expanding the energy relationship w/ ge

EXPANDING THE ENERGY RELATIONSHIP w/ GE

Energy Management Systems

Presentation to the Ashley Edwards, Esq. Group Leader, Energy Management/Sustainability

August 27, 2014


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EnMS – What is it and what does it do?

An Energy Management System (EnMS) is a set of interrelated or interacting elements to establish an energy policy and energy objectives, and processes and procedures to achieve those objectives. – From ISO Standard, Section 3.9

An energy management system is a series of processes that enables an organization to use data and information to maintain and improve energy performance, while improving operational efficiencies, decreasing energy intensity, and reducing environmental impacts. - http://www1.eere.energy.gov/energymanagement/faqs.html#Q2A


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Why an EnMS?

•  Systematic management of energy Ø Reduce energy costs Ø Reduce greenhouse gas (GHG) emissions Ø Reduce other related environmental impacts

•  “Studies” get done, but what about the efficiency projects? Ø An EnMS provides an implementation plan with “continual

improvement” built in.

•  Per International Organization for Standardization (ISO):

“Targeting broad applicability across national economic sectors, it is estimated that the standard could influence up to 60% of the world’s energy use.”


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Why an EnMS? (cont’d)

U.S. Department of Energy and U.S. Council for Energy-Efficient Manufacturing Collaboration on the Superior Energy Performance (SEP) Program

•  40 facilities participating in the SEP program since December 2013

•  Average cost of implementing ISO 50001 and being certified to SEP came to $319,000 per facility, with fully loaded costs ranging from $207,000 to $498,000. (Peter Therkelsen, Ridah Sabouni, Aimee McKane, and Paul Scheihing. (2013). Assessing the Costs and Benefits of the Superior Energy Performance Program, 2013 ACEEE Summer Study on Energy Efficiency in Industry, Niagara Falls, New York).

•  According to statistics for nine facilities that implemented ISO 50001 and received SEP certification, they saw cost effective payback periods of 1.7 years, on average. Id.


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ISO 50001 – Why an EnMS? (cont’d)

In addition to cost savings and efficiencies, companies are reacting to many drivers: •  Corporate sustainability programs

•  Demand created along the supply chain

•  Future national cap and trade programs and/or carbon or energy taxes

•  International climate agreements or other mandated energy actions


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International Organization for Standardization (ISO)

Background •  Multiple, Voluntary International

Standards •  Benefits for business, society and

the environment •  Standards are to ensure that

products and services are safe, reliable and of good quality

•  Offers strategic, practical tools to help reduce costs and increase productivity

•  Helps companies access new markets, level the playing field for developing countries and facilitate free and fair global trade

ISO Website: http://www.iso.org/iso/home.html


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Some ISO Standards & Guidelines

Standards ISO 9001 - Quality Management ISO 14001 - Environmental Management ISO 50001 - Energy Management

Guidance ISO 50003 – Requirements for bodies providing audit and certification of EnMS (Draft) ISO 50006 – Measuring energy performance using energy baseline (EnB) and energy performance indicator (EnPI) – General principles and guidance (Draft) ISO 26000 - Social Responsibility


Correspondence between

ISO 50001:2011 ISO 9001:2008

ISO 14001:2004 ISO 22000:2005

- Table from ISO

50001:2011 Standard, Annex B

Integration = Familiarity

ISO 50001 – Integration into Existing Systems


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ISO 50001:2011 Energy Management Systems (EnMS)

• Developed by International Organization for Standardization (ISO) - Released June 15, 2011

• Voluntary Standard is a framework for energy management in any type of organization - large or small, all sectors, throughout the world

• One organization’s EnMS will not necessarily be similar to another organization’s EnMS

Ø Organization sets its policy and baseline Ø The Standard does not prescribe minimum

performance criteria, energy reductions, or targets


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ISO 50001 – An EnMS Approach Plan: Conduct the energy review and establish the baseline, energy performance indicators (EnPIs), objectives, targets and action plans necessary to deliver results in accordance with opportunities to improve energy performance and the organization’s energy policy. Do: Implement energy management action plans. Check: Monitor and measure processes and the key characteristics of its operations that determine energy performance against the energy policy and objectives and report the results. Act: Take actions continually to improve energy performance and the system.


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ISO 50001 – Outline of the Standard 1 Scope [of Standard] 2 Normative References [from Standard] 3 Terms and Definitions [in Standard] 4.1 General Requirements 4.2 Management responsibility 4.3 Energy policy 4.4 Energy planning • Legal and other requirements • Energy review • Energy baseline • Energy performance indicators • Energy objectives, energy targets and energy management action plans

4.5 Implementation and operation • Competence, training and awareness • Communication (internal and external) • Documentation • Operational control • Design • Procurement of energy services, products, equipment and energy 4.6 Checking • Monitoring, measurement and analysis • Evaluation of legal/other requirements • Internal audit of the EnMS • Nonconformities, correction, corrective, and preventive action • Control of records 4.7 Management review • Input to management review • Output from management review


Strive to lead the industry in the opera)on and maintenance of economical and energy efficient widget making facili8es.

Strive for con8nual improvement of energy performance related to widget making by collec8ng, trending and analyzing energy use data, commi>ng appropriate resources, and purchasing energy efficient equipment.

Maintain and improve energy efficiency targets and will monitor our performance against these targets.

