OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE WASHINGTON, D.C. 20301 MANPOWER, INSTALLATIONS AND LOGISTICS Defense Energy Program Policy Memorandum (DEPPM) 84-8 MEMORANDUM FOR DESIGNATED ENERGY OFFICIALS OF THE OFFICE OF THE SECRETARY OF DEFENSE, MILITARY SERVICES, ORGANIZATION OF THE JOINT CHIEFS OF STAFF, AND DEFENSE AGENCIES SUBJECT: Energy Management Monetary Award Programs PURPOSE: This memorandum recommends a voluntary program be considered at major commands or activities to provide monetary awards- to organizations that have demonstrated outstanding achievements in energy conservation and efficiency. BACKGROUND: The need for energy conservation and efficiency within the Department of Defense (DoD) continues to be a pressing one. Monetary awards can serve an important function to increase awareness of energy conservation. Currently, several major commands have excellent monetary award programs in which a portion of their operation and maintenance (O&M) cost savings are returned annually to installations that achieve the best energy conservation performance relative to other installations. The award money is used to fund projects that improve the quality of life at these installations and often further enhance energy conservation. A synopsis of these programs is provided as Enclosure 1. POLICY: The Department of Defense should maintain an effective energy conservation program. One facet of this program can include monetary awards. Accordingly, the Military Services and Defense Agencies should recommend to all major commands under their cognizance that a voluntary monetary award program be initiated to recognize achievements in energy conservation and efficiency. Suggested guidelines for organizational monetary 'awards that may be useful in developing such a program are provided as Enclosure 2. 2 RESPONSIBILITIES: The Military Services and Defense Agencies are requested to provide this office copies of published instructions implementing this policy. Robert W. Daniel, Jr. Deputy Assistant Secretary of Defense (Logistics and Materiel Management) Enclosures Synopsis of Current Energy Management Monetary Award Programs Synopsis Monetary awards are used currently in two major Army commands, one major Navy command, the Marine Corps, and two major Air Force commands. A synopsis of the programs at these major commands follows: Army Since FY 1979, U.S. Army Europe (USAREUR) has awarded $1 million annually to the three kasernes with the best energy management program. The first place winner receives $500,000, and the others $250,000 apiece to apply to O&M projects that are needed and improve the quality of life, e.g., painting buildings, repaving roads, and insulating gymnasiums. Areas evaluated include: • Method and extent of implementing energy conservation measures, e.g., command emphasis, training programs, publicity, energy suggestions; • Long- and short-term facilities retrofit programs, e.g., thermostatic controls, boiler plant consolidation: • Mobility operations fuel saving schemes, e.g., using simulators, consolidating unit movements; and • Overall energy conservation results for the fiscal year. The first place winner of this award becomes the USAREUR nominee for the Army-wide Secretary of the Army Energy Conservation Award. In FY 1982, USAREUR added one award for the Most Improved Community and a second award for the Best Facility Energy Project Program. Each of the winners receive $250,000 for O&M projects of their choice. The U.S. Army Training and Doctrine Command (TRADOC) has established a facilities energy award program which pays any installation the actual cost of the energy saved from the annually assigned goal. The goal is assigned based on mission, weather, and programmed and completed Energy Conservation Investment Program projects. This award approaches $1 million. The awarded dollars can be used on O&M projects of the installation's choice. ENCLOSURE 1 Navy Beginning in FY 1979, the Chief of Naval Material (CNM) created the annual Energy Conservation Incentive Award Program. The CNM program supplements the Navy-wide Secretary of the Navy Energy Conservation Award. Approximately $1 million is divided among six winners each year. The award funds are directed to each winning activity's highest priority unfunded O&M requirement. CNM encourages use of the award funds for perennially underfunded personnel support facility projects. Marine Corps The Marine Corps is considering the use of $200,000 of its Utilities and Energy Initiatives Program O&M funds to reward the USMC activity that wins the annual Secretary of the Navy Energy Conservation Award for the previous year. These funds would be applied toward O&M projects which would benefit the quality of life of personnel employed and living in the activity. Air Force U.S. Air Force Europe (USAFE) has made an annual monetary award of up to $250,000 to the top three USAFE activities exhibiting outstanding performance in, and significant contributions to, energy conservation. This annual evaluation considers an activity's performance against energy consumption goals, the number of energy conservation suggestions adopted, the total amount of savings realized, and the degree of participation in an energy conservation awareness program. In addition to the award funds, the first place activity receives a trophy and the first and second runners-up receive certificates. The award money is designated for use on local projects to improve the quality of life of activity personnel. The Air Training Command (ATC) has instituted a similar award totaling $300,000. Under ATC's program, $100,000 is provided to each of the first place winners in the "large" and "small" base category; and $50,000 is provided to each of the second place winners in these categories. 