GUIDING THE PATH TO GREEN THE BOMA LEED SEMINAR June 9 th, 2009 OUTLINING THE LEED PROGRAM Presented by, Dennis Thurman Senior Vice President of Engineering & National Director of Energy Programs TRANSWESTERN

GUIDING THE PATH TO GREEN Since 1999, Transwestern has been the leader in sustainability. Through partnerships with the Environmental Protection Agency (EPA) and the U.S. Green Building Council (USGBC), we continue to prove the business case for green everyday. Our approach is simple: We believe in the integration of sustainable building and operational measures into standard business practices. GREEN FACT: We can eliminate $1 billion a year in wasted electricity if we turn off power strips when they are not in use.

GUIDING THE PATH TO GREEN Begins benchmarking buildings in – 2005 ENERGY STAR ® Partner of the Year 2006 – 2009 ENERGY STAR Sustained Excellence 224 buildings currently ENERGY STAR benchmarked benchmarked in the last nine years Partnering with the EPA GREEN FACT: Consider buying only ENERGY STAR ® labeled computers. The low power mode they adjust to when not in use reduces energy consumption by up to 70%. Chicago Transit Authority (CTA) Gold Certified LEED-EB MARATHON OIL TOWER – HOUSTON

GUIDING THE PATH TO GREEN 20 million SF (50+ buildings) registered LEED - for Existing Buildings: O&M Pilot Portfolio Program Created certification process of policies and procedures to help measure building compliance Two buildings Gold Certified LEED-EB (Chicago Transit Authority, Wellington Webb in Denver) Partnering with the USGBC GREEN FACT: If just 10% of us would keep our cell phone or BlackBerry for 3 years before replacing it, we could save an average of 5.2 million phones from disposal each year. WELLINGTON E. WEBB BUILDING Gold Certified LEED-EB

GUIDING THE PATH TO GREEN What are the major components of LEED GREEN FACT: Every passenger mile we fly emits 0.64 pounds of carbon dioxide. What’s your total contribution to carbon emissions? Flight Miles per Year ____(x 0.64) = Year Total What is LEED? LEED is the Leadership in Energy and Environmental Design and the Nationally accepted benchmark for the design, construction and operation of high-performance Green buildings. LEED is administered by the U.S. Green Building Council (USGBC) What’s it do? The LEED rating system measures performance in five key areas of human and environmental health. LEED measures the level of Green performance in the design, construction and operation of buildings. It is a points based system. In buildings they have 4 major award certification categories. New construction (NC) Existing Buildings Operations & Maintenance (EB:O&M) Commercial Interiors (CI) Core & Shell (CS) These categories can be certified on 4 levels. Certified Silver Gold Platinum

GUIDING THE PATH TO GREEN GREEN FACT: By recycling paper, offices can reduce by 50% the waste we send to landfills – that is 33 million tons of waste diverted – enough to save 561 million trees annually. What are the 5 performance criteria that the USGBC use? Sustainable Sites (26 possible points) Water Efficiency (14 possible points) Energy & Atmosphere (35 possible points) Materials & Resources (10 possible points) Indoor Environmental Quality (15 possible points) There are also Innovation in Operation points available as well (6 possible points) And now Regional Priority (4 possible points available) What is the difference between the LEED 2008 & LEED 2009 V-3 that went into effect on April 27 th ? LEED 2008 needed only 32 points for EB certification, LEED 2009 EB-OM needs 40. LEED 2008 had up to 10 points for Energy Star benchmarking score, LEED 2009 has up to 18 points. There are less points now available for Green Cleaning and more available for Alternative Transportation. EB-2009 will be easier to submit, but not make the certification process easier. The performance period is a minimum of 3 months.

GUIDING THE PATH TO GREEN GREEN FACT: ENERGY STAR labeled air conditioning units use 20-40% less energy than standard systems. If all new homes were installed with ENERGY STAR units, we could save $100 million annually. Key prerequisites for LEED-EB-O&M certification. Energy efficiency with an ENERGY STAR score of at least 69 Water efficiency with minimum requirements for fixtures and fittings Zero use of CFC-based refrigerants (unless replacement cost is more than 10 years) Minimum air-quality standards consistent with ASHRAE requirements Sustainable policies for purchasing and Green cleaning What are some of the costs associated with LEED certification? Registration by a member of the USGBC is $450 dollars, non USGBC member is $600 Costs to become certified vary on the existing condition of the building and what is needed to achieve the prerequisites and credits necessary for certification The actual certification costs to the USGBC are based on the square footage of the property

