Académique Documents
Professionnel Documents
Culture Documents
Energy Policy
journal homepage: www.elsevier.com/locate/enpol
a r t i c l e in f o
a b s t r a c t
Article history:
Received 6 August 2008
Accepted 3 March 2009
Available online 21 April 2009
The present work describes the military impact of improved efciency and then highlights existing
technological, political, and nancial barriers for improving overall energy efciency. As the largest user
of energy within the US government, the Department of Defense (DOD) is rightly concerned that any
disruption to the nations energy supply may have an extremely adverse impact on its military
capabilities. The total solution to providing energy security will be multi-faceted with progress required
on many fronts. Increasing the use of renewable energy sources and improving energy storage
capabilities are gradually creating a positive impact, but investing in improving the overall efciency of
the military effort provides both immediate and long-lasting payback. One might suppose that a
decrease in the energy used by the DOD should lead to a decrease in military capability, but historical
data proves otherwise. It is shown that the military has additional impetus, compared to civilian
consumers, to pursue energy-efciency improvements. Many tools are available to help the DOD along
this path, yet there remain obstacles which must rst be identied and analyzed as discussed herein.
Published by Elsevier Ltd.
Keywords:
Energy efciency
Military
Financing
1. Introduction
In Fiscal Year 2006 (FY06), the Department of Defense (DOD)
was responsible for 80% of the energy used by the US government
and almost 1% of the nations total energy use (EIA, 2007). Thus,
the DOD has a large vested interest in maintaining a stable and
secure supply of the energy it needs to accomplish its mission.
This notable market share also translates into a unique ability to
help shape the future of how the US generates, transports, stores,
and uses various energy sources. Given the current volatility and
uncertainty in the fossil-fuel market, it is imperative that the DOD
nd ways to insulate its mission-effectiveness from these energy
price uctuations. The scale of the problem is mind-boggling
when one considers that the DOD used 844 trillion British thermal
units (Btus; 1 Btu 1055 J) of energy in FY06 (EIA, 2007) which is
roughly equivalent to the usage of a country such as Bulgaria,
Denmark, or New Zealand (BP, 2007). It is therefore useful to
examine potential energy security solutions on a more manageable scale. Solutions can be classied as follows: (1) develop and
eld new primary energy sources that do not rely on petroleum
and are preferably renewable, (2) reduce consumption through
conservation, and (3) improve the efciency of energy use so that
more mission is accomplished per unit of energy input.
$
Disclaimer: The views expressed in this paper are those of the author and do
not reect the ofcial policy or position of the US government or the Department
of Defense.
E-mail address: ryan.umstattd@us.af.mil
ARTICLE IN PRESS
R.J. Umstattd / Energy Policy 37 (2009) 28702880
itself does not provide insight into possible sectoral or environmental considerations, it can be stated that the economy is
literally doing more with less by increasing the energy efciency
of doing business. This factor of two improvement serves as a role
model for potential DOD advances in energy efciency. Of course,
the DOD is not in the business of making wealth or even a
product, so its overall efciency is more difcult to dene much
less calculate. The DOD has many tasks that require large amounts
of energy such as transporting an entire infantry division across
the Atlantic Ocean over the span of several days. Such energyintensive tasks can still be considered efcient as long as the
desired task is accomplished with only minimal waste. To further
rene this study, the scope is limited to the energy used to keep
facilities running. In FY07, buildings and infrastructure accounted
for 26% of the energy used by the DOD at a total cost of $3.4B
(DUSD(I&E), 2007). For this signicant portion of the energy
budget, the calculation of efciency becomes more straightforward: how much energy per square foot of facility space is needed
to stay in operation? The desired end state is to maximize the
productivity of the people while minimizing the energy required
to sustain their working environment.
At present, there exist many energy-efcient building technologies that when combined using a holistic system approach, have
resulted in buildings with near-zero net energy use averaged over
a calendar year (ORNL Review, 2007, pp. 25). By combining
technologies such as solar panels, geothermal energy, consolidated utility walls, structural insulated panels, controlled ventilation, and advanced exterior nishes (ORNL Review, 2007, pp. 67),
both ofce buildings and residential homes can lower their energy
needs such that they are capable of generating much of their
required energy input on-site. As the DOD looks at its current
infrastructure and plans for future facilities, how can it best take
advantage of these potential improvements in energy efciency?
