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?

What Is ENERGY STAR?

Voluntary program administered by U.S. Environmental Protection Agency

1992 1996 1999

ENERGY STAR is a Trusted Brand

Hospitals Retail Office Buildings Hotels

Medical Office Buildings

Waste Water Treatment Plants Courthouses Financial Centers

Warehouses Dormitories Supermarkets Schools

Sector-Based Approach

Who’s Improving Performance with ENERGY STAR

Healthcare Partners

Association Partners

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

1 100

61

Energy program guidance Benchmark energy use in buildings

Designing energy efficient buildings

Best practices, case studies

Communications materials

National recognition

Energy Savings Are Profitable

Senior Care Providers- Margin Maximization Strategy- Performance Management

Residents- Enhanced Affordability- Quality Enhancement Program

Environmental Leadership

- Lead on addressing climate change

Energy Conservation Benefits

The most energy efficient businesses

in America use about 30% less energy than their competitors.

Energy is not a Fixed Cost of Business

Utilities: Largest Controllable Operating Expense

Source: BOMA: 2008 EER

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

Reduce Consumption Increase Operating Income

0% 5% 10% 15% 20% 25% 30% 35% 40%0%

1%

2%

3%

4%

5%

6%

7%

0.00%

0.81%

1.62%

2.43%

3.24%

4.04%

4.85%

5.66%

6.47%

Energy Consumption

NOI

Source: BOMA EER 2008

Potential Increase to Net Operating Income

ENERGY SAVINGS

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

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.

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 100

23

Medical Office Building

Office Building

Hospital

Warehouse

Dormitory

Supermarket

Courthouse

School

Bank/Financial Hotel

Wastewater

Treatment

Retail

Buildings Eligible for anENERGY STAR Score

Senior Care Communities

NEW!

Data Centers Houses of Worship

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, 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

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.

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.

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!

Use ENERGY STAR Scores to Identify Communities for Improvements

PropertyIDDataYearSourceCurrencyChainIDMgmtCoIDOwnerIDOwnerTypeIDSumOrDetailWhoModifiedLastModifiedMktMixBusMktMixTouristMktMixSmMtgMktMixGrpMtgMktMixOtherMgmtCoIDPropertyIDDataYearSourceCurrencyChainIDMgmtCoIDOwnerIDOwnerTypeIDSumOrDetailWhoModifiedLastModifiedMktMixBusMktMixTouristMktMixSmMtgMktMixGrpMtgMktMixOtherLastModifiedMktMixBusMktMixTouristMktMixSmMtgMktMixGrpMtgMktMixOtherMgmtCoIDPropertyIDDataYearSourceCurrency

Po

rtfo

lio in

Be

nc

hm

ark

Ord

er

1

100

5075

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 & LearnHigh scoring buildings

provide lessons learned and label candidates.

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

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

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

ENERGY STAR Certified Senior Care Communities

Apply ENERGY STAR certification

Create and Submit Building Profile

Submit SEP & Application

Obtain Professional Verification

Energy Performance

Score 75 to 100

State Affiliate

Campaigns

• 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

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 E2C Energy Efficiency Commitment

Participants work towards saving 10% or more of their energy use, and are recognized for reaching that goal.

“E2C is sharing of fundamental concepts, real data, proven strategies, financial tools, and local success stories by ASHE members.”

2011 Award Recipients* $13 million in energy savings achieved in 2010

Memorial Hermann Katy HospitalKaty, TX33.9% reduction

Memorial Hermann Memorial City Medical Center Houston, Texas11.7% reduction

Memorial Hermann Prevention and Recovery CenterHouston, Texas19.2% reduction

Memorial Hermann Southeast HospitalHouston, Texas17.7% reduction

Memorial Hermann Southwest Heart and Vascular Institute   New York, New York19.7% reduction

Memorial Hermann The Woodlands HospitalThe Woodlands, TX10.8% reduction

Memorial Hermann Westside HospitalHouston, Texas37.8% reduction

Memorial Hermann Northeast HospitalHumble, Texas22.6% reduction

Memorial Hermann Sugar Land

Hospital   Sugar Land, TX 14.8% reduction

Memorial Hermann Northwest HospitalHouston, Texas18.1% reduction

*Partial list

ASHE Region 10 E2C

Example: AH&LA Energy Slasher Challenge

Add ENERGY STAR to your conference offerings

www.energystar.gov/course

• 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: www.energystar.govPortfolio Manager: ww.energystar.gov/benchmark Free Training: http://energystar.webex.com

Resources for Senior Care Communities: www.energystar.gov/healthcare

Contact: buildings@energystar.gov