project funding strategies for resiliency · pdf fileunclassified / fouo 08 nov 2017...

Leadership, Energy, and Execution 1UNCLASSIFIED / FOUO 08 NOV 2017 Mr. Marcus De La Rosa/703-806-6721

Project Funding Strategies for Resiliency

06 November 2017

Ryan Davis, Idaho National LaboratoryJack Porter, Fort HuachucaNatalie Myers, USACE-CERL

Leadership, Energy, and Execution 2UNCLASSIFIED / FOUO 08 NOV 2017 Mr. Marcus De La Rosa/703-806-6721

Learning Objectives

• What makes a good ERCIP project?

• What should I expect during the ERCIP validation process?

• What are the methods Fort Huachuca has used to execute projects?

• When would you submit a project for ITTP, NDCEE or other innovative funding sources?

• What is the process for the ITTP, NDCEE and other innovation funding sources?

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ERCIP Program Overview and A Structured Approach to Development of 1391s

Technical Comments

Observations and Recommendations

Ryan Z. Davis

Idaho National Lab

06 November 2017

http://www.inl.gov/

Energy Resilience and Conservation Investment Program• Program created in 1999 to reduce energy consumption throughout

DOD

• OSD centrally controls ECIP funding on a by-project basis

• Expected to remain at $150M annually through FY 2023

• Subset of MilCon, specifically intended to fund projects that improve energy resilience, save energy, or reduce energy costs

• Projects must fall into one of the four target funding categories:

• ECIP projects should not include SRM, QUTM, O&M, or research projects

Energy Conservation Energy

Resilience/SecurityRenewable

Energy

Energy

Efficiency

Water

Conservation

Percent Allocation 15% 25% 10% 50%

Funding Allocation $22.5M $37.5M $15M $75M

ERCIP Strategic Vision

• Contribute to mission assurance

• Enhance energy resilience

• Implement a documented energy plan (installation, region, department, or component)

• Integrate multiple energy, water, and/or resilience technologies to realize synergistic benefits

• Implement demonstrated testbed technology, or innovative technology

• Reduce energy and water consumed

The “Dilbert” Perspective ...

Beware the dangers of bad data ...

ERCIP Facts vs Fiction

Fiction

• All ERCIP projects must have an SIR • of 1.0 or higher

Facts

There are no SIR requirements for individual projects. However, DODI11.does state that the entire programmust maintain an SIR of 2.0 or above.

There are no PA requirements for ERCIP (max or min). Most projects fall in the range of $500k to $15M

There are several factors that contribute to a project being selected for funding:

– SIR

– Service Priority

– Part of an energy plan

– Test bed technology

– Multiple technologies

– Energy resiliency

• ERCIP projects must have a minimum • PA of $1M.

• ERCIP projects are selected for • funding based solely on SIR.

How to Get Funded – The 1391

• Remember the 1391 is all the information in the validation process that is available to make a decision whether the request is viable or not.

• Be clear and concise!

• Critical Question: Could you use this 1391 to build an RFP?

• What goes into the 1391?

– Costs-Primary Facility, Supporting Facilities (Detailed basis of estimate, no lump sums).

– Description of Proposed Construction- what are you going to construct?

– Requirement- Tell what the drivers are and why the project is needed.

– Current Situation-Tell what you have and how the need is not currently being met.

– Impact If Not Provided-Explain why and how not funding the request will impact future operations.

– Tab B: Schedule- Provide anticipated start, midpoint and completion of construction.

The 1391 has to tell the Story

– Planning and Design- Fill it out!!!!!

– Tab D: Life cycle Costs Analysis- be accurate and don’t inflate the saving or underestimate the costs (SIOH 5.7%, Design 4%, Contingence 5%, normally) Provide documentation to support rebates or salvage value.

– Make sure the Economic life is adequate and inline with the ECIP Guidance.

– Provide documentation for Non-Energy Savings – explain in detail.

– Remember, SIR is a key factor in getting a project selected. Even though there are no SIR requirements, OSD has to maintain a 2.0 SIR for the program.

– Measurement and Validation- tell what the baseline is. Explain how you measure the savings. How you tie in the instruments and what they measure. Explain how you plan to report the usage.

– Tab F: Information Systems: Complete the information systems sections to include all network/cyber security needs, including all RMF requirements.

– Tab J: Provide the Environmental Analysis and have the environmental officer sign it, and provide NEPA documentation.

– Attachments: Provide Attachments to support your claims!!!!!!

ERCIP Project Creation/Submission Process

• Creation of Project:– Installation is responsible for project creation

– Create conceptual design and put into 1391

– Submit to Land Holding Command (LHC)

• Development of the Future Years Defense Program (FYDP)

– LHC submits prioritized list of projects to ERCIP program

– ERCIP program performs initial review of projects and populates 5 years of the FYDP

• Final Validation

– CEHNC leads validation of project documentation (technical,administrative, cost, cybersecurity, information systems) andassists OACSIM to develop competition year program

• Submission to OSD

– Prioritized project list is submitted to OSD to compete for funding

– Projects compete against all DOD services (Army, Navy, Air Force, etc.)

