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Home My WebLink About20210114Hemstreet Exhibit 5.pdfldaho Public Utilities Commission Office of the SecretaryBECEIVED JAN I \ 2021 Boise,ldaho Exhibit 5 Rocky Mountain Power Exhibit No. 5 Page 1 of 13 Case No. PAC-E-21-01 \Mtness: Timothy J. Hemstreet MEMORANDUM OF AGREEMENT This Memorondum of Agreement ("lmplementing Agreement") is entered into between PocifiCorp, o wholly-owned subsidiory of Berkshire Hothowoy Energy, the Koruk Tribe, Yurok Tribe, Stote of Oregon, Stote of Colifornio, ond Klomoth River Renewol Corporotion ("KRRC"), which ore collectively referred to os the "lmplementing Agreement Porties." A. The lmplementing Agreement Porties recognize ond ocknowledge the importonce of the Klomoth River to the livelihood ond culture of Klomoth Bosin Tribes whom hove depended on these resources since time immemoriol. Furthermore, the lmplementing Agreement Porties ore Signotories to the Amended Klomoth Hydroelectric Settlement Agreement ("AKHSA" or "KHSA") ond ore committed to removol of the JC Boyle, Copco 1, Copco 2, ond lron Gote doms in order to ochieve o free-flowing Klomoth River with volitionol fish possoge ("the Project"). B. On September 23,2016, PocifiCorp ond KRRC filed o joint opplicotion with lhe Federol Energy Regulotory Commission ("FERC") lo omend the Klomoth Hydroelectric Project No.2082license by plocing the J.C. Boyle Dom, Copco l, Copco ll, ond lron Gote doms into o seporote license (the "Lower Klomoth Project") ond to tronsfer thot license to KRRC.C. On Morch 15, 2018, FERC opproved the request to seporote License No. 2082 ond creoted the Lower Klomqth Project License No. 14803 ond, on June 21,2018, stoyed the order omending the license pending further oction on the license tronsfer opplicotion.D. On July 16,2020, FERC issued on order opproving the portiol tronsfer of the Lower Klomoth Project license from PocifiCorp individuolly to PocifiCorp ond KRRC jointly ("July l6 Order"). ln so opproving, FERC lifted the stoy of lhe order omending the license but mode its effectiveness coincident with lhe effectiveness of the July '16 Order.E. On July 23,2020, PocifiCorp sent to the KHSA Signotories o letter thot "provides formol Notice of the occurrence of on event specified in omended KHSA section 8.,l l.l ond triggers the cure mechonisms in section 8..l 1.3" ("Section 8.1 I Notice"). F. After severol meetings omong different groups of the lmplementing Agreement Porties, the lmplementing Agreement Porties, with support from Berkshire Hothowoy Energy, hove ogreed to this lmplementing Agreement os o meons of resolving the issues identified in PocifiCorp's Section 8.1 I Notice of this time ond ollowing for the continued implementotion of the KHSA os omended. I Rocky Mountain Power Exhibit No. 5 Page 2 of 13 Case No. PAC-E-21-01 Vvitness: Timothy J. Hemstreet G. The lmplementing Agreement Porties, with support from Berkshire Hothowoy Energy, qgree to this lmplementing Agreement os o demonstrotion of their continuing support ond commitment to dom removol. H. The lmplementing Agreement Porties understond ond ogree thot Oregon ond Colifornio (collectively referred to os "the Stotes") ore octing os defined in the AKHSA by ond through stote deportments ond ogencies with independent regulotory responsibilities ond funding subject to the control of their respective legislotures. ln this ogreement the stote of Colifornio is octing through the Colifornio Noturol Resources Agency.Any commitment to Stote funds in this lmplementing Agreement is contingent upon ond subject to receipt of legislotive oppropriotions or other expenditure outhority specific to ond sufficient to ollow Stotes, in the exercise of their reosonoble odministrotive discretion, to corry out their obligotions herein. The lmplementing Agreement Porties ogree to the following terms os o meons of corrying out their respective rights ond duties under the AKHSA ond ochieving dom removol. 