1. S U S T A I N1/14/2011 1

2. 1/14/2011 2 3. GreeNG EnergyFacilities Program AnalysisNorthrop Grumman Corporate Building2980 Fairview Park Dr., Falls Church, Virginia, USAMeeting date(s), Arial 20pt.1/14/20113NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I 4. SLIDE 2: ALTERNATE OPTIONGreeNG EnergyFacilities Program AnalysisNorthrop Grumman Corporate Building2980 Fairview Park Dr., Falls Church, Virginia, USAMeeting date(s), Arial 20pt.1/14/20114NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I 5. SLIDE 2: ALTERNATE OPTIONGreeNG EnergyFacilities Program AnalysisNorthrop Grumman Corporate Building2980 Fairview Park Dr., Falls Church, Virginia, USAMeeting date(s),Meeting date(s), Arial 20pt.1/14/2011 NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE5 All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 6. GreeNG EnergyFacilities Program AnalysisNorthrop Grumman Corporate Building2980 Fairview Park Dr., Falls Church, Virginia, USA Meeting date(s), Arial 20pt.1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE 6All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 7. Presentation OutlineTable of Contents:Back up Material:Project Goals & Expected Outcomes ImageryChallenge DefinitionScenario 1Scenario 2Discovery to Date Scenario 3Building Energy/GHG Scenario 4Grid Vulnerability Factor Scenario 5Carbon Reduction ComparisonAnalysis Quadrant [PA]Sustainable Demonstration CenterEnergy Efficiency Options Logistical Operational Power Saving & CarbonSummary Table of Options/ScenariosReduction InitiativesBuilding Efficiency ComponentsScenario 1Energy Management ComponentsScenario 2Solar PV Detail & OptionsScenario 3Fuel Cell Technical DetailsScenario 4Micro Turbine Technical DetailsWind Generation OptionsScenario 5Bio Fuel Sources & Technical DataMicro Grid Technology Options Bio Gas Source & Technical DataOther Options/Initiatives Microgrid ControllerStandby Power Sizing & Technical OptionsEV Charging Stations [PA]Carbon Trading Market DetailsFinancial Incentives, Grants & RebatesEV Support Issues/OptionsCost / ROI Analysis MatrixLocal Regulations & PoliciesSystem Maintenance, Monitoring, & SupportTop Two RecommendationsComparative Using Weighting FactorsMBOs &Behavioral Change Building Energy NeedsMarketing & PR Programs BenchmarksRecommended Next StepsEnergy Use Seasonality NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 8. OverviewProject Scope:ters from California to Virginia. NG is looking to reduce operational costs by determining feasibility to implement multiple renewal as well as environmental gains. provision & implementation of multiple renewable energy sources to Northrop Grummans new Corporate facility. All deliverab NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 9. Discovery to Date Review, Analysis & Due Diligence Systems FeasibilityProject Performance Alignment & PlanningSystems Feasibility - Detailed Briefing Presentation to NG - 3 Site walk-throughs Senior Leadership - Determination of Building Base Load &- Adjustment of Scenarios as needed- Project Performance Metrics Peak Load Energy Needs- Feasibility Options Review- Defined requirements report &- Determination of tangible end results- Meetings, review & innovations Solar Photovoltaicscommunication with A&E provider- Definition of NG GreeNG / CSR Mandates discovery with each provider & Wind Turbines- Project Planningpotential vendorFuel CellMicro Turbine- Review of important compliance requirements- Meeting & knowledge share with A & ECombustion Generator- Review & Analysis Facility Move Deltas- Solutions analysis with multiple Micro Grid Controller- Technologies & best-in-class innovations feasibilityscenarios & phase I plan developmentCogenerationreview - Review of Incentives & AdvantagesGas (biogas)- Coordination of Providers- Analysis Multiple Scenarios & Balance of Energy StorageElectric Vehicle Charging Stations- Utilities historical review & cost analysis NG Strategic Goals- Detailed Bids From Each Provider - Review Net Metering, Feed-in-Tariff, - Finance Options MatrixCarbon Credits (RECs), & Other Clean - GHG Solutions MatrixEnergy Options- Final Solutions Proposed PlanNORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 10. Project Goals Project Goals 1 To reduce NG Corporate facility energy & operating costs. To comply with the NG corporate sustainability & GreeNG goals, including a five-year goal to reduce NG 2 greenhouse gas (GHG) by 25%. To create best-in-class model of NG clean energy programs demonstrating innovations & deployment of 3 multiple best-in-class energy systems/technologies to create/demonstrate facility off-grid capability 4 To use as a vehicle to create positive stakeholder & public perception of NG. To create platform for elimination of risk/threat of risk from unforeseen future national electrical grid 5 outage/challenges including ability for continued facility operations under this potential situation. To define renewable energy requirements for this facility to the A & E sub-contractor to be integrated into 6 facility intelligent energy system design To meet demands for new and renovated facilities that are accessible, secure, healthy, and productive in a 7 substantially reduced Carbon Footprint while minimizing the buildings impact on the environment, and the achievement of the worlds best benchmark for resource efficiency. To use as a platform for greeNG Employee Resource Groups to allow employees to actively contribute to the 8 companys commitment to enhancing the environment. 