Jon Powers, Federal Environmental Executive in the White House council on Environmental Quality: Leading by Example

“Example isn’t another way to teach, it is the only way to teach.”  - Albert Einstein

Jon Powers, the Obama Administration’s Federal Environmental Executive within the White House Council on Environmental Quality recently addressed a packed room at the Alliance for Sustainable Colorado (http://sustainablecolorado.org/).  As Federal Environmental Executive, Jon is responsible for promoting environmental and energy sustainability across federal government operations. During this meeting Powers emphasized the Obama Administration’s commitment to lead by example as directed by Executive Order 13514 that sets sustainability goals for Federal agencies.  These goals are closely tied to environmental and economic performance as well as to our energy security.  While the scope of the Order is daunting - the Federal government occupies nearly 500,000 buildings, operates more than 600,000 vehicles, employs more than 1.8 million civilians, and purchases more than $500 billion per year in goods and services – the results that can emerge and are emerging by this lead by example strategy are staggering. 

A movement and culture shift of this size needs leadership, passion and determination.  Fortunately, these are skills that Jon Powers brings to the table. Powers told a story about his first days in the Army when his Platoon Sargent took him aside and said there are two types of leaders: those that lead by rank and those that lead by example.  Powers took leading by example on as a value and draws upon his intimate understanding of the impact of energy and sustainability on our security to focus on the initiatives under Executive Order 13514.

More than leadership, Powers demonstrates a commitment to learning about what is working and it is a goal of the Council to use that knowledge to replicate success stories.  For example, on his tour of Denver, Powers also visited with leaders at the U.S. General Services Administration (GSA) to discuss a joint federal/local government leadership team that created a sustainability challenge to increase conservation awareness, save natural resources and reduce greenhouse gas emissions.  The team consists of the Department of Energy (DOE), the National Renewable Energy Laboratory (NREL) and the U.S. Environmental Protection Agency (EPA) Region 8 and the City of Lakewood.  The sustainability challenge engaged employees with the goal of reducing carbon dioxide and educating local communities.  Some of their successes include a 1 MW Denver Federal Center Grid (DFC)-Tied Photovoltaic Solar Park.  The 6,192 panel site generates about 1,600,000 kWh per year – approximately 10 percent of the DFC's entire electrical demand.  Retrofits for interior lighting have reduced electrical demand by 3,765 kWh per year.  It is these types of strategies and partnerships that the Council on Environmental Quality is seeking to replicate, according to Powers. 

For the federal government to meet mandates for reductions in energy use, water use and GHG emissions, however, mechanisms are needed.  The government can leverage its buying power but there still need to be functional mechanisms to finance improvements and funding available for research and development and according to Powers, there are barriers. 

Federal funding supports research and development.  As one example, the Internet and GPS came out of R&D projects under the Defense Advanced Research Projects Agency (DARPA), an agency created to develop technology beyond immediate requirements of the military.  Recognizing the need for transformational energy research “where success would drive dramatic benefits to the nation,” ARPA-E was funded in 2009 with funds from the American Recovery and Reinvestment Act.  These funding opportunities can also leverage partnerships with the Department of Defense and enable investment in high risk/high reward energy research.  A current challenge however, is that the House Republican Budget currently proposes a 19% cut to funds for clean energy.  These budget cuts would undermine the findings in the 2007 report, “Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future,” the same report that recommended creation of ARPA-E.  The report found, in part: 

The United States takes deserved pride in the vitality of its economy, which forms the foundation of our high quality of life, our national security, and our hope that our children and grandchildren will inherit ever-greater opportunities. That vitality is derived in large part from the productivity of well-trained people and the steady stream of scientific and technical innovations they produce. Without high-quality, knowledge-intensive jobs and the innovative enterprises that lead to discovery and new technology, our economy will suffer and our people will face a lower standard of living. Economic studies conducted even before the information-technology revolution have shown that as much as 85% of measured growth in US income per capita was due to technological change.

