NAVFAC SOUTHWEST RENEWABLE ENERGY PROGRAM Joint SAME/SMPS-OC Breakfast August 26, 2010

1. NAVFAC SOUTHWESTRENEWABLE ENERGY PROGRAMJoint SAME/SMPS-OC BreakfastAugust 26, 2010 Nathan Butler, PE NAVFAC Southwest Renewable Program Office Nathan.Butler@navy.mil

2. NAVFAC SW Area of Responsibility Navy Installation Marine Corps Installation Air Force Base Travis AFB NAS Fallon ROICC San Francisco Bay MWTC Bridgeport NAS Lemoore NPS Monterey NAWS China Lake MCAGCC Twentynine Palms NB Ventura County MCLB Barstow NWS Seal Beach MCAS Miramar MCB/MCAS Camp Pendleton MCAS Yuma NAS North Island NB San Diego NB Point Loma NAF El Centro

3. FY09 Navy Region Southwest Consumption

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6. Department of Defense Energy Goals • Reduce Energy Intensity 30% by 2015 • Energy Independence and Security Act (EISA 2007) • Consume 7.5% Renewable Energy by 2013 • Energy Policy Act (EPACT 2005) • Produce or Procure 25% Renewable Energy by 2025 • National Defense Authorization Act (NDAA 2007/2010 )

7. Secretary of the Navy Energy Goals By 2020, 50% of total DON energy consumption will come from alternative sources Energy Efficient Acquisition Evaluation of energy factors will be mandatory when awarding contracts for systems and buildings Sail the “Great Green Fleet” DON will demonstrate a Green Strike Group in local operations by 2012 and sail it by 2016 Reduce Non-Tactical Petroleum Use By 2015, DON will reduce petroleum use in the commercial fleet by 50% By 2020, at least 50% of shore-based energy requirements will come from alternative sources; 50% of DON installations will be net-zero Increase Alternative Energy Ashore Increase Alternative Energy Use DON-Wide

8. How Do We Eat this Elephant? • Focus on Efficiency – Lower the Denominator • Use audits to develop projects • Appropriated funds: the $$$$$$$$ is coming • Use other people’s money: financed projects • Renewable Energy • Right Price, Right Place, Right Time • Use other people’s money: PPAs, EUL, EJV • Revise Strategy – Not All Bases are the Same • Focus efforts and investment on areas with high opportunity and high-return

9. Contract Vehicles: Efficiency, Small Renewable Projects • Conventional Construction Contracts • 8(a), IDIQ, MAC, RFP, IFB, etc. • Third-Party Financed Projects • Utility Energy Services Contract (UESC) • Energy Savings Performance Contracts (ESPC) • Paid off by savings generated by the projects

10. Contract Vehicles:Large-Scale Renewable Projects • Use “other people’s money” • Leverage private money and expertise • Long-term contracts: 10-50 years • Power Purchase Agreement (PPA) • Government buys all power • Energy Joint Venture (EJV) • Business Deal; Developer sells power, Government gets royalties and/or power • Enhanced Use Lease (EUL) • Real Estate Deal; Developer sells power, Government gets ‘in-kind consideration’

11. Large-Scale Renewable Projects Current Initiatives • Solar PPA Multiple Award Contract • Miramar Landfill Gas PPA • Large-Scale EJV/EUL Projects • MCAS Yuma • NAS Lemoore

12. How to Get Involved • Efficiency, Small Renewable • Standard Contracts (MAC, 8(a), etc.) • Partner with ESCOs, Utilities • Large-Scale Renewable • Requests for Information • Requests for Proposals • Industry Forums • Interested Parties List

13. QUESTIONS? Nathan Butler, PE NAVFAC Southwest Renewable Program Office Nathan.Butler@navy.mil