- Home
- Agencies
- Department of Agriculture
- Department of Housing and Urban Development
- General Services Administration
- Department of Commerce
- Department of the Interior
- National Aeronautics and Space Administration
- Department of Defense
- Department of Justice
- National Science Foundation
- Department of Education
- Department of Labor
- Office of Personnel Management
- Department of Energy
- Department of State
- Small Business Administration
- Environmental Protection Agency
- Department of Transportation
- Social Security Administration
- Department of Health and Human Services
- Department of the Treasury
- U.S. Agency for International Development
- Department of Homeland Security
- Department of Veterans Affairs
- Goals
- Initiatives
- Programs
Primary tabs
Key to Changes
This text is Revised text
This word has been added to the text
This text is Last Published text
This word has been removed from the text
Modifed styling with no visual changes
FY 16-17: Agency Priority Goal
Improve DoD Energy Performance
Priority Goal
Goal Overview
Problem / Opportunity:
As the single largest consumer of energy in the nation, accounting for around one percent of national demand, DoD spent approximately $4 billion in FY2014 to power its fixed installations and non-tactical vehicle fleet (installation energy). Operational energy accounts for a substantial portion of DoDs overall consumption – warranting efforts for data accuracy and accountability.
Relationship to Strategic Goal and Objective:
As DoD strives to better support 21st century needs by reforming and reshaping the institution to gain efficiencies and effectiveness, efforts to reduce the nation’s predominant energy consumption and consequential expenditures must remain a Defense priority.
Operational energy is the energy required for training, moving, and sustaining military forces and weapons platforms for military operations. This includes energy used by tactical power systems and generators, as well as by weapons platforms themselves. The DoD considers operational energy to be the energy used in military operations, in direct support of military operations, and in training that supports unit readiness for military operations, to include the energy used at non-enduring locations (contingency bases).
Improving the energy supportability of DoD systems and weapons platforms directly supports the 2014 Quadrennial Defense Review statement that “Energy improvements enhance range, endurance, and agility, particularly in the future security environment where logistics may be constrained.” Facility energy improvements support DoD’s Strategic Goal to Reform and Reshape the Defense Institution and Strategic Objective to Achieve efficiencies and effectiveness to redirect resources to direct support of combat, combat support, and combat service support elements of the DoD. Operational energy efforts directly support DoD’s Strategic Goal to Defeat our Adversaries, Deter War, and Defend the Nation.
Key Barriers and Challenges:
Improving facility energy performance depends upon capital investments in energy efficiency programs. Major reductions in the facility energy budget as a result of sequestration during FY 2013 and FY 2014 will make it very difficult for the Department to meet mandated facility energy goals.
To improve decision making related to operational energy, DoD needs reliable and detailed data on energy consumption. Current methods for measuring operational energy consumption typically do not include information on end use, limiting DoD’s ability to inform planning, programming, and operational decisions.
Successfully institutionalizing energy supportability analyses in DoD force development is dependent on widespread adoption and understanding of the value of Energy Supportability Analyses (ESAs) as well as the consistent application of realistic threats and limited logistics capacity in our force development planning. Improved capabilities (e.g., increased range, improved force protection, etc.) are often inseparable from increased energy demand. Addressing that increased energy demand through adaptations in the Department’s use of energy often come at the expense of significant funding gaps, as modifications, upgrades, or other design changes are expensive to implement.
Mitigation Efforts:
The DoD will continue to pursue opportunities to use third-party financing through performance based energy savings contracts. DoD has a commitment to execute nearly $2.1 billion in third-party financed performance-based contracts (Energy Savings Performance Contracts (ESPC) and Utility Energy Service Contracts (UESC)) by the end of CY2016, in response to the President’s December. 2, 2011 commitment. To date, DoD has awarded $1.05 billion in performance based energy contracts.
Additionally, improved estimate efforts on end use consumption of operational energy will better inform DoD with a credible baseline.
