1. Session 5 – Sustainable Transportation Projects Understanding Financial Impacts of Green Infrastructure Projects Presented By: Steven Eget, P.E., CEM, Dewberry 1

2. OVERVIEW OF PRESENTATION F RAMEWORK FOR E VALUATING ROI I NTRODUCTION P HILOSOPHIES OF S USTAINABILITY C ASE S TUDY – G REEN R OOFS Q UESTIONS & C OMMENTS 1 2 3 4 5 2

3. INTRODUCTION “S USTAINABILITY WILL BECOME AS TRANSFORMATIVE FOR BUSINESS AS THE EARLIER QUALITY AND INFORMATION TECHNOLOGY REVOLUTIONS ” B LOOMBERG B USINESSWEEK. “W HY S USTAINABILITY I S W INNING O VER CEO S ” M ARCH 31, 2011 3

4. INTRODUCTION CLASSIC DEFINITION OF SUSTAINABILITY “M EETING THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS ” “O UR C OMMON F UTURE ” (B RUNDTLAND C OMMISSION - UN) 4

5. INTRODUCTION WORKING DEFINITION OF SUSTAINABILITY 5

6. SITTING ON A THREE-LEGGED STOOL IN THE REAL WORLD 6 “S USTAINABILITY IS NOT AN UNATTAINABLE NEXUS OF THREE - UNRELATED FACTORS, IT IS A BEST CASE OUTCOME INCORPORATING ALL THESE FACTORS TO THEIR MAXIMUM EXTENTS. I T IS NOT SUSTAINABLE IF YOU CAN ’ T PAY FOR IT !” S TEVEN E GET

7. PHILOSOPHIES OF SUSTAINABILITY A LTRUISTIC P URPOSES (E NV & S OCIAL ) F INANCIAL B ENEFITS D IFFERENT S HADES OF G REEN 7

8. FRAMEWORK FOR EVALUATING ROI T ECHNOLOGY S ELECTION F INANCIAL P ARAMETERS E VALUATE ROIP ILOT T EST AND / OR I MPLEMENTATION 8

9. FRAMEWORK FOR EVALUATING ROI USING CASH FLOW ANALYSIS C ASH F LOW A NALYSIS – S UM OF D EFICITS AND B ENEFITS, I TEMIZED ON P ERIODIC BASIS  D EFICITS : C APITAL I NVESTMENTS, O PERATION AND M AINTENANCE C OST, C OMPONENT R EPLACEMENT, I NSURANCE, F EES  B ENEFITS : T AXES, E NERGY S AVINGS, E NVIRONMENTAL A TTRIBUTES, R EDUCED F EES, E QUIPMENT L IFE E XTENSION 9

10. INTRODUCTION SAMPLE CASH FLOW (2MW S OLAR P ROJECT IN NJ) Payback of Investment in Year 5 IRR = 4.2% 10

11. LESSONS LEARNED EVALUATING ROI  M ULTIPLE T ECHNOLOGIES M AY B E S ELECTED F OR C OMPARISON  N AIL D OWN E VALUATION P ARAMETERS  N O T WO O RGANIZATIONS A RE A LIKE !  C ONSIDER S AVINGS FROM E NVIRONMENTAL ( AND E NERGY ) B ENEFITS  C ONSIDER P UBLIC / P RIVATE O PTIONS  T AX B ENEFITS FOR P RIVATE C ONCERNS MAY I NCREASE S AVINGS  P ILOTS AND S TUDIES FOR N EW T ECHNOLOGIES 11

12. FINANCING MECHANISMS FOR SUSTAINABILITY PROJECTS 12 P RIVATE F INANCING T AX A DVANTAGES M AY I MPROVE S AVINGS D ON ’ T A LWAYS N EED F ORMAL 3P M ORE R ISK – C HOOSE P ARTNERS C AREFULLY ! “P ROFIT ” M OTIVE P ILOTS A ND S TUDIES FOR N EW T ECHNOLOGIES M AY L OWER I NVESTMENT R EQUIREMENTS S OME R ISKS – D O Y OUR H OMEWORK ! S ELF F UNDING S AVINGS M AY P AY FOR P ROJECT “S USTAINABILITY ” G RANTS /P ROGRAMS O N B OOKS

13. EXAMPLES OF PRIVATE FINANCING  F ORMAL 3P A GREEMENTS  T OLL R OADS /B RIDGES  E NERGY S AVINGS P ERFORMANCE C ONTRACTS  G UARANTEED OR S HARED S AVINGS A GREEMENTS  M/V M AY C UT I NTO S AVINGS  P OWER P URCHASE A GREEMENTS  P AY S ET E LECTRIC R ATE FOR S ET T ERM  S ALE / L EASE B ACK  R EAL E STATE 13

