Session 8 – Sustainable Transportation Projects Innovative Financing Mechanisms for Implementing Green Infrastructure Projects Presented By: Steven Eget, P.E., CEM, Dewberry 1

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

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,

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

INTRODUCTION WORKING DEFINITION OF SUSTAINABILITY 5

SITTING ON A THREE-LEGGED STOOL IN THE REAL WORLD 6 SUSTAINABILITY 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

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

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

FRAMEWORK FOR EVALUATING ROI USING CASH FLOW ANALYSIS C ASH F LOW A NALYSIS – S UM OF D EFICITS AND B ENEFITS, ITEMIZED ON P ERIODIC BASIS D EFICITS : C APITAL I NVESTMENTS, O PERATION AND MAINTENANCE 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, C OMPONENT L IFE E XTENSION 9

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

LESSONS LEARNED EVALUATING ROI M ULTIPLE T ECHNOLOGIES MAY BE 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 F ROM E NVIRONMENTAL ( AND E NERGY ) B ENEFITS C ONSIDER P UBLIC / P RIVATE O PTIONS T AX B ENEFITS F OR P RIVATE C ONCERNS MAY I NCREASE S AVINGS P ILOTS A ND S TUDIES FOR N EW T ECHNOLOGIES 11

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 F OR P ROJECT S USTAINABILITY G RANTS /P ROGRAMS O N B OOKS

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 S AVINGS 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 TERM S ALE / L EASE B ACK R EAL E STATE 13

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

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. 15

BENEFITS OF GREENROOFS (DEFINED) S TORMWATER MANAGEMENT M AY ALLOW FOR LARGER BUILDING FOOTPRINT R EDUCE TRADITIONAL STRUCTURES 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 16

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 17

CON EDISON LEARNING CENTER (LONG ISLAND CITY, NY) 2 18

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 19

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 20

ENERGY SAVINGS (THE SPECIFICS) E FFECTIVE A LBEDO H OW WHITE WOULD A ROOF HAVE TO BE TO SHOW SIMILAR TEMPERATURES D OES NOT ACCOUNT FOR ACTIVE COOLING AND THERMAL MASS E FFECTIVE R-V ALUE H OW MUCH INSULATION NEEDED FOR SIMILAR REDUCTIONS D RAMATIC SEASONAL VARIATION, SYSTEM SPECIFIC DATA NEEDED 21

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 22

GREEN ROOF ROI C ON E DISON L ONG I SLAND C ITY, NY Payback of Investment in Year 3 IRR = 37.5% 23

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 IKIPEDIA. COM ON M AY 9, 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., 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 IKIPEDIA. COM ON M AY 9, 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., 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 24

CONTACT INFORMATION S TEVEN E GET, P.E., CEM D EWBERRY 600 P ARSIPPANY R OAD P ARSIPPANY, NJ P HONE : C ELL : F AX : E MAIL : DEWBERRY. COM 25