Energy Efficiency Building Retrofit Program Green Schools Alliance - April 17, 2010

1. Energy Efficiency Building Retrofit ProgramGreen Schools Alliance - April 17, 2010

2. Introduction to CCI The Clinton Climate Initiative (CCI) Mission Make a difference in the fight against climate change in practical, measurable & significant ways: • Projects Not Targets • Reduce Emissions • High Impact • Large Scale • Global

3. Introduction to CCI

4. Energy Efficiency Building Retrofit Program 4

5. CCI Building Retrofit Program Why Existing Buildings? • Most Significant Environmental Impact • Most Effective Energy Security Impact • Huge Market • 4.8M Commercial Buildings • 3B devices • Huge Financial Opportunity • Upfront investment = $520 BILLION • NPV savings achievable by 2020 = $1.2 TRILLION *Source: McKinsey & Co, “Unlocking Energy Efficiency in the US Economy,” July 2009

6. CCI Building Retrofit Program US Building Stock is Ready for a Retrofit +/- 90% > 20 years old The majority of the existing US Building Stock is in need of an upgrade *http://eetd.lbl.gov/ie/pdf/LBNL-43640.pdf

7. CCI Building Retrofit Program Cost/Benefits of Energy Efficiency Contributions to reductions in global warming pollution Cutting U.S. Global warming pollution by 80% by 2050: Cost and payoff by sector SOURCE: NRDC (http://www.nrdc.org/globalwarming/blueprint/default.asp)

8. CCI Building Retrofit Program Energy Efficiency Building Retrofit Program • Focus on Existing Buildings • Partner with Cities, Institutions and Commercial owners To implement cost-effective, holistic, scalable energy efficiency projects • Partner with Leading Financial Institutions To develop models / products to finance energy efficiency retrofits • Work with Best-In-Class Energy Efficiency Contractors To promulgate best practices in project development • Partner with Suppliers of Energy Efficient Products To reduce retrofit costs and provide access to leading edge technologies

9. CCI Building Retrofit Program Program Goals • Develop pilot “model” projects in different geographies and real estate sectors • Use these pilots to identify systematic barriers to scalability • Focus on replicable solutions to these barriers

10. CCI Partnership Model BUILDING OWNERS CCI Building Retrofit Program Implementing Partners Discounted products Technology Suppliers Discounted products Energy savings guarantee Commercial financing products Discounted products Incentives to do retrofit Financial Institutions Cities 10

11. CCI Building Retrofit Program The Role CCI Plays • Pro bono 3rd party Project Facilitator • Catalyze projects, develop and share models, grow the market • Facilitate Project Development and Implementation • Industry-vetted Strategic Framework • Connect building owners with best-in-class contractors, service providers & financial partners • Work to ensure that owner’s interests and expectations are met • Support building owners that are committed to taking action, and implementing projects that significantly reduce energy use and make good business sense

12. The Role CCI Plays Provide Technical Advice and Contracting Support Provide support at each project stage Connect owners to technical experts where required Provide equipment procurement assistance Actionable Model Documents and Project Development Tools Facilitate Sharing of Best Practices Share lessons learned from other projects Contracting, project development and implementation Highlight our Partners’ Achievements CCI Building Retrofit Program 12

13. CCI Building Retrofit Program The Building Owner’s Role • Define Project Vision, Goals, and Timeline • Owner controls the project phasing, determines metrics for success. • CCI can assist if desired • Designate an Internal Project Team & Project Manager • The team’s commitment to the program is crucial to successful implementation and persistence of savings • Work with CCI to Identify Appropriate Project Delivery Mechanism and Team Members • Run Bid Processes, Select Project Team & Funding Source • Owner controls the entire process. • CCI can assist where desired

14. CCI Building Retrofit Program Project Delivery Mechanisms ENERGY EFFICIENCY RETROFIT Working under the CCI contracting process RETRO-COMMISSIONING (RCx) Working under the CCI contracting process TECHNOLOGY-SPECIFIC SOLUTIONS Working with the CCI Purchasing Alliance

