Assistant Secretary of the Navy (Energy, Installations & Environment) 1 Association of Defense Communities – National Summit Panel: Executing Renewable Energy Projects Robert M. Griffin, Executive Director of the Department of the Navy’s Renewable Energy Program Office 2:15 – 3:30 pm Tuesday June, 2015

Assistant Secretary of the Navy (Energy, Installations & Environment) 2 DON Shore-Based Renewable Energy Goals Federal Goal The Energy Policy act 2005 requires 7.5 percent of our electrical consumption in FY13 and beyond to come from renewable sources. Extended by Executive Order to 30 percent by FY25 DOD Goal 10 U.S.C. § 2911 requires the Department of Defense (DoD) to produce or procure ≥25 percent of the total quantity of facility energy from renewable energy (RE) sources beginning in 2025 SECNAV Goal By the end of 2015, the DON will bring one gigawatt of renewable energy into procurement for the shore-based load.

Assistant Secretary of the Navy (Energy, Installations & Environment) What is a GW? Enough to power a quarter-million households for a year (approximately equal to the number of houses in Orlando, FL) About 6.6 million solar panels which would cover the floor size of about 13 US Pentagons (using 150w rated solar panels with dimensions of 49.4in x 38.5in) 3 Orlando, FL Aerial view of The Pentagon

Assistant Secretary of the Navy (Energy, Installations & Environment) Renewable Energy: Powering the Future In order to protect against potential economic and physical threats, and maintain stability, SECNAV created the renewable energy goals to boost the DON’s energy security. Adding renewable energy to the shore-based energy supply will provide long-term price stability, can ensure the physical security of RE facilities and diversify power supply. And, allow the DON to contribute further to the local community. 4 Solar Farm at NAWS China Lake, photo credit SunPower

Assistant Secretary of the Navy (Energy, Installations & Environment) REPO Project Development Models 5 Different Development Models Accommodate Diverse Requirements and Market Conditions Model 1 Model 2 Model 3 Off-base Generation for On-base Consumption (Acquisition: USC/PPA) On-base Generation for Off-base Consumption (Real Estate: Outgrant) On-base Generation for On-base Consumption (Acquisition: PPA)

Assistant Secretary of the Navy (Energy, Installations & Environment) Over 500 MW in Procurement to Date In a year since the stand-up of REPO, the DON has brought over 500 MW of renewable energy generation into procurement: Model 1 projects: 475 MW –Up to 210 MW of capacity for 13 installations in CA through the Western Area Power Administration –Up to 205 MW of capacity for 11 installations in the Mid-Atlantic and DC-area regions –Up to 58 MW of capacity for the 3 Texas installations Model 2 projects: 59 MW –17 MW of capacity at MCB Camp Lejeune with Duke Energy –42 MW of capacity at SUBASE Kings Bay with Georgia Power 6

Assistant Secretary of the Navy (Energy, Installations & Environment) Steps to Success for Model 1 Projects 1.Understanding consumption patterns and forecasting long-term loads to “right-size” projects 2.Work with Acquisition, Counsel and other internal stakeholders early-on and throughout. 3.Support and buy-in from Senior DoD leaders 4.Develop project schedule and Business Case Analysis to understand market timing and incentives 5.Created a successful model that is being adopted by CEQ, for use by other Federal entities 7 Dennis McGinn, right, Assistant Secretary of the Navy for Energy, Installations and Environment, speaks with Mark A. Gabriel, Administrator for Western Area Power Administration (WAPA), during an office call in McGinn's office at the Pentagon. The two discussed the Secretary of the Navy's initiative to meet the renewable energy requirements of 14 Department of the Navy installations in California.

Assistant Secretary of the Navy (Energy, Installations & Environment) Over 500 MW of Model 2 & 3 Projects Critical path elements for success: Completing expedited NEPA process by Summer/Fall 2015 Finalizing in-kind consideration to maximize energy security benefits and lay the framework for further capabilities 8 MCB Camp Lejeune Model 2 Project: 17 MW (DC) solar PV array located on MCB Camp Lejeune. The DON and Duke expect project completion by December 31, 2015.

Assistant Secretary of the Navy (Energy, Installations & Environment) 9 Model 1 Project Opportunities (as of June 2015) Guam 10 MW DVP 30 MW ERCOT 58 MW AC PJM up to 205 MW AC *Project size are estimates that are subject to change. DON RE Online CY14 90 MW CAISO up to 210 MW Pax River & Indian Head up to 30 MW AC REPO Project Opportunities USN Installations USMC Installations Model 1 Opportunities Italy 10 MW *All estimates for wattage in DC unless otherwise noted

Assistant Secretary of the Navy (Energy, Installations & Environment) 10 Model 2 Project Opportunities (as of June 2015) NWS Earle 20 MW SCE&G 9 MW HECO 56 MW Guam 45 MW DVP 40 MW Southern Co 225 MW Duke 17 MW NSB New London 6 MW Duke 20 MW REPO Project Opportunities USN Installations USMC Installations *Project size are estimates that are subject to change. TVA 72MW DON RE Online CY14 90 MW SCE 31 MW NS Newport 13 MW SDG&E 10 MW JEA 9 MW NAS Lemoore 250 MW NV Energy 20 MW Model 2 Opportunities

Assistant Secretary of the Navy (Energy, Installations & Environment) 11 Model 3 Project Opportunities (as of June 2015) HECO 15 MW REPO Project Opportunities USN Installations USMC Installations *Project size are estimates that are subject to change. DON RE Online CY14 90 MW NS Newport 13 MW JBAB 6 MW Model 3 Opportunities ESPC Opportunities GITMO 10 MW Diego Garcia 10 MW

Assistant Secretary of the Navy (Energy, Installations & Environment) New Facilities Will Create Local Economic Activity In pursuit of the 1 GW goal: The DON has developed powerful partnerships with local utilities and power providers The development of new construction projects will create significant economic activity in the local community 12

Assistant Secretary of the Navy (Energy, Installations & Environment) Increasing DON’s Energy Security with RE Deploying new renewable energy generation will increase the DON’s energy security posture: Long-term contracts for RE at a set price provides cost-stability Power diversification to increase the availability of local energy sources Locating facilities on-base to provide physical security Building partnership with local communities to provide services in times of disaster or need –Partnership between Naval Submarine Base New London and town of Groton 13 While assisting Japan in the aftermath of the 2011 earthquake and tsunami, power was suddenly lost at Marine Corps Camp H.M. Smith on Oahu – a critical installation at headquarters to U.S. Pacific Command, Special Operations Command Pacific and Marine Forces Pacific. A backup generator onsite failed to run, resulting in a power outage in the middle of a critical operation. Photo courtesy of US Marine Corps.

Assistant Secretary of the Navy (Energy, Installations & Environment) Leveraging RE Capacity for Microgrid Development and Deployment 14 Additional/updated infrastructure is required to create access to on-base renewable energy generation OSD energy security work group is in process of defining holistic approach for DOD microgrid capability; NAVFAC HQ is in process of developing written requirements for DON REPO is providing recommendations for eventual integration of on-base renewables into microgrid capability to enhance energy security

Assistant Secretary of the Navy (Energy, Installations & Environment) Market Timing These are the last days to build projects to capture the 30% ITC California’s RPS continues to accelerate The “waiting game” is over – module prices have flattened out Project debt has never been cheaper 16

Assistant Secretary of the Navy (Energy, Installations & Environment) Technical: Monica DeAngelo (202) Real Estate: John Baxter (202) Acquisition: Jermaine Hector (202) Environmental: J.T. Hesse (202) Questions?