california industrial sem cycle 2 design guide

PREPARED FOR: PACIFIC GAS AND ELECTRIC, SAN DIEGO GAS AND ELECTRIC, SOUTHERN CALIFORNIA EDISON, AND SOUTHERN CALIFORNIA GAS COMPANY

California Industrial SEM Cycle 2 Design Guide

VERSION 1.0 PREPARED BY: SERGIO DIAS CONSULTING


Sergio Dias Consulting Version 1.0 2

Table of Contents 1 OVERVIEW .......................................................................................................................................... 3

1.1 INTRODUCTION .................................................................................................................... 3 1.2 PURPOSE OF THIS DOCUMENT .................................................................................................... 3 1.3 CYCLE 2 OBJECTIVES............................................................................................................... 3

2 CYCLE 2 DESIGN OVERVIEW .............................................................................................................. 6

2.1 CYCLE 2 STRUCTURE .............................................................................................................. 6 2.2 CYCLE 2 KEY CONSIDERATIONS ................................................................................................. 9

2.2.1 Energy Management System .............................................................................................................. 9 2.2.2 Role of Implementation Contractor .................................................................................................... 11 2.2.3 Integrated Demand Side Management................................................................................................. 12 2.2.4 Milestone incentives ...................................................................................................................... 14 2.2.5 Energy Management Information Systems ............................................................................................ 14

3 CYCLE 2 DESIGN ................................................................................................................................ 17

3.1 PHASE 1: SAVING ENERGY NOW AND IN THE FUTURE ....................................................................... 17 3.1.1 Phase 1 Learning Goals .................................................................................................................. 19 3.1.2 Phase 1 Site Specific Activities and Support .......................................................................................... 22 3.1.3 Participant Outcomes .................................................................................................................... 26 3.1.4 Program Deliverables ..................................................................................................................... 26 3.1.5 Participant Deliverables ................................................................................................................. 27

3.2 PHASE 2: ENHANCING OUR ABILITY TO SAVE ENERGY ...................................................................... 28 3.2.1 Phase 2 Learning Goals .................................................................................................................. 30 3.2.2 Phase 2 Site Specific: Activities and Support ......................................................................................... 32 3.2.3 Participant Outcomes .................................................................................................................... 36 3.2.4 Program Deliverables ..................................................................................................................... 36 3.2.5 Participant Deliverables ................................................................................................................. 37

3.3 PHASE 3: ENHANCING OUR ENERGY MANAGEMENT SYSTEM ............................................................... 38 3.3.1 Phase 3 Learning Goals .................................................................................................................. 40 3.3.2 Phase 3 Site Specific Activities and Support .......................................................................................... 41 3.3.3 Participant Outcomes .................................................................................................................... 45 3.3.4 Program Deliverables ..................................................................................................................... 46 3.3.5 Participant Deliverables ................................................................................................................. 46

3.4 PHASE 4: CONTINUOUS IMPROVEMENT AND NEXT STEPS ................................................................. 47 3.4.1 Phase 4 Learning Goals .................................................................................................................. 49 3.4.2 Phase 4 Site Specific Activities and Support .......................................................................................... 50 3.4.3 Participant Outcomes .................................................................................................................... 54 3.4.4 Program Deliverables ..................................................................................................................... 54 3.4.5 Participant Deliverables ................................................................................................................. 55

4 ANNEX ............................................................................................................................................... 56

4.1 ANNEX A- SAMPLE PARTICIPANT PHASE SUMMARIES ....................................................................... 56 4.2 ANNEX B- CYCLE 2 RECOMMENDED TASK AND ACTION IMPLEMENTATION SUMMARY ............................... 60



1 Overview

1.1 Introduction California’s Investor-Owned Utilities (IOUs), San Diego Gas and Electric (SDG&E), Pacific Gas and Electric Company (PG&E), Southern California Gas Company (SCG), and Southern California Edison (SCE) are currently administering industrial Strategic Energy Management (SEM) programs as part of their respective energy efficiency program portfolios. These SEM programs are regulated by the Energy Division (ED) of the California Public Utilities Commission (CPUC).

The programs were originally launched using a common design guide for the first two-year engagement, with an envisioned six total years of engagement divided into three two-year engagements1 or “cycles.” The initial California Industrial SEM Design Guide focused on the first of these three cycles. However, at that time there was no explicit design created to meet the needs of the following two cycles.

This document focuses on the second cycle. At this time, there is no design created for the third cycle.

Figure 1: SEM Program Three Cycle Concept

1.2 Purpose of this document This document provides the design for third and fourth years, or Cycle 2, for the California Industrial SEM programs. It is intended to be used by SEM programs working with industrial customers that have followed the initial California SEM Design Guide in years one and two, or Cycle 1. This document assumes that the customers, implementation teams, and program administrators are familiar with the concepts introduced in that initial guide. This guide is meant to be used with the California Industrial SEM M&V Guide version 2.0 or later. Although changes to the Cycle 1 design are outside of the scope of this document, multiple recommendations are made on possible changes to Cycle 1 to support the objectives of Cycle 2.

1.3 Cycle 2 Objectives In Cycle 1, the SEM program introduced industrial customers to a systematic approach to saving energy. This included an introduction to energy business practices and energy management systems and technical support in identifying and implementing energy performance improvement opportunities. The Cycle 2 program design builds on this foundation, helping customers continue to implement energy performance improvement opportunities, supporting them as they begin to develop and internalize their energy business practices in the development of an energy management system, and helping them better understand and integrate IDSM concepts and opportunities.

1 California Industrial SEM Design Guide Version 1.0, 2017, Sergio Dias Consulting

Cycle 1 :Years 1 and 2

Initial SEM Design Guide, 2017

Cycle 2: Years 3 and 4

Cycle 2 Design Guide, 2020

Cycle 3: Years 5 and 6

Cycle 3 Design Guide-not yet developed



From a participating customer’s perspective, the objectives for Cycle 2 are:

1. Continue to implement energy performance improvement opportunities2 and save energy. 2. Develop a systematic approach to managing energy that can continue with targeted program support.

From the program perspective, the objectives are:

1. To cost-effectively acquire energy savings while meeting the above customer objectives. 2. To meet regulatory requirements and direction. 3. To have a high level of customer satisfaction.

An ideal implementation of the design, along with an ideal participant, would result in a participant that at the end of Cycle 2:

1. Has identified and implemented cost-effective energy performance improvement opportunities to meet their energy performance targets.

2. Understands and has prioritized IDSM opportunities as part of their overall energy performance improvement opportunities, and knows how and when to implement those opportunities.

3. Has an energy team that understands, owns, and leads their energy business practices with targeted program support.

4. Has developed and implemented energy business practices to continuously manage energy and to continuously improve and track energy performance.

The key differences, from a participant’s perspective, between Cycle 1 and Cycle 2 are that the program’s role shifts:

1. From education focused on energy efficiency to education that helps a participant make informed decisions regarding the selection of multiple energy performance improvement opportunities, including Integrated Demand Side Management opportunities, that best meet the customer’s needs.

2. From leading customers through prescriptive activities (goal setting, treasure hunts, etc.) to helping each customer develop, implement, and maintain business practices that lead to the continual application of an energy management system.

2 Energy performance improvement opportunities is a term used for any opportunity that improves the customer’s energy performance and is meant to include any Integrated Demand Side Management (IDSM) options. IDSM is further defined later in this document.



It should be clear to participants that saving energy is critical for both their success and the success of the program, and that the direction of the program in Cycle 2 is to ensure that, by the end of the cycle, the participant is able to lead and maintain their energy business practices with targeted program support while moving towards a functioning energy management system. This does not mean that the participant would not use external resources, such as SEM program resources or technical experts, in supporting specific business practices, but it does mean that the participant’s internal processes should direct why, when, and how those resources are used.

Note: In this context, energy business practices are the individual practices, such as collecting energy data or developing objectives and targets, while the energy management system, or EnMS, is the totality of those practices that together build a systematic approach. An EnMS is not software or hardware but a systematic and purposefully designed collection of these business practices used, among other things, to effectively manage a variety of load mitigation efforts.

Also in this context, a process is the collection of individual steps taken to complete a business practice, which in a continuous improvement program are often documented to allow for repeatability and improvement. For example, while the business practice could be summarized as “setting an annual energy performance target”, the participant’s process might be to 1) review the previous year’s energy performance, energy targets, and implemented energy improvement opportunities, 2) review the current year’s annual budget, 3) review the current year’s production forecast,, 4) review a list of currently available energy improvement opportunities, 6) set energy performance targets, 7) obtain top management approval for the targets, 8) communicate the targets to the organization. Their documented process could give responsibilities, approximate timelines, and files or templates to use.



2 Cycle 2 Design Overview

2.1 Cycle 2 Structure The Cycle 2 design is broken down into four six-month phases. Each phase has a theme as well as learning goals that must be completed before the end of the phase. However, the design does not dictate the steps that must be taken to accomplish those learning goals. This allows the design to be prescriptive in what has to be accomplished but allows the various SEM programs flexibility in the approach and sequence of learning activities.

Each phase also has site specific activities that support the theme and learning goals. The site specific activities within each phase are not given prescriptive time frames to allow the SEM programs flexibility in organizing and prioritizing the activity based on the customer’s needs.

The progression of the learning goals and site specific activities are designed to help the participant 1) reach their energy improvement targets, 2) enhance their employees ability to engage and act, and 3) develop the business practices that create a fully functioning and self-improving energy management system. Below is an overview of the phases.

Figure 2- Cycle 2 Phase Overview

For simplicity, the first year of Cycle 2 will be referred to as Year 3 (as it is the third year of the program) and the second year of Cycle 2 will be referred to as Year 4.

Each phase includes five elements:

Element Purpose Learning goals Concepts the participant should understand so they can take appropriate

action. Site specific activities and support

Activities the program should undertake, and support the program should provide, to encourage participant action.

Participant outcomes Actions the customer should take or decisions they should make. Program deliverables Documents the program should develop. Participant deliverables Documents the customer should share with the program.

Table 1- Phase Elements

Cycle 2

Phase 1

Months 1-6

Saving Energy:Now and in the future

Phase 2

Months 7-12

Enhancing our ability to save energy

Phase 3

Months 13-18

Improving our energy management system

Phase 4

Months 19-24

Continuous improvement and next steps



As mentioned earlier, each phase will specify learning goals that must be achieved in that phase and that support the other elements in that phase. However, prescriptive steps or specific deadlines for completing these goals will not be given to allow the IOU and implementation contractor the ability to determine the approach that best fits their situation and their participants’ needs. In addition, whether the design is implemented in “cohorts” or individually is up to each IOU and implementation contractor and depends on multiple factors such as proximity, potential energy savings, etc., that the IOU and implementation contractor can best analyze. The point being that the learning goals for the phase be met and materials be covered in the recommended timeframe and in a cost-effective manner. Individual IOUs and implementation contractors can make decisions on whether the learning goals are met through multiple sessions, in group or one-on-one environments, and face-to-face or virtually. For example, rather than having a six-hour group workshop face-to-face, activities to meet the learning goals could be split into two two-hour group workshops and one two-hour individual session, or four one-hour group webinars and one two-hour individual webinar. Again, the point being that the learning goals for the cycle be met and materials be covered in the recommended timeframe and in a cost-effective manner.

Similarly, prescriptive steps for completing the activities and outcomes will not be given, again to allow flexibility for the IOU and implementation contractor in best creating an approach that supports their specific situation and their participants’ needs. IOUs and implementation contractors should define their general (not site-specific) approach to meeting learning goals and completing site specific activities prior to engaging with participants.

Site specific efforts are separated into two categories: activities and support. Site specific activities will be similar from participant to participant and typically have a deliverable such as a report or a summary of the activity. Examples of this are the Energy Business Practice Analysis or the Treasure Hunt. Site specific support will vary significantly from participant to participant and depends on a variety of factors, including the site’s goals, priorities, expertise, infrastructure, available resources, etc.

The timing of some site-specific efforts will depend on the participant; hence, those efforts are introduced, in this document, in one phase and carried over in the subsequent phases for completeness in the type of support that may be given to each participant. This does not mean that the effort has to be done in every phase, merely that the IOU or implementation contractor may choose in which phase to provide support, depending on either participant needs or program resources. These efforts are discussed in more detail throughout the document and include:

1. Operational control support- introduced in the Phase 1 section and repeated in Phases 2, 3, and 4. 2. IDSM analysis- introduced in the Phase 2 section and repeated in Phases 3 and 4. 3. Treasure Hunt- introduced in the Phase 2 section and repeated in Phases 3 and 4. 4. Awareness, competence, and training support- introduced in the Phase 3 section and repeated in

Phase 4.



For example, although the treasure hunt is introduced in Phase 2 of this document, an implementation contractor may conduct a treasure hunt early in Phase 3 for a customer that has sufficient energy improvement opportunities to reach their targets in Year 3, or early in Phase 1 for a customer that needs to define more energy improvement opportunities in order to reach their targets in Year 3.

Three activities are labeled as “IOU Option”, meaning the structure for this effort is provided but the funding or resources for this effort, either for a cohort or for an individual participant, is at the IOU’s discretion. To ensure clarity for all parties, the IOU should decide whether or not to include these activities prior to engaging with participants. These activities are discussed in more detail throughout the document and include:

1. Energy Management Information System (EMIS) support beyond the required EMIS assessment. These optional activities includes development of the EMIS implementation plan and support for EMIS implementation.

