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 Headquarters U.S. Air Force Renewable Energy Challenges -an Air Force view 1 Ken Gray Energy Rates and Renewables Branch Chief Air Force Civil Engineer Support Agency 16 Feb 2011

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 THINK GREEN, BUILD GREEN, Air Force Renewable Program In FY10, 6.4 % of all electricity from Renewable sources 33 MW of on base generation, operating currently 26 MW on base generation, under contract and construction currently Over 100 MW in development and discussion Utilizing geothermal, solar, wind, hydropower, landfill gas Major efforts to add Biomass Waste to Energy and Woody Biomass 2

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 THINK GREEN, BUILD GREEN, Legal Hurdles 40 USC 591 –Comply with State Law (use jurisdictional provider) National Environmental Policy Act State Law Renewable Portfolio Standards ( RPS) 3

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 THINK GREEN, BUILD GREEN, Planning Hurdles Mission Impact Reviews Greatest land use value decisions Real estate instrument decisions Reuse concepts for land parcels Transmission location Utility Connection agreements 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 THINK GREEN, BUILD GREEN, Contractual Hurdles FAR Procurements Terms of payments Experience level of staff 5

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 THINK GREEN, BUILD GREEN, Davis Monthan PV Array Case Study Initial effort to build Waste to Energy at DM met resistance and was unsuccessful Reopened discussion with Tucson Electric Power (TEP) on a solar array TEP declined to participate and provide requested renewable power May 08- began acquisition planning Jul 08- issued RFP Jan 09- Cancelled RFP Dec 09 – Environmental Assessment Completed Jan 10 – RFP Reissued Apr 10 – Received proposals Sep 10- Awarded to Sun Edison 6

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 THINK GREEN, BUILD GREEN, Davis Monthan PV Array Case Study 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 THINK GREEN, BUILD GREEN, Davis Monthan PV Array Case Study Sun Edison will Design, construct, own, operate, maintain 14.5 MW PV array Sell power to DM AFB at $0.045/kWH with 1.5% annual esc Sell RECs to Tucson Electric Power to offset DM AFB kWH costs Davis Monthan AFB will Provide land for the array through a land use document Sign a standard utility purchase contract with Sun Edison Average savings of $500K/ year Will provide ~ 35% of base’s annual electricity needs 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 THINK GREEN, BUILD GREEN, Davis Monthan PV Array Case Study Lessons Learned Establish land ownership early REC sale issue had to be considered Air Force internal site approval/mission impact takes time NEPA Must be well coordinated at beginning Typically longest presolicitation requirement Rework and delay for additional Fish and Wildlife Study State law and regulation very critical 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 THINK GREEN, BUILD GREEN, First Air Force RE Industry Day Held 8 Dec in Irving TX Very productive and successful in starting discussion Additional Requests for Information (RFIs) out to gain Industry Inputs and Ideas Review and consideration of Industry Inputs and Ideas Next planned focus meeting at AF Energy Forum in DC, May/June 10