Alban CAT Power Systems Healthcare

Seminar

INTRODUCTION

Sales Specialist • Application Assistance • Equipment Management • On-Site Supervision/ Commissioning Assistance

INTRODUCTION (con’t)

Equipment/Services • Turnkey Solutions • Financing/ Leasing • Energy Services • Combined Heat & Power • Gensets (Gas & Diesel) • Switchgear, ATS • UPS

Dan Chisholm Sr. Emergency Power Consultant/Designer

Founder of MGI Consulting, Inc. an emergency power consulting firm – Dan serves as a member of the Technical Committee responsible for NFPA 110,

Emergency and Standby Power Systems, and the Electrical Section of NFPA 99, Health Care Facilities Code,

while also serving as a primary emergency power consultant to the U.S. Army Medical Department

(AMEDD), Department of Defense and FEMA.

EMERGENCY POWER COMMAND CENTER (EPCC)

- IDEAS -

Dan Chisholm, Sr. MGI Advisory Services

Dan.Chisholm@MGI-EPSS.Com 407.421.7189

EPSS RELIABILITY PLANS

Plan A – Risk Assessment for compliance with the most stringent of Regulations, Codes and NFPA Standards (Only 4.5% of all hospitals are totally compliant with plan A) Plan B – Redundancy of all EPSS components (elimination of single points of failure – and there are many), Plan C – Failure of all outside services - N+2 Mind Set (Added redundancy).(Fuel – Parts – Communication – Water) Portable Sets; Multiple Vendors; Tankage

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PUNISHMENT OF THE INNOCENT

Consumer Reports in October, 2014 stated:

“Emergency Generators Don’t Always Work When They Are Needed Most” “The good news is that sustained generator failures are rare. The American Society for Healthcare Engineering recently surveyed 1,558 members about utility failures from July 1, 2011, to June 30, 2014. The 258 respondents reported an average of one power outage per year. During power failures, the emergency electrical system was successful 98.65 percent of the time.”

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PUNISHMENT OF THE INNOCENT

The AHA published in Fast Facts on US Hospitals (last and latest update in January 2013) that 5,724 “Registered” hospitals, as defined by the AHA, existed in the US. 98.65% = 5,647 01.35% = 77 Will the 98.65% be punished similar to, or worse than, how they were treated after Katrina?

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SANDY APPEARS TO HAVE CREATED AN OPPORTUNITY FOR NEW STANDARDS

Daniel R. Levinson, Inspector General, Department of Health and Human Services (HHS) published a paper entitled: HOSPITAL EMERGENCY PREPAREDNESS AND RESPONSE DURING SUPERSTORM SANDY (September 2014, OEI-06-13-00260)

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HHS “We surveyed 174 Medicare-certified hospitals located in declared disaster areas in Connecticut, New Jersey, and New York during Superstorm Sandy.” “Prior to the storm, most hospitals received emergency-related deficiency citations from hospital surveyors”

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DECLARED DISASTER AREAS

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HHS REPORT

“Utility systems found deficient, such as routine testing of generators. Surveyors cited 47 hospitals for emergency deficiencies that related to their utility systems, a prominent challenge reported by hospitals during Sandy. Many of these deficiencies involved infrequent testing or incorrect testing of the hospital backup generator Other deficiencies related to infrequent testing or lack of emergency lighting systems. As noted earlier, 69 hospitals reported challenges with their electrical utilities that either required use of emergency power or placed them at risk of requiring its use. “

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HHS REPORT

“Widespread power outages forced hospitals to rely on backup generators and use alternative procedures when delivering care to patients. Of hospitals in declared disaster areas, 69 reported experiencing electrical utility outages, and for more than two-thirds of these hospitals (28 of 69), backup generators were not a reliable power source.”

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WHAT HHS RECOMMENDS

“The experiences of hospitals during Superstorm Sandy and the deficiencies cited prior to the storm reveal gaps in emergency planning and execution that might be applicable to hospitals nationwide. Given that insufficient community-wide coordination among affected entities was a common thread through the challenges identified by hospital administrators, we recommend that the Office of the Assistant Secretary for Preparedness and Response (ASPR) continue to promote Federal, State, and community collaboration in major disasters. We also recommend that the Centers for Medicare & Medicaid Services (CMS) examine existing policies and provide guidance regarding flexibility for reimbursement under disaster conditions. ASPR and CMS concurred with the recommendations.”

