Senate Armed Services Subcommittee on Readiness and Management Support Hearing
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Introduction
Chairwoman Shaheen, Ranking Member Ayotte, and distinguished members of the Subcommittee, thank you for the opportunity to discuss my office in the
Mission of OEPP
Established in 2010, my office's primary purpose is to strengthen the energy security of U.S. military operations. Specifically, the office's mission is to help the Military Services and Combatant Commands improve military capabilities, cut costs, and lower operational and strategic risk through better energy planning, management, and innovation. By statute, operational energy is defined as the energy required for training, moving, and sustaining military forces and weapons platforms for military operations. In
These goals are especially important as we build a military force that is prepared and postured for a complex, global security environment, "capable of simultaneously defending the homeland; conducting sustained, distributed counterterrorist operations; and in multiple regions, deterring aggression and assuring allies through forward presence and engagement," as the Secretary of Defense called for in the 2014 Quadrennial Defense Review (QDR). The QDR also directly connects energy to capability, noting that, "Energy improvements enhance range, endurance, and agility, particularly in the future security environment where logistics may be constrained." To these ends, OEPP has achieved considerable progress by supporting current operations and energy innovation, building operational energy considerations into the future force, and promoting institutional change within the Department.
Changing Energy Landscape
DoD's efforts to transform our own energy use are occurring as the global energy landscape rapidly changes. Here at home, the significant surge of domestic oil and gas production is fundamentally altering the balance of the energy markets we have known for the past 40 years. The U.S. is expected to become the world's largest producer of natural gas; around the country, massive terminals built to import natural gas are now rapidly being converted to export it. n1 Oil imports have been reduced by about 2.5 million barrels a day in just the last 5 years n2 while U.S. production is expected to increase by a further 3 million barrels per day by the end of the decade. n3 The U.S. now exports around 3 million barrels per day of refined product, an increase of more than 2 million barrels per day since 2005. n4
This rebalance is significantly altering the flow of the global energy trade. Energy shipments from
As imports from regions which have previously exported to the US are re-directed to new customers, our economic, political, and military relationships with those countries will evolve as well. As the Department considers base access, security cooperation and partnerships, we must be cognizant of these changing underlying economic forces.
We also see how the appearance of new energy resources is influencing the Department's strategic direction. Last year, Secretary of Defense
Changes in the climate, driven by global energy use, will affect military operations elsewhere as well. Specifically, as the 2014 QDR found, climate change can act as threat multiplier, as heat waves, drought, downpours, floods, and severe storms may significantly add to the associated challenges of instability, hunger, poverty, and even conflict. At the installation level, climate risks may disrupt training, testing, and direct support to ongoing operations. In fact, the
However, even with all these changes, some constants remain. First, it is important to point out that most of the Department's operations occur outside the U.S, and we will continue to buy energy overseas to simplify our supply chains, limit costs, and increase flexibility for the warfighter. Second, a large proportion of global energy will continue to flow through a relatively small number of chokepoints. Today, nearly a fifth of all oil and nearly 25% of globally traded liquefied natural gas transit the
Indeed, the
The Defense Energy Challenge - Today and Tomorrow
As a critical enabler for military operations, the Department consumes significant amounts of energy executing missions around the globe. While only accounting for approximately 1.3 percent of U.S. oil and petroleum consumption in FY13, the Department is the single largest energy user in the nation. In FY13, the Department consumed almost 90 million barrels of liquid fuel at a cost of
The Department's demand for operational energy varies according to the missions assigned to the Department, as well as the equipment used in to execute those missions. Including training, exercises, and the full range of military operations, the Department uses operational energy to maintain readiness and deploy, employ and sustain forces around the globe. Year over year, operations tempo reflects unexpected demands (i.e., post-9/11 operations, humanitarian relief missions) as well as changes in the magnitude of other ongoing operations like
In
The reliance on diesel generators to supply battlefield and contingency base electrical power produces an unintended consequence - a growing energy sustainment burden that must be sourced, in many cases, from great distances. Unfortunately, that logistics effort consumes fuel as well. The two main fuel distribution routes into
The growing requirement for troop-borne capability has launched another sustainment burden - portable batteries - which represents a serious logistical challenge for the warfighter as our troops are increasingly overburdened platforms themselves. They carry gear which sends and receives data from remotely powered aircraft and far-away command posts, and integrates the information into intelligence collection, surveillance, and targeting like never before. Soldiers and Marines have scopes, sights, and radios that give them unsurpassed awareness and accuracy. But, this capability requires a steady supply of power, and for dismounted operations that means batteries, and lots of them. Consider an
These fuel and battery requirements also place a significant logistics burden on planners, troops, equipment, and supply lines. Reducing the demand for energy on the battlefield has a direct effect on reducing the energy logistics burden and freeing up manpower and equipment resources previously engaged in logistics tasks to operational commanders for use in generating combat power.
