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Welcome to theArmy Installation Energy Resilience Update
We will begin momentarily…
November 30, 2018
Army Installation Energy Resilience Update
30 November 2018
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• Audio Information for Today’s Webinar
• Army Energy Links
• Webinar Presentation for Download
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Webinar Presenters
Acting DASA (E&S)Mr. J.E. “Jack” Surash,
P.E.
OEI ExecutiveDirector
Mr. Michael McGhee, P.E.
Special Assistant to the ASA IE&EDr. Bret Strogen,
P.E.
Chief, Energy and Utilities Branch Energy & Facilities Policy Division Operations
Directorate, ACSIM Mr. Thomas B. Delaney, Jr.,
P.E.
Army Energy Resilience Update
Office of Energy Initiatives Update
Energy Savings Performance
Contracts & Utilities Energy Service
Contracts Update
Installation Energy& Water Plansand Utilities
Privatization Update
Army Energy Resilience Update
Mr. J.E. “Jack” Surash, P.E. Acting Deputy Assistant Secretary of the Army
for Energy and Sustainability
Energy and water security/resilience ensure available, reliable, and quality power and water to continuously sustain critical missions
Energy and Water Resilience and Security Enables Army Readiness
Office of Energy Initiatives (OEI)11 Awarded Energy Projects325 MW Onsite Generation Capacity76% Islandable Projects (onsite generation,storage & controls)
Utilities Privatization: 152 Privatized Systems Water 35Wastewater 34Electric 45Gas 36Heat/Power 2
Energy Resilience & Conservation Investment Program (ERCIP):FY 2019: 6 Projects / $31.2 M
Energy Savings Performance Contracts (ESPCs)/ Utility Energy Service Contracts (UESCs)$2.8 B Total Third-Party Investment637 Total Task-Orders and ModsFY 2017: $289.3M Investment
9.6% Energy Use Intensity since FY15 vs 5% FY17 Goal
32% Water Use Intensity since FY07 vs 20% FY17 Goal
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Army Universe Installation Population: 3,002,873Total Army Installations: 156National Guard & Reserve Centers: >2,800Total Land (acres): 13,591,251Buildings (ft2): 982,668,264
Army Energy and Water Universe
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Combined Heat & Power (CHP) Strategy14 Projects / 109.2 MW
Sustainable Buildings: ≥ LEED Silver (FY05-17)919 Buildings
Demand Response: 16 Installations Participating
Enterprise Metering System> 21,000 Electric, Gas & Water Meters
Facility Related Control Systems
FY 2017 ARMY Energy & Water Cost / Consumption
$1.1B Energy 71.8T BTUs/year$86.9M Potable Water 31.2B GALs/year
Army Directive 2017-07, Installation Energy & Water Security Policy
(February 23, 2017)
Energy / Resource Energy Managers: 179
FY 2017 Energy Sources:• Electricity: 45.2% • Natural Gas: 34.6%• Fuel Oil 4.4% • Other 15.8%
Installation Energy & Water Plans: In Progress
November 2018
Addressing Vulnerabilities: Pivot from focus on efficiency and compliance to
ENERGY AND WATER RESILIENCE
SecArmy Directive 2017-07 (Installation Energy and Water Security Policy)- CRITICAL MISSION SUSTAINMENT (CMS): Critical
mission continuity of operations for a minimum of 14 days
- ASSURED ACCESS (AA): Dependable supply of energy and water needed to meet evolving mission requirements during normal and emergency response operations
- INFRASTRUCTURE CONDITION (IC): Infrastructure capable of on-site storage and flexible and redundant distribution networks to reliably meet mission requirements
- SYSTEM OPERATION (SO): Trained personnel conduct required energy and water security system planning, operations and sustainment activities
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Energy and Water Resilience
“The Secretary of Defense shall ensure the readiness of the armed forces for their military missions by pursuing energy security and energy resilience”10 USC 2911 (2018 NDAA)
“It is now undeniable that the homeland is no longer a sanctuary. … attacks against our critical defense, government, and economic infrastructure must be anticipated”National Defense Strategy 2018
CYBERNATURALPHYSICAL
Black Swans = unknown, unknowns Pink Flamingos = known, knowns
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Imagine ….
http://madsciblog.tradoc.army.mil/91-army-installations-a-whole-flock-of-pink-flamingos/
Army installations – A whole flock of pink flamingos?
