2. Association of Defense Communities Winter Forum 2011 San Antonio, TX Navy EUL Program Larry Chernikoff EUL Program Manager

3. EUL Basics “EUL’s…leverage the value of underutilized assets…to support overarching footprint reductions; to satisfy Navy mission requirements that might otherwise go unmet; and to support Navy’s energy goals…” (CNIC EUL Instruction 11011.1) EUL (10 USC § 2667) can be used to support and improve Navy shore infrastructure in support of the fleet, the sailors, and their families. Consideration can be cash or “in-kind” –provide maintenance support for existing Navy facilities (ex: GAPS (Pt. Hueneme) EUL, Pt. Loma EUL, NB San Diego EUL) –provide an additional revenue stream (ex: Mole Pier EUL Key West) –provide facilities for Navy use (ex: Moanalua EUL, Pearl Harbor) Eligible properties are “non-excess” under-utilized assets (land, facilities, equipment, and natural infrastructure); defined as those that are not anticipated to be needed for the duration of the lease, but which Navy may need at a future date or needs to retain ownership of for a mission-related reason (including encroachment prevention)

4. Current EUL Process Perform Phase I Market/ Feasibility Study Develop Solicitation Evaluate Proposals Develop Business & Leasing Plan Finalize & Close With Developer Identify Available Non-Excess Assets Phase II Phase I Navy uses Two-Phase EUL implementation process.

5. Current Navy Program Objectives –Leverage the Value of Navy under-utilized property –Increase partnership opportunities –Increase alternative energy sources –Consolidations…reduced Navy footprint –Provide Quality of Life or other base requirements Current Approach –CNIC EUL Instruction 11011.1 –Two-Phase project development –Central HQ program management, Execution in field Currently over $8M(+/-) annually in cash and services in kind, plus 55,000 SF office bldg

6. EUL Program Management Commander, Naval Installations Command (CNIC): –Overall requirements responsibility –Policy and guidance –Phase II concurrence –Funding support (phase I support, phase II funding) NAVFAC HQ (Asset Management) –Program Management –Execution Oversight –Funding (pilot projects, phase I studies) –Training development/implementation Region (CNIC)/Facilities Engineering Command (NAVFAC) –Execution by Asset Management Real Estate

7. FY 2011 Phase II Awards Phase II for FY11 NAVFAC Compound, HI: 18.5 acre site NSF Dahlgren, VA: 20-30 acres NAVSTA PH, HI: West Loch, 1,100 acres NAVSTA PH, HI: Waipio, 1,200 acres Phase I for FY11 Navy’s current plan is to conduct about 10 Phase I studies at various locations

8. NAVFAC Compound, Pearl Harbor 18.5 Acres Use – Industrial/ Warehouse

9. NSF Dahlgren, VA 20-30 acre site Waste to Energy Project 50MW

10. NB Pearl Harbor, West Loch 1,100 acres (259 acres available) Encumbered by ESQD arc Use: Renewable Energy (5 MW project) Photovoltaic

11. NB Pearl Harbor, Waipio Peninsula 1,200 acres (365 acres available) Encumbered by ESQD arc Use: Renewable Energy (5 MW Project) Photovoltaic

12. Current EUL Phase II Projects  In Progress OLF Saufley, Pensacola, FL (Office Site)* SUBASE New London, CT (Utility Site)* Large Cavitation Channel, Memphis, TN (Industrial Site) SUBASE New London, CT (Restaurant Site)* SDA Norfolk, VA (Warehouse Site) NS Pearl Harbor, HI (Bio-Mass Energy Project) MCBH, Hawaii (Energy Project) NSF Indian Head (Energy Plant and Data Center Site) NAS Patuxent River (Office Site) NRC Solomons (Lodging and Recreation Site) JEB Little Creek-Fort Story (Waste to Energy Project)

13. Navy EUL Program EUL Web-Site www.navyeul.com Public site to find information on industry forums and planned EUL projects CNIC Program Manager: Robert Meehan (202) 433-4969 NAVFAC Program Manager: Larry Chernikoff (202) 685- 9186