ML18107A579
ML18107A579 | |
Person / Time | |
---|---|
Site: | Vogtle ![]() |
Issue date: | 04/17/2018 |
From: | NRC |
To: | NRC/NRO/DNRL/LB4 |
References | |
Download: ML18107A579 (42) | |
Text
Vogtle PEmails From: Hoellman, Jordan Sent: Tuesday, April 17, 2018 9:27 AM To: Vogtle PEmails
Subject:
Draft LAR-18-015 for Pre-submittal meeting on 4/19 Attachments: Draft LAR-18-015 for PSM.pdf Please find the attached draft License Amendment Request (LAR) for this Thursdays public meeting (4/19/2018) regarding draft LAR-18-015 Fire Protection System Non-Safety Cable Spray Removal.
1
Hearing Identifier: Vogtle_COL_Docs_Public Email Number: 255 Mail Envelope Properties (SN6PR09MB2608C2676CC638D6090D6CF1D5B70)
Subject:
Draft LAR-18-015 for Pre-submittal meeting on 4/19 Sent Date: 4/17/2018 9:27:10 AM Received Date: 4/17/2018 9:27:21 AM From: Hoellman, Jordan Created By: Jordan.Hoellman2@nrc.gov Recipients:
"Vogtle PEmails" <Vogtle.PEmails@nrc.gov>
Tracking Status: None Post Office: SN6PR09MB2608.namprd09.prod.outlook.com Files Size Date & Time MESSAGE 210 4/17/2018 9:27:21 AM Draft LAR-18-015 for PSM.pdf 986297 Options Priority: Standard Return Notification: No Reply Requested: No Sensitivity: Normal Expiration Date:
Recipients Received:
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\
PSDQ\
7 1''5$)7
'5$)7
)7
$) (QFORVXUH
QFORVXUH
9RJWOH(OHFWULF*HQHUDWLQJ3ODQW
OHFWULF*HQHUDWLQJ3ODQW 9(*3 8QLWVDQG
OHFWULF*HQHUDWLQJ3ODQW
8
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ
'5$)75HTXHVWIRU/LFHQVH
5)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
)LUH3URWHFWLRQ
)LUH3URWHFWLRQ6\VWHP1R
/$5
7KLV(QFORVXUHFRQVLVWVRISDJHVLQFOXGLQJWKLVFRYHUSDJH
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
7DEOHRI&RQWHQWV
6800$5<'(6&5,37,21
'(7$,/(''(6&5,37,21
7(&+1,&$/(9$/8$7,21
5(*8/$725<(9$/8$7,21
$SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD
3UHFHGHQW
6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ
&RQFOXVLRQV
7
5()(5(1&(6
$)
(19,5210(17$/&216,'(5$7,216
216 5
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
3XUVXDQW WR &)5 F DQG LQ DFFRUGDQFH ZLWK &)5 6RXWKHUQ 1XFOHDU
2SHUDWLQJ &RPSDQ\ 61& KHUHE\ UHTXHVWV DQ DPHQGPHQW WR &RPELQHG /LFHQVH &2/ 1RV
13)DQG13)IRU9RJWOH(OHFWULF*HQHUDWLQJ3ODQW 9(*3 8QLWVDQGUHVSHFWLYHO\
6800$5<'(6&5,37,21
7KHSURSRVHGFKDQJHZRXOGUHYLVHWKH&2/VE\UHPRYLQJWKHFDEOHWUD\VSUD\V\VWHPIURP
WUD\V
WUD\VSUD
,QVSHFWLRQV7HVWV$QDO\VHVDQG$FFHSWDQFH&ULWHULD ,7$$& )LJXUHVDQG
LJXUHV LJXUHV
RI&2/$SSHQGL[&
7KH UHTXHVWHG DPHQGPHQW SURSRVHV FKDQJHV WR SODQWVSHFLILF
VSHFLILF 'HVLJQ
VSHFLILF &RQWURO 'RFXPHQW
'HVLJQ &RQ 'RFXP
'&' 7LHULQIRUPDWLRQLQWKH8SGDWHG)LQDO6DIHW\$QDO\VLV5HSRUW
$QDO\VLV5HSRUW 8)6$5 WKDWLQYROYH
WKDWLQYR FKDQJHV WR &2/ $SSHQGL[ & DQG FRUUHVSRQGLQJ
7 QJ FKDQJHV WR SODQWVSHFLILF
SODQWVSHFLIL 7L LQIRUPDWLRQ 7KLV HQFORVXUH UHTXHVWV DSSURYDO RI WKH OLFHQVH DPHQGPHQW QHFHV LPSOHPHQWWKH&2/$SSHQGL[&DQG8)6$5FKDQJHV(QFORVXUHUHTXHVWVWKHH[HPSWLRQ
KDQJHV(QFORVXUH
KDQJHV(QFORVXUHUHT XHVWVWKHH QHFHVVDU\WRLPSOHPHQWWKHLQYROYHGFKDQJHVWRWKHSODQWVSHFLILF7LHULQIRUPDWLRQ
VWRWKHSODQWVSHFLILF7LHULQIRUPD WKHSODQWVSHFLILF 7LHU
QHFHVVDU\ WR
'(7$,/(''(6&5,37,21
&2/$SSHQGL[&6XEVHFWLRQFRQWDLQV,7$$&IRUWKHILUHSURWHFWLRQV\VWHP
FRQWDLQV,7$$&IRUWKHILUHSUR RQWDLQV,7$$&IRUWKHILUHSURWHFWLR )36 &2/
$SSHQGL[&)LJXUH VKHHWHW DQG)LJXUHVKRZWKH)36DQGLWVSLSLQJZKLFK
DQG)LJXUHVKRZWKH DQG)LJXUHVKRZWKH )
PXVW UHPDLQ IXQFWLRQDO IROORZLQJ
ZLQJ D VDIH
IH VKXWGRZQ HDUWKTXDNH 66( UHVSHFWLYHO\ 7KHVH
5 WZRILJXUHVGHSLFW)36SLSLQJWRFDEOHWUD\VSUD\VLQILUH]RQH$)%
QJWRFDEOHWUD\VSUD\VLQILUH]RQH D\VSUD\VLQILUH]RQH
'HVLJQ)XQFWLRQ5HODWHGWR$FWLYLW\
HGWR$FWLYLW\
HGWR$FWLYLW\
7KH)36LVDQRQVDIHW\UHODWHGQRQVHLVPLFV\VWHPFRQVLVWLQJRIILUHGHWHFWLRQDQGDODUP
QVDIHW\UHODWHGQRQVHLVPLFV\V QVDIHW\UHODWHGQRQVHLVPLFV\VWHP
$)
O\DQGDXWRPDWLFDQGPDQXDOILUH
\DQGDXWRPDWLFDQGPDQXDOILUH
ILUHZDWHUVXSSO\DQGDXWRPDWLFDQGPDQXDOILUHVXSSUHVVLRQWRSUHYHQWILUHVDQGPLQLPL]H
HVVKRXOGDILUHRFFXU
RXOGDILUHRFFXU
FRQVHTXHQFHVVKRXOGDILUHRFFXU
7KHGHVLJQRIWKH)36PHHWVWKHDSSOLFDEOHUHTXLUHPHQWVRI1)3$³6WDQGDUGIRU)LUH
VLJQRIWKH)36PHHW VLJQRIWKH)36PHHWVWKHDSSOLFDE 3URWHFWLRQIRU$GYDQFHG/LJKW:DWHU5HDFWRU(OHFWULF*HQHUDWLQJ3ODQWV'DQG185(*
HFWLRQIRU$GYDQFHG/LJKW:
HFWLRQIRU$GYDQFHG/LJKW:DWHU5H 6WDQGDUG
DQGDUG 5HYLHZ 3ODQ 653 6H6HFWLRQ ³)LUH 3URWHFWLRQ 3URJUDP' 5HYLVLRQ -XO\
6HFWL
LQFOXGLQJ%UDQFK7HFKQLFDO3RVLWLRQ %73 63/%³*XLGHOLQHVIRU)LUH3URWHFWLRQ
LQFOXGLQJ%UDQFK7HFKQLFDO3 IRU 1XFOHDU 3RZHU 3ODQWV
3ODQWV 5HYLVLRQ
5HY -XO\ 7KH ILUH SURWHFWLRQ SURJUDP XWLOL]HV WKH
JXLGDQFHRIYDULRXVLQGXVWU\DQGUHJXODWRU\GRFXPHQWVLQFOXGLQJWKDWSURYLGHGLQ5HYLVLRQ
LGDQFHRIYDULRXVLQGXV LGDQFHRIYDULRXVLQGXVWU\D RI5HJXODWRU\*XLGH)LUH3URWHFWLRQIRU1XFOHDU3RZHU3ODQWV
HJXODWRU\*XLGH
HJXODWRU\*XLGH 5* +RZHYHU
DVLQGLFDWHGLQ8)6$57DEOH5HJXODWRU\*XLGH6HFWLRQ&URVV5HIHUHQFH5*
DWHGLQ8)6$57 LVQRWDSSOLFDEOHWRWKH$3GHVLJQ5*UHFRJQL]HVWKHXVHRISDVVLYHILUHVWRSVLQ
LFDEOHWRWKH OLHXRIZDWHUVSUD\V\VWHPV
VSUD\V
,Q DFFRUGDQFH ZLWK %73 &0(% VSHFLDO VHLVPLF GHVLJQ UHTXLUHPHQWV DUH DSSOLHG WR
SRUWLRQV RI WKH PDQXDO ILUH VXSSUHVVLRQ VWDQGSLSHV V\VWHP ORFDWHG LQ DUHDV FRQWDLQLQJ
HTXLSPHQW UHTXLUHG IRU VDIH VKXWGRZQ IROORZLQJ D VDIH VKXWGRZQ HDUWKTXDNH 66( :LWK
WKHH[FHSWLRQRIWKHVHLVPLFVWDQGSLSHV\VWHPUHTXLUHPHQWWRSURYLGHZDWHUWRWKHILUHKRVH
YDOYHV LQ WKH VHUYLQJ DUHDV FRQWDLQLQJ HTXLSPHQW UHTXLUHG IRU VDIH VKXWGRZQ IROORZLQJ DQ
66(WKHUHPDLQLQJSRUWLRQVRI)36LVQRWUHTXLUHGWRUHPDLQIXQFWLRQDOIROORZLQJDQ66(
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
7KH )36 DOVR SHUIRUPV D VLQJOH VDIHW\UHODWHG IXQFWLRQ RI FRQWDLQPHQW LVRODWLRQ GXULQJ
GHVLJQEDVLVDFFLGHQWVIRUWKHILUHSURWHFWLRQZDWHUVXSSO\OLQHWKDWSHQHWUDWHVFRQWDLQPHQW
7KH FRQWDLQPHQW LVRODWLRQ YDOYH DQG WKH SRUWLRQ RI SLSLQJ WKDW PDLQWDLQ WKH LQWHJULW\ RI WKH
FRQWDLQPHQWSUHVVXUHERXQGDU\DUHVHLVPLF&DWHJRU\,$60(&ODVV
$VGLVFXVVHGLQ8)6$56XEVHFWLRQWKH$3FRQWDLQPHQWFRQVLVWVRIDVLQJOHILUH
RQVLV RQVLVW DUHD WKDW LV GLYLGHG LQWR VHYHUDO ILUH ]RQHV 7KH FRQWDLQPHQW ILUH ]RQH ERXQGDULHV
ERX FUHGLW
VWUXFWXUDOEDUULHUVDQGGLVWDQFHWKDWSK\VLFDOO\VHSDUDWHRQHILUH]RQHIURPDQRWKHUDQGRU
H]RQH H]RQHIURPDQR
GLVWDQFHVWKDWLQKLELWILUHSURSDJDWLRQIURPRQH]RQHWRDQRWKHU
KHU
&RPSOHWHILUHEDUULHUVHSDUDWLRQFDQQRWEHSURYLGHGLQFRQWDLQPHQWEHFDXVHRIWKHQHHGWR
RQWDLQPHQWEHFDXVHRIWKHQHH RQWDLQP FDXVH PDLQWDLQ WKH FLUFXODWLRQ RI FRQWDLQPHQW DWPRVSKHUH JDVHV IRU SXUSRVHV VXFK DV SDVVLYH SDVV RI UHGXQGDQW VDIH VKXWGRZQ FRPSRQHQWV
7 FRQWDLQPHQW FRROLQJ 7KHUHIRUH WKH ILUH KD]DUGV DQDO\VHV
QDO\VHV LQ FRQWDLQPHQW
QDO\VHV ILUH ]RQH VHSDUDWLRQ ZLWK WKH HVWDEOLVKPHQW RI ERXQGDULHV VW ORFDWLRQRIVDI RQHDUHGHVLJQHG V VXFK WKDW
FRQWDLQPHQW LV
VWUXFWXUH
VWUX V SUHGLFDWHG
HW\UHODWHGHTXLSPH DW D ILUH ZKLFK
Z GDPDJHV
SUHGLFDWH SUHG GLVWDQFH GLVWDQ WKDW
FWXUH DQG GLVWDQF LQKLELWILUHSURSDJDWLRQIURP]RQHWR]RQH7KHORFDWLRQRIVDIHW\UHODWHGHTXLSPHQWDQGWKH
ORFDWLRQRIVDIHW\UHODWHGHTXLSPH URXWLQJRI&ODVV(HOHFWULFDOFDEOHLQHDFKILUH]RQHDUHGHVLJQHGWRHQKDQFHWKHVHSDUDWLRQ
UH]RQHDUHGHVLJQHGWRHQKDQFHWK GDPDJHV VDIH VKXWGRZQ
RQ
$)
FRPSRQHQWV LQ RQH ILUH ]RQH GRHV QRW SURSDJDWH WR WKH H[
VDIHVKXWGRZQFRPSRQHQWVLQDQRWKHUILUH]RQH
URRP QXPEHU DQG
GLVWDQFH DQG VWUXFWXUDO
VHSDUDWLRQ RI WKH
HUILUH]R HUILUH]RQH
WKDW
H[WHQW WK DW LW GDPDJHV
GD
$QRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVSURYLGHGIRUQRQVDIHW\UHODWHGHOHFWULFDO
SSUHVVLRQV\VWHPLVSURYLGHGIRUQ VLRQV\VWHPLVSURYLGHGIRUQ FDEOHVURXWHGLQRSHQFDEOHWUD\VLQILUH]RQH$)%
SDUW RI URRP QXPEHU
UHGXQGDQW
H]RQH$)% ILUH]RQH% ZKLFKLV
WUD\VLQILUH]RQH$)%
ZKRVH IORRU
RU LV DW HOHYDWLRQ 6DIHW\UHODWHG FDEOHV LQ
G HOVHZKHUH DUH URXWHG LQ FORVHG DO EDUULHUV VXFK DV FRQGXLW
UDO
DIHW\UHODWHGFDEOHV$EVHQWW DIHW\UHODWHGFDEOHV$EVHQWWKHDE H QRQVDIHW\UHODWHG HOHFWULFDO FDEOH ZDWHU VSUD\ VXSSUHVVLRQ
SSUHVVLRQ V\VWHP LV WR SURYLGH
FORVHG FDEOH WUD\V RU FRQGXLW 3K\VLFDO
FRQG DQG FFORVHG FDEOH WUD\V DUH FUHGLWHG IRU
SURWHFWLRQRIWKHVDIHW\UHODWHGFDEOHV$EVHQWWKHDELOLW\WRLPSOHPHQWFRPSOHWHILUHEDUULHU
FDEOH WUD\V WKH SXUSRVH RI WKH RSHQ QR))OH
FD SURYLGH DGGLWLRQDO DVVXUDQFH WKDW D ILUH ZLOO QRW
5 SURSDJDWHYLDWKHQRQVDIHW\UHODWHGHOHFWULFDOFDEOHWUD\VLQILUH]RQH%WRDQRWKHUILUH
YLDWKHQRQVDIHW\UHODWHGHOHFWULFDO
]RQH $FWXDWLRQ
QRQVDIHW\UHODWHGHOHFWULFDO
XDWLRQ RI WKH VXSSUHVVLRQ
FWXDWLRQ VXSSU DUGFRQWDLQPHQWLVRODWLRQ DUGFRQWDLQPHQWLVRODWLRQYDOYH7K DFWXDWHGWRSUHYHQWVSXULRXVDFWXDWLRQ
XDWHGWRSUHYHQWVSXULRXVDFWX XDWHGWRSUHYHQWVSXULRXVDFWXDWLRQ 7KH )36 RSHQQR))OH VXSSUHVVLRQ
VXSSUHVVL V\VWHP
V\VWHP UHTXLUHV D PDQXDO RSHUDWRU DFWLRQ WR RSHQ WKH
RXWERDUGFRQWDLQPHQWLVRODWLRQYDOYH7KHRXWERDUGFRQWDLQPHQWLVRODWLRQYDOYHLVPDQXDOO\
V\VWHP WKDW IHHGV LQWR FRQWDLQPHQW LV XVHG WR VSUD\
QRQVDIHW\UHODWHGRSHQFDEOHWUD\V7KH)36RSHQQR))OHVXSSUHVVLRQV\VWHPLVGHVLJQHG
RQVDIHW\UHODWHGRSHQFD RQVDIHW\UHODWHGRSHQFDEOHW
' WRPLWLJDWHH[WHQVLYHEXUQLQJRIQRQVDIHW\UHODWHGFDEOHVWKDWFRXOGSURSDJDWHWRDQRWKHUILUH
PLWLJDWHH[WHQVLYHEXUQ PLWLJDWHH[WHQVLYHEXUQLQJ
]RQHDQGDGYHUVHO\DIIHFWILUHVDIHVKXWGRZQFRPSRQHQWVLQDQRWKHUILUH]RQHGXULQJDILUH
DQGDGYHUVHO\DIIHF HYHQW
7KHUHLVQRFUHGLWWDNHQIRUWKH)36RSHQQR))OHVXSSUHVVLRQV\VWHPWRRSHUDWHIROORZLQJD
UHGLW
VHLVPLF HYHQW DV WKHUH DUH QR UHTXLUHPHQWV WR FRQVLGHU D ILUH HYHQW FRQFXUUHQW ZLWK DQ\
RWKHUSODQWDFFLGHQWLQFOXGLQJDVHLVPLFHYHQW
5HDVRQIRU$FWLYLW\
6DIHW\UHODWHG FDEOHV DUH URXWHG LQ FORVHG FDEOH WUD\V RU FRQGXLW )RU RSHQ FDEOH WUD\V
ZKLFK UHSUHVHQW WKH RQO\ VLJQLILFDQW LQVLWX FRPEXVWLEOHV LQ ILUH ]RQH % GXULQJ SRZHU
RSHUDWLRQVDQRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVSURYLGHG7KHSXUSRVHRIWKH
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
ZDWHUVSUD\VXSSUHVVLRQV\VWHPLVWRSUHYHQWDILUHLQWKHQRQVDIHW\UHODWHGHOHFWULFDOFDEOHV
LQRSHQFDEOHWUD\VIURPSURSDJDWLQJWRDQRWKHUILUH]RQHIURPILUH]RQH%
7KHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPFRQWUROYDOYHVDUHLQLWLDWHGDXWRPDWLFDOO\
XSRQ UHFHLSW RI D ILUH GHWHFWLRQ VLJQDO EDVHG RQ KHDW GHWHFWRUV ORFDWHG LQ WKH
QRQVDIHW\UHODWHG FDEOH WUD\ 7KH LQLWLDWLRQ RI ZDWHU VXSSUHVVLRQ VSUD\ VSUD UHOLHV RQ WKH
VSUD\
RSHUDWLRQ RI PXOWLSOH DFWLYH FRPSRQHQWV VXFK DV WKH ILUH GHWHFWLRQ RQ V\VWHP
V\VWHP ZKLFK XSRQ
V\
LQLWLDWLRQ RI D ILUH VLJQDO KHDW GHWHFWLRQ WKH FRQWURO SDQHO VHQGV
GV D VLJQDO
V DFWLYDWH WKH
WR D RSHQLQJRI)36RSHQQR))OHZDWHUVSUD\PRWRUFRQWUROYDOYHV
+RZHYHU WKH RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP VWHP LV QRW IXOO\
LV QRW XOO\ DXWRPDWLF
DXW DQG
DQG WR
SUHFOXGHLQDGYHUWHQWDFWXDWLRQDQGXQQHFHVVDU\ZDWHUGHOXJHRIWKHPDLQWHQDQFHIORRUDQG
GHOXJ GHOXJHRI WKHPDLQWHQDQFHIORRUD QWHQDQ 7
DGMDFHQWDUHDVLQFRQWDLQPHQWPDQXDORSHUDWRUDFWLRQLVUHTXLUHGWRRSHQWKHRXWERDUG)36
RQLVUH RQLVUHTXLU FRQWDLQPHQW LVRODWLRQ YDOYH 7KHUH DUH QR QRUPDOO\ FORVHG
ULQLWLDWLRQRIWKHK WKH PRWRU FRQWURO YDOYH ZLOO EH GLVFKDUJHG
HGWRRSHQWKHRXWERDUG LDWLRQRIWKHKHDWGHWHFWLRQDQG HG WKURXJK
HD JK WKH QR))OHV
QR))
HRXWER FORVH LVRODWLRQFRQWURO
GRZQVWUHDP RI WKH RXWERDUG )36 FRQWDLQPHQW LVRODWLRQ YDOYH :DWHU
RQWURO YDOYHV
LVRODWLRQFRQWURO
- DWHU WKDW HQWHUVWKH
- D HQWHUV
QR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPDIWHULQLWLDWLRQRIWKHKHDWGHWHFWLRQDQGDFWLYDWLRQRI
LQWR WKH RSHQ
R RSHQ
QRQVDIHW\
$)
UHODWHGFDEOHWUD\VRIILUH]RQH%
7KHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPUHTXLUHVPRUHWKDQRSHQQR))OHVDQG
UHVVLRQV\VWHPUHTXLUHVPRUHWK VVLRQV\VWHPUHTXLUHVPRUH DQ DVXEVWDQWLDODPRXQWRISLSLQJDQGDVVRFLDWHGSLSLQJVXSSRUWVLQRUGHUWRDFFRPSOLVKLWVILUH
DQGDVVRFLDWHGSLSLQJVXSSRUWVLQR VRFLDWHGSLSLQJVXSSRUWVLQR VXSSUHVVLRQIXQFWLRQ7KHVHSLSLQJDQGVXSSRUWVLQYROYHFRPSOH[GHVLJQFRQVWUXFWLRQDQG
SLSLQJDQGVXSSRUWVLQYROYHFRPSOH GVXSSRUWVLQYROYHFRPSOH PDLQWHQDQFHLVVXHVDQGDGGWRWKHFRQJHVWLRQLQWKHDUHDRIURRPQXPEHU
GGWRWKHFRQJHVWLRQLQWKHDUHDRIU HVWLRQLQWKHDUHDRIU 7KHUHIRUHWRUHGXFHWKHQHHGIRUPDQXDOYDOYHPDQLSXODWLRQRXWVLGHWKHFRQWUROURRPDQGWR
KHQHHGIRUPDQXDOYDOYH KHQHHGIRUPDQXDOYDOYHPDQLSXOD UHGXFHWKHSLSLQJVXSSRUWFRQJHVWLRQDQGFRQVWUXFWDELOLW\LVVXHVLQFRQWDLQPHQWFDXVHGE\
XSSRUWFRQJHVWLRQDQGFRQVW XSSRUWFRQJHVWLRQDQGFRQVWUXFWDE WKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLWLVSURSRVHGWRUHSODFHWKHRSHQQR))OH
ZDWHUVSUD\VXSSUHVVLRQV\VWHP ZDWHUVSUD\VXSSUHVVLRQV\VWHPL ZDWHUVSUD\VXSSUHVVLRQV\VWHPIRURSHQQRQVDIHW\UHODWHGFDEOHWUD\VLQILUH]RQH%
XSSUHVVLRQV\VWHPIRURSHQQRQVDI SUHVVLRQV\VWHPIRURSHQQRQVDI 5
ZLWKSDVVLYHILUHVWRSV7KHSDVVLYHILUHVWRSVZLOOEHSODFHG
FDEOH WUD\V
HILUHVWRSV7KHSDVVLYHILUHVWRSV WRSV7KHSDVVLYHILUHVWRSV V DW WKH SRLQW ZKHUH
D\V
LQWKHRSHQQRQVDIHW\UHODWHG
ZKH WKH FDEOH WUD\V WUDQVLWLRQ RXW RI ILUH ]RQH % 7KH
SXUSRVHRIWKHSDVVLYHILUHVWRSVLVWRSUHYHQWDILUHLQWKHRSHQQRQVDIHW\UHODWHGHOHFWULFDO
VHRIWKHSDVVLYHILUHVWR VHRIWKHSDVVLYHILUHVWRSVLVWRSUH FDEOHWUD\VLQILUH]RQH%IURPSURSDJDWLQJWRDQDGMDFHQWILUH]RQH
OHWUD\VLQILUH]RQH%IU OHWUD\VLQILUH]RQH%IURPSU
'HVFULSWLRQRI$FWLYLW\
' 7KH
H SDVVLYH ILUH VWRSV WKDW
WKD DUH SURSRVHG WR UHSODFH WKH RSHQQR))OH ZDWHU VSUD\
VXSSUHVVLRQV\VWHPLQILUH]RQH%FRQVLVWRIDQHQJLQHHUHGDQGWHVWHGFRQILJXUDWLRQ
HVVLRQV\VWHPLQILU HVVLRQV\VWHPLQILUH WKDWZLOOEHPRXQWHGLQWKHQRQVDIHW\UHODWHGRSHQFDEOHWUD\V7KHVHSDVVLYHILUHVWRSVZLOO
EHPRXQWHGLQ
EHSODFHGLQWKHQRQVDIHW\UHODWHGRSHQFDEOHWUD\VQHDUWKHERXQGDU\RIILUH]RQH%
QWKHQRQ SULRU WR ZKHUH WKH WUD\V FRQWLQXH LQWR DGMDFHQW ILUH ]RQHV 7KH SXUSRVH RI WKH SDVVLYH ILUH
H WKH VWRSVLVWRSUHYHQWDILUHLQWKHQRQVDIHW\UHODWHGRSHQFDEOHWUD\VRIILUH]RQH%IURP
SURSDJDWLQJWRDQRWKHUILUH]RQH
$V QRWHG LQ 8)6$5 6XEVHFWLRQ $ ³&RQWDLQPHQW6KLHOG %XLOGLQJ' ILUH ]RQH %
LQ6XEVHFWLRQ$ LVWKHPDLQWHQDQFHIORRU QRUWKKDOI $VVKRZQLQ8)6$5)LJXUH
$6KHHWRI³1XFOHDU,VODQG)LUH$UHDV3ODQDW(OHYDWLRQ 'URRP
QXPEHULVWKHPDLQWHQDQFHIORRUDWHOHYDWLRQ 5RRPLVORFDWHGWRWKH
SODQWQRUWKRIWKHUHDFWRUFDYLW\FRQWLQXHVHDVWDQGVRXWKDURXQGWKHRXWVLGHRIWKHVWHDP
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
JHQHUDWRUHQFORVXUHDQGWKHQZHVWWRWKHHDVWZDOORIWKHUHIXHOLQJFDYLW\5RRPLV
GLYLGHGLQWRWZRILUH]RQHV)LUH=RQH$)$LVWKHSODQWVRXWKHDVWDUHDRI5RRP
DQG)LUH=RQH$)%LVWKHSODQWQRUWKDUHDRIURRP([FHSWIRUWKH
FLUFXLWRXV DUUDQJHPHQW RI URRP QXPEHU DPRQJ WKH FRQWDLQPHQW LQWHUQDO VWUXFWXUHV
