Turn Green into Benefits for your Business

1. Turn Green into Benefits for your Business September 29, 2010

2. Meet your moderators John Nix Senior Engineer FPL Mike Hildebrand, Director Business & Residential Market Services E Source Stephanie Spalding, Senior Associate E Source Brendan Connelly Manager Target Greg Cope, Manager National Accounts Manager FPL

3. Meet your panelist Tracie Bagans, Manager, Corporate SMB Accounts FPL

4. Agenda • Why “Go Green” • What it means to “Go Green” • Benefits of green practices • Examples of green solutions • Target case study • Developing and implementing a green policy • FPL programs and services • Certification options • Resources to help you get started

5. U.S. Building Impacts Conserving energy and reducing waste in our buildings significantly affects environmental savings We spend as much as 90 percent of our time in buildings, including offices, stores, restaurants, schools, hotels, places of worship and more.

6. A systematic approach to sustaining planetary resources, based on recognition that human consumption is occurring at a rate that is beyond Earth’s capacity to support it What is Sustainable Development? • Development that meets the needs of the present without compromising the ability of future generations to meet their own needs • A sustainable building in construction, operation or disposal cannot: • Consume materials unless they can be easily and harmlessly extracted, used and returned to nature • Consume non-renewable energy • Destroy natural habitat, bio-diversity, or bio-mass, or • Release waste of a type or quantity that cannot be harmlessly broken down by natural systems Terms like “sustainable” and “green” are commonly used; However, their meanings are often misunderstood.

7. What is the difference between the terms Green and Sustainability? While green is a fitting term, it does not encompass the full meaning of sustainability Sustainability means maintaining complete ecological balance indefinitely The difference between Green and Sustainable is the degree to which the design maintains this ecological balance. Some green designs have no impact of maintaining ecological balance, such as indoor environmental quality measures Green vs. Sustainability The word “Green” can have many meanings, depending on the circumstances

8. What are the areas of sustainable development? Sustainable site planning Safeguarding water and water efficiency Energy efficiency and renewable Conservation of materials and resources Indoor environmental quality All of these are contained in the LEED Standard Leadership in Energy and Environmental Design Areas of Sustainable Development Sustainable buildings are designed, constructed and operated using practices that reduce and eliminate the cradle to grave negative impacts of buildings on the environment and occupants

9. Business owners have a unique opportunity to make a significant contribution while realizing measurable benefits Why Go Green? • Environmental benefits • Reduce the impact of natural resource consumption • Economic benefits • Improve the bottom line • Health and safety benefits • Enhance the comfort and health of occupants • Community benefits • Improve quality of life

10. Green initiatives provide direct benefits to all parties with an interest in the building Green Benefits by User Type Economic Productivity Image

11. New construction projects Build in green features from the ground up Retrofit projects Upgrade and install more efficient equipment Green initiatives Rally your staff to save by making behavioral changes Three Ways to “Go Green” Regardless of whether your company is small or large, various ways exist for businesses to “go green”

12. When developing a green policy for the first time, start with the basics and keep it simple Simple Steps to Green Solutions • Get buy-in • Motivation spreads. Get your team excited about a cleaner and healthier working environment. • Recycle • Get creative. Consider recycling glass, plastic, newspapers, fluorescent tubes and electronics. • Pay attention to the data • Schedule an FPL Business Energy Evaluation • Call 1-877-748-4BEE, or • Contact your FPL account manager, if you have one. • Experiment with cleaning • Block cleaning or shifting services to daytime hours can result in significant savings. • Stop wasteful usage • Use motion sensors, watt stoppers and plug-load controls to eliminate unnecessary power use.

13. Understanding the key ingredients is key to the success of your plans Ingredients for a Successful Green Building • Commitment • Goals • Team Involvement • Effective Execution

14. Regardless of your company size or type, green initiatives can help you save Small and Medium Sized Business Enterprise Government / Institution Focus: Low-cost, no-cost initiatives based on business type and size Focus: Employee action campaigns combined with energy-efficient investments Focus: Employee action campaigns combined with subsidized energy-efficient investments Aspen Middle School Ivy Ventures Polaris Property Management

15. Whether your company is large or small, a good way to start saving is to evaluate your existing practices and identify opportunities for improvement Sample Best Practices • Gulf Coast Community Foundation of Venice • Created a green team to identify and implement best practices • Scheduled and implemented recommendations made during an FPL Business Energy Evaluation • Installed more energy-efficient light bulbs • Tinted windows • Raised thermostat from 72 to 74 degrees • Put ENERGY STAR appliances in kitchen • Switched water cooler to refrigerator with water dispenser

