The First Facility Management Blog

Last Friday (7/25/08), the Occupational Safety and Health Administration (OSHA) issued citations proposing penalties totaling $8,777,500 against the Imperial Sugar Co. and its two affiliates alleging violations at their plants in Port Wentworth, GA and Gramercy, LA. OSHA initiated the inspections following an explosion and fire on Feb. 7, 2008, at the Port Wentworth refinery that claimed the lives of 13 employees and hospitalized 40 others. Three employees still remain hospitalized. The proposed penalties against Imperial Sugar represent the third largest fine in the history of OSHA.

OSHA’s inspections of both facilities found that there were large accumulations of combustible sugar dust in workrooms, on electrical motors, and on other equipment. The investigation also determined that officials at the company were well aware of these conditions, but they took no action reasonably directed at reducing the obvious hazards.

“I am outraged that this company would show a complete disregard for its employees’ safety by knowingly placing them in an extremely dangerous work environment,” said Assistant Secretary of Labor for Occupational Safety and Health Edwin G. Foulke Jr. He added, “What is even worse is that a month after the devastating catastrophe in Port Wentworth that claimed the lives of 13 people, this company had done little to ensure abatement of the combustible dust hazards at its other plant. If OSHA investigators had not inspected and posted an imminent danger notice regarding areas at the second plant, the same thing could have happened again.”

OSHA proposed $5,062,000 in penalties for safety violations at the Port Wentworth refinery and $3,715,500 for safety violations found at the Gramercy refinery. The citations include 108 instances of willful violations related to the combustible dust hazard, including the failure to clean up dust and not using appropriate equipment or safeguards where combustible dust is present. OSHA also has issued 10 citations for other willful violations, 100 citations for serious violations, and four citations for other than serious safety and health violations.

The company has 15 business days to contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission. OSHA’s Savannah, GA, area office staff inspected the Port Wentworth site, while the agency’s Baton Rouge, LA, area office staff inspected the Gramercy, LA, location.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing a safe and healthy workplace for their employees. OSHA’s role is to promote the safety and health of America’s working men and women by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual process improvement in workplace safety and health.

Launched in 2002, the program of the U.S. Environmental Protection Agency (EPA) is a voluntary strategy that works with companies to measure greenhouse gas emissions and to set aggressive long-term emissions reduction goals. The partners represent a range of industries in all 50 states.

Last week, EPA welcomed 51 new partners as Climate Leaders to breaking the 200 partner mark. In addition, eight companies took the next step in the partnership by announcing new greenhouse gas (GHG) reductions goals. Together, EPA’s Climate Leaders represent more than 10% of the U.S. Gross Domestic Product and have pledged to prevent estimated GHG emissions equivalent to nine million cars annually.

“EPA’s Climate Leader partners are proving that businesses don’t need to break the bank to do what’s good for the environment,” said EPA administrator Stephen L. Johnson. “These leading companies are reducing their climate footprints in cost-effective ways.”

The eight companies that are announcing aggressive new greenhouse gas emissions reductions goals are: Baxter International Inc., Deerfield, IL; Burt’s Bees Inc., Durham, NC; Campbell Soup Co., Camden, NJ; Cherokee Investment Partners, Raleigh, NC; Cisco Systems Inc., San Jose, CA; Deere & Co., Moline, IL; Millipore Corp., Billerica, MA; and Petaluma Poultry, Petaluma, CA.

