PVNAVIGATOR, LLC

Brownfields Uplift …Developing Utility-Scale

PV Solar Facilities on Closed Landfills

WEST COAST

1 Pointe Drive, Suite 320

Brea, CA 92821

714.388.1800 www.PVNavigator.com

GULF COAST

15990 N. Barkers Landing Rd.,

Suite 325

Houston, TX 77079

713.468.5004

NORTHEAST

334 East 9th Street

New York, NY 10002

646.370.4588

In

Association

With

Presentation at:

BACK IN BUSINESS: RESOURCES FOR

REDEVELOPMENT & LAND RECYCLING

RIVERSIDE, CA

Ian A. Webster & Robert Fritz April 12, 2016

Sponsored by:

www.ProjectNavigator.com

Project Navigator, Ltd. Works on Remediation Projects But

Has Grown Solar Project Development Practice.

2 www.projectnavigator.com | www.safetymoment.org

3

PVNavigator, LLC is an Operating Unit of

Project Navigator, Ltd.

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The Los Angeles Basin has , ’s of A res of Closed Landfill Space & Brownfield

Sites. This Acreage Can be Repurposed into MW-Scale Solar Power Installations.

Landfill Caps Offer Flat, Geotechnically Stable

Acreage for Solar Power Developments.

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Landfill Owners Receive Revenue

via a Long-term Land Lease .

Blower & Flare Station

Power Generation via Gas Turbine or Steam Cycle Systems

Waste/ Complex Organics

Organic Acids

Landfill Gas

Other Landfill Monitoring Systems (e.g. for groundwater)

Landfill Gas Collection Wells in Waste

Breakdown Process of Landfill Waste

Typical Landfill 20 to 200 acres

Perforated Gas Pipe

Methane and Carbon Dioxide

Methane and Carbon Dioxide

Landfill Gas-to-Power

Landfill gas (LFG) migrates to waste prism extraction wells and the associated collection systems. The LFG is conveyed via a network of pipes to feed a power generation plant.

Many Large Scale (300 MW and up) Solar Facilities Are Planned for the U.S. Southwest, However They Face Permitting, Financing, and Interconnect Challenges. Less so for Urban Located Landfill or Brownfield Sites.

Perforated Gas Pipe

Methane and Carbon Dioxide

Methane and Carbon Dioxide

Blower & Flare Station

Power Generation via Gas Turbine or Steam Cycle Systems

Waste/ Complex Organics

Organic Acids

Landfill Gas

Landfill Gas Collection Wells in Waste

Landfill Gas-to-Power

Landfill gas (LFG) migrates to waste prism extraction wells and the associated collection systems. The LFG is conveyed via a network of pipes to feed a power generation plant.

PV Solar Power A photovoltaic (or PV) cell is a specially treated wafer of silicon, sandwiched between two thin contact plates. The top contact is positively charged and the back contact is negatively charged, making it a semiconductor.

• The n-type semiconductor has an abundance of electrons, giving it a negative charge, while the p-type semiconductor is positively charged.

• Electron movement at the p-n junction produces an electric field that allows only electrons to flow from the p-type layer to the n-type layer.

• When sunlight hits the solar cell, its energy knocks electrons loose from the atoms in the semiconductor.

• When the electrons hit the electrical field, they’re shuttled to the top contact plate and become a usable electric current.

• PV panels are mounted in racking systems specially designed to accommodate landfill-specific requirements such as “no cap damage” and “waste settlement.”

A typical racking module is 10ft. By 20ft. and generates 2.5kW. This translates to about 1MW from every 3-5 acres.

Photovoltaic Cell Detailed cross-section

Solar Panel Glass covering

Transparent adhesive

Anti-reflection coating

Not to scale

Electric Current

DC/AC Inverter Necessary to convert electric current for consumer use

Utility Company

Solar Power to the Grid Excess energy from the solar array is fed into the power grid. It helps provide extra electricity to the community, especially during peak daytime hours.

Customers

Solar Panels

The sun gives off about 400

trillion watts of power

Other Landfill Monitoring Systems (e.g. for groundwater)

Landfill Sites are Excellent PV Power Platforms. Flat Acreage, Close to Load and Interconnect, Putting Otherwise Unusable Acreage Back to Use. Projects are Technically Straightforward but Administratively Complex.

Over 400,000 identified Brownfield sites in the United States

16 million acres are available for development of renewable energy

That’s enough land to generate approximately 3,175,000 MW

(For reference, the Hoover Dam generates about 2,000 MW)

Site Candidates: According to U.S. EPA, There is No Shortage of

Brownfield and Landfill Site Acreage Which Could be Suitable for

Renewable Energy. (Much more at www.epa.gov/re-powering)

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EPA’s Repo eri g A eri a Data ase “pe ifi all Lists Landfill, Brownfield and Superfund Sites for Solar Power.

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Source: https://www.epa.gov/re-powering

Drilling Down to the Los Angeles Basin and Inland

E pire…La dfills a d Bro field “ites are A u da t.

