Chapter 14 DLA Energy Funding Support 1

CHAPTER 14 

DLA Energy Funding Support

This chapter describes:

 The process for submitting environmental compliance and spill cleanup project 

funding requests to the DLA Energy environmental program staff

 Typical examples of fundable and non-fundable environmental costs

14.1 Background

For approximately 40 years, DLA Energy has been responsible for purchasing bul

fuel products and delivering them to the U.S. Armed Forces and other governmen

agencies. DLA Energy manages 250 national stock numbers for petroleum products

including jet fuels, aviation gasoline, heating oils, power generation, naval propulsion 

fuels, lubricants, natural gas, and coal. Over time, DLA Energy’s funding has expand

for maintenance and repair, minor construction, and environmental projects. DL

Energy’s increased role in funding is partly the result of centralizing fuel inventory

management and facility upkeep, according to the Integrated Material Management

(IMM) program. IMM is designed to centralize fuel inventory management and facilit

upkeep, with DLA Energy designated the executive agent for fuel in the Defens

Logistics Agency (DLA) as part of the centralizatio

DLA Energy’s expanded role in funding can be attributed to the following milestone

shown in Exhibit 14−1.

EXHIBIT 14−1

DLA Energy Funding Milestones

1973 DLA assumed management of eight bulk fuel terminals permitted to it by the

services (six by the U.S. Air Force and two by the U.S. Navy). These were governmentowned, contractor-operated (GOCO) terminals. As the DLA activity re

for fuel, the Defense Fuel Supply Center (DFSC) became the operator of these 

terminals and funded the operating contracts for each location, as well as became 

responsible for maintenance, repair, and military construction (MILCON) projec

1980 The number of facilities permitted to the DLA grew to 16. DFSC took on the sa

responsibilities for this larger group of Defense Fuel Support Points (DFSPs), mos

of which were GO

1985 DFSC assumed the funding responsibility for maintenance and repair at all serviceowned bulk fuel storage facilities storing DLA-owned fuel. The number of DFS

requiring DFSC funding increased to 94.

1992 PhaseII of IMM was implemented (milestones mentioned before this date 

considered PhaseI of IMM). The environmental compliance costs at GOCO faci

became eligible for DFSC funding.

1992 DFSC began funding maintenance, repair, and environmental projects at former 

retail facilities on U.S. Air Force bases, U.S. Army bases, Air National Guard 

Naval Air Stations, and U.S. Marine Corps Air stations. The number of DFSPs

DFSC funded grew to over 400.

1992 DFSC assumed funding for costs of bulk storage of DLA- and DFSC-owned

product, as well as assumed ownership of most aviation and marine fuels 

previously owned by the services.
14-2 Chapter 14 DLA Energy Funding Supp

1998 DFSC changed its name to the Defense Energy Support Center (DESC

2000 DESC began providing electricity, natural gas, and space-related products and

services.

2004 DESC establishes its Environmental, Safety and Occupational Health Managem

System.

2009 Mission expanded to include providing alternative fuels and renewable energy 

sources.

2010 DESC changed its name to DLA Ener

14.2 Environmental Compliance Costs

DFSPs should request environmental compliance funding from DLA Ener

via the online DLA Enterprise External Business Portal (EEBP). Once a 

is entered into EEBP, the request is automatically routed to Major Comma

(MAJCOM) for approval and sent to the respective service control point (SCP

DFSPs should coordinate funding requests with the applicable MAJCOM and

via email for their review and comment prior to submission in EEBP. The SCPs

provide support for entering requests into EEBP. The contact information for 

following three SCPs is in Appendix E

 Army Petroleum Center (

 Naval Petroleum Off

 Air Force Petroleum Agency 

The SCPs verify the EEBP request is eligible for funding and ensures that v

and complete environmental funding requests are channeled to DLA Energy fo

processing. For a funding request to be considered eligible for DLA Energy funds

it must directly support the DLA bulk petroleum management mission and be

related to capitalized product. Funds for approved requests will be provided 

through a military interdepartmental purchase request (MIP

In addition to inputting the request into EEBP, DFSPs should provide documentation to support the costs with the request, such as an itemized break

of the costs, independent estimates, or receipts and invoices from previous or 

similar expenditures. To assist with organizing costs, an example cost worksheet

available for your use is provided in Appendix 14−1; however, additional information is necessary to validate funding requests. Without adequate documentation 

of estimated costs, DLAEnergy cannot fund a projec

The request for recurring compliance costs should be submitted annually,

typically at the beginning of the fiscal year (October) for which they are needed.

