Sustainability: A Business Imperative Chicago Department of Aviation

Joint Session at ACI-NA Annual Conference

Michael Zonsius Chief Financial Officer O’Hare International Airport

Midway International Airport

September 8, 2014

Sustainability: A Business Imperative • Introduction • Sustainability Initiatives • Examples

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AGENDA

• O’Hare and Midway International Airports (combined stats) – 88 million passengers (2013) – 1.1 million operations (2013) – 1,500 CDA employees – 45,000 airport employees – $45 billion of economic activity – 540,000 jobs

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INTRODUCTION:

CDA OVERVIEW

O’HARE MODERNIZATION PROGRAM (OMP) One of the largest civil infrastructure projects in the U.S.

Purpose • Reduce delays, increase capacity & efficiency

Scope • Reconfigure intersecting runways into parallel layout

– 1 new runway (completed 2008) – Relocating 3 runways – Extending 2 runways (1 completed 2008) – 2 new air traffic control towers (1 completed 2008)

• Essentially adding another Midway Airport to O’Hare • No operational impacts

Economic Impact • 195,000 new jobs • Adds $18 billion/year of economic activity to Chicago

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OLD CONFIGURATION

FUTURE CONFIGURATION

INTRODUCTION:

2015 SUSTAINABILITY TARGETS • CDA’s A Sustainable Path 2015 targets

(2010 baseline):

– Reduce energy use by 15%

– Reduce potable water use by 10%

– Divert 50% of waste from landfills

– Maintain a fleet of at least 20% green vehicles

– Reach the Airport Service Quality (ASQ) program’s Top Ten ranking for passenger experience

• Supports the City of Chicago’s Sustainable Chicago 2015 Action Agenda

INTRODUCTION:

LEADERSHIP

World’s 1st airport aeroponic garden

1st major on-airport bee farm in the U.S. and largest at any airport

in the world

1st airport Green Concessions Policy

1st U.S. airport to use RAS in runways & taxiways

1st LEED NC airport rental-car branch

Largest contiguous U.S. airport green roof

1st green roof on an FAA

airport facility

1st airport development sustainability

manual & rating system

SUSTAINABILITY INITIATIVES:

Review Process

City of Chicago

Leadership

• Mayor Rahm Emanuel • 2015 Sustainable Chicago

CDA Leadership

• Commissioner Rosemarie Andolino

SAM Committees

• SAM Chapter & Focus Area Chairs • E.g., Water Efficiency, Planning, Construction

Airports Going Green

Participants & SAM

Contributors

• 400 airport executives, environmental experts and industry leaders

• www.airportsgoinggreen.org

Sustainable Review Panel

• CDA Management Staff • CDA Design and Construction

Staff and Representatives • OMP Project Management Office • Master Civil Engineer • Airport Planners

Construction Manager

• Construction Team

LEADERSHIP SUSTAINABILITY INITIATIVES:

• Sustainable Design Manual Sustainable Airport Manual (SAM) – Finalized prior to start of OMP

– Contractual requirements to incorporate sustainability in design and construction of all CDA projects

– Standards and specifications, checklists, a rating program, and award recognition

SUSTAINABILITY GUIDANCE

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SUSTAINABILITY INITIATIVES:

• Chapters: – Administrative Procedures – Planning – Design/Construction – Operations/Maintenance – Concessions/Tenants

• Input from 200+ stakeholders

• PR from nearly every airport magazine – Airport Improvement, Airport Revenue News, Engineering News-Record, etc.

