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Getting started on an energy management system (EnMS) begins with identifying the benefits to the organization of a systematic approach to energy management, gaining top managements commitment, setting out a clear plan for implementation, and understanding the basics of EnMS documentation. The initial impetus for implementation of an energy management system may come from management or from employees, but either way, top management must be committed to the effort for it to be successful. Making the business case As a practical matter, making and communicating the business case is important to the success of the EnMS. The organizations business drivers for the effort need to be identified and the role that the energy management system will play in supporting those drivers understood. It is recommended that key individuals, who have an interest and understand the benefits of EnMS implementation, participate in preparing the materials required to gain support for the initiative. Gaining the buy-in and support of top management is critical. Top management is briefed on the energy management system, the positive impacts it will have on the bottom line and the drivers that affect growth and lead to business success. Ensure top management commitment Once top management is sold on the concept and has made the decision to move forward, they must demonstrate their commitment by providing the leadership and resources needed for the development, implementation, operation and continual improvement of the EnMS. Top management is responsible for developing the energy policy that communicates the importance of energy in the organizations strategic plans and objectives. Top management appoints na energy management representative who has overall responsibility for developing, implementing and maintaining the EnMS. The management representative works with top management to establish the scope and boundaries for the EnMS and form an energy management team. Typically, a crossfunctional team is used to provide the diverse set of skills and viewpoints involved in developing and implementing a successful and effective EnMS. Communication processes ensure awareness of the EnMS throughout the organization and promote participation for fostering continual improvement. Top management supports continual improvement by regular system reviews and providing the resources necessary to address EnMS requirements. Establish the structure for EnMS implementation The management representative and the energy team, with top management input, lay out the plan for EnMS development and implementation. The plan considers the overall time frame for implementation, other organizational goals and priorities, and integration with other management systems (if applicable). It also considers available resources and designates responsibilities. Communication channels are established to make team assignments, provide guidance and support, check progress and report status. Information should flow readily in both directions between top management and organizational personnel. Communication includes sharing successes at all levels of the organization. This promotes ongoing buy-in and participation in the implementation effort. Understand EnMS documentation Another element of getting started on EnMS implementation is gaining an understanding of the role of documents and records in the system and the decisions the organization must make about its EnMS documentation. There are a number of

common misconceptions about the extent of documentation needed for a management system based on an ISO standard. For an ISO 50001 EnMS, a variety of records must be maintained, but only a few documents are explicitly required. Organizations have a great deal of flexibility, but also responsibility, in determining what documents and records are needed for their EnMS. Follow these steps to help your organization get started on the path to successful EnMS implementation: Step 1.1 Make the business case Step 1.2 Secure top management commitment Step 1.3 Establish the structure for EnMS implementation Step 1.4 Understand EnMS documentation


"Where are we heading?" Questions : Do you know who the champions for an EnMS would be in your organization? Do you know who the naysayers would be? Do you know the strategic business goals of your organization? Do you know how much your organization spends on energy? Do you know what the value of energy or sustainability is to your key customers or main targe t markets?

Energy conservation, energy efficiency, eco-consciousness, environmentallyfriendly, sustainability, and the like are noble concepts which should play a role in an organizations efforts to minimize energy consumption. However, the bottom line and long-term viability are most often an organizations key factors for determining the level of effort for organizational initiatives including energy management. The benefits of improved energy performance need to be identified and communicated to top management in terms they understand. Consequently, making the business case is an important part of establishing an energy management system. The issues to be addressed in establishing the business case include: Step Step Step Step 1.1.1 1.1.2 1.1.3 1.1.4 Identify key internal influencers Understand your business drivers Prepare sales pitch Brief top management


Internal influencers are individuals in the organization who do or could have interest or influence on decisions related to energy. To gain support for the development and operation of the EnMS, these individuals should be identified and their needs understood and addressed. Management Management wants the business to operate smoothly and must provide resources to ensure that the organization is efficient; employees are productive; regulatory requirements are addressed; and, shareholders are satisfied. An ISO 50001 EnMS provides a mechanism for addressing managements energy related issues. However, each manager is likely to have a different focus relative to energy use and energy consumption. (Examples available.) Consider each position or function and identify how energy is important and what would encourage their support and participation.A Key Internal Influencers Worksheet and Example can be useful in completing this Step.

Employees Employees want to be productive and use the most efficient methods and equipment. They want management to provide the resources so they can work smarter, not harder. Employees want a system in place to correct problems and continually improve efficiency in a timely fashion. When identifying key internal influencers, determine the individuals in the organization whose responsibilities or activities will affect or be affected by the organizations energy u se and consumption.


Business drivers are the factors that influence or direct an organizations strategy and goals and therefore its business needs. They are different for each business, and management identifies their organizations major drivers. Development tools are available. To develop the business case, managers will want to know how the EnMS and improved energy efficiency affect the organizations business drivers. Information on how good energy management is good for business is provided to support such a business case. The management representative (Step 1.2.2) and the energy team members (Step 1.2.3) need to understand the drivers and the energy management systems impacts. They work to ensure management understands these impacts by presenting information in terms that are important to management (Step 1.1.3 and Step 1.1.4). If the management representative and energy team members have not been appointed yet, then someone needs to be assigned this responsibility. Examples of some general drivers are: Financial Legal Social External Internal

Understand your business drivers - Financial Financial drivers are typically the key drivers for business success. The impact on financial drivers by the EnMS and improved efficiency will usually play a large role in system acceptance. These drivers should be identified and quantified to the extent possible to determine the potential impact on the organizations financial health. Impacts can be verified or more accurately quantified during data collection and assessment activities. Some of the financial drivers related to energy and energy management issues can be found here. Understand your business drivers - Legal Many of the energy issues that can impact legal business drivers are closely linked to environmental issues. Consequently, an effective energy management system can mitigate a potential legal burden associated with environmental issues. Relevant legal issues that could impact energy purchasing and use must also be identified. Once identified, procedures and communication channels are implemented to ensure legal and regulatory compliance requirements are addressed, relevant data is collected and appropriate documentation is completed. Examples of legal issues relative to energy use and consumption that are currently, or soon could be, in effect are provided. An energy management

system helps an organization identify and coordinate the relevant legal issues and address compliance requirements. Understand your business drivers - Social Social pressures can be as daunting as financial and legal issues. An energy management system can help address social issues as well as provide evidence of an organizations efforts to do so. Many of the public concerns are related to environmental issues, but there are others that are important. Some of these may include: Climate change (e.g. emissions/carbon footprint/greenhouse gases) Alternative energies (e.g. solar, wind, thermal, hydro, nuclear, biomass) Natural resource depletion Environmental stewardship Energy conservation Energy waste Ethics, values, principles Triple Bottom Line Sustainability Pressures can be exerted by local communities, trade associations, environmental groups, employees, and government entities, just to name a few. An organization should identify the relevant issues and install the systems necessary to minimize negative impacts and communicate the positive efforts being made to address them. Understand your business drivers - External External drivers are typically outside the organizations control. There are many external groups or stakeholders that could have an interest in the organizatio ns energy activities and help drive the organizations direction. Their interest could be reflected through financial, legal or social drivers. The external groups that have or can have an impact on the organization can be identified, and appropriate procedures and communication channels installed to address the needs and interests of these groups relative to energy use and efficiency. An EnMS can help with addressing these needs and interests. Some of the influencing groups could be: Stockholders Obviously, stockholders are interested in the profitability of the organization and in measures that reduce costs. They are also interested in the business operating legally and addressing relevant social issues, and they expect to be provided a measure of assurance of the businesss long term viability. Lenders Lenders want their money back with interest. An energy management system is a tool for the organization to address continual improvement thereby improving profits and efficiencies and enhancing long term existence. Customers Customers want the best bang for their buck. Reducing costs and improving efficiencies allow products and services to be offered at the lowest price with less waste, thus providing the best value to the customer and improving the organizations competitiveness. The continual improvement

component of an energy management system can help an organization improve efficiencies and reduce costs. Suppliers An efficient supply chain is important to competitiveness. ENERGY STAR Supply Chain Working Group related information available. An important component of supplier selection and maintenance is a commitment to continual improvement including energy efficiency. An energy management system can help with supplier selection. The presence of an energy management system would be one indication of a suppliers commitment to energy efficiency improvement. Public The public in general as well as many public groups can be drivers for an organizations operation. Both can provide pressure relative to emissions reduction, resource conservation, alternative fuels, and the like. Public utilities can impose requirements that must be addressed. An EnMS can help an organization address these issues and provide evidence of its efforts. Examples of public interested parties are provided. Government An energy management system can help an organization address existing regulations and plan for future government regulations. It provides the system to help the organization identify and address relevant government codes and laws. Examples of governmental interested parties are provided. Understand your business drivers - Internal Internal influencers (Step 1.1.1) have already been discussed, but there are also internal businessdrivers that impact an organizations strategy and drive its business needs. Internal drivers are generally controlled by the organization and reflect the need of an internal stakeholder, but can be a response to an external driver. These drivers are identified to address the needs and interests relative to energy use and efficiency. Relevant internal drivers can include: Employee satisfaction Employees want to do a good job and operate in a good working environment. Improving energy efficiency makes the process more efficient and can result in an improved operating environment by reducing heat, exhaust and waste levels. Productivity As operations are improved and less energy is required, they become more productive. Productivity is output over input; as output increases or input decreases, productivity is improved. Examples of energy efficiency changes that can result in improved productivity can be found here. An improved working environment promotes improved employee morale, more output relative to input, and improved operational control. Technology Advanced technologies are typically more energy efficient and may improve the process or operation. In addition to improving efficiency, advanced technologies can also result in improved operational flexibility and better control. Maintenance Regular maintenance is critical to maintaining equipment operating efficiency, which results in peak energy efficiency. It also promotes improved reliability, better schedule adherence, better utilization, and extended equipment life.

Organization development goals Strategic goals by the organization to be the best, the first, the most efficient, the biggest producer, etc. drive the organization to include energy efficiency as a component of their management system. Financial, legal and social drivers all play into the organizational goals; and the role energy efficiency plays in addressing those drivers should be addressed. Identify the relevant internal drivers, determine how they interface with the organizations energy management and energy performance, and put in place the appropriate systems to address these connections. Financial driver examples: Energy savings go right to the bottom line. Money that is not spent on energy is money that is kept in the business for other uses. Energy reductions lower operating costs and can reduce maintenance costs. Conversely, poor energy performance steals capital that could be spent on other business needs. Energy reductions promote emissions reductions. Emission reductions promote reduced compliance requirements. Reduced compliance requirements promote reduced fees, penalties and reporting; and reduce the amount spent on chemicals, environmental controls, etc. Financing, rebates and tax incentives are available for some improvements. Energy management system openness reduces the risk profile for lenders. Lenders can be more favorable toward companies that successfully utilize an energy management system and report on successes of improved conditions and reduced costs. There is a positive impact on shareholder value. As energy reductions improve the bottom line, the company value improves, which in turn increases shareholder value. As energy efficiency improves, costs are reduced and the company becomes more competitive. Reduced emissions from reduced consumption can allow a company to participate in cap and trade for financial gain. There are several risk factors that can be reduced by utilizing an energy management system. o Energy price increases As energy prices rise, there is less impact with reduced energy consumption. o Greenhouse gas emission reductions More emphasis is being placed on environmental impacts, and reduced emission levels will reduce these impacts. o Negative impacts on cash flow and business value Increased utility prices and requirements to reduce emission levels will require more capital and decrease the value of the business.

Legal driver examples: Laws requiring the construction and operation of more energy efficient facilities are becoming more common. Building codes are incorporating energy efficiency requirements. Government organizations are setting guidelines for energy performance. For example, theENERGY STAR Guidelines set by the U.S. Environmental Protection Agency and the Department of Energy. EPA has issued the Final Mandatory Reporting of Greenhouse Gases Rule, a national registry that requires large emitters of heat-trapping gases to collect their greenhouse-gas data. Other rules are proposed. Minimum energy performance standards (MEPS) that limit the maximum amount of energy that can be used by a product are mandatory for some products in some countries. Trade association standards e.g. ASHRAE Standard 90.1 -- Energy Standard for Buildings Except Low-Rise Residential Buildings which provide requirements for energy efficient design of buildings. Various government regulations such as the Energy Independence and Security Act of 2007and the Energy Policy Act of 2005 which provide various provisions, requirements and incentives relative to energy use and efficiency. Energy taxes are frequently discussed and could be a future consideration. Rules, regulations and policies for renewable energy that can have a positive or negative impact on company requirements are in place or proposed in various places. Under International Climate Change Agreements, nations commit to reduction of greenhouse gases which has impacts on industry. The U.S. Environmental Protection Agency Clean Air Act establishes limits for air pollutants. Cap and trade regulations that cap emission levels and allow more efficient companies to sell their credits to higher emitters could be an issue for companies. This is also a financial driver.


If management has not already committed to EnMS implementation or if commitment is lacking, they will need to be sold on the benefits so they can get on board and provide the support required for EnMS implementation to succeed. Prepare a sales pitch that considers the following: The target audience is management. What are the drivers that are important to them? Management is typically interested in the bottom line, but there may be other drivers that are important. Focus on these items. Make the presentation

complete but brief. Management frequently just wants to hear the major facts. Have additional data available if more detail is requested, but if presentation timelines are provided, stick to them. Focus on what you are trying to convey. Present the background required to support the benefits of an EnMS and dont mix in other issues or ideas unless they are directly related. Focus on the continual improvement-based nature of the management system and the direct impacts on the well being and improvement of the organization. Present the benefits in managements terms. Using the drivers already identified, present the benefits in terms of those drivers. Make sure management understands the benefits to be realized with respect to their key items of interest. Understand the desired objective. What is the expected result of this presentation? Provide information to encourage that result or offer suggestions. Begin preparations with the elevator speech. An elevator speech is a short summary used to get a point across quickly and simply, and should be completed in less than two minutes. Use an Elevator Speech Worksheet to focus on the information that is essential to convey and then expand to the time available. Regardless of the amount of time available, make sure the important points are presented at the beginning of the presentation. To make sure management hears the information you want them to hear, an old adage is appropriate here: Tell them what you are going to tell them, tell them, and tell them what you told them.


Brief top management using the information prepared in Step 1.1.3. Develop a presentation using the organizations standard presentation tools or other format that best displays the information. Stay within the timeframe provided and stick with the planned presentation. Be prepared to answer questions and provide more detail if requested. The intent of the presentation is to briefly provide the information needed for management to make any necessary decisions and to provide any details they require. If the topic begins to stray from the information required to address the final objective, put the presentation back on track by bringing the group back to the presentation materials. An example presentation agenda is here. Adjust this agenda based on the available time.


"Where are we heading?" Questions : What will be included in your EnMS? Who will be your energy team leader? Who can help you achieve your program goals? How does your organization communicate? How will you involve management? How will you know the energy situation in your organization has improved?

Top management commitment is critical to the success of any major project, including implementation of a management system. The effort will not succeed without management support. Management needs to be visible and support initial energy management system development. They must continue to support the effort during implementation and system operation. In addition to providing general support, they must provide the resources (time, personnel, funding, materials, etc.) for people to be involved in the process. There are several steps that management must take to demonstrate their commitment to the system. Top management is responsible for the following actions: Step Step Step Step Step Step 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 Establish the scope and boundaries Appoint a management representative Assign the members of the energy team Define the energy policy Create organizational awareness Ensure continual improvement


The scope and boundaries of the management system allows the organization to focus their efforts and resources by defining the extent of the energy management system. The scope of the management system may be a building, plant, facility, site or corporation or some component of these but will cover the activities, facilities, and decisions associated with the energy sources within the scope. The boundaries are the physical or organizational limits the organization identifies which may include one or more processes, sites, equipment, or other relevant limitations. The scope may include several boundaries. Top management identifies and documents the scope and boundaries of the organizations energy management system. A list of resources that can help you define the scope and boundaries for your organization is here . Scope and boundary examples are here. The Scope and Boundaries Worksheet can be used to formulate a scope and boundaries statement.


Management appoints a management representative to oversee the energy management system. The general responsibilities of the management representative are to: Ensure the energy management system is established, implemented, maintained, and continually improved Keep top management informed on the energy management system's performance Report to top management on energy performance Identify energy management team members with the approval of management Plan and direct energy management activities through the energy management team that support the energy policy Ensure all levels of the organization are aware of the energy policy and objectives Ensure responsibilities and authorities are understood Make sure processes are in place to ensure the energy management system's effectiveness Ensure continual improvement processes are in place


An energy management system relies heavily on a team approach. The team approach takes advantage of the diversity of individuals' skills and knowledge for the benefit of the organization. A team provides different perspectives on issues, distributes the work load, eases implementation, promotes wider acceptance and improves prospects for sustaining the system. Similarly, the energy team brings together relevant expertise to guide development, implementation and maintenance of the energy management system. The size, composition and responsibilities of the team will vary depending on the size and structure of the organization and scope of the energy management system. Considerations for energy management team membership include representatives from functional areas dealing with the selection, procurement, consumption, reliability, disposal and environmental impacts for fuels and energy systems. These functional areas may include: Engineering Maintenance Accounting Design Purchasing Facilities management Production Administration Environmental

Suppliers, contractors and customers may also have a role in the energy management activities of the organization and sometimes their representatives are included on the energy team. Team members are typically selected by the management representative with management input or approval. Select team members to represent all the relevant organizational functions, but don't make the team so large as to be unproductive. Individual and team responsibilities and authorities are defined and communicated by management and the management representative. The management representative may lead the team or a separate team leader may be selected. During the initial development of the energy management system, the team will meet frequently to make plans, schedule activities, assign responsibilities and review progress. Once the system has been developed, the team will ensure its continued operation and manage activities for continual improvement. Typical team activities can be found here . A sample energy team roster is available to help establish the energy team.


An energy policy establishes and validates top managements commitment to energy performance improvement. It must be defined by top management, as well as documented and understood by employees and anyone working on behalf of the organization. The policy must state managements commitments to: achieving continual improvement in energy performance ensuring availability of information and resources to meet energy objectives and targets compliance with applicable legal and other energy requirements subscribed to by the organization support purchasing energy efficient products and services support design for energy performance improvement

The policy provides the framework for setting the companys energy objectives and targets and is consistent with the strategic plan. In a very general sense, the policy addresses what is important to the organization in terms of energy. Also, it must be appropriate to the nature and scale of energy use and consumption by the organization. It should be consistent with any other management system policies already in place. The policy may be only a few sentences or several paragraphs. Usually, simpler is better but it needs to address all the items listed above, be relevant to the defined scope of the energy management system and reflect the organization's strategic objectives. It is regularly reviewed and updated as necessary. ENERGY STAR also provides suggestions that are helpful for developing an energy policy. Worksheets to help define the energy policy are here. An example energy policy can be viewed here.


The next step in demonstrating management's commitment to improved energy performance and EnMS implementation is communication of the initiative to employees and other affected parties such as on-site contractors and suppliers. This is the time to start what will become an ongoing process for communicating energy-related information and updates to the workforce and others. Top management takes the lead in communicating the importance of energy management across the organization. This endorsement by management establishes energy management as an important organizational priority and facilitates employee awareness of and buy-in to the effort. Sometimes, kick-off events such as an employee luncheon (with contractors invited) or an all-employees meeting are used to announce the organization's commitment to energy performance improvement and the undertaking of EnMS implementation. Visual presentations are often used to communicate key information, such as: What are we doing? (Implementing an EnMS) Why are we doing it? How will an energy management system help us? Who is leading the effort? Who else is involved? (Everyone!) What energy commitments have we made? Why do your actions matter? What's next? An Example Awareness Presentation Agenda shows how the topics can be organized. An Awareness Presentation Template, which can be customized to your organization is provided. Visual presentations are also often used to communicate energy management information to contractors and suppliers who work on the premises of the organization. Other common approaches for contractor and supplier communication include brochures or reference cards, letters, emails, news releases, contractor handbooks, etc. If available, it is best to leverage the existing contractor and supplier communication processes, such as those used for safety and health or environmental. Creating organizational awareness provides opportunities to encourage suggestions, feedback, and participation among employees. It provides the foundation for training and awareness related to the EnMS (addressed in Step 5.3 and Step 5.4) and supports understanding on the part of employees and contractors of the expectations for their behavior and job activities as they relate to energy. As the energy management system continues to develop, there are additional items that employees and contractors will need to know. For example, everyone needs to know their responsibilities within the system. This Step is the beginning of what will be an ongoing process to ensure energy management awareness and communication across the organization. Further information about U.S. EPA awareness brochures and other materials related to energy efficiency is available through the above link.


