ARMY EUL PROGRAM BRIEFING

Financing Solar Energy

Conference

Alexandria, VA

May 21, 2009

Leadership Supports Renewable Energy

"By making greater use of alternative and renewable energy, Army initiatives will bring energy savings and security to the Army, reducing the risk of power disruption." -Pete Geren Secretary of the Army

“…we will invest $15 billion a year to develop technologies like wind power and solar power; advanced biofuels….”

-President Obama 2/24/09

“By investing in groundbreaking research, making homes and businesses more energy efficient and deploying solar, wind, biomass and other clean energy, this budget will help ensure that America once again leads the world in confronting our global economic, energy and climate challenges."

-Steven Chu, Secretary of Energy

Army Energy Consumption and Cost

Trill

ion

Btu

$ B

illio

n

Consumption & DESC Purchases Cost

FY 2007 – 2008 Cost Increase = 40%

FY 2007 – 2008 Trillion Btu Increase = 8%

4.1

2.9

190176

Army Energy Consumption

4

Combat Vehicles (3%)

Combat Aircraft (16%)

Tactical Vehicles (5%)

Generators (3%)

Non-Tactical Vehicles (6%)

Facilities (67%)

Combat Vehicles (10%)

Combat Aircraft (19%)

Tactical Vehicles (11%)

Generators (22%)

Non-Tactical Vehicles (3%)

Facilities (37%)

Peacetime Contingency Operations

Defense Science Board and GAO Findings

February 2008 Report of the Defense Science Board Task ForceOn DoD Energy Strategy - “More Fight – Less Fuel”

Army Senior Energy Council

Co-Chairs –Vice Chief of Staff of the ArmyAsst Sec of the Army (Installations and Environment)

Executive Secretary / Senior Energy Executive –Dep Asst Sec of the Army (Energy and Partnerships), DASA(E&P)

Members –Over 25 major Army organizations, including HQ staff

Chair – DASA(E&P)

Members –DASA (ESOH) and other SEC principal offices

Secretary of the ArmyChief of Staff of the Army

Senior Energy Council

ASA / 3- and 4-star equivalents

SEC Advisory Board

DASA / 2-star equivalents

SEC Working Groups

O-6 level

Offices of Primary ResponsibilitySEC provides enterprise leadership, strategy and accountability for energy security

Members –Reflects all SEC organizations

Coordinates with offices across the Army to implement the Army energy security strategy

Renewable Energy - Solar

Army Installations With Renewable Energy (Solar) Potential - NotionalArmy Installations With Renewable Energy (Solar) Potential - Notional

What is Enhanced Use Lease?

• Authority under Title 10 USC 2667 for Military Departments to lease land and/or facilities for no less than the fair market value of the real property leased

• EUL gives the Army the ability to leverage available non-excess property for in cash or in-kind consideration that can be used towards improvements in infrastructure, facilities, and quality of life on our installations

• Off-set declining Operation & Maintenance budgets• Avoid cost of maintaining or razing old building• Free-up space for increased or new missions• Bring tenants who are synergistic with missions of

installations• Increases the real value of our property over the

course of the development/lease

EUL is not…• Sale of Garrison land• Public-private partnership; all

risk is on selected developer• Meant as a build-to-suit for

federal tenants or as a replacement for MILCON

EUL Roadmap

Identify Non-Excess

Assets

Perform Economic/

Market AnalysisDevelop &

MarketApplication

EvaluateProposals

DevelopBusiness &

Leasing Plan

Finalize & CloseWith Developer

Fort Irwin National Training Center Mojave Desert, CA

•Commercial Grade Photovoltaic Solar Power•Leveraging 300+ Days of Sunshine per Year •Contribute to ARMY 25% Renewable by 2025 •Contribute to California’s 33% Renewable by 2017 •EUL generates In kind service value to garrison •Heightened security through self generated power

Fort Irwin UNIVERSEFort Irwin UNIVERSE

Fort Irwin Population:Active Duty 4,466Rotational Unit 4,910Reserve/ANG 243Civilians 5,646Family Members 7,461Daily Population 22,726

Housing:Family Housing 2,255Construction 182GEO Officer/NCO 121Barracks 1,670

Distance to:Barstow 36 milesVV/AV 75 milesHesperia 82 milesLos Angeles 152 milesLas Vegas 180 miles

Population:Barstow 23,628Victorville 91,624Hesperia 83,351

Fort Irwin Population:Active Duty 4,466Rotational Unit 4,910Reserve/ANG 243Civilians 5,646Family Members 7,461Daily Population 22,726

Housing:Family Housing 2,255Construction 182GEO Officer/NCO 121Barracks 1,670

Distance to:Barstow 36 milesVV/AV 75 milesHesperia 82 milesLos Angeles 152 milesLas Vegas 180 miles

Population:Barstow 23,628Victorville 91,624Hesperia 83,351

NTC &Fort Irwin

Twenty-NinePalms

Edwards AFB

China Lake

Five Sites Offered for Lease

• Goldstone Sites (3)

• Main Gate Site

• Red Pass Lake Site

Red Pass Lake Site – Site Characteristics

• Well water adjacent to site - Flow approx. 4,500 g.p.d.

• 2,000 ac. (+/-) and level topography

• Adjacent to LADWP 500kV and 287kV transmission lines

Red Pass Lake Site Map

Red Pass Lake Site

Main Gate SiteFort Irwin

Cantonment Area

Main Gate Site

-800 acres (+/-) of usable topography

-Treated waste water available from Garrison for steam generation

-Adjacent to substation and SCE transmission

NASA Goldstone Deep Space Communications Complex

• Goldstone is operated by ITT Industries,Systems Division under contract to NASA/JPLNational Aeronautics and Space AdministrationJet Propulsion LaboratoryCalifornia Institute of Technology

Project Milestones• Dec 15, 2008 - RFQ base Notice of Opportunity

to Lease (NOL) released • Mar 4, 2009 - EUL Industry Day at Fort Irwin

» 250 ATTENDEES• Apr 20, 2009 - Proposal Offer Due Date• MULTIPLE RESPONSES RECEIVED• June 2009 - Developer Selection - Due

Diligence begins / environmental study start• Mar 2010 - Design approval• June 2012 - Complete Environmental

Assessments, CA Permits • Sept 2012 - Ground Breaking for plants • Sept 2014 - First Phase Plants Completed

California and Federal Stakeholders

Sierra army depot, herlong, ca

• Renewable Solar Energy EUL proposed• High kV transmission on site• Rail and 10,000’ runway• 50 miles north of Reno, NV• One by seven square mile site• Advertisement in Summer 2008

How to stay

plugged inHTTP://EUL.ARMY.MIL

Bob Penn410-962-3000

Bob.Penn@usace.army.mil

Tom Kretzschmar410-962-5602

Thomas.Kretzschmar@us.army.mil

ANY QUESTIONS?