NAVFAC SOUTHWEST RENEWABLE ENERGY PROGRAM Joint SAME/SMPS-OC Breakfast August 26, 2010 Nathan Butler, PE NAVFAC Southwest Renewable Program Office Nathan.Butler@navy.mil

NAVFAC SW Area of Responsibility Navy Installation Marine Corps Installation Air Force Base Travis AFB NAS Fallon ROICC San Francisco Bay MWTC Bridgeport NAS Lemoore NPS Monterey NAWS China Lake MCAGCC Twentynine Palms NB Ventura County MCLB Barstow NWS Seal Beach NAVFAC SW presence at 16 sites: (9) Navy, (6) Marine Corps & (1) Air Force MCAS Miramar MCB/MCAS Camp Pendleton MCAS Yuma NAS North Island NB San Diego NB Point Loma NAF El Centro

FY09 Navy Region Southwest Consumption Installation Water Energy Cost (KGal) Capacity (MW B/P) Electric (MWH) Natural Gas (MBTU) Consumed (MBTU) ($) NB San Diego 615,000 25 / 60 328,500 54,000 1,175,300 $ 37,100,000 Coronado 575,000 19 / 45 247,000 116,000 959,600 $ 28,200,000 Point Loma 210,000 9 / 21 135,500 48,500 510,900 $ 15,600,000 Ventura County 618,000 7 / 15 96,000 177,000 504,800 $ 14,100,000 NAS Lemoore 592,000 7 / 19 91,000 189,000 500,200 $ 8,600,000 NAWS China Lake 631,000 7 / 20 106,000 434,500 $ 12,000,000 Fallon 102,000 3 / 7 37,500 131,000 259,300 $ 5,600,000 NSA Monterey 32,000 2 / 4.5 26,900 81,700 256,000 $ 3,600,000 NAF El Centro 139,000 2 / 4 17,700 12,400 73,000 $ 2,300,000 NWS Seal Beach 98,500 26,350 33,500 123,500 $ 4,000,000 Total Consumption 3,611,100 83 / 198 1,103,200 950,000 4,714,300 $ 131,170,000

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Department of Defense Energy Goals Reduce Energy Intensity 30% by 2015 Energy Independence and Security Act (EISA 2007) Consume 7.5% Renewable Energy by 2013 Energy Policy Act (EPACT 2005) Produce or Procure 25% Renewable Energy by 2025 National Defense Authorization Act (NDAA 2007/2010 ) Executive Order 13423, Strengthening Federal Environmental, Energy, and Transportation Management (72 FR 3919; January 24, 2007) EO13423 requires that agencies: Ensure that: (i) at least half of the statutorily required renewable energy consumed by the agency in a fiscal year comes from new renewable sources, and (ii) to the extent feasible, the agency implements renewable energy generation projects on agency property for agency use. EPACT 2005 Provides a bonus to Federal agencies by allowing them to double count renewable energy if it is produced on-site and used at a Federal facility, produced on Federal lands and used at a Federal facility, or produced on Native American land and used at a Federal facility, as long as the RECs are retained EO 13514 - 30% reduction in vehicle fleet petroleum use by 2020; - 26% improvement in water efficiency by 2020; - 50% recycling and waste diversion by 2015; - 95% of all applicable contracts will meet sustainability requirements; - Implementation of the 2030 net-zero-energy building requirement; - Implementation of the stormwater provisions of the Energy Independence and Security Act of 2007, section 438; and - Development of guidance for sustainable Federal building locations in alignment with the Livability Principles put forward by the Department of Housing and Urban Development, the Department of Transportation, and the Environmental Protection Agency. Photo: MCB Camp Pendleton 47 KW roof-mounted PV Assault Craft Unit 5 Hangar ECIP 2005

Secretary of the Navy Energy Goals Energy Efficient Acquisition Evaluation of energy factors will be mandatory when awarding contracts for systems and buildings Sail the “Great Green Fleet” DON will demonstrate a Green Strike Group in local operations by 2012 and sail it by 2016 Reduce Non-Tactical Petroleum Use By 2015, DON will reduce petroleum use in the commercial fleet by 50% Increase Alternative Energy Ashore By 2020, at least 50% of shore-based energy requirements will come from alternative sources; 50% of DON installations will be net-zero Increase Alternative Energy Use DON-Wide By 2020, 50% of total DON energy consumption will come from alternative sources

How Do We Eat this Elephant? Focus on Efficiency – Lower the Denominator Use audits to develop projects Appropriated funds: the $$$$$$$$ is coming Use other people’s money: financed projects Renewable Energy Right Price, Right Place, Right Time Use other people’s money: PPAs, EUL, EJV Revise Strategy – Not All Bases are the Same Focus efforts and investment on areas with high opportunity and high-return 11/12/2018

Contract Vehicles: Efficiency, Small Renewable Projects Conventional Construction Contracts 8(a), IDIQ, MAC, RFP, IFB, etc. Third-Party Financed Projects Utility Energy Services Contract (UESC) Energy Savings Performance Contracts (ESPC) Paid off by savings generated by the projects

Contract Vehicles: Large-Scale Renewable Projects Use “other people’s money” Leverage private money and expertise Long-term contracts: 10-50 years Power Purchase Agreement (PPA) Government buys all power Energy Joint Venture (EJV) Business Deal; Developer sells power, Government gets royalties and/or power Enhanced Use Lease (EUL) Real Estate Deal; Developer sells power, Government gets ‘in-kind consideration’

Large-Scale Renewable Projects Current Initiatives Solar PPA Multiple Award Contract Miramar Landfill Gas PPA Large-Scale EJV/EUL Projects MCAS Yuma NAS Lemoore

How to Get Involved Efficiency, Small Renewable Large-Scale Renewable Standard Contracts (MAC, 8(a), etc.) Partner with ESCOs, Utilities Large-Scale Renewable Requests for Information Requests for Proposals Industry Forums Interested Parties List

Renewable Program Office QUESTIONS? Nathan Butler, PE NAVFAC Southwest Renewable Program Office Nathan.Butler@navy.mil