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Recital 3 . As part of the planning for BHEC , Calpine has investigated a wide range of <br /> potential sources for the cooling water. Calpine, in cooperation with the County and the District, has <br /> determined that the District ' s canal network has sufficient capacity to provide water, in the form of <br /> surface water and stormwater ("stormwater" as used herein shall mean water above the minimum <br /> level established by the District from time to time for water level guidelines in the District ' s canal <br /> system) , in the quantity and of the quality required by BHEC . <br /> Recital 4 . Calpine plans to build BHEC in two 540 MW phases . Calpine plans to have <br /> BHEC Phase I in operation in 2007 . In order to have Phase I of the Plant operational in 2007 , <br /> Calpine must have a water supply system in place for start-up and testing by June 2006 . The target <br /> operational date for Phase II has not yet been set; however, it will be subsequent to Phase I. All of <br /> the provisions of this Agreement shall be applicable to both phases of the Blue Heron Energy Center, <br /> except where the terms or context of this Agreement clearly indicate to the contrary. <br /> Recital 5 . The County, in cooperation with the District, St. Johns River Water Management <br /> District ("SJRWMD") , and the City of Vero Beach ("Vero Beach") , has completed a Stormwater <br /> Management Plan ("Master Plan") for stormwater impoundment and treatment which will meet the <br /> goals of improving the quality and reducing the quantity of surface and stormwater released into <br /> Indian River Lagoon, which Master Plan involves the incorporation and use of the District ' s system, <br /> works and structures . <br /> 2 <br /> 8 .5 .04 Water Agreement <br />