The year is 2030: Army has invested in training and equipment but took risk in installation infrastructure
Authorized mobilization and deployment to counter the invasion in
allied nation
Cyber attack disrupted power supplies, including
communicationsSystems below the threshold of “critical,” disrupted
Key external utility, water, and energy control systems
under attack
The Army is unable to deploy
Efficiency and Conservation
Driver Federal Mandates
Assessment Footprints Square-footage and load
Risk Considerations N/A
Solutions Building load management strategies and onsite generation
Project Prioritization Cost effectiveness
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BUILDING SQFT
AVAILABLE LAND
AVAILABLE RESOURCE
DEMAND RESPONSE
BUILDING LOAD
BUILDING LOAD
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Security and Resilience
Driver Critical mission requirements
Assessment Footprints Uninterruptable and critical footprints, interdependencies, and emergency response
Risk Considerations Threat/hazards with associated impact
Solutions Load management PLUS O&M, infrastructure, and onsite generation and storage
Project Prioritization Meeting mission need, reducing risk, cost effective alternatives analysis
BUILDING SQFT
BUILDING LOAD
AVAILABLE LAND
AVAILABLE RESOURCE
EFFICIENCY OPPORTUNITIES
DEMAND RESPONSE
BUILDING LOAD
Closing Gaps
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Low Cost/ No Cost Management• Installation Planning• Best Management Practices• Energy Resilience Exercises
Appropriated Project Funding• Military Construction (MILCON)• Energy Resilience and Conservation
Investment Program (ERCIP)• Operations and Maintenance (O&M)
Third Party Financing• Energy Savings Performance
Contracts (ESPCs)• Utility Energy Service Contracts (UESCs)• Utilities Privatization (UP)
Private Financing• Power Purchase Agreements• Enhanced Use Leases
Schofield Barracks, HI: Lease Project: 50 MW / 30 day contingency microgrid where
Hawaiian Electric constructed, owns, operates and maintains a 50 MW biofuel/multi-fuel power generation plant, fuel storage tanks,
and controls.
Anniston Army Depot, AL: UESCReplacement and Modernization of Depot-wide central heating and process high pressure steam plants, HVAC equipment and
controls, interior and exterior lighting, compressed air equipment and distributions, and potable water fixtures.
Fort Campbell, KY: MILCONConceptual drawing a microgrid included in the FY2018 NDAA
Office of Energy Initiatives Update
Mr. Michael McGhee. P.E.Executive Director
Army Office of Energy Initiatives
30 November 2018
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The Office of Energy Initiatives
• The Army Office of Energy Initiatives (OEI) was established by the Secretary of the Army with the mission to develop projects that enhance energy security and resilience on or near Army installations using existing DoD land use and private financing authorities.
• OEI serves as the Army’s central program management office for the development, implementation and oversight of privately financed, energy resilience projects.
• OEI is focused on creating an “Islandable” capability – energy security projects that include onsite generation, storage, and controls – which contributes to the Army’s Directive to provide power to critical missions for a minimum of 14 days in the event of an electrical grid outage.
Redstone Arsenal, Alabama: 1 MW / 2 MW-hour battery energy storage system, coupled with a 10 MW solar array; Operational December 2017
Schofield Barracks, Hawaii: 50 MW multi-fuel power plant; 100% “Islandable” capability for 30 days; Operational May 2018
Fort Sill, Oklahoma: 36 MW natural gas and 14 MW solar array; 100% “Islandable” capability for 14+ days; In Development
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Army OEI Current EnergyProjects Portfolio
November 2018
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Energy Security Project, Operational:
Schofield Barracks, HIProject: 50 MW / 30 Day Contingency MicrogridHawaiian Electric constructed, owns, operates and maintains a 50 MW multi-fuel power generation plant, fuel storage tanks, and controls, on Schofield Barracks
Army Benefit Plant can provide 50 MW of “first call” and “black start” capability to three Army installations simultaneously; 5 days of fuel storage onsite, 30 days of fuel storage on island.
Utility Benefit Hawaiian Electric gained a critical generation facility above the tsunami strike zone, which powers the Oahu grid during normal operations.
Community Benefit As the only baseload power generation facility on Oahu located above the tsunami inundation zone, this project enhances grid resilience and could provide power to part of the surrounding community in the event of a grid outage.
