1. Public Private Partnerships July 28, 2014 Joe Corrigan Barnes & Thornburg

2. Overview  Shrinking military  Tight budgets  Still there are opportunities, if: A requirement A source of funds Favorable scoring An incentive for the Department to partner with the public sector 2

3. 3 Hill View  Defense appropriators are at best agnostic  Supportive of privatized housing  Concerned about control and priorities  Defense authorizers moderately supportive  Increasing oversight on housing projects  Concerned about future BAH rates  Increasingly concerned about the cost of energy deals  BRAC is impacting Members views  Authorized PPP for civil works projects

4. 4 Department of Defense  Housing Projects will continue  Energy Army has large contract capacity  Using combination of real estate authorities and contracting authorities Navy looking to expand number of renewable projects Air Force least active of the Services  Energy Savings Performance Contracts continue  Other opportunities Potential for other programs if scoring is favorable

5. 5 Corps of Engineers Water Resource Development Act  Supports development of non federal hydropower at Corps projects  Includes the Water Infrastructure Finance and Innovation Act of 2013 that authorizes innovative financing for certain civil works and EPA projects. Also authorizes loan guarantees. Corps listening sessions webinar on August 27, 2014  Alternative Financing – Contributions  Alternative financing Title V  Credits  Details will be posted in the Federal Register this week

6. Energy  10 U.S.C. § 2922a Purchase Power Agreement (PPA) Up to 30 years  10 U.S.C. § 2667 Enhanced Use Leases (EUL) 5+ years  10 U.S.C. § 2913 Energy Savings Performance Contracts (ESPC) Up to 25 years  10 U.S.C. § 2913 Utility Energy Service Agreements Up to 10 years 6