2. Support for 50001 Ready self-attestation or support for ISO 50001 certification, for customers that choose to pursue these.

3. Customer-facing, facilitated energy management system assessment.



2.2 Cycle 2 Key Considerations 2.2.1 Energy Management System 2.2.1.1 ISO 50001 and 50001 Ready All utility and public benefits administrator SEM programs throughout North America offer participants a mix of some energy management business practices along with technical support to implement energy savings opportunities. One of the most widely known definitions of an SEM program is the 2014 Consortium for Energy Efficiency’s SEM Minimum Elements, which defined three categories and 13 “elements” as the minimum conditions that a facility “should have in place in order to effectively and continuously improve their energy performance.” 3 This definition is based primarily on programs that were active prior to 2013 and was created by and for energy efficiency program managers who, prior to CEE’s effort, lacked a definition of what an SEM program was. Although the definition is publicly available, it is a definition that is not widely known or used outside of the utility and public benefits administrator SEM program community, nor have there been publicly available tools developed to directly support the implementation of that definition. In addition, it is a document that defines the minimum conditions a facility should have in place after participating in an SEM program, not necessarily the quality of that energy management system. The definition also does not provide guidance on elements beyond the minimum should a facility want to improve its practices outside the SEM program or beyond the minimum.

In 2011, the International Standards Organization (ISO) developed ISO 50001 to define the energy management business practices that constitute an energy management system. ISO 50001 has been internationally recognized, with multiple supporting documents created by ISO, as well as many programs and tools developed by international agencies (e.g. UNIDO), government agencies (e.g. European Union), national governments (e.g. US DOE), energy efficiency programs (e.g. Wisconsin Focus on Energy), and consulting firms outside of the utility and public benefits administrator SEM program community. In addition, US DOE has developed a program called 50001 Ready to make the implementation of an ISO 50001 based energy management system more accessible and possible without certification. The 50001 Ready program also developed 50001 Ready Navigator4 (Navigator), which itself is based on ISO 50001. Navigator is an online tool that defines 25 business practices (tasks) and 114 actions that together make up the majority of components required of an ISO 50001 energy management system.

3 CEE Strategic Energy Management Minimum Elements 4 US DOE’s 50001 Ready Navigator is available at https://navigator.lbl.gov



To better align with international direction, give participants a publicly available definition, and be able to access publicly available documents and tools, the business practices that define the energy management system in Cycle 2 will be based upon Navigator. The design will follow Navigator’s structure but will not require all 25 business practices or all 114 actions to be completed. A recommended base approach for which actions within Navigator’s 25 task structure should be required, recommended, or optional, is available in Annex B: Cycle 2 Recommended Task and Action Implementation Summary. The base approach includes the completion of 10 tasks, partial completion of 9 tasks, and optional completion of 6 tasks. In addition, of the 114 actions, 55 are required, 24 recommended, and 35 optional. The base program design for Cycle 2 brings a customer to between 50% and 70% of the ISO 50001 requirements and offers options for IOUs that want to support participants who may choose to go beyond the base program. The design guide will not set targets nor goals for participants certifying to ISO 50001 nor for participants reaching 50001 Ready status.

Because the design does not dictate ISO 50001 certification or 50001 Ready self-attestation, additional support for participants that choose to pursue ISO 50001 certification or 50001 Ready self-attestation will be at the discretion of each IOU. However, it should be clear to participants at the start of the program whether or not there is additional support available beyond the base program.

Note: Although changes to Cycle 1 are outside the scope of this document, it is recommended that ISO 50001 and 50001 Ready be introduced to customers in Cycle 1as foundations for the program in Cycle 2 and that some of the Navigator tasks (described in the next section) be introduced in Cycle 1.

2.2.1.2 Business Practices Participants should already be familiar with the general concepts around an energy management system based on their experience in Cycle 1; the important step in Cycle 2 is that the participant be able to draw on that experience to design and document the processes that support their business practices and that these processes be followed and improved upon as their energy management system matures.

Processes in this context are the steps and resources needed to complete a business practice. Documenting these steps is important in order to be able to 1) consistently implement that business practice regardless of turnover, and 2) continuously improve how that business practice is done. The level at which to document processes depends upon the complexity of the organization and the existing level of documentation the organization uses.

It is not required that every business practice introduced meet 50001 Ready’s “completed” status, meaning that each action within each task does not have to be completed. A recommended approach for which actions should be required, recommended, or optional related to each task is available in Annex B: Cycle 2 Recommended Task and Action Implementation Summary. Although the approach is recommended, implementers that do not follow that approach, either with a cohort or with an individual participant, must provide a brief written justification to the IOU that outlines the proposed changes and the reason for the proposed change, receiving written approval from the IOU.

Business practices are grouped and introduced in Cycle 2 in a manner that focuses first on ensuring energy is continuously saved, second on ensuring employees are competent and engaged, and finally on ensuring the system is thorough and continuously improving.



Note: Although changes to Cycle 1 are outside the scope of this document, it is recommended that the concept for developing processes for energy business practices be introduced to participants in Cycle 1 and that initial processes for business practices related to energy saving activities be developed based on Cycle 1 activities. These include:

1. Task 10- Improvement Opportunities (based on Cycle 1 Treasure Hunts) 2. Task 13- Action Plans for Continual Improvement (based on Cycle 1 opportunity register) 3. Task 9- Significant Energy Uses (based on Cycle 1 Energy Map)

2.2.2 Role of Implementation Contractor By the end of Cycle 2, the participant will be expected to be better able to lead their energy management business practices with targeted program support. This means one of the primary roles for the implementation contractor in Cycle 2 will be to help the participant understand the structure of a functioning energy management system, to help that participant assess how that structure applies to their facility, and to help the participant document their process for implementing the business practices that makeup the energy management system. One key consideration will be to determine which of the business practices may continue to need external support, in the short and long term, and which may not. The implementation contractor should, through the two-year engagement, transition their support so that the customer is moving towards having the internal processes in place to continuously develop, manage, and lead their site-specific energy management business practices, engaging with external parties as needed.



2.2.3 Integrated Demand Side Management Integrated Demand Side Management, or IDSM, has been a high priority for the CPUC and IOUs for many years. IDSM was included in the CPUC’s 2008 and 2011 Strategic Plans, with the 2011 plan stating the IDSM vision as:

“Energy efficiency, energy conservation, demand response, advanced metering, and distributed generation technologies are offered as elements of an integrated solution that supports energy and carbon reduction goals immediately, and

eventually water and other resource conservation goals in the future.”5

In the context of Cycle 2 of the SEM program design, the focus of IDSM activities will be in educating participant of their demand side options for: 1) improving their energy intensity and 2) meeting their energy improvement targets. These educational activities should include, but are not limited to:

1. Giving the participant a general understanding of the concepts behind IDSM, including how various demand side resources such as energy efficiency, demand response, and distributed generation, interact and how to prioritize them based on cost-effectiveness concepts and the proposed loading order,

2. Providing case studies or samples of how IDSM applies to industrial sites, 3. Discussing the IOUs IDSM options, resources and incentives, 4. Making high-level recommendations on potential IDSM opportunities, 5. Providing contact and program information for IOU IDSM resources (and non-IOU resources if IOU

support is not available to support the customer’s objectives, 6. Referring participants interested in specific IDSM opportunities to IOU staff or contractors for

further analysis and support.

In practice, these educational activities should consist of 6 hours of customer education per cohort, not including preparation, although additional support is at the discretion of each IOU. Implementation contractors should let IOU staff (e.g. account managers) know if participants show interest in any IDSM opportunities that are outside of the SEM program scope.

Throughout this cycle, two site-specific activities for IDSM analysis should be included, depending on participant-specific needs. These activities should be approximately 4 hours for each activity (or eight hours total) per participant, not including preparation time, although additional activities are at the discretion of each IOU. These analysis activities could include, but are not limited to for the following topics:

1. Inclusion of IDSM opportunities in SEM program activities, which should include, depending on customer needs:

a. Including IDSM-related targets when setting energy performance improvement targets. b. Including existing or known IDSM opportunities in the opportunity register,

5 The 2011 Strategic Plan is available at https://www.cpuc.ca.gov/General.aspx?id=4125



c. Including IDSM opportunities when prioritizing energy improvement opportunities, such as the prioritization exercise in the treasure hunt,

d. Inviting appropriate IDSM experts to treasure hunts, or including targeted IDSM opportunities in the treasure hunt, depending on available IOU resources.

2. Analysis of IDSM needs, which should include, depending on customer needs: a. Review of energy data to support specific IDSM opportunities. b. Review of, or recommendations on, possible IDSM opportunities. c. Analysis of potential tradeoffs between IDSM opportunities.

As an example, if a customer has had discussions with the IOU on a specific IDSM opportunity and has conducted a cost-benefit analysis, IDSM analysis for this opportunity could be to 1) include the opportunity in the opportunity register, 2) prioritize the opportunity along with other known energy improvement opportunities, 3) analyze the opportunity to see if additional energy data collection would be necessary or helpful for that opportunity, 4) help the customer understand potential inherent tradeoffs between the IDSM opportunity and energy efficiency targets.

It is recommended that implementation contractors engage with the participant’s account manager to understand the potential IOU programs available to the customer the potential tradeoffs between them, and any other considerations related to IDSM programs. Implementation contractors should let IOU staff (e.g. account managers) know if participants show interest in any IDSM opportunities that are outside of the SEM program scope.

In any educational or analysis activity, emphasis should be placed on the economics and cost effectiveness of energy efficiency as a foundation for IDSM. For the purposes of education in the SEM programs, IDSM will be defined as the multitude of energy solutions available to a customer which include, in typical order of cost effectiveness for the customer. Below is a sample “loading order” that reflects the typical relative cost effectiveness. The definitive definition of IDSM should come from the CPUC or CPUC approved sources and should be updated as policy dictates.

1. Energy conservation 2. Energy efficiency, including Water/Energy Nexus6 3. Time of use (TOU) management and pricing 4. Demand response 5. Self-generation and energy storage

Any IDSM education or activity should include what the different demand side resources are, how they interact, and to select among them in a way that promotes the loading order and cost-effectiveness.

6 One of the California’s largest end uses of electricity is in the treatment, heating, and conveyance of water. This is known as the “Water/Energy Nexus.” For more information on the water/ energy nexus see: https://www.cpuc.ca.gov/nexus_calculator/



The implementation contractor is responsible for conducting any research that is necessary in order to develop IDSM educational materials and to perform any IDSM-related activities. Each IOU should provide their implementation contractor, at a minimum, with 1) details on how they want IDSM discussed, if different than the above definition, 2) a summary of the resources available from the IOU to support IDSM opportunities, and 3) contact information and protocols for customers interested in pursuing specific IDSM opportunities. Additional IDSM implementation scope or resources to be provided to participants by the implementation contractor will be at the discretion of each IOU. Guidance for IOU IDSM support outside of the SEM program is beyond the scope of this document.

Note: Although changes to Cycle 1 are outside the scope of this document, it is recommended that IDSM education begin in Cycle 1 and be integrated into appropriate workshops, site-specific activities, and prioritization exercise in Treasure Hunts.

2.2.4 Milestone incentives Milestone incentives and energy saving incentives are not defined in this guide. Although we believe that providing a financial incentive for a participant that completes specific activities or meets specific milestones reinforces the need for external motivation, which is counter-productive to the goals of the design, it is ultimately up to each IOU to decide what incentive structure is best for their program objectives, their program cost effectiveness, and their customer’s need.

For utilities that want to provide milestone incentives, it is recommended that the IOU:

1. Set the milestones at the end of each phase. 2. Base the milestones on a combination of participant outcomes and the participant sharing key

information (i.e. production data, opportunity register, etc.). 3. Rather than financial incentives, provide incentives that are supportive of participant’s efforts and help

set up future success. Some examples of these types of incentives could be but are not limited to: a. Technical or on-the-job training for key staff such as operators, energy team, or top

management. b. Financial support for sub-metering for key equipment or processes. c. Technical expertise to tune or balance key equipment or processes.

As mentioned earlier, the design of all incentives is at discretion of each IOU.

2.2.5 Energy Management Information Systems Energy management information systems (EMIS) were broadly introduced to customers in Cycle 1. Cycle 2 provides the option for SEM programs to further enhance the customers’ energy management system and improve energy performance through the implementation of a comprehensive EMIS.



Energy Management Information Systems are information systems that make energy performance visible to the right individuals at the right time throughout the organization. This typically includes the combination of data, analysis, and reports that can help an organization implement and continually support energy business practices such as (with 50001 Navigator task number preceding):

1. Task 17- Operational controls 2. Task 21- Monitoring and measurement of energy performance improvement 3. Task 23- Management Review

In addition, an EMIS may help quantify the potential of IDSM opportunities such as time of use or demand response as well as improve how effectively a site coordinates the use of various energy sources. The primary purpose of an EMIS is that, through the proper integration and visualization of energy information, multiple levels of employees and management within an organization are able to take actions and make decisions that save energy and maintain energy savings.

For the purpose of this design, we will refer the definition of an EMIS from Natural Resources Canada’s Office of Energy Efficiency EMIS Planning Manual (EMIS manual), which provides a publicly available EMIS planning manual, tool, and guidebook7 targeted to end users. According to the EMIS manual:

An EMIS provides relevant information that makes energy performance visible so that key individuals and departments within a business can take effective action to create financial value for the organization.

As outlined in the EMIS manual, an ideal EMIS, combined with a well-managed EnMS, can help save energy by:

1. Reducing operational variability by giving operators the ability to quickly identify when equipment or processes are operating well or poorly.

