Safety & Security in High-Performance Buildings Scott Sklar The Stella Group, Ltd.

1. Luncheon BriefingIntroduction to High-Performance Buildings:How Buildings Keep Americans Safe, Grow the Economy, and Protect the EnvironmentTuesday May 24, 2011

2. Safety & Security in High-Performance BuildingsScott SklarThe Stella Group, Ltd.

3. The Stella Group, Ltd.. is a technology optimization and strategic policy firm for clean distributed energy users and companies which include advanced batteries and controls, energy efficiency, fuel cells, heat engines, mini-generation (natural gas), micro-hydropower, modular biomass, photovoltaics, small wind, and solar thermal (including day-lighting, water heating, industrial preheat, building air-conditioning, and electric power generation). The Stella Group, Ltd. blends distributed energy technologies, aggregates financing (including leasing), with a focus on system standardization. Scott Sklar serves asSteering Committee Chair of the Sustainable Energy Coalition, composed of the renewable energy and energy efficiency trade associations and analytical groups, and sits on the national Boards of Directors of the non-profit Business Council for Sustainable Energy, Renewable Energy Policy Project, and Sklar is an Adjunct Professor at the George Washington University teaching a unique multidisciplinary sustainable energy course. On November 4, 2010 Secretary Locke approved Sklar's appointment to the Department of Commerce Renewable Energy and Energy Efficiency Advisory Committee (RE&EEAC). The Stella Group, Ltd. 1616 H Street, NW, 10th fl Washington, DC 20006 202-347-2214 (f-2215) www.TheStellaGroupLtd.comsolarsklar@aol.com

4. • Seven previous Administrations – going back to President Nixon, who warned of the dangers of our nation’s growing reliance on foreign oil. It was 1973 when President Nixon set a national goal of developing the ability to “meet our own energy needs without depending on any foreign sources.” He called it Project Independence, and predicted meeting that goal within seven years. • Marketplace, Tuesday, July 15, 2008 Twenty-nine years ago today, President Jimmy Carter told Americans that the energy crisis was “a clear and present danger to our nation” and drew out a plan to address it. • Feb 1, 2006 ... Bush, Resetting Agenda, Says U.S. Must Cut Reliance on Oil. Stephen Crowley/The New York Times. President Bush after delivering his State of ... www.nytimes.com/2006/02/01/politics/01bush.html –

5. Oil Addiction: Fueling Our Enemies Jonathan Powers, Truman National Security Project February 17, 2010 • The U.S. sends approximately one billion dollars a day overseas to import oil. While this figure is staggering by itself, the dangerous implications of our addiction are even more pronounced when analyzing where our money goes – and whom it helps to support. • Examine what the true costs of our oil addiction meant during the year 2008:1 • One Billion Dollars a Day Spent on Foreign Oil: • Our Annual Oil Debt Is Greater than Our Trade Deficit with China: Our petroleum imports created a $386 billion U.S. trade deficit in 2008, versus a $266 billion deficit with China. This national debt is a drain on our economy and an anchor on our economic growth.

6. U.S. NAVY The Navy Strike on Energy Use 8:47 AM Monday May 9, 2011  |   Eighteen months ago, the U.S. Navy announced  it would source roughly half of its energy from alternative sources by 2020. Since then, the Navy has launched a number of innovative green projects, such as switching some Marine forward bases in Afghanistan from fossil fuels to solar power.

7. U.S. ARMY The primary goal is a focus toward net zero and when we talk about net zero, it's not only net zero energy, but it's net zero energy, water, and waste. When you look at the term "net zero" or a hierarchy of net zero you must start with reduction, then progress through repurposing, recycling, energy recovery, disposal being the last. --Ms. Katherine Hammack,Assistant Secretary of the Army for Installations and Environment (ASA I&E). DoDBloggers Roundtable, 10 October 2010

8. U.S. AIR FORCE One of the Nation's Largest Energy Users Has Ambitious Plans to Cut Back DINA FINE MARON of ClimateWirePublished: May 28, 2010A (NYT) As the Air Force seeks to realize both its own and federally mandated energy efficiency goals, its top energy official is pressing for better ways to measure progress. Energy needs at military installations, which account for about 40 percent of the Defense Department's greenhouse gas emissions, are expected to balloon as thousands of troops return to home bases from Iraq and Afghanistan.

