THE ENERGY PERFORMANCE MONITORING PLANRita Norton

Energy Office City of San Jose

ABSTRACT

This paper describes the City of San Jose Energy Performance Monitoring Plan,the need it fills, why it was adopted and how it operates@ The system willinterest to energy managers in large organizations where consideration isbeing given to the development of strategies which improve control over energyusage in numerous buildings and departmental units $

The purpose of the Energy Monitoring Performance Plan is to spreadresponsibility for energy usage city-wide to employees in each department andto aggregate responsibility to the level of department heads as part of theirrole as senior staff ~ The plan is intended to help remind employees of theimportance of practicing energy efficiency on the job@

The Energy Performance Monitoring Plan includes the following reports andresponses:

1) Departmental Energy Usage Summary Report -- shows increases/decreasesof energy usage for department's major building and showsperformance of the departmental unite

2) Building Energy Use Consumption Comparison Report - individualizedreports for major buildings showing the building's energyperformancee

3) Energy Performance Evaluation Worksheet - for each building, energyusage reductions will be evaluated against pre-set usage goals~

4) The department head reviews end-of-year performance, for buildingsand department, and where savings were achievede Copies are sent tothe City Managere Based on this information, department headsrecognize users and operators where savings have occurred and CityManager recognizes departmental units on basis of over-allperformance $

5) The energy usage goals are calculated by Energy Office: A 0-5%reduction is expected on buildings wi thout a retrofi t ; a greaterthan 5% reduction to equal funded payback is estimated for buildingswith a retrofit $ Departments are evaluated on achieving over-all 5%reductions $

6) The Energy Office adjusts figures to correct for changes inoperating conditions 0

By utilizing this type of an approach, the energy program is on a par with theadministration of other established practices of management in a largeorganizatione

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AN ENERGY MANAGEMENT TOOL:THE ENERGY PERFORMANCE MONITORING PLAN

Rita NortonEnergy Office City of San Jose

INTRODUCTION:

This paper describes the City of San Jose's Energy Performance MonitoringPlan, the need it fills, why it was adopted and how it operates~ The systemwill interest energy managers in large organizations where consideration isbeing given to the development of strategies which improve control over energyusage in numerous buildings and departmental unitsG

The purpose of establishing an Energy Performance Monitoring Plan is to makeenergy usage a higher priority item among departments and to improveefficiency of building operations 0 The improvement is gained by assigningresponsibili ty for energy usage to department heads and on to the users andoperators~

BACKGROUND:

The Energy Performance Monitoring Plan was developed at the City of San Joseas an expansion on conservation efforts already existing in operationseBefore the introduction of the Energy Performance Monitoring Plan thereexisted a substantial program and investment in the technical dimension ofenergy conservation~ The already established program consisted ofimplementing funded energy retrofits to buildings, working off a list ofextensive energy saving projects which showed good payback and which wereitemized in energy audits of building and facilities 0 The retrofit programinvolves coordination between the City's engineers, architects, Budget Office,Energy Office, contractors and buildings maintenance staff e The types ofimprovements include lighting, HVAC modification, weatherproofing andcomputer based controls 0

A component missing in the retrofit program was reporting by the departmentson performance of departmental energy usage. The need the Energy PerformanceMonitoring Plan is designed to fill is providing a reporting system so thatenergy usage is part of management vs overview of departmental performance *

Generally speaking, the plan falls under the category of Employee AwarenessPrograms because it leads to employee behavior change * It encourages anemployee participation program by requiring departmental units to report onenergy usagee

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The Energy Office found that the absence of the "managerial dimension" led toa situation in which energy use is a hidden overhead cost. Prior to theplanned introduction of the Energy Performance Monitoring plan, the energyusage picture was presented to a very limited and narrow audience, namely afew members in the Budget Officee At most, energy usage figures were itemizedfor the end-of-year utility budget planning and then only involvedcommunications between the Energy Office, Budget Office and the FinanceAnalyst for the department. No flow of information to the department head orto the building and energy users on energy usage took place~ Consequently, norecognition of energy conservation or the lack thereof existed.

