Donald Fournier SEDAC Program Manager Chair, Building Research Council School of Architecture Univer

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Donald FournierSEDAC Program Manager Chair,
Building Research CouncilSchool of Architecture
University of Illinois at Urbana-Champaign

• Reducing Hospital Costs through Energy Efficiency

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Overview

• National Energy Situation.
• Energy Management
• Smart Energy Design Assistance Center
• SEDAC Top Ten
• Results we have seen
• Funding from Utilities and DCEO

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U.S. Energy Flows 2007 (Quads)
Source DOE/EIA 2008
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World-wide demand has been slammed by the
recessionary pressures of high prices and the
deteriorating global economy.
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Source ASPO 11/2008
Actual Oil Production 2002 28.10 Gb 2003
29.05 Gb 2004 30.33 Gb 2005 30.87 Gb 2006
30.86 Gb 2007 30.82 Gb 2008 31.20 Gb
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Source DOE/EIA 2009
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Horizontal Wells to Fracture Shale
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Unconventional Gas Production
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US Coal Prices
Source DOE/EIA 2008
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The Bottom Line

• The rise in fossil energy prices is driven by
  structural changes in the world economy that are
  producing rapidly increasing demand at a time of
  rising costs of production. Oil is depressed now
  but higher costs will come back.
• Electrical restructuring will result in price
  increases. Large users are being driven to the
  ARES market.
• Energy efficiency and renewable energy are a
  large part of the solution.

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The Benefits of Energy Management

• Reduce energy usage at your facility
• Typical buildings can save 10 to 20 with best
  practices and up to 30 with major mods.
• Reduce 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 increases will be.
• Energy efficiency costs lt500/kW while new
  sources cost 3,000 to 10,000 per kW.

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Energy Management

• How to get more efficient and reduce costs
• Use a systematic approach.
• Plan for continuous improvement.
• Your program should be integrated into how you do
  business.
• Apply the level of effort appropriate to your
  organizations energy costs and usage (10 percent
  of your goal/year).

If you dont know where you are going, it is
awfully hard to get there. Yogi Berra
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Energy Management Programs are Useful Because

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

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Level of Program Effort

• Should be appropriate to your level of energy
  usage cost and your opportunities risks.
• Opportunity to reduce costs is typically 10 to
  20 over 5 years. (2 to 4 percent per year).
• Program administration costs should be about 1 to
  2 percent of annual energy costs.
• For a 1 million annual use, this could justify
  spending 20,000 to 40,000 to plan and
  administer a five year program.

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Typical Approach
Gather Data Analyze Data Quantify
Opportunities Select Projects Provide
Justification Gain Approval Implement
Projects Project Validation
Communications
Planning
Set Goals
Awareness
Performance Tracking
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Energy Management Plan

• Management Approach
• Facility Profile
• Energy Use Profile
• Best Practices

• Project Prioritization
• Project Management
• Key Performance Indicators
• Continual Improvement

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Putting it Together

• We have entered interesting times.
• Enhancing energy efficiency in existing buildings
  and utility systems is an imperative.
• New building and utility system designs have to
  be profoundly more efficient.
• This is not going to go away. The current dip in
  oil prices is only a blip. We cant punch enough
  holes in the ground to be independent.
• Energy management presents a sound approach to
  deal holistically with the issues.

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Energy Efficiency

• The energy efficiency policies, building and
  appliance codes, incentives, and technology
  improvements in the U.S. since the mid-1970s now
  avoid the use of approximately
• 40 quadrillion Btu/year roughly 40 percent of
  the energy currently consumed.
• The emission of more than 2 billion tons of CO2
  per year.

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Energy Efficiency

• The cost of saving energy is going down while the
  price of energy is going up.
• Efficiency 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 full potential
  for savings.
• Incentives/financing
• EPAct 2005 deductions and tax credits.
• EEPS rebates will encourage efficiency.
• Cultivate Illinois low interest loans.
• ARRA Programs coming.

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Illinois Concerns

• In 2003 annual energy expenditures in Illinois
  were 27.0 billion (Commercial and Industrial
  were 10.7 billion).
• These costs are increasing and will continue to
  increase in the long run.
• The vitality the entire economy and of small
  businesses in Illinois are affected by these
  costs.

In 2006 total energy expenditures were 43.3
billion (Commercial and Industrial 14.5
billion a 36 increase to those sectors).
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Smart Energy Design Assistance Center (SEDAC)

• Sponsored by ILDCEO, Ameren Illinois Utilities
  and ComEd.
• Implemented 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 industrial, municipal, K-12
  schools, community colleges.

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SEDAC Program Results

• Clients assisted (as of December 31, 2008)
• Level 1 1,318
• Level 2 363
• Level 3 168
• Level 4 165
• Completed studies of over 17 million square feet
  with over 43,000 employees.
• An additional 7.5 million sf underway.
• Recommended energy savings of 11.8M.
• Energy impact of 672,675 million Btu (4.3 million
  therms 86,147 MWh) and a demand reduction of
  19.8 MW.

