NORTHUMBERLAND HILLS HOSPITAL STRATEGIC ENERGY MANAGEMENT PLAN FOR 2014 TO 2019
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1 NORTHUMBERLAND HILLS HOSPITAL STRATEGIC ENERGY MANAGEMENT PLAN FOR 2014 TO 2019 TABLE OF CONTENTS Introduction Page 2 Breakdown of NHH Energy Usage Page 2 Energy Management Vision Page 3 Guiding Principles for Strategic Energy Page 3 Management at Northumberland Hills Hospital Business Case for Strategic Energy Page 4 Management Planned Projects Page 4 Energy Management Goals Page 5 Page 1 of 6
2 Introduction The purpose of Northumberland Hills Hospital s Strategic Energy Management Plan (SEMP) is to promote good stewardship of our environment and community resources. In keeping with our commitment of responsible energy management, NHHs energy management program will reduce operating costs and enable us to provide service to a greater number of persons in the community and to be compliant with the Ontario Green Energy Act,specifically Regulation 397/11 Energy Conservation and Demand Management Plans. Utility and energy related costs are a significant part of the Hospital s overall operating costs Utility costs for 2012/2013 fiscal year were $1,049,246 Total operating and maintenance costs (less utilities) for the same period were $1,055,778. Breakdown of NHH Energy Usage 2011 Energy Audit Conducted by VIP Energy June 2012 With 74% of the energy used in the hospital directly related to heating, ventilation and air conditioning (HVAC), NHH has spent considerable time and energy in reviewing, modifying and enhancing these systems to be more energy efficient. Energy management as an integral part of NHH s business decisions, as we work to achieve an estimated target of: 3% reduction in energy use over five years $30,000 annually in cost avoidance of anticipated future costs Previous activity associated with managing these costs includes the following: Installation and operation of the heat recovery chiller, Change from steam to an alternate humidification system (Reverse Osmosis), Installation and programming of variable frequency drives (VFD), Page 2 of 6
3 Commissioning and operation of night setback/occupancy programming, Re-commissioning of HVAC systems, Re-commissioning and re-balancing of Air Handling Units, Installation of LED lights for parking lot and building exterior, Implementation of a Resource Awareness Program, Corporate commitment to gas and electrical contracts with the hospital Group Purchasing Organization (GPO), Participation in Energy and Waste audits and acting upon recommendations, Involvement of front-line and senior management staff (NHH Green Team) in the oversight of energy savings initiatives. To further strengthen and obtain full value from energy management activities, NHH will fully integrate energy management into its business decision-making, policies and operating procedures. Proactive management of energy related costs and risks in this manner will provide a significant economic return to the organization and will support other key organizational objectives. Energy Management Vision Leaders in environmental stewardship. Guiding Principles for Strategic Energy Management at Northumberland Hills Hospital Taking A Strategic Approach: NHH will continue to improve its energy-related performance by actively managing energy costs, by implementing opportunities as they are identified and by strategically developing plans for the future. Internalizing energy management into our organization s every-day decision-making, policies, and operating procedures will help assure substantial and long-lasting reductions in energy use throughout Northumberland Hills Hospital. Supporting Mission-Critical Goals: Strategic energy management will directly support NHH mission-critical goals of caring for the environment and the community; optimizing the healing and working environment; improving the hospital s financial position by reducing unnecessary energy costs and optimizing the capacity of existing energy systems to meet current and expanding operational needs. The impacts of Northumberland Hills Hospital s energy management efforts on those goals will be tracked wherever possible and reported on a quarterly basis to the Senior Management Team. Pursuing Long-Term Change to Core Business Practices: The strategic approach implemented is the consistent incorporation of energy management into our organization s practices and decision making. Change in energy-related business practice will cover all applications of energy management such as new construction and major renovations, existing facility operations and upgrades, and the economic analysis and procurement practices underlying these practices. Fostering Organizational Commitment and Involvement: Executive and organizational commitment and involvement is critical to successful strategic energy management. Senior management at NHH works with Engineering and other key staff to ensure that adequate organizational support and resources are provided to maximize the benefits of energy Page 3 of 6
