0 This document is confidential and is intended solely for the use and information of the client to whom it is addressed. Public-Public and Public-Private (P4) Partnerships Energy as a Focus for Defense Communities Wes Weston Booz Allen Hamilton Aug 21, 2015

1 This document is confidential and is intended solely for the use and information of the client to whom it is addressed. Encroachment/Compatible Land Use Pavements Roads, snow removal Watershed management and compliance Water supply Waste water treatment facilities Solid waste management and recycling Energy Equipment sharing Expanded community bus system Shared golf course/athletic field operations Shared community educational centers Libraries Cooperative police and/or fire training support Emergency response via Mutual Aid Agreements Shared use firing ranges Cooperative medical training Medical and mental health care Child Protective Services Education/universities Workforce development/job skills training Economic development 1 There are many partnership opportunity areas for installations and communities and energy opportunities are growing

2 This document is confidential and is intended solely for the use and information of the client to whom it is addressed. Military Installations and their local communities share common energy and water concerns Legal Security Cost Legal Drivers: Executive Orders Federal Law & Mandates State Law/Local Ordinances Cost Drivers:  Fluctuating Energy Prices  Increasing Demand  Single Provider Availability Drivers:  Energy Supply and Distribution (reliability & resiliency)  Aged Utility Infrastructure  Physical and Cyber Vulnerability

3 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.  Public-Public opportunities are enabled by shared services legislation in Section 331 of FY13 NDAA which allows for expanded partnerships through Intergovernmental Support Agreements. This legislation is another tool in the tool box for military/community partnering and is a driver behind Army, Air Force and Navy/USMC partnering initiatives  Pubic-Private opportunities are enabled by legal authorities that allow for long-term partnerships using power purchase agreements and enhanced use lease arrangements 3 Expanded Partnerships can be Public-Public in nature, Public- Private, or a combination

4 This document is confidential and is intended solely for the use and information of the client to whom it is addressed. The approach for identifying shared concerns starts with idea generation and then screening to come up with viable initiatives Vet and Prioritize Due Diligence STAKEHOLDERS & OPPORTUNITIES NGOs Economic Development Authorities Business Local Gov’t State Other Feds OSD HQ Bases Tribes Workforce Education Transportation Health Environmental Land Use Utilities & Energy Emergency Response Recreation Social Services Facilities Commercial Use What’s Possible? What’s Important? Risk Analysis Business Case Analysis Legal & Political Physical Limitations Intangibles Implementation and Ongoing Partnership Efforts Negotiations & Contract Actions Intergovernmental Support Agreement Contract Cooperative Agreement Power Purchase Agreement MOA/MOU CRADA Other

5 This document is confidential and is intended solely for the use and information of the client to whom it is addressed. Examples of energy-related P3 and P4 partnerships within DoD and Fed GOV  Patrick Air Force Base (P3: AF + Public). Florida Power and Light provided a 3MW Generation Plant on base for peak shaving (reduced cost to AF) and energy security  Army Office of Energy Initiatives: (P4: Army + National Labs (NREL, PNNL) + private industry). OEI coordinates/executes large scale (>10MW) renewable energy projects at multiple Army Installations.  Navy Renewable Energy Office using enhanced use lease (EUL) in addition to Power Purchase Agreements as third party financing mechanisms  VA Med Center at Johnson City, TN: (P4: VA + State of TN + City) 5.7MW electric generation, 5K Tons chilled water, 700K Gallon thermal energy storage, 100K lbs/hr steam at no capital expense to VA. Project also uses renewable landfill gas to fuel boilers.  VA North Chicago Med Center: (P4: VA + Navy + Private Industry) 12 MW Electric Generation, 2 Heat recovery Generators, 3 package Steam Boilers 250K lbs. steam production for VA and Navy at no capital expense to VA.