Department of Defense. Installation Energy Resilience

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1 Department of Defense Installation Energy Resilience Lisa A. Jung DASD (Installation Energy) OASD(Energy, Installations and Environment) 19 June 2018

2 Installation Energy is Energy that Powers Our Military Installations It is now undeniable that the homeland is no longer a sanctuary. America is a target, whether from terrorists seeking to attack our citizens; malicious cyber activity against personal, commercial, or government infrastructure attacks against our critical defense, government, and economic infrastructure must be anticipated. - National Defense Strategy, 2018 Since at least March 2016, Russian government cyber actors hereafter referred to as threat actors targeted government entities and multiple U.S. critical infrastructure sectors, including the energy, nuclear, commercial facilities, water, aviation, and critical manufacturing sectors. - Alert TA18-074A, FBI/DHS, US Computer Emergency Readiness Team (CERT) DoD s Built Infrastructure Over 580,000 total assets ~ 279,000 buildings Over 2.3 billion square feet ~ 160,000 non-tactical vehicles ~ $3.5B energy cost in FY17 - single largest base operating cost Bases dependent on commercial electric grid Energy Resilience is paramount to mission assurance 2

3 DoD Installation Energy Priorities Administration mandate: Every DoD energy investment must have a mission benefit Laser focus on Energy Resilience will ensure DoD installations are prepared for and able to quickly recover from energy disruptions that impact mission assurance Comprehensive Installation Energy Plans Focus on priority installations and critical support infrastructure Optimizing use of distributed energy to improve installation energy security and lower costs Optimizing installation energy and water use on DoD installations will reduce high operating costs (~$3.5B/year) and enhance energy resilience Cyber securing mission critical Facility Related Control Systems (FRCS) will enhance readiness and mission assurance 3

4 4 What is Energy Resilience to DoD? Newly defined in 10 U.S.C 101, Energy Resilience is the ability to avoid, prepare for, minimize, adapt to, and recover from anticipated and unanticipated energy disruptions in order to ensure energy availability and reliability sufficient to provide for mission assurance and readiness, including task critical assets and other mission essential operations related to readiness, and to execute or rapidly reestablish mission essential requirements. Measuring energy resilience at DoD installations boils down to ONE, binary question - Does the mission have the power it needs? YES What Where When Mission Availability = NO UUUUUUUUUUUU UUUUUUUUUUUU + DDDDDDDDDDDDDDDD

5 DoD Installation Energy Resilience Objective DoD installations have available, reliable, quality power to support their critical missions Focused on meeting the National Defense Strategy Rebuilding military readiness Centered on mission-based priorities w/targeted metrics Implements diversified generation sources/technologies and integrates cybersecurity protections Strengthening alliances and attracting new partners Bolsters DoD-internal and interagency DOE/DHS communication to strengthen data gathering and collaboration with industry partners Works toward a shared approach for resolving challenges for the grid issues inside and outside of DoD control Reforming the Department s business practices Uses scenario-based planning, modeling, and quantitative energy assessments to evaluate challenges of complex threats, to mitigate risk, and to verify progress against mission-based metrics Energy Resilience efforts aimed at solutions that are: Prioritized by Mission, Informed by Metrics, and Validated by Results. 5

6 Energy Resilience - Actions Rebuilding Military Readiness Defining the Expectations for Success DoDI , Installation Energy Management Installation Energy Plans Energy Resilience Strategy & Planning Guidance Executing Against Expectations Third Party Financing Reporting Guidance Distributed Energy Projects Guidance Updated Installation Energy Plans Guidance Utilities Privatization Guidance United Facility Criteria Maximizing the Investment Operations, Maintenance, and Testing Guidance (Published) Measurement & Verification Guidance Demand Response Guidance Strengthening Alliances & Attracting New Partners Within DoD DoDI Joint Mission Assurance Assessments input Installation Energy Wprking Groups Within USG Intra-agency Input to DoD s participation in o Defense Critical Energy Infrastructure working group (DCEI WG) o DHS Critical Infrastructure Partnership Advisory Council (CIPAC) o Energy Government Coordinating Council (EGCC) Energy Exchange Training Event Congress Improvement to the Annual Energy Management & Resilience (AEMR) Report With Industry EGCC o Electricity Subsector Coordinating Council (ESCC) o Oil and Natural Gas Subsector Coordinating Council (ONGSCC) Reforming Department Business Practices Analysis Lifecycle Cost Assessment (LCCA) o Analysis of Alternatives (AoA) o Defining the Cost of Infrastructure AEMR Energy Resilience Assessments / Energy Resilience Reliability Exercises (ERAs/ERREs) via MIT-LL Tools Energy Resilience Assessment (ERA) Tool o Incorporating into ERCIP, IEP, ER Guidance Defense Energy Resilience Bank (DERB) o Alignment of DoD project risk and 3 rd party financial risk Energy Resilience Working Group Wargames and Table Top Exercises 6

7 DoD Installation Energy Planning Installation Energy Plans (IEP) Guidance - Energy Resilience and Cybersecurity Update - Signed May 30, 2018 Comprehensive planning document - addresses multiple aspects of energy & water management Deliberate focus on energy/water resilience and cybersecurity IEPs required for ALL installations: Priority installations and critical support infrastructure first ER requirements defined by mission owner Solutions developed and implemented by installation Leverages energy data to inform optimum solutions Informed by stakeholders: mission owners, installation leadership, communities, industry Prioritized on critical missions Energy performance measures inform updates to IEPs and future investments IEPs leverage all DoD authorities to maximize benefit to mission readiness Includes funding/acquisition strategy (ERCIP, MILCON, ESPC/UESC, UP, ) Creates synergy between current initiatives and future projects Optimizes use of distributed energy to improve installation energy security and lower costs Drives long term strategic view and plan DoD Installation Energy Plans are living documents which drive solutions that are: Prioritized by Mission, Informed by Metrics, and Validated by Results 4

8 How You Can Help 1) Understand the Strategy 2) Align at all levels with the Strategy in mind Energy Sector Government Coordinating Council - Electricity Subsector Coordinating Council - Oil and Natural Gas Coordination Council Installations - Installation Commanders & Staff - Adjacent Communities & Governments 87

9 Enhancing Resilience at Army Installations Marc Kodack Office of the Deputy Assistant Secretary of the Army for Energy and Sustainability 19 June 2018 Assistant Secretary of the Army (Installations, Energy & Environment)

10 Outcome Mission assurance Reduce installation readiness risks Assistant Secretary of the Army (Installations, Energy & Environment) 2

11 Approach Installation energy and water security policy Goal: 14 day minimum supply of energy and water for critical missions Goal: energy and water to sustain all missions Installation energy and water security plan Assistant Secretary of the Army (Installations, Energy & Environment) 3

12 Planning Planning includes data collection, project identification then implementation Baseline and future conditions Assess risks, opportunities, and identify gaps Diversification and redundancy Sources (resource and technology), provider, physical Assistant Secretary of the Army (Installations, Energy & Environment) 4

13 Enhancing Resilience at Army Installations Marc Kodack Office of the Deputy Assistant Secretary of the Army for Energy and Sustainability 19 June 2018 Assistant Secretary of the Army (Installations, Energy & Environment)

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