1. Amended License Surrender Applicotion. KRRC ond PocifiCorp will file on omended license surrender opplicotion ("ALSA") with FERC within seven doys of execution of this lmplementing Agreement. The ALSA will cleorly exploin qnd demonstrote the proposed pothwoy for the Stotes to become co-licensees with KRRC, ond the process ond timeline for filing o new license tronsfer opplicotion os described in Section 3 herein, including treotment of the July l6 Order ond confirmotion thot KRRC will continue to be the Dom Removol Entity. 2. Permits ond Authorizotions. KRRC will submit other work products to the opplicoble ogencies thot KRRC deems necessory to obtoin permits ond outhorizotions (including but not limited to biologicol ossessments submitted to the Notionol Morine Fisheries Service ond U.S. Fish ond Wildlife Service) to implement license sunender ond Focilities Removol.t These submissions will occur on o timeline determined by KRRC. PocifiCorp will provide technicol support ond odvice in the development of these submittols ond willjoin in such submittols if necessory. t Copilolized terms not otherwise defined in this ogreement will hove the some meoning os thot in lhe Amended KHSA. 2 Rocky Mountain Power Exhibit No. 5 Page 3 of 13 Case No. PAC-E-21-01 Wtness: Timothy J. Hemstreet 3. License Tronsfer Aoplicotion. o. Upon execution of this lmplementing Agreement, KRRC, PocifiCorp, ond the Stotes will prepore o new license tronsfer opplicotion requesting o tronsfer of the FERC license, which will propose to remove PocifiCorp from the license for the Lower Klomoth Project ond odd the Stotes ond KRRC os co-licensees for the purposes of surrender of the Lower Klomoth FERC license ("New Tronsfer Applicotion"). The New Tronsfer Applicotion will include o description thot it is "building on" the originol license tronsfer opplicotion opproved in the July l6 Order. b. The Stotes, PocifiCorp, ond KRRC will file the New Tronsfer Applicotion by Jonuory 16, 2021, ond will notify FERC thot PocifiCorp ond KRRC ore not occepting co-licensee stolus under the July '16 Order, ond insteod ore seeking the license tronsfer outcome described in the New Tronsfer Applicotion. c. The lmplementing Agreement Porties willjointly support the ALSA ond the New Tronsfer Applicotion filings. Within 30 doys of issuonce of o finol license surrender order by FERC, the Stotes ond KRRC will occept the license tronsfer order moking the KRRC ond Stotes co-licensees for the Lower Klomoth Project unless the Stotes ond PocifiCorp, in consultotion with Koruk ond Yurok Tribes, mutuolly ogree to reject the license surrender order on the bosis thot the terms of the order, including terms of ony federol ogency consultotion concerning the order, ore significontly outside the norm for FERC orders involving mojor project construction or deconstruction in o monner thot creotes significont finonciol risk to the Stotes or PocifiCorp. 4. Due Dilioence. Due diligence conducted by KRRC ond the Slotes reloted to the conveyonce of Porcel B Londs hos identified certoin pre-existing environmentol conditions ("Pre-Existing Environmentol Site Conditions"). Prior to occeptonce of license tronsfer by KRRC ond the Stotes, PocifiCorp sholl:i. resolve of PocifiCorp's sole cost ond expense oll Pre- Existing Environmentol Site Conditions thot con be resolved prior to occeptonce of o license tronsfer, to the reosonoble sotisfoction of the Stotes, ond ii. for Pre-Existing EnvironmentolSite Conditions thot connot be cost effectively resolved prior to occeptonce of o license tronsfer order, enter into on ogreement with KRRC ond the Stotes to resolve of PqcifiCorp's sole cost ond 3 Rocky Mountain Power Exhibit No. 5 Page 4 of 13 Case No. PAC-E-21-01 Wtness: Timothy J. Hemstreet expense such unresolved Pre-Existing Environmentol Site Conditions prior to tronsfer of londs by KRRC to the Stotes. 