An ISO 50001 energy management system is based on the Plan-Do-Check-Act continual improvement framework. Successful implementation depends on the commitment from management throughout this cycle and is demonstrated through providing the leadership and resources necessary to improve energy performance and the energy management system. Management demonstrates commitment by ensuring the items below are addressed in the energy management system and are used to improve energy performance. Links are provided to the sections of this eGuide where the item is addressed in more detail. Energy performance indicators (EnPIs) Step 2.6 EnPIs that support the organization's overall goals, strategies, and energy policy are developed and utilized to improve energy performance. Objectives and targets Step 3.1 Realistic objectives and targets are developed in line with organizational strategies and the energy policy, and move the organization towards accomplishing its overall goals. Action plans Step 3.2 Action plans describe the actions, responsibilities, timeframes and resources required to meet the objectives and targets. Measuring Step 2.2; Step 2.6; Step 6.1 Resources are provided to ensure the necessary data measuring activities are conducted. Management review Step 7 Management reviews are conducted regularly, top management is present and outputs from the review address deficiencies or system improvements. Reporting Output from the management review Step 7.2 is a key component of reporting. Management must keep the organization informed, especially relative to the importance, effective operation and improvement of the energy management system. This information comes from the results of management review or other management activities. Long-term planning Planning for the future is a major management responsibility. Energy performance is a key element of the organizations operations and it must be considered in managements long -term planning. Management ensures that as organizational goals and strategies change, appropriate resources and communications are provided to allow changes to energy management system activities.


"Where are we heading?" Questions : How do you manage projects within your organization? What kinds of planning tools does your organi zation use? How do you communicate to project team members? Who do you need to communicate with about implementation resources?

Like any other project undertaken by an organization, implementation of an EnMS is an initiative that should be planned. Planning enables the organization to set expectations and identify and allocate the needed resources. An implementation plan cannot only help to keep the effort on track, but also provides a mechanism to ensure that changing circumstances that affect the effort are taken into account and the appropriate adjustments made. The steps involved in establishing the structure for EnMS implementation are: Step Step Step Step 1.3.1 1.3.2 1.3.3 1.3.4 Set the timeframe for implementation Develop the implementation plan Establish communication channels Celebrate success often


The management representative works with management to determine the timeframe to implement the system. This timeframe needs to: dovetail with other priorities of organization, be consistent with business drivers (Step 1.1.2), be in-line with strategic goals (Step 1.1.2), meet any customer required timeframe, and be realistic.

The number of hours that it takes to implement an energy management system varies dramatically. Management commitment and the amount of resources allocated to the project affect the time required. Some organizations include only the internal time of their team and its activities. Others include every activity, meeting, and training discussion or session for all employees involved in the effort. This accounts for the wide range of time estimates that have been reported. On average, it takes 12-24 months to implement an energy management system. If an organization already has a management system such as ISO 9001 or ISO 14001 in place, it may take less time.


The implementation plan is an important tool in the success of implementing an energy management system. Management buy-in and commitment are critical for the success of the implementation effort, and the implementation plan provides the information needed by management to approve the required resources and schedule. The management representative is typically responsible for ensuring the energy management system is implemented. The implementation plan provides the structure needed to enable the management representative to monitor the progress of the implementation. There are many tools that can be used to develop an implementation plan. Some examples of commonly used software packages are Microsoft Project and Microsoft Excel. The implementation plan is typically prepared by the management representative, together with the energy team, following basic rules of project management. The level of detail within the plan needs to be appropriate for the organization, and the format should be whatever project management process the company uses. The plan needs to: be developed with a clear understanding of the available resources, involve employees throughout the organization, make assignments that are appropriate to the person and to the time they have available, and provide realistic and achievable timeframes.

The level of detail in an implementation plan will vary depending on the size and complexity of the project. As a minimum, the following will be identified in the plan: tasks and associated deliverable(s); position responsible for ensuring each task is completed; other resource needs such as outside consultants, software or hardware; date each task and deliverable is to be completed.

Implementation Plan = What + Who + When

It is imperative that the team members be held accountable for their roles and responsibilities. Some organizations hold personnel accountable by including the implementation effort in their yearly individual work plans and during the annual evaluation of their work. The fact that a person has been given a task does not always mean they must do the task, but they must ensure the task is completed. It is a good idea to include dedicated "team time" in your plan. Having "team time" as an assigned priority for your team is important to overcome other needs that will come up due to normal business issues. The Implementation Plan Template, shows the typical content of a plan for implementing an energy management system. The Example Implementation Plan is an example of a simple implementation plan showing the minimum information and several examples of content.

For companies who intend to seek 3rd party certification of their energy management system, tasks such as the certification audit, resolution of any nonconformities, and other related items would need to be added to the implementation plan. The management representative presents the plan to management for approval and allocation of resources. The management representative briefs management on the plan, answers any questions related to the plan, and ensures the plan is updated as needed to reflect management feedback. Once approved, the management representative and the energy team ensure the implementation plan is communicated to other affected management and to personnel who have been assigned tasks. The implementation plan is of no value if it is out of date. Update it often to reflect the current situation and communicate changes to management, the energy team, and others who have responsibilities in the plan. Changes to the plan that affect schedule or resources are approved by management.

The implementation plan is a living document and should be updated as needed.

Some obstacles typically encountered during implementation include: Insufficient resources or time Unclear or insufficient authority Supervisors or managers who have not bought into the process Doing it alone Conflicting priorities "Not my job" mentality Having an implementation plan, which defines expectations and is approved by management, helps to overcome these obstacles. Resource needs are defined, schedules are set, and responsibilities are assigned in the plan before the effort begins. Therefore, once the implementation plan is approved and communicated to affected management and personnel, resource issues have been addressed, organizations are clear as to priorities, and assigned personnel know what is expected of them. In summary, the implementation plan: establishes the structure of the EnMS implementation, defines the overall timeframe for implementation, defines the tasks, deliverables, and milestones along the way, and assigns roles, responsibilities and resources.

The implementation plan provides a roadmap for success.

This project management approach: establishes expectations, ensures the most appropriate individuals are performing the tasks, decreases work duplication, improves efficiency of the organization and teams, and decreases employee frustration.


Communication among personnel who were assigned task(s), energy team members, the management representative, and management is essential to the success of the implementation effort. The management representative is responsible for monitoring the progress of the implementation effort and this can only be accomplished through communication with energy team members and assigned personnel. The energy team and assigned personnel are responsible for bringing any issues they cannot resolve to the attention of the management representative as early as possible. The management representative then works with the energy team and assigned personnel to resolve those issues. The management representative makes management aware of any issues that require their involvement and obtains approvals as needed. A typical communication flow is shown in the diagram below.

As a management representative, work with the energy team and assigned personnel. Be proactive in your monitoring and focus on the future, not the past. Identify problems early and solve them as quickly as possible. Monitoring includes verifying the activities are on schedule and that the needed resources are available. Some ways you can monitor progress are: review deliverables as they are completed; receive status reports from team members; hold periodic team meetings; meet with individual team members; and, send out reports. It is a good idea to include scheduled energy team meetings and meetings with management as part of the implementation plan. A formal schedule helps ensure these meetings are conducted. Team members and responsible personnel should not wait for the scheduled meeting to report issues, but should notify the management representative as soon as an issue arises. You may want to have team members complete a Task Status Report for each of their tasks and submit at regular intervals or at each team meeting for review. Documenting the status of each task may not be necessary, or practical, in all organizations and you may decide that verbal communication is adequate. The important thing is that the information gets communicated and issues are resolved such that the implementation effort is successful.

Once you get feedback from team members, decisions need to be made and action needs to be taken. Below are some questions you may want to consider when a deliverable will not be completed by the due date. Is it possible to get back on track for due date? Is the cause of delay valid? Is the proposal solution acceptable? Does project plan need to be updated? Does this affect the overall timeframe of the implementation? What other tasks might this impact or delay? The Task Status Report may be used to document these decisions. Once the status of the tasks is known, it is the job of the management representative, together with the energy team, to assess the situation. Some questions to be considered at this point are: Is the work progressing according to schedule? Are the assignments appropriate? Are the resources adequate? Has there been a change in resources or priorities? Is communication happening? Are people getting trained? The Status of EnMS Implementation Worksheet can be used to document the status and associated actions taken and actions needed. The management representative and the energy team review the status of the implementation and propose changes as needed. The management representative reports on the status to management as defined in the implementation plan or more frequently when needed. Communication with management includes communicating successes and identifying needs. Resource needs and changes in priorities or schedule are discussed with management and, when they are approved, the implementation plan is revised to reflect the decisions. The management representative then communicates the changes to the plan to the interested parties. Management also has a responsibility to inform the management representative and the energy team of any changes that could impact the implementation effort. An example is a change in resources or priorities. The management representative revises the implementation plan as appropriate and ensures all affected parties are informed.


Personnel have many other priorities and are always pressured to get the product (or service) out the door. Take opportunities to share success stories with employees, energy team, management, contractors and the local community as appropriate. Ongoing awareness, reinforcement of progress being made, and letting people know their efforts are recognized as essential in the success of an implementation are very important. Consider having a luncheon to kick-off the implementation effort or a meeting to celebrate the accomplishment of a milestone. Recognize employees for completing tasks early, meeting their milestone, or for identifying areas for energy improvement.

Initial implementation of an energy management system can take a great deal of personnels time and other resources. It is the beginning of an ongoing process of continual improvement in energy management and energy performance that is intended to become an integral part of how the organization manages its activities and operations. Continue to celebrate successes along the way as a means to support continued participation in the effort and motivate contributions from others. Keep in mind that personnel are more likely to engage in behaviors that are reinforced.


"Where are we heading?" Questions : How do employees and others get the information they need? Does your organization have a records policy in place?

Documentation is a key component of the energy management system (EnMS). Documentation can guide behavior and activities and demonstrate what has been done within the EnMS. Documentation helps you implement the EnMS, ensure its proper functioning over time, and provide evidence of the results that are achieved. In ISO 50001, there are some documents and records that are explicitly required. Other documentation is determined by the organization itself based on its own needs and organizational culture. The overall purpose of this Step is to help you understand the basics of EnMS documentation. It provides information on items that must be documented or recorded, as well as guidance for determining what additional documentation your specific organization needs to: ensure effective implementation and maintenance of the energy management system, and provide evidence of continual improvement in both the EnMS and energy performance. The topics addressed in this Step include: What are the basic types of documentation? What is the value of documentation? What general factors affect the extent of documentation within an organization? What documents are required for the EnMS? What records are required for the EnMS? When do you decide what additional EnMS documentation is needed? How do you decide what additional EnMS documentation is needed? What are the success factors for documents? What are the success factors for records?

What are the basic types of documentation?

Information is fundamental to any organizational process. One way to communicate information is through the use of documentation. Documentation may be in any format or type of medium, including print, electronic, magnetic, optical, photographic, and other. There are two basic types of documentation:

Documents provide information about the present (they say what you do) Records provide information about the past (they are proof you did what you said) To understand management system documentation, it is useful to distinguish two types or basic categories of documentation: Documents, which provide information that guides actions or communicates expectations in the present (today); and, Records, which provide information about the past (snapshots in time).

What are the differences between documents and records?

Documents (set expectations for the present) state current policies and commitments implement policies and commitments guide activities and operations, typically defining: what is to be done who is to do it when it will be done how it will be done Records (reflect past history)

state results achieved provide evidence of activities performed

Documents are focused on the present day. They state and are used to implement current policies and commitments. Documents express expectationsthey guide our behavior, activities and operations, typically providing what, who, when and sometimes how information. A list of examples of documents can be found through the provided link. On the other hand, records reflect past history. They capture what was done (an action or activity) or what was accomplished or attained (i.e. results). Records can take many different forms. A list ofexamples of records can be found through the provided link. Documents and records are controlled separately under different sets of requirements. Control of documents and control of records are addressed later, in Step 5.1.

What is the value of documentation? Value to the Organization

Documents Records

Ensure clear evidence of activities and Provide guidance to existing employees and employees in results new roles Provide a basis for Ensure consistency in tasks or activities performed data analysis Communicate requirements to contractors and suppliers Can serve as Facilitate training and support employee understanding and organizational awareness memory for those who come later

Documentation provides a number of benefits to an organization. For example, documents can provide guidance for existing employees or for employees who have taken on or assumed new roles or positions within the organization. Relevant documents can orient them to the processes, operations and activities associated with specific job functions. Documents can communicate what the expectations are for performance of their responsibilities, as well as for others within that department or functional area. Documents frequently serve to facilitate training as they typically provide information to support and reinforce the learning and awareness that occurs in training. When properly implemented (i.e. followed by the appropriate personnel), documents enable tasks or activities to be performed in a consistent manner. In addition, documents can be useful for defining and communicating expectations and requirements to contractors and suppliers. Some examples of documents that can be used for this purpose include brochures, pamphlets, handbooks and purchasing specifications. Records related to activities performed are useful as evidence that the appropriate actions were taken. Also, since records are used to capture results achieved, they provide an excellent basis for data analysis, including the tracking of energy performance. Records can also benefit an organization as a form of memory for the organization. Records of what was done in the past and the results achieved in the past can be very useful when, for example, there is workforce turnover or attrition over time.

What general factors affect the extent of documentation within an organization?

Misperceptions about the level of documentation required for a continual improvement-based management system are not uncommon. It is important to keep in mind that management systems based on the Plan-Do-Check-Act continual improvement model such as those for energy, quality, environmental, safety and health, and others, are intended to be documented management systems, and not systems of documents.

General Factors Affecting the Extent of Documentation Within an Organization

Size of the organization Types of activities Complexity of the processes and their interactions Competence of personnel The extent of management system documentation will vary from one organization to another. Organizations with a large number of personnel tend to use documentation more extensively than smaller organizations. The types of activities, as well as the complexity of processes and their interactions, also influences the extent of documentation within an organization. Complex processes and high risk activities tend to be more thoroughly documented, both in terms of documents and records, than simple processes or low risk activities. Competence of personnel is another factor that influences decisions on the extent of documentation needed. In general, higher levels of competence among personnel can mean that fewer documents are needed. Consideration of the competence of personnel in decisions on whether documents are needed should take into account the robustness of the organizations ongoing training systems. For

most organizations, training and documentation are a balancing actmeaning that organizations with robust training systems tend to need fewer documents, while organizations with more limited training resources may need to rely on having more documentation in place.

What documents are required for the energy management system?

The ISO 50001 EnMS is very lean on the number of required documents. For example, there are no explicit requirements for documented procedures. There are only a couple of requirements for documented processes. Mo st of the decisions on what documents are needed are left to the organization. This provides the organization with both the flexibility and the responsibility to determine what documents are needed to ensure the effective implementation and maintenance of its EnMS. There are some items that ISO 50001 does require to be documented. One item is information that describes the core elements of the EnMS and their interaction. Many organizations develop an energy manual to meet this requirement. Many organizations develop an energy manual to meet this requirement; if interested, guidance information on an energy manual is provided. Some of the other items that must be documented include the energy policy, the energy objectives and targets, and the energy management action plans. These and other required documents are listed on the EnMS Documentation Guidance Table under the column titled, What needs to be documented?

What records are required for the energy management system?

Although a variety of information within the EnMS must be recorded, just as with documents, the organization is responsible for determining what additional records it needs in order to demonstrate conformance with the requirements of the EnMS and the energy performance results achieved. Some of the items that must be recorded include the energy baseline, monitoring and measurement results, audit results and management reviews. These and other records are listed on the EnMS Documentation Guidance Table under the column titled, What needs to be recorded?

When do you decide what additional EnMS documentation is needed?

Making decisions on whether documentation is needed is an ongoing process during initial EnMS implementation. Use the energy team to plan for how and when documentation issues will be addressed and decided on as you progress through development and implementation of your ISO 50001 EnMS. Also, consider that although EnMS documentation requirements are few in number, there are many action verbs associated with the basic requirements of an ISO 50001 EnMS. These action verbs can be viewed as opportunities to initiate conversations among members of the energy team and others about what documentation, if any, may be needed.

ISO 50001 Action Verbs Provide Convenient Decision Points for EnMS Documentation
"address" "appoint" "consider" "define" "evaluate" "identify" "implement" "inform"

"determine" "establish"

"plan" "review"

With the appropriate allocation of additional training, awareness and communication resources, an organization can establish and implement processes and procedures that are not documented. It can ensure that it determines or identifies specific information without documenting the process for doing so because it devotes the proper personnel training and communication resources to fully implement the process. The EnMS Documentation Guidance Table identifies most of the action-based EnMS elements as decision needed points for considerations related to whether or not documents are needed to implement those elements of the system. It bears repeating that organizations which make significant investments in ongoing workforce training are able to maintain a minimum number of documented procedures, work instructions, or other similar documents. In deciding whether to document a procedure or process that is not required to be documented, a key factor to consider is what resources are available for additional training if a procedure is not to be documented. Additional training can be completed to reduce the number of needed documents, but it is important to remember that records of training are required.

How do you decide what additional EnMS documentation is needed? Decisions on additional documentation are made with the following overall goals in mind:
Ensuring the effective implementation and maintenance of the EnMS, and Providing evidence of continual improvement in both the EnMS and energy performance. To help your organization determine the documents needed for its ISO 50001 EnMS (beyond those that are required), it is useful to establish rules of thumb or other criteria. Some of the factors influencing decisions on the number of documents already have been introduced (see What general factors affect the extent of documentation within an organization?). Other relevant factors could include legal requirements, customer requirements, or prior nonconformities. Examples of possible factors or criteria to help your organization determine needed documents are provided in the Making Decisions on EnMS Documentation Checklist. And lastly, in making documentation-related decisions, dont overlook the potential to leverage existing procedures and other documents, modifying them to include energy management. This makes sense and is a resource-effective approach to documenting information for the EnMS without creating new documents to be managed. If there are only minimal documents in place or if it is not possible integrate with what already is in place, then harvest what is there and adapt it for the EnMS.

What are the success factors for documents? Success Factors for Documents
Having the EnMS documents that are either required or determined as needed

No over-documentation Developed with input from users User-friendly formats and media Clearly defined responsibilities and approval authorities Updated as needed Two important success factors for EnMS documents are having the documents that you need (including those that are required) and not having documents that you dont need. Avoid over-documenting your system. As previously discussed, establish rules of thumb or other criteria to help you decide when a document is needed or use the Making Decisions on Documents Checklist. Remember that whatever documents you make part of your EnMS, whether needed or not, must be controlled (see Step 5.1). Like other processes in the EnMS, controlling documents involves a certain ongoing allocation of resources; in this case, to ensure that document controls are properly applied and maintained. In the case of an over-documented system, these resources can easily be overburdened or even wasted when unnecessary documents are involved. Successful documents must address user needs if they are going to get used. Involving users in the development of documents increases the likelihood that the documents will be relevant, accurate, current, and followed by the appropriate personnel. Remember that documents do not need to be text on paper. Whatever media or format works best is acceptable. Clearly defined responsibilities and approval authorities contribute to the success of documents because they ensure ownership of the information and the application of the defined document controls. Learn more . Change happens regularly and documents need to stay abreast of current plans, programs, procedures, practices and processes. Documents may be updated as a result of:

changes in equipment, systems and processes organizational changes or business circumstances (e.g. acquisitions, mergers, reorganizations, major customer changes) changes in applicable legal and other requirements subscribed to by the organization internal or external audit results corrective actions and preventive actions management review decisions and actions

What are the success factors for records? Success Factors for Records
Records that: meet basic EnMs requirements prove what you are doing demonstrate achievement of improved energy performance have assigned record owners

Successful implementation, maintenance and continual improvement of your EnMS and its energy performance relies in great part on records that meet EnMS requirements, provide evidence of what you are doing, and demonstrate the improved energy performance. And, clearly defining responsibilities for specific records through the designation of record owners, for example, helps ensure that needed records are maintained.


