U.S. Russia Energy Efficiency Workshop November 17, 2010

1. U.S. Russia Energy Efficiency Workshop November 17, 2010 Public Sector Energy Efficiency Financing Presenter – Amy Chiang, VP Global Energy Government Relations

2. Air Traffic Modernization Biofuels Green Buildings Reduced Emissions Nearly 50% of Honeywell’s product portfolio is linked to energy efficiency. The U.S. could reduce its energy consumption 20 – 25% by immediately and comprehensively adopting existing Honeywell technologies. Energy Efficiency, Demand Response & Smart Grid Energy Performance Contracts Fuel Efficiency Industrial Process Efficiency Creating sustainable jobs today using existing technology and infrastructure

3. Role Government and NGO’s Play

4. US Federal, State, Local Government Engagement • Legislation Enabling EPC process • Vendor selected based on qualifications • Project components competitively bid • Open book pricing guarantees competition • Financial Incentives • Tax incentives • Energy Efficiency Grants • Loan Guarantees • Stimulus Funding • Inducements • Executive Orders for Federal Agencies • Sustainability goals • 2020 GHG reduction targets within 90 days • Push for Building Codes Billions Funneled through State, Local Govt Creating 3 - 4 Million jobs

5. Specific U.S. Stimulus Package Programs • US Department of Energy • Energy Efficiency and Conservation Block Grants (EECBG) - $3.2 billion • States, Units of Local Government, Indian Tribes • State Energy Program (SEP) - $3.1 billion • State Energy Offices • Electric Delivery and Energy Reliability (Smart Grid) - $4.5 billion • Weatherization Assistance Program (WAP) - $5.0 billion • States, community action agencies, other non-profits and local governments. • US Department of Education • Modernization of Schools and Higher Education Facilities - $4.5 Billion • States • General Services Administration • High-Performance Green Buildings - $4.5 billion • General Services Administration for federal facilities. • Department of Defense Modernization - $3.6 billion • Modernization of DOD facilities, including energy-efficiency improvements.

6. Impact of Leveraging Incentives Grants + ARRA + Funds + Guaranteed Program Maximizes Impact, Minimizes Economic Risk * Illustration for comparison purposes

7. Case Studies

8. Minneapolis Public Housing GREEN JOBS • Facility Improvements • High Efficiency Boilers • Weather Stripping • New Controls • New Lighting • New Stoves • Water Conserving Showers • Economics • Bank Investment -- $33.6M • Guaranteed Savings -- $3.7M/yr • Payback Period -- 20 years • Jobs Created -- 250 Manufactured Products • Savings Pay for Program • Reduced Energy Dependence • Significant Job Creation • Local Labor • Engineers • Mechanical Contractors • Electrical Contractors • Residents Savings Fund Improvements, Capital Preserved for Core Mission.… Providing Quality, Affordable Housing

9. City of London, UK Customer Issues • Reduce GHG Emissions and Energy Costs. Joined C40 Climate Leadership Group to share in best practices and committed to reducing its Greenhouse Gas (GHG) Emissions under the Clinton Climate Initiative. Challenge • Reduce carbon emissions in 100 public buildings by 25%+ as part of mayor’s target to reduce total emissions 60% by 2025 • Project paybacks of 10 years or less Solution - Honeywell EPC • Phase I (May 2009): $6.2M USD project in 22 buildings • Lighting Replacement and Controls • Upgraded Building Energy Management Controls • Control of PC’s during night time and in stand-by mode • Building Fabric Improvements • Installation of CHP Plant • Installation of Solar Thermal Hot Water System Benefits • First C40 City to initiate a CCI Retrofit Program • Guaranteed energy savings of $1.0+M per year • CO2 reduction of 3,648 metric tons per year • Improved Facility Infrastructure • 25% electrical and 20% gas reduction