5. Section 8.1 I Notice. PocifiCorp sholl issue o letter to oll KHSA Signotories to rescind the Section 8..lI notice immediotely upon releose of the press releose onnouncing the execution of this MOA. 6. PUC Processes. Concurrent with submission of the New Tronsfer Applicotion to FERC, PqcifiCorp sholl seek opprovols with the stote utility regulotors ("PUC") to tronsfer PocifiCorp's property interests consistent with the New Tronsfer Applicotion. PocifiCorp sholl request expedited oction to sotisfy the requirement thot PUC opprovols ore obtoined prior to or contemporoneously with occeptonce of license tronsfer by KRRC ond the Stotes. 7. Additionol Contingencv Fundino. To oddress lhe unlikely event thot costs for Focilities Removol exceed the AKHSA Stote Cost Cop, PocifiCorp ond the Stotes ogree to creote on odditionol contingency fund. This odditionol contingency is intended to express PocifiCorp's ond the Stote's full commitment to dom removol. The qdditionol contingency funding will be in the omount of $45 million to ensure Focilities Removolwill occur ond be completed. The lmplementing Agreement Pqrties believe thot funding for Focilities Removol beyond the AKHSA Stote Cost Cop is unlikely to be needed, but hove ogreed thot this odditionol continency fund provides o cleor ond definitive commitment of resources thot will ensure Focilities Removol is completed. PocifiCorp ond the Stotes will eoch contribute $15 million for this odditionol contingency fund ond shore ony cost overruns thot moy occur over this omount equolly. 8. Third-Pqrtv Litiootion. KRRC will serve os the Dom Removol Entity, which includes providing the identified insuronce, bonding, confrocting, ond indemnity provisions to the Stotes ond PocifiCorp. KRRC ond the Stotes, os co-licensees, will corry out the finol license surrender order to effectuote Focilities Removol. Once ownership of the Focilities is tronsferred for purposes of Focilities Removol, the Stotes will defend PocifiCorp to the fullest extent of the low possible, including seeking to dismiss or remove PocifiCorp from ony litigotion osserting domoges orising from horm coused by Focilities Removol (os distinguished from third-porty litigotion thot is the responsibility of PocifiCorp becouse it is reloted to octions token by PocifiCorp in operoting ond mointoining the focilities prior to the Stotes becoming co-licensees). 4 Rocky Mountain Power Exhibit No. 5 Page 5 of 13 Case No. PAC-E-21-01 Witness: Timothy J. Hemstreet 9. Limitotions of lmplementinq Aqreement Porties. o. The lmplementing Agreement Porties understond ond ogree thot the Stotes' qctions described in this lmplementing Agreement ore contingent upon ond subject to receipt of legislotive oppropriotions or other expenditure outhority specific to ond sufficient to ollow the Stotes, in the exercise of their reosonoble odministrotive discretion, to corry out their obligotions described herein. Stote low, future legislotive octions, ond budget limitotions moy constroin the Stotes in corrying out these octions ond nothing in this lmplementing Agreement is intended or sholl be construed to require the obligotion, oppropriotion, or expenditure of ony funds by the Stotes except os otherwise permitted by opplicoble low. b. The lmplementing Agreement Porties understond ond ogree thot the Stotes ore, inter olio, regulotory bodies, ond nothing in this lmplementing Agreement is intended nor should be construed os offecting or limiting the Stotes from complying with their obligotions under opplicoble lows or otherwise corrying out such regulotory obligotions or processes. c. The lmplementing Agreement Porties ocknowledge thot the Stotes' inobility to ochieve their obligotions herein will impoct the other lmplementing Agreement Porties' obligotions. l0.Stolus of KHSA. ln the event thot omendments to the AKHSA ore proposed by ony lmplementing Agreement Porty, oll of the lmplementing Agreement Porties willwork colloborotively ond in good foith to ochieve ogreement concerning such omendments by Jonuory 16,2421. I'l.Support. The lmplementing Agreement Porties ogree to support oll filings ond submittols to regulotory ogencies. This support includes cooperoting to meet submittol/filing timelines ond to refroin from opposing ony filing, or submitting ony opposition through comments, liligotion, or otherwise. This support includes not chollenging opprovols thot KRRC hos olreody obtoined. This support qlso includes covenonts not to sue by ond omong oll lmplementing Agreement Porties pursuont to the KHSA. 12.Good Foith. The lmplementing Agreement Pqrties ogree to support in good foith the implementotion of this ogreement to effectuote Focilities Removol. 