Alternative and Renewable Energy - Advanced Materials ...

15.4 Enhanced Use LeaseSpiral 2: 3/28/2011The enhanced use lease is an administrative mechanism that enables DoD components to capitalize onunderutilized, non-excess real property assets (e.g., land, unused buildings, etc.), by leasing the assets toprivate entities. The leased property can be used for various purposes including the following:• Office space, aircraft and hangar facilities• Warehouses and industrial facilities• Laboratories and R&D facilities• Medical facilities• Energy projects• Hotels and temporary lodgingAccording to USC Title 10 Section 2667, the DoD has the authority to enter into EULs and retainleasing proceeds. More specifically, it has the authority to use proceeds from EULs without furthercongressional action. 381 For real property to be eligible for lease, it must:• Be under control of the Secretary of the respective Service department• Not be needed for public use during the lease period• Not be excess property (i.e., property that is not required to meet the agency’s needs orresponsibilities).Essentially, this means that for the real property asset to be eligible, it is not anticipated that it will beneeded during the lease period, but the Service may need it at some time during the future or needs toretain ownership of the asset for a mission-related purpose. 382There are additional requirements that relate to the terms of the lease. Essentially, the lease requiresinvocation of a fair market value, must be competed, and must be reported to Congress among otherrequirements. DoD components can receive cash or in-kind consideration for compensation on leasedproperties. Types of in-kind consideration that may be accepted include:• Maintenance, repair, improvement, or restoration of facilities• Construction of new facilities• Provision of facilities• Provision of payment of utility services• Provision of real property maintenance services• Provision of other appropriate services to occur on leased propertyEnergy EULs recently have been growing in popularity since they provide a way to implement renewableenergy projects on underutilized DoD real property. Each military Service has a component thatfacilitates and manages EULs: the Air Force Real Property Agency; Army Corps of Engineers, BaltimoreDistrict; and the Naval Facilities Engineering Command. Examples of energy projects include:• Solar• Wind• Biomass314