GROOM ENERGY SOLUTIONS INC Making Parking Garages more

GROOM ENERGY SOLUTIONS, INC. Making Parking Garages more efficient AND Environmentally Friendly DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES Wisconsin Parking Association November, 2008

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Agenda § Climate Considerations § Cost Considerations § Current Energy Savings Technologies § Future Energy Savings Technologies § Case Study § Q&A 2

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Groom Energy Solutions Provides a full spectrum of renewable and energy efficiency technologies and services to commercial and industrial companies nationwide. § Climate Strategy consulting § Comprehensive energy and environmental assessments § Practical solutions through turn key installation across the US § Financing and Maintenance offerings 3

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES GES Solution Offerings Groom Energy Climate Strategy Comprehensive Energy Assessments Energy Efficiency Renewable Energy Turn Key Rollout Services Lighting Energy Commodity Daylight Harvesting HVAC Demand Response Solar Electric Power Factor Combined Heat/Power Solar Thermal Motor/Drive/Compressors Distributed Generation Wind Research & Development Maintenance Services Financing Services 4

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Climate and Emissions Considerations GHG emissions in 5 major categories § CO 2 – Carbon Dioxide 85% § Methane – 21 times more harmful than CO 2 8% § NO – Nitrous Oxide 5% § Fluorocarbons – Manufacturing process byproduct § Sulfur Hexafluoride – Manufacturing process byproduct The leading emitter of CO 2 – Electricity generating Power Plants § Predominantly coal burning Carbon Dioxide is thought to be the leading contributor to GHG and Global Warming 5

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Environmental Programs: § Carbon footprint reduction § Climate Registry § EPA’s Climate Leaders Energy Efficiency § Energy Star § Building Rating § Massive Marketing Value § Customers prefer Green § LEED § Existing Building 6

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Electricity Demand Prices Energy Demand is Skyrocketing • Oil demand will increase by 50% from ’ 02 to ’ 30 • Electricity demand is growing 30% faster than supply Electricity Costs are predicted to escalate • Fuel prices for natural gas have increased over 300% since 1999. Edison Foundation. • Coal is plentiful but dirty • Coal demand has increased by 20% in the past 2 years. Brattle Group. Electricity prices have increased in all regions by an average of 6. 5% per year. 7

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Legislative activity Legislative drums are beating § Strong Economy and Climate Protection Act 2006 Feinstein (D) § Mandatory Cap and Measurement Requirements § 2008 Liebermann Warner Act (in committee) § President elect Obama strongly supports cap and trade § Measurement>Regulation>Reduction § Multiple Incentive and Support Programs § Passed with the Economic Stimulus act The perfect storm for ever escalating electricity prices and increased GHG reporting requirements. 8

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Energy use in Parking Garages Most garages run 24/7/365 Major Consumers of Electricity § Lighting § HVAC – Fans (mostly below ground) Variable Cost Breakdown § Labor/Management § Electricity § Maintenance How much electricity does an average garage consume? § $115, 000 (@$. 12/k. Wh) § 950, 000 k. Wh § 500, 000 square foot above grade garage 9

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Ventilation Systems in Today’s Garages Two types of code requirements for ventilation § 24/7 § Sensor activated Ventilation standard - ASHRAE Standard 62 Most ventilation fans run at full speed 24/7/365 § Regardless of requirements § Volume of Automobiles § Amount of CO emitted Energy Efficiency measures to consider § Variable or multi-speed motors § Sensing technologies that monitor CO space by space § Applies the appropriate CFM to the correct location 10

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Lighting in Today’s Garages Today’s market § Mostly sealed/gasketed HID based systems § Metal Halide § High Pressure Sodium § Limited sealed & gasketed fluorescent linear fluorescent installations Market Trends § While most Industrial and Commercial facilities have retrofitted away from HIDs to fluorescents, most garages have not made this transition § Issues: § § ROI under 2 years required Performance in hot and cold temperature zones Perception about lamp failure and color rendering How long till LEDs are economically viable? Energy Efficiency measures to consider § Retrofit to more energy efficient systems § Outsource/bundle in maintenance – Performance Contracting 11