14. CON EDISON LEARNING CENTER (LONG ISLAND CITY, NY) 14

15. CON EDISON LEARNING CENTER (VIEW FROM SPACE) 15 COURTESY GOOGLE MAPS (7/20/11)

16. GREEN ROOF DEFINITION G REEN R OOF IS A ROOF OF A BUILDING THAT IS PARTIALLY OR COMPLETELY COVERED WITH VEGETATION AND A GROWING MEDIUM, PLANTED OVER A WATERPROOFING MEMBRANE. 16

17. BENEFITS OF GREENROOFS (DEFINED)  S TORMWATER MANAGEMENT  M AY A LLOW FOR L ARGER B UILDING F OOTPRINT  R EDUCE “T RADITIONAL ” S TRUCTURES  E NERGY S AVINGS  P RIMARILY THROUGH LOWER ROOF TEMPERATURES, REDUCTIONS IN HEAT FLOW AND ADDITIONAL THERMAL MASS  P OTENTIAL TO DOWNSIZE HVAC EQUIPMENT (N EW )  E XTENDED R OOF L IFE  100% INCREASE ANTICIPATED ( NEW )  P OTENTIAL TO EXTEND EXISTING ( RETROFIT )  S ITE S ELECTION /D EVELOPMENT T OOL 17

18. BENEFITS OF GREENROOFS (SOFT)  P UBLIC R ELATIONS / C OMMUNITY S UPPORT  R ESALE V ALUE E NHANCEMENT  M ARKETING T OOL  S OUND M ITIGATION  A ERIAL A DVERTISING  A ESTHETICS  LEED®  E MPLOYEE S ATISFACTION 18

19. CON EDISON LEARNING CENTER (LONG ISLAND CITY, NY) 2 19

20. CON EDISON LEARNING CENTER PROJECT SPECIFICATIONS  B UILDING O WNER : C ON E DISON  L OCATION : L ONG I SLAND C ITY, NY  G REEN G RID ® S IZE : 10,680 FT 2  L ANDSCAPE D ESIGN : C ON E DISON  R OOFTOP S YSTEM : E XTENSIVE [2’ X 4’ M ODULES ]  S TATUS : C OMPLETED J ULY 2008  N OTES : TEST PLOT TO BETTER QUANTIFY THE ENERGY SAVINGS BENEFITS OF GREEN ROOF SYSTEMS. C OLUMBIA U NIVERSITY IS WORKING TO MONITOR LONG - TERM THERMAL AND ENERGY PERFORMANCE 20

21. CON EDISON LEARNING CENTER (ROI)  D ETAILED ENERGY STUDY PERFORMED  Q UANTIFY S AVINGS  C OMPARE W / B LACK & W HITE R OOF O PTIONS  Y EAR -L ONG S TUDY  E XTENDED R OOF -L IFE  A S R ETROFIT, S OME B ENEFITS NOT Q UANTIFIABLE 21

22. ENERGY SAVINGS (THE SPECIFICS)  E FFECTIVE A LBEDO  H OW “ WHITE ” W OULD A R OOF H AVE TO BE TO S HOW S IMILAR T EMPERATURES  D OES N OT A CCOUNT FOR A CTIVE C OOLING & T HERMAL M ASS  E FFECTIVE R-V ALUE  H OW M UCH I NSULATION N EEDED FOR S IMILAR R EDUCTIONS  D RAMATIC S EASONAL V ARIATION, S YSTEM S PECIFIC D ATA N EEDED 22

23. CON EDISON LEARNING CENTER (ROI)  E XPENDITURES  I NITIAL C APITAL I NVESTMENT ($200,000)  A NNUAL M AINTENANCE ($5,000 / YR )  B ENEFITS  NYC T AX B ENEFITS ($4.50/SF OR $24,300 I NITIAL )  L OWER E NERGY C OSTS ($6/SF OR $32,400 / Y R )  A DDITIONAL R OOF L IFE  A DDITIONAL A SPECTS  B RANDING O PPORTUNITY  SAVES NYC M ONEY FOR S TORMWATER C ONTROL  A IR F ILTER C HANGE O UT F REQUENCY R EDUCED 23

