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For a variety of reasons, many Army installations are facing significant and increasing monthly costs in their utility accounts for energy and water services. At the same time, Army installations need to find ways to support operations and installation readiness with declining budgets. The Assistant Chief of Staff for Installation Management (now called the Army Deputy Chief of Staff, G-9 Installations) asked RAND Arroyo Center to identify installations with a high level of contractual commitments and to assess alternative approaches that installations could take to reduce their utility bills while maintaining energy and water security and readiness. Researchers used available data sources to assess the relative magnitudes of different types of installation utility costs, then examined the implications of utility management and market trends in the water, electricity, and natural gas industries for Army installations. Researchers then identified options for reducing installation utility costs in three main areas: reducing commodity payments; finding alternative funding sources for energy and water efficiency technologies, infrastructure and other system investments; and leveraging nontraditional partnerships, particularly with state and local governments. The authors also provide recommendations to help reduce Army installation utility costs while maintaining or enhancing installation readiness.

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To help inform decisionmaking in the event that the Army experiences significant changes to its budget, the U.S. Army Quadrennial Defense Review Office asked the RAND Arroyo Center to provide an update to a previous report that provides an empirical understanding of how Army spending affects communities and states. The second edition of the main report, The Army's Local Economic Effects, presents findings on the economic activity supported by Army spending at the local level. This appendix is an ancillary volume. It provides detailed results of the analysis, organized by state and congressional district. It includes descriptions of the overall economic effects for each state, then delves into more detail by fiscal year, from 2014 through 2017, concluding with a parsing of the data by congressional district, providing maps and calculations. This volume includes Alabama through Minnesota.