UHDFWRUFDYLW\DQGVWHDPJHQHUDWRUHQFORVXUHV WKHUHDUHQRSK\VLFDOEDUULHUVEHWZHHQILUH
]RQHV$)$DQG$)%DWHOHYDWLRQ
$V GLVFXVVHG LQ 8)6$5 6XEVHFWLRQ $ ³)LUH =RQH H $) %'
$) WKH
FRPEXVWLEOHPDWHULDOVLQWKLVILUH]RQHFRQVLVWVSULPDULO\RIFDEOHLQVXODWLRQLQWKHWHUPLQDWLRQ
HLQVXODWLR HLQVXODWLRQLQWKHWH ER[HV DQG RSHQ FDEOH WUD\V $V VKRZQ LQ 7DEOH $ ³)LUH 3URWHFWLRQ
3URWHF 6XPPDU\'
6XPP FRPEXVWLEOHORDGLQJVDUHFRQVHUYDWLYHO\LQFUHDVHGLQILUH]RQH H]RQH %ZLWKWKHDGGLWLRQRI
H]RQH %ZLWKWKHDGGLWLR
%ZLWK
XQVSHFLILHG WUDVK DQG YRODWLOHV RQO\ H[SHFWHG GXULQJ XULQJ UHIXHOLQJ
UHIXHOLQJ RXWDJH
DJH PPDLQWHQDQFH
PDLQWHQDQ DFWLYLWLHV VXFKWKDWDORQJZLWKWKHNQRZQFDEOHLQVXODWLRQFRPEXVWLEOHVWKHHTXLYDOHQWILUH
XODWLRQFRPEXVWLEOHVWKHHTXLY XODWLRQFRPEXVWLEOHVWKHHTXLYDOHQ GXUDWLRQLVFDOFXODWHGWREHOHVVWKDQWKUHHKRXUV
$V GLVFXVVHG LQ 8)6$5 6XEVHFWLRQ $ ³7KH TXDQWLW\
TXD DQG
DQG DUUDQJHPHQW
DUUD RI
FRPEXVWLEOHPDWHULDOVLQWKLVILUH]RQHDQGWKHFKDUDFWHULVWLFVRIWKHEDUULHUVWKDWVHSDUDWH
QGWKHFKDUDFWHULVWLFVRIWKHEDUULHU DUDFWHULVWLFV WKLV ]RQH IURP RWKHU ILUH ]RQHV DUH VXFK WKDW D ILUH ZKLFK Z GDPDJHV
GDPD JH VDIH VKXWGRZQ
FRPSRQHQWV LQ WKLV ILUH ]RQH GRHV QRW SURSDJDWH WR WKH H[WHQW
H[WHQ WKDW LW GDPDJHV UHGXQGDQW
VDIHVKXWGRZQFRPSRQHQWVLQDQRWKHUILUH]RQH'
WKHUILUH]RQH'
HUILUH]RQH'
$V VWDWHG LQ WKH 8)6$5 6XEVHFWLRQ
XEVHFWLRQ $ ³RSHQQR))OH
³RSHQQR)) ZDWHU VSUD\ VXSSUHVVLRQ
V\VWHPVDUHSURYLGHGIRUQRQVDIHW\UHODWHGHOHFWULFDOFDEOHVURXWHGLQRSHQFDEOHWUD\VLQILUH
RQVDIHW\UHODWHGHOHFWULFDOFDEOHVUR HGHOHFWULFDOFDEOHVUR
]RQH$)%SURYLGLQJDGGLWLRQDODVVXUDQFHWKDWDILUHZLOOQRWSURSDJDWHEHWZHHQ
SURYLGLQJDGGLWLRQDODVVXU SURYLGLQJDGGLWLRQDODVVXUDQFHWKDW WKHVHILUH]RQHV'
)LUHEDUULHUVHSDUDWLRQLVQRWUHTXLUHGZLWKLQWKHFRQWDLQPHQWILUHDUHD
UDWLRQLVQRWUHTXLUHGZLWKLQWKH
UDWLRQLVQRWUHTXLUHGZLWKLQWKHFR LQFOXGLQJWKHPLGGOH
DQGXSSHUDQQXOXV]RQHVRIWKHVKLHOGEXLOGLQJ OXV]RQHVRIWKHVKLHOGEXLOGLQJ )LUHSURWHFWLRQZLWKLQWKHFRQWDLQPHQWILUH
QXOXV]RQHVRIWKHVKLHOGEXLOGLQJ DUHDLVDFFRPSOLVKHGE\PLQLPL]LQJWKHTXDQWLW\RIFRPEXVWLEOHPDWHULDOVDQGE\WKHXVHRI
RPSOLVKHGE\PLQLPL]LQJWKHTXDQWL KHGE\PLQLPL]LQJWKHTXDQWL VSDWLDO VHSDUDWLRQ
HSDUDWLRQ FRPELQHG ZLWK DSSURSULDWH
SDUDWLRQ FRPELQHG DSSURSU ILUH GHWHFWLRQ DQG PDQXDO ILUH SURWHFWLRQ
FDSDELOLWLHV)LUHSURWHFWLRQIHDWXUHVDUHVXIILFLHQWWRHQVXUHWKDWRQHWUDLQRIVDIHVKXWGRZQ
LOLWLHV)LUHSURWHFWLRQIHDWXUHVDUHV OLWLHV)LUHSURWHFWLRQIHD HTXLSPHQWZLOOUHPDLQXQGDPDJHGLQWKHHYHQWRIDILUHLQVLGHFRQWDLQPHQW
LSPHQWZLOOUHPDLQXQGDPDJH LSPHQWZLOOUHPDLQXQGDPDJHGLQWK
)URPWKHVWDQGSRLQWRIILUH]RQHVHSDUDWLRQILUH]RQH%LVSK\VLFDOO\VHSDUDWHGIURP
)URPWKHVWDQGSRLQWRIILUH]RQH
ILUH]RQHVDWORZHUHOHYDWLRQVE\WKHPDLQWHQDQFHIORRUZKLFK
UH]RQHVDWORZHUHOHYDW UH]RQHVDWORZHUHOHYDWLRQVE KDVDFRQFUHWHWKLFNQHVVRI
PRUH
UH WKDQ RQH IRRW H[FHSW
H[FHS IRU DFFHVV VWDLUZD\V DQG KDWFKHV )LUH ]RQH % LV
H[
VHSDUDWHGIURPWKHRSHUDWLQJGHFNDERYHE\DFHLOLQJWKDWKDVDFRQFUHWHWKLFNQHVVRIPRUH
DWHGIURPWKHRSHUD DWHGIURPWKHRSHUDW WKDQRQHIRRWH[FHSWIRUVHYHUDORSHQLQJV
IRRWH[FHSWIR DFFHVVVWDLUZD\HOHYDWRUHWF 7KHSHULPHWHURI
ILUH ]RQH % FRQVLVWV
F RI WKH VWHHO FRQWDLQPHQW YHVVHO WKH VWHHO ZDOO RI WKH LQ
FRQWDLQPHQW UHIXHOLQJ
HIXH ZDWHU VWRUDJH WDQN WKH QRQFRPEXVWLEOH HQFORVXUH IRU WKH GLYLVLRQ %
DQG'SHQHWUDWLRQVDQGUDFHZD\V URRPQXPEHUILUH]RQH$) DQGWKH
UHDFWRU FDYLW\ DQG VWHDP JHQHUDWRU HQFORVXUH ZDOOV KDYLQJ D FRQFUHWH WKLFNQHVV RI PRUH
WKDQRQHIRRW
,VVXHVZLWKH[LVWLQJRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHP
$V VKRZQ LQ &RPELQHG /LFHQVH &2/ $SSHQGL[ & )LJXUH ³%RXQGDULHV RI )LUH
3URWHFWLRQ 6\VWHP 3LSLQJ 7KDW 0XVW 5HPDLQ )XQFWLRQDO )ROORZLQJ D 6DIH 6KXWGRZQ
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
(DUWKTXDNH'WKHFXUUHQW)36RSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPLVFRQILJXUHGLQD
ILYHEUDQFKPDQLIROG7KHILYHEUDQFKHVFRQVLVWRIRQHODUJHUV\VWHPRIDSSUR[LPDWHO\
QR))OHVDQGVPDOOHUV\VWHPVRIDSSUR[LPDWHO\QR))OHVHDFKIRUDWRWDORIDSSUR[LPDWHO\
QR))OHV
7KHFXUUHQW)36RSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPLVPHFKDQLFDOO\FRPSOH[ZLWK
KDQLFD DSSUR[LPDWHO\ RSHQ QR))OHV DQG DVVRFLDWHG SLSLQJ DQG VXSSRUWV
SSRUWV
SSRU WV 7KH
7KH VXSSUHVVLRQ
V\VWHP UHOLHV RQ PXOWLSOH DFWLYH FRPSRQHQWV GHWHFWLRQ V\VWHP P IXQFWLRQLQJ
IXQ DQG
D FRQWURO
YDOYHV RSHQLQJ DQG PDQXDO RSHUDWRU DFWLRQ DFNQRZOHGJLQJ QJ D ILUH
ILUH DDODUP DQG RSHQLQJ
PDQXDO FRQWDLQPHQW LVRODWLRQ YDOYH EHIRUH ILUH VXSSUHVVLRQQ WDNHV
RQ QRQVDIHW\
WDNHV SODFH LLQ WKH QRQV UHODWHG RSHQ FDEOH WUD\V )DLOXUH RI DQ\ RI WKHVH VWHSV ZRXOG UUHVXOW
SV ZRX HVXOWW LQ WKH
WK V\VWHP QRW
IXQFWLRQLQJDVGHVLJQHG
ZDWHU VSUD\ DQG GDPDJH WR HTXLSPHQW LQVLGH
7 7KHFXUUHQWRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPDOVRUHTXLUHVDQDQQXDOSDUWLDOWULS
V\VWHPDOVRUHTXLUHVDQDQQXDOSD WHVW WR PHHW 1)3$ 6WDQGDUG IRU WKH ,QVSHFWLRQ
HFWLRQ 7HVWLQJ DQG 0DLQWHQDQFH RI :DWHU
SHFWLRQ
%DVHG)LUH3URWHFWLRQ6\VWHPVZKLFKLISHUIRUPHGLQFRUUHFWO\FRXOGUHVXOWLQLQDGYHUWHQW
HUIRUPHGLQFRUUHFWO\FRXOGUHVXOWLQ UPHGLQFRUUHFWO\
QVLGH FRQWDLQPHQW
QWDLQPHQW $OVR
$ 1)3$
1)3$
UHTXLUHV D IXOO
$)
IORZWHVWRIWKHV\VWHPHYHU\WKUHH \HDUVZKLFKLVQRWIHDVLEOHIRUWKHRSHQQR))OHV\VWHP
LQVLGH FRQWDLQPHQW EHFDXVH RI WKH
GDPDJHWRHTXLSPHQWLQVLGHFRQWDLQPHQW
DUVZKLFKLVQRWIHDVLEOH DLQPHQW
PHQW
7KH FRPSOH[LW\ RI WKH RSHQ QR))OH FDEOH
RWIHDV H ZDWHU VSUD\ WKURXJK WKH
IRUWKHRS WK QR))OHV
QR))O DEOH WUD\ VXSSUHVVLRQ V\VWHP
UHODWLYHO\ OLPLWHG TXDQWLW\ RI FRPEXVWLEOHV
V HV LQ ILUH ]RQH %
HFDEOHLQVXODWLRQLQWKHWH HFDEOHLQVXODWLRQLQWKHWHUPLQDOER WKLV PDWHULDO LV UHTXLUHG
3URWHFWLRQ6XPPDU\ILUH]RQH%KDVDILUHGXUDWLRQ
PDU\ILUH]RQH%KDVDILUH PDU\ILUH]RQH%KDVDILUHG ZLOOEHDGPLQLVWUDWLYHO\FRQWUROOHG DWLYHO\FRQWUROOHG RIOHVVWKDQRQHKRXU
VWUDWLYHO\FRQWUROOHG RIOHVVWKDQRQ DQG VXEVHTXHQW
LV LQ FRQWUDVW WR WKH
%HFDXVH RI DGPLQLVWUDWLYH
FRQWURO RI FRPEXVWLEOH PDWHULDO LQ FRQWDLQPHQW WKH RQO\ LQWHUYHQLQJ FRPEXVWLEOHV GXULQJ
SODQWRSHUDWLRQDUHWKHFDEOHLQVXODWLRQLQWKHWHUPLQDOER[HVDQGRSHQFDEOHWUD\VDQGHYHQ
TXLUHG WR EH ILUH UHWDUGDQW $V LQGLFDWHG
LQ LQ 8)6$5 7DEOH $ )LUH
LQFOXGLQJWUDVKDQGYRODWLOHVWKDW
5 7KHUHSODFHPHQWRIWKHFXUUHQWRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPZLWKSDVVLYHILUH
DFHPHQWRIWKHFXUUHQWRSHQQR))OH HPHQWRIWKHFXUUH VWRSV ZLOO UHGXFH )36 V\VWH PDLQWDLQDELOLW\
HIILFLHQFLHV
HOLPLQDWH WKH FKDQFH RI LQDGYH FRPSOH[LW\ WKHUHE\ LPSURYLQJ )36 FRQVWUXFWDELOLW\ DQG
V\VWHP FRPSOH QWDLQDELOLW\ UHGXFH FRQJHVWLRQ
FRQJHVWL LQ WKH PDLQWHQDQFH IORRU DUHD UHVXOWLQJ LQ LQFUHDVHG
SHUVRQQHO VDIHW\ GXULQJ RXWDJH DFWLYLWLHV LQ WKDW DUHD DQG
IILFLHQFLHV DQG LPSURYHG SHUVRQ SHUVRQQ LQDGYHUWHQW DFWXDWLRQ RI WKH V\VWHP ZKLOH VWLOO SUHYHQWLQJ ILUH
SURSDJDWLRQRXWRIILUH]RQH%WRDGMDFHQWILUH]RQHV
URSDJDWLRQRXWRIILUH]RQ URSDJDWLRQRXWRIILUH]RQH
' 3URSRVHG/LFHQVLQJ%DVLV&KDQJHV
VHG/LFHQVLQJ%DVL VHG/LFHQVLQJ%DVLV 7KH SURSRVHG
VHG FKDQJHV
FKDQJ WR WKH &2/ $SSHQGL[ & DQG 3ODQW6SHFLILF 7LHU DQG 8)6$5
UHODWHGWRWKHUHSODFHPHQWRIWKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLQILUH]RQH
UHSOD
%ZLWKSDVVLYHILUHVWRSVDUHOLVWHGEHORZ
&2/$SSHQGL[& DQGFRUUHVSRQGLQJSODQWVSHFLILF7LHU )LJXUHVKHHW+/-
5HPRYHGHSLFWLRQRIFRQWDLQPHQWZDWHUVSUD\SLSLQJWRILUH]RQH$)%
&2/$SSHQGL[& DQGFRUUHVSRQGLQJSODQWVSHFLILF7LHU )LJXUH5HPRYH
GHSLFWLRQRIFRQWDLQPHQWZDWHUVSUD\SLSLQJWRYDOYHV9$%&'(
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
8)6$57DEOH+/-5HPRYHH[FHSWLRQWR1)3$6HFWLRQWKDWUHTXLUHV
DOODFWXDWLRQYDOYHVEHOLVWHGDVWKHQRQOLVWHGYDOYHVDUHQRORQJHUEHLQJXVHG
8)6$5 )LJXUH VKHHW +/- 5HPRYH GHSLFWLRQ RI EUDQFK OLQH IRU &DEOH 7UD\
6SUD\
8)6$56XEVHFWLRQ$+/-'HOHWHIRXUWKEXOOHW :DWHUVSUD\V\VWHPVLQVSHFLILF
SUD\V\VWH SUD \V ORFDWLRQV XQGHU)LUH'HWHFWLRQDQG6XSSUHVVLRQ)HDWXUHV
V
V
8)6$5 6XEVHFWLRQ $ +/- 0RGLI\ ODVW VHQWHQFH
HQFH RI VHFRQG
VHFR SDUDJUDSK
VHFRQG SDUDJUD WR
DFFRXQW IRU UHPRYDO RI ZDWHU VSUD\ VXSSUHVVLRQ QRQVDIHW\UHODWHG
RQ V\VWHP IRU QR QRQVD IHW\UHOD HOHFWULFDOFDEOHVLQRSHQFDEOHWUD\VLQILUH]RQH$)%DQGUHSODFHPHQW
H
H$) %DQGUHSODFHPH
%DQG
ZLWKSDVVLYHILUHVWRSV
7
8)6$56XEVHFWLRQ$+/-0RGLI\WKLUGIRXUWKDQGVL[WKSDUDJUDSKVWRDFFRXQW
WKLUGIRXUWKDQGVL[ KSDUDJUDSKVW WKLUGIRXUWKDQGVL[W QV\VWHPIRUQRQVDIHW\UHO V\VWHPIRUQRQVDIH DWHGHOHF VW IRUUHPRYDORIZDWHUVSUD\VXSSUHVVLRQV\VWHPIRUQRQVDIHW\UHODWHGHOHFWULFDOFDEOHV
LQRSHQFDEOHWUD\VLQILUH]RQH$)%DQGUHSODFHPHQWZLWKSDVVLYHILUH
$)%DQGUHSODFHPHQW
%DQG Z VWRSV
WKHVH ILJXUHV
$)
8)6$57DEOH$VKHHW+/-5HPRYHZDWHUVSUD\DVDPHWKRGRIIL[HGVXSSUHVVLRQ
+/-5HPRYHZDWHUVSUD\DVDPHWKR
+/-5HPRYHZDWHUVSUD\DVDP FDSDELOLW\IRUILUH]RQH$)%
$)%
)%
8)6$57DEOH+/-5HYLVHWKHWH[WRILWHPWRUHPRYHWKHZRUGV³DXWRPDWLF'
+/-5HYLVHWKHWH[WRILWHPWR
HWKHWH[WRILWHPWR
DQG³PDLQWHQDQFHIORRU'ZKHQUHIHUULQJWRWKHILUHV\VWHPLQWKHFRQWDLQPHQW
HIORRU'ZKHQUHIHUULQJWRWKHILUHV\V
&KDQJHV DQG DUH
IORRU'ZKHQUHIHUULQJWRWKHILUHV\V UH FKDQJHV WR &2/ $SSHQGL[
$SSHQ 7KHVH FKDQJHV DQG FKDQJH DUH FKDQJHV WR
HSLFWLRQRIWKHRSHQQR))OHZDWHUV V EHFDXVH
& DQG
8 D
W 8)6$5
3ODQW6SHFLILF 7LHU LQIRUPDWLRQ
ILJXUHV WKDW GHSLFW )36 SLSLQJ
V\VWHPV7KHGHSLFWLRQRIWKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVUHPRYHGIURP
HSLFWLRQRIWKHRSHQQR))OHZDWHU
FDXVH WKH RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP LV GHOHWHG E\ WKH
5 FKDQJHDFWLYLW\1RRWKHUFKDQJHVWRWKH8)6$5ILJXUHVDUHUHTXLUHG
EHFDXVH
FWLYLW\1RRWKHUFKDQJHVWRWKH8)6 RWKHUFKDQJHVWRWKH8)6
&KDQJHLVPDGHWR8)6$57DEOH([FHSWLRQVWR1)3$6WDQGDUG5HTXLUHPHQWV
QJHLVPDGHWR8)6$57 QJHLVPDGHWR8)6$57DEOH
WDNHQ WR WKH UHTXLUHPHQW RI 1)3$ WKDW UHTXLUHV WKH RSHQ
FDXVH DQ H[FHSWLRQ ZDV WDNHQ QR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP DFWXDWLRQ YDOYHV EH OLVWHG E\ D UHFRJQL]HG
RUJDQL]DWLRQ7KHH[FHSWLRQLVQRORQJHUWDNHQEHFDXVHWKHV\VWHPIRUZKLFKLWZDVWDNHQLV
RUJDQL]DWLRQ7KHH[FHSWL RUJDQL]DWLRQ7KHH[FHSWLRQLVQ
' GHOHWHG
OHWHG E\ WKH FKDQJH DFWLYLW\
UHPRYDO RI WKH
DFWLY D
FDXVHGE\WKHFKDQJHDFWLYLW\
HGE\WKHFKDQJHDFW HGE\WKHFKDQJHDFWLY
&KDQJH LQ PDGH WR
1R QHZ H[FHSWLRQV WR 1)3$ VWDQGDUG UHTXLUHPHQWV DUH
WR 8)6$5 6XEVHFWLRQ $ &RQWDLQPHQW6KLHOG %XLOGLQJ E\ WKH
KH IRXUWK
ZKLFK UHIHUV WR
IRXU EXOOHW XQGHU WKH KHDGLQJ )LUH 'HWHFWLRQ DQG 6XSSUHVVLRQ )HDWXUHV
R ZDWHU VSUD\ VXSSUHVVLRQ V\VWHPV 7KH UHPRYDO RI WKH IRXUWK EXOOHW LV
DSSURSULDWH EHFDXVH LW UHIHUV WR WKH RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP LQ ILUH
]RQH%ZKLFKLVGHOHWHGE\WKHFKDQJHDFWLYLW\
&KDQJHV DQG DUH PDGH WR 8)6$5 6XEVHFWLRQV $ )LUH =RQH $)
$ DQG $ )LUH =RQH $) % WR DSSURSULDWHO\ UHYLVH WKH WH[W WR
UHPRYH UHIHUHQFH WR DQG GHVFULSWLRQ RI WKH RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP
DQGUHSODFHLWZLWKLQIRUPDWLRQRQWKHSDVVLYHILUHVWRSVWKDWDUHWKHVXEMHFWRIWKHFKDQJH
DFWLYLW\
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
&KDQJH LV PDGH WR 8)6$5 7DEOH $ )LUH 3URWHFWLRQ 6XPPDU\ WR DSSURSULDWHO\
UHPRYH ZDWHU VSUD\ IURP WKH )L[HG 6XSSUHVVLRQ &DSDELOLW\ FROXPQ IRU ILUH DUHD %
EHFDXVHWKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVGHOHWHGE\WKHFKDQJHDFWLYLW\
&KDQJH LV PDGH WR 8)6$5 7DEOH $3 35$%DVHG ,QVLJKWV LWHP WR
UHPRYHDXWRPDWLFDQGPDLQWHQDQFHIORRUIURPWKHWH[W7KHSXUSRVHRILWHPLVWRVWDWH
HRIL HRILW
RSHUDWRUDFWLRQVFDQEHDFFRPSOLVKHGLQHQRXJKWLPH PLQXWHVIROORZLQJGHWHFWLRQRID
VIROORZ VIROORZLQJ
ILUH WR PLQLPL]H WKH SUREDELOLW\ RI VSXULRXV $XWRPDWLF 'HSUHVVXUL]DWLRQ
VVXUL]DWLRQ
VV XUL] 6\VWHP $'6
6\V DFWXDWLRQ DQG RSHUDWRU DFWLRQV WR RSHQ WKH PDQXDO )36 FRQWDLQPHQW
FRQWDLQPH LVRODWLRQ
LVRODWLRQ YDOYH WR
SHUPLWILUHZDWHUWRIORZLQWRWKH)36SLSLQJ
7KH UHPRYDO RI DXWRPDWLF DQG PDLQWHQDQFH IORRU RU IURP WKH WH[W
WH[W RI LWHP LQ
7 7DEOHLVDSSURSULDWHEHFDXVHWKHRQO\)36V\VWHPLQFRQWDLQPHQWWRZKLFKWKRVH
6V\VWH 6V\VWHPLQFR ZRUGV DSSO\ LV WKH QRQVDIHW\ FDEOH WUD\ RSHQQR))OH
))OH ZDWHU VSUD\
VSUD QWDLQPHQWWRZKLFKW WWRZK VSUD\ V\VWHP 7KHUH
HUH DUH
FRQWDLQPHQW)36V\VWHPVWRZKLFKWKHRSHUDWRUDFWLRQVVWLOODSSO\EXWWKHILUHVXSSUHVVLRQ
RUDFWLRQVVWLOODSSO\EXWWKHILUHVX V\VWHPVDUHQHLWKHUDXWRPDWLFQRUORFDWHGRQWKHPDLQWHQDQFHIORRU
QWKHPDLQWHQDQFHIO HPDLQWHQDQFHIORRU
DU RWKHU
D
$)
$V GLVFXVVHG LQ )LQDO 6DIHW\ (YDOXDWLRQ
0/$ DQ DQDO\VLV VKRZLQJ
LRQ 5HSRUW 5HODWHG WR &HUWLILFDWLRQ
6WDQGDUG'HVLJQ 185(*6XSSOHPHQW9ROXPH
&HUWLILFDWLR RI WKH $3
XSSOHPHQW9ROXPH &KDSWHUWKURXJK&KDSWHU
&KDSWHU
&
QJ WKDW RSHUDWRU PDQXDO DFWLRQ
ZLQJ
KHSRWHQWLDOIRUVSXULRXV$'6DFWXD HQWLDOIRUVSXULRXV$'6DFWX DF U
FDQ EH DFFRPSOLVKHG
ZLWKLQPLQXWHVWRPLQLPL]HWKHSRWHQWLDOIRUVSXULRXV$'6DFWXDWLRQLQWKHHYHQWRIDILUH
LVSUHVHQWHGLQ$33*:*/52SHUDWRU$FWLRQV0LQLPL]LQJ6SXULRXV$'6$FWXDWLRQ
52SHUDWRU$FWLRQV0LQLPL]LQ SHUDWRU$FWLRQV0LQLPL]LQ
- /5 ,WLVQRWHGLQ*/5WKDWWKHDQDO\VLVUHTXLUHGWRGHPRQVWUDWHRSHUDWRUDFWLRQV
WR PLQLPL]H WKH SUREDELOLW\
V\VWHP LQ WKH
/5WKDWWKHDQDO\VLVUHTXLUHGWR LVVXH LQYROYLQJ WKH SURFHGXUH
KHDQDO\VLVUHTXLUHGWR OLW\ RI VSXULRXV $'6 DFWXDWLRQ
DFW URFHGXUH IRU PDQXDO DFWXDWLRQ
DFWX FILUHV\VWHPLQWKHFRQWDLQPHQWP FDXVHG
FDX E\ ILUH LV QRW UHODWHG WR WKH
RI WKH YDOYH UHTXLUHG IRU ILUH ZDWHU WR
UHDFKWKHDXWRPDWLFILUHV\VWHPLQWKHFRQWDLQPHQWPDLQWHQDQFHIORRU*/5JRHVRQWR
FILUHV\VWHPLQWKHFRQWDLQP SUHVHQWWKH$'6DQDO\VLV)RUWKHRSHUDWRUDFWLRQVWRDOORZZDWHUWRUHDFKWKHDXWRPDWLFILUH
6DQDO\VLV)RUWKHRSHUDWRUDFWLRQV
DQDO\VLV)RUWKHRSHUDWRUDFWLRQ H FRQWDLQPHQW PDLQWHQDQFH IORRU UHIHUHQFH LV PDGH WR WKH )LUH 5HVSRQVH
5 (PHUJHQF\SURFHGXUH
\SURFHGXUH
7KH SXUSRVH
GXUH
XUSRVH RI WKH )LUH 5HVSRQVH
RSHUDWRUV
5H UDWRUV IRU UHVSRQGLQJ WR ILUH (PHUJHQF\
(P SURFHGXUH LV WR SURYLGH LQVWUXFWLRQV WR
WKURXJKRXW WKH SODQW 7KH SURFHGXUH LQFOXGHV ILUH DUHD
ILUHV WKUR GUDZLQJVDQGDFURVVUHIHUHQFHVRIWKHGUDZLQJVDQGURRPQXPEHUVWRWKHYDULRXVRSHUDWRU
UDZLQJVDQGDFURVVUHIHUHQFHVR UDZLQJVDQGDFURVVUHIHUHQFHVRI
LQVWUXFWLRQV2SHUDWRULQVWUXFWLRQVIRUUHVSRQGLQJWRILUHVLQDOOFRQWDLQPHQWURRPVILUH]RQHV
LQVWUXFWLRQV2SHUDWRULQVWUXFWLRQV DUH
UH LQFOXGHG LQ WKH SURFHGXUH
SURFHGXUH QRW MXVW ILUH ]RQH % 7KHUHIRUH LW LV DSSURSULDWH WR
SURFH
' UHYLVH8)6$57DEOHLWHPWRUHPRYHDXWRPDWLFDQGPDLQWHQDQFHIORRUIURP
VH8)6$57DEOH
VH8)6$57DEOH
WKHWH[W
[W
7(&+1,&$/(9$/8$7,21
$/(9$/8 7KHUHSODFHPHQWRIWKHQRQVDIHW\FDEOHWUD\RSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHP
LQ ILUH ]RQH $) % ZLWK SDVVLYH ILUH VWRSV LQ WKH QRQVDIHW\ RSHQ FDEOH WUD\V LV
MXVWLILHGIRUWKHIROORZLQJUHDVRQVZKLFKDUHH[SDQGHGXSRQIXUWKHUEHORZ
x 7KHDFFHSWDELOLW\RIWKHXVHRISDVVLYHILUHVWRSVLQOLHXRIDPDQXDOO\DFWLYDWHG
