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Information Item Memorandum To: Orange County Board of County Commissioners Orange County Manager Frank Clifton From: Orange County Economic Development Department Date: May 28, 2010 Subject: Status update on solar array project on Orange County landfill Background In Fall of 2009, the Orange County Board of County Commissioners (BOCC) approved continued efforts in pursuit of installing a solar array on Orange County's closed Construction & Demolition (C &D) landfill located on Eubanks Road. Since that decision, there has been much movement, and much change, with this project. The purpose of this memorandum is to provide the BOCC with a status update for this project and present a proposed timeline for upcoming tasks. In general, the proposed project will include the installation of a solar array on the closed C &D landfill that will be directly tied into the local utility provider. A primary component of the feasibility of this project is the generous tax credits currently available for solar installations; North Carolina offers a 35% tax credit and the federal government offers a 30% tax credit. Although government entities such as Orange County are ineligible for tax credits, the project can be constructed using a third party finance model, where an outside entity that can utilize the tax credits, will fund the project. The entity that funds the project, or its representative, will direct construction of the solar array, own, operate and maintain the project, and lease this portion of the landfill from the County under a long -term lease agreement. A Request for Proposals (RFP) will be issued to those firms interested in implementing this project requesting a submittal that will include a design of the system and proposed terms for a lease agreement with Orange County. The RFP will stipulate that the project maximize the economic, environmental, and community benefits to taxpayers. An important component of this project will be community education, in both the installation and the operation of the solar system. Numerous conversations have been conducted with various stakeholders to validate the feasibility of the project, and have involved those responsible for permitting, the local utility company, communities in other states that have considered or implemented similar projects, local solar professionals, and local government departments that would be affected. The'Orange County Solid Waste Department has been, and will continue to be, an important partner as this project develops, as this project has the greatest long -term impact on them. Orange County Economic Development — Solar Landfill Project Status Page 1