One2Five Energy Implementation Guidelines EXAMPLE VERBIAGE TO UTILIZE IN CUSTOMER ACTION PLANS (CONTENT TO BE TAILORED TO MEET WITH YOUR CUSTOMER’S INDIVIDUAL NEEDS) 1.1DEMONSTRATED CORPORATE COMMITMENT One2Five Implementation Prepare and arrange for an executive-level officer to sign a policy containing specific goals and targets for improving energy performance and reducing energy costs. Develop a draft policy with input from relevant staff, to foster a sense of ownership for energy management (see example draft policy below). 1. Finalize and sign the policy following feedback from stakeholders. 2. Communicate the policy to staff by the management sponsor responsible for the policy. 3. Identify agenda items to include on executive meeting (energy KPIs etc). 4. Identify an appropriate executive/board meeting (e.g. monthly management / board meeting) to discuss energy and add agenda items to the agenda. EXAMPLE ENERGY POLICY As a part of XYZ Company’s commitment to continuously improve our environmental performance we will strive to improve energy management within our organization and work towards best practice where cost-effective. We aim to improve energy management in order to protect the environment, reduce operating costs and reduce the consumption of fossil fuels. OBJECTIVES To achieve this, we will: Ensure that energy efficiency considerations are included in all aspects of our business planning and operation, consistent with sound business management practices and our responsibilities as a corporate citizen, Strive to continually improve energy efficiency within our business by conserving the use of energy in our operations, Set and use energy efficiency objectives and targets to drive performance improvements, Engage and educate staff and business partners in energy efficiency, Purchase energy at the most effective cost and reduce where possible the use of fossil fuels through the use of on-site and renewable energy, Implement monitoring and reporting procedures to communicate our performance internally and to relevant external stakeholders and interested parties, Strive to continuously improve our energy efficiency performance and to reduce our environmental impacts through regular review of our activities. Include where practical, specific goals (for example) “to minimize the use of this natural resource, we aim to reduce consumption by XX kWh/ft2 within the next three years” RESPONSIBILITIES We will nominate an Energy Manager responsible for co-ordinating energy-efficiency improvements across the organization and a Management Sponsor for supporting and overseeing the Energy Manager, with specific management responsibility for achieving the objectives of this policy. © EnVinta Corporation 01/03/2014 1.1 Continued..... One2Five Implementation REPORTING The Energy Manager will provide regular reports to the Management Sponsor of progress in achieving our objectives and targets. These reports will be reviewed at the monthly management meeting. We will all strive to realize our energy efficiency philosophy by having all members of the company embrace this policy. Date................... Signed............................ Position........................... 2.1 UNDERSTANDING OF PERFORANCE AND OPPORTUNITIES Conduct an energy assessment/audit to establish energy consumption by major users and identify specific opportunities for savings. 1. Conduct a review of significant energy users within your organization. If possible highlight those where there could be significant potential to upgrade equipment or controls, improve the efficiency, improve operating and/or maintenance practices. 2. Preparing a scope of work for an energy audit and identifying a service provider. Focus the scope of the audit on areas with significant energy consumption and opportunity for savings. That is, not just on the obvious lighting opportunities which may or may not be significant energy users within your organization). Specify deliverables for the audit including an itemized list of energy saving opportunities together with cost, energy and cost savings for each opportunity. 3. Contact your local energy utility, State energy office and other relevant agencies (e.g. DOE, Energy Star) to see if financial assistance is available to conduct audits. The DSIREUSA website can identify rebates and incentives in your area www.dsireusa.org . 4. Gain funding for audit and complete the audit. © EnVinta Corporation 01/03/2014 One2Five Implementation 3.1 TARGETS, PERFORMANCE INDICATORS (KPI), AND MOTIVATION Set overall energy savings targets for reducing energy costs or improving energy efficiency based on benchmarking or an assessment of opportunities. 1. Start by reviewing other improvement targets in place for in your business (e.g. cost reduction targets, efficiency targets, quality targets) and consider how an energy target could align with them. Consider the types of targets that work most effectively within your organization. 2. In setting a target for energy efficiency, make sure it is quantifiable. For example 10% reduction in energy use for your site, rather than ‘reduce energy use where practical’. 