developing a strategic energy management plan and what is

ENERGY SAVINGS MASTER PLAN PROGRAM:

PARTNERING FOR SUSTAINABILITY

Developing a Strategic

Energy Management Plan and What is an Energy Assessment?

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Energy Savings Master Plan, Partnering for Sustainability

Sue Laufenberg Commercial Market Manager Duke Energy

2

Andrew Schulte Manager ICF International

Wayne Marshall CEO & President Petra Engineering


About the Program…

The Energy Savings Master Plan Program is a partnership between Duke Energy, ICF International, and our commercial real estate customers to help you establish and achieve your energy management goals.

The Program provides you with the tools, information and assistance to...

• develop an energy management team

• prepare an energy management plan

• effectively achieve and maintain long-term energy savings

• integrate into strategic plans

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Our Goal in working with you…

Develop a Strategic Energy Management Plan that will map out your energy-

related decisions over the next 3-5 years to guide your business requirements,

allocate funding, and convince senior management to support you.

Fast Facts 1. Free, proven benchmarking tools

2. Free expertise from Duke Energy

3. Proven model for the development of an

SEMP

4. Best practices, tools, and methodologies

that work

5. Financial assistance from Duke Energy in

the form of Smart$aver Incentives

6. Energy Assessment – no upfront costs;

payable out of incentive dollars from Duke

7. Minimal fee for expert consultant’s

assistance

What you will gain 1. Customized SEMP to suit your business

strategies and goals for energy

management

2. Be better prepared for an uncertain energy

future.

3. Be seen as a proactive, strategic leader

within your organization

4. Seamlessly fit in with your organization’s

vision, strategies and objectives.

5. Gain support and buy-in from employees

and management to execute your SEMP


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Program Application

Investigation Implementation

Steps Funding SEMP

Steps of the Energy Savings Master Plan Program

Goal: Develop your organization’s 3-5 year Strategic Energy Management

Plan (SEMP)

ENROLL NOW button

on ESMP web site:

-Contact from Duke

Energy Account Mgr.

and/or ICF

-Discuss your energy

goals & plans to

achieve them

-Benchmark energy

consumption

.

-Kick-off Meeting

-Begin SEMP

-Energy Assessment:

-ECM Priority

-Define available

Budget

-Smart $aver

Incentives

application to Duke

Energy

-Complete SEMP >One day Energy

Planning workshop

on-site

-Define timeline for

retrofit

Implementation

-Receive Incentives

payment minus cost

of Assessment

www.EnergySavingsMasterPlan.com

http://www.energysavingsmasterplan.com/


PROGRAM WEBSITE:

www.energysavingsmasterplan.com

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Agenda

• Why Develop a Strategic Energy Management Plan?

• Developing Your SEMP: • Establishing Your Green Team

• Assessing Performance

• Set Goals

• Create Action Plan: Draft your SEMP • Business Proposition

• Goals & Objectives

• Presenting to Senior Management

• What is an Energy Assessment?

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Why Develop a SEMP?

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Why Prepare an Energy Plan?

• Develop Energy Management Best Practices

• Manage Energy Use and Costs

• Reduce Environmental/ Carbon Footprint

• Improve Building Performance

• Maintain Building Performance Long Term

• Other Benefits (e.g., reputation)

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Why Start with Energy?

• Energy is largest subset of a building’s environmental footprint

• Energy efficiency provides financial returns

• Use energy savings to implement other green features

• Highly visible strategy for going green.

• Energy saving activities directly involve employees’ every day

behaviors:

Turn off lights, power down computers, use blinds, recommend

ideas related to their jobs, etc.

• Educate employees to reduce energy at work and at home.


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Benefits of a Strategic Energy Management Plan

• Provides a plan for continuous improvement in energy performance and reduction of impact on the environment

• Demonstrates environmental stewardship & leadership

Employee engagement in greening

efforts

External example regarding impact on the environment and community health

• Demonstrates fiscal and fiduciary responsibility


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Costs Avoided - Example

• What if your EUI was the same every year as it was in 2006?

• Energy spending would have been:

$833,000 more in 2007

$2.43 million more in 2008

$2.5 million more through July of 2009

Total: $5.76 million more in energy costs over 3 years.