Building an energy management system requires basic planning. This planning enables an organization to profile its situation in regards to energy. ISO 50001 requires that energy planning be a documented process and must lead to actions that continually improve energy performance. Energy planning involves a review of activities that can affect energy performance. It starts with pulling together measurement data and other energy information that can have an influence on energy performance in the organization. Included in the collection of energy data and information for planning purposes are: Legal and other requirements to which the organization subscribes These requirements are related to the organizations energy use, consumption and efficiency and the organization must determine how these requirements can affect its energy performance. Energy review The energy review is a collection of data that is used to profile the energy situation of the organization and provide energy information to support other planning activities and decisions. There are several datarelated items that must be included in the energy review. These include the organizations: current energy sourcesanalysis of its past energy use and energy consumption analysis of its present energy use and energy consumption estimates of future energy use and energy consumption significant energy uses current performance of the processes, systems, equipment and facilities associated with the significant energy uses relevant variables that affect the significant energy uses estimates of future energy use and consumption for significant energy uses prioritized opportunities for improving energy performance Energy baseline The information from the energy review is used to establish a baseline which is the benchmark from which changes in energy performance are measured. Energy Performance Indicators (EnPIs) These are the measures of energy performance used by the organization. Objectives, targets and action plans Actions plans are developed for meeting the organizations objectives and targets which are set to meet the organizations energy policy and strategic goals related to energy performance. These are discussed in Step 3. The planning data is collected, recorded and analyzed. The method(s) used to develop the energy review is (are) decided on and documented by the organization.

The energy review must be updated at intervals defined by the organization and when there are extensive changes in facilities, equipment, systems and processes. The following steps address the planning portion of the EnMS and will help establish processes to take action for collecting, tracking and analyzing the energy data: Step 2.1 Identify, evaluate and track legal and other requirements Step 2.2 Acquire, analyze and track energy data Step 2.3 Determine significant energy uses Step 2.4 Identify energy opportunities Step 2.5 Prioritize energy opportunities Step 2.6 Establish a baseline and determine energy performance indicators (EnPIs)


"Where are we heading?" Questions : Who currently tracks your legal requirements? How can you get them involved in EnMS implementation? Do you need to involve corporate team members? Does your organization discuss energy with customers, vendors or the community?

Profiling the energy situation of the organization includes gathering information on the legal requirements and other requirements that apply to the organizations energy use, consumption and efficiency. It also involves making sure that there are processes in place to identify, access, evaluate and keep up to date with those requirements. Legal requirements are those imposed by a governmental entity or regulatory agency. The organization develops a complete picture of its energy related legal requirements and issues so it can establish and maintain compliance with those requirements on an ongoing basis. Proactive processes for managing compliance are a key component of the energy management system. In addition to legal requirements, there are a variety of other requirements related to energy that an organization may be subject to (e.g. a corporate energy mandate) or may commit to voluntarily (e.g. ENERGY STAR). The organizations processes for identifying, accessing, evaluating and keeping abreast of applicable legal requirements must address these other requirements as well. The specific Steps for identifying, accessing, evaluating and updating legal and other requirements are detailed in this section. The actions involved in this Step are: Step 2.1.1 Identify and access legal requirements Step 2.1.2 Identify and access other requirements Step 2.1.3 Establish a process for evaluating and updating requirements

Step 2.1.4 Plan for evaluating compliance with legal and other requirements


Awareness of the applicable legal requirements is key to compliance and to gaining a full understanding of the energy situation of the organization, including the fact that energy projects may impact legal compliance. This Step involves identifying the federal, state and local legal requirements that apply to your organizations energy uses. For most organizations this process is already in place for environmental related legal and regulatory requirements. In addition, it is important to be aware that a number of environmental regulations, particularly some of those regulating air emissions, are relevant to both the organizations environmental impacts and its energy uses. For example: An environmental regulatory permit may dictate a control that consumes energy, but that is not in operation on a continual basis (e.g., overflow pump for stormwater discharge). An environmental regulatory permit may specify a specific energy use (e.g., operation of a cyclone under an air permit). A regulatory air permit may dictate that a facility burn only a certain type of fuel. Additional legal requirements that may apply to an organizations energy uses could include local ordinances, zoning laws or regulations or utility requirements. For example, zoning or utility requirements may limit access to certain types of property, such as the areas surrounding high voltage power lines or electric utility transformers. Building codes may include energy efficiency requirements for new, modified or renovated facilities. Example Legal and Other Requirements Related to Energy are provided through the given link. So, the first task in this Step is to gather information that answers the following questions: What is your organizations existing process for identifying the applicable legal requirements related to energy uses? Who in your organization has information on the applicable legal and regulatory requirements related to your energy uses? How is this information maintained? Is there a list of these applicable legal and regulatory requirements? Who is responsible for ensuring access to the applicable laws and regulations and their requirements? How is this accomplished? Who is responsible for keeping this information current? What is the process for evaluating how these legal requirements apply to the organization and for ensuring that any required training, operational controls, monitoring and measurement, calibration, records and reporting are in place?

Once the answers to these questions are obtained, the energy team, in coordination with the environmental staff and management evaluates the existing process, makes any needed changes and assigns responsibilities for identifying, evaluating and updating any legal requirements related to the organizations energy uses. The environmental staff may continue to handle the process for environmental legal requirements that also apply to energy uses, while the energy management representative may handle specific legal requirements related only to energy. Although, it would not be unusual for both sets of legal requirements to be maintained on a common list. The Legal and Other Requirements Tracking Matrix can be used to document the applicable legal and other requirements and other relevant information. For organizations that do not have an existing process and assigned responsibilities for identifying, evaluating and updating applicable legal requirements, the initial tasks in this Step are different. The first task is to assign responsibility for these activities to specific personnel. In some cases, the organization may decide to contract for external assistance in developing this part of its ISO 50001 system. There are a variety of resources available to help organizations identify the legal requirements related to their energy uses. These include: Commercial legal and regulatory updating services Websites of federal, state and local regulatory agencies Table of Contents of the Code of Federal Regulations (CFR) Electronic newsletters Trade periodicals (both electronic and print) Trade associations Training courses and informational seminars Networking relationships with local agencies and officials Attorneys and consultants

It is important to ensure that the requirements of applicable legal requirements are easily and readily accessible. Depending on the source of the legal requirement, access may be available through governmental or other websites, commercial or governmental databases, hardcopy or electronic subscriptions, etc.


The basic process for identifying and accessing the voluntary programs or other requirements related to energy uses and committed to by the organization is much the same as it is for legal requirements related to energy uses. Roles, responsibilities and authorities are assigned and sources for the text of the applicable requirements are determined. Information on the voluntary commitments and other requirements that apply to the organizations energy uses is maintained and kept accessible. Often, this information is included in the list (or database or other compilation) of applicable legal requirements as a separate section or coded as a non-legal or voluntary requirement. The Legal and Other Requirements Tracking Matrix can be used to document the applicable other requirements and associated information.

Examples of voluntary commitments and other requirements related to an organizations energy uses include: Voluntary standards (e.g. ISO 50001) Plant Certification (ISO, Trade Group, etc.) Corporate energy requirements (e.g. energy conservation, energy performance reporting, etc.) LEED Certification (Existing Building & Maintenance) ENERGY STAR Facility (U.S. EPA) State Greenhouse Gas (GHG) goals State Environmental or Energy Performance Programs Better Buildings, Better Plants (U.S. Department of Energy) Superior Energy Performance (U.S. Council for Energy Efficient Manufacturing)

The process for identifying energy-related voluntary programs and other requirements committed to by the organization necessarily involves clearly defined communication channels between management who make the commitment on behalf of the organization and the energy team or other personnel responsible for the organizations compliance with those requirements. Typically, the agency, non governmental organization, trade association or organization whose program it is provides resources for access to the programs requi rements.


It is not usual for the personnel assigned responsibility for identifying and accessing energy-related legal and other requirements to also have responsibility for evaluating and updating those requirements. Many organizations monitor for new or changed legal requirements on an ongoing basis using electronic newletters or email update notifications from regulatory agencies or other sources. Reviews for updates to voluntary programs or other requirements committed to by the organization are conducted periodically, usually on an established frequency. The organizations process for staying abreast of new or modified legal and other requirements related to energy uses involves first a review of such changes for their applicability and second, if determined to be applicable, an evaluation of what those specific changes mean for the organizations facility(ies), processes, systems and/or equipment. Once the evaluation is completed and the impacts of the changes are understood, the organization implements the actions needed for compliance with those new or changed requirements. This could include additional or modified training, operational controls, reporting, etc. depending on the nature of the new or changed requirements. The recommended approach for effectively managing this part of the EnMS is to ensure that these evaluation and updating processes are incorporated into the organizations overall change management processes. Be awar e that checking for new or changed legal and other requirements may be triggered by changes in your organizations activities, processes and equipment and not just simply by the issuance of new or modified legal requirements by a regulatory or other agency or authority.


The key elements of planning for periodic evaluations of compliance with legal and other requirements include: Identifying existing compliance evaluation processes Determining whether these processes should be modified to include compliance evaluations for legal and other requirements related to the organizations energy uses or whether separate compliance evaluation processes are needed Assigning roles, responsibilities and authorities for conducting evaluations of compliance with legal and other requirements related to the organizations energy uses and for maintaining the results Establishing an appropriate frequency or interval for conducting the compliance evaluations On a routine basis the organization needs to check on whether it is meeting the legal and other requirements applicable to its energy uses. Planning for how this will be accomplished provides an opportunity for the energy team to make friends with the organizations risk managers, environmental managers, insurance managers and/or health and safety managers. It is likely that these managers have processes for periodic compliance auditing or compliance evaluations already in place. Leveraging these existing processes where appropriate can be a more efficient use of resources than starting from scratch to create a new compliance evaluation process. The first task here is to gather information on existing processes for evaluating or auditing compliance to legal requirements and determining whether these processes can or should be modified to include compliance evaluations for the legal requirements related to the organizations energy uses. As indicated in Step 2.1.1, some legal requirements may be applicable both to the organizations environmental impacts and to its energy uses. For these types of legal requirements, periodic compliance evaluations under the environmental program may already be in place. For legal requirements only applicable to the organizations energy uses, additional compliance evaluations are established separately or incorporated into existing environmental or other compliance evaluation protocols. A second task is to determine whether there are existing processes or protocols for evaluating the organizations compliance with voluntary programs or other requirements committed to by the organization. If these voluntary programs or other requirements include periodic reporting requirements, the evaluation of compliance with those requirements may be part of that periodic reporting or demonstration of compliance effort. Again, the organization must determine whether it will leverage existing compliance evaluation processes for voluntary programs or other requirement, or whether a new process will be established. With respect to processes for evaluation of compliance, it is imperative that roles, responsibilities and authorities be defined and communicated and that intervals for conducting such evaluations are planned. Implementation of the processes for

evaluation of compliance with legal and other requirements is addressed in Step 6.3.


"Where are we heading?" Questions : What energy sources does your organization have? Who are your utility contacts? Who has access to energy data? Does your organization currently keep energy data? Who in your organization is good with data and data management tools? Who has a need for energy information? What kinds of decisions should energy data inform? Are there information system considerations?

Before energy data can be compiled, analyzed and used by management, it must first be acquired. Because the energy management function needs other types of information in addition to utility data, a process is developed to make sure the proper data is collected. Steps involved in data acquisition include: Step 2.2.1 Identify data needs Step 2.2.2 Determine availability of data Step 2.2.3 Formulate a process for acquiring and recording data Step 2.2.4 Investigate tools for tracking and analyzing energy data Step 2.2.5 Choose and implement an energy data management tool

Energy management is an inherently data driven process and without the correct type of data, energy management will suffer and could falter. In an ISO 50001 EnMS, acquiring energy data is ultimately the responsibility of the energy management representative, who is responsible for energy planning and for reporting to management on energy performance. However, it is likely that others are responsible for the routine collection and analysis of the energy data. If this is not the case, then the management representative can appoint additional staff to support this effort if needed. The resources necessary to implement and sustain data acquisition are provided by top management. Energy data acquisition is typically organized by developing procedures that define the data required to manage energy, the form that the data is recorded (paper original, paper copy or digital), data location and time frame for collection. Acquired data, in paper or electronic form, is retained as records. Organizations of all sizes have generally already established systems for gathering, analyzing and tracking energy data. These systems can be simple spreadsheets or very expensive software tools. All or part of data collection, analysis and tracking can also be outsourced. Regardless of what method is used to gather and track data, it needs to provide information suitable for the organization and create reports that are useful at all levels.


A successful energy management system relies on accurate and appropriate data. The appropriate data is collected to provide an accurate profile of the organizations energy situation. The energy review is a key component of the EnMS for collecting the data and information necessary for the organization to determine its energy performance and identify opportunities for improvement. ISO 50001 requires that the following be included in the energy review: Energy sources The energy sources used by the organization are identified and documented. The energy sources should be associated with the appropriate facilities, equipment, systems and processes. Associating the equipment in the organization with an energy source insures that all the relevant sources are identified. Analysis of past energy use and consumption The manner and detail in which this data is collected will depend on the metering which has been available in the organization. Data may have only been available at a utility level, or submetering may have been in place that allowed for more extensive data collection and analysis. Collection of data over the last several years helps establish the history of the organizations energy performance. Analysis of present energy use and consumption Collection of this data will also depend on the meters installed in the facility. This data is used to establish the current energy performance. Significant energy uses (SEUs) and their current performance Significant energy uses are the facilities, systems, processes or equipment that consumes a significant amount of energy or have a good opportunity for improvement. Using the information in the data collection and analysis part of the energy review, the SEUs are determined (Step 2.3). Focusing on SEUs allows the organization to focus resources in the areas that have the greatest potential for energy performance improvement. Relevant variables affecting the significant energy uses Relevant variables are the factors that can have an impact on energy performance. The relevant variables are determined using the data from the energy review (Step 2.6.4). Estimates of future energy use and consumption Using the historical and present consumption data as well as projections on production, model changes, new products, sales forecasts, process changes, etc. estimates of future energy use and consumption are prepared for the significant energy uses. Estimating future energy use can help with managing the significant energy uses, establishing objectives and targets, and provides a level of

expectation that can be used for comparison with actual results (See Step 2.3.5). Prioritized opportunities for improvement The energy review data and analysis, as well as data from energy assessments and other methods (Step 2.4 and Step 2.5), is used to identify improvement opportunities. The energy review is the mechanism where energy data is collected and analyzed to begin determining the organizations energy performance. The data collected in the energy review is also used to establish the metrics for performance measurement and opportunity identification. This data is used for: Establishing the baseline The baseline is the benchmark against which current performance is compared to determine if energy performance has improved. The baseline can be a simple metric (e.g. consumption) or can be more complicated (See Step 2.6). Selecting energy performance indicators (EnPIs) EnPIs are the metric used to determine the status of the organizations energy performance (See Step 2.6). Determining objectives and targets Once the organization has determined the status of its energy performance and identified opportunities it can establish objectives and set targets for achieving improved energy performance levels. Action plans are developed for meeting these objectives and targets (See Step 3). In considering energy management data needs, energy team members need to consider requirements as specified in the energy policy, energy objectives, targets and action plans, as well as legal and other requirements. For the EnMS, this data will be within the EnMS scope and boundaries. Energy management data needs will extend beyond energy data to include production, operations, costs associated with energy and, in some instances, organizational financial information. Information related to energy cost considerations cannot be neglected for most organizations since top management will usually want to know the impact on the organizations bottom line. Identification of the necessary energy data for energy planning purposes is the responsibility of the energy management representative, but additional staff can be appointed to support this effort as appropriate. For example, production personnel may be used to identify relevant production information. The resources needed to identify data requirements are provided by top management. Information useful in data identification is contained in Example Types of Energy Management Data.


Knowing the energy data needs is not enough. It is equally important to know where to locate and how to acquire the necessary information. The Example Types of Energy Management Data referenced in the previous section is helpful in locating and determining the required collection frequency for the different data. To accurately identify the location of energy management data, energy management personnel must evaluate the type, source and method by which the data is held or stored. Remember that energy management data needs extend beyond just energy data to include production, operations, costs associated with the various factors as well as, in some instances, financial information. The frequency of data collection depends on the organizational needs and requirements. Data collection can be simplified by developing a process that identifies the data location, the person(s) who collects and keeps the data (keepers), and frequency of collection. Locating and acquiring the needed energy data is typically overseen by the energy management representative who is responsible for energy planning. The Example Types of Energy Management Data can be helpful in establishing the data collection process.


To have consistent and reliable data to facilitate energy management, a formal process for acquiring and recording data should be developed. The energy data management process typically defines the steps to be followed to ensure the timely acquisition of accurate energy management related data. The collection process details include: the energy management data required, data location, person or source keeping the data, frequency of data occurrence, how often the data is collected from the source, and data storage location and how it is recorded.

The process may include additional steps, but best practice calls for these steps to be included at a minimum. Analysis of energy data will initially consist of determining the big consumers, establishing the relevant metrics and initial identification of possible focus areas for energy improvement opportunities. This uses the data collected in the initial energy review. This data is tracked over a period of time so additional analysis can be conducted to establish baselines (Step 2.6), develop EnPIs (Step 2.6), determine objectives and targets (Step 3.1) and monitor energy performance (Step 6.1). The tracking process records and displays data in such a way that it is conducive for this analysis. The benefit of having a formal data collection process is that it will ensure that the proper data is collected and recorded at the appropriate frequency. Because energy management is data driven, availability of the appropriate data is necessary for the proper functioning of an energy management system.

To facilitate the development of energy data management roles and responsibilities for key personnel, a table of Potential Responsible Parties for Data Collection has been developed. Roles and responsibilities in the process may vary somewhat depending on an individual organizations needs, but the general method of data identification, description of data sources, location and frequency of data collection, data acquisition and verification and recording remains consistent. Ensure that those persons responsible for collecting data are appropriately trained for such responsibilities, for example, in reading meters, reporting the correct units, using the relevant software, and the like. A Data Collection Responsibilities Table is provided as a guide to developing a sustainable data collection process. Also provided is a Data Collection Management Matrix to document the data requirements, its location, collection details and responsibilities. An Example Data Collection Management Matrix provides a sample of how this form can be used to help document data location and collection.


Organizations analyze and track energy in many different ways, from simple homegrown spreadsheetsto very sophisticated and expensive software and webenabled applications designed for large, multi-facility complexes. All of these tools have strengths and weaknesses. Investigating software tools helps a company to see the different types and also provides ideas on the kinds of information useful for the organization. However, it is easy to get overwhelmed by the large number of available tools and their vast analysis and reporting capabilities. An organization can become enamored with the many bells and whistles of expensive software. Narrow the tool investigation process by focusing on these general criteria: Scope of the energy management system how many meters will be tracked and what is the organizations budget? [Learn more]. Analysis vs. accounting is the organization interested in reconciling accounts or in analyzing data to look for opportunities to save energy? [Learn more]. Web versus desktop will data be gathered from and interface with many dispersed facilities or will it be focused on a local facility only? [Learn more]. Addressing these three general criteria and the capabilities and resources within the organization will help to quickly narrow the search. Further investigation will bring additional focus to a few select tools. Use a software selection questionnaire to facilitate this additional analysis. For a full discussion on selecting the right software, see the Guide to Choosing the Best Desktop Utility Bill Tracking Software. Typically, the output or reports from these tools is going to be used by an extended group of stakeholders. Getting the right information to the right people with a minimum of effort should be a chief concern. The energy management representative is typically responsible for disseminating information to the organization and will need to oversee the research and selection of energy data analysis and tracking tools to ensure it meets these needs. A recommended next step is to interview different stakeholders within the organization to ensure that they get the right information and in a form that is

easily understood. This will help finalize selection of the tool to be used by the organization.


