50001 Ready: Tools For Accelerating Pete Langlois Adoption .

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50001 Ready: Tools for AcceleratingAdoption of ISO 50001 in the U.S.Pete Langlois50001 Ready Program ManagerJune 2017U.S. Department of EnergyAdvanced Manufacturing Office

U.S. Energy Management Practices - Current to FutureCurrent State:Project by ProjectDesired Future State:ISO 50001Current adoptionlevelsIncreasingly commonplace: 46% of U.S.manufacturing facilities have set goals forimproving energy efficiencyMinimal: 0.1% of U.S. manufacturing facilities haveadopted ISO 50001ApproachProject-basedSystem-wideScope and energysystemsEquipment and physical systems.Utility energy systems: Boilers, etc.Equipment, systems, personnel, processes.Include key processes and unit operations.Management buyinAd hoc or noneExecutive decision-maker involvementTop management commitmentResilience to staffturnoverDependent on energy champion orindividualsCross-organizational involvement.Integrated in core organizational and business practice.Self-sustainingNo – based on individual projects, individualdependentYes – Plan-Do-Check-Act management cycle,individual-independentOutcomesReliant on continuous streams of capital tosupport EE upgrades and sustainedimprovementEstablishes operational control procedures andorganizational structure designed for continualimprovementFocus areasAd hoc and reactionary, typically utilitysupport energy systemsStructured analysis and prioritization of significantenergy uses (usually key processes)Energy in designAd hoc or noneEstablished process for energy consideration in designfor new facilities, systems, equipment and processes

DOE Role in Advancing Systematic Energy ManagementDOE RoleSystematicISO 50001energymanagementapproachWorking with Industry to Goal at Scale“Project-byproject” energymanagementapproachCurrent situationReduce Cost1% annualimprovementCapital intensiveimprovement: 1 to5 year paybackEnergy savings notsustainable-Tools and training streamline processPrioritization of energy opportunitiesEnterprise approach enables scaleMinimize Risk-Better data analyticsCorporate and management commitmentMake the business caseInform and Educate-Training for various staffDevelop “profession” around systematicEnMS and ISO 50001 implementation5% annualimprovement10 to 20% low costimprovement: 1 year paybackContinual energyperformanceimprovement

ISO 50001 OverviewWhat it is: A global standard around managing energy based onexpertise from 56 countriesA management model for continual improvement ofenergy performance Manages energy efficiency, energy security, energyuse and energy consumption Similar to quality (ISO 9001) and environmental(ISO 14001) management system standardsWhat it does:A managementsystem is: Say what you do Do what you say Prove it Improve it Builds institutional knowledge throughout an organization Engages all staff (executive, facility, procurement, communications, etc.), not just facility management Creates the market pull and business culture for industry to invest in advanced energy efficiencytechnologies Reduces business risk associated with unpredictable energy costs and supply Establishes an ingrained culture and practice around energy performance Enables more cost-effective and rapid investment in advanced energy efficient technologies

ISO 50001: Initial Performance DataThe most effective way for U.S. manufacturing facilities and buildings to achieve their fullestpotential in energy efficiency is to adopt programs & policies that improve energy performanceon a continuing basis DOE’s Superior Energy Performance (SEP) program demonstrated that ISO 50001 can achieve: Up to 30% improvement in energy performance over three years12% average reduction in energy costs within 15 months of implementationBroad implementation of ISO 50001in the U.S. will significantly improveenergy efficiency and reduce GHGin U.S. facilities and buildingsSavings at certified facilities greater on average compared to non-certified facilities: 3M: 62% greater over 3 years: 18 ISO 50001 sites across 7 countries; 2 US SEP, 1 KoreaSEP certified; 257 non-ISO 50001 Schneider Electric: 65% greater over 4 years: 20 ISO 50001 in North America; 16 US SEPcertified; 30 non-ISO 50001

ISO 50001 is Being Used in Commercial & IndustrialThe ISO 50001 framework notonly builds upon our energymanagement systems, but alsohelp us drive consistency andperformance improvementsacross our locations.Steve Sacco,Schneider Electric Vice President,Safety, Environment & Real EstateISO 50001 in America 3M Aflac American Axle &Manufacturing BAE Systems BMW Bosch Rexroth Bridgestone Cargill Chrysler Coca-Cola Cummins Curtiss-Wright EMD Detroit Diesel Google HarbecHilton WorldwideIBMIntertape PolymerLand O’LakesMack TrucksMarriott InternationalMedImmuneNewGoldNissan North AmericaSamsungSchneider ElectricTitan AmericaVolkswagenVolvoISO 50001 helped us nearly doubleour ENERGY STAR PortfolioManager score.Hilton Worldwide has become the first hospitality company tohave hotels certified to the DOE’s Superior EnergyPerformance. Photos courtesy of Hilton.Alfred Blackmar,Aflac Vice President,Facilities Support

