1. Guideline / Rating Program for Environmentally Innovative Roofing Systems A Major Initiative to Transform the Roofing Industry and Establish a Successful Business Model Prepared for: The Center for Environmental Innovation in Roofing Research Committee June 3, 2009 Private and Confidential For review and use by CEIR Members & Staff Only

2. Environmentally Innovative Roofing Standards Agenda Background. Green Building Guidelines and Rating Systems: What We Can Learn. CEIR Board Mandate. Objectives, Strategies, Timetable Guideline Key Elements. Categories, Credits, Measures, Weighting Going Forward: Task Group Organization, Decision / Approval Process “Straw Model” Initial Review & Comment

3. Background How Guidelines Evolve 1. Group Develops Guideline to Address an Issue Guideline Gains Public Interest 2. Group Initiates Programs to Explain & Promote Guideline 3. Guideline Process Expanded to Increase Interest & Address Opposition Guideline Gains Increased Public Recognition 4. Guideline may become a Standard (Usually More Complex) Guideline Encounters Questions & Opposition 5. Educational Programs Expanded To Meet Growing Public Need 6. Accreditation Programs Introduced to Verify Expertise GUIDELINE STANDARD Certificate Guideline Enhanced Guideline or Standard Training Accreditation Ongoing Business Model Established

4. Background Popular Green Building Rating Systems LEED™ for Buildings –Developed by US Green Building Council (USGBC) –Performance standard for a variety of non-residential buildings –Started as an internal guideline in 1998, but is evolving to a more formal consensus process –Now linked to an accreditation program for “LEED-AP” accredited professionals Green Globes –Developed by the Green Building Institute (GBI) –Performance standard for a variety of non-residential buildings –First rating body accredited as a Standards Developing Organization (SDO) by the American National Standards Institute (ANSI) National Green Building Standard™ –Developed by National Association of Homebuilders –Performance standard for residential buildings –Started as a guideline in 2007, but became an ANSI standard in 2009 –Soon to be linked to a practice standard and certification program for accredited “Green Building Verifiers” and certified “Green Building Professionals”

5. Green Building Rating Systems: The USGBC / GBI / NAHB Model Offer a useful product … –Recognition for building green –Increased asset value –Simplified procurement process –Assurance that product is truly green (no “greenwashing’) Delivered by a recognized professional … –Who can educate the customer –Who can provide choices for the customer –Who can adapt the standard to the specific project –Who can verify the standard has been achieved Under a recognized and reputable brand –Increases public exposure –Supports long-term revenue stream

6. Start with an in-house guideline to assure technical ownership and accelerate process Invest in initial branding to assure market ownership Recruit strategic partners to share in the program investment and assure business success –Standards developers –Training providers –Third-party certifiers Green Building Rating Systems: The USGBC / GBI / NAHB Strategy

7. Develop an Environmentally Innovative Roofing Guideline / Rating System that builds value for the Center, its members, and their customers. –The Center: Recognized system “owner” –Our Members: Accredited system “users” –Their Customers: Reputable assurance of “going green” Environmentally Innovative Roofing Guideline / Rating System: CEIR Objectives In order to achieve this objective, resources and timing will be critical

8. Develop an Environmentally Innovative Roofing Guideline similar to USGBC, GBI and NAHB standards –Start with low-slope roofing systems, which are inadequately represented within LEED and Green Globes ands which offer the broadest energy and environmental potential Concurrently develop a branding strategy to build long-term recognition and value for the guideline Start to build public awareness for the guideline and the brand as quickly as possible Identify and recruit key partners to strengthen the guideline and possibly transform it into a formal standard –Standards developer to convert guideline into a standard –Training / accreditation resources to support the standard Environmentally Innovative Roofing Guideline / Rating System: CEIR Strategy

9. Immediately form three key task groups: –Guideline Task Group 6-8 of our most knowledgeable members Supported by Jim Hoff with possible assistance from external consultant Goal: Develop a guideline that encompasses all the benefits of environmentally innovative roofing in an easy-to-understand system –Branding Task Group 4-6 of our most creative members Supported by Mary Mai with additional assistance from branding consultant Goal: Develop a powerful brand for the roofing guideline, including name, tag line, logo, etc. –Business / Resource Task Group 2-4 of our most industry-connected members Supported by Craig Silvertooth Goal: Lay out a long-term business plan, identify and recruit strategic partners, identify and solicit project funding Environmentally Innovative Roofing Guideline / Rating System: Action Plan

10. Environmentally Innovative Roofing Guideline / Rating System: Timetable Guideline Branding Business Model Initial Roll-Out First Draft for Board Review Final Board Review Final Draft for Publishing Initial Brand Concept Final Board Review Name, Tag Line, Logo Initial Business Model Final Board Review Partners Recruited Press Release IRE Presentation July, 2009 November, 2009 December, 2009 July, 2009 September, 2009 December, 2009 July, 2009 September, 2009 December, 2009 January, 2010 February, 2010 By the start of 2010, the green roofing guideline is ready for public promotion, and the key partners are identified and committed to the development of a powerful training & accreditation program.

