1. Sustainable Investment Initiative Green & Climate Neutral BuildingsReduced Risk & Higher Valued Collateral Green Mortgages Cheaper Cost of Capital / Increased Liquidity Green Building SecuritiesCertified Sustainable Product Investment Green Building Underwriting Standards Improves quality of life FSC Certified Wood Stops Illegal Logging & Irreversible Dangerous Climate Change Supported by Energy, Bank of America & Anonymous Foundations, Federal Home Loan Bank & CMP Partners

2. Capital Markets Partnership (CMP) – Partial List City of San Francisco City of Chicago City of Dallas City of Denver City of Miami City of New York City of Oakland City of San Jose City of Santa Monica City of Seattle

3. Learning From History FDR’s 1933 Inaugural Address Values have shrunken to fantastic levels; taxes have risen; our ability to pay has fallen. Government of all kinds is faced by serious curtailment of income; the means of exchange are frozen in the currents of trade. More important, a host of unemployed citizens face the grim problem of existence. This nation asks for action and action now. We must act and act quickly. We must move as a trained and loyal army, willing to sacrifice for the good of common discipline, because without such discipline, no progress is made, no leadership effective. The people of the United States have not failed. In their need, they have registered a mandate that they want direct vigorous action. FDR’s First Fireside Chat on the Banking Crisis (1933) We had a bad banking situation. Some of our bankers had shown themselves either incompetent or dishonest in their handling of people's funds. There is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people. Confidence and courage are the essentials of success in carrying out our plan. We have provided the machinery to restore our financial system, and it is up to you to support and make it work. Together we cannot fail.

4. Learning From History The Result of FDR’s First Fireside Chat Money started pouring back into the banks and gold back into the Federal Reserve Dollar bounced back spectacularly in relation to other currencies Stock market opened with trading volumes at record high Treasury certificates sold at the highest rates since World War I, which bankers a few days earlier had feared would not sell The banking crisis came to a quick and positive end, and the country rebounded with the New Deal, confidence and leadership.

5. Sustainable Investment Initiative Capital Markets Briefing Paper: Sustainable Investment Business Case © Summarizes four years of Wall Street due diligence with investors, investment banks & rating agencies concluding that green buildings and certified sustainable products are: More profitable Less risky Preferred by investors in Survey initiated with S&P covering over $3.3 trillion in assets. Briefing Paper will be released for top management at NYSE Press Conference in 2d Q 2009

6. Sustainable Investment Initiative It’s Critical to Restart Securitization Securities provide about 60% of global credit. Total debt is about equal to GDP. Many owners have financing terms coming due with no refinancing options. Banks need to start making money. Green Building Securities Provide the Market With What it Wants: Low risk, more valuable collateral, investor preference / confidence, liquidity, social benefits, higher net operating income

7. Sustainable Investment Initiative Green Building Financing Program San Diego Pilot - $1B mixed use complex - LEED Platinum + - CMP Green Value Score: 77 - Section on Bond Offering Official Statement documenting higher value. San Francisco Pilot - Existing building refinance to minimum Green Value Score - City, BOMA & CBRE Partners - Cheaper cost of capital pursued Seattle Pilot - LEED Gold $300M complex - Public / Private / Mixed Use - Section on Bond Offering Official Statement documenting higher value.

8. Sustainable Investment Initiative Green Building Financing Program Green Building Security - $500M Pool through large bank - Green buildings qualified by Underwriting Standard CMP Green Value Scores - Section on Bond Offering Official Statement documenting higher value. California AB 811 Model Resolution - $200B market - Minimum Green Value Score - Leveraging local government financing with investment bank and investor funds - Cheaper cost of capital pursued

9. Capital Markets Partnership CMP Officers, Chairman, Hon. Gavin Newsom, San Francisco Mayor, USCM Sustainable Investment Protocol Operating Group Green Building Underwriting Standards Committee Sustainable Investment & Finance Committee GHG / Carbon Credit Monetization Sub-Committee Education Sub-Committee Standards Equivalency Sub-Committee Standards Adoption Sub-Committee Sustainable Protocol & Underwriting Standards Due Diligence Framework Green Building Industry Value Rating System© $3.2T Institutional Investor Survey Business Case (Peer Review) Standards Development Executive Briefings (Peer Review) Consensus Standards Approval Green Building Financing Product Development Market Adoption Financial institution leaders are JPMorgan Chase, Citi & Bank of America

