Green Tech/Building Initiatives & Potential Insurance Issues

1. Green Tech/Building Initiatives & Potential Insurance Issues “GREEN, GREENER, GREENEST” STRIMA 2008 ConferenceDaniels, West Virginia

2. Disclaimer This program or presentation is only a tool to assist you in managing your responsibility to maintain safe premises, practices, operations and equipment, and is not for the benefit of any other party. The program or presentation does not cover all possible hazardous conditions or unsafe acts that may exist, and does not constitute legal advice. For decisions regarding use of the practices suggested by this program or presentation, follow the advice of your own legal counsel. Travelers disclaims all forms of warranties whatsoever, without limitation. Implementation of any practices suggested by this program or presentation is at your sole discretion, and Travelers or its affiliates shall not be liable to any party for any damages whatsoever arising out of, or in connection with, the information provided or its use. This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers, nor is it a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law.

3. Objectives • Attendees should be able to: • Define green technology in the context of green building • Discuss potential risks of going green • Identify methods to minimize the risks

4. Green, Greener, Greenest – What’s so GREEN? Photo Courtesy of DOE/NREL, Credit – Bruce Green

5. Green, Greener, Greenest – What about this one??? Source: University of Maine at Farmington Education Center

6. What Is Green? • Going green can mean many different things! • Green Technology generally indicates products and/or services that: • Positively affect the environment • Conserve natural resources • Reduce energy consumption • Focusing the concepts of Green Technology, Products and Processes together for: • Building Renovation • Building Construction • Building Operation = GREEN BUILDING

7. Energy Innovation & design Green materials/products Indoor environmental quality Site sustainability Conservation Green Tech - Green Building Energy Costs – Natural Resources – Availability of Green Products Why the focus on Buildings?

8. Primary Opportunities For Green Building • Within the U.S., buildings account for: • 39% of total energy consumption • 70% of electricity consumption • 39% of CO2 emissions • 40% of raw material usage • 30% of waste output • 12% of potable water usage • Research also reveals that 89% of future generations will choose brands that align with social causes = BIG BUSINESS Sources U.S. Green Building Council Web site (www.usgbc.org) 2006 U.S. DOE Buildings Energy Data Book EIA Annual Energy Review 2005; U.S. EIA/DOE U.S. Geological Service (1995 Data)

9. Why Green Building Now? • Primary reasons/benefits include: • Negative environmental impacts • Rising costs – energy/materials • Limited supply of fossil fuels • Smaller carbon footprint • Health concerns • Less constraints - Fast tracking permits • Green tax incentives • Overall cost savings = ROI The “PERFECT GREEN STORM”

10. Green Building – Financial Advantages • Although may cost on average 2–8% more to initially construct or incorporate, can result in: • 8-9% decrease in operating cost (mainly through increased efficiencies) • 7.5% increase in building values • 6.6% improvement in ROI (over building life cycle) • 3.5% increase in occupancy (improved occupant well-being) • 3% rent increase Source: U.S. Green Building Council Web site (www.usgbc.org)

11. Being Green isn’t new!!

12. Green, Greener, Greenest – University of Southern Maine Source: University of Southern Maine – Portland campus; Wishcamper Center

13. Green, Greener, Greenest – Life Sciences/Labs Photo Courtesy of DOE/NREL, Credit – Steve Hall & Hedrich Blessing

14. Green Building Certifications • U.S. Green Building Council (USGBC) = LEED www.usgbc.com • Green Building Initiative (GBI) = Green Globes Rating Tool www.thegbi.com • U.S. EPA & Department of Energy = Energy Star www.energystar.gov Others: • Breeam (www.breeam.org) • UK Green Building Council (www.ukgbc.org)

15. Green Building - Tremendous Growth • GOVERNMENTS ARE ON-BOARD. – as of May 22, 2008: 263 governmental authorities had implemented some form of Green Building mandate. • LEED projects are currently ongoing in all 50 states, and in 69 countries world-wide. • Since CY 2000 (year LEED was introduced), USGBC membership has increased ten-fold. • As of May 1, 2008, nearly 3.5+ billion square feet (10,000+ projects) of commercial building space is involved with LEED certification – up 480% since 2006. • Every day, approx. $464 million worth of construction registers with LEED. Source: U.S. Green Building Council Web site (www.usgbc.org)

