1. Common Energy Mistakes

2. Rick Kmiecik Licensed professional mechanical engineer
Licensed professional architectural /building systems engineer
Director of Strategic Energy Initiatives at The University of Nebraska Medical Center
President of “Optimized Systems Engineering”
Rick Kmiecik
Licensed professional mechanical engineer
Licensed professional architectural / building systems engineer
Full time consulting engineer for many years
Wanted to become a building owner and part of a facilities team
Employee of UNMC
Manager of Engineering but in 2010 took on a challenge and a new role with UNMC
Director of Strategic Energy Initiatives
Long title for director of engineering and energy
President of “Optimized Systems Engineering”

3. What is missing in our industry today
An organization that has the ability to combine good quality designs with energy efficiency, controls knowledge and a strong focus on equipment and systems that are maintainable and simple
An organization that understands both sides of the building systems perspective. The designers perspective and the owner / operators perspective
I am a believer that building efficiency can be achieved using good quality equipment and simple control strategies.
During this new role with UNMC I realized something that was missing in our current engineering community.
An organization that has the ability to combine good quality designs with energy efficiency, controls knowledge and a strong focus on equipment and systems that are maintainable and simple
An organization that understands both sides of the building systems perspective the designers perspective and the owner / operators perspective
I am a believer that building efficiency can be achieved using good quality equipment and simple controls strategies.

4. Optimized Systems Engineering
New and existing building commissioning and retro commissioning
Complete optimization of building systems and operations
Because of what I noticed missing in the industry I began “Optimized Systems Engineering”
We focus on new and existing building commissioning and retro commissioning
Complete optimization of building systems and operations
In today’s buildings having both an engineering background and controls experience is critical to the operation and efficiency of a successful and efficient facility.

5. Energy Consumption in the healthcare industry
Healthcare sector ranks close to the top for total energy consumption among commercial buildings.
According to Energy Star healthcare facilities spend an estimated $8.8 billion a year on energy consumption.
Lets talk about Energy consumption in the healthcare industry
Why do we care about energy when the focus should be healthcare?
Healthcare as a sector ranks close to the top for total energy consumption among commercial buildings.
Due to the nature of healthcare, hopitals with their 24/7 operation, rank as one of the largest consumers of energy.
Healthcare facilities consume more than 10% of the energy used in the United States commercial buildings.
According to Energy Star Healthcare facilities spend an estimated $8.8 billion a year on energy consumption.
As our probably already know interest in conservation has spiked in the healthcare industry lately. With declining reimbursements forcing hospitals to reduce costs in every way possible.

6. Possibilities
Assume we as an industry reduce energy consumption by just 10% we will save approximately $880 million a year in energy consumption.
Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals and $10 for medical offices.
Think of the billions of dollars of equivalent revenue generating you as an industry can do by saving just 10% in energy consumption
What can be done about energy consumption in the healthcare industry?
Assuming if we as an industry reduce energy consumption by just 10% we will save approximately $880 million a year in energy consumption.
Every $1 a non-profit healthcare organization saves on energy is equivalent to generating $20 in new revenues for hospitals and $10 for medical offices.
For profit hospitals, medical offices, and nursing homes can raise their earnings per share by reducing energy costs.
So if the healthcare industry as a whole reduced their energy consumption by as little as 10% that is equivalent to generating billions of dollars of new revenue.
Show those numbers to hospital senior management that believes energy is just a fixed cost of doing business and it is a low priority.

7. Reduce your facilities energy consumption by
Challenge
Reduce your facilities energy consumption by
25%
over the next 5 years.
I challenge every organization out there to reduce their energy consumption by 25% over the next 5 years.
While this challenge is aggressive it is definitely achievable.

8. Top Energy
I would really like to see every organization in attendance try to achieve this goal.
In order to help I have put together a top ten list.

9. Not knowing your facilities energy consumption
All facilities should be metered in some fashion
You cannot fix what you cannot see
Plenty of easy, quick and simple rating systems to serve as a barometer to see where a facilities energy strengths and weaknesses are.
Not knowing where your facility stands from an energy consumption perspective
All facilities should be metered and monitored in some fashion.
You cannot fix what you cannot see.
There are plenty of easy, simple rating systems to serve as a quick barometer to see where a facilities strengths and weaknesses are.
A simple energy audit/study can give an owner an idea of where the facility ranks in comparison to other similar facilities.
This energy audit/study helps the facilities staff to understand where they are at energy wise. Will also inform them of where they should be with their existing systems and where they could be with proper system optimization.

