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h. All activities of GSA under or pursuant to this MOU are subject to the availability
of appropriated funds and no provision herein shall be interpreted to require
obligation or payment of funds in violation of the Anti-Deficiency Act, 31 U.S.C.
§ 1341.

IN WITNESS WHEREOF, the Parties have executed this MOU on the dates hereinafter
identified. UNITED STATES OF AMERICA, acting by and through the Administrator of

General Services

hy) >
alu rahe 4/9/2024

Robin Carnahan Date
Administrator

U.S. General Services Adipinistration

Lue 4 ~ N-2024

Kelly Tomblin’ Date
President and Chief

Executive Officer

EI Paso Electric Company



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MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN
THE UNITED STATES GENERAL SERVICES ADMINISTRATION
AND
EL PASO ELECTRIC COMPANY

This non-binding Memorandum of Understanding (MOU) is made and entered into by the United
States General Services Administration (GSA) and El Paso Electric Company (EPE). GSA and
EPE are sometimes referred to herein individually as a Party and collectively as the Parties.

I. Legal Authority: Pursuant to 40 U.S.C. 501(c), GSA is authorized to represent certain
executive agencies in negotiations with public utilities. EPE is entering into this MOU as the retail
electricity provider for its designated service area in Texas and New Mexico.

Il. Purpose: The Parties’ collective goal is to advance the decarbonization of the national
grid, and, as such, the Parties will work collaboratively and expeditiously towards developing a
non-binding carbon pollution-free electricity (CFE) plan (the Plan) that. when fully implemented
by 2030, would result in the Federal customer load within EPE’s service territory using electricity
that is 100 percent attributable to CFE resources on a net annual basis, and at least 50 percent
matched CFE on a 24/7 hourly basis in furtherance of Executive Order 14057.' Further, mutually
collaborating to pursue the sustainability goals described herein provides for the most efficient and
economic path for achieving such goals for the good of the public. GSA and other Federal
customers served by EPE, and other interested electricity customers. Achieving these sustainability
goals benefits the environment and enables the continued expansion of economic renewable and
CFE generation, which creates and provides jobs while increasing the tax base for local and State
economies.

Ill. Background: In accordance with Executive Order 14057 and its associated Implementing
Instructions.” the Federal Government has set the goal to achieve 100% CFE on a net annual basis
by 2030, including 50 percent 24/7 hourly-matched CFE. Federal agencies are also encouraged to
make available Federal lands for the siting of CFE.

+ Executive Order 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (December
8, 2021), available at Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal
Sustainability - The Whi
2 Implementing Instructions for Executive Order 14057 Catalyzing Clean Energy Industries and Jobs Through
Federal Sustainability, The White House Council on Environmental Quality (August 2022), available at 1.0. 14057
Implementing Instructions (sustainability gov)

‘House.


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IV. Complementing the efforts of the Federal Government, EPE has committed’ to 80%
carbon-free energy by 2035,

Vv. Roles.and Responsibilities: GSA and EPE will develop the Plan collaboratively. The
Parties will hold regular meetings and exchange information as may be necessary or desirable to
maintain sustamed progress to development of the Plan. GSA and EPE will determine which
Party. is responsible for preparing thé drafts of the vatious components of the Plan and wiil jointly
review-and comment on materials prepared by the Parties. The Parties will identify.agreémeits
and actidris that miay be-requited to implement the Plan and to achieve the purpose of this MOU.
GSA will coordinate as appropriate with other Féderal agencies with the goal. of maximizing the
participation by, and benefit to, the Federal Government and other electricity consumers.

VIL The Plan:

a. Overview: In developing the Plan, GSA and EPE recognize the critical importance of
EPE’s CFE efforts and will work together to reach the annual and hourly matching-CFE
targets of Executive Order 14057, The Parties further recognize that the. Plan should
provide benefits to the Federal Government-and to EPE’s other customers.