Commercial Real Estate Energy Management Best Practices

• Commitment from senior executives

• Clearly defined energy savings goals

• Communication of the goals to all organizational levels

• Assignment of responsibility and accountability at the proper level

• Assessing energy performance and monitoring over time

• Continuous identification of savings opportunities

• Adoption of project investment criteria reflecting project risks and returns

• Provision for public recognition and reward for achieving the goals



Developing Your SEMP:

Establishing an Energy Team

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Create an Energy Plan

• Make Commitment • Form your energy team

• Assess Performance & Set Goals • Collect and evaluate data

• Assess current practices and policies

• Inventory current building equipment

• Create & Implement Plan

• Evaluate Progress • Continue to update over time

• Recognize Achievements

15 www.energystar.gov/guidelines

http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index

http://www.energystar.gov/guidelines


Form your Energy Team

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Additional Energy Team Members

• Public Relations

• Information Technology

• Human Resources

• Contractors, Vendors,

& Service Providers

• Duke Energy

Form your Energy Team (con’t)


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ENERGY STAR

Teaming Up to Save Energy

Guidebook

Create Your Energy

Team

http://www.energystar.gov/ia/business/guidelin

es/continuous_improvement/Teaming_Up_To_

Save_Energy.pdf

http://www.energystar.gov/ia/business/guidelines/continuous_improvement/Teaming_Up_To_Save_Energy.pdf




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Assessing Performance

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Assess Performance

• Assess Energy Performance Benchmark in Portfolio Manager, EPA’s ENERGY STAR

measurement and tracking tool

• Assess Current Energy Management Program Guidelines for Energy Management

Energy Program Assessment Matrix

Facility Energy Assessment Matrix

• Assess Current Energy Management Policies and Practices Purchasing and Procurement

Low Cost O&M Tip Sheet


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Program Application

Investigation Implementation

Steps Funding SEMP

Steps of the Energy Savings Master Plan Program

Goal: Develop your organization’s 3-5 year Strategic Energy Management

Plan (SEMP)

ENROLL NOW button

on ESMP web site:

-Contact from Duke

Energy Account Mgr.

and/or ICF

-Discuss your energy

goals & plans to

achieve them

-Benchmark energy

consumption

-Kick-off Meeting

-Begin SEMP

-Energy Assessment:

-ECM Priority

-Define available

Budget

-Smart $aver

Incentives

application to Duke

Energy

-Complete SEMP >One day Energy

Planning workshop

on-site

-Define timeline for

retrofit

Implementation

-Receive Incentives

payment minus cost

of Assessment

www.EnergySavingsMasterPlan.com

http://www.prescriptionforenergysavings.com/


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EPA’s ENERGY STAR Energy Performance Scale

Building Energy Use Highest Lowest

100 1 25 50 75 Benchmark Score

The energy performance scale overlays a 1 to 100 score over national data, which gives relative meaning to energy use.

Nu

mb

er

of

Bu

ild

ing

s

www.energystar.gov/benchmark

http://www.energystar.gov/benchmark


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Receive Your Energy Performance Score

1 100 75 50

Energy Performance Rating

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Lev

el o

f F

ocu

s

Operations/

Maintenance

Recognition

and Best

Practices

Strategic

Investment

Operations/

Maintenance

+

Targeted

Investment


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Energy Assessment

Project Description

Elec Savings

(kWh)

NG Savings

(MMBtu)

Annual Cost

Savings ($)

Total Installed

Cost ($)

Potential

Incentive ($)

NET Installed

Cost ($)

NET SPB

(Yrs)

Implement Energy Management System 596,111 2,100 52,094$ 135,500$ 20,000$ 115,500$ 2.22

Lighting Improvements 452,952 - 23,975$ 131,250$ 9,900$ 121,350$ 5.06

HVAC System and Controls Improvements 5,952,505 10,782 419,574$ 1,768,750$ 176,875$ 1,591,875$ 3.79

Steam System Improvements 121,107 16,231 163,701$ 631,250$ 63,125$ 568,125$ 3.47 Chilled Water System Improvements 2,533,763 - 134,113$ 681,250$ 68,125$ 613,125$ 4.57

Totals for Site 9,656,438 29,113 793,458$ 3,348,000$ 338,025$ 3,009,975$ 3.79

% Savings: 12.1% 10.4% 11.4%

The preliminary survey identified X number of primary cost saving opportunities.

When summed up, the projects identified total to an energy, and related cost

savings potential of approximately $X per year, with an estimated

implementation cost of $X. The combined overall simple payback is X years




Set Goals

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Establish Energy Plan Goals

• Use the SMART criteria for establishing goals

• Specific

• Measureable

• Achievable

• Realistic

• Time Bound

• Set a short and long term energy performance goal

• Example: Reduce Energy Use by 20% by 2015 compared to 2005 baseline


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• First “Set Baseline Periods” in the Facility Performance section

• Portfolio Manager will set it using the oldest 12 months of complete energy data or you can manually set it.