10. Not understanding and taking advantage of your utility rate structure
Never use “averaged” electric rates when calculating savings
Understand your peak demand and what it means
Peak demand can account for 15%-50% of your total electric bill
Manage your peak demand just as much as you manage your consumption
Not understanding and taking advantage of your utility rate structure.
Do you understand how your utility rate structure is set up? You should!
One of the biggest mistakes people make, even some energy auditors is using “averaged” electric rates.
While not every facility is structured the same way most facilities rate structures are set up using a peak demand structure. Most utility bill structures are not only set up to bill you on how much energy you use but how quickly it is used at any one given time, this is known as the “peak demand”
Depending on your use and rate structure the peak demand can account for 15%-50% of your total electrical bill.
It is crucial that a facility manage their peak demand just as much as their consumption. While this is not a simple thing to do with proper education and understanding of your facility combined with adequate metering this can be managed.

11. Not taking advantage of your local utility provider’s rebate and incentive programs
OPPD – Innovative Energy Efficiency Project (IEEP) Incentive Program.
NPPD – Energy Wise Programs.
Not taking advantage of Rebate programs and Incentive programs
Local utility providers are constantly offering various rebate and incentive programs that customers should be taking advantage of.
OPPD – Innovative Energy Efficiency Project (IEEP) Incentive Program
NPPD – Energy Wise Program
Most rebate programs offer financial assistance in getting an energy study of your facility performed.
Once this study is completed and some of the energy projects are implemented the local utility provider will typically provide you with a rebate based on the amount of energy reduction and/or peak demand reduction that your facility experienced.
Ties back with understanding your utility rate sructure and energy and consumption versus peak demand. Working with someone that understands the difference and how to reduce both is critical for the rebate portion of the program.
If you do not properly understand this a facility can reduce energy consumption but not peak demand and not qualify for a rebate.
Typically energy reduction and peak demand reduction go hand in hand but that is not necessarily the case if the facility staff does not understand how their utility rate structure is set up or how their equipment operates. Education of staff is essential.

12. UNMC Annual Electric Usage (kwh’s)
UNMC 20% Reduction
Let me show you an example of how effective these rebate programs can be.
I was fortunate enough to be part of a team that reduced energy consumption at the University of Nebraska Medical Center by 20% over the past 3 years.
We not only reduced our energy consumption by 20% but also reduced our peak demand by 20% in 2012 versus 2011.
This reduction was achieved despite the fact that July 2012 was the hottest month in the U.S. since record keeping began in 1895.
UNMC’s peak demand in 2012 was 6MW below their 2011 level.
In 2010 UNMC’s goal was to reduce energy consumption and demand by 25% over a 5 year period ( )
UNMC’s annual electric usage has been reduced by over 20% since they set their energy objectives in 2010.

13. Energy Efficiencies
While utilizing the OPPD IEEP program UNMC received an incentive check from OPPD for just under $1.8 million.

14. Not Educating your staff
Most energy mistakes are not done intentionally but instead are done due to the lack of education
Most individuals when given a choice want to do the correct and efficient thing and it is up us to make sure they know what the correct thing is
When implementing energy improvement projects staff “buy-in” is essential to the success of the project.
Not educating your staff to truly understand their equipment and systems.
A lot of energy mistakes being made out there are not done intentionally but instead are done due to the lack of education.
I have found that most individuals when given a choice want to do the correct, efficient thing but don’t always know what that is.
When trying to implement energy improvement projects staff “buy-in” is essential to the project’s success. Make them part of the team, they are not the cause of the original problem but instead part of the new solution. Their input and assistance is essential.
This education of the staff needs to be done on all levels of the facilities equipment. From the boxes serving the spaces all the way back to the major equipment.
Along with the understanding of the equipment they need to have an understanding and education on the systems controls. You should not rely solely on a controls contractor for everything related to controls.
The staff needs to be educated and understand how something works and why.
Not just if a patient is hot or cold I turn this valve or open this damper but what are they doing when they turn a valve or open a damper?
What are they doing when they go into a controls system and put something in operator?
How does this affect the rest of the system?
Does this effect energy efficiency?
Is this a component that has went bad and needs to be fixed or is it something more?
I cannot stress enough the importance of educating the staff, the entire staff. I think it is imperative that everyone have an understanding of how their systems work and how they should be operating at various conditions.
This knowledge will help issues be detected early when systems begin to operate outside the range of where they should be operating. This allows them to be proactive instead of reactive.