Other environment-related project funding requests may be submitted throughout the year

Exhibit 14−2 shows the categories of environmental costs that DLA Ener

normally funds. In the text that follows, you’ll find examples of these categories,

as well as examples of exceptions that will not be funded.

For funding requests, use the DLA 

Enterprise External Business Portal 

(EEBP) https://business.dla.mil and 

be sure to include supporting documentation in your request, such 

as Independent Government Cost 

Estimates (IGCEs), statements of 

work, contract award documents, 

invoices, and other documents.

Don’t Forget...
Chapter 14 DL

Energy Fuding Support 14-

EXHIBIT 14−2

DLA Energy-Funded Environmental Costs

Type of Project Examples of Funded Expenditures Examples of Non-funded 

Expenditures

Environmental

Documents

 Spill Prevention, Control, and

Countermeasure (SPCC)Plan

 Facility ResponsePlans ()

Integrated ContingencyPlans

(C)

 Stormwater PollutionPrevention

Plans (S)

Revisions to documents not

related to the storage and 

distribution of capitalized 

product

 Documents that do not 

have a federal, state, or local 

regulatory driver

Centrally Managed 

Leak Detection Progra

Regulatory compliancedriven leak detection testing

requirements

Emergency tank and pipeline

confirmation, Location, and/or 

inspection

Annual certification ofHansa and

Vista leak detection systems

Annual certification of Leak

Manager leak detection systems

Testing and monitoring

of tanks and pipelines 

not related to capitalized 

product or facilities

ExercisesTrainin Spill prevention and response 

exercises and underground 

storage tank (ST) operator

training for DLEnergyC

facilities as part of a centrally 

managed program

Training is the responsibility

of the military service; 

however, installation 

personnel may attend DL

Energy organized training

as space allows

Routine Sampling

and Testin

Petroleum, oil, and lubricant (PO

tank air emissions testing

 Stormwater, groundwater, or 

wastewater permit monitoring 

 Lab analyses prior to discharge 

(that is, before tank-bottom 

draining)

 Lab testing for vapor recovery and 

emission control equipment

 Material and supplies used to 

sample, test, and/or prepare PO

waste for disposal (except items 

listed in non-funded expenditure 

column)

 Sampling and testing for 

waste or discharges from 

non-capitalized product

 Sampling and testing of 

spent solvents

Removal and

Disposal of PO

Wastes

Hazardous waste generated, such

as tank-bottom wastewaters, 

off-specification fuel that can’t 

be reblended, and disposal of lab 

waste from approved testing

 Waste not generated from 

the storage or distribution 

of capitalized product

Absorbent pads,

contaminated rags, and 

other consumable items 

used for small spill cleanup

Universal wast

Fees for Spill 

Cooperatives

 Membership fees for oil spill 

cleanup cooperatives and oil spill 

removal organizations (SRO

OperatingPermits

and Fees

Annual recurring environmental

permit fees assessed by federal, 

state, or county governments

Annual air emission inventory fee

 Fees for permits not related 

to capitalized product, such 

as sanitary sewer permits 

for an entire base
14-4 Chapter 14 DLA Energy Funding Supp

Type of Project Examples of Funded Expenditures Examples of Non-funded 

Expenditures

Fines and Penalties  Fines incurred at POL facilities wi

be reviewed on a case-by-case 

basis

 Fines due to gross 

negligence or failure to 

take action by the Military 

Department

POL Spill Cleanup  Capitalized product spill respons

at OGO and GOCO fac

 Spills resulting from gross 

negligence or willful 

misconduct by the Military 

Department civilian, 

military member, or 

contractor; COCO operate

sites; foreign locations 

unless there is an applicable 

international agreement 

that appears to require such 

remediation

National

Environmental

Policy Act (

Analyse

 EPA analyses for sustainme

restoration, and modernization 

(SRM) projects (in general)

involving capitalized product 

infrastructure

 EPA analyses for

projects.