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WE MAY NOT HAVE SEEN ANYTHING YET (PREDICTIONS) Unattainable Fuel Storage Requirements Unjustified Annual Testing Beyond the Code Requirements Grandfathering Neutered Documentation of Collaborative Efforts with

“Others” Separation of Branches

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PLAN A - EPSS RISK ASSESSMENT

An EPSS risk analysis should be performed by a “qualified individual” who has experience in designing EPSS and witnessing their operation under long term stressful conditions. The risk analysis should consist of: 1. A dress rehearsal of the failure of every sub-component of the

EPSS, 2. Short term failure of all outside services, 3. A “reacceptance” test of all pre-alarms signals, remote

annunciator panels, E-Stops, by pass solenoids, ad infinitum

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PLAN B – REDUNDANCY

Generators Connection Panels UPS Fuel Systems – Multiple pumps fed from ??? Manual Controls – By pass solenoids, etc. Starting Systems By-Pass Isolation ATS Spare parts

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PLAN C – LOSS OF CELL TOWER, FUEL DEPOT AND WATER PLANTS Cell Towers – How much fuel in tanks and how are they

maintaining? How much are you paying them for service?

Fuel Depots – Do they have a generator and how are they maintaining it?

Water plant – Ditto Local Gas Stations – Agreements to capture fuel and

methods to retrieve? Purchasing and Leasing of Tanker?

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RWJ STORY

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EMERGENCY POWER COMMAND CENTER

Purpose: The EPCC® has been designed to provide the facility engineer with immediate access to all Emergency Power Supply System (EPSS) information needed for system review, planning, and emergency actions. It also provides an easy and convenient system for providing surveyors with all required compliance documentation. (See Handout)

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HHS REPORT

“Hospitals struggled to secure sufficient fuel supply, which affected all aspects of hospital operations, including staff availability. For 29 hospitals, fuel shortage was a challenge that substantially affected patient care. Fuel needs included running backup generators, operating ambulances, ensuring delivery of supplies, and securing sufficient staffing levels. Although gasoline was often available, gas stations did not have backup generators to pump the gasoline when the main power went out.”

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THE UNKNOWN

Sealed Batteries – CMS balking on answer – Add $19M Triennial Tests – Inclusion of ATS (Joint won’t answer emails on

their Note 5) Annunciator Panels – Older sets? Distribution of Branches – Which edition of NEC and NFPA

99? Ten second requirements – Proof? Annual vs. Triennial 4 hour tests – Add $34M

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ADOPTION SUGGESTION (A DRAFT)

“If any new or edited material appearing in a new edition of any NFPA standard will enhance reliability and/or improve patient safety, a healthcare facility is granted the option of adopting the material regardless of the NFPA edition(s) currently being followed/used by the CMS or any deemed status organization and will not be penalized for its adoption.”

Push Back

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REMINDER - EPSS RELIABILITY PLANS

Plan A – Risk Assessment for compliance with the most stringent of Regulations, Codes and NFPA Standards (Only 4.5% of all hospitals are totally compliant with plan A) Plan B – Redundancy of all EPSS components (elimination of single points of failure – and there are many), Plan C – Failure of all outside services - N+2 Mind Set (Added redundancy).(Fuel – Parts – Communication – Water) Portable Sets; Multiple Vendors; Tankage

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Russell (Rusty) C. Steele Jr. Product Support Manager

Rusty has over 22 years of operations management and business development experience predominantly in the capital equipment sales and support sectors. Rusty’s 15 years’ experience with

Caterpillar has come from time spent at two CAT Dealerships covering a number of product categories including Marine, Industrial and Electric Power. 12 of those 15 years have been spent focused on the

Electric Power Systems sector supporting Healthcare, Governmental and Data Center customers in the Mid-Atlantic.

Rusty’s experience prior to Caterpillar included industrial engineering in the Manufacturing sector as well as time in the service as a US Marine.

Rusty currently leads the Power Systems Product Support Team for Alban, directing and overseeing their mission of support and partnership to Alban’s Power Systems customers.