VXSSUHVVLRQV\VWHPLVUHFRJQL]HGE\UHJXODWRU\JXLGDQFH
x 3DVVLYHILUHVWRSVDUHGHVLJQHGDQGWHVWHGWRVKRZWKDWILUHVGRQRWSURSDJDWH
RXWVLGHWKHILUH]RQH
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
x 3DVVLYHILUHVWRSPDWHULDORIFRQVWUXFWLRQFRPSOLHVZLWK,5:67DQGFRQWDLQPHQW
UHFLUFXODWLRQVFUHHQVGHVLJQFULWHULDLQ8)6$56XEVHFWLRQ
x )LUH]RQH$)%FRPEXVWLEOHORDGLQJVDUHVXFKWKDWWKHSRVWXODWHGILUH
GXUDWLRQLVOHVVWKDQWKHWHVWWLPHIRUZKLFKWKHILUHVWRSZDVVXFFHVVIXOLQSUHYHQWLQJ
H VSUHDGRIWKHILUH
x $GPLQLVWUDWLYH SURFHGXUHV LH &RQWURO RI &RPEXVWLEOHV DQG &RQWURO
& RI +RW :RUN
DUHHVWDEOLVKHGIRUILUHSURWHFWLRQGXULQJWLPHVZKHQFRQWDLQPHQWPD\EHRSHQDQG
RQWDLQPHQWPD\EHR RQWDLQPH QW DGGLWLRQDOFRPEXVWLEOHPDWHULDOPD\EHSUHVHQWLQILUH]RQH%
H]RQH%
H]RQH %
$FFHSWDELOLW\RIWKH8VHRI3DVVLYH)LUH5HVLVWLYH)HDWXUHV
XUHV
$)
- XLGDQFH IRU PHHWLQJ WKH 86 15& ILUH SURWHFWLRQ
5HJXODWRU\ *XLGH DQG %73 &0(%
LQFRUSRUDWHVWKHJXLGDQFHRI%73&0(%
$OWKRXJK 5HJXODWRU\ *XLGH LV QRW
5HJXODWRU\ *XLGH QRWHV WKDW LQ
HFWLRQ UHJXODWLRQV
UHJXODWLR W DSSOLFDEOH WR
LV
LV SURYLGHG
HG LQ SDUW E\
5HYLVLRQ RI 5HJXODWRU\ *X
- XLGH
$3 GHVLJQ
R WKH $3
Q VRPH FDVHV ILUH EDUULHUV
EDUULHU PD\
GHVLJQ WKH JXLGDQFH LQ
PD\ QRW
QR EH SRVVLEOH IRU LQ
7 FRQWDLQPHQW ILUH SURWHFWLRQ ,Q WKH
H FDVH RI ILUH ]RQH %
% SLSLQJVXSSRUWHTXLSPHQW
SLS FRQJHVWLRQ DQG WKH QHHG WR R PDLQWDLQ
LQWDLQ RSHQ FRPPXQLFDWLRQ
FRPPXQLFDWLRQ EHWZHHQ FRQWDLQPHQW
FRPPXQLFDWLR FRPSDUWPHQWVPHDQVWKDWIXOOILUHEDUULHUVDWWKHILUH]RQHERXQGDU\ZKHUHQRQVDIHW\UHODWHG
ILUHEDUULHUVDWWKHILUH]RQHERX HUVDWWKHILUH]RQHERXQG QG RSHQFDEOHWUD\VUXQWRDGMDFHQWILUH]RQHVDUHQRWIHDVLEOH
DFHQWILUH]RQHVDUHQRWIHDVLEOH
HVDUHQRWIHDVLEOH
7KHUH DUH QR VSHFLILF
F UHJXODWLRQV RU JXLGDQFH
JXLGDQF WKDW UHFRJQL]HV
UHF RSHQQR))OH ZDWHU VSUD\
VXSSUHVVLRQV\VWHPVDVWKHRQO\PHDQVIRUILUHSURWHFWLRQIRURSHQFDEOHWUD\V3DVVLYHILUH
PVDVWKHRQO\PHDQVIRUILUH
PVDVWKHRQO\PHDQVIRUILUHSURWHF VWRSV DUH EHLQJ SURSRVHG IRU WKH QRQVDIHW\UH QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V DV DQ DFFHSWDEOH
QRQVDIHW\UHODWH DOWHUQDWLYH SURYLGHG
LGHG LW LV GHPRQVWUDWHG WKDW ILUH
RYLGHG ILU SURSDJDWLRQ LV GHOD\HG DQ DSSURSULDWH
5 DPRXQWRIWLPH
PH
7KHJXLGDQFHRI5HJXODWRU\*XLGH
XLGDQFHRI5HJXODWRU\*XLGH
LGDQFHRI5HJXODWRU\* LQFOXGLQJWKH%73&0(%JXLGDQFH LVWKDW
WKHSDVVLYHILUHVWRSVPHHWWKHIROORZLQJUHTXLUHPHQWVZKHQDIXOOILUHEDUULHULVQRWSRVVLEOH
SDVVLYHILUHVWRSVPHHWWKHI SDVVLYHILUHVWRSVPHHWWKHIROORZLQ LQVLGHFRQWDLQPHQW
VLGHFRQWDLQPHQW
³)LUH6WRSDIHDWXUHRIFRQVWUXFWLRQWKDWSUHYHQWVILUHSURSDJDWLRQDORQJWKHOHQJWKRI
³)LUH6WRSDIHDWXUHRIFRQV
³)LUH6WRSDIHDWXUHR
' FDEOHVRUSUHYHQWVVSUHDGLQJRIILUHWRQHDUE\FRPEXVWLEOHVZLWKLQDJLYHQILUHDUHDRU
FDEOHVRUSUHYHQWVVSU FDEOHVRUSUHYHQWVVSUHDG ILUH]RQH'
H]RQH H]RQH'
7KH 1DWLRQDO
DO )LUH 3URWHFWLRQ
3 3URWHFWLRQ IRU $GYDQFHG
$GY DVVRFLDWLRQ 1)3$ VWDQGDUGV 1)3$ 6WDQGDUG IRU )LUH
/LJKW :DWHU 5HDFWRU(OHFWULF *HQHUDWLQJ 3ODQWV DQG 1)3$
3HUIRUPDQFH%DVHG6WDQGDUGIRU)LUH3URWHFWLRQIRU/LJKW:DWHU5HDFWRU(OHFWULF*HQHUDWLQJ
3ODQWV ERWK LQFOXGH WKH XVH RI WKUHH KRXU UDWHG ILUH VWRSV ZLWK QR UHTXLUHPHQW IRU
VXSSUHVVLRQ V\VWHPV ,W LV QRWHG WKDW WKH 15& KDV QRW HQGRUVHG WKHVH VWDQGDUGV IRU WKH
$3 GHVLJQ DQG WKLV LQIRUPDWLRQ LV EHLQJ LQFOXGHG RQO\ WR VKRZ LQGXVWU\ FRQVHQVXV LQ
WKHXVHRISDVVLYHVWRSVLQOLHXRIDFWLYHSURWHFWLRQV\VWHPV
3DVVLYH ILUH VWRSV LQ QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V DUH PRUH UHOLDEOH WKDQ DFWLYH
V\VWHPV VXFK DV WKH FXUUHQW RSHQ QR))OH FDEOH WUD\ VXSSUHVVLRQ V\VWHP EHFDXVH WKH\
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
UHTXLUHQRPHFKDQLFDORUKXPDQDFWLRQWRSHUIRUPWKHLUSURWHFWLYHIXQFWLRQ:KHQSURWHFWLRQ
LV UHTXLUHG WKHUH LV QR GHOD\ IRU RSHUDWRU RU PHFKDQLFDO UHVSRQVH 7KH SDVVLYH ILUH VWRSV
UHTXLUH OHVV PDLQWHQDQFH WKDQ DFWLYH VXSSUHVVLRQ V\VWHPV PDNLQJ WKHP SUHIHUDEOH IRU WKH
LQVWDOODWLRQVLQZKLFKWKH\DUHDSSURSULDWHVXFKDVWKHILUH]RQH%QRQVDIHW\UHODWHG
RSHQ FDEOH WUD\V 7KH XVH RI SDVVLYH ILUH VWRSV UHGXFHV FRQJHVWLRQ LQ Q WKH DUHD RI URRP
QXPEHU DQG UHPRYHV WKH QHHG IRU FRPSOH[ GHVLJQ FRQVWUXFWLRQ DQG PDLQWHQDQFH
LRQ D VROXWLRQV EHFDXVH RI WKH HOLPLQDWLRQ RI RYHU QR))OHV DQG DVVRFLDWHG DVVRFLDWHG DV VR SLSLQJ DQG
VXSSRUWV
7KHH[LVWLQJRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPLVQRWFUHGLWHGLQWKH3UREDELOLVWLF
QRWFUHGLWHGLQWKH3URED QRWF LWHGLQ 5LVN$VVHVVPHQW 35$ %HFDXVHWKHRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPLVQRWIXOO\
WUD\VXSSUHVVLRQV\VW WUD\VXSSUHVVLRQV\VWHPLVQRWI DXWRPDWLFQRULVLWDFODVVLFPDQXDOV\VWHPLWZDVH[FOXGHGIURPWKH35$PRGHO7KHUHIRUH
XGHGI RPWKH35$PRGHO7KHUHIR XGHGIU PRGHO UHPRYDORIWKHRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPZLOOKDYHQRLPSDFWRQWKH35$
V\VWHP V\VWHPZLOOK DYHQRLPSDFWRQWKH DFWRQ
FDOFXODWLRQVDQGUHVXOWV
)LUH6WRS'HVLJQ
7KH SDVVLYH ILUH VWRSV WKDW DUH SURSRVHG VHG WR UHSODFHH WKH RSHQ QR))OH
QR))OH ZDWHU
Z VXSSUHVVLRQ
V\VWHP IRU WKH QRQVDIHW\UHODWHG RSHQ SHQ FDEOH WUD\V FRQVLVWV FRQVLVWV RI DD KLJK
K GHQVLW\ VLOLFRQH
HODVWRPHU +'6( PDWHULDO SODFHG G LQ
Q WKH RSHQ QRQVDIHW\UHODWHG
QRQVDIHW\UHODWHG FDEOH
FD WUD\V DW HDFK SRLQW
ZKHUH WKH WUD\V FURVV IURP ILUH H ]RQHH % LQWR DGMDFHQW ILUH ]RQHV ,Q DGGLWLRQ WR WKH
+'6(PDWHULDOWKHSDVVLYHILUHVWRSVKDYHDJDXJHVWDLQOHVVVWHHOKHDWVKLHOGLQVWDOOHG
ILUHVWRSVKDYHDJDXJHVWDLQOHV KDYHDJDXJHVWDLQOHV DFURVV WKH FDEOH WUD\V DW W WKH PLGSRLQW QW RI WKH ILUH VWRS WWR DLG LQ SUHYHQWLRQ RI IODPH
SURSDJDWLRQ 7KH DIIHFWHG FWHG QRQVDIHW\UHODWHG RSHQ R FDEOH WUD\V DUH HLWKHU KRUL]RQWDOO\ RU
FDEOH YHUWLFDOO\ RULHQWHG DQG G FRQWDLQ D UDQJH RI FDEOH
FDE VL]HV IURP
I LQVWUXPHQW FDEOHV WR
GLDPHWHU WR 5HDFWRU WRU &RRODQW 3XPS 5&3 SRZHU SRZ FDEOHV
FD JUHDWHU WKDQ GLDPHWHU 7KH
+'6(PDWHULDOLVIRUPHGLQWRILUHVWRSVWKDWDUHDERXWIRXULQFKHVGHHSDQGDERXWQLQHWR
VIRUPHGLQWRILUHVWRSVWKDWDUHD VIRUPHGLQWRILUHVWRSVWKDWDUHDER LQFKHVORQJIRUWKHIXOOZLGWKRIWKHDIIHFWHGQRQVDIHW\UHODWHGRSHQFDEOHWUD\V7KH+'6(
RUWKHIXOOZLGWKRIWKHDIIHFWHGQRQ WKHIXOOZLGWKRIWKHDIIHFWHGQRQ PDWHULDOFRPSOHWHO\VXUURXQGVWKHQRQVDIHW\UHODWHGFDEOHVDWWKHSRLQWRISODFHPHQWRIWKH
PSOHWHO\VXUURXQGVWKHQRQVDIHW\U
\VXUURXQGVWKHQRQVDIHW\U ILUHVWRSV
V
7KH +'6( PDWHULDO RI FRQVWUX FRQVWUXFWLRQ RI WKH SDVVLYH ILUH VWRSV LV PDQXIDFWXUHG E\ 3&,
3URPDWHF
URPDWHF DQG LV XVHG DV ILUH VHDODQW
VHD VHDO DW PDQ\ GRPHVWLF DQG LQWHUQDWLRQDO QXFOHDU SRZHU
SODQWV 7KH +'6( PDWHULDO RI F FRQVWUXFWLRQ RI WKH SDVVLYH ILUH VWRSV LV DSSURYHG IRU XVH
HOVHZKHUH
OVHZKHUH LQ WKH $3
$3 GHVLJQ
GH IRU VHDOLQJ SLSLQJ DQG HOHFWULFDO SHQHWUDWLRQV LQVLGH
FRQWDLQPHQW
WDLQPHQW DQG LQFOXGLQJ
LQFOXGLQ EHORZ WKH FRQWDLQPHQW IORRGXS OHYHO HOHYDWLRQ 7KH
+'6(PDWHULDOLVSULPDULO\VLOLFRQHQRQDEUDVLYHDQGZLOOQRWFDXVHGDPDJHWRWKHFDEOHV
PDWHULDOLVSULPDU PDWHULDOLVSULPDULO SDVVLQJWKURXJKLWGXHWRQRUPDOSRZHUORDGVRUZHDUDZD\WKHFDEOHMDFNHWLQJEHFDXVHRI
KURXJKLWGXH
YLEUDWLRQ DV
V D UHVXOW
UHVXOW RI QRUPDO SODQW RSHUDWLRQV ,Q DGGLWLRQ WKH +'6( PDWHULDO DFWV DV D
KHDW VLQN WKHUHE\
UHE\ QHJDWLQJ WKH QHHG IRU FDEOH DPSDFLW\ GHUDWLQJ DQG SRWHQWLDO GDPDJH LQ
WKHIRUPRIKDUGHQLQJDQGFUDFNLQJRIWKHFDEOH¶VLQVXODWLRQGXHWRKHDWEXLOGXS
7KH +'6( PDWHULDO LV PL[HG DQG LQWURGXFHG LQWR WKH IRUPHG ILUH VWRS ORFDWLRQ DV D ORZ
YLVFRVLW\ OLTXLG $V VXFK LW IORZV LQWR DQG VHDOV WKH FRPSOH[ JHRPHWULHV VXUURXQGLQJ WKH
FDEOHV2QFHFXUHGWKHIRUPPDWHULDOLVUHPRYHGDQGWKHSDVVLYHILUHVWRSLVFRPSOHWH,Q
LWVFXUHGVWDWHWKH+'6(PDWHULDOLVVWDEOHXQGHUKLJKKHDWDQGUDGLDWLRQFRQGLWLRQVDQGFDQ
EH GHFRQWDPLQDWHG LI QHHGHG %HFDXVH WKH ILUH VWRS PD\ EH LQ D IORRGHG HQYLURQPHQW LQ
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
FRQWDLQPHQWIROORZLQJDGHVLJQEDVLVDFFLGHQWWKH+'6(ILUHVWRSPDWHULDORIFRQVWUXFWLRQLV
FKRVHQWREHFKHPLFDOO\VWDEOHLQWKHVHFRQGLWLRQV
7KH +'6( PDWHULDO RI WKH SDVVLYH ILUH VWRSV LV PDGH RI QRQILEURXV KLJKGHQVLW\ VLOLFRQH
PDWHULDO OEVIW WKDW H[FHHGV WKH PLQLPXP GHQVLW\ UHTXLUHPHQW RI OEVIW IRU
FRDWLQJVDQGVHDODQWVLQVLGHFRQWDLQPHQW7KHXVHRI+'6(PDWHULDOIRUWKHFRQVWUXFWLRQRI
IRUWK WKHILUHVWRSVSUHFOXGHVWKHWUDQVSRUWRIWKHILUHVWRSPDWHULDOWRWKHVXPSLQWKHHYHQWRID
HVXPS HVXPSLQW KLJKHQHUJ\OLQHEUHDNRURWKHUIORRGLQJHYHQWLQVLGHFRQWDLQPHQW$Q\FRPEXVWLEOHILEURXV
W$Q\
W$Q\FRPEXVWLE RURWKHUXQTXDOLILHGIRUPPDWHULDOXVHGDVGDPPLQJPDWHULDOLV LVUHPRYHGIURPWKH
LV UHPRYHGIURPWKHILUHVWRS
UHPRYHG DIWHU WKH IRDP KDV FXUHG DQG WKHUHIRUH ZLOO QRW EH WUDQVSRUWHG FRQWDLQPHQW VVXPSV
RUWHG WR WKH FRQ GXULQJWKHUHFLUFXODWLRQSKDVHRIDGHVLJQEDVLVDFFLGHQW7KH+'6(PDWHULDORIFRQVWUXFWLRQ
7KH+'6(PDWHULDORIFRQVWUXF 7KH +'6(PDWHULDO
EHORZ WKH QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V
7 RI WKH SDVVLYH ILUH VWRSV ZLOO QRW LI VXEPHUJHG DGYHUVHO\
PDNHXS RI GHEULV DQGRU SUHFLSLWDWHV LQ WKH FRQWDLQPHQW
DFFLGHQW DQG VXPS UHFLUFXODWLRQ ZLOO QRW EH DGYHUVHO\
SDVVLYH ILUH VWRSV DUH QRW LQ WKH ]RQHRILQIOXHQFH
LPSDFW
UVHO\ LPS DFW WKH YROXPH
LQPHQW VXPSV IROORZLQJ D GHVLJQ
LQPHQ HUVHO\ DIIHFWHG
V LQ ILUH ]RQH %
\V
QIOXHQFH
HQFH =2, RI SR SRVWXODWHG
S GHVL DIIHFWHG ,Q DGGLWLRQ DV GL VWXODWHG KLJK
EUHDNV7KHUHIRUHEHFDXVHWKHSDVVLYHILUHVWRSVDUHQRWLQD=2,DQGDOVREHFDXVHWKH\
ILUHVWRSVDUHQRWLQD=2,DQGDOV DUHQRWLQ
FKHPLFDO
ROXPH RU FKHPL EDVLV
GLVFXVVHG
% WKDW ZLOO FFRQWDLQ WKH
KLJK HQHUJ\ OLQH
)LUH6WRS7HVWLQJ
ZLWKRXW SHUPLWWLQJ
$)
DUHFKHPLFDOO\VWDEOHLQDIORRGHGFRQGLWLRQWKHSDVVLYHILUHVWRSVZLOOQRWEHFRPHVRXUFHV
WR GHPRQVWUDWH WKH SDVVLYH
GLWLRQWKHSDVVLYHILUH VWRSVZLOOQR GLWLRQWKHSDVVLYHILUH
RIGHEULVWKDWPLJKWEHJHQHUDWHGIROORZLQJDGHVLJQEDVLVDFFLGHQW
RZLQJDGHVLJQEDVLVDFFLGHQW
RZLQJDGHVLJQEDVLVDFFL HSURSRVHGSDVVLYHI VLYH ILUH VWRS ZLOO SUHYHQW
SUHYHQ IODPH SURSDJDWLRQ
D\VEH\RQGWKHSDVVLYHILUHVWRSIRU QJ WKH SURSDJDWLRQ RI IODPH WKURXJK
WKURX WKUR HOHPHQWEH\RQGWKHXQH[SRVHGVLGHRIWKHSDVVLYHILUHVWRS
QGWKHXQH[SRVHGVLGHRIWKHSDVVLY WKHXQH[SRVHGVLGHRIWKHSDVVLY S
G
$IODPHSURSDJDWLRQWHVW ILUHWHVW RIWKHSURSRVHGSDVVLYHILUHVWRSGHVLJQZDVSHUIRUPHG
RIWKHSURSRVHGSDVVLYHI DORQJ WKH QRQVDIHW\
UHODWHGRSHQFDEOHWUD\VEH\RQGWKHSDVVLYHILUHVWRSIRUDKRXUILUHH[SRVXUH7KHUHVXOWV
D\VEH\RQGWKHSDVVLYHILU RIWKHWHVWVKRZWKDWWKHSDVVLYHILUHVWRSGHVLJQZLWKVWRRGWKHILUHWHVWIRUWKHKRXUSHULRG
DWWKHSDVVLYHILUHVWRSGHVLJQ DWWKHSDVVLYHILUHVWRSGHVLJQZLWKV RSHQLQJV RU WKH IODPLQJ RI DQ\ WHVW
5 7KHIODPHSURSDJDWLRQWHVWZDVSHUIRUPHGXVLQJWKHJXLGHOLQHVRIWKH,QVWLWXWHRI(OHFWULFDO
HSURSDJDWLRQWHVWZDVSHUIRUPHG
SURSDJDWLRQWHVWZ DQG (OHFWURQLFV
OHFWURQLFV (QJLQHHUV ,(((
7HVWLQJRI:LUHDQG&DEOH
,( 6WDQGDUG
6WDQG
,(((6WG
WLQJRI:LUHDQG&DEOH ,((
,(((6WG UHVWRSWHVWEHFDXVHWKHSXUSRVH
,((( 6WDQGDUG IRU )ODPH3URSDJDWLRQ
,(((ZDVXVHGDVDJXLGHOLQHIRUWKH
ILUHVWRSWHVWEHFDXVHWKHSXUSRVHRIWKHVWDQGDUGLVWRGHILQHWKHILUHWHVWVIRUFDEOHVQRW
UHVWRSWHVWEHFDXVHWKHSXUSRVH SURSDJDWLRQ WHVW ZDV SHUIRUPHG LQ D IDFLOLW\ WKDW PHHWV WKH
SDVVLYH ILUH VWRSV 7KH IODPH SU UHTXLUHPHQWVRIVHFWLRQ)ODPHWHVWIDFLOLW\RI,(((6WG7KHIROORZLQJLWHPVWKDW
HTXLUHPHQWVRIVHFWLRQ
HTXLUHPHQWVRIVHFWLRQ)OD
' GLIIHUHGIURPWKH,(((6WGVHFWLRQUHTXLUHPHQWVZHUHSDUWRIWKHILUHWHVWSURJUDP
HUHGIURPWKH,(((6WG HUHGIURPWKH,(((6WG
x 7KHSDVVLYHILUHVWRSWHVWVSHFLPHQZDVPRXQWHGLQWKHYHUWLFDOO\RULHQWHGFDEOHWUD\
KHSDVVLYHILUH WHVWVHFWLRQQRILUHVWRSLVVKRZQLQ,(((6WG7KHWHVWVSHFLPHQPDWHULDORI
VHFWLRQ
FRQVWUXFWLRQ
XFWLR DQG SODFHPHQW LQ WKH FDEOH WUD\ ZHUH LGHQWLFDO WR WKH H[SHFWHG ILHOG
LQVWDOODWLRQ 7KH XVH RI YHUWLFDOO\RULHQWHG FDEOH WUD\V LQ WKH WHVW LV DSSURSULDWH
EHFDXVH LW LV DVVXPHG WKDW D ILUH ZRXOG QRW SURSDJDWH IDVWHU DORQJ D KRUL]RQWDOO\
RULHQWHGFDEOHWUD\
x 7KH KHDW VRXUFH IRU WKH ILUH WHVW ZDV D SURSDQH JDV ULEERQVW\OH EXUQHU ZLWK D
FDOFXODWHGKHDWRXWSXWRI%WXKUZKLFKVXEVWDQWLDOO\H[FHHGVWKH,(((6WG
UHTXLUHPHQWRI%78KU
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
x 7KHZLGWKRIWKHEXUQHUZDVQRWOLPLWHGWRWKHLQFKHVVSHFLILHGLQ,(((6WG
$FWXDOZLGWKZDVLQFKHV
x 7KH FDEOHV PRXQWHG LQ WKH FDEOH WUD\ ZHUH SUHFRQGLWLRQHG WR D WHPSHUDWXUH
FRQVLVWHQWZLWKWKDWH[SHFWHGLQFRQWDLQPHQWGXULQJSODQWRSHUDWLRQDERXW&7KH
,((( 6WG UHTXLUHV FRQGLWLRQLQJ WR D PD[LPXP WHPSHUDWXUH
UDWX RI ) 3UH
UDWXU KHDWLQJWR&LVFRQVHUYDWLYHEHFDXVHOHVVRIWKHKRXUWHVWWLPHLVVSHQWUDLVLQJ
HVWWLPHLV HVW WLP WKHWHPSHUDWXUHIURPDPELHQW
x 7KH FDEOH WUD\V XVHG LQ WKH WHVW ZHUH RI WKH LGHQWLFDO WR EH
O W\SH WR EH XVHG LQ WKH
WK SODQW
LQVWDOODWLRQ5&3SRZHUFDEOHVZHUHDOVRXVHGLQWKHWHVW)RUWKHVPDOOHUGLDPHWHU
KHWHVW)RUWKHVPDOOHUGLDP HWHVW)RUWKHV FDEOH WHVW 39& MDFNHWHG FDEOHV ZHUH XVHG 39& PDWHULDO LV QRW QRW XVHG LQ
WUD\V VXEMHFW WR WKH LQVWDOODWLRQ RI WKH
ZLGHVW FDEOH WUD\ PD[LPL]HV WKH SRWHQWLDO
7 FRQWDLQPHQWEXWLWVXVHLQWKLVWHVWLVFRQVHUYDWLYHEHFDXVHRILWVIODPPDELOLW\
WLYHEH WLYHEHFDXVHR XPZLGWKRIWKHQRQVDIHW\
H SURSRVHG
URSRVHG SDVVLYH
DO FRPEXVWLRQ
FRPEXVW ILWVIODPPDELOLW\
DPPDE x $OWKRXJKQRWVSHFLILHGLQ,(((6WGWKHZLGWKRIWKHFDEOHWUD\XVHGLQWKHILUH
WKHZLGWKRIWKH WKHZLGWKRIWKHFDE OHWUD\XVHGLQ
WHVWZDVLQFKHVZKLFKLVWKHPD[LPXPZLGWKRIWKHQRQVDIHW\UHODWHGRSHQFDEOH
XPZLGWKRIWKHQRQ VHGLQ
UHODWHGR SDVVLYH ILUH VWRSV 7KH
ORDGLQJ IURP
IU 7K XVH RI WKH
WKH FDEOHV
$)
DIIHFWHGE\WKHSURSDQHEXUQHU
x 7ZR ILUH WHVWV ZHUH SHUIRUPHG
7KH VXFFHVVIXO FRQFOXVLRQ
QRQVDIHW\UHODWHG
HG %RWK WHVWV LQFOXGHG WKH SURSDQH
HLPSLQJHG FDEOH WUD\ 7KH VHFRQG
LQVWDOOHGZLOOQRWFDWFKILUH
FDWFKILUH
RQFOXVLRQ RI WKH ILUH WHVW RI WKH SURSD D\ZLWKWKHSDVVLYHILUHVWRSLQVWDOOH ZLWKWKHSDVVLYHILUHVWRSLQVWD WHVW LQFOXGHG DQRWKHU YHUWLFDOO\RULHQWHG
DGMDFHQW WR WKH IODPHLPSLQJHG
O\RULHQWHG FDEOH WUD\ ZLWK
Z EXUQHU DLPHG DW D
YHUWLFDOO\RULHQWHGFDEOHWUD\ZLWKWKHSDVVLYHILUHVWRSLQVWDOOHG+RZHYHUWKHVHFRQG
QR ILUH VWRS LQVWDOOHG
VHFRQ WHVW VXFFHVVIXOO\ FRQILUPHG
WKDW RSHQ FDEOH WUD\V DGMDFHQW WR RSHQ FDEOH WUD\V
WUD ZLWK WKH SDVVLYH ILUH VWRSV
SDVVLYH ILUH VWRS SURSRVHG IRU XVH LQ WKH
WKH SD G RSHQ FDEOH WUD\V LQ ILUH ]RQH % FRQILUPV WKH DFFHSWDELOLW\ RI WKH
HG
SDVVLYH ILUH VWRS DV DQ )36 GHIHQVHLQGHSWK IHDWXUH LQ DGGLWLRQ WR WUDLQ VHSDUDWLRQ DQG
'5 GLVWDQFH WRSUHYHQWSURSDJDWLRQRIDILUHWRDQRWKHUILUH]RQH
WRSUHYHQWSURSDJDWLRQRIDILUHWRD SURSDJDWLRQRIDILUHWRD 6SHFLILFVRI)LUH=RQH$)%
LILFVRI)LUH=RQH$)
LILFVRI)LUH=RQH$)%
$V GLVFXVVHG LQ 8)6$5 6XEVHFWL 6XEVHFWLRQ $ ILUH ]RQH % LV SK\VLFDOO\ VHSDUDWHG
6XEVHFWLR IURPILUH]RQHVDWORZHUHOHYDWLRQVE\WKHPDLQWHQDQFHIORRUZKLFKKDVDFRQFUHWHWKLFNQHVV