 EPA analysis 

Contractor-Owned

Contractor-Operated

(COCO) faciliti

14.2.1 Revisions to Environmental Documents

DLA Energy provides funding for the revision of required environmental compliance documents and Emergency Response Plans through a MIPR or the Ce

Managed Program contract. The environmental compliance document must b

directly related to the storage of capitalized product. For instance, if a fuel facility 

is located within the boundary of a military installation, DLA Energy will fund th

portion of the document directly related to tanks that contain capitalized products. Installations are responsible for providing funds to cover the non-capitalized

product portion of the plans. Examples of environmental compliance documents

funded by DLA Energy are preparation and revisions to SPCC Plans, FRPs

and SWPP

14.2.2 Centrally Managed Leak Detection Program

DLA Energy has a centrally managed leak detection program for capitalize

product facilities worldwide. The program provides

 Tank tightness testin

 Annual pressurized line tightness testin

 Leak confirmation, location, and/or inspection

 Incidental repair

 Annual certification of permanent leak detection system

The centrally managed and funded program provides environmental regulatory

compliance for DLA Energy’s tanks and pipelines while allowing for optimizatio

of the testing and monitoring services.
Chapter 14 DLA Energy Funding Support 1

14.2.3 Centrally Managed Exercises/Training Program

Training required by environmental regulations is the responsibility of the

military service or installation. DLA Energy provides training to DLA Ene

GOCO contractors under a centrally managed program, such as spill preventi

and response exercises and UST operator training. Installation personnel a

strongly encouraged to attend the DLA Energy training events conducted at thei

installation; however, there may be instances where space is limited. Check with 

your SCP or DLA Energy environmental program staff for information regardi

current training courses.

14.2.4 Routine Sampling and Testing

DLA Energy funds sampling and testing of POL emissions and discharges as

environmental cost if the cost of both sampling and testing involves capitalized 

product.

Lab analyses are eligible costs. For instance, permits or regulations may require 

the services of a laboratory before tank-bottom draining or stormwater discharge. Lab analyses will determine if these wastes require treatment before 

being released into a public sewer or treatment plant or aid in proper characterization before being managed off-site.

Other areas of funding include testing of

 Vapor recovery and emissions control equipment that requires laboratory or 

consultant services

 Stormwater, groundwater, or wastewater monitoring

 Waste characterization

14.2.5 Removal and Disposal of POL Wastes (Except 

Consumables)

DLA Energy funds removal and disposal of hazardous POL wastes as an environmental compliance cost through a MIPR if the cost is directly linked to faci

containing capitalized product.

Examples of approved costs are disposal of tank-bottom wastewaters; sludges;

off-specification fuel that cannot be reblended; disposal of small amounts of laboratory wastes from approved sampling and testing; and material and supplies 

used to sample, test, and/or prepare POL waste for disposal (except items listed i

non-funded expenditure column). Examples of materials/supplies include drums,

labels, gloves, and Tyvek suits

POL removal and disposal costs that are not funded includ

 Wastes not generated at a DLA Energy-owned bulk storage facility (such a

flight line and fuel barge operations)

 Costs for absorbent pads, contaminated rags, and other consumable items 

used for day-to-day operational, small spill cleanups

These costs are the responsibility of the installation
14-6 Chapter 14 DLA Energy Funding Supp

14.2.6 Fees for Spill Cooperatives

Based on review, DLA Energy may fund membership fees for spill cooperatives a

environmental compliance costs through an MIPR. Oil spill cleanup cooperati

provide a more efficient and economical oil spill response than a single company 

can provide. The operation of a cooperative ranges from basic (two companies

sharing equipment) to complex (full-scale corporations with communication 

headquarters and on-site supervisors who call in additional materials, labor, and 

equipment).

14.2.7 Operating Permits and Fees

DLA Energy funds recurring annual permit costs through a MIPR if the c

involve capitalized product that may affect the environmental quality of air and/or 

water.

Examples of accepted costs include fees for fill stands, fuel storage tanks, oil

water separators, pipelines, and hydrant systems.