15. CCI Building Retrofit Program Energy Efficiency Retrofit Contracting Model • Implement holistic best-in-class projects that work financially • Performance guarantee lowers risk on behalf of building owner • ESCO is accountable for turn-key design, project management, construction, and performance measurement & verification • ESCO team works according to terms and conditions of CCI Best Practices, to which all Team members must agree • Savings are maximized and project costs are minimized, through transparency and verification according to CCI Best Practices • CCI offers industry-vetted model documents including: • Investment Grade Audit, Design-Build, Design-Bid-Build, and Energy Performance Contracts • Supplemental procurement documents (RFQ, RFP, etc) • Additional financial and other tools to streamline project and proposal development

16. CCI Building Retrofit Program Retro-Commissioning (RCx) Retro-Commissioning focuses on maximizing operation efficiency by holistically analyzing a building’s systems and equipment to uncover opportunities to improve the ways they function together. BENEFITS OF RETRO-COMMISSIONING (RCx): • Reduce Energy Consumption – 16% median O&M savings with average payback of 1.1 years • Extend equipment life • Improve occupant comfort and indoor environmental quality • Improve O&M Staff training and performance • First step towards LEED Certification RCx WILL DISCOVER ANY DEFICIENCY CAUSED BY: • Deferred maintenance • Incorrect or inadequate system design • Construction deficiencies • Suboptimal control sequences and/or design • Malfunctioning systems or components • Air and Water balance deficiencies * Evan Mills. 2009. "Building Commissioning: A Golden Opportunity for Reducing Energy Costs and Greenhouse-gas Emissions,"

17. Purchasing Assistance for Building Projects Building Technologies Commercial & Industrial Lighting Envelope Technologies HVAC Equipment Negotiated Price Ceilings Typically 5%-40% off best-customer or prevailing prices (based on order size, local market conditions & buyer specifications) Final price negotiated by owner or ESCO at/under CCI ceiling price Technology Selection Criteria Impact on GHG & Energy Efficiency Product Quality & Innovativeness CCI Building Retrofit Program Building Technologies High-efficiency lighting Solar thermal cooling systems High-efficiency and modular chillers Window film White/reflective roofs LED Task Lighting Spray-foam insulation 17

18. Note: Installed prices and availability vary by geography, local labor costs, and installation requirements Technologies and Discounts

19. Sample Projects 19

20. Project team of Johnson Controls, Rocky Mountain Institute, Jones Lang LaSalle, CCI As part of a larger capital improvement project, ESB owner allowed team to review energy measures Team worked through models to maximize efficiency and financial returns Final project integrates a whole building energy efficiency project that will reduce energy use by 38% and CO2e by 105,000 tons over 15 years and has a simple payback of 3.1 years ESB is seeking LEED-EB Gold certification The Empire State BuildingNew York City CCI Building Retrofit Program 20

21. GLA’s Low Carbon Building Unit has created the Building Energy Efficiency Programme (BEEP), an EU-compliant turnkey contracting process for retrofitting Currently retrofitting 42 police and fire stations - another 58 buildings to follow Initial projects will reduce energy use by over 25%, payback in 10 years or less and reduce CO2e by over 4,000 tons per year BEEP will be taken up by other departments, boroughs and cities throughout the United Kingdom Greater London Authority CCI Building Retrofit Program 21

22. CCI Building Retrofit Program City of Seoul • 21 municipal office buildings, City Hall annexes • Project Details • Size: 2M square feet • Project Team • ESCOs: Honeywell • Financing: self-financed • Milestones • Nov 2008: Construction complete on Tranche 1 • Feb 2009: Construction complete on Tranche 2 • Successes • Reducedenergyconsumption 13% in Phase 1 and 8% on Phase 2 buildings • CCI Purchasing Alliance arranged for supply of window-film through CCI partner 3M • NextSteps • Tranche 3 to begin – selecting ESCO

23. Thank You Jason Koman Director, CCI Purchasing Alliance for Energy Efficient Technologies jkoman@clintonfoundation.org 23