The 51 companies that are joining Climate Leaders as new partners are:
AGM USA, Tempe, AZ;
American Packaging Corp., Rochester, NY;
Ash Grove Cement Co., Overland Park, KS;
Berry Plastics Corp., Evansville, IN;
Bluebonnet Electric Co-op., Bastrop, TX;
Boise Paper, Boise, ID;
Capital One Financial Corp., Richmond, VA;
Clements Environmental, Los Angeles, CA;
Coca-Cola Enterprises, Atlanta, GA;
Evelyn Hill Inc., New York, NY;
Freescale Semiconductor Inc., Austin, TX;
FXFOWLE Architects, PC, New York, NY;
Grand Canyon North Rim, LLC, Page, AZ;
Greenstar North America, Houston, TX;
GXS, Gaithersburg, MD;
Harbec Plastics, Ontario, NY;
Harrah’s Entertainment, Las Vegas, NV;
HydroPoint Data Systems Inc., Petaluma, CA;
LSI Corp., Milpitas, CA;
Monadnock Paper Mills Inc., Bennington, NH;
MOSAIC, Cheverly, MD;
MWH Global Inc., Broomfield, CO;
Nicholas Earth Printing, LLC, Houston, TX;
One Boston Place LLC, Boston, MA;
PHH Arval, Sparks, MD;
Pizza Fusion, Fort Lauderdale, FL;
Potomac-Hudson Engineering Inc., Readfield, ME;
PrintFast, LLC, Roselle Park, NJ;
Progressive Environmental & Safety, Overland Park, KS;
Prudential Services Limited, Lansing, MI;
Publix Super Markets Inc., Lakeland, FL;
Pure & Gentle Soap, Seguin, TX;
Puronics Inc., Livermore, CA;
Ram Offset, White City, OR;
Rizco Design, Manasquan, NJ;
Rockwell Automation, Milwaukee, WI;
Schering-Plough Corp., Kenilworth, NJ;
Scout Real Estate Capital, LLC, Nantucket, MA;
Sid Richardson Carbon and Energy Co., Fort Worth, TX;
SKF USA Inc., Norristown, PA;
Smithfield Foods Inc., Smithfield, VA;
Teradata Corp., Miamisburg, OH;
The Boeing Co., Chicago, IL;
The Clorox Co., Oakland, CA;
The Mosaic Co., Mulberry, FL;
The Tidewater Group, York, ME;
True Manufacturing Co. Inc., O’Fallon, MO;
Wafertech L.L.C., Camas, WA;
Wells Fargo, San Francisco, CA;
Western States Envelope Co., Butler, WI;
Wilton Armetale, Mount Joy, PA

High energy costs, an unprecedented level of government mandates for green building, heightened demand for green construction, and improvements and better pricing for environmentally sustainable materials have prompted many building owners, architects, and facility managers to consider conservation driven updates to save cash. Sec. 179D of the IRS Code provides a significant deduction for the cost of energy efficient improvements to commercial property. This deduction could help mitigate the average 3% to 7% cost difference in building green.

If your company owns or leases commercial buildings and you have installed or retrofitted the property to be more energy efficient, you may be eligible for a deduction for part or all of the costs associated with the installation or retrofit. In other words, instead of capitalizing and recovering through depreciation over 27.5 years or 39 years this allows for potential immediate expensing of costs.

The maximum deduction is $1.80 per square foot of building floor area that qualifies under IRC Sec. 179D measured against the reference building. The deduction is allowed for prior tax years, including 2006 and 2007, and can include multiple taxpayers. Multiple taxpayers are limited to allocating the $1.80 among the taxpayers.

And if your building does not qualify for the full deduction, it could qualify for a partial deduction. If your building does not meet the 50% energy savings, it could still qualify for 60¢ per square foot deduction if certified to reduce energy costs by at least 16.66%.

If you have constructed a new commercial building or reconstructed an existing commercial building and placed the building into service after December 31, 2005 or will place it into service by January 1, 2009 you may be eligible for a deduction. If your building has been or is in the process of becoming LEED Gold or Platinum-certified, you’re nearly assured the deduction. And if you haven’t already taken advantage of the deduction, your return can be amended for up to three years.

To qualify for a full or partial deduction, the energy efficient commercial building property must meet the following criteria:

• The building must be located in the United States.
• Installation as part of interior lighting systems, HVAC, and hot water systems or the building envelope (insulation, exterior doors, exterior windows, roofing material).
• Certified that installation will reduce total annual energy and power costs by 50% or more as compared to Std. 90.1-2001 American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Reference Building.
• Energy and power consumption calculation based on IRS-approved software programs that compare the subject facility to an ASHRAE Reference Building.
• The property must be certified by an IRS-qualified professional engineer or contractor licensed in the same jurisdiction as the proposed building.

The person or organization that makes the expenditures for construction is generally the recipient of the allowed tax deductions. This is usually the facility owner, but for some HVAC or lighting efficiency projects, it could be the occupant. For government owned structures, the building or system designer may take the deduction.

If the property is a federal, state, or local government or a political subdivision, the owner of the property may allocate the section 179D deduction to the person primarily responsible for designing the property. For example, a designer may include the architect, engineer, contractor, environmental consultant or energy services provider.

Before a taxpayer can claim the section deduction, the taxpayer must obtain a certification (not to be confused with LEED certification) with respect to the property. The certification must be provided by a qualified individual and satisfy the requirements of section 179D(c)(1).

The qualified individual must be properly licensed as a professional engineer or contractor in the jurisdiction in which the building is located, not be “related” to the taxpayer taking the deduction (as defined by the IRS), and represent to the taxpayer in writing that he or she has the requisite qualifications to provide the certification.

The certifier must also use IRS-qualified computer software. Software must be on a list of products approved by the U.S. Department of Energy. SourceCorp can provide your Green Building Tax Deduction Certification/Analysis.