Another challenge is lack of data necessary to design appropriate funding mechanisms.  Powers noted Green Button as an innovative program directed towards data collection.  According to www.greenbuttondata.org, “Green Button is an industry-led effort that responds to a White House call-to-action: provide electricity customers with easy access to their energy usage data in a consumer-friendly and computer-friendly format via a "Green Button" on electric utilities' website.”  Accurate energy information can not only empower consumers to make educated choices around managing their energy use but also provide data that innovators can use to produce new consumer applications that address energy management needs. 

In short, one important take away message was that the federal government is leading by example and at the same time, this work is creating data that we can use to innovate and educate from the ground up.  Having access to critical data is key in removing barriers to innovation.  Innovation is closely tied to our energy security – and thereby our national security, and to me, nothing is more compelling. 

Energy From Thorium – An ICOSA Interview with Kirk Sorensen and Member of the House of Lords, Baroness Worthington

What is the potential for the use of thorium as an energy resource? I just traveled to Huntsville, Alabama with Jan Mazotti for ICOSA magazine to find out directly from Flibe Energy. Liquid fluoride thorium reactors or LFTR (pronounced "lifter"), have the potential to revolutionize the energy industry by providing clean, reliable, and continuous power generation while using a fuel that we have in abundance. Remarkably, however, it's not just about power. It's also about creating a reliable supply of isotopes for medical treatment, rocket fuel, and other useful by-products. In short, LFTR is about taking a fresh look at a proven technology so that we can move securely into the future. 

In our interview with Flibe, we discuss how it works, the state of the technology, what needs to happen to integrate LFTR into America's energy generation portfolio and more specifically, what that might look like. What struck me, however, is the similarity of Flibe's story to some of America's greatest success stories and greatest leaders.  

"To alter the course of an industry requires a very special and rare partnership between one who knows why and those who know how," says Simon Sinek in his book entitled, "Start With Why."  Why is the vision and the how is the processes and systems that make the vision a reality. "In nearly every case of a person or an organization that has gone on to inspire people to do great things, there exists a special partnership between why and how . . . Bill Gates, for example, may have been a visionary who imagined a world with a PC on every desk, but Paul Allen built the company," observes Sinek. According to Sinek, "the why types are the visionaries, the ones with the overactive imagination, whereas how types live more in the here and now." They build the structures and processes needed to get things done. Success requires both.

Flibe Energy was co-founded by Kirk Sorensen and Kirk Dorius, former college roommates.  Both were students in mechanical engineering. Sorensen went on to study aerospace engineering and Dorius went to law school. The match pairs Sorensen's infectious enthusiasm, charisma and vision with Dorius' tenacious determination and practicality needed to lay to the foundation to turn vision into reality. According to Sinek, this is the beginning of a recipe for success. "A shared upbringing and life experience increases the probability of a shared set of values and beliefs." Sinek provides several examples of why/how partnerships.  Walt Disney and Roy Disney were brothers. Bill Gates and Paul Allen went to high school together. Herb Kelleher was Rollin King's divorce attorney and friend (Southwest Airlines). Martin Luther King Jr. and Abernathy both preached in Birmingham.  Steve Jobs and Steve Wozniak were best friends in high school. Kirk Sorensen and Kirk Dorius were college roommates. If history is any indication, Flibe is on solid footing.

Pessimists are often right, but it's the optimists that change the world, says Thomas Friedman, author of "The World is Flat." In his book, Sinek demonstrates that American's have had great success in making a vision a reality when we understand why. The process starts with the vision and charisma of the leader - something Sorensen clearly demonstrates. Each tangible demonstration of success that the vision became a reality strengthens the foothold and encourages acceptance. The energy landscape is transitioning. With LFTR technology and Flibe Energy, we may very well be at the beginning of another great American success story.

You will be able to listen to the radio show on http://www.talkzone.com/shows/199/icosa.html and ICOSA's YouTube station http://www.youtube.com/user/ICOSAmagazine soon. 

