GTH Energy & Natural Resources Law Blog

Recognizing that continued reliance on fossil fuels creates severe threats to military security, the Department of Defense has launched an aggressive program to power military bases using renewable energy and to find non-fossil alternatives such as biofuels for the nation's naval and warplane fleets, as we have previously reported.. Two recently-announced opportunities demonstrate the potentially enormous stakes involved.

First, the U.S. Navy recently announced an RFP to build "smart grid" integrated electronic controls for energy, water, and maintenance systems at Naval Station Everett, Naval Base Kitsap Bangor, the Jim Creek Naval Station, and the Pacific Beach Naval Station, all located here in Western Washington. The Navy estimates it will spend $5 to $10 million on the contract. The contract is subject to a special set-aside for small businesses and is limited to companies from the Pacific Northwest Region. Initial responses to the RFP are due on March 13, 2013.

Continue reading "Major Smart Grid and Solar Opportunities From the Department of Defense" »

To support the twin goals of increasing the nation's energy security and promoting development of renewable energy resources, the Department of Defense ("DOD") and Department of the Interior ("DOI") recently signed a Memorandum of Understanding ("MOU") focusing on 13 million acres of federal land that have been "withdrawn" for military purposes, as well as lands on the Outer Continental Shelf ("OCS") suitable for offshore wind development. By clarifying jurisdictional lines and administrative responsibilities, the MOU helps ease renewable energy development, especially for wind, solar, and geothermal power.

In the West, millions of acres of federal land have been "withdrawn" from general use, and instead have been reserved for military uses, principally military bases and vast training ranges such as those in central Washington, southwest Idaho, southern Nevada, and eastern California. The MOU promises cooperation between DOD and DOI to encourage development of geothermal, solar, and wind resources on these lands. Without such cooperation, developing these lands can be a daunting prospect. For example, in may cases, withdrawn lands under DOI jurisdiction are interspersed with DOD-owned lands, resulting in different legal regimes governing immediately adjacent parcels. If these obstacles can be overcome, the potential pay-off is huge. For example, the U.S. Army Corps of Engineers has estimated that military bases in the continental U.S. have the potential to produce between 630 and 926 GW of electric power from geothermal resources.

Continue reading "More Military Movement: Department of Defense and Department of Interior Sign MOU Encouraging Development of Renewable Energy on Federal Lands" »

On August 7, the U.S. Army issued a long-anticipated Request for Proposals, seeking up to $7 billion worth of renewable energy to serve U.S. Army bases. The RFP is part of larger initiative launched by the Department of Defense ("DOD") to produce one gigawatt of power on defense bases by 2025. Responses to the RFP are due by October 5, 2012. The Army will accept comments on the RFP from interested parties through August 24.

The RFP seeks offers from renewable energy producers for projects to be constructed on private lands or lands controlled by the DOD. Rather than seeking ownership of the generation projects, the Army will simply purchase output from the projects under Power Purchase Agreements ("PPAs") similar those generally used in the utility sector. The project owner will be expected to finance, construct, own, and operate the generator.

Continue reading "The Army Opens a New Front in the Battle for Renewables: A $7 Billion RFP for Renewable Energy to Serve Army Bases" »