Energy Efficiency Indicator 2009 Findings May 6, 2009

Introduction and Welcome 2008 Johnson Controls Energy Efficiency Indicator C. David Myers President Building Efficiency Johnson Controls Clay Nesler Vice President Global Energy & Sustainability Johnson Controls Don Albinger Vice President Renewable Energy Solutions Johnson Controls

Today’s Agenda Introducing Johnson Controls and IFMA An Overview of the Energy Efficiency Indicator Key Findings from 2009 Perspectives on energy efficiency from: Oak Ridge National Laboratories Manpower The Empire State Building Media Question & Answer Johnson Controls Energy Efficiency Indicator

Introducing Johnson Controls and IFMA

An Overview of the Energy Efficiency Indicator

Key Findings from 2009

Perspectives on energy efficiency from: Oak Ridge National Laboratories Manpower

The Empire State Building

Media Question & Answer

About Johnson Controls We create smart environments that are safe, comfortable and sustainable 124-year-old global, multi-industrial company 3 Divisions: Building Efficiency, Automotive Experience & Power Solutions Johnson Controls Energy Efficiency Indicator

We create smart environments that are safe, comfortable and sustainable

124-year-old global, multi-industrial company

3 Divisions: Building Efficiency, Automotive Experience & Power Solutions

About IFMA World’s largest and most widely recognized international. association for professional facility managers Supporting over 19,500 members in 60 countries 125 chapters and 15 councils worldwide, manage more than 37 billion square feet of property and annually purchase more than $100 billion in products and services Johnson Controls Energy Efficiency Indicator Don Young Vice President of Communications, International Facility Management Association (IFMA)

World’s largest and most widely recognized international. association for professional facility managers

Supporting over 19,500 members in 60 countries

125 chapters and 15 councils worldwide, manage more than 37 billion square feet of property and annually purchase more than $100 billion in products and services

Value of workplace professionals This research recognizes the important role of workplace professionals in controlling operational costs related to energy consumption and making strategic capital investments in high-performing building technologies. EEI report helps validate the initiatives facility managers are undertaking to reduce energy consumption, maximize efficiency and reduce their organizations’ carbon footprints to create a better, more sustainable workplace. Johnson Controls Energy Efficiency Indicator

This research recognizes the important role of workplace professionals in controlling operational costs related to energy consumption and making strategic capital investments in high-performing building technologies.

EEI report helps validate the initiatives facility managers are undertaking to reduce energy consumption, maximize efficiency and reduce their organizations’ carbon footprints to create a better, more sustainable workplace.

Key Questions in the EEI What are the attitudes, priorities and concerns of the people at the front lines of energy management and energy efficiency? What types of investments are they making? What financial criteria do they use? What trends are emerging? Johnson Controls Energy Efficiency Indicator

What are the attitudes, priorities and concerns of the people at the front lines of energy management and energy efficiency?

What types of investments are they making?

What financial criteria do they use?

What trends are emerging?

Who We Surveyed Johnson Controls Energy Efficiency Indicator 1422… Total number of respondents

Efficiency has never been more important 71%... Paying more attention to energy efficiency than last year 58%... Continue to say energy management is extremely or very important Johnson Controls Energy Efficiency Indicator

71%... Paying more attention to energy efficiency than last year

58%... Continue to say energy management is extremely or very important

Top Efficiency Measures 77% switched to energy efficient lighting 64% adjusted HVAC temperature controls 62% educated facilities operations staff 38% installed lighting sensors Johnson Controls Energy Efficiency Indicator

77% switched to energy efficient lighting

64% adjusted HVAC temperature controls

62% educated facilities operations staff

38% installed lighting sensors

Efficiency has never been more important

Green Buildings & Renewables 38% seeking green building certification for new construction projects, a 4% increase from last year 8% increase in organizations considering solar electric and 7% increase in geothermal energy 57% would like to own the assets (as opposed to entering into a power purchase agreement) Johnson Controls Energy Efficiency Indicator

38% seeking green building certification for new construction projects, a 4% increase from last year

8% increase in organizations considering solar electric and 7% increase in geothermal energy

57% would like to own the assets (as opposed to entering into a power purchase agreement)

Holding Back on Investments 10%... Drop in respondents expecting their organizations to make capital improvements in energy efficiency 6%... Drop in respondents expecting their organizations to make improvements in energy efficiency out of operating budgets Johnson Controls Energy Efficiency Indicator

10%... Drop in respondents expecting their organizations to make capital improvements in energy efficiency

6%... Drop in respondents expecting their organizations to make improvements in energy efficiency out of operating budgets