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Legend

Landfill Sites

Brownfield Sites

Tip No. : Qui kl Assess Your “ite’s PV Possi ilities. Key Criteria for PV Solar Development on Impacted Sites.

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Environmentally

Impacted Land

(Restricted Future

Use)

Appropriate

Geographic

Location

Land Control (Title

or Long-Term

Lease)

Nearby

Interconnection

Point

Who Will be the

Power Offtaker?

(PPA with Utility or

Behind the Meter?)

State-Mandated

Renewable

Portfolio Standards

Green Corporate

Goals

Project Financing

• External

• Internal

Applicability of Your Site to Host

a PV Solar Installation

Tip 2: Can Development Logistics be Parallel

Tracked to Optimize Time and Project Spend.

STEP 1 Letter of intent with site owner…most likely the audience in today’s session in Riverside

STEP 2 PVNavigator performs a detailed project economic analysis + starts an Interconnect Feasibility Study

STEP 3 $ Deal Structuring: Landowner: Straight land leasing to “some form of participation” in facilities Financing: Debt v’s equity

STEP 4 Power purchase agreement negotiations with off-taker…e.g. So Cal Edison (SCE)

STEP 5 Project financing

STEP 6 Complete agreements and environmental studies (e.g. Post Closure Permit Update, and CEQA)

STEP 7

• Design / Build

STEP 8 • Start up and long term

operations • Synergize with landfill

operations

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Stages in PV Solar Power Installation Development:

The De elop e t Path a Vie ed fro a I dustrial La do ers’ Perspe ti e. …or…What’s in the Deal for the Industrial Landowner? (Hand Out Provided)

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4. The above tasks move the job from concept and proven economic feasibility through

detailed engineering, procurement and PV installation construction, into final start up and

power sales (under the terms of the early negotiated PPA). All the above work is performed

y PVN a d sele ted EPC resour es at PVN’s ost.

* Can be in form of an “option agreement” between landowner and PVNavigator, LLC, or a longer term land lease. Option would convert to a land lease once the scope and economics of the proposed project are better defined, such as at the

execution of a PPA. PVN can supply a model option agreement, on request.

** Civil engineer and EPC contractor can be the one company.

Site Identification

Civil Engineer Selection**

Project Financing

Site Control*

Technology Provider/EPC Contractor Selection**

Tariff Rate Determination

Permitting

Contract Execution

Contract Execution

Power Purchase

Agreement (PPA)

Site Plan /

Layout Design

Power

Scheme

Design

Inter-

connection

Agreement

Site Upgrades

Engineering & Procurement

PV Facility Construction & Commissioning

Startup, Power Sales, Operations

& Maintenance

Early Planning, Negotiations and Project Marketing Phase

• Power Purchase Agreement

(PPA) Proposal and/or

Negotiations

• Power Marketing

• Interconnect Study

• Environmental Permitting

Including Any EIR Work and

Associated Environmental

Document Revisions

• Facility Conceptual Design

• Project Economic Calculations

1. “hould e perfor ed i a o sulti g, ed-side

a er ith la do ers, here PV project

feasibility(FS) is generally discussed and

assessed. All very conceptual at this stage.

Big Q: who would be the power offtaker?

2. La do er uys i to a PV- isio , a d ia a option agreement b/t landowner and PVN, grants

interim site control to PVN to push forward on a

PV plan. Any power offtaker will require site

control for interconnect FS purposes. No cost to

landowner.

3. Above tasks are the meat and potatoes of

PVN’s PV pla i g a d proje t feasi ility studies. Interaction at this stage occurs with

power purchaser, and environmental and

permitting agencies. All work is performed by

PVN at PVN’s ost i role of de eloper.

Overview: Where Project Cash Flow Occurs and How an Industrial Landowner Can Participate

1. All project development fees are paid by PVN (from feasibility to design to construction. No development costs need be

incurred by landowner).

2. In the simplest business model, landowner receives revenue from a land lease for 25 to 30 years. If site is in a remediation

OM&M phase, lease revenues can offset OM&M costs.

3. More innovative (complex?) PV development financial arrangements are possible which can include components such as:

a. landowner receives a fraction of power sales revenue (replacing lease); b. po er a e sold to a la do er’s fa ility at a proje t-e o o i rate; or c. landowner could co-i est i the PV fa ility, if o siste t ith the e tity’s po er pur hase needs and sustainability goals.

Key Metrics: • Concept to operations in ~2 years

• PVN pays for all project development costs

• PVN's construction costs will be about $2.5M/MW (4 acres of installation)

• Landowner can receive lease fees, or more innovatively participate (see below1)

• PV facility lifetime is 25 to 30 years

• PVN remotely monitors the facility, augmented by monthly onsite inspections

• 1PPA with power offtaker sets power sales rates, and escalator

• Landowner sustainable project credit

• PVN's evolution from the landfill EPC services world insures that PV installation

will be "cap-compatible"

The Press Enterprise Article.

Riverside: Solar project to be built on landfill.

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The it ’s pu li utilit is o i g ahead with a project to build a solar array on the

closed Tequesquite Landfill just south of

Mou t Ru idou .