Based on this examination of system feedback, the purpose of the EnergyMonitoring Performance Plan is to spread responsibility for energy usagecity-wide to employees in each department and to aggregate responsibility tothe level of department heads as part of their role as senior staff~ The planis intended to improve efficiency of building operations by assigningresponsibility for energy use to City users 0 The system is supported byinformation from PG&E billing contained in the Energy Monitor utility file andadditional information collected depicting changes~

THE ENERGY PERFORMANCE MONITORING PLAN INCLUDES THE FOLLOWING REPORTS:

1) Departmental Energy Usage Summary Report - shows increases/decreasesof energy usage for department's major buildings~ Departments to becovered by the Energy Pe~formance Monitoring Plan are General Services(which includes the Police Administration Building, and office spacesoccupied by both staff departments and the administration units forline departments), Parks and Recreation, Fire, Library, Airportand Convention and Cultural Facilities&

2) Building Energy Use Consumption Comparison Report - individualizedreports for major buildings showing the building's energy performance0

3) Energy Performance Evaluation Worksheet - for each building, energyusage reductions will be evaluated against pre-set usage goals&Goals will be set in collaboration with departmental staff.

These reports which comprise the elements of the plan involve a reportingfrequency of quarterly monitoring of usage by building users, quarterly reviewof performance by partment heads, and annual evaluation by the City Manager

departmental performance~

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The plan functions by making department heads responsible for reporting ontheir record in meeting reduction goals of 5% in their quarterly andend-of-year reports to the City Manager. The assumption underlying this planis the departments will remind employees of the importance of practicingenergy efficiency on the jobtl With a management tool such as the EnergyPerformance Monitoring Plan, the Energy Office heightens energy awareness onthe part of employees. As a feedback mechanism, quarterly reporting monitorsactual performance and provides an incentive for department heads todemonstrate improvement.

WHY THE ENERGY PERFORMANCE MONITORING PLAN WAS ADOPTED:

Before adopting the Energy Performance Monitoring Plan, another managementstrategy, namely shared-saving was considered~ The Energy Office hadrecommended to the City Manager that departments be informed of usage levelsbefore and after introduction of a Shared - Savings Programe Then, eachparticipating department would be allowed to retain 50% of energy savingachieved or energy costs-avoided. While the recommendation had merits, fourreasons led to the concept's rejection:

1) In the City of San Jose, utility costs are part of the non-personalbudget items and may be inter-changed~ Non-personal detail expenses areappropriated as one category meaning there is no budget for each line item0If shared-savings were attempted, the City Council would need to authorize anew type of appropriation and a separate accounting trail by Finance wouldneed to be establishede Such a change would require an investment of time andbe somewhat cumbersome to implement~

2) Because of the inter-mingling characteristic of the above,departments have been able to expend the dollars associated with energysavings for other non-personal details ~ They now "keep" 100% of savings byreallocating@ However, if utility expenses rise, they must also "eat" costsfrom other programmatic funds or be allocated additional funds@

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3) Shared -. saving was viewed as unequitable because some departmentsare currently benefiting from funded-retrofits program which results in majorsavings $ These retrofits are funded through the departmental capitalimprovement program 0 Should departments receiving retrofits be allowed toretain 50% savings for yields for which they have not been directlyresponsible?

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4) Probably most importantly, the City Manager was interested inimproving the working relationship between departments and himselfo TheEnergy Management Program was viewed as no different from the other managementpractices and measurements that involve use of City dollars and productivity,such as amount of sick leave, resources to output ratio and so forthe As partof the current approach to management, the trend is to improve and centralizethe information system which supports upper management's control anddecision-making $ Rather than separate energy usage form the mainstream ofmanagement, the City Manager decided to treat energy usage savings as part ofthe city-wide picture of improved operationsG

THE ENERGY PERFORMANCE MONITORING PLAN's ADOPTION:

It was clear that the Energy Office needed to develop a system that wouldbuild in some reference point and measurement of performance. The systemneeded had to be capable of assessing as well as reporting on actual andcorrected (for weather, etc) usage of electricity and natural gas in Citybuildings~

The Ci ty of San Jose i s Energy Office was working with a comprehensive database known as the Energy Management Tracking System in developing the newperformance evaluation and reporting system~ It is useful to provide somebackground on what information resources were already in place~

