1

Lessons Learned on Permitting on BLM LandThe Calico Solar Project

November 15, 2010

22

History of Calico Solar

Won an RFP with SCE in 2004 and executed a PPA in 2005 Began work on finding the ideal location in 2004/2005 Farm land not considered due to size necessary for efficiency, cost & possible backlash Worked with the Barstow field office of the BLM to find the ideal location Site was adjusted a few times in the early years to avoid the ACEC for example Site was chosen based on:

Previously disturbed….. 8 pipelines running through the site, BNSF railroad runs through the site, previously used as grazing land, old mine on site, an old well on site and various open routes cutting through the site

In a utility corridor Nearness to transmission….. SCE’s Pisgah substation No one else yet in queue

A lot of work put into the selection process both by BLM and Tessera Solar

33

Calico Solar – Original 8,230 Acre Site (Do we have a better map? Note the old access road, etc.)l

44

Technology to be Deployed

Stirling Energy Systems SunCatcher A solar thermal technology Highlights include:

Made in America Minimal grading Ability to build on up to a 10% slope Modularity allows for building around land features Once built, vegetation between rows can grow back and under SunCatchers can

grow back to a low level Low water usage

Let’s put in a picture of the SunCatcher here, and if I’ve missed any of our pluses, please add them in above.

55

Implications of Using Solar Thermal Technology in California

Thermal energy is permitted in California by the California Energy Commission (CEC). Thus, Calico needed to undergo a dual permitting process…..BLM & CEC. Negotiated and executed a joint permitting MOU between the BLM & CEC to facilitate

the process. Began Application for Certification (AFC) process at CEC jointly while developing POD

with BLM. As result, had various agencies involved:

CEC BLM USFWS CDFG Some regional boards County of San Bernardino

66

Key Elements

Siting Surveys and Studies

Special Status Species Hydrology

Filing with Agencies BLM: SF-299 and Plan of Development CEC: Application for Certification

Required submittals Resource Areas

Workshops Lease Mitigation Heavy duty costs involved amounting to double digit millions Negotiation with the REAT and the individual agencies throughout the process

77

Calico Solar Project Site Today……. What Happened????

NO

RTH

88

Calico Solar – Revised Site

Site Size – up to 663.5 MW Land – 4,613 acres (originally 8,230) acres

BLM lease Location – San Bernardino County, CA; 35

miles east of Barstow DNI – 7.5 annual – 56,542 kWh/yr/SunCatcher

Transmission Interconnection to SCE Pisgah Substation Phase I – 275 MW Phase II – 388.5 MW

Permitting Permitting completed; BLM grant and CEC certification

EPC Phase 1a – Mobilization for construction Q4 2010 Phase 1b – Mobilization for construction Q2 2011 Phase 2 – Mobilization for construction Q4 2013(Occurs with expansion of Pisgah Substation),

PPA Signed PPA with Southern California Edison for full 850 MW

Advantageous site High insolation (7.5 kWh/m2/day), Relatively flat and large contiguous area Low wind speed Proximity to transmission infrastructure. Adjacent to the SCE Pisgah Substation.

99

What Happened in Summary

Determined that we could build on a smaller site…. A good thing CEC process very different from BLM process; dual permitting proved to be a challenge Much negotiation took place with the agencies and between the agencies on the site as

well as the mitigation Found many more desert tortoise than anticipated Wildlife corridors took on a new dimension Site was not recognized as being previously disturbed….pristine desert habitat One of several projects sited for the desert, so lots of attention New push for solar development on farm land rather than pristine desert

1010

Calico Solar – Desert Tortoise

1111

Key Lessons Learned (1)

• BLM land is just as expensive as agricultural land• Agricultural land is more attractive to environmentalists today, but could

swing the other way tomorrow• Desk top surveys are simply not enough to guide in siting

• In a perfect world, all lands would be surveyed now to determine what should be avoided and what not

• Water, water, water• Avoid the railroad

1212

Key Lessons Learned (2)

• Meet with everyone that could possibly impact your project and engage them as part of the process as much as possible upfront

• Request more land than you need…… count on a negotiation• Plan on more time than you expect• Build in as much flexibility as possible without others knowing• Count on 3:1 mitigation as a given; anything less is gravy• Compliance is an enormous task; start early• People, people, people…..relationships will help you

1313

Summary

Calico Solar permitting process has been extremely dynamic One of the most complicated negotiations ever Challenging on many fronts A success