U.S. Russia Energy Efficiency Workshop November 17, 2010

Public Sector Energy Efficiency FinancingPresenter – Amy Chiang, VP Global Energy Government Relations

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Nearly 50% of Honeywell’s product portfolio is linked to energy efficiency. The U.S. could reduce its energy consumption 20 – 25% by immediately

and comprehensively adopting existing Honeywell technologies.

Air Traffic Modernization

Biofuels Green Buildings Reduced Emissions

Industrial Process EfficiencyEnergy Efficiency,

Demand Response & Smart GridEnergy

Performance ContractsFuel Efficiency

Creating sustainable jobs today using existing technology and infrastructure

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Role Government and NGO’s Play

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US Federal, State, Local Government Engagement

• Legislation Enabling EPC process– Vendor selected based on qualifications– Project components competitively bid– Open book pricing guarantees competition

• Financial Incentives– Tax incentives– Energy Efficiency Grants– Loan Guarantees– Stimulus Funding

• Inducements– Executive Orders for Federal Agencies– Sustainability goals – 2020 GHG reduction targets within 90 days– Push for Building Codes

Billions Funneled through State, Local Govt Creating 3 - 4 Million jobs

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Specific U.S. Stimulus Package Programs

• US Department of Energy– Energy Efficiency and Conservation Block Grants (EECBG) - $3.2 billion

• States, Units of Local Government, Indian Tribes

– State Energy Program (SEP) - $3.1 billion• State Energy Offices

– Electric Delivery and Energy Reliability (Smart Grid) - $4.5 billion – Weatherization Assistance Program (WAP) - $5.0 billion

• States, community action agencies, other non-profits and local governments.

• US Department of Education– Modernization of Schools and Higher Education Facilities - $4.5 Billion

• States

• General Services Administration – High-Performance Green Buildings - $4.5 billion

• General Services Administration for federal facilities.

• Department of Defense Modernization - $3.6 billion – Modernization of DOD facilities, including energy-efficiency improvements.

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Impact of Leveraging Incentives

Grants + ARRA + Funds + Guaranteed Program Maximizes Impact, Minimizes Economic Risk

* Illustration for comparison purposes

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Case Studies

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Minneapolis Public Housing

Savings Fund Improvements, Capital Preserved for Core Mission.… Providing Quality, Affordable Housing

Manufactured Products

Local Labor Engineers Mechanical Contractors Electrical Contractors Residents

GREEN JOBS

Facility Improvements

• High Efficiency Boilers

• Weather Stripping

• New Controls

• New Lighting

• New Stoves

• Water Conserving Showers

Economics

• Bank Investment -- $33.6M

• Guaranteed Savings -- $3.7M/yr

• Payback Period -- 20 years

• Jobs Created -- 250

• Savings Pay for Program• Reduced Energy

Dependence• Significant Job Creation

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City of London, UK

Solution - Honeywell EPC• Phase I (May 2009): $6.2M USD project in 22 buildings

– Lighting Replacement and Controls– Upgraded Building Energy Management Controls– Control of PC’s during night time and in stand-by mode– Building Fabric Improvements– Installation of CHP Plant– Installation of Solar Thermal Hot Water System

Benefits• First C40 City to initiate a CCI Retrofit Program• Guaranteed energy savings of $1.0+M per year• CO2 reduction of 3,648 metric tons per year

• Improved Facility Infrastructure• 25% electrical and 20% gas reduction

Customer Issues• Reduce GHG Emissions and Energy Costs. Joined C40

Climate Leadership Group to share in best practices and committed to reducing its Greenhouse Gas (GHG) Emissions under the Clinton Climate Initiative.

Challenge• Reduce carbon emissions in 100 public buildings by 25%+ as

part of mayor’s target to reduce total emissions 60% by 2025• Project paybacks of 10 years or less