Assistant Secretary of the Navy (Energy, Installations & Environment) Department of Navy Energy Program Prepared for: Association of Defense Communities February 15,

Assistant Secretary of the Navy (Energy, Installations & Environment) 2 Federal Mandates Key Legal Compliance Drivers 30% Energy Efficiency Increase (in Mbtu/KSF) by 2015 (Energy Independence and Security Act (EISA) 2007) 25% Renewable Energy Production by 2025 (NDAA’10) Advanced metering and annual energy audits by 2012 (Energy Policy Act 2005 and EISA’07) 20% decrease in NTV fleet fuel by 2015 and Alt Fueling stations (EISA’07) Analysis and plan to address vulnerability of critical assets (NDAA’10) SECNAV Shore Energy Goals 50% Alternative Energy Ashore / 50% Net-Zero Installations by % decrease in Non-Tactical Vehicle fossil fuel consumption by 2015 Improve Energy Security by identifying shore energy supply infrastructure vulnerabilit ies 2

Assistant Secretary of the Navy (Energy, Installations & Environment) Navy Shore Energy Strategy 3 Increasing Energy Efficiency And Transforming Behavior Will Make Alternative Energy Goals More Attainable. Increasing Energy Efficiency And Transforming Behavior Will Make Alternative Energy Goals More Attainable. Governance Leverage Technology Embrace Sensible Partnering Transform Culture and Behavior Watch, Partner, Lead Framework to Assess New Technologies All Echelons Look Externally for Win/Win Opportunities Enabled by Technology Individual, Command and Functional Levels Enabled by Technology Individual, Command and Functional Levels Strategic Communication Tactical Comms for Stakeholder Groups Overarching Themes Tactical Comms for Stakeholder Groups Overarching Themes Codified in E Coordinates subordinate/supporti ng plans and guidance Codified in E Coordinates subordinate/supporti ng plans and guidance Energy Security and Legal Compliance Efficiency First Navy Culture & Behavior Renewable Energy & Sustainability 30% Energy Efficiency Increase by 2015 (EISA’07) 25% Renewable Energy Production by 2025 (NDAA’10) Advanced Metering and Annual Audits (EPAct’05, EISA’07) Critical Assets Plan (NDAA’10) Actual and Planned Strategy Impact Navy Energy Consumption (TBTU/YR) % Consumption Reduction Projection Current & Planned Renewable Energy Production Reduce Consumption to Simultaneously Achieve Mandates 50 NDAA’10 25% Renewable Energy Mandate EISA’07 30% Efficiency Mandate PlannedActual

Assistant Secretary of the Navy (Energy, Installations & Environment) Energy Efficiency First Navy Culture & Behavior Increased transparency at Individual, Command, and Function Levels – Resident Energy Conservation Program Mock billing - 7.6% reduction over four months Technology Enabled – 13,000 Advanced Meters (AMI) in place by end of FY11 – NDW SmartGrid Pilot: Secure integration of AMI w/ Utility and Facility management systems – Tailored Installation Goals for 50% reduction as a Navy-Wide Goal Link to Operations – Identify even greater opportunities for energy and cost savings beyond facility upgrades New Construction/ Major Renovations LEED Silver or equiv. – Energy/ water efficiency – Recyclable Materials – CO 2 Emissions Reduction Renewable & Sustainability 4 Strategy Details and Successes Recapitalize Existing Infrastructure with more energy efficient systems – Energy Return on Investment – Decision Model for Utility and Facility Upgrades Annual Energy Audits – Building level assessments of opportunities – 25% of Navy Covered Facilities/ year – Added Base Renewable Energy analysis Energy Security – Energy Security Audit Program Integrated Technology Strategy – Watch Industry-led tech and invest when/where viable and mission allows Solar Energy (Ex: Ford Island PV) Wind Energy (Ex: SNI, Newport) – Partner at all echelons to develop needed technology w/ key stakeholders Smart Grid – Lead development of mission critical and game changing technologies Tidal and Ocean Energy RDT&E Innovative Geothermal