10. Capital Markets Partnership CMP Officers Green Building Underwriting Standards Committee EMERGENCY Consensus Standards Launched in April 2008 by JPMorgan Chase, Wells Fargo Wachovia. Unanimously Approved September 2, 2008. Scoring their Buildings Pursuant to the Standard are JPMorgan Chase, Jones Lang LaSalle, CB Richard Ellis, Freddie Mac, Federal Home Loan Bank. Officers Wade Crowfoot, Director, Climate Change Initiatives, San Francisco Mayor Gavin Newsom Steve Hoffmann, President, Hoffmann & Associates Rich Pietrafesa, Managing Director, Destiny USA Tomek Rondio, President, Mortgage Green Michael Schneider, Vice President, Marxa Kubo Mario Silvestri, Vice President, Wells Fargo Ken Willis, Vice President & Director, Federal Home Loan Bank of Boston Dan Winters, Managing Principal, Evolution Partners

11. What is “Green” in the Real Estate Industry? 1.Best business practices –Maximize efficiency aspects in construction / operations –Minimize waste and costs –Capture ‘free’ inputs from natural environment –Increased architect / engineer / contractor coordination 2.Mark of high-quality construction and asset value via several third-party verification processes 3.A product differentiation marker based on: –Energy and water cost savings –IEQ and associated health benefits –Amenities –Asset quality (perceived / real)

12. Why Are Investors / Companies Going “Green”? It’s just business…… 1.Operational cost efficiency 2.Risk reduction 3.Best management practices 4.Employee productivity 5.‘Halo effect’

13. Successful Precedent Phase 1 & Property Condition Assessment (PCA) Resulted in 95% US Market Penetration in 3-5 Yrs. Phase 1 and PCA were mandated by Rating Agencies for all mortgage backed securities Phase 1 Growth PCA Growth LEED Green Building Growth $500M Green Building Security (GBS) 3 rd Q 2009. Using CMP Underwriting Standards, Due Diligence & Investor Survey

14. Economic Benefits Projected* 70% US Commercial Green Building Market Penetration * Projected* 70% US Commercial Green Building Market Penetration * Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity (5%), IAQ & Reduced Absenteeism: $632 B/yr Health Care Savings $75 B/yr Emission Reductions’ Market Value: $ 1.1 B/yr Total $795 Billion/yr. value added Emission Reductions’ Market Value: $ 1.1 B/yr Total $795 Billion/yr. value added * 1. Leonardo Academy / MTS Projections 2003, Surgeon General 2006 (certified bdgs). 2. Green retail buildings will also accrue increased retail sales. 2. Green retail buildings will also accrue increased retail sales. 3. Excludes overwhelming benefits from avoided climate damages, & originator profits. 3. Excludes overwhelming benefits from avoided climate damages, & originator profits. 4. Dollar benefits are $200B/yr. for UK, $200B/yr. for rest of Western Europe, $87B/yr. 4. Dollar benefits are $200B/yr. for UK, $200B/yr. for rest of Western Europe, $87B/yr. for Canada & $80B/yr. for Australia. MBS is $4 trillion global industry (SEC 2003). for Canada & $80B/yr. for Australia. MBS is $4 trillion global industry (SEC 2003).

16. Before it’s too late

17. UK – Stern Review – Nov ‘06 Report analyzes economic global impacts of climate change –“Business as Usual” vs. global innovation and market-based intervention –QUOTE: “Climate change…greatest and widest ranging market failure ever seen…” Relates costs/risks on economic, environmental, and social scales –Floods / Storms –Agriculture Yields –Fresh Water Access –Disease Bush White House 2008 Climate Report Concurs with these Impacts –Mass Human and Species Migration –Species Extinction –Heat Waves / Cooling / Droughts PROJECTED GLOBAL WARMING ECONOMIC IMPACT - Up to 20% of Global GDP

18. US Conference of Mayors Support Resolution June 2008

19. Electricity Transportation Heating Allocation of 6.2 GtC/yr Electricity: 40% Fuels used directly: 60% Underwriting Standards & GBS Global Carbon Reduction in 5-10 yrs Enhances Energy Security & Stops Imminent Irreversible Dangerous Climate Change Fossil fuel use in 2000 (IEA) Allocation of 6.2 GtC/yr. (Princeton) Buildings generate most of world’s climate pollution from electricity and heating. On average, certified buildings have 50% less conventional energy & climate pollution.