2. Promoting operational best practices by eliminating the root cause of poor performance and promoting activities that lead to good performance.

3. Providing the justification for energy improvement opportunities by making visible the costs of current energy performance and providing a baseline against which improvement opportunities can be compared.

4. Demonstrate the success or benefits of opportunities that have been implemented.

The EMIS manual identifies three steps to develop and implement an EMIS:

1. An EMIS Assessment (or audit) to assess, identify gaps, and make recommendations on whether or not to implement an EMIS.

2. An EMIS implementation plan to provide guidance at all stages of implementation 3. The actual implementation of the EMIS.

7 https://www.nrcan.gc.ca/energy/efficiency/energy-efficiency-industry/energy-management-industry/energy-management-information-systems/20403



The EMIS manual provides details, tools, and templates for each of these steps. An EMIS Assessment will be required in Cycle 2 so that participants understand the make-up, cost and benefits of a complete EMIS solution. The EMIS Assessment should be based on the EMIS manual but should be tailored to the needs and complexity of the participant’s facility and a scope that is realistic for both the facility and the SEM program. For example, for a very large facility, the EMIS Assessment could be limited to one building or production area.

Further EMIS support beyond the assessment is at the discretion of each IOU and can include, but is not limited to, support in:

1. A partial or sample implementation of EMIS on a limited system using existing infrastructure. 2. Development of an EMIS implementation plan. 3. Technical or financial support in the implementation of the EMIS implementation plan.

Although these additional activities are planned throughout Cycle 2, IOUs that choose to provide this support can introduce these activities earlier to support participants that may benefit from an early implementation of an EMIS.

If an implementation contractor proposes any alternative EMIS software, hardware, or process, a written justification should be provided to the IOU comparing the proposed software, hardware, or process with the process proposed in the EMIS Manual.

Note: Although Cycle 1 changes are outside of the scope of this document, we recommend the EMIS audit, or at the very least an explanation of what a complete EMIS audit and system is, based on the EMIS manual, be conducted in Cycle 1 as a replacement to the EMIS activities and workshop and prior to any EMIS implementation. For IOUs that choose to include an EMIS audit in Cycle 1, EMIS implementation can take place in Phase 1 of Cycle 2. For programs that have already provided a partial EMIS solution prior to the drafting of this guide, we recommend the participant be given an explanation of what a complete EMIS audit and system is, based on the EMIS manual, and compared to the solution previously implemented.



3 Cycle 2 Design

3.1 Phase 1: Saving energy now and in the future Phase 1 continues the participants journey in the SEM program and begins their efforts in Cycle 2. As such it is important that they understand the direction and approach of the program in this cycle as they need to make educated decisions on the approach they want to take during these two years. Key actions they will take in this phase focus around setting targets for energy improvement and for their energy management system, as well as choosing how they will reach those targets. In Phase 1, the focus is on making sure that the participants have identified and planned to implement the energy saving opportunities to reach their targets and that they have the processes in place to do so continuously. Business practices introduced in this phase are focused on those that help the participant save energy.

Phase 1 consists of the first six months of Cycle 2. Below is a high-level overview of Phase 1.


Learning Goals Site Specific Activities Participant Outcomes Program Deliverables

Participant Deliverables

1. Understand the program structure and concepts for the next two years

1. Participant Kick-off Meeting(s)

1. Chosen an energy management system objective.

1. Energy Management System Analysis.

1. Energy improvement opportunity action plans

2. Evaluate the differences between potential energy management system objectives and choose the one that best applies to their facility.

2. Energy Management System Analysis

2. Set energy performance targets for Year 3 and Year 4.

2. Customer Phase 1 Summary.

2. Energy management business practices developed

3. Analyze Cycle 1 energy performance, implemented opportunities, and existing opportunities to develop Cycle 2 energy performance targets.

3. Conduct EMIS Assessment

3. Developed action plans for opportunities that meet Year 3 performance targets.

3. EMIS assessment report

3. EMIS assessment decision

4. Develop action plans for existing opportunities that meet year 3 energy performance targets.

4. Action Plan Development Support

4. Implemented opportunities to achieve Year 3 performance targets.

5. Understand which business practices lead directly to energy improvement.

5. Business Practice Development Support

5. Included Operational Controls in energy improvement opportunities.

6. Understand how to develop, document, implement, and manage energy business practices.

6. Operational Controls Support

6. Made a decision on EMIS implementation plan.

7. Understand the connection between EMIS, specific tasks, and IDSM.

7. Developed business practices for Phase 1 tasks.

8. Understand how IDSM concepts and loading order apply to their facility

8. Decided if need separate Energy Performance Indicators or Baselines.

9. Review an EMIS Assessment and make a decision on the development of an EMIS implementation plan.

10. Understand the M&V Process and their involvement.

Table 2- Phase 1 Summary



3.1.1 Phase 1 Learning Goals As mentioned earlier, this document will not be prescriptive on the educational activities that need to be followed to meet the learning goals nor the timing for those activities. The point being that the learning goals for the phase be met and materials be covered in the recommended timeframe and in a cost-effective manner. Individual IOUs and implementation contractors can make decisions on whether the learning goals are met through multiple sessions, in group or one-on-one environments, and face-to-face or virtually. By the end of Phase 1, the customer should be able to:

Phase 1 Learning Goals 1. Understand the program structure and concepts for the next two years. 2. Evaluate the differences between potential energy management system

objectives and choose the one that best applies to their facility. 3. Analyze Cycle 1 energy performance, implemented opportunities, and existing

opportunities to develop Cycle 2 energy performance targets. 4. Develop action plans for implementing opportunities that meet Year 3 energy

performance targets. 5. Understand which business practices lead directly to energy improvement. 6. Understand how to develop, document, implement, and manage energy

business practices. 7. Understand the connection between EMIS, specific business practices, and

IDSM. 8. Understand how IDSM and loading order concepts apply to their facility. 9. Review an EMIS Assessment and make a decision on the development of an

EMIS implementation plan. 10. Understand the M&V process and their involvement.

Table 3- Phase 1 Learning Goal Summary

Details on the learning goals are given below:

1. Understand the program structure and concepts for the next two years. Participants must understand, at a high level, how the program is designed and structured. Key elements of this include, but are not limited to:

a. Program goals: which are summarized as: i. Implement energy performance improvement opportunities and save energy.

ii. Develop a systematic approach to managing energy that will last with limited program support.

b. Changing role of the program in Cycle 2. Which can be summarized as: i. From education on energy efficiency to education that includes IDSM opportunities.

ii. From leading participants through activities (goal setting, treasure hunts, etc.) to helping each participant develop and implement business practices that, by the end of Cycle 2, the participant can own and lead with targeted program support and are leading to an energy management system.



c. Timing and expectation of Phases. A general sense of the phases and what to expect in each of the six-month phases, including key elements of each phase.

d. Energy Management System foundation. Participants should understand: i. What is ISO 50001 and why it is the foundation for the energy management

system in Cycle 2 ii. Benefits of an ISO 50001-based approach iii. How to find additional tools (Navigator) or the standard if needed.

e. Flow of educational and site specific activities. Because of the flexibility allowed by the design in when activities are implemented and how educational goals are met, it will be up to each implementer to define a calendar of activities. This should be presented to participants.

f. Incentive structure. Incentives are at the discretion of each IOU and should be clearly described to customers in Phase 1.

2. Evaluate the differences between potential energy management system objectives and choose the one that best applies to their facility and situation. Participants should understand that although the program is based on ISO 50001 and 50001 Ready, the program will not take them to ISO 50001 certification nor to 50001 Ready self-attestation. Participants should understand that there are both costs (human and financial) and benefits to those options and any participant that sees any of those as valuable options should be able to set their achievement as an objective for Cycle 2 if they choose. However, the customer should understand that additional program support for participants that choose self-attestation or certification is not a part of the base program. Additional support is at the discretion of each IOU and a decision on whether to provide that support should be made before participants are asked to choose their objective. Participants should also understand that they can also follow the base program or choose ISO 50001 certification or 50001 Ready attestation at a date beyond the completion of Cycle 2, depending on their needs and priorities.

3. Analyze Cycle 1 energy performance, implemented opportunities, and existing opportunities to develop Cycle 2 energy performance targets. Participants should understand how to analyze their past performance, implemented and identified opportunities, and other factors, such as corporate goals, to develop Cycle 2 energy performance targets for Year 3 and Year 4. Note that for some customers these targets might include various targets such as demand reduction, energy consumption reduction, reduction in overall energy spend, etc. For some customers, actions taken to reach these goals might include IDSM opportunities.

4. Understand the importance of action plans and develop action plans for energy improvement opportunities that meet Year 3 energy performance targets. Action plans (as defined in Navigator Task 13) are detailed project plans for opportunities for which the scope and complexity of the project requires planning. Participants should understand best practices in developing and managing action plans and why a properly defined action plan is important to ensure improvement opportunities are implemented. Participants are encouraged to



develop action plans for energy improvement opportunities that meet Year 3 targets and are complex enough to warrant one.

5. Understand which business practices lead directly to energy performance improvement. Participants should understand that some business practices lead directly to energy savings and that it is important to ensure those practices are supported by solid internal processes to ensure long-term success. This does not mean that other practices, such as employee awareness, are not important, but that their impact may not be as direct in the short term. The focus of Phase 1 is on developing and implementing processes that lead directly to energy performance improvement.

6. Understand how to develop, document, implement, and manage energy business practices. Participants should understand that well defined and managed business practices are critical for the long-term success of the energy management system, and that there are best practices for developing and implementing them. Participants should also understand that the scale and complexity of any business practice should be unique to their situation. For example, two facilities may develop processes for defining objectives and targets, a company with a single facility with one production line, one maintenance technician, and one engineer would likely need a simple process that involves few people, while a facility that is part of a multi-national company, with a dozen production lines, multiple maintenance technicians, and multiple engineers might need a process that includes review and discussion with multiple departments.

7. Understand the connection between an energy management information system (EMIS), specific tasks, and IDSM. As discussed earlier, a properly designed EMIS makes energy performance visible to the right individuals at the right time. Whether this is operators controlling a process on a continuous basis, technicians or engineers determining optimum set points for equipment or processes, or plant management reviewing performance at a facility level, a well-designed EMIS can support decisions and actions by integrating energy information throughout the facility. Participants should understand that, depending on its design, an EMIS can also provide the data necessary to help make decisions on the value of certain IDSM activities and to support customers in understanding the potential inherent tradeoffs between IDSM and opportunities and energy efficiency targets. See the EMIS discussion in Section 2.2- Key Considerations, for more details.



8. Understand how IDSM and loading order concepts apply to their facility. Participants should know what the IDSM “loading order” is, how it applies to industrial facilities in general, and how it might apply to their specific situation. Participants that are interested in pursuing a specific IDSM opportunity should know who to contact for further analysis and the implementation contractor should ensure account representatives know which IDSM opportunities the participant is interested in. See the IDSM discussion in Section 2.2- Key Considerations, for more details.

9. Be able to review the EMIS Assessment and make a decision on the development of an EMIS implementation plan. The participant should understand what the EMIS assessment will contain, the internal resources required to complete the EMIS implementation plan, and the decisions they are expected to make if they choose to have an EMIS implementation plan prepared. See the EMIS discussion in Section 2.2- Key Considerations, for more details.

10. Understand the M&V process and their involvement. Participants should understand the M&V process, as outlined in the M&V Guide, and understand their involvement in it, including the deliverables they are responsible for and the expectation that their involvement increase over the course of Cycle 2. In addition, participants should make a decision on whether the energy performance indicators and energy baselines the program is using for its M&V process meet their needs or if there is a need for a different set of energy performance indicators or baselines.

3.1.2 Phase 1 Site Specific Activities and Support Similar to Cycle 1, the Cycle 2 design details activities that are expected to be implemented directly with each participant and support that is expected to be given to each participant. Below is a summary of the activities and support for Phase 1:

Phase 1 Site Specific: Activities and Support 1. Participant Kick-off Meeting 2. Energy Management System Analysis 3. EMIS Assessment 4. Action Plan Development Support


6. Operational Control Support Table 4- Phase 1 Site Specific Activity Summary

Details on the Phase 1 Site Specific Activities and Support are given below.



3.1.2.1 Participant Kick-off Meeting The implementation contractor must meet (either face-to-face8 or online) with the participant to discuss plans for the next two years. This discussion should take place after the participant has been introduced to at least the first three learning goals and should include a discussion on:

1. Energy performance targets 2. Energy management system (EnMS) objectives 3. Energy improvement opportunities and action plans 4. Energy data collection, per M&V Guide requirements 5. EMIS Assessment

The goal of the discussion is to review Cycle 1 performance and energy improvement opportunities, analyze any organizational changes that may have an impact on energy-related business practices, and develop a clear vision of what the participant wants to accomplish in Cycle 2 both in terms of energy performance targets and energy business practices. This should be reviewed in a year, making any relevant changes for that year.

3.1.2.2 Energy Management System Analysis An analysis of the participant’s energy business practices is to be done by the implementation contractor using a tool based on 50001 Ready. This tool lists out all the Navigator tasks and actions and allows the implementation contractor to make a judgement call on whether the participant has completed that action. The tool is included in the design guide documents9 and is to be completed by the implementation contractor based on their knowledge of the participant’s energy business practices, with confirmation from the participant if needed. Although the tool assigns a numerical value based on the results, there is no expected or required value and improvement in the participant’s score is what is important. Individual scores should be reported to the IOU as well as the result of all participants’ combined scores to allow for the tracking of trends. This analysis will be repeated at end of the two-year engagement. The analysis should be shared with the participant as a snapshot of where their EnMS is today, with a brief discussion about them taking a more active role in creating the next snapshot.

