1. Phoenix Convention Center Phoenix, Arizona ANDREA L. KINCAID DLA Energy Integrated Energy TrackIntegration of the Energy Industry

2. Energy Exchange : Federal Sustainability for the Next Decade 2 DLA Energy: Who We Are Primary field activity of the Defense Logistics Agency Mission: –To provide the Department of Defense (DoD) and other government agencies with comprehensive energy solutions in the most effective and efficient manner possible. Serves as a single procurement agent for DoD’s energy needs DLA Energy, Installation Energy –Operational business unit within DLA Energy –Provides acquisition support supporting the facility energy needs of DoD and federal civilian agencies. Includes coal, natural gas, electricity, renewable energy and energy conservation initiatives. –Coordinator and facilitator for DoD’s participation in electricity demand response programs.

3. Energy Exchange : Federal Sustainability for the Next Decade Overall Energy Commodities Support – Managing $2.1B in natural gas, electricity, coal renewable energy and EPSC contracts. Currently serving over 200 customers. Coal – Established in 1963. Currently providing coal to 11 locations. Natural Gas – Established in 1990 after deregulation of natural gas supply. DLA Energy is DoD’s central procurement agency for direct supply natural gas. DoD policy is to competitively acquire direct supply natural gas under the program managed by DLA Energy. Electricity – Established in 1996. DLA Energy is executing the competitive acquisition of retail open access for DoD and Federal Civilian agencies in states that have implemented restructuring. Energy Savings Performance Contracts (ESPC) – Established in 1998 to assist DoD and Federal Civilian agencies with using ESPC contracts to reduce energy demand. – Partnering with DOE; ESPC ID/IQ contracts Electricity Demand Response Program – Established in 1998 to assist customers in enrollment to support grid reliability. Renewable Energy – Established in 2003. Supporting DoD and Federal Civilian agencies in purchasing renewable energy to meet mandated energy surety and security goals. 3 Installation Energy Program Overview

4. Energy Exchange : Federal Sustainability for the Next Decade Expanded support in energy efficiency, demand response and renewable energy efforts to support DoD strategic objectives ~$100M contract portfolio has grown to over $640M with another $2.7B in active acquisitions Providing acquisition support for solar, wind and biomass project efforts supporting Army, Air Force, Navy and federal civilian customers – More than 438 MW issued under competitive RFPs – On-site and off-site requirements – Awarded 46.6 MW of biomass and solar through long-term power purchase agreements Partnered w/ DOE and Energy Service Companies to provide energy efficiency solutions to Army, Air Force and other DoD customers – Executed ESPCs with investment value of ~$120M, with guaranteed cost savings of ~$290M and energy savings of over 9.5 trillion BTUs and 1.3 million in greenhouse gas reductions – 80% of efforts include renewable energy element Supporting customers in electricity demand response enrollment – Over 77 DoD and federal civilian customers and 250,000 KW enrolled netting $3.9M in customer savings in FY14. 4 DLA Energy’s Evolving Mission

5. Energy Exchange : Federal Sustainability for the Next Decade In the past predominantly procured one requirement under a procurement Changes in the energy market and Department directives and objectives shifted our typical way of doing business. Integrating multiple facets of the market to accommodate goals and objectives through creative contracting procedures. 5 Integrated Energy Approaches

6. Energy Exchange : Federal Sustainability for the Next Decade Fort Detrick (Renewable Energy Supply Agreement) – Renewable energy integrated with energy security and future microgrid operability Defense Intelligence Agency (ESPC) – EPSC integrated with solar renewable energy and demand response savings Fort Hood (Renewable Energy Supply Agreement) – Integrated both on-site solar renewable energy, along with off-site wind energy; remaining balance with conventional energy Navy PJM (Renewable Energy Supply Agreement) – Integrated off-site renewable energy supplemented with conventional energy 6 Examples of Integrated Energy Procurements

7. Energy Exchange : Federal Sustainability for the Next Decade Operational/Facility Energy and Supply and Deman – DLA Energy has leveraged acquisition personnel expertise in all areas to form a comprehensive energy team solely responsible for these efforts. Technical support still required and being provided through an executed support contract; utilizing existing relationships with DOE FEMP and Service Program Management teams – Regulatory environment is carefully monitored for compliance. – Communication of proposed efforts to ensure understanding by both customer and industry participants. – Continuous evolution of processes. 7 How We Managed…but there are still challenges

8. Energy Exchange : Federal Sustainability for the Next Decade Progress is being made on integrated energy requirements through continuous industry feedback. While challenging, a test of the market is the true driver for determining whether a concept can become a reality. We have all the tools, we just have to continue to communicate and work together. 8 Summary

9. Energy Exchange : Federal Sustainability for the Next Decade Andrea Kincaid Division Chief and Contracting Officer DLA Energy 8725 John J. Kingman Road, Suite 3827 Fort Belvoir, VA 22060 Phone: 703-767-8669 Email: andrea.kincaid@dla.mil 9 Questions?