Holding Back on Investments Johnson Controls Energy Efficiency Indicator

Limited Funding 3.5 Average maximum payback period for energy efficiency Nearly 50% require less than a 3 year payback Johnson Controls Energy Efficiency Indicator

3.5 Average maximum payback period for energy efficiency

Nearly 50% require less than a 3 year payback

Uncertainty? -60% …. +100% Variation in expectations for year-on-year change in energy prices; those that expect a price rise expect an average increase of 14% 51% see significant legislation within 2 years as extremely or very likely, a 12% increase from last year 79% view incentives as highly influential in their purchase decisions, a 4% increase from last year Johnson Controls Energy Efficiency Indicator

-60% …. +100% Variation in expectations for year-on-year change in energy prices; those that expect a price rise expect an average increase of 14%

51% see significant legislation within 2 years as extremely or very likely, a 12% increase from last year

79% view incentives as highly influential in their purchase decisions, a 4% increase from last year

EEI Observations & Conclusions Increasing interest in energy efficiency Becoming more visible and important across markets and organizations Tempered investment levels Driven by uncertainty in the economy, government policy, and energy prices Demand for efficiency will surge Reducing uncertainty and aligning incentives will drive significant investment in energy efficiency Johnson Controls Energy Efficiency Indicator

Increasing interest in energy efficiency Becoming more visible and important across markets and organizations

Tempered investment levels Driven by uncertainty in the economy, government policy, and energy prices

Demand for efficiency will surge Reducing uncertainty and aligning incentives will drive significant investment in energy efficiency

For More Complete EEI Results Go to johnsoncontrols.com media press kits BE Johnson Controls Energy Efficiency Indicator

Go to johnsoncontrols.com media press kits BE

Jimmy Stone, Oak Ridge Nat’l. Labs Johnson Controls Energy Efficiency Indicator

ORNL is DOE’s largest science and energy laboratory Nation’s largest concentration of open source materials research World’s most intense pulsed neutron source and a world-class research reactor $1.36B budget 4,400 employees 3,900 research guests annually $500 million invested in modernization 1 million ft 2 LEED-certified campus World’s most powerful open scientific computing facility Nation’s most diverse energy portfolio Managing the billion-dollar U.S. ITER project

Nation’s largest concentration of open source materials research

World’s most intense pulsed neutron source and a world-class research reactor

$1.36B budget

4,400 employees

3,900 research guests annually

$500 million invested in modernization

1 million ft 2 LEED-certified campus

World’s most powerful open scientific computing facility

Nation’s most diverse energy portfolio

Managing the billion-dollar U.S. ITER project

We incorporate energy efficiency into the design of our facilities Natural gas condensing boilers (98% efficient) Daylighting and reflective roof Solar lighting Building management systems

Sustainable landscaping contributes to a vibrant campus Walking trail Quadrangle area Pond cleanup and wildlife management Native landscaping

We consider a variety of conditions High reflective albedo concrete to reduce heat islands Pervious pavement and drain system in visitor parking area Downlighting systems to reduce night sky illumination

High reflective albedo concrete to reduce heat islands

Pervious pavement and drain system in visitor parking area

Downlighting systems to reduce night sky illumination

Our computational facilities are world leading in speed and energy efficiency Computing speed: 1.64 petaflops Power usage effectiveness: 1.3 Peak performance 1.645 petaflops System memory 362 terabytes Disk space 10.7 petabytes Disk bandwidth 240+ gigabytes/second Interconnect bandwidth 532 terabytes/second

Computing speed: 1.64 petaflops

Power usage effectiveness: 1.3

We are adding solar power to our energy mix 51.25-kWp solar array installation Moving Building 3147 to net zero energy

51.25-kWp solar array installation

Moving Building 3147 to net zero energy

We will continue to build on our sustainable practices To date we have added 33% more area to ORNL with only a 5% energy change We now have 1M ft 2 of green building space We are on track to meet or exceed our DOE TEAM commitments Reduce fossil fuel use by >85% Reduce water use by 170M gallons per year Reduce energy intensity by 50% Implement 100% advanced electrical metering Provide 21% of energy from renewable sources

To date we have added 33% more area to ORNL with only a 5% energy change

We now have 1M ft 2 of green building space

We are on track to meet or exceed our DOE TEAM commitments

Reduce fossil fuel use by >85%

Reduce water use by 170M gallons per year

Reduce energy intensity by 50%

Implement 100% advanced electrical metering

Provide 21% of energy from renewable sources

We are transforming our West Campus with sustainable techniques Managed by UT-Battelle for the U.S. Department of Energy JCI_0904

Jennifer Dettman, Manpower Johnson Controls Energy Efficiency Indicator

Manpower Sustainable Initiatives & Energy Efficiency

Manpower HQ – Sustainable Construction Accomplished LEED Gold certification without adding to budget The water-efficient plumbing fixtures reduce our usage by 41% More than 10% of the building materials contain recycled elements More than 20% of the materials (by cost) were manufactured within a 500 mile radius More than 50% of the wood used on site was harvested from rapidly renewable forests and contains no formaldehydes Manpower’s building comes from 30.5% recycled material Indoor air quality is improved by the fact that the materials contain organic compounds.