Strategies
Implementation Plan:
For fixed installations, the Department has pursued an investment strategy that is designed to reduce the demand for traditional energy. In addition to the Department’s military construction budget, financing for these investments has come from our Energy Conservation Investment Program and Energy Savings Performance Contracts.
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 are applied to retrofit existing buildings; typical retrofit projects install high efficiency heating, ventilation and air conditioning (HVAC) 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 Guiding Principles for Federal Leadership in High Performance and Sustainable Buildings (Guiding Principles) standards as a guide.
Components will apply sustainable design principles and introduce efficient building technologies to new construction and retrofits.
Components will execute Energy Conservation Investment Program (ECIP) funding to implement projects using FY 2016/FY 2017/2018 funding.
Components will continue to execute the President's Performance Contracting Challenge. This is a Federal Government-wide challenge of $4 billion in Federal performance-based contracts by the end of the calendar year 2016. DoD's portion of this challenge is $2.1 billion.
DoD will execute facility energy conservation projects, apply sustainable design principles and introduce 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.
To institutionalize operational energy consideration in the force development process, the DoD will:
(1) Ensure all acquisition programs that use operational energy and are designated as Joint Requirements Oversight Council (JROC) Interest Items by the Joint Staff have an Energy Supportability Analysis (ESA)-informed Energy Key Performance Parameter (eKPP);
(2) Include operational energy constraints and limitations analyses in all Title 10 war games; and
(3)Ensure ESAs are used in all acquisition programs that use operational energy and were established in FY 2016 and later.
Targeted Efficiencies:
Improving installation energy performance decreases the amount of energy needed to operate DoD’s fixed installations and non-tactical vehicle fleet costs.
Unlike many DoD initiatives, operational energy enhancements don’t lend to efficiencies and cost savings, but rather are better depicted under the context of increasing warfighter capability through effective energy use. Warfighters will use efficiency gains to extend “time on station” enhance range, carry additional payload, etc.
Key External Factors Affecting Achievement:
Energy efficiency investment program and budget decisions.
Progress Update
In 2015, the Department made progress towards reducing its installation energy intensity relative to a FY2003 baseline (-19.9%). In FY2016 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 FY2016 Q1, DoD received appropriations and began the process for executing energy conservation projects.
Energy Intensity Goal
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Goal -12.0% -15.0% -18.0% -21.0% -24.0% -27.0% -30.0%
DoD -10.0% -11.4% -13.3% -17.7% -17.2% -17.6% -19.9%
DoD continues to execute energy conservation investments in the Military Services' Operations and Maintenance accounts; and installation energy conservation projects through the Energy Conservation Investment Program. FY2016 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 $1.540 billion in ESPCs and UESCs have been awarded, with an additional $2.28 billion in the pipeline.
The Department is committed to improving energy performance. The Assistant Secretary of Defense for Energy, Installations, and Environment, in coordination with the Military Departments and Defense Agencies/Field Activities, publishes comprehensive plans and reports regarding energy activities, performance, and strategies across the Department. This information can be found at: http://www.acq.osd.mil/eie/
Next Steps
DoD will continue its efforts to reduce energy use through the energy conservation investments in the Military Services’ Operations and Maintenance accounts; the Energy Conservation Investment Program (ECIP); and the execution of Energy Savings Performance Contracts.
