1. Fleet Energy Training Forum Vision, Strategy and Guidance Mr. Joseph W
Fleet Energy Training Forum Vision, Strategy and Guidance Mr. Joseph W. Murphy, SES U.S. Fleet Forces Command
SLIDE 1: Title Slide
Welcome – thanks for taking time out of your hectic schedules, etc.
CNO’s wholeness concept / three tenets: Warfighting First, Operate Forward, and Be Ready – hope they’re familiar to all
Energy efficiency supports the CNO’s tenets and enhances combat capability
The point of this Forum is to increase Fleet awareness of the pressing requirement to reduce energy consumption
As you’ve read, times are tight and we can’t afford to waste energy – no room in our budget to pay for ‘extras’
We can’t afford to make ourselves operationally vulnerable because of excessive energy consumption
A smart energy mindset is critical for giving our Sailors and Marines that extra edge
In short, there are plenty of reasons for us to be better energy stewards
06 November 2014

2. Energy Readiness Kill Chain
MEANS
Personnel
Equipment
Training and Tools
Policy / Lessons Learned
Community / Industry
Installations
Elected Officials
WAYS
ENDS
Assess
ENERGY
POLICY
AND TARGETS
NEW ENERGY
SYSTEMS
AND
TECHNOLOGIES
ENERGY
BEHAVIORAL
/CULTURE
CHANGE
FRTP
MAINT
BASIC
INTEGRATED
DEPLOY &
SUSTAIN
SURFACE
AVIATION
DELIVER
Energy Conservation Guidance, Systems, Training, Ship Visits and Oversight
EMBRACE Energy-Efficient Habits and Practices
EXECUTE
Energy–Conscious Operations
Weapon Systems
SUBMARINES
NECC
SLIDE 2: Energy Readiness Kill Chain (RKC)
USFF developed an all-hands approach to warfighting readiness – one that emphasizes energy conservation
In short, we define readiness as delivering capability to Fleet Commanders
What you see here is an end-to-end, iterative process for ensuring tight coordination across readiness stakeholders
It incorporates ends, ways, and means
Specifically, it identifies the resources that will be used (means), how will they be used (ways), and the desired strategic outcomes (ends)
Defined correctly, the RKC encompasses the entire Navy
Everyone is part of the RKC, and everyone must know and understand their place and role
Look at readiness from an end-to-end perspective – policy making to mission execution
Policy is a part – the direction you receive, the targets you strive for
New systems and advancing technologies – we upgrade our platforms and systems as technologies mature
Examining how we do business – we try to figure out how we can meet our tasking while using less fuel
We apply our entire conservation arsenal across the FRTP as an integral way of doing business, not as an “add-on”
We have to expand our scope…how we view the readiness production – an all-hands evolution – from the policy maker to the deck plate (wholeness)
To accelerate culture change – Started waterfront training with CNSL
We have to broaden our aperture to ensure that policies, resources and products continue to deliver the right capability to the Numbered Fleet Commanders
Look around the room…you’ll see participants from every spectrum of the Navy team
Today, you’ll hear their perspectives
MSC
SECNAV & OPNAV PROVIDE POLICY, TECHNOLOGY, AND RESOURCES
USFF TRAINS, CERTIFIES AND EQUIPS COMBAT-READY FORCES
TYCOMS LEAD THE ENERGY CULTURE CHANGE
SYSCOMS SUPPORT THE TYCOMS
UNITS MAKE THE DIFFERENCE
RKC IS A TEAM SPORT: SAVE ENERGY UNLESS YOU CAN’T!

3. Navy Energy Challenge SLIDE 3: Navy Energy Challenge
Overall Energy Consumption
Overall Energy Sources
~84%
57%
Tactical
Shore
13%
~16%
24%
Energy Consumption
Energy Consumption 1% 3% 3%
Electricity, Natural Gas, Other
Nuclear
Electricity, Natural Gas, Other
Petroleum
Afloat
Petroleum
Ashore
Renewables
Tactical
Shore
Navy Petroleum Consumption in Perspective
SLIDE 3: Navy Energy Challenge
Let’s take a quick look at today’s energy status quo…
DoD doesn’t consume enough petroleum to drive the market, but we are the government’s largest consumer
Tactical operators make up ¾ of DoD’s fuel consumption
Navy is the second-largest fuel user in DoD – smaller than Air Force, but bigger than Army
U.S. Petroleum Consumption
1% Expeditionary
4% Shore
43% Aviation
Department of Defense (93% of Gov’t)
U.S. Gov’t (2% of U.S.)
52% Maritime
Navy (22% of DoD)
Non-Domestic Sources 3

4. How We Got Here Conservation catalysts Conservation driver history
Imported energy comes from unstable regions
Energy price shocks have had impact
Four fold increase over 10 years
Conservation 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)
SLIDE 4: How We Got Here
We’ve relied on foreign oil…the bottom line is that we’ve been consuming more than we produce
The price of petroleum has increased four-fold in the last ten years (select hyperlink)
Neither DoN nor DoD can affect the price of oil through changes in consumption
We’re at the mercy of the market – both in terms of supply and price fluctuations
Last year, the Navy faced over 500 million dollars in additional fuel costs because of price spikes
The Navy must transfer funds from one of two accounts: operations, which means we will fly less, steam less and train less; or procurement
Horizontal drilling and fracking may reduce our reliance on foreign oil, but won’t reduce the operational vulnerabilities associated with unabated fuel consumption at sea

