Requested Board Actions 1 Approve Partial Cancellation of

Requested Board Actions 1. Approve Partial Cancellation of Contract No. 365 By Finding That Jobs and Renewable Energy Substantially Outweigh the Public Interest in Unreasonably Applying Williamson Act 2. Authorize Chairman to Sign Certificate of Tentative Cancellation Based Upon Valuation of Fresno County Assessor of August 19, 2011 3. Uniform Decommissioning and Reclamation Plan Obligations for All Solar Projects Fresno County BOS – 08/31/2011 1

Westlands Solar Farms Introduction WSF is a partnership of local land owners: • Mike and John Dresick of Dresick Farms Inc. • Alan Boyce of Boyce Land Co. The project is supported by area farmers, businesses and cities • Borba Farms, Inc. • Woolf Farming Co. • Lyles Diversified, Inc. • City of Huron • City of Mendota Expertise: ü Land stewardship ü Job Creation ü Right-to-farm practices ü Integrated Pest Management ü Logistics ü Food safety Fresno County BOS – 08/31/2011 2

Westlands Solar Farms Solar Project Highlights: • Size: • 18 MW Solar PV Substation: 2, 120 -ft from Gates • Environmental issues: None Milestones: • Contract: 20 -year PPA • Interconnection: CAISO agreement • Financing: Secured Fresno County BOS – 08/31/2011 3

Water and Sunshine Fresno Is Well-Suited for Solar PV Fresno County BOS – 08/31/2011 4

Project Proximity Gate’s front door— directly across the street from WSF solar plant Fresno County BOS – 08/31/2011 5

Electric Grid Reliability Ø WSF’s project supports local and statewide electric reliability • Gates supports power flow from Diablo Canyon to Helms Pumped Storage Ø WSF’s project builds needed local electric reserves Ø Fresno has fast-rising summer peak load • WSF’s project helps stabilize rates and system performance Fresno County BOS – 08/31/2011 6

Economic Growth Overview Ø Public interest: • California has a commitment to solar energy development since 1978 Ø Fresno County could become California’s PV generation center of excellence: • Operations, management, integrated solar plant management Fresno County BOS – 08/31/2011 7

Best Practices Land Stewardship WSF’s founders: • 37 years value-added farming track record in Fresno County • Hold ourselves to the highest standards (i. e. AIB good agricultural practice) • Will incorporate best practices into the construction and maintenance of this solar project This Not That! 8

Solar in Fresno County Projected Land Use • 1. 6 GW-AC of PV Solar in Fresno County would cover just 0. 5% of the land. • This represents over $6. 0 billion of construction spending. * Source: Farmland Mapping and Monitoring Program and WSF estimates Fresno County BOS – 08/31/2011 9

Solar in Fresno County Jobs • Construction Jobs: 470 • Indirect Jobs: 470 • Permanent Jobs: 928 • Multiplier Jobs: 2, 824 during construction; 3, 095 permanent Fresno County BOS – 08/31/2011 10

Economic Growth Value Creation for the Central Valley Ø ~$4. 9 billion construction value Ø More than 4, 000 worker-years of construction Ø New sustaining business opportunities • • • Module mounting system manufacturing Inverter power block integration Integrated solar system stewardship Aluminum extrusion Conductor manufacturing Security fencing 11

Requested Board Actions 1. Approve Partial Cancellation of Contract No. 365 By Finding That Jobs and Renewable Energy Substantially Outweigh the Public Interest in Unreasonably Applying Williamson Act 2. Authorize Chairman to Sign Certificate of Tentative Cancellation Based Upon Valuation of Fresno County Assessor of August 19, 2011 3. Uniform Decommissioning and Reclamation Plan Obligations for All Solar Projects Thank You Fresno County BOS – 08/31/2011 12

Appendix Fresno County BOS – 08/31/2011 13

Decommissioning and Restoration • • Decommission costs estimated to be $1. 5 M Plant designed for ease of dismantling Scrap value of aluminum projected to exceed decommissioning costs WSF will cooperate with local requirements and urges and level playing field for enforcement Fresno County BOS – 08/31/2011 14

Electric Grid Exceptional Interconnectivity Gates supports key Fresno substations Gregg Herndon Panoche Mc. Call Fresno County BOS – 08/31/2011 15

Williamson Act Facts Government Code § 51282 (a)(2) permits cancellation when the other issues of public concern substantially outweigh the objectives of the Williamson Act • Creating Jobs and Improving the Economy • Generating Renewable Forms of Electric Energy • Improving state and local electrical infrastructure vs. • Preserving every acre of farmland regardless of its proximity to strategic electrical infrastructure and inconsistent supplies of water Government Code § 51282 (a)(1) also permits cancellation when the cancellation is consistent with the purposes of the Williamson Act. • to maintain the agricultural economy • to assure an adequate and healthful food supply • to preserve an agricultural work force • to discourage premature, unnecessary, and discontiguous development Approving this application will do more to promote these purposes than will denying this application since PG&E will develop solar facilities around Gate Substation anyway. Williamson Act does not require any “emergency” for cancellation Fresno County BOS – 08/31/2011 16

TERRAIN IDEAL FOR BEST MANGEMENT PRACTICES CONSTRUCTION Fresno County BOS – 08/31/2011 17

FRESNO COUNTY FARMING – A PRODUCTIVE TRADITION All values are indexed, CY 2000 = 1. 00 Fresno County BOS – 08/31/2011 18

Farming Not Impaired Productivity gains outpacing both CPI and PPI Biggest issue is lack of consistent water supply Land idling was particularly noteworthy in the southern San Joaquin Valley: five of the region’ s eight counties saw at least 10, 000 acres idled. More than 56, 000 acres were idled in Fresno County alone. “Most of that was related to water – either to drought conditions or to high salinity, ” said Molly Penberth, manager of the FMMP. “Because irrigation ceased, most of that land was reclassified to, for example, grazing land. At the same time, we noted a 29 -percent decrease in the amount of land being converted to urban uses, which is easily explainable by the economic slowdown. ” - from press release introducing 2006 -2008 California Farmland Conversion Report, April 2011 Fresno County BOS – 08/31/2011 19

Economic Growth Fresno is the Best Solar Resource in the State Units: kilowatt-hours per m 2 per year. Translation: How much sunshine hits the ground in a year Takeaways: • Blythe has traditionally been considered the best solar resource in CA • Fresno receives about the same amount of sunshine as Blythe • Fresno actually receives more sun when it is needed most, e. g. , summer A/C demand Fresno County BOS – 08/31/2011 20