1391 Development Good Practices

Good

Description

of Project

Requirements

Clearly

Specified

“Current Situation” shows

how you currently don’t meet

requirements.

“Impact If Not Provided” tells

how not meeting

requirement(s) will be

detrimental.

TAB D

This is where we specify technical

performance measures, which include the

following:

- Where it is measured (at the device, at

an approved meter, inverter etc.)

- How is it measured (automated, etc.)

- Where it is reported (AEWRS, etc.)

ATTACHMENTS

Should contain the following:

- Signed DD1391

- Cost Estimates

- Baseline energy consumption data, cost

- All analyses necessary to validate

energy savings

- All RECs and incentives

- Any additional relevant data

Any new instrumentation

should be part of the IT

Systems Cost Estimate


Itemized Cost

Estimates


Using “Lump

Sums” or Not

Itemizing a Cost

Estimate


No IT Systems

Cost Estimate

Inadequate

Requirements

Description

Inadequate Description of

performance measures

(i.e., No discussion of

where it is measured or

how it is reported)No explanation

(calculations, project

description, etc.) for unit

costs and savings


Thank You

Questions ??????

Your Hometown in Arizona

Project Funding Strategies for Resiliency- Installation

Jack W. Porter Jr., CEMUnited States Army Garrison- Fort Huachuca, Directorate of Public

WorksNovember 2017


Agenda

My BiographyKnow the RegulationsKnow Your Installation and InfrastructureSingle Points of Failure Potential Mitigation StrategiesQuick Wins and Simple ProjectsLong Term Planning StrategiesConsolidated Plan and The Real Work BeginsTake Away


UNCLASSIFIED


My Biography

Graduated in 2006 with a Bachelor of Science in Electrical Engineering from California State Polytechnic University-Pomona

Civil Service for 10 years totalEnergy Manager for the Air Force Reserve Command for 3.5

years at March Air Reserve Base, CaliforniaEnergy Manager for IMCOM at Fort Irwin, California for 1.5

yearsEnergy Manager for IMCOM at Fort Huachuca, Arizona for 2.5

yearsExtensive Construction, Project and Program Management

Experience


UNCLASSIFIED


Know the Regulations

SECARMY Directive 2017-07 Installation Energy and Water Security Policy sets a requirements to

secure critical missions by providing energy and water for a minimum of 14 days.

Sets a requirement for sustainment of installation missions by assuring access, improving infrastructure conditions and promoting a robust system operations

ISR-MC is a very valuable tool!!!What does this mean for you?

Imperative to know the rules you are playing by Reach out for help if you do not understand The regulation provides justification for work to be accomplished


UNCLASSIFIED


Know Your Installation and Infrastructure

Fort Huachuca, AZ Two services for the installation a 138 kV and a 46 kV One Central Substation 15 Feeder Circuits with 6 primary Water/ Waste Water is pumped and handled on post Multiple Organizations with Five Major Tenants

Before any work can begin on a resiliency plan you have to know what you are working with

Physically drive and put eyes on the infrastructureLearn about the system from the people who knowKnow who the key tenants areHave a good relationship within your own organization


UNCLASSIFIED


Single Points of Failure

Be Mindful of the Security Level This is the first step to developing a planCoordinate with your Plans and Security office Coordinate with your utility providers for their point of viewCoordinate with Tenant organizations for their point of view

with regards to their missionThe goal is to have a non biased comprehensive list of

potential issues and failuresCoordinate back with the Plans and Security Office to make

sure they are tracking the list


UNCLASSIFIED


Potential Mitigation Strategies

After the issues are discovered the list can be reorganized and re grouped into a quick win or long term planning

For most items there is a quick fix with a long term plan to permanently fix the issue

Think outside the box and bring in expertise from within your organization (i.e. Don’t Work in a Bubble)

Communicate the Mitigation Strategies within your organization and to your command

This is the back bone of your resiliency plan


UNCLASSIFIED


Quick Wins and Simple Projects

Quick Wins and Simple Projects are the mitigations that require little to no funding, just your time and attention

These items are used as the ground work to justify your planFort Huachuca

Coordinating with the Logistics Readiness Center (LRC) to fine tune the generator re fueling plan

Switching natural gas purchase to a more steady gas supply at a more cost beneficial rate by contracting with Defense Logistics Agency (DLA)

Coordinate with the Plans and Security Office (DPTMS) within the Garrison to train on energy losses so the installation is prepared.