SUSTAINABLE AIRPORT MANUAL (SAM)

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SAM Contributors

SUSTAINABILITY INITIATIVES:

• SAM compliance is required in all airport contracts – Compliance is tied to payment

• Part of Standard Operating Procedure: – Introduced in the Request for Proposals (RFP) process – Included in project kick-off meetings – Every design team must have a LEED Accredited Professional – Designers must submit a SAM checklist at key design milestones for review (30%,

60%, 90%, 100%)

SAM CONTRACTUAL REQUIREMENTS

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SUSTAINABILITY INITIATIVES:

Tied to payment of all contracts • 01111: Construction Air Quality – Diesel Vehicle Emission Controls • 01524: Construction Waste Management • 01355: Local/Regional Materials • 01356: Recycled Content • 01360: Sustainable Temporary Construction Materials • 02905: Sustainable Airport Landscaping

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GREEN CONSTRUCTION PREREQUISITES SUSTAINABILITY INITIATIVES:

• Green Airplane Certifications

– Recognize those who meet or exceed contractual obligations to incorporate sustainable initiatives into projects

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SAM GREEN AIRPLANE RATING SYSTEM

• 140+ projects reviewed & rated

– 200+ project total expected in 2015

• Facilitated National Environmental Policy Act (NEPA) approval

• Time, $$ and emissions savings

SUSTAINABILITY INITIATIVES:

• Helped the CDA and other airports – Minimize costs – Reduce emissions – Minimize waste & off-airport hauling – Increase recycling – Conserve water and energy – Increase demand for renewable resources

and alternative energy sources – Over $175 million in materials & financial

activity supporting the Midwest economy

SAM ACCOMPLISHMENTS SUSTAINABILITY INITIATIVES:

• 98% of all construction & demo materials reused • Reclaimed > 575,000 tons of asphalt & concrete • Ultra-Low Sulfur Diesel fuel required 5 years before

federal mandate • Diesel oxidation catalysts and particulate traps on

equipment for cleaner emissions • Idling restrictions (5 min/hr) • Regional Materials

– 86% of materials obtained within 500 miles

• Recycled Content – 13% of materials contained recycled content

(> $22 million worth)

SAM ACCOMPLISHMENTS SUSTAINABILITY INITIATIVES:

SAM – TENANT APPLICABILITY • SAM is applicable to both Airport-owned and tenant projects

• Unlike at other airports, CDA tenants must incorporate SAM requirements, e.g.:

– Enterprise Rent-A-Car Facility – Signature Flight Support Facility – FedEx & United Cargo Facilities – Green Concessions Policy

– All 129 existing concessionaires at O’Hare and 47 at Midway must achieve a Green Airplane Rating

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SUSTAINABILITY INITIATIVES:

GREEN CONCESSIONS POLICY • Adopted March 2013 • Requires all concessionaires to:

– Ban Styrofoam – Ban plastic bags, containers and utensils – Separate all solid waste into recyclables,

compost, and refuse – Procure only green cleaning and

hygiene products – Procure sustainable foods – Procure 100% recycled content paper – Donate surplus food – Incorporate SAM guidance and achieve

a ‘Green Airplane Rating’

SUSTAINABILITY INITIATIVES:

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AIRPORTS GOING GREEN CONFERENCE

• Since 2007, the CDA has hosted and sponsored the industry’s leading global aviation sustainability forum

– 7th Annual Conference

– Nearly 400 attendees in 2013

– Sustainability Education Fund

– Guest speakers & attendees from airports around the world

SUSTAINABILITY INITIATIVES:

OMP BALANCED EARTHWORK Quantities to Date Description Over 28 Million Cubic Yards Soil Handled More than 12 Willis Towers Worth of Soil Moved

Over 7 Million Excess Cubic Yards of Soil Kept On-Site and Used as berms

Over 720,000 Haul Trips Saved

Over 1.3 Million Hours of Roadway Travel Saved Over 54 Million Vehicle Miles Traveled Saved Over $150 Million Dollars Saved Over 8.1 Million Gallons of Diesel Fuel Saved Over 82,000 Tons of CO2 Saved

EXAMPLE:

GREEN ROOFS • 333,183 ft2 (> 7 acres) on 14 CDA buildings

– 1st FAA control tower green roof (ORD North ATCT)

– Largest contiguous airport green roof in US (ORD FedEx Sort Facility = 3.5 football fields)

• Improve thermal insulation, reducing heating and cooling costs – ~ $0.20 ft2 saved in energy costs per year

– FedEx operators reported > 30% HVAC cost savings

– South Airfield Lighting Control Vault - extends life cycle of expensive electrical equipment

– Guard post #1 – “lead-by-example” spirit visible to airlines and concessions daily

