Innovation, Efficiency & Partnerships in Energy

1. Innovation, Efficiency & Partnerships in Energy Mr. Alan D. King Assistant Secretary of the Army for Installations, Energy & Environment 15 February 2011

2. 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

3. 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 .”

4. Army Energy Goals • Net Zero Installations • Leveraging Public/Private Authorities • Reduce Operational Energy in base camps

5. Net Zero Hierarchy • A Net Zero ENERGY Installation is 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.

6. Leveraging private sector investments is a strategy to advance efficiencies in an era of constrained resources. Leveraging Private Investments Authorities from Congress (underutilized): • Energy Savings Performance Contracts (ESPC) – Implementation and financing of energy efficiency projects out of energy cost savings • Enhanced Use Lease (EUL) – Use of non-excess Army land exchanged for In-kind SRM projects • Power Purchase Agreement (PPA) – Energy projects installed on installations at no-cost in exchange for long term agreements to purchase renewable energy • Utility Energy Service Contracts (UESC) – Service contract with utility provider Other Authorities (well utilized): • Residential Community Initiative (RCI) – privatized housing • Privatized Army Lodging (PAL) • Utility Privatization (UP)

7. Accelerating Technologies for Theater Challenges Fuel & water comprise 70-80% of ground resupply by weight… …and 1 casualty occurs for 24 ground resupply convoys in OEF Potential Solutions Smart and Green Energy (SAGE) for Base Camps • Smart Micro-grids • Renewable Energy • Purpose-built Shelters • Efficient Generators • Onsite Water Piloting Solutions in Permanent Installations Increase Efficiency Demand Management Diversifying Supply Portable Solar Power Water Reuse Spray Foamed Tents

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

9. 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 (Dec 2010) Policy will assist Army contractors to validate and obtain tax incentives and deduction 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 Hot Water Systems, and lighting can each qualify for 1/3 of the deduction The tax incentives were authorized in the 2005 Energy Policy Act and enacted as IRC Section 179D Energy & Sustainability – Recent Policies

10. U.S. Army Energy Consumption, 2009 Federal Government United States Department of Defense Federal Gov 1% DoD 80% Army 21% • Facilities • Vehicles & Equipment • (Tactical and Non-tactical) U.S. = 94,578 Trillion Btu DoD = 880 Trillion Btu Fed Gov = 1,096 Trillion Btu U.S. Army = 190 Trillion Btu Sources: Energy Information Agency, 2009 Annual Energy Review; Agency Annual Energy Management Data Reports submitted to DOE's Federal Energy Management Program (Preliminary FY 2009)

11. Installation Energy Program • Engaged Army Leadership • Charter a comprehensive Senior Energy & Sustainability Council (SESC) • AUSA Senior Army Leadership Panel: Energy & Sustainability • Change Army Culture: • ASA (IE&E) Policies: • Utilization of Efficient Lighting Policy (Oct 2010) • Sustainable Design & Development Policy (updated Oct 2010) • Building Efficiency Tax Deduction Policy (Dec 2010) • Army energy billing at privatized housing and mock billing for Brigade Combat Teams now allows the Army to better track energy costs • Spread the word: Soldier Magazine, Jan 2011 has 8 articles on efficient & renewable energy • Professionalism & Training • Each installation implements a requirement for a trained, dedicated energy manager on-staff • Annual Army Energy Manager Training Workshops

12. 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

13. Example Energy Security Projects BLACK: Existing System BLUE: Planned Project RED: Development or Testing Project Fort Drum, NY (Solar Wall) Hawthorne Army Depot, NV (Geothermal Power) Tooele AD, UT (Wind Power) Fort Knox, KY (Ground Source Heat Pumps, Shale Gas) Fort Irwin, CA (Solar Power) Fort Bragg, NC (LEED Platinum) Fort Carson, CO (Solar PV Array) Fort Sill, OK (Micro-grid Field Demo) Fort Jackson, SC (Fuel Cells) Fort Bliss, TX (Geothermal Well Tests) Fort Huachuca, AZ (Rooftop PV) Renewable Energy 2010 Summary TOTAL PROJECTS – 126 194,643 MWh of renewable generation in FY2010 Source 2010 Army Energy Management Report

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

15. http://www.asaie.army.mil/Public/IE/ - ASA (IE&E) Website • Army Policies • Net Zero Information • http://www.asaie.army.mil/Public/Partnerships/EnergySecurity/ DASA (E&S) Website • Army Energy Security Implementation Strategy • http://aec.army.mil/usaec/sustainability/campaign-plan_2010.pdf • Army Sustainability campaign plan