24. GREEN ROOF ROI C ON E DISON L ONG I SLAND C ITY, NY Payback of Investment in Year 3 IRR = 37.5% 24

25. OTHER SUSTAINABLE TECHNOLOGIES R OOF T OP S OLAR R AINWATER C OLLECTION 25

26.  S USTAINABLE P ROJECTS C AN B E F INANCIAL A TTRACTIVE A S W ELL  C ASH F LOW A NALYSIS S IMPLE M EANS OF C OMPARING ROI’ S F OR D IFFERENT M EASURES  A LTERNATIVE F INANCING S HOULD B E C ONSIDERED I N A DDITIONAL TO T RADITIONAL ( I. E. S ELF F INANCING )  E DUCATE Y OURSELF O N A DDITIONAL R ISKS  S USTAINABLE P ROJECTS C AN B E F INANCIAL A TTRACTIVE A S W ELL  C ASH F LOW A NALYSIS S IMPLE M EANS OF C OMPARING ROI’ S F OR D IFFERENT M EASURES  A LTERNATIVE F INANCING S HOULD B E C ONSIDERED I N A DDITIONAL TO T RADITIONAL ( I. E. S ELF F INANCING )  E DUCATE Y OURSELF O N A DDITIONAL R ISKS POINTS TO CONSIDER 26

27. P G. 3 B LOOMBERG B USINESSWEEK. “W HY S USTAINABILITY I S W INNING O VER CEO S ” M ARCH 31, 2011 P G. 4U NITED N ATIONS. D OCUMENT A/42/427. “O UR C OMMON F UTURE : R EPORT OF THE W ORLD C OMMISSION ON E NVIRONMENT AND D EVELOPMENT ”. 11 D ECEMBER 1987 P G. 14 D EFINITION F ROM WWW.W IKIPEDIA. COM ON M AY 9, 2011 WWW.W IKIPEDIA. COM P HOTO OF T RADITIONAL G REEN R OOF C OURTESY OF E RIK C HRISTENSEN ( VIA W IKIPEDIA ) P HOTO OF C HICAGO C ITY HALL C OURTESY OF W IKIPEDIA P H. 14 – 17 P HOTOS C OURTESY OF G REEN G RID P G. 19G AFFIN, S. R., R OSENZWEIG, C., E ICHENBAUM -P IKSER, J., K HANBILVARDI, R. AND S USCA, T., 2010. “A T EMPERATURE AND S EASONAL E NERGY A NALYSIS OF G REEN, W HITE, AND B LACK R OOFS “ C OLUMBIA U NIVERSITY, C ENTER FOR C LIMATE S YSTEMS R ESEARCH. N EW Y ORK. 19 PAGES. HTTP :// CCSR. COLUMBIA. EDU / CIG / GREENROOFS HTTP :// CCSR. COLUMBIA. EDU / CIG / GREENROOFS P G. 20 USAEC N EWSROOM. E NVIRONMENTAL U PDATE – W INTER 2007 “T OBYHANNA D EPOT C ROSSES V EGETATIVE R OOF F RONT ” P G. 3 B LOOMBERG B USINESSWEEK. “W HY S USTAINABILITY I S W INNING O VER CEO S ” M ARCH 31, 2011 P G. 4U NITED N ATIONS. D OCUMENT A/42/427. “O UR C OMMON F UTURE : R EPORT OF THE W ORLD C OMMISSION ON E NVIRONMENT AND D EVELOPMENT ”. 11 D ECEMBER 1987 P G. 14 D EFINITION F ROM WWW.W IKIPEDIA. COM ON M AY 9, 2011 WWW.W IKIPEDIA. COM P HOTO OF T RADITIONAL G REEN R OOF C OURTESY OF E RIK C HRISTENSEN ( VIA W IKIPEDIA ) P HOTO OF C HICAGO C ITY HALL C OURTESY OF W IKIPEDIA P H. 14 – 17 P HOTOS C OURTESY OF G REEN G RID P G. 19G AFFIN, S. R., R OSENZWEIG, C., E ICHENBAUM -P IKSER, J., K HANBILVARDI, R. AND S USCA, T., 2010. “A T EMPERATURE AND S EASONAL E NERGY A NALYSIS OF G REEN, W HITE, AND B LACK R OOFS “ C OLUMBIA U NIVERSITY, C ENTER FOR C LIMATE S YSTEMS R ESEARCH. N EW Y ORK. 19 PAGES. HTTP :// CCSR. COLUMBIA. EDU / CIG / GREENROOFS HTTP :// CCSR. COLUMBIA. EDU / CIG / GREENROOFS P G. 20 USAEC N EWSROOM. E NVIRONMENTAL U PDATE – W INTER 2007 “T OBYHANNA D EPOT C ROSSES V EGETATIVE R OOF F RONT ” REFERENCES 27

28. CONTACT INFORMATION S TEVEN E GET, P.E., CEM D EWBERRY 600 P ARSIPPANY R OAD P ARSIPPANY, NJ 07054 P HONE : 973-576-3646 C ELL : 732-610-0333 F AX : 973-739-9710 E MAIL : SEGET @ DEWBERRY. COM 28