GUIDING THE PATH TO GREEN GREEN FACT: Every 10 aluminum cans recycled saves 4 pounds of carbon. Every 10 glass bottles recycled saves 3 pounds of carbon. Recycling newspapers can save 50 pounds of carbon a year. Transwestern was one of only two companies selected by ENERGY STAR to be featured in a public service announcement. The PSA will run throughout 2008 in such magazines as National Geographic, Money and National Real Estate Investor. What is the LEED AP program? The LEED AP program is intended to support and encourage the operations, maintenance, upgrade and project team integration required by LEED to streamline the application and certification process. Basically a LEED Accredited Professional has studied all the requirements of LEED and has shown that knowledge by passing the LEED exam given by the GBCI. These individuals can help you achieve your LEED goals faster, cheaper and with more expertise on credit interpretations and intent. A LEED AP also garners you one innovation credit on your project.

GUIDING THE PATH TO GREEN CHICAGO TRANSIT AUTHORITY (CTA) Gold Certified LEED-EB What are the cost associated with becoming a LEED Accredited Professional? The costs can vary depending on the classes and learning materials you purchase. The exam itself costs $300 to take. There is a $30 Dollar re-scheduling fee if you need to postpone. The industry has many classes being offered, BOMA & the USGBC have many webinars available etc. to help you achieve your LEED Accreditation. What kind of time does it take me to become LEED accredited? The timing of achieving your LEED accreditation is determined by the individual. It takes some time and dedication to study and review all the training materials. Having study groups and talking to other LEED accredited professionals is another great way to study and learn the requirements of LEED. Flash cards and practice tests are available through the GBCI. The actual test is administered through the GBCI and Prometrics.

GUIDING THE PATH TO GREEN Energy performance improved by 74% Installed variable frequency drive on 750-ton chiller ENERGY STAR score increased from 74 to 82 Annual energy savings up 40% ENERGY STAR labeled each year since 2005 $400,000 increase in property’s value LEED Registered and in the last leg of certification Case Study Main Irvine, California 2040 MAIN – SOUTHERN CALIFORNIA

GUIDING THE PATH TO GREEN Certified Gold under LEED-EB rating ENERGY STAR score increased 83 to 87 in 2006 Expenses declined 1.4% 12% reduction in utility expenses Uses 33% less water Green roof returns 500,000 gallons of water annually Cost to owner: Less than $38,500 for greening Case Study – Chicago Transit Authority CHICAGO TRANSIT AUTHORITY (CTA) Gold Certified LEED-EB

GUIDING THE PATH TO GREEN Additional tools to help guide your path to green… ENERGY STAR U.S. GREEN BUILDING COUNCIL RECYCLING & WASTE MANAGEMENT GREENER FACILITIES Thanks, here are some helpful web-sites for your use. Dennis Thurman A recent CoStar study demonstrates in the first quarter of 2008 that Green buildings vs. non Green buildings return the following: Higher direct rental rates of $ vs. $31.00 Higher occupancy rates of 91.5% vs. 88.0% Higher sales price of LEED vs. Non-LEED: $ psf vs. $ psf

GUIDING THE PATH TO GREEN BEEP in partnership with the EPA’s Energy Star Program along with BOMA member expertise have formed a six class series using a sequenced approach on low-cost solutions to achieve operational excellence in Commercial Real Estate. Benefits: Decrease energy use and operational costs Increase competitiveness, asset value, NOI, & tenant satisfaction Earn recognition for your efforts on energy efficiency & environmental stewardship Training: 6 Web-assisted audio seminars

GUIDING THE PATH TO GREEN

The 6 BEEP Audio Seminars # 1) Intro to Energy Performance # 2) How to Benchmark Energy Performance # 3) Energy Efficient Audit Concepts & & Economic Benefits # 4) No and Low Cost Operational Adjustments to Improve Energy Performance # 5) Valuing Energy Enhancement Projects & Financial Returns # 6) Building an Energy Awareness Program

GUIDING THE PATH TO GREEN

Fun Energy Facts, DID YOU KNOW? There are devices in your office that use electricity when the device or appliance is not in use? Some examples are computers, computer monitors, fax machines, copiers and printers not in sleep mode. What do I do with this information? Start by looking around your office. Implement an audit of wasted energy at your building. You will be amazed at the power consumption of your personal office uses after you leave for the day. Consider purchasing a power strip equipped with an occupancy sensor. The Wattstopper power strip has 6 controlled outlets by the sensor and 2 uncontrolled strips that don’t turn off.