Many people don’t feel particularly funny these days, which is one of the reasons the FacilityBlog Friday Funny tries so hard (sometimes too hard) to give its visitors a reason to keep coming back to work week after week (even if it’s just to check out the Friday Funny on FacilityBlog).

Today’s offering comes from our career development partner, CareerBuilder. Make sure to check out TFM Online the next time you’re hunting for a new job or searching to fill a position.

Building on its chimp-themed TV ads, CareerBuilder has a free service, cleverly called Monk-e-mail. The e-mail marketing site MonkeyBrains explains, “you get to choose a chimp, dress him up, pick a voice, then make him say anything you want. Then, you can e-mail it to your friends.”

The concept was launched a few years ago, just before CareerBuilder’s Super Bowl campaign hit the airwaves. Since I’m not a big football fan, I’m just stumbling across it now. It’s silly and it’s viral, making it a perfect pick for our Friday Funny. Contact me at schwartz@groupc.com if you’d like me to send a Monk-e-mail sample!

On July 10, Club4 Climate, an environmental group founded by British real estate mogul Andrew Charalambous, opened what it touts as the world’s first eco-club. The London party spot features a dance floor designed to harness the energy of dancers. This is based on a principle called piezoelectricity. This approach uses crystals or other materials that, when compressed, give off a small amount of voltage. So as people dance on the spring-lined floor, the crystals underneath acquire a charge and generate a current that can charge nearby batteries.

Charalambous claims that the dance floor energy will generate about 60% of the energy the club consumes. The remainder of energy consumption is being culled from solar panels and wind turbines. Other sustainable strategies include using rainwater to flush toilets.

Dubbed “Dr. Earth” Charalambous offers the Club4Climate mission statement:
It’s our vision that you will club for the climate. The profits from the club go to Friends of the Earth.

Other locations that Club4Climate is looking to open eco-clubs are New York City, Cape Town, and Rio de Janeiro.

Fire is a danger that can affect entire communities. For example, each year in the U.S., more than 3,000 people die as a result of fire. To combat its destructive force, fire protection engineers use their acquired skills and the latest technology.

Fire Protection Engineer Tony Caro studied industrial engineering at New Mexico State University before switching to an education in fire protection engineering. “I realized I wasn’t as interested in industrial engineering as I was in the fire service. I also knew that I wanted to do more than just fight fires while still providing a service to society,” he says. “Fire protection engineering was the right fit.” Caro now works for the City of Denver’s Fire Prevention Bureau and Investigation Division.

Using science and technology, fire protection engineers perform a wide range of roles that include:

• Evaluating buildings to pinpoint the risks of fires and the means to prevent them;
• Reviewing building design documents for fire departments, fire marshal offices, and/or code enforcement agencies to assure compliance with the applicable building and fire regulations;
• Designing building systems that: detect fires, control the spread of fires, control the movement of smoke, alert people to danger, and provide a safe means for building occupants to exit a building;
• Conducting fire safety research on consumer products and construction materials;
• Investigating fires to discover how they spread, why protective measures failed, and how those measures could have been designed more effectively.

“Fire protection engineers are in high demand and short supply,” said Chris Jelenewicz, a fire protection engineer with the Society of Fire Protection Engineers (SFPE). In a recent SFPE survey of the largest employers of fire protection engineers, an overwhelming majority currently has difficulty recruiting enough qualified engineers. “Those surveyed believe this imbalance in demand will continue at least five years into the future,” said Jelenewicz.

These employers cover a wide range of industries, including private consulting firms, large corporations, fire departments, local building code officials, insurance firms, federal, state and local government agencies, and architectural and design firms. Frequently, fire protection engineers assist architects, builders, and fire departments in the design and construction of new facilities.

A fire protection engineer uses science and engineering principles to protect people, homes, workplaces, the economy, and the environment from the devastating effects of fires. Fire protection engineers analyze how buildings are used, how fires start and grow, and how fires affect people and property. They use the latest technologies to design systems to control fires, alert people to danger, and provide means for escape. Fire protection engineers also work closely with other professionals, including engineers of other disciplines, architects, state and local building officials, and local fire departments to build fire safe communities.

For more information about a career in fire protection engineering, click this link.

The company has acquired PWI Energy, an independent global provider of energy and greenhouse gas management services, based in Philadelphia, PA. Terms of the acquisition were not disclosed.

The acquisition is part of Johnson Controls Inc.’s ongoing strategy to deepen and broaden the company’s leadership in energy and greenhouse gas management solutions providing global organizations access to a comprehensive suite of energy and sustainability-related offerings. In North America, Johnson Controls can further expand the enterprise-wide energy management solutions provided to customers in vertical market segments, such as government, education, industrial manufacturing and many other industries.

