Mark Bruzzone and Julie Novak - MWH Australia - Case Study: US Department Of Defense leveraging alternative financing To deliver improvements in environmental performance

• 1. DoDs facility energy strategy is designed to reduce energycosts and improve the energy security of our fixedinstallations. This includes: Reducing the demand for traditional energy throughconservation and energy efficiency Expanding the supply of renewable energy and other formsof distributed (on-site) energy Enhancing the energy security of our installations directly Leveraging advanced technologyThis strategy supports DoDs strategic goals (Protect thehomeland; Build security globally, and Project power and winDecisively) and the Nations energy security goals.

2. MWH Role: Strategic, Planning and Advisory Services 3. Renewable Energy Goal 25% by 2025Total FacilityConsumption4,000,000 GJ($0.12B*)Total FacilityConsumption218,000,000GJ ($3.8B)Total WaterConsumption340,000 ML(est $1.9B)RenewableEnergy 11.8%of Facility TotalEnergyIntensitySavings 17%since 2003Water IntensitySavings 19.8%since 2007Total WaterConsumption7,500 ML($15M)Energy Intensity Savings Goal 30% by 2015* Electricity only. Ref: Defence Estate Energy Strategy 2014-2019 4. EnablingLegislationPermits long-termcontractsProvides for necessaryfinancial/real estateagreementsExperience inEffective DeliveryVendor community & DoDexperienced in delivery ofpartnership modelsRisks known & managedMultiple means ofcommunication between DoD& vendor communityGovernanceTechnical support (DoD/Services, Supporting Agencies(e.g. DOE))Organisational structure todevelop & execute programsTemplated contractdocumentation& guidanceIncentivesTax benefitsRenewable Energy CertificatesMission drivers - appropriatedfunds freed upMandated targetsStreamlinedProcurementPre-selected PanelsStandardisedprocurementsteps/processes 5. Alignmentwith ExistingContractsLong TermNature ofAgreements Compatibility with base services contracts Mandated targets Ability to enter into long term contractsGovernance& Support Capacity to maintain governance& support structuresStrength ofDrivers