Setting an Energy Performance Target Using Portfolio Manager


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• After Baseline Period is set, click “Set Energy Performance Target” in the Facility Performance section



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You can set your target based on:


Your 1-100

Energy

Performance

Score

A percent (%) energy reduction goal


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• See your energy use, cost savings, and target score and % energy reduction

• Enter “75”, which is eligible for ENERGY STAR Certification

• Enter 10% energy savings, a common and achievable goal




Create Action Plan

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Energy Plan Components

1. Executive Summary

2. Vision Statement

3. Business Proposition

4. Goals & Objectives

5. Specific Actions with Staff Assignments

6. Timeframe

7. Specific Areas that the SEMP Should Address: • Energy & Water Efficiency Options - Cost & Savings Evaluations

• Operations & Maintenance Procedures

• Product and Equipment Purchasing

• New Construction/Renovations

• Outreach & Training


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1. Executive Summary

• Current Energy Performance (Costs and Consumption)

• Multi year look (5 - 10 years)

• Brief description of facility/campus

• Summarize strategies

• Goals of plan (example)

20% reduction by 2015

30% reduction by 2020


2. Energy Management Vision

• “For more than half a century, Hines has championed sustainable practices and technologies, demonstrating that a sustainable approach to real estate makes good business sense and creates genuinely better places for people. That commitment has translated into significant cost savings and more productive workplaces for tenants, more valuable properties for investors and a healthier planet for everyone.”

• “As the world’s largest real estate services firm, CB Richard Ellis directly manages more than 2.5 billion square feet of property and corporate facilities, and we advise the owners and occupiers of billions more square feet. Our ability to influence how real estate is built, sourced, occupied, and sold, is unsurpassed. By aggregating and sharing our expertise in “green” building policies, processes and procedures, we can make a tangible impact on improving energy efficiency, reducing greenhouse gas emissions and slowing climate change. We can work with our clients to make their facilities greener, save them money, and contribute to the growing battle against climate change.”


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3. Business Proposition • Cost Reduction

• Ex: 10% reduction in energy-related operating costs over 3 years

• Tenant comfort and productivity • Not adversely impacted by energy management - and oftentimes is improved!

• Improved Market Position and Enhanced Reputation Through Environmental Stewardship • Growing evidence that “green” buildings enjoy higher rents, occupancy and sale

prices

• Compliance with Legislative Mandates • Many state and local jurisdictions beginning to mandate the benchmarking and

disclosure of energy performance


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http://www.energystar.gov/index.cfm?c=c

omm_real_estate.building_upgrade_value

_calculator

http://www.energystar.gov/index.cfm?c=comm_real_estate.building_upgrade_value_calculator




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Funding Opportunities

• Duke Energy Smart $aver Incentives • Linked from the Energy Savings Master Plan Home Page

• Dsire Database www.dsireusa.org/incentives

• Federal Tax Deductions www.energytaxincentives.org

• State and Local Government Funding www.epa.gov/cleanenergy/energy-programs/state-and-local/recovery.html

http://www.dsireusa.org/incentives

http://www.energytaxincentives.org/

http://www.epa.gov/cleanenergy/energy-programs/state-and-local/recovery.html








• Complete ENERGY STAR Assessment Tools.

• Draft an energy plan.

• Present to senior management for approval.

• Communicate the plan to key decision makers to ensure the plan is incorporated into business practices.

Objective: Establish a SEMP

• Assign “Director of Energy” responsibilities

• Establish a Green Team and assign responsibilities.

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Objective: Establish an internal framework to support the commitment to energy management.

4. Goals and Objectives


Objective: Establish a process for monitoring energy performance and recognizing achievements.

• Benchmark in ENERGY STAR.

• Update Portfolio Manager data on a monthly basis.

• Identify metrics to report to senior management.

• Identify means for reporting metrics to employees.

• Apply for external recognition. Develop internal recognition.

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Objective: Identify and implement energy performance improvement projects.

• Work with Duke Energy to conduct an energy assessment, if not already completed.

• Review energy assessment results and determine recommendations that should be integrated into the energy plan.

• Establish an annual process for conducting energy assessments.

• Establish a continual process for identifying improvement projects.

• Work with Duke Energy to identify incentive opportunities.

