Panel 1: Energy & Sustainability

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1 Panel 1: Energy & Sustainability

2 Mike Giorgione RDML, CEC, USN (Ret.) Director of Federal Services, Geosyntec Consulting Commander NAVFAC Pacific Commanding Officer NAVFAC Southwest Navy Public Works Center, San Diego Camp David M.S. Civil Engineering, Penn State B.S., Ocean Engineering, US Naval Academy P.E., Pennsylvania

3 Len Hering RADM, USN (Ret.) Executive Director, California Center for Sustainable Energy US Navy (32 years) Base Operations Facility Support (emphasis on sustainability and the environment) Vice President, University of San Diego, Business Services and Administration (2009) Founder, San Diego Regional Sustainability Partnership Awards 2005 Presidential Award for Leadership in Federal Energy Management 2010 Energy All-Star Award, Outstanding Sustainable Organization, CCSE

4 Grant Frost Manager of Environmental Strategy and Sustainability, SDG&E (1986-Present) Working with External Environmental Stakeholders Implementing SDG&E s Environmental Excellence Goals Oversight of the Environmental Strategy Staff Held Key Environmental and Governmental Relations Positions M.S., Environmental Administration, Anderson School of Management, UC Riverside B.A., Political Science, UC Santa Barbara

5 ENERGY & SUSTAINABILITY The Society of American Military Engineers Orange County & San Diego Posts Thursday, July 18, San Diego Gas & Electric Company. Trademarks are property of their respective owners. All rights reserved. Some materials used under license, with all rights reserved by licensor.

6 Where we came from Set first appliance energy efficiency standards Launched energy efficiency programs Passed California Endangered Species Act Adopted decoupling Established Public Interest Energy Research (PIER) program Formed California Energy Efficiency Collaborative Created Renewables Portfolio Standard Adopted California Energy Action Plan, establishing loading order Expanded energy efficiency investment policies, including AB 2021 and SB 1037 Established UC Davis Energy Efficiency Center Passed Global Warming Solutions Act (AB 32) Adopted California s first Long Term Energy Efficiency Strategic Plan Required utility Smart Grid deployment plans Initiated Energy Efficiency Workforce Sector Strategy design Held first CPUC Sustainability En Banc 1970s 1980s 1990s Passed California Environmental Quality Act Introduced tiered rate structure Enacted first Low Emission Vehicle Program Issued first Integrated Energy Policy Report Established Emission Performance Standard (SB 1368) Adopted statewide Climate Adaptation Strategy Initial Cap & Trade Auction Adopted carbon adder Launched California Solar Initiative 6

7 Where we re headed Mandatory Time of Use Rates for Targeted Customers Renewable Portfolio Standard: 33% AB32: Cap and Trade Compliance Obligation Electric Utilities & Large Industrial Facilities AB32: Cap and Trade Compliance Obligation Distributors of Transportation, Natural Gas, and Other Fuels California Solar Initiative: 3,000 MW AB32: 1990 Levels GHG 100% Zero Net Energy Residential Construction 100% Zero Net Energy Commercial Construction Executive Order : 80% Below 1990 Levels GHG Global Reporting Initiative: G4 Guidelines and Material Issues SASB: Renewable Resources & Alternative Energy Material Issues Ceres Roadmap for Sustainability Milestone 7

8 AB 32 Climate Change Programs 8

9 SDG&E - Renewable Energy Portfolio GHG Reduction in Electricity Distributed SDG&E is a leader in acquisitions of renewable energy 20% in 2012, up from 1% in

10 SDG&E - Renewable Energy Challenges 10

11 Chris Parry Energy Program Manager, NAVFAC SW Project Management Branch Chief, USACE, Europe District ( ) Capital Improvements Team Lead, NAVFAC SW ( ) Project Manager, NAVFAC SW ( ) Cost Engineer, NAVFAC HQ ( )

12 Navy Region Southwest Energy The "Green Hornet" -- F/A-18F Super Hornet 12 2/28/2013

13 Discussion Topics 1. DoN Energy Goals 1. Large Scale Renewable Energy (privately owned on DoN land) Constrains & Opportunities Asset or Liability? 2. Micro-Grids Asset or Liability? Pathway to determine 13 2/28/2013

14 Strategic Objectives & Policy Navy s Five Major Energy Goals Reduce Energy Consumption & Intensity By 2020, USN will reduce energy consumption & intensity by 50% from a 2003 baseline. Power from Renewable Sources By 2020, 50% of total ashore energy will come from renewable sources. Net-zero installations By 2020, 50% of installations will be net-zero consumers. Reduce Non-Tactical Petroleum Use By 2015, reduce petroleum used in commercial vehicle fleet by 50% from a 2009 baseline. Increase Energy Security Provide reliable, resilient and redundant power to increase the energy security of mission critical assets. Policy, guidance and directives shape the Navy s Energy Strategy 14 2/28/2013

15 NAWS China Lake Solar PPA 29,000 MWh annually 30% annual requirement 50-70% summer day peak 70-90%+ winter day peak 20 Year PPA (First in Federal Gov t) Fixed Price PPA Below Utility Rate Buy-American Compliant Modules High Efficiency Modules maximized land use Panels installed on ~118 acres Term: 20 years (10 USC 2922(a) ) Technology: Single Axis Tracking Solar Array Capacity: MW Project Site 15 2/28/2013