Accomplished LEED Gold certification without adding to budget

The water-efficient plumbing fixtures reduce our usage by 41%

More than 10% of the building materials contain recycled elements

More than 20% of the materials (by cost) were manufactured within a 500 mile radius

More than 50% of the wood used on site was harvested from rapidly renewable forests and contains no formaldehydes

Manpower’s building comes from 30.5% recycled material

Indoor air quality is improved by the fact that the materials contain organic compounds.

Manpower HQ – Sustainable Construction Workspaces have diffusers that employees can adjust to increase/decrease airflow in their area. Building constructed on a “brownfield” site. It is preferable to develop on these sites, rather than "greenfield" or previously undeveloped sites Bicycle storage racks and changing rooms promote biking to work Manpower world HQ does not use chemical compounds chlorofluorocarbons (CFCs) or Hydrochlorofluorocarbons (HCFCs), which have been known to damage the ozone layer Construction crews used low-emitting adhesives, sealants, paints, carpets, furniture, and composite wood to improve indoor environmental quality.

Workspaces have diffusers that employees can adjust to increase/decrease airflow in their area.

Building constructed on a “brownfield” site. It is preferable to develop on these sites, rather than "greenfield" or previously undeveloped sites

Bicycle storage racks and changing rooms promote biking to work

Manpower world HQ does not use chemical compounds chlorofluorocarbons (CFCs) or Hydrochlorofluorocarbons (HCFCs), which have been known to damage the ozone layer

Construction crews used low-emitting adhesives, sealants, paints, carpets, furniture, and composite wood to improve indoor environmental quality.

Manpower HQ – Ongoing Initiatives Computers & Lighting: Lights are turned off at 6:30 pm; on at 6:30 am. A natural light sensor dims the two outer rows of lights during the day, if it is bright enough outside. Light sensors in conference and break rooms turn off lights after 5 minutes if no movement. To reduce light pollution, down lights installed throughout the HQ. Daylight and views are provided to more than 90% of the space in the building. Paper, printing, copying: No colored copies unless for a client. Double-sided printing. Recycled paper for all our copying purposes. 100% shred policy. Shredding company recycles all paper. All printers and copiers are ENERGY STAR. Printers go into shutdown mode when not in use. Recycling: We encourage recycling of aluminum cans, plastic and glass bottles. Each break room and cafeteria has a container for recyclables. All cardboard and paper is recycled.

Computers & Lighting: Lights are turned off at 6:30 pm; on at 6:30 am. A natural light sensor dims the two outer rows of lights during the day, if it is bright enough outside. Light sensors in conference and break rooms turn off lights after 5 minutes if no movement. To reduce light pollution, down lights installed throughout the HQ. Daylight and views are provided to more than 90% of the space in the building.

Paper, printing, copying: No colored copies unless for a client. Double-sided printing. Recycled paper for all our copying purposes. 100% shred policy. Shredding company recycles all paper. All printers and copiers are ENERGY STAR. Printers go into shutdown mode when not in use.

Recycling: We encourage recycling of aluminum cans, plastic and glass bottles. Each break room and cafeteria has a container for recyclables. All cardboard and paper is recycled.

Manpower HQ – Ongoing Initiatives Heating / cooling: Goes into an unoccupied mode daily at 6:00 pm. The building is in an occupied mode for 62.5 hours during a normal work week and 8 hours on the weekend. Vending / hospitality: Biodegradable to-go containers are used in the Point. Eliminated Styrofoam cups. Employees use their own cups. Break rooms have visitor ceramic coffee cups. Bathrooms: Paper towels and roll paper towels made with recycled paper used in bathrooms. Water-efficient plumbing fixtures in bathrooms reduces usage by 41%.

Heating / cooling: Goes into an unoccupied mode daily at 6:00 pm. The building is in an occupied mode for 62.5 hours during a normal work week and 8 hours on the weekend.