At the IOUs discretion, IOUs have the option to provide a customer-facing, facilitated assessment of the participant’s energy management system. In Cycle 1 this was called an Energy Management System assessment.

Note: Although changes to Cycle 1 are outside the scope of this document, we recommend using this same analysis tool and reporting the results in Cycle 1 to allow for consistent tracking of progress of a participant’s EnMS throughout their engagement in the SEM program.

8 Given the current COVID-19 situation, safety considerations should be considered for any face-to-face meetings. If safety can not be guaranteed, the implementation contractor should opt for online meetings. 9 50001 Ready Playbook Task Management Checklist v0.1.xlsx



3.1.2.3 Energy Management Information System Assessment (or Audit) This activity should be based on Part A of the Energy Management Information Systems Planning Manual and Tool developed by Natural Resources Canada’s Office of Energy Efficiency. The objective of this activity is to give the participant an understanding of the benefit and cost of a comprehensive approach to an EMIS and its potential impacts at different levels of the organization. As that manual explains, the expectation is that “appropriate costs for each action (for implementing an EMIS) will be identified and a business case and audit report developed, including all the recommendations, in order to be in a position to weigh the benefits and establish whether there is a financial case for EMIS implementation.” Much of the information needed to start the assessment, such as submetering information, production data, and management system information should be already known by the implementation contractor. The steps described in Part A should be followed but modified based on the implementation contractor’s understanding of the facility and participant’s situation. The program deliverable for this activity is the EMIS assessment (or audit), with the outcome being that the facility is able to review the assessment and decide whether or not they will be developing an EMIS implementation plan.

3.1.2.4 Action Plan Development Support Action plans are meant to help the facility determine the steps needed to implement specific energy improvement opportunities to meet energy performance targets. The facility should develop action plans for all opportunities that are going to be implemented in Year 3 and optionally for Year 4, and that total to at least the Year 3 targets. The intent here is for the implementation contractor to support the participant as they develop these plans and ensure they are thorough enough to be successfully implemented and to successfully support the participant’s targets.

Support by the implementation contractor can include:

1. Review of existing action plan templates 2. Coordination of action plans with IOU resources 3. Review of energy saving calculations 4. Review of methods for verifying project results

Note that action plans are meant to be developed only for energy improvement opportunities that have been approved for implementation. The timing for selecting and approving which energy improvement opportunities are implemented depends on the participant’s budgetary approval process.

3.1.2.5 Business Practice Development Support As mentioned throughout this guide, one of the objectives is for the customer to be better able to lead their EnMS by the end of Cycle 2. This activity is critical in helping the customer think through how each business practice within the EnMS should be implemented at their facility given their priorities, resources, and existing business practices. This activity should help customers design, document, and implement the process that supports each business practices at the right level of complexity for the organization so that the practice can be followed and, as the practice matures, it can be improved. The point is to have a series of processes that the energy team can follow repeatedly and that can be followed by existing or new energy team members.



Processes typically answer questions like: who is involved in the process and responsible for making sure it gets done, how often it gets done or what triggers its update, what external resources are used or needed, what tools or materials are used, and what happens if this business practice does not get done. One of the key considerations is where the participant may want to or need to use external resources, such as technical resources from the IOU (e.g. implementation contractor) for treasure hunts, as part of its process.

In phase 1, the business practices to be introduced are those that can lead to direct energy savings (with 50001 Navigator task number preceding):

1. Task 9- Significant Energy Uses 2. Task 10- Improvement Opportunities 3. Task 13- Action plans for continual improvement 4. Task 17- Operational controls

As well as those that help set goals and track energy performance:

1. Task 8- Energy Data collection and analysis 2. Task 11- Energy performance indicators (EnPIs) and baselines 3. Task 12- Objectives and targets

Participants should already be familiar with most of these concepts from Cycle 1; the important concept in Cycle 2 is that they are able to draw on their experience to design and document a process that they can follow and improve.

It is not required that every task introduced meet 50001 Ready’s “completed” status, meaning that each action within each task does not have to be completed, but it is recommended that the implementation contractor use the Navigator’s definition as the basis for this support, considering the participant’s EnMS objectives. A recommended approach for which actions should be required, recommended, or optional related to each task is available in Annex B: Cycle 2 Recommended Task and Action Implementation Summary.

IOU OPTION: ISO 50001 certification or 50001 Ready support. At the IOU’s discretion, additional support can be given for companies that choose to become ISO 50001 certified or that want to self-attest to 50001 Ready. This support can be given to help participants with the additional tasks required by ISO 50001 or as financial support to help with costs such as certification costs. This support would likely be given throughout the two-year cycle depending on the participant’s needs. Both technical support and financial support for ISO 50001 certification or 50001 Ready self-attestation is at the IOU’s discretion.

3.1.2.6 Operational Control Support Operational controls are a key component in both saving energy and maintaining energy savings as they can help a facility set and maintain optimum running conditions and maintenance practices. Operational control support should focus on the processes or equipment that consume a significant amount of energy (also known as Significant Energy Users, or SEUs, in Navigator) and have a risk of significant deviation in energy performance.



This support can be provided at any phase in Cycle 2 depending on how the facility has prioritized and scheduled the implementation of operational controls compared to other energy improvement opportunities. Support can include activities such as:

1. Assistance in analyzing and prioritizing the equipment or processes to target in the identification of operational control opportunities.

2. Analysis of existing operating set points and operational procedures. 3. Analysis of maintenance criteria, controls, and procedures. 4. Consideration of optimization and tradeoffs between various IDSM programs.

In Phase 1, participants should at least include operational controls as either independent energy improvement opportunities or as a component of other existing energy improvement opportunities. Operational controls can be supported by a well-defined and implemented EMIS and some operational control opportunities may need to be implemented after EMIS implementation (if the participant is implementing an EMIS).

3.1.3 Participant Outcomes The learning goals and program activities are meant to help participants take specific actions to save energy and improve their energy management business practices. This section outlines the expected outcomes for participants in Phase 1. Details for each of these are covered in other sections. Note that these do not include M&V outcomes required by the M&V Guide.

By the end of Phase 1, the participant should have:

Phase 1 Participant Outcomes 1. Chosen an energy management system objective. 2. Set energy improvement targets for Year 3 and Year 4. 3. Developed action plans for opportunities that meet Year 3 energy performance

targets. 4. Implemented sufficient opportunities to be on track to achieve Year 3 energy

performance targets. 5. Developed business practices for Phase 1 tasks. 6. Included operational controls in energy improvement opportunities. 7. Made a decision on EMIS implementation. 8. Decided if need separate EnPIs or Baselines.

Table 5- Phase 1 Participant Outcomes Summary

3.1.4 Program Deliverables Program deliverables, along with the participant deliverables, provide proof of the participant outcomes, which is critical for evaluation of the program. The following documents should be provided to the IOU within 30 days from the end of Phase 1. Timely submittal by the implementation contractor, and review by the IOU, of deliverables helps ensure that any issues are caught and discussed at an appropriate time. Note that these do not include deliverables required by the California Industrial SEM M&V Guide (M&V Guide).



Phase 1 Program Deliverables 1. Energy Management System Analysis. 2. Customer Phase 1 Summary. 3. EMIS Assessment.

Table 6- Phase 1 Program Deliverable Summary

Details on the program deliverables follow below:

1. Energy Management System Analysis. This is a summary of the EnMS in place at each facility and of the all the facilities in aggregate. The summary will be developed by the implementation contractor for each participant using the 50001 Ready Playbook Task Management Checklist spreadsheet provided as part of the design guide documents. This should be completed early in Phase 1 to provide a baseline, and will be repeated near the end of the program in Phase 4 to provide a final snapshot. This is a deliverable from the implementation contractor to the IOU. The participant should receive a summary of the analysis for their facility.

2. Customer Phase 1 Summary. This should be a simple one to two-page document that provides a high-level summary of the customer’s accomplishments based on the Phase 1 Participant Outcomes. This is a deliverable from the implementation contractor to the IOU and does not need to be presented to the participant.

3. EMIS Assessment (or audit). This is a report given to the participant. It should be based on the 8 steps outlined in Natural Resources Canada EMIS manual. This is a deliverable from the implementation contractor to the participant and does not need to be presented to the IOU unless requested by the IOU or by an evaluation contractor.

3.1.5 Participant Deliverables Participant deliverables are documents participants share with the implementation contractor that help show the outcomes of the program. The following documents should be shared with the implementation contractor within 30 days from the end of Phase 1. These are the deliverables that are concerned with the program design, additional deliverables for measurement and verification (M&V) are discussed in the California Industrial SEM M&V Guide (M&V Guide).

Phase 1 Participant Deliverables 1. Energy opportunity action plans. 2. Energy management business processes developed. 3. EMIS Assessment decision.

Table 7- Phase 1 Participant Deliverable Summary

Participant deliverables must be requested of the participant by the implementation contractor but do not need to be shared with the IOU unless requested by the IOU or through an evaluation effort.



3.2 Phase 2: Enhancing our ability to save energy Phase 2 focuses on making sure staff that have an ability to significantly impact energy-related business practices and energy performance have the awareness, information, involvement, and competence they need so they can make a positive contribution. This can include a wide variety of staff, including maintenance engineers and technicians, operators, buyers, and process engineers. As such, the business practices that are discussed and developed in this phase focus on this topic.

Phase 2 consists of the second six months of Cycle 2. Below is a summary of the requirements for Phase 2.



Learning Goals Site Specific Activities Participant Outcomes Program Deliverables

Participant Deliverables

1. Understand how different employees can impact energy performance and which business practices involve those employees

1. IDSM Analysis 1. Identified gaps in the competencies of personnel who affect energy performance

1. Customer Phase 2 Summary.

1. Competency gaps identified.

2. Be able to identify potential gaps in the competencies of employees who affect energy performance and define potential actions to fill those competency gaps

2. Treasure Hunt 2. Identified actions to address competency gaps

2. IDSM Analysis 2. Energy management business processes developed.

3. Understand the impact of design and procurement processes on energy performance and be able to take possible steps to create new processes

3. IOU OPTION: Development of EMIS Implementation Plan


3. IOU OPTION: EMIS Implementation Plan.

3. IOU OPTION: EMIS design decision.

4. IOU Option: Be able to review a conceptual EMIS design and understand what is involved in developing a detailed design

4. IOU OPTION: Customer-facing Energy Management System Assessment

4. Implemented sufficient opportunities to achieve Year 3 energy improvement targets.

5. Awareness, Competence, and Training Support

5. Included IDSM in energy improvement opportunities


6. IOU OPTION: Developed an EMIS Implementation Plan

7. Operational Control Support10


10 Repeated from Phase 1




Phase 2 Learning Goals 1. Understand how different employees can impact energy performance and which business practices involve those employees 2. Be able to identify potential gaps in the competencies of employees who affect energy performance and define potential actions to fill those competency gaps 3. Understand the impact of design and procurement processes on energy performance and be able to take possible steps to create new processes 4. Be able to review a conceptual EMIS design and understand what is involved in developing a detailed design


Details on the learning goals are given below: 1. Understand how different types of employees can impact energy performance and

which business practices involve those employees. Participants must understand, at a high level, that different employees (and sometimes key vendors or contractors) impact energy performance in different ways and therefore should develop an approach that recognizes this. In Cycle 1 there was a focus on employee awareness and engagement, in this phase of Cycle 2 there is an added layer of employee competencies as well as discussions on how purchasing and design practices can impact energy performance. For example, employees that have no or minimal impact may only need awareness training so they can be conscious of the importance of energy while employees that have a significant impact may need to have 1) more specific training that helps them understand how their job and the equipment they operate can impact energy performance, and 2) technical training that develops their skills or competencies to allow them to analyze and operate or maintain that equipment efficiently. In addition, the energy team must understand that the energy team members and top management also significantly impact energy performance and should be considered when looking at competencies. In terms of business practices, Task 14- Competence and Training, and Task 15- Awareness and Communication, are critical in making sure employees can support the goals of the energy management system. Similarly, Task 18- Energy Considerations in Design, and Task 19- Energy Consideration in Procurement, help ensure that employees involved in the procurement of materials or in the design of facilities or manufacturing processes are considering the impact of their activities on energy performance.



2. Be able to identify potential gaps in the competencies of employees who affect energy

performance and define potential actions to fill competency gaps. For a variety of reasons, employees who affect energy performance can sometimes lack the competency to support energy improvement opportunities. For example, equipment operators may know how to safely operate equipment but they may not have the training needed to know how to power up or shut down equipment in a way that minimizes energy consumption. Participants should understand how to:

• Identify staff who affect energy performance.

• Determine what may be the competencies they need to effectively support the EnMS.

• Identify potential gaps in their competencies.

• Define potential actions, such as training, that can help fill those gaps.

IOUs often have high quality training available for free or at a discounted rate or know of other training available in the area that can help meet potential gaps in competency.

3. Understand the impact of design and procurement processes on energy performance and be able to take possible steps to take to create new processes. Design and procurement processes can potentially have a significant impact on energy performance. Participants should understand that design projects or procurement plans can impact energy performance and that proactive processes can ensure the impact is minimized., the energy team can look at the processes to make sure energy is considered not only for an upcoming project but also for future projects. For design processes, this includes identifying:

• Energy performance improvements

• Operational controls

For procurement processes, this includes establishing criteria for purchases of energy consuming equipment.