The Parties anticipate that under programs. developed subject to the Plan (1) EPE will
match existing CFE to Federal Government and other participating load and. ensure'that
the total share of CFE for all-other EPE customers is not reduced on a lead ratio basis by
such programs; (2) all costs of such programs, including the net cost of CFE generation
and delivery, and the incremental cost of program administration must be borne by’ the
program participants or those benefiting from the program, with no cost shifts. to non-
participating customers; and (3) GSA will coordinate with other Federal Government
agencies in the development of the Plan.

b. Four Major Emphasis Areas of the Plan: The Parties récognize.a phased approach is
appropriate in.addressing the CFE requitements of Executive Order 14057 and envision
that ihe Plan will include interim CFE milestones. The Plan’s four major emphasis areas
ate:

1. Developing a roadmap for the Fedéral Governnient’s electricity needs in the service
territory served by EPE-to meet the targets set out in the CFE tequirements of
Executive Order |4057;

2. Collaborating, including with other interested stakeholders, to expeditiously design
and file a CFE tariff to enable the Federal Government and, by. extension, other
participating customers to achieve their ‘clean energy goals in EPE service territory;

3. Identifying an initial CFE offering for delivery by 2026 to denionstrate the. Paities’
ability to éxecute on CFE; and

4. The construction and/or acquisition of CFE resources needed to generate: additional
electricity and associated Energy Attribute Certificates (EACS) that aré 100 percent
attributable to CFE resources,

c. Additional Plan Elements: In addition to the four major emphasis areas, the Plan may
include one or more of the following:


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VIL.

ies

Enabling other agencies of the Federal Governinent and other participating custotners
to eventually subscribe-to a CFE time matching tariff.

The Parties assessing the prospect-of EPE constructing, owning, and operating a CFE
generation and/or. énergy stotage systems at Federal facilities in EPE’s service
territory.

EPE developing additional tariffs for dispatchable CFE generation, battery storage,
and flexible demand response to achieve full. 24/7 CFE.

The Parties working together to agsess- opportunities for electrification and. grid-
efficient buildings on Federal sites. within EPE’s service area.

EPE providing open-source hourly generation data in the balancing territory using a
dashboard created by the National Renewable Energy Laboratory (or other provider
to be determined) to validate-meeting the 24/7 hourly CFE match.

Schedule: The Parties, in collaboration with other Federal agenties as appropriate, will
endeavor to develop. the Plan, including a proposed implementation schedule, within 60 days of
the effective date of this MOU.

VIM. Terms and Conditions:

a.

b.

e

This MOU is effective on the date signed by the Parties. The date signed by the last Party
is the effective date of this MOU. This MOU remains in effect for a term of one year from
the effective date unless terminated pursuant to Section VIL.c¢ below.

This MOU may be amended by the mutual written agreement of both Parties through.
issuance of a written supplemental agteement that is signed and dated by beth Parties.

This MOU may. be terminated 60 days after either Party provides, written notice of such
termination.to the other Party.

This MOU is to be construed in a manner consistent with applicable flaws and regulations
and GSA policies and procedures. This MOU neither expands or detracts trom those

p

jowers and authorities vested in the Parties by applicable laws, statues, or regulations.

All actions undertaken pursuant. to this MOU are subject, io, aiid will. be carried out in
compliance with, all applicable laws, regulations, and other legal requirements.

This MOU is. for internal management purposes for each of the Patties. [t is not
legally enforceable and shall not be construed to-create any legal obligations on the
part of either Party. This MOU’ shall not be construed to. provide a private right,
causé of action, of remtedy for or by any person ox entity.

This MOU in no way restricts either Party from participating in any activity with
other public or private agencies, organizations, or individuals.

This MOU is neither a fiscal nor a funds obligation document. Nothing in this MOU
authorizes. or is intended to obligate the Parties to-expend, exchange, or reimburse
funds, services, or supplies, or transfer or receive anything of value.