As we draw down forces from ongoing operations in
More specifically, the President and the Secretary have emphasized that we shift our strategic focus to the
Reducing Demand
Increasing combat effectiveness in current operations through reductions in fuel demand has been a significant DoD focus since OEPP's establishment in 2010. To quote the former International Security Assistance Force / U.S. Forces - Afghanistan Commander General
Let me sketch out some key activities to highlight the OEPP's efforts in partnership with the Combatant Commanders.
US Central Command (USCENTCOM)
The Operational Energy Division (OED) within the Joint Program Integration Office at US Forces-Afghanistan (USFOR-A) was established in 2011 with a mandate to improve operational capabilities and warfighter effectiveness by reducing our forces' reliance on liquid fuels. Staffed with technical experts, the OED continues to develop and implement materiel and non-materiel energy solutions to reduce dependence on petroleum fuels and increase operational effectiveness. OED coordinates directly with OEPP, and we maintain a close relationship to address operational energy issues and initiatives in theater. In 2012, OEPP and OED combined efforts with the
This past year, OED also provided significant support to Operation DYNAMO. Improvements in energy efficiency produce the greatest leverage at the extreme tactical edge, since the risks and costs to provision fuel there are so great and potentially so disruptive to the operational mission. In a tactical environment, electrical demand has usually been met by multiple diesel powered generators, sized for peak loads but often operating far from peak capacity and efficiency. The consequence of poor generator loading is significant fuel waste, increased maintenance effort, and decreased reliability. In an attempt to address those issues, PM-MEP, in coordination with USFOR-A OED, recently completed Operation DYNAMO I and II, which assessed the electrical supply and demand footprint at 67 forward operating locations. Mission-specific advisory teams developed more efficient power generation and distribution plans, replaced older equipment with more than 500 fuel efficient Advanced Medium Mobile Power System generators and 430 Improved Environmental Control Units, updated distribution systems to improve reliability and safety, and trained local soldiers to operate and maintain the equipment properly. This effort spotlights the value of OE advisors teamed with expert technicians and military standard equipment and their ability to become a significant combat force multiplier for operational commanders. Building on the success of its predecessors, Operation DYNAMO III is underway now to oversee the right sizing of power assets during the drawdown in
US Pacific Command (USPACOM)
OEPP has embraced emergent energy challenges in the Pacific and partnered with USPACOM and other key stakeholders to understand and address them.
The vast expanse of the oceans and seas that comprise USPACOM's Area of Responsibility put a premium on the ability of maritime forces to foster relations with partner nations, protect commercial and military shipping, and execute offensive operations on and from the sea. The
OEPP remains engaged in the Department's ongoing efforts to improve liquid fuel delivery ashore in areas where little to no distribution infrastructure exists. I attended the Joint Logistics Over-The-Shore demonstration in
As the DoD operational energy strategy has evolved, OEPP and the Combatant Commanders have expanded our efforts beyond improving only US force capabilities. Teaming with partner nations to improve fuel efficiency and reduce energy demand across our combined forces benefits global cooperation and our combined security in the region. To that end, my office is currently exploring options within the
US Africa Command (AFRICOM)
In the US Africa Command area of responsibility, OEPP is mentoring a growing and effective headquarters staff effort to incorporate operational energy across their operations and theater security cooperation activities. The staff recently assigned its first dedicated operational energy advisor and, in addition, continues to benefit from a
As the US increases its focus on the African continent, the Department is similarly stepping up its efforts to support the Combatant Commander across a range of operational energy issues. The austere operating environment is compounded by the lack of infrastructure which introduces a challenging sustainment picture. The
In general, as part of my office's focus on contingency basing, we recently helped identify measures in
My office is also supporting longer term innovation and change via the
The OECIF programs begun during FY13 emphasized establishing organizations aimed at involving a wide variety of organizations in solving our operational energy problems. OEPP encouraged the use of innovative business methods, such as consortia, to involve small businesses and non-traditional defense contractors. For example, one of these programs, led by the
Most recently, for FY14, OECIF is pursuing new programs to develop the analytic methods and tools necessary to support the thorough analysis and consideration of operational energy issues throughout DoD's various planning and management processes. The basic idea is to give decision makers within the Department better ways to factor operational energy into their decisions. This focus was partly driven by our experience in the last few years and partly by observations we made during our budget certification process, where we found shortcomings in the ability of the Department to consider energy in its decisions. We are using the OECIF to help solve it, which is consistent with its goal of creating institutional change.