IURPILUH]RQHVDWORZHUHOHYDWLRQ RI PRUH WKDQ RQH IRRW H[FHSW
H[FH IRU DFFHVV VWDLUZD\V DQG KDWFKHV )LUH ]RQH % LV
VHSDUDWHGIURPWKHRSHUDWLQJGHFNDERYH
DUDWHGIURPWKHRSHUD DUDWHGIURPWKHRSHUDWLQ FRQFUHWHH WKLFNQHVV RI PRUH
P VWDLUZD\ HOHYDWRU KDWFKHV
FRQWDLQPHQW YHVVHO
QRQFRPEXVWLEOH
KD ILUH]RQH$) E\DFHLOLQJWKDWKDVD
WKDQ RQH IRRW H[FHSW IRU VHYHUDO RSHQLQJV IRU DQ DFFHVV
DQG EORFN RXWV 7KH ZDOOV RI ILUH ]RQH % DUH WKH VWHHO
YHVVHO WKH VWHHO ZDOO RI WKH LQFRQWDLQPHQW UHIXHOLQJ ZDWHU VWRUDJH WDQN WKH
H HQFORVXUH IRU WKH GLYLVLRQ % DQG ' SHQHWUDWLRQV DQG UDFHZD\V ILUH ]RQH
$) RU ZDOOV ZLWK D FRQFUHWH WKLFNQHVV RI PRUH WKDQ RQH IRRW H[FHSW IRU WKH
GHVLJQDWHGERXQGDULHVZLWKWKHDGMDFHQWSRUWLRQRIWKHPDLQWHQDQFHIORRUZKLFKLVILUH]RQH
$) $ $ GRRUZD\ VHSDUDWHV ILUH ]RQH % IURP WKH ORZHU SUHVVXUL]HU
FRPSDUWPHQW ILUH]RQH$) DQGWKHVWHDPJHQHUDWRUORZHUPDQZD\SODWIRUP
ILUH]RQH$)
7KHVDIHVKXWGRZQFRPSRQHQWVLQ)LUH]RQH%DUHOLVWHGLQ 7DEOHEHORZ ZKLFKLV
WDNHQIURP8)6$57DEOH$6DIH6KXWGRZQ&RPSRQHQWV
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
7DEOH+/-6DIH6KXWGRZQ&RPSRQHQWVLQ)LUH=RQH$)%
6\VWHP 'HVFULSWLRQ &ODVV('LYLVLRQ7DJ1XPEHU
$ & % '
&&6 2XWOHW/LQH&RQW,VRODWLRQ9DOYH 9
/HWGRZQ&RQWDLQPHQW,VRODWLRQ
9
9DOYH
0DNHXS/LQH&RQW,VRODWLRQ
9
9DOYH
&96
5&63XULILFDWLRQ6WRS9DOYH
9 9
5&3%
=LQF,QMHFWLRQ&RQW,VRODWLRQ
9
9DOYH
&ODVV((OHFWULFDO3HQHWUDWLRQV (<3= (<3=
(<3=
5
&ODVV((OHFWULFDO3HQHWUDWLRQV (<3< (<3<
(<3
,'6 &ODVV((OHFWULFDO3HQHWUDWLRQV
QV (<3< (<3<
&DEOHWUD\VWKDWURXWH&ODVV(
DVV(
1RWH 1RWH
FDEOHV
$)
35+5+HDW([FKDQJHU&RQWURO
DQJHU&RQWURO
9$ 9%
9DOYH
3;6 ,5:67:LGH5DQJH/HYHO
GH5DQJH/HYHO /7
&RUH0DNHXS7DQN
DNHXS7DQN WDJQR
%
%
07%
]HU3UHVVXUH
3UHVVXUL]HU3UHVVXUH 37
37$ 37&
5HIHUHQFH/HJ7HPSHUDWXUH
5HIHUHQFH/HJ7HPS 7($
7 7(&
7 3UHVVXUL]HU/HYHO /7$ /7&
5&6
&6
35+5+HDW([FKDQJHU2XWOHW 35+5+HDW([FKDQJHU2XWOHW
+HDW([FKDQJHU2XWO
7(
7HPSHUDWXUH
7HPSHUDWXUH XUH
+RW/HJ:LGH5DQJH3UHVVXUH
+RW/HJ:LGH5DQJH LGH5 37$ 37&
6WHDP*HQHUDWRU
HUDWR 6WHDP*HQHUDWRU1DUURZ
/7 /7
5DQJH:DWHU/
5DQJH:DWHU/H 5DQJH:DWHU/HYHO
6WHDP*HQHUDWRU1DUURZ
6WHDP*HQH
/7 /7
5DQJH:DWHU/HYHO
5DQJH:
6WHDP*HQHUDWRU:LGH5DQJH
6*6 /7 /7
- DWHU/HYHO
6WHDP*HQHUDWRU:LGH5DQJH
/7 /7
- DWHU/HYHO
6*6WHDP/LQH3UHVVXUH 37 37
6*6WHDP/LQH3UHVVXUH 37 37
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
6XPS'LVFKDUJH&RQW,VRODWLRQ
9
9DOYH
- /6
5&'7*DV2XWOHW&RQ,VRODWLRQ
9
9DOYH
1RWH
7KLVUHSUHVHQWVHTXLSPHQWVXFKDVFDEOHVWKDWKDYHQRDVVRFLDWHGWDJQXPEHU
7KH GLYLVLRQ $ DQG & HOHFWULFDO SHQHWUDWLRQV DQG HTXLSPHQW SPHQW OLVWHG
OLVWHG LQ 7DEOH DUH
FRQVHUYDWLYHO\ DVVXPHG WR EH GLVDEOHG DV D UHVXOW RI D ILUH LQ
LQ WKLV ILUH
H ]RQH
]RQH 7KH % DQDQG '
HOHFWULFDO SHQHWUDWLRQV DQG HTXLSPHQW DQG WKHLU FDEOHEOH WUD\V
WUD URXWHG
URXWHG IURP WKH
W HOHFWULFDO
HOHFWUL
%DQG'GLYLVLRQVDUHVXIILFLHQWWRSHUIRUPIXQFWLRQV
DQGPDLQWDLQVDIHVKXWGRZQ
)ROORZLQJ UHPRYDO RI WKH RSHQ FDEOH WUD\
7 SHQHWUDWLRQVXSWRWKHRSHUDWLQJGHFNDUHIXQFWLRQDOO\SDUWRIILUH]RQH$)7KH
\SDUWRIILUH]RQH$)
\SDUWRIILUH]RQH$)
QV DSSOLFDEOHWRWKHLUV\VWHPV DSSOLFDE DS
\ ILUH VXSSUHVVLRQ
WRWKHLUV\VWHPV WRDFKLHYH
OHWRWKHLUV\VWHPV XSSUHVVLRQ V\VWHP
WRD
WR
VV\VWHP WKH GLYLVLRQ
GLY % DQG '
$)
HOHFWULFDO SHQHWUDWLRQV DQG WKHLU DVVRFLDWHG
DWHG UDFHZD\V \V LQ RWKHU
EDUULHUVRIVWHHORUVWHHOFRPSRVLWHFRQVWUXFWLRQIRUPYHUWLFDOVKDIW IORRU XS WR WKH RSHUDWLQJ GHFN
HFRQVWUXFWLRQIRUPYHUWLFDO
VXUURXQGLQJ
RW ILUH ]RQHV UHPDLQ SURWHFWHG
IURPDILUHLQILUH]RQH%E\DFRPELQDWLRQRIEDUULHUVDQGGLVWDQFH1RQFRPEXVWLEOH
FRPELQDWLRQRIEDUULHUVD GGLVWDQ FRPELQDWLRQRIEDUULHUVDQ
VKD V IURPWKHPDLQWHQDQFH
FRQVWUXFWLRQIRUPYHUWLFDOVKDIW RXQGLQJ WKH GLYLVLRQ % DQG
DQG ' SHQHWUDWLRQV DQG WKH
DVVRFLDWHGFDEOHWUD\V7KHSUHGRPLQDQWFRPEXVWLEOHPDWHULDOVLQILUH]RQH%DUHWKH
QRQVDIHW\UHODWHG FDEOHV URXWHG
WUD\V DUH ORFDWHG DW OHDVW
SUHGRPLQDQWFRPEXVWLEOHPDWHULDOV
QWFRPEXVWLEOHPDWHULDOV
RXWHG LQ RSHQQ FDEOH WUD\V 7KHVH QRQVDIHW\UHODWHG RSHQ FDEOH
VW IHHW LQ DQ\ GLUHFWLR DFHZD\VURXWLQJFDEOHVIR GLUHFWLRQ IURP WK DFHZD\VURXWLQJFDEOHVIRUILUHVDIH 7KH TXDQWLW\ RI FRPEXVWLEOH PDWHULDOV LQ ILUH ]RQH
FDEOH LQVXODWLRQ
WKH GLYLVLRQ % DQG ' SHQHWUDWLRQV
DQGWKHLUDVVRFLDWHGUDFHZD\VURXWLQJFDEOHVIRUILUHVDIHVKXWGRZQFRPSRQHQWV
]RQH % LV ORZ FRQVLVWLQJ SULPDULO\ RI
]R RQ LQ WKH WHUPLQDWLRQ ER[HV DQG FDEOH WUD\V 7KH SURPLQHQW FRPEXVWLEOH
5 PDWHULDOV LQ
HYDOXDWLRQ
Q WKLV ILUH ]RQH DUH WKH QRQVDIHW\UHODWHG
XDWLRQ WKH VDIHW\UHODWHG V\VWHPV
FRQVHUYDWLYHO\
RQVHUYDWLYHO\ DVVXPHG WR EH UHQ GLYLVLRQ % DQG ' SHQHWUDWLRQV
QRQVDIHW\ FDEOHV URXWHG LQ RSHQ FDEOH WUD\V
'LYLVLRQ$DQG&VDIHW\UHODWHGFDEOHVDUHURXWHGLQFORVHGFDEOHWUD\VRUFRQGXLWDQGDUH
$DQG&VDIHW\UHODWHGFDEOHVDUH
QRW DIIHFWHG
IHW\UHODWH HFWHG E\ ILUHV LQ RSHQ FDEOH WUD\V
WUD\V +RZHYHU IRU WKH SXUSRVHV RI WKH VDIH VKXWGRZQ
V\VWHP VHUYHG E\ FDEOHV LQ ILUH ]RQH % DUH
UHQGHUHG XQDYDLODEOH E\ WKH SRVWXODWHG ILUH ,Q IDFW WKH
UH QRQVDIHW\UHODWHG FDEOH WUD\V LQ ILUH ]RQH % DUH ORFDWHG DW OHDVW IHHW IURP WKH
SHQHWUDWLRQV DQG WKHLU DVVRFLDWHG UDFHZD\V URXWLQJ FDEOHV IRU ILUH VDIH
SHQHWUD
' VKXWGRZQFRPSRQHQWV$VLQGLFDWHGLQ8)6$57DEOH$)LUH3URWHFWLRQ6XPPDU\ILUH
WGRZQFRPSRQHQWV$
WGRZQFRPSRQHQWV$VLQ
]RQH % KDV D ILUH GXUDWLRQ
FRQWUROOHG G
G RIOHVVWKDQRQHKRXU
RIOHVVWKDQ
)ROORZLQJ UHPRYDO
LQFOXGLQJ WUDVK DQG YRODWLOHV WKDW ZLOO EH DGPLQLVWUDWLYHO\
PRYDO RI WKH RSHQQR))OH ZDWHU VSUD\ ILUH VXSSUHVVLRQ V\VWHPV LQ ILUH ]RQH
% WKH VPRNH DQG KHDW JHQHUDWHG LQ SRVWXODWHG ILUHV LQ RSHQ FDEOH WUD\V ZLOO ULVH
WKURXJK RSHQLQJV LQ WKH FHLOLQJ RU PLJUDWH YLD WKH ODUJH VWHHO JUDWLQJ FRYHUHG KDWFKHV
EHWZHHQWKHFRQWDLQPHQWPDLQWHQDQFHKDWFKDQGWKHVWHDPJHQHUDWRUFRPSDUWPHQWLQWKH
DGMDFHQW SRUWLRQV RI WKH PDLQWHQDQFH IORRU ILUH ]RQH $) $ LQWR WKH ODUJH DLU
VSDFHLQWKHXSSHUSRUWLRQRIFRQWDLQPHQW7KHVPRNHDQGKRWJDVHVDUHFRROHGE\PL[LQJ
ZLWKWKHDLUDQGE\FRQWDFWZLWKVWUXFWXUDOVXUIDFHVDQGWKXVGRQRWFDXVHSURSDJDWLRQRIWKH
ILUHEH\RQGILUH]RQH%7KHVDIHVKXWGRZQFRPSRQHQWVORFDWHGLQILUH]RQHVDGMDFHQW
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
WR ILUH ]RQH % DUH QRW VXVFHSWLEOH WR GDPDJH E\ WKH GLOXWHG DQG FRROHG VPRNH DQG
JDVHVIURPILUH]RQH%
7DEOH+/-1RQ6DIHW\&DEOH7UD\VWKDW7UDQVLWLRQRXWRI)LUH=RQH$)%
&DEOH7UD\/RFDWLRQ2ULHQWDWLRQ :LGWKRI&DEOH7UD\ /RZHVW(OHYDWLRQRI&DEOH7UD\
HYD
7DJ1XPEHU
+RUL]RQWDO7UD\VEHWZHHQ%DQG$
(51=7' WUD\
(51=7( WUD\
9HUWLFDO7UD\VEHWZHHQ%DQG
DQG
(51=7. WUD\
(51:7$ WUD\
\
5
(51;7$% WUD\
WUD\
(51;7$% WUD\
(51:7$ WUD\
(51:7$ WUD\
$)
9HUWLFDO7UD\VEHWZHHQ%DQG
HWZHHQ%DQG
(51;7$% WUD\
WUD\
(51=7( WUD\
WUD\
D\
(51;7%$
$ %% WUD\
\
(51=7$
$ WUD\
WUD\
(51;7$$
- 7$$ WUD\
WU
7
(51;7&
(51;7&
51;7& WUD\
(51=7&
(5
(51=7& WUD\
(51=7$ WUD\
(51;7$$
(51;7$$ $%
(5 WUD\
(51;7$$
(51;7$$ $%
(51; WUD\
(51=7$
1=7
1=7$ WUD\
7KLVHOHYDWLRQLVEHORZWKHPD[LPXPFRQWDLQPHQWIORRGHOHYDWLRQRI
EHORZWKH 7KHUHPRYDORIWKHRSHQQR))OHZDWHUVSUD\ILUHVXSSUHVVLRQV\VWHPVLQILUH]RQH%
GRHV QRW LQYROYH RU DGYHUVHO\ DIIHFW WKH DELOLW\ RI WKH )36 WR GHWHFW DQG ORFDWH ILUHV DQG
SURYLGHRSHUDWRULQGLFDWLRQRIWKHORFDWLRQ:KHQDILUHLVGHWHFWHGWKHILUHGHWHFWLRQV\VWHP
SURGXFHV DQ DXGLEOH DODUP ORFDOO\ DQG ERWK YLVXDO DQG DXGLEOH DODUPV LQ WKH PDLQ FRQWURO
URRPDQGVHFXULW\FHQWUDODODUPVWDWLRQ7KHILUHEULJDGHUHDFWVWRFRQWURODQGH[WLQJXLVKWKH
ILUH1RILUHLQILUH]RQH%FDQFDXVHVSXULRXVDFWLRQVZKLFKFRXOGFDXVHDEUHDFKLQ
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
WKHUHDFWRUFRRODQWERXQGDU\RUGHIHDWVDIHW\UHODWHGGHFD\KHDWUHPRYDOFDSDELOLW\RUFDXVH
DQLQFUHDVHLQVKXWGRZQUHDFWLYLW\RIWKHUHDFWRU
$GPLQLVWUDWLYH3URFHGXUHVIRU)LUH3URWHFWLRQ
$GPLQLVWUDWLYH SURFHGXUHV IRU ILUH SURWHFWLRQ LQ ILUH ]RQH % FDQ
Q EH GLYLGHG LQWR WZR
RYHUDOOFDWHJRULHVSURFHGXUHLQHIIHFWZKHQFRQWDLQPHQWLVFORVHGDQGZKHQFRQWDLQPHQWLV
QGZK QGZKHQ
RSHQ
'XULQJSRZHURSHUDWLRQWUDQVLHQWFRPEXVWLEOHVLQFRQWDLQPHQWDUHFRQWUROOHGDVSDUWRIWKH
HQWDUHFRQWUROOHGDVSDUW HQWD UHFRQWURO UHTXLUHPHQWV IRU SUHYHQWLRQ FRQWDLQPHQW VXPS GHEULV $Q\ PDWHULDOV
PDWHULDOV
P V EHLQJ
EHLQ EURXJKW LQWR
FRQWDLQPHQW GXULQJ SRZHU RSHUDWLRQV DUH FRQWUROOHG E\ VLWH SURFHGXUHV IRU OLPLWLQJ
OLP VXPS
VX EORFN
'LIIHUHQW SURFHGXUHV IRU FRPEXVWLEOH FRQWURO
7 GHEULV 7UDQVLHQW FRPEXVWLEOHV LQ FRQWDLQPHQW DUH FRQWUROOHG
FR RPEXVWLEOH
E\
E\ WKH ILUH SURWHFWLRQ
SURWH SURFHGXUHVDVSDUWRIWKHRYHUDOOVLWH¶VWUDQVLHQWFRPEXVWLEOHFRQWUROSURFHGXUHIRUWKHSRZHU
RPEXVW FRQWUROSURFHGXUHIRUWKH QWUROSURFHGXUHIRUWK URO DUH LQ SODFH EHFDXVH
EHFDX QHHG WR SHUIRUP
EHF VH RI WKH QH
$)
YDULRXV PDLQWHQDQFH DFWLYLWLHV ZKHQ FRQWDLQPHQW
EURXJKW LQWR FRQWDLQPHQW GXULQJ WLPHV
PHDVXUHV VXFK DV D FRQWLQXRXV ILUH
LPSOHPHQWHG LQ DFFRUGDQFH ZLWK
PDQXDO ILUHILJKWLQJ LV UHDGLO\
FRPEXVWLEOHFRQWUROVDUHUHOD[HG
5(*8/$725<(9$/8$7,21
8$7,21
8$7,21 D[HG
RQWDLQPHQW LV V RSHQ
RSHQ ,I DGGLWLRQDO
UH ZDWFK RU SODFHPHQW LQ D
DGGLWLRQDO FRPEXVWLEOHV DUH
HV ZKHQ VXPS GHEULV LV QRW D
K WKH VLWH¶V WUDQVLHQW FRPEXVWLEOH
\ DYDLODEOH
$SSOLFDEOH5HJXODWRU\5HTXLUHPHQWV&ULWHULD
5HJXODWRU\5HTXLUHPHQWV&ULW 5HJXODWRU\5HTXLUHPHQWV&ULWHUL
&)5
D FRQFHUQ
FRQ D VHDOHG
VHD FRPSHQVDWRU\
PHWDO ER[ ZLOO EH
FRPEXVWLEOH FRQWURO SURFHGXUH $OVR
H GXULQJ RXWDJHV ZKHQ FRQWDLQPHQW LV RSHQ DQG
F UHTXLUHV15&DSSURYDOIRUDQ\PRGLILFDWLRQWRDGGLWLRQWRRUGHOHWLRQ
5 UHTXLUHV15&DSSURYDOI 5 IURPWKHWHUPVDQGFRQGLWLRQVRID&2/7KLVDFWLYLW\LQYROYHVDGHSDUWXUHIURP&2/
WKHWHUPVDQGFRQGLWLRQVRID&2
$SSHQGL[
&2/
&2/
VDQGFRQGLWLRQVRID&2 SSHQGL[ & ,7$$& WKHUHIRUH
WK
&)5 $SSHQGL[ ' 9,,
WKLV DFWLYLW\ UHTXLUHV D SURSRVHG DPHQGPHQW WR WKH
JRYHUQHGE\WKHUHTXLUHPHQWVLQ&)5 E DQG I &)5 E
JRYHUQHGE\WKHUHT JRYHUQHGE\WKHUHTXLUHPH 9,,,$ VWDWHV WKDW H[HPSWLRQV IURP 7LHU LQIRUPDWLRQ DUH
' DOORZV D OLFHQVHH ZKR
WR
Z LQIRUPDWLRQ
IURP 7LHU LQIRUPDWLR LQIRUPD UHIHUHQFHV
U D GHVLJQ FHUWLILFDWLRQ UXOH WR UHTXHVW DQ H[HPSWLRQ
&)5 I UHTXLUHV 15& DSSURYDO IRU DQ\ PRGLILFDWLRQ
DGGLWLRQ WR RU GHOHWLRQ IURP WKH WHUPV DQG FRQGLWLRQV RI D &2/ 7KHVH DFWLYLWLHV
LQYROYH
YH D FKDQJH
FKDQJ WR WKH ,7$$& LQ &2/ $SSHQGL[ & ZLWK FRUUHVSRQGLQJ FKDQJHV WR
7LHU LQIRUPDWLRQ
QIRUPD LQ WKH DVVRFLDWHG SODQWVSHFLILF '&' 7KHUHIRUH 15& DSSURYDO LV
UHTXLUHG SULRU WR PDNLQJ WKH SURSRVHG SODQWVSHFLILF FKDQJHV LQ WKLV OLFHQVH
DPHQGPHQWUHTXHVW
&)5 $SSHQGL[ ' 6HFWLRQ 9,,,%D DOORZV D OLFHQVHH ZKR UHIHUHQFHV
$SSHQGL['WRGHSDUWIURP7LHULQIRUPDWLRQZLWKRXWSULRU15&DSSURYDOXQOHVVWKH
SURSRVHGGHSDUWXUHLQYROYHVDFKDQJHWRRUGHSDUWXUHIURP7LHULQIRUPDWLRQ7LHU
LQIRUPDWLRQ RU WKH 7HFKQLFDO 6SHFLILFDWLRQV RU UHTXLUHV D OLFHQVH DPHQGPHQW XQGHU
SDUDJUDSKV%ERU%FRI6HFWLRQ9,,,$VGLVFXVVHGDERYHWKHSURSRVHGFKDQJHV
WR WKH 8)6$5 VXEVHFWLRQV DQG DQG $SSHQGL[$ LQYROYH FKDQJHV WR WKH
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
7LHULQIRUPDWLRQLQ&2/$SSHQGL[&7KHUHIRUHDQH[HPSWLRQUHTXHVWLVVXEPLWWHG
ZLWKWKLVOLFHQVHDPHQGPHQWUHTXHVW
&)53DUW$SSHQGL[$*'&³)LUHSURWHFWLRQ'UHTXLUHV6WUXFWXUHVV\VWHPV
DQG FRPSRQHQWV 66&V LPSRUWDQW WR VDIHW\ VKDOO EH GHVLJQHG DQG ORFDWHG WR
PLQLPL]HFRQVLVWHQWZLWKRWKHUVDIHW\UHTXLUHPHQWVWKHSUREDELOLW\DQGHIIHFWRIILUHV
LOLW\D LOLW\DQ DQGH[SORVLRQV1RQFRPEXVWLEOHDQGKHDWUHVLVWDQWPDWHULDOVVKDOOEHXVHGZKHUHYHU
VKDOOEHX VKD OO SUDFWLFDO WKURXJKRXW WKH XQLW SDUWLFXODUO\ LQ ORFDWLRQV VXFK K DV
DV WKH
W FRQWDLQPHQW
FRQWD DQG
FRQWUROURRP)LUHGHWHFWLRQDQGILJKWLQJV\VWHPVRIDSSURSULDWHFDSDFLW\DQGFDSDELOLW\
RSULDWHFDSDFLW\DQGF RSULDWHFDS VKDOOEHSURYLGHGDQGGHVLJQHGWRPLQLPL]HWKHDGYHUVHHIIHFWVRIILUHVRQVWUXFWXUHV
UVHHIIHFWVRIILUHVRQVWUXF VHHIIHFWVRIILUH V\VWHPVDQGFRPSRQHQWVLPSRUWDQWWRVDIHW\)LUHILJKWLQJV\VWHPVVKDOOEHGHVLJQHG
ILJKWLQJ ILJKWLQJV\VWH PVVKD PVVKDOOEHGHVLJQ H[SHFWHG ILHOG LQVWDOODWLRQ 7KH WHVW
7 WR DVVXUH WKDW WKHLU UXSWXUH RU LQDGYHUWHQW RSHUDWLRQ GRHV QRW VLJQLILFDQWO\
DWLRQ G ILFDQWO\ LPSDLU WKH
VDIHW\FDSDELOLW\RIWKHVHVWUXFWXUHVV\VWHPVDQGFRPSRQHQWV7KHSDVVLYHILUHVWRSV
DUH PDGH RI QRQFRPEXVWLEOH PDWHULDO ZKLFK
,QVWLWXWHRI(OHFWULFDODQG(OHFWURQLFV(QJLQHHUV
DQGFRPSRQHQWV7KHSDVVLYHI DQGFRPSRQHQWV7KHSDVVLYHILUH
K KDV EHHQ WHVWHG LQ DFFRUGDQFH ZLWK WKH
QHHUV ,((( 6WDQGDUG³,(((6WDQGDUG
6WDQGDUG³,(((
6WDQG IRU)ODPH3URSDJDWLRQ7HVWLQJRI:LUHDQG&DEOH'LQDFRQILJXUDWLRQUHSUHVHQWDWLYHRI
DQG&DEOH'LQDFRQILJXUD
&DEOH'LQDFRQ W UHVXOWV GHPRQVWUDWHG
GHPRQVWUDW WLRQUHSU WKH SDVVLYH
W SDVVLYH ILUH VWRSV ZLOO
$)
SUHYHQW IODPH SURSDJDWLRQ DORQJ WKH QRQVDIHW\UHODWHG
V\VWHP WR VLJQLILFDQWO\ LPSDLU
V\VWHPPDLQWDLQVFRPSOLDQFHZLWK*'&
&)5 3DUW
DQG WR EH
RSHUDWLRQ
QRQVDIHW\UHODWHG RSHQ FDEOH
SDVVLYH ILUH VWRS IRU D KRXU ILUH H[SRVXUH $GGLWLRQDOO\
VSUD\ V\VWHP HOLPLQDWHV WKH H SRVVLELOLW\
RVVLELOLW\ RI D UXSWXUH RU LQD PSDLU WKH
DVVLYHILUHVWRSVLQOLHX PSOLDQFHZLWK*'&
PSOLDQFHZLWK*'&
$SSHQGL[ $ *'& ³(QYLURQPHQWDO
³(QYLURQP UHV66&VLPSRUWDQWWRVDIHW\EHGH H FRPSDWLEOH ZLWK WKH HQYLURQPHQWDO
HQYLURQPH HQYLURQP RQ PDLQWHQDQFH WHVWLQJ DQG SRVWXODWHG
SRV FDEOH WUD\V EH\RQG WKH
$GGLWLRQDOO\ UHPRYDO
UHPRY RI WKH FDEOH WUD\
LQDGYHUWHQW
LQDGYH H VDIHW\ FDSDELOLW\ RI RWKHU
DFWXDWLRQ RI VDLG
RWKHU VWUXFWXUHV V\VWHPV DQG
FRPSRQHQWV7KHUHIRUHWKHXVHSDVVLYHILUHVWRSVLQOLHXRIWKHDFWLYHFDEOHWUD\VSUD\
HWKHXVHSDVVLYHILUHVWRSVLQOLHX
DQG G\QDPLF HIIHFWV GHVLJQ
EDVHV'UHTXLUHV66&VLPSRUWDQWWRVDIHW\EHGHVLJQHGWRDFFRPPRGDWHWKHHIIHFWVRI
UHV66&VLPSRUWDQWWRVDIHW\
FRQGLWLRQV DVVRFLDWHG ZLWK QRUPDO
DFFLGHQWV LQFOXGLQJ ORVVRIFRRODQW
5 DFFLGHQWV H QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V LQ ILUH ]RQH $)% WKDW
HQWV 7KH
ZLOOO FRQWDLQ WKH SDVVLYH
SDVVLY ILUH VWRSV DUH
WKHVH QRQVDIHW\UHODWHG FDEOH
ZLWK*'&
Z ZLWK*'&
FDE WUD\V
WU D QRW ORFDWHG LQ WKH ]RQHRILQIOXHQFH =2, RI
SRVWXODWHGKLJKHQHUJ\OLQHEUHDNV7KHUHIRUHWKHSURSRVHGXVHRISDVVLYHILUHVWRSV
SRVWXODWHGKLJKHQHUJ\OLQ SRVWXODWHGKLJKHQHUJ\OLQHEUHDNV LQ ILUH ]RQH % GRHV QRW DIIHFW FRPSOLDQFH
&)53DUW$SSHQGL[$*'&³(PHUJHQF\FRUHFRROLQJ'UHTXLUHVDV\VWHPWR
&)53DUW$SSHQG
&)53DUW$S
' SURYLGH DEXQGDQW HPHUJHQF\
PDJHWKDWFRX FODG PHWDOZDWHU
HP H FRUH FRROLQJ EH SURYLGHG WR WUDQVIHU KHDW IURP WKH
UHDFWRUFRUHIROORZLQJDQ\ORVVRIUHDFWRUFRRODQWDWDUDWHVXFKWKDW
HDFWRUFRUHIROORZ HDFWRUFRUHIROORZLQ GDPDJHWKDWFRXOGLQWHUIHUHZLWKFRQWLQXHGHIIHFWLYHFRUHFRROLQJLVSUHYHQWHGDQG
IXHODQGFODG
PHWDOZDW UHDFWLRQ LV OLPLWHG WR QHJOLJLEOH DPRXQWV 7KH SDVVLYH FRUH FRROLQJ
V\VWHP 3;6 3; SURYLGHVUHDFWRUFRRODQWV\VWHP 5&6 HPHUJHQF\FRUHFRROLQJGXULQJ
