MILCON, MRE Program Environmental Update

1. MILCON, MR&E Program & Environmental Update

2. Agenda MILCON Current Status 07 Submissions MR&E Eligibility & Submissions Funding Streamlining Environmental

3. Military Construction (MILCON) Projects MILCON

4. DLA MILCON Program Project Dollars by CINC The projects shown are the total currently identified MILCON requirement for the FY 96 - 03 programs. As you can see, the lion�s share of the MILCON projects programmed are AF initiatives. The projects shown as DFSC are Korea tie-in projects. The projects shown are the total currently identified MILCON requirement for the FY 96 - 03 programs. As you can see, the lion�s share of the MILCON projects programmed are AF initiatives. The projects shown as DFSC are Korea tie-in projects.

5. PERISCEn Route Infrastructure MILCON Purple completed Black in progress Blue designed Green programmedPurple completed Black in progress Blue designed Green programmed

6. 2007 Pacific MILCON Submissions NSF Diego Garcia �Construct Tank $17.2 M Elmendorf AFB � Type 4 Hydrant $14.8 M FISC Pearl Harbor - Replace Kuahua Pipelines $15.2 M Replace Five Tanks $60.9 M Replace Red Hill Rails $ 5.9 M Kunsan AB � Construct Tank $10.3 M Osan AB � Type 3 Hydrant $11.9 M Yokota AB � Type 3 Hydrant $19.5 M Total $ 155.7M

7. DLA�s MILCON Program Funding History This chart shows the history and future projections for the Fuel MILCON program. This chart shows the history and future projections for the Fuel MILCON program.

8. MILCON ProgramAlternatives The projects shown are the total currently identified MILCON requirement for the FY 96 - 05 programs. The projects shown are the total currently identified MILCON requirement for the FY 96 - 05 programs.

9. Maintenance, Repair, & Environmental (MR&E) Program

10. MR&E Funding Eligibility Eligible projects must store, distribute, assure quality, or assure regulatory compliance for DLA owned-product. The MR&E program can only be used to fund work on real property facilities. Mobile equipment such as barges, trucks, & portable generators is not eligible.

11. FY04 MR&E Submission Flow For PACOM

12. MR&E Program Program Expenditures

13. MR&E ProgramActive Projects by CINC

14. DESC MR&E Budget Three �colors� of MR&E funds: MR&E: All Maintenance, $192.8M Repair, and Env projects MC (operating): below $100k $ 6.3M MC (capital): $100k to $750k $28.6M FY03 budget: $227,700,000

15. What is PACOM�s share?

16. MR&E Current Issues Capitalization of New Products Fuel Oil Reclaimed (FOR) at FISCs E85 and Biodiesel JPTS � as of Oct 02 NOT Capitalized Compressed Natural Gas (CNG) In FY02: MILCON threshold was raised to $750,000 Streamlining MR&E Projects(MATOC, 8(a), Raise auth. levels) Revising SPCC plans (40 CFR 112)

17. MR&E Approval Limits

18. MR&E Projects Requiring DLA Approval This chart shows the number of sites and number of active projects for each Service. The AF now has the largest number of projects in our MRE Program. The Navy has been the biggest player in the MRE Program throughout phase I of IMM for the past 12 years and continued this trend through the initial years of the phase II implementation. The number of AF sites participating in IMM Phase II has increased each year, putting the AF on the same level with the Navy in terms of numbers of projects submitted and funding annually. This chart shows the number of sites and number of active projects for each Service. The AF now has the largest number of projects in our MRE Program. The Navy has been the biggest player in the MRE Program throughout phase I of IMM for the past 12 years and continued this trend through the initial years of the phase II implementation. The number of AF sites participating in IMM Phase II has increased each year, putting the AF on the same level with the Navy in terms of numbers of projects submitted and funding annually.

19. Centrally Managed Programs& Special Assignments

20. MR&E Program Managers

21. DESC Environmental Services Good morning/afternoon. I am _______________, and I work as an environmental protection specialist at the Defense Energy Support Center. Today I�m going to give you an overview of environmental costs at your fuel storage facilities which are eligible for DESC funding. The information that I will cover can be found in Chapter 11 of DESC�s Environmental Guide for Fuel Terminals. (show copy of Guide). Good morning/afternoon. I am _______________, and I work as an environmental protection specialist at the Defense Energy Support Center. Today I�m going to give you an overview of environmental costs at your fuel storage facilities which are eligible for DESC funding. The information that I will cover can be found in Chapter 11 of DESC�s Environmental Guide for Fuel Terminals. (show copy of Guide).