PWI Energy currently serves global clients with an energy management program that integrates energy supply management, energy efficiency services, and energy information, and greenhouse gas (GHG) emissions management. The company has developed an information technology platform which organizes all the information needed to create a comprehensive, global management system for energy and greenhouse gases.

PWI Energy will integrate into Johnson Controls’ Global Workplace Solutions business, which is a recognized leader in managing the real estate portfolios of global organizations with multiple facilities.

“With the acquisition of PWI we are now even better positioned to help global organizations measure, manage and reduce their energy costs, as well as their overall Greenhouse Gas Footprint,” said Iain Campbell, vice president and general manager, North American Service and Global WorkPlace Solutions, Johnson Controls. “In this era of rising energy prices and increasing concern over the environmental impact of greenhouse gas emissions, our enhanced solutions can positively impact climate change while decreasing organizations’ vulnerability to a volatile market.”

“Johnson Controls was quick to recognize PWI Energy’s ability to bring state-of-the-art energy management technology and services to the table,” said Joseph Turk, president and principal, PWI Energy. “We look forward to seeing our solutions integrated into the Johnson Controls family and to bring greater benefits to customers the world over.”

PWI will retain offices in Philadelphia, and will take on the Johnson Controls name within a few months.

Nanotechnology will significantly change virtually every facet of the way we live. The next president has the opportunity to shape these changes and to ensure that nanotechnology’s benefits will be maximized and its risks identified and controlled.

A new report by former EPA official J. Clarence (Terry) Davies lays out a clear roadmap for the next presidential administration and describes the immediate and longer term steps necessary to deal with the current shortcomings of nanotechnology oversight.

To read the full report, click this link:
pen13.pdf

In the ongoing quest to reduce, reuse, and recycle, one aspiring furniture designer is expressing her artistic talent in the form of furniture made from factory waste—and nothing else. No screws, bolts—just wood waste.

Amy Hunting, a London, UK-based designer and illustrator, has introduced The Patchwork Collection—lamps, chairs, and storage/book boxes made out of wood waste and off cuts produced in the Danish factories.

These descriptions and images come from the artist’s Web site:
The magazine box (picture, left) can be moved around and reconfigured for multiple uses and appearances.

These lamps (pictured below, right) were cut out of a large solid block of wood, made up of small off cuts. The pendant lamps were then cut out of the block until 12 lamps revealed themselves and all the wood had been cut out. The 12 lamps can be stacked inside each other for easy transport. They require no fitting and can be hung on any bare lamp bulb through the top.

Crestron Electronics, Inc. closed the books on its 2007-08 fiscal year recently, posting its 20th consecutive year of double digit growth. The maker of commercial and residential control and automation systems finished the year with a record breaking month, with sales 50% above the previous month. The nearly 20% revenue growth for 2007-08 brings Crestron total annual sales to $400 million.

“Despite an increasingly competitive marketplace, challenging economy, and rising costs, we continue to grow—creating jobs and helping fuel the economy,” said Randy Klein, executive vice president of Crestron Electronics. “Our industry is strong, and the future looks brighter than ever.”

In fact, Crestron, a NJ-based company, situated in the shadow of the Manhattan skyline, continues to manufacture all of its 1,000 high tech products locally. The company is hiring at a record pace and added three buildings to its local infrastructure in the last 12 months. Additionally, Crestron has opened more than a dozen new worldwide sales and support offices throughout the U.S., Canada, Europe, Asia, and the Middle East.

Expanding its worldwide headquarters campus in Rockleigh, NJ, Crestron bought a new administrative building from Volvo and built a 100,000 square foot research center. The company also added a massive distribution center in Carlstadt, NJ, from which orders are shipped to every continent around the globe.

The research center houses more than 350 full time hardware and software engineers who are innovating technology and developing new products. Crestron introduced 70 new products in June, coinciding with the largest commercial audio/video trade show in Las Vegas where the company exhibited and was a sponsor.

“Many companies grow by acquisition; we grow through innovation,” explains Klein. “We add value and create opportunities. We’re focused on growing our industry and the economy, not investor portfolios. Crestron is a private company so we have that freedom, and with that freedom we feel we have a great responsibility to support our employees and partners.”

The Consumer Electronics Association (CEA) is celebrating the dedication, innovation, and success of Crestron. The CEA is launching its national grass roots bus tour, recognizing American industry and manufacturing leadership. The bus, carrying press, government officials, and business leaders, will visit companies that continue to operate domestically and propel the national economy.

“Crestron is our premier stop on the tour,” says Matthew Shaffer, CEA International Trade. “They represent the very best in American innovation and ingenuity. When other companies are going off shore or moving for real estate or tax benefits, Crestron remains loyal to its employees and its roots.”