5 Rocky Mountain Power Exhibit No. 5 Page 6 of 13 Case No. PAC-E-21-01 Vvitness: Timothy J. Hemstreet I3. Filinq of the lmplementino Aoreement. This lmplementing Agreement os signed by the lmplementing Agreement Porties is o public document ond moy be filed in ony opplicoble regulotory proceeding. l4.Milestones. The lmplementing Agreement Porties propose the ottoched timeline for drowdown ond Focilities Removolsubject to regulotory opprovols. I5. Entire Aqreement. This lmplementing Agreement is intended to implement certoin rights ond responsibilities under the AKHSA of the lmplementing Agreement Porties. Together with the AKHSA, this lmplementing Agreement is the entire ogreement between the lmplementing Agreement Porties. l5.Counterports. This lmplementing Agreement moy be executed in counterports, with seporote signoture poges, to be effective os of the lost signoture dote. IREMAINDER OF PAGE INTENTIONALIY IEFT BTANKI 6 Rocky Mountain Power Exhibit No. 5 Page 7 of 13 Case No. PAC-E-2l-01 Vvitness: Timothy J. Hemstreet IN WITNESS REOF,of the lmplementing Agreement Porties hos execu Me of Agreement. Stote of Colifornio Dote: 11-16-2020 Kote Brown Governor Stote of Oregon Dote Joseph L. Jomes Yurok Tribol Choirmon Dote Russell A. Attebery Koruk Tribol Choirmon Dote 7 Rod<y Mountain Po*rr Exhlbit No. 5 Page 8 of l3 Case No. PAC-E-21-01 Witprs: Timotfty J. HGmstrcet lN WITNESS WHEREOF, eoch of the lmplementing Agreement Portles hos executed this Memorondum of Agreement. Stote of Colifornio ("6,,',- Stote of Oregon Joseph L. Jomes Yurok Tribol Choirmon Russell A. Attebery Koruk Tribol Choirmon Jim Root President, Klomoth River Renewol Corporotion Williom J. Fehrmon CEO ond Choirmon, PocifiCorp President & CEO, Bekshire Hothowoy Energy 7 Rocky Mountain Power Exhibit No. 5 Page 9 of 13 Case No. PAC-E-21-01 \Mtness: Timothy J. Hemstreet lN WITNESS WHEREOF, eoch of the lmplementing Agreement Porties hos executed this Memorondum of Agreement. Govin C. Newsom Governor Stote of Colifornio Dote Kote Brown Governor Stote of Oregon Dqte h Jomes Tribol Choirmon I t - l9'7o&o RussellA. Atlebery Koruk TribolChoirmon Dote 7 Rocky Mountain Power Extribit No. 5 Page 10 of 13 Case No. PAC-E-2l{1 Wtness: Timothy J. Hemstreet lN WITNESS WHEREOF, eqch of the lmplementing Agreemenl Porties hos executed this Memorondum of Agreemenl. Govin C. Newsom Governor Stote of Colifornio Dote:_ Kole Brown Governor Stote of Oregon Joseph L. Jomes Yurok TribolChoirmon ;?z( I dtrt4 RussellA. Attebe$/ Koruk Tribol Choirmon Dote //-12--2c2?4 7 Rodry Mountain Po,ter Extriblt No. 5 Page 11 of 13 Case No. PAC{-21-01 l/vltness: Timothy J. Hemstreet Root , Klomoth River Renewol Corporotion Dote.11t13t2020 Williom J. Fehrmon CEO ond Choirmon, PocifiCorp President & CEO, Berkshire Hothowoy Energy 8 Rocky Mountain PorvBr Extribit No. 5 Page 12 of 13 Case No. PAC-E-21{1 \Mness: Tlmothy J. Hemstreel Jim Root President, Klomolh River Renewol Corporotion Dote:- Williom J CEO ond Choirmon, PocifiCorp President & CEO, Berkhhe Hothowoy Energy Dote t /rn/w I Roclq Mountain Power Exhibit No. 5 Page 13 of 13 Case No. PAC-E-21-01 Witness: Timothy J. Hemstreet Att dtmeot A m23202(zJ;n fr22 llcrffiil.turn d Arrltlncilron Hac'fircc Pattrwav $Sntt Amendcd lkuc CrrErdcr Ao[*.rtixr S.S.nit Amcldcd thnsc Trm$er Agtl(ai(n Drafti/hn4tttrcfin ns $rrtr.trr (har$il! 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