GHVLJQ EDVLV HYHQWV E\ UHFLUFXODWLQJ ZDWHU FRQGHQVHG RQ WKH FRQWDLQPHQW YHVVHO
WKURXJKWKH5&67KHKLJKGHQVLW\VLOLFRQHHODVWRPHU +'6( PDWHULDORIWKHSDVVLYH
ILUH VWRSV LV PDGH RI QRQILEURXV KLJKGHQVLW\ PDWHULDO OEVIW WKDW H[FHHGV WKH
PLQLPXP GHQVLW\ UHTXLUHPHQW RI OEVIW IRU FRDWLQJV DQG VHDODQWV LQVLGH
FRQWDLQPHQW7KHXVHRI+'6(PDWHULDOIRUWKHFRQVWUXFWLRQRIWKHILUHVWRSVSUHFOXGHV
WKH WUDQVSRUW RI WKH ILUH VWRS PDWHULDO WR WKH VXPS LQ WKH HYHQW RI D KLJK HQHUJ\ OLQH
EUHDN RU RWKHU IORRGLQJ HYHQW LQVLGH FRQWDLQPHQW $Q\ ILEURXV PDWHULDO XVHG DV
GDPPLQJPDWHULDOLVUHPRYHGIURPWKHILUHVWRSDIWHUWKHIRDPKDVFXUHGDQGWKHUHIRUH
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
ZLOO QRW EH WUDQVSRUWHG WR WKH FRQWDLQPHQW VXPSV GXULQJ WKH UHFLUFXODWLRQ SKDVH RI D
GHVLJQEDVLVDFFLGHQW,QDGGLWLRQWKHQRQVDIHW\UHODWHGRSHQFDEOHWUD\VLQILUH]RQH
$)%WKDWZLOOFRQWDLQWKHSDVVLYHILUHVWRSVDUHQRWLQWKH]RQHRILQIOXHQFH
=2, RISRVWXODWHGKLJKHQHUJ\OLQHEUHDNV%HFDXVHWKHSDVVLYHILUHVWRSVDUHPDGH
RIDKLJKGHQVLW\PDWHULDOWKDWH[FHHGVWKHPLQLPXPGHQVLW\UHTXLUHPHQWRIOEVIW H
DUH QRW LQ D =2, DQG DOVR EHFDXVH WKH\ UHPDLQ FKHPLFDOO\ \ VWDEOH
VWDE VWD LQ D IORRGHG
FRQGLWLRQ WKH SDVVLYH ILUH VWRSV ZLOO QRW EHFRPH VRXUFHV RI GHEULV
GH WKDW
W PLJKW EH
JHQHUDWHGIROORZLQJDGHVLJQEDVLVDFFLGHQW7KHUHIRUHWKHSURSRVHGFKDQJHVGRQRW
HSURSRVHGFKDQ HSUR S DIIHFWFRPSOLDQFHZLWK*'&
3UHFHGHQW
1RSUHFHGHQWLVLGHQWLILHG
6LJQLILFDQW+D]DUGV&RQVLGHUDWLRQ
7KH UHTXHVWHG DPHQGPHQW SURSRVHV
7 HV D FKDQJH 8SGDWHG )LQDO 6 DQJH WR 8S 6DIHW\ $QDO\VLV
]RQH%
$)
5HSRUW 8)6$5 7LHULQIRUPDWLRQ
7KH UHTXHVWHG DPHQGPHQW
RQ ZKLFKLQYROYHVD
&2/ $SSHQGL[& DQG WKH FRUUHVSRQGLQJ
QGPHQW UHTXLUHV
DQGDQG$SSHQGL[
YROYHVD FKDQJHWR &RPELQHG/LFHQVH
RUUHVSRQGLQJ SODQWVSHFLILF
SODQWVSHFLI 'HVLJQ
XLUHV FKDQJHV WR 7LH DQGDQG$SSHQGL[$ZKLFK 7HVWV$QDO\VHVDQG$FFHSWDQFH&ULWHULD
'HVLJQ &RQWURO 'RFXPHQW
'&' 7LHU LQIRUPDWLRQUHODWLYHWRWKHXVHRISDVVLYHILUHVWRSVRQFDEOHWUD\VLQILUH
DWLYHWRWKHXVHRISDVVLYHILUHV YHWRWKHXVHRISDVVLYHILUH WRS 7LHU LQIRUPDWLRQ LQ 8)6$5
6XEVHHFWLRQVDQGDQG$SSHQGL[$ZKLFKLQYROYHFKDQJHVWR,QVSHFWLRQV
DQG$FFHSWDQFH&ULWHULD ,7$$& )LJXUHVDQGRI&2/
DQG$FFHSWDQFH&ULWHULD
$SSHQGL[&DQGFRUUHVSRQGLQJFKDQJHVWRWKHSODQWVSHFLILF'&'7LHULQIRUPDWLRQ
QGFRUUHVSRQGLQJFKDQJHVWR QGFRUUHVSRQGLQJFKDQJHVWRWKHS 7KHFKDQJHWRWKH8)6$5SURSRVHVWKHXVHRISDVVLYHILUHVWRSVLQOLHXRIDPDQXDOO\
JHWRWKH8)6$5SURSRVHVWKHXVH HWRWKH8)6$5SURSRVHVWKHXV DFWLYDWHGVXSSUHVVLRQIRUFRQWDLQPHQWILUH]RQH$)%7KHXVHRISDVVLYH
HGVXSSUHVVLRQIRUFRQWDLQPHQWILUH SSUHVVLRQIRUFRQWDLQPHQWILU 5 ILUHVWRSVLVUHFRJQL]HGE\5HJXODWRU\*XLGH7KHSDVVLYHILUHVWRSVSURSRVHGLQ
VWRSVLVUHFRJQL]HGE\5HJXODWRU\*
FRJQL]HGE\5HJXODWRU\*
WKLVUHTXHVWDPHQGPHQWDUHGHVLJQHGDQGWHVWHGWRVKRZWKDWILUHVZLOOQRWSURSDJDWH
KLVUHTXHVWDPHQGPHQWDUHGHVLJQH LVUHTXHVWDPHQGPHQW
$GGLWLRQDOO\ WKH SDVVLYH ILUH VWRS PDWHULDORIFRQVWUXFWLRQ
RXWVLGH WKH ILUH ]RQH $
$GGLWLRQD FRQWDLQPHQW UUHIXHOLQJ ZDWHU VWRUDJH WDQN ,5:67 DQG FRQWDLQPHQW
FRPSOLHV ZLWK LQ FRQWDLQPHQ UHFLUFXODWLRQ VFUHHQV GHVLJQ FULWHULD RI 8)6$5 6XEVHFWLRQ )LQDOO\ WKH
FUHHQV GHVLJQ SDVVLYHILUHVWRSVLQQRQVDIHW\UHODWHGRSHQFDEOHWUD\VDUHPRUHUHOLDEOHWKDQDFWLYH
SDVVLYHILUHVWRSVLQ SDVVLYHILUHVWRSVLQQRQV
' V\VWHPVVXFKDVWKHFXUUHQWRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPEHFDXVHWKH\
V\VWHPVVXFKDVWKH V\VWHPVVXFKDVWKHFX PHFKDQLFDO RU KXPDQ DFWLRQ WR SHUIRUP WKHLU SURWHFWLYH IXQFWLRQ :KHQ
UHTXLUH QR PHFKDQ PHFKDQLF SURWHFWLRQLVUHTXLUHGWKHUHLVQRGHOD\IRURSHUDWRURUPHFKDQLFDOUHVSRQVH
RWHFWLRQLVUHTXL RWHFWLRQLVUHTXLU
$Q HYDOXDWLRQ
OXDWLR WR GHWHUPLQH ZKHWKHU RU QRW D VLJQLILFDQW KD]DUGV FRQVLGHUDWLRQ LV
LQYROYHG ZLWK WKH SURSRVHG DPHQGPHQW ZDV FRPSOHWHG E\ IRFXVLQJ RQ WKH WKUHH
VWDQGDUGVVHWIRUWKLQ&)5³,VVXDQFHRIDPHQGPHQW'DVGLVFXVVHGEHORZ
'RHV WKH SURSRVHG DPHQGPHQW LQYROYH D VLJQLILFDQW LQFUHDVH LQ WKH
SUREDELOLW\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG"
5HVSRQVH 1R
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
7KHSURSRVHGFKDQJHVGRQRWDIIHFWWKHRSHUDWLRQRUUHOLDELOLW\RIDQ\V\VWHP
VWUXFWXUH RU FRPSRQHQW 66& UHTXLUHG WR PDLQWDLQ D QRUPDO SRZHU RSHUDWLQJ
FRQGLWLRQ RU WR PLWLJDWH DQWLFLSDWHG WUDQVLHQWV ZLWKRXW VDIHW\UHODWHG V\VWHPV
7HVWLQJ KDV GHPRQVWUDWHG WKDW WKH SDVVLYH ILUH VWRSV SUHYHQW SURSDJDWLRQ RI
ILUHVDORQJWKHOHQJWKRIFDEOHWUD\VDQGSUHYHQWWKHSURSDJDWLRQRIFDEOHWUD\
J ILUHVWRDGMDFHQWILUH]RQHV7KHSURSRVHGFKDQJHVGRQRWDIIHFWWKHRSHUDWLRQ
RWDII RWDIIH RIHTXLSPHQWZKRVHIDLOXUHFRXOGLQLWLDWHDQDFFLGHQWSUHYLRXVO\DQDO\]HG7KH
SUHYLR \D SUHYLRXVO H[LVWHQFHRUIDLOXUHRISDVVLYHILUHVWRSVLQILUH]RQH$)%GRHVQRW
H
H$)
DIIHFWQRUPDOHTXLSPHQWRSHUDWLRQ
7KH SURSRVHG FKDQJHV GR QRW DGYHUVHO\ DIIHFW IHFW WKH UHOLDELOLW\ RU RI DQ
RUU IXQFWLRQ RI 66&UHOLHGXSRQWRPLWLJDWHDQDFFLGHQWSUHYLRXVO\DQDO\]HG7KHH[LVWHQFHRU
SUHYLRXVO\DQDO\]HG7KHH SUHYLRXVO\DQDO\]HG7KHH[LVWHQFH IDLOXUH RI SDVVLYH ILUH VWRSV LQ ILUH ]RQH
RQH $)% ZLOO QRW DGYH DGYHUVHO\
D DIIHFW SDVVLYH FRUH FRROLQJ V\VWHP P 3;6 SHUIRUPDQFH GXULQJ FRQW FRQWDLQPHQW
FRQ W UHFLUFXODWLRQEHFDXVHWKHSDVVLYHILUHVWRSVDUHORFDWHGRXWVLGHRIWKH]RQHRI
ILUHVWRSVDUHORFDW ILUHVWRSVDUHORFDWHGRXWVLG HRIW LQIOXHQFH =2, RI SRVWXODWHG KLJK HQHUJ\ OLQH EUHDNV
EU DQG WKH
WKH SDVVLYH ILUH
VWRSV¶ PDWHULDORIFRQVWUXFWLRQRQ FRPSOLHV HV ZLWK LQ LQFRQWDLQPHQW UHIXHOLQJ ZDWHU
VWRUDJHWDQN ,5:67 DQGFRQWDLQPHQWUHFLUFXODWLRQVFUHHQVGHVLJQFULWHULDIRU
GFRQWDLQPHQWUHFLUFXO GFRQWDLQPHQWUHFLUFXODWLRQVFUHHQV GHEULVJHQHUDWLRQDQGWUDQVSRUW
UDQVSRUW
DQVSRUW
7KH H[LVWLQJ DFWLYH
H RSHQ
Q QR))OH FDEOH WUD\ VXSSUHVVLRQ
VXSSUH V\VWHP LV QRW IXOO\
DXWRPDWLF LV QRQVDIHW\UHODWHG
HODWHG DQG LV QRW FUHGLWHG
RQVDIHW\UHODWHG FUHGL FUH LQ WKH SUREDELOLVWLF ULVN
DVVHVVPHQW 35$ 7KHUHIRUH UHSODFLQJ WKH DFWLYH
D RSHQ QR))OH FDEOH WUD\
VXSSUHVVLRQQ V\VWHP ZLWK SDVVLYH ILUH
IL VWRSV GRHV
G QRW KDYH DQ LPSDFW RQ 35$
FDOFXODWLRQVDQGUHVXOWV
RQVDQGUHVXOW RQVDQGUHVXOWV
7KHUHIRUHWKHSURSRVHGDPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQ
HUHIRUHWKHSURSRVHGDPHQGPHQ HUHIRUHWKHSURSRVHGDPHQGPHQWG WKHSUREDELOLW\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG
KHSUREDELOLW\RUFRQVHTXHQFHVRID SUREDELOLW\RUFRQVHTXHQFHVRID
'5
'RHVWKHSURSRVHGDPHQGPHQWFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQW
'RHVWKHSURSR
'RHVWKHSURSRVHGDPHQGPH NLQGRIDFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG"
NLQGRIDFFLGHQW NLQGRIDFFLGHQWIURPDQ\
5HVSRQVH
RQVH 1R
V\VWH 1R
7KH SURSRVHG
SRVH FKDQJHV
GLQL DFFLG SDVVLYH ILUH
FKD WKDWFRXOGLQLWLDW GR QRW DIIHFW WKH RSHUDWLRQ RI V\VWHPV RU HTXLSPHQW
WKDWFRXOGLQLWLDWHDQHZRUGLIIHUHQWNLQGRIDFFLGHQWRUDOWHUDQ\66&VXFKWKDW
DQHZDFFLGHQWLQLWLDWRURULQLWLDWLQJVHTXHQFHRIHYHQWVLVFUHDWHG7KHXVHRI
DQHZDFFLGH ILU VWRSV LV UHFRJQL]HG E\ 5HJXODWRU\ *XLGH 7KH SDVVLYH ILUH
VWRSV LQ
LQ QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V DUH PRUH UHOLDEOH WKDQ DFWLYH
V\VWHPV VXFK DV WKH FXUUHQW RSHQ QR))OH FDEOH WUD\ VXSSUHVVLRQ V\VWHP
EHFDXVH WKH\ UHTXLUH QR PHFKDQLFDO RU KXPDQ DFWLRQ WR SHUIRUP WKHLU
SURWHFWLYHIXQFWLRQ:KHQSURWHFWLRQLVUHTXLUHGWKHUHLVQRGHOD\IRURSHUDWRU
RUPHFKDQLFDOUHVSRQVH7HVWLQJKDVGHPRQVWUDWHGWKDWWKHSDVVLYHILUHVWRSV
SUHYHQW SURSDJDWLRQ RI ILUHV DORQJ WKH OHQJWK RI FDEOH WUD\V DQG SUHYHQW WKH
SURSDJDWLRQRIFDEOHWUD\ILUHVWRDGMDFHQWILUH]RQHV
7KHH[LVWHQFHRUIDLOXUHRISDVVLYHILUHVWRSVLQILUH]RQH$)%ZLOO
QRW DGYHUVHO\ DIIHFW SDVVLYH FRUH FRROLQJ V\VWHP 3;6 SHUIRUPDQFH GXULQJ
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
FRQWDLQPHQWUHFLUFXODWLRQEHFDXVHWKHSDVVLYHILUHVWRSVDUHORFDWHGRXWVLGHRI
WKH ]RQH RI LQIOXHQFH =2, RI SRVWXODWHG KLJK HQHUJ\ OLQH EUHDNV DQG WKHLU
PDWHULDORIFRQVWUXFWLRQ FRPSOLHV ZLWK LQ FRQWDLQPHQW UHIXHOLQJ ZDWHU VWRUDJH
WDQN ,5:67 DQG FRQWDLQPHQW UHFLUFXODWLRQ VFUHHQV GHVLJQ FULWHULD IRU GHEULV
JHQHUDWLRQDQGWUDQVSRUW
7KHUHIRUHWKHSURSRVHGDPHQGPHQWGRHVQRWFUHDWHWKHSRVVLELOLW\RIDQHZRU
KHSRV KHSRVVLELOL GLIIHUHQWNLQGRIDFFLGHQWIURPDQ\DFFLGHQWSUHYLRXVO\HYDOXDWHG
O\HYDO O\HYDOXDWHG
'RHV WKH SURSRVHG DPHQGPHQW LQYROYH D VLJQLILFDQW UHGXFWLRQ UHGXFWLRQ LQ D
PDUJLQRIVDIHW\"
5HVSRQVH 1R
7 7KHSURSRVHGFKDQJHVGRQRWDIIHFWH[LVWLQJVDIHW\PDUJLQV7KHFXUUHQWRSHQ
FWH[LVWLQJVDIHW\PDUJLQV7KHFXU QR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPLVQRQVDIHW\UHODWHG7KHXVHRISDVVLYH
\VWHPLVQRQVDIHW\UHODWHG7KHXV HPLVQRQVDIHW\U ILUH VWRSV LV UHFRJQL]HG E\ 5HJXODWRU\
HJXODWRU\
U\ *XLGH
7KH SDVVLYH
SDVVLY ILUH VWRSV LQ
$)
QRQVDIHW\UHODWHGRSHQFDEOHWUD\VDUHPRUHUHOLDEOHWKDQDFWLYHV\VWHPVVXFK
SURWHFWLRQ LV UHTXLUHG
PRQVWUDWHG
EOHWUD\VDUHPRUHUHOLDEOHWKDQDFW PRUHUH DVWKHFXUUHQWRSHQQR))OHFDEOHWUD\VXSSUHVVLRQV\VWHPEHFDXVHWKH\UHTXLUH
QR PHFKDQLFDO RU KXPDQ
]OHFDEOHWUD\VXSSUHVVLRQ
]OHFDEOHWUD\VXSSUHVVLRQV\VWHPE DQ DFWLRQ WR SHUIRUP WKHLU SURWHFWLYH
PDQ
HG WKHUH
7HVWLQJ KDV GHPRQVWUDWHG G WKDW WKH SDVVLYH ILUH VW HOHQJWKRIFDEOHWUD\VDQGSUHYHQW ILUHVWRDGMDFHQWILUH]RQHV
FHQWILUH]
FHQWILUH]RQHV
EOHWUD\VDQGSUHYHQW SURW HUH LV QR GHOD\ IRU RSHUDWRU
IXQFWLRQ :KHQ
RSHUDWRU RU PHFKDQLFDO UHVSRQVH
VWRSV SUHYHQW SURSDJDWLRQ RI
ILUHVDORQJWKHOHQJWKRIFDEOHWUD\VDQGSUHYHQWWKHSURSDJDWLRQRIFDEOHWUD\
7KHUHIRUHWKHSURSRVHGDPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWUHGXFWLRQLQ
RUHWKHSURSRVHGDPHQGPH RUHWKHSURSRVHGDPHQGPHQWGRH DPDUJLQRIVDIHW\
DUJLQRIVDIHW\
DUJLQRIVDIHW\
%DVHGRQWKHDERYHLWLVFRQFOXGHGWKDWWKHSURSRVHGDPHQGPHQWGRHVQRWLQYROYHD
RQWKHDERYHLWLVFRQFOXGHGWKDW
HDERYHLWLVFRQFOXGHGWKDW
5
VLJQLILFDQW
LILFDQW KD]DUGV XQGHU WKH VWDQGDUGV VHW IRUWK LQ &)5 F
DUGV FRQVLGHUDWLRQ XQGH DQGDFFRUGLQJO\DILQGLQJRI³QRVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQ'LVMXVWLILHG
QGDFFRUGLQJO\DILQGLQ QGDFFRUGLQJO\DILQGLQJRI³QRVLJ
&RQFOXVLRQV
&RQFOXVLRQV
%DVHGRQWKHFRQVLGHUDWLRQVGLVFXVVHGDERYH
%DVHGRQWKHFRQVLG
%DVHGRQWKHFRQVLGHUDWLR WKHUHLVUHDVRQDEOHDVVXUDQFHWKDW
' WKHKHDOWKDQGVDIHW\RIWKHSXEOLFZLOOQRWEHHQGDQJHUHGE\RSHUDWLRQLQWKHSURSRVHG
WKHKHDOWKDQGVDIHW WKHKHDOWKDQGVDIHW\RI
PDQQHU VXFK DFWLYLWLHV
UHJXODWLRQVDQG
DF D ZLOO EH FRQGXFWHG LQ FRPSOLDQFH ZLWK WKH &RPPLVVLRQ¶V
JXODWLRQVDQG WKHLVVXDQFHRIWKHDPHQGPHQWZLOOQRWEHLQLPLFDOWRWKHFRPPRQ
GHIHQVHDQGVHFXULW\RUWRWKHKHDOWKDQGVDIHW\RIWKHSXEOLF7KHDERYHHYDOXDWLRQV
QVHDQGVHF GHPRQVWUDWHWKDWWKHUHTXHVWHGFKDQJHVFDQEHDFFRPPRGDWHGZLWKRXWDQLQFUHDVHLQ
VWUDWHW WKHSUREDELOLW\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHGZLWKRXWFUHDWLQJ
E WKH SRVVLELOLW\ RI D QHZ RU GLIIHUHQW NLQG RI DFFLGHQW IURP DQ\ DFFLGHQW SUHYLRXVO\
HYDOXDWHGDQGZLWKRXWDVLJQLILFDQWUHGXFWLRQLQDPDUJLQRIVDIHW\+DYLQJDUULYHGDW
QHJDWLYH GHFODUDWLRQV ZLWK UHJDUG WR WKH FULWHULD RI &)5 WKLV DVVHVVPHQW
GHWHUPLQHG WKDW WKH UHTXHVWHG FKDQJH GRHV QRW LQYROYH D 6LJQLILFDQW +D]DUGV
&RQVLGHUDWLRQ
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
(19,5210(17$/&216,'(5$7,216
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\ 61&RU³/LFHQVHH' LVUHTXHVWLQJDQDPHQGPHQWWR
&RPELQHG /LFHQVH &2/ 1RV 135 DQG 13) IRU 9RJWOH (OHFWULF *HQHUDWLQJ 3ODQW
9(*3 8QLWV DQG UHVSHFWLYHO\ 7KH UHTXHVWHG DPHQGPHQW SURSRVHV S D FKDQJH WR
8SGDWHG )LQDO 6DIHW\ $QDO\VLV 5HSRUW 8)6$5 7LHU LQIRUPDWLRQ RQ
RQ ZKLFK
Z LQYROYHV D
FKDQJHWR&2/$SSHQGL[& DQGWKHFRUUHVSRQGLQJSODQWVSHFLILF'HVLJQ&RQWURO'RFXPHQW
'HVLJQ
'HVLJQ&RQW
'&' 7LHU LQIRUPDWLRQ UHODWLYH WR WKH XVH RI SDVVLYH ILUH VWRSV L OLHX RI D PDQXDOO\
WRSV LQ
DFWLYDWHGVXSSUHVVLRQIRUFRQWDLQPHQWILUH]RQH$)% %
7KH UHTXHVWHG DPHQGPHQW UHTXLUHV FKDQJHV WR 7LHU LQIRUPDWLRQ 8)6$5
LQIRUPDWLRQ LQ 8)6 6XEVHFWLRQVDQGDQG$SSHQGL[$ZKLFKLQYROYHFKDQJHVWR,QVSHFWLRQV7HVWV
QYROYH QYROYHFKDQ JHVWR,QVSHFWLRQV7HV QVSHFW 7KH FKDQJH WR WKH 8)6$5 SURSRVHV WKH XVH
DFWLYDWHG VXSSUHVVLRQ IRU FRQWDLQPHQW ILUH
7
$QDO\VHVDQG$FFHSWDQFH&ULWHULD ,7$$& )LJXUHVDQGRI&2/$SSHQGL[&
DQG RI&2/$SSHQG DQGFRUUHVSRQGLQJFKDQJHVWRWKHSODQWVSHFLILF'&'7LHULQIRUPDWLRQ
'&'7LHULQIRUP
'&'7LHULQIRUPDWLRQ
2/$SS VH RI SDVVLYH ILUH VWRSV
H ]RQH $)%
$)
V LQ OLHX RI
RI D PDQXDOO\
7KH XVH RI SDVVLYH ILUH
$)
VWRSVLVUHFRJQL]HGE\5HJXODWRU\*XLGH7KHSDVVLYHILUHVWRSVLQQRQVDIHW\UHODWHG
FDEOH WUD\ VXSSUHVVLRQ V\VWHP EHFDXVH
RUPHFKDQLFDOUHVSRQVH
GH7KHSDVVLYHILUH SDVVLY RSHQ FDEOH WUD\V DUH PRUH UHOLDEOH WKDQ DFWLYH V\VWHPV VXFK
:KHQSURWHFWLRQLVUHTXLUHGWKHU QSURWHFWLRQLVUHTXLUHGWKH
VWRSVLQ
VXFK DV WKH FXUUHQW RSHQ QR))OH
DXVH WKH\ UHTXLUH QR PHFKDQLFDO
HFDXVH PHFKDQLF PHFK RU KXPDQ DFWLRQ WR
SHUIRUPWKHLUSURWHFWLYHIXQFWLRQ:KHQSURWHFWLRQLVUHTXLUHGWKHUHLVQRGHOD\IRURSHUDWRU
6HFWLRQVDQGRIWKLVOLFHQVHDPHQGPHQWUHTXHVWSURYLGHWKHGHWDLOVRIWKHSURSRVHG
FKDQJHV
LFHQVHDPHQGPHQWUHTXH LFHQVHDPHQGPHQWUHTXHVWSURYLGH 7KH/LFHQVHHKDVGHWHUPLQHGWKDWWKHDQWLFLSDWHGFRQVWUXFWLRQDQGRSHUDWLRQDOHIIHFWVRIWKH
VGHWHUPLQHGWKDWWKHDQWLFLSDWHG VGHWHUPLQHGWKDWWKHDQWLFLSDWHGFR SURSRVHG DPHQGPHQW
GPHQW PHHWV WKH HOLJLELOLW\ FULWHULD
HQGPHQW FULWH IRU FDWHJRULFDO H[FOXVLRQ VHW IRUWK LQ
5
&)5
(i) There
F LQWKDW
LQWKDW
ere is no significant hazards haz
$V GRFXPHQWHG LQ 6HFWLRQ
DPHQGPHQW UHTXHVW DQ HYDO consideration.
conside
6LJQLILFDQW +D]DUGV &RQVLGHUDWLRQ RI WKLV OLFHQVH
HYDOXDWLRQ ZDV FRPSOHWHG WR GHWHUPLQH ZKHWKHU RU QRW D
VLJQLILFDQWKD]DUGVFRQVLGHUDWLRQLVLQYROYHGE\IRFXVLQJRQWKHWKUHHVWDQGDUGVVHWIRUWK
VLJQLILFDQWKD]DUGVFR VLJQLILFDQWKD]DUGVFRQVLGHU
' LQ &)5 ³,VV GHWHUPLQHGWKDW
PHQWGRHV
DFFLGHQW SUHYLRXVO\
SUHYLR
³,VVXDQFH RI DPHQGPHQW' 7KH 6LJQLILFDQW +D]DUGV &RQVLGHUDWLRQ
³,VVXDQ HWHUPLQHGWKDW WKHUHTXHVWHGDPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQ
WKH
WK WKHSUREDELOLW\RUFRQVHTXHQFHVRIDQDFFLGHQWSUHYLRXVO\HYDOXDWHG
SUREDELOLW\RUFR WKHUHTXHVWHG
DPHQGPHQWGRHVQRWFUHDWHWKHSRVVLELOLW\RIDQHZRUGLIIHUHQWNLQGRIDFFLGHQWIURPDQ\
HYDOXDWHG DQG WKH UHTXHVWHG DPHQGPHQW GRHV QRW LQYROYH D
VLJQLILFDQWUHGXFWLRQLQDPDUJLQRIVDIHW\7KHUHIRUHLWLVFRQFOXGHGWKDWWKHUHTXHVWHG
DPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWKD]DUGVFRQVLGHUDWLRQXQGHUWKHVWDQGDUGVVHW
IRUWK LQ &)5 F DQG DFFRUGLQJO\ D ILQGLQJ RI ³QR VLJQLILFDQW KD]DUGV
FRQVLGHUDWLRQ'LVMXVWLILHG
3DJHRI
1''5$)7
(QFORVXUH
'5$)75HTXHVWIRU/LFHQVH$PHQGPHQW5HJDUGLQJ)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH
6SUD\5HPRYDO /$5
(ii) There is no significant change in the types or significant increase in the amounts of any effluents that may be released offsite.