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES High Efficiency Lighting Options Lamp style/types available § Fluorescent Vapor Tight Fixtures § HID pulse start § Induction lamp based systems § LEDs § Compact Fluorescent (PL) Retrofit Kits Each have positives and negatives § Lamp life § Energy savings § Capital cost § Maintenance § Quality of light § Cold and hot weather performance 12

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Renewable Applications to Consider Rooftop mounted Wind § Mounting to parapet wall of garage structure § Boston Logan Airport Deployment § 20 1 kw turbines deployed March 2008 § 100, 000 k. Wh annually displaced Solar Photovoltaic systems § 180 – 200 watt panels per section 3 x 5 feet per panel § Kwh produced by PV panels, integrated into buildings electrical infrastructure 13

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Future Applications Photovoltaic Shade structures § Top floor retrofit or new build § Heavy incentives § Green Marketing Plug-In Hybrid Stations § Charge or sell back k. Wh from § 14 battery charging stations § Mfr Products Rolling Out § Daimler Sprinter, Chevy Volt, Toyota Prius PI § Wal Mart support § "there is a place for Wal. Mart in the hybrid electric or plug-in electric car market“ Lee Scott New Revenue Opportunity

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Energy Efficiency Incentives 15 Local Utility Rebates (Lighting and Fan Motors) § Regional in Nature, mostly in deregulated markets § Can represent up to 50% of the entire cost of a project § Documentation is the key! Federal EPAct 2005 Tax Incentive (Lighting) § $. 60/sq. ft. § LPD, Bi-Level Switching, IES Light Levels § Tax Deduction § Free riding § 2 Big Issues § Design for Success – Chose a knowledgeable provider § Memorialize the correct documentation § “Designer” designation for government applications Federal Economic Stimulus Act 2008 (All Capital Projects) § Projects enjoy 50% 1 st year depreciation § Only for projects completed in 2008 Demand Response participation § $ annuity for commitment to reduce load during “events”

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Renewable Energy Incentives Local/State Clean Energy Fund § Incentives available in certain states such as CA, NY, NJ, CT, MA § Newly developing incentive programs in many other states § $1 to $4 per watt Federal EPAct 2005 § 30% Tax Credit for solar and wind applications § Extended for 5 years 2008 Economic Stimulus Act § Accelerated depreciation for 50% of the value of capital projects § Set to expire at the end of 2008 Renewable Energy Credits (RECs) § Credit for 1 mega-watt hour of certified renewable energy produced § Currently trading at approx. $30/REC § Firms will forward buy 7 years of RECs 16

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Financing Traditional Energy Efficiency Options § Outright Purchase § Leasing § Operating lease § Finance lease § Outsourced Performance Contracts § Guaranteed savings § No capital outlay § No maintenance costs § Multi-year commitment Power Purchase Agreements § “Rent your rooftop” by buying power from renewable sources with long term purchase contracts § Buy power at a discounted rate for a given period of time 17

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Lighting Upgrade Case Study – Initial system Current technology § 410 – 175 MH (215 total watts) lighting fixtures § 10, 000 hour rated life (1. 14 years) § 20 – Incandescent Exit Signs § 2, 000 hour rated life (2. 7 months) § 400, 000 square feet running 24/7 § Annual Emissions § 1, 607, 846 pounds of CO 2 § 10, 540 pounds of SO 2 § $113, 845 Annual Cost of Lighting - 948, 708 k. Wh 18

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Lighting Upgrade Case Study - Issues Cold weather location § Linear Fluorescents were not considered – poor cold weather performance Constant Maintenance of Exit Signs § Liability concern Frequent lamp replacement § Low life expectancy § Vibration from snow plows and traffic Immediate Cash Flow required 19

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Lighting Upgrade Case Study - Technology Upgraded Existing fixtures to: § 410 – 93 watt 4 pin hi amalgam fluorescent § 20, 000 hour rated life (2. 3 years or 2 x previous) § 20 – LED screw in retrofits § 50, 000 hour rated life (5. 7 years or 20 x previous) 20