22. Let me give you a little bit of background as to who and what is the Defense Energy Support Center. We�re one of the supply centers of the Defense Logistics Agency and we�re responsible for the purchase, transportation, storage and distribution of petroleum products used by the military services. We�re located at Ft. Belvoir, VA. Within DESC there is the Facilities Management & Distribution Business Unit. That�s where the Environmental section resides. We have responsibility for the environmental compliance, remediation, and safety issues at 10 active GOCO petroleum storage facilities across the country. We also are responsible for monitoring the environmental cleanup of 10 closed GOCO petroleum storage facilities. But, the part that is really important to you is the support we provide for the review and funding of environmental compliance and remediation projects at your facilities.Let me give you a little bit of background as to who and what is the Defense Energy Support Center. We�re one of the supply centers of the Defense Logistics Agency and we�re responsible for the purchase, transportation, storage and distribution of petroleum products used by the military services. We�re located at Ft. Belvoir, VA. Within DESC there is the Facilities Management & Distribution Business Unit. That�s where the Environmental section resides. We have responsibility for the environmental compliance, remediation, and safety issues at 10 active GOCO petroleum storage facilities across the country. We also are responsible for monitoring the environmental cleanup of 10 closed GOCO petroleum storage facilities. But, the part that is really important to you is the support we provide for the review and funding of environmental compliance and remediation projects at your facilities.

23. Regional HighlightsPacific POC � Jack O�Donovan GOCOs � 3 Active in Korea (Kunsan, Yechon & Pohang) + Fuels Laboratory GOGOs � 72 facilities Highlights � Korean GOCO Spill Prevention & Hazwoper Training Korean GOCO SPCC Plan Updates Okinawa USMC USTs removed/replaced with SCATS Okinawa USMC Gas Stations converted from GOGO to GOCO

24. Regional HighlightsAlaska POC � Wayne Barnum GOCOs � 1 Active P/L in Alaska, 2 Inactive in Alaska GOGOs � 10 facilities Highlights � DFSP Anchorage �Big Dig� a success � have ROD DFSP Whittier steam sparge system start-up/operating Eielson AFB P/L spill response support Continued SUPSALV Tier I, II, & III response funding

25. DESC WorldwideEnvironmental Costs

26. DESC WorldwideEnvironmental Costs

27. Environmental Compliance Assistance Available

28. Spill Remediation Assistance Available

29. Pollution PreventionAssistance Available

30. ENV Challenges Increase Participation in Enviro. Compliance Program Revised SPCC Regulations

31. COMPLIANCE PARTICIPATION(Pacific Theater) Fiscal Year Participation* 02 17% 01 18% 00 15% 99 10% 98 11% * % Eligible Bases Requesting DESC Funds

32. 40 CFR 112: SPCC Revisions Applicable ONLY at Locations Subject to Compliance with Federal Regulations Typically not Overseas Unless Dictated by Country Specific Environmental Governing Standards 17 Jul 02 Final Revised SPCC Rule Published 17 Aug 02 Revised SPCC Rule Effective 17 Feb 03 Plan Review/Amendments Required 18 Aug 03 Plan Implementation Required

33. SPCC RevisionsMajor Changes SPCC applies to facilities storing over 1,320 gallons of oil aboveground USTs not included in Volume Thresholds Containers 55 Gal and up are included Plan Must be Certified in Compliance w/ Industry Standards Mandatory Containment / Diversion Capability Additional Training and Inspection Requirements

34. SPCC RevisionsAdditional Info Full Text of the Rule: http://www.epa.gov/fedrgstr/EPA-WATER/2002/July/Day-17/ Assistance or Detailed Analysis of Revisions Contact: Jack O�Donovan Cmcl: (703) 767-8309 DSN: 427-8309 Email: Jodonovan@desc.dla.mil

35. Questions?