Watch Simon Sinek’s TEDX talk here: http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

ICOSA Driving Force Radio – Monday, May 7th – Interview with Denis Hayes, President & CEO of the Bullitt Foundation: Seeking High Risk, High Potential Payoff Opportunities to Exert Unusual Leverage www.talkzone.com/shows/125/icosa.html

          

Clean technology now promises to make the region [Cascadia] the next locus for industrial innovation in such fields as smart and renewable energy, biotechnology, and nontechnology.  Companies will conceive and manufacture products with an unprecedented array of environmental benefits.  Obviously, some may also pose unprecedented environmental hazards.  It is important that new products be scrutinized with an eye to the precautionary principle to ensure that unexpected problems don’t cause whole industries to die stillborn. 

          – Bullitt Foundation

On Monday, May 7^th, Jan Mazotti, host of ICOSA’s Driving Force radio and I will be interviewing Denis Hayes, a seasoned veteran of many legislative, cultural, and courtroom battles relating to energy and sustainability.  Mr. Hayes is probably still best known for having been National Coordinator of the first Earth Day when he was 25.  What many don’t know is that he directed the National Renewable Energy Laboratory, was a professor of engineering and human ecology at Stanford University, and a Time magazine “Hero of the Planet.”  During his career Mr. Hayes has received the John Muir Award, the Rachel Carson Medal, and a National Jefferson Award. 

Now, with the Bullitt Foundation, Mr. Hayes leads an effort to mold the American Pacific Northwest into a global model of sustainability, applying ecological principles to the design of “human ecosystems.”  The Bullitt Foundation seeks to catalyze the changes necessary to align our obligation to sustain healthy natural systems with our human activity and understandable desire for health, convenience, creativity and prosperity.  The Bullitt Foundation is leading by example.

The Foundation seeks to fix the cause, not the symptom. That is, they focus on preventing problems – not fixing problems.  According to Hayes, to do this, the Foundation seeks to “promote policies and actions to harness the entrepreneurial power of business to create competitive industries built on ecological principles and sustainable technologies.” The critical element to progress is private industry.  By identifying impediments to development we can create opportunities for private industry to achieve these goals.   

The Bullitt Foundation has prioritized its objectives:

1.      Secure adoption and implementation of far-sighted regional energy and climate policies.

2.      Attain dramatic reductions in industrial energy use through conservation and efficiency.

3.      Accelerate and maximize the installation of renewable energy technologies.

4.      Instill an ethic of zero waste practices that result in “reduce, reuse, recycle and compost” for all materials.

5.      Eliminate to the degree possible the production and use of toxic materials and biologically active pollutants, and seek to contain and safely recycle any essential toxics.

6.      Advance the field of “green chemistry” to demonstrate credible and viable alternatives to substances that harm human health and the environment.

7.      Promote innovative systems, fuels, and infrastructure for commercial transportation systems.

 To see a webcast of the show: www.talkzone.com/shows/125/icosa.html.  Click on the listen button near the xx logo and it should load live.  For Denver and the surrounding areas, the show rebroadcasts Saturday, May 12^th on 710 AM KNUS from 10:00 to 11:00 AM.  Please join us to hear from Mr. Hayes the critical role of private industry in catalyzing the necessary changes.

Could Gamification Accelerate Energy Reduction for the DoD?

On March 29, 2012 Dr. Robyn, the Deputy Under Secretary of Defense for Installations and Environment, testified before the House Armed Services Committee about what the Department of Defense is doing to reduce facility energy.  During the testimony, Dr. Robyn provided the following statistics:

The DoD has a footprint three times that of Walmart and six times that of the General Services Administration – 300,000 buildings and 2.2 billion square feet of building space.

Facility energy represents 20-25 percent of DoD’s energy costs and nearly 40% of DoD greenhouse gas emissions.