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Lighting Upgrade Case Study – Financial Impact § $75, 637 in annual energy and maintenance savings § $24, 600 Utility Incentive dollars received § $8, 647 EPAct 2005 bottom line savings § $108, 884 Total First Year Savings § Project Return on Investment 10 months § Added Positive Environmental Impact § Additional Carbon Credit opportunity of $2, 500 per year § Annual Emissions § From 1, 607, 846 to 691, 984 pounds of CO 2 § From 10, 540 to 4, 536 pounds of SO 2 21

GROOM ENERGY SOLUTIONS, INC. T H A N K Y O U ! For more information or for a copy of this presentation please contact: Eric Steele Groom Energy Solutions esteele@groomenergy. com (508) 465 0154 DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES

GROOM ENERGY SOLUTIONS, INC. Appendix DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFICIENCY TECHNOLOGIES

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Environmental Hype or Reality? The Arctic Ocean could be ice free by 2050. Arctic Climate Impact Assessment. 2004. Temperatures are rising. Of the 20 hottest years in recorded history, 19 have occurred in the past 20 years National Geographic Study 2006 Global Warming is a reality, and humans are contributing the largest portion of GHG. Intergovernmental Panel on Climate Change 24

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Air and Water in Perspective The Blue Ball represents all the water (fresh and salt) in the world The Pink Ball represents the atmosphere that surrounds the earth 25

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Environmental Impact §Sea levels around North America are rising. 08 -. 12% per year (Exception is Alaska where the land is rising) §Temperatures around the globe are rising § Man-made or natural? 26

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Case Study Lighting Current technology § 410 – 175 MH (215 total watts) lighting fixtures § 10, 000 hour rated life (1. 14 years) § 20 – Incandescent Exit Signs § 2, 000 hour rated life (2. 7 months) § 400, 000 square feet running 24/7 § Annual Emissions § 1, 607, 846 pounds of CO 2 § 10, 540 pounds of SO 2 § $113, 845 Annual Cost of Lighting - 948, 708 k. Wh 27

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Case Study Lighting Performance Issues § Cold weather location § Linear Fluorescents were not considered – poor cold weather performance § Constant Maintenance of Exit Signs § Liability concern § Frequent lamp replacement § Low life expectancy § Vibration from snow plows and traffic § Immediate Cash Flow required 28

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Case Study Upgraded Technology § 410 – 93 watt 4 pin hi amalgam fluorescent § 20, 000 hour rated life (2. 3 years) § 20 – LED screw in retrofits § 50, 000 hour rated life (5. 7 years) § Annual Emissions § 691, 984 pounds of CO 2 § 4, 536 pounds of SO 2 § $48, 933 Annual cost of lighting – 407, 778 k. Wh 29

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES Case Study Upgrade Impact Economics § Cost Savings § $75, 637 in annual energy and maintenance savings § $24, 600 Utility Incentive § $8, 647 EPAct bottom line savings § $108, 884 Total First Year Savings § Carbon Credit opportunity of $2, 500 per year § Return on Investment 10 months 30

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES High Efficiency Lighting Options Fluorescent Vapor Tight Fixtures § Positives § Good color rendering § Long life § Good energy savings § Negatives § Costly installation and expensive waste § Poor temperature dynamics (hi and lo temps) PL based Retrofits § Positives § Inexpensive § Good color rendering § Long life § Good energy savings § Excellent temperature dynamics § Negatives § Not possible for all applications 31

DESIGN, ENGINEERING AND INSTALLATION OF RENEWABLE AND ENERGY EFFECIENCY TECHNOLOGIES High Efficiency Lighting Options 32 Induction lamp based systems § Positives § Excellent life expectancy § Good energy savings § Good color rendering § Negatives § Costly and expensive to install § Very poor reliability LEDs § Positives § Excellent life expectancy § Tremendous potential for future performance § Good color rendering § Good low temperature performance § Directional light characteristics § Negatives § Costly § Marginally efficient right now