The background investigation of energy analysis and tracking tools and interviews with relevant stakeholders can provide the knowledge necessary to choose the appropriate tool for the organization. By completing this activity, an organization will narrow the tool selection to those that look like the best fit. Follow these key steps to choose the right tool:
1. Test drive finalists. Most software can be tested. It is important to actually input energy data and look at the output and reporting capabilities. Consider some basic, critical questions while testing: 1. Is it easy to use? 2. Can the tool be modified to meet appropriate needs? 3. Do the displays and reports meet organizational needs? 4. Will it expand to meet needs as energy management activities grow? 5. Will it provide the data and information needed to meet energy improvement objectives? 2. Talk to other users. Lessons learned by other software users will provide invaluable information. Users will be able to discuss how easy it is to use, can it be customized, what are the glitches, and how responsive is the vendors technical assistance. 3. Develop appropriate criteria. Be sure to develop selection criteria that match the needs of the organization. These criteria are weighted based on organizational factors that determine the importance of each one. Get inputs from different personnel such as the energy team to develop the criteria and appropriate weighting. 4. Develop a decision matrix. A decision matrix that compares alternative tools against appropriate criteria will help keep the selection process objective (see Example Energy Software Decision Matrix). 5. Choose the appropriate tool. Use the decision matrix to score the alternative tools.

The right tool will pay for itself many times over. It will allow data analysis that will identify trends and anomalies that lead to cost savings. It will show areas that are significant and deserve the most attention. It can also help identify billing errors and hidden costs within utility rate structures. It will help the energy management representative tell their story well and get the resources needed to make the energy management system successful. Two case study examples of energy tracking are provided to show the variation in energy tracking methods. The first case study for a large enterprise illustrates the use of energy tracking software to store and perform basic analyses. The software has the capability of storing several different accounts for a given utility, converting the different energy sources into a common unit (Btu), and reporting the combined energy consumption and cost for a given facility. In the second case study example,

the small enterprise has only one source of energy, electricity, and uses a simple spreadsheet to track energy consumption and cost. Example Case Study of Large Enterprise Energy Tracking Example Case Study of Small Enterprise Energy Tracking


"Where are we heading?" Questions : Who has information on equipment, systems and processes? Which processes operate most often?

Energy use is pervasive throughout all organizations. Designating a few important energy systems, equipment, facilities, and their associated operating personnel as significant, allows an organization to focus their limited resources on improving and maintaining optimum performance in a small number of critical systems. This approach ensures the best use of an organizations limited energy management resources. In an energy management system, if an energy use is identified as significant it means the application will receive special attention. The items of attention associated with significant energy uses includes consideration in establishing energy objectives, targets and action plans (Step 3); ensuring the training and competence of relevant personnel (Step 5.3); planning for effective operation and maintenance (Step 5.2); and monitoring, measuring and analyzing their performance (Step 6.1). Implementing these items is resource intensive and demands that the organization develop a reliable strategy for defining significance. Identification of significant energy uses is necessary and sufficient for an organization to achieve the most improvement in performance with the fewest available resources. Below is a step by step process for determining significant energy uses: Step 2.3.1 Prepare a list of your energy systems Step 2.3.2 Develop an energy balance Step 2.3.3 Determine criteria for significance Step 2.3.4 Record significant energy uses and the method used Step 2.3.5 Analyze and track significant energy uses

The energy management representative, assisted by the energy team, typically establishes and applies criteria for determining the organizations significant energ y uses. At a minimum, this involves deciding on criteria for substantial energy consumption and considerable opportunity for improvement. The method used to determine the significant energy uses is documented. Because significant energy uses must be managed through operational controls, training and monitoring and measurement, designating an energy use as significant should be conducted carefully.


An understanding of the organizations energy systems and how much energy they consume is the first step to determining significant energy uses. Before determining

how much energy is consumed gather information on the energy systems and prepare an equipment list. To accomplish this, take the following actions: Obtain process flow diagrams and facility equipment lists. Process flow diagrams are a good place to start because they display the major process equipment in process order and aid identification. Process flow diagrams help an organization understand and organize its operations and energy systems. Facility equipment lists may also be needed because they will typically include building systems that are not included in the process flow diagram. Examples of these systems/equipment include HVAC, lighting, indoor air quality and hot water diagrams. An Example Equipment List can be found through the provided link. Show both primary and secondary energy streams on the process flow diagram. It is important to also include secondary forms of energy because the energy systems that supply them can be very energy intensive. An Example Process Flow Diagram can be found through the provided link. Group equipment and processes into logical systems . Drawing a boundary around certain pieces of equipment should not be haphazard. Systems should be chosen to account for most of the interactions that will affect its energy performance. In addition, systems should be chosen based on the ability to determine the amount of energy they consume, either through metered data or engineering calculations. Obtain nameplate data, operating hours, duty factors and load factors for the equipment and processes associated with system groupings. This information is necessary for determining the energy consumption of the different systems and developing an energy balance. In some cases sub-metered data is available for major equipment and processes. Finally, consider the personnel whose work activities can or do impact the significant energy uses or whose job duties would significantly affect how energy is procured, used or consumed within the organization. Such personnel may need additional training or have specific qualifications to ensure that operational controls are followed and energy performance objectives are achieved. Example Personnel Associated with Significant Energy Uses can be found through the provided link.


An energy balance is one reliable approach for determining significant energy uses based on consumption. The total energy use of all primary energy sources

consumed within a facility is attributed to specific equipment and systems. The methodology for conducting an energy balance is available here. The energy consumption of specific equipment and systems can be determined through metered data, but a simple calculation using information from the list of energy systems can provide a good approximation. Over time, the energy consumption can be refined by using meters or by becoming more familiar with the operation of the energy systems. PEP is a software tool that develops an energy balance for manufacturing facilities. It assists the user with notifications when too much or too little energy is accounted for by the energy systems that have been entered into the software program. An Example Energy Balance for a small food processing manufacturer is available. The balance was determined using the Example Process Flow Diagram and Example Equipment List presented in Step 2.3.1, using reported equipment capacities, operating hours and load factors. A bar chart developed for the calculated energy consumption clearly shows the largest consumers.


Recall that per the definition of significant energy uses , substantial energy consumption and/or considerable opportunity for improvement are the primary factors used in determination of an organizations significant energy uses. Most organizations will determine significant energy uses based on the largest energy consuming systems and equipment identified in the energy balance. But, significant energy uses also may be determined based on considerable potential for energy performance improvement. This can be a good option for organizations that have been engaged in energy management activities for many years and that have either limited or no viable opportunities for additional improvements with regard to their largest energy consuming systems. Beyond substantial energy consumption and/or considerable potential for improvements, some organizations further refine their criteria for significant energy uses by taking into account other relevant factors such as carbon footprint, health and safety concerns, or energy costs. If appropriate, the energy team can determine other possible relevant criteria by reviewing, for example: legal and other requirements an organizations commitment to GHG reduction could make a low carbon energy source a priority (example). business plans cost reduction may be the most important factor during a down economy and the most expensive energy source could become a priority; or the energy system with largest potential for cost savings could be a priority (example). For newly implemented energy management systems, it is important to start simple. Many organizations just starting energy management will want to bring all of their major systems under control. Select only one or two significant energy uses since these energy systems require the most resources. Energy management is a continual improvement process and over time more energy systems can be identified as significant.

In industry, the 80/20 rule typically applies. There are usually only a few energy systems that consume the majority of energy in a facility. Focus on these and apply the criteria that have been set for determining significant energy uses.


A list of the significant energy uses and the method used to select them is an important energy management planning document. The energy team will review the significant energy uses on a regular basis, and the list may change with shifting energy, business or organizational priorities. Record the significant energy uses, the areas or operations with which they are associated, along with the affected personnel (by position title) by completing Columns 1, 2 and 5 on the SEU Control Chart. This simple spreadsheet tool can serve as the list of current significant energy uses and a place to document other information that will be needed to ensure significant energy uses are properly managed. The other information about significant energy uses (i.e. Columns 4, 6, 7 and 8 in the SEU Control Chart) will be generated in Step 5 and Step 6. The method employed to identify the significant energy uses is recorded for reference so it is clear what criteria were used and how they were applied. The methodology may also change over time. Although secondary factors could be considered in determining the significant energy uses, the primary criteria for significance must relate to what constitutes substantial energy consumption and/or what constitutes considerable potential for energy performance improvement in the organization. In Step 2.3.2, the energy balance was presented as a method of determining significance based on the amounts of energy consumed. In this approach, a certain threshold of energy consumption or a certain percentage of total consumption is used as a selection criterion for significance. That selection criterion and the process used to apply it to determine significance would be recorded. If the significant energy uses are determined based on considerable opportunity for improvement, then the method and criteria used to prioritize the opportunities also must be recorded. A worksheet to help document the criteria and method used to determine significant energy uses is available.


Significant energy uses are a key characteristic of energy performance that are regularly monitored, measured and analyzed. Once the significant energy uses are identified, energy consumption and output data is collected to determine their performance. A best practice is to include their energy performance data and information within the energy tracking system. This brings all of the organizations energy data into one central location. Normal analysis and tracking of energy data will then include updating energy performance on the significant energy uses.

Data analysis is a continuous process. Data is initially collected and analyzed to determine the significant energy uses but then is continually collected, analyzed and tracked to identify opportunities for energy performance improvement. Including the energy performance data within the energy tracking system allows for easier data analysis. Because significant energy uses account for a major portion of an organizations energy consumption, analysis and projection of their future energy consumption is an important part of energy planning. To assist with projecting energy consumption of significant uses, an SEU Future Energy Estimate Worksheet is available. One estimate is completed for each significant use. Potential changes in SEU consumption can be developed based on the effects of production, capital investment, replacement energy sources, and completion of energy saving procedures. Other miscellaneous factors are also considered including new technologies, process changes, materials changes, products, weather or operational criteria, and changes to the general economy or a specific sector of industry. Development of a future energy consumption estimate for SEUs will provide an early warning about anticipated changes occurring in an organization (See Step 6.1). An energy performance indicator or EnPI (see Step 2.6) is developed to define the energy performance for a significant energy use. There are generally accepted EnPIs for many common energy systems that may be significant energy uses in many organizations. Similar EnPIs can be developed for equipment, processes, facilities and personnel. Tracking the EnPIs will reveal trends that allow comparison of the performance of significant energy uses over time. Benchmarking can be used, when available, to compare your significant energy use to the best in class or theoretically optimal performance of similar users. An example of EnPI tracking for steel melt furnace energy performance is included. The example presents furnace performance expressed as kWh/ton for two shifts over a three week period. The example illustrates how EnPIs can be used to track significant energy use performance over time and how operating personnel can have an impact on significant energy use performance.


"Where are we heading?" Questions : Have you ever had an energy assessment? How do you identify energy improvement opportunities? How do you identify other types of improvement opportunities in your organization?

Energy opportunity identification provides a vital source of information for energy management planning. Energy opportunities are identified by examining current practice and determining how it can be improved. Opportunities are identified by two different means: Step 2.4.1 Use energy assessments Step 2.4.2 Utilize other methods

Opportunity identification offers several benefits including discovery of improved operating practices and finding advanced technology that would be beneficial to install. Typical benefits from implementing opportunities include reduced energy consumption, lowered emissions, decreased operating costs and improved operating efficiency. Identification of energy opportunities is one reliable approach to achieve continual improvement in energy performance.

Identification of energy opportunities is the responsibility of the energy management representative with support from the energy team and input from all employees. Resources used for opportunity identification can be EnMS personnel, non-EnMS organization personnel or external resources as appropriate. The U.S. Department of Energys Advanced Manufacturing Office (DOE AMO) offers the Plant Energy Profiler (PEP) tool as one simple method to generate a plant energy assessment. PEP identifies how energy is being purchased and consumed and also identifies potential energy and cost savings. It is designed so that a user can complete a plant profile in about an hour. When a case is completed, PEP will provide a customized, printable report that shows the details of energy purchases, how energy is consumed, potential cost and energy savings, and a list of next steps to start saving energy. ThePlant Energy Profiler (PEP) can be accessed through the provided link.


Energy assessments provide a vital source of information for energy management planning. Assessments yield a snapshot of a facilitys current energy performance and offer a list of quantified improvement measures. The types of opportunities identified depend on the scope and intent of the assessment, but they may address energy purchasing improvements, better operating and maintenance practices and renovation or replacement of existing energy equipment. Elements of an energy assessment include: Determining the scope of a proposed assessment including buildings, systems, and utility metering Reviewing any past energy efficiency projects to help focus the scope of the assessment Looking for historical assessments and determining additional or updated information requirements Developing the energy assessment plan based on the identified scope Conducting the assessment Recording the findings of the assessment(s)

Scheduling an energy assessment is the responsibility of the energy management representative. Assessments can be conducted by the management representative and/or energy team members, corporate energy specialists, external energy consultants, utility personnel and university experts. The necessary resources to perform energy assessments are allocated by management. Several energy assessment tools are available to assist with performing an assessment. Guidance on energy system assessments is found in the ASME System Assessment Standards. DOE AMO provides a variety of resources for identifying energy savings opportunities in specific system areas. These resources include calculators and scorecards for quick identification of potential savings opportunities. For those that want to look into one specific system area in a more detailed manner, AMO also provides advanced system assessment tools. Resources are available for compressed air systems, fan systems, motors, process heating systems, pump systems, steam systems, data centers, and buildings. A variety System Assessment Tools can be accessed through the provided link.


Energy assessments are just one approach to define energy performance improvement opportunities. Other personnel, either internal or external to the organization, not involved in the formal energy assessment often have valuable insights that can yield opportunities not discovered during an energy assessment. Other sources of opportunities for improving energy performance can include: Employee suggestions Utility representatives Service technicians Equipment vendors Industrial sector standards Equipment standards

These other methods are generally useful in defining energy opportunities not discovered during an energy assessment. The other methods of opportunity identification involve personnel closely associated with energy equipment or energy related processes. These individuals may uncover unique opportunities as a result of their close proximity to the energy use. The benefit of using this type of asset is that it offers the potential to discover unconventional improvements and include personnel who may not be actively involved in energy management. To assist with finding and using other methods of energy opportunity identification, theChecklist of Other Methods to Identify Energy Opportunities may be helpful. The Checklist suggests contact points for locating information on the method, along with possible outcomes to expect from application of the method. Remember that opportunities for energy performance improvement identified by methods other than energy assessments are prioritized and recorded just as those found by an assessment (see Step 2.5).


"Where are we heading?" Questions : What are the organizational priorities? Who can help the energy team understand the organizational priorities? What type of information is presented to the management team on the organizational priorities? When are your capital planning and other budget processes scheduled? From the opportunities, which ones will provide the most benefit? Which projects should be considered now, and which ones should be considered as a part of the future energy use plan?

The next step in energy management planning is to prioritize the energy opportunities identified in Step 2.4. The method for prioritizing is up to the organization; however, it must be systematic and implemented on an ongoing basis.

It can be difficult and time-consuming for an organization to process every potential improvement idea. Prioritizing ideas based on defined criteria helps focus resources on the most practical opportunities. The following steps are designed to help the organization develop and apply criteria for prioritizing energy opportunities. Step 2.5.1 Get the right people together Step 2.5.2 Review relevant organizational information Step 2.5.3 Determine criteria Step 2.5.4 Develop tools or techniques for applying criteria Step 2.5.5 Apply criteria to prioritize opportunities


It is important that individuals from different functions and levels within the organization are involved in developing the criteria for prioritizing the organizations energy opportunities. Different points of view will ensure consideration of a wide range of factors and the energy team must determine those criteria most critical to the organizations success. If the energy team already has adequate representation from across the various functions and levels, then no additions may be needed for this task. On the other hand, this can be a time to involve other personnel who may bring specific knowledge or experience useful to the process of setting the criteria for prioritizing energy opportunities. This could include, for example, personnel knowledgeable about capital planning or project justification processes within the organization.


The energy team should gather and review organizational information that may impact the criteria and/or the approach to be used in prioritizing energy opportunities. Relevant organizational information could include: Organizational business strategies Current hurdles or financial requirements for proposed capital projects Operations and maintenance (O&M) projects Other types of resource or funding requests Production or market forecasts Corporate requirements

In addition, it may be helpful for the energy team to be aware of any existing risk assessment processes already in use by the organization, as well as a clear understanding of the organizations safety and environmental risk tolerance. For example, many organizations use Failure Modes and Effects Analysis (FMEA) to evaluate a variety of risks. Reviewing information about current risk assessment processes helps the energy team understand how these requirements and processes may need to be considered in the decisions on the criteria for prioritizing the energy opportunities.


After reviewing the relevant organizational information, the energy team can begin selecting criteria that will be used to prioritize the energy opportunities. When selecting criteria, consider the organizational information collected in Step 2.5.2 and develop criteria that will address the organizations needs and requirements. Examples of criteria can include: Estimated energy or cost savings Financial cost of opportunity implementation Return on investment, internal rate of return, net present value Ease of opportunity implementation Length of implementation period Possible safety, health, and environmental issues Maintenance impact Production efficiency impact

The organization determines the number of criteria to use for evaluation. One or two criteria may be enough to evaluate projects or many criteria may be required. The organization also determines whether scoring or rating scales for each criterion will be established and applied (e.g. a range of energy savings that are acceptable). If only one criterion is to be used, a simple go/no go limit may be set. Multiple criteria will require a process for determining the relative importance of each criteria and how they will be evaluated (See Step 2.5.4). Remember to document the criteria developed by the energy team. This ensures the criteria are clearly understood and uniformly applied when prioritizing energy opportunities. In the next step, Step 2.5.4, the Prioritizing Energy Opportunities Examples and Worksheets file can give you some ideas on how criteria could be documented.


In Step 2.5.3, criteria have been developed for project prioritization to ensure that resources are focused on the most viable set of opportunities for the organization. Since organizations are complex and factors tend to be of varying importance in opportunity assessment, the criteria and application of those criteria can also be complex. Many organizations develop tools and techniques to ease the opportunity prioritization process. The organization may have tools already being used to prioritize improvement opportunities. If so, it may make sense to use those same tools for prioritizing energy opportunities. If there are no such tools currently in use, the Prioritizing Energy Opportunities Examples and Worksheets file may be a good starting point. The table titled Criteria and Ratings for Prioritizing Energy Opportunities is available under the Blank Worksheet tab and it can be used to determine the opportunity priorities using criteria and ratings selected by the organization. Under the Example Worksheet tab of that spreadsheet there is a completed example of that table that shows how a rating scale can be established for each criterion. With respect to the Criteria and Ratings tables, both the Blank Worksheet and the Example Worksheet obtain a total opportunity score by multiplying the ratings for

each opportunity. The opportunity score helps with prioritization of the opportunities. Typically, the criteria used to evaluate projects will have different levels of importance. If the criteria are not equally important, then the team determines the relative weighting. For example, within an organization, estimated cost savings may be more important than the ease of implementing the opportunity. In this case, cost savings might be weighted twice as heavily as the other criteria. In thePrioritizing Energy Opportunities Examples and Worksheets file, the Blank Worksheet (Weighted) tab provides the table titled Example Criteria and Ratings for Prioritizing Energy Opportunities (Weighted). This table illustrates one approach to defining and using weighted criteria. The Example Worksheet (Weighted) tab provides a completed example that illustrates how the table can be used to define criteria and weightings for prioritizing energy opportunities.


Criteria for prioritizing energy opportunities were developed in Step 2.5.3 and incorporated into tools inStep 2.5.4. With the appropriate personnel, use the tool(s) you have developed, or chosen, to uniformly apply the prioritization criteria to the energy opportunities. Examples of how criteria and ratings can be applied are available under both the Example Worksheet tab and the Example Worksheet (Weighted) tab in the Prioritizing Energy Opportunities Examples and Worksheets file. (Under those tabs, see Example Worksheets for Prioritizing Energy Opportunities.) Note that in both examples, the opportunity scores are calculated for each opportunity and compared to determine the priorities. In these examples, the scoring is such that higher numbers will indicate higher priority. Re-order the list of energy opportunities from highest-to-lowest priority. Use a sanity check to evaluate the priority list. Make sure the list makes sense from perspectives that may not be directly reflected by the criteria. As new energy opportunities are identified, ensure they are prioritized and included in the priority order list.

