THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE WASHINGTON, D.C. 20301-8000 September 30, 1988 PRODUCTION AND LOGISTICS (L/EP) Defense Energy Program Policy Memorandum (DEPPM) 88-4 MEMORANDUM FOR DESIGNATED ENERGY OFFICIALS OF THE OFFICE OF THE SECRETARY OF DEFENSE, ORGANIZATION OF THE JOINT CHIEFS OF STAFF, MILITARY SERVICES, AND DEFENSE AGENCIES SUBJECT: Department of Defense Utilities Energy Coordinating Council Providing reliable, secure, and economic utilities energy has become increasingly important to support the high technology of Defense installations and their missions. At the same time, regulations and economics affecting national utilities energy have become much more flexible. Greatly increased cogeneration capacity nationwide and recent private venture capital investments in energy production for DoD installations reflect changes which offer us alternatives In addition, gradual changes to conventional energy acquisition. already underway in the structure of the electrical utility industry may produce future cost savings opportunities similar to those already being achieved in purchasing natural gas. As large consumers of utility energy services, DoD installations have the opportunity to achieve significant savings in this changing environment. For many installations, it appears that the greatest savings can be realized through a coordinated acquisition action supporting installations in geographic proximity. Such coordination needs to focus particular attention on changing statutes and regulations affecting this process. A unified acquisition approach and coordination between the DoD Components will be increasingly vital in the future. I am therefore establishing the Defense Utilities Energy Coordinating Council. The enclosed initial charter shall be used to guide the Council’s development. Addressees are requested to designate a primary member and alternate members to the Defense Utilities Energy Coordinating Council, to attend all meetings and participate in the work of policy development and program integration. It is requested that your nominees be provided to this office as soon as possible in order that the Council can begin its work. Point of contact in this office is Mr. Millard E. Carr, (202) 697-4589. Addressees are urged to support the work of the Council. Enclosure CHARTER DEFENSE UTILITIES ENERGY COORDINATING COUNCIL A. PURPOSE This Charter defines the organization, functions, procedures and responsibilities of the Defense Utilities Energy Coordination Council (DUECC). The DUECC is established to propose revisions to existing utilities energy policy and directives to reflect current and developing conditions, to provide coordination and development of new utilities energy acquisition policy, and to exchange technical utilities energy information within DoD. B. ORGANIZATION 1. The DUECC shall be composed of: a. The Director, Energy Policy, ODASD(L), as chair. b. A representative from: (1) each of the Military Departments, (2) the chairperson of each of the two working subcommittees, and (3) the Defense Logistics Agency c. Other representatives from the Office of the Director, Energy Policy, as appointed Members of the DUECC shall be appointed so that there is representation from each Military Department with legal, contractural, and technical background on the Council. 2. The DUECC will establish two working subcommittees. The working subcommittees and their objectives are: Acquisition: To coordinate actions regarding acquisition regulations, develop procurement strategies and practices, promote joint contracting where feasible, evaluate the impact of changes in law and proposed legislation, and analyze the effect of changing regulatory practices, industry trends, and business climates on utility acquisition policy. Technical: To monitor technological changes that impact on procurement policy, to promote transfer of technology between Services, and improve efficiency, safety, and reliability of DoD utility systems by promoting standardization of policy and criteria. Each subcommittee will be composed of a chairperson plus at least one member from each of the other Military Departments. The chairperson of the DUECC will appoint the chairperson for the working subcommittees. The Chairperson of the working subboards shall be selected from among the Services so that no more than one chairperson shall be appointed from any Service. The chair of the subcommittees shall be rotated among the Services no less frequently than every two years. Subcommittees have full authority to collect and share information and to agree upon issues and procedures that can be implemented within their own areas of responsibilities. Issues and procedures, which are to be considered as DUECC policy or recommended for DoD policy positions, shall be referred to the DUECC for action. 3. At the request of two or more Components, the DUECC shall establish Regional Defense Utilities Energy Coordinating These RDUECCs shall be organized to provide Councils (RDUECCs). an opportunity for technical and contractural representatives of Component Services at the user level to participate in joint contracting action where feasible, develop unified approaches in conducting business with local energy suppliers, and evaluate industry trends in the local area. The DUECC will designate the military installations that are to be included and the chairperson for each RDUECC. Regional Defense Utilities Energy Coordinating Councils have full authority to collect and share information and agree upon issues and procedures that can be implemented within their own Issues and procedures which should be area of responsibility. considered on a Services’ level or DUECC level should be referred by the RDUECC Chairperson to the chair of the DUECC. Each military installation within the area of an established RDUECC may designate one member and an alternate to participate in the Board’s activities. 4. The DUECC, and the two working subcommittees will meet as required, but at least quarterly. The RDUECCs will meet as required. C. FUNCTIONS The DUECC shall: Develop guidance and policy concerning current issues 1. and trends within the regulatory, technical, and business aspects of the energy industry that impact the utility energy interests of DoD and the Services. 2. Receive issues and concerns presented by the Service representatives and determine which are significant and of mutual interest to the Services. Assign the subcommittees specific issues for research, 3. investigation, and recommendation development. 4. Provide support to the Defense Energy Policy Council as requested. 5. Propose recommended legislative language needed for mission accomplishment. 6. D. Propose recommended changes to procurement regulations. RESPONSIBILITIES 1. The DUECC Chairperson shall: a. Ensure the purposes of the DUECC are accomplished. Refer utilities energy policy recommendations to the b. Chairperson of the Defense Energy Policy Council. c. Ensure that minutes of the DUECC meetings are recorded and distributed to all committee members and the chair of the Defense Energy Policy Council. 2. DUECC Members shall: a. Present items of interest to the DUECC chairperson. b. Respond to taskings from DUECC chairperson. Present their DoD Component position and be c. authorized to negotiate that position to seek agreement within the DUECC on issues concerning utilities energy. Ensure Defense Components respond to issues and concerns raised by the DUECC. 3. The Chairperson of a subcommittee, in addition to the responsibilities outlined in subsection D.2., above, shall: Assume responsibility in coordinating the participation of the other Components members of the subcommittee. Assume responsibility for preparing research and b. recommendations for the subcommittee tasked by the Chairperson of the DUECC.