20. LEED EB CERTIFIED National Geographic Society Headquarters, Wash., DC The Society added $16M in value from this LEED certification from a higher appraised value, raising tenant rents, lower operating costs, increased credit rating from Moody’s, & lower interest rates on large loans secured to the building. Presentation at 2003 Congressional Green Building Luncheon by Chris Liedel, CFO, National Geographic Society.

21. Multiple environmental, social & economic benefits over global supply chain. Economic benefits exceed green buildings. Maximum Credit for Certified Products With: 100% reduction of 1000 pollutants 100% Green-e power use & conventional energy reduction 100% postconsumer recycled content 100% biobased organic content w/BMPs 100% reuse/reclamation Social equity requirements FSC Certified Wood is one of 15 Prerequisites 300 manufacturer reps are educating their customers SMaRT Sustainable Product Standard Adopted by Leading Fortune 500 Co’s, Fireman’s Fund, US Green Building Council’s LEED, & Underwriting Standards. Covers 80% of the world’s products across the global supply chain.

22. CFO Research Services / Jones Lang LaSalle Report March 2008 Top Sustainability Priorities Improve energy efficiency Reduce carbon footprint Reduce environmental impact of operations Manage risk Barriers – CFO / Executive Reponders Lack of decision framework / tool Inability to measure effect on shareholder value / investor returns Not integrated into financial management and control systems Respondent Quote “As more efficient measuring tools are created and utilized, finance’s role in sustainability efforts will be greatly enhanced.” Survey Metrics: 175 responses – senior finance executives 95% from companies w/ over $500MM revenue

23. Green Building Underwriting Standards Principles 1.Easy entry / differentiate superior performance 2.Easy to analyze / simple to implement 3.Disciplined Tangible financial impacts Acknowledgement of intangible value 4.Utilize consensus standards / reduces risk 5.Third-party verified 6. Standard Unanimous Approval Broad industry invitations and participation Significant comments and amendments ANSI consensus process

24. Structure – Green Building Underwriting Standards Recognizes and incorporates existing industry standards –Comprehensive –Transparent –Market-driven –Consensus-based Standards include –EPA EnergyStar –USGBC LEED Rating System –MTS Climate Neutral Performance based –Energy –Water –Indoor environmental quality Third-party verification requirement –Self-Regulation = No Regulation = Wild West What is it? How does it work?

25. Example Capital Markets Partnership Commercial GreenValue Score Application LEED Gold certified office building EnergyStar score = 80 Green Building Underwriting Standard score = 74 Climate Neutral certified = 78 C M P GREEN SCORE

26. Crude Oil – Actual (Jan 1997 thru September 24, 2008) World oil production flat since 2004 / China and India’s consumption surging / domestic consumption in oil producing countries increasing Energy traders / OPEC publicly refer to the ‘proper’ price of $85 / barrel at which point OPEC reduces production to support prices

27. US Electricity Prices (1982 – 2006) Source: US Department of Energy http://www.eia.doe.gov/fuelelectric.html / kwh

28. US Electric Power Generation Sources (2007)

29. DOE Coal Prices June 2003 to July 2006 Source: http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html Central Appalachia +88% Northern Appalachia +41% Illinois Basin 38% Uinta Basin 114% Powder River Basin 100%

30. DOE Coal Prices June 2003 to July 2008 July Price = $149 / ton July Price = $140 / ton Source: http://www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html +312% - Central Appalachia +452% - Northern Appalachia +200% - Illinois Basin +254% - Uinta Basin +127% - Powder River Basin

32. Natural Gas Spot Prices (Oct ’83 – Apr ‘08) http://www.eia.doe.gov/oil_gas/natural_gas/info_glance/natural_gas.html

33. Conventional Energy Costs Expected to Continue Increasing at 20% / yr. for 10 yrs.

34. Energy Market Drivers 1990 Market Restructuring Aging Power Grid Globalization Digital Economy Emissions and Climate Change Energy Reliability and Security Resource Scarcity 199520002005-102010-20

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