3. Where possible include the primary level of activity in the target (e.g. energy use per number of students in a school, energy use per square foot for a building, energy use per widget in manufacturing). Select the activity that most impacts changes in energy consumption for your organization. 4. Set a target that has a timeframe for achievement. 5. Set a target that is both a stretch and achievable. Consider the results of energy audits and benchmarking comparisons against similar organizations. Establish specific performance indicators (i.e. kWh per unit of output, dollars per unit of output, etc.) for energy to manage progress towards overall cost reduction targets. 1. Identify energy intensive areas where efficient operation and control are important for minimizing energy use. 2. Start by interviewing staff and asking them about the performance indicators that are most relevant to them. This will help to design KPIs that are meaningful to staff and gain their buy in at the same time. For example in batch processes, energy use per batch maybe more relevant than energy use per ton of product. 3. Consider the need for different indicators in different parts of the business. For example a. Direct indicators (e.g. kWh/Ton); or b. Indirect indicators. For example conveyor speed on a production line (feet/minute) or duration of conveyor stoppages (minutes / shift). 4. Consider a combination of direct and indirect indicators, where the indirect indicator is primarily used to measure incentives/rewards to staff. 5. Consider the need for different KPIs at various levels within the business. For example in a brewery, operators may need instantaneous information to make corrections, shift managers daily data and site managers may prefer kWh/Gal over the last week. © EnVinta Corporation 01/03/2014 6. Determine if additional metering is required to measure the KPIs. One2Five Implementation 7. Ensure staff are made accountable for energy use (not just energy costs). Organization Example of KPIs School kWh / student Building kWh / square foot Hospital / Hotel kWh / bed night Restaurant Therms / meal served Brewery MMBTU / Gal of product 3.2 PLANS Implement an annual planning process that identifies all priority energy projects, schedules, responsibilities and budgets. 1. If not already completed, start by preparing a scope of work for an energy audit and identifying a service provider. Focus the scope of the audit on areas with significant energy consumption and opportunity for savings. That is, not just on the obvious lighting opportunities which may or may not be significant energy users within your organization). 2. Contact your energy utility to see if financial assistance is available to conduct audits. 3. Prepare a list of energy efficiency opportunities and determine the cost and potential savings for each opportunity. 4. Contact your energy utility to see if any rebates or incentives are available for implementing energy efficiency measures. The DSIREUSA website can identify rebates and incentives in your area www.dsireusa.org 5. Rank each of the opportunities based on cost-effectiveness, using the criteria your organization utilizes for assessing investments (e.g. Simple payback, IRR, NPV etc). 6. Prepare list of projects and implementation plan for the next year. 7. For each opportunity include a schedule, responsibilities and budget. 8. Prepare a budgeted plan including a current list of energy savings opportunities derived from usage analysis or technical audits together with clear timeframes and responsibilities for actions. © EnVinta Corporation 01/03/2014 4.1 ACCOUNTABILITIES One2Five Implementation Select one person to be responsible for energy management in each of your plants/facilities. 1. Identify the most appropriate person within your organization to co-oridnate energy management activities. Successful energy management programs are facilitated by skilled and motivated people, not plans. Finding the right energy facilitator is critical to the success of the program. Without the right person, progress will be slow or not at all. Ideally the energy facilitator should be selected for their ability to influence change. Effective change agents can leverage off the detailed technical skills of either in-house engineers and or external specialists as required. 2. Develop and document responsibilities for the position in conjunction with the prospective energy facilitator. See example below. 3. Incorporate where possible the responsibilities within the energy facilitator’s position description. 4. Confirm and document how the facilitator will be recognized for achievements. For example: • Recognition; • Linked to career development. • Other incentive. 5. Formalize role/job description of energy champion. 6. Determine if individual representatives) champions are required at each school (if so, appoint Example Energy Manager Accountabilities (Tailor to suit the energy champion and your business): Overall accountability for success of the company’s energy management program. Facilitate the regular assessment of opportunities to improve energy management within the organization. Oversee the development and regular updating of an energy management plan, including budget approval of the plan, and assigning accountabilities and timeframes for implementation. Facilitate the implementation of changes to management practices and operating procedures to better manage energy. Develop and provide regular reporting of energy consumption for all energy sources (electric, gas etc) to management and staff. © EnVinta Corporation 01/03/2014 One2Five Implementation Modify appropriate purchasing procedures and capital expenditure forms to include for energy efficiency. Integrate training on energy efficiency within skills matrix’s for relevant staff and where appropriate facilitate training of staff in energy intensive areas. Oversee energy efficiency awareness activities within the company (e.g. incorporating with induction programs). 