16. Polaris Property Management Uses office equipment efficiently Replaced a desktop fax with an all-in-one machine Puts computers in sleep mode when not in use Uses Smart Cars, ultra-low emission vehicles Sample Best Practices Changes in the office environment add up to big savings for your business

17. Recycling is another way that small and medium-sized businesses can save money while protecting the environment Sample Best Practices • Ivy Ventures • Reuses paper that is blank on one side and prints on two sides • 30 percent of paper used is recycled paper • Takes newspapers and magazines to community centers for kids’ art projects

18. The following case studies demonstrate how other varying types of businesses, project sizes and project types all produced significant energy savings Case Studies – Energy-efficiency Focused • Retail Store • Office Building Corporate Headquarters • Pharmaceutical Facility • Middle School

19. Small retail spaces can easily go green Background: Sprint Retail Store • Location: Overland Park, KS • Building Owner: Sprint • Property Manager: Sprint • ENERGY STAR Rating: 2009 (92 out of 100), 2008 (92) • Total Floor Space: 5,570 sq ft • Year Constructed: 2006 • Contract Type: Multiple Contractors • Financing Type: Internal Capital • Project Type: Retrofit

20. Keeping things simple is a great first step Details: Sprint Retail Store • Water-efficient plumbing fixtures - low-flow toilets and faucets • Significant factor in earning ENERGY STAR rating of 92 out of 100 • High-efficiency rooftop HVAC incorporating premium efficiency motors and sustainable HFC-410A (Refrigerant 410A)  • HVAC units also equipped with 100 percent economizers (not very effective in high humidity climates such as Florida) • Lighting systems incorporate high-lumen output per watt T8 fluorescent lamping and lighting controls • Occupancy sensors turn lights off when not in use  Source: EPA/Energy Star

21. Office space achieves three-year payback on $138,000 Background: Armstrong World Industries Corporate Headquarters • Location: Lancaster, PA • Original Construction: 1998 • ENERGY STAR Rated: 2006 • LEED Platinum Certified: 2007 • 126,000 sq ft office building • $138,000 investment • Three-year energy-saving payback • Project Type: Retrofit

22. Employee comfort and safety is also key Details: Armstrong World Industries Corporate Headquarters • Daylighting reaches more than 50 percent of the occupied spaces • Occupancy sensors reduce unnecessary lighting • Double-paned, argon-fill, low-e glazed exterior windows • Building automation system • 2,000,000 kWh of wind power purchases/year Source: USGBC – LEED

23. Big savings from a big pharmaceutical company Background: Roche Pharmaceutical • Location: Palo Alto, CA • Project Type: Retrofit • Campus: 17 buildings, over 1M sq ft, primarily housing laboratories for R&D • 40 percent electricity savings and 41 percent natural gas savings over six years • Total load cut from about 10 MW (megawatts) to 8 MW in three years Source: E Source Best Practice Report

24. Get employees involved to bolster cost savings Details: Roche Pharmaceutical • Employee action • 5 -10 percent reduction in campus energy use by turning off lights, computers, and other equipment, and by scheduling experiments for off-peak hours • Lighting • 27,000 lamps and associated ballasts retrofitted. Three- and four-tube T12 fluorescent fixtures converted to operate two T8 lamps with reflectors • Incandescent bulbs were replaced with compact fluorescent lamps and LED exit signs • Occupancy sensors in over 700 offices and labs ensure that lights are off in unoccupied rooms Source: E Source Best Practice Report

25. Find something that works and replicate it, replicate it…. Details: Roche Pharmaceutical • Cooling systems • Replaced three large chillers with centrifugal chillers that are 60 percent more efficient • Ventilation system • Variable-frequency drives (VFDs) were installed on ventilation supply and exhaust fan motors to increase system efficiency • Can adjust fan speeds according to time of day and day of week, and adjust building ventilation based on outside temperature, time of day, duct static pressure, and building carbon dioxide levels. Annual energy savings: $500,000 • Fume vent hoods • Used in laboratories to exhaust air for health and safety reasons. Represented approximately15 percent of Roche PA’s pre-retrofit energy costs • Lowered the sashes on 51 fume hoods; Cost: $105,000; annual energy savings: $80,000 Source: E Source Best Practice Report