The ECIP funds energy conservation and small scale renewable energy projects to improve DoD energy performance. During each fiscal year of the Future Years Defense Program (FYDP), DoD executes the $150 million ECIP in the following manner:
• Select ECIP projects to be funded in the next fiscal year (FY18 Q1)
• Receive ECIP funding through the Defense Appropriations Bill for current fiscal year (FY17 Q1/Q2)
• Distribute ECIP funds and execute selected projects for current fiscal year (FY17 Q2/Q3/Q4)
The process for identifying, publishing and executing ECIP projects is as follows:
• Components identify facilities energy conservation projects next fiscal year (Q1)
• OSD down selects projects to be funded for next fiscal year based on savings to investment ratio analysis (Q1)
• ECIP list for the next fiscal year is published with the President's Budget (Q2)
• Defense Appropriations Bill provides funding for current fiscal year (Q1 or Q2)
• OSD notifies Congress of ECIP program project list for current fiscal year and distributes ECIP funding (Q2)
• OSD allocates funds to Components for current fiscal year approved projects (~ 2 months after passage of the Defense Appropriations Bill)
• Components execute current fiscal year projects after receipt of funds (Q2-Q4)
ECIP Historical Funding
FY11 FY12 FY13 FY14 FY15 FY16 FY17
$120M $135M $138M $150M $150M $150M $150M
Energy Savings Performance Contracts (ESPC) are an alternative financing mechanism authorized by Congress designed to accelerate investment in cost effective energy conservation measures in existing Federal buildings. ESPCs allow Federal agencies to accomplish energy savings projects without up-front capital costs and without special Congressional appropriations. DoD has a commitment to execute nearly $2.183 billion of the President's $4 billion ESPC goal. DoD will award Energy Savings Performance Contracts as energy conservation measures are identified through third-party audits. As of August 15, 2016 DoD Components have awarded 163 projects at a value of $1,562M towards the President’s Performance Contracting Challenge goal.
Expand All
Performance Indicators
Reduce Facility Energy Intensity
Institutionalize Operational Energy Considerations in Force Development: Energy Supportability Analysis (ESA)-informed Energy KPP for JROC-interest item ACQ programs, using OE
Institutionalize Operational Energy Considerations in Force Development-OE constraints and limitations analyses in Title 10 war games
Institutionalize Operational Energy Considerations in Force Development: Energy Supportability Analysis (ESA)-informed Energy KPP for ACQ programs, using OE
Contributing Programs & Other Factors
Installation Energy Testbed Program: The Office of the Assistant Secretary of Defense (Energy, Installations and Environment) Science and Technology is leveraging advanced technology through the installation energy testbed as a cost-effective way 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.
Institutionalizing operational energy in the force development process Initiative will rely on contributions from:
(1) The Services through capability gap assessments and the identification of energy implications of mitigation strategies, as well as through their oversight of Title 10 wargames; and (2) The Joint Staff through the oversight of requirements in the Joint Capabilities Integration Development System (JCIDS).
Laws/Regulations/Policies:
National Energy Conservation Policy Act (NECPA)
Energy Policy Act of 1992
Energy Policy Act (EPAct) of 2005
Energy Independence Security Act (ESIA) 2007
Executive Orders (13423, 13514, 13693)
DoDI 4170.11
National Defense Authorization Act (NDAA) 2008-2015 (10 U.S.C. Section 2925; 10 U.S.C. 2911)
DoDD 4180.01
Activities:
Federal Government energy goals
Federal Government energy efficiency goals in buildings
Federal Government energy efficiency and renewable energy goals
High performance buildings
Smart grid
Expansion of Statutory goals
Installation Energy Management
Annual Energy Management Report (AEMR)
DoD Energy Policy
Partners (Agency Internal and External):
DoD relies on third-party investors to increase facility energy performance. These partnerships allow DoD to continue energy efficiency programs without using taxpayer dollars. DoD has a commitment to execute nearly $2.1 billion in third-party financed performance-based contracts (Energy Savings Performance Contracts (ESPC) and Utility Energy Service Contracts UESC)) by the end of CY 2016, in response to President's December 2, 2011, commitment. To date, DoD has awarded $1.05 billion in performance based energy contracts.
For operational energy, the Defense Operational Energy Board (DOEB) along with a supporting Deputies group, both composed of representatives from Office of the Secretary of Defense (OSD), Joint Staff, Defense Agencies, Services, and Combatant Commands, has met routinely since 2012 to discuss the role of operational energy in force development. This engagement, along with specific working groups, informed the development of this performance goal.
No Data Available