Ron King May 25, 2010 Energy efficiency is often conveyed through images of compact fluorescent light bulbs or sleek, new technologies. However, efficiency opportunities are not always complex or sophisticated. Simply put, insulation—both for mechanical equipment and buildings—is among the most effective, proven, common sense approaches to minimizing thermal energy loss.

1. Mechanical Insulation:
The Forgotten Technology
High-Performance Insulation: Increasing Energy Efficiency, Protecting
the Environment, Creating Jobs, and Stimulating our Economy
May 25, 2010
1

2. Hot Flashes, Cold Spots & Excess Gas
Mechanical Insulation,
The Forgotten Technology, Can Help
May 25, 2010
2

3. An Unprecedented Alliance
May 2009
National Insulation Association and International
Association of Heat and Frost Insulators and Allied Workers
With the changes in our nation’s capital and the economy, NIA and the International recognize an
unprecedented opportunity to help our nation move toward energy efficiency and independence,
protecting the environment, and job creation/preservation.
3

4. Defining Mechanical Insulation
MECHANICAL INSULATION
encompasses all thermal,
acoustical, and personnel and life
safety requirements in Industrial
and Commercial Building
applications:
> Mechanical piping and equipment,
hot and cold applications
> Heating, Ventilation & Air
Conditioning (HVAC) applications
> Refrigeration and other low -
temperature piping and equipment
applications
4

5. Mechanical Insulation
Saving Energy, Protecting the Environment, Creating Jobs
Private Sector
Industrial Market
Commercial Market
Government Sector
5

6. Mechanical Insulation
Industry Segments
Commercial, HVAC & Industrial
Food Processing Retail & Wholesale Industry
Pulp & Paper Industry
Schools
Education Sector District Heating
Hospitals
Healthcare Sector
Multi-Family Residences Manufacturing
Petroleum Industry
Power & Process Industries
Office Buildings
Entertainment Industry
Chemical Industry
OEM, Marine, Cryogenic, Refractory, Metal Building 6

7. The Importance of Insulation
Mechanical insulation is the “Rodney
Dangerfield” of energy conservation,
emission reduction, job creation, and
many other initiatives!
“No respect” for the potential
benefits of mechanical insulation
or the potential Return on
Investment (ROI)
Mechanical insulation is the
“Forgotten Technology”
7

8. Mechanical insulation is the
“Forgotten Technology”
 The thickness of mechanical insulation has not
substantially changed in 20 years
 10-30% of all mechanical insulation is missing or
damaged within 1-3 years of initial installation
8

9. ASHRAE 90.1 History
5
4 1/2
4
Pipe Insulation
Insulation Thickness, in.
3 1/2
3 275F/2" NPS
225F/4"NPS
Commercial Sector
2 1/2 180F/2"NPS
140F/1"NPS
2 42F/3"NPS
1 1/2
1
1/2
3 1/2
0
1989 1999 2001 2004 2007 2010 3
Year
2 1/2
HVAC Insulation
Insulation Thickness, in.
275F/2" NPS
2 225F/4"NPS
180F/2"NPS
1 1/2 140F/1"NPS
42F/3"NPS
1
1/2
0
1989 1999 2001 2004 2007
Year

10. These are examples of normal occurrences
350⁰ F Un-insulated pipe Ice forming due to improper
design, installation & maintenance

11. Mechanical insulation is the
“Forgotten Technology”
 The thickness of mechanical insulation has not
substantially changed in 20 years
 10-30% of all mechanical insulation is missing or
damaged within 1-3 years of initial installation
 Computer modeling programs for buildings do not
include specific modifications to adjust for
increased mechanical insulation
 In a 4-year mechanical engineering program, less
than 1 hour is spent on thermal insulation
11

12. WHY IS INSULATION THE FORGOTTEN
TECHNOLOGY?
– Reduced knowledge base has led to
underutilization and insulation systems being
applied but rarely ―engineered‖
– No gauges
– No monitoring
– No computer chip
– Insulation is normally part of larger
mechanical contract – ―value engineered‖
The benefits are instantaneous,
but invisible and taken for granted 12

13. Putting The Power of Insulation to Work
WHY INSULATE?
1. Reduce energy cost
2. Reduce polluting emissions
3. Control condensation, mold &
Corrosion Under Insulation (CUI)
4. Provide workplace safety and life safety
5. Improve work environment
6. Improve process control
7. Use with sustainable design initiatives
8. Improve facility life-cycle costs
9. Provide exceptional Return on Investment (ROI)
13

14. Capitol Hill Likes Numbers
14

15. Mechanical Insulation
Opportunity/Potential
Energy CO₂ Jobs
Source Savings Reduction ROI/20 yrs Created/
Billions Billion Preserved
$/yr Lbs/yr
Industrial Maintenance $ 3.6 83.5 94.5% 27,567
Regulatory Changes:
Pipe Market $ .3 3.3 22.5% 2,000
HVAC Market $ .9 9.6 9.7% 60,000
Other, To Be Determined TBD TBD TBD TBD
Total $ 4.8 96.4 9.7 - 94.5% 89,000
These estimates do not include commercial retrofit, upgrading of
insulation values or thicknesses in existing commercial or industrial
facilities, or other specialty applications 15

