Reducing Hospital CostsReducing Hospital Costs through Energy Efficiency

National Energy Situation.Energy ManagementSmart Energy Design Assistance CenterSEDAC Top TenResults we have seenFunding from Utilities and DCEO

Source: DOE/EIA 2008

160Crude Oil Spot Price (WTI)

120

140 World-wide demand has been slammed by the recessionary pressures of high prices and

100

120

el

pressures of high prices and the deteriorating global economy.

60

80

/Bar

re economy.

40

60$/

0

20

0

Source: ASPO 11/2008Actual Oil ProductionActual Oil Production

2002 – 28.10 Gb2003 – 29.05 Gb2004 – 30.33 Gb2005 30 87 Gb2005 – 30.87 Gb2006 – 30.86 Gb2007 – 30.82 Gb2008 – 31.20 Gb

Illinios Natural Gas PricesCommercial Residential Industrial

14

16Commercial Residential Industrial

10

12

on B

tu

6

8

10

er M

illio

4

6

lars

pe

0

2

Dol

Source: DOE/EIA 2009

US Coal Prices Source: DOE/EIA 2008

The rise in fossil energy prices is driven by structural changes in the world economy that are producing

idl i i d d t ti f i i trapidly increasing demand at a time of rising costs of production. Oil is depressed now but higher costs will come backwill come back.Electrical restructuring will result in price increases. Large users are being driven to the ARES market.Large users are being driven to the ARES market.Energy efficiency and renewable energy are a large part of the solution.p

Reduce energy usage at your facility:Reduce energy usage at your facility:◦ Typical buildings can save 10 to 20% with best

practices and up to 30% with major mods.R d i t l i t fReduce environmental impact of energy usage:◦ Energy efficiency is by far the most cost effective

solution.◦ Focus on energy sources that yield the most savings.Reduce the impacts of future rate increases:◦ The less energy you use the lower your total cost◦ The less energy you use, the lower your total cost

increases will be. ◦ Energy efficiency costs <$500/kW while new sources

cost $3 000 to $10 000 per kWcost $3,000 to $10,000 per kW.

How to get more efficient and d treduce costs:

◦ Use a systematic approach.◦ Plan for continuous improvement.◦ Your program should be integrated into how

o do b sinessyou do business.◦ Apply the level of effort appropriate to your

organization’s energy costs and usage (10organization s energy costs and usage (10 percent of your goal/year).

If d ’t k h i it iIf you don’t know where you are going, it is awfully hard to get there. Yogi Berra

Energy costs are increasing and becoming a larger percentage of operating costs.A s stematic approach ins res that all opport nitiesA systematic approach insures that all opportunities are considered.Continual improvement insure new methods andContinual improvement insure new methods and technologies are incorporated into an existing program.p gEnergy can be managed and many operations are not capitalizing effectively on this opportunity.

Sho ld be appropriate to o r le el of energShould be appropriate to your level of energy usage & cost and your opportunities & risks.Opportunity to reduce costs is typically 10 to 20%Opportunity to reduce costs is typically 10 to 20% over 5 years. (2 to 4 percent per year).Program administration costs should be about 1Program administration costs should be about 1 to 2 percent of annual energy costs.For a $1 million annual use, this could justify , j yspending $20,000 to $40,000 to plan and administer a five year program.

Gather Data CommunicationsGather Data

Analyze Data

Communications

PlanningQuantify Opportunities

Select ProjectsSet Goals

j

Provide JustificationAwarenessGain Approval

Implement ProjectsPerformance Tracking p j

Project Validation

g

1 M t 5 Project1. Management Approach

5. Project PrioritizationP j t2. Facility Profile

3 Energy Use

6. Project ManagementK P f3. Energy Use

Profile4 Best Practices

7. Key Performance Indicators

4. Best Practices 8. Continual Improvement

We have entered interesting times.Enhancing energy efficiency in existing g gy y gbuildings and utility systems is an imperative.New building and utility system designs have t b f dl ffi i tto be profoundly more efficient.This is not going to go away. The current dip in oil prices is only a blip We can’t punchin oil prices is only a blip. We can t punch enough holes in the ground to be “independent”.pEnergy management presents a sound approach to deal holistically with the issues.