Increase/Assure Supply
Another element of our strategy is diversifying and securing military energy supplies to improve the ability of our forces to get the energy they require to perform their missions.
Alternative Energy and Fuels
The Department's operational energy investments are focused on meeting warfighter needs, including by diversifying the Department's supply options. One focus is on energy that can be generated or procured locally near deployments to lessen the burden on supply lines. The Services are evaluating, and, where appropriate, deploying tactical solar technologies to generate electricity on contingency bases or to recharge batteries to increase patrol range and mission duration. OEPP is assisting in these efforts by coordinating information sharing amongst the Services and between the Services and DOE, which has broad technical expertise in civilian solar technologies. Additionally, the Department is funding research in deployable waste-to-energy systems that could reduce the volume of waste requiring disposal and create and generate energy on contingency bases. Other technologies in which the Department is investing include hydrogen-powered and solar-powered unmanned aerial vehicles, which have the potential to achieve much longer mission durations than those powered by traditional petroleum-based products.
Another component of the Department's operational energy strategy is alternative fuels. As the nation's largest consumer of energy, the Department recognizes that our military will need alternatives to petroleum to diversify sources of supply. Over the long term, the Department will need fuels derived from various feedstocks that are cost-competitive, widely available around the world, and compatible with existing equipment and storage infrastructure, as our existing fleet of ships, planes, and combat vehicles will be with us for decades to come. So the Department is investing around 2% of its operational energy funding over the next five years on alternative fuels. The Services are focusing the majority of their alternative fuels efforts on certifying aircraft, ships, tactical vehicles, and support equipment to use these emerging fuels, as they have been doing since 2006. These initiatives improve the flexibility of military operations by ensuring that our equipment can operate on a wide range of fuels when they are cost competitive and commercially available.
To create clear guidelines on the Department's alternative fuels investments both now and in the future, on
To date, the Department has only purchased test quantities of biofuels for testing and certification purposes. These test fuels are often more expensive than commercially-available petroleum fuels because they tend to be produced at small, not-yet-commercial scale facilities using novel conversion technologies. However, the policy formalized what was already the practice for all the Military Services: that the Department will not make bulk purchases of alternative drop-in replacement fuels unless they are cost competitive with petroleum products. With this policy in place, the Department will continue to steward its alternative fuels investments towards the ultimate goal of enhancing the long-term readiness and capability of our joint force.
Because the Department does have long-lived platforms designed to use liquid fuels, there is a long-term defense interest in fuels diversification. The Department also supports a larger national goal to promote the development of low-carbon, renewable fuels. The Defense Production Act (DPA) advanced drop-in biofuels production project, led by the OSD Manufacturing and Industrial Base Policy Office, is a
Securing Our
There is rising concern about risks to the U.S. electric grid that powers most DoD bases, ranging from cyber-attacks to hurricanes. The risks and vulnerabilities of the U.S. electric grid and overseas electricity supplies supporting DoD facilities are not well characterized. Today, military operations can include warfighters conducting missions remotely from domestic facilities; the disruption of electric power in one location could adversely affect the outcome of a battle thousands of miles away. And, in the event of a major domestic outage, as with Hurricane Sandy, the lack of adequate power could create tension between Defense support for civilians and the Department's own needs.
