NAVFAC SOUTHWESTRENEWABLE ENERGY PROGRAM

Joint SAME/SMPS-OC BreakfastAugust 26, 2010

Nathan Butler, PENAVFAC Southwest

Renewable Program OfficeNathan.Butler@navy.mil

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NAS North IslandNB San DiegoNB Point Loma NAF El Centro

NPS Monterey

MCLB BarstowNWS Seal Beach

NB Ventura County

NAS Lemoore

ROICC San Francisco BayNAS Fallon

NAWS China Lake

Navy Installation

Marine Corps Installation

Air Force Base

NAVFAC SW Area of Responsibility

Travis AFB

MCB/MCAS Camp PendletonMCAS Miramar

MCAGCC Twentynine Palms

MCAS Yuma

MWTC Bridgeport

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FY09 Navy Region Southwest Consumption

InstallationWater Energy Cost

(KGal)Capacity (MW B/P)

Electric(MWH)

Natural Gas (MBTU)

Consumed (MBTU) ($)

NB San Diego 615,000 25 / 60 328,500 54,000 1,175,300 $ 37,100,000NB Coronado 575,000 19 / 45 247,000 116,000 959,600 $ 28,200,000NB Point Loma 210,000 9 / 21 135,500 48,500 510,900 $ 15,600,000NB Ventura County 618,000 7 / 15 96,000 177,000 504,800 $ 14,100,000

NAS Lemoore 592,000 7 / 19 91,000 189,000 500,200 $ 8,600,000NAWS China Lake 631,000 7 / 20 96,000 106,000 434,500 $ 12,000,000

NAS Fallon 102,000 3 / 7 37,500 131,000 259,300 $ 5,600,000NSA Monterey 32,000 2 / 4.5 26,900 81,700 256,000 $ 3,600,000NAF El Centro 139,000 2 / 4 17,700 12,400 73,000 $ 2,300,000

NWS Seal Beach 98,500 2 / 4.5 26,350 33,500 123,500 $ 4,000,000Total Consumption 3,611,100 83 / 198 1,103,200 950,000 4,714,300 $ 131,170,000

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Department of Defense Energy Goals

•Produce or Procure 25% Renewable Energy by 2025–National Defense Authorization Act (NDAA 2007/2010 )

•Reduce Energy Intensity 30% by 2015

–Energy Independence and Security Act (EISA 2007)

•Consume 7.5% Renewable Energy by 2013

–Energy Policy Act (EPACT 2005)

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Secretary of the Navy Energy Goals

Sail the “Great Green Fleet” DON will demonstrate a Green Strike Group in local operations by 2012 and sail it by 2016

Reduce Non-Tactical Petroleum Use By 2015, DON will reduce petroleum use in the commercial fleet by 50%

Energy Efficient Acquisition Evaluation of energy factors will be mandatory when awarding contracts for systems and buildings

Increase Alternative Energy Use DON-Wide

By 2020, 50% of total DON energy consumption will come from alternative sources

Increase Alternative Energy AshoreBy 2020, at least 50% of shore-based energy requirements

will come from alternative sources; 50% of DON installations will be net-zero

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How Do We Eat this Elephant?

•Focus on Efficiency – Lower the Denominator–Use audits to develop projects–Appropriated funds: the $$$$$$$$ is coming–Use other people’s money: financed projects

•Renewable Energy –Right Price, Right Place, Right Time–Use other people’s money: PPAs, EUL, EJV

•Revise Strategy – Not All Bases are the Same–Focus efforts and investment on areas with high opportunity and high-return

04/22/2023

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Contract Vehicles: Efficiency, Small Renewable Projects

•Conventional Construction Contracts–8(a), IDIQ, MAC, RFP, IFB, etc.

•Third-Party Financed Projects–Utility Energy Services Contract (UESC)–Energy Savings Performance Contracts (ESPC)

–Paid off by savings generated by the projects

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Contract Vehicles:Large-Scale Renewable Projects

•Use “other people’s money”•Leverage private money and expertise•Long-term contracts: 10-50 years

•Power Purchase Agreement (PPA)–Government buys all power

•Energy Joint Venture (EJV) –Business Deal; Developer sells power, Government gets royalties and/or power

•Enhanced Use Lease (EUL)–Real Estate Deal; Developer sells power, Government gets ‘in-kind consideration’

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Large-Scale Renewable Projects

Current Initiatives• Solar PPA Multiple

Award Contract• Miramar Landfill Gas

PPA• Large-Scale EJV/EUL

Projects– MCAS Yuma– NAS Lemoore

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•Efficiency, Small Renewable–Standard Contracts (MAC, 8(a), etc.)

–Partner with ESCOs, Utilities

•Large-Scale Renewable–Requests for Information–Requests for Proposals–Industry Forums–Interested Parties List

How to Get Involved

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QUESTIONS?

Nathan Butler, PENAVFAC Southwest

Renewable Program OfficeNathan.Butler@navy.mil