The energy efficiency policies buildingThe energy efficiency policies, building and appliance codes, incentives, and technolog impro ements in the U Stechnology improvements in the U.S. since the mid-1970s now avoid the use

f i t lof approximately:◦ 40 quadrillion Btu/year — roughly 40

percent of the energy currently consumedpercent of the energy currently consumed.◦ The emission of more than 2 billion tons of

CO2 per yearCO2 per year.

The cost of saving energy is going down while the price of energy is going up.gy g gEfficiency is the cleanest, cheapest, safest, and most secure source energy we have.These savings from energy efficiency to date have not yet come close to tapping the f ll t ti l f ifull potential for savings.Incentives/financing:◦ EPAct 2005 deductions and tax credits◦ EPAct 2005 deductions and tax credits.◦ EEPS rebates will encourage efficiency.◦ Cultivate Illinois – low interest loans.◦ ARRA Programs coming.

In 2003 annual energy expenditures in IllinoisIn 2003 annual energy expenditures in Illinois were $27.0 billion (Commercial and Industrial were $10.7 billion).

In 2006 total energy expenditures were $43.3 billion (Commercial and Industrial — $14.5 billion — a

These costs are increasing and will continue to increase in the long run

36% increase to those sectors).

increase in the long run.The vitality the entire economy and of small businesses in Illinois are affected by these costs. y

Sponsored by ILDCEO AmerenSponsored by ILDCEO, Ameren Illinois Utilities and ComEd.Implemented by UIUC and 360Implemented by UIUC and 360 Energy Group plus Design Assistance experts on contract.Provides Energy Conservation advice and guidance.Targets Illinois small businesses, both commercial and ind strial m nicipal K 12and industrial, municipal, K-12 schools, & community colleges.

Level 1 Level 2 Level 3 Level 4

INITIAL SEDACCONSULTATION

ENERGY AUDITAND DESIGN

DETAILED DESIGNASSISTANCE

FOLLOW-UP ANDFIELD SUPPORTCONSULTATION

Pre-screening

General support

AND DESIGNREVIEW

Walk-throughs

Plan review

ASSISTANCE

In-depth buildinganalysis

Life Cycle Cost

FIELD SUPPORT

Overcometechnical andknowledge

Informationdissemination tocustomers anddesign teams

Plan review

General supportto architects andengineers

Life Cycle Costanalysis

Software energysimulation

barriers

Implementationassistance

Detailedrecommendations

Ongoing support

Clients assisted (as of December 31, 2008):◦ Level 1 – 1 318Level 1 1,318◦ Level 2 – 363◦ Level 3 – 168◦ Level 4 – 165Completed studies of over 17 million square feet with over 43 000 employeeswith over 43,000 employees.An additional 7.5 million sf underway.Recommended energy savings of $11.8M.gy gEnergy impact of 672,675 million Btu (4.3 million therms & 86,147 MWh) and a demand reduction of 19 8 MW19.8 MW.

The environmental benefits of the recommended energy savings are:◦ 127,916 tons of carbon dioxide (CO2)( )◦ 363 tons of sulfur dioxide (SO2)◦ 173 tons of nitrogen oxides (NOx)◦ 19.3 tons of carbon monoxide (CO)◦ 6.56 tons of particulate matter (PM10)◦ 3.22 tons of volatile organic compounds

(VOCs)

Potential energy savings ranged from a highof 100% to a low of 3%for existing buildings

d b t 96% d 12% fand between 96% and 12% for new designs.Data from 107 existing buildings shows:Data from 107 existing buildings shows:◦ 46% energy savings (includes renewables).◦ 35% energy cost savings35% energy cost savings.◦ Typical savings of $45k per year.Data from 30 new building designs shows:g g◦ 42% energy savings (includes renewables).◦ 40% energy cost savings.

$◦ Typical savings of $60k per year.

In a typical hospital, water heating, space heating, and g, p g,lighting account for 61–79 percent of total energy use, depending on the climatedepending on the climate relative to the number of cooling- and heating degree ddays.

For hospitals each $1 saved

Source: EIA/DOE

pin energy costs equivalent to generating new revenues of $20$20.

