Opportunities with ENERGY STAR for AHCA & NCAL State Affiliates
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1 Opportunities with ENERGY STAR for AHCA & NCAL State Affiliates August 19, 2011 Clark Reed, U.S. EPA ENERGY STAR Agenda What is ENERGY STAR? Energy Savings are Profitable Our Partnership Agreement ENERGY STAR Offerings for Communities in Your State State Affiliate Campaigns What is ENERGY STAR?
2 What Is ENERGY STAR? Voluntary program administered by U.S. Environmental Protection Agency ENERGY STAR is a Trusted Brand Sector-Based Approach Hospitals Retail Office Buildings Hotels Medical Office Buildings Waste Water Treatment Plants Courthouses Financial Centers Warehouses Dormitories Supermarkets Schools
3 Who s Improving Performance with ENERGY STAR Healthcare Partners Association Partners
4 A Strategic Approach to Energy Management A roadmap to help organizations Assess energy performance Set reduction goals Track savings over time Reward improvements Energy Conservation Resources Energy program guidance Benchmark energy use in buildings Best practices, case studies Communications materials National recognition Designing energy efficient buildings Energy Savings Are Profitable
5 Energy Conservation Benefits Senior Care Providers - Margin Maximization Strategy - Performance Management Residents - Enhanced Affordability - Quality Enhancement Program Environmental Leadership - Lead on addressing climate change Energy is not a Fixed Cost of Business The most energy efficient businesses in America use about 30% less energy than their competitors. Utilities: Largest Controllable Operating Expense Source: BOMA: 2008 EER
6 Energy Decisions are Business Decisions Enhanced energy performance leads to reduced operating expenses and Better equipment operation and extended useful life Potential labor cost savings Enhanced resident comfort Enhanced image from increased environmental stewardship Reduce Consumption Increase Operating Income Potential Increase to Net Operating Income ENERGY SAVINGS Source: BOMA EER 2008 Energy Savings Can Offset Impending Cuts to Medicare Nursing Homes/Assisted Living spend nearly $2 billion* per year on energy 10% savings from energy conservation equals $200 million *Source: 2003 EIA CBECS data for healthcare, inflation adjusted to 2009
7 Our Partnership Agreement AHCA and NCAL have partnered with ENERGY STAR Commitments: Measure and track the energy performance of offices; Develop and implement plans consistent with the ENERGY STAR Energy Management Guidelines to achieve energy savings; Help spread the word about the importance of energy efficiency to staff and the community; Support the ENERGY STAR Challenge; and Highlight achievements with recognition offered through ENERGY STAR. and are encouraging members to save energy (and money) today Become an ENERGY STAR partner; Benchmark communities in EPA s energy measurement and tracking tool, Portfolio Manager; Set goals for improvement based on the score in Portfolio Manager; Assess current energy management practices to plan an improvement path; Get residents and employees involved in saving energy; and Apply for the ENERGY STAR certification for top performing communities.
8 ENERGY STAR Offerings Comparative Metrics Is 60 MPG high or low for this automobile? Is 90 kbtu/sf/yr high or low for this building? Fuel Efficiency: MPG Energy Performance Score: 1 to Buildings Eligible for an ENERGY STAR Score Senior Care Communities Hospital Medical Office Building NEW! Bank/Financial Courthouse Data Centers Dormitory Hotel Houses of Worship Office Building Retail School Supermarket Warehouse Wastewater Treatment
9 Benchmark in Portfolio Manager What is Portfolio Manager? Web-based, no-cost energy tracking tool Measures actual energy performance and improvements Used by over 200,000 buildings (and growing!) Benefits of Tracking Energy in Portfolio Manager Heighten awareness of energy use through an easily understood, score Score normalized for weather, building characteristics to allow comparisons over time or across a portfolio Assess effectiveness of current operations, policies Set priorities for upgrades and retrofits Track improvements and earn recognition Senior Care: Definition Senior Care Facility applies to all buildings in a multi-building campus setting or a stand-alone facility that are designed to house and provide care and assistance for elderly residents. The total gross floor area of a Senior Care Facility should include all activities such as individual rooms or units, wellness centers, exam rooms, community rooms, small shops or service areas for residents and visitors (e.g. hair salons, convenience stores), staff offices, lobbies, atria, cafeterias, kitchens, storage areas, hallways, basements, stairways, connecting corridors between buildings, and elevator shafts.
