Rhode Island Convention Center • Providence, Rhode Island

The Value of Managing Energy UseThrough ISO 50001

Track 10, Session 8: Greater Energy Savings through meeting the ISO 50001 requirements

Paul ScheihingU.S. Department of Energy

August 2016

Energy Exchange: Federal Sustainability for the Next Decade2

Energy Efficiency: Cost‐Effective Carbon Reduction

Reduce Before You Produce!

Reducing energy use, energy efficiency, is the least‐cost resource option to reduce carbon emissions, compared to other clean energy alternatives.

The least‐cost forms of energy efficiency are operations and behavior, often low or no cost actions. 

But your energy use needs to be managed!

Source: American Council for an Energy‐Efficient Economy, The Best Value for America’s Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs, 2014. /research‐report/u1402

Levelized Costs of Electricity Resource Options for Utilities

Energy Exchange: Federal Sustainability for the Next Decade3

Don’t React to Energy Use…

Source: UNIDO 2010

Energy Exchange: Federal Sustainability for the Next Decade4

…Manage Energy Use

Adapted from: Kahlenborn et al. (2012), based on Lackner & Holanek (2007)

Company implementation of an energy management system

Senior management commits to EnMS

Initial savings from low cost investments

Business as usual

Identify, prioritize, and implement systematic, no/low-cost energy savings

Strategically invest to maximize energy savings

Continuous Improvement

Additional savings from capital improvements

Becomes company culture

Capital Investments(e.g., buying energy-efficient machines)

Energy Exchange: Federal Sustainability for the Next Decade

Energy & cost savings over time

Elevates and integrates energy into normal business systems,as has happened for safety & quality

Involves staff from the Board room to the facilities staff: Organizational change in culture

Energy Management Systems (EnMS)

Project approach

Systematic energy management leads to continual improvements in energy and cost performance

An EnMS establishes a framework for industrial plants; commercial, institutional,and governmental facilities; and entire organizations to manage energy

Energy Exchange: Federal Sustainability for the Next Decade6

ISO 50001–Energy Management Systems (EnMS)

International standard that draws from best practices around the world. Developed with input from 56 countries, many countries now adopting it as a national standard.

Light blue text represents new data‐driven sections in ISO 50001 that are not in ISO 9001 & ISO 14001

ISO 50001 specifies requirements for establishing, implementing, maintaining and improving an EnMS. 

Transparent, data‐driven, verifiable

Energy Exchange: Federal Sustainability for the Next Decade7

ISO 50001 Conformant Plants Outperforms Peers

Savings at certified facilities greater on average compared to non‐ISO facilities:• 3M: 62% greater over 3 years: 18 ISO 50001 certified sites across 7 countries; 2 US SEP, 1 Korea SEP certified; 257 non‐ISO50001• Schneider Electric: 65% greater over 4 years: 20 ISO 50001 certified in North America; 16  US SEP certified; 30 non ISO50001

Energy Exchange: Federal Sustainability for the Next Decade

Clean Energy Ministerial (CEM) Energy Management Campaign: “Drive to 50001”• Worldwide goal of 50,001 facilities certified to ISO 50001 by 2020 (up from 

~12,000 currently)• The US is among the 9 governments and 10 private sector companies and 

partners that pledged concrete actions to use ISO 50001 as a transparent mechanism to make progress toward climate and energy goals. 

North American Climate, Clean Energy, and Environmental Partnership• US, Canada and Mexico to set a regional common target by 2017 for ISO 

50001 uptake contribution to “Drive to 50001”

US‐China dialogue on ISO 50001• Cooperation of ISO 50001 implementation approach and sharing of 

measurement and verification protocol

US Energy Management (ISO 50001) Commitments

Energy Exchange: Federal Sustainability for the Next Decade

EXISTING: ISO 50001 & Superior Energy Performance (SEP)

DOE ISO 50001 and SEP certification with 3rd party verification of energy improvement

