1. Phoenix Convention Center Phoenix, Arizona ANDREA L. KINCAID DLA Energy Track 5 Project FinanceSession 6 Renewables Through Private Financing

2. Energy Exchange : Federal Sustainability for the Next Decade 2 DLA Energy Primary field activity of the Defense Logistics Agency Mission: –To provide the Department of Defense and other government agencies with comprehensive energy solutions in the most effective and efficient manner possible. Serves as a single procurement agent for DoD’s energy needs DLA Energy, Installation Energy –Operational business unit within DLA Energy –Provides acquisition support supporting the facility energy needs of DoD and federal civilian agencies. Includes coal, natural gas, electricity, renewable energy and energy conservation initiatives. –Coordinator and facilitator for DoD’s participation in electricity demand response programs.

3. Energy Exchange : Federal Sustainability for the Next Decade Serves as a procurement agent for 3 rd party financed on-site renewable project development: – Solar, wind and biomass efforts supporting Army, Air Force, Navy and federal civilian customers – More than 452 MW in project development Energy Savings Performance Contracts – More than 80 percent of efforts supported contain a renewable energy element Serves as the centralized purchasing agent for: – Renewable Energy Certificate purchasing – More than 8 million megawatt hours of renewable energy credits obtained for DoD and federal civilian customers since 2003 3 DLA Energy: Renewable Energy Program

4. Energy Exchange : Federal Sustainability for the Next Decade 4 DLA Energy Renewable Energy Projects

5. Energy Exchange : Federal Sustainability for the Next Decade Phase 1- Presolictation − Roles and Responsibilities, Requirements, Environmental, Real Property, Interconnection, Pricing, Installation Buy-In, Concept Approvals, Process Models, Engagement, Cohesive Partnerships, Site Visits, Maps, Stakeholder Identification Phase 2- RFP on Street − RFI’s, Environmental, Real Property, Pricing Validity, Past Performance Phase 3- Evaluations − Technical/Pricing Teams, Exceptions, Environmental, Requirements, Energy Security Phase 4-Open Negotiations Prior to NOITA − Exceptions/Negotiations, Environmental, Interconnection, Cohesive Partnerships Phase 5- NOITA to Award − Communication, Weekly Updates, Technical/Pricing Teams, Funding, Site Visits, Pricing Validity, Procurement Integrity, Regulatory Issues, Groundbreaking 5 Overview of Project Phases

6. Energy Exchange : Federal Sustainability for the Next Decade Stakeholder identification and engagement Process alignments w/in procurement phase – Environmental – Real Property – Financial / budgeting – Information technology operations – Regulatory (external) Approvals – Project – Real property – Acquisition Procurement Integrity 6 Acquisition Perspective—Issues and Challenges

7. Energy Exchange : Federal Sustainability for the Next Decade Environmental Concerns – NEPA Some type of assessment needs to be completed prior to issuance of RFP DLA Energy-we won’t issue Notice of Intent to Award (NOITA) until CatEx, EA or EIS has been out for public comment; No Award until process is final Interconnection – Utility communication first and foremost Obtain a copy of the Agreement – Legal review – Modifications to language (Assignment, Access) Site Legal Involvement 7 Acquisition Perspective—Issues and Challenges

8. Energy Exchange : Federal Sustainability for the Next Decade Land and Site Access – Real Estate Office Coordination Early discussions about process How to handle In-Kind Consideration – Are you a tenant? What does lease say about use – What are requirements Hours of use (weekday vs weekend) Evaluation – What is the project expected to achieve? Identify criteria around these goals – Renewable Power – Energy Security – Cost 8 Acquisition Perspective—Issues and Challenges

9. Energy Exchange : Federal Sustainability for the Next Decade Past Performance Evaluations – Requirements for References Identify reliable references Renewable Energy Certificates – Know market area for value – Retain, Replace, Forego – Unable to predict long term value – Agency policy 9 Acquisition Perspective—Issues and Challenges

10. Energy Exchange : Federal Sustainability for the Next Decade Progress is being made in renewable energy purchasing Working group efforts for “lessons learned” and template standardization of contract language Continuing collaboration between industry and federal agencies to adopt best practices Teaming with DoD military service partners and DOE for program management and technical expertise 10 Summary

11. Energy Exchange : Federal Sustainability for the Next Decade Andrea Kincaid Division Chief and Contracting Officer DLA Energy 8725 John J. Kingman Road, Suite 3827 Fort Belvoir, VA 22060 Phone: 703-767-8669 Email: andrea.kincaid@dla.mil 11 Questions?