The method of the present study is to contrast a survey of DOD
energy use data and DOD energy policy documents against the
backdrop of commercial/industrial energy use and government
energy policy as presented and studied in the both the open and
technical literature. By identifying the overlaps and disparities
between the energy perspective of the DOD and other large
organizations, the aim of the study is to provide new insights that
may be of use to future military energy policy. These insights are
limited in scope to those that apply to improving energy efciency
within DOD facilities. The paper begins in Section 2 by rst
examining historical trends in DOD energy usage and looking for
relevant comparisons. Section 3 then presents the energy problem
from the particular DOD perspective and describes several key
military benets of improved energy efciency in areas such as
logistics and overall force effectiveness. Because of the size and
complexity of the issue, Section 4 is devoted to an examination of
the barriers that obstruct the adoption of existing energyefciency improvements specically within DOD facilities. Identifying these current impediments is a rst step towards nding
ways to overcome them. As described herein, the development of
sustainable DOD facilities will not only reduce energy use and
external dependence, but will also diminish the total logistics tail
thereby improving military capability. Thus, sustainability
through improved energy efciency is a force multiplier that can
enhance military effectiveness in the face of shrinking access to
conventional energy resources.
2871
ARTICLE IN PRESS
2872
1.5
Carter
Reagan
~ 3.1 Million
Bush
Clinton
450
# of DOD
Personnel
Bush
1.4
$B
QBtu
1.3
1.2
400
1.1
1
0.9
350
0.8
Gulf War I
Recovery /
Reconstitution
300
250
1970
1975
1980
1985
~ 2.1 Million
Ford
0.7
0.6
1990
1995
2000
0.5
2010
2005
210
Ford
Carter
Reagan
Bush
Clinton
Bush
460
190
440
170
420
150
400
130
380
110
360
90
Budget
Energy
70
50
1970
1975
1980
1985
1990
1995
2000
2005
340
480
230
320
300
2010
Fig. 1. (a) Total and (b) per capita DOD Energy Use & Budget (chained 2000 $). Sources: data from EIA (2007, p. 25); Historical Tables (2007); conversion to chained 2000
dollars from the consumer price index, available from the Bureau of Labor Statistics at http://www.bls.gov/cpi/.
ARTICLE IN PRESS
R.J. Umstattd / Energy Policy 37 (2009) 28702880
2873
7%
1%
47%
10%
Electricity
Natural Gas
Fuel Oil
Purch.Steam
Coal
LPG/Propane
32%
FY2007 DOD Facility Energy Expenditures
As a percentage of $3.4B
6%
10%
2% 1%
63%
Electricity
Natural Gas
Fuel Oil
Purch.Steam
Coal
18%
LPG/Propane
Fig. 2. (a) Energy usage and (b) cost by source for DOD facilities in FY 2007. Source: data from DUSD(I&E) (2007).
Table 1
Military benets of improved energy efciency.
Benet
Impact
ARTICLE IN PRESS
2874
4.1. Technological
4. Impediments: classication and analysis
While improving energy efciency can very often quickly
become a winning nancial investment in the commercial and
residential sectors, we have seen that the DOD has an even
stronger impetus to pursue efciency as a path to increased
military effectiveness. A variety of technological, political, and
nancial tools are currently available to help improve energy
efciency, and yet there still remains much inefciency within
DOD facilities. An important rst step towards progress is to rst
identify and understand the barriers that presently prevent the
DOD from rapidly adopting such tools.
As energy efciency has been receiving increasing attention as
one of the cornerstones of energy security; many studies by
authors of very different backgrounds have provided a variety of
perspectives on what prevents us from becoming more efcient
(Brown, 2001; Gan et al., 2007; Lovins, 2005; Rohdin et al., 2007;
Sola and Xavier, 2007; Wilbanks, 1994). These studies have
identied barriers in all sectors (commercial, residential, and
industrial) and at all scales from national economies down to
individual household members. In addition to the studies of
specic barriers above, signicant theories on the benets and
limitations of performing barrier analyses are also available (Jaffe
and Stavins, 1994; Sorrell et al., 2000; Sorrell et al., 2004; Weber,
1997). It should be recognized that barrier models alone do not
successfully determine an optimal level of efciency (Jaffe and
Stavins, 1994), but they can nevertheless illuminate areas that
may warrant intervention via public policy (Sorrell et al., 2000).