Envelope dominated vs internal gain dominated.Smaller Buildings (envelope dominated):◦ Envelope very important◦ Systems important

Li hti i t t◦ Lighting important◦ Plug loads less importantL B ildi (i t l i d i t d)Larger Buildings (internal gain dominated):◦ Envelope less important◦ Systems very important◦ Systems very important◦ Lighting very important◦ Plug loads important◦ Plug loads important

www.energystar.gov

Determine energy usage per square foot per year.p yDetermine energy cost per square foot per year.per year.How well does this building perform compared to other:compared to other:◦ Energy Star Target Finder◦ CBECS Performance Targets TableCBECS Performance Targets Table

Principal Building Activity EUI ECI

kBtu/sf/yr $/sf/yry y

Education ...................................... 83 1.38

Food Sales .................................... 200 4.50

Food Service ................................. 258 4.69

Health Care ................................... 188 2.66

Inpatient ....................................... 249 3.16

Outpatient .................................... 95 1.90

Lodging 100 1 65Lodging ......................................... 100 1.65

Residential...................................... 47 0.87

Retail (Other Than Mall).................. 74 1.57

Office ............................................ 93 1.93

Public Assembly ............................ 94 1.66

Public Order and Safety ................ 116 1.99

Religious Worship ......................... 44 0.73

S i 77 1 33Service .......................................... 77 1.33

Warehouse and Storage ............... 45 0.77

Vacant .......................................... 21 0.33

www.energyguide.com

Non-energized (envelope) –g ( p )Windows, doors, roofs, walls, etc.Energized – HVAC, lighting, water g , g g,heating, plug loads, and process loads.Human – people in the building who turn things on and off leaveturn things on and off, leave windows open, come and go, and require heat light & airrequire heat, light, & air.

Separates the building from the outsideSeparates the building from the outside.Check insulation levels and wall construction typeconstruction type.Check roof type and insulation levels.C id h ll th b ildi i l dConsider how well the building is sealed.Need to check windows (how many, size, t d bl / t i dtype, double pane/storm windows present).

N t th l d tNote the envelope data.If you don’t have drawings:y g◦ Sketch footprint.◦Note orientation.◦ Site issues (room for geo well field,

wind turbines, solar arrays).wind turbines, solar arrays).

HVAC type, size, model #, condition, age:Boilers or furnaces◦ Boilers or furnaces.◦ Chillers or A/C units.◦ Types of systems (conditioning delivery).◦ Ventilation and its controls.Hot Water:◦ Type of system and energy source◦ Type of system and energy source.◦ Usage estimate.Lighting:◦ Types of lamps and fixtures and counts.◦ Types of exit lights.◦ Types of controlsTypes of controls.

Wh t i thWhat is there:◦ Computers◦ Lamps◦ Lamps◦ Appliances◦ Medical EquipmentMedical Equipment◦ Are they Energy Star?◦ Are they in the top 25% for efficiency?◦ Can they be turned off or unplugged when

not in use?◦ How are they operated?◦ How are they operated?

Number of employeesNumber of employeesPatient loadsHours of operationHours of operationNumber of PCsLighting levelsTemperature settingsTemperature settingsControl strategies

List your options, goals, and desires.Focus on your 10 best things to do.Review the utility trends and spot y popportunities.Calculate energy and cost savings forCalculate energy and cost savings for options.Document your findings andDocument your findings and recommendations.

NeedsNeedsTechnically AppropriateBiggest Energy UsersBiggest Energy UsersBiggest Energy CostsW k f E d U B k t C t l Pl tWork from End Use Back to Central Plant.Rolling Quick Savings into Long Term Investments.

Lighting Energy UsageOutside

8%

Residential27%27%

Lighting:

Industrial14%

Commercial51%

Lighting:◦ T8 fluorescent lighting with electronic ballasts and high-

bay T5s:E i i b ildi l d lExisting buildings also need controls.New buildings benefits from more efficient fixtures, better layouts, & motion detectors.

C t fl t l f i l l fi t◦ Compact fluorescent lamps for single lamp fixtures, floods, and spotlights in place of incandescent lights.◦ LEDs are coming and have their place in the mix.◦ Exit lighting should be LEDs.