Status Operational since May 2018
Operational May 2018
Construction
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Energy Security Project, Concept:
Fort Sill, OKProject Concept: 36 MW / 14 Day Minimum Contingency MicrogridPublic Service Corporation of Oklahoma would construct, own, operate and maintain a 36 MW natural gas fueled grid-facing power plant and up to a 14 MW solar PV array with controls.Army Benefit The project would enhance energy resilience by locating on-demand generating assets on Fort Sill that are capable of supplying reliable power to mission critical facilities during a commercial grid disruption.
Utility Benefit Utility gains a distributed asset enhancing grid reliability in normal operations that aligns with their Integrated Resource Plan. Power from the project would flow directly to the commercial grid.
Community Benefit The project provides additional operational flexibility that improves electrical service reliability to the surrounding Lawton community.
Status Project in pre-negotiation stage. NEPA is underway; in 1st public comment period and consultation phase.
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Energy Security Project, Concept:
Joint Forces Training Base – Los Alamitos (JFTB-LA), CA
Project Concept: 3 MW / 14 Day Minimum Contingency MicrogridDeveloper would construct, own, operate and maintain the energy resilience capabilities project, which includes power generation assets, energy storage, and microgrid components to “island” JFTB-LA in the event of a grid disruption.
Current Status:• Project Solicitation – 16 MAY 18
• Industry Day – 30 MAY 18
• RFP Closed – 20 AUG 18
• Conditional Selection Notice – NOV 18
• Lease Award Target – WINTER 19 Army Benefit Project will enhance energy security by providing “islandable” capability to power the base’s critical missions for a minimum of 14 days during a grid outage.
Developer Benefit During normal operations, the developer would benefit from selling power or services from the project to off-base customers via the electrical grid.
Community Benefit The project may enhance grid reliability by alleviating transmission line congestion or provide other electrical grid quality-enhancing services.
Status Conditional Selection Notice accepted by developer November 2018
Energy Savings Performance Contracts & Utilities Energy Service Contracts Update
Dr. Bret Strogen, P.E. Special Assistant to the Assistant Secretary of the Army
for Installations, Energy & Environment
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Energy Savings Performance Contracts (ESPC) Utilities Energy Service Contracts (UESC)
Program Summary• 637 task orders/mods at 96 installations• >13.9 Trillion BTU saved per year• $2.9B in private sector investments• >$300M more in development
• Servicing utilities and private companies provide initial private capital investment to executeprojects that recapitalize energy and water systems and infrastructure
• Army executes project at no up-front capital costs; payments offset via commodity savings• Army budget funds amortized repayments based on validated savings
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ESPC UESC Projected
Third-Party Investments ($M)
Ft Knox ESPCControls to cycle off geothermal well
pumps during unoccupied hours
Rock Island ESPC Surface finishing process
improvements
Kwajalein ESPCPV array for Meck IslandAs of July 2018
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Kwajalein ESPC
Financial Summary• $40M third party investment for phase I• $2.2M projected annual cost avoidance• 20 year task order term• 55% reduction in diesel fuel consumption
on Meck Island• 64% reduction in lighting energy costs
Energy Savings Performance Contract (ESPC) for USAG Kwajalein Atoll• Task Order for KWAJ ESPC phase 1 awarded in SEP 17, provides $40M of private capital investment• 2.4MW Solar PV array, 2 MW / 3 MWh Lithium-ion Energy Storage System (ESS), Microgrid control
system on Meck Island• HVAC – convert window A/C to split systems on Kwajalein, Meck, and Roi-Namur• Building Envelope Improvements on Kwajalein, Meck, and Roi-Namur• LED Lighting on Kwajalein, and Meck (Roi-Namur in Phase II)
Concept Plan for 2.4MW solar PV array
on Meck Island
Leveraging Private Sector Expertise and Financing in Support of Resilience
Construction camp for Kwajalein ESPCFuture Projects• ESPC Phases 2 & 3• Potential ESPC Phase 4
Installation Energy and Water Plans & Utilities Privatization
UpdateMr. Thomas B. Delaney, Jr., P.E.