EXAMPLE:

GREEN ROOFS – FEDEX Green Roof Fully Adhered PVC

Cost Variance Green Roof to PVC

Roof * $7.00 ft2 – Insul/Membrane $6.00 ft2 – Vegetation

$7.00 ft2 – Insul/Membrane +$6 ft2

Structural * $2.00 ft2 $0.00 ft2 +$2 ft2

Irrigation * $0.75 ft2 $0.00 ft2 +$0.75 ft2

Total First Cost $15.75 ft2 $7.00 ft2 +$8.75 ft2

Energy Savings -$0.20 ft2/Year (-$4.10 ft2/20 Years)

$0.00 ft2 -$4.10 ft2

Re-Roofing Cost *@15-20 Years $0.00 ft2 $9.00 ft2 Includes tear off

and re-roofing -$9.00 ft2

Total 20 Year Cost $11.65 ft2 $16.00 ft2 $-4.35 ft2 * Based on 2006 pricing

EXAMPLE:

LAND MANAGEMENT • Vegetation Management

– Grazing services

• Local Food Production – Apiary (beehives) – Urban Garden

• Wetland Mitigation – Enhancing wetlands at

8 different locations

EXAMPLE:

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RECYCLED ASPHALT SHINGLES • Used RAS to help pave Runway 10R-28L (Summer 2014)

– O'Hare is the 1st airport in the U.S. to use RAS in the mix of asphalt layers of runways and taxiways

– 8 million rooftop shingles will be kept out of landfills

– Estimated cost savings = $665,000

• Used warm-mix asphalt (WMA) on runway and taxiway projects

– WMA is produced and mixed at lower temperatures, reducing fuel consumption and emissions, improving asphalt compaction and working conditions, and allowing asphalt mix to be hauled longer distances

EXAMPLE:

RENEWABLE ENERGY • Solar hot-water panels (and green roof) on

ORD ARFF Station #3

• 24 roof-mounted 1kW wind turbines on the MDW Economy Parking Structure

• ORD South ATCT geothermal energy

• 35% of energy for MDW CONRAC purchased from renewable energy sources

• MDW CONRAC solar

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EXAMPLE:

REDUCING ENERGY USE • Retro-Commissioning (improving efficiency of what’s already in place)

– 41% energy savings in ORD Terminal 5 (2011) – 35% savings at ORD Admin Building (2011)

– Future: ORD Heating & Refrigeration Plant – Future: MDW terminal and concourses – Future: ORD Terminals 2 and 3

• Lighting Efficiency

– Received > $1 million in rebates from DECO

– Replaced 1,000 runway & taxiway lights with LEDs

– Replacing lighting fixtures in parking garage and lots

– Replaced 6,000 indoor fixtures, saving > 225,000W

• Energy Retrofits

– Plans to replace 5 chillers: ~ $700,000 savings per year

– Reduces risks from equipment failure/capacity

– Replacing cooling towers: > 1 million kWh savings per year

EXAMPLE:

$600,000 savings per year (a 2 month payback)

$1.5 million potential savings per year

Occupancy / Daylight Sensors & Lighting Controls

7,700 KWh/year energy saved (10%)

Geothermal + HVAC System

721M BTU/year energy saved (21%)

Daylighting Reduces reliance on artificial lighting

Green Roof Reduces cooling / heating load

71 projected LEED Points – GOLD

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ORD SOUTH ATCT

• Completion: 2015

EXAMPLE:

ENERGY EFFICIENT BUILDINGS • Energy efficiency incorporated in 140+

projects reviewed under SAM

• LEED® Certified buildings:

– ORD North ATCT

• 1st FAA LEED Silver tower

• 10% energy improvement

– ORD FedEx World Services Center (Silver)

– ORD Signature Flight Support (Silver)

– ORD Enterprise Rent-A-Car (Silver)

• 1st LEED NC airport rental-car branch

– MDW CONRAC (Silver)

– ORD South ATCT (in progress – Gold)

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EXAMPLE:

VISIT OUR WEBSITES

www.FlyChicago.com www.AirportsGoingGreen.org

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