1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e AF Facility Energy Perspective 1 David J. Bek, P.E. Energy Director AFCEC/CN

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Energy Program Focus Shift to Asset Mgt, Risk based funding decisions Build focused approach on energy, resiliency & mission Continue growth in use of 3 rd Party Funding Projects ESPC / UESC RE – PPA and Energy EUL UP Continue with ECIP and O&M funded projects Look for P4 opportunities 2 ESPC – Energy Savings Performance Contract; UESC – Utility Energy Service Contracts; RE PPA – Renewable Energy Power Purchase Agreements; Utility Privatization; EUL – Enhanced Use Lease; O&M – Operations and Maintenance; ECIP – Energy Conservation Investment Program

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Efficiencies:  MILCON Optimization  Strategic Sourcing  Sustainable Infrastructure Assessments Reduce Costs:  Partnerships  Third-Party Financing  Enhanced Use Leases  Overseas Consolidation  Consolidation/Demo  Energy Conservation Manage Risks:  Encroachment  Centralized Asset Mgt  AF COLS  Condition-based Mx Installation Investment Strategy Execution Air Base of the Future – All Encompassing 3 Resiliency:  Additional Generation  Control/Switching  Microgrid  Redundancy  Reliable Systems

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e ESPC / UESC Increased emphasis as budget constraints tighten AF Goal for the next President’s Performance contract competition is $355M over CY14-16 Increased emphasis on expediting execution ETL 13-13 published Dec 13 AFCEC ramping up support capabilities PM, Contracting Specialist, Engineers, Legal Support 4

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Renewable Energy FY14: 10 Projects providing over 100MW Includes PV, WTE, and BM FY15: 14 Projects providing over 136MW Includes Geothermal, Wind, Landfill Gas, PV, & WTE 5 Cape Cod Wind Davis-Monthan SolarJBER Landfill Gas

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Utilities Privatization Includes Electric, Gas, Sewer, and Water Utilities FY14: 12 Active Duty (AD) Bases with 21 Systems 12 Air National Guard Bases with 16 Systems FY15: 8 AD Bases with 16 Systems 6 Minot AFB Sewer/Waste Water awarded Aug. 2013

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Energy Conservation Investment Program (ECIP) FY13 projects are awarded or in solicitation 6 Projects worth $32M FY14 projects have design funds Anticipate construction funding in Spring 2014 12 Projects worth $35M FY15 projects submitted to OSD, awaiting selection 22 Projects worth $53M FY16 may include those FY15 projects not selected 7

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e O&M Funded Energy Projects FY14 projects Anticipate $75M with healthy end of year likely FY15+ Risk-based scoring model Savings Wedge 8

9. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Contact Information Faciltiy Energy Program David Bek – david.bek.1@us.af.mil; Energy Directordavid.bek.1@us.af.mil Dan Soto – daniel.soto.1@us.af.mil; Chief, Measurements and Analysis Divisiondaniel.soto.1@us.af.mil Ken Gleason – kenneth.gleason@us.af.mil; Chief, Program Development Divisionkenneth.gleason@us.af.mil Lt Colonel Paul Zackrison – paul.zackrison.1@us.af.mil; Chief, Rates and Renewables Divisionpaul.zackrison.1@us.af.mil Rick Weston – richard.weston.1@us.af.mil; Chief, Utility Privatization Program Management Officerichard.weston.1@us.af.mil 9

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Questions? 10

11. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 50% Cumulative Consumption 50% Cumulative Cost Cost and Consumption Analysis 11 Cost Consumption 1 2 3 5 4 7 9 6 8 10 11 12 13 14 15 16 17 18 19 20 21 22 Installations CONUS OCONUS