Ri erside o gets t o ega atts of its power supply from the sun, and a planned

city project could nearly double the amount

of a aila le solar po er ith a ear.

Solar Project Deal Structuring: Multiple Stakeholders with

Different Interests Must Be Aligned

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Site Owner Lease revenue

Power Offtaker

Ok cents/kWh

Regulatory Agency

Continued compliance

CEQA

Financing IRR

PVNavigator, LLC First Piloted the Landfill-Based PV Power Concept

at the Operating Industries, Inc. (OII) Landfill in Monterey Park, CA.

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Funding was Supplied by the

California Energy Commission.

PVN’s Pilot “tud Ra for Years under the watchful eyes of CEC,

U.“. EPA a d the La dfill’s Responsible Parties.

Today PVNavigator, LLC is Starting Construction of a 3MW PV Solar

Po er I stallatio o the Cou t of “a Ber ardi o’s Millike Landfill in Ontario, CA.

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So

uth

Mil

lik

en

Av

en

ue

So

uth

Ha

ve

n A

ve

nu

e

12kV interconnect switchgear

(Preliminary SWGR DIMS = 13’Wx3’D)

Last SCE 12kV Overhead Pole

PVN Proposed Layout of Solar Panel Array

The Solar Construction Vendor Market is Vibrant...More

tha E tities Parti ipated i PVN’s Bid Walk i Ja , 6

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San Bernardino County Will Receive

Revenue via a 20+ Year Lease.

PVNavigator, LLC Has Also Optioned Space on the County of San

Ber ardi o’s Big Bear La dfill to De elop a MW I stallatio .

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Power Sales will be to Bear

Valley Electric Services.

PVNa igator, LLC’s Big Bear Landfill PV Installation will be Located on

the Landfill Cap and on Adjacent Acreage within the Landfill Facility.

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PVNavigator, LLC is Also Active on the East Coast. PVNa igator, LLC’s PV “olar De elop e t at the O e s Cor i g La dfill, NJ.

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The PV solar systems will not penetrate or damage the existing cap.

Develop a 3.1 MW photovoltaic solar array from approximately 1,034 SunPods, fixed tilt, rack mounted arrays.

Who

• A development Team anchored by PV Navigator, Ltd.

(PVN) as the project integrator.

• PVN specializes in developing small scale distributed solar

facilities on landfill sites.

• Design capabilities by Miller Brothers, NJ, and solar

modules from SunPower.

• Permitting and environmental tasks to be performed by

PVN.

What

• A 3.1 MW PV Solar Development.

• Fixed Tilt, Rack Mounted, Self Ballasting.

• Occupies 12 acres of landfill top deck areas.

• Racks are specifically designed for landfill cap installations.

• No long-term cap damage.

When

• All permitting and design completed by end of 2015.

• System installed and operational by December 2016.

How

• PVN and the Township of Gloucester enter into a Land

Lease Agreement which includes ability to use the landfill

top deck for 20 years.

• Project will be financed via a combination of debt and

equity.

• PVN has excellent fund raising track record with major East

and West Coast renewable energy funds.

Ma Resour es E ist, e.g.; EPA’s Best Pra ti es for “iti g PV “olar o La dfills .

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EPA’s Ha d ook o “iti g Re e a le E erg Projects While Addressing Environmental Issues.

23 Source: “US EPA Ha d ook o Siti g Re e a le E ergy Proje ts While Addressi g E iro e tal Issues”

https://www.epa.gov/sites/production/files/2015-04/documents/handbook_siting_repowering_projects.pdf

Inquiries Welcomed on How to Develop a Solar

Power Installation on Your Brownfield Site.

Ian A. Webster

President

iwebster@ projectnavigator.com

Tel: 714.388.1800 | Cell: 714.863.0483

Robert Potter Western Region Project Director

Robert.Potter@pvnavigator.com

Tel: 714.388.1809 | Cell: 714.926.9630

Robert Fritz Project Manager

Robert.Fritz@pvnavigator.com

Tel: 714.388.1813 | Cell: 626.888.0237

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Chad D. Hufsey Co-founder and President

cdhufsey@alturuscapital.com

Tel: (214) 617-2231

Jacob B. Jones

Co-founder and Managing Director

jbjones@alturuscapital.com

Tel: (214) 617-2232

PVNAVIGATOR, LLC

PV “olar Fa ilities o Closed La dfills…

Thanks for Your

Atte tio …Questio s?

WEST COAST

1 Pointe Drive, Suite 320

Brea, CA 92821

714.388.1800 www.PVNavigator.com

GULF COAST

15990 N. Barkers Landing Rd.,

Suite 325

Houston, TX 77079

713.468.5004

NORTHEAST

334 East 9th Street

New York, NY 10002

646.370.4588

In

Association

With

www.ProjectNavigator.com

Presentation at:

BACK IN BUSINESS: RESOURCES FOR

REDEVELOPMENT & LAND RECYCLING

RIVERSIDE, CA

Sponsored by: