Developing Renewable Energy Projects on DoD Land

1. Developing Renewable Energy Projects on DoD Land Mr. Alan D. King Assistant Secretary of the Army for Installations, Energy & Environment 16 February 2011

2. Topics • Military Perspective • Army Priorities • Renewable Site Identification • Bureau of Land Management (BLM) Issues • Renewable Energy Certificates (RECs)

3. Military Perspective • Building a more secure energy future is essential to the Army, DoD, and the Nation • Energy security as a critical mission priority • Federal Mandates, DoD and Army Policies • Army cannot achieve energy goals through Appropriations alone • Increased reliance on renewable energy-focused 3rd party financing • Financing requires long-term agreements • Army is working to leverage Public/Private Authorities • Leverage Renewable energy potential for Army and regions • Essential to assured, affordable solutions to mission-critical energy requirements at Army installations

4. Renewable Energy Project Potential • The Army prioritizes CONUS installations for Renewable Energy Development based on: • Resource potential • State regulations • Federal and State incentives • Payback periods and levelized cost of electricity • Regulatory considerations • Through existing authorities the Army will leverage private investment to install renewable energy • ESPC • EUL • PPA • UESC Army Installations158 Land Acreage13,506,291 Buildings1+ Bsf The Army currently receives 2% of its electricity from renewable sources* *Does not include renewable thermal energy

5. Army Energy & Sustainability Priorities • Net Zero Installations - The Army goal is to manage our resources in a sustainable manner. • Our goal is to move toward energy security and sustainability with Net Zero Energy, Waste, and Water. • Leveraging Public/Private Authorities - The Army must become a better business partner to increase private sector investment and increase savings. • Reduce our Operational Energy in base camps through increased efficiency, demand management, and diversifying supply. • Fuel and water comprise 70-80% of our resupply into the combat zone and there is 1 casualty for every 24 convoys? • Deploying solutions on our installations will help increased efficiency, demand management, and diversified supply to not only save money, but possibly save lives in theater.

6. Renewable Energy Projects Site Identification Challenges Land Availability – withdrawn BLM Land Water Availability National Environmental Policy Act (NEPA) and other environmental, safety & health requirements Renewable Energy Certificates (RECs) Transmission / distribution lines

7. Renewable Energy Projects Considerations Technology Solar Wind Geothermal Biomass Other Acquisition Strategy PPA, EUL, ESPC, UP, MILCON / ECIP Financing Appropriated funds Public-private partnership Scoring Renewable Energy Credits

8. Power Purchase AgreementsAuthority Authority for up to 30 year PPAs is found at 10 USC 2922a: § 2922a. Contracts for energy or fuel for military installations (a) Subject to subsection (b), the Secretary of a military department may enter into contracts for periods of up to 30 years— (1) under section 2917 of this title [10 USCS § 2917]; and (2) for the provision and operation of energy production facilities on real property under the Secretary's jurisdiction or on private property and the purchase of energy produced from such facilities. (b) A contract may be made under subsection (a) only after the approval of the proposed contract by the Secretary of Defense. (c) The costs of contracts under this section for any year may be paid from annual appropriations for that year.

9. Army BLM Partnership • Goal: Army and BLM achievement of shared energy goals • Develop process and agreements to facilitate mission-related activities • Build on successful recent history of collaboration: • BLM Programmatic EIS • SunZia Distribution Lines • Established relationships: Installations with State and local offices; Regional Environmental and Energy Office • Enhance Army-BLM relationship focused on developing utility-scale renewable energy projects on withdrawn land

10. BLM - Way Ahead • Formalize agreement of partnership • Facilitate local BLM office coordination with installations • Provide assurance of automatic renewal of withdrawn-land status, for parcels 5000 acres or less, with renewable energy project • Army can support BLM legislative initiatives • EUL authority • Authority to share in benefits of projects • Continue to advance partnership at the DOD/DOI level • 12-13 Jan Interagency Agreement in Warrenton, VA • Refocused interagency coordination - only for Nevada process

11. EO13423 requires that federal agencies use new renewable energy sources Renewable power produces renewable attributes Army is going to use or retire the renewable attributes; will not buy! Very complicated process which the Army is still refining Army will be a good business partner to increase private sector investment Renewable Energy Certificates (RECs)

12. Conclusion Without ENERGY the Army stands still, silent and cold…….