11. The guideline must emphasize all the ways modern roofing systems contribute to the environment The guideline must emphasize the importance of energy – both saving energy and producing new energy - in meeting environmental goals The guideline must emphasize the importance of durability in achieving long-term sustainability Environmentally Innovative Roofing Guideline / Rating System: CEIR Board Comments

12. Key Categories Category Credits Measurement Scales Weighting of Categories & Credits Environmentally Innovative Roofing Guideline / Rating System: Guideline / Rating System Elements

13. LEED: –Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Air Quality, Innovative Design, Regional Priorities Green Globes: –Project Management, Site, Energy, Water, Resources & Materials, Emissions, Indoor Environment NSF 347: –Informed Product Design, Intelligent Product Manufacturing, Long Term Value, Progressive Corporate Governance, Innovation Tenants of Sustainable Roofing: –Minimize Environmental Burden, Conserve Energy, Extend Roof Lifespan Green / Sustainable Building Guidelines: Key Categories: Examples

14. Energy Impacts –Energy Efficiency, Renewable Energy, Atmosphere / Green House Gas Material & Resource Impacts –Material Re-Use / Recycling, Bio-Based / Rapidly Renewable, Waste Management, Transportation Other Environmental Impacts –Water, Indoor Environment, Emissions Life Cycle Issues –Durability, Life Cycle Assessment, Life Cycle Management Regional Issues –Heat Island, Storm Water Runoff, Low-VOC Social Impacts –Health & safety, employment, community impacts, governance Innovation –Design, Application, Partnership Green / Sustainable Building Guidelines: Common Categories “Environmental” “Sustainable” “Innovative”

15. Energy Management –High R Roofs –Cool Roofs –Rooftop Energy (Solar, Wind, Daylighting) Material & Resource Management –Recycled Content –Re-Use / Recycling –Roofing Waste Management –Bio-Based / Rapidly Renewable Materials –Local / Regional Materials? Durability / Life Cycle Management –Durable Roof System Design –Roof Surface Protection –Roof Drainage Design –Roof Maintenance Management –Product Life Cycle Assessment (LCA) Environmentally Innovative Roofing Guideline / Rating System: Suggested Key Categories Regional Impacts –Heat Island (Extra for Urban Heat Islands) –Storm Water Runoff (Combined Sewers) –Low-VOC (Ozone Non-Attainment) Innovation –Design, Application, Partnership

16. Environmentally Innovative Roofing Guideline / Rating System: Category Weighting Assume most roofing materials have relatively low direct influence on many environmental impact categories (e.g. Toxicity, Acidification, Eutrification, Ozone Depletion) Use energy / global warming potential in CO 2 equivalents as the primary weighting measure –Embodied Energy: Initial Energy to Produce & Install –Energy Produced on the Rooftop –Energy Saved During Building Operation (Efficiency) –Energy Saved By Extending Life Cycle / Re-Use / Recycling Add other impacts not adequately addressed by energy measures –Solid waste impacts –Clean water impacts –Ground level ozone impacts –Extra weighting for special local / regional situations

17. Environmentally Innovative Roofing Guideline / Rating System: Category Weighting Source of Savings: Increased Roof Insulation Cool Roofs Best Roofing Practice Annual Potential Roof-Related Energy Savings Low-Slope Commercial Roofs / Thousands of 2008 Dollars (Source: CEIR Knowledge Center) Savings for 4 Billion Sq. Ft.: $200,000 80% 15% 5%

18. Environmentally Innovative Roofing Guideline / Rating System: Category Weighting High R Roofs (1) Cool Roofs (1) Best Practice (1) Solar Energy(2) Daylighting(3) $160 30 10 100 20 -------- $320 50% 10% 3% 31% 6% ------ 100% Comparative Energy / Green House Gas Reduction Values (Thousands of 2008 Dollars / 4 Billion Sq. Ft. Roofs) 1.From CEIR Roof Energy Savings Study 2.Assumes 1watt average solar power production during daylight hours per square foot of suitable roof surface (4 billion square feet total roof surface X 25% suitable usage factor X 1 watt / square foot 3.Assumes 0.5 watt average solar lighting production during daylight hours per square foot of suitable roof surface (4 billion square feet total roof surface X 10% suitable usage factor X 0.5 watt / square foot) Notes:

19. Operating energy accounts for over 85% of total energy usage in buildings Source: http://www.canadianarchitect.com/asf/perspectives_sustainibility/measures_of_sustainablity/measures_of_sustainablity_operating.htm O 10 20 30 40 50 80 70 60 50 40 30 20 10 0 Energy (GJ/m 2 ) Building Life (Years) Operating Energy Recurring Embodied Energy (Repair and Maintenance) Total Energy Initial Embodied Energy 100% 85% 10% 5% Environmentally Innovative Roofing Guideline / Rating System: Category Weighting

20. High R Roofs Cool Roofs Best Practice Clean Energy(1) Daylighting(1) Initial Materials Life Cycle Mgmt. $160 30 10 100 20 -------- $320 19 38 ------- $377 85% 5% 10% ------- 100% 42% 8% 3% 27% 5% 10% ------- 100% Comparative Energy / Green House Gas Reduction Values (Thousands of 2008 Dollars / 4 Billion Sq. Ft. Roofs) 19 4 1 12 2 4 ------ 44 Actual LEED 2007 Points 19 1-2 n/a 7 2 n/a ------ 38 Relative Point Values

21. Environmentally Innovative Roofing Guideline / Rating System: Task Group Organization: Options Task Group separate from Research Committee Task Group a sub-committee of Research Committee Entire Research Committee serves as Task Group

22. Stakeholder Balance –Contractors –Manufacturers –Others? Development Process –Construction of First Draft –Comments & Additions Approval Process –Disposition of Comments / Negatives –Final Board Approval Environmentally Innovative Roofing Guideline / Rating System: Task Group Governance: Issues

23. Categories –Add Categories? –Delete Categories? Credits & Measures –Add / Delete Credits? –Revise Measures? Weighting –Overall Category Weighting –Individual Credit Weighting Environmentally Innovative Roofing Guideline / Rating System: Review of “Straw Model”