Chief, Energy and Utilities BranchEnergy and Facilities Policy Division
Operations DirectorateOffice of the Assistant Chief of Staff for Installation Management
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Installation Energy and Water Plans
IEWP Development Steps
1. Identify requirements• Review installation performance metrics• Define IEWP stakeholders, scope, and goals• Establish energy and water (E&W) needs for
critical missions• Develop baseline
2. Assess risk and opportunities• Identify threats and hazards• Assess risks and mission impact• Evaluate conservation and efficiency
opportunities
3. Generate solutions• Scope best management practices• Develop project concepts
4. Develop an implementation plan• Prioritize solutions• Document the IEWP• Define the implementation
and funding approach
5. Execute and evaluate the IEWP• Report installation performance • Review and update the IEWP
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Use the IEWP Roadmap to Develop Solutions
Examples of Energy and Water Security Solutions:• MILCON – FY20 construction of a new substation inside the fence line at Detroit
Arsenal
• Energy Resilience and Conservation Investment Program (ERCIP) – FY19 construction of a connection between two substations at Fort Sill
• Restoration, Modernization, and Operations –‒ Electrical Repair, Clay Kaserne‒ Comprehensive energy and water plans to support resilience
planning required by FY18 NDAA
• Third-Party –‒ Partnering with local utility to build a biofuel plant on Schofield
Barracks to support USAG Hawaii in event of a grid outage‒ Prioritizing utilities privatization efforts to address critical
deficiencies in energy and water system
Conceptual drawing of substation interconnect at Fort SillNotional Picture of an Army Microgrid
Construction of Biofuel Plant at Schofield Barracks
Appropriated Third-Party Low Cost/No Cost
MILCON ESPC/UESC Planning
ERCIP UP BMPs
SRM OEI Exercises
Funding Sources
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Army UP Program Status
UP improves readiness by leveraging industry expertise and financing to upgrade and sustain utilities for safe, secure, efficient mission support.
Affordable
152 out of 356 U.S. systems privatized (43%): 45 Electric, 36 Gas, 35 Water, 34 Wastewater, (+2 Heat/Power)
29% Portfolio Average “Should-Cost” avoidance $3.4 B Net Present Value saved compared to continued Army ownership
FY17- FY18 UP Awards: 14 systems, $1.2 B cost avoidance (34%)
Strategic Investments for Critical Missions
Efficient Resilient Safe
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UP Evaluation Decision
DeficiencyCorrections
Upgrades + interest
Recurring50-Y
ear
$ Cos
t
“Should Cost”
Renewal & Replacement
O&M
29% Cost Avoidance
GovernmentOfferUP
Portfolio Average
Quo
O&M~75% Funded
Status
Self-Insured RiskLeaks & Losses
Selects best option for FULL SustainmentReduced risks + commodity savings are added benefits
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Risk Management
Actual
Incomplete Inventory
366 Leaks Detected92 Grade 1 Leaks Fixed
FY13 Fort Bragg Gas UP:1990: Fort Benjamin Harrison: Gas explosion killed 2, injured 27
NTSB found Army negligence
2013 Senate (Markey) Report:• 796 gas incidents 2002 to 2012: 116
fatalities, $811M in damage• Cast iron or bare steel mains leak:
18x more gas than plastic pipe and 57x more than protected steel
2010: San Bruno CA
383 Leaks Detected39 Grade 1 Leaks Fixed
FY16 Fort Hood Gas UP:
Question and AnswerSession
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Q&A Session
Acting DASA (E&S)Mr. J.E. “Jack” Surash,
P.E.
OEI ExecutiveDirector
Mr. Michael McGhee, P.E.
Special Assistant to the ASA IE&EDr. Bret Strogen,
P.E.
Chief, Energy and Utilities Branch Energy & Facilities Policy Division Operations
Directorate, ACSIM Mr. Thomas B. Delaney, Jr.,
P.E.Army Energy
Resilience UpdateOffice of Energy
Initiatives UpdateEnergy Savings Performance
Contracts & Utilities Energy Service
Contracts Update
Installation Energy& Water Plansand Utilities
Privatization Update
We look forward to your questions! When submitting questions, please:• Identify yourself and organization• Indicate which speaker your question is for, if known
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Thank You
If you have any additional questions, please email:
Thank you for joining us today!
Army Energy & Sustainability
http://www.asaie.army.mil/Public/ES/
@ASArmyIEE
@ASAIEE
Army ACSIM
http://www.acsim.army.mil/
@OACSIM
Army OEI
www.oei.army.mil
@ArmyOEI
@ArmyOEI
