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FY 14-15: Agency Priority Goal
Improve energy performance.
Priority Goal
Goal Overview
Improving facility energy performance at Department of Defense (DoD) installations will reduce reliance on fossil fuels, lower energy costs, improve mission effectiveness, and improve energy security. Efficiencies will be achieved by reducing the demand for traditional energy while increasing the supply of renewable energy. Legislation mandates a 3 percent annual reduction in facilities energy intensity as measured in British Thermal Units per gross square foot (BTU/GSF). Additionally, the Department has a requirement to increase production or procurement of renewable energy equal to 25 percent of its electrical energy usage by fiscal year (FY) 2025.
Reliable and detailed data on energy consumption are essential to improving decision making within the Department. Recently, the Department has improved the measurement of operational energy consumption and is improving the use of this information in the requirements, acquisition, and resourcing processes throughout the Department.
The DoD is the single largest consumer of energy in the nation, accounting for approximately one percent of national demand. For FY2014, the Department has budgeted approximately $20 billion on energy, with 80 percent going to support military operations (“operational energy”) and the remaining 20 percent to power its fixed installations (“facility energy”).
Operational Energy
Operational Energy is the use of energy to train, move, and sustain military forces and weapons platforms for military operations. Overseen by the Assistant Secretary of Defense for Energy, Installations and Environment (ASD (EI&E), “operational energy” powers generators at our contingency bases as well as aircraft, ships, and tactical vehicles in operational and training activities around the globe.
Petroleum is currently the fuel of choice for military operations because of its high energy density, fungibility, and global availability. As a result, a steady and reliable supply of petroleum is essential to every military capability and mission. However, the Department’s ability to reliably deliver petroleum to deployed forces is challenged by a variety of geographic, geopolitical, and military challenges.
The Department’s first ever Operational Energy Strategy was released in 2011. This strategy outlines three principal ways to achieve energy security for the Department: reducing the demand for energy, expanding and securing the supply of energy, and building energy security into the future force.
Facility Energy
The second broad use of energy is to support the more than 500 fixed installations we operate in the United States and overseas. Overseen by the Assistant Secretary of Defense for Energy, Installations and Environment, “facility energy” consists largely of traditional energy sources used to heat, cool, and provide electrical power to these buildings. It also includes the fuel used by the 200,000 non-tactical vehicles housed at our installations. The DoD has pursued a facility energy investment strategy designed to reduce the energy costs and improve the energy security of our bases.
Despite falling short of the FY 2014 intensity reduction goal of 27 percent, the DoD reduced its energy intensity by 17.6 percent from the FY 2003 baseline and improved by 0.4% from FY 2013. While DoD continues to invest in cost-effective energy efficiency and conservation measures to improve goal progress, there will be challenges in future reductions. These challenges will include: (1) budget sequestration and delayed appropriations, which lead to a reduction in energy efficiency and conservation projects, (2) uncontrollable variables such as weather and temperature variability (i.e., heating and cooling degree days ), increasing facility energy use, and (3) a greater reliance on conducting missions at fixed installations and enduring locations (e.g., training, unmanned aircraft, intelligence, surveillance or reconnaissance missions) , leading to an increased reliance on energy from fixed installations and enduring locations. However, DoD saw significant gains in renewable energy performance in FY2014. DoD increased the amount of renewable energy it produced or procured from 11.8% in FY2013 to 12.3% in FY2014.
Strategies
DoD will execute facility energy conservation projects, applying sustainable design principles and introducing efficient building technologies to new construction and retrofits. All newly constructed buildings must comply with the five principles of High Performance Sustainable Buildings; and they must exceed American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE’s) energy efficiency standards by at least 30 percent. Military Department plans to each develop 1 GW of renewable energy by
2025 are ongoing.
Facility energy metrics are reported on an annual basis. No quarterly results are available, except for the Energy Conservation Investment Program.
In FY2014, the Department spent approximately $4 billion to power its fixed installations and non-tactical vehicle fleet. Improving facility energy performance reduces these costs by decreasing the amount of energy needed to operate DoD’s fixed installations and increasing the amount of energy DoD uses from renewable, free energy sources.
Improving facility energy performance depends upon capital investments in renewable energy and energy efficiency programs. Major reductions in the facility energy budget as a result of sequestration during FY2013 and FY2014 will make it very difficult for the Department to meet mandated facility energy goals. Further, the Department faces challenges and constraints as it pursues aggressive renewable energy goals, including withdrawn land complexities, unstable project economics, long lead times, and limited transmission access.