Comply with applicable energy efficiency legal requirements, and we will implement best management prac8ces.

Company Will…

Energy Policy Example


Legal & Other Requirements See Legal Register for a list of applicable legal and other requirements.

Energy Review Collect data and make available to key staff Analyze data and energy use to 1) Understand past & present paGerns, 2) Detect perceived devia8ons from predicted consump8on, and 3) iden8fy significant energy uses (SEUs).

Energy Baseline The [electricity and natural gas] usage from [2011].

Energy Performance Indicators (EnPIs) 1. Total Electricity Used 2. Total Natural Gas Used Energy Objec)ves, Targets, and Ac)on Plans (OTAPs) Refer to OTAPs matrix.

Energy Planning


Implementa)on & Opera)on

Outputs from planning process are used for the Implementation & Operation of the EnMS

•  Competence, Training, and Awareness

•  Communication

•  Documentation

•  Operational Control

•  Design

•  Procurement of Energy Services, Products, Equipment, and Energy


Monitoring, Measurement & Analysis - Key characteristics monitored, measured, and analyzed - Reported monthly/quarterly, stored electronically

Checking

Evaluate Compliance with Legal and Other Requirements - Completed every three (3) years

Internal Audit of EnMS - Completed every year

Nonconformities, Correction, Corrective Action, Preventive Action - Review nonconformities or potential nonconformities; - Determine cause(s); - Evaluate action to ensure nonconformities do not occur or recur; - Determine and implement appropriate action needed; - Maintain records of corrective actions and preventive actions; and - Reviewing the effectiveness of the corrective or preventive action taken.

Control of Records - Records must be retained for three (3) years


Inputs to Management Review: •  Follow-up actions from previous management reviews

•  Energy Policy review

•  Evaluate EnPI methodology and review of the energy performance

•  Compliance with legal requirements

•  Progress toward energy objectives and targets

•  Evaluation of key characteristics determining energy performance, including how monitored, measured

•  EnMS audit results

•  Status of corrective/preventive actions

•  Projected energy performance for following period

•  Recommendations for improvement

Management Review


Management must ensure that recommendations for actions and changes are properly assigned, managed, and

implemented – and the company must show evidence of it.

Management Review

Outputs from Management Review: •  Review EnMS Policy and Scope

•  Note any changes to: o  Energy performance of organization o  Energy Policy o  EnPIs o  Objectives, targets, or other elements of the EnMS, consistent

with commitment to continual improvement o  Allocation of resources


ISO 50001 Implementation Schedule

•  Date: Site 1 (or mul8ple sites)

Internal Audit

•  Date: Prior to Mock Audit

Management Review

•  Date: Conducted by third-‐party auditor to assess readiness, iden8fy OFIs, NCs, etc.

Mock Audit

•  Date: Conducted by third-‐party auditor with Energy Team ready and able to aGend

Registra)on Audit


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ISO 50001 EnMS Successful Approaches for Implementation

Gain Support from Top Management

•  Set the Energy Policy and Scope & Boundaries

•  Need buy-in and support (financial and team resources)

Establish a cross-divisional energy team

•  Have each function/group on-site assist with implementation and defining of EnMS boundaries

From Superior Energy Performance (SEP) Webinar: http://www1.eere.energy.gov/manufacturing/pdfs/march_2012_webcast_for_industry.pdf


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ISO 50001 EnMS Successful Approaches for Implementation (cont’d)

Documentation

•  Follow the Standard’s numbering system (Hint: auditors like it, too)

•  Leverage existing EMS or QMS system and approach (if it makes sense)

•  Keep documents streamlined and concise

•  Manual and Energy Planning docs are key

Scope & Boundaries

•  Define and understand

•  Keep in mind throughout planning process


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Energy Planning

•  Know your significant energy uses (SEUs) (e.g., HVAC, transportation, processes, data centers) very well

• Involve energy team throughout process

•  Prioritize opportunities

•  Conduct “real” Internal Audits

•  Plan for third-party audits with entire energy team

•  Track feedback from energy team and others

•  Establish tracking documents


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Use both corrective and preventative actions to address challenges and potential problems • Don’t wait until the last minute

Internal auditing • Plan when it makes sense for your company Incorporate Management Review at predetermined intervals • Leverage existing regular meetings


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ISO 50001 Certification

Certification by independent auditor (third party) is not a requirement of the Standard itself.

• If obtaining third-party certification, consider using an auditing company that knows your other systems (e.g. ISO 14001).

Alternatives to independent certification:

•  Second-party verification - Invite organization’s customers to verify its implementation of ISO 50001 in conformity with the Standard

•  Self-declaration of organization’s conformity


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•  Cleveland Clinic Foundation •  Samsung •  MARTA (Atlanta Rapid Transit) •  Cummins •  Pfizer •  NASA, Other Federal Agencies

ISO 50001/SEP – Who is doing (or thinking of doing) it?

DOE BBC INDUSTRIAL PARTNERS 3M Alcoa Briggs and Stratton Cummins Inc General Motors HARBEC

J.R. Simplot (AgriBusiness & Food Groups) Legrand Nissan North America Inc. Saint-Gobain Corporation

EXPANDING THE ENERGY RELATIONSHIP w/ GE


Discussion/Q&A

Thank you!

Ashley M. Edwards, Esq. URS Group Leader, Energy Management/Sustainability Direct: 216.622.2435; [email protected]

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