1. Contract Connections: Energy & Sustainability
Maryland Department of Business & Economic Development
Robert B. Eidson
14 May 2012
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2. Introduction
Lead Associate with Booz Allen Hamilton
Supporting Army’s Energy Initiatives Task Force (EITF)
Established by Secretary of the Army in Sep 2011 to act as the central
management office for large-scale renewable energy project development on
Army land through private financing
Energy Services Company experience
Lead project developer with Chevron Energy Solutions on the Fort Detrick
Central Utility Plant, Frederick, MD
Managed 6 other renewable or CHP energy transactions on federal land with
Army, VA, Navy, DHS, NIH/DHHS, State of TN, State if IL, and State of MD
Director, Redevelopment of Pershing Hall, Paris, France (VA’s first EUL)
Managed energy business VA’s enhanced-use leasing
(EUL) program
Veteran of the U.S. Marine Corps
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3. Booz Allen Hamilton
Leading management and technology firm
Partners with clients to solve their most important and
complex problems, making their mission our mission
Serve every military service of the DoD and many civilian
departments and agencies
Have worked with the State of MD and University of MD
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4. Best Practices in the Federal Energy & Sustainability Field
Developing a Sustainable Energy Strategy:
Energy efficiency: reducing cost and consumption (demand-side improvements)
Renewable/clean energy production: on-site. renewable energy generation,
backed-up by utility interconnection or on-site, back-up generation through
private financing (supply-side improvements)
Leveraging underutilized/unused land to obtain energy generation and
energy efficiency assets that enhance mission and energy security
Fort Detrick, Frederick, MD: Army’s first energy-based EUL project providing
high quality power and thermal energy, with 99.999% up-time to National
Interagency Bio-defense Campus
Aberdeen Proving Grounds, MD: Army’s largest commercial building PPP for
tenant space and enhanced mission
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5. Lessons Learned in Contracting with Federal Government
Who’s buying the energy and creditworthiness of Buyer?
Single most important issue with regard to financing energy projects with any
Government – Federal, State or Municipal)
Who is warranting the delivery of the project and the energy?
Second most important issue in financing transaction
Aberdeen Proving Grounds, MD: Army’s largest commercial building PPP for
tenant space and enhanced mission
Do your own due diligence before going to market
How is the mission enhanced or otherwise affected?
Economics: What do you pay now for energy; what do you plan to pay?
Who are the off-takers of the energy?
Are you offering a suitable and clean site (NEPA)?
What are the interconnection and integration issues?
Regulatory issues: RPS, permitting, legal authorities, etc.
What is your acquisition strategy?
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6. Industry Forecast
Federal Government’s energy market is strong
There will be much demand for private sector financing
Opportunities for PPPs with municipal and interested State markets near military or
federal installations
Other military services considering the Army’s EITF approach
States offering the best Renewable Portfolio Standards (RPS) will have
the advantage
Financial markets and energy development industry primed for
opportunities
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7. Areas of Collaboration
State, County and Municipal governments have similar requirements
and challenges as the Feds
Requirements for energy efficiency and renewable energy
Need for Waste-to-Energy solutions for municipal solid waste and wastewater
treatment
Community-based approaches can be pursued through the Federal
Grant & Cooperative Agreement Act (31 USC 6305)
An executive agency shall use a cooperative agreement as the legal instrument reflecting a
relationship between the United States Government and a State, a local government, or other
recipient when—
(1)the principal purpose of the relationship is to transfer a thing of value to the State, local
government, or other recipient to carry out a public purpose of support or stimulation
authorized by a law of the United States instead of acquiring (by purchase, lease, or barter)
property or services for the direct benefit or use of the United States Government; and
(2)substantial involvement is expected between the executive agency and the State, local
government, or other recipient when carrying out the activity contemplated in the agreement.
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8. Questions?
Robert B. Eidson
Lead Associate
Booz Allen Hamilton/Arlington, VA
Senior Energy Advisor/Contractor
Army Energy Initiatives Task Force (EITF)
Office of the Deputy Assistant Secretary (Energy & Sustainability)
Eidson_robert@bah.com
423-773-1496
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