10 Senior Care Communities Assisted Living Skilled Nursing Nursing Home Supportive Care Dementia Care Continuing Care Retirement Community Long Term Care Hospitals are not eligible for the senior care ENERGY STAR score. Data Inputs Operational Parameters: Gross Floor Area Total Number of Units Average Number of Residents Total Resident Capacity Workers on Main Shift # of PCs Owned by the Community # of Commercial Refrigeration/Freezer Units # of Commercial Washing Machines # of Residential Washing Machines # of Residential Electronic Lift Systems % Building that is Cooled, Heated Energy Data: 12 consecutive months of measured energy data for all fuel types Receive a score! Use ENERGY STAR Scores to Identify Communities for Improvements High scoring buildings provide lessons learned and label candidates. O&M improvements will increase savings and make communities eligible for certification. Best investment opportunities are in lower quartiles, where there is the greatest potential for improvement. Reward & Learn Tune Invest PropertyID DataYear Source Currency ChainID MgmtCoID OwnerID OwnerTypeID SumOrDetail WhoModified LastModified MktMixBus MktMixTourist MktMixSmMtg MktMixGrpMtg MktMixOther MgmtCoID PropertyID DataYear Source Currency ChainID MgmtCoID OwnerID OwnerTypeID SumOrDetail WhoModified LastModified MktMixBus MktMixTourist MktMixSmMtg MktMixGrpMtg MktMixOther LastModified MktMixBus MktMixTourist MktMixSmMtg MktMixGrpMtg MktMixOther MgmtCoID PropertyID DataYear Source Currency 1 Portfolio in Benchmark Order
11 Set Goals from Baselines Use goal-setting features in Portfolio Manager to estimate energy savings needed to reach targets Quantify potential cost savings using ENERGY STAR Financial Evaluation Tools See the Building Upgrade Manual to sequence upgrades to maximize savings Consider ENERGY STAR certified products as part of replacements Address No-Cost and Low-Cost Improvements First Staged approach for planning upgrades to maximize energy savings: 35% savings Assess Current Practices, Plan for Longer-Term Improvements Inventory current practices as compared to best practices Energy Program Assessment Matrix (portfolio level) Facility Energy Assessment Matrix (community level) Develop an energy management plan following the ENERGY STAR Guidelines for Energy Management
12 Involve Residents and Employees Resources to help promote awareness and action Bring Your Green to Work with ENERGY STAR campaign Training on engaging employees and senior care residents to save energy Template communications materials and event ideas in the Challenge Toolkit The most energy efficient buildings earn the ENERGY STAR from EPA Top 25% of energyefficient buildings nationwide. Use 35% less energy and emit 35% less carbon dioxide than their peers, on average. ENERGY STAR Certified Senior Care Communities
13 Apply ENERGY STAR certification Energy Performance Score 75 to 100 Obtain Professional Verification Create and Submit Building Profile Submit SEP & Application State Affiliate Campaigns Campaigns: Endorse and promote the ENERGY STAR Challenge A national call-to-action to improve the energy efficiency of buildings by 10% or more Encourage member communities to sign-up online Encourage your communities to: Measure and track energy use Develop plans for energy improvements Make energy efficiency upgrades Earn recognition for achieving the 10% target
14 Launch your own energy efficiency competition! Generate excitement in saving energy Recognize various achievements Most improved Best absolute performance Best in class Strengthen relationships with members Educate members on energy management tips, tools, strategies Unearth new best practices to share and replicate Profile participating members and publicize awardees Help members achieve other forms of recognition Leverage Portfolio Manager to design your competition Create a Master Account Collect data from benchmarked communities Organize and analyze data Quantify achievements Example: ASHE E 2 C Energy Efficiency Commitment E 2 C is sharing of fundamental concepts, real data, proven strategies, financial tools, and local success stories by ASHE members. Participants work towards saving 10% or more of their energy use, and are recognized for reaching that goal.
15 2011 Award Recipients* $13 million in energy savings achieved in 2010 Memorial Hermann Prevention and Recovery Center Houston, Texas 19.2% reduction Memorial Hermann Katy Hospital Katy, TX 33.9% reduction Memorial Hermann Memorial City Medical Center Houston, Texas 11.7% reduction Memorial Hermann Westside Hospital Houston, Texas 37.8% reduction Memorial Hermann Sugar Land Hospital Sugar Land, TX 14.8% reduction Memorial Hermann The Woodlands Hospital The Woodlands, TX 10.8% reduction Memorial Hermann Southeast Hospital Houston, Texas 17.7% reduction Memorial Hermann Southwest Heart and Vascular Institute New York, New York 19.7% reduction Memorial Hermann Northeast Hospital Humble, Texas 22.6% reduction Memorial Hermann Northwest Hospital Houston, Texas 18.1% reduction *Partial list ASHE Region 10 E2C Example: AH&LA Energy Slasher Challenge
16 Add ENERGY STAR to your conference offerings Benchmarking Training Purchasing and Procurement Computer Power Management Team Up to Save Energy Engaging Employees and Senior Care Residents to Save Energy Best Practices to Improve Energy Performance Thank you! For More Information ENERGY STAR website: Portfolio Manager: ww.energystar.gov/benchmark Free Training: Resources for Senior Care Communities: Contact:
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