1 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Fleet Energy Training Forum Vision, Strategy and Guidance Mr. Joseph W. Murphy, SES U.S. Fleet Forces Command 06 November 2014

Assess ENDSWAYS ENERGY POLICY AND TARGETS NEW ENERGY SYSTEMS AND TECHNOLOGIES ENERGY BEHAVIORAL /CULTURE CHANGE BASIC INTEGRATED MAINT DEPLOY & SUSTAIN FRTP SURFACE AVIATION SUBMARINES NECC MSC Weapon Systems DELIVER Energy Conservation Guidance, Systems, Training, Ship Visits and Oversight MEANS Personnel Equipment Training and Tools Policy / Lessons Learned Community / Industry Installations Elected Officials RKC IS A TEAM SPORT: SAVE ENERGY UNLESS YOU CAN’T! SECNAV & OPNAV PROVIDE POLICY, TECHNOLOGY, AND RESOURCES USFF TRAINS, CERTIFIES AND EQUIPS COMBAT-READY FORCES TYCOMS LEAD THE ENERGY CULTURE CHANGE EMBRACE Energy- Efficient Habits and Practices EXECUTE Energy–Conscious Operations SYSCOMS SUPPORT THE TYCOMS UNITS MAKE THE DIFFERENCE

3 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Navy (22% of DoD) U.S. Gov’t (2% of U.S.) Department of Defense (93% of Gov’t) 1% Expeditionary 43% Aviation 52% Maritime 4% Shore U.S. Petroleum Consumption Non-Domestic Sources 57% 13% 24% 1% Petroleum Afloat Energy Consumption ~84% Tactical Energy Consumption Shore ~16% 3% TacticalShore Nuclear Electricity, Natural Gas, Other Renewables Petroleum Ashore 3% Navy Energy Challenge Overall Energy SourcesOverall Energy Consumption Navy Petroleum Consumption in Perspective

4 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED How We Got Here C ONSERVATION CATALYSTS – Imported energy comes from unstable regions – Energy price shocks have had impact Four fold increase over 10 years C ONSERVATION DRIVER HISTORY – Operational allowances masked excessive consumption If forces stayed within limits, excess consumption was not apparent – USFF paid the waterfront’s inport utility bill –Fleet utility account took 5% reductions in 2012, 2013 (and beyond)

5 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED US Navy Energy Goals TARGETS GOALS MISSION Aligned with SECNAV and CNO USFF GUIDANCE Culture / Behavioral Change Instill a Fleet energy culture / Provide Training and tools for TYCOMS to lead their Force and achieve energy goals CNO TARGETS SECNAV TARGETS

6 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED CUSFF Vision and Strategy F LEET V ISION –Use the least amount of energy required thereby: Increasing operational range / time on station Reducing logistical vulnerabilities Conserving resources for other priorities F LEET S TRATEGY –Provide vision and guidance –Provide tools, resources and incentives –Measure progress / provide feedback –Recognize good behavior –Identify and correct over-consumption TARGETS GOALS MISSION Aligned with SECNAV and CNO USFF GUIDANCE Culture / Behavioral Change Instill a Fleet energy culture / Provide Training and tools for TYCOMS to lead their Force and achieve energy goals

7 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Reaching the Goal Constrained by: –Financial resources Current budget environment limits how fast technology solutions can be implemented –Culture Balancing energy conservation measures with operational missions and risk management CNO Goal – 15% Reduction Goal by 2020 Gap (~7%) Behavior (~5%) Technology (~3%) Fuel Savings toward CNO 15% Consumption Reduction Goal Baseline Projected FY20 (Fleet Fuel Consumption) 11.5M BBLS How do we bridge the gap? BBLS

8 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Foster energy conservation through Culture Change Equip TYCOMs for success Establishing the New Normal… Commander’s Guidance The New Normal “Save energy unless you can’t” Culture of Energy Efficiency USFF provide enabling training resources SYSCOMs install enabling conservation technology TYCOMS/SYSCOMS establish class goals & standards USFF establish appropriate management oversight TYCOMS measure consumption and assess compliance Ownership at the deckplate guarantees success USFF assesses energy conservation progress Recognize the good; correct the bad

9 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED

10 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Historical Fuel Rates, FY04-FY13 Combined USFF-CPF FLEET FUEL BILL ($M) FLEET FUEL CONSUMPTION (x100K BBLs)FUEL PRICE ($/BBL) FLEET FUEL CONSUMPTION (x100K BBLs) FUEL PRICE ($/BBL)

11 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED “Warfighting First … Operate Forward … Be Ready” – CNO Tenets Navy resources are declining…no relief in sight Efficiency makes sense –More time on task, less time spent refueling –Less shuttling of Fleet Oilers –Less reliance on fuel stocks from unstable regions SECNAV's 2009 Energy Goals changed the playing field –Energy no longer free –Energy vulnerabilities are real –Energy conservation must be integrated throughout the kill chain Underway Days Why Conservation Matters Culture Change Ship Utilities Flight Hours 2014

12 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Training & Management Tools Quantitative Metrics Analysis and Assessment 2011/2012 Nearing completion Autumn 2013 Automated Metering Infrastructure (AMI) installation Accurate, unit-level consumption reporting Utility bills for TYCOMS and units TYCOM Inport Energy Handbooks (Best practices) NAVSEA iEnCon Guide Inport Energy Lesson Plans TYCOM management of utilities EPEC Award (Energy Battle “E”) Culture of Energy Efficiency Enhanced inport energy stewardship via TYCOM ownership, accountability, and unit behavior changes Inspect energy programs to ensure compliance Revised EPEC Award to reflect inport energy consumption Recognize the good; correct the bad 2014 & beyond Institutionalized, routine process to: Develop ship class averages/baselines Identify over- and under-consumers Collect lessons and best practices Achieving Energy Culture Change

13 United States Fleet Forces Ready Fleet … Global Reach UNCLASSIFIED Fuel Prices Impact … For every dollar increase in the price of a barrel of oil, the Navy must spend $31 million annually of UNBUDGETED funding $34 in FY03 $152 in FY14