2 Voluntary Guidelines for Energy Management Monetary Award Program Introduction These guidelines are optional and are offered only as a guide to assist the major commands (MAJCOMs) of the Military Services and Defense Agencies to establish a monetary awards program to recognize installations for outstanding performance and significant contributions toward achieving energy conservation and efficiency. The program ideally would be designed to stimulate interest in energy conservation and efficiency through reduced energy consumption in military operations and installations management, energy saving suggestions, and energy conservation information and awareness programs. These guidelines also include procedures and functions of energy conservation and efficiency monetary award selection boards which would implement the programs at the local level. Description The funding would be (1) obtained from savings in MAJCOM operation and maintenance (O&M) funds or (2) budgeted. The magnitude of the award would vary at the discretion of each MAJCOM. A suggested distribution of funds involves a total sum of $1 million to be divided among the three to six installations showing the best energy conservation and efficiency, with the top installation receiving the largest award. Scope All energy consumers on active and reserve forces installations within MAJCOMs that submit Defense Energy Information System (DEIS-I or -II) reports would be eligible to participate in the awards program. Energy Conservation and Efficiency Monetary Award Selection Board The board would be composed of five members, including the MAJCOM: • Energy conservation coordinator (chairperson), • Logistics staff representative, • Engineering staff representative, • Personnel staff representative, and • Public Affairs staff representative. ENCLOSURE 2 During the first month of each fiscal year, the chairperson would appoint board members by letter. The board would convene early in the first quarter of the fiscal year to select the award winners for the previous fiscal year. To maximize awareness of personnel, it is suggested that final selection of winners and administration of the awards be completed before the end of the first quarter of the new fiscal year. A letter identifying the award winners would be sent from the board to the MAJCOM commander in chief for formal award presentation. Selection The selection process could be based on a 100 point system. It would be the responsibility of the Logistics, Engineering, and Personnel representatives on the board to compile statistical data for the board to use in evaluating installations. Following thorough study of these statistics, the chairperson would use all the data to evaluate installations and assess total points The results of the chairperson's assessment would accordingly. be presented to the board for approval and selection of winners. Suggested statistics that may be collected and a suggested point assessment follows: • Mobility Energy - 40 points - The Logistics Staff would assess points based on an installation's: + Accuracy, completeness, and punctuality of Defense Energy Information System (DEIS-I) reports for mobility energy (10 points); + Mobility energy conservation and efficiency, based on DEIS-I reports, using either total energy reduction, e.g., barrels, or ratios of work or services output to energy input, e.g., combat troops/barrel, trained pilots/barrel, operational aircraft hours/barrel, operational ship day/barrel, etc. (20 points); and + Improvements in fuels handling equipment and management methods, including development and testing of emergency contingency plans (10 points). • Facility Energy - 40 Points - The Engineering Staff would assess points based on an installation's: + Accuracy, completeness, and timeliness of DEW-II reports for utility energy (10 points); + Facility energy conservation and efficiency, based on DEIS-II reports, using either BTU/square foot (BTU/SF) or ratios of work or services output to energy input (i.e., BTU or BTU/SF), e.g., base population/BTU/SF, medical services/BTU/SF, commissary services/BTU/SF, item production, handling or repair/BTU/SF, employee output/BTU/SF, laundry and dry cleaning services/BTU/SF, etc. (20 points); and 2 + Participation in, and completion of, O&M and Energy Conservation Investment Program (ECIP) projects, performance of energy audits, and development and testing of emergency energy contingency plans (10 points). • Individual% Energy Initiatives - 10 point - The Personnel Staff would assess points based on an installation population's participation in incentive awards programs with respect to suggestions, inventions, scientific achievements, superior accomplishments, and special services or acts which contribute specifically to energy conservation and energy efficiency in the operation and management of the installation, MAJCOM, Installations would be Service, DoD, or U.S. Government. rated on tangible energy conservation and efficiency-related benefits derived under the standard Federal incentive awards program (which the Personnel Staff administer). All installations reporting tangible benefits could be assigned points ranging from one to nine based on the percentage of their tangible benefits compared to the highest installation. The installation with the highest tangible benefits would receive the full 10 points. • Energy Awareness Activities - 10 Points - The Public Affairs Staff would assess points based on an installation's efforts to conduct a successful energy awareness program. These efforts may be demonstrated by an installation submitting: + A written plan of energy awareness activities at the installation and the surrounding community, especially during DoD's annual energy awareness week; + Evidence of effective use of the media, e.g., newspaper, radio, television; + Examples of energy awareness activities implemented, e.g., energy conservation contests, driver energy awareness and other training programs, energy workshops; and + Photographs of energy related exhibit6 or samples of energy awareness posters displayed at the installation. At the discretion of the MAJCOM, on-site evaluation might be used to ensure appropriate credit is given to an activity for the reported accomplishments. 3 Presentation During a ceremony that could be conducted at the end of the first quarter following the fiscal year being evaluated, the commander of the MAJCOM could present representatives of the winning installations with an appropriate citation indicating the first, second, third, etc., place winners and the amount of the monetary award respectively. Certificates of achievement and letters of appreciation from the commander of the MAJCOM could be presented to the energy conservation officers serving at the winning installations. 4