15. Not willing to spend money in order to save money
In every facility there is some low hanging fruit some “quick wins”, do NOT focus solely on these.
Use “quick win” money as an opportunity to tackle the real challenges of reducing energy dependency.
Combine “quick win” projects with longer return projects.
Not willing to spend money in order to save money
Typically facilities did not become inefficient overnight and will not become efficient overnight.
In every facility there is some “low hanging fruit” some “quick wins” but it is important that you do not focus entirely on quick wins.
Use “quick win” money as an opportunity to tackle the real challenges of reducing energy dependency.
The best bang for your buck is going to be combining “quick wins” with longer return projects. By doing this you can meet your financial goals as a combined solution yet exceed the lasting impact of quick financial win projects.

16. Mistaking Technology as the Solution
Use technology to compliment your system
The more complex a building becomes the more of a chance the owner is taking that the facility over time will become less efficient and less effective.
Avoid “black box” technologies. If you don’t understand it and cannot maintain it, do you really want to depend on it?
Mistaking technology as the solution
Don’t get me wrong I am an engineer and I love new technologies but I much prefer solutions as opposed to just technologies.
Technology should be used as a compliment to your system but in no way should be counter-productive to the facilities systems and objectives.
There are many “great ideas” and cutting edge equipment options available but the real challenge is to identify those solutions that will have the greatest impact on the facility
These impact solutions are successful not only if they can be effectively implemented but even more importantly they must also be effectively maintained.
I believe efficiency can be achieved using good equipment and fairly simple control strategies.
The more complex a building a building becomes the more of a chance the owner is taking that the facility over time will become less efficient and less effective, not necessarily due to insufficient equipment design or installation but simply because the owners and operators of the facility do not completely understand the system they have in place.
Ask yourself these questions:
Does the technology you implemented work in isolation or will it integrate with my system as a whole?
Do I understand this technology?
Can I maintain this technology?
If the answer to either of these questions is no then in my opinion this technology is not for you.
Ties back to educating your staff. They need to know and understand the system. If someone proposes to use a “black box” on your system that will make it efficient make sure this black box is something you understand, you agree with and you can maintain. What happens if this black box stops working one day most likely when it is 100 degrees outside, can you deal with that?

17. Lack of preventive maintenance
“An ounce of prevention is worth a pound of cure.”
Are your coils clean?
Are strainers being cleaned?
Are belts tight?
Is everything aligned and balanced?
Are your steam traps regularly tested and maintained?
Lack of preventive maintenance
“An ounce of prevention is worth a pound of cure”
Are coils clean?
Are strainers being cleaned? Not just blown down but once a year completely removed and cleaned.
Are belts tight?
Is everything properly aligned and balanced?
Are your steam traps regularly tested and maintained?
Are my current systems operating correctly?
Have I properly identified and repaired all of my system deficiencies?
When I have an issue do I band aid equipment or do I properly repair and/or replace things as necessary?

18. Lack of Dynamic Resets on Controls
The old days of picking a set point based on worst case system settings determined at the time of balancing need to end.
With today’s technologies we have the ability to see information and how systems are actually operating and performing and adjust accordingly.
Lack of dynamic resets on controls
With a proper controls system in place
Need to adjust building system operations dynamically against actual building conditions.
The old days of picking a set point based on worst case system settings determined at the time of system balancing need to end.
While operating this way is easy on the operators it is not efficient.
With today’s technologies we have the ability to see how systems are operating and adjust accordingly.
The system reacts differently on days when it is 95 degrees and humid outside versus when it is 70 degrees and relatively dry outside.
The system reacts differently when a hospital census is full versus half of the facility being unoccupied.
Since conditions are constantly changing and the systems reactions are constantly changing why shouldn’t the system set points change as well?
They should! This is referred to as dynamic resets.

19. Low Delta T Syndrome
Do you know what your chilled water delta T is for your facility?
Is it consistent year round?
Buildings need to operate at the maximum delta T that the equipment will allow.
Maximum delta T will increase chiller efficiency, reduce fan and pump horsepower consumed and increase equipment life.
Low Delta T syndrome
What is my delta T on my current chilled water system? What should it be? What is the delta T during the peak summer months and what is it during the cooler summer months? Answers to all these questions help identify the current system issues.
Buildings need to operate with the maximum delta T that their equipment will allow.
Your chillers will operate more efficiently and your pumps and fans will use much less horsepower, all translating to increased efficiency and increased equipment life.