16. Going Green – Governments are On-Board • As of August 1, 2008: LEED Initiatives (Legislation, Exec Orders, Resolutions, Ordinances, Policies & Incentives) can be found in: • 98 Cities, 29 counties, 25 towns, 31 states, 12 fed agencies or depts., 15 public school jurisdictions & 38 institutions of high education. Most recent Examples (U.S. GBC LEED Initiatives in Govt. & Schools): • June 28, 2008: State of Indiana: Executive Order 08-14; requires all new state buildings to earn LEED Silver certification, EPA’s Energy Star rating, two Globes under GBI (or similar green building rating system). Also impacts renovations of existing state buildings. • June 25, 2008:State of Florida: HB 7135; requires all new construction and renovation of state buildings to follow LEED or similar guidelines. As of July 1, 2008, requires same from counties, municipalities, school districts, water mgt districts, state universities, community colleges, and Florida state courtS. Source: U.S. Green Building Council, LEED Initiatives in Governments and Schools, July 2008

17. Energy Innovation & design Green materials/products Indoor environmental quality Site sustainability Conservation Green Tech - Green Building

18. Energy – Increased Efficiency & Alternatives • Alternative Energy Sources • Solar - PV & thermal • Wind turbines • Geothermal - power/heating • Biomass - biofuels (generators / co-gen) • Fuel Cells (energy/co-gen) • Hydro electric

19. Energy - Alternative/Renewable Photo Courtesy DOE/NREL, Credit – Warren Gretz

20. Building Integrated Photovoltaics (BIPV) – Oberlin, OH Oberlin College – Adam Joseph Lewis Center for Environmental Studies Photos Courtesy of DOE/NREL, Credit – Robb Williamson

21. Solar Thermal Jefferson County Jail, Golden, CO Photos Courtesy of DOE/NREL, Credit – David Parsons

22. Energy – Considerations

23. Green Materials/Products – Benefits (Wants) • Low toxicity • Minimal emissions • Low-VOC assembly • Recycled content • Recyclable-reusable • Improved indoor air quality (IAQ) • Sustainable - Renewable • Durable • Healthfully maintained

24. Green Materials/Products - Examples • Fungi based insulation • Structurally insulated panels (SIP) • Hemp trim boards/insulation • Recycled concrete floors • Petroleum-based vs. Natural Fiber (e.g., wool) carpet. • Cork/bamboo

25. Green Materials/Products Foam Icynene Insulation (plastic-based & sprayed on) S.I.P. - Foam Core & Recycled Wood Wall sections Photo Courtesy of DOE/NREL, Credit – U.S. DOE & Craig Miller Productions Photo Courtesy of DOE/NREL, Credit – Paul Norton

26. Considerations For Green Materials/Products

27. Site Sustainability • Site selection – mindful of location to be developed (environmentally sensitive; pre-existing infrastructure). • Erosion control/management – quantity & quality (construction and non-construction) • Brown field redevelopment – rehabilitating damaged sites • Greenfield sites – habitat protection or restoration • Proximity to mass transit – assists in reducing pollution • Heat island effects – roof & non-roof design features • Bicycle racks/changing rooms – low or no-emission transit Leaving no footprint, or improving the footprints left by others, for future generations.

28. Considerations For Site Sustainability

29. Conservation – Focus On Water • Low flush toilets/waterless urinals/occupant sensors • Low or no irrigation landscaping • Point of use hot water heating systems • Hot water recirculation systems • State of the art irrigation methods • Rain water capture and re-use • Greywater recovery/re-use systems

30. Considerations For Conservation – Focus On Water

31. Indoor Environmental Quality • Green air is clean air (or should be): • Operable windows • CO2 monitors • Moisture control techniques (minimizing mold growth) • Advanced air filtration systems (pleated, electrostatic, HEPA) • Reduction of “off-gassing” via low or little emission adhesives, paints, stains, or products • High insulation factors (tight building)

32. Considerations For Improved IndoorEnvironmental Quality (IAQ)

33. Innovation And DesignCertified Green/Vegetated Roof Coverings Chicago City Hall: 22,000 sq. ft. roof-top garden for heat island reduction & rain water run-off Photo Courtesy of DOE/NREL, Credit – Katrin Scholz-Barth

34. Green Roofs Travelers Building in St. Paul, MN

35. Innovation And DesignGreen Vegetated Wall Photo Courtesy of DOE/NREL, Credit – John Krigger, Saturn Resource.

36. Innovation and DesignConsiderations for Vegetated Roofs/Walls

37. Considerations For Contractors/InstallersOf Green Technology/Green Materials/Products Photovoltaic Module Installation-1997 Governor’s Mansion, Denver, CO Solar Hot Water Heater Panel Installation Photo Courtesy DOE/NREL, Credit – Warren Getz Photo Courtesy DOE/NREL, Credit – David Parsons

38. Wrap-up Considerations For Green Technology – Green Building

39. Energy Innovation & design Green materials/products Indoor environmental quality Site sustainability Conservation What Makes A Building A Green Building? There are many benefits to Going Green – if done correctly.

40. Green, Greener, Greenest!!! THANKS FOR ATTENDING!!! ANY QUESTIONS?