The Ci t Y of San Jose i s advanced energy manitoring computer-based data fileswere developed for the purpose of tracking and monitoring energy usage@ Thedevelopment of the linkage and the creation of some of the data bases isdescribed in previous reports~ The Energy Office has a computerized data baseconsisting of utility bills for each account, grouping of accounts bybuilding, conversions of electrical and natural gas units into BTU's persquare foot by building, a program to compute cost-avoidance between any twoselected time intervals by building, an hours of operation log per buildingand adjustment for energy usage based on changes in hours of operations, aconversion of meter readings to a monthly standard, a log of degree days

a funded retrofits/cost by building~

In summary, the major elements of the already in place Energy ManagementTracking System used to establish performance monitoring plan are as follows:

l~ Identification numbers all public sector buildings;

2~ File of energy consumption over the previous years for each buildingrecords energy consumption by a single meter;

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3. A "cluster file" with historic energy consumption data for allbuildings not equipped with a single meter. A cluster can consist of a singlebuilding with multiple meters, multiple buildings with a single meter, or somegrouping of multiple buildings and multiple meterse Each cluster then becomesthe basic unit by which energy consumption is tracked;

4 a An "apportionment file u that can transform the raw data on historicenergy consumption into monthly consumption totals, based on the service datesshows in the original billings;

5 e A record of all energy improvements made over the previous threeyears for each building and cluster 0 This information is categorized by 35different types of improvement grouped under major headings such as"lighting", "HVAC", "building envelope", and "energy management system" a Foreach improvement made to each individual buildings or cluster, the date of theretrofit is recorded as is the cost and the entity (local government orcontractor) responsible for the work;

60 A file listing monthly hours of operation for each building andcluster over the previous three years;

7& A record degree days by month and year covering the same time periodfor which energy consumption and improvements data are kept;

8~ A file showing changes in equipment for each building and clusterthat could increase or decrease energy consumption;

An example of one of the outputs provided by the already in place EMTS isshown in Figure No 1 Las Plumas Energy Consum.etion Comparison Report. Thisreport contains most of the information contained in the files describedabove 0 It does not show payback; that figure is computed by dividing cost ofthe project by the yearly cost avoidance~

THE ENERGY MANAGEMENT PERFORMANCE PLAN WORKS AS FOLLOWS:

The energy usage goals are calculated by Energy Office: 0-5% reductionwithout retrofit; a greater than 5% reduction to equal funded payback withretrofit on buildings~ A 5% reduction is expected of each department.

During year, staff responsible for the buildings are expected to monitorusage in order to meet a 5% reduction e The monitoring by buildings isfacili tated by a worksheet which contains spaces for entering actual usageversus goal usage for each quarter@ The building staff is expected to use thequarterly updates and fill in the blanks next to the goal fixed for the 5%reduction

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year - target target) reductions: usage

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Factorsrelated toenergy use.

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usagepercent (*3)

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*l§ Payback of----years results when this target usage 1s 8chievede*2~ Difference~arget usage annually minus actual (adjusted) usage annually. A positive number indicates target

has been reached~ The higher this runber; the better performanceo A negative runber indicates target has notbeen reached.

*30 Percent abovelbelow target := target percent of base minus actual (adjusted) percent 0' base. A positiverunber. .indicates target has been reachede Actual (adjusted) percent of base Is computed by dividing annualized (adjusted)actual usage, by base year cons~tioof)

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The Energy Office sends the Building Energy Consumption Comparison Report asshown in Figure 1, Las Plumas. Energy Consumption Comparison Report, of theelectricity and gas energy usage to 75 major buildings, through thedepartmental Energy LiaisonG

The Energy Consumption Comparison Report (ECCR) contains a detailedexamination of the energy usage for the building and is used to monitor abuilding 9 s energy performance ti& The report shows the building' 5 usage fornatural gas and electricity over two comparison intervals, the difference, andsavings 0

ACCOMPANYING THE ECCR IS THE ENERGY PERFORMANCE EVALUATION WORKSHEET:

The department's Energy Liaison records usage information along side expectedperformance on the worksheet provided which is Figure 2, Energy PerformanceEvaluation Worksheet. The Energy Performance Evaluation Worksheet is to befilled in by the building supervisor or person assigned by the department forenergy reporting at the building. The Energy Office supplies the base usag.eand reduction level information necessary to complete the form $

The first piece of information supplied by the Energy Office is whether thebuilding has had a funded improvement that is. expected to. produce a decreasein consumption during the time period over which the assessment will takeplace~

