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2nd Amendment to the IFA for RTRP • Page 3 Riverside is the lead California Environmental Quality Act (CEQA) agency for RTRP and responsible for providing environmental impact studies and for acquiring environmental permits and approvals necessary to construct RTRP. In addition, the Agreement states that when requested to do so by SCE, Riverside will provide information and assist SCE obtain a Certificate of Public Convenience and Necessity (CPCN) from the California Public Utility Commission (CPUC, or Commission). Riverside is responsible for all project related costs including costs incurred by SCE up until the Commission issues a Certificate of Public Convenience and Necessity to SCE. Upon CPUC approval, SCE will reimburse Riverside all payments made to SCE for the Licensing and Permitting of the CAISO Controlled Facilities and all costs including environmental and licensing costs incurred by Riverside related to activities necessary for the construction of the ISO controlled facilities including SCE's Wildlife Switchyard and the Mira Loma -Wildlife -Vista 220 kV loop. If approval for RTRP is not granted by the CPUC, then Riverside will be responsible for all project costs. As noted previously, Riverside is responsible for the cost of the Non-CAISO controlled facilities. The 2010 Agreement includes a Facilities Cost and Payment Schedule. The total amount due SCE under the 2010 Agreement was $8,820,000. Project records reflect that RPU made 25 payments of various amounts between June 2008 and January 2015 for a total amount of $8,820,000. These monies were used by SCE to pay for Licensing and Permitting costs which are 100% reimbursable to RPU as they are directly related to the CAISO Controlled Facilities. Reimbursement to RPU from SCE will occur once the project is approved by the CPUC. Since all of the money contemplated under the 2010 Agreement is now exhausted, Riverside and SCE now desire to amend certain terms of the Agreement as set forth in this Second Amendment to the Agreement to revise the Facilities Cost and Payment Schedule. SCE submitted its application for a Certificate of Public Convenience and Necessity (CPCN) to the CPUC in April 2015. The CPUC deemed the application complete on January 5, 2017. The CPUC issued a Notice of Preparation on January 25, 2017 stating that it is beginning preparation of a subsequent environmental impact report to address changed conditions not considered in the FEIR. The CPUC determined that the proposed Hybrid Route, as submitted by SCE to the CPUC, requires additional environmental screening because it is different that the route that was initially studied in the Final Environmental Impact Report that was certified by the City Council in February of 2013. The Hybrid Route is shown in the figure below. 60 FREEWAY 15 FREEWAY MIRA LOMA SUBSTATION IP ORIGINAL OVERHEAD ROUTE TO VISTA SUBSTATION RELOCATED THE OVERHEAD LINE TO THE WEST SIDE OF WINEVILLE AVENUE OVERHEAD NEW UNDERGROUND ROUTE 15 FREEWAY JURUPA VALLEY OVERHEAD 60 FREEWAY NORTH SCE'S WILDLIFE SWITCHYARD AND RPU'S WILDERNESS SUBSTATION RIVERSIDE 230KV TRANSMISSION ROUTE — THE HYBRID ROUTE