In addition, federal, state, county, or regional regulatory agencies may require

annual fees for National Pollutant Discharge Elimination System (NPDES) o

operating permits. The fees may be administered by state environmental agencies, such as a water quality board or air quality management district

DLA Energy will pay for general conformity evaluations in accordance with th

Clean Air Act (refer to Chapter 6, AirEmissions

14.2.8 Fines and Penalties

DLA Energy reviews fines incurred at POL facilities and considers reimbursement on a case-by-case basis. If approved by DLA Energy, these costs are 

through a MIPR. Submit your request through EEBP and be sure to attac

notice of non-compliance or notice of violation and other supporting documentation. Fines attributable to gross operator negligence or willful misconduct or if 

attributable to a failure to take action by the Military Department are not funded 

by DLAEnergy

14.2.9 POL Spill Cleanup

To be funded for capitalized product spill cleanups, you must promptly notify

DLA Energy of a spill and then request funding. Handle fuel spills as emergencie

Begin cleanup actions as soon as possible to minimize total government spill 

cleanup costs and limit the spread of contamination. The military installation is

responsible to fund initial spill response costs, and DLA Energy will reimburse th

host installation. DLA Energy will not reimburse the host military installation fo

military and civilian personnel salaries, except for those overtime hours of federal 

civilian employees directly involved in the spill response and/or cleanup.

Requests for costs associated with spill cleanup and remediation sites are to be

made through EEBP. In addition, it is recommended that a courtesy email

submitted to the SCP notifying them of the request. Documentation needed for

spill response and cleanup fund requests includes the following:

 Situation report or incident report

To be funded by DLA Energy, the 

cost incurred by the facility must 

be directly related to the storage 

of capitalized product.

Did You Know? 
Chapter 14 DLA Energy Funding Support 1

Projects with supportable requests 

that are well-documented are more 

likely to be approved and funded.

Don’t Forget...

 Breakdown of costs associated with initial response and cleanup efforts

 Itemized costs for proposed cleanup action

 Projected schedule for long-term remediation cost

DLA Energy will review costs submitted for funding and will fund applicabl

spill-related costs. Spill kit and containment supplies are not routinely funded, 

except if they are replacements for equipment used and the request is accompanied by the spill or incident report.

Cleanup of spills from operations that are not the responsibility of DLA Energy ar

not normally funded by DLA Energy but will be evaluated on a case-by-case basis

Some examples include:

 Flight line spills

 Vehicle fuel dumping

 Ship-to-ship fuel transfer

 Spills resulting from gross operator negligence and/or willful misconduct

Costs associated with these types of spills will be funded by the individual military 

service.

Refer to Chapter 2, Incident and Spill Reporting for more information on spill

reporting and DLA Energy’s rapid response cleanup contract. Chapter 8

Assessmentand Cleanup provides information on cleanup programs and remedial technologies.

14.2.10 Funding Policy where Pre-existing Contamination May 

Exist

Program Budget Decisions (PBD) 735 and 726 consolidated the responsibilit

for the management of bulk petroleum products from the services to the (then) 

Defense Fuel Supply Center of the DLA. PBD 726, issued in 1991, states

“Environmental cleanup responsibilities for conditions existing before the consolidation (October 1, 1992) will remain with the current owner of the facility. DLA will 

assume responsibility for any cleanup efforts that arise subsequent to the transfer.” 

It was clearly the intent of Office of the Secretary of Defense that remediation o

existing environmental problems would remain the duty of the owning service.

DLA Energy funding will be provided only for cleanup of capitalized products. 

a leak or spill of capitalized product should occur in an area where pre-existing 

service contamination of any type resides, DLA Energy will fund only the portio

of the cleanup that DLA Energy determines is directly related to the quantity o

capitalized product that was leaked or spilled. This applies to petroleum-contaminated sites that occurred prior to October 1, 1992, or DLA Energy capitalizat

of the site, whichever occurred first, and to areas of non-petroleum hazardous 

material contaminated sites, regardless of when they occurred.

Capitalized product spill cleanup funding will not be used to supplement the 

services cleanup funding for the pre-existing contamination. Cleanup projects 

complicated by areas of pre-existing contamination will be funded only to a level 
14-8 Chapter 14 DLA Energy Funding Supp

consistent with a cleanup of the quantity of capitalized product that was leaked 

or spilled. In such a case, a cost sharing agreement between DLA Energy a

the owning service will be established to define cleanup levels and apportion 

responsibilities.

