Transcript Developing Renewable Energy Projects on DoD Land Mr. Alan D. King Assistant Secretary of the Army for Installations, Energy & Environment 16 February 2011 2011 ADC WINTER.

Developing Renewable
Energy Projects on DoD
Land
Mr. Alan D. King
Assistant Secretary of the Army for Installations,
Energy & Environment
16 February 2011
2011 ADC WINTER FORUM | PAGE 1
Topics
 Military Perspective
 Army Priorities
 Renewable Site Identification
 Bureau of Land Management (BLM) Issues
 Renewable Energy Certificates (RECs)
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Military Perspective
 Building a more secure energy future is essential to the
Army, DoD, and the Nation
 Energy security as a critical mission priority
 Federal Mandates, DoD and Army Policies
 Army cannot achieve energy goals through Appropriations
alone
 Increased reliance on renewable energy-focused 3rd party
financing
 Financing requires long-term agreements
 Army is working to leverage Public/Private Authorities
 Leverage Renewable energy potential for Army and regions
 Essential to assured, affordable solutions to mission-critical energy
requirements at Army installations
Renewable Energy Project Potential
The Army prioritizes CONUS installations for Renewable Energy
Development based on:
Army Installations 158
 Resource potential
Land Acreage
13,506,291
 State regulations
Buildings
1+ Bsf
 Federal and State incentives
 Payback periods and levelized cost of electricity
 Regulatory considerations
Through existing authorities the Army will leverage private
investment to install renewable energy
 ESPC
 EUL
The Army currently receives
 PPA
2% of its electricity from
 UESC
renewable sources*
*Does not include renewable thermal energy
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Army Energy & Sustainability Priorities
 Net Zero Installations - The Army goal is to manage our
resources in a sustainable manner.
 Our goal is to move toward energy security and sustainability with
Net Zero Energy, Waste, and Water.
 Leveraging Public/Private Authorities - The Army must
become a better business partner to increase private
sector investment and increase savings.
 Reduce our Operational Energy in base camps through
increased efficiency, demand management, and
diversifying supply.
 Fuel and water comprise 70-80% of our resupply into the combat
zone and there is 1 casualty for every 24 convoys?
 Deploying solutions on our installations will help increased
efficiency, demand management, and diversified supply to not only
save money, but possibly save lives in theater.
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Renewable Energy Projects
Site Identification Challenges
 Land Availability – withdrawn BLM Land
 Water Availability
 National Environmental Policy Act (NEPA) and
other environmental, safety & health
requirements
 Renewable Energy Certificates (RECs)
 Transmission / distribution lines
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Renewable Energy Projects
Considerations
 Technology

Solar

Wind

Geothermal

Biomass

Other
 Acquisition Strategy

PPA, EUL, ESPC, UP, MILCON / ECIP
 Financing

Appropriated funds

Public-private partnership

Scoring

Renewable Energy Credits
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Power Purchase Agreements
Authority
 Authority for up to 30 year PPAs is found at 10 USC
2922a:
•
§ 2922a. Contracts for energy or fuel for military installations
•
(a) Subject to subsection (b), the Secretary of a military department may enter into
contracts for periods of up to 30 years—
–
–
•
•
(1) under section 2917 of this title [10 USCS § 2917]; and
(2) for the provision and operation of energy production facilities on real property under the Secretary's
jurisdiction or on private property and the purchase of energy produced from such facilities.
(b) A contract may be made under subsection (a) only after the approval of the
proposed contract by the Secretary of Defense.
(c) The costs of contracts under this section for any year may be paid from annual
appropriations for that year.
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Army BLM Partnership
 Goal: Army and BLM achievement of shared energy
goals
 Develop process and agreements to facilitate mission-related
activities
 Build on successful recent history of collaboration:
 BLM Programmatic EIS
 SunZia Distribution Lines
 Established relationships: Installations with State and local
offices; Regional Environmental and Energy Office
 Enhance Army-BLM relationship focused on developing
utility-scale renewable energy projects on withdrawn
land
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BLM - Way Ahead
 Formalize agreement of partnership
 Facilitate local BLM office coordination with installations
 Provide assurance of automatic renewal of withdrawn-land
status, for parcels 5000 acres or less, with renewable energy
project
 Army can support BLM legislative initiatives
 EUL authority
 Authority to share in benefits of projects
 Continue to advance partnership at the DOD/DOI level
 12-13 Jan Interagency Agreement in Warrenton, VA
 Refocused interagency coordination - only for Nevada process
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Renewable Energy Certificates (RECs)
 EO13423 requires that federal agencies use new




renewable energy sources
Renewable power produces renewable attributes
Army is going to use or retire the renewable
attributes; will not buy!
Very complicated process which the Army is still
refining
Army will be a good business partner to increase
private sector investment
2011 ADC WINTER FORUM | PAGE 11
Conclusion
Without ENERGY the Army
stands still, silent and cold…….
2011 ADC WINTER FORUM | PAGE 12