4.2 AWARENESS AND TRAINING Conduct energy awareness activities within your organization to communicate the importance of conservation. Disseminate the information using tools such as the organization web site or newsletter. 1. Conduct activities to raise awareness of basic energy issues, focusing on cost savings and environmental impacts. Broadcast information using tools such as newsletters. 2. Awareness materials should include clear and concise messages on actions that operators and managers can take. Relating awareness to actions that operators and managers can take at home has received positive results. Use communication channels that have been successful for other awareness programs (e.g. quality, cost reduction, environmental). 3. Identifying the knowledge/skills that operators / managers need to make decisions and energy intensive equipment efficiently (e.g. HVAC equipment turn on/turn off, lighting, computers etc). 4. Once skills and knowledge for operation of energy intensive equipment have been defined, assessing current skill levels and conducting a training gap analysis for appropriate staff will identify when training needs. 5. Conduct energy awareness training for operators and managers and design this training specifically for these staff involved. 6. Once basic awareness has been conducted more specific awareness training to staff in energy intensive areas. The training should be practical and include specific measurements, indicators and actions that staff should take to maximize efficiency. © EnVinta Corporation 01/03/2014 One2Five Implementation Other ideas: Establish an ideas box to encourage employees to suggest ways to save energy, and/or an energy efficiency “hot line” where staff can report energy waste. It is critical to provide feedback on the results of these actions and provide recognition/reward. Consider running a competition on for innovative ways to save energy (e.g. business units compete or individual), with a prize of an energy conservation device. e.g. low flow shower head. Using bulletins, newsletters and emails to send ideas, announcements, progress reports and news of special achievements. Communicate energy conservation plans and highlighting progress in staff meetings. Where possible recognize individuals for their role in taking action. Using visual tools like charts and graphs on notice boards or intranet to highlight progress and savings. 9.1 METERING AND MONITORING Secure the capability to obtain interval metering (one hour or shorter intervals) for all major energy supplies. 1. Contact your electric and gas utilities to determine interval data (one hour or shorter) available from the utility. Many utilities have interval data available online for electric supply. 2. Determine if the data is available for export onto an MS Excel file for analysis. 3. Review the data to identify maximum demand, the time of the peak and its duration. 4. Assess peaks during start up periods, following planned or unplanned shutdowns. Many utilities charge for demand for the 12 months, based on the highest peak demand from the previous year. 5. Assess opportunities to: 1. Move load from peak times to other periods. 2. Smooth out demand and avoid large peaks at start up. For example staggering star up of equipment over and hour, after a major shutdown. 3. Identify opportunities to reduce base load, when the plant is shutdown (e.g. opportunities to turn off equipment over night or over weekends when there is no production © EnVinta Corporation 01/03/2014 One2Five Implementation 9.2 REPORTING, FEEDBACK AND CONTROL SYSTEMS Generate monthly reports depicting overall energy use per unit of activity (e.g. kWh per ton) and examine results where they show large cost or usage variance from target. 1. Identify key equipment/sites/facilities to track. 2. Establish energy per unit of activity tracking (e.g. kWh per ft2) for each site/facility in a database. 3. Load last 12 months of data for each site/ facility. 4. Set a baseline and energy targets for each site/ facility. 5. Identify responsible person for on-going input of data (e.g. monthly). 6. Align reporting requirements with company environmental / sustainability reporting requirements. 7. Report performance of each site/facility at executive meetings, highlighting buildings with variance from target. Note 2 levels of reporting required o Company wide. o Each site/facility. 8. Develop alarm thresholds and feedback actions, for each school that trigger when energy use varies from target. For more information: Stuart Moulder P +415-567-1184 © EnVinta Corporation 01/03/2014 E [email protected] W www.envinta.com
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