E:/2008/CUST/C. BOHAN/GOING GREEN/GREEN TECH-BLDG WEBINAR.PPT 1 © 2008 The Travelers Companies, Inc. All rights reserved. Asset ##

Green Tech/Building Initiatives & Potential Insurance Issues

“GREEN, GREENER, GREENEST”

STRIMA 2008 ConferenceDaniels, West Virginia

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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.

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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

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Green, Greener, Greenest – What’s so GREEN?

Photo Courtesy of DOE/NREL, Credit – Bruce Green

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Green, Greener, Greenest – What about this one???

Source: University of Maine at FarmingtonEducation Center

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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

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Green Tech - Green Building

Energy

Green materials/productsSite sustainability Conservation

Indoor environmental quality

Innovation & design

Energy Costs – Natural Resources – Availability of Green ProductsWhy the focus on Buildings?

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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)

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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”

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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)

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Being Green isn’t new!!

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Green, Greener, Greenest – University of Southern Maine

Source: University of Southern Maine – Portland campus; Wishcamper Center

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Photo Courtesy of DOE/NREL, Credit – Steve Hall & Hedrich Blessing

Green, Greener, Greenest – Life Sciences/Labs

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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)

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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)

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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

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Green Tech - Green Building

Energy

Green materials/productsSite sustainability Conservation

Indoor environmental quality

Innovation & design

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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

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Energy - Alternative/Renewable

Photo Courtesy DOE/NREL, Credit – Warren Gretz

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Building Integrated Photovoltaics (BIPV) – Oberlin, OH

Photos Courtesy of DOE/NREL, Credit – Robb Williamson

Oberlin College – Adam Joseph Lewis Center for Environmental Studies

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Solar ThermalJefferson County Jail, Golden, CO

Photos Courtesy of DOE/NREL, Credit – David Parsons

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Energy – Considerations

Some Potential Issues Some Recommended Controls

Type and size Determine demand & resource availability

Environmental exposures Confirm established track record within anticipated environment

Proposed location of installation Possible need for structural analysis; safe access for service/maintenance

System certification & vendor track record

Product/system certifications, as well as vendor experience/past work

Physical & health hazards Implement safety and industrial hygiene controls (maintenance)

Warranty – life cycle considerations Product disposed of at end of life

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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

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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

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Green Materials/ProductsS.I.P. - Foam Core & Recycled Wood Wall sections

Foam Icynene Insulation (plastic-based & sprayed on)

Photo Courtesy of DOE/NREL, Credit – U.S. DOE & Craig Miller Productions

Photo Courtesy of DOE/NREL, Credit – Paul Norton

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Considerations For Green Materials/Products

Some Potential Issues Some Recommended Controls

Green does not always = green (“green washing”)

Always evaluate a product’s greenness – avoid being “green washed”

Green does not always = safe Ensure evaluation of traditional product safety concerns and controls

New products & technologies - lack of standards, track record & certification

Confirm established track record and certifications for intended use

Durability & proper installation (construction defect)

Review lab & real-world testing data

Vendor/contractor experience with green products/materials

Contractor w/ track record for specific products of interest

Life cycle considerations Product disposal at end of life

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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.

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Considerations For Site Sustainability

Some Potential Issues Some Recommended Controls

Higher costs if not considered early in project

Pre-planning discussions and detailed design reviews

Brownfield redevelopment – lack of scope for remediation

Independent site assessment and detailed remediation plans

Erosion control mgt. – Failure to meet requirements

Master plan should consider both quantity and quality – approvals

Habitat restoration Ensure site survey and inclusion in master plan for building

Heat island effects Site survey plans for shade, vegetated roof and/or high reflectance covering, paving materials

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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

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Considerations For Conservation – Focus On Water

Some Potential Issues Some Recommended Controls

Lack of routine inspection and maintenance

Establish both routine and PM inspection/maintenance for water efficiency systems

Plant species can affect indoor air quality

Proper planning and consultation for drought-resistant plants

Failure to properly treat greywater, or using greywater in non-approved applications

Ensure greywater system controls are established, and systems are routinely inspected/maintained

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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)

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Considerations For Improved IndoorEnvironmental Quality (IAQ)

Some Potential Issues Some Recommended Controls

Lack of HVAC commissioning and calibration

Verify HVAC systems are installed, calibrated and commissionedFull building air flush

Operable windows Appropriate rules concerning use, and follow-up with occupants

New “low or little off-gassing” (low VOC) products/materials

Evaluate new materials for potential issues prior to selection & installation

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Innovation And DesignCertified Green/Vegetated Roof Coverings

Photo Courtesy of DOE/NREL, Credit – Katrin Scholz-Barth

Chicago City Hall:22,000 sq. ft. roof-top garden for heat island reduction & rain water run-off

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Green Roofs

Travelers Building in St. Paul, MN

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Innovation And DesignGreen Vegetated Wall

Photo Courtesy of DOE/NREL, Credit – John Krigger, Saturn Resource.

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Innovation and DesignConsiderations for Vegetated Roofs/Walls

Some Potential Issues Some Recommended Controls

Contractor experience – track record Confirm established & successful track record for intended project, certifications

Weight of materials, growing medium, water, etc.

Structural analysis for roof load – safety factor for growth/materials

Waterproofing Testing and water drainage is criticalPlant selection and maintenance considerations

Selecting plants for the native environment (drought tolerant)

Safety considerations Safety planned for intended useDo-it-yourself kits (be careful) Defects associated with installation –

water intrusion

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Considerations For Contractors/InstallersOf Green Technology/Green Materials/Products

Photovoltaic Module Installation-1997Governor’s Mansion, Denver, CO Solar Hot Water Heater Panel Installation

Photo Courtesy DOE/NREL, Credit – Warren GetzPhoto Courtesy DOE/NREL, Credit – David Parsons

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Wrap-up Considerations For Green Technology – Green Building

Some Potential Issues Some Recommended Controls

Unfamiliarity with new materials and installation practices

Utilize factory trained and/or LEED-qualified personnel

Product track record warranties Look for established track record for product and vendors - RESEARCH

Performance guarantees - project quality

Ongoing communication/design reviews

Possible additional hazards for workers and occupants associated with green technology

Implement safety and industrial hygiene controls

Inadequate planning when going green

Consider cost drivers early in project, affects on building value, replacement time

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What Makes A Building A Green Building?

There are many benefits to Going Green – if done correctly.

Energy

Green materials/productsSite sustainability Conservation

Indoor environmental quality

Innovation & design

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Green, Greener, Greenest!!!

THANKS FOR ATTENDING!!!

ANY QUESTIONS?