9. Camp Pendleton Marine Corp Base Award: 2008 SDG@E Large Sustainable Communities Champion Daylight Inside’s Contribution: Designed, manufactured and installed passive daylighting Light Harvest Fixtures in 43 buildings Results: Average 75 fc for 8 hours per day, reduction of kWh usage, safer working environment Annual Savings: Estimated$238,000 Referral: “MCB Camp Pendleton is including daylighting installations in future modernization projects and would recommend the services of Daylight Inside.” Jeff Allen, Energy Manager, Camp Pendleton, USMC www.daylightinside.com

10. DoD ALTERNATIVE / RENEWABLE ENERGY? ... The earth is finite. Fossil fuels are not renewable. In this respect our energy base differs from that of all earlier civilizations. They could have maintained their energy supply by careful cultivation. We cannot. Fuel that has been burned is gone forever. In the face of the basic fact that fossil fuel reserves are finite, the exact length of time these reserves will last is important in only one respect: the longer they last, the more time do we have, to invent ways of living off renewable or substitute energy sources and to adjust our economy to the vast changes which we can expect from such a shift. May 14, 1957 Energy Resources and Our Future Rear Admiral Hyman G. Rickover, USN

11. Thank You! Scott SklarThe Stella Group, Ltd. 1616 H Street, NW, 10th floor, Washington, DC 20006 Phone: 202-347-2214 (f-2215) Email: solarsklar@aol.com Website: www.TheStellaGroupLtd.com

12. How High-Performance Buildings Create Jobs, Save Taxpayer Money, and Conserve the Environment Cliff Majersik Executive Director, Institute for Market Transformation (IMT)

13. U.S. Building Industry • Represents more than 50% of the nation’s wealth • New construction and renovation activity amounts to over $800 billionannually • Responsible for 13% of the GDP • Employs over ten million people (5% total U.S. employment)

14. Today’s Realities • New construction outlook remains weak • Construction sector unemployment around 20% • Buildings responsible for 42% of U.S. energy consumption; building energy use projected to grow • $422 billion annual energy costs • 70% of U.S. electricity consumption • 39% of U.S. CO2 emissions • To remain competitive and profitable we must reshape the efficiency of our building sector

15. “When it comes to saving money and growing our economy, energy efficiency isn't just low hanging fruit; it's fruit laying on the ground.” - Secretary of Energy, Steven Chu • Promotes job creation and economic growth • Reduces consumer energy bills • Strengthens property values, revitalizes communities • Reduces dependence on fossil fuels • Ensures a stable & reliable electric system • Lowers greenhouse gas (GHG) emissions • ENERGY EFFICIENCY:

16. U.S. GDP Expansion as a Function of Energy Efficiency Improvements, 1970-2008 Macroeconomic Impacts U.S. Gross Domestic Product GDP Index (1970=1) Productivity growth as a function of energy efficiency improvements Expansion of the economy, based growth in labor, capital, and energy Source: Laiter, Skip. ACEEE adapting Ayres and Warr (2009) using BEA and EIA data.

19. Lowest Cost ENERGY SOURCE

20. Oil Imports, National Security Source: Center for American Progress, 2010

21. Economic Impacts

22. High Performance Buildings: Benefits to Owners, Tenants • Lower utility bills, operating expenses • Benefits beyond energy savings: • Increase in building value • Higher rent premiums • Increased occupancy rates • Marketing/PR value • Increase worker productivity • Reduced employee sick days • Enhanced ability to attract and retain employees

23. Thank you! www.imt.org Cliff Majersik Executive Director, IMT cliff@imt.org

24. High-Performance Building Finance: Opportunities, Barriers & Federal Policy Leanne Tobias, Malachite LLC www.malachitellc.com 301-320-9060 leanne.tobias@malachitellc.com

25. High-Performance Real Estate: The Value Proposition • Delivery costs have become competitive • Superior investment potential and revenue stream • Operating cost reductions (vs. most conventional properties) • 30%+ reductions on utilities • Small insurance premium reductions • Market acceptance: Faster lease-up and sales, top tier rents and sale prices • Excellent opportunity for capital providers • Market imperfection: capital is not entering the sector Knowledge barriers: return concerns Need policy fixes HOK Offices Culver City, CA

26. King County, Washington, Residential Sales Price DataSeptember, 2007- January,2010

27. High-Performance Commercial Buildings: Superior Financial Performance LEEDEnergy Star Premium Direct rental rates: + 5.8% + 2.1% Effective rental rates: + 5.9% + 6.6% Sales prices +11.1% +13.0% Energy Star buildings regression analysis $1 savings in energy costs from increased thermal efficiency returns: ~$13 in increased valuation (average) ~ 8% cap rate (average) Source: Eichholtz, Kok, Quigley, Sustainability and the Dynamics of Green Building: New Evidence on the Financial Performance of Green Office Buildings in the USA, RICS, October 2010

28. Continued Corporate Demand for Space in High-Performance Buildings • November 2010: • 73% would pay a premium: • 50% even without energy cost savings • 23% if rental premium offset by energy cost reductions Financing Barriers & Policy Fixes Source: CoreNet, Jones Lang LaSalle

