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Climate Change and Competitive Advantage
With a growing public awareness of the importance of reversing climate change, the pace of regulation and new kinds of markets has increased. In 2006, California passed the nation’s fi rst greenhouse gas (GHG) reduction act in AB32: The California Global Warming Solutions Act of 2006. This law requires the state to enact regulations by the end of 2010 to achieve the maximum technologically feasible reductions in GHGs, including provisions for using market mechanisms. These regulations will likely lead to a cap-and-trade system for emissions in California, which will create opportunities for GHG reduction financing.
Facing these challenges, and because of its vision to “…promote health improvement and create healthy communities,” St. Joseph Health System (SJHS) hired Mazzetti Nash Lipsey Burch (M+NLB) in 2007 to provide a reliable overall assessment of its GHGs, and to get this data reported and certified to the California Climate Action Registry (CCAR).
Operational Savings and HealthcareEEP
In 2006, frustrated by its inability to attract healthcare customers to its incentive programs, Southern California Edison (SCE)—the largest electrical utility in California, serving over13 million people in 50,000 square miles—hired Mazzetti Nash Lipsey Burch (M+NLB) in a unique performance-based contract to create demand for healthcare energy reduction projects through their Healthcare Energy Efficiency Program (HealthcareEEP).
M+NLB's distinctive understanding of the healthcare industry,coupled with our expertise in the energy-consumption patterns and savings opportunities, and topped off by our ability to deliver successful design and construction projects, made us the ideal partner for SCE. The program was so successful in 2007 that SCE elected to extend it two more years, and San Diego Gas & Electric, the neighboring utility, hired M+NLB for a similar effort.
M+NLB is working with SCE and two other marketing and project management consultants to provide a disciplined approach to moving the healthcare facility market.
Kaiser Permanente - Detailed Energy Analysis Yields Significant Energy Savings
In 2001, Kaiser Permanente, the only private U.S. healthcare company that only makes money by keeping people well, faced an increasingly threatening energy market. Kaiser Permanente owns and operates over 60 million square feet of healthcare buildings across the country, and it was on the verge of losing its advantaged energy-pricing contract with Enron.
More, the state of California, which contained the majority of Kaiser Permanente’s building assets, faced gaming by the power industry in the face of deregulation. This gaming, coupled with aging and inadequate distribution of facilities, resulted in rolling blackouts across the state. Kaiser Permanente needed to develop a rational approach to managing the energy portion of its budget.
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