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Information Item <br />Additionally, we are fortunate to have several well- regarded technical resources in the <br />region, and have discussed many aspects of the project with representatives of the NC <br />Solar Center at NCSU and the AppState Energy Center at Appalachian State <br />University. All information collected during these discussions will be consolidated into <br />the RFP that will be issued to potential firms for installation of the solar array. <br />Items of Note <br />Section 1603 -grant in -lieu of credit expires 12/31/2010. In response to the recent <br />recession, the American Reinvestment and Recovery Act (ARRA) made the 30% <br />federal tax credit more attractive by allowing this credit to be exchanged for cash. The <br />modification was made due to the economic conditions which resulted in fewer <br />companies having the income necessary to fully utilize the credits. This program <br />(commonly known as the Section 1603 program) is scheduled to expire December 31, <br />2010. It would be prudent to initiate the solar project at the landfill prior to this program <br />expiring, as this option allows more financial flexibility. Legislation currently under <br />consideration in Congress would extend the 1603 grant program until 2012. <br />NC legislature agenda items. An unanticipated glitch in the Federal 1603 grant <br />in -lieu of tax credits program resulted in confusion on how they are taxed at the state <br />level. Currently in North Carolina, many projects have been notified that the grant in- <br />lieu of credit is considered the receipt of public funds, and is therefore taxable by the <br />state, although this was not the intention of legislators. A simple modification has been <br />proposed in the current session of the General Assembly to clarify this <br />misunderstanding which will remove an unintended hurdle for solar projects. Another <br />related item on the Legislative Agenda is a request to clarify that tax credits can be <br />allocated to the tax liability of different investors for the state tax credit vs. the federal <br />tax credit. This clarification would also allow more flexible financing options and open <br />these larger projects to a wider pool of potential investors. A ruling is expected during <br />the summer legislative section; it would benefit the project to have resolution on these <br />items. <br />Upcoming Activities <br />• Solid Waste consulting engineering firm review. The Solid Waste department is <br />in the process of finalizing a contract with a consulting engineering firm. To <br />ensure that the County -owned landfill is properly protected, the consulting <br />engineering firm will review and revise the RFP as necessary. This work will <br />commence once the firm is under contract. This contract is currently on the June <br />1, 2010 BOCC agenda, <br />• Assemble RFP submittal selection group. A group to review the RFP submittals <br />will be organized so that once the RFP is released, the selection process will be <br />as efficient as possible. This group will include representatives from departments <br />that have been involved in the project to date, including Economic Development, <br />Solid Waste, the Attorney's office, Asset Management and Purchasing, as well <br />as technical advisors from the NC Solar Center. Additional members will be <br />included as necessary. This task will be completed during Summer 2010. <br />Orange County Economic Development — Solar Landfill Project Status <br />Page 2 <br />