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The US Resiliency Council
Principles of Formation
 Evan Reis, PE, SE
 Senior Principal Engineer
 AIR Worldwide Corporation




                             1
Prioritizing Resilience

       Presidential Policy Directive
        Department of Homeland Security, 2011


“This directive is aimed at strengthening the security
and resilience of the United States through
systematic preparation for the threats that pose the
greatest risk to the security of the Nation...”




                                                         2
ATC 71-2 Workshop / SEAONC EPRS

   Earthquake Building Performance Rating
    System Workshop (FEMA, SEAONC)

     Over 40 participants representing
                           Owners

          Universities                  Banking


         Architecture                   Insurance



             Engineering            Real Estate

                                                    3
What is Lacking?

There are many ways to quantify risk…


…but no easily interpreted, consistently
 applied system for comparing risk
 estimates.



                                           4
ATC 71-2 Identified Needs

An objective way to measure resilient engineering


Industry credibility


A single, independent rating body




                                                    5
Key Elements of a Rating System
  ATC 71-2 Workshop
Multiple dimensions Communicative ratings Credibility of system




    Peer review      Appropriate cost       Initially voluntary
                        structure




                                                                  6
The Problem: Office Tenant

Information Provided:
• “Designed to Code”
• Level 1 PML: 18%
• Class A office space
Information for Decisions:
• Will employees be injured?
• Will our data be secure?
• How long until we can serve our
   clients?
• Might the landlord breach
   contract?
   (repair costs > liquid funds)

                                    7
The Problem: Condo Buyer

Information Provided:
• “Not a landslide zone”
• “Not a liquefaction zone”
• “Not a fault zone”

Information for Decisions:
• Will I be safe?
• Will I be able to keep living
   here?
• Will I be able to retrieve my
   possessions? My car?
• Should I buy EQ insurance?


                                  8
The Problem: Owner - Emergency Plan

Information Provided:
• ASCE 31: “Meets LS”

Information for Decisions:
• What will happen to
   systems?
• How much required cash
   after the event?
• How much operational
   downtime?



                                      9
USRC Structure – 501(c)3 non-profit


              Operations                          Board of
              Committee                           Advisors
 Stillwell
                                                             Engineers
 Mayes                     Executive
                                                              Owners
Von Berg                    Director
                                                              Lenders
  Reis
                                                              Insurers
                                                              Tenants
                                         Member              Regulators
               Peer                    Organizations         Contractors
             Reviewers




         Accredited                               Users of
        Professionals                             Ratings


                                                                           10
Example of the USGBC® and LEED®

Founded in 1993 to promote sustainability.

Standard for achieving sustainable design.

Chapters, member organizations and accreditation.

Self sustaining revenue model.

Voluntary and mandatory standard.


                                                    11
Target Users
 Risk Management,   Real Estate Transactions,
   Due Diligence         Risk Modeling

     Building
     Owners                 Lenders


     Tenants                Insurers



  Implementation     Long Term Resilience
                           Planning


                           Institutions
    Engineers

                         Governments

                                                12
The Credibility Challenge

No clear definition of PML

ASTM standards are not uniformly followed

Assessments by non-engineers

Minimal peer review

Buyer pay rating systems subject to abuse

  Result: Minimal confidence in the industry
                                            13
Technical Standards



The USRC relies on existing
technical standards


The USRC is a system of
classification and validation


                                STAKEHOLDERS




                                               14
Accreditation / Peer Review


Establish confidence in ratings.

Accreditation requires licensing and training.


Independent, expert peer review.


“Audit of the audits” process



                                                 15
USRC CoRE® Rating Table
                                                           Earthquake




CoRE Rating      Safety       Reparability       Functionality
                                              Occupiable Immediately
            Life Safe      Loss <5%
                                               Functional < 72 hours
                                              Occupiable Immediately
             Life Safe     Loss <10%
                                               Functional < 1 month
                                              Occupiable < 1 month
              Life Safe     Loss <20%
                                              Functional < 6 months

  Certified      Life Safe    Not estimated       Not estimated

                Life Safety
Not Certified                 Not estimated       Not estimated
                 Hazard