20. Lack of Proper System Controls
You cannot be efficient or effective if you cannot properly control your system.
Need to be able to see the entire system to see how it reacts to different conditions.
Need to see and react to Occupied and Unoccupied settings
Lack of proper system controls
Front end automation is important
It is difficult to be efficient or effective if you cannot control your system.
Need to be able to make adjustments and see how those adjustments affect the system.
Knowing and reacting to occupied and unoccupied settings in all spaces, including patient rooms, is critical to building efficiency.
There are different ways to achieve and control this but you need to make sure you find and use one that is effective and allows you to take full advantage of the potential energy savings.
The cheapest energy possible is the energy that you don’t use.
Starting to implement unoccupied settings in OR rooms whenever possible.
Operating rooms are one of the biggest consumers of energy in a hospital and are typically unoccupied a large portion of time
Make sure you understand what you are doing before beginning this.
Remember patient care, comfort and safety are still the number one priority.

22. #10 Lack of proper System Controls #9 Low Delta T Syndrome #8 Lack of Dynamic Resets on System Controls #7 Lack of Proper Preventive Maintenance #6 Mistaking Technology as the Solution #5 Not Willing to Spend Money in order to save Money
#10- Lack of proper system controls
#9- Low Delta T syndrome
#8- Lack of dynamic resets on system controls
#7- Not performing proper preventive maintenance
#6- Mistaking technology as the solution
#5- Not willing to spend money in order to save money

23. #4 Not Educating your Staff #3 Not Taking Advantage of Utility Rebate and Incentive Programs #2 Not Understanding and Taking Advantage of Your Rate Structure #1 Not Knowing Where Your Facility is From an Energy Perspective
#4- Not educating your staff so they truly know and understand your facility
#3- Not taking advantage of Utility rebate programs and Incentive Programs
#2- Not understanding and taking advantage of your utility rate structure
#1- Not knowing where you are from an energy consumption perspective

24. OSE Recommended Energy Savings Process
Perform an Energy Study / Audit of the Facility
Review the Study with the Facilities Staff
Develop a Facility Energy Master Plan
Go Through the Entire Facilities Equipment
Develop System Deficiencies List
“Clean-up” System programming and deficiencies
“Optimize” Existing Equipment and Controls
Finalize Standards, Graphics
Project Closeout – EDUCATE the Staff
Recommended Energy Savings Process (Used by Optimized Systems Engineering)
Perform an energy study / audit for the facility
Team up with the local utility provider to take advantage of any rebate and/or incentive programs.
Review the energy study with the facilities staff. Their input during the study and their buy-in to the process needs to be solidified at this stage of the project in order for it to be a success.
Identify potential energy projects, paybacks, ROI’s and develop a facility energy reduction goal and master plan. ( I recommend a 25% energy reduction over 5 years)
Go through the entire facility and investigate the current equipment status and operational settings.
Go through the entire existing controls system and review each piece of equipment and its current operational settings.
This review needs to be completed on all equipment from the room level box controllers, to the main air handling equipment and pumps all the back to and including the chillers and boilers.
Develop a deficiencies list based on issues found while reviewing the current equipment and system settings.
Work with the existing staff to go through and address every item on the deficiencies list and make the necessary repairs, replacements and changes.
Educate the staff on why these items are deficiencies, discuss how they got there and how these deficiencies affect the overall operation and efficiency of the system.
Begin to “clean-up” and modify programming and/or operation of systems to make the overall facility operate more efficiently and effectively.
Address operational and physical issues that the staff may have “worked around” in the past.
Typical Examples
Units tripping out on freeze-stat
Units ramping up too fast on start-up
Economizer Cycles set up strictly on dry-bulb temperature as opposed to enthalpy based economizer strategies.
“Optimize” the equipment and controls systems
Incorporate dynamic reset strategies for air handling unit fan speed control
Incorporate dynamic reset strategies for supply temperature set points
Incorporate dynamic reset strategies for all pump speed control
Incorporate dynamic reset strategies for all heat exchanger and chiller supply temperature set points
Finalize and clean up the system
Assist with basic system graphic clean up and naming convention in coordination with the owner’s standards
Help the owner develop standards if they do not currently exist.
Modify building system scheduling utilizing owner and occupant’s input.
Complete project and turnover project closeout manual
Provide any necessary training for staff
Answer any questions and resolve any staff issues
Educate the staff to be able to maintain the system effectively and efficiently
Make sure facility receives any rebates and incentives owed them per the local utility providers current programs.

25. 25% Energy Savings in Next 5 Years
25% Energy savings over the next five years.
Make it your facilities goal!

26. Questions? Rick Kmiecik Optimized-Engineering.com
Optimized-Engineering.com