Curbing demand through conservation measures and improved energy efficiency are by far the most cost-effective way to improve an installation’s energy profile. A large fraction of DoD’s energy efficiency investments is applied to retrofit existing buildings; typical retrofit projects install high efficiency heating ventilation and air conditioning systems, energy management control systems, new roofs and improved lighting. DoD is also taking advantage of new construction to incorporate more energy efficient designs, material and equipment, using Leadership in Energy and Environmental Design (LEED) Silver standards as a guide. In addition to direct funding, the Services are using performance based contracts to improve the energy efficiency of existing buildings.
In addition to reducing the demand for traditional forms of facility energy, DoD is increasing the supply of renewable and other forms of distributed (on-site) energy on its installations with the development and deployment of 3GW of energy from renewable sources by 2025. On-site energy is critical to making DoD bases more energy secure. Together with smart micro grid and storage technologies, it will allow a military base to maintain its critical operations “off-grid” for weeks or months if necessary. The Department plans to rely on third-party financing for large-scale renewable energy projects. The Services have been active in pursuing privately financed projects using existing authorities.
Progress Update
Facility Energy
In FY2015 Q1-Q2, DoD held Program Reviews with each of the Military Services and analyzed their proposed energy budgets and energy programs to ensure they were on track to meet energy goals. In FY2015 Q1, DoD received appropriations and began the process for executing energy conservation projects.
DoD continues to execute energy conservation investments in the Military Services' Operations and Maintenance accounts; and facility energy conservation projects through the Energy Conservation Investment Program. FY2015 ECIP projects have been selected and funds should be distributed soon to the Services for project execution. Further, DoD remains committed to reducing energy use through third-party financed contract vehicles like Energy Savings Performance Contracts (ESPC) and Utility Energy Service Contracts (UESC). Since the beginning of the President's Performance Contract Challenge in December 2011, more than $1 billion in ESPCs and UESCs have been awarded, with an additional $2.0 billion in the pipeline. The Military Services are continuously working on developing three GW (one GW per Military Service) of renewable energy by 2025. DoD has made great progress in deploying renewable energy on its Military installations and currently has 644 megawatts of renewable energy generation. Approximately 240 new renewable energy projects came online during FY2014. Military Services are exploring development of approximately 2.4 gigawatts of renewable energy projects by FY2020.
Operational Energy
FY14Q4: Hired IPA data analyst to lead the data analysis effort. Two contract data analysts were brought on to support the effort.
Next Steps
No Data Available
Expand All
Performance Indicators
Cumulative average percent reduction in building energy intensity
Percentage of renewable energy produced or procured based on DoD's annual electric energy usage.
Contributing Programs & Other Factors
The Office of the Secretary of Defense, Science and Technology is leveraging advanced technology through the installation energy testbed. The testbed is a cost-effective way for DoD to demonstrate and validate emerging energy technologies in a real-world environment. Projects conduct rigorous operational testing and assessment of the life-cycle costs of new technology while addressing DoD-unique issues. Following demonstrations, the DoD can be a sophisticated first user of successful cutting-edge, transformational energy technologies.
The Office of the Secretary of Defense, Business Enterprise Integration is developing a state-of-the-art, mission-driven, enterprise-wide energy information management system that can provide the appropriate information on energy consumption. With accurate management, control, collection and analysis of energy data, DoD can more effectively monitor, measure, manage and maintain energy systems at their optimal performance levels; collect renewable energy generation and performance data; and compare performance across facilities and across Military Departments. Once fully developed, the Department can provide quarterly updates on energy intensity and renewable energy generation.
Contributing programs or partners outside the agency:
DoD relies on third-party investors to increase facility energy performance. These partnerships allow DoD to continue energy efficiency and renewable energy programs without using taxpayer dollars.
The Services are using performance based contracts to improve the energy efficiency of existing buildings. In response to Executive Order 13693 calling on the federal government to initiate $4 billion worth of these performance based contracts over the next two years, the Department's share of this goal is more than half of that commitment ($2.2 billion).
The Department also relies on third-party financing for large-scale renewable energy projects. The Services have been active in pursuing privately financed projects using existing authorities.
No Data Available