Power Systems Product Support

Alban Electric Power Group

Product Support The Healthcare mission is dynamic and

unforgiving.

The reliability, readiness and performance of your backup power systems are the critical common

denominator in almost every aspect of your mission.

Your product support partner should demonstrate a clear understanding of that mission and commitment to you in everything they do.

Product Support

The Alban Product Support Mission:

To deliver world class Product Support and Service excellence, ensuring maximum system readiness and performance, whenever and however our customers

need it.

Product Support How Does Alban Accomplish The Mission?

Support Representatives Parts Service Rental Broad Equipment Scope Support Capabilities Support Solutions

Product Support Your Support Representative

The Support Representative exists to establish a business

relationship with you, get to know your specific needs & challenges and provide tailored product support advice, solutions and proposals to help meet your operational &

performance goals over the life of the product. We have 7 Electric Power support representatives across our territory

• 4 x Product Support Representatives (PSR) in the field. • 3 x Customer Support Representatives (CSR) inside.

Product Support

Product Support

Product Support Electric Power Support Infrastructure

Parts, Service & Rental Groups 3 dedicated Power Systems Sales, Parts, Service and Rental Branches 61 dedicated Power Systems Field Techs 30 management, parts, technical support, rental support and operations support staff Parts Availability

• 18 Branch Stores (15 with parts warehouses) • 20 Parts Drop Boxes • On-Line Parts ordering & research • CAT Logistics

• Rental Fleet based out of Elkridge & Manassas • Largest local power rental fleet in the region with 339 units in inventory (127 Generators)

• Also transformers, UPS, temp control, pumps, compressors, fuel services, etc. • Regional CAT Rental Hub

• 300 locations nationwide • 1,500 technicians • 3,000,000 kW of rental generators

Product Support

Product Support

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2011 2012 2013 2014 2015 2016P 2017P 2018P

Field Service Technician Count

Power Rental

Diesel Only

Electric Power & Advanced Systems

Product Support Equipment We Cover

Diesel & Gaseous Fueled Generator Sets up to 4mW Emissions Control Systems – SCR, DOC, DPF Switchgear Systems – Distribution, Paralleling, Utility Automatic Transfer Switches (ATS)

• Open transition, closed transition, isolation bypass

Uninterruptable Power Sources (UPS) • Static / double conversion & kinetic flywheel

And More…..

Product Support Capabilities

Emergency Services – rapid response available 24 / 7 / 365. Troubleshooting, Diagnostic and Repair Services. Engine / Package Overhauls Technical Analysis Inspections Scheduled Maintenance – Monthly, Quarterly, Semi-annual, Annual, Triennial Standard & Advanced System Testing – offered on all types of equipment.

• Load bank, fluid analysis, megger, emissions gas, thermo-graphic, relay testing, breaker testing, advanced battery, insulation, vibration, etc.

Upgrade, Retrofit & Automation Solutions – offered on generator, ATS & switchgear systems. • Generator control panels, voltage regulators, remote monitoring, SG controls, relays, touch screens, emissions,

breakers, etc.

Dynamic Tuning Services UPS Battery Change Out Services Diesel Fuel Polishing services

Product Support Solutions

Customer Support Agreements – Ensuring the readiness, performance and endurance of your system. • Mixed Fleet Coverage – all makes • From routine inspections and scheduled maintenance up to mission critical protection plans which bring in predictive testing & analysis.

Extended Service Coverage (warranty) – Protecting your maintenance budget from the unexpected. • Up to 5 years of coverage at a time • Base warranty coverage PLUS:

• Rental coverage up to $40K, • Rigging coverage up to $15K • Overtime • Emergency freight charges on parts

• New Equipment ESC – available for purchase within the first two years of life. • Advantage ESC – Aged/Used Gen-set package coverage up to 25 years old – may require an inspection • Overhaul Protection Coverage (OPC) – covers any new or Reman part replaced as part of an overhaul on any CAT engine

regardless of age.

Product Support Financing – Fix it now and pay for it later.

Product Support

QUESTIONS?

Michael (Mike) W. Kendall. Director of Environmental Services, Alban Tractor Company, Inc.