7KH SURSRVHG FKDQJHV GR QRW DIIHFW DQ\ DVSHFW RI SODQW FRQVWUXFWLRQRU RSHUDWLRQ WKDW
LQWURGXFHVDFKDQJHWRDQ\HIIOXHQWW\SHV IRUH[DPSOHHIIOXHQWVFRQWDLQLQJFKHPLFDOVRU
ELRFLGHV VDQLWDU\ V\VWHP HIIOXHQWV DQG RWKHU HIIOXHQWV DQG GRHV V QRW
QRW DIIHFW DQ\ SODQW
UDGLRORJLFDORUQRQUDGLRORJLFDOHIIOXHQWUHOHDVHTXDQWLWLHV7KHSURSRVHGFKDQJHVGRQRW
SURSRV SURSRVHGFK DIIHFW WKH IXQFWLRQDOLW\ RI DQ\ GHVLJQ IHDWXUH RU RSHUDWLRQDO DUUDQJ DUUDQJHPHQWV FU FUHGLWHG ZLWK
FRQWUROOLQJ WKH UHOHDVH RI HIIOXHQWV GXULQJ SODQW RSHUDWLRQ Q 7KH SDVVLYH FRUH
7KH SD FRUH FRROLQJ
V\VWHPDQGWKHFRQWDLQPHQWYHVVHOZRUNLQFRQFHUWWRPDLQWDLQFRUHFRROLQJDQGPLWLJDWH
DLQWDLQFRUHFRR DLQWDLQFRUHFRROLQJDQGP WKHUHOHDVHRIUDGLDWLRQGXULQJRIGHVLJQEDVLVHYHQWV7KHSDVVLYHILUHVWRSVDUHPDGH
V7KHSDVVLYHILUHVW V7KHSDVVLYHILUHVWRSVDUHPD 7
RIDKLJKGHQVLW\PDWHULDOWKDWH[FHHGVWKHPLQLPXPGHQVLW\UHTXLUHPHQWRIOEVIW HIIOXHQWV WKDW PD\ EH UHOHDVHG RIIVLWH 7KHUHIRUH
XPGH XPGHQVLW\UHT LQFUHDV LQ
XLUHPHQWRIOEV
HUHIRUH LW LV FRQFOXGHG
KHUHIRUH
PHQWR DUHQRWLQD=2,DQGUHPDLQFKHPLFDOO\VWDEOHLQDIORRGHGFRQGLWLRQ$FFRUGLQJO\WKHUH
QDIOR QDIORRGHGFRQ LV QR VLJQLILFDQW FKDQJH LQ WKH W\SHV RU VLJQLILFDQW
JQLILFDQW LQFUHDVH
GLWLRQ$FFRUGLQJO\
FRUGLQJ DPRXQWV
RXQWV RI DQ\
LQ WKH DPRXQWV FRQF GHG WKDW WKH UHTXHVWHG
FRQFOX DPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWFKDQJHLQWKHW\SHVRUDVLJQLILFDQWLQFUHDVHLQ
QWFKDQJHLQWKHW\SHVRU DQJHLQWKHW\SH UDVLJQLILFD WKHDPRXQWVRIDQ\HIIOXHQWVWKDWPD\EHUHOHDVHGRIIVLWH
EHUHOHDVHGRIIVLWH
HGRIIVLWH
exposure.
$)
(iii) There is no significant increase
)XUWKHUPRUH FRPSDQ\
RI SHUVRQQHO
e in individual or cumulative se 7KH SURSRVHG FKDQJHV GR QRW DIIHFW
UDGLDWLRQ VKLHOGLQJ 7KH
DQWLFLSDWHG WR UHTXLUH
cumul XLUH LQFUHDVHG PDLQWHQDQFH
PDLQWHQD PSDQ\ DQG VWDWLRQ SROLFLH ZLWKLQ OLPLWV GHILQHG
YHSURFHGXUHVDQGSUDFWLFHVDUHLPS QHO
6WDQGD
6 occupational oc IIHFW ZDOOV IORRUV RU RWKHU
H XVH RI SDVVLYH
VLYH ILUH VWRSV LQ ILUH
RW radiation VWUXFWXUHV WKDW SURYLGH
ILUH ]RQH $)% LV QRW
RU LQVSHFWLRQ LQVLGH FRQWDLQPHQW
PDLQWDLQ UDGLDWLRQ H[SRVXUH RI SHUVRQQHO
SROLFLHV PDLQWD ILQHG E\ &)53DUW 6WDQGDUGV IRU 3URWHFWLRQ $JDLQVW 5DGLDWLRQ
$GPLQLVWUDWLYHSURFHGXUHVDQGSUDFWLFHVDUHLPSOHPHQWHGWRPDLQWDLQUDGLDWLRQH[SRVXUH
YHSURFHGXUHVDQGSUDFWLFHVDUHLP DFKLHYDEOH 7KHUHIRUH LW LV FRQFOXGHG WKDW WKH
O DV ORZ DV LV UHDVRQDEO\ DFKLH 5 UHTXHVWHGDPHQGPHQWGRHVQRWLQYROYHDVLJQLILFDQWLQFUHDVHLQLQGLYLGXDORUFXPXODWLYH
%DVHG
HGDPHQGPHQWGRHVQRWLQYROYHD
QGPHQWGRHVQRWLQYROYHD
RFFXSDWLRQDOUDGLDWLRQH[SRVXUH
SDWLRQDOUDGLDWLRQH[SRVXUH
DWLRQDOUDGLDWLRQH[S HG RQ WKH DERYH UHYLHZ RI WKH UHTXHVWHG
QWLFLSDWHGFRQVWUXFWLRQDQGRSHUD QWLFLSDWHGFRQVWUXFWLRQDQGRSHUDWL L D VLJQLILFDQW KD]DUGV FRQVL LQFUHDVH
U FRQVLGHUDWLRQ
QFUHDVH LQ WKH DPRXQWV RI DQ GH DPHQGPHQW LW KDV EHHQ GHWHUPLQHG WKDW
DQWLFLSDWHGFRQVWUXFWLRQDQGRSHUDWLRQDOHIIHFWVRIWKHUHTXHVWHGDPHQGPHQWGRQRWLQYROYH
LL D VLJQLILFDQW FKDQJH LQ WKH W\SHV RU VLJQLILFDQW
DQ\ HIIOXHQWV WKDW PD\ EH UHOHDVHG RIIVLWH RU LLL D VLJQLILFDQW
' LQFUHDVH
HDVH LQ LQGLYLGXDO R UHTXHVWHG
VWHG DPHQGPHQW P
&)5
UHTXLUHG
RU FFXPXODWLYH RFFXSDWLRQDO UDGLDWLRQ H[SRVXUH $FFRUGLQJO\ WKH
PHHWV WKH HOLJLELOLW\ FULWHULD IRU FDWHJRULFDO H[FOXVLRQ VHW IRUWK LQ
F 7KHUHIRUH
5()(5(1&(6
1RQH
RUHQYLURQ 7 SXUVXDQW WR &)5 E DQ HQYLURQPHQWDO LPSDFW
VWDWHPHQWRUHQYLURQPHQWDODVVHVVPHQWRIWKHSURSRVHGDPHQGPHQWDQGH[HPSWLRQLVQRW
3DJHRI
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\
1''5$)7
(QFORVXUH
9RJWOH(OHFWULF*HQHUDWLQJ3ODQW
7 J3ODQW 9(*3 8QL
8QLWVDQG
8QLWVDQG
$)
'5$)7([HPSWLRQ5HTXHVW
[HPSWLRQ5HTXHVW
)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
HFWLRQ6\VWHP1RQ6DIH HFWLRQ6\VWHP1RQ6DIHW\&DEOH
/$5
5
'
7KLV(QFORVXUHFRQVLVWVRISDJHVLQFOXGLQJWKLVFRYHUSDJH
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
3XUSRVH
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\ WKH/LFHQVHH UHTXHVWVDSHUPDQHQWH[HPSWLRQ
IURP WKH SURYLVLRQV RI &)5 $SSHQGL[' 6HFWLRQ,,,% Design Certification Rule for the AP1000 Design, Scope and ContentsWRDOORZDGHSDUWXUHIURPHOHPHQWVRIWKH
FHUWLILFDWLRQ LQIRUPDWLRQ LQ 7LHU RI WKH JHQHULF $3 'HVLJQJQ &RQWURO
&R
& 'RFXPHQW
'&' 7KH UHJXODWLRQ &)5 $SSHQGL[' 6HFWLRQ,,,% UHTXLUHV
UHTXLUH DQDQ DSSOLFDQW RU
OLFHQVHH UHIHUHQFLQJ $SSHQGL[ ' WR &)5 3DUW WR LQFRUSRUDWH
RUSRUDWH E\ UHIH RUSRUD UHIHUHQFH DQG
FRPSO\ ZLWK WKH UHTXLUHPHQWV RI $SSHQGL[ ' LQFOXGLQJ FHUWLILHG
FHUWLILHG LQIRUPDWLRQ
LLQIRUPDWLRQ LQ '&'
7LHU7KH7LHULQIRUPDWLRQIRUZKLFKDSODQWVSHFLILFGHSDUWXUHDQGH[HPSWLRQLVEHLQJ
HSDUWXUHDQGH[
HSDUWXUHDQGH[HPSWLRQLV
UHTXHVWHGLQFOXGHVUHPRYDORIWKHFRQWDLQPHQWFDEOHWUD\VSUD\V\VWHP
WUD\VS WUD\VSUD\ V\VWHP
HP
7 7KLV UHTXHVW IRU H[HPSWLRQ SURYLGHV WKH WHFKQLFDO
WKDW &)5 DQG UHTXLUHPHQWV
UHTXLUHPHQWV RI &)5 $SSHQGL[ '
JHQHULF 7LHU LQIRUPDWLRQ GXH WR D SURSRVHG
DQG $FFHSWDQFH &ULWHULD ,7$$& )LJXUHV
FDO DQG
DQG UHJXODWRU\
UHJXODWRU\ EDVLV WR GHPRQVWUDWH
TXLUHPHQWV DUH PHW DQG ZLOO
6HFWLRQ 9,,,$ WR DOORZ
HG FKDQJH WR ,QV SRVHG
XUHV
GHP GHPRQV ZLOO DSSO\
DS GHSDUWXUHV
DOORZ GHSDUW
,QVSHFWLRQV 7HVW
DQG
W WKH
IURP
7HVWV $QDO\VHV
WR GHSLFW UHPRYDO RI WKH
%DFNJURXQG
$)
FRQWDLQPHQWFDEOHWUD\VSUD\V\VWHP
7KH /LFHQVHH LV WKH KROGHU
QXFOHDU SODQWV QDPHG
UHVSHFWLYHO\
$Q RSHQQR))OH
P
GHU RI &RPELQHG
RPELQHG /LFHQVH 1RV 13)
DXWKRUL]H FRQVWUXFWLRQ DQG RSHUDWLRQ
- H 1
Q RI WZR :HVWLQJKRXVH
DQG 13) ZKLFK
- HVWLQJKRX (OHFWULF &RPSDQ\ $3
PHG 9RJWOH (OHFWULF *HQHUDWLQJ
))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP
HOHFWULFDO FDEOHV
EOHV URXWHG LQ RSHQ FDEOH WUD\V
V\V 3ODQW 9(*3 8QLWV DQG
LV SURYLGHG IRU QRQVDIHW\UHODWHG
WUD\V LQ ILUH ]RQH $) % ILUH ]RQH
5
% ZKLFK
WUD\V
K LV SDUW RI URRP QXPEHU ZKRVH IORRU LV DW HOHYDWLRQ
6DIHW\UHODWHGFDEOHVEOHV LQURRPQXPEHUDQGHOVHZKHUH
\UHODWHGFDEOHV LQURRPQXPEHU
LQU
\V RU FRQGXLW 3K\VLFDO GLVWDQFH DQ
DUHFUHGLWHGIRU
DUHURXWHGLQFORVHGFDEOH
LPSOHPHQWFRPSOHWHILUHEDUULHUVHSDUDWLRQRIWKHQRQVDIHW\UHODWHGHOHFWULFDOFDEOHWUD\V
LPSOHPHQWFRPSOHWHILUHEDUULHU LPSOHPHQWFRPSOHWHILUHEDUULHUV DQG VWUXFWXUDO EDUULHUV VXFK DV FRQGXLW DQG FORVHG
FDEOHWUD\V DUHFUHGLWHGIRUSURWHFWLRQRIWKHVDIHW\UHODWHGFDEOHV$EVHQWWKHDELOLW\WR
DUHFUHGLWHGIRUSURWHF WKHSXUSRVHRIWKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVWRSURYLGHDGGLWLRQDO
WKHSXUSRVHRIWKHRSHQQR))
DVVXUDQFHWKDWDILUHZLOOQRWSURSDJDWHYLDWKHQRQVDIHW\UHODWHGHOHFWULFDOFDEOHWUD\VLQ
DVVXUDQFHWKDWDILUHZ DVVXUDQFHWKDWDILUHZLOOQR
' DQXDORSHUDWRUDFWLR DLQPHQWLVRODWLR DQRWKHU
ILUH ]RQH % WR DQR D ILUH ]RQH $FWXDWLRQ RI WKH VXSSUHVVLRQ V\VWHP UHTXLUHV D
PDQXDORSHUDWRUDFWLRQWRRSHQWKHRXWERDUGFRQWDLQPHQWLVRODWLRQYDOYH7KHRXWERDUG
FRQWDLQPHQWLVRODWLRQYDOYHLVPDQXDOO\DFWXDWHGWRSUHYHQWVSXULRXVDFWXDWLRQ
7KH)36RSHQQR))OHVXSSUHVVLRQV\VWHPWKDWIHHGVLQWRFRQWDLQPHQWLVXVHGWRVSUD\
RSHQ QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V 7KH )36 RSHQQR))OH VXSSUHVVLRQ V\VWHP LV
GHVLJQHGWRPLWLJDWHH[WHQVLYHEXUQLQJRIQRQVDIHW\UHODWHGFDEOHVWKDWFRXOGSURSDJDWH
WRDQRWKHUILUH]RQHDQGDGYHUVHO\DIIHFWILUHVDIHVKXWGRZQFRPSRQHQWVLQDQRWKHUILUH
]RQHGXULQJDILUHHYHQW
7KHUH LV QR FUHGLW WDNHQ IRU WKH )36 RSHQQR))OH VXSSUHVVLRQ V\VWHP WR RSHUDWH
IROORZLQJ D VHLVPLF HYHQW DV WKHUH DUH QR UHTXLUHPHQWV WR FRQVLGHU D ILUH HYHQW
FRQFXUUHQWZLWKDQ\RWKHUSODQWDFFLGHQWLQFOXGLQJDVHLVPLFHYHQW
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
6DIHW\UHODWHGFDEOHVDUHURXWHGLQFORVHGFDEOHWUD\VRUFRQGXLW)RURSHQFDEOHWUD\V
ZKLFK UHSUHVHQW WKH RQO\ VLJQLILFDQW LQVLWX FRPEXVWLEOHV LQ ILUH ]RQH % GXULQJ
SRZHU RSHUDWLRQV DQ RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP LV SURYLGHG 7KH
SXUSRVH RI WKH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP LV WR SUHYHQW D ILUH LQ WKH QRQVDIHW\
UHODWHGHOHFWULFDOFDEOHVLQRSHQFDEOHWUD\VIURPSURSDJDWLQJWRDQRWKHUILUH]RQHIURP
RW ILUH]RQH%
7KH RSHQQR))OH ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP FRQWURO QWURO YDOYHV
Y DUH
D LQLWLDWHG
DXWRPDWLFDOO\XSRQUHFHLSWRIDILUHGHWHFWLRQVLJQDOEDVHGRQ GRQKHDWGHWHFWRUVOR GRQ KHDWGHWHFWRUVORFDWHGLQ
KHDWG WKHQRQVDIHW\UHODWHGFDEOHWUD\7KHLQLWLDWLRQRIZDWHUVXSSUHVVLRQVSUD\UHOLHVRQWKH
VXSSUHVVLRQVSUD\UHOLHVR VXSSU VLRQVS RSHUDWLRQRIPXOWLSOHDFWLYHFRPSRQHQWVVXFKDVWKHILUHGHWHFWLRQV\VWHPZKLFKXSRQ
ILUHG ILUHGHWHFW LRQV\VWHPZKLFKXS V\VWHP 7
LQLWLDWLRQRIDILUHVLJQDO KHDWGHWHFWLRQ WKHFRQWUROSDQHOVHQGVDVLJQDOWRDFWLYDWHWKH
ROSDQH VHQGVDVLJQDOWRDFWLYDWHW ROSDQHO
RSHQLQJRI)36RSHQQR))OHZDWHUVSUD\PRWRUFRQWUROYDOYHV
FRQWURO FRQWUROYDOYHV
SUHVVLRQV\VWHPLVQRW
SUHFOXGHLQDGYHUWHQWDFWXDWLRQDQGXQQHFHVVDU\ZDWHUGHOXJHRI
HFHVVDU\ZDWHUGHOXJHRI
VDU\ZDWHUGHOXJ DQG DGMDFHQW DUHDV LQ FRQWDLQPHQW PDQXDO RSHUDWRU DFWLRQ
DF QDOWR
+RZHYHUWKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPLVQRWIXOO\DXWRPDWLFDQGWR
SUHVVLRQV\VWHPLV IXOO\DXWRPD WKHPDLQWHQDQFHIORRU
WKHPDLQW UHTXLUHG WR RSHQ WKH
LV UHTXLUH
$)
RXWERDUG)36FRQWDLQPHQWLVRODWLRQYDOYH7KHUHDUHQRQRUPDOO\FORVHGLVRODWLRQFRQWURO
DQG D VXEVWDQWLDO
YDOYH7KHUHDUHQRQRUPDOO\
]RQH%
DUHQR
DUG)36FRQWDLQPHQWLVROD DUG)36FRQWDLQPHQWLVRODWLRQYDO
FORVH YDOYHVGRZQVWUHDPRIWKHRXWERDUG)36FRQWDLQPHQWLVRODWLRQYDOYH:DWHUWKDWHQWHUV
Y WKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPDIWHULQLWLDWLRQRIWKHKHDWGHWHFWLRQDQG
XSSUHVVLRQV\VWHPDIWHULQLWLDWLRQ SUHVVLRQV\VWHPDIWHULQLWLDWLR RI DFWLYDWLRQRIWKHPRWRUFRQWUROYDOYHZLOOEHGLVFKDUJHGWKURXJKWKHQR))OHVLQWRWKHRSHQ
UROYDOYHZLOOEHGLVFKDUJHGWKURXJ HZLOOEHGLVFKDUJHGWKURXJK QRQVDIHW\UHODWHGFDEOHWUD\VRIILUH]RQH%
UD\VRIILUH]RQH%
K 7KHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPUHTXLUHVPRUHWKDQRSHQQR))OHV
WHUVSUD\VXSSUHVVLRQV\
WHUVSUD\VXSSUHVVLRQV\VWHPUHTX DO DPRXQW RI SLSLQJ DQG
DQ DVVRFLDWHG
DVVRFL DFFRPSOLVK LWV ILUH VXSSUHVVLRQ IXQFWLRQ 7KHVH
WUXFWLRQDQGPDLQWHQDQFHLVVXHV WUXFWLRQDQGPDLQWHQDQFHLVVXHV
URRPQXPEHU
EHU
U
7 SLSLQJ VXSSRUWV LQ RUGHU WR
SLSLQJ DQG VXSSRUWV LQYROYH FRPSOH[
GHVLJQFRQVWUXFWLRQDQGPDLQWHQDQFHLVVXHVDQGDGGWRWKHFRQJHVWLRQLQWKHDUHDRI
57KHUHIRUH
DQG
RUH WR UHGXFH WKH QHHG IRU PDQXDO
HIRUH
G WR UHGXFH WKH SLSLQJVXSSRUW
SLSLQJV FDXVHG E\ WKH RSHQQR))OH Z PDQX YDOYH PDQLSXODWLRQ RXWVLGH WKH FRQWURO URRP
FRQJHVWLRQ
FRQ WKHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPIRURSHQQRQVDIHW\UHODWHGFDEOHWUD\V
WKHRSHQQR))OHZDWHUVSUD\VX WKHRSHQQR))OHZDWHUVSUD\VXS DQG FRQVWUXFWDELOLW\ LVVXHV LQ FRQWDLQPHQW
ZDWHU VSUD\ VXSSUHVVLRQ V\VWHP LW LV SURSRVHG WR UHSODFH
LQILUH]RQH%ZLWKSDVVLYHILUHVWRSV7KHSDVVLYHILUHVWRSVZLOOEHSODFHGLQWKH
LQILUH]RQH%ZLWKSDVV RSHQQRQVDIHW\UHODWHGFDEOHWUD\VDWWKHSRLQWZKHUHWKHFDEOHWUD\VWUDQVLWLRQRXWRIILUH
RSHQQRQVDIHW\UHODWH RSHQQRQVDIHW\UHODWHGFDE
]RQH % 7KH S QRQVDIHW\UHODWHG
DGMDFHQWILUH]RQH
HQWILUH]RQH
SXUSRVH RI WKH SDVVLYH ILUH VWRSV LV WR SUHYHQW D ILUH LQ WKH RSHQ
SXUS QVDIHW\UHODWHG HOHFWULFDO
HOH FDEOH WUD\V LQ ILUH ]RQH % IURP SURSDJDWLQJ WR DQ
7HFKQLFDO-XVWLILFDWLRQRI$FFHSWDELOLW\
-XV 7KH SDVVLYH ILUH VWRSV WKDW DUH SURSRVHG WR UHSODFH WKH RSHQQR))OH ZDWHU VSUD\
VXSSUHVVLRQ V\VWHP LQ ILUH ]RQH % FRQVLVW RI DQ HQJLQHHUHG DQG WHVWHG
FRQILJXUDWLRQ WKDW ZLOO EH PRXQWHG LQ WKH QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V 7KHVH
SDVVLYH ILUH VWRSV ZLOO EH SODFHG LQ WKH QRQVDIHW\UHODWHG RSHQ FDEOH WUD\V QHDU WKH
ERXQGDU\RIILUH]RQH%SULRUWRZKHUHWKHWUD\VFRQWLQXHLQWRDGMDFHQWILUH]RQHV
7KHSXUSRVHRIWKHSDVVLYHILUHVWRSVLVWRSUHYHQWDILUHLQWKHQRQVDIHW\UHODWHGRSHQ
FDEOHWUD\VRIILUH]RQH%IURPSURSDJDWLQJWRDQRWKHUILUH]RQH
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
$V QRWHG LQ 8)6$5 6XEVHFWLRQ $ ³&RQWDLQPHQW6KLHOG %XLOGLQJ' ILUH ]RQH
% LQ 6XEVHFWLRQ $ LV WKH PDLQWHQDQFH IORRU QRUWK KDOI $V VKRZQ LQ
8)6$5)LJXUH$6KHHWRI³1XFOHDU,VODQG)LUH$UHDV3ODQDW(OHYDWLRQ
' URRP QXPEHU LV WKH PDLQWHQDQFH IORRU DW HOHYDWLRQ 5RRP
LVORFDWHGWRWKHSODQWQRUWKRIWKHUHDFWRUFDYLW\FRQWLQXHVHDVWDQGVRXWKDURXQG
V WKH RXWVLGH RI WKH VWHDP JHQHUDWRU HQFORVXUH DQG WKHQ ZHVW WR WKH HDVW ZDOO RI WKH
R WKH
UHIXHOLQJFDYLW\5RRPLVGLYLGHGLQWRWZRILUH]RQHV)LUH=RQH$)$
H=RQH H=RQH
LVWKHSODQWVRXWKHDVWDUHDRI5RRPDQG)LUH=RQH$)%LVWKHSODQW
$)%L
$)
QRUWKDUHDRIURRP([FHSWIRUWKHFLUFXLWRXVDUUDQJHPHQWRIURRPQXPEHU
HPHQWRIURRPQXPEH HPHQW RIUR DPRQJ WKH FRQWDLQPHQW LQWHUQDO VWUXFWXUHV UHDFWRU U FDYLW\ DQG VWHDP
V JHQHUDWRU
JHQH HQFORVXUHV WKHUH DUH QR SK\VLFDO EDUULHUV EHWZHHQ
Q ILUH ]RQHV
]
$)
$) $ D DQG
$)%DWHOHYDWLRQ
WHUPLQDWLRQ ER[HV DQG RSHQ FDEOH WUD\V
7
$V GLVFXVVHG LQ 8)6$5 6XEVHFWLRQ $ ³)LUH =RQH $) %'
FRPEXVWLEOH PDWHULDOV LQ WKLV ILUH ]RQH FRQVLVWV
RQVLVWV SULPDULO\ RI
R FDEOH
\V $V VKRZQ LQ 7DEOH
7 FRQVHUYDWLYHO\LQFUHDVHGLQ
LYHO\LQFUH
$
LQVXODWLRQ LQ WKH
FDEOH LQVXODW
$ ³)LUH
ILUH]R WKH
³)L 3URWHFWLRQ
6XPPDU\'FRPEXVWLEOHORDGLQJVDUHFRQVHUYDWLYHO\LQFUHDVHGLQILUH]RQH%ZLWK
$)
WKH DGGLWLRQ RI XQVSHFLILHG WUDVK DQG YRODWLOHV RQO\ H[SHFWHG
PDLQWHQDQFH DFWLYLWLHV VXFK WKDW
5 6XEVHFWLRQ
H[
W DORQJ ZLWK WKH NQRZQ FDEOH