We recognize the need for better information and coordination on risks to the grid and are exploring the Department's role in building resiliency into the system. To that end, OEPP and other lead offices in the OSD, in partnership with the
In addition to electrical power concerns we are also looking at the security of our liquid fuel supply. OEPP is currently examining logistical challenges generated by the vast distances and extensive operating areas present in the
Building Energy Security into the Future Force
The Department continues to make strides in improving energy security for the future force. We have invested a significant amount into the development and deployment of operational energy initiatives to increase the combat effectiveness of our warfighters. Programs of note include the:
*
* Improved Turbine Engine Program (ITEP) program -- This program provides an improved engine for the Apache and Blackhawk helicopter fleets to replace the current T-700 engine. ITEP will improve operational effectiveness by giving commanders an improved aviation fleet with longer loiter time, increased altitude limits, increased payload and lower fuel and maintenance costs. The
*
* Medium Tactical Vehicle Replacement (MTVR) -- This effort includes developing and demonstrating a fuel efficiency improvement of 15 percent over the existing MTVR while maintaining affordability, mobility and survivability. Additionally, within this program, the
We have worked with the Joint Staff and the Services to implement the Energy Key Performance Parameter (eKPP) or energy Key Support Attribute (eKSA) across all acquisition categories. This includes Acquisition Category I programs such as the Armored Multipurpose Vehicle (AMPV), Joint Light Tactical Vehicle (JLTV), DDG-51 Flight III and the Air Missile Defense Radar (AMDR), along with smaller acquisition programs such as the MTVR, Prime Power Mobile Production System, and the Force Provider -- Expeditionary Program.
In regards to shaping the requirement and acquisition systems, the Department is working to conduct operational energy analysis earlier; that will provide a greater opportunity to consider the tradeoffs and options among a more energy secure force, more effective or efficient equipment, or a more capable logistics force. The Joint Staff, the Service Energy Offices, and my office have worked together to make operational energy an integral part of the Services' Title X War Games, such as the
Moving forward, we must continue to fund analysis to identify which capabilities and missions to target for operational energy improvements. We have found that engaging earlier, well before Milestone A, will give us the greatest opportunity to provide greater capabilities through operational energy improvements.
Institutionalizing Operational Energy in Policy
In the long term, the Department must build operational energy considerations into the regular rhythm of how the Department operates. To begin with, the Secretary of Defense signed the Operational Energy Strategy Implementation Plan in
1. Measure operational energy consumption;
2. Improve energy performance and efficiency in current operations and training;
3. Promote operational energy innovation;
4. Improve operational energy security at fixed installations;
5. Promote the development of alternative fuels;
6. Incorporate energy security considerations into requirements and acquisition; and,
7. Adapt policy, doctrine, professional military education, and Combatant Command activities to include operational energy.
The Department is making great progress implementing the strategy; further details are available in our Operational Energy Annual Report to
More recently, in
The Department also issued other policies over the past year to support the operational energy mission. In
In addition to the strategy, guidance, and policy set forth by my office and that of OSD, the Military Services have followed with their own initiatives. In the past year, the
Conclusion
In
Our vision to better manage the Department's use of energy will continue to improve military capability across all missions. As we adapt to threats and geopolitics shaped by energy, now is the time to drive long-term innovation and energy improvements into our core business processes, force structure, and planning to ensure we have the military we need to succeed in the future.
Going forward, the Department is committed to addressing how energy shapes our capabilities and operations as well as how it affects what the missions of the Department are. This past year, the Department has made great strides in reforming core business processes and decision-making, supporting current operations, and applying energy considerations to the development of the future force. All that said, institutional change within the Department is difficult, time consuming and not for the faint of heart; we appreciate this Committee's continued support of OEPP.
n1 http://www.eia.gov/todayinenergy/detail.cfm?id=13251
n2 http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=wcrimus2&f=w
n3 http://www.eia.gov/forecasts/aeo/er/early_production.cfm, EIA Annual Energy Outlook, Early Release Overview, "U.S. production of crude oil (including lease condensate) in the AEO2014 Reference case increases from 6.5 MM bbl/d in 2012 to 9.6 MM bbl/d in 2019."
n4 http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTPEXUS2&f=M, EIA data on U.S. exports of finished petroleum products indicates monthly U.S. exports of finished petroleum products in
n5 http://www.eia.gov/forecasts/ieo/world.cfm - According to EIA, non OECD countries consumption will rise from 307 quadrillion BTUs in 2013 to 460 by 2030.
n6 ISAF/USFOR-A memo, "Supporting the Mission with Operational Energy,"
Read this original document at: http://www.armed-services.senate.gov/download/?id=aeae8d68-329e-4b92-986f-2e621108ca30&download=1
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