14.2.11 National Environmental Policy Act Reviews

TheNEPA review process is required for proposed actions at federal facilitie

integrate environmental considerations into decision-making. Refer to Chapter 13,

NEPA Process and Resource Planning for more details on the applicability of N

Funding for EPA reviews will be determined on a case-by-case basis 

depends on the extent to which the proposed action is affecting capitalized 

product. In general, DLA Energy will fund te NEPA analyses for SRM p

and DLA MILCON projects for analyses that are beyond a Categorical Exclu

(CE). Depending on the scope of work, MILCON projects often warrant 

more extensive EPA reviews, such as an Environmental Assessment 

Environmental Impact Statement (EIS); it is unlikely that a MILCON p

would qualify for a CE. SRM projects also requir NEPA analysis; however, u

MILCON projects, many SRM projects may qualify for a CE. In most c

reviews for MILCON and SRM projects are conducted and funded by the h

facility in accordance with the host facility’s EPA guidane. NEPA revie

be completed for the MILCON or SRM project before funds for the project 

released or allocated. DLA Energy requests copies of MICON NEPA d

for recordkeeping purposes. If DLA Energy funding is used for NEPA, DL

requests documentation for review to ensure that all EPA requirements for 

project have been met. The host facility is responsible for funding any necessary

environmental mitigation (for example, wetland mitigation or air credits) as a 

result of the EPA review; however, DLA Energy will fund any necessary compliance cleanup of capitalized pr

14.3 Funding Differences by Owner

There are three types of facilities that use DLA Energy produc

 Government−Owned/Government−Operated (GOGO) fa

 Government−Owned/Contractor−Operated (GOCO) faci

 Contractor−Owned/Contractor−Operated (COCO) facili

DLA Energy’s program and funding responsibilities are different for each typ

of facility. Exhibit 14−3 summarizes the DLA Energy program or funding actio

by facility type based on DoD Manual 4140.25, Volume 8, DoD Management of 

Energy Commodities: Energy Commodity Infrastructure Operati
Chapter 14 DLA Energy Funding Support 1

EXHIBIT 14−3

DLA Energy Environmental Program Responsibilities for Various Facilities

DLA Energy Action GOGO

DLAPermitted

GOCO

COCO

Plan, program, budget, and fund projects for

environmental compliance

Yes Yes

Fund environmental assessments and statements for 

proposed new construction projects as required by 

NEPA and DoD Directive 60

Yes Yes

Upon request, provide support to military services

in interpreting applicable environmental regulations 

and in developing projects to bring terminals into 

compliance

Yes Yes

Fund environmental permits and compliance 

requirements

Yes Yes

Execute environmental permits and compliance

requirements

No Yes

Develop and maintain compliance plans, such as FRPs

ICPs, and SPCC P

Yes Yes

Reimburse installations for emergency expenditures

associated with a capitalized product release

Yes Yes 

Note: Table excludes foreign-located and foreign-operated base

14.4 For More Information

For Information On... See...

DoD Manual

DoD Manual 4140.25, Volume 8, DoD Management 

of Energy Commodities: Energy Commodit

Infrastructure Operatio

General suppor

DLAEnergy−Customer Interaction Center (80

286−7633 (800 2 TOP

email: dlacontactcenter@dla.mil

DLA Enterprise External Busine

Portal (EEBP) http://www.dla.mil/Energy/Business/E

For More Information
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Chapter 14 DLA Energy Funding Support 14

Appendix 14−1 Worksheet for Environmental Compliance Costs

CHAPTER 14

Appendix
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Chapter 14 DLA Energy Funding Support 14

Appendix 14-1: Worksheet for Environmental Compliance Cost

Environmental Compliance Costs

Request Funding via Enterprise External Business Portal (EEBP)

Major Command 

Installation

DODA C

Office

Address

 

(City) (State) (Zip Code)

PO  DSN

Commercial Phone No  Fax N

Email

Date document was completed: (MM/DD/YR

a. Annual revision of operations documents a

b. Sampling and testing of emissions and discharges b.

c. Removal and disposal of POL wastes

d. Fines and penalties d.

e. Spill cooperative fees e.

f. Operating permits and fees f

g. Infrastructure improvements g

h. National Environmental Policy Act review

TOTAL COSTS 

NOTE: Upload your request to EEBP and forward the completed worksheet to your service control point for validati

Installation Management for Energy−Environmental Division (8725 John J. Kingman Road Fort Belvoir, VA 22060−6

Attach support documentation, such as itemized costs, estimates or quotes, similar or prior year receipts and invoices, etc

A copy of all information provided to DLA Energy must also be provided to your Major Command or Major Claimant and respect

service control point.

If the office listed above is not the funds office for your facility, attach a cover letter identifying the office and address where DLA Ener

should send all funding documents.

If additional information is required, contact the appropriate personnel in the organizational charts given in Appendix

Compliance Cost Category EST FY Cost

($ Dollars)
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