"Where are we heading?" Questions : How will you tell your energy story? What energy commitments need to be addressed? What kinds of things could affect how much energy you consume? What kind of information does management need to understand how well that energy consumption is being managed?

The energy baseline is the starting point for measuring organizational energy performance, and energy performance indicators (EnPIs) are the quantitative measures of energy performance. The energy baseline comes from the

organizations energy review and serves as a reference against which future changes in energy performance are gauged. EnPIs can be used to quantify improvements in energy use, consumption and efficiency, at the organization, facility, system, process or equipment level. Energy performance indicators are measured parameters, ratios or models that are accepted by managers as an accurate representation of energy performance. Improvement in energy performance is determined by comparing current EnPIs against the initial values from the energy baseline. Responsibility for determining the EnPIs typically rests with the energy management representative and may involve other members of the energy team, as well as management. Resources to complete the EnPI determination process are allocated by top management. Energy baseline and EnPI details are presented in the following Steps: Step Step Step Step Step Step 2.6.1 2.6.2 2.6.3 2.6.4 2.6.5 2.6.6 Get stakeholder requirements for measuring performance Establish a baseline Develop a list of possible EnPIs Determine factors that affect EnPIs Select and test EnPIs Analyze EnPIs to determine performance


Energy management may have performance requirements imposed by stakeholders . Stakeholders can be internal or external to the organization. Possible stakeholders could include: Top management who may establish strategic business goals that affect energy management, e.g. a 5% cost reduction that includes utilities or a 5% reduction in greenhouse gas emissions. Operators or supervisors who use data to monitor operations to meet performance requirements. External interests such as governmental agencies, trade associations, or nonprofit organizations that impose energy saving requirements to qualify for recognition programs or receiving some benefit. Whatever the stakeholders performance requirements, EnPIs are the primary means for quantifying the effectiveness of energy management and improvement efforts. Assessing compliance with a stipulated performance requirement is the responsibility of the associated stakeholder. Internal stakeholders communicate program requirements through organizational documents such as: Annual reports Sustainability initiatives Environmental mandates Cost-cutting programs

External stakeholders employ different approaches to notify participants of their programs requirements. Communication methods that may be used by these stakeholders include: Internet websites Program application requirements Documentation submittals Implementation manuals and guides Additional descriptive program resources


The energy baseline is the reference point which is used as the basis of comparison for determining the energy performance. The baseline is established using the energy and organizational data from the initial energy review. The energy review was discussed in Step 2.2.1 and includes: Current energy sources Evaluation of past energy use and consumption Evaluation of present energy use and consumption Estimation of future energy use and consumption Significant energy uses and their current performance Identifying relevant variables Identification and prioritization of opportunities for improved energy performance Selection of the baseline is influenced by: the period for which reliable data is available identification of a period prior to beginning energy improvements determination of when active energy management was begun satisfaction of stakeholder and/or certification body mandates

The benefit of establishing a baseline is that it serves as a reference point against which future improvements in energy performance can be measured. The baseline facilitates comparison between where an organization is with respect to current energy performance and where it started before initiating an energy management system. The baseline typically encompasses a years time period but can be different based on influencing factors such as those listed above. The baseline can be established at any level of the organization and there may be multiple baselines. A baseline can be established for the entire facility and/or there can be baselines for individual systems, equipment or processes. The baseline(s) is (are) the reference(s) for comparing current energy performance to determine if performance is improving at any level that is useful for the organization. Because the energy baseline serves as the basis for comparison of energy performance, it generally remains stable over time. However, adjustments to the baseline are made:

when the EnPIs no longer accurately reflect organizational energy use or consumption, when there are major changes in the process, operational patterns or energy systems, or according to a predetermined method.

The baseline is recorded, maintained and periodically reviewed to determine if adjustments are required. The energy management representative has responsibility for preparing the initial energy baseline. Members of the energy team or organizational personnel can be called on as needed to help. Resources to prepare the baseline and the energy review are provided by top management in support of the organizations energy management efforts


Energy performance indicators are developed to provide a measure for energy performance. They typically relate energy consumption, cost or environmental impact to an appropriate organizational output. For commercial operations, EnPI may be Btu/sf or $/sf. For industrial plants, EnPI may be Btu/unit produced or Btu/$-value added to product, for example. In every case, energy performance indicators are quantifiable measurements that may be used to measure the success of utility management for a particular organization, part of an organization, product and project or in terms determined by a particular stakeholder. Since EnPIs measure energy performance on a per unit basis, comparisons over time at different output levels or at different locations of a similar manufacturing process are possible. An EnPI that makes use of this simple ratio is commonly referred to as energy intensity. EnPIs are defined and calculated from energy consumption divided by productive output for an organization, facility, product, process, department, piece of equipment or other part of the organization under consideration. When calculating the indicator, be sure that the energy measurement accurately captures energy consumption using the unit under consideration and that the production measure covers the same time frame as the energy data. The responsibility of developing a list of potential performance indicators falls to the energy management representative and any others that may be assigned to assist. The U.S. EPA maintains a database of energy performance indicators for many energy intensive industries. The EPA energy performance indicator is a plant-level indicator, not process-specific, and it relates plant inputs in terms of all types of energy use to plant outputs as expressed in a unit of production. Information on the EPA plant specific energy performance indicators for a number of industrial sectors can be found here. The Checklist of Potential EnPIs can assist in the determination of potential EnPIs. The Checklist does not show every possible EnPI but it can serve as a thought starter for the formulation of appropriate indicators.


Energy performance indicators are measures of results related to energy efficiency, use and consumption. If energy performance is solely related to production or one single output, an EnPI as determined in Step 2.6.2 can be used to project energy consumption for organizational planning purposes. However, if the components of an EnPI, energy and organizational output, can be influenced by other independent variables, the correlation of EnPI with potential supplementary factors should be examined. Independent variables that may be important include: Weather Operating schedule (days, weeks, hours, holidays) Product mix Input variations e.g. materials or moisture levels Output variations e.g. model or number of units Season of the year, especially if product or service demand varies seasonally Production line(s) and/or significant energy uses in operation

The benefit of determining the effect of independent variables on EnPIs is that factoring in non-production related variables will permit an accurate description of the energy/production relationship. Improving the correlation between energy use and productive output serves to increase the reliability of projected energy consumption and the subsequent determination of expected energy savings. If other variables will affect energy performance, the use of a simple ratio or energy intensity will not provide an accurate reflection or model of energy consumption. It may be necessary to develop more sophisticated models that allow the use of multiple factors for estimating energy consumption. One such method is regression analysis. Regression analysis is a statistical technique for modeling and analyzing the relationship between a dependent variable (energy consumption) and one or more independent variables (production, weather, moisture, etc.). The model developed by the regression analysis is an equation that can be used to predict the result based on the behavior of the selected variables. TheChecklist of Other Factors Affecting EnPIs can assist in considering and determining factors that influence EnPIs. The regression model can also be used to determine the impact of specific independent variables on energy consumption and help select the variables that provide the best model. The p-value is used to determine the statistical significance of a selected variable. Checking for other factors that affect EnPIs is accomplished by inserting the factor into the correlation model and observing the effect. To be considered significant, a factor must display a low p-value (<0.10), meaning there is only a 10% chance that a random variable would show a similar correlation. The R2 value tells how much of the dependent variable is explained by the independent variable or how good the dependent variable is predicted by the independent variable. A high correlation (R2>0.6) means that the selected independent variable explains 60% of the dependent variable variation.


To determine an appropriate EnPI model for a given situation, the possible input variables must be selected and the resulting indicator tested to ensure reliability. The baseline EnPI can be calculated using some form of tool for regression analysis. One reliable regression program for indicator selection and testing is the EnPI Tool. This tool has been successfully applied for EnPI selection and energy intensity savings determination. The EnPI Instruction Manual provides guidance on the use of the EnPI Tool. For selecting and testing the validity of the EnPI model consider the following: EnPIs can be tested for validity by comparing EnPIs for the same scope over time. For example, calculating the facility level EnPI for 2007 and 2008 to see if they are comparable within an allowable error tolerance. Another test can be completed by comparing the EnPI for similar facilities at two or more locations. That is, does the EnPI calculated for almost identical plants at different locations show reasonable agreement? Testing may also be accomplished by comparing your EnPI with some indicator from a similar, but external, source. Tests of EnPI correlation with and without the inclusion of other factors identified in Step 2.6.4can be conducted to identify if additional factors should be included and which factors provide the best results. An Example Regression with Other Variables shows the positive effect of incorporating other factors in the EnPI analysis. EnPIs are typically updated at least monthly; it can be more often depending on available metering and data acquisition capability. Best practice for many industrial firms is to review and update EnPI's at least on a daily basis. This allows for fine tuning of a process as energy intensity problems are identified and addressed quickly. The ultimate objective for formulating an EnPI model is to permit determination of improvements in energy performance. Responsibility for this task rests with the management representative or other personnel selected by the management representative with the requisite technical skills to successfully complete this step.


Energy performance improvements are measured by comparing the EnPI predicted by regression with the EnPI calculated from current energy and production data. At least four possible results representing different performance outcomes can occur when the comparison is made:

Calculated EnPI is below predicted EnPI which indicates improvement in energy performance; Calculated EnPI is above predicted EnPI which indicates deterioration in energy performance; Calculated EnPI and predicted EnPI are the same which indicates no change in energy performance; and Calculated EnPI and predicted EnPI show no discernable pattern in their relative values which could indicate variation in a factor assumed to be constant or the presence of variables unaccounted for in the model.

The benefit of making the comparison between actual and predicted EnPI is that it shows the direction and rate of change in organizational energy performance. Since the ultimate objective of energy management is continual improvement, consistent trends in actual and predicted energy performance indicators can demonstrate and quantify the improvement. The responsibility for EnPI analysis generally rests with the same personnel responsible for developing, testing and determining the factors that affect the identified performance indicators. Calculated EnPIs are recorded and reviewed on a regular basis. Updated EnPIs are incorporated in the facilitys Energy Review (Step 2.2.1) and used to help determine energy performance. This performance data will verify the success of activities such as energy efficiency projects, operator or maintenance personnel energy efficiency training and increased energy management awareness programs and provide a positive message for middle and top management to build support for the energy management system. Improvements in EnPIs are indicators of and should be linked to successes in energy management. Accurately recording and storing EnPIs creates a historical registry that will display the impact of energy management practices over time. The responsibility for maintaining the EnPI records is delegated by the energy management representative. In many cases, administrative personnel working on the management system will be selected.


Once the energy data has been collected and analyzed, the significant energy uses determined, and the energy opportunities have been prioritized, the next steps are to set the energy objectives and targets, and develop the appropriate energy management action plans. Energy objectives are developed using the organizations policies, goals, strategies and identified opportunities to provide goals for energy performance in line with the organizations energy policy. Setting the energy targets involves deciding on the specific metrics required for the organization to meet its energy objectives. Energy management action plan(s) define the activities, resources and responsibilities required to meet the organizations objectives and targets. Together, the objectives, targets and action plans constitute the primary engine for continual improvement in the organizations energy performance.

The following Steps will take you through this last part of the energy planning process: Step 3.1 Establish energy objectives and targets Step 3.2 Formulate energy management action plans


"Where are we heading?" Questions : Who is affected by the objectives in the organization? How can those affected contribute to the success of the objectives? How can the success of the objectives help those affected? Which opportunities would allow you to achieve the objectives? Which opportunities will not impact the objectives? What affects the energy consumption related to the objectives? Which opportunities would allow you to achieve the targets? Which opportunities will not impact the targets? How can you demonstrate that you have actually improved by achieving this target?

At this point in the implementation process: management has bought in to the EnMS, energy data collection and analysis has been completed, and energy opportunities have been prioritized.

ISO 50001 requires that the organization set and document energy objectives and targets that help the organization meet their energy policy commitment related to energy performance improvement. Energy objectives are specified outcomes or achievements that an organization sets to meet its energy policy commitment to improved energy performance. They are high-level goals that are communicated throughout the organization and are the basis for setting energy targets. Objectives provide a focus for the strategies around which energy activities are developed to achieve results. After the energy objectives have been defined, the organization needs to define one or more targets for each objective. Targets arise from an energy objective. They define the specific and quantified energy performance requirements that need to be met in order to achieve an energy objective. There may be more than one target for each objective. The target helps to define specific activities and may apply organization-wide or only to a specific part of the organization. The target demonstrates measurable movement towards the objective and includes a defined timeframe. Targets may be developed in conjunction with the objective or additional input may be required to identify the specific targets that will enable the organization to meet the objective(s).

Once objectives and targets have been defined, they need to be approved by management and communicated to those who can impact the objective or target. The following steps provide more detail: Step Step Step Step Step 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 Get the right people together Review the organizations policies, goals and strategies Set objectives and targets and define metrics Provide objectives and targets to management for review and approval Communicate the energy objectives and targets


The first step in establishing energy objectives and targets is to get the right people together. It is critical that the right people are included on the team to develop energy objectives and targets. The management representative and the energy team are key participants in this process, but involving other functions may be beneficial. The members of the objectives team will use the information discussed in the next steps, but should have some initial familiarity or stake with respect to energy use. Consider the following for the objectives team: Individuals with energy expertise Personnel in specialized functions e.g. accounting Personnel familiar with production equipment Management familiar with organizational plans and goals Suppliers or contractors that provide energy equipment or resources Customers Internal and external stakeholders, as discussed in Step 1.1.2

As with defining objectives, the first step in establishing the energy targets is getting the right people together. The personnel that will be involved in establishing the energy targets include representative(s) from the objectives team. But since energy targets are specific energy performance requirements needed to meet an objective, the targets team may need to also include people who are more hands on with the processes involved. It may be necessary to include personnel with area-specific knowledge to address particular technical requirements and who will be able to provide supporting data or expertise. Objectives Team Members Management Representative, Energy Team Members, Energy Use Stakeholders

----------------------------Targets Team Members Also includes members who are more hands on with the processes involved and have an interest or responsibility with regard to meeting the objective. An organizational chart is a good start for determining the appropriate personnel resources within the organization. Work schedules must also be consulted to determine availability.

Additional data collection or assessments may be necessary. These resources may not be available inside the organization. In this case, the organization may have to look to outside resources to complement the target teams make up. The management representative and energy team, with management input, determine the appropriate people to be on the objectives team and the targets team. Develop an Objectives/Targets Team Roster to promote communication, inventory expertise and assign responsibility for development of energy objectives and targets.


Before determining the energy objectives/targets, inputs need to be made available to the personnel involved in setting them. Provide the organizations policies, goals and strategies to the objectives and targets team(s) for review. This information will provide insight into the organizations priorities and plans for the future: Policy statements provide the framework for setting and reviewing objectives and targets and are a guide to the organizations priorities. Organizational goals are the final result the organization wants to achieve and energy objectives are in line with those goals. Strategies developed to achieve organizational goals must be considered in developing energy objectives. ISO 50001 requires the organization consider the following when developing energy objectives and targets: Significant energy uses Opportunities for improvement identified in the energy review Legal and regulatory requirements Other energy-related requirements adopted by or committed to by the organization Financial requirements and constraints Business and operational requirements and constraints Technological solutions Interested parties

Other inputs include: The materials developed during the activity for Step 1.1. These are helpful in determining the objectives by focusing the team on the important organizational goals and their relationship to energy use. The opportunities identified in Step 2.4 and prioritized in Step 2.5 provide focus for developing objectives in line with the organizations needs.

Trade associations can provide benchmarks for performance relative to industry sectors which can help provide a reality check on objectives. Equipment manufacturers can provide equipment performance benchmarks to help with realistic objectives development.

Other items that the organization may want to consider include: Energy resource quality and requirements Alternative energy sources Maintenance and infrastructure needs Personnel and technical resource availability Environmental impacts Safety and health issues Measurement capability Other data relevant to the organization and energy management

You may recognize that many of these inputs were obtained during the planning process. A review of this information may indicate additional personnel are needed to determine the objectives and targets. Include these personnel as appropriate.


The team(s) are now ready to define the objectives and targets. An energy objective is an energy performance improvement goal the organization sets for itself that is directed toward achieving the overall energy policy. Objectives identify specific outcomes, drive action and provide guidance on what an organization must do to improve energy performance. The objectives are in line with the organizations strategic plans and may be established facility-wide or at the appropriate departmental or process level. A target(s) has a specific metric that is used to determine whether or not the actions taken are producing the desired result and thus progressing toward achieving the objective. If more than one target is required to meet an objective, then all of those targets must be met in order to accomplish the objective. Energy objectives state the desired outcome in terms of the desired performance improvement, but not the specifics of how it might be accomplished. As objectives are defined, it may be necessary to collect other data or conduct assessments to more clearly define the objective. Objectives are specific and timeframes for achieving the objectives are established. Like the objectives themselves, the objectives team sets the timeframes based on input from management, the organizations business goals, and resource availability. ISO 50001 requires the objectives be documented. The first part of the Energy Objectives and Targets Worksheet helps the organization work through the items to be considered in setting an energy objective. The second part of the worksheet helps the organization plan how it will monitor progress and measure improvement related to the objective or target.

Examples of objectives are provided. ENERGY STAR Partners discuss establishing energy performance goals and provides examples which may be helpful in establishing EnMS objectives. Once objectives have been defined, specific process or equipment data, and other relevant information are then used to set the energy target(s). Targets may be developed in conjunction with the objective or additional input may be required to identify the specific targets that will enable the organization to meet the objective(s). Targets define the specific and quantified performance requirements that need to be met in order to achieve an energy objective. There may be more than one target for each objective. The target helps to define specific activities and may apply to all or specific parts of the organization. The target demonstrates measurable movement toward the objective and includes a defined timeframe. If more than one target is required to meet an objective, then those targets must be met in order to accomplish the objective. The individual or team assigned to develop the target(s) reviews the appropriate objective(s), the relevant strategic data, identified opportunities, and any metrics or timeframes that have already been established. These inputs provide focus for establishing the targets. Review the objectives to determine if there are additional data needs or there are other individuals or functions that should be involved in developing the target. If other resources are required, inform the energy team and management so they may be provided. Examples of targets are also provided. Using the strategic and other data from Step 3.1.2, the targets team defines the targets. The team ensures that the objectives and targets are documented. This is accomplished either through the management representative or the energy team. Documenting the objectives benefits the organization by: Clarifying the objectives Preventing misunderstanding or assumptions Providing structure to the process Supporting training Providing a means for accurate communication

Documentation may be in any format appropriate to the organizations management system documentation requirements. The Energy Objectives Report to Management, the Energy Targets Report to Management and the Energy Objectives and Targets Worksheet could be used for documenting the objectives and targets. It is not uncommon for organizations to have to revisit targets after a period of time. Often times, the organization discovers that the initial data or metrics used to measure the target needs to be revised to meet the objective. This should not be discouraging, but rather a valuable learning experience for the team.


Present the objectives and targets to management for review and approval in a clear and understandable format. Management ensures the energy objectives and targets are in line with overall organizational goals and strategies, and provide appropriate feedback. The energy manager ensures management is aware that this is their role in reviewing and approving targets and objectives. Sufficient information is provided to justify the objectives or targets purpose and its relationship to the organizations goals and energy management. The objectives and targets may be presented in a report and/or a presentation format in accordance with managements needs or desires. Management approves the objectives/targets or provides direction for any needed changes. Once the objectives and targets have been developed, modified or eliminated to management's satisfaction, they are formally documented.


Once the objectives and targets have been formally documented and approved by management, communicate them to the relevant organizational functions. At a minimum, communicate the objectives and targets to the energy team and to all functions and individuals that have a role in achieving them. However, consider a broad distribution as an awareness item for the entire organization. While some functions may not have direct responsibility for working toward the objective or target, awareness promotes a team effort for energy efficiency, organizational unity and support of energy goals. Objectives and targets are communicated via the channels established for energy management system communications and training. It is important to provide relevant information to make personnel aware of their responsibilities and any job impacts relative to the objectives. Employees should have a clear understanding what direct or indirect role they play in helping the organization achieve objectives and targets.