40+ SEP certified US facilities including 4 hotels

Working with wastewater cohort on SEP

DOE long involvement in ISO 50001 development

DOE Offerings on ISO 50001

NEW: ISO 50001 Ready Recognition 

Create a path to self‐declaration to ISO 50001 conformance

DOE recognition of ISO 50001 self‐declaration

DOE eGuide being revised to assistfacility energy managers through the process and evaluate their facilities’ energy data

Qualified Energy Savings consistent with utility/Clean Power Plan best practices

Consistent with SEP and utility Strategic Energy Management M&V

Energy Exchange: Federal Sustainability for the Next Decade

US DOE Approach for ISO 50001

QualifiedEnergySavings

QualifiedEnMS

DOE recognition (compliant with utility programs and EPA Clean Power Plan)

DOE recognition of ISO 50001 and SEP readiness

“Desk audit” of Energy Savings

“Self declared” ISO 50001

DOE recognition of SEP certification

ISO 50001Ready

CALCULATEStep 1 

CALCULATE IMPLEMENTStep 2

IMPLEMENTOptional Step 3Optional Step 3

CERTIFY

Certification by Market

NEW DOE Resources Existing DOE Program

Energy Exchange: Federal Sustainability for the Next Decade

DOE eGuide Tool to Support ISO 50001

Version 3.0 COMING Fall 2016 (starting beta testing now)Establish your ISO 50001 conformant energy management system

eGuide users: • 3M• Volvo Trucks• Harbec

DOE eGuide: Your map and tools needed along the way Free step‐by‐step toolkit to create EnMS

consistent with ISO 50001 structure

Includes sample plans, templates, communications

Develop process and verification for “claimable” energy savings

Central role for potential “registry” function

Transferable tool for partner co‐branding

See www.energy.gov/eguide

Energy Exchange: Federal Sustainability for the Next Decade

eGuide tool: “Qualified Energy Savings”

Qualified Energy Savings – Key elements• Protocol to show energy performance annually, single fuel or 

whole facility (top‐down regression analysis) based on industry best practices

• Interoperable with EPA’s Portfolio Manager data collection• “Desk Audit” protocol for remotely checking energy data results• DOE recognizes energy savings due to improvement projects, 

requires no third‐party analysis, no additional cost• Allows for “registry” function of facilities to track facility savings

Energy Exchange: Federal Sustainability for the Next Decade

eGuide tool:  “ISO 50001 Ready”

ISO 50001 Ready – Key elements• “TurboTax” style tool uses Q&A format to lead facility teams 

through the requisite steps toward ISO 50001 conformance• Online tutorials and linked resources will be available to 

illustrate and assist with each step of the energy management system process

• DOE will recognize ISO 50001 self‐declaration

Energy Exchange: Federal Sustainability for the Next Decade14

Superior Energy Performance® (SEPTM)

SEP is a DOE certification program that verifies energy management excellence and sustained energy savings.

iStock photo: 16418416

SEP is ISO 50001 plus:

Deeper, sustained savings at less cost through robust tracking and measurement with advanced tools 

Credible, third‐party verification by ANSI‐ANAB accredited entity that market can reward supply chains, utilities, and carbon trading

National recognition by U.S. DOE identifying sustainability leaders

Verified energy performance improvementVerified energy performance improvement

ISO 50001 certificationISO 50001 certification

SEP Certification

Energy Exchange: Federal Sustainability for the Next Decade

The Verified Results ISO 50001 Conformance

Through DOE’s Superior Energy Performance… • Achieving up to $1 million in annual savings• Significant savings from operational improvements with no capital investment• Reducing carbon emissions, with third‐party verified energy performance 

improvement• Savings found to be almost double corporate business as usual 

Energy Exchange: Federal Sustainability for the Next Decade16

ISO 50001 Benefits Facilities of All Sizes

Annual energy spend > $2 millionLess than 1.5‐year payback

Some sites may have the strongest business case

Those with an annual energy spend < $2 millionLess than 2‐year payback

Source: Development of an Enhanced Payback Function of the Superior Energy Performance Program, LBNL, 2015.

