Jim Pauley, P.E. Vice President, Industry and Government Relations – Schneider Electric Chair, NEMA High Performance Building Council Building Star An Important Piece of the Energy and Jobs Puzzle for the Electrical Community

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 2 Incentives – Building Star Construction Requirements – Mandatory Enforcement of Codes and Standards Consumer Knowledge – Building Labeling Ongoing Savings - Monitoring and Maintenance Four Elements of Successful Energy Efficiency Deployment

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 3 Construction Requirements ●We must have strong energy efficient requirements via codes and standards ●Enforcement at the state and/or local level must be mandatory ●Standards for existing buildings, such as ASHRAE 100, must be considered for mandatory adoption

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 4 Consumer Knowledge – Building Labeling ●Building labeling can create market dynamics that drive investment in energy efficiency ●Labeling programs must be effective and strong enough to differentiate the levels of energy efficiency and appropriately reflect the level of investment to be more energy efficient ●Labeling has the potential to significantly increase the consumer awareness of energy efficiency and becomes a part of the buying or leasing decision

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 5 Incentives ●Necessary today because of the emphasis that is currently placed on “first cost” in construction ●Drives immediate demand that can positively influence creation of jobs ●Positive approach that requires investment in order to achieve the incentive ●The “Building Star” approach is the correct approach because it addresses all elements of the energy efficiency lifecycle

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 6 Energy Management requires Lifecycle solutions for sustainability Passive Energy Efficiency Energy Audit & Measure building, industrial process… Fix the basics Low consumption devices, Insulation material Power factor correction… Optimize through Automation and regulation HVAC control, lighting control, variable speed drives… Monitor, maintain, improve Meters installation Monitoring services EE analysis software Control Improve Active Energy Efficiency

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 7 Opportunity  Energy Audit Audits Performed No Incentive Building Star Incentive 60% Increase Getting a comprehensive audit performed is a key first step to energy efficiency investment. Building Star incentives can increase the performance of those audits by 60%

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 8 Energy Audit  Implementation Project Recommendations Implemented No Incentive Building Star Incentives 30% Increase Most users seek paybacks of 3 years or less for implementation projects A 30% incentive on the cost of the project will bring many 6 year payback projects into the 3 year timeframe. Estimated positive impact is an increase in implementation by 30% These are significant investment projects that are implemented over 1 yr plus timeframes

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 9 Ongoing Monitoring and Maintenance is Critical Robust Automation, Control and Monitoring of Energy Usage can deliver up to 30% Energy Savings (optimize to use minimum energy and only when necessary)

HBPCC – May 24, 2010 – Jim Pauley NEMA High Performance Buildings Council 10 Summary ●Buildings consume 40% of the energy we use – most of that 40% is electrical energy ●Existing building stock offers the greatest opportunity ●Building Star incentivizes investment: ●Audits and Retro Commissioning Study Rebates – lesser of 50% or $.05/sq ft ●System Improvement Rebates ●Variable speed drives - $40 to $120 per HP ●Interior Lighting - $0.25 to $0.50 per sq ft ●Multiple Control factors to drive greater efficiency improvements ●Exterior Lighting - $0.40 to $1.00 per kWh reduction ●Energy Monitoring and Management ●No system installed – lesser of 50% of cost or $0.45/sq ft ●Upgrade existing system – lesser of 50% of cost or $0.15/sq ft ●Building Operations and Maintenance Training - $2K per employee trained