16 Power Purchase Agreement Execution June-Dec March 2008 March 2009 Market Research Site Selection - NEPA RFP Development RFI Issued RFP Issued July 2009 February 2010 April 2010 May 2011 September 2011 November 2011 September 2012 Competitive Bids Due Solar MAC Award Task Order Discussions PPA Negotiations Complete OSD Approval & Task Order Award Financing Closed Interconnect Agreement Construction Begins Construction Complete 16 2/28/2013

17 What Drives Renewable Energy Project Viability Asset or Liability? Project Risks Off-taker Interconnection Transmission Land DoN Community Grid Industry Others Installation Utility Rate Payer Environment Authorities & Contracting Regulatory Legislative Assignment Term Length Contract clauses Economic Drivers Rates Incentives/ Rebates Resource 17 2/28/2013

18 Micro grid Liability or Asset? Grid Down X Control Ctr On-Site Renewable with Battery Backup Backup Diesel Generation Asset or Liability? DoN Installation Community Utility Grid Rate Payer Industry Environment Others Base Load Generation Critical Circuits on Isolatable Loop Critical Loads (in Red) Share Distributed Generation Resources with Secondary Loads (in Yellow) on Critical Circuits 18

19 Pathway to a vible micro grid What would be possible if there was transparency between generation, the grid and consumption? 1. Microgrid Strategy Development for Navy Application (2-3 year pilot program) Expansion for advanced command, control, and analytics. Meaningful Demand Response Programs and Capability Active load management (Daily market participation) Proof of Concept 2. Regulatory and Legislative Engagement Rate Tariff Participation, Market access Strategic partnerships 3. Integrated electrical generation sources Renewables, Purchased Electricity, Co-Gen, Emergency Power Sources Leverage energy storage for renewable leveling 19

20 NAVFAC SW & CNRSW Enabling the Warfighter 20 2/28/2013

21 Robert J. Gilleskie Regional Energy Manager, MCIWEST Director of Engineering, California Center for Sustainable Energy (CCSE) ( ) Energy Efficiency / Sustainability Project Manager ( ), DMJM Harris Energy Manager, Naval Base Point Loma ( ) San Diego Gas & Electric (SDG&E) ( ) M.S.E.E., Purdue University B.S., U.S. Naval Academy

22 CAMP PENDLETON DAY 2013 The Role of Microgrids in the MCIWEST Energy and Water Strategy

23 Diverse Mission, Geography, and Climate at MCIWEST Peak Demand: 0.80 MW Average Demand: 0.46 MW Current RE Gen: 0.04 MW 2015 RE Gen 0.52 MW Peak Demand: 44 MW Average Demand: 26 MW Current RE Gen: 6.2 MW 2015 RE Gen: 15 MW Peak Demand: 4 MW Average Demand: 1.6 MW Current RE Gen: 0.17 MW 2015 RE Gen: 0.31 MW Peak Demand: 3.1 MW Average Demand: 1.8 MW Current RE Gen: 3.6 MW 2015 RE Gen: 3.6 MW MCRD San Diego Peak Demand: 7.5 MW Average Demand: 3.2 MW Current RE Gen: 1.8 MW 2015 RE Gen: 2.4 MW MCAGCC Peak Demand: 14 MW Average Demand: 7 MW Current RE Gen: 4.2 MW 2015 RE Gen: 6.2 MW Peak Demand: 28 MW Average Demand: 13 MW Current RE Gen: 4.8 MW 2015 RE Gen: 7.2 MW Peak Demand: 15 MW Average Demand: 10 MW Current RE Gen: 1.2 MW 2015 RE Gen: 2.0 MW Slide: 23

24 MCIWEST Energy and Water Strategy Driven by Marine Corps Installations (MCICOM) Energy and Water Strategy Defining goals of the Strategy Energy and Water Security (Primary) Energy and Water Efficiency Development of microgrids prominent in achieving Energy Security Strategy provides roadmap to microgrid development and energy security

25 Microgrid Definition A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode. U.S. Department of Energy Microgrid Exchange Group (2010)

26 Microgrid Contribution to Energy Security Acts of God, e.g., lightning, earthquakes Excessive electrical demand Cyber terrorism Equipment failure, e.g., transformers Transmission congestion Quality of power

27 Microgrid Contribution to Energy Efficiency Demand Response Reduction of load in exchange for payment Operation in island mode Economic Dispatch Grid power Cogeneration Renewable Energy Fuel switching Conservation Voltage Reduction (CVR) Utility difficulty on long feeders Facilitated with a microgrid

28 MCIWEST Microgrid Activities MCAS Miramar Energy Conservation Investment Program (ECIP) funding awarded Only ECIP project for USMC Considering sustainment costs MCAGCC 29 Palms Phase II of project with GE Cogeneration significant component MCB Camp Pendleton Recently awarded $1.7MW Public Interest Energy Research (PIER) by California Energy Commission Characterized as Fractal Grid