Transcript Developing Renewable Energy Projects on DoD land Angela Maybrier, Booz Allen Hamilton Grand Hyatt/San Antonio TX Wednesday, February 16th 2011 2011 ADC WINTER FORUM |

Developing Renewable Energy Projects on
DoD land
Angela Maybrier, Booz Allen Hamilton
Grand Hyatt/San Antonio TX
Wednesday, February 16th 2011
2011 ADC WINTER FORUM | PAGE 2
Agenda
Overview
EUL Program – Developer’s Perspective
 Site Selection Challenges
 Road Blocks to Success
Energy EUL (E-EUL) Dynamics
 Goals
 Incentives
 Procurement Options
Key Drivers
Recommendations and Take-Aways
Questions & Answers
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Overview
 Developments on DoD land have both upsides
and downsides vs. other land use tools
 Every EUL competes with every other land
and/or energy deal in its market
 Developer and Land Owner have similar
motivations
 Gaining the most value from the land asset
as quickly as possible
 Development deal is not an emotion, it’s a
number – does the project pencil?
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Site Selection and Development
Challenges
 Incomplete NEPA and/or unrealistic timelines
 Limiting development options
 Size – parcels of land too small, non-contiguous or
unusual perimeter
 Location – interior of installation brings security,
mission impact, or marketability into question
 Proximity to necessary infrastructure for type of
development
 Lack of key stakeholder buy-in participation
 Commercial viability
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Roadblocks to Success
 Multiple Stakeholder Interests
 Potential opposing interests
 Property Valuation
 Land has no intrinsic value
 Value = Land’s ability to generate cash flow
 Cost should be discounted by how much investment
needs to be made and the risk associated with the
project
 Time is Money – Certainty of Schedule
 Upfront payment and delayed approval limits
developers’ ability to obtain necessary ROI
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Energy EUL (E-EUL) - Dynamics
 Define Goals:
 Revenue or Purchase of Power
 Energy Independence
 Executive Order Requirements
 Incentives
 Tax Credits
 Tax-Exempt Bonds
 Renewable Energy Credits
 Community Involvement
 Local University
 Local Utility
 Local Economic Development Corporation
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Additional Procurement Options
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Key Drivers – EUL and E-EUL
 Clearly Identified Project Champion
 Champion for both the real estate/lease
component as well as potential PPA
negotiations
 No ambiguity about NEPA or other environmental
and permitting transmission issues – bad news
does not get better with time
 Apparent unified support for project through the
Chain of Command
 Market compatibility/desirability of location
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Recommendations
 Complete Finding of Suitability to lease (FOSL), and
supporting documents for necessary NEPA process early
 Pre-educate Deal Team on deal challenges
 Consistency in selection criteria
 Make sure ALL stakeholders know what is proposed
 Establish timelines based on key milestones
 Development concepts synergistic to installation mission
 Local Community Support
 Quality not Quantity of projects
 Energy-related projects
 RFQ for Regional Developer Partner
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Key Take-Aways
 Flexibility – nothing else can make a deal work or fail
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faster
 Deal Teams need to understand market fluctuations
 Realize project marketability can change during
Business and Lease Plan Process and/or Lease and
Management Plan Process
Alignment of financial interests
Realistic financial expectations
Continuous dialog and trust
Timing and schedule
Quality of opportunity and development team
2011 ADC WINTER FORUM | PAGE 11
QUESTIONS + ANSWERS
Contact: Angela G. Maybrier
Booz Allen Hamilton
Tel: 210-932-5604
Mobile: 210-334-1741
Email: [email protected]