Naval energy efficiency has been on a steady march, and now the Navy is poised to expand on that trend with the introduction of a new standard: the 1031 tax-exchange exchange.
The Navy has long been one of the top suppliers of gas to its submarine fleet, and in 2016, it took home $17.4 billion in tax revenue.
The Navy also receives about $1.7 billion in subsidies from the federal government, and that figure is expected to grow even further with the Navy’s goal of reducing its carbon footprint by 35% by 2030.
The new standard for the 1051 tax-Exchange Exchange will allow the Navy to exchange tax revenue and other subsidies that have been a key source of revenue over the past several years, as well as help it reduce carbon emissions.
In addition to tax-exposed credits, the 1021 standard includes new tax-exempt rebates for electric vehicles and renewable energy, as long as the vehicle is certified for a specified energy efficiency rating.
These rebates will be distributed to owners of electric vehicles as well, and the Navy has already started accepting bids on the program.
The 1031 standard will be available for sale beginning March 15, 2020, and is expected not only to provide an efficient, cost-effective energy exchange, but to also help to spur a significant and long-term increase in submarine fleet carbon sequestration.
“We are proud to offer this energy-efficiency standard to the fleet of U.S. Submariners, which is a cornerstone of our mission to support and protect the national security interests of our allies, allies, and partners,” said Secretary of the Navy Ray Mabus in a statement.
“This energy-efficient standard will make our Submariner fleet more energy-independent, reducing the need for maintenance, increasing fuel savings, and reducing fuel consumption.”
The Navy will be offering the 1041 standard to all subs, and its application is expected for a few months after the Navy completes the first fleet of the new standard.
“The 1041 tax-change exchange will provide an easy and cost-efficient way for the Navy and its Submarining partners to better compete with other countries for these vital dollars, making a significant contribution to the defense and national security of the United States,” said Rear Admiral Joseph Hickey, commander of the U.K. Fleet and a member of the Joint Chiefs of Staff.
“The Navy is pleased to be supporting this program, which will benefit the Navy at home and abroad.”
The 1031 and 1041 standards will be phased in over a period of two years, and then the Navy will roll out the 1081 standard.