To reduce these costs the DoD is working to leverage advanced technology and reduce the demand for traditional energy through conservation and energy efficiency.  One of the biggest challenges to achieving energy reduction goals has been lack of good data on building energy performance.  According to Dr. Robyn, “high quality data in building energy performance is the building block for investment and innovation. The biggest opportunity lies in coupling these data streams with advanced modeling technologies and emerging diagnostic tools that can both identify cost effective opportunities to retrofit our buildings and improve their use of energy during operation.”  In response, the office issued an updated metering policy and Dr. Robyn expressed a need to budget for new meters.


The question is, however, are there ways to further accelerate energy reduction?  One of the leaders in corporate sustainability, McDonald's Corporation, found that success is accelerated with employee engagement.  "There is a synergistic relationship between sustainability and employee engagement, in that they support and advance one another.  Corporate sustainability is a common goal that employees can share, no matter where they are on the totem pole.  It encourages them to better their situations and enables them to feel as though they are contributing to their organization on a profound level."  http://corporatesustainabilitytraining.com/sustainability-motivates-employees/

Applying the McDonald’s philosophy of engagement, gamification could provide another avenue to use to motivate people.  A Boulder based company, Simple Energy, is doing just that.  www.simpleenergy.com.  They “designed an online platform that helps users understand their energy use with actionable insights, that scores them against their Facebook friends and that rewards them with real prizes.”  The platform does not need smart grid meters. Simple Energy is a software as a service platform and uses energy use data from the utility.  A critical component to the energy transition that is underway at the DoD is improving use of energy during building operation.  By following the McDonald’s model and integrating gamification platforms to engage DoD personnel, the DoD may be able to demonstrate even greater reductions while building personnel engagement at the same time.


Under the leadership of Dr. Robyn, the office has been leading the development of an Enterprise Energy Information Management (EEIM) system that will facilitate the automated collection of standardized facility energy and cost data.  The EEIM will further provide advanced analytical tools that will allow energy professionals at all levels of the Department both to improve their existing operations and identify cost effective investments.  By using the EEIM vision statement and capability requirements, industry can adapt its commercial off-the-shelf solutions to meet the DoD needs. 


We are on the ACORE’s military defense advisory committee working to facilitate interaction between private industry and the military and smooth the transaction space to expedite procurement processes so that we can help companies interface with the military.    

Loren Burnett - Founder of US e-Chromic and Speaker at the Global New Energy Summit in Colorado Springs, Colorado April 9-11: Use of Electrochromic Technology on Windows to Cut Energy Use

For the Department of Defense (DoD), installation energy represents a significant cost.  In fiscal year 2009, electricity accounted for 63.64% of DoD energy use, $3.8B (28% of total DoD energy costs) and a disproportionate share of greenhouse gas emissions.  It is critical to the DoD to cut electricity use, not only for cost but for national security.  “Installation energy management is key to mission assurance.”  Dr. Robyn, Deputy Under Secretary of Defense Installations and Environment. 

The DoD is actively seeking solutions to reduce its energy use and advanced window technology could play a critical role.  According to ENERGYSTAR, heat gain and loss through windows can account for up to 50% of a facility’s heating and cooling needs.  Advanced energy technologies can be used to reduce the need for heating and cooling.

Loren Burnett is founder of US e-Chromic (a Boulder based company) and speaker at the Global New Energy Summit.  US e-Chromic was founded to commercialize electrochromic technology developed by the National Renewable Energy Laboratory (NREL) to deflect sunlight in the summer and reduce the need for air conditioning.  According to Burnett, “the electrochromic technology used by US e-Chromic LLC uses an electric field to change the tint of a window, allowing users to control the transparency based on the time of day, temperature, or exposure to sunlight.  Today, the current supply of electrochromic windows turn darker in color when activated, consequently absorbing heat.  In contrast, the technology being developed by US e-Chromic LLC reflects sunlight, keeping buildings cooler.  They can be retrofitted to existing windows, potentially reducing cooling costs by 25-30 percent for commercial buildings during air conditioning months.” 