DW FD WKHHTXLYDOHQWILUHGXUDWLRQLVFDOFXODWHGWREHOHVVWKDQWKUHHKRXUV
$V 'LVFXVVHG LQ 8)6$5
FDOFXODWHGWREHOHVVWKDQWKUH XODWHGWREHOHVVWKDQWKUHHKRX HK WLRQ $ ³7KH TXDQWLW\
TX FRPEXVWLEOH PDWHULDOV LQ WKLV ILUH ]RQH DQG WKH FKDUDFWHULVWLFV
VHSDUDWH WKLV ]RQH IURP RWKHU ILUH ]RQHV D FKDUD GXULQJ UHIXHOLQJ RXWDJH
GXULQJ LQVXODWLRQ
LQVX FRPEXVWLEOHV
DQG DUUDQJHPHQW RI
RI WKH EDUULHUV WKDW
DUH VXFK WKDW D ILUH ZKLFK GDPDJHV VDIH
VKXWGRZQFRPSRQHQWVLQWKLVILUH]RQHGRHVQRWSURSDJDWHWRWKHH[WHQWWKDWLWGDPDJHV
QHQWVLQWKLVILUH]RQHGRHV QHQWVLQWKLVILUH]RQHGRHVQRWSUR UHGXQGDQWVDIHVKXWGRZQFRPSRQHQWVLQDQRWKHUILUH]RQH'
VKXWGRZQFRPSRQHQWVLQDQR VKXWGRZQFRPSRQHQWVLQDQRWKHUI
$VVWDWHGLQWKH8)6$56XEVHFWLRQ$³RSHQQR))OHZDWHUVSUD\VXSSUHVVLRQ
LQWKH8)6$56XEVHFWLRQ$
WKH8)6$56XEVHFWLRQ$
5 V\VWHPVDUHSURYLGHGIRUQRQVDIHW\UHODWHGHOHFWULFDOFDEOHVURXWHGLQRSHQFDEOHWUD\VLQ
VDUHSURYLGHGIRUQRQVDIHW\UHODWHG RYLGHGIRUQRQVDIHW\UHODWHG ILUH]RQH$)%SURYLGLQJDGGLWLRQDODVVXUDQFHWKDWDILUHZLOOQRWSURSDJDWH
RQH$)
RQH$)%SURYLGLQJD EHWZHHQWKHVHILUH]RQHV'
WZHHQWKHVHILUH]RQHV'
WZHHQWKHVHILUH]RQHV'
PLGGOH DQG XSSHU DQQXOXV ]RQHV
FRQWDLQPHQW ILUH DUHD
]
UHTXLUHG ZLWKLQ WKH FRQWDLQPHQW ILUH DUHD LQFOXGLQJ WKH
)LUH EDUULHU VHSDUDWLRQ LV QRW UH RI WKH VKLHOG EXLOGLQJ )LUH SURWHFWLRQ ZLWKLQ WKH
DUH LV DFFRPSOLVKHG E\ PLQLPL]LQJ WKH TXDQWLW\ RI FRPEXVWLEOH
' PDWHULDOVDQGE\WKHXVHRIVSDWLDOVHSDUDWLRQFRPELQHGZLWKDSSURSULDWHILUHGHWHFWLRQ
PDWHULDOVDQGE\WKH
PDWHULDOVDQGE\WKHXV DQG
G PDQXDO ILUH SURWHFWLRQ
SURWH SURW FDSDELOLWLHV )LUH SURWHFWLRQ IHDWXUHV DUH VXIILFLHQW WR HQVXUH
WKDWRQHWUDLQRIVDIHVKXWGRZQHTXLSPHQWZLOOUHPDLQXQGDPDJHGLQWKHHYHQWRIDILUH
RQHWUDLQRIVD LQVLGHFRQWDLQPHQW
RQWDLQPH
)URP WKH VWDQGSRLQW RI ILUH ]RQH VHSDUDWLRQ ILUH ]RQH % LV SK\VLFDOO\ VHSDUDWHG
IURP ILUH ]RQHV DW ORZHU HOHYDWLRQV E\ WKH PDLQWHQDQFH IORRU ZKLFK KDV D FRQFUHWH
WKLFNQHVV RI PRUH WKDQ RQH IRRW H[FHSW IRU DFFHVV VWDLUZD\V DQG KDWFKHV )LUH ]RQH
% LV VHSDUDWHG IURP WKH RSHUDWLQJ GHFN DERYH E\ D FHLOLQJ WKDW KDV D FRQFUHWH
WKLFNQHVVRIPRUHWKDQRQHIRRWH[FHSWIRUVHYHUDORSHQLQJV DFFHVVVWDLUZD\HOHYDWRU
HWF 7KH SHULPHWHU RI ILUH ]RQH % FRQVLVWV RI WKH VWHHO FRQWDLQPHQW YHVVHO WKH
VWHHO ZDOO RI WKH LQFRQWDLQPHQW UHIXHOLQJ ZDWHU VWRUDJH WDQN WKH QRQFRPEXVWLEOH
HQFORVXUHIRUWKHGLYLVLRQ%DQG'SHQHWUDWLRQVDQGUDFHZD\V URRPQXPEHUILUH
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
]RQH $) DQG WKH UHDFWRU FDYLW\ DQG VWHDP JHQHUDWRU HQFORVXUH ZDOOV
KDYLQJDFRQFUHWHWKLFNQHVVRIPRUHWKDQRQHIRRW
7KHXVHSDVVLYHILUHVWRSVLQILUH]RQH$)%SHUIRUPVWKHVDPHIXQFWLRQDV
WKH DFWLYH FDEOH WUD\ VSUD\ V\VWHP LQ SUHYHQWLQJ D ILUH LQ WKH QRQVDIHW\UHODWHG RSHQ
FDEOH WUD\V RI ILUH ]RQH $)% IURP SURSDJDWLQJ WR R DQRWKHU
DQR DQ ILUH ]RQH
$GGLWLRQDOO\ WKH SDVVLYH ILUH VWRSV SHUIRUP WKLV IXQFWLRQ ZLWKRXW
XW RSHUDWRU
RSH DFWLRQ RU WKH
XVH RI DFWLYH FRPSRQHQWV 7KHUHIRUH LW ZLOO QRW DGYHUVHO\ DIIHFW WKH DELOLW\
DELOLW\ RI WKH ILUH
SURWHFWLRQV\VWHP )36 WRSUHYHQWDILUHLQWKHQRQVDIHW\UHODWHGRSHQFDEOHWUD\VRIILUH
UHODWHGRSHQFDEOHWUD UHOD WHGRSH
]RQH$)%IURPSURSDJDWLQJWRDQRWKHUILUH]RQH RQH
QH
7KH XVH SDVVLYH ILUH VWRSV LQ OLHX RI WKH DFWLYH FDEOH WUD\ VSU VSUD\
D\ V\VWHP
\VWHP LQ ILUH ]RQH
]R VWRUDJH WDQN ,5:67 DQG FRQWDLQPHQW
7
$)% ZLOO QRW DGYHUVHO\ DIIHFW SDVVLYH FRUH FRROLQJ V\VWHP
EHFDXVHWKHSDVVLY RXWVLGH RI WKH ]RQH RI LQIOXHQFH =2, RI SRVWXODWHG KLJK HQH RQFRPSOLHVZLWKLQF HQW UHFLUFXODWLRQ
HQHUJ\
HQHUJ XODWLRQ VFUHHQV
VFUH V\VWHP 3;6
SHUIRUPDQFHGXULQJFRQWDLQPHQWUHFLUFXODWLRQEHFDXVHWKHSDVVLYHILUHVWRSVDUHORFDWHG
EHFDXVHWKHSD HILUHVWRSVDUH
SVDUH
\ OLQH EUHDNV
RPSOLHVZLWKLQFRQWDLQPHQWUH GHVLJQ
GHVLJQ FU EUHDNV DQG WKH
SDVVLYHILUHVWRSV¶PDWHULDORIFRQVWUXFWLRQFRPSOLHVZLWKLQFRQWDLQPHQWUHIXHOLQJZDWHU
FULWHULD IRU GHEULV
$)
JHQHUDWLRQDQGWUDQVSRUW
'HWDLOHG WHFKQLFDO MXVWLILFDWLRQ VXSSRUWLQJ WKLV UHTXHVW IRU H[HPSWLRQ
-XVWLILFDWLRQRI([HPSWLRQ
SWLRQ LVVXDQFH RI H[HPSWLRQV
QXFOHDU SRZHU
H$PHQGPHQW5HTXHVWLQ(Q
&)5 3DUW $SSHQGL[ ' 6HFWLRQ 9,,,$
9 HPSWLRQV IURP HOHPHQWV RI WKH
W HU SODQWV 6LQFH 61& KDV LGHQWLILHG
GLVFXVVHG LQ
Q (QFORVXUH RI WKH DFFRPSD DQG &)5 E JRYHUQ WKH
DQG FHUWLILHG
FH H[H LV SURYLGHG LQ
6HFWLRQRIWKHDVVRFLDWHG/LFHQVH$PHQGPHQW5HTXHVWLQ(QFORVXUHRIWKLVOHWWHU
/LFHQVH$PHQGPHQW5HTXHVWLQ(Q GHVLJQ LQIRUPDWLRQ IRU $3
LGHQWLILH FKDQJHV WR WKH 7LHU LQIRUPDWLRQ DV
LGHQW DFFRPSDQ\LQJ /LFHQVH $PHQGPHQW 5HTXHVW DQ
5 H[HPSWLRQIURPWKHFHUWLILHGGHVLJQLQIRUPDWLRQLQ7LHULVQHHGHG
RQIURPWKHFHUWLILHGGHVLJQLQIRUPD PWKHFHUWLILHGGHVLJQLQIRUPD
&)53DUW$SSHQGL['DQG&)5DQGVWDWHWKDWWKH15&
&)53DUW$SSHQGL[
&)53DUW$SSHQGL['DQG
PD\JUDQWH[HPSWLRQVIURPWKHUHTXLUHPHQWVRIWKHUHJXODWLRQVSURYLGHGVL[FRQGLWLRQV
PD\JUDQWH[HPSWLRQVIURP
PD\JUDQWH[HPSWLRQVIURPWKHUHT
WKHH[HPSWLRQLVDXWKRUL]HGE\ODZ> D @ WKHH[HPSWLRQZLOOQRW
DUHPHW WKHH[HPSWLRQLVD
WKHH[HPSWLRQLVDXW SUHVHQW DQ XQGXH ULVN WR WKH
WKH KHDOWK DQG VDIHW\ RI WKH SXEOLF > D @ WKH
H[HPSWLRQLVFRQVLVWHQWZLWKWKHFRPPRQGHIHQVHDQGVHFXULW\> D @ VSHFLDO
H[HPSWLRQLVFRQVLVWH H[HPSWLRQLVFRQVLVWHQWZLWK
' FLUFXPVWDQFHV DUH SU GHFUHDVH
SUHVHQW > D @ WKH VSHFLDO FLUFXPVWDQFHV RXWZHLJK DQ\
SUHVH HFUHDVH LQ VDIHW\ WK H[HPSWLRQ
WKDW PD\ UHVXOW IURP WKH UHGXFWLRQ LQ VWDQGDUGL]DWLRQ FDXVHG E\ WKH
WKD PSWLRQ > E @ DQG WKH GHVLJQ FKDQJH ZLOO QRW UHVXOW LQ D VLJQLILFDQW
GHFUHDVHLQWKHOHYHORIVDIHW\>3DUW$SS'9,,,$@
VHLQWKHOH 7KH UHTXHVWHG
W H[HPSWLRQ VDWLVILHV WKH FULWHULD IRU JUDQWLQJ VSHFLILF H[HPSWLRQV DV
GHVFULEHGEHORZ
7KLVH[HPSWLRQLVDXWKRUL]HGE\ODZ
7KH 15& KDV DXWKRULW\ XQGHU &)5 DQG WR JUDQW H[HPSWLRQV
IURPWKHUHTXLUHPHQWVRI15&UHJXODWLRQV6SHFLILFDOO\&)5DQGVWDWH
WKDW WKH 15& PD\ JUDQW H[HPSWLRQV IURP WKH UHTXLUHPHQWV RI &)5 3DUW XSRQ D
SURSHU VKRZLQJ 1R ODZ H[LVWV WKDW ZRXOG SUHFOXGH WKH FKDQJHV FRYHUHG E\ WKLV
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
H[HPSWLRQUHTXHVW$GGLWLRQDOO\JUDQWLQJRIWKHSURSRVHGH[HPSWLRQGRHVQRWUHVXOWLQD
YLRODWLRQ RI WKH $WRPLF (QHUJ\ $FW RI DV DPHQGHG RU WKH &RPPLVVLRQ¶V
UHJXODWLRQV
$FFRUGLQJO\ WKLV UHTXHVWHG H[HPSWLRQ LV ³DXWKRUL]HG E\ ODZ' DV UHTXLUHG E\ &)5
D
7KLVH[HPSWLRQZLOOQRWSUHVHQWDQXQGXHULVNWRWKHKHDOWKDQGVDIHW\RIWKH
KDQGVDIHW\RI DQG
SXEOLF
7KHSURSRVHGH[HPSWLRQIURPWKHUHTXLUHPHQWVRI&)5$SSHQGL['6HFWLRQ,,,%
&)5$SSHQGL['6HFWLRQ
&)5$SSH QGL[
ZRXOG DOORZ FKDQJHV WR HOHPHQWV RI WKH SODQWVSHFLILF
HFLILF 7LHU
7 '&'
'&' WR GHSDUW
GHS IURP WKH
W 7
$3FHUWLILHG 7LHU GHVLJQLQIRUPDWLRQ7KHSODQWVSHFLILF'&'7LHUZLOOFRQWLQXH
HSODQW HSODQWVSHFLI LF'&'7LHUZLOOFRQ HUZL WR UHIOHFW WKH DSSURYHG OLFHQVLQJ EDVLV IRU 9(*3 8QLWV DQG DQG ZLOO PDPDLQWDLQ D
PDL FRQVLVWHQWOHYHORIGHWDLOZLWKWKDWZKLFKLVFXUUHQWO\SURYLGHGHOVHZKHUHLQ7LHURIWKH
FXUUHQWO\SURYLGHGHOVHZKHUHLQ7LH FXUUHQWO\SURYLGH GHOVHZKHUHLQ7LH
'&'7KHUHIRUHWKHDIIHFWHGSODQWVSHFLILF'&'7LHU,7$$&ZLOOFRQWLQXHWRVHUYHLWV
UHTXLUHGSXUSRVH
LILF'&'7LHU,7$$&Z
'&'7LHU,7$$ LOOFRQWLQXH
$)
7KHFKDQJHWRDOORZIRUWKHXVHSDVVLYHILUHVWRSVLQOLHXRIDQDFWLYHFDEOHWUD\
SDVVLYHILUHVWRSVLQOLHX SDVVLYHILUHVWRSVLQOLHXRID V\VWHP GRHV QRW UHSUHVHQW DQ DGYHUVH
GYHUVH LPSDFW WR WKH GHVLJQ
HW\IXQFWLRQRIWKHSDVVLYHFR ZLOO FRQWLQXH WR SURWHFW WKH KHDOWK
SURSDJDWLRQDQGSURYLGLQJUHDFWRUFRRODQWV\VWHP
GHVLJQ EDVLV HYHQWV
UDGLRORJLFDO KD]DUGV
QDFW RRODQWV\VWHP 5&6 HPHUJHQF\FRUHFRROLQJGXULQJ
LQJUHDFWRUFRRODQWV\VWHP H VSUD\
IXQFWLRQV SURYLGHG E\ ILUH
GHVLJQ IXQ SURWHFWLRQV\VWHPQRUWRWKHVDIHW\IXQFWLRQRIWKHSDVVLYHFRUHFRROLQJV\VWHPZKLFK
HVDIHW\IXQFWLRQRIWKHSDVVLYHFR WK DQG VDIHW\ RI WKH SXEOLF
S E\ SUHYHQWLQJ IODPH
7KH FKDQJH GRHV QRW LLQWURGXFH DQ\ QHZ LQGXVWULDO FKHPLFDO RU
GV WKDW ZRXOG UHSUHVHQW
UHSUHVHQW D SXEOLF KHDOWK RU VDIHW\ ULVN QRU GR WKH\
PRGLI\RUUHPRYHDQ\GHVLJQRURSHUDWLRQDOFRQWUROVRUVDIHJXDUGVLQWHQGHGWRPLWLJDWH
YHDQ\GHVLJQRURSHUDWLRQDO YHDQ\GHVLJQRURSHUDWLRQDOFRQWUR DQ\ H[LVWLQJ RQVLWH KD]DUGV )XUWKHUPRUH WKH
WK SURSRVHG FKDQJH ZRXOG QRW DOORZ IRU D
QHZILVVLRQSURGXFWUHOHDVHSDWKUHVXOWLQDQHZILVVLRQSURGXFWEDUULHUIDLOXUHPRGHRU
QSURGXFWUHOHDVHSDWKUHVXOWLQD
SURGXFWUHOHDVHSDWKUHVXOWLQD
5 FUHDWHDQHZVHTXHQFHRIHYHQWVWKDWZRXOGUHVXOWLQIXHOFODGGLQJIDLOXUHV$FFRUGLQJO\
DQHZVHTXHQFHRIHYHQWVWKDWZRX V\VWHPV
VWHPV
VWHPV
VHTXHQFHRIHYHQWVWKDWZRX WKLVFKDQJHGRHVQRWSUHVHQWDQXQGXHULVNIURPDQ\H[LVWLQJRUSURSRVHGHTXLSPHQWRU
KDQJHGRHVQRWSUHVHQWDQXQGXH
DQJHGRHVQRWSUHV H[HPSWLRQ IURP &)5 $SSHQGL[' 6HFWLRQ,,,% ZRXOG
7KHUHIRUH WKH UHTXHVWHG H[HP H[HPS QRWSUHVHQWDQXQGXHULVNWRWKHKHDOWKDQGVDIHW\RIWKHSXEOLF
QRWSUHVHQWDQXQGXHULVNWRWK
' 7KHH[HPSWLRQLVFRQVLV 7KHH[HPSWLRQLVFRQVLVWHQWZLWKWKHFRPPRQGHIHQVHDQGVHFXULW\
7KHH[HPSWLRQLVFR 7KH UHTXHVWHG H[HPSWLRQ
H[H H[ IURP WKH UHTXLUHPHQWV RI &)5 $SSHQGL[ '
6HFWLRQ,,,%ZRXOGDOORZWKHOLFHQVHHWRGHSDUWIURPHOHPHQWVRIWKHSODQWVSHFLILF'&'
Q,,,%ZRXO 7LHUGHVLJQLQIRUPDWLRQ7KHSURSRVHGH[HPSWLRQGRHVQRWDOWHUWKHGHVLJQIXQFWLRQ
VLJQLQ RURSHUDWLRQRIDQ\VWUXFWXUHVRUSODQWHTXLSPHQWWKDWDUHQHFHVVDU\WRPDLQWDLQDVDIH
DQGVHFXUHVWDWXVRIWKHSODQW7KHSURSRVHGH[HPSWLRQKDVQRLPSDFWRQSODQWVHFXULW\
RUVDIHJXDUGVSURFHGXUHV
7KHUHIRUH WKH UHTXHVWHG H[HPSWLRQ LV FRQVLVWHQW ZLWK WKH FRPPRQ GHIHQVH DQG
VHFXULW\
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
6SHFLDOFLUFXPVWDQFHVDUHSUHVHQW
&)5 D OLVWV VL[ ³VSHFLDO FLUFXPVWDQFHV' IRU ZKLFK DQ H[HPSWLRQ PD\ EH
JUDQWHG 3XUVXDQW WR WKH UHJXODWLRQ LW LV QHFHVVDU\ IRU RQH RI WKHVH VSHFLDO
FLUFXPVWDQFHV WR EH SUHVHQW LQ RUGHU IRU WKH 15& WR FRQVLGHU JUDQWLQJ DQ H[HPSWLRQ
UHTXHVW 7KH UHTXHVWHG H[HPSWLRQ PHHWV WKH VSHFLDOO FLUFXPVWDQFHVFLU FL RI
&)5 D LL 7KDW VXEVHFWLRQ GHILQHV VSHFLDO FLUFXPVWDQFHV
UFXPVWDQF UFXPV DV ZKHQ
³$SSOLFDWLRQ RI WKH UHJXODWLRQ LQ WKH SDUWLFXODU FLUFXPVWDQFHV
QFHV ZRXOG
Z QRW VHUYH WKH
QRW XQGHUO\LQJSXUSRVHRIWKHUXOHRULVQRWQHFHVVDU\WRDFKLHYHWKHXQGHUO\LQJSXUSRVHRI
HYHWKHXQGHUO\LQJSX HYHWKHXQ WKHUXOH'
7KH UXOH XQGHU FRQVLGHUDWLRQ LQ WKLV UHTXHVW IRU H[HPSWLRQ
[HPSWLRQ LV
[HPSWL
&)5 $SSHQGL[ '
5 $
UHTXLUHPHQWV RI &)5 3DUW $SSHQGL[
7 6HFWLRQ,,,%ZKLFKUHTXLUHVWKDWDOLFHQVHHUHIHUHQFLQJWKH$3'HVLJQ&HUWLILFDWLRQ
UHQFLQJ UHQFLQJWKH$
[ ' LQFOXGLQJ
LQFOXG 3'HVLJQ&HUWLILF 7
VLJQ&H 5XOH &)53DUW$SSHQGL[' VKDOOLQFRUSRUDWHE\UHIHUHQFHDQGFRPSO\ZLWKWKH
UHTXLUHPHQWV RI $SSHQGL[' LQFOXGLQJ 7LHU
RUSRUDWHE\UHIH RUSRUDWHE\UHIHUHQF U LQIRUPDWLRQ 7KH
HDQGFRPSO\Z PSO\
9(*3 8QLWV
&2/VUHIHUHQFHWKH$3'HVLJQ&HUWLILFDWLRQ5XOHDQGLQFRUSRUDWHE\UHIHUHQFHWKH
WLILFDWLRQ5XOHDQGLQFRUSR DWLRQ5XOHDQGLQ UDWHE\U W DQG
8QLWV 7LHU LQIRUPDWLRQ
LQ 7KH
$)
XQGHUO\LQJSXUSRVHRI$SSHQGL['6HFWLRQ,,,%LVWRGHVFULEHDQGGHILQHWKHVFRSHDQG
DFWLYDWHG VXSSUHVVLRQ
6HFWLRQ,,,%LVWRGHVFULEH
FHUWLILFDWLRQLQIRUPDWLRQLQ$SSHQGL['
HQGL['
GL['
VWRGHV FRQWHQWV RI WKH $3 GHVLJQ FHUWLILFDWLRQ DQG WR UHTXLUH
RZWKHXVHRISDVVLYHILUH DFWLYDWHGVXSSUHVVLRQIRUFRQWDLQPHQWILUH]RQH$)%
RUFRQWDLQPHQWILUH]RQH$)
QWILUH]RQH$)
DQGGHI UHTXLUH FRPSOLDQFH
FRPSOLD ZLWK WKH GHVLJQ
7KHSURSRVHGH[HPSWLRQZRXOGDOORZWKHXVHRISDVVLYHILUHVWRSVLQOLHXRIDPDQXDOO\
ZRXOGDOORZWKHXVHRISDVVLYHILUH 7KHSURSRVHGH[HPSWLRQZRXOGDOORZWKHXVHRISDVVLYHILUHVWRSVLQOLHXRIDPDQXDOO\
HPSWLRQZRXOGDOORZWKHX HPSWLRQZRXOGDOORZWKHXVHRISDV UHVVLRQ IRU FRQWDLQPHQW ILUH ]RQH $)% GRHV QRW DGYHUVHO\
DIIHFWWKHGHVLJQIXQFWLRQRIWKH3;6EHFDXVHWKHSURSRVHGILUHVWRSPDWHULDOH[FHHGV
VLJQIXQFWLRQRIWKH3;6EHFDXV VLJQIXQFWLRQRIWKH3;6EHFDXVH
WKHPLQLPXPGHQVLW\UHTXLUHPHQWVIRUWUDQVSRUWVSHFLILHGLQ8)6$5DQGGRHVQRWUHVXOW
XPGHQVLW\UHTXLUHPHQWVIRUWUDQVS PGHQVLW\UHTXLUHPHQWVIRUWUDQVS 5 LQDGYHUVHFKHPLFDOHIIHFWVZKHQIORRGHGGXULQJDGHVLJQEDVLVHYHQW7KHXVHSDVVLYH
UVHFKHPLFDOHIIHFWVZKHQIORRGHG
ILUH VWRSV
PLFDOHIIHFWVZKHQIORRGHG
RSV LQ OLHX RI D PDQXDOO\ DFWLYDWHG
$)%SURYLGHV
$)%SURYLGHVDQDFFHSWD DFWL VXSSUHVVLRQ IRU FRQWDLQPHQW ILUH ]RQH
$)%SURYLGHVDQDFFHSWDEOHDOWHUQDWLYHIRUSUHYHQWLRQRIIODPHSURSDJDWLRQ
SDVVLYH ILILUH $FFRUGLQJO\ WKLV H[HPSWLRQ IURP WKH FHUWLILFDWLRQ
$GGLWLRQDOO\ WKH XVH RI SDVV LQIRUPDWLRQ HQDEOHV WKH /LFHQVHH
/LFHQVH WR VDIHO\ FRQVWUXFW DQG RSHUDWH WKH $3 IDFLOLW\
/LFHQV FRQVLVWHQWZLWKWKHGHVLJQFHUWLILHGE\WKH15&LQ&)5$SSHQGL['
FRQVLVWHQWZLWKWKHGHVLJQFHU
' 7KHUHIRUHVSHFLDOFLUFXPVWDQFHVDUHSUHVHQWEHFDXVHDSSOLFDWLRQRIWKHFXUUHQWJHQHULF
7KHUHIRUHVSHFLDOFLUFXP 7KHUHIRUHVSHFLDOFLUF FHUWLILHG LQIRUPDWLRQ LQ 7LHU DV UHTXLUHG E\ &)5 3DUW $SSHQGL[ '
UWLILHG GHVLJQ LQIRU LQIRUP 6HFWLRQ,,,%LQWKHSDUWLFXODUFLUFXPVWDQFHVGLVFXVVHGLQWKLVUHTXHVWLVQRWQHFHVVDU\
RQ,,,%LQWKH WRDFKLHYHWKHXQGHUO\LQJSXUSRVHRIWKHUXOH
HYHWKHXQ
7KHVSHFLDOFLUFXPVWDQFHVRXWZHLJKDQ\GHFUHDVHLQVDIHW\WKDWPD\UHVXOWIURP
WKHUHGXFWLRQLQVWDQGDUGL]DWLRQFDXVHGE\WKHH[HPSWLRQ
%DVHG RQ WKH QDWXUH RI WKH FKDQJHV WR WKH SODQWVSHFLILF 7LHU LQIRUPDWLRQ DQG WKH
XQGHUVWDQGLQJ WKDW WKHVH FKDQJHV VXSSRUW WKH GHVLJQ IXQFWLRQ RI WKH VXSSRUWHG
HTXLSPHQW LW LV H[SHFWHG WKDW WKLV H[HPSWLRQ PD\ EH UHTXHVWHG E\ RWKHU $3
OLFHQVHHV DQG DSSOLFDQWV +RZHYHU D UHYLHZ RI WKH UHGXFWLRQ LQ VWDQGDUGL]DWLRQ
UHVXOWLQJ IURP WKH GHSDUWXUH IURP WKH VWDQGDUG '&' GHWHUPLQHG WKDW HYHQ LI RWKHU
