The Department of Defense is the largest energy consumer in the federal government, using over 5 billion gallons of fuel in 2010. As fuel prices rise, the DoD faces challenges to increase energy efficiency without harming its mission or personnel quality of life. The document discusses how the fully burdened cost of fuel, including delivery, is much higher than the base fuel cost. It also outlines the DoD's goals to improve energy efficiency, increase use of renewable energy to 25% by 2025, and reduce overall energy consumption in accordance with various Energy Independence acts.

1. Steven Ross
Group 2 Coalition B
Department of Defense

2. Department of Defense Energy Plan
The Department of Defense (DoD) is currently the largest energy consumer in
the federal government, with the U.S. armed forces alone using more than
five billion gallons of fuel in 2010. As fuel prices rise, the DoD faces the
challenge of increasing energy efficiency without jeopardizing its mission or
reducing the quality of life for DoD personnel. Military operations require
vast amounts of energy for both machinery and individual soldiers to be
operationally effective. The transportation of energy to our soldiers is
expensive and supply lines are often vulnerable to attack. The DoD is focused
on reducing its energy demand in order to make its energy consumption
patterns more consistent with our nation’s strategic goals. The DoD
recognizes its need to reduce its demand for energy and improve the
efficiency of its energy use to improve its effectiveness, while reducing
military risks and costs. One aspect of this is analyzing the actual cost of fuel
at its final destination, taking into account the cost of fuel
transportation, and thus increasing the efficiency of fuel use and delivery.
This also means that the DoD must diversify its sources of energy in order to
ensure a stable supply for its military needs.

3. Fully Burdened Cost of Fuel
The direct cost of fuel in FY2007 Operations was approximately $12.6
billion. However, this does not take into account the indirect costs of
delivering fuel which include airborne delivery, refueling supply
vehicles, and protection of supply vehicles. For example, air delivery of
fuel that costs $3.04 per gallon actually costs closer to $42 per
gallon, almost 14 times the base cost. On April 10, 2007, the DoD began
a pilot program to take into account the fully burdened cost of fuel in
order to increase energy efficiency. In the same memo, by the Under
Secretary of Defense (Acquisition, Technology and Logistics), it was
stated that, “Effectively immediately, it is DoD policy to include the fully
burdened cost of delivered energy in trade-off analyses conducted for
all tactical systems with end items that create a demand for energy and
to improve the energy efficiency of those systems, consistent with
mission requirements and cost effectiveness.”

4. Renewable Energy Goals
Energy efficiency legislation has laid an outline for the DoD to follow in achieving
its energy efficiency goals.
•The Energy Independence and Security Act of 2007 mandates a 30% reduction in
energy use in federal buildings by 2015 relative to 2005 in Section 431 and a 100%
reduction in fossil energy use in new federal buildings by 2030 in Section 433.
•The National Defense Authorization Act for FY2007 requires in Section 2852 that
the DoD make it its goal to produce or procure at least 25% of its electric energy
consumption from renewable sources by 2025 and that the DoD must use energy
efficient products to the maximum extent practicable in new facility construction.
•The National Defense Authorization Act for FY2008 authorizes contract periods of
up to 10 years for purchasing electricity from renewable sources.
•The National Defense Authorization Act for FY2009 directs the appointment of an
energy oversight director for training, moving, and sustaining military forces and
required that energy production projects with leases exceeding 20 years must be
certified as being consistent with DoD performance goals.

6. Background Images:
Slide 2: http://www.hfetag.com/images/dod_logo.gif
Slide 3: http://www.amc.af.mil/shared/media/photodb/photos/070207-F-9629D-881.jpg
Slide 4: http://electrictreehouse.com/wp-
content/uploads/2011/01/US_army_solar_tent_power_shade.jpg
Slide 5: http://www.dailyenergyreport.com/wp-content/uploads/2011/01/US-Military-
Energy1.png
Slide 2: DoD Energy Managers
Handbook, (http://www.wbdg.org/ccb/DOD/DOD4/dodemhb.pdf)
Department of Defense Energy Policy, (http://www.nellis.af.mil/shared/media/document/AFD-
090501-099.pdf)
Slide 3: Memo Fully Burdened Cost of Fuel Pilot
Program, (http://www.acq.osd.mil/se/docs/USD-ATLMemo-Fully-Burdened-Cost-Fuel-Pilot-
Program-10Apr07.pdf)
Slide 4: Department of Defense Facilities Energy Conservation Policies and
Spending, (http://www.fas.org/sgp/crs/natsec/R40111.pdf)
DoD Energy Demand: Addressing the Unintended
Consequences, (http://www.acq.osd.mil/se/briefs/20080912-ODUSD-AT-Energy-Demand-Brief-
DiPetto.pdf)