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This presentation by Angela Maybrier from Booz Allen Hamilton covers the intricacies of developing renewable energy projects on Department of Defense (DoD) land. Key discussion points include site selection challenges, energy asset dynamics, and procurement options. Participants will learn about the unique roadblocks developers face, strategies to gain stakeholder support, and the importance of aligning financial interests. Key takeaways include the necessity of flexibility, realistic expectations, and active community involvement to maximize project success.
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Developing Renewable Energy Projects on DoD land Angela Maybrier, Booz Allen Hamilton Grand Hyatt/San Antonio TX Wednesday, February 16th 2011
Agenda Overview EUL Program – Developer’s Perspective • Site Selection Challenges • Road Blocks to Success Energy EUL (E-EUL) Dynamics • Goals • Incentives • Procurement Options Key Drivers Recommendations and Take-Aways Questions & Answers
Overview • Developments on DoD land have both upsides and downsides vs. other land use tools • Every EUL competes with every other land and/or energy deal in its market • Developer and Land Owner have similar motivations • Gaining the most value from the land asset as quickly as possible • Development deal is not an emotion, it’s a number – does the project pencil?
Site Selection and Development Challenges • Incomplete NEPA and/or unrealistic timelines • Limiting development options • Size – parcels of land too small, non-contiguous or unusual perimeter • Location – interior of installation brings security, mission impact, or marketability into question • Proximity to necessary infrastructure for type of development • Lack of key stakeholder buy-in participation • Commercial viability
Roadblocks to Success • Multiple Stakeholder Interests • Potential opposing interests • Property Valuation • Land has no intrinsic value • Value = Land’s ability to generate cash flow • Cost should be discounted by how much investment needs to be made and the risk associated with the project • Time is Money – Certainty of Schedule • Upfront payment and delayed approval limits developers’ ability to obtain necessary ROI
Energy EUL (E-EUL) - Dynamics • Define Goals: • Revenue or Purchase of Power • Energy Independence • Executive Order Requirements • Incentives • Tax Credits • Tax-Exempt Bonds • Renewable Energy Credits • Community Involvement • Local University • Local Utility • Local Economic Development Corporation
Key Drivers – EUL and E-EUL • Clearly Identified Project Champion • Champion for both the real estate/lease component as well as potential PPA negotiations • No ambiguity about NEPA or other environmental and permitting transmission issues – bad news does not get better with time • Apparent unified support for project through the Chain of Command • Market compatibility/desirability of location
Recommendations • Complete Finding of Suitability to lease (FOSL), and supporting documents for necessary NEPA process early • Pre-educate Deal Team on deal challenges • Consistency in selection criteria • Make sure ALL stakeholders know what is proposed • Establish timelines based on key milestones • Development concepts synergistic to installation mission • Local Community Support • Quality not Quantity of projects • Energy-related projects • RFQ for Regional Developer Partner
Key Take-Aways • Flexibility – nothing else can make a deal work or fail faster • Deal Teams need to understand market fluctuations • Realize project marketability can change during Business and Lease Plan Process and/or Lease and Management Plan Process • Alignment of financial interests • Realistic financial expectations • Continuous dialog and trust • Timing and schedule • Quality of opportunity and development team
QUESTIONS + ANSWERS Contact: Angela G. Maybrier Booz Allen Hamilton Tel: 210-932-5604 Mobile: 210-334-1741 Email: Maybrier_Angela@bah.com