According to studies by NREL, windows that can dynamically change color or reflectivity based on changes in the sun’s intensity or temperature potentially could save 2% to 4% of the nation’s entire energy budget.  These savings are recognized by the DoD.  “Energy efficiency is not just the low-hanging fruit; it’s the fruit lying on the ground, which is all about retrofitting – more efficient boilers, HVAC systems and windows, daylighting and so forth. It’s all that not very sexy stuff, but that’s the name of the game.”  Dr. Robyn, DoD’s Evolving Energy Revolution - An Interview with Dorothy Robyn, PhD, by Rosemarie Calvert (http://livebettermagazine.com/eng/magazine/article_detail.lasso?id=162&-session=user_pref:42F947961d9df34905nxpt32434F).

In addition, the DoD recognizes that they can play a role in proving and helping to commercialize technology.  ”DoD is one of the few organizations, like Wal-Mart, large enough to create energy technology test-beds for its self-interest, which will, simultaneously, speed deployment and commercialization for national benefit. It’s a test and evaluation function with a twist because of its capability to begin a US energy revolution – and it’s already begun thanks to DoD’s keen understanding that national security cannot be separated from energy security.” Id.

Within DoD there are operational and regulatory challenges to commercialization.  With challenge however, comes opportunity.  We are working with ACORE to address some of these challenges in order to streamline the transaction space.  Our country needs to be able to implement advanced technologies and we look forward to learning more about US e-Chromic and next steps for commercial scale deployment at the Global New Energy Summit in Colorado Springs, Colorado, April 9-11, 2012.  To find out more go to http://www.globalnewenergysummit.org/. 

Kirk Sorensen Co-Founder of Flibe Energy and Speaker at the Global New Energy Summit, April 9-11, in Colorado Springs, Colorado – Are Liquid Thorium Fluoride Reactors the Key to Affordable, Sustainable Energy?

Even during the latest political wrangling’s, there is one area where American’s generally seem to agree:  We love our access to energy.  The average household owns 26 electric gadgets that we recharge without a second thought.  But where we get that energy? Well, that’s where viewpoints diverge.  Several years ago Newsweek columnist Roger Samuelson summed it up this way:  "We Americans want it all.  Endless and secure energy supplies; low prices; no pollution; less global warming; no new power plants (or oil and gas drilling, either) near people or pristine places. This is a wonderful wish list, whose only shortcoming is the minor inconvenience of massive inconsistency."

Is our desire for an endless supply of clean energy enough to open our eyes to new business models and new technologies?  Ask Kirk Sorensen, Chief Nuclear Technologist for Teledyne Brown Engineering, Co-Founder of Flibe Energy (“Flibe”), and speaker at this year’s Global New Energy Summit (www.globalnewenergysummit.org) in Colorado Springs, and I believe that he’d say that we should keep an open mind about nuclear power and in particular, Thorium.  Flibe was founded on technology to use Thorium as a nuclear fuel to create energy.  Thorium is natural, abundant and inexpensive.  Indeed, Thorium is common in the Earth’s crust, approximately three to four times more common than Uranium.  Thorium energy can be inexpensive and clean if made by a liquid-fluoride thorium reactor (LFTR), pronounced “lifter.”

The primary concern with the traditional approach to nuclear power generation is the use of low-enrichment uranium (LEU) in solid-uranium-oxide-fueled light-water reactors.  These reactors produce significant plutonium from the uranium-238 that makes up 95-97% of the original fuel.  Irradiation produces by-products including other isotopes of plutonium called transuranic nuclear waste.  After years of irradiation, spent fuel rods are stored in repositories to move towards stability.  Reducing the amount of transuranic waste is critical for nuclear power generation.  According to Sorensen, by using Thorium in a fluoride reactor as opposed to uranium in a solid-oxide reactor, it is possible to reduce the amount of transuranic material generated by a very large factor.

Thorium and the fluoride reactor present an entirely different model.  The primary difference is that the thorium is in the liquid fluoride form and is therefore chemically stable. Only products that are generated during operation are removed and the fluid can be continually reused. The ability to reuse is a profound advantage. 

