Army Energy & Sustainability Program Overview Society of American Military Engineers Northern Virginia Post 3 Feb

1. Army Energy & Sustainability Program Overview Society of American Military Engineers Northern Virginia Post 3 February 2011 Mr. Alan King Director, Energy Partnerships DASA(Energy & Sustainability)

2. Topics • Army Energy Policy Background • Renewable Energy Development Strategy • Example Renewable Energy Projects • Conclusion

3. Leadership Supports Energy and Sustainability Initiatives “Now, there are costs associated with this transition. And there are some who believe that we can’t afford to pay those costs right now. I say we can’t afford not to change how we produce and use energy – because in the long-term costs to our economy, our national security and our environment are far greater. “ -President Obama, Jun 2010 “We're making our government's largest ever investment in renewable energy – an investment aimed at doubling the generating capacity from wind and other renewable[s]...” -President Obama, Sep 2009 “The Army has developed a comprehensive energy security strategy, and is acting now to implement initiatives to make us less dependent on foreign sources of fuel and better stewards of our nation’s energy resources. “ -CSA, SA Testimony to the Senate Appropriations Defense Subcommittee, March 2010 “…[T]he Army is actively supporting advanced technologies and increases in energy efficiencies at our installations, in our weapon systems, and in operations.” -SMA, CSA, SA, Army Energy Awareness Month Letter, Oct 2009

4. Quadrennial Defense Review February 2010 • Energy Security – “assured access to reliable supplies of energy and the ability to protect and deliver sufficient energy to meet operational needs” – pg 87 • DoD will • promote investments in energy efficiency • ensure that critical installations are adequately prepared for prolonged outages caused by natural disasters, accidents, or attacks • Balance energy production and transmission to preserve test and training ranges and operating areas needed to maintain readiness • “Energy efficiency can serve as a force multiplier, because it increases the range and endurance of forces in the field and can reduce the number of combat forces diverted to protect energy supply lines…” – pg 87 • QDR energy security discussion is consistent with Army approach and priorities

5. IE&E New Name - Focused Mission Installations, Energy and the Environment • Updated name incorporates ‘energy’to emphasize the growing importance of energy security and sustainability within the Army • Aligns the Army to carry out priorities set by President Obama • Maintains ongoing focus on Army installations and the environment ASA(IE&E) Mission Statement • “ASA (IE&E) provides strategic direction for Army installations and facilities in all matters relating to infrastructure, energy and the environment, to support global Army missions in a cost effective, safe, and sustainable manner .”

6. Integrated Energy Security & Sustainability Governance Energy and Sustainability • Combined Army Senior Energy Council (SEC) and Army Sustainability Council to form the Senior Energy and Sustainability Council • Institutionalize AESIS and ASCP • Develop and track key energy and sustainability metrics • Incorporate into Army Core Enterprise Army Sustainability Campaign Plan

7. ARMY UNIVERSE • Land Acreage • United States 13,506,291 • Europe 139,981 • Asia 21,405 • Other Overseas 15,309 • Army Installations • IMCOM 74 • Army Reserves 4 • National Guard 47 • AMC 30 • SMDC 1 • MEDCOM 2 • DLA 5 • TOTAL 163 Army End-Strength Active 549,015 USAR 205,297 ARNG 358,391 Civilians 245,248 Retired 838,927 Roads (paved and unpaved) 59,286 Miles Paved Area (excluding roads) 423 Million square yards • Airfield • 145 Fixed Wing • 738 Heliports Railroads 2,522 Miles Army Demographics 58% married 8.9% dual military 6.7% single parents 854,112 family members • Family Housing Units • Owned 18,721 • Leased 8,544 • Privatized 86,092 • Conveyed 79,477 • Buildings • (Million square feet) • United States 796 • Europe 117 • Asia 34 • Other 7 • Barracks • Adequate Spaces • Permanent Party 150K/167K • Training 51K/115K • ORTC 112K/253K • Environmental Clean-up Remaining • (Installation Restoration Program & • Military Munitions Response Program) • Active Sites 1,327 • BRAC Sites 318 • Formerly Used Defense Sites 1,953 • Utilities • Electric, gas, • water and sewer • 68,613 Miles Plant Replacement Value $296B FY09 Installation Management Resources = $28B (Including $3B -American Recovery and Reinvestment Act Funding (ARRA))

8. Infrastructure Comparison • DoD Built Infrastructure -- • 539,000 Facilities (buildings, structures, linear structures) • 307,295 buildings • 2.2 billion square feet • Army • ~ 148K buildings • 966 Million sq ft • GSA: • 1,513 buildings • 176 million square feet • Wal-Mart US: • 4,200 buildings • 687 million square feet • 160,000 Fleet Vehicles

9. U.S. Army Energy Consumption, 2009 Federal Government United States Department of Defense Federal Gov 1.2% DoD 80.3% Army 21.0% • Facilities • Vehicles & Equipment • (Tactical and Non-tactical) U.S. = 94,578 Trillion Btu DoD = 880 Trillion Btu Fed Gov = 1,095 Trillion Btu U.S. Army = 190 Trillion Btu Sources: Energy Information Agency, Monthly Energy Review, May 2010; Agency Annual Energy Management Data Reports submitted to DOE's Federal Energy Management Program (Preliminary FY 2009)