16. What do those numbers really
mean?
Energy savings of $4.8 billion per year equates to:
• 45 billion kWh of electricity, enough to power
4.2 million households for a year and equivalent
to annual output from 10,300 wind turbines
• 82 million barrels of oil, enough to fill about 41
supertankers
• 19 million tons of coal, enough to fill 190,000
railcars
• 480,000,000,000,000 Btus (0.48 quadrillion Btus)
of primary energy— or 1.83 days of energy
consumption for the entire United States
Mechanical Insulation
Opportunity/Potential 16

17. What do those numbers really
mean?
43 MMTCO2 of CO2 reduction per year equates to:
• Adding 1.9 billion mature trees (4.3 million acres
of new forest, an area the size of Connecticut and
Delaware combined)
• Removing 7.9 million cars from the roads, about
3% of 254 million cars registered in the United
States
• Installing 730 million compact fluorescent light
bulbs, equivalent to 2.3 light bulbs for every man,
woman, and child in the United States
Mechanical Insulation
Opportunity/Potential 17

18. Non-fossil energy use grows rapidly, but fossil fuels still
provide 78 percent of total energy use in 2035
quadrillion Btu
History Projections
120
Renewables (excluding liquid biofuels)
100
Liquid biofuels
80
Liquid fuels
60
Coal
40
20 Natural gas
Nuclear
0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
Richard Newell, SAIS, December 14, 2009
Source: Annual Energy Outlook 2010 18

19. Source:
The McKinsey Quarterly, 05 2007
A Cost Curve for Greenhouse Gas
ReductionEnkvist, Naucler, Rosander

21. Mechanical Insulation
The Forgotten Technology
Current Initiatives – How you can help
May 25, 2010
21

22. H.R. 4296
111th Congress, 1st Session
In The House of Representatives
December 11, 2009
Introduced by Rep. Deborah Halvorson & approaching 50 co-sponsors
Mechanical Insulation Installation Incentive Act of 2009
- Tax Deduction – Percent of Energy Saved -
 Encourage the use of mechanical insulation for
going beyond the minimums in new construction &
retrofit applications
 Encourage increased maintenance of mechanical
insulation systems
Commercial & Industrial Markets
New Construction - Retrofits - Maintenance
22

23. S. 3079
111th Congress, 2nd Session
In The Senate of the United States
March 4, 2010
Introduced by Senators Merkley, Pryor, Brown of Ohio, Stabenow, Sanders & Cardin
Building Star Energy Act of 2010
• Fast-acting, short-term program of rebates to create hundreds of
thousands of jobs retrofitting commercial and multi-family buildings in
2010 - 2011, including Mechanical Insulation
• Building STAR is the product of a wide consultation among members of
Rebuilding America, a coalition of more than 60 business, real estate,
financial, labor, consumer, and advocacy organizations, and a broad
range of outside technical experts and other groups and entities
• Building STAR has two components
– Federal rebates for specific energy efficiency enhancements
– Qualified Loan Program
Commercial & Multi-Family Retrofit Markets
Estimated to Create 200,000 Jobs
23

24. Obtain Financial Support for an aggressive multi-year
campaign
111th CONGRESS
Rep. Halvorson (D-Ill), submitted Amendment to H.R. 2454 – Section 275
(Climate Bill – “Cap & Trade”
Industrial Energy Efficiency Education and Training Initiative
(d) Authorization of Appropriations – There are authorized to be
appropriated $ 3,500,00 for each of the fiscal years 2Br010 through 2014
to carry out this section. The Secretary may enter into a cooperative
DOE Work Plan Major Areas:
agreement, including grant funding, with an industry association and
union Data collaboratively and having expertise on theSegments)
working Development (Industrial & Commercial installation,
 Education & of efficiencies and standards, and certification of
maintenance, measure Awareness (Webinars, Videos, Communication
mechanical insulation in& Lectureand facilities.
Materials buildings Programs)
24
 Initial development of marketing & advertising actvities

25. Obtain Financial Support for an aggressive multi-year
campaign
111th CONGRESS
Rep. Halvorson (D-Ill), submitted Amendment to H.R. 2454 – Section 275
(Climate Bill – “Cap & Trade”
Industrial Energy Efficiency Education and Training Initiative
(d) Authorization of Appropriations – There are authorized to be
appropriated $ 3,500,00 for each of the fiscal years 2Br010 through 2014
to carry out this section. The Secretary may enter into a cooperative
agreement, including grant funding, with an industry association and
We have a pending request before the
union working collaboratively and having expertise on the installation,
Appropriations Committees to provide
maintenance, measure of efficiencies and standards, and certification of
$3.5 Million in FY 2011
mechanical insulation in buildings and facilities.
25

26. If you are not a supporter of H.R. 4296,
S. 3079, and our National Education Campaign,
please consider lending your support
-------------------------------
The energy, environmental, job creation, and beneficial impact to our
economy related to the increased use and maintenance of mechanical
insulation in Commercial Building & Industrial Applications has been
overlooked for decades – that needs to change. When better to start than now?
Your help in creating and supporting Federal Policy and
incentives for increased education and awareness
programs, use and maintenance of mechanical insulation
systems is needed – you can make a difference
26

27. www.wbdg.org/midg

28. Mechanical Insulation:
The Forgotten Technology
High-Performance Insulation: Increasing Energy Efficiency, Protecting
the Environment, Creating Jobs, and Stimulating our Economy
28