5. ENERGY SECURITY … MORE CAPABLE FORCES … INCREASED RELIABILITY
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
SECNAV TARGETS
CNO TARGETS
SLIDE 6: US Navy Energy Goals
From SECNAV targets, CNO established his goals
Strategy is about improving combat capability and energy security.
USFF provided guidance
USFF approached the goals and targets through a holistic lens and realized that we had to instill a Fleet energy conservation culture
ENERGY SECURITY … MORE CAPABLE FORCES … INCREASED RELIABILITY

6. CUSFF Vision and Strategy
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
FLEET VISION
Use the least amount of energy required thereby:
Increasing operational range / time on station
Reducing logistical vulnerabilities
Conserving resources for other priorities
FLEET STRATEGY
Provide vision and guidance
Provide tools, resources and incentives
Measure progress / provide feedback
Recognize good behavior
Identify and correct over-consumption
SLIDE 7: CUSFF Vision and Strategy
With that in mind, USFF is here with the TYPE COMMANDERS to lead energy culture change
Our goal remains to ensure warfighting readiness
Energy efficiency is a key component
Our path to culture change is:
Centralized program execution at the TYCOM leadership level
Focused training programs centered on energy conservation measures
Monitoring of inport energy consumption at the unit level

7. Reaching the Goal Constrained by: SLIDE 8: Reaching the Goal
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
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
SLIDE 8: Reaching the Goal
The CNO goal (to achieve a 15% reduction) is manageable, but there are financial and cultural constraints
Financial resources are limited – technology will not solve the problem entirely
Projection of current behavior and technology investment demonstrate that we still have a 7% gap
Have to close that gap through culture change
Collective, cognizant effort required by all, and at all levels
A Green Fleet will institute compulsory procedures that will yield significant savings
No longer “Save energy when you can;” now “Save energy unless you can’t”

8. Establishing the New Normal… “Save energy unless you can’t”
Commander’s Guidance
Foster energy conservation through Culture Change
Equip TYCOMs for success
Culture of
Energy Efficiency
Accountability E
Ownership
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
Process
SLIDE 9: Establishing the New Normal – Commander’s Guidance
We're putting in place systems and processes that will allow us to meet SECNAV goals
As a result, TYCOMs will continue to use metrics, establish baselines, identify best practices, and take corrective action
We're committed to achieving and sustaining reductions in energy consumption through culture change
Providing tools, technologies, and incentives that will enable and encourage our crews to ratchet up their conservation efforts
In SECNAV's words, we're making energy stewardship the "new normal"
Recognize the good; correct the bad
The New Normal
“Save energy unless you can’t”

9. SLIDE 10: USFF LOGO
A smart energy mindset is critical for giving our Sailors and Marines that extra edge. By changing the way we think about and use energy, we will continue to be the best
That concludes the Fleet presentation
Stay tuned, TYCOMS are next
Make the most of this Forum. Your program contains a weblink where you may access the Forum briefs. An option to provide input/feedback will also be available
After lunch – breakout training
Opportunity to voice concerns, ideas and discuss the future – whether it involves technologies or better, smarter operational practices
SYSCOMS are here and will pair up with respective TYCOM to facilitate small group sessions

10. Historical Fuel Rates, FY04-FY13 Combined USFF-CPF
FUEL PRICE ($/BBL)
FLEET FUEL BILL ($M)
FLEET FUEL CONSUMPTION (x100K BBLs)
FLEET FUEL BILL ($M)
FLEET FUEL CONSUMPTION (x100K BBLs)
FUEL PRICE ($/BBL)

11. Why Conservation Matters
“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
Ship Utilities
Flight Hours
Underway Days
2003
2014
2003
2014
2003
2014
Culture
Change
SLIDE 5: Why Conservation Matters
Graphs indicate a direct correlation – as utility budget goes down, so do flight hours and underway days (direct impact on readiness)
This impact on readiness is why being more energy-efficient is so important
It’s why SECNAV established Energy Targets
In short, it does matter
More time fighting the fight, less time worrying about refueling logistics, more lives saved, less reliance on others – the list goes on
Because this is so critical, we have to instill an energy conservation mindset – in all parts of the Fleet, and in all Fleet Sailors

12. Achieving Energy Culture Change Culture of Energy Efficiency
Training & Management Tools
Quantitative Metrics
Analysis and Assessment E
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
Institutionalized,
routine process to:
Develop ship class averages/baselines
Identify over- and under-consumers
Collect lessons and best practices
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”)
2011/2012
Nearing completion
Autumn 2013
2014 & beyond

13. Fuel Prices
$152 in FY14
$34 in FY03
Impact … For every dollar increase in the price of a barrel of oil, the Navy must spend $31 million annually of UNBUDGETED funding