1. Comprehensive Energy Evaluation By Paul Hulsey, VP of Energy Sales Core Energy Group

3. Where do we start?

5. The Energy Efficient Commercial Buildings Tax Deduction

7. One Year of Electricity consumption History

8. One Year of Gas Consumption History

9. One Year of Water Consumption History

10. Identify Conservation Opportunities

11. Thermal Imaging to locate Heat Lose

12. Examples of Energy Efficient Upgrades • Lighting – Energy efficient lighting systems (reduced wattage) – Lighting control system (occupancy sensors/dimmable lighting) • Envelope – Energy efficient windows (Low-E) – Highly reflective roofing – Enhanced roof and wall insulation – Light shelves

13. Examples of Energy Efficient Upgrades (continued) •HVAC – High efficiency heating systems (condensing boilers) – High efficiency cooling systems – Direct and/or indirect evaporative cooling systems – Energy recovery units – Geothermal heat pumps – Premium efficiency motors – Variable speed fans and pumps – Building management systems – Solar systems (PV and water)

14. EPAct 2005 and Section 179D What is EPAct 2005? The Energy Policy Act of 2005 Added section 179D (the Energy Efficient Commercial Buildings Tax Deduction) to the Internal Revenue Code Is a special financial incentive created and designed to reduce the initial cost of investing in energy-efficient lighting and other building systems via an accelerated tax deduction. Allows building owners (or tenants) to write off the complete cost of upgrading a building’s indoor lighting, HVAC/hot water and building envelope in the year the new equipment is placed in service, capped at $1.80 square foot. Alternately, the owner (or tenant) could upgrade one of these three systems capped at $0.60 square foot.

15. Lighting Study for EPAct 2005

16. Federal, State and Local Utility Incentives Both local utility companies have what they call Prescriptive and Custom Incentive programs for energy efficient upgrades done to commercial and industrial buildings. Program details and incentive amounts are very similar Program incentives are limited customer, per facility and per year. The customer is defined as the business entity, with a taxpayer ID number, that is responsible for the utility bill for one or more facilities. A facility is defined as a single meter or multiple meters on a single property for which a single customer is responsible for paying the electricity and/or gas bill. (DTE example) Customers saving electricity may receive up to $150,000 per facility per program year; the total customer cap (across all facilities saving electricity) is $500,000 per program year. Customers saving gas may receive up to $25,000 per facility per program year; the total customer cap (across all facilities saving gas) is $100,000 per program year.

17. So What Does all This Mean with Regards to Upgrading the XYZ Building? Based on what we know and what is specified to be installed/upgraded to the lighting and HVAC systems within the building, the potential tax deduction would be between $0.55 to $1.05 per square foot This means the benefit could be between $75,984.15 - $145,060.65 In addition, incentives from DTE Energy & Consumers Energy would be applicable, most likely under their Prescriptive programs Increased ROI

18. Questions? Paul’s contact info (888) 706-4646 Ext. 321 office (248) 515-2320 mobile phulsey@coreadvisors.net