Driving North American Polyiso Growth Jared Blum, President PIMA

1. Driving North American Polyiso Growth Jared Blum, President PIMA PU Europe Annual Meeting Venice, Italy 10/299

2. Overview • State of American economy and polyiso sales • Present PIMA activities and policy issues promoting insulation growth • 2011 and beyond

3. PIMA Members • Atlas Roofing Corporation • Firestone Building Products • Hunter Panels • Johns Manville • Rmax Inc.

4. PIMA Associate Members • Air Products & Chemicals • BASF Corporation • Bayer Material Science • BYK • COIM USA, Inc. • ConocoPhillips • Evonik Goldschmidt Corporation • GAF Materials Corporation • Huntsman • ICL-IP America • InvistaS.À.R.L • Momentive Performance Materials • Owens Corning • OXID L.P. • Reynolds Flexible Packaging • Stepan Company • Tamko Building Products, Inc.

5. PIMA’s Mission Statement “PIMA is the unified voice of the rigid Polyiso industry and a proactive advocate for safe, cost-effective, sustainable, and energy-efficient construction.”

6. 2010 PIMA Task Groups Energy Efficiency Sustainability Advanced Wall Systems Product Standards and Codes Competitive Products

7. The Ethics of Energy Conservation “Concern for man himself and his fate must always form the chief interest of all technical endeavors, in order that the creations of our mind shall be a blessing and not a curse to mankind. Never forget this in the midst of your diagrams and equations." - Albert Einstein, 1931 “Insulation is sexy” - President Barack Obama, 2009

8. U.S. Economic Headwinds Construction unemployment tops 27%- U.S. GDP growth Q2 1.7% for 2010 Architectural and Engineering services still recording downturn Manufacturing expands at slowest rate in 10 months in September Public construction climbing from stimulus-will it continue? Private Non residential spending down 24% from 2009

9. Polyiso Performance • Still highest R-value per inch, only product with 3rd party certification, no ODP or GWP • PIR still commands 70% commercial roof insulation market • 2006-2008 average annual growth 7% -4.5 billion board feet per year • 2009 PIR production down 31% from 2008 • 2nd Quarter 2010 up 2.5% over 2009 numbers

10. Events still drive efficiency policies U.S. Coal Mining and Oil drilling disasters reinforce danger of dependence on fossil fuels Sustained $85-90 a barrel of oil through 2012 Record temperatures, glacial melting, coral bleaching Zero Energy Buildings focus of Federal Policy National Surveys show voters still want action on EE and renewables, but energy security the focus Expansion of high thermal requirements in LEED and Green Codes

11. 2010 PIMA Public Outreach PIMA advocacy with U.S. Congress - Initiated PIMA Board Congressional Meetings as follow up on late 2009 Congressional Reception Release of Bayer Material Science energy study supports high insulation values in various forums PIMA Leadership of Building Star Coalition recognized by White House Sponsorship of EEGlobal 2010, SBIC “Beyond Green Award,” High Performance Building Congressional Caucus Presentation “Insulation and Energy Codes” webinars and training programs for AIA

12. White House Meeting

13. 2010 Policy Issues PIMA successfully urges tax incentives for roof insulation be included in two high profile pieces of legislation PIMA successful effort to focus federal government on roof efficiency and building codes Successful support for envelope R-value increases for national standard Pursue adoption of increased state ASHRAE R-value requirements -34 states have done so PIMA Congressional testimony helps increase funding for EPA Energy Star Building and DOE programs

14. Polyiso and Sustainability • Highest thermal efficiency • Net positive energy contribution • Global warming net reduction • ACC/Mckinsey Study-Bayer Study • Zero odp without gwp penalty • Effective resource management • Effective life cycle management • Industry leadership

15. Lifetime GWP • Insulation Material Blowing Agent Lifetime GWP * (kgCO2 / ft2 · R) • Polyisocyanurate Pentane 0.0317 • Expanded Polystyrene Pentane 0.0360 • Mineral Wool None 0.0455 • Spray Polyurethane Water (CO2) 0.0455 • Spray Polyurethane HFC-245fa 1.48 • Extruded Polystyrene HFC-134a 1.77 * “Net Climatic Impact of Solid Foam Insulation Produced with Halocarbon and Non Halocarbon Blowing Agents” L.D. Harvey Building and Environment August 2007, republished in Environmental Building News, June 1, 2010.

16. Polyiso and Sustainability “Substituting extruded polystyrene with insulation made with polyisocyanurate reduces the greenhouse gas payback from 65 years to just 2.7 years. Now that’s green.” Forbes Magazine August 26, 2010

17. Zero Energy Buildings and Roofs • Zero energy buildings require high envelope performance and roof top energy production • In U.S. 85% of Nation’s Commercial buildings 3 stories or less • Median size is 28,000 square feet • In US High thermal roof retrofits can save $6 billion annually – retail, office and school buildings study • In Germany PassivHaus and the UK Code for Sustainable Homes level 6 have shown that very low or zero carbon buildings require high thermal roof performance • U.S, Goal of zero energy buildings by 2030

18. Building Energy Labeling • No national requirement yet • Provisions in stalled climate legislation • ASHRAE Pilot Program • California Point of Sale Disclosure Requirement-utilize U.S. EPA Energy Star Statement of Energy Performance

19. 2011Reroofing and Polyiso • 50 billion square feet of existing commercial roofs provide huge opportunity • Local and global issues all impact roofs • Storm water runoff • Urban Heat Island • Peak Electricity Loading • Many older codes weak on requiring energy efficient measures during re-roofing – Needs to be fixed • Only way to move building stock to zero energy is to add insulation and new roof when adding solar panels • Energy Security and Production • Extreme Climate Perturbations

20. Polyiso in 2011? Renovation and retrofit will continue to dominate Pent up demand as economy rebounds Polyiso is clear product of choice- non ozone depleting or global warming gases, 15 year LTTR, Quality Mark 3rd party certification, product history Roof’s Performance will become increasingly critical and recognized High R-values in new and green energy codes Movement to reflectivity plus thermal performance will focus on rooftop’s verifiability of long term energy efficiency Zero energy buildings demand tight, high R envelope Wall application will grow – potential market of one billion square feet wall area per year

21. We do not inherit the earth from our ancestors, we borrow it from our children.  - Native American Proverb