Even a small facility saved $50K+ a year from operational energy cost savingsLess than 2.5‐yr payback

Source: HARBEC case study

www.energy.gov/eere/amo/business‐case‐sep

Energy Exchange: Federal Sustainability for the Next Decade17

SEP Certified Facilities and Verified Energy Performance Improvement

Brockville, Ontario Canada 21.4% / 7 yrs

Aberdeen, SD 11.0%

Hutchinson, MN 10.7%

Cynthiana, KY 6.9%

Cordova, IL 5.7%

Decatur, AL 5.2%

Prairie du Chien, WI 5.2%

Columbus, IN 16.8%

Whitakers, NC 12.6% / 2 yrs

Detroit, MI 32.5% / 10 yrs

Smyrna, TN 17.7%

Bethlehem, PA 17.0%

Washington, DC 16.5%

Ontario, NY 16.5%

Dunedin, FL 12.2% / 2 yrs

Wilson, NC 15.1% / 10 yrs

Gaithersburg, MD 8.5%

Cheswick, PA 7.6%

Carlisle, PA 5.7%

Saanichton, BC Canada 30.6%

Smyrna, TN 23.1%

Clovis, CA 16.7%

Seneca, SC 15.6%

Peru, IN 24.9% / 10 yrs

Costa Mesa, CA 23.4%/15 mo’s

West Kingston, RI 20.0%

Columbia, MO 13.3% / 1 yr

Apodaca, Mexico (Monterrey 2) 11.3%

Hopkins, SC 10.2%

Tijuana, Mexico 10.2%

Cedar Rapids, IA 8.8%

Apodaca, Mexico (Monterrey 3) 7.8%

Lexington, KY 6.9%

Lincoln, NE 6.5%

Rojo Gomez, Mexico 5.9%

Washington, DC 15.9%

Honolulu, HI 8.4%

San Francisco, CA 6.3%

Mack Trucks, Macungie, PA 41.9% / 10 yrs

Dublin, VA 28.4% / 10 yrs

Hagerstown, MD 20.9%

Last updated: July 7, 2016Improvement over 3 years unless stated otherwise

Energy Exchange: Federal Sustainability for the Next Decade

Annual Cost Savings

“SEP verification provides the ability to have proven performance metrics

to quantify actual savings, giving both internal and external

credibility to savings claims.”

Volvo TrucksDublin, VA

2015 study of 10 SEP‐certified facilities: 

Average 12% reduction in energy costs within 15 months of starting to implement SEP

Saved over $430,000/year on average from low/no cost operational improvements

Company Facility Annual Savings Payback

CumminsRocky Mount Engine Plant, Whitakers, NC facility  $716,000 11 months

General Dynamics Scranton, PA facility $956,000 6 months

NissanSmyrna, TN facility – initialcertification $938,000 6 weeks

NissanSmyrna, TN facility –recertification $748,000 5 weeks

Volvo TrucksDublin, VA facility – initialcertification $866,000 4 months

Energy Exchange: Federal Sustainability for the Next Decade19

Contact info

Paul ScheihingTechnology Manager, Technical Assistance

Advanced Manufacturing OfficeUS Department of Energypaul.scheihing@ee.doe.gov

1‐202‐586‐7234

energy.gov/eere/amoenergy.gov/eere/amo/ta

Learn more:http://energy.gov/ISO50001

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Energy Exchange: Federal Sustainability for the Next Decade

Federal ISO 50001 pilot

• Recruiting Federal facilities/sites to pilot ISO 50001• Goal: ISO 50001 self declaration; certification not required• eGuide tool and technical assistance/training provided• Possible Executive Order – Alternate Compliance Path• Starts in early 2017• Contact Brad Gustafson, FEMP; 

Brad.Gustafson@ee.doe.govPlease use: “ISO ‐ Alternate Compliance Path” in email subject line.