Expanding their portfolio of renewable energy projects has been a priority for the military services for much of the past decade, but prior to 2011 it still was an open question as to what statutory authorities could support their ambitions. Relying on enhanced use leasing proved problematic as budget scoring rules employed by the Office of Management and Budget consider most public-private ventures to be capital leases, a huge disincentive for the military’s attempt to rely on private sector investment to develop alternative energy plants to supply installations with power. Finally, early last year the Pentagon approved a 3-megawatt landfill gas project at Marine Corps Air Station Miramar, Calif., that would provide the base energy via a long-term power purchase agreement authorized under 10 U.S.C. 2922a. That February 2011 approval set a critical precedent as previously the department had interpreted the statute as limiting the department’s authority to enter into PPAs of up to 30 years to geothermal projects. Until that point, DOD had limited PPAs tied to other renewables to 10 years, a prohibition which scared away private capital. Another breakthrough occurred in October 2011, when San Jose, Calif.-based SunPower Corp. closed on a 13.8-megawatt solar array at Naval Air Weapons Station China Lake, Calif., that would be financed by a 20-year PPA. The achievement marked DOD’s first solar plant financed by a long-term PPA under section 2922a, but more significantly, it proved that there is a reliable procurement vehicle that the military services can use to partner with industry to develop large-scale renewable energy projects. “This is a very significant deal,” Robert Tritt, a partner with law firm McKenna Long & Aldridge, told Defense Communities 360 …