIDANCE MANUAL: DESERT RENEWABLE ENERGY PROJECTS. http://documents.jdsupra.com/f1fc4bb7-c6e5-4267-ad7f88d4d4c460dd.pdf *INFRASTRUCTURE NEED ASSESSMENTS FOR 2011 INTEGRATED ENERGY PLAN. http://www.energy.ca.gov/2010publications/CEC-200-2010-010/CEC-2002010-010-SD.PDF *AUG. 2010 CPUC FEED-IN TARIFF DESIGNS CALIFORNIA COMPETITIVE RENEWABLE ENERGY ZONES. http://www.energy.ca.gov/2010publications/CEC-300-2010-006/CEC-3002010-006.PDF *MAY. 2009 CPUC CALIFORNIA FEED-IN TARIFF DESIGN AND POLICY OPTIONS (PATH # 3 MAX-ATC). http://www.energy.ca.gov/2008publications/CEC-300-2008-009/CEC-3002008-009-F.PDF *MAY 26, 2012 EPA FINAL RULE NSPS ELECTRICITY GENERATION AND REFINERIES GHG LIMITS. http://www.epa.gov/airquality/ghgsettlement.html *2011 ACCELERATING THE DEVELOPMENT AND DEPLOYMENT OF CARBON CAPTURE AND STORAGE TECHNOLOGIES. http://nws.chem.uu.nl/publica/Publicaties%202011/Proefschrift_van %20Alphen.pdf *APRIL 2011 OBAMAS RED TAPE ROADMAP http://barrasso.senate.gov/public/_files/4.12.11_Obama_Reg_Roadmap.pdf *2005-06 FERC SCE TEHACHAPI 500KV RENEWABLE ENERGY TRUNKLINES. http://66.147.244.210/~westerz0/wp-content/uploads/2011/02/Tehachapi-

Windpower_6-2005.pdf *TRANSMISSION IN TEHACHAPI: TCSG TEHACHAPI COLLABORATIVE STUDY GROUP 2005. (REF. PG. 22, 27, 30, 77) http://www.ceert.org/PDFs/reports/2ndReportTehachapiStudyGroup.pdf ftp://ftp.cpuc.ca.gov/puc/energy/electric/renewableenergy/tehachapi+2nd +report_vol+4+of+5.pdf http://asset.sce.com/Documents/Shared/20090629_RFP_Appendix_D_SCE_T RCR.pdf *TRANSMISSION IN TEHACHAPI: TCSG 2006 FINAL STUDY REPORT. (REF. PG.9) ftp://ftp.cpuc.ca.gov/puc/energy/electric/renewableenergy/tehachapi+2nd +report_vol+5+of+5.pdf http://www.ceert.org/PDFs/reports/Tehachapi-2006v1.pdf http://www.ceert.org/PDFs/reports/Tehachapi-2006v2.pdf
http://docs.cpuc.ca.gov/environ/tehachapi_renewables/TRTP_Final%20EIR-EIS/EIREIS/8-References.pdf http://www.caiso.com/18db/18dbaedf2cca0.pdf

*2011 IEA ECES ENERGY CONSERVATION THROUGH ENERGY STORAGE. http://www.iea-eces.org/files/eces_annual_report_2010_1.pdf *2011 CARBON CAPTURE STORAGE RESEARCH LINKS http://www.armarocks.org/documents/newsletters/2011_01_03_spring.pdf *2011 DOE/NETL CARBON CAPTURE SEQUESTRATION PROGRAM TECHNOLOGY PLAN. http://www.netl.doe.gov/technologies/carbon_seq/refshelf/2011_Sequestra tion_Program_Plan.pdf *2011 CALIFORNIA CARBON CAPTURE SEQUESTRATION IS REQUIRED TO MEET AB32 GHG REDUCTION. http://ucciee.org/downloads/Coddington_Supplement_to_the_California_Report_Jan_ 5_2011.pdf *2011 IEAGHG GLOBAL CCS INSTITUTE: EFFECTS OF IMPURITIES ON GEOLOGICAL STORAGE OF CO2.
http://cdn.globalccsinstitute.com/sites/default/files/publication_201104_effects_impurities_ geological_storage_co2.pdf

*2011 CEC ARB CALIFORNIA CARBON CAPTURE REVIEW PANEL RECOMMENDATIONS.

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*2011-2015 CAISO FIVE (5) YEAR TRANSMISSION PLANS. http://www.caiso.com/Documents/Five-YearStrategicPlan_2011-2015_.pdf *2012 AB412 PROPOSED FOR ADOPTION OF QUALIFYING TECHNOLOGIES NOT TO EXCLUDE CHP. http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/143459.pdf http://www.cpuc.ca.gov/NR/rdonlyres/750FD78D-9E2B-4837-A81A6146A994CD62/0/ImpactsofDistributedGenerationReport_2010.pdf *2011 DISTRIBUTED GENERATION E3 DEFINITION. (REF. PG. 10) http://www.ieadsm.org/Files/Exco%20File%20Library/Key %20Publications/SynthesisFinalvol1.pdf *2011 DISTRIBUTED GENERATOR BENEFITS ARE SITE SPECIFIC. http://www.lib.sie.edu.cn/tools/ebsco/f2.pdf *2009 IMPLEMENTATION OF 33% RPS RESOURCE AREAS RETI-CREZ. http://www.cpuc.ca.gov/NR/rdonlyres/1865C207-FEB5-43CF-99EB-

A212B78467F6/0/33PercentRPSImplementationAnalysisInterimReport.pdf *2011 BLACK AND VEATCH INTEGRATED DEMAND SIDE MANAGEMENT (IDSM) http://www.calmac.org/publications/IDSM_Final_White_Paper_12May2011.p df *2011 IEPR (DG) DISTRIBUTED GENERATION, (LER) LOCALIZED ENERGY RESOURCES. http://www.energy.ca.gov/2011_energypolicy/documents/2011-0622_workshop/comments/Southern_California_Edison_Company_Comments_ 2011-07-06_TN-61321.pdf *2011 LOCAL CAPACITY TECHNICAL ANALYSIS FINAL REPORT. http://www.caiso.com/2788/2788ab565da00.pdf *2013-2015 CAISO LOCAL CAPACITY TECHNICAL ANALYSIS. http://caiso.com/287c/287ca3cc28a80.pdf *2011 SEPTEMBER CPUC SCE AND SDG&E REQUEST FOR PPA APPROVAL ALTA WIND AND SOLAR PPA. http://www.sdge.com/tm2/pdf/2291-E.pdf http://www.co.kern.ca.us/planning/pdfs/eirs/AltaOakCreek/AltaOakCreek_C h3.pdf *2011 SEPTEMBER TRANSMISSION COST ALLOCATION NREL. http://www.nrel.gov/wind/systemsintegration/pdfs/2011/fink_transmission_ cost_allocation.pdf *2010 SCE FERC APPLICATION FOR INCENTIVES. http://www3.sce.com/sscc/law/dis/dbattach3e.nsf/0/8825710D0078324988 2577F400830EFB/$FILE/101209+EL1110+SCE+Petition+for+Declaratory+VOL+1.pdf

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