Mr. Kendall has over 32 years of regulatory and consulting experience in various aspects of Clean Air Act compliance including preparation and review of pre-construction and Title V operating permit

applications and performance of numerous compliance audits on commercial and industrial facilities. Mr. Kendall’s experience includes power generating facilities, Department of Defense installations, data

centers, healthcare facilities, solid waste incinerators, and surface coating operations including automotive assembly, appliance manufacturing, graphic arts, and miscellaneous metal coating

operations. Mr. Kendall experience also includes providing technical support including permitting, control technology evaluation, toxic air emissions, regulatory impact analyses, and compliance audits.

Mr. Kendall worked with the Maryland Department of the Environment’s Air and Radiation Management Administration for over ten years and is quite knowledgeable with the department’s

policies and inner workings. Mr. Kendall currently leads the Environmental Services group for Alban, providing environmental

compliance support to Alban’s operations as well as for Alban’s power generation customers.

Environmental Regulatory Considerations for Emergency Power Systems

Alban CAT Power Systems

Agenda

• State Air Pollution Control Regulations • USEPA Air Pollution Control Regulations • Other Environmental Regulations Impacting

Emergency Power Systems

STATE AIR POLLUTION CONTROL REGULATIONS

Air Permitting Requirements State Permit to Construct Threshold

Delaware • Emergency generators greater than 450 kW • Distributed generators of any size

District of Columbia • All generators must be permitted, regardless of size or purpose

Maryland • Generators greater than 500 bhp (373 kW) • Electric generating units rated greater than 2 MW will require a

Certificate of Public Convenience and Necessity waiver from the Maryland Public Service Commission prior to obtaining an air quality permit to construct from MDE

Virginia • Engines powering electrical generators with an aggregate rated electrical power output of 1,675 hp (1,125 kW) or greater using diesel fuel

• Engines powering electrical generators with an aggregate rated electrical power output of 910 hp (611 kW) or greater using gasoline

• All non-emergency units • All gaseous fuel-fired engines powering electrical generators

Other State Air Pollution Control Regulations Fuel Requirements – Maximum Sulfur Content

• NSPS IIII – 0.05% maximum in diesel fuel for new generators (0.0015% after October 1, 2010)

• All states follow NSPS IIII sulfur content limits Visible Emissions Requirements

• DE - 20% opacity limit • DC - 0% opacity limit • MD - 0% opacity limit • VA - 5-20% opacity limits dependent upon equipment age

States may restrict generator preventive maintenance and testing operations on ozone days (i.e., Code Red days) Odor and nuisance control regulations Emission standards and permitting regulations vary by state

USEPA AIR POLLUTION CONTROL REGULATIONS

NSPS AND NESHAP REGULATIONS

• NSPS 40 CFR Part 60, Subpart IIII Applicable to compression ignition engines

• NSPS 40 CFR Part 60, Subpart JJJJ Applicable to spark ignition engines

• NESHAP 40 CFR Part 63, Subpart ZZZZ Controls hazardous air pollutants (HAPs) from new

and existing RICE

OTHER REGULATORY CONSIDERATIONS

Other Regulatory Considerations

Fugitive dust, erosion, and sediment control requirements during construction Storm water pollution prevention requirements Fuel storage tank permitting and registration requirements - vary by state Spill Prevention, Control and Countermeasure (SPCC) Regulations and Plans

ADDITIONAL ITEMS TO CONSIDER

Additional Items to Consider Facility name, location, points of contact Generator specifications, not-to-exceed emissions data, Tier certifications, Certificate of Conformity Generator and engine manufacturer, model number, serial number, kW, displacement, bhp, manufacture date, pollution control equipment information (SCR?) Purpose (i.e., emergency, demand response, peak/load shaving) One-line drawing, information on ATS, and interconnection agreement (for MD) Existing units/tanks (same information as above) Tank information – capacity, AST or UST, quantity Stack test required? Is facility already permitted? Does it have existing equipment? Evaluate other potential requirements, such as exhaust re-entrainment, other emission sources, etc.

Questions? Mike Kendall Director of Environmental Services (443) 477-3660 mkendall@albancat.com Terry Darton Senior Environmental Consultant (443) 761-2426 tdarton@albancat.com

Questions?