26. Build physically and mentally to be green from the start Background: Aspen Middle School • Location: Aspen, CO • Project Type: New Construction • Replacing older building • Owner: Aspen School District • Architect: Hutton Ford Architects, P.C. • Engineer: Beaudin Ganze Consulting Engineers, Inc. • First school in Colorado certified LEED Gold • 111,500 sq ft • Operating at half the utility cost of the previous smaller building • Total project cost: $25,600,000 Source: BGCE Engineers

27. In addition to being energy efficient, Aspen Middle School is aesthetically appealing Aspen Middle School Source: BGCE Engineers

28. Take advantage of nature and new technologies Details: Aspen Middle School • Transpired Solar Collector to pre-heat outside air • High-efficiency lighting systems with daylighting and occupancy sensor controls • Solar shading and ventilation design to eliminate need for mechanical cooling • Direct/indirect evaporative cooling • Variable air volume (VAV) air handling units utilizing heat pipe heat recovery sections • High-efficiency condensing boilers for hydronic heating • Direct Digital Control (DDC) building management system • Waterless urinals, and other reduced water flow fixtures Source: BGCE Engineers

29. Target is dedicated to sustainability and aligns initiatives to five key areas Environmental Sustainability Issue Priorities and Point-of-view Statements HEALTHY MATERIALS SUSTAINABLE RAW MATERIALS CARBON WASTE WATER We are committed to reducing our dependence on non-renewable materials. We seek to use sustainable materials that originate from renewable, sustainably managed, or recyclable sources. We believe that an efficient enterprise is one in which waste streams are eliminated or captured and repurposed.  We are taking steps to become a zero waste company by improving operations, and are reducing waste for our guests by streamlining our products and packaging. We believe that clean water is a non-renewable resource in certain regions, and that we have a responsibility to be a steward of water resources. We are taking steps to reduce our water footprint and are developing partnerships to address the water-related impacts of our supply chain. We are committed to creating well-designed and reasonably priced products for our Guests, and we believe that healthy materials are one component of good design.  We are taking steps to utilize healthier materials in our stores and products as they become available. We are committed to reducing the global carbon footprint of our organization. We are increasing energy efficiency, piloting new technologies, transitioning to renewable energy sources, and offsetting our impacts.

30. Our sustainability journey to date positions us well as we continue to move toward increased transparency, and more clearly defined priorities Timeline

31. Upgraded lighting helps preserve the environment and save money Efficiency Project Example: 2 Lamp Retrofit • Pre-retrofit • 3 or 4 lamp fixture • Acuity T8 fluorescent • 30 or 32 W per lamp • 3-lamp fixture total wattage: 97 • 4-lamp fixture total wattage: 112 • Universal (Triad) ballasts • High frequency electronic • Post-retrofit • 2 lamp fixture • Acuity T8 fluorescent • 28 W per lamp • 2-lamp fixture total wattage: 65 • GE Ballasts (UltraMax) • Electronic high-efficiency

32. The 2-lamp retrofit was a successful sustainable project with support from FPL 2-Lamp Retrofit Results • Store lighting levels do not compromise guest shopping experience or brand standards • Per store savings are typically over 200,000 kWh for 125,000+ sq. ft. facilities • FPL incentive programs help offset heavy up-front capital costs

33. Once your company has exhausted all of the no-cost, low –cost options, it’s time to identify opportunities for equipment upgrades Upgrade Considerations ROI • Visit www.energystar.gov to access ENERGY STAR’s free online tools to benchmark energy consumption • Consider a sequenced approach to your upgrades • Start with steps that have low capital requirements and allow synergy between systems Fan & Motor Systems Plant Upgrades Load Reduction Lighting Tune Up TIME When developing your upgrade plan and sequencing approach, focus on sizing, operation, and controls

34. More energy-efficient equipment reduces energy costs, has fast payback and often qualifies for lease/purchase financing Energy-efficient Upgrades • HVAC equipment • A higher SEER means more electric savings • May qualify for FPL incentives and tax credits • Preventive maintenance keeps your system at top operating performance and at highest energy savings • Filtration system • Air filtration ranges from low-end fiberglass to medium efficiency to 99 percent plus efficiency • Monthly filter replacement with a medium to high-efficiency filter keeps the coil clean and running efficiently • Insulation • An inexpensive way to increase building efficiency • Reflective roofing upgrades

35. Germicidal ultraviolet lights and equipment to modify outside air control are good ways to cost effectively improve air quality and control Energy-efficient Upgrades • Thermostat • As minimal as switching a single thermostat to a building energy management system • Design controls for each individual space maximize savings • Install locked enclosures • Germicidal ultraviolet lights • Help prevent growth of germs, bacteria, viruses, mold and other microorganisms inside your air handling unit • Improve indoor air quality and aid in the efficiency of your system • Modified outside air control • Demand Controlled Ventilation (DCV) • Modify the amount of outside air based on space occupancy and CO2 concentration