10. Utilization of Efficient Lighting Policy (Oct 2010) The Army will phase out purchases of incandescent light bulbs Implements Energy Independence and Security Act (EISA) of 2007 efficiency standards for manufacturers to improve the performance of lamps intended for general service applications Sustainable Design & Development Policy (updated Oct 2010) Policy update addresses the Army approach to the design and development of efficient military construction projects and major renovations by incorporating guidance in ASHRAE 189.1 as the baseline standard. Building Efficiency Tax Deduction Policy (Oct 2010) Policy will assist Army contractors to validate and obtain tax incentives and deduction credits for costs of installing certain energy efficient systems in government buildings Contractors can qualify for tax deductions of up to $1.80 per square foot. Building envelope, HVAC and SHW Systems, and lighting can qualify for 1/3 of the deduction The tax incentives were authorized in Section 179D of the 2005 Energy Policy Act Energy & Sustainability – Recent Policies

11. Net Zero Hierarchy • A Net Zero ENERGY Installationis an installation that produces as much energy on site as it uses, over the course of a year. • A Net Zero WATER Installation limits the consumption of freshwater resources and returns water back to the same watershed so not to deplete the groundwater and surface water resources of that region in quantity or quality. • A Net Zero WASTE Installation is an installation that reduces, reuses, and recovers waste streams, converting them to resource values with zero landfill. • A Net ZERO Installation is one which applies an integrated approach to management of energy, water, and waste to capture and commercialize the resource value and/or enhance the ecological productivity of land, water, and air.

12. Army plan to achieve net zero • Focus efforts to reduce the amount of energy, water and waste at our installations. • The Army’s Net Zero Installation Strategy kicks off with the selection of installations which will work to achieve net zero by FY2020. • Five net zero energy installations, five net zero water installations, and five net zero waste installations with one integrated net zero installation. • These installations will become centers of environmental excellence, showcasing best practices and demonstrating effective resource management. • I plan to announce the selected installations on 19 April 2011 at the Garrison Commander’s Conference in San Antonio, Texas.

13. Army Installation Renewable Energy Project Execution • Increasing Renewable Energy (RE) on Army installations is a top priority for the Army’s energy program & energy security strategy • FY12-16 POM indicated $13+B required energy investment - $7.5B would come from private sector • $1.5B per year average is 11 times more than Army did this year and more than all Federal agencies • Private financing for Army RE projects is critical • Provides needed project fundingin budget-constrained environment • Reduces risk to Army from RE project development • Supports larger-scale projects needed to achieve 25% RE by 2025 • Enables long-term agreements required to achieve project payback • Fosters Army achievement of aggressive energy goals Army progress towards NDAA and EPAct renewable energy goals

14. Army Renewable Energy Projects • The Army had 126 active renewable thermal and electric energy projects operating in FY 2010 • Does not include GSHPs or privatized housing on Army leased land • 83 were producing electricity qualifying for credit toward the Army’s renewable energy electric goal • 9 purchase renewable energy from private firms on private property

15. SUMMARY OF POTENTIAL RENEWABLE DEVELOPMENT OPPORTUNITIES

16. Intent & Outcomes • Vision: Partner with the commercial market in the development of large scale, RE projects that utilize Army assets to achieve 25% RE use by 2025, while increasing energy security and achieving broader Army energy goals. • Outcomes: • Implement an integrated Army-enterprise approach: provide expertise to installations, optimize a RE project portfolio by maximizing potential revenue and minimizing costs • Develop centralized expertise for effective partnership with commercial entities and for designing, implementing, and managing the Army’s Renewable Energy Program • Establish or modify policies and regulation internal to the Army & seek changes to statutes and external policy to enable rapid and cost-effective implementation of projects • Institute an Army “playbook” with clear and consistent processes for developing & executing projects, including guidance on deal structuring to maximize Army benefit and defining project roles & responsibilities • Garner support, educate stakeholders, and deliver guidance through a variety of strategic communications platforms • Develop a long-term plan for implementing a portfolio of prioritized projects

17. Way Ahead • Strategic Planning: Develop a RE Strategic Plan, informed by interviews at HQ, Command and installation level, to outline Army’s approach to renewable energy projects (formal coordination expected in April/May) • Policy: Advocate for crucial changes in policy regarding governance, contract periods, investment costs, RECs, and BLM withdrawn land use • Guidance & Process: Develop sophisticated technical models, decision making tools, and clear guidance on executing projects, including consistent and streamlined processes for deal making (Army RE “playbook”) • Strategic Communications: Conduct outreach plan to build advocacy and coordinate RE projects with internal and external stakeholders (e.g., ADC and other key outreach, project specific industry days) • Partnering: The Army must use its size and scale to be a reliable partner, attract investment and reduce capital costs