All Building Envelopes (beyond code):◦ Increased insulation levels◦ Increased insulation levels.◦ Infiltration air sealing and duct sealing.◦ Better windows (Low-E, with U-values of 0.4 or (

less).New State Energy Code is in effect since October 9, 2007 – IECC 2006 (ASHRAE 90.1-2004)

H ti V til ti & Ai C diti iHeating, Ventilating, & Air-Conditioning:◦ Sealed combustion high efficiency boilers and

furnacesfurnaces.◦ High SEER/EER Air-Conditioning units.◦ Geothermal heat pumps◦ Geothermal heat pumps.◦ Programmable thermostats.◦ Ventilation heat recovery systemsVentilation heat recovery systems.◦ Demand control ventilation, or at least the ability

to schedule ventilation rates.

Treat code requirements as minimums not maximums!

Energy Efficiency Portfolio Standard partEnergy Efficiency Portfolio Standard part of Illinois Power Agency Act.Major IOUs must play (Ameren &Major IOUs must play (Ameren & ComEd).DCEO has 25 percent of the program forDCEO has 25 percent of the program for public sector and low income housing.Plan to reduce state electrical growth by 2Plan to reduce state electrical growth by 2 percent/yr by 2013.

Smart Ideas™ Business ProgramSmart Ideas Business Program (www.comedsmartideas.com )Standard Cash Incentives:◦ Lighting◦ HVAC (A/C, chillers, VFDs, PTACs, etc)

M t◦ Motors◦ Refrigeration SystemsAmount of rebate is fixedAmount of rebate is fixed.Just fill out forms to get funding total.

Closed for this year (until June)Will have both custom and standard after June.Twice as much money next year.

ActOnEnergy™ Business ProgramActOnEnergy Business Program (www.actonenergy.net)Standard Cash Incentives:Standard Cash Incentives:◦ Lighting◦ HVAC (A/C, chillers, VFDs, PTACs, etc)HVAC (A/C, chillers, VFDs, PTACs, etc)◦ Motors◦ Refrigeration Systemsg yAmount of rebate is fixed.Just fill out forms to get funding totalJust fill out forms to get funding total.

Energy Savings Incentive $0.05/kWh.*Minimum Payback 1.0 years.Maximum Payback Period 7 years.Program closes March 31st for this year.

*The maximum incentive is $100 000 perThe maximum incentive is $100,000 per facility per program year combined for the Standard and Custom Incentives andStandard and Custom Incentives and Custom incentives cannot exceed 50% of the incremental cost.

Standard Program:Standard Program:Set incentives for a standard list of equipment upgrades similar to the utilitiesupgrades, similar to the utilities.

Custom Program:7 cents/kWh for measures with 1-7 year7 cents/kWh for measures with 1 7 year payback.

Caps:Caps$100,000 per program year (June to May)≤ 100% of Incremental Measure Costs (added (cost of increasing efficiency beyond standard replacement option)≤ 50% of Total Project Costs

Link Information

illi i DCEO E P id li RFP t t li tiwww.illinoisenergy.org DCEO Energy Programs: guidelines, RFPs, contacts, applications, and other resources

www.ComEd.com ComEd Smart Ideas guidelines, applications, and resources, including on line application systemincluding on‐line application system

www.ileeps.org EEPS Information for DCEO, ComEd and Ameren EEPS programs

www.sedac.org Smart Energy Design Assistance Center: Technical assistance for businesses and public sector providing energy information, news and trainings, energy service provider list

www.illinoisrecycles.com DCEO Recycling Programs for local government, businesses and non‐profits

www.illinoiscleanenergy.org IL Clean Energy Community Foundation: grants for energy efficiency, renewable energy and natural areas for local government and non‐profits

Hospitals have plenty of opportunities.SEDAC program provides a centralizedSEDAC program provides a centralized mechanism for clients to obtain:◦ Energy conservation information.◦ Energy audits.◦ Detailed simulations and analyses.

Direct implementation assistance◦ Direct implementation assistance.◦ Funnel projects to ComEd, Ameren, & DCEO.Education and training are key componentsEducation and training are key components of the program.The incentives are here or coming.g

Web site: www.sedac.orgC t tContact: info@sedac.org@ g1-800-214-7954