"Where are we heading?" Questions : What actions will provide the organization with the ability to achieve its overall objectives? What types of project management tools does your organization use now? What are potential barriers to action plan timelines? Are there other improvement tools such as lean-six sigma or continual improvement circles that you can leverage? How do you communicate new initiatives?

After establishing the energy objectives and setting the energy targets for an ISO 50001 EnMS, the organization determines how it will achieve them. This involves reviewing the list of prioritized opportunities and selecting projects for implementation. Once the organization has selected the energy projects to be undertaken, a project leader is designated and a team is assembled for each project. An energy

management action plan is then developed for each project. A good plan considers resources and includes planning, implementing, verifying and communicating. An energy management action plan developed to meet the requirements of an ISO 50001 EnMS defines, at a minimum: the activities to be completed, the resources needed to complete the activities, the person or persons responsible for completing the activities, and how verification of the results and improvement(s) will be done.

The designation of a project leader with overall responsibility for project implementation allows for one point of contact between management and the project team. This person drives the project team to ensure implementation is in accordance with the action plan. Below are some guidelines on selecting projects and developing energy management action plans. Step 3.2.1 Select projects based on resources and other factors Step 3.2.2 List the actions needed Step 3.2.3 Develop the schedule Step 3.2.4 Assign roles and responsibilities Step 3.2.5 Document and regularly update the action plans


The organization needs to undertake projects to achieve the specific targets established in Step 3.1. However, it is unlikely the organization will be able to provide resources for all of the projects on the list of energy opportunities developed in Step 2.4. Review the list of prioritized energy opportunities developed in Step 2.5. Consider also the energy objectives and targets, as well as organizational constraints such as available resources and funding, required downtime, labor (external and internal) availability, etc. Using this information, select and document the projects that are reasonable for the organization and that will enable it to meet the stated energy objectives and targets. This process helps ensure that projects most likely to be implemented and best suited to meet the energy targets are planned and implemented.


Designate a project leader for each energy project. The project leader will assemble a project team with representatives from the appropriate functional areas. The project team develops a list of actions required for project implementation. Each of these actions will require resources. The project team will document, in an energy management action plan, the required actions and resources. When defining actions necessary for project implementation, be sure to also:

Identify document revisions required by the project Train any employees or contractors on changes implemented due to the project Define the method(s) that will be used to verify the results of the action plan and the performance improvement(s) Continue monitoring and measuring project parameters to ensure sustained improvement Communicate benefits to stakeholders

A comprehensive list of actions helps ensure the team understands what is necessary to implement the project, and they can communicate required resources effectively to management.


After the list of activities and the required resources have been determined, the team develops an appropriate schedule for completing the activities, considering resource availability and the stated timeframes established for the energy objectives and targets. Ensure due dates are included in theenergy management action plan, and ensure the action plans are reviewed and updated at regular intervals as required by ISO 50001. If a comprehensive and accurate schedule is completed before starting the project, it will guide the project leader and the project team in driving the project to completion.


After the list of activities and the project schedule have been determined, assign responsibilities to appropriate individuals or teams to ensure completion of each action. Ensure responsible parties are documented in the energy management action plan. The project leader can use the action plan to track the delegation of implementation activities to employees and contractors. Determine if any activities need to be completed by personnel not represented on the project team. Consider adding these persons to the team, or ensure the project manager communicates with these supporting members.


The project implementation team holds regular meetings to review the energy management action plan and determines progress with the schedule developed in Step 3.2.3. The team will meet as appropriate based on the project scope and duration. During team meetings, use the action plan to determine if implementation is progressing as expected. Also, use team meetings to determine if any additional resources are required or if any additional activities need to be included in the action plan. Review and update theenergy management action plan in accordance with the schedule and use it to communicate regularly with management. An example of a completed action plan is here.


"Where are we heading?" Questions : What has made long term programs a success in your organization in the past? What characteristics does this project have compared to those characteristics? What changes have you experienced in your resources? What successes have you had in the program so far?

Thus far, you have worked through the "PLAN" processes of the PLAN-DO-CHECKACT continual improvement structure of the EnMS. At this point in the development of your EnMS, it is time to step back and perform a reality check. This is an important step for several reasons. First, the commitments of your energy policy and the outputs of the PLAN processes will guide and focus your energy management and improvement efforts in the EnMS. They are the inputs to the "DO" (Implementation and Operation)processes of PLAN-DO-CHECK-ACT. Before moving forward with the "DO" processes (Step 5), it is important to check that these "PLAN" outputs have been fully developed and the tasks associated with Step 1, Step 2 and Step 3 have been completed. Second, having spent considerable time and effort to this point on developing the "PLAN" processes of the EnMS, it is appropriate to check on your resources for this effort, as well as any lessons learned so far, and to make any adjustments needed as you move forward to the next phase of EnMS development and implementation. Finally, critical to successful implementation of an EnMS is ongoing communication across the organization and reporting on progress and accomplishments to management, both of which support ongoing management commitment and employee buy-in to your EnMS efforts. With the energy planning activities completed, this is a good time to take stock of what you have done and to communicate those results across the organization. Step 4 takes you through this important step back and reality check of where you are at this point in time. The steps involved are: Step Step Step Step Step 4.1 4.2 4.3 4.4 4.5 Review the status of your efforts Perform a sanity check on resources Identify accomplishments and lessons learned Conduct a management review Communicate across the organization


The first step in the Reality Check is designed to ensure that the PLAN processes of the PLAN-DO-CHECK-ACT structure of the EnMS are in place and the PLAN outputs fully developed. This involves checking to determine the status of the tasks outlined in Step 1, Step 2 and Step 3. TheReality Check Checklist can help you determine the status of the key PLAN tasks and ensure that all items are completed before you move into developing and implementing the DO (Implementation and Operation) processes of the EnMS.


Once you have completed all the items on the Reality Check Checklist (see Step 4.1), it is appropriate to perform a sanity check on the resources that have been expended up to this point and those that will be needed to move forward with EnMS development and implementation. The first part of this sanity check involves reviewing the resources needed to support the implementation effort itself and determining if there are issues that need to be addressed. This includes personnel and personnel time, as well as any needed funds or other resources such as meeting space, computers or other equipment. Some key questions to consider are: Do we have the right people involved? Have the assignments been made so that all tasks are covered? Are the assignments appropriate? Has management made available the personnel time needed for EnMS development? Have allocated funds been sufficient so far (e.g., for purchasing copies of the ISO 50001 standard, energy team training, software, hardware, etc.)? The second part of the sanity check is to ensure that the specific resources needed to implement and achieve the energy objectives, targets and action plans have been approved and allocated by top management. Resource planning for meeting the improvement objectives is part of action plan(s) development (see Step 3.2). Some key questions to consider are: Has personnel time and other resource needs been addressed in the action plans? Have the resources identified in the action plans been allocated by the appropriate level of management? Have personnel affected by the action plan(s) been informed? Use the results of these sanity checks to identify and communicate resource needs and issues to management as part of Step 4.4. Make sure that the resources needed for the next phase of EnMS development and implementation have been addressed and allocated.


The next step in the Reality Check is identifying what has been accomplished to date, as well as any lessons learned that could be applied in the next phase of EnMS development and implementation - the upcoming DO phase (Step 5). Assuming that all the PLAN tasks of Step 1, Step 2 and Step 3 have been completed, certainly the PLAN outputs can be identified as accomplishments. For example, at this point your organization has: Established and communicated its energy commitments (the energy policy); Produced a comprehensive profile of its energy situation (the energy review); Defined its energy performance indicators and set a baseline from which to measure improvements; Determined its energy uses that are a priority (the significant energy uses); and, Set specific energy performance improvement objectives and targets and planned for how they will be achieved. Consider other accomplishments as well, for example, positive impacts on energy team members as a result of their involvement in the efforts to date and possible improved energy awareness among employees. Take stock of these accomplishments and celebrate your success. Also, use this information in reporting to top management in Step 4.4. This is also the time to identify and consider any lessons learned as part of EnMS development to this point. Consider whether changes are needed in your approach to managing the next phase of EnMS implementation. Some key questions for the energy team and management could include: What worked well in this first phase of EnMS implementation? What didn't work well in this first phase of EnMS implementation? Were there any unexpected challenges? If so, how were they addressed and was it effective? Were there any unexpected benefits? Do you need to make any changes moving forward?

Use this information to make any needed adjustments to your energy team and its approach.


Management review is the key component of the "ACT" processes of thePLAN-DOCHECK-ACT structure of the EnMS. There are specific items of information ("inputs") about the EnMS and the organization's energy performance that are

provided to top management for their review and action. Although management review is not fully addressed until Step 7, it is useful to conduct a partial management review at this point in the development of the EnMS so that: more formal and comprehensive communication and reporting to top management about energy is initiated; the first steps are taken towards building an ongoing process that provides top management with the information needed for key decisions about priorities and resources for energy management; and before moving forward, top management can ensure that planned energy management actions are aligned with organizational and business goals. What items should be covered in this management review? The items to be covered would include: reporting on the progress made so far on development of the EnMS, including the accomplishments and lessons learned; any needs with respect to resource allocations; and a look at the EnMS implementation effort moving forward.

An Example Management Review Agenda can help you identify and organize the information to be reviewed by top management and plan for the decisions and actions needed as a result of their review. Who will gather the information needed for management review? The energy management representative is responsible for reporting to top management on the performance of the EnMS. As such, it is up to the management representative to ensure that relevant information is gathered and provided to top management for their review. The management representative may call on the energy team or others who have been assigned responsibility for certain data or information to help compile the information needed for the review. Does management review have to be a meeting? Management review does not necessarily require a face-to-face meeting. Other approaches can be used, for example, electronic meetings, e-mails, and electronic discussion boards. What is important is that key information is communicated to top management, that they review and consider that information and that any needed decisions and actions based on that information are identified and followed-up. Are records of the management review necessary? Yes. A record of the management review provides part of the evidence needed to demonstrate that the ACT processes are implemented. It does not matter at this point that this is only a partial management review, conducted during initial development of the EnMS and covering just some of the topics that management is expected to review. Suggested items to be recorded would include the date of the management review, the names and positions of the participants, the topics covered and information presented, and the decisions and actions of top management as a result of their review.



After Step 4.1 through Step 4.4 have been completed, initiate another round of internal communication about the EnMS and its results to date. Ongoing communication about the EnMS and your energy management goals and expectations not only keeps the workforce informed, but also reinforces that management is committed to this initiative and it is not a "flavor of the day that will soon pass away." You can select some of the key items presented in the management review (Step 4.4) to update the workforce on the progress that has been made up to this point. Key items could include: A review of the value of EnMS implementation to the organization Significant energy uses what they are where they are what processes are affected Summaries of the action plans to achieve the objectives and targets EnPIs and how they will be tracked and progress communicated Results of management review conducted in Step 4.4 Any changes to the energy team or the functions/departments represented on the team Next steps

This communication can be done in a variety of ways. It could involve the use of postings on communication boards, awareness training during shift or departmental meetings, or communication aids such as newsletters, paycheck inserts, break room posters, closed circuit television, or other approaches.


Step 5 is the DO (implementation and operation) part of the PLAN-DO-CHECKACTcontinual improvement model of the energy management system. DO is concerned with implementation of the results (outputs) of the PLAN process using mechanisms that can make energy management part of the daily operations of an organization. These mechanisms include competence, training and awareness, documentation, operational controls, communication, as well as design and procurement. Using these mechanisms, the key items that are implemented in DO are: management of the significant energy uses management of the energy-related legal requirements management of the energy-related voluntary requirements improvements through the actions plan(s) In short, the DO part of the EnMS is where and how energy performance and energy performance improvements are managed. The key components of energy performance include the: significant energy uses and their associated controls, the objectives and their associated action plans,

maintenance of past energy performance improvements, and maintenance of the energy systems. To ensure that energy performance and energy performance improvements are managed, the following steps are taken:

Step Step Step Step Step Step Step Step Step

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

Manage and control information Determine operational controls Ensure competence of personnel Ensure awareness of personnel Define purchasing specifications for energy supply Incorporate energy considerations in procurement Manage energy considerations in design Communicate internally Decide on external communications


"Where are we heading?" Questions : How do you currently ensure that employees have the correct information needed for their job activities? How do you currently control statistical and other data? What kinds of information, if any, do you provide to suppliers and contractors? Does your organization have a records policy in place? How are record retention times determined? Are responsibilities for documents and records defined and communicated?

You may find it useful to refer back to Step 1.4 before you begin this Step. In an ISO 50001 EnMS, information required by the EnMS must be controlled. Information typically: lays out the expectations for energy management actions and behaviors; and provides evidence of the effectiveness of the efforts and results of the energy efforts. These two types of information are referred to as documents and records respectively. Information that communicates what will be done or how it will be done is typically referred to as a document. Documents Example: Information that defines controls to be applied to an operation. Information that provides results achieved or evidence of activities performed is typically referred to as a record. Example: The results of the controls measured on a specific day. A simple way of distinguishing between documents and records is: Documents look forward. Records tell us about the past.


Documents and records are controlled separately under different requirements in ISO 50001. This Step addresses both sets of ISO 50001 requirements for controlling information. The best approach to implementing these requirements is

to keep it simple. Document control and records control systems dont need to be complicated to be effective. Keeping the controls simple not only makes implementation easier, but it can reduce the amount of resources required to maintain the controls over time. Information and guidance on control of documents is provided through the given link. Information and guidance on control of records is provided through the given link. CONTROL OF DOCUMENTS Since documents tell us what we are to do, it is important to ensure we have the right documents so we can perform our assigned responsibilities appropriately. Internal Documents: Internal documents are documents generated by the organization. Some examples of internal documents are: Definition of scope and boundary of the EnMS How the organization will meet the requirements of the standard Energy policy Methodology and criteria used to develop the energy review Methodology for determining and updating the EnPIs

External Documents: Often documents that are necessary for the planning and operation of an organizations EnMS are generated outside an organization. These documents are typically referred to as external documents and some examples include: legal documents, ordinances, laws, regulations, and industry or other standards such as ISO 50001.

Remember: Document control ensures the right information is available at the right place at the right time for the right person to do their job. The benefits of document control are that it: ensures correct information is available where needed and manages external information and obsolete information.

Before starting development of a system for document control, it is important to determine how your organization currently manages documents. If your organization already has a formal process in place, then it makes sense (and is likely necessary) to follow that process, making modifications as needed for the EnMS. Documents need to be: able to be identified (i.e., it is clear what it is and what activities it is related to), approved, reviewed periodically and maintained up to date, legible, and available where needed and distribution controlled.

Changes and the revision status are identified on the document, and obsolete documents are removed or identified to prevent unintended use. The Checklist of Document Control Basics can help you assess whether the document system already in place addresses all the elements of document control for an ISO 50001 EnMS. If you have no existing system, this checklist can be used to identify elements that are needed for the newly created document control system.

The controls that need to be defined and implemented in order to manage documents are as follows:
Assign Responsibilities: A common and useful approach to implementing a document control system is to designate a Documents Manager or a Documents Coordinator as the central point of control. Then, for each document in the EnMS, a Document Owner and a Document Approver are assigned. Responsible for: Content of the document, including the review and updating of that content. Document Owner Note: A document owner is assigned to externally generated documents the same as for internal documents. The owner of an external document is responsible for determining the applicability of the document to the organization. Authorized to approve the content of the document.

Document Approver

Document Ensuring the appropriate controls are applied to the document, Coordinator including the removal/identification of obsolete documents. Identification: The next step is to decide what specific features will be used to identify the different types of EnMS documents. Not all documents need to be identified in the same way. An example of how one organization chose to identify their documents is below: XYZ Company Identification Controls for EnMS Documents Document Type Energy Manual Procedures Work Instructions Blank Forms Plans and Programs External Documents Training Videos Document Number Title Issue/Revision Date Revision Number

Approval: Once the system for identifying documents has been defined, the process for approving documents needs to be defined. It is important to note that not all documents should be approved by the same positions. Documents should be approved by those positions that are responsible for the policies, decisions, or actions described in the document. Some organizations still use hand signatures as evidence of approval, but many others now manage their documentation electronically through the use of commercially available software. A typical electronic process is that a document is uploaded into a workflow that sends the document to each person responsible for approval. Upon receipt of the document, the person indicates approval or rejection. If rejected, the workflow sends the document back to the owner for resolution of the issue. If approved, the document is electronically distributed to the appropriate locations. A useful tool for defining controls associated with EnMS documents is a Document Control Index. This tool provides a one-stop shop for defining the controls associated with each document type. An excerpt, showing how approval authorities are assigned, from an Example Document Control Index is shown below. DOCUMENT CONTROL INDEX Approval Authority Origin (Internal Documents (Internal/External) Only) Energy Management Rep Operations Manager Preseident Dept. Manager n/a

Document Type


EnMS Manual

Energy Management Representative


Departmental Instructions ISO 50001

Dept. Manager Energy Management Representative

Internal External

Up-to-Date: Next, the process for keeping documents up to date needs to be defined. Reasons for revising or updating documents may be as a result of: changes to processes, facilities, systems or equipment internal audits, corrective or preventice actions, management review or periodic reviews conductedfrom time to time to ensure that the information is still accurate, adequate and relevant, or revision of an external document.

A Document Owner would be responsible for ensuring the documents assigned to them are kept up to date. They would also be responsible for performing a periodic review of each document assigned to them and ensuring it is revised as needed. See the example given in the Document Control Index where a Next Review date has been set for 1/31/2011.

Part of updating documents involves identifying for the user any changes that were made and ensuring that the revision status is updated. Many organizations use a Revision History Table within a document to summarize the changes made. Other approaches include highlighting or underlining the revisions, or using training to identify and review the modifications. Legible: A requirement that appears obvious, but is often misunderstood is that of ensuring documents are legible. One would think that in todays electronic world where we have very few paper copies that can deteriorate, legibility would be a disappearing issue. However, the reverse is true. In our world of electronics, we are more likely to store documents electronically and in a few years change our software to where we can no longer read the files. It is the document owners responsibility to ensure documents are maintained as readable over time. Available: Documents must be made available at points of use. More and more organizations are using electronic documents, but some are still using paper copies. The goal here is to ensure that current documents are available to those who need them and that obsolete ones are removed or otherwise identified to prevent unintended use. Example: A superseded revision of a drawing is an example of an obsolete document. Purchasing will typically need to purchase to the current version of the drawing; but Engineering may need to use an older version of the drawing to determine why a piece of equipment failed. Therefore, the document control system needs to ensure the older revision of the drawing is available to Engineering, but is maintained in a way that it will not be used by Purchasing to procure new equipment. For organizations that use electronic documents, ensuring that the proper information is located where it is needed is typically a matter of ensuring computer access in those areas and removal from points of use would mean making the documents unavailable through the computer access. Organizations that use printed documents will need to identify and control a specific number of copies which are then physically located at the appropriate points of use removal from points of use would involve physically removing the documents from the specific areas where they are located. In either case, controls must be implemented to ensure that where the documents are located or accessed is known. An excerpt, from an example Document Control Index, showing person responsible for distribution and where the document is distributed is shown below. DOCUMENT CONTROL INDEX Position responisble for distribution Document Control Coordinator Dept. Manager CONTROL OF RECORDS Remember, a record is information that provides evidence of: conformance with requirements of the system and the ISO 50001 standard, or results of the energy management and improvement activities. Where is the document distributed? (k:\EnMS\Procedures and Forms\xx) Department Manuals Next review date 1/31/2011 1/31/2011

The purpose of record control is to ensure the information is maintained for the time needed and is legible and retrievable for the storage timeframe. As a result, a system is needed that ensures the information: remains legible and identifiable; can be traced back to the activity performed; is maintained for the necessary timeframe; and, is retrievable.

Benefits of maintaining records: Data contained in records can serve as a basis for comparison Records provide assistance in corrective and preventive action efforts Records confirm the processes and results of your system

A record control system must consider the types of media and storage used by the organization. Records may be paper or electronic and different records may be stored in a variety of different locations. Some examples are: paper files in office cabinets or stored in warehouses, electronic files stored on the local intranet, electronic files stored on CDs, tapes, or other long term storage media, electronic files maintained in duplicate storage off-site, electronic files stored on individual computers, microfilm or microfiche.

