Team of Experts Announces Groundbreaking Energy Efficiency Retrofit Project at Empire State Building

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World’s most famous office building’s more than $500 million upgrade program to incorporate comprehensive project with goal to reduce energy use by nearly 40 percent.

NEW YORK – April 6, 2009 – Using the Empire State Building as a test case and model, world-class environmental consulting, non-profit, design and construction partners – including the Clinton Climate Initiative (CCI), Rocky Mountain Institute (RMI), Johnson Controls Inc. (NYSE: JCI) (JCI) and Jones Lang LaSalle (NYSE: JLL) (JLL) – today unveiled an innovative process for analyzing and retrofitting existing structures for environmental sustainability.

Adopted as core elements of the more than $500 million upgrade program presently underway at the world’s most famous office building, the program is the first comprehensive approach that integrates many steps to use energy more productively. The program is expected to reduce energy consumption by up to 38 percent and will provide a replicable model for similar projects around the world. Work has already commenced, and building systems work is slated to be completed by year-end 2010. The balance of the work in tenant spaces should be concluded by end of 2013. Work that is scheduled to be completed within 18 months will result in over 50 percent of the projected energy savings. The balance will be an additional 36 months completed by 2013.

The project will prove the viability for energy efficiency retrofit projects to dramatically increase building energy efficiency and reduce its overall carbon output with sensible payback periods and enhanced profitability.

At the end of the project definition process, the team analyzed the steps to be taken in conjunction with other steps towards sustainability as part of the Empire State ReBuilding program within the framework of the existing USGBC LEED rating system. Internal calculations show that the Empire State Building will be able to qualify for GOLD certification for Leadership in Energy and Environmental Design (LEED) for Existing Buildings, and ownership intends to pursue such certification.

“Commercial and residential buildings account for the majority of the total carbon footprint of cities around the world – over 70 percent in New York City. Beginning in February 2008, the Empire State Building has been used as a test bench to create a replicable process to reduce energy consumption and environmental impacts,” said Anthony E. Malkin of building owner, Empire State Building Company. “Most new buildings are built with the environment in mind, but the real key to substantial progress is reducing existing building energy consumption and carbon footprint.”

“This innovative process, which has developed new techniques for modeling and organizing an integrated program, offers a clear path to adoption around the world, leading to significant reductions in greenhouse gas emissions,” according to Malkin. “Along with other steps taken, in recycling waste and construction debris, use of recycled materials, and green cleaning and pest control products, the model built at the Empire State Building will meaningfully speed the reduction in energy consumption and environmental impact and allow more sustainable operations – while simultaneously enhancing profitability and tenant comfort. This is a real program, happening in real time, creating real green jobs.”

The project partners used existing and newly created modeling, measurement and projection tools in a new and repeatable process to analyze the Empire State Building and establish a full understanding of its energy use as well as its functional efficiencies and deficiencies. This provided actionable recommendations along a cost-benefit curve to increase efficiency and without harming bottom line performance. In reviewing more than 60 optional activities, the team identified eight economically viable projects, applicable to building-wide renovations, electrical and ventilation system upgrades and tenant space overhauls that will provide a significant return on investment, both environmentally and financially.

[an error occurred while processing this directive] “In this distressed economic climate, there is a tremendous opportunity for cities and building owners to retrofit existing buildings to save money and save energy,” said President Clinton. “I’m proud of the work my foundation's climate initiative has done with 40 of the world's largest cities, including New York where we played a central role in convening a unique set of partners that are working to make the Empire State Building retrofit project possible. It is this kind of innovative collaboration that is crucial to protecting our planet and getting our economy up and running again.”

“This project brings to bear every bit of experience, research and innovation we’ve accumulated in our 125 years in this business,” said Iain Campbell, Vice President, Johnson Controls, which serves as the energy services company for the program. “It’s gratifying to know that just as we point to this building as one of the greatest achievements of our grandparent’s generation, so can our grandchildren point to us.”

“Not only will this project dramatically reduce the Empire State Building’s environmental impact, but now we’re able to do it in a way that provides meaningful costs savings to the building as well as its tenants,” said Raymond Quartararo, International Director, Jones Lang LaSalle.

With an initial estimated project cost of $20 million, additional savings and redirection of expenditures originally planned in the building’s upgrade program, and additional alternative spending in tenant installations, the Empire State Building will save $4.4 million in annual energy savings costs, reduce its energy consumption by close to 40%, repay its net extra cost in about three years, and cut its overall carbon output through eight key initiatives, including:

1. Window Light Retrofit: Refurbishment of approximately 6,500 thermopane glass windows, using existing glass and sashes to create triple-glazed insulated panels with new components that dramatically reduce both summer heat load and winter heat loss.