Identifying auxiliary facilities that would be used in emergency to install quick generator hook ups for mobile assets

Coordinate with the utilities for outage responses and emergency plans they have in place


UNCLASSIFIED


Long Term Planning Strategies

Resiliency is tenuous and not a quick processThe Quick Wins and Simple Projects are mitigations but not

firm solutions. Long Term Planning takes capital and timeFort Huachuca

Completed an Energy Security Assessment in November 2015 Based off results, critical missions were identified and the

infrastructure to support those facilities was identified Developed a Critical Mission Microgrid Plan Generating Asset is being worked through an Energy Savings

Performance Contract, 4 MW Combined Heat and Power Plant Critical Mission Microgrid will be coordinated through the Utilities

Privatization Contractor None of the above is possible without the pre-work in previous slides


UNCLASSIFIED


Consolidated Plan and The Real Work Begins

Consolidate the Long and Short Term plan into a comprehensive list

Be Mindful of the Security Level of the Document!!!Communicate this plan with your command and senior

leadership, receive their buy in on the strategy.Funding for projects is difficult, a consolidated plan detailed

with potential funding strategies and the mitigations that is logical is easier to “sell”

Remember why this plan exists!!! The conintuity of missions and the protection of the individuals on the installation is paramount in an emergency


UNCLASSIFIED


Take Away Information

Communication and Coordination are the keys to success Focus on the short term and quick wins but always be mindful

of the larger plan for resiliencyResiliency Plans and funding for those plans is a long processDiversity of funding and contracting vehicles is absolutely

necessary Energy Savings Performance Contracts (ESPC) Test Bed Projects (ESTCP) ERCIP funding opportunities Utility Energy Savings Performance Contracts (UESC) Utilities Privatization (UP) There are a lot of vehicles!!!

Finally, you as the Energy Manager are the owner of this plan!!! Have enthusiasm and be knowledgeable!!!


UNCLASSIFIED


Questions

Contact Information:Jack Porter, Jr.

[email protected]


UNCLASSIFIED

mailto:[email protected]

Project Funding Strategies for Resiliency

Overview of ITTP, NDCEE,

SERDP, and ESTCP

Army Reserve Mission Resilience and Sustainability Training

6 November 2017, Arizona State University

Natalie Myers

USACE Engineer Research and Development Center

[email protected]

29

Purpose

To provide information on the:

– Installation Technology Transition Program

(ITTP)

– National Defense Center for Energy and

Environment (NDCEE)

– Strategic Environmental Research and

Development Program (SERDP)

– Environmental Security Technology

Certification Program (ESTCP)

30

Management Structure

31

Assistant Chief of

Staff for Installation

Management

Technology Standards

Group

Assistant Secretary of

the Army,

Installations, Energy

and Environment

Army Environmental

Command

Department of

Defense

Department of Energy

Environmental Protection

Agency

ITTP NDCEE SERDP

ESTCP

Areas of Responsibility

• Basic and Applied Research – (SERDP)

• Technology Demonstration and Validation

– (ITTP, NDCEE, ESTCP)

• Implementation and Standards

Development – (TSG, ACSIM, ASA)

32

Project Areas

• ITTP – operations and maintenance

• NDCEE – environmental; safety and

occupational health; and energy

• SERDP/ESTCP – environmental science

& technologies

33

Program Funding

• ITTP– Program historically funded between $2.5-5.0 million annually

– Projects compete annually for funding

– Project execution window 6-9 months

– Executed primarily by the Army civilian workforce

– TSG funds <$200K annually for technology evaluations

• NDCEE – Program historically funded between $4-5 million annually

– Projects compete annually for funding

– Project execution window 2-3 years

– Executed primarily by the federal civilian workforce

34

Program Funding

• SERDP– Projects compete annually for funding ($2 million)

– Project execution window 3-5 years

– Seed projects (<$200K, 1 year execution)

– Executed by the federal civilian workforce, academia, and industry

• ESTCP– Projects compete annually for funding ($500K)

– Project execution window 2-3years

– Executed by the federal civilian workforce, academia, and industry

35

SERDP Process

36

ITTP Timeline

• By end of 1st quarter

– Current year program funded

– Call for pre-proposals for the following year

• February – notification of successful pre-proposals for

the following execution year

• May – full proposals due for the following execution year

• June – Current year IPR and initial project selection for

the next year

• Last quarter of FY – AFSC approves next year’s

program

• Technology evaluations done continually by request

37

Action Items

• Tell program managers what your top

needs are.

• Visit the program websites to learn about

promising technologies.

• Take advantage of technology

evaluations.

38

Program Mgmt Office POCs

• ITTP: Natalie Myers, ERDC-CERL

[email protected]

• NDCEE: Terri Bright, AEC

terri.a.bright.civ.army.mil

• SERDP/ESTCP: Alan Anderson, ERDC-CERL

[email protected]

39

project funding strategies for resiliency · pdf fileunclassified / fouo 08 nov 2017...

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