Nuclear energy however, can’t be mentioned without addressing safety concerns. So how does Thorium compare? Sorensen is very outspoken about the safety record of the nuclear industry and emphasizes that the safety record in the nuclear industry is unparalleled.  That safety record, however, is purchased at a price because the safety systems are engineered.  LFTR on the other hand, is passively safe in case of an accident.  In simple terms, the LFTR is equipped with a frozen plug, kept frozen by an external cooling fan.  In the event of failure, the freeze plug in the reactor melts and allows the core salt to drain into a passively cooled configuration where nuclear fission and meltdown are not possible.    

Flibe Energy is currently leading the charge in the design of LFTR technology.  They have proposed to design, develop and demonstrate a small modular liquid-fluoride thorium reactor (SM-LFTR) for the U.S. Military having a design power level of 20-50 MWe.  According to Sorensen, “the SM-LFTR is the precursor to much larger, utility-class LFTRs operating at the 250-300 MWe power generation scale.” Flibe further envisions production of modular units with capital costs in-line with gas turbines.

The benefits to implementation of LFTR technology are seemingly overwhelming.  The technology has relatively small land use footprint compared to energy output, Thorium is abundant and we don’t need much (according to Sorensen a small grain silo of Thorium could power North America for a year and known Thorium reserves could power society for thousands of years), and the technology has built in passive safety – just to name a few benefits.  In addition, however, while LFTR can produce safe, sustainable electricity, lifesaving medical radioisotopes, desalinated water and ammonia for agriculture and synthesized fuels are produced in the process.  In other words, LFTR technology could have other impacts in global energy, medical, agricultural and industrial sectors.

What I haven’t mentioned is that this work is based on Alvin Weinberg’s vision of our energy future as director of the Oak Ridge National Lab from 1955 to 1972.  It’s not a new concept.  Moreover, the Department of Energy has put the burden on industry to lead in the design, development, and implementation of new nuclear energy according to market principles. As attorneys that work with industry to overcome barriers to successful commercialization of emerging technology, we recognize that there are challenges - whether regulatory or otherwise, to deployment and market integration, no matter what the solution is and what the benefits are. We look forward to learning more about Flibe Energy and next steps for private industry at the Global New Energy Summit in Colorado Springs, Colorado, April 9-11, 2012.  To find out more go to http://www.globalnewenergysummit.org/. 

The DoD is Seeking Private Industry Collaboration to Enhance Our Energy and National Security

The DoD needs private industry help to reduce the Armed Forces’ reliance on fuel and enhance our national security.  Leaders from the Department of Defense (DoD), and each branch of the military testified about the defense energy challenge before the House Armed Services Committee on March 29, 2012.  “Over reliance on fossil fuels and connection to a vulnerable electric power grid jeopardize the security of Army installations and mission capabilities.  Investment in energy capabilities, including renewable energy and energy efficient technologies will help ensure the Army can meet mission requirements today and into the future.”  The Honorable Katherine Hammack, Assistant Secretary of the Army for Installations, Energy and the Environment.

Energy impacts every mission in the DoD.  To protect the security of our nation, our armed forces require secure and uninterrupted access to energy.  Key to private industry is that the armed forces have a history of energy innovation and with innovation comes opportunity.  The Navy transitioned from sail to steam in the middle of the 19th Century, stem to oil in the early 20th Century and pioneered nuclear power in the middle of the 20th Century.  “At each of those transitions, there were those who questioned the need, challenged the cost or simply opposed change of any kind,” testified the Honorable Jackalyne Pfannenstiel, Assistant Secretary of the Navy for Energy, Installations and the Environment.

For the DoD, energy security is tied to facility energy.  Facility energy is important for two reasons: (1) cost and (2) mission assurance.  The DoD energy bill is $4 billion annually.  DoD installations support combat operations and serve as staging platforms for humanitarian and homeland defense missions.  “These installations are largely dependent on a commercial power grid that is vulnerable to disruption due to aging infrastructure, weather-related events and a potential kinectic or cyber attack.”  Dr. Robyn, Deputy Under Secretary of Defense, Installations and Environment.
 