9 To create demonstration Total Lifecycle Footprint reduction from construction through recycling.NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 11. Balancing ActMultiple factors to consider.NG GHG Reduction Goals oals)washing), Easy Solution, Meet NG GHG goals, No Demonstration of NG Innovation, No Energy Grid Risk Reduction.Top goals have conflicts with each other.dits (RECs) Trade-offs require analysis of scenarios against goa NG Innovation, Reduced cost implementation, Some Energy Grid Risk Reduction [with BioDiesel Generators]Weighting factors applied to each goal to find rightG Innovation, Strong Stakeholder Awareness, Higher Cost Implementation.Need to determine best scenario to achieve NG goa Energy Grid Risk Reduc Facility Energy Cost Demonstration of NG Innovation & Positive Stakeholder AwarenessIRR / $/kWh NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 12. CA vs VA Electrical GridOur National electricity grid drives our carbon footprintHow do we eliminate this variable ?1,883 1,960 Lbs/MwLbs/Mw1,538hhLbs/Mwh724lbs/ Mwh 1,135Lbs/Mwh lbs of CO2eper Mwh1,324 Lbs/Mw h A Building in Virginia must be 64% more efficient than a Building in California to be as green NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 13. Challenge DefinitionLOOK AT GHG/LEED GOLD & DETERMINE 2014 GOAL LINE eGrid/GHG20,000 Problem Statement: Requires more options than building efficiencADDITIONAL FALLS CHURCH WEATHER FACTOR 126815,000 [TOTAL GHG PROBLEM TO RESOLVE LEED GOLD CERTIFICATION - 44% ENERGY SAVING ????ADDITIONAL FALLS CHURCH [GHG] ADDITIONAL FALLS CHURCH [GHG] 10,0007206 7206[14,1907,500 PROBLEMBASE LINE5,000 CENTURY CITY & ARLINGTON CITY & ARLINGTON CITY & ARLINGTON CENTURYCENTURY TO[GHG][GHG][GHG] RESOLVENG GOAL LINE (2014)571657165716WEATHER FACTORS: 9,366SUN HOURS CA (5.5) vs VA (4.68) GHG reduction goals will not be met without additional solutions. 1/14/201113NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 14. Building Energy/GHG Analysis NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 15. Grid Vulnerability Factorbility to transact businessability of the transformersNORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 16. Analysis QuadrantProject GoalsProject Strategic AdvantagesReduce GHG emissions from current NG corp. building levels Will support NG corporate sustainability & GreeNG 5 year goals, to reduce greenhouse gas (GHG) by 25%.Demonstrate/become first off-grid major building inNG as leader in sustainability against major competitors, & move towards goal of peer leader by 2015.Will position the USA/World.Create Energy Security. A vehicle to create positive stakeholder & public perception of NG.An opportunity to create a marquee sustainability project in the Northern Virginia area within a 30 minute commut Challenges & Key ConsiderationsStatus/ActionsDetermination of best-in-class solutions that will achieve NG project goals Determine project best-in-class implementation initiatives after reviewCost effectiveness & ROI determination in line with NG financial goalsBrief A&E groupTechnology solution to achieve major goalsCommence implementation of project initiatives NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 17. Energy Efficiency OptionsConsiderations for Best-in-Class Building Energy Efficiency Renewable Energy sources Energy-efficient building design Smart building management system Design building to use renewable energy Smart outlets High-efficiency heating and cooling equipment High-efficiency lights and appliances Water-efficient equipment Efficient mechanical ventilation equipment Optimize material use & minimize waste Make it easy for occupants to recycle waste Look into the feasibility of graywater Provide responsible on-site water management Minimize automobile dependence. Provide on site charging for EVs Awareness of energy usage & Carbon emissions Make education a part of working daily practice NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 18. Key Performance Metrics- Environmental GHG, Corp goals, etc.