4. IOU OPTION: Be able to review a conceptual EMIS design and understand what is involved in developing a detailed design. Participants should be familiar with the structure and outputs of the conceptual design and with the expectations once the conceptual design is delivered to them, as well as the expectations after a decision on the conceptual design is made. Those that choose to continue on to a detailed design should understand the structure and outputs of the detailed design as well as the expectations in developing the detailed design. Both the conceptual and detailed EMIS design should be based on the Energy Management Information Systems Planning Manual and Tool developed by Natural Resources Canada’s Office of Energy Efficiency.



3.2.2 Phase 2 Site Specific: Activities and Support Similar to Cycle 1, the Cycle 2 design details activities that are expected to be implemented directly with each participant and support that is expected to be given to each participant. Below is a summary of the activities and support for Phase 2:

Phase 2 Site Specific Activities and Support 1. IDSM Analysis 2. Treasure Hunt 3. IOU OPTION: EMIS Implementation Plan 4. IOU OPTION: Facilitated EnMS Assessment 5. Awareness, Competence, and Training Support 6. Business Practice Development Support 7. Operational Controls Support Table 10- Phase 2 Site Specific Activity Summary


3.2.2.1 IDSM Analysis Throughout this cycle, two site-specific activities for IDSM analysis should be included, depending on participant-specific needs. These activities should be approximately 4 hours for each activity (or eight hours total) per participant, not including preparation time, although additional activities are at the discretion of each IOU. These analysis activities could include, but are not limited to:

1. Inclusion of IDSM opportunities in energy saving opportunity activities, which should include, depending on customer needs:

a. Including existing or known IDSM opportunities in the opportunity register, b. Including IDSM opportunities when prioritizing energy improvement opportunities, such as

the prioritization exercise in the treasure hunt, c. Inviting appropriate IDSM experts to treasure hunts, or including targeted IDSM

opportunities in the treasure hunt, depending on available IOU resources. 2. Analysis of IDSM needs, which should include, depending on customer needs:

a. Review of energy data to support specific IDSM opportunities. b. Review of, or recommendations on, possible IDSM opportunities. c. Analysis of potential tradeoffs between IDSM opportunities.

For more details on IDSM see the IDSM discussion in Section 2.2- Cycle 2 Key Considerations.



3.2.2.2 Treasure Hunt Similar to the IDSM analysis, the Treasure Hunt can be included in this or subsequent phases, or for the Treasure Hunt in Phase 1, depending on the needs of the participant. The main consideration for when to conduct the Treasure Hunt should be whether the participant has enough opportunities identified to meet their energy performance improvement targets and the process defined the by the participant in Phase 1 for Task 10- Improvement Opportunities. This process should define when to update the list of prioritized opportunities (opportunity register) as well as the methodology and criteria for identifying, prioritizing, and updating improvement opportunities. It is critical that the process be developed before the Treasure Hunt is conducted and that the Treasure Hunt follow the methodology defined by the participant so that the participant has a process they can follow in future Treasure Hunts. There should be one Treasure Hunt in Cycle 2, although additional Treasure Hunts are at the IOU’s discretion.

The inclusion of IDSM energy improvement opportunities or additional resources for IDSM opportunities during (or outside of but coordinated with) the Treasure Hunt is recommended but at the IOU’s discretion based on their availability of resources and the customer’s needs. However, if IDSM opportunities are not included, the Treasure Hunt should include recommendations on seeking additional information on any IDSM opportunities that may apply to the participant or that the participant shows interest in.

A brief summary of the Treasure Hunt (Treasure Hunt Report) is included in the Customer Phase 2 Summary deliverable if a Treasure Hunt was conducted in Phase 2.

3.2.2.3 IOU OPTION: Energy Management Information System Implementation Plan Note: This activity is at the IOU’s discretion.

This activity should be based on Part B- Implementation Plan of the Energy Management Information Systems Planning Manual and Tool developed by Natural Resources Canada’s Office of Energy Efficiency (the manual). The objective of this activity is to give the participant a comprehensive roadmap for successfully implementing an EMIS.

As the manual explains, the Implementation Plan builds on the EMIS Assessment (or Audit) developed in Phase 1 and presents accurate costs for implementation, details and the scope of the project, and the resources needed by the organization to manage the EMIS. The manual recommends two stages to developing the implementation plan: 1) a conceptual design that is signed off by management and key decision makers, and 2) a detailed design.



3.2.2.4 IOU OPTION: Facilitated Energy Management System Assessment Note: This activity is at the IOU’s discretion.

In Cycle 1, the program design required a facilitated review of the participant’s EnMS practices to help the customer assess their progress and plan for continued improvement of their energy management system. However, in Cycle 2, the program design uses 50001 Ready as a foundation, expects the participant to make a decision about their goals related to the EnMS in Phase 1, and works with the participant to develop their energy related business practices. As such, a facilitated EnMS assessment is not as critical. If the IOU decides, for continuity, to provide a facilitated EnMS assessment for their participants, this activity should be held near the end of Phase 2.

3.2.2.5 Awareness, Competence, and Training Support This support activity is one of the most important in Cycle 2 as it helps ensure that staff throughout the facility, including the energy team and senior management, have the context and competence to support the objectives and targets of the energy management system. Key outcomes in this phase include conducting a review of the potential gaps in competencies of personnel who affect energy performance, and developing plans to fill those gaps. Through this support activity, the implementation contractor and IOU will play a key role in helping find or develop competence and training actions, such as existing or customized training courses, that might help fill competency gaps. This support is introduced in Phase 2 but can be provided during any of the subsequent phases, depending on the participant’s needs, and does not need to be provided in every phase.

Whether to provide additional support resources or funding, such as bringing in equipment or process experts or providing customized courses for one or a group of participants, is at the IOU’s discretion.

3.2.2.6 Business Practice Development Support As mentioned throughout this guide, one of the objectives is for the customer to be better able to lead their EnMS by the end of Cycle 2. This activity is critical in helping the customer think through how each business practice within the EnMS should be implemented at their facility given their priorities, resources, and existing business practices. This activity should help customers design, document, and implement the process that supports each business practices at the right level of complexity for the organization so that the practice can be followed and, as the practice matures, it can be improved. The point is to have a series of processes that the energy team can follow repeatedly and that can be followed by existing or new energy team members. Processes typically answer questions like: who is involved in the process and responsible for making sure it gets done, how often it gets done or what triggers its update, what external resources are used or needed, what tools or materials are used, and what happens if this business practice does not get done. One of the key considerations is where the participant may want to or need to use external resources, such as technical resources from the IOU (e.g. implementation contractor) for treasure hunts, as part of its process.



In phase 2, the business practices to be developed are those that involve employees within the organization who can have a significant impact on energy performance and the EnMS. Those include (with 50001 Navigator task number preceding):

1. Task 6- Energy Team and Resources 2. Task 14- Competence and Training 3. Task 15- Awareness and Communication 4. OPTIONAL: Task 18- Energy Consideration in Design 5. OPTIONAL Task 17- Energy Consideration in Procurement

Although concepts from some tasks, like Task 15- Awareness and Communication, were introduced in Cycle 1, it is important that in Cycle 2 the concepts be turned into on-going business practices and not seen as a one-off event. Optional tasks do not need to be introduced in Cycle 2 but can be introduced if the implementation contractor feels it is important or if the implementation contractor feels that the participant is ready for the task.



3.2.2.7 Operational Control Support Note: this activity is repeated from Phase 1 for completeness. It should be implemented as needed through Cycle 2 but does not need to be included in every phase.

Operational controls are a key component in both saving energy and maintaining energy savings as they can help a facility set and maintain optimum running conditions and maintenance practices. Operational control support should focus on the processes or equipment that consume a significant amount of energy (also known as Significant Energy Users, or SEUs, in Navigator) and have a risk of significant deviation in energy performance. This support can be provided at any phase in Cycle 2 depending on how the facility has prioritized and scheduled the implementation of operational controls compared to other energy improvement opportunities. Support can include activities such as:





In Phase 1, participants should have at least included operational controls as either independent energy improvement opportunities or as a component of other existing energy improvement opportunities. Operational controls can be supported by a well-defined and implemented EMIS and some operational control opportunities may need to be implemented after EMIS implementation (if the participant is implementing an EMIS).

3.2.3 Participant Outcomes The learning goals and program activities are meant to help participants take specific actions to save energy and improve their energy management business practices. This section outlines the expected deliverables for participants in Phase 2. Details for each of these are covered in other sections. Note that these do not include M&V activities required by the M&V Guide.


Phase 2 Participant Outcomes 1. Identified gaps in the competencies of personnel who affect energy performance. 2. Identified actions to address competency gaps. 3. Developed business practices for Phase 2 tasks. 4. Implemented sufficient opportunities to achieve year 3 energy improvement targets. 5. Included IDSM in energy improvement opportunities. 6. IOU OPTION: Developed an EMIS Implementation Plan.


3.2.4 Program Deliverables Program deliverables, along with the participant deliverables, provide proof of the participant outcomes, which is critical for evaluation of the program. The following documents should be posted within 30 days from the end of Phase 2:

Phase 2 Program Deliverables 1. Customer Phase 2 Summary. 2. IDSM Analysis. 3. IOU OPTION: EMIS Implementation Plan.




Details on the program deliverables follow below.

1. Customer Phase 2 Summary. This should be a simple one to two-page document that provides a high-level summary of the customer’s accomplishments based on the Phase 2 Participant Outcomes. This is a deliverable from the implementation contractor to the IOU and does not need to be presented to the participant.

2. IDSM Analysis. This is a brief summary of the analysis completed for the participant and the result of the analysis (i.e. demand response added to opportunity register and scheduled for implementation in 6 months).

3. IOU OPTION: EMIS Implementation Plan. This is a report given to the participant. It should be based on the steps outlined in Natural Resources Canada EMIS manual. This is a deliverable from the implementation contractor to the participant and does not need to be presented to the IOU unless requested by the IOU or by an evaluation contractor.

3.2.5 Participant Deliverables Participant deliverables are documents participants share with the implementation contractor that help show the outcomes of the program. The following documents should be shared with the implementation contractor within 30 days from the end of Phase 2. These are the deliverables that are concerned with the program design, additional deliverables for measurement and verification (M&V) are discussed in the M&V Guide.

Phase 2 Participant Deliverables 1. Competency gaps identified. 2. Energy management business processes developed. 3. IOU OPTION: EMIS design decision.





3.3 Phase 3: Enhancing our energy management system Phase 3 and 4 focus on making sure the facility has a successful energy management system, with Phase 3 focusing on the foundational tasks, like objectives and targets, and Phase 4 focusing on feedback and improvement tasks such as management review and continual improvement.

Phase 3 consists of the third six months of Cycle 2. Below is a summary of the requirements for Phase 3.



Learning Goals Site Specific Activities Participant Outcomes Program Deliverables Participant Deliverables

1. Understand how the different elements of an EnMS work and what makes for a successful "system."

1. IDSM Analysis.11 1. Set annual energy improvement targets.

1. Customer Phase 3 Summary. 1. Energy opportunity action plans.

2. Review Year 3 energy performance, implemented opportunities, and existing opportunities to review and update Year 4 energy performance targets.

2. Treasure Hunt. 2.Developed action plans for opportunities that meet Year 4 energy performance targets.

2. Treasure Hunt Summary. 2. Energy management business processes developed.

3. Develop action plans for existing opportunities that meet Year 4 energy performance targets.

3. Action Plan Development Support.

3.Implemented sufficient opportunities to be on track to achieve Year 4 energy improvement targets.

3. IDSM Analysis.11

4. IOU OPTION: Understand how to implement the detailed EMIS Design

4. Business Practice Development Support.

4.Developed business practices for Phase 3 tasks.

4. IOU OPTION: EMIS Implementation Summary.

5. IOU OPTION: EMIS Implementation Support.

5.IOU OPTION: Implemented an EMIS.

6. Awareness, Competence, and Training Support.

7. Operational Control Support.11


11 Repeated from previous Phases




Phase 3 Learning Goals 1. Understand how the different elements of an EnMS work and what

makes for a successful "system" 2. Review Year 3 energy performance, implemented opportunities, and

existing opportunities to review and update Year 4 energy performance targets.

3. Develop action plans for existing opportunities that meet Year 4 energy performance targets.

4. IOU Option: Understand how to implement the detailed EMIS Design Table 15- Phase 3 Learning Goal Summary

Details on the learning goals are given below: 1. Understand how the different elements of an EnMS work and what makes for a

successful "system". Participants must understand that a successful energy management system relies on multiple interactive business practices that are based on the “plan-do-check-act” (PDCA) cycle. While through Cycle 1 and Phase 1 and 2 of Cycle 2, participants have touched on all these practices, Phase 3 and 4 learning goals focus on making sure participants understand why and how to embed enough of these practices into their approach so that they can manage and improve their energy performance continuously. Participants must understand that the “plan-do-check-act” cycle, also known as the Deming Cycle, is an ongoing cycle that repeats over time, embedding a process that reviews and analyzes progress and results so changes and improvements can be made.