36. Energy recovery and conservation units recycle air to generate savings Energy-efficient Upgrades • Energy Recovery Ventilation • Transfers energy between the streams of exhaust air and outside air • Pre-treats the outside air, saving energy costs and system capacity • Heat Recovery Unit • Uses waste heat from your air conditioning system to heat your domestic water • Improves air conditioning efficiency by 13 percent according to test reports • Can be used regardless of equipment size • Heat pump • Install on your existing water heater • Cools your indoor space while heating your domestic hot water

37. The cost of heating and using water isn’t typically top priority in a business setting, but the costs can be significant Energy-efficient Upgrades • Solar hot water heating • Use solar panel to pre-heat or heat domestic water • Can be used on electric or gas water heating systems • Recycled laundry wastewater • Reuse up to 80 percent of laundry water • Rain water collection • Collect and store rain water to use in landscape sprinkler systems • Plumbing systems • 1.28 gallon toilets are new on the market (1.6 gallon required) • 20 percent more efficient than the standard • Urinals are now .5 gallons per flush or waterless

38. Upgrading lamps and ballasts can make a big difference in your electric bill Energy-efficient Upgrades • Lighting • Replace old fixtures with new high-efficiency fluorescent fixtures, individual compact florescent light bulbs or light emitting diodes (LEDs) • Install occupancy sensors in rooms not used often (restrooms, offices, storage rooms, conference rooms, etc.)

39. FPL programs align with LEED certification criteria Leadership in Energy & Environmental Design (LEED®) • What is LEED? • A leading-edge system for designing, constructing, operating and certifying the world’s greenest buildings • Developed and administered through the U.S. Green Building Council (USGBC) • The nation’s foremost coalition of leaders from across the building industry working to promote buildings that are environmentally responsible, profitable and healthy • Created to: • Facilitate positive results for the environment, occupant health and financial return • Define “green” by providing a standard for measurement • Prevent false or exaggerated claims • Promote whole-building, integrated design processes

40. The LEED system has become a respected standard Benefits of the LEED Certification System • Serves as a design guideline • Recognizes leaders • Stimulates green competition • Establishes market value with a recognized national “brand” • Raises consumer awareness • Transforms the marketplace

41. LEED is a points-based system that uses a whole-building approach to encourage and guide a collaborative, integrated design and construction process LEED Certification • Five credit categories • Minimum design prerequisites • Accumulate points in each category • Four levels of LEED certification: • Certified Level 40 - 49 points • Silver Level 50 - 59 points • Gold Level 60 - 79 points • Platinum Level 80+ points LEED Credit Categories For more information about LEED certification, visit the United States Green Building Council at www.usgbc.org

42. FPL DSM programs help earn LEED points Qualifying FPL Programs • Energy and Atmosphere (E&A) • LEED points earned for energy-saving measures incorporated into building design • Lighting • All HVAC programs • Indoor Environmental Air Quality (IAQ) • LEED points earned for maintaining minimum ASHRAE 90.1 air quality performance standards • Demand Control Ventilation (DCV) • Innovation and Design Process (I&D) • LEED points earned for off-peak generation programs such as Thermal Energy Storage (TES) • Sustainable Sites • LEED points earned for Building Envelope • Solar film / screens • Reflective roof coatings / membranes

43. The U.S. Environmental Protection Agency uses a comparative rating system to award ENERGY STAR labels to top performers ENERGY STAR • Buildings and manufacturing plants can earn the ENERGY STAR label, just like your refrigerator • EPA research indicates that buildings labeled ENERGY STAR consume about 40 percent less energy than typical buildings • An ENERGY STAR qualified facility: • Uses less energy • Less expensive to operate • Causes fewer greenhouse gas emissions • ENERGY STAR ratings must score in the top 25 percent based on the EPA’s National Energy Performance Rating System • To determine performance, the EPA compares energy use among other, similar types of facilities on a scale of 1 to 100 To access the ENERGY STAR portfolio manager to calculate a score for your building or get more information, visit www.energystar.gov

44. FPL will provide you with the tools needed to get started with your green plans Next Steps • Regardless of your company size or type, green initiatives can boost your bottom line • Start with the basics and keep it simple • Call FPL today to schedule a Business Energy Evaluation • Call 1-877-748-4BEE or • Talk to your FPL account manager, if you have one