The categorization of these barriers differs somewhat from author
to author and includes areas such as nancial, behavioral,
organizational, policy, awareness, institutional, market imperfections, cultural, technological, and regulatory issues. While the
overlap and dividing lines amongst these categories are nearly
impossible to prescribe denitively, let us here attempt to rene a
list for the DOD through consolidation. Regulation or policy can
inuence many institutional, organizational, or awareness bar-
ARTICLE IN PRESS
R.J. Umstattd / Energy Policy 37 (2009) 28702880
2875
100000
1000
100
10
cost of elecricity
at $0.10 per kW/hr
10000
more portable
1000000
batteries, flywheels,
compressed air,
pumped hydro
more affordable
1
0.1
10
100
1000
10000
100000
ARTICLE IN PRESS
2876
4.2. Political
4.2.1. Wrong driver
Near-term energy cost savings is the wrong basis for making
most DOD efciency improvement decisions. Any policy to use
1836 month projected energy cost savings as the primary driver
for such decisions severely limits the scope of what can be
accomplished through efciency improvements. Recall that the
entire DOD energy bill in FY07 was only 2.5% of the total DOD
budget, so even if energy efciency magically improved and cut
energy use in half, the total energy cost savings would amount to
only 1.25% of the DOD budget. This miniscule potential savings
tends to reduce the priority of improving DOD energy efciency
during the decision-making process. The calculation of the true
benet of energy-efciency improvements must also include cost
savings in other arenas such as logistics, transportation, personnel, etc. With fuel being 70% of the resupply tonnage to deployed
Army units (Defense Science Board, 2001, p. 13), the cost savings
reaped by cutting this tonnage in half is orders of magnitude
greater than the cost of the saved fuel. DOD policy is starting to
move in the right direction to correct this oversight; the Under
secretary of Defense for Acquisition, technology and logistics
initiated a pilot program in April 2007 that will develop the best
business practices to enable acquisition programs to account for
the fully burdened cost of fuel in their program calculations and
decisions (Krieg, 2007). While burdened calculations will not have
a large direct impact on the cost of fuel gures for DOD facilities
within the continental US, the lesson learned is valuable and
applicable nonetheless: one must look further than simple 1836
month energy cost savings for accurate assessments of potential
energy-efciency savings.
Ideally, the calculation of the benets of improving energy
efciency would also take into account the benets of force
multiplication, increased resilience, and increased endurance.
While these attributes may be difcult to observe or calculate
when looking at a single system, their effects quickly become
apparent during large-scale exercises. Many war games and other
simulation packages do incorporate system efciencies during
their execution, but they would be of higher utility if they also
allowed the user to easily adjust efciency numbers to perform
quick trade-off studies, particularly in support of acquisition
program decisions. Along a similar vein, the Joint Requirements
Oversight Council has agreed to selectively apply an Energy
Efciency Key Performance Parameter as necessary for some
acquisition programs (Giambastiani, 2006). It is certainly a step in
the right direction, but it is doubtful that this policy alone can
ARTICLE IN PRESS
R.J. Umstattd / Energy Policy 37 (2009) 28702880
5000
2000
77% decrease
3000
73% decrease
4000
93% decrease
6000
1000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007
Fig. 4. Impact of lapses in the production tax credit for wind energy. Source: data
from American Wind Energy Association, http://www.awea.org/legislative/accessed 20 March, 2008.
2877
4.2.4. Fragmentation
One further notable hurdle facing facility energy-efciency
improvements is the extreme fragmentation of the US building
industry. When a new technology is demonstrated to be both
energy efcient and affordable, it still remains extremely difcult
to achieve market penetration because there is no short list of
major players in construction. Instead, new technologies are
adopted painfully slowly, if at all, in one small pocket after
another. This fragmentation is not unique to the US as it has also
been observed in the UK (Sorrell, 2003). The residential building
sector is even more fragmented than the commercial sector; in
ARTICLE IN PRESS
2878
4.3. Financial
4.3.1. Disincentives
Perhaps the most insidious barriers to improving facility
energy efciencies are the nancial disincentives that are
intertwined with the way we presently do business. Let us borrow
a simple illustration from Lovins (2005, p. 19): In a typical US
ofce, using one-size-fatter wire to power overhead lights would
pay for itself within 20 weeks. Why wasnt that done? Because:
(1) The wire size was specied by the low-bid electrician, who
was told to meet code, and the wire-size table in the [US]
National Electrical Code is meant to prevent res, not to save
money. Saving money by optimizing resistive losses takes wire
about twice as fat. (2) The ofce owner or occupant will buy the
electricity, but the electrician bought the wire. An electrician
altruistic enough to buy fatter wire is not the low bidder and
wont win the job. Similarly, the owner versus tenant disincentive plays a crucial role in many commercial and residential
buildings. An owner who leases or rents the property has no
incentive to install energy-efcient features because they typically cost more; likewise, a tenant lacks incentive because shortterm energy cost savings will not likely repay the investment.
A related disincentive lurks in the way most US utility
companies supply energy. With most commodities, the prots
increase with sales volumeif you sell less product, you will reap
less prot. Why would utility companies want to help their
customers improve their energy efciency if the improvements
result in reduced prots? To address this issue, several states have
started decoupling utility company prots from sales volumes.