Vending / hospitality: Biodegradable to-go containers are used in the Point. Eliminated Styrofoam cups. Employees use their own cups. Break rooms have visitor ceramic coffee cups.

Bathrooms: Paper towels and roll paper towels made with recycled paper used in bathrooms. Water-efficient plumbing fixtures in bathrooms reduces usage by 41%.

Tim Clancy, Empire State Building Johnson Controls Energy Efficiency Indicator

Empire State Building Case Study Cost-Effective Greenhouse Gas Reductions via Whole-Building Retrofits

Prior to 2008, the Empire State Building’s performance was average compared to most U.S. office buildings. MOTIVATION Reduce greenhouse gas emissions. Create competitive advantage Annual utility costs: $11 million ($4/sq. ft.) Annual CO2 emissions: 25,000 metric tons Annual energy use: 88 thousand Btu/sq. ft. Peak electric demand: 9.5 MW (3.8 W/sq. ft.)

Prior to 2008, the Empire State Building’s performance was average compared to most U.S. office buildings.

Annual utility costs:

$11 million ($4/sq. ft.)

Annual CO2 emissions:

25,000 metric tons

Annual energy use:

88 thousand Btu/sq. ft.

Peak electric demand:

9.5 MW (3.8 W/sq. ft.)

8 interactive retrofit measures designed to reduce loads in base building and tenant spaces prior to expensive new equipment or controls retrofits. WHOLE SYSTEMS APPROACH Take the right steps in the right order Reduce Loads Use Efficient Technology Provide Controls

8 interactive retrofit measures designed to reduce loads in base building and tenant spaces prior to expensive new equipment or controls retrofits.

8 KEY MEASURES ranging from base building retrofits to tenant engagement 38% Total Savings

WINDOWS: Remanufacture existing insulated glass (IG) within the Empire State Building’s approximately 6,500 double-hung windows to include suspended coated film and gas fill. KEY MEASURES Some examples

WINDOWS: Remanufacture existing insulated glass (IG) within the Empire State Building’s approximately 6,500 double-hung windows to include suspended coated film and gas fill.

RADIATIVE BARRIER: Install more than six-thousand insulated reflective barriers behind radiator units located on the perimeter of the building. KEY MEASURES Some examples

RADIATIVE BARRIER: Install more than six-thousand insulated reflective barriers behind radiator units located on the perimeter of the building.

CHILLER PLANT RETROFIT: The chiller plant retrofit project includes the retrofit of four industrial electric chillers in addition to upgrades to controls, variable speed drives, and primary loop bypasses. KEY MEASURES Some examples

CHILLER PLANT RETROFIT: The chiller plant retrofit project includes the retrofit of four industrial electric chillers in addition to upgrades to controls, variable speed drives, and primary loop bypasses.

OUTCOMES 38% overall energy use reduction $4M annual energy spend savings 33% cooling load reduction Capital budget optimization resulting in $17M savings and 3.1 year payback 105,000 metric tons GHG reduction over 15 years Energy Star 90 rating (90% percentile) LEED “Gold” certification target For more information, please visit www.esbsustainability.com

38% overall energy use reduction

$4M annual energy spend savings

33% cooling load reduction

Capital budget optimization resulting in $17M savings and 3.1 year payback

105,000 metric tons GHG reduction over 15 years

Energy Star 90 rating (90% percentile)

LEED “Gold” certification target

Media Q & A

Energy Efficiency Indicator 2009 Findings

Appendix Johnson Controls Energy Efficiency Indicator

Who we surveyed Johnson Controls Energy Efficiency Indicator

Who we surveyed Johnson Controls Energy Efficiency Indicator

Efficiency has never been more important Johnson Controls Energy Efficiency Indicator

Efficiency has never been more important When tackling climate, leaders choosing efficiency first

Efficiency and environment both important Cost the greater motivation, but environment important too

Green building goals Seeking certification or green elements more often Johnson Controls Energy Efficiency Indicator

But planned investment is declining Do you expect to make energy efficiency improvements over the next 12 months... Johnson Controls Energy Efficiency Indicator

But planned investment is declining Investing a smaller fraction of their facilities capital budgets Johnson Controls Energy Efficiency Indicator

and reported action is also declining Doing less across the board Johnson Controls Energy Efficiency Indicator

Energy price uncertainty Wide divergence in expectations for energy prices; For those expecting a rise, average is 14% Johnson Controls Energy Efficiency Indicator

Regulatory uncertainty Expecting more sticks and carrots for investing in efficiency Johnson Controls Energy Efficiency Indicator

Energy Efficiency Indicator 2009 Findings