DOE’s Dual Approach to EnMS/ISO 50001 AdoptionDOE builds the market to prepare companies to progress towards ISO 50001 conformance. DOE hasdeveloped an energy management continuum that begins with market-driven business culture andculminates in verified savings.50001 Ready: Recognition for ISO 50001conformance using guidance in DOE’s50001 Ready Navigator toolISO 50001CertificationSuperior Energy Performance (SEP):Recognition for ISO 50001 certification and3rd party verification of energy performanceimprovementsDOE RoleProviding tools and the market on-rampProviding verified results and outcomesMarketPurposeDOE’s 50001 Ready self-attestation programprepares organizations for certificationDOE’s SEP program fills the gap in the market forverified energy performance improvements fromISO 50001 implementationM&V Protocol50001 Ready M&V ProtocolSEP M&V ProtocolTools50001 Ready NavigatorEnPI Lite50001 Ready NavigatorEnergy Performance Indicator (EnPI) ToolPath toAchievement1. Complete 25 steps in 50001 Ready Navigator2. Self-attest to completion3. Report energy performance1. ISO 50001 certification2. 3rd party SEP Performance Verification audit

50001 Ready OverviewThe 50001 Ready program offers a no-cost way to receive recognition forestablishing a business practice around the management of energy. The program isnot a certification program, and does not require any third-party audits or verification.Participating in the 50001 Ready program provides your facility(ies) with the tools toimplement and maintain a structured, continual improvement-based EnMSKey Actions in a 50001 Ready EnMSKey Benefits of a 50001 Ready EnMS Set an Energy Policy Have management commitmentManage risk associated with energyperformance Empower an energy team Reduce energy-related costs Identify where energy is used Increase cost competitiveness Create plans to improve energy use Management approval of plansDedicate more resources to growing staffand expanding production Track progress and reassess energyaction plans Demonstrate corporate leadershipenergy.gov/50001ready

What 50001 Ready Is and Is Not50001 Ready Is Not A standalone DOE program 50001 Ready is designed to be branded &customized by the utility, state, etc. DOE willing to co-brand 50001 Readyrecognition 50001 Ready Is A promoter of consistent energy management principles and energyperformance improvement Provides guidance based on the ISO 50001 standard used acrossthe globe Consistent output across sectors, geography, service territoriesDOE is not ‘claiming’ savingsA program that does not require formal certificationDesigned to replace current Utility SEM programsor offerings 50001 Ready can be used to jump start intoSEM or integrated into advanced SEMprogramRequires minimal effort to integrate withexisting SEM programsA certification program 50001 Ready builds infrastructure towardcertification (if desired)Provides recognition for self-declaredconformance to the principles of ISO 50001 Self-declared performance to ready a facility for ISO 50001/SEPcertificationA set of resources available for rebranding/repurposing The program and its tools may be ‘owned’ by service companies,utilities, states, and other implementer organizations.The provider of user-friendly tools to establish an energy managementsystem Should not require ‘certified’ professionals to implement; but mayleverage existing program support staff or CP EnMS professionals

3 Steps to DOE RecognitionComplete the 25 tasks in the 50001 Ready NavigatorFollow the guidance and track your progress through four topic areas (Planning, EnergyReview, Continual Improvement, and System Management) in the 50001 ReadyNavigator. All guidance in the Navigator will be maintained by DOE to ensure alignmentwith ISO 50001.Self-attest to their completionHave your energy management team lead and a senior management representativesign a simple self-attestation form to confirm the establishment of an energymanagement system once all tasks in the 50001 Ready Navigator have beencompleted.Measure and improve energy performance over timeUse EnPI Lite, EPA’s ENERGY STAR Portfolio Manager, or Better Buildings, BetterPlants annual reports to measure and report energy performance.

50001 Ready RecognitionSTEP 1Implement ISO 50001 principles / cultureUse the 50001 Ready Navigator Online Tool The Navigator walks you through the process ofimplementing an energy management system andprepares you to be 50001 ReadySTEP 2Analyze energy performanceAdopt Valid Tool to Present Energy Performance DOE offers the EnPI Lite tool for 50001 Ready EPA’s Portfolio Manager can also be used Other tools can be approved by DOEDOE or Utilityrecognizes50001 ReadyachievementSTEP 3Request 50001 Ready recognitionSubmit information to DOE for Review Self-attestation of completion of Navigator, executedby team leader and executive Submit energy performance data50001 Ready: Live in May 2017 109 users in 50001 Ready Navigator Interest from several utilities and largeindustrials, early adopter and supply chainpilots underway

50001 Ready Navigator Online tool, with simple, step-by-step approach to ISO 50001 implementation Guidance broken into straight forward sections, including: Getting It Done– what specifically needs to be accomplished Task Overview– how does this task connect with ISO50001 Full Guidance – comprehensive guidance about the task Transition Tips– from other ISO management systems or ENERGY STAR Track and update task progress Form teams and assign tasks to team members Download guidance Create multiple projects Access over 100 related resources Get DOE 50001 Ready Recognition!

