developing renewable energy projects on dod land

2011 ADC WINTER FORUM | PAGE 2

Developing Renewable Energy Projects on DoD landAngela Maybrier, Booz Allen HamiltonGrand Hyatt/San Antonio TX

Wednesday, February 16th 2011


AgendaOverviewEUL Program – Developer’s Perspective

Site Selection Challenges Road Blocks to Success

Energy EUL (E-EUL) Dynamics Goals Incentives Procurement Options

Key Drivers

Recommendations and Take-Aways

Questions & Answers


Overview Developments on DoD land have both upsides

and downsides vs. other land use tools Every EUL competes with every other land

and/or energy deal in its market Developer and Land Owner have similar

motivations Gaining the most value from the land asset

as quickly as possible Development deal is not an emotion, it’s a

number – does the project pencil?


Site Selection and Development Challenges Incomplete NEPA and/or unrealistic timelines Limiting development options

Size – parcels of land too small, non-contiguous or unusual perimeter

Location – interior of installation brings security, mission impact, or marketability into question

Proximity to necessary infrastructure for type of development

Lack of key stakeholder buy-in participation Commercial viability


Roadblocks to Success Multiple Stakeholder Interests

Potential opposing interests Property Valuation

Land has no intrinsic value Value = Land’s ability to generate cash flow Cost should be discounted by how much investment

needs to be made and the risk associated with the project

Time is Money – Certainty of Schedule Upfront payment and delayed approval limits

developers’ ability to obtain necessary ROI


Energy EUL (E-EUL) - Dynamics Define Goals:

Revenue or Purchase of Power Energy Independence Executive Order Requirements

Incentives Tax Credits Tax-Exempt Bonds Renewable Energy Credits

Community Involvement Local University Local Utility Local Economic Development Corporation


Additional Procurement Options


Key Drivers – EUL and E-EUL Clearly Identified Project Champion

Champion for both the real estate/lease component as well as potential PPA negotiations

No ambiguity about NEPA or other environmental and permitting transmission issues – bad news does not get better with time

Apparent unified support for project through the Chain of Command

Market compatibility/desirability of location


Recommendations Complete Finding of Suitability to lease (FOSL), and

supporting documents for necessary NEPA process early Pre-educate Deal Team on deal challenges

Consistency in selection criteria Make sure ALL stakeholders know what is proposed Establish timelines based on key milestones

Development concepts synergistic to installation mission Local Community Support

Quality not Quantity of projects Energy-related projects RFQ for Regional Developer Partner


Key Take-Aways Flexibility – nothing else can make a deal work or fail

faster Deal Teams need to understand market fluctuations Realize project marketability can change during

Business and Lease Plan Process and/or Lease and Management Plan Process

Alignment of financial interests Realistic financial expectations Continuous dialog and trust Timing and schedule Quality of opportunity and development team

QUESTIONS + ANSWERS

Contact: Angela G. MaybrierBooz Allen HamiltonTel: 210-932-5604Mobile: 210-334-1741Email: [email protected]

developing renewable energy projects on dod land

Documents