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Building Upgrade Manual

• Retro-commissioning

• Lighting

• Supplemental Load

Reductions

• Air Distribution Systems

• Heating & Cooling Upgrades

http://www.energystar.gov/index.cfm?c=business.bus_upgrade_manual

http://www.energystar.gov/index.cfm?c=business.bus_upgrade_manual


Objective: Adopt policies and/or guidance on incorporating energy efficiency into new building design and/or renovation.

• Identify architect and design consultants that have

experience in designing energy-efficient buildings.

• Establish a commitment to integrating energy efficiency into

new building design and/or renovation projects.

• Set performance targets.

• Incorporate energy efficiency into design decisions.

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www.energystar.gov/targetfinder

http://www.energystar.gov/targetfinder


Objective: Implement best practices in O&M

• Conduct a review/inventory of current operational controls and settings.

• Establish guidelines for temperature set points.

• Develop operational changes and guidelines for specific areas.

• Train appropriate staff to carry out operational changes.

• Conduct a review of maintenance procedures & expand as needed.

• Document current O&M procedures for all equipment and develop checklists to ensure staff complete tasks.

• Establish lighting guidelines.

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http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator

http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.locator


50 http://www.energystar.gov/ia/business/downloads/BP_Checklist.pdf

http://www.energystar.gov/ia/business/downloads/BP_Checklist.pdf


Objective: Establish energy efficiency guidelines and standards for products and equipment.

• Integrate energy efficiency standards into purchasing and procurement policy.

• Purchase ENERGY STAR equipment where available / feasible.

• Enable power down features on computer monitors and PCs.

• For products not covered by ENERGY STAR, inquire about the energy performance of product models relative to other models/brands and factor energy use into decision making.

• Identify additional opportunities by working with Duke Energy.

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Purchasing and Procurement Resources

• ENERGY STAR qualified products:

• Office Equipment and Electronics

• Commercial Cooking Equipment

• Benefits of ENERGY STAR

• Key product criteria

• Drop-in procurement language

• Savings calculators

• Online training

Calculate

Savings

Save 75% energy

in “off” mode

$90/year

$10/year

Life 10x

• 25-50% less energy

• Same quality

• Reduced air pollution

• Significant return on investment

• Extended product life

• Decreased maintenance

www.energystar.gov/purchasing

C:/Documents and Settings/14215/Local Settings/14215/Local Settings/Temporary Internet Files/OLKE5/Televisions.xls

http://www.energystar.gov/purchasing


Low Carbon IT Challenge

• Recognizes organizations for reducing energy used by computers and monitors

• Activate power management features in monitors and computers

• ENERGY STAR offers free technical assistance and trainings

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http://www.energystar.gov/index.cfm?c=power_mgt.pr_power_mgt_low_carbon

http://www.energystar.gov/index.cfm?c=power_mgt.pr_power_mgt_low_carbon


Objective: Develop a communications plan to raise employee, tenant, and stakeholder awareness through communications activities.

• Identify at least one ENERGY STAR National Campaign to leverage to raise awareness.

• Annually hold energy events on Earth Day (April 22) and Energy Awareness Month (October).

• Provide energy savings tips for home and work.

• Identify other communications strategies to raise awareness.

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ENERGY STAR Resources

• The ENERGY STAR Challenge

• Bring Your Green to Work

• ENERGY STAR at Home

• Change the World, Start with ENERGY STAR

• Earth Day

• Energy Awareness Month

• Organizational Initiatives and Campaigns

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56 https://www.energystar.gov/index.cfm?fuseaction

=globalwarming.showPledge

https://www.energystar.gov/index.cfm?fuseaction=globalwarming.showPledge

https://www.energystar.gov/index.cfm?fuseaction=globalwarming.showPledge


4-minute video

Interactive cubicle

Energy quiz

Publications

Green Team checklist

Fast Facts

…and more!

Engage Employees

57 http://www.energystar.gov/index.cfm?fuseaction=bygtw.showSplash

http://www.energystar.gov/index.cfm?fuseaction=bygtw.showSplash


Host Energy Efficiency Events

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Event Ideas

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• Take advantage of the resources in the ENERGY STAR Challenge Toolkit

• www.energystar.gov/challenge


Objective: Train employees on energy saving practices that they need to adopt in daily responsibilities.

• Integrate energy efficiency into trainings for

facilities department staff.

• Work with HR to integrate training into other

applicable employee trainings, such as new

hire trainings.