If no funded-improvement was installed on the building, as is the case in themajority of buildings, the department is to use arithmetic to find the 5%reduction goal for electricity and natural gas@ This amount is taken off theusage experienced during the base year@ We will use 1983-84 as the base yearfor the monitoring period of 1984-850 In 1985-86, the base year will become1984-85 and so forth @ In the case of Las Plumas Warehouse, a retrofit didoccur so we would not use the simple 5% reduction but factor in theanticipated reduction 0

an improvement has been installed as in this case, the Energy Office willprovide the goal information @ The Energy Office calculates the expectedreduction as determined by the payback contained in the project funding reportto City Council~ In these retrofit cases, the goal for usage is set accordingto the anticipated yearly reduction. In the case of Las Plumas Warehouseanticipated reduction, Figure No 1, the information provided would be the goalreduction associated with the payback calculated for the gas-fired furnacereplacement ~ In this example, the furnace replacement provides theengineer's estimate to be associated with, the retrofit G In the Las Plumasexample, the actual percent reduction is 88% for natural gas 0 The worksheethowever would be completed with the expected reduction which in this case was50% based on the engineering audit*

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A possible problem arises with the expected savings from funded retrofits@The data used to estimate savings is from preliminary engineering audits andis not totally reliable $ At times these estimates are overly optimistic andeven when a building manager achieves energy savings in energy management, thebuilding may be tagged as failing to perform as expected due to erroneousexpectation of savings from the retrofit~

FREQUENCY OF REPORTS:

Each quarter, the Energy Office transmits to the department the previous usagefigures for buildings for the previous quarter. These are distributed by theDepartment Head to the building staff persons assigned the monitoring task.The figures are filled into the blank lines shown on the Worksheet. At theend of the year, actual usage versus the expected usage is examined by theEnergy Office and comments regarding usage collected@

The Energy Office sends Departmental Energy Performance Report to theDepartment heads. Copies are also sent to City Manager $ Based on thisinformation, department heads are able to recognize users and operators wheresavings have occurred. Moreover, the departmental units are evaluated by theCity Manager~

The Departmental Summary Report shows the buildings and energy consumptioncomparison for all accounts under the departmental heading~ The report servestwo purposes: to provide a listing for the Department Head on the performanceof each building and to provide the City Manager information on the energyperformance by department~

The Energy Performance Resort is printed by the computer three ways, each witha different energy measure: Kwhs, Therms and BTU's/sq~ft~ The buildings arelisted three times, first in terms of Kwh's usage, then in terms of Thermsusage and thirdly in terms of BTU/sq~ft0 usage~

At the end of the year, the Energy Office itemizes department 9 s BTU/sq * ft 0

performance comparison to the previous year @ The Energy Office makesquantitative corrections or adjustments related to degree days heating andcooling, and increases or decreases due to changes in hours of operationo

The end-of-year analysis is performed by the Energy Office 0

The Office considers:a) kilowatthour, therm and BTU/sqeft. usageb) percentage and absolute difference from energy usage goalsc) hours of operationd) fluctuations in weathere) increased energy - using equipmentf) increased level of service provided by the department

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Departments that show an increase usage in the adjusteq BT~/sq.ft~ areidentified. Departments that achieve a 5% or greater reductIon In BTU/sq. ft.are recognized~ When buildings reach an optimal operating conditions and whenall feasible retrofits have been installed, the report is to be completed witha 0% reduction goal & Over the long term, we expect consumption to drop toconservation levels and then remain there.

With the introduction of the Energy Performance Monitoring Plan, the EnergyOffice is furnished with a practical tool to work with departments and helpthem achieve their energy efficiency performance goals e The Energy Officemoves into the role of assisting departments in achieving goalse

SUMMARY OF THE FEATURES OF THE PLAN INCLUDE:- -easy to follow principles

-minimal paper work for department-automated batch computer program already developed-Energy Office updates files as necessary from office terminal-system assigns responsibility for energy use to user-provides useful measurement information to managers on

productivity-feedback loop to user on energy usage facilitates improved

performance-initial base savings equal approximately $70,000 annually;

based on 5% savings taken off general funded departmentsutility bill

-makes energy use a visible overhead cost

REFINEMENTS WHICH NEED TO CONSIDERED:

1) Assign reduction goal directly to the departments and requiredepartments to report directly to the City Manager;

2) Submeter Urenter u departments and expand the program to thesedivisions;

3) Require departments to develop their own work programs to meet thereduction goals;