4 management to NHH. Energy management will continue to be integrated into the strategic planning and capital budgeting processes. Solid Economic Returns: Capital energy projects are expected to yield solid economic returns and meet NHH return on investment and additional criteria requirements applied through the hospital s capital budgeting process. NHH will consistently apply financial analysis methods to all capital projects. Using Available Resources and Assistance: National, regional, and local sources of strategic, technical, and financial assistance is helping NHH achieve the energy management goals. Some of these resources include utility suppliers, specialty grants and funding, and private partnerships. Business Case for Strategic Energy Management Below are the central business arguments for NHH s pursuit of strategic energy management. Strengthened Community Leadership and Environmental Stewardship Energy management is a visible, public commitment to the community and environment. Through aggressive energy management, the hospital can provide leadership in promoting sustainable communities, efficient business practices, and environmental stewardship Enhanced Healing and Working Environment Our facility design provides proper air exchange to meet current codes, large windows and court yards in the center of the building. This provides our staff and patients with sunshine and daylight which contributes to a healing and improved working environment. Improved Financial Health and Operating Cost Reduction Strategic energy management helps to reduce operating costs allowing the hospital to redirect its limited resources to patient care. Optimization of Capacity to Meet Current and Expanding Operational Needs Energy efficiency optimizes inefficient or poorly designed and operated equipment/systems so wasted energy system capacity can be reclaimed for current and expanding operational needs. With 74% of the energy costs related to the operation of the HVAC, NHH has concentrated on addressing the inefficiencies in the systems. As a result of past work the hospital s current annual energy cost is equal to the actual 2006 cost. The identified future projects will help NHH become more efficient. The hospital will continue to look at operations and ensure that the systems continue to operate as efficiently as possible. Planned Projects To achieve an energy efficient hospital, energy related projects include the conversion of constant air volume (CAV) delivery to a variable air volume (VAV) system and the implementation of linkless fuel controls on the heating boilers. NHH will invest up to $185,000 in energy-related capital and operating improvements to ensure success with these projects. Additional energy management considerations such as the Resource Awareness Program have been integrated into our culture. By integrating additional business practices, policies, procedures, and decision-making processes, NHH s energy-related costs can be better managed. Page 4 of 6
5 Energy Management Goals SEMP Approval, Resources to Implement Senior management approval and resources. Support from key staff (financial management, purchasing/procurement, construction, building operations, etc.). Creation of mechanisms/processes to make resources available. Clarification and communication of staff roles and responsibilities, performance goals, and energy management reporting. Implement Financial Practices and Decision Making Processes Money spent to achieve energy efficiency is viewed as an investment, not a cost. Financial decision makers consistently use life cycle cost analysis (LCCA) on all new construction, major renovations, and equipment replacements. Decisions about energy management investments will be part of NHH high-level, long range process of budgeting for capital and operations. Establish Purchasing Specifications for Energy Efficient Equipment and Services Establish and consistently use purchasing specifications that minimize life-cycle costs for energy efficient equipment and services. Establish efficiency specifications for standard equipment routinely replaced. Establish efficiency guidelines that apply LCCA for custom equipment purchases (e.g. chillers). Establish efficiency standards for design and construction, and for building operations and maintenance services. Implement Enhanced Design & Construction (D&C) Practices Implement improved new construction practices in all projects over $500,000 that specify early team collaboration and integrated design (ID). Integrated design required for funding. RFPs, contract terms & conditions, & fee structures will support ID. Apply LCCA and financial hurdle rates described above to design decisions. Apply established purchasing procedures and specifications. Include incentives and tax credits wherever available. Educate all owner s project managers or construction managers and contractors on integrated design and their respective roles in master planning pre-design, design, construction, testing, commissioning, and monitoring. Set and meet clear energy performance targets for new buildings; measure and improve over time. Establish baseline for measuring performance goals Set target for each building Measure performance and improve over time. Specify commissioning as a standard procedure. Retain the services of an independent third-party commissioning agent. 100 percent of fundamental building systems and elements will be designed, installed, and calibrated to operate as designed. Design team, commissioning agent, and building operators will work closely throughout the design process and occupancy to ensure good transition. Page 5 of 6
6 Implement Cost-Effective Facility Upgrades Implement equipment and system upgrades where justified by life cycle costing analysis. Expand the use of qualified service providers as needed. Develop standard RFP documents, contract terms, and reporting standards. Actively Manage Energy Commodity Minimize utility costs and exposure to market risks. Utility costs include natural gas, electricity, water, and sewer. Participate in the energy/utility regulatory process. Monitor, Track, and Reward Progress Track progress on SEMP Track energy reductions [quarterly][annually]. Reward staff for successes. Page 6 of 6
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