The first step is to reduce demand through conservation and improved energy efficiency.  “We share Energy Secretary Chu’s view that ‘Energy efficiency is not just the low-hanging fruit – it’s the fruit laying on the ground,” says Dr. Robyn.  The DoD’s budget for FY13 includes more than $1.1 billion for investments in conservation and energy efficiency.  Under Dr. Robyn’s leadership, the DoD is developing the Enterprise Energy Information Management (EEIM) system that will facilitate the automated collection of standardized facility energy and cost data.  The EEIM vision statement and capability requirements is scheduled for release this spring “so that industry can adapt its commercial off-the-shelf solutions to meet DoD needs.”

Secure energy for installations is another initiative.  DoD is increasing supply of renewable and other forms of distributed (on-site) energy on DoD installations.  “On-site energy is critical to making our bases more energy secure.”  To expand energy generation, the DoD is relying on third-party financing.  “Third party financing makes sense because private developers can take advantage of tax incentives that are not available to federal agencies.”  The Army Energy Initiatives Task Force was established in September 2011 to execute 10+ MW projects at Army installations.  “The Army hopes to develop around one gigawatt of renewable energy on its installations by 2020, and it has solar energy projects underway at Fort Bliss, TX (1 MW), White Sands Missile Range, NM (4.5 MW) and Fort Carson, CO (2 MW).

The DoD is further looking to “next generation microgrids” to address the need for greater energy security directly.  According to Dr. Robyn, “we envision microgrids as local power networks that can utilize distributed energy, manage local energy supply and demand, and operate seamlessly both in parallel to the grid and in “island” mode.” 

"Advanced microgrids are a ‘triple play’ for DoD’s installations.  First, they will facilitate the       incorporation of renewable and other on-site energy generation.  Second, they will reduce installation energy costs on a day-to-day basis by allowing for load balancing and demand response – i.e., the ability to curtail load or increase on-site generation in response to a request from a grid operator.  Most important, the combination of on-site energy and storage, together with the microgrid’s ability to manage local energy supply and demand, will allow an installation to shed non-essential loads and maintain mission-critical loads if the grid goes down."

The vision for microgrids is still evolving and the opportunity for companies to participate in the discussion is now.  The DoD has commissioned 3 studies from outside experts relating to microgrids.  One, Business Executives for National Security (BENS), a non-profit, is analyzing alternative business models for the deployment of microgrids on military installations.  As part of that analysis, BENS is looking at the appropriate scale and scope for an installation microgrid (e.g., should it stop at the fence or include critical activities in the adjacent community?) and at the challenges to widespread deployment. 

The DoD is further looking to leverage advanced technology relevant to facility energy.  “Emerging technologies offer a way to cost effectively reduce DoD’s facility energy demand by a dramatic amount (50% in existing buildings and 70% in new construction) and provide distributed generation to improve energy security.”  Under Dr. Robyn’s leadership, the DoD created the Installation Energy Test Bed to help firms overcome the barriers that inhibit innovative technologies from being commercialized and/or deployed on military installations.

The DoD intends to rely heavily on third parties to finance its investments in energy efficiency (ESPCs and UESCs) and renewable energy (PPAs and Enhanced Use Leases).   There are, however, clear challenges to using these models.  The American Council of Renewable Energy (ACORE) is holding a series of military forums to identify and work around road blocks and to ensure that the expectations from the private industry side and the DoD side are clear.  The objective is to enable our armed services to embark on projects much earlier than if they had to go through normal planning and budgeting systems.  The ability to remove roadblocks lies within discussions between ACORE, DoD, related and supporting agencies and the private sector.  Through collaboration these challenges can be addressed and ACORE and the DoD is seeking private industry input.

As a member of the ACORE committee I am working with ACORE and the DoD to identify challenges and develop strategies to streamline the transaction space for private industry.  Feel free to contact me if you would like to discuss.  I can be reached at kellydlt@algattorneys.com.