4) Objection to additional paperwork resulting frommonitoring usage by departments;

5) Lack of clarity regarding who is responsible for day-to-dayoperations of buildings; ege departments or maintenance staff;

6) Determine some rewards for good performance;

7) Lack of precision in estimating retrofit reduction goals;

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8) Lack of precision in adjusting for degree day heating and coolingand hours of operation;

9) Objection to taking on accountability for spaces which are leasedby divisions which pay the utility expenses;

10) Oi fficul ty in determining when a 0% reduction rather than a 5%reduction is satisfactory~

LESSONS LEARNED:

The Energy Performance Monitoring Plan was refined to improve departmentalparticipation in the energy reduction program~ By utilizing this type of anapproach, the management of the energy program is on a par with theadministration of other established practices of management in a largeorganization 0

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LOW INCOME AND EQUITY ISSUES

Atkielski, RonaldSan Francisco Housing Authority

Brown, Marilyn A0Oak Ridge National LaboratoryP.,O$ Box XOak Ridge, TN 37830

Buhl, LanceOffice of Corporate ContributionsStandard Oil Company of OhioMidland Building101 Prospect Avenue W~

Cleveland, OH 44115

Cowell, Stephen LeMassachusetts Fair Share304 Boylston StreetBoston, MA 02116

Ferrey, StevenNational Consumer Law Center, Inc~

11 Beacon StreetBoston, MA 02108

Goldman, Charles A~

Lawrence Berkeley LaboratoryB90HBerkeley, CA 94720

Katz, EllenTechnical Development11 Beacon StreetBoston, MA 02108

Koved, D..Energy CenterUniversity of Pennsylvania3814 WalnutPhiladelphia, PA

Krumholz, NormanCleveland for Neighborhood DevelopmentCollege of UrbanCleveland State UniversityCleveland, OH 44115

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Mihaly, Mary EeCity of ClevelandOffice of Consumer Affairs1230 E~ 6th Street, 2nd FloorCleveland, OH 44114

McDermott, MarkCleveland Center for Neighborhood DevelopmentCollege of Urban AffairsCleveland State UniversityCleveland, OH 44115

Morgan, StephenTechnical Development Corporation11 Beacon StreetBoston, MA 02108

Moulton, DavidSubcommittee on Energy, Conservation and PowerH2-316U@Se House of RepresentativesWashington, DeCe 20515

Ritschard, Ronald~

Lawrence Berkeley LaboratoryB90H

, CA 94720

Rebitzer, RobertMassachusetts Fair Share304 Boylston StreetBoston, 02116

Rollinson, Paul AeUniversity Illinois

Sackett, James GeCoordinator

Energy ManagementOffice The Mayor421 City HallTucker and Market Streets

~ Louis, MO 63103

, Robert M&Energy Center

of Pennsylvania3814 Walnut StreetPhiladelphia, PA 19104

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COMMUNITY AND LOCAL GOVERNMENTS

Brummitt, Mary Jane DeMinneapolis Energy OfficeCity Hall, Room 334Minneapolis, MN 55415

Egel, KenCity of Santa MonicaOffice of the Director of General Services1685 Main StreetSanta Monica, CA 90401

Mansson, TommyEnergy Research CommissionBox 43020S-100 72 StockholmSweden

McDonough, Harry T0Peter Merrill Associates, Inc015 Broad StreetBoston, MA 02109

Parisi, Dominick HePeter Merrill Associates, Inc~

15 Broad StreetBoston, MA 02109

Proctor, JohnSun Power Consumer Association7637 Se GarlandLittleton, CO 80123

1...1"-_ .._ ...... -'1._'"-', BradleyEnergy Federation, Inc036 Concord StreetFramingham, MA 01701

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BEHAVIOR OF GROUPS

Dolber-Smith, Edward GeUniversity of CaliforniaApplied Behavioral SciencesDavis, CA 95616

Gee, Patri'cia S$North Carolina Alternative Energy Corp~

P000 Box 12699Research Triangle Park, NC 27709

Hunter, Yvonne L0Energy Resources Management Assistance ProgramLeague of California Cities1400 K StreetSacramento, CA 95814

Miller, ClaraNew York Energy Conservation Fund148 Madison Avenue, 14th FloorNew York, NY 10016

Norton, RitaCity of San Jose801 N~ First StreetSan Jose, CA 95110

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