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Program Potential Results

• 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)

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Energy Saving Opportunities

• Potential energy savings ranged from a high of
  100 to a low of 3for existing buildings and
  between 96 and 12 for new designs.
• Data from 107 existing buildings shows
• 46 energy savings (includes renewables).
• 35 energy cost savings.
• Typical savings of 45k per year.
• Data from 30 new building designs shows
• 42 energy savings (includes renewables).
• 40 energy cost savings.
• Typical savings of 60k per year.

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Typical Hospital Energy Usage
In a typical hospital, water heating, space
heating, and lighting account for 6179 percent
of total energy use, depending on the climate
relative to the number of cooling- and heating
degree days. For hospitals each 1 saved in
energy costs equivalent to generating new
revenues of 20.
Source EIA/DOE
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Large versus Small Buildings

• Envelope dominated vs internal gain dominated.
• Smaller Buildings (envelope dominated)
• Envelope very important
• Systems important
• Lighting important
• Plug loads less important
• Larger Buildings (internal gain dominated)
• Envelope less important
• Systems very important
• Lighting very important
• Plug loads important

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Bench Marking
www.energystar.gov

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

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Energy Star Target Finder
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Buildings not in Target Finder
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Energy and Cost Performance Indicators EUI, ECI
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Business Analyzer
www.energyguide.com
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Buildings have 3 Systems

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

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Building Envelope

• Separates the building from the outside.
• Check insulation levels and wall construction
  type.
• Check roof type and insulation levels.
• Consider how well the building is sealed.
• Need to check windows (how many, size, type,
  double pane/storm windows present).

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Gather and Note Information

• Note the envelope data.
• If you dont have drawings
• Sketch footprint.
• Note orientation.
• Site issues (room for geo well field, wind
  turbines, solar arrays).

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Energized Systems

• HVAC type, size, model , condition, age
• 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.
• Usage estimate.
• Lighting
• Types of lamps and fixtures and counts.
• Types of exit lights.
• Types of controls.

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Miscellanious Plug Loads

• What is there
• Computers
• Lamps
• Appliances
• Medical 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?

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Human System

• Number of employees
• Patient loads
• Hours of operation
• Number of PCs
• Lighting levels
• Temperature settings
• Control strategies

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Energy Analyses

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

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Putting it Together

• Needs
• Technically Appropriate
• Biggest Energy Users
• Biggest Energy Costs
• Work from End Use Back to Central Plant.
• Rolling Quick Savings into Long Term Investments.

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The SEDAC Top Energy Measures

• Lighting
• T8 fluorescent lighting with electronic ballasts
  and high-bay T5s
• Existing buildings also need controls.
• New buildings benefits from more efficient
  fixtures, better layouts, motion detectors.
• 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.

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The SEDAC Top ECRMs

• All Building Envelopes (beyond code)
• 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)

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The SEDAC Top ECRMs

• Heating, Ventilating, Air-Conditioning
• Sealed combustion high efficiency boilers and
  furnaces.
• High SEER/EER Air-Conditioning units.
• Geothermal heat pumps.
• Programmable thermostats.
• Ventilation heat recovery systems.
• Demand control ventilation, or at least the
  ability to schedule ventilation rates.

Treat code requirements as minimums not maximums!
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Illinois EEPS

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

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ComEds Program

• Smart Ideas Business Program (www.comedsmartidea
  s.com )
• Standard Cash Incentives
• Lighting
• HVAC (A/C, chillers, VFDs, PTACs, etc)
• Motors
• Refrigeration Systems
• Amount of rebate is fixed.
• Just fill out forms to get funding total.

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ComEd Program

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

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Ameren Illinois Utilities Program

• ActOnEnergy Business Program (www.actonenergy.ne
  t)
• Standard Cash Incentives
• Lighting
• HVAC (A/C, chillers, VFDs, PTACs, etc)
• Motors
• Refrigeration Systems
• Amount of rebate is fixed.
• Just fill out forms to get funding total.

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Custom Cash Incentives

• 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 per facility
per program year combined for the Standard and
Custom Incentives and Custom incentives cannot
exceed 50 of the incremental cost.
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illinoisenergy.org
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DCEO Incentive Levels

• Standard Program
• Set incentives for a standard list of equipment
  upgrades, similar to the utilities.
• Custom Program
• 7 cents/kWh for measures with 1-7 year payback.
• 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

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Key Web Links
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Conclusions

• Hospitals have plenty of opportunities.
• SEDAC program provides a centralized mechanism
  for clients to obtain
• Energy conservation information.
• Energy audits.
• Detailed simulations and analyses.
• Direct implementation assistance.
• Funnel projects to ComEd, Ameren, DCEO.
• Education and training are key components of the
  program.
• The incentives are here or coming.

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Illinois Smart Energy Design Assistance Center

• Web site www.sedac.org
• Contact info_at_sedac.org
• 1-800-214-7954