2. Review Year 3 energy performance, implemented opportunities, and existing opportunities to review and update Year 4 energy performance targets. Participants should understand how to analyze their Year 3 energy performance, Year 3 implemented and identified opportunities, and other factors, such as corporate goals, to review and update, if necessary, their Year 4 energy performance targets. For some customers these targets might include various energy targets such as demand reduction, energy consumption reduction, reduction in overall energy spend, etc. For some customers, actions taken to reach these goals might include IDSM opportunities.



3. Develop action plans for energy improvement opportunities that meet Year 4 energy

performance targets. Participants should understand best practices in developing and managing action plans and why a properly defined action plan is important to ensure improvement opportunities are implemented. In addition, participants should develop plans for energy improvement opportunities that meet Year 4 energy performance targets. These action plans should be shared with the program.

4. IOU OPTION: Understand how to implement the detailed EMIS Design. Participants should understand the human and financial resources needed to move forward with the detailed EMIS Design and should have a clear sense of what role the implementation contractor will play in supporting the implementation and what, if any, financial incentives the IOU will provide for implementation.

3.3.2 Phase 3 Site Specific Activities and Support Similar to Cycle 1, the Cycle 2 design details activities that are expected to be implemented directly with each participant and support that is expected to be given to each participant. Below is a summary of the activities and support for Phase 3:

Table 16- Phase 3 Site Specific Activity Summary


3.3.2.1 IDSM Analysis Note: this activity is repeated from Phase 2 for completeness. Two of these activities should be implemented when needed in Cycle 2.

Throughout this cycle, two site-specific activities for IDSM analysis should be included, depending on participant-specific needs. These activities should be approximately 4 hours for each activity (or eight hours total) per participant, not including preparation time, although additional activities are at the discretion of each IOU. These analysis activities could include, but are not limited to:

Phase 3 Site Specific Activities and Support 1. IDSM Analysis 2. Treasure Hunt 3. Action Plan Development Support 4. Business Practice Development Support 5. IOU OPTION: EMIS Implementation Support 6. Awareness, Competence, and Training Support 7. Operational Control Support




a. Including existing or known IDSM opportunities in the opportunity register, b. Including IDSM opportunities when prioritizing energy improvement opportunities, such as

the prioritization exercise in the treasure hunt, c. Inviting appropriate IDSM experts to treasure hunts, or including targeted IDSM

opportunities in the treasure hunt, depending on available IOU resources. 2. Analysis of IDSM needs, which should include, depending on customer needs:



3.3.2.2 Treasure Hunt Note: this activity is repeated from Phase 2 for completeness. One Treasure Hunt should be conducted in Cycle 2 unless otherwise instructed by the IOU.

Similar to the IDSM analysis, the Treasure Hunt can be included in this or subsequent phases, depending on the needs of the participant. The main consideration for when to conduct the Treasure Hunt should be whether the participant has enough opportunities identified to meet their energy performance improvement targets and the process defined the by the participant in Phase 1 for Task 10- Improvement Opportunities. This process should have defined when to update the list of prioritized opportunities (opportunity register) as well as the methodology and criteria for identifying, prioritizing, and updating improvement opportunities. It is critical that the process be developed before the Treasure Hunt is conducted and that the Treasure Hunt follow the methodology defined by the participant so that the participant has a process they can follow in future Treasure Hunts. There should be one Treasure Hunt in Cycle 2, although additional Treasure Hunts are at the IOU’s discretion.

Whether to include IDSM energy improvement opportunities or to include additional resources for IDSM opportunities during (or outside of but coordinated with) the Treasure Hunt is highly recommended but at the IOU’s discretion based on their availability of resources and the customer’s needs. However, if IDSM opportunities are not included, the Treasure Hunt should include recommendations on seeking additional information on any IDSM opportunities that may apply to the participant or that the participant may be interested in.

A brief summary of the Treasure Hunt (Treasure Hunt Report) should be included in the Customer Phase 3 Summary deliverable if a Treasure Hunt was conducted in Phase 3.



3.3.2.3 Action Plan Development Support Action plans are meant to help the facility determine the steps needed to implement specific energy improvement opportunities to meet energy performance targets. The facility should develop action plans for all opportunities that are going to be implemented in Year 4, and that total to at least the Year 4 targets. The intent here is for the implementation contractor to support the participant as they develop these plans and ensure they are thorough enough to be successfully implemented and to successfully support the participant’s targets.

Support by the implementation contractor can include:

1. Review of existing action plan templates 2. Coordination of action plans with IOU resources 3. Review of energy saving calculations 4. Review of methods for verifying project results

Note that action plans are meant to be developed only for energy improvement opportunities that have been approved for implementation. The timing for selecting and approving which energy improvement opportunities are implemented depends on the participant’s budgetary approval process.


In phase 3, the business practices to be developed are those that define the energy management system. Those tasks are listed below (with 50001 Navigator task number preceding):

1. Optional: Task 1- Context of the organization 2. Optional: Task 2- People and legal requirements 3. Task 3- Scopes and Boundaries 4. Task 5- Energy policy 5. Optional: Task 7- Risks to EnMS success 6. Task 16- Documenting the EnMS



Although concepts from some tasks, like Task 3- Scopes and Boundaries, were introduced in Cycle 1, it is important that in Cycle 2 the concepts be turned into on-going business practices and not seen as a one-off event. The business practices should have a continuous approach. Optional tasks do not need to be introduced in Cycle 2 but can be introduced if the implementer feels it is important or that the participant is ready for the task.



3.3.2.5 IOU OPTION: EMIS Implementation Support The IOU, at its discretion, can provide technical or financial support in the implementation of the EMIS. This support can help the participant ensure the EMIS is implemented as designed and has the intended outcomes. Technical support can include but is not limited to:

1. Reviewing quotes 2. Developing training on the EMIS 3. Reviewing reports or data 4. Providing guidance or advice

While the detailed design includes an implementation plan and detailed costs, it is up to the IOU’s discretion

3.3.2.6 Awareness, Competence, and Training Support This support activity is one of the most important in Cycle 2 as it helps ensure that staff throughout the facility, including the energy and management teams, have the context and competence to support the objectives and targets of the energy management system. Key outcomes in this phase include conducting a review of the potential gaps in competencies of personnel who affect energy performance, and developing plans to fill those gaps. Through this support activity, the implementation contractor and IOU will play a key role in helping find or develop actions, such as existing or customized training courses, that might help fill competency gaps. This support is introduced in Phase 2 but can be provided during any of the subsequent phases depending on the participant’s needs.








In Phase 1, participants should have at least included operational controls as either independent energy improvement opportunities or as a component of other existing energy improvement opportunities. Operational controls can be supported by a well-defined and implemented EMIS and some operational control opportunities may need to be implemented after EMIS implementation (if the participant is implementing an EMIS).

3.3.3 Participant Outcomes The learning goals and program activities are meant to help participants take specific actions to save energy and improve their energy management business practices. This section outlines the expected deliverables for participants in Phase 3. Details for each of these are covered in other sections. Note that these do not include M&V activities required by the M&V Guide.


Phase 3 Participant Outcomes 1. Set annual energy improvement targets. 2. Developed action plans for opportunities that meet 2nd year energy improvement

targets 3. Implemented sufficient opportunities to be on track to achieve Year 4 energy

improvement targets. 4. Developed business practices for Phase 3 tasks. 5. IOU OPTION: Implemented an EMIS.




3.3.4 Program Deliverables Program deliverables, along with the participant deliverables, provide proof of the participant outcomes, which is critical for evaluation of the program. The following documents should be posted within 30 days from the end of Phase 3:

Phase 3 Program Deliverables 1. Customer Phase 3 Summary. 2. IDSM Analysis. 3. IOU OPTION: EMIS Implementation Summary.



1. Customer Phase 3 Summary. This is a simple one to two-page document that provides a high-level summary of the customer’s accomplishments based on the Phase 3 Participant Outcomes. This is a deliverable from the implementation contractor to the IOU and does not need to be presented to the participant.


3. IOU OPTION: EMIS Implementation Summary. This is a brief summary describing the results of the implementation of the EMIS by the participant. This is a deliverable from the implementation contractor to the IOU and does not need to be presented to the participant.

3.3.5 Participant Deliverables Participant deliverables are documents participants share with the implementation contractor that help show the outcomes of the program. The following documents should be shared with the implementation contractor within 30 days from the end of Phase 3. These are the deliverables that are concerned with the program design, additional deliverables for measurement and verification are discussed in the M&V Guide.

Phase 3 Participant Deliverables 1. Energy opportunity action plans. 2. Energy management business processes developed.





3.4 Phase 4: Continuous Improvement and Next Steps Phase 4 wraps up the participants journey in Cycle 2 and focuses on feedback and improvement tasks such as management review and continual improvement. This phase also wraps up the different site specific activities and support as well as introduces Cycle 3 so that participants can choose if they would like to continue their participation with the SEM program.

Phase 4 consists of the fourth and final six months of Cycle 2. Below is a summary of the requirements for Phase 4.



Learning Goals Site Specific Activities Participant Outcomes Program Deliverables Participant Deliverables

1. Understand the business practices that sustain and improve an energy management system and why they are important.

1. IDSM Analysis.12 1. Decided whether or not to participate in Cycle 3.

1. Customer Phase 4 Summary. 1. Energy management business processes developed.

2. Understand how to conduct a review of their current Energy Management System.

2. Treasure Hunt.12 2. Implemented sufficient opportunities to achieve Year 4 energy improvement targets.


3. Understand how to monitor and measure energy performance.



3. IDSM Analysis.12

4. Understand Cycle 3 and decide if to participate

4. Business Practice Development Support.

5. Awareness, Competence, and Training Support.12

6. Operational Control Support.12


12 Repeated from previous Phases.




Phase 4 Learning Goals 1. Understand the business practices that sustain and improve an energy management

system and why they are important. 2. Understand how to conduct a review of their current Energy Management System. 3. Understand how to monitor and measure energy performance. 4. Understand the SEM program’s Cycle 3 and decide if to participate.


Details on the learning goals are given below: 1. Understand the business practices that sustain and improve an energy management system

and why they are important. Similar to Phase 3, Phase 4 focuses on helping participants understand that a successful energy management system relies on multiple interactive business practices that are based on the “plan-do-check-act” (PDCA) cycle. Through Cycle 1 and Phase 1 and 2 of Cycle 2, participants have touched on all these practices with a focus on the “plan” and “do” components, Phase 4 focuses on the “check” and “act” components to reinforce the goal of continuous improvement. Participants should understand that the business practices covered in this last phase are meant to help track and manage trends in both the energy performance and the effectiveness of the energy management system so that action can be taken where processes are not working as expected or where they can be improved.

2. Understand how to conduct a review of their current Energy Management System. Participants should be reminded that the energy management system they have been working on is based on ISO 50001 and on the 50001 Navigator and that they can use 50001 Navigator to review the work they have done. Although the program created the initial analysis of their EnMS, participants should be shown how to analyze their own practices using the provided tool so they can analyze their EnMS with minimal program support in the future.

3. Understand how to monitor and measure energy performance. At this point in the program, participants should understand the process the program has been using to calculate energy performance based on the process described in the M&V Guide. They should understand the process and analyze its usefulness for internal tracking of energy performance.

4. Understand the SEM program’s Cycle 3 and decide if to participate. Participants should understand the structure and goals of Cycle 3 and decide if they want to participate, making a formal commitment by the end of Cycle 2.



Participants that do not want to continue into Cycle 3 should understand options available to them if they want to continue working on their EnMS or their existing energy improvement opportunities, including IOU programs and resources available to them at the end of Cycle 2.

3.4.2 Phase 4 Site Specific Activities and Support Similar to the Cycle 1 design, the Cycle 2 design specifies program activities that are implemented directly with one participant.

Phase 4 Site Specific Activities and Support 1. IDSM Analysis 2. Treasure Hunt 3. Energy Management System Analysis 4. Business Practice Development Support 5. Awareness, Competence, and Training Support 6. Operational Control Support

Table 22- Phase 4 Site Specific Activity Summary


3.4.2.1 IDSM Analysis Note: this activity is repeated from Phase 2 for completeness. Two of these activities should be implemented when needed in Cycle 2.

Throughout this cycle, two site-specific activities for IDSM analysis should be included, depending on participant-specific needs. These activities should be approximately 4 hours for each activity (or eight hours total) per participant, not including preparation time, although additional activities are at the discretion of each IOU. These analysis activities could include, but are not limited to:


a. Including existing or known IDSM opportunities in the opportunity register, b. Including IDSM opportunities when prioritizing energy improvement opportunities, such as the

prioritization exercise in the treasure hunt, c. Inviting appropriate IDSM experts to treasure hunts, or including targeted IDSM opportunities in

the treasure hunt, depending on available IOU resources. 2. Analysis of IDSM needs, which should include, depending on customer needs:





3.4.2.2 Treasure Hunt Note: this activity is repeated from Phase 2 for completeness. One Treasure Hunt should be conducted in Cycle 2 unless otherwise instructed by the IOU.

Similar to the IDSM analysis, the Treasure Hunt can be included in this or subsequent phases, depending on the needs of the participant. The main consideration for when to conduct the Treasure Hunt should be whether the participant has enough opportunities identified to meet their energy performance improvement targets and the process defined the by the participant in Phase 1 for Task 10- Improvement Opportunities. This process should have defined when to update the list of prioritized opportunities (opportunity register) as well as the methodology and criteria for identifying, prioritizing, and updating improvement opportunities. It is critical that the process be developed before the Treasure Hunt is conducted and that the Treasure Hunt follow the methodology defined by the participant so that the participant has a process they can follow in future Treasure Hunts. There should be one Treasure Hunt in Cycle 2, although additional Treasure Hunts are at the IOU’s discretion.