- Technology innovation options, viability, & suitability to project goals- Capital cost & ROI Cost of clean energy technologies Financial incentives tax credits, rebates, etc. Engineering & implementation costs- Net electricity price - $/kWh Feed-in tariffs, carbon credits, SRECs, etc Operational costs Biogas options/availabilityEach of the scenarios was evaluated & rated by the 4 key- Local regulations and policy System sizing advantages, feed-in-tariffs options, carbon trading, etc.PROJECT KEY PERFORMANCE METRICSCARBON REDUCTIONINVESTMENT VALUE INNOVATION LEADERSHIP PUBLIC PERCEPTION NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 19. Systems Options Scenario 1: - Grid Energy, Purchase local credits from VA Power or voluntary carbon exchange. BuildingManagement Power Grid Safety & MeterSystem [Back Up PowerDisconnect & Net Metering ]BuildingCarbon (REC) TradReporting& Analytics BioDiesel Generator Safety & [Back up Power]Disconnect MBOs & Behavioral ChangeT KEY PERFORMANCE METRICS CARBON REDUCTIONINVESTMENT VALUE INNOVATION LEADERSHIP PUBLIC PERCEPTIONNORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 20. Systems OptionsScenario 2:- Microturbines (1,000KW) & balance of energy from grid.Building Management Micro TurbinesSafety &System[1000KW Base Load DisconnectDemand Ramp ]Building Carbon (REC) Trad Power GridMeter [Peak Demand PowerReporting & Net Metering ] & Analytics BioDiesel GeneratorMBOs & Behavioral[Back up Power] BioGas ChangeT KEY PERFORMANCE METRICSCARBON REDUCTIONINVESTMENT VALUE INNOVATION LEADERSHIP PUBLIC PERCEPTION NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 21. Systems Options Scenario 3: - Microturbines (1,000KW) & Fuel Cell (400KW) Base Load, Microgrid Controller, with balance of energy from g BuildingManagement Micro Turbines Safety &System [1000KW DisconnectDemand Ramp ]Microgrid BuildingCarbon (REC) Trad Fuel Cells Controller [400 KW Base Load] MeterReporting& Analytics BioDiesel GeneratorPower Grid[Back up Power MBOs & Behavioral [Back up Power]BioGas& Net Metering ] ChangeT KEY PERFORMANCE METRICS CARBON REDUCTIONINVESTMENT VALUE INNOVATION LEADERSHIP PUBLIC PERCEPTIONNORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 22. Systems Optionsrio 4:bines (1,000KW) & Fuel Cell (400KW) Base Load, & Solar Photovoltaic (250 KW), Microgrid Controller, with grid enBuilding Micro TurbinesManagement[1000KW Safety &System Demand Ramp ]Disconnect Microgrid Building Fuel CellsCarbon (REC) Trad[400 KW Base Load] ControllerSolar PVMeterReporting Battery Storage & Analytics[Daytime Power]BioDiesel GeneratorPower Grid [Back up PowerMBOs & Behavioral[Back up Power] BioGas & Net Metering ] Change T KEY PERFORMANCE METRICSCARBON REDUCTIONINVESTMENT VALUE INNOVATION LEADERSHIP PUBLIC PERCEPTION NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 23. Energy ManagementComponentsEnergy systems monitoring: system health, warnings, optimizationLoad monitoring: sub-metering of large demand items such as HVAC, lighting, etcDemand management: arbitrage sources and uses of electricityReporting: baseline energy reductions, carbon emissions, off-grid performance, etc Footprint Tracker from PeopleCube fits many o NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 24. FinancialFor Detail, Refer to Spreadsheet)NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 25. arbon Awareness Monitor Concept 1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE25 All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes.This information is not considered cost or pricing data under Public Law 87-653. 26. Proposed Location NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 27. Solar Canopy - Parking1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE 28All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 28. EV Charging Stations1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE 29All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 29. Micro Grid ControllerIssues for multi-source microgridsOptimizing & managing multiple sources of cleanelectricity throughPeak Shaving, Load LevelingRamp Control, Curtailment MitigationDynamic Power Resource Management - millisecondtimeframe to keep the generation matched to the loadFrequency regulation NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 30. Syngas, Biogas & BioDiesel Fuel cells and micro-turbines may be used with syngas/biogas Shell (Biogas) Rebate Option BioDiesel to be used for Diesel Generator Back up Power Source Potential for carbon reduction and/or offset REC credits Washington Gas programs_______provides/allows NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 31. Co-GenerationDefinition: Ability to use waste-heat to heat orcool facility and provide domestic hot waterOpportunity: Use the waste heat from micro-turbinesTurbine waste-heat recovery substantially decreases the carbonoutput per kWh between 25% and 40% efficiencyimprovements NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVEAll data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 32. Green Power Outlet Option1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE 33All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 33. Next Steps.1/14/2011NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I / COMPETITION SENSDITIVE 34All data and alternatives in this study are considered feasibility assessments only ("what-if") for planning and/or implementation purposes. This information is not considered cost or pricing data under Public Law 87-653. 34. INTRO SLIDE: OPTION 11/14/201135