One way to accomplish this decoupling is to charge separately for
energy usage versus energy transmissionif customer energy
usage falls such that the utility company does not recoup its costs
for maintaining or upgrading the transmission infrastructure,
then the transmission fees can be raised. Utility company prots
are thus protected even if energy usage falls, and while customers
see little if any cost savings from their reduced energy usage, they
benet indirectly by not having to pay for the increased energy
infrastructure that would otherwise be needed if overall usage
increased. Led by California, which decoupled prots from sales
volume in 1982, many other states have taken similar steps
including Oregon, Maryland, Idaho, New York, and Minnesota,
but the vast majority of utilities across the nation have yet
to be decoupled. There are several variations on how to
accomplish this decoupling; in each market, the implementation
must be tailored carefully to avoid unintended consequences. To
encourage the growth of efcient distributed energy systems,
such decoupling should be designed to allow utility companies to
charge transmission fees for energy either downloaded from or
uploaded to the grid. Under such a model, utility companies can
encourage the growth of point-of-use, small-scale electricity
generation without suffering a severe prot loss. Both the utility
company and customers then benet from a more robust energy
source network enhanced by additional generation and storage
capacity.
ARTICLE IN PRESS
R.J. Umstattd / Energy Policy 37 (2009) 28702880
Table 2
Ten key impediments.
Impediment
Technological
Insufcient energy
storage
Tunnel vision
Missing data
Political
Wrong driver
Inadequate metrics
Inconsistent backing
Fragmentation
Financial
Disincentives
Missing local rewards
Unfunded requirements
Solution agents
5. Conclusion
While improving efciency saves energy, an even more
signicant benet of improved efciency for the DOD is the
resulting increase in military effectiveness. Efciency improvements bring with them many military enhancements worth
paying for such as simplicity, surprise, a reduced logistics tail,
force multiplication, increased resilience, and increased endurance. Thus, energy cost savings should not be a principle factor
when deliberating over proposed energy-efciency improvements. The true savings incurred through efciency improvements are often many times greater than the simple cost of the
energy, so there is much more at stake than the $3.4B of the DOD
budget that is presently consumed by facility energy costs. While
a plethora of tools exist to help the DOD on the path towards
improved energy efciency within its facilities, there are still
many roadblocks that must be overcome. To assist in focusing
future efciency improvement efforts, the 10 obstacles discussed
herein were assigned to 3 general barrier categories, and lead
agencies were proposed for resolving each of these impediments.
2879
Acknowledgements
The author performed this study as a National Technologies
Laboratory Fellow supported by the US Air Forces Air University
and the Department of Energys Oak Ridge National Laboratory.
Additional nancial support was provided by the USAF Institute
for National Security Studies. The author gratefully acknowledges
the knowledge, guidance, and time of the following individuals:
T. Vane, K. Meidel, S. Thomas, R. Hawsey, P. Hughes, D. Stinton,
T. King, T. Wilbanks, D. Greene, and A. Desjarlais at the Oak Ridge
National Laboratory; S. Hearne, D. Sheets, and J. Fittipaldi at the
Army Environmental Policy Institute; G. Doddington and J. Snook
at the Air Force Civil Engineering Support Agency; J. Barnett
and J. Dominick at the National Renewable Energy Laboratory;
R. Rude at Minot AFB; G. Denslow at Dyess AFB; and W. Turner at
Fairchild AFB.
References
Air Force Real Property Agency, 2008. Enhanced Use Leasing Solicitation nos.
AFRPA-08-R-0005, -0006 and -0007.
Air Force Science Advisory Board, 2006. Technology Options for Improved Air
Vehicle Fuel Efciency.
Amidon, J.M., 2005. Americas Strategic Imperative: A National Energy Policy
Manhattan Project. Air University, February 2005.
Army Corps of Engineers, 2005. Energy Trends and Their Implications for US Army
Installations.
Blackwell, K.E., 2007. Department of Defense and Energy Independence: Optimism
Meets Reality. Air University, April 2007.
BP, 2007. BP Statistical Review of World Energy June 2007, p. 40.
Brown, M.A., 2001. Market failures and barriers as a basis for clean energy policies.
Energy Policy 29, 11971207.
Buildings Energy Data Book, 2006. US Department of Energy, Energy Efciency and
Renewable Energy, Tables 4.2.7, 4.3.2.
Defense Science Board, 2001. Task Force on Improving Fuel Efciency of Weapons
Platforms, More Capable Warghting Through Reduced Fuel Burden (Washington, D.C.: Ofce of the Undersecretary of Defense for Acquisitions,
Technology and Logistics, January 2001).