                                                                        16
Types of Perils to be Considered




                                   17
Being Realistic

Establishing the USRC is a long-term effort


Challenges in promoting to stakeholder groups


Bias toward better buildings


Marketplace must absorb cost of ratings


                                                18
Next Steps

  Develop pre-final rating system

  Stakeholder review

  Fundraising

  CoRE rating system launch (earthquake)

  Rate high profile buildings

  Develop accreditation program

  Public awareness
                                           19

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The US Resiliency Council Principles of Formation - Evan Reis

  • 1. The US Resiliency Council Principles of Formation Evan Reis, PE, SE Senior Principal Engineer AIR Worldwide Corporation 1
  • 2. Prioritizing Resilience Presidential Policy Directive Department of Homeland Security, 2011 “This directive is aimed at strengthening the security and resilience of the United States through systematic preparation for the threats that pose the greatest risk to the security of the Nation...” 2
  • 3. ATC 71-2 Workshop / SEAONC EPRS Earthquake Building Performance Rating System Workshop (FEMA, SEAONC) Over 40 participants representing Owners Universities Banking Architecture Insurance Engineering Real Estate 3
  • 4. What is Lacking? There are many ways to quantify risk… …but no easily interpreted, consistently applied system for comparing risk estimates. 4
  • 5. ATC 71-2 Identified Needs An objective way to measure resilient engineering Industry credibility A single, independent rating body 5
  • 6. Key Elements of a Rating System ATC 71-2 Workshop Multiple dimensions Communicative ratings Credibility of system Peer review Appropriate cost Initially voluntary structure 6
  • 7. The Problem: Office Tenant Information Provided: • “Designed to Code” • Level 1 PML: 18% • Class A office space Information for Decisions: • Will employees be injured? • Will our data be secure? • How long until we can serve our clients? • Might the landlord breach contract? (repair costs > liquid funds) 7
  • 8. The Problem: Condo Buyer Information Provided: • “Not a landslide zone” • “Not a liquefaction zone” • “Not a fault zone” Information for Decisions: • Will I be safe? • Will I be able to keep living here? • Will I be able to retrieve my possessions? My car? • Should I buy EQ insurance? 8
  • 9. The Problem: Owner - Emergency Plan Information Provided: • ASCE 31: “Meets LS” Information for Decisions: • What will happen to systems? • How much required cash after the event? • How much operational downtime? 9
  • 10. USRC Structure – 501(c)3 non-profit Operations Board of Committee Advisors Stillwell Engineers Mayes Executive Owners Von Berg Director Lenders Reis Insurers Tenants Member Regulators Peer Organizations Contractors Reviewers Accredited Users of Professionals Ratings 10
  • 11. Example of the USGBC® and LEED® Founded in 1993 to promote sustainability. Standard for achieving sustainable design. Chapters, member organizations and accreditation. Self sustaining revenue model. Voluntary and mandatory standard. 11
  • 12. Target Users Risk Management, Real Estate Transactions, Due Diligence Risk Modeling Building Owners Lenders Tenants Insurers Implementation Long Term Resilience Planning Institutions Engineers Governments 12
  • 13. The Credibility Challenge No clear definition of PML ASTM standards are not uniformly followed Assessments by non-engineers Minimal peer review Buyer pay rating systems subject to abuse Result: Minimal confidence in the industry 13
  • 14. Technical Standards The USRC relies on existing technical standards The USRC is a system of classification and validation STAKEHOLDERS 14
  • 15. Accreditation / Peer Review Establish confidence in ratings. Accreditation requires licensing and training. Independent, expert peer review. “Audit of the audits” process 15
  • 16. USRC CoRE® Rating Table Earthquake CoRE Rating Safety Reparability Functionality Occupiable Immediately  Life Safe Loss <5% Functional < 72 hours Occupiable Immediately  Life Safe Loss <10% Functional < 1 month Occupiable < 1 month  Life Safe Loss <20% Functional < 6 months Certified Life Safe Not estimated Not estimated Life Safety Not Certified Not estimated Not estimated Hazard 16
  • 17. Types of Perils to be Considered 17
  • 18. Being Realistic Establishing the USRC is a long-term effort Challenges in promoting to stakeholder groups Bias toward better buildings Marketplace must absorb cost of ratings 18
  • 19. Next Steps Develop pre-final rating system Stakeholder review Fundraising CoRE rating system launch (earthquake) Rate high profile buildings Develop accreditation program Public awareness 19