Identifiable and traceable: It must be clear what the record is and what activities it is related to. An example is for the record to have a clear title or subject that matches the content. Maintained for the necessary timeframe: Controls for the retention of records must be defined and implemented. Keep in mind that record retention periods may be different for different types of records. The records control system should ensure retention times are defined for each type of record and that the record is maintained for the required period of time. The organization should take legal requirements and business needs into consideration when defining retention times. Many organizations have record retention periods reviewed and approved by their Legal Department. Legible and retrievable: The record must remain readable and be able to be located. If it is in electronic form, a process must be in place to maintain the equipment, operating system, and software to ensure the record can be read during its retention period. Paper must be stored such that the text will not fade away or the paper deteriorates to the point that it is unusable. An example to consider is a record generated in 1972 that has a retention time of 50 years and is stored on microfiche. Does the organization still have a microfiche reader? Did the organization convert the record to a different media before eliminating all microfiche readers? A Records Control Index is a good tool to help define the records control process. AnExample Records Control Index is also provided.

If your organization already has a records policy or perhaps another management system in place (such as ISO 9001, ISO 14001, etc.), it may be important to coordinate or integrate the control of EnMS records with the existing records, policies and controls. In this case, as illustrated on the Example Records Control Index, responsibilities for record ownership and for maintaining records may be assigned to different positions. Where there is not another records control system in place or where control of EnMS records is developed as a stand-alone system, the same position may have responsibility for all the controls associated with a particular type of record. Clearly defined responsibilities are critical to effective control of records. In summary, records provide the information needed to demonstrate that the organization is doing what it says it will do and to determine the effectiveness of the system, including its improvements in energy performance. Documents define the expectations for the EnMS and provide information that personnel need to perform their job responsibilities. Therefore, control of information is critical to the success of an energy management system.


"Where are we heading?" Questions : How do you currently plan operations and maintenance activities? What operational or maintenance controls or criteria are already in place? Do existing operational or process controls or criteria address energy? How are operational and maintenance controls communicated to on-site contractors or suppliers?

Operational controls ensure that critical equipment, systems, processes and facilities are run and maintained to achieve required output and efficient performance. Properly defined operational controls promote the efficient and uninterrupted functioning of critical equipment. Operational controls can take a variety of forms. They can include, for example, procedures and work instructions, physical controls, use of licensed or other qualified personnel or combinations of these. Determining operational controls involves identifying and planning of activities to make sure that critical factors affecting energy performance are known, used, and communicated to responsible personnel. When used correctly, operational controls ensure essential operations are run and maintained to achieve continual improvement. Effective operational control is achieved through the following steps: Step 5.2.1 Determine and establish effective operating criteria Step 5.2.2 Operate according to established controls Step 5.2.3 Communicate operational controls


Operational control is required for significant energy uses. Developing proper operational control begins with determining the correct operating and maintenance criteria for significant energy uses. Significant energy uses, whether they are facilities, equipment, systems or processes, have optimum running conditions and

maintenance that define their efficient operation and allow them to achieve their design service life. The Significant Energy Use Operational Criteria Worksheet (for Equipment) is one example of how information on operating and maintenance criteria can be organized and recorded. You may want to consider developing additional operational controls to address other factors related to energy performance, such as the effectiveness of the action plans in achieving the energy objectives and targets, controls needed to sustain past energy performance improvements, and the maintenance of energy systems (e.g., compressed air, steam, etc.). A variety of sources can be used to determine the recommended operating and maintenance criteria for significant energy uses and other factors that can impact energy performance: Manufacturer's recommendation Operation defined by system personnel who measure performance Operating conditions defined by minimum process or system requirements Service personnels suggested operating settings and maintenance intervals Statistical process control Benchmarking performance of similar equipment

Keep in mind that its likely there are some operational and maintenance criteria already in place within the organization, especially as related to the efficient operation of equipment. Part of determining operational controls is examining what is already there, and incorporating it into the EnMS as it relates to energy performance. Take stock at whats in place and take a fresh look at what else is needed for the purposes of controlling operations related to the significant energy uses. Once the appropriate operating criteria are determined, they are then implemented as the target operating state. The next Step (Step 5.2.2) addresses operating the facilities, equipment, systems or processes associated with the significant energy uses according to the established controls.


Once the appropriate operational and maintenance criteria for each significant energy use has been determined, the criteria and their associated operational controls must be implemented. This means that the facilities, equipment, systems or processes associated with the significant energy uses must actually be operated and maintained so that they meet the criteria. Generally, operating and maintenance criteria are implemented through training, communication and documentation. Although there are no explicit ISO 50001 requirements for documented operational controls, and sometimes extensive training systems are used, documents are often used as operational controls. These could include work instructions, equipment logbooks, instruction sheets, checklists, postings, or other relevant documents made readily available to operating personnel. What is important is that the operating criteria are clear and accurate and appropriate employees and contractors are aware of them. Often, regular

inspections are used to confirm that the operational controls are being followed and the criteria being met. As indicated in Step 5.2, operational controls may also be physical devices, as well as the use of certified or other specialty qualified personnel. For example, physical devices could include building automation systems (BAS), air compressor sequence control or other automated controls. Use of certified or specialty trained personnel could include a licensed boiler operator, licensed waste water treatment operator or licensed electrician. The Significant Energy Uses Control Chart first introduced in Step 2.3 can be used to document references to operational controls by entering them in Column 4 of the Control Chart. AnExample Significant Energy Uses Control Chart with the operational controls (Column 4) filled-in is included to show how this form can be used. Note that the Example Control Chart includes information on records associated with specific operational controls (see Column 8).


It is critical that operational controls are communicated to the appropriate personnel, including on-site contractors or suppliers performing work associated with the significant energy uses. A robust process for communicating and training on the required operational controls ensures that expectations with regard to performing and following those controls are known and understood by appropriate personnel. Effective communication of operational controls and the associated defined operating conditions can take many forms, including: On-the-job training Shift training Classroom training Work instructions and/or equipment operating procedures Work area postings Logbooks listing defined operating conditions and collecting data on actual operation Contractor/supplier meetings and handbooks Brochures or other outreach materials

After the operational controls have been identified, planned and referenced or recorded on the Significant Energy Uses Control Chart, use the Operational Controls Checklist to determine if the important elements of operational control have been addressed for each of the organizations significant energy uses.


"Where are we heading?" Questions : How do you qualify personnel as competent for their job positions? Do you have records of competency (education, training, skills or experience) for your personnel? How do you identify training needs? How do you ensure that actions are taken to address training needs?

Personnel performing work related to the organizations significant energy uses must be competent to perform those tasks. If they are not competent then steps must be taken to ensure they are brought up to the level required to perform the job. Proficient performance minimizes resources and maximizes energy efficiency. To ensure personnel competence, follow these Steps: Step 5.3.1 Define competencies Step 5.3.2 Assess personnel against competencies Step 5.3.3 Develop plan to address training needs


The first step to defining competencies for jobs related to the significant energy uses is understanding the concept of competency as used in an ISO 50001 EnMS. Competency is concerned with the qualities or abilities needed by an individual to effectively perform the responsibilities of their work position. Competencies may vary for each job. In ISO 50001, competency is based on one or more of the following: appropriate education, training, skills or experience. Skip to Step 5.3.2 if you are already familiar with these concepts within an ISO 50001 context. Education Knowledge generally acquired through a formal educational program such as a school, technical institute or university. Examples include a high school diploma, GED, an associate degree in manufacturing technology, a B.S. in energy engineering or a Masters in business. Training Knowledge generally acquired as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful capabilities. Examples include boiler operation, electrical system maintenance or waste water treatment. Skill Talent or ability that can be learned or developed and is subsequently demonstrated. Examples include welding, painting, or software development. Experience The accumulation of knowledge or skill that results from direct participation in events, activities or tasks. Experience is often gained from activities or responsibilities in previous jobs. Examples include managing personnel, being a training instructor, or designing energy equipment. As stated previously, in an ISO 50001 EnMS, the work positions associated with significant energy uses (see Step 2.3) must have defined competencies. For example, if a boiler system is identified as a significant energy use, the jobs associated with the operation and maintenance of the boiler system must have defined competencies. And, there needs to be evidence that the person(s) performing boiler operation or maintenance have met those competencies. In this

case, the competencies would focus on the education, training, skills or experience needed to ensure that work requirements related to proper operation and maintenance for efficient energy use. For ISO 50001, it is important to note that competency requirements extend beyond the organizations employees to anyone working on the organizations behalf who is performing tasks related to significant energy uses. This would include on-site contractors, suppliers, consultants and the like if they are working in areas with significant energy uses. Organizations often use job descriptions, position announcements, job requirements or similar documentation to spell out job competency requirements. ( Helpful hint )The Competency Requirements and Record Form can be used to define the competency requirements. A form is generated for each position associated with significant energy uses and can be stand alone or part of other Human Resource documentation. For an example of how this form can be completed, see the Example Competency Requirements and Record Form for a maintenance electrician.


Personnel are evaluated against the competency requirements. This evaluation is required for anyone who will perform work related to significant energy uses on behalf of the organization. This could include salaried or hourly employees, part time and temporary workers, as well as others performing on-site work for the organization. Any gaps in competency for an individual are identified and training needs or other actions are determined. Once identified, the needs are used to develop a plan to bring the employee up to the desired competency level (See Step 5.3.3). The Competency Requirements and Records Form can be used to record the evaluation of an individuals education, training. skills or experience relative to the competency requirements and to identify gaps. See the Example Competency Requirements and Record Form for a maintenance electrician. Note: The nature of the competency requirements and needs analysis may indicate that training is not appropriate. In this case, other actions may be appropriate, such as further formal education.


Once the competency needs have been determined, training or other action must be provided to eliminate the gap. A plan is developed to ensure training or other required actions are provided. Page 2 of the Competency Requirements and Record Form is used to record the plan. Once developed, the training plan usually is reviewed by the employee, supervisor and/or training coordinator for relevance to the identified training need(s). An example training plan appears on Page 2 of theExample Competency Requirements and Record Form.

Completion of the training and/or other actions must be recorded. This can be done on Page 2 of theCompetency Requirements and Record Form. For organizations considering technical training on energy systems, the U.S Department of Energy (DOE), Advanced Manufacturing Office (AMO), has created a training program focused on delivering comprehensive training on best system practices, AMO tools, and ensures plant personnel and end users effectively utilize the resources developed by DOE. In order to meet the demands of an ever changing population, AMO courses offerings are available through Instructor-led classes and workshops and self-paced interactive e-learning courses. In order to meet the demands of an ever changing population, AMO course offerings are available through Instructor-led classes and workshops and self-paced, interactive e-learning courses.


"Where are we heading?" Questions : How are employees made aware of changes in expectations? How are employees made aware of changes in operational items? Are employees and on-site contractors aware of how they affect energy consumption?

ISO 50001 has requirements for energy awareness of personnel that go beyond just employees. Persons working on behalf of the organization, such as on-site contractors and suppliers, consultants and others, must also be aware of their responsibilities related to the organizations EnMS. Ensuring the ongoing energy related awareness of personnel is key to driving energy management into the organizations daily operations and supporting effective functioning of the EnMS. The Steps to ensuring the energy-related awareness of personnel are: Step 5.4.1 Define awareness requirements Step 5.4.2 Plan and implement training


To be effective, all personnel included within the scope and boundaries of the EnMS must be aware of how the EnMS impacts their daily work activities and know their responsibilities. It is important to note that, unlike the competency requirements of ISO 50001 (Step 5.3), energy awareness is not limited to persons performing tasks related to significant energy uses. General energy awareness is relevant to personnel across the organization, as well as to those providing work for the organization (e.g. on-site contractors, suppliers, consultants and others). Awareness items to address for all personnel include: Conformance with the energy policy The energy policy sets the organizations strategic direction, communicates its energy commitments and establishes energy as an organizational priority. Personnel are expected to be aware of how energy relates to their job activities and how their work demonstrates the commitments of the energy policy, including improved energy performance and compliance with legal and other requirements.

The importance of following EnMS procedures and requirements An EnMS is put in place to manage and improve energy performance, including energy use, consumption and efficiency. Personnel are expected to follow the EnMS procedures related to their work responsibilities and conform with the requirements of the system.

Roles, responsibilities and authorities These should be clearly defined for any organization but should also be clear for each employee relative to the requirements of the energy management system. They should be aware of not only their own responsibilities but those of the key individuals associated with the energy management system including the energy management representative and the members of the energy team.

Improved energy performance benefits Personnel must be aware of the benefits of improved energy performance. Examples of potential benefits include reduced costs, higher profit margin, more efficient operation, less maintenance, reduced environmental impact, extended equipment life and improved comfort.

Impact of activities on energy consumption Personnel must be aware of how their activities can and do affect energy use and consumption. Impact of employee activities on objectives and targets The energy objectives and targets are the organizations goals around which strategies are developed to achieve improved energy management and energy performance (see Step 3.1 and Step 3.2). Personnel must understand how their activities and behavior contribute to the achievement of the energy objectives and targets.

Consequences of not following procedures The policy is an umbrella for the development of relevant procedures for control of energy activities. Procedures provide a guide for conducting activities to maximize energy efficiency and reduce consumption. Personnel must be aware of the consequences of not following procedures and the potential impact on energy efficiency, use and consumption.

As a practical matter, if employees and contractors are performing work related to the significant energy uses, in addition to the above items, they must be aware of the components of the EnMS that are called in to play as a result of designation as a significant energy use. With respect to these significant energy uses they must be aware of the following as relevant to their work responsibilities: Operational controls associated with the significant energy uses (See Step 5.2) Monitoring, measuring and analysis requirements (See Step 6.1)

Energy performance evaluation of products, services and equipment procured from suppliers (See Step 5.6)


Once the awareness requirements have been defined, a plan is developed and put in place for implementing the requirements, typically through a training process.The Awareness Requirements Form is a tool that can help with defining and documenting the specific awareness requirements associated with each individual, position or department for meeting the requirements of the energy management system. Once the specific awareness needs have been identified the EnMS Training Needs Planning Matrix helps document the awareness training needs throughout the organization and allows a plan to be developed to address those needs. The training plan includes: Who Who is the target audience? Will specific awareness topics be required for all employees, only certain departmental employees, all contractors or only specific contractors? Also who has the expertise and resources to provide the training? What What are the awareness activities to be communicated? The awareness activity may be different depending on the target audience. When When will training be provided? Will this be done during an orientation session, on a regular basis, as required based on defined influences, as a part of regular performance evaluations or during regular staff and shift meetings? Where Will the training be conducted in-plant, out of the plant, at the employee work station, at a contractors location or in a training room? How How will the training be delivered? Will it be a classroom session, selfpaced videos, reading materials, signs, bulletin boards or computerized instruction? Record What will be the record of the training? Will it be a sign-in sheet, certificate or a note in the employee training record? The EnMS Training Needs Planning Matrix can be used to identify awareness requirements for all groups of employees and others working on behalf of the organization. AnExample EnMS Training Needs Planning Matrix can be found through the provided link. (Note that the EnMS Training Needs Planning Matrix can also be used to identify and plan other EnMS-related training such as internal auditor training.) Most organizations develop some form of general EnMS awareness training that can be used as an overall introduction to the EnMS for multiple audiences. This general awareness training typically ranges from 5 to 30 minutes in length and may or may not involve such training and communication aids as videos, slide presentations, handouts or postings. AnExample EnMS Awareness Training Slide Show can be found through the provided link. A blank template for an EnMS Awareness Training Slide Show that follows the outline of the Example Slide Show can be customized and is available here. Sometimes, depending on the nature and complexity of the

significant energy uses, additional targeted training may be provided to personnel working in areas with significant energy uses. There are a variety of methods for ensuring awareness of relevant EnMS requirements by contractors, suppliers and others who perform work on-site. Sometimes they receive the same general EnMS awareness training as employees, while other approaches may involve the distribution of brochures or other print materials containing the relevant information. Regardless of the approach used, evidence of awareness training or communication must be maintained or readily available (for example in the case where the contractors or suppliers organization is responsible for providing the appropriate awareness training, the records might not be kept on-site). Awareness training can be recorded in a number of different ways, usually depending on the culture and existing procedures of the organization. These can include: Competency Requirements and Record Form, Training certificates placed in employee files or in a training database, Sign-in sheets maintained in the department, Human Resources or other central location, and Separate forms established as records of awareness training.


"Where are we heading?" Questions : Who is responsible for the purchasing of energy? Is there communication between those responsible for purchasing energy and those who use the energy that is purchased?

An important part of procurement in an energy management system involves acquiring an adequate supply of energy with acceptable quality to maintain ongoing operations. Identifying suppliers who provide energy at a competitive price should also be a consideration. Developing purchasing specifications for sources of energy helps ensure the availability of a sufficient quantity of energy with acceptable quality and at a reasonable price. ISO 50001 requires that the organization define and document specifications for the purchase of energy supply. Purchasing specifications for energy supply may include: quality and quantity requirements, expected timing of deliveries, specific characteristics such as fuel composition, moisture and energy content (e.g., biomass), or voltage, current, and peak demand for electricity, resource reliability, and expected cost.

The development of an energy supply purchasing specification is dependent on the given energy source as well as site specific factors such as location, manufacturing process requirements, environmental regulations and similar issues. An example of a site specific factor influencing energy purchasing could involve a carpet manufacturer using a direct-fired dryer. Because the carpet comes in contact with combustion products, a clean fuel like natural gas or propane is required. Fuel oil or solid fuels are excluded since contact between the finished product and combustion gases could result in contamination with soot or ash. Energy purchasing specifications are formulated to ensure the effective use of energy. Factors relating to the effective use of energy can include: significant energy uses, objectives, targets and action plans, manufacturing or business process conditions, and environmental impacts.

To help you develop purchasing specifications for energy supply,Energy Purchasing Specification Worksheets are provided in an Excel file. The worksheet gives organizations a good start in identifying important energy supply parameters and in formulating suitable purchasing specifications. Because purchasing specifications are so dependent on the energy source, the worksheet includes separate tabs for electricity, natural gas, fuel oil and solid fuels. Since effective use of energy is an important consideration in purchasing, the worksheet contains a column for rating whether or not the purchasing factor influences effective use. For example, consider the sulfur content of fuel oil as a factor relating to effective use. Since one determinant of environmental impact is sulfur dioxide emissions, fuel oil sulfur content will influence the effective use of this energy source. Energy supply specifications are documented to ensure that organizational energy source, delivery, price, invoicing, payment and contracting requirements are known by potential vendors and satisfied by selective purchasing. To assist in preparing energy purchasing documentation, energy source specifications can be developed using the Energy Purchasing Specification Worksheet, along with input from the procurement and legal departments. Procurement specialists are able to provide support on delivery, invoicing and payment requirements while legal analysts provide assistance with contractual issues. Proper documentation of energy purchasing specifications will ensure that not only the initial energy supply meets all requirements but future supply will as well. TheEnergy Purchasing Specification Summary can be used to help pull together the information needed for purchasing of energy supply.


"Where are we heading?" Questions : Is energy considered in procurement decisions? Are purchasing personnel aware of items that can impact the energy performance of the organization? Do you assess energy use, consumption and efficiency over the lifetime of purchased energy -using products, equipment and services?

After addressing the purchasing of energy supply (Step 5.5), the next step is to consider procurement actions to support the energy management system. The purchase of energy-using products, equipment and services can significantly affect the energy performance of an organization. It is important that the organization makes the connection between procurement and its impact on energy performance. At a minimum, energy performance for an organization is established by: energy performance of the significant energy uses, energy performance indicators (EnPIs), and effectiveness in meeting energy objectives and targets through action plans.