Defense Science Board, 2008. Task Force on DOD Energy Strategy, More FightLess
Fuel (Washington, D.C.: Ofce of the Undersecretary of Defense for Acquisitions, Technology and Logistics, February 2008).
Donley, M., 2008. Air Force Energy Program Policy Memorandum, AFPM 10-1,
Secretary of the Air Force, 19 December 2008.
DiPetto, C., 2008. Report of the Defense Science Board Task Force on DOD Energy
Strategy. USAF Energy Forum II, Arlington, VA, 3 March 2008, p. 20.
Drinnon, R., 2007. C-17 uses synthetic fuel blend on transcontinental ight, Air
Force Link. 18 December 2007.
DUSD(I&E) (Deputy Under Secretary of Defense for Installations and Environment),
2007. FY2007 Energy Management Data Report.
DUSD(I&E) (Deputy Under Secretary of Defense for Installations and Environment),
2008. Statement of Mr. Wayne Arny (DUSD(I&E)) before the Subcommittee on
Readiness of the House Armed Services Committee, 13 March 2008.
EIA (Energy Information Administration), 2007. Energy Information Administration/Annual Energy Review 2006, DOE/EIA-0384 (2006), p. 5, 25.
Energy Forum II, 2008. Session 1: Facility Energy Management for Competitiveness: The Owners Equity, held during the United States Air Force Energy
Forum II, Arlington, VA, 3 March 2008.
ENERGY STAR, 2006. ENERGY STAR Overview of 2006 Achievements, available at
/http://www.energystar.govS.
Environmental Security Technology Certication Program, 2008. Program Announcement for FY2009 Non-DOD Federal Proposal Submission Instructions,
10 January 2008, p. 14.
Eulberg, D., 2007. Energy Savings Performance and Utility Energy Services
Contracts (ESPC and UESC) Policy. Air Force Civil Engineer, HQ USAF/A7C
Memorandum, 30 October 2007.
Federal Energy Management Program, 2004. Contracting for a Resource Efciency
Manager. DOE/EE-0299, 1.
Gan, L., Eskeland, G.S., Kolshus, H.H., 2007. Green electricity market development:
lessons from Europe and the US. Energy Policy 35, 144155.
ARTICLE IN PRESS
2880
Rohdin, P., Thollander, P., Solding, P., 2007. Barriers to and drivers for energy
efciency in the Swedish foundry industry. Energy Policy 35, 672677.
Sandor, R., 2008. As quoted by Specter, M., in Big Foot. The New Yorker, 25 February
2008.
Sims, R.E.H., Schock, R.N., Adegbululgbe, A., Fenhann, J., Konstantinaviciute, I.,
Moomaw, W., Nimir, H.B., Schlamadinger, B., Torres-Martinez, J., Turner, C.,
Uchiyama, Y., Vuori, S.J.V., Wamukonya, N., Zhang, X., 2007. Energy supply. In:
Metz, B., Davidson, O.R., Bosch, P.R., Dave, R., Meyer, L.A. (Eds.), Climate
Change 2007: Mitigation. Contribution of Working Group III to the Fourth
Assessment Report of the Intergovernmental Panel on Climate Change.
Cambridge University Press, Cambridge, United Kingdom and New York, USA,
p. 283.
Sola, A.V.H., Xavier, A.A.P., 2007. Organizational human factors as barriers to
energy efciency in electrical motors systems in industry. Energy Policy 35,
57845794.
Sorrell, S., 2003. Making the link: climate policy and the reform of the UK
construction industry. Energy Policy 31, 865878.
Sorrell, S., OMalley, E., Schleich, J., Scott, S., 2004. The Economics of
Energy EfciencyBarriers to Cost-Effective Investment. Edward Elgar,
Cheltenham.
Sorrell, S., Schleich, J., Scott, S., OMalley, E., Trace, F., Boede, E., Ostertag, K., Radgen,
P., 2000. Reducing Barriers to Energy Efciency in Public and Private
Organizations.
/http://www.sussex.ac.uk/Units/spru/publications/reports/
barriers/nal.htmlS.
Vallentin, D., 2008. Policy drivers and barriers for coal-to-liquids (CtL) technologies
in the United States. Energy Policy 36, 31983211.
Vringer, K., Aalbers, T., Blok, K., 2007. Household energy requirement and value
patterns. Energy Policy 35, 553566.
Weber, L., 1997. Some reections on barriers to the efcient use of energy. Energy
Policy 25, 833835.
Wilbanks, T.J., 1994. Improving energy efciency: making a no-regrets option
work. Environment 36 (9), 1620 (pp. 3644).