Designed for Varied Audiences50001 Ready Navigator isdesigned for a range of technicalabilities Staff ranging from engineers toenergy managers tosustainability champions Facilities with varying levels offamiliarity with energymanagementBuilds on existing expertise withISO 14001, ISO 9001, andENERGY STAR Guidelines forEnergy Management Specific tooltips enable transitionbetween related standards andprogramsenergy.gov/50001ready

Collaborative, Team-Based Approach Assign tasks to team membersand track progress. Tabs for action: Tips for users withISO 9001 andISO 14001expertiseGetting It Done provides links toworksheets, templates, andchecklists to complete this taskView tooltips from relatedstandards and programs, e.g.,ISO 14001, ISO 9001, andENERGY STARCreate notes to track progressand coordinate team membersLinks toresourcesAdd links to fileson your shareddriveSave meetingdates or recorddecisions

Enterprise-Level TrackingTrack facility-level performance across different locations.

Co-branding and Customization50001 Ready Navigator has beendeveloped on open-source standardsto enable co-branding andcustomization Issue 50001 Ready recognition as apartner organization Add Tooltips, Resources and FAQsspecific to your organizational orregulatory requirements Track overall process of ongoingprojects

EnPI Lite CalculatorEnPI Lite: Navigator’s companion tool forfacility-level energy performance Enter or upload energy use data andaccount for mitigating factors (e.g.,production levels, occupancy changes,testing duration, weather) Top-down regression analysis calculatesenergy change from baseline year Accepts input from DOE Energy Footprinttool and ENERGY STAR PortfolioManager The EnPI Lite output file is one option forreporting energy performance for DOErecognitionEnPI Lite Results

Submit for Recognition in Navigator50001 Ready recognition from DOE requires: Self-attestation to completion of all 25 tasks in the 50001 Ready Navigator Proof of energy performance calculations through EnPI Lite or related energy performancecalculatorsProjects can be submitted for recognition directly through the 50001 Ready NavigatorClick to requestDOE recognitionDate of DOErecognition

Progressing from 50001 Ready to CertificationSelf-attestation prepares organizations forcertification options:ISO 50001 certification: Complete 50001 Ready and:1. Complete a full internal audit cycle.2. Full corrective and preventive action cycles.3. Full management review cycle.Certification to ISO 50001 and SEPAll of the above, plus meet SEP requirements anddemonstrate energy performance improvement:4. Top-down regression analysis5. Bottom-up sanity check

Partnerships to Support AdoptionDOE is fostering public-private partnerships to advance the technical readiness of ISO 50001with industry, and create a higher level of industry practice in energy managementPartnerRoleDOEProvides tools, training resources, and recognitionUS manufacturing and commercial buildingsectorsUses resourcesVerification and certification bodiesCertifies facilities to ISO or SEPImplements ISO 50001-based EnMSThird parties, including: Utilities and regulators Federal/States/Regional/Localgovernment agencies Establish utility programs with technical assessment and financialincentives Establish federal/state tax incentives Standards and accreditation bodies (ISO,ANSI/ANAB) Implement state/local recognition and awards programs NGOs and carbon reporting programs Provide workforce training Consultants and energy servicecompanies Establish self-direct energy efficiency programs Large OEMs and supply chain leaders Procure to product sustainability standard specifications and programs Issue market-based recognition or rankings

50001 Ready SummaryKey Actions in 50001 ReadyKey Takeaways on 50001 Ready Set an Energy Policy Designed to be DIY Have management commitment No cost for resources Empower an energy team ‘Light Duty’ Turbo-Tax structure Identify where energy is used Can support customers Create plans to improve energy use Allows for internal and external experts Management approval of plans Consistent practice across facilities Track progress and reassess energy action plans Recognition by U.S. Dept. of EnergyVisit energy.gov/50001readyContact Pete Langloispete.langlois@ee.doe.gov202-586-0984

conformance to the principles of ISO 50001. 50001 Ready Is A promoter of consistent energy management principles and energy performance improvement Provides guidance based on the ISO 50001 standard used across the globe Consistent output across sectors, geography, service territor

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