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
$3 OLFHQVHHV DQG DSSOLFDQWV GR QRW UHTXHVW WKLV VDPH GHSDUWXUH WKH VSHFLDO
FLUFXPVWDQFHV ZLOO FRQWLQXH WR RXWZHLJK DQ\ GHFUHDVH LQ VDIHW\ IURP WKH UHGXFWLRQ LQ
VWDQGDUGL]DWLRQEHFDXVHWKHNH\GHVLJQIXQFWLRQVRIWKHHTXLSPHQWDVVRFLDWHGZLWKWKLV
UHTXHVW ZLOO FRQWLQXH WR EH PDLQWDLQHG )XUWKHUPRUH WKH MXVWLILFDWLRQ SURYLGHG LQ WKH
OLFHQVH DPHQGPHQW UHTXHVW DQG WKLV H[HPSWLRQ UHTXHVW DQG WKH DVVRFLDWHG
V PDUNXSV
GHPRQVWUDWHWKDWWKHUHLVDOLPLWHGFKDQJHIURPWKHVWDQGDUGLQIRUPDWLRQSURYLGHGLQWKH
PDWLR PDWLRQ JHQHULF$3'&'ZKLFKLVRIIVHWE\WKHVSHFLDOFLUFXPVWDQFHVLGHQWLILHGDERYH
FHVLGHQWLILH FH VLGH 7KHUHIRUHWKHVSHFLDOFLUFXPVWDQFHVDVVRFLDWHGZLWKWKHUHTXHVWHGH[HPSWLRQRXWZHLJK
HTXHVWHGH[HPSWLRQR HTXHV WHGH DQ\GHFUHDVHLQVDIHW\WKDWPD\UHVXOWIURPWKHUHGXFWLRQLQVWDQGDUGL]DWLRQFDXVHGE\
RQLQV DQGDUGL]DWLRQFDXV RQLQVW QGDUGL]
WKHH[HPSWLRQ
7
7KHGHVLJQFKDQJHZLOOQRWUHVXOWLQDVLJQLILFDQWGHFUHDVHLQWKHOHYHORIVDIHW\
DQWGH DQWGHFUHDVH
7KH H[HPSWLRQ UHYLVHV WKH SODQWVSHFLILF '&'
FDEOH WUD\ VSUD\ V\VWHP LQ ILUH ]RQH $)%
LQWKHOHYHORIVDIHW
$)% 7KH
$)%
YHORIV
&' 7LHU LQIRUPDWLRQ WR UHPRYH WKH DFWLYH
7K DFWLYH
DFWLYH FDEOH
FDEOH WUD\ VSUD\
V\VWHPLQILUH]RQH$)%LVUHSODFHGZLWKSDVVLYHILUHVWRSVZKLFKSHUIRUP
VUHSODFHGZLWKSDVVLYHILUHVWRSV
HGZLWKSDV
5LVN$VVHVVPHQW$)
WKHVDPHIXQFWLRQRISUHYHQWLQJIODPHSURSDJDWLRQ$GGLWLRQDOO\WKHXVHRISDVVLYHILUH
$ ULVN DVVHVVPHQW
WKLVSURSRVDO
3UHFHGHQW([HPSWLRQV
([HPS
([HPSWLRQV PHSURSDJDWLRQ$GGLWLRQDOO\
RQ$GG KHDELOLW\RIWKHSDVVLYHFRUH LWV IXQFWLRQ RI SURYLGLQJ HPHUJHQF\
QF\ FRUH FRROLQJ GXULQJ GHVLJQ
JHQF\ GHV EHPHWWKHUHLVQRUHGXFWLRQLQWK
WKHUHLVQRUHGXFWLRQLQWKH
W ZDV QRW GHWHUPLQHG WR EH DSSOLFDEOH
DSSOLFD H
WKHX VWRSVGRHVQRWDGYHUVHO\DIIHFWWKHDELOLW\RIWKHSDVVLYHFRUHFRROLQJV\VWHPWRSHUIRUP
KHDELOLW\RIWKHSDVVLYHFR FRROLQ EDVLV HYHQWV %HFDXVH
WKHVHIXQFWLRQVFRQWLQXHWREHPHWWKHUHLVQRUHGXFWLRQLQWKHOHYHORIVDIHW\
WRDGGUHVV WKH DFFHSWDELOLW\ RI
51RQH
(QYLURQPHQWDO&RQVLGHUDWLRQ
YLURQPHQWDO&RQVLGHUD YLURQPHQWDO&RQVLGHUDWLRQ 7KH/LFHQVHHUHTXHVWVDGHSDUWXUHIURPHOHPHQWVRIWKHFHUWLILHGLQIRUPDWLRQLQ7LHURI
7KH/LFHQVHHUHTXHVWVDGHSDUWX 7KH/LFHQVHHUHTXHVWVDGHSDU WKH JHQHULF $3 '&' 7 ZRXOGUHTXLUHDSHUPDQHQWH[HPSWLRQIURPWKHUHTXLUHPHQWVRI&)5$SSHQGL['
ZRXOGUHTXLUHDSHUPD ZRXOGUHTXLUHDSHUPDQHQW
7KH /LFHQVHH KDV GHWHUPLQHG WKDW WKH SURSRVHG GHSDUWXUH
' 6HFWLRQ,,,%Design 6HFWLR 6HFWLRQ,,,%Design HG LQ &)
UHTXLUHPHQW
GHWHUPLQHG
Certification gn Cer C Rule for the AP1000 Design, Scope and Contents,ZLWK
UHVSHFWWRLQVWDOODWLRQRUXVHRIIDFLOLW\FRPSRQHQWVORFDWHGZLWKLQWKHUHVWULFWHGDUHDDV
VSHFWWRLQVWDOODWLRQ VSHFWWRLQVWDOODWLRQ
GHILQHG &)5 3DUW RU ZKLFK FKDQJHV DQ LQVSHFWLRQ RU D VXUYHLOODQFH
PHQW KRZHYHU
KR G WKDW
WKH /LFHQVHH HYDOXDWLRQ RI WKH SURSRVHG H[HPSWLRQ KDV
WK WKH SURSRVHG H[HPSWLRQ PHHWV WKH HOLJLELOLW\ FULWHULD IRU FDWHJRULFDO
H[FOXVLRQVHWIRUWKLQ&)5 F
%DVHG RQ WKH DERYH UHYLHZ RI WKH SURSRVHG H[HPSWLRQ WKH /LFHQVHH KDV GHWHUPLQHG
WKDW WKH SURSRVHG DFWLYLW\ GRHV QRW LQYROYH L D VLJQLILFDQW KD]DUGV FRQVLGHUDWLRQ LL D
VLJQLILFDQWFKDQJHLQWKHW\SHVRUVLJQLILFDQWLQFUHDVHLQWKHDPRXQWVRIDQ\HIIOXHQWVWKDW
PD\ EH UHOHDVHG RIIVLWH RU LLL D VLJQLILFDQW LQFUHDVH LQ LQGLYLGXDO RU FXPXODWLYH
RFFXSDWLRQDO UDGLDWLRQ H[SRVXUH $FFRUGLQJO\ WKH SURSRVHG H[HPSWLRQ PHHWV WKH
HOLJLELOLW\ FULWHULD IRU FDWHJRULFDO H[FOXVLRQ VHW IRUWK LQ &)5 F 7KHUHIRUH
3DJHRI
1''5$)7
(QFORVXUH
'5$)7([HPSWLRQ5HTXHVW)LUH3URWHFWLRQ6\VWHP1RQ6DIHW\&DEOH6SUD\5HPRYDO
/$5
SXUVXDQW WR &)5 E DQ HQYLURQPHQWDO LPSDFW VWDWHPHQW RU HQYLURQPHQWDO
DVVHVVPHQWRIWKHSURSRVHGH[HPSWLRQLVQRWUHTXLUHG
6SHFLILF GHWDLOV RI WKH HQYLURQPHQWDO FRQVLGHUDWLRQV VXSSRUWLQJ WKLV UHTXHVW IRU
H[HPSWLRQ DUH SURYLGHG LQ 6HFWLRQ RI WKH DVVRFLDWHG /LFHQVH $PHQGPHQW 5HTXHVW
SURYLGHGLQ(QFORVXUHRIWKLVOHWWHU
&RQFOXVLRQ
7KHSURSRVHGFKDQJHVWR7LHUDUHQHFHVVDU\WRDOORZWKHXVHRISDVVLYHILUHVWRSVLQ
KHXVHRISDVVLYHILUH
KHXVHR ISD OLHX RI D PDQXDOO\ DFWLYDWHG VXSSUHVVLRQ IRU FRQWDLQPHQW
HQW ILUH
PHQW I ]RQH
]RQH $)%
$)
7KH H[HPSWLRQ UHTXHVW PHHWV WKH UHTXLUHPHQWV RI I &)5
Finality Final of design des DQG&)5$SSHQGL['Design Certification 7
certifications &)5 Specific exemptions &
H[HPSWLRQ UHTXHVW PHHWV WKH FULWHULD RI &)5
&)5
Specific DXWKRUL]HGE\ODZSUHVHQWVQRXQGXHULVNWRSXEOLFKHDOWKDQGVDIHW\,
NWRSXEOLFKHDOWKDQGVDIHW\
RSXEOLFKHDOWKDQG ecific exemptions
exemptio ex on Rule for the AP10006SHFLILFDOO\WKH
AP10006SHFLILFD
&)5 D LQ WKDW
6SHFLILF WKDW WKH
H UHTXHVW
UH LV
, DQGLVFRQVLVWHQW
DQGLV ZLWKWKHFRPPRQGHIHQVHDQGVHFXULW\)XUWKHUPRUHDSSURYDORIWKLVUHTXHVWGRHVQRW
)XUWKHUPRUHDSSURYDORI KHUPRUHDSSU I WKLVUHT
$)
UHVXOWLQDVLJQLILFDQWGHFUHDVHLQWKHOHYHORIVDIHW\VDWLVILHVWKHXQGHUO\LQJSXUSRVHRI
HOHYHORIVDIHW\VDWLVILHVWKHXQGH IHW\VDWL WKH $3 'HVLJQ &HUWLILFDWLRQ 5XOH DQG GRHV QRW SUHVHQW
VDIHW\DVDUHVXOWRIDUHGXFWLRQLQVWDQGDUGL]DWLRQ
5HIHUHQFHV
1RQH
LQVWDQGDUGL]DWLRQ
QVWDQGDUGL]
SUH D VLJQLILFDQW
VLJQ GHFUHDVH LQ
5 3DJHRI
6RXWKHUQ1XFOHDU2SHUDWLQJ&RPSDQ\
1''5$)7
(QFORVXUH
7
$)
9RJWOH(OHFWULF*HQHUDWLQJ3ODQW
LQJ3ODQW 9(*3 8QLWVDQG
8
8QLWVDQG
3URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV
HG&KDQJHVWR/LFHQVLQJ%DVLV'
G&KDQJHVWR/LFHQVLQJ%DVLV'
/$5
5
' 'HQ
,QVHUWLRQV'HQRWHGE\%OXH8QGHUOLQHDQG'HOHWLRQVE\5HG6WULNHWKURXJK
2PLWWHGWH[WLVLGHQWLILHGE\WKUHHDVWHULVNV
7KLV(QFORVXUHFRQVLVWVRISDJHVLQFOXGLQJWKLVFRYHUSDJH
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH&2/$SSHQGL[& DQGFRUUHVSRQGLQJSODQWVSHFLILF7LHU )LJXUHVKHHW
WRUHPRYHWKHGHSLFWLRQRIFRQWDLQPHQWZDWHUVSUD\SLSLQJWRILUH]RQH$)%
VKRZQLQEXEEOH DVVKRZQEHORZ
7
$)
5
3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH&2/$SSHQGL[& DQGFRUUHVSRQGLQJSODQWVSHFLILF7LHU )LJXUHWR
UHPRYHWKHGHSLFWLRQRIFRQWDLQPHQWFDEOHWUD\VSUD\SLSLQJDQGYDOYHV VKRZQLQ
EXEEOH DVVKRZQEHORZ
7
$)
5
3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH8)6$57DEOHWRGHOHWHWKHFDEOHWUD\VSUD\WDEOHHQWU\DVVKRZQEHORZ
5HTXLUHPHQW $3([FHSWLRQRU&ODULILFDWLRQ
1)3$6HFWLRQUHTXLUHVWKDWDOO 7KHFDEOHWUD\GHOXJHVSUD\V\VWHPDFWXDWLRQYDOYHVORFDWHG
DFWXDWLRQYDOYHVVKDOOEHOLVWHG LQVLGHFRQWDLQPHQWDUHQRWOLVWHGE\DUHFRJQL]HGRUJDQL]DWLRQ
HFR DVUHTXLUHGE\1)3$&RPPHUFLDOO\DYDLODEOHOLVWHG
DOO\DYD DOO\DYDLOD DFWXDWLRQYDOYHVDUHQRWDYDLODEOHIRUWKHXQLTXHUHTXLUHPHQWRI
IRUWKH
IRUWKHXQLTXH LQVWDOODWLRQLQVLGHFRQWDLQPHQWDVZDWHUZLOOEHLVRODWHGWRWKH
DVZDWH DVZDWHUZLOOEHLVR V\VWHPGXULQJQRUPDOSODQWRSHUDWLRQZKLFKPD\FDXVHD
RSHUDWLRQZKLFKPD\FDX RSHU DWLRQZ VWDQGDUGGHOXJHYDOYHWRLQDGYHUWHQWO\RSHQZKHQWKHZDWHU
QDGYHUWHQWO\RSH QDGYHUWHQWO\RSHQZKHQWKHZ VXSSO\LVUHVWRUHG0RWRURSHUDWHGEXWWHUIO\YDOYHVZLWKPDQXDO
RURSHUD
RSHUDWHGEXWWHUIO\YDOYHVZLWKP WWHUIO\Y RYHUULGHFDSDELOLW\WKDWIDLOVLQWKH³DVLV'SRVLWLRQZLOOEHXVHG
DWIDLOV QWKH³DVLV'SRVLWLRQZLOOEH DWIDLOVL 'SRVLWLR XVH
$)
7KHYDOYHVZLOOEHRSHUDWHGIURPWKHILUHDODUPV\VWHPLQD
RSHUDWHGIURPWKHILUHDODUPV\V RSHUDWHGIURPWKHILUHDODUPV\VWHPLQD
VLPLODUPDQQHUWRDVWDQGDUGGHOXJHYDOYH7KHGHVLJQIHDWXUHV
WRDVWDQGDUGGHOXJHYDOYH7KHGHVLJ WRDVWDQGDUGGHOXJHYDOYH7KHGHVLJQIHD RIWKHFDEOHVSUD\DFWXDWLRQYDOYHPHHWWKHLQWHQWRI1)3$
VSUD\DFWXDWLRQYDOYHPHHWWKHLQWHQWRI1)
VSUD\DFWXDWLRQYD QWRI1 IRUDGHOXJHYDOYH
JHYDOYH JHYDOYH
7 5
3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH8SGDWHG)LQDO6DIHW\$QDO\VLV5HSRUW 8)6$5 )LJXUHVKHHWWRUHPRYH
WKHGHSLFWLRQRIWKHEUDQFKOLQHIRUFDEOHWUD\VSUD\DVVKRZQEHORZ
'5
3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH8)6$56XEVHFWLRQ$&RQWDLQPHQW6KLHOG%XLOGLQJE\UHPRYLQJZDWHU
VSUD\V\VWHPVLQVSHFLILFORFDWLRQVIURPWKHOLVWRIILUHGHWHFWLRQDQGVXSSUHVVLRQ
V\VWHPVDVVKRZQEHORZ
$ &RQWDLQPHQW6KLHOG%XLOGLQJ
)LUH'HWHFWLRQDQG6XSSUHVVLRQ)HDWXUHV
x )LUHGHWHFWRUV
x +RVHVWDWLRQ V
x DQFH
3RUWDEOHILUHH[WLQJXLVKHUV GXULQJUHDFWRUVKXWGRZQIRUPDLQWHQDQFH x :DWHUVSUD\V\VWHPVLQVSHFLILFORFDWLRQV
7
$
$)
5HYLVH8)6$56XEVHFWLRQ$)LUH=RQH$)$E\UHSODFLQJRSHQ
)LUH=RQH$)$E
)LUH=RQH$)$
QR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPVZLWKSDVVLYHILUHVWRSVDVVKRZQEHORZ
QV\VWHPVZLWKSDVVLYHILUHVWRSV VZLWKSDVVLYHILUHVWRSV
)LUH=RQH$)$
6DIH6KXWGRZQ(YDOXDWLRQ
XDWLRQ
$)
$)$
'5
UDFHZD\RIRQHGLYLVLRQFDQSURSDJDWHWRDUDFHZD\RIDQRWKHUGLYLVLRQ)XUWKHUPRUHRSHQQR))OHZDWHU
RQHGLYLVLRQFDQSURSDJDWHWRDUDFHZD RQHGLYLVLRQFDQSUR SDJD VSUD\VXSSUHVVLRQV\VWHPVSDVVLYHILUHVWRSVDUHSURYLGHGIRUQRQVDIHW\UHODWHGHOHFWULFDOFDEOHVURXWHG
SSUHVVLRQV\VWHPVSDVVLYHILUHVWRSV SSUHVVLRQV\VWHPV SDVVLYHILUH QFDEOHWUD\VLQILUH]RQH $)
QFDEOHWUD\VLQILUH]RQH
$)$
$)
DU LQRSHQFDEOHWUD\VLQILUH]RQH$)% WKHUHDUHQRVXFKFDEOHWUD\VLQILUH]RQH
$)$ SURYLGLQJDGGLWLRQDODVVXUDQFHWKDWDILUHZLOOQRWSURSDJDWHEHWZHHQWKHVHILUH]RQHV
SURYLGLQJDGGLWLRQDODVV 3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH8)6$56XEVHFWLRQ$)LUH=RQH$)%E\UHSODFLQJRSHQ
QR))OHZDWHUVSUD\VXSSUHVVLRQV\VWHPVZLWKSDVVLYHILUHVWRSVDVVKRZQEHORZ
$ )LUH=RQH$)%
6DIH6KXWGRZQ(YDOXDWLRQ
6DIHW\UHODWHGFDEOHVDUHURXWHGLQFORVHGFDEOHWUD\VRUFRQGXLW)RURSHQFDEOHWUD\VZKLFK
W)RURSHQFDEOHWUD\VZKL
)RURSHQFDEOH UHSUHVHQWWKHRQO\VLJQLILFDQWLQVLWXFRPEXVWLEOHVLQILUH]RQH$)%SDVVLYHILUH
$)%SD
$)%SDVVLYHILUH
$)
VWRSVDUHSURYLGHGWRSUHYHQWSURSDJDWLRQRISRVWXODWHGILUHVLQWKHVHRSHQFDEOHWUD\VIURP
HVLQWKHVHRSHQFDEOHWUD\
HVLQWKHVHRSHQFDEOHWUD\VIURP
SURSDJDWLQJWRDQDGMDFHQWILUH]RQHWKLVILUH]RQHRSHQQR))OHZDWHUVSUD\VXSSUHVVLRQ
QR))OHZDWHUVSUD\VXSSUHVVLRQ V\VWHPVDUHSURYLGHG7KHVHV\VWHPVDUHDXWRPDWLFH[FHSWWKDWWRSUHFOXGHLQDGYHUWHQW
H[FHSW H[FHSWWKDW WRSUHFOXGHLQDGYHUWHQW
SUHFOXGHLQDGYHUWHQW DFWXDWLRQRSHUDWRUDFWLRQLVUHTXLUHGWRRSHQWKHRXWERDUGFRQWDLQPHQWLVRODWLRQYDOYH7KHVH
XWERDU XWERDUGFRQ WDLQPHQWLVRODWLRQYDOYH QPHQ VXSSUHVVLRQV\VWHPVUDSLGO\H[WLQJXLVKDILUHLQWKHVHFDEOHWUD\VDQGSUHYHQWILUHSURSDJDWLRQ
WKHVHFDEOHWU HFDEOH D\VDQGSUHYHQWILUHS D\VDQ WRDGMDFHQWILUH]RQHV
7KHXVHRIZDWHUVSUD\V\VWHPVIRUWKHRSHQFDEOHWUD\VLQWKLVILUH]RQHOLPLWVVPRNHDQGKHDW
RSHQFDEOHWUD\VLQWKLVILUH]RQHOLP RSHQFDEOHWUD\VLQWKLV ILUH
7 JHQHUDWLRQ6PDOOTXDQWLWLHVRIVPRNH6PRNHDQGKRWJDVHVIURPDILUHLQWKLVILUH]RQHULVH
XSSHUSRUWLRQRIFRQWDLQPHQW
QW
QW
6PRNH
PRNHDQGKRWJDVHVIURPDILUHL DQGKRWJDVHVIURPDILU WKURXJKRSHQLQJVLQWKHFHLOLQJRUPLJUDWHYLDWKHODUJHVWHHOJUDWLQJFRYHUHGKDWFKHVEHWZHHQ
PLJUDWHYLDWKHODUJHVWHHO YLDWKHODUJHVWHHOJUDWLQJF
JUDWLQJF WKHFRQWDLQPHQWPDLQWHQDQFHKDWFKDQGWKHVWHDPJHQHUDWRUFRPSDUWPHQWLQWKHDGMDFHQW
DWFKDQGWKHVWHDPJHQHUDWRUFRP SRUWLRQVRIWKHPDLQWHQDQFHIORRU
HVWHDPJHQHUDWRUFR RRU ILUH]RQH$)$ LQWRWKHODUJHDLUVSDFHLQWKH
LQ
LQ 7KHVHGLYLVLRQ%DQG'HOHFWULFDOSHQHWUDWLRQVDQGWKHLUDVVRFLDWHGUDFHZD\VDUHSURWHFWHGIURP
QG'HOHFWULFDOSHQHWUDWLRQVDQGWKH G'HOHFWULFDOSHQHWUDWLRQVDQGWKH DILUHLQWKLVILUH]RQHE\DFRPELQDWLRQRIEDUULHUVGLVWDQFHDQGSDVVLYHILUHVWRSVILUH
]RQHE\DFRPELQDWLRQRIEDUULHUVG E\DFRPELQDWLRQRIEDUULHUVG VXSSUHVVLRQV\VWHPV1RQFRPEXVWLEOHEDUULHUVRIVWHHORUVWHHOFRPSRVLWHFRQVWUXFWLRQIRUP
YHUWLFDOVKDIW 5
\VWHPV1RQFRPEXVWLEOHEDUULHUVR 1RQFRPEXVWLEOHEDUULHUVR IW V IURPWKHIORRUXSWRWKHRSHUDWLQJGHFNVXUURXQGLQJWKHGLYLVLRQ%DQG'
IURPWKHIORRUXSWRWKHRSHUDWL
IURPWKHIORRUXS
SHQHWUDWLRQVDQGWKHDVVRFLDWHGFDEOHWUD\V7KHVLJQLILFDQWFRPEXVWLEOHPDWHULDOVLQWKLVILUH
RQVDQGWKHDVVRFLDWHGFDE RQVDQGWKHDVVRFLDWHGFDEOHWUD\V
]RQHDUHWKHQRQVDIHW\UHODWHGFDEOHVURXWHGLQRSHQFDEOHWUD\V7KHVHFDEOHWUD\VDUHORFDWHG
DUHWKHQRQVDIHW\UHODWHGFDEOHV
DUHWKHQRQVDIHW\UHODWHGFDEOHVURX DWOHDVWIHHWIURPWKHGLYLVLRQ%DQG'SHQHWUDWLRQVDQGWKHLUDVVRFLDWHGUDFHZD\VDQGWKH\
HDVWIHHWIURPWKHGLYLVLRQ%DQG DUHSURYLGHGZLWKSDVVLYHILUHVWRSVWRSUHYHQWSURSDJDWLRQRISRVWXODWHGILUHVLQWKHVHRSHQ
SURYLGHGZLWKSDVVLYHILUH SURYLGHGZLWKSDVVLYHILUHVWRSV
S WUD\VIURPSURSDJDWLQJ
WUD\VIURPSURSDJDWLQJWRD V\VWHPV
\ S S J J S
FDEOHWUD\VIURPSURSDJDWLQJWRDQDGMDFHQWILUH]RQHSURWHFWHGE\ZDWHUVSUD\VXSSUHVVLRQ
3DJHRI
1''5$)7
(QFORVXUH
'5$)73URSRVHG&KDQJHVWR/LFHQVLQJ%DVLV'RFXPHQWV /$5
5HYLVH8)6$57DEOH$)LUH3URWHFWLRQ6XPPDU\E\UHPRYLQJZDWHUVSUD\IL[HG
VXSSUHVVLRQFDSDELOLW\IURPILUH]RQH$)%DVVKRZQEHORZ
%RXQGDU\
)ORRU )LUH +HDW &RPE (TXLY )LUH )L[HG
6DIHW\ $UHD &RPEXVW 6HY 9DOXH /RDG 'XU 5HV 'HWHFW 6XSSUHVVLRQ
)LUH$UHD=RQH $UHD" 6T)W 0DWHULDO &DW $PRXQW %WX %WX6T)W 0LQ +RXUV &DS &DSDELOLW\
$)% &$%/(,16 & ( :$7(5635$<
0$,17(1$1&()/225 75$6+ % ( +
+26(67$7,21
1257+ 92/$7,/(6 ( (
1(7&$7 ' 727$/ (
5 5HYLVH8)6$57DEOH$335$%DVHG,QVLJKWV,WHPDVVKRZQEHORZ
35$%DVHG,QVLJKWV,WHP
35$%DVHG,QVLJKWV,WHP D
$)
,QVLJKW
,QVLJKW 'LVSRVLWLRQ
$QDQDO\VLVLVSURYLGHGWKDWGHPRQVWUDWHVWKDWRSHUDWRUDFWLRQVZKLFK
GHGWKD GHPRQVWUDWHVWKDWRSHUDWRUDF GHGWKDW RQVWUDWHVWKDWRSH
PLQLPL]HWKHSUREDELOLW\RIWKHSRWHQWLDOIRUVSXULRXV$'6DFWXDWLRQDVDUHVXOW
EDELOLW\RIWKHSRWHQWLDOIRUVSXULRXV$'6 EDELOLW\RIWKHSRWHQWLDOIRUVSXULRXV
RIDILUHFDQEHDFFRPSOLVKHGZLWKLQPLQXWHVIROORZLQJGHWHFWLRQRIWKHILUH
HDFFRPSOLVKHGZLWKLQPLQXWHVIROORZ DFFRPSOLVKHGZLWKLQPLQXWHVIROOR DQGWKHSURFHGXUHIRUWKHPDQXDODFWXDWLRQRIWKHYDOYHWRDOORZILUHZDWHUWR
FHGXUHIRU UHIRUU WKHPDQXDODFWXDWLRQRIWKHY UHDFKWKHDXWRPDWLFILUHV\VWHPLQWKHFRQWDLQPHQWPDLQWHQDQFHIORRU
DXWRPDWLFILUHV\VWHPLQWKHFRQWDLQPH ILUHV\VWHPLQWKHFRQWDLQPH 7
3DJHRI