1. Sustainable Roofing Standards Transforming the Roofing Industry and Establishing a Successful Business Model Analysis Prepared for: The Center for Environmental Innovation in Roofing April 22, 2009 Private and Confidential For review by CEIR Board & Staff Only

2. Sustainable Roofing Standards Agenda What are standards, how do they develop, and what business value do they offer? What are some prominent green building standards and what can they teach us? What is the best strategy for the Center to gain market influence and establish a sustainable revenue stream?

3. Standards Performance Standards for… –Products –Systems Standards of Practice for… –Individuals –Organizations Assure a product / system will perform its intended function Frequently linked to certification programs Assure that the individual / organization is trained and capable Frequently linked to training & certification programs Performance and practice standards frequently work together, but practice standards typically follow after the development performance standards

4. Standards v. Guidelines Standards require a formal consensus process –Developed with stakeholder input and consent Producers Consumers Third-Parties –Developed within a formal program ASTM ANSI

5. How Standards 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 Becomes a Standard (Usually More Complex) Guideline Encounters Questions & Opposition 5. Educational Programs Expanded To Meet Growing Public Need 6. Certification Programs Introduced to Confirm Compliance GUIDELINE STANDARD Certificate Guideline Standard Training Certification Ongoing Business Model Established

6. Popular Green Building Standards LEED™ for Buildings –Developed by US Green Building Council –Performance standard for a variety of non-residential buildings –Started as a guideline in 1998, but evolved to a formal consensus process –Now linked to a practice standard and accreditation program for “LEED-AP” accredited professionals 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”

7. Green Building Standards: The USGBC & 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

8. Green Building Standards: The USGBC & NAHB Strategy Start with an in-house guideline to assure technical ownership 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

9. Develop a Sustainable Roofing Standard that builds value for the Center, its members, and their customers. –The Center: Recognized standards “owner” –Our Members: Certified standards “user” –Their Customers: Reputable assurance of “going green” Green Roofing Standard: Recommended CEIR Objectives In order to achieve this objective, resources and timing will be critical

10. Develop a Sustainable Roofing Guideline similar to USGBC and NAHB standards 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 convert the guideline into a viable long-term standard –Standards developer to convert guideline into a standard –Training / certification resources to support the standard Roll out a completed standard / training / certification process Green Roofing Standard: Recommended CEIR Strategy

11. Green Roofing Standard Action Plan Immediately form three key task groups: –Guideline Task Group 6-8 of our most knowledgeable members Supported by Jim Hoff with possible assistance from environmental consultant(s) Goal: Develop a guideline that encompasses all of the benefits of sustainable roofing and can support an easy to understand rating 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 sustainable 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

12. Green Roofing Guideline Preliminary 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 September, 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 & certification program.

13. Standard Training / Certification Consensus Group Organized First Draft of Standard Initial Public Comment Revised Draft for Standard Final Public Comment Final Standard Public Roll-out Curriculum Outline Construct Training Modules Develop Training Media Finalize Certification Criteria Develop Application Procedure Finalize Delivery System Public Roll-Out February, 2010 April, 2010 June, 2010 August, 2010 October, 2010 December, 2010 January, 2011 November, 2010 March, 2011 June, 2011 April, 2011 June, 2011 July, 2011 September, 2011 By the fall of 2011, the green roofing standard will have been in place for almost a year, and the formal training & certification programs are ready to hit the market. Green Roofing Standard Preliminary Timetable

14. Sustainability Standard for Single-Ply Roofing Membranes –Proposed ANSI product standard –Sponsored by National Sanitation Foundation –Intended for use as part of larger system standards –Product certification by any number of 3 rd parties Green Roof Professional –Vegetated roofing practice standard –Sponsored by Green Roofs for Healthy Cities –Training & certification exclusively by GRHC –First exam to be held June 3, 2009 Green Roofing Standards: Other Standards In Development Could be integrated easily into a larger CEIR standard. Will be a source of confusion and a potential competitor for green roofing brand ownership