2. Radiator Insulation Retrofit: Added insulation behind radiators to reduce heat loss and more efficiently heat the building perimeter.

3. Tenant Lighting, Daylighting and Plug Upgrades: Introduction of improved lighting designs, daylighting controls, and plug load occupancy sensors in common areas and tenant spaces to reduce electricity costs and cooling loads.

4. Air Handler Replacements: Replacement of air handling units with variable frequency drive fans to allow increased energy efficiency in operation while improving comfort for individual tenants.

5. Chiller Plant Retrofit: Reuse of existing chiller shells while removing and replacing “guts” to improve chiller efficiency and controllability, including the introduction of variable frequency drives.

6. Whole-Building Control System Upgrade: Upgrade of existing building control system to optimize HVAC operation as well as provide more detailed sub-metering information.

7. Ventilation Control Upgrade: Introduction of demand control ventilation in occupied spaces to improve air quality and reduce energy required to condition outside air.

8. Tenant Energy Management Systems: Introduction of individualized, web-based power usage systems for each tenant to allow more efficient management of power usage.

Recently, several initiatives have been launched, including the CCI Building Retrofit program and New York City’s PlaNYC in 2007, which aim to reduce the significant carbon footprint of existing structures in major cities. The pilot program launched today at Empire State Building moves from theoretical and directional steps to quantifiable action plans which can be broadly adopted around the world. Through the tangible actions announced today by the Clinton Climate Initiative, Johnson Controls Inc. and Jones Lang LaSalle, Rocky Mountain Institute, and Empire State Building Company, building owners now have a practical example of an economically intelligent path to be responsible members of the global community. This project can increase the confidence of cities, states and governments worldwide in the viability of programs that make positive changes, now.

“To make cities cleaner and more energy efficient, we urgently need a replicable model for retrofitting existing major buildings. This visionary example will help inform and inspire initiatives that can cut carbon emissions, save energy, save money, make jobs, and provide better workplaces in buildings all over the world,” said Amory B. Lovins, Chairman and Chief Scientist of Rocky Mountain Institute.

The full analysis process is available online as open-source materials for public use at www.esbsustainability.com and www.esbnyc.com.

[an error occurred while processing this directive] About the Clinton Climate Initiative
The William J. Clinton Foundation launched the Clinton Climate Initiative (CCI) to create and advance solutions to the core issues driving climate change. Working with governments and businesses around the world to tailor local solutions that are economically and environmentally sustainable, CCI focuses on three strategic program areas: increasing energy efficiency in cities, catalyzing the large-scale supply of clean energy, and working to measure and value the carbon absorbed by forests. In each of these programs, CCI uses a holistic approach to address the major sources of greenhouse gas emissions and the people, policies, and practices that impact them. CCI serves as the action arm of the C40, an association of large cities around the world that have pledged to accelerate their efforts to reduce greenhouse gas emissions, and of which New York is a member. To learn more about the work of the Clinton Climate Initiative and the William J. Clinton Foundation, please visit www.clintonfoundation.org.

About Johnson Controls Inc.
Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit http://www.johnsoncontrols.com/.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $46 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.

About Rocky Mountain Institute
Rocky Mountain Institute (RMI), a 501(c)(3) nonprofit organization, was established in 1982 by resource analysts L. Hunter Lovins and Amory B. Lovins. What began as a small group of colleagues focusing on energy policy has since grown into a broad-based institution with approximately eighty full-time staff, an annual budget of nearly $12 million (over half of it earned through programmatic enterprise), and a global reach. Contact: Josh Baran, josh@fenton.com

About Empire State Building
The “World’s Most Famous Office Building,” the Empire State Building is in the midst of the more than $500 million Empire State ReBuilding program as the flagship of the W&H Properties portfolio of Pre-War Trophy office buildings. Since the Empire State ReBuilding program began in 2007, new investments in infrastructure, public areas and amenities have attracted new, first-rate tenants in a diverse array of industries from around the world. The skyscraper’s robust broadcasting platform makes it the most important broadcast facility in the most important market in the world. The Empire State Building was named America’s favorite building in a poll conducted by the American Institute of Architects. The Empire State Building Observatory is the region’s #1 tourist destination. For more information on the Empire State Building, please visit www.esbnyc.com.
 

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