Amazon HQ2 Proposal

Riverside Public Utilities (RPU) Program Incentives

NewConstruction Energy Efficiency Rebate Program:

• RPU customers enjoy stable and predictable electric rates with the last rate increase having occurred in 2010. • RPU rates currently average approximately 20-40% less than surrounding Investor Owned Utility (IOU) rates for Time of Use Customers like Amazon. The Amazon HQ2 would be subject to local tax structure that defines the business by taxable components. Administrative office operations are taxed based on the number of employees. Manufacturing, R&D and retail uses are taxed based on a formula of gross receipts. • Office or Distribution: base fee of $141.75 plus $6 for each employee at the location. • Manufacturing/R&D: base fee (first $50,000) $123.24, second tier ($50,000 to $1,000,000) .37 per thousand or fractional part thereof, third tier (over $1,000,000) .13 per thousand or fractional part thereof. Max tax $8,030. • Sales/Retail: base fee (first $25,000) $123.25, second tier ($25,000-$500,000) .87 per thousand or fractional part thereof, third tier (over $500,000) .13 per thousand or fractional part thereof. No Max

reduction or renewable power generation.

• CustomEnergy Technology grants cover up to 75% of project costs (Requires a 25% customer match) with amaximumof $100,000 per customer per year.

• Funding is available for new commercial construction projects that exceed Title 24 baseline standards for energy efficiency. This programapplies to new commercial construction projects andmajor tenant improvements or retrofits of existing buildings. • Incentives are paid at a rate of $0.05 per kWh of annual energy savings in exces of Title 24 baseline standards for electricity-saving measures. • Incentives are capped at a total of $150,000 or 50% of project costs whichever is less, per customer per year. • Incentive amounts increase to $0.06 per kWh of annual energy savings or 50% of project cost, which ever is less with a programcap of $180,000 per customer per year for those new construction projects designed and constructed to LEED- certified designation. CustomEnergy Technology Grants: • RPU is willing to work with Amazon’s staff to explore any potential grant opportunities for Amazon through RPU’s CustomEnergy Technology Grant Program. This grant programcan address customer or industry specific solutions to energy efficiency, demand

• This grant programalso offers project feasibility study grants up to $5000 per project per year.

Commercial Photovoltaic (PV) Incentive Programs: • RPU offers rebates for the installation of commercial solar PV projects in the amount of $0.50 per ACWatt up to $50,000 per commercial customer account, not to exceed 50% of project costs. • Leased systems and Power Purchase Agreements (PPA’s) are not eligible to receive rebates under this program.All projects must secure a rebate reservation fromRPU prior to project construction in order to be eligible for a rebate. RPU Electric Rate Advantages and Incentives: • RPU currently offers some the lowest electric and water rates in Southern California.