Assistant Secretary of the Navy (Energy, Installations & Environment) 5 Advanced Metering Solar Wind Waste to Energy 13MW China Lake MCB Camp Lejeune (up to 5 MW) MCB Camp Pendleton (2.8 MW) Solar MAC SW, Hawaii (96 MW) 4 MW in Guam 22 anemometer studies underway Alternative Energy Ashore and Net Zero Installations Monterey Bay Rooftop Solar MCLB Barstow Total Installed: 5.7+ MW Total Planned: 100 MW Total Installed: 6+ MW Total Planned: 4 MW Planning NAVFAC SW is exploring European and Asian best practices for ASN recommendations Spring 2011 – UCLA- NAVFAC SW Forum to discuss state of technology, partnership MCLB Albany May 2010 DON has awarded 7,679 out of 14,211 electric meters in FY09 and FY10 DON pursuing 95% tracking of all electricity 5

Assistant Secretary of the Navy (Energy, Installations & Environment) Coso Facilities – China Lake, CA –Operational since 1987 –270MW Max net output –Enough power to supply electricity to 180,000 homes Awarded NAS Fallon NV –Plant Sized at 30 MW Exploring NAF El Centro (CA), MCAGCC Twenty-Nine Palms (CA), MCAS Yuma (AZ), NAS Fallon (NV) NAVY I Power Plant Drilling Rig Navy Geothermal Power 6 Department of Interior Working with the Bureau of Land Management in exploring additional well sites Geothermal Energy 6

Assistant Secretary of the Navy (Energy, Installations & Environment) 7 Wave Buoy, HI Tidal Turbine, Puget Soun d OTEC, Hi Ocean Power pilots to demonstrate ocean renewable energy OTEC – developing designs and critical components Wave Buoy – 3 rd generation buoy tied to grid Tidal turbine – undergoing environmental review prior to deployment Ocean Power

Assistant Secretary of the Navy (Energy, Installations & Environment)  DON’s Energy Code is 16% more stringent than California’s Title 24 – the most stringent state energy code in U.S.  Navy and USMC sustainability  1998/1999 Great Lakes recruit barracks first certified (LEED Version 1.0)  LEED-Silver required since 2006  First military department to require LEED- Silver certification of new construction  25 Buildings currently certified by USGBC LEED rating system  9% of the certified government buildings  300 projects registered with USGBC  2 are hangars (industrial buildings)  2010 – 4 Buildings certified (3 Gold, 1 Silver) 8 NAS Jacksonville – LEED Silver First “Green” Navy Hanger NAB Little Creek, VA– LEED Silver Green/High Performance Buildings

Assistant Secretary of the Navy (Energy, Installations & Environment) The Navy has 25 projects certified with the US Green Building Council for LEED Certified projects include: Child Development Centers Administration Buildings Bachelor’s Quarters Hangars 9 CDC, NAS Oceana, Va Beach, VA - Silver Drill Hall, Great Lakes, IL – Gold BQ, NS Everett, Bremerton, WA - Gold LEED Implementation 9

Assistant Secretary of the Navy (Energy, Installations & Environment) 10 Petroleum Reduction in non-Tactical Vehicles DON will reduce petroleum use in the commercial fleet by 50% by 2015, through the increased use of flex fuel, hybrid electric, and neighborhood electric vehicles. Baseline based on FY2009 Marine Corps: 6.8MM gallons Navy: 9.3MM gallons Navy Initiatives 35% of fleet is alternative fueled capable vehicles 1000 gas vehicles replaced with neighborhood electric vehicles Currently: 30 E85/B20, 12 CNG stations Planned: 2 E85, B20, 2 Electric stations planned Marine Corps Initiatives 24% of fleet is alternative fueled capable vehicles 340 conventional vehicles replaced with neighborhood electric vehicles Currently: 17 E85/B20, 7 CNG, 1 Hydrogen stations Planned: 4 E85 and 1 Hydrogen stations planned 10

Assistant Secretary of the Navy (Energy, Installations & Environment) January Hydrogen Fuel Infrastructure and Vehicles Project AFV/Electric Vehicle Fleet Growth & Infrastructure OVER 600 LOW SPEED ELECTRIC VEHICLES ALREADY IN SERVICE DEMONSTRATES H2 FUEL CELL VEHICLE FUELING, OPERATIONS & MAINTENANCE ADVANCES HYDROGEN FUEL CELL VEHICLE TECHNICAL MATURITY FOR COMMERCIALIZATION AND POTENTIAL MILITARY APPLICATION MAY INCLUDE OTHER HYDROGEN POWERED VEHICLES  BUSES, AIRCRAFT TUGS, FUEL CELL EMERGENCY RESPONSE VEHICLES WITH EXPORTABLE ELECTRIC POWER RECENT/CURRENT INITIATIVES Non-Tactical Vehicles