• Free ENERGY STAR trainings include: • Best Practices

• Purchasing and Procurement

• Benchmarking

• Effectively Communicating Achievements 60


Often 60 to 90

minutes

Alternating times

to accommodate

schedules

Register online

Pre-recorded

sessions

energystar.webex.com


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5. Specific Actions with Staff Assignments


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6. Timeframe


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7. Specific Goals Your SEMP Should Address

• Energy & Water Efficiency Options

• Cost & Savings Evaluations

• Operations & Maintenance Procedures

• Product and Equipment Purchasing

• New Construction/ Renovations

• Outreach & Training


Presenting to Senior Management Sample Agenda

• Highlight key points in your plan

• Emphasize the benefits, social, environmental, and financial

• Know what’s most important to your senior management

• If being green is more compelling than financial savings, focus more on the green benefits

• Duke Energy has a template PowerPoint

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ESMP Senior Management Presentation Template

• Overview of the Energy Savings Master Plan Program

• Why Manage Energy?

• Benefits of Energy Management Plans

• Results of your Energy Assessment

• Overview of your Draft Energy Plan

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XYZ Office Building’s Energy Performance Score

12 Month Period Ending

Energy Score

Source EUI Energy Spend

$X million


Financial Impact (Examples)

• Energy Costs Have Increased

• 2006: $X million




• Measures have resulted in more efficient use of energy.

• Ex: Lighting retrofit in 20xx


Costs Avoided (Examples)

• What if your EUI was the same every year as it was in 20XX?

• Energy spend would have been:

• $X more in 20xx

• $X million more in 20xx

• Total: $X million more in energy costs


Potential Financial Impact of X% Reduction Goal

12 Month Period Ending

% reduction*

Energy Score

Estimated Cost Savings

*Percent reduction compared to FY20XX

**Assumes no SF increases and energy rates remain the same

Cumulative Savings: $X million


Equivalent to the Emissions from….

• X passenger vehicles

• X million gallons of gasoline

• Electricity to power X homes for one year

• Energy use of X homes for one year

• X acres of forest

• Recycling X tons of waste instead of sending it to a landfill

http://www.epa.gov/cleanenergy/energy-resources/calculator.html






Summary / Q&A

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Energy Assessments

Online & Off-Site Assessments

ASHRAE Level 1 or 2

Commissioning for Existing Buildings

Investment Grade Assessment

Smart $aver Prescriptive Incentives

Lighting

HVAC

Chillers & TES

Chiller Tune-ups (Ohio Only)

Motors

Pumps

Variable Frequency Drives

Process Equipment

Foodservice Equipment

Smart $aver Custom Incentives

Applies to cost-effective projects not addressed by

Prescriptive

Incentive based on projected electricity savings

If efficiency gains can be validated, incentives can be

offered

Duke Energy’s Energy Efficiency Programs


Ways to move forward if you’re interested in ESMP…

1. Contact your Account Manager

2. Visit the ESMP web site and Enroll in the Program. We’ll take it from there. www.energysavingsmasterplan.com

3. Send us an email at the ESMP mailbox: [email protected]

4. Call us at 800-951-9929

Remember to : Contact Sue for ENERGY STAR Assistance – free to NC office buildings in ESMP program. Minimal charge for others. And start gathering your Energy Team!

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http://[email protected]/




What does an Energy Assessment Provide?

• Identification of Best Practices

• Discovery of Energy Conservation Measures – Capital Projects

– Operations and Maintenance improvements

• Evaluation of Opportunities – Turnkey project cost / Implementation Cost

– Energy Savings ($ & units)

– Utility Incentives

– Federal & State Tax Incentives

– Payback


What Additional Information do Customers typically request?

• Energy Star Certification

• LEED evaluations

• Project Questions – What are additional operations & maintenance savings?

– How do I get the utility incentives?

– Can you provide implementation project management?

– Can you implement the project and finance?

– Can you guarantee energy savings?

– What’s the next step?


Why Customers do an Energy Assessment?

Top FIVE Reasons

1. Seeking Operations and Maintenance Cost Savings

2. Have specific Projects need to justify • Project cost

• Operations and Maintenance Savings

3. Corporate / Owner ask for it!

4. Pursuing Energy Star Certification

5. Pursuing LEED certification


Assuring Customers Get Results

• Successful Assessments are tailored to Customer’s Objectives

• Best Assessments incorporate Customer’s site knowledge – Optimizes Recommendations

– Builds momentum

• Assessments are Focused and Results Oriented

• Assessments should define Next Steps for each Energy Conservation Measure

• Successful Projects have Customer sponsors that are engaged and involved


QUESTIONS ?

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