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Opportunities with ENERGY STAR ® for AHCA & NCAL State Affiliates August 19, 2011 Clark Reed, U.S. EPA ENERGY STAR.

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Presentation on theme: "Opportunities with ENERGY STAR ® for AHCA & NCAL State Affiliates August 19, 2011 Clark Reed, U.S. EPA ENERGY STAR."— Presentation transcript:

1 Opportunities with ENERGY STAR ® for AHCA & NCAL State Affiliates August 19, 2011 Clark Reed, U.S. EPA ENERGY STAR

2 Agenda What is ENERGY STAR? Energy Savings are Profitable Our Partnership Agreement ENERGY STAR Offerings for Communities in Your State State Affiliate Campaigns

3 What is ENERGY STAR?

4 What Is ENERGY STAR? Voluntary program administered by U.S. EnvironmentalProtection Agency 1992 1996 1999

5 ENERGY STAR is a Trusted Brand

6 HospitalsRetailOffice BuildingsHotels Medical Office Buildings Waste Water Treatment Plants CourthousesFinancial Centers WarehousesDormitoriesSupermarketsSchools Sector-Based Approach

7 Who’s Improving Performance with ENERGY STAR

8 Healthcare Partners

9 Association Partners

10 A Strategic Approach to Energy Management A roadmap to help organizations – Assess energy performance Set reduction goals Track savings over time Reward improvements

11 Energy Conservation Resources 1 100 61 Energy program guidance Benchmark energy use in buildings Designing energy efficient buildings Best practices, case studies Communications materials National recognition

12 Energy Savings Are Profitable

13 Senior Care Providers - Margin Maximization Strategy - Performance Management Residents - Enhanced Affordability -Quality Enhancement Program Environmental Leadership - Lead on addressing climate change Energy Conservation Benefits

14 30% less The most energy efficient businesses in America use about 30% less energy than their competitors. Energy is not a Fixed Cost of Business

15 Utilities: Largest Controllable Operating Expense Source: BOMA: 2008 EER

16 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 Energy Decisions are Business Decisions

17 Reduce Consumption Increase Operating Income Source: BOMA EER 2008 Potential Increase to Net Operating Income ENERGY SAVINGS

18 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 Energy Savings Can Offset Impending Cuts to Medicare

19 Our Partnership Agreement

20 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.

21 …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.

22 ENERGY STAR Offerings

23 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 100 23

24 Medical Office Building Office Building Hospital Warehouse Dormitory Supermarket Courthouse School Bank/FinancialHotel Wastewater Treatment Retail Buildings Eligible for an ENERGY STAR Score Senior Care Communities NEW! Data Centers Houses of Worship

25 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!)

26 Benefits of Tracking Energy in Portfolio Manager Heighten awareness of energy use through an easily understood, 1-100 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

27 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.

28 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.

29 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 Data Inputs Energy Data: 12 consecutive months of measured energy data for all fuel types Receive a 1-100 score!

30 Use ENERGY STAR Scores to Identify Communities for Improvements Portfolio in Benchmark Order 1 100 50 75 25 Best investment opportunities are in lower quartiles, where there is the greatest potential for improvement. Invest O&M improvements will increase savings and make communities eligible for certification. Tune Reward & Learn High scoring buildings provide lessons learned and label candidates.

31 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

32 Address No-Cost and Low-Cost Improvements First Staged approach for planning upgrades to maximize energy savings: 35% savings

33 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

34 Involve Residents and Employees 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 Resources to help promote awareness and action

35 Top 25% of energy- efficient buildings nationwide. Use 35% less energy and emit 35% less carbon dioxide than their peers, on average. The most energy efficient buildings earn the ENERGY STAR from EPA

36 ENERGY STAR Certified Senior Care Communities

37 Apply ENERGY STAR certification Create and Submit Building Profile Submit SEP & Application Obtain Professional Verification Energy Performance Score 75 to 100

38 State Affiliate Campaigns

39 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 Campaigns: Endorse and promote the ENERGY STAR Challenge

40 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

41 Leverage Portfolio Manager to design your competition Create a “Master Account” Collect data from benchmarked communities Organize and analyze data Quantify achievements

42 Example: ASHE E 2 C Energy Efficiency Commitment Participants work towards saving 10% or more of their energy use, and are recognized for reaching that goal. “E 2 C is sharing of fundamental concepts, real data, proven strategies, financial tools, and local success stories by ASHE members.”

43 2011 Award Recipients * $13 million in energy savings achieved in 2010 Memorial Hermann Katy Hospital Katy, TX 33.9% reduction Memorial Hermann Memorial City Medical Center Houston, Texas 11.7% reduction Memorial Hermann Prevention and Recovery Center Houston, Texas 19.2% 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 The Woodlands Hospital The Woodlands, TX 10.8% reduction Memorial Hermann Westside Hospital Houston, Texas 37.8% reduction Memorial Hermann Northeast Hospital Humble, Texas 22.6% reduction Memorial Hermann Sugar Land Hospital Sugar Land, TX 14.8% reduction Memorial Hermann Northwest Hospital Houston, Texas 18.1% reduction *Partial list

44 ASHE Region 10 E2C

45 Example: AH&LA Energy Slasher Challenge

46 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

47 Thank you! For More Information ENERGY STAR website: Portfolio Manager: Free Training: http://energystar.webex.com Resources for Senior Care Communities: Contact:

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