29. Financing Barriers & Federal Policy Fixes Financing Barriers Federal Policy Fixes • Underwriting: lack of metrics • Residential underwriting: energy savings not considered 3. Second liens = high risk 4. New lending product: returns uncertain • National research database: costs, savings, paybacks • SAVE legislation: Fannie, Freddie, FHA, VA include energy savings when considering borrower incomes • 3. Federal loan guarantee pilots (DOE, FHA) • PACE reauthorization • Enhanced federal tax incentives • (IRC Section 179D)

30. Thank You!HIGH-PEFORMANCE BUILDINGSHigh Value Leanne Tobias, LEED AP, Managing Principal 301-320-9060 leanne.tobias@malachitellc.comwww.malachitellc.com

31. Building Codes & Standards Lynn G. Bellenger, P.E., FASHRAE ASHRAE President American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)

32. ASHRAE Standards Development Publish Approval Repeat

33. Key ASHRAE Standards

35. Thank You! Lynn G. Bellenger, P.E., FASHRAE ASHRAE President Email: lbellenger@pathfinder-ea.com Phone: 585-325-6004 ext. 105

36. Building Codes for High- Performance Buildings Dave Karmol, VP Federal & External Affairs International Code Council (ICC)

37. Building Codes: Developed Nationally, Adopted Locally • All 50 States adopt the International Building Code (IBC)a model code from the Intl. Code Council. Covers all aspects of commercial buildings: structural integrity, life safety, exit requirements, plumbing, HVAC, electric, lighting, insulation, materials, etc. (other Code Council model codes cover residential, zoning, existing buildings, etc.) • State and local building officials, as well as industry, participate and vote on the development of Code Council model codes & they are revised and republished by the Code Council every 3 years. Jurisdictions often modify the model code, to meet local circumstances and concerns. • IBC insures structural and systems integrity and life safety: an essential starting point for High Performance buildings.

38. International Green Construction Code (IGCC) • Now going through its final development phase, the IGCC is coordinated and consistent with the IBC. • Developed in partnership w/AIA, ASTM, USGBC, ASHRAE, and IES, it also incorporates the ASHRAE 189.1-2009 Standard for the Design of High-Performance Green Buildings, as a compliance option.

39. International Green Construction Code (IGCC) • An Adoptable, Useable and Enforceable code • Intended to reduce the negative impacts of the built environment on the natural environment • Addresses • Conservation of: Natural Resources, Materials, Energy, Water • Air & indoor environmental quality • Owner education • Has been adopted (as an optional code) by Maryland, Florida, Rhode Island, and by several cities and at least one tribal government.

40. For more information and updates check the ICC Websitewww.iccsafe.org/igcc

41. Thank You! Dave Karmol Vice President, Federal and External Affairs International Code Council (ICC) Email: dkarmol@iccsafe.org Phone: 202-370-1800, ext 6243

42. Research and Development for High-Performance Buildings Ryan M. Colker, J.D. Director, Consultative Council/Presidential Advisor National Institute of Building Sciences (NIBS)

43. R&D Needs to Achieve Building Goals • Individual systems & technologies importance • Onsite renewables • Controls • Metering • Plumbing • HVAC • Plug Loads • Power Systems (CHP, Smart Grid, etc.) • Need focus on optimization & interactions to achieve high-performance • How systems interact in a whole building • Relationships among HPB attributes • Energy/Water Nexus • Sustainability & Safety and Security • Cost Effectiveness & Safety, and Security & Sustainability

44. R&D Needs to Achieve Building Goals • Support integrative technologies • Building Information Modeling (BIM) • Simulation modeling • Commissioning • Common metrics and baseline data • Greater focus on social sciences & economics • Recommendations • R&D tax credit • Whole building approach to incentives • Federal government as a leader, market driver

45. Thank You! Ryan M. Colker, J.D. Director, Consultative Council/Presidential Advisor National Institute of Building Sciences (NIBS) Email: rcolker@nibs.org Phone: 202-289-7800 x133

46. R&D for High-Performance Buildings Lynn G. Bellenger, P.E., FASHRAE ASHRAE President American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)

47. ASHRAE Research

48. ASHRAE Research Process All research sponsored & supervised by a Technical Committee Publish Approval Monitor

49. Research Funding

50. Current Projects • 1478-RPMeasuring Air-tightness of Mid- and High-Rise Non-residential Buildings • 1544-RPEstablishing Benchmark Levels and Patterns of Commercial Building Hot Water Use • 1322-RPProductivity and Perception Based Evaluation of Indoor Noise Criteria • 1596-RPVentilation and Indoor Air Quality in Retail Stores