Whether to include IDSM energy improvement opportunities or to include additional resources for IDSM opportunities during (or outside of but coordinated with) the Treasure Hunt is highly recommended but at the IOU’s discretion based on their availability of resources and the customer’s needs. However, if IDSM opportunities are not included, the Treasure Hunt should include recommendations on seeking additional information on any IDSM opportunities that may apply to the participant or that the participant may be interested in.

A brief summary of the Treasure Hunt (Treasure Hunt Report) should be included in the Customer Phase 4 Summary deliverable if a Treasure Hunt was conducted in Phase 4.

3.4.2.3 Energy Management System Analysis An analysis of the participant’s energy business practices is to be done by the implementation contractor, with participation from the participant, using a tool based on 50001 Ready. This tool lists out all the Navigator tasks and actions and allows the implementation contractor to make a judgement call on whether the participant has completed that action. The tool is included in the design guide documents13 and is to be completed by the implementation contractor with input from the participant. Although the tool assigns a numerical value based on the results, there is no expected or required value and improvement in the participant’s score is what is important. Individual scores should be reported to the IOU as well as the result of all participants’ combined scores and the change in score between Phase 1 and Phase 4. The individual analysis should be shared with the participant as a snapshot of where their EnMS is today.

13 50001 Ready Playbook Task Management Checklist v0.1.xlsx



At the IOUs discretion, IOUs have the option to provide a customer-facing, facilitated assessment of the participant’s energy management system. In Cycle 1 this was called an Energy Management System assessment. This analysis should be completed near the end of Phase 4 and provides a baseline for Cycle 3 engagement.

Note: Although changes to Cycle 1 are outside the scope of this document, we recommend using this same analysis tool and reporting the results in Cycle 1 to allow for consistent tracking of progress of a participant’s EnMS throughout their engagement in the SEM program.


In phase 4, the business practices to be developed are those that help provide feedback loops for the energy management system. The business practices are listed below (with 50001 Navigator task number preceding):

1. Optional: Task 20- Monitoring and measurement of the EnMS 2. Task 21- Monitoring and measurement of energy performance improvement 3. Optional: Task 22- Internal audit 4. Task 23- Management review 5. Optional: Task 24- Corrective actions 6. Task 25- Continual improvement

Although concepts from some tasks, like Task 21- Monitoring and measurement of energy performance improvement, were introduced in Cycle 1, it is important that in Cycle 2 the concepts be turned into on-going business practices and not seen as a one-off event. The business practices should have a continuous approach. Optional tasks do not need to be introduced in Cycle 2 but can be introduced if the implementer feels it is important or that the participant is ready for the task.





3.4.2.5 Awareness, Competence, and Training Support Note: this activity is repeated from Phase 3 for completeness. It should be implemented as needed in Phase 3 and 4.

This support activity is one of the most important in Cycle 2 as it helps ensure that staff throughout the facility, including the energy and management teams, have the context and competence to support the objectives and targets of the energy management system. Key outcomes in this phase include conducting a review of the potential gaps in competencies of personnel who affect energy performance, and developing plans to fill those gaps. Through this support activity, the implementation contractor and IOU will play a key role in helping find or develop actions, such as existing or customized training courses, that might help fill competency gaps. This support is introduced in Phase 2 but can be provided during any of the subsequent phases depending on the participant’s needs.






In Phase 1, participants should have included operational controls as either independent energy improvement opportunities or as a component of other existing energy improvement opportunities. Operational controls can be supported by a well-defined and implemented EMIS and some operational control opportunities may need to be implemented after EMIS implementation (if the participant is implementing an EMIS).



3.4.3 Participant Outcomes The learning goals and program activities are meant to help participants take specific actions to save energy and improve their energy management business practices. This section outlines the expected outcomes for participants in Phase 4. Details for each of these are covered in other sections. Note that these do not include M&V outcomes required by the M&V Guide.


Phase 4 Participant Outcomes 1. Decided whether or not to participate in Cycle 3. 2. Implemented sufficient opportunities to achieve Year 4 energy improvement

targets. 3. Developed business practices for Phase 4 tasks.


3.4.4 Program Deliverables Program deliverables, along with the participant deliverables, provide proof of the participant outcomes, which is critical for evaluation of the program. The following documents should be provided to the IOU within 30 days from the end of Phase 4. Timely submittal by the implementation contractor, and review by the IOU, of deliverables helps ensure that any issues are caught and discussed at an appropriate time. Note that these do not include deliverables required by the California Industrial SEM M&V Guide (M&V Guide).

Phase 4 Program Deliverables 1. Customer Phase 4 Summary. 2. Energy Management System Analysis. 3. IDSM Analysis.



1. Customer Phase 4 Summary. This is a simple one to two-page document that provides a high-level summary of the customer’s accomplishments based on the Phase 4 Participant Outcomes. This is a deliverable from the implementation contractor to the IOU and does not need to be presented to the participant.

2. Energy Management System Analysis. This is a summary of the EnMS in place at each facility and of the all the facilities in aggregate, including the results of both EnMS Analysis completed. The summary will be developed by the implementation contractor for each participant using the 50001 Ready Playbook Task Management Checklist spreadsheet provided as part of the design guide documents. This should be completed late in Phase 4 to provide a final snapshot of the participant’s EnMS. This is a deliverable from the implementation contractor to the IOU. The participant should receive a summary of the analysis for their facility.




3.4.5 Participant Deliverables Participant deliverables are documents participants share with the implementation contractor that help show the outcomes of the program. The following documents should be shared with the implementation contractor within 30 days from the end of Phase 4. These are the deliverables that are concerned with the program design, additional deliverables for measurement and verification (M&V) are discussed in the California Industrial SEM M&V Guide (M&V Guide).

Phase 4 Participant Deliverables 1. Energy management business processes developed. 2. Decision to continue or not to Cycle 3.





4 Annex

4.1 Annex A- Sample Participant Phase Summaries 4.1.1 Sample Phase 1 Participant Summary

1. Decisions: a. We choose our level of energy management system to be:

� Base SEM program requirements

� 50001 Ready

� 50001 Certification b. Our energy performance targets are:

� Year 3:

� Year 4: c. We have reviewed the EMIS audit and have decided to: d. We have reviewed our performance indicators and baselines and decided to:

� Use those that the program recommended

� Develop our own 2. Accomplishments:

a. We have developed action plans for energy improvement opportunities adding up to:

� Year 3:

� Year 4: b. We have implemented energy improvement opportunities that add up to:

� Phase 1: c. We have planned to implement the following operational controls opportunities:

� Phase 1 d. We have developed internal processes for the following tasks

� Phase 1: 3. Learning:

a. We understand:

� What “IDSM” is and why there is a loading order

� The benefits of “IDSM” opportunities and how our facility might take advantage of them b. We are interested in the following IDSM opportunities:

� Time of Use

� Demand Response

� Self-Generation

� Other: 4. Sharing of information and data:

a. We have provided:

� Copies of processes for any energy management business practices

� Copies of any energy improvement opportunity action plans



4.1.2 Sample Phase 2 Participant Summary 1. Decisions:

a. OPTIONAL: We have reviewed the EMIS Design and have decided to: 2. Accomplishments:

a. We have identified and have plans to address the following competency gaps: b. We have developed internal processes for the following tasks

� Phase 1:

� Phase 2: c. We have implemented energy improvement opportunities that add up to:

� Phase 1:

� Phase 2: d. We have identified additional prioritized energy improvement opportunities, through a Treasure

Hunt, adding up to: e. We have identified and analyzed the following IDSM opportunities:

� Phase 2: f. We have planned to implement the following operational controls opportunities:

� Phase 1:


a. We understand:

� The impact that design processes can have on energy performance and what steps we can take to mitigate the impact.

� The impact that procurement processes can have on energy performance and what steps we can take to mitigate the impact.

4. Sharing of information and data: a. We have provided:

� Copies of processes for any energy management business practices 5. Treasure Hunt Summary:

a. Who attended: b. When it occurred: c. How many opportunities were identified: d. What areas or systems were reviewed:



4.1.3 Sample Phase 3 Participant Summary 1. Accomplishments:

a. We have developed internal processes for the following tasks

� Phase 1:

� Phase 2:

� Phase 3: b. We have implemented energy improvement opportunities that add up to:

� Phase 1:

� Phase 2:

� Phase 3: c. We have identified additional prioritized energy improvement opportunities, through a Treasure

Hunt, adding up to: d. We have identified and analyzed the following IDSM opportunities:

� Phase 2:

� Phase 3: e. We have planned to implement the following operational controls opportunities:

� Phase 1:

� Phase 2:


a. We understand:

� How the different elements of an EnMS work and how they make for a successful “system”.

� OPTIONAL: How to implement the detailed EMIS design. 3. Sharing of information and data:



� Copies of any energy improvement opportunity action plans 4. Treasure Hunt Summary:




4.1.4 Sample Phase 4 Participant Summary 1. Decisions:

a. We understand what Cycle 3 entails and have decided to: 2. Accomplishments:

a. We have developed internal processes for the following tasks

� Phase 1:

� Phase 2:

� Phase 3:

� Phase 4: b. We have implemented energy improvement opportunities that add up to:

� Phase 1:

� Phase 2:

� Phase 3:

� Phase 4: c. We have identified additional prioritized energy improvement opportunities, through a Treasure

Hunt, adding up to: d. We have identified and analyzed the following IDSM opportunities:

� Phase 2:

� Phase 3:

� Phase 4: e. We have planned to implement the following operational controls opportunities:

� Phase 1:

� Phase 2:

� Phase 3:


a. We understand:

� The business practices that sustain and improve an EnMS and why they are important.

� How to conduct a review of our current energy management system. 4. Sharing of information and data:



� Copies of any energy improvement opportunity action plans 5. Treasure Hunt Summary:




4.2 Annex B- Cycle 2 Recommended Task and Action Implementation Summary Note: this is taken directly from US DOE’s 50001 Ready Navigator without change.14 Any reference to a “50001 Ready EnMS” or a “50001 Ready

system” should be interpreted as an “EnMS” for the purposes of the SEM Program.

Section 1: Context of the Organization Tasks Actions Requirement

Task 1: An EnMS and Your Organization.

We determine the strategic issues that affect our ability to

improve energy performance and achieve the goals of our

50001 Ready energy management system

Identify the external and internal strategic issues that affect

your organization’s ability to improve its energy performance

and achieve the intended outcomes of the energy management system (EnMS).

Optional

Record this information. Optional

Task 2: People and Legal Requirements Affecting the

EnMS.

We determine the interested parties and energy-related

legal and other requirements relevant to our energy

performance and the energy management system. At

defined intervals, we review these requirements and

evaluate our compliance with them.

Identify and record the interested parties relevant to your

organization’s energy performance and energy management

system (EnMS).

Optional

Determine the needs and expectations of these interested

parties as they relate to your organization’s EnMS.

Optional

Identify the applicable legal and other requirements related to

energy.

Optional

Implement a process to periodically evaluate compliance with

the identified requirements.

Optional

Task 3: Scope and Boundaries.

We have documented and approved the scope and

boundaries of our 50001 Ready energy management

system.

Consider the strategic issues and requirements identified as part

of Task 1: An EnMS and Your Organization to determine the

scope and boundaries of the energy management system

(EnMS).

Optional

Develop and document an EnMS Scope and Boundaries

Statement.

Required

14 Navigator text is used by permission under the US Department of Energy and Berkely Lab’s Creative Commons license, available at https://creativecommons.org/licenses/by/4.0/ ; Navigator is available at https://navigator.lbl.gov



Section 2: Leadership Tasks Actions Requirement

Task 4: Management Commitment

Our top management demonstrates leadership and

commitment to continual improvement of energy

performance and the effectiveness of the 50001 Ready system.

Secure commitment from top management to continual

improvement of energy performance and the development and

use of a 50001 Ready system.

Required

Brief top management on their energy management system

(EnMS) leadership responsibilities.

Required

Plan for how top management will meet their responsibilities. Required

Task 5: Energy Policy We have an energy policy statement, which has been

approved by top management and communicated across

the organization.

Draft your energy policy statement. Required

Have top management approve the energy policy. Required

Incorporate the energy policy into your energy management

system (EnMS) awareness program (see Task 15: Awareness and

Communication).

Required

Task 6: Energy Team and Resources

We have an energy team authorized by top management

to oversee the energy management system.

Responsibilities and authorities are assigned and

communicated, and processes are in place to identify and

provide resources.

Form an energy team and obtain authority from top

management for it to oversee the energy management system

(EnMS) and carry out assigned responsibilities.

Required

Document who the energy team leader is. Recommended

Schedule regular energy management team meetings. Required

Assign and communicate EnMS responsibilities and authorities

within the organization.

Recommended

Address and communicate responsibilities for other relevant

roles.

Recommended

Identify, communicate to top management, and allocate the

resources needed for the EnMS.

Recommended



Section 3: Planning

Tasks Actions Requirement

Task 7: Risks to EnMs Success

We determine strategic risks and opportunities to ensure

that our organization can achieve the intended outcomes

of our energy management system and energy

performance improvement. We plan and implement

actions to address these risks and opportunities and

evaluate the effectiveness of the actions taken.

Identify the risks and opportunities pertaining to the ability of

your energy management system (EnMS) to achieve its intended

outcomes.

Optional

For each of the identified risks and opportunities, plan and

implement actions to address them using the processes of the

EnMS, and record this information.

Optional

Plan for how the actions taken will be evaluated for

effectiveness. Perform an effectiveness evaluation.

Optional

Task 8: Energy Data Collection and Analysis

We identify our energy sources and energy uses, have a

data collection plan in place, and collect related energy and relevant variable data. We ensure the accuracy and

repeatability of measurements. We analyze our energy use

and consumption data.

Identify all energy sources that are consumed within the scope

and boundaries.

Required

Make a list of energy uses within the scope and boundaries. Required

Identify relevant variables that potentially affect the energy

consumption of significant energy uses (SEUs), and would help

create meaningful energy performance indicators (EnPIs) and energy baselines (EnBs). If seeking U.S. DOE 50001 Ready

recognition identify relevant variables that potentially affect the

energy consumption of the scope and boundaries of your 50001

Ready EnMS.

Required

Develop and implement a data collection plan based upon the

data needs, including the key characteristics of ISO 50001.

Required

Ensure measurements and metering are conducted accurately

and are repeatable

Required

Determine appropriate analysis methods, and use them to

understand and monitor energy use and energy consumption.

Required



Task 9: Significant Energy Uses (SEUs)

We determine our significant energy uses (SEUs), identify

and monitor their relevant variables and energy

performance, and identify the persons that affect the

SEUs. We have a process to review and update SEU data

and related information, including our methods and

criteria to determine that an energy use should be an SEU.

Identify the energy uses that consume the most energy within

your boundaries.

Required

Identify factors and persons that affect the energy consumption

of identified energy uses.

Required

Establish a selection criteria for identifying which of these

energy uses should be a significant energy use (SEU).

Recommended

Determine SEU energy performance based upon energy

consumption and relevant variables is appropriate.

Optional

Review the SEU selection criteria as part of the SEU update process.

Recommended

Task 10: Improvement Opportunities

We identify and prioritize energy performance

improvement opportunities, and have processes in place

to update them.

Develop and document a methodology and criteria for how your

organization will identify, prioritize, and update energy

performance improvement opportunities.

Required

Apply the methodology and criteria you developed to identify,

prioritize, and update energy performance improvement

opportunities.

Required

Update the list of prioritized improvement opportunities at

specific intervals and when major changes in sites, equipment, systems, or energy-using processes take place.

Required



Task 11: Energy Performance Indicators and Energy

Baselines

We identify energy performance indicators and energy

baselines to measure and monitor our energy performance

and to demonstrate energy performance improvement.

We have a methodology for determining and updating

them.

Develop one or more energy performance indicators (EnPIs) for

your organization. If relevant variables significantly affect energy

consumption, normalize the EnPIs.

Required

Develop an energy baseline (EnB) for EnPI in order to later

determine energy performance improvement.

Required

Communicate proposed EnPIs and EnBs to top management so

they can ensure the EnPIs and EnBs are appropriate for the

organization.

Required

Record and regularly review the method used to determine and

update EnPIs, and establish the conditions under which

adjustments to the baseline(s) will be made.

Required

Compare EnPI values to their respective EnBs on a regular basis. Required

Implement a process for ongoing monitoring, measurement,

and analysis of your EnPIs, EnBs, and energy performance

improvements.

Required

Task 12: Objectives and Targets

We establish objectives and energy performance targets.

Develop and record your organization’s objectives and energy

targets.

Required

Obtain top management’s approval of the objectives and energy

targets and communicate appropriately.

Required

Communicate the energy objectives and energy targets

appropriately to your organization

Required



Task 13: Action Plans for Continual Improvement

We develop action plans and implement improvement

projects to achieve our objectives and energy targets.

Use your prioritized opportunities from Task 10: Improvement

Opportunities to select projects for implementation.

Required

Apply any applicable criteria set by your organization to justify

and gain approval of the project.

Required

Develop action plans for meeting your organization’s objectives

and energy targets identified in Task 12: Objectives and Targets.

Required

Communicate expectations to relevant positions and review

action plan progress.

Required



Section 4: Support


Task 14: Competence and Training

We ensure the competence of personnel whose work

affects our energy performance and energy management

system. We evaluate the effectiveness of actions taken to

acquire competencies. We retain appropriate records of

competencies and training.

Determine necessary competencies for personnel and evaluate their current competencies.

Required

Identify any gaps in the competencies of personnel whose work

affects energy performance and the energy management

system (EnMS), and conduct training to address competency

gaps.

Required

Evaluate the effectiveness of the actions taken. Recommended

Retain records of competence and related actions. Optional

Task 15: Awareness and Communication

Our personnel and on-site contractors are aware of our

energy policy and their energy-related roles and

responsibilities. We have processes in place for internal

and any applicable external energy management system

communications.

Develop and deliver an initial energy management system

(EnMS) communication from top management that includes the

importance of energy management and the organization’s

energy policy.

Required

Develop the details for EnMS awareness training for specific

personnel or departments.

Required

Plan and implement awareness training. Required

Conduct awareness training and retain records. Required

Plan and implement internal communication processes of the

EnMS, including a suggestion system.

Required

Plan and implement external EnMS communication processes. Optional



Task 16: Documenting the EnMS

We document information we determined is needed to

ensure energy management system effectiveness and

demonstrate energy performance improvement, as well as

that suggested by the guidance of the 50001 Ready

Navigator. We have processes in place for creating,

updating, and controlling our documented information.

Ensure that your energy management system (EnMS) includes

the documented information suggested by the guidance of the

50001 Ready Navigator for the processes implemented to this

point. As you continue EnMS implementation, add the other

required documented information.

Recommended

Determine what additional documented information you need

to ensure the effectiveness of the EnMS and to demonstrate

energy performance improvement.

Required

List your EnMS documents, assign document owners and

document approvers, and define the relevant document

controls. Make document owners responsible for conformance

with the controls for the documented information to be

maintained (i.e., documents).

Recommended

List your EnMS records, assign record owners, and define the

relevant record controls. Make record owners responsible for

conformance with the controls for documented information to

be retained (i.e., records).

Optional

If your organization has existing processes for controlling

documents and records, customize them as necessary to meet

the documentation needs for your EnMS. If your organization

has an existing records policy, make sure that the controls

implemented for EnMS records are consistent with the

requirements of that policy.

Recommended



Section 5: Operation


Task 17: Operational Controls

We plan and control the processes related to our

significant energy uses (SEUs) and action plans, and set

operation and maintenance criteria where there are risks

of significant deviations in energy performance. We

operate the SEU and action-plan related processes in accordance with the criteria and communicate the criteria

to relevant personnel. We control planned changes, along

with outsourced processes related to SEUs.

Create a significant energy use (SEU) operating criteria worksheet and operational controls checklist to determine and

set the required criteria and controls for each significant energy

use.

Required

Ensure critical factors affecting energy performance are known

and communicated to responsible personnel.

Required

Ensure that the operational and maintenance control sections of

your action plans have been completed and implemented.

Required

Operate and maintain sites, equipment, systems, or processes

associated with your SEUs to meet the determined criteria.

Required

Establish processes to control planned changes affecting

operational and maintenance criteria or controls.

Recommended

Control outsourced SEUs or processes related to SEUs. Recommended

Task 18: Energy Considerations in Design

We consider energy performance improvement

opportunities and operational controls when designing

new, modified, or renovated sites, equipment, systems,

and processes

Identify the sites, equipment, systems, and processes that can

have significant impact on energy performance.

Recommended

Incorporate consideration of energy opportunities and

operational controls in design projects.

Recommended

Include results of energy performance considerations in

specification, design, and procurement activities, where

applicable.

Optional

Retain records of the results of design activities related to

energy performance.

Optional



Task 19: Energy Considerations in Procurement

We establish energy performance criteria spanning the

operating life for purchases affecting energy performance,

inform suppliers that this is a factor in procurement, and

define and use specifications for energy supply purchases.

For purchases related to significant energy uses (SEUs), clearly

identify any energy performance-related requirements.

Communicate these requirements to suppliers and/or service

providers, and inform them that energy performance is part of

the evaluation criteria.

Recommended

Evaluate your organization’s current procurement processes for

items that can significantly impact energy performance.

Recommended

Determine and take any needed actions to adjust existing

procurement processes to meet energy management system

(EnMS) requirements.

Recommended

Develop life cycle criteria for specific types of procurement

activities if you do not have them already.

Recommended

Develop and communicate specifications for the purchase of

energy supply and ensuring the energy performance of procured

equipment and services.

Optional

Determine if any specifications for the purchase of energy

supplies are applicable to ensure the energy performance of

equipment and services purchased.

Optional



Section 6: Performance Evaluation


Task 20: Monitoring and Measurement of the EnMS

We monitor trends in energy management system (EnMS)

performance and evaluate the effectiveness of the EnMS in

achieving intended outcomes and planned results. The

methods used, the frequency of the monitoring, and when

the results are analyzed and evaluated are defined.

Determine what data or information is needed to establish trends in energy management system (EnMS) performance,

including trends in nonconformities, corrective actions, and

results in monitoring and measurement, internal and external

audits, and evaluations of compliance with applicable energy-

related legal and other requirements.

Optional

Determine what data or information is needed to monitor,

measure, analyze, and evaluate the results of the EnMS and its effectiveness as related to the intended outcomes of your EnMS

and the strategic goals and priorities of your organization.

Optional

Determine the methods to be used, when the monitoring and

measurement will be done, and when the results will be

analyzed and evaluated.

Optional

Implement the monitoring and measurement analysis of EnMS

performance and the evaluation of EnMS effectiveness.

Optional



Task 21: Monitoring and Measurement of Energy Performance Improvement

We monitor and measure the key characteristics of

processes that affect our energy performance. We define

the methods used, the frequency of the monitoring and

measurement, and when the results are analyzed and

evaluated. We evaluate our energy performance

improvement and investigate and respond to significant

deviations in energy performance.

Determine what needs to be monitored and measured for

energy performance, including the key characteristics of

operations affecting energy performance. Use the data and

information you generated in the energy review, energy data

collection plan, analysis of significant energy uses (SEUs), your

energy performance indicators (EnPIs), and energy baselines

(EnBs).

Required

For each datum/metric, define the method used for monitoring,

measuring, analysis, and evaluation. Define how often and when

the results are to be analyzed and evaluated.

Required

Implement all needed monitoring, measurement, and analysis if

not already in place from prior Navigator tasks.

Required

Evaluate your organization’s energy performance by comparing

EnPI values to the corresponding EnB.

Required

For each performance metric in the energy measurement plan,

define the criteria or parameters for a significant deviation in

energy performance.

Required

Establish a process for investigating and responding to such

deviations and for retaining records of the results.

Recommended

Train the appropriate personnel on how to identify and respond

to significant deviations in energy performance.

Recommended

Record results from monitoring and measurement. Recommended



Task 22: Internal Audit

We conduct internal audits of the 50001 Ready energy

management system at specified intervals and report the

results to relevant management. We identify trends in

internal audit results for consideration in management

review.

Appoint an energy management system (EnMS) internal audit

program manager.

Optional

Develop a documented internal audit procedure that addresses

the responsibilities, planning, and conducting of EnMS internal

audits, as well as the reporting of audit results.

Optional

Identify personnel to serve as EnMS internal auditors and train

them on 50001 Ready Navigator EnMS guidance (or optionally

ISO 50001 requirements and/or internal auditing of ISO 50001

including auditing of energy performance improvement), and

your internal audit procedure.

Optional

Conduct regularly scheduled EnMS internal audits to identify

areas of success and areas in need of improvement.

Optional

Record the results of your organization’s internal audits. Optional

Ensure that internal audit results are reported to relevant

management.

Optional



Task 23: Management Review

Top management periodically reviews the 50001 Ready

energy management system and our organization’s energy

performance to ensure its continuing suitability, adequacy,

and effectiveness.

Define the intervals at which top management will review the

energy management system (EnMS) and energy performance.

Required

Identify who must participate in the management review. Required

Compile the relevant data and information (inputs) needed for

the management review and prepare this information for

presentation.

Required

Conduct management reviews that address all required inputs

and outputs.

Required

Implement the decisions and actions (outputs) of management

reviews.

Required

Determine if the EnMS continues to be suitable, adequate,

effective, and aligned with your organization’s strategic

direction.

Optional

Maintain a record of the management reviews. Optional



Section 7: Improvement


Task 24: Corrective Actions

We identify nonconformities and other problems in the

50001 Ready energy management system and take

appropriate corrective action.

Develop and implement a process for taking corrective action at your organization.

Optional

Define roles, responsibilities, and authorities for the various

steps in the corrective action process.

Optional

Train employees on the types of problems and nonconformities

to be addressed through implementing the corrective action

process.

Optional

Task 25: Continual Improvement

We have a 50001 Ready energy management system and

continually improve its processes and interactions. We

continually improve the suitability, adequacy and

effectiveness of our energy management system. We

achieve and demonstrate continual energy performance

improvement.

Check that processes are in place for reviewing and updating

specific parts of the energy management system (EnMS) on a

regular basis and that the relevant decisions on “how,” “when,”

and “who” are made and implemented.

Recommended

Confirm that the needed connections between the processes of

the EnMS and how the organization manages change are

present.

Optional

Review processes for integrating EnMS requirements into the

organization’s business operations and practices.

Recommended

Confirm that top management promotes continual

improvement as part of organizational culture and meets and

demonstrates its responsibilities

Recommended

Ensure you have processes in place to continually improve the

EnMS and energy performance.

Optional