Look at those activities that are important to the success of the energy management system. It makes sense that your purchasing activities support effective management of the significant energy uses and the achievement of the energy objectives, targets and action plans, and result in energy performance improvement whenever possible. To ensure that procurement actions support the energy management system, it is critical that the following are communicated to personnel who can affect procurement: significant energy uses and their related operational controls, energy objectives, targets and action plans, EnPIs, operational controls critical to sustaining the improvements made by past energy projects, and key maintenance items, especially as related to energy systems (e.g. compressed air, steam, etc.). Once personnel are aware of the EnMS related items, it is their responsibility to purchase items in a manner consistent with the EnMS needs. Purchasing is handled by a corporate or headquarters function in many organizations. Purchasing is handled by a corporate or headquarters function in many organizations; some ideas to consider in this situation have been provided through the given link. In an ISO 50001 EnMS, the energy use, consumption and efficiency of items that are expected to have a significant impact on energy performance over their planned or expected operating lifetime must be assessed. Criteria for making that assessment (or evaluation) must be established and implemented. There are many tools that may be used to calculate life cycle cost and the one that is best for your organization will depend on the items purchased and their application, as well as the complexity of your accounting system. The Life Cycle Cost Assessment Worksheet provides a simple accounting based tool for calculating life cycle cost. Other resources for life cycle calculation methods are provided in the Life Cycle Resource List. Specifications for the items being purchased need to clearly identify any energy performance related requirements. These requirements must be communicated to suppliers so they are aware that energy performance is part of the evaluation criteria. Leverage your existing processes for communicating with suppliers to include this information.

As an example, consider an Engineering Department that two years ago evaluated the energy use of compact fluorescent and incandescent lamps over their planned or expected lifetime. The analysis showed that substituting fluorescent for the currently used incandescent bulbs would result in a substantial energy performance improvement. The fluorescent bulbs cost more initially, but over time will use less energy. Based on this study, all bulbs in the warehouse were changed to compact fluorescent. Now it is five years later, and new lamps are needed in the warehouse. Purchasing has the option of buying either compact fluorescent or the less expensive incandescent bulbs. Since Purchasing tends to be evaluated on price per unit, they would typically base their decision solely on first cost and buy the less expensive bulb. In doing so, Purchasing will endanger the success of the lamping project and its savings. Purchasing may buy the less expensive bulbs if Engineering did the project in isolation and failed to tell Purchasing that the lamping specification had changed. However, if Purchasing personnel were made aware, through changes to the lamp purchasing specification, they would have the support needed to justify the difference in initial cost. Another point to take from this example is that the change to fluorescent bulbs results not only in energy savings, but also in reduced maintenance costs equal to the energy savings. When the effective life of the incandescent versus the fluorescent bulb was considered, the labor costs to more frequently replace the incandescent bulbs was significantly more than for the fluorescent bulb. The Example Life Cycle Cost Assessment Worksheet uses the lamping initiative to demonstrate how life cycle cost may be calculated. As previously stated, with Purchasing, the categories that need to be looked at to allow projects to be successful are: significant energy uses and related operational controls, objectives and targets and related action plans, performance of past projects, and energy system maintenance. Cost factors from the example lamping project include replacement bulbs, energy, loss of performance, and the maintenance cost of lamp replacement. Another example is that of the savings related to an inexpensive maintenance item. Consider quick disconnect O rings for compressed air systems. Replacement O rings can cost from two cents to one dollar. The more expensive rings result in an improved efficiency of the system of as much as 8% 12%. Despite higher first cost, over time the increased efficiency of high quality O rings results in a significant savings. There are numerous examples of an improvement in energy performance that can be captured with a small maintenance item including high efficiency air filters, electronic condensate drain valves on compressed air systems, synthetic lubricant and low leakage couplings. In summary, look beyond just significant energy uses at the bigger picture of how procurement impacts any item that affects energy performance. Look at significant energy uses and their related controls; objectives, targets, and action plans; EnPIs; operational controls to sustain past energy improvements; and the maintenance of your energy systems. The Procurement Checklist can assist with the implementation of the ISO 50001 requirements related to procurement processes.


"Where are we heading?" Questions : How is energy considered in new projects or design? How do you plan for changes in facilities, equipment, systems and processes? Who is involved in planning for changes to facilities, equipment, systems and processes?

Design refers to developing new, or changing existing facilities, equipment or processes that can have a considerable impact on energy performance . It is important to note here that design, as related to an ISO 50001 energy management system, is not the same as design in many other management systems. For example, design, as used in a quality management system, covers all aspects of a product, and includes materials used, number of parts included, layout, assembly and interaction of component parts. Design, in an energy management system, refers to those activities that are needed to support energy performance improvement. Before implementing the design requirements of ISO 50001, it is important to understand energy performance and to have already identified the organization's significant energy uses (Step 2.3), EnPIs (Step 2.6), and energy objectives and targets (Step 3.1). Identification of the significant energy uses in Step 2.3 involves determining where the most energy is consumed and what energy uses have the best opportunities for improvement. For design, think about how changes to the organizations facilities, equipment, systems, and processes can affect energy performance. This thought process is part of design.
Look for energy efficient solutions!

Next, objectives, targets and action plans were developed. Development of the action plans involved consideration of the need for new or changed facilities, equipment, and processes necessary to improve performance. This is also design. The system is being designed for continual improvement in energy performance. Examples of design for energy performance improvement: Design buildings to use solar energy. (Facilities) Design lighting to automatically adjust according to the amount of daylight present. (Equipment) Design air conditioning systems to use a water cooled central chiller instead of an air cooled split system for cooling. (System) Design the molding process such that hydraulic pumps only pump the volume needed instead of operating at full speed and pumping full volume. (Processes) Any facilities, equipment, systems or processes that are within the scope of the EnMS that can significantly impact energy performance falls under design. This means that energy performance improvement opportunities and operational controls are considered in the design, renovation or modification of those items that can affect energy efficiency, use and consumption.

When designing or upgrading facilities, equipment, systems or processes that can significantly impact energy performance, it is important that close attention be paid to how new energy-efficient technology is specified, applied and used in order to avoid misapplications. Installation of energy-efficient equipment does not ensure improved efficiency if the retrofit is not properly specified. And, no energy-efficient technology will capture savings when installed or programmed incorrectly. Learn more. Some questions to ask when designing new, modified, or renovated facilities, equipment, systems, and processes include: What characteristics of this item impact energy consumption? (past, current, or future) Where and how can energy consumption be reduced? What operational controls can be put in place to ensure the potential improvement is achieved? The design process should be coupled with proper operational control for energy efficient designs to achieve their full potential. Since equipment controls can be bypassed or disabled, an operational control strategy must be combined with efficient design to make sure that anticipated savings are achieved. An example of the importance of proper controls to energy savings is provided through the given link. During the evaluation of energy performance improvement opportunities, consider the following: How will the existing processes, systems, facilities, or equipment be modified? What specific items can be changed to improve energy efficiency and reduce energy consumption over time? What is the right energy source? What are the technological options?

The Worksheet for Energy Considerations in Design may be useful in identifying and evaluating energy performance improvement opportunities and operational controls in design activities. Once these questions have been answered, take action to improve energy performance. The results of the energy performance evaluation must be incorporated into the specification, design, and procurement activities related to the project. Incorporating results into procurement specifications and activities keeps the purchasing function in the loop, ensures their awareness of purchasing requirements to support the improvement and provides the justification for any additional costs. A record of the results of design activities must be maintained.


"Where are we heading?" Questions : What mechanisms are in place for communication with the workforce? Is information about your energy performance communicated internally? Do you have a comment or suggestion process available to employees and onsite contractors or suppliers?

Why is communicating internally important? Communicating internally is a key element of managing change successfully in an organization. Implementing an EnMS involves organizational and cultural change as energy management is integrated into daily operations across the organization. How does communicating internally help employees and the EnMS? Internal communication helps the workforce stay abreast of energy management activities and the performance being achieved. This supports their continued awareness, buyin, and participation in the EnMS. It also reinforces understanding of their respective roles and responsibilities in the energy management commitments made by the organization as covered in their EnMS training. What's next? At this point in the implementation, some internal communication about the EnMS has been initiated. In Step 1.2.5, action was taken to create initial organizational awareness of the energy policy, and the decision was made to implement an EnMS. The energy objectives and targets were communicated in Steps 3.1.5. Now it is important to establish a process that will ensure that internal communications related to energy performance and the EnMS are carried out on an ongoing basis. For example, as progress on achieving the energy objectives and targets is tracked, that information can be posted on the communication board or bulletin board on a regular basis. What are some methods of internal communication? There are a variety of methods that can be used to communicate internally. These include postings, internal newsletters, intranet sites, screen savers, e-mails, meetings, closed-circuit television (CCTV) announcements, training, and suggestion or incentive systems, among others. Different methods may be used to communicate different EnMS topics or items to different audiences. What needs to be communicated? Keep in mind that communication, training and awareness are interacting processes that support and reinforce each other. There are a number of items that must be communicated internally. Some of these are spelled out in the ISO 50001 requirements for internal communication, while others are identified within the awareness requirements of the Standard. The latter may be included in EnMS awareness training or other energy management training conducted by the organization (see Step 5.4), while the former may be communicated separately using other methods, such as those discussed above. Topics and items that are required to be communicated internally include: energy policy the importance of energy management energy management responsibilities and authorities energy objectives energy performance of the organization other information about the EnMS, as appropriate

What's key to effective EnMS internal communication processes? First, communication has to actually take place. The management representative is responsible for ensuring that internal communications occur across all levels and functions of the organization Second, internal EnMS communications address relevant and appropriate topics. Again, it is the management representative who ensures that energy performance and the EnMS are part of energy-related communications. However, not all employees need the same information. This means that it is important to consider communication strategies and content that is appropriate for the intended audiences. For example, detailed data on energy performance may be communicated to top management in a management review meeting, while only summary information (usually in graphic form such as trend lines, pie charts, bar charts, etc.) is communicated to the workforce on communication boards located throughout the facility. Use the Internal EnMS Communications Planning Worksheet to help plan and implement internal communication processes for the EnMS. Third, the pathways of effective communication are multi-directional. EnMS communications are not intended to flow in just one direction, for example just from management or from the management representative to the work force (top-down). They include mechanisms that enable employees to communicate upward within the organization (bottom-up), as well as laterally across the levels of the organization. Fourth, communicating internally within the EnMS requires comment or suggestion systems to ensure that both employees and others working on behalf of the organization (such as contractors and suppliers who work on-site) can submit comments or suggest improvements to the EnMS. Effective suggestion systems ensure that there is some form of feedback on the comments and suggestions, even if some ideas are determined to not be feasible due to cost or technology considerations, for example. The The EnMS Suggestion Form can be useful in developing a comment and suggestion system. Some organizations implement incentives for participation in comment or suggestion systems. (Learn more.)


"Where are we heading?" Questions : Do you have any policies in place regarding communication with external parties? Have responsibilities and authorities for external communication been defined? Do you ensure that inquiries from external parties are responded to?

We already know that there are certain items that are communicated to contractors as part of ensuring awareness of personnel (see Step 5.4). However, there can be a variety of stakeholders and other interested parties who are concerned with the energy, environmental or sustainability management and performance of your organization. A key decision that must be made during EnMS implementation is whether and how the organization will communicate with outside (external) parties about their energy policy, energy management system and energy performance. Recognizing the growing public, customer and shareholder interest in sustainability performance and widespread organizational interest in demonstrating leadership in sustainability, many organizations decide to communicate proactively about their energy and environmental policies, goals and achievements. Other organizations decide to approach such external communications on a reactive basis, responding to inquiries or requests for information on a case-by-case basis, meaning that the requested information may or may not be provided. Regardless of what approach is taken, the decision on external communication about the energy policy, energy management system and energy performance must be recorded and a method implemented to manage those communications. In making the decision about whether to communicate externally about your energy policy, energy management system and energy performance, consider the following: Has your energy policy been integrated into another management system policy that is available to the public? If so, then a de facto decision on communicating your energy policy externally may be in place already. Are there applicable legal or regulatory requirements related to your energy use, energy consumption or energy efficiency that mandate reporting specific information or data to governmental or other regulatory authorities? If so, this is a type of external communication to be included in the EnMS, unless it is addressed under another management system within your organization. Are there voluntary or other (non-legal) energy requirements that your organization has subscribed to that require reporting of specific information or data to external parties, such as the local community or the administrator of the voluntary program? For example, many voluntary recognition programs

for energy, environmental or sustainability performance require the submission of an annual performance report. Are there corporate policies or policies of a parent organization that need to be taken into account in your organizations decision about EnMS related external communications? If so, ensure that they are given the appropriate consideration. To develop a method (or a plan) for proactive external communications, identify the target audiences and the goals of your communication. Then, determine what information is to be communicated, who will communicate it, what mechanisms or media will be used, how often the communication will occur and when it will start. The External Communications Planning Worksheet can facilitate the communication planning process. Planning for external communications, whether proactive or reactive, involves assigning responsibility and authority for responding to external communications from specific types of stakeholders or interested parties. For example, most often it is the regulatory compliance manager who is authorized to respond to inquiries or on-site visits from governmental regulators. The energy management representative is usually the person authorized to address inquiries about the organization's energy policy or significant energy uses. An Example Responsibility and Authority Matrix for Energy-Related External Communications is provided to illustrate how external communication responsibilities and authorities can be defined and documented. Some organizations may want to consider documenting a procedure for external communication that defines the process for how external communications are managed. Records of external communication can include, for example, an EnMS External Communications Log or an EnMS External Communication Record, among others.


Step 6 is the CHECK part of the PLAN-DO-CHECK-ACT continual improvement model of the energy management system. The system is regularly checked to ensure: it is meeting the requirements of the energy management system it is effectively managing energy and improving energy performance the energy management system activities are being conducted according to the plan CHECK is concerned with ensuring that appropriate monitoring and measurement activities are in place to evaluate whether the energy management system is operating in line with the energy policy and meeting planned objectives. The management system is regularly checked to determine how well it allows organizations to manage energy to meet these commitments. If policy commitments or objectives are not being met, plans are developed or modified so the organization can meet these commitments and continually improve energy performance. Determining energy performance starts with monitoring and measuring the key characteristics associated with the organizations energy use and consumption. Past and present data are collected and along with future estimates are analyzed to determine if the organization is meeting its current energy objectives as well as

planning for future energy goals and programs. Calibration systems must be in place to ensure that accurate data is collected for reliable analysis. The organization must also determine whether applicable legal or other requirements related to its energy uses are being met. Internal audits are conducted to evaluate both energy performance and the implementation and effectiveness of the energy management system. A preventive action program is established to avoid problems where possible. When problems do occur or the system is not proving effective, appropriate corrective actions are taken. Information from the audits, energy performance data analysis, and corrective and preventive action activities is collected for review by management to ensure the energy management system is adequate and effective. Management provides guidance through themanagement review for correction or improvement. The following steps will help establish the CHECK activities for establishing and verifying energy performance: Step Step Step Step Step Step 6.1 6.2 6.3 6.4 6.5 6.6 Monitor, measure and analyze key characteristics Calibrate monitoring and measuring equipment Evaluate legal and other compliance Plan and conduct internal audits Take action to correct and prevent nonconformities Check and use the evidence


"Where are we heading?" Questions : What key measures will provide information on energy performance? Do you maintain records of monitoring and measuring results? How do you plan for monitoring and measurement needs? Do you periodically review your measurement needs? How do you know if there are deviations in energy performance?

Key characteristics are specific variables that determine an organizations energy performance. These key characteristics of operations that determine energy performance are monitored, measured and analyzed regularly to confirm operation at peak efficiency, detect performance degradation and verify the effect of improvement activities. The Monitoring and Measurement of Key Characteristics Planning Worksheet helps identify the key characteristics and their monitoring and measurement requirements. AnExample Monitoring and Measurement of Key Characteristics Planning Worksheet is also provided.

Whats included in key characteristics?

Much of the data collected in Step 2 forms the basis of the key characteristics which include at a minimum: Significant energy uses (Step 2.3) Energy performance indicators (EnPIs) (Step 2.6) Energy sources and past and present energy use and consumption (Step 2.2) Variables associated with significant energy uses (Step 2.6.4) Action plan effectiveness (Step 3.2)

Actual versus expected energy consumption (Step 2.6.6) Future energy use of the significant energy uses (Step 2.3) Prioritized opportunities for improvement (Step 2.5)

A description of each key characteristic and the need for measuring, monitoring and analysis appears below. If this refresher is not needed, then skip directly to: Define and implement an energy measurement plan, Investigate and respond to significant deviations Make monitoring and measurement connections for significant energy uses

Significant energy uses Significant energy uses are an important focus of the EnMS because they have been identified by the organization as major energy users or areas with great potential for energy improvement. As major energy users, the significant energy uses will typically consume a large percentage of the organizations energy. Consequently, small changes in operations or deviations in procedures, equipment or maintenance can affect the organizations overall energy consumption. Regular monitoring and measurement will allow the organization to determine current performance, compare with past history and detect changes that can be addressed to restore effective operation and control energy use and consumption. Energy performance indicators (EnPIs) Energy performance indicators (EnPIs) are the measures of energy performance that have been defined by the organization. These indicators may be defined for equipment, process, department, production line, facility or other appropriate organizational component. EnPIs are vital items to monitor as they provide critical information about the performance of the entities for which they have been defined. Energy sources and past and present energy use and consumption Energy review outputs include the organizations energy sources, past and present energy consumption and use, and the current energy performance of facilities, equipment, systems, and processes associated with significant energy uses. These are components of the energy review that provide data for evaluating energy performance and consumption. Energy sources and past and present energy consumption at a facility level is generally available from regular monthly utility bills. Energy consumption and use data below the facility level e.g. systems and equipment is obtained through submetering, equipment instruments and portable analyzers. Energy performance is also measured with metering and analysis equipment. Variables associated with significant energy uses Variables associated with significant energy uses are those things that can have an effect on the consumption of energy associated with that significant energy use. Examples include line speeds, moisture levels, equipment efficiency, firing rate, etc. Accurate determination of relevant independent variables is an important contributor to the proper modeling and associated performance analysis. Consult with equipment manufacturers, operators, maintenance personnel, and review performance data and similar processes to determine the parameters that impact energy use and consumption. Analysis of the data collected for these variables provides important information about the performance of the significant energy use. Action plan effectiveness Action plans are developed to meet the objectives and targets associated with identified energy opportunities. The action plans are monitored, measured and

analyzed to ensure targets and objectives are being met effectively. The expected energy consumption associated with projects that are implemented to meet objectives and targets is compared to the actual results after project completion to determine if objectives and targets were met. Successful projects are analyzed for appropriate reproduction in other processes. Projects where targets are not met are analyzed to determine the reason(s) for the shortfall and appropriate follow-up is planned and implemented. The action plan can be analyzed during and/or after completion. Action plans that are not effective are modified as required. Actual versus expected energy consumption The organization monitors the actual energy consumption of processes, equipment, systems or facilities and compares that to the expected consumption. Expected consumption is the consumption that can be associated with past experience, project initiations, production plans and/or strategic initiatives and goals. The expectations can be based on detailed analysis of these and other issues or general estimates from past trends. Variances are analyzed and evaluated to identify elements that improve performance for possible duplication or isolate problems that should be addressed. This can be a component of the action plan evaluation. Future energy use of the significant energy uses Future energy use and consumption is estimated for the significant energy uses as part of the energy review (See Step 2.3). The organization determines the length of time considered to be future and monitors the assumptions or criteria used to estimate future energy use. Appropriate data is collected and analyzed and adjustments are made as required to maximize energy performance. Items to consider in estimating future energy use include equipment purchase plans, product changes, production plans, market conditions, fuel availability, improvement projects, etc. TheSEU Future Energy Estimate Worksheet provides items to consider and will help estimate future energy use and consumption. This Worksheet may have already been completed in Step 2.3.5. Prioritized opportunities for improvement Opportunities for improvement are another output of the energy review and can be identified by energy assessments, by data collected through monitoring and measurement activities or through various other methods (see Step 2.4). However identified, the opportunities are evaluated and prioritized based on criteria defined by the organization (see Step 2.5). The organization either pursues appropriate opportunities further with development of objectives, targets and action plans or removes them from the active list. Further monitoring or measurement may be required to collect data to verify the suitability of installation procedures, operating criteria and control and maintenance practices for the opportunity.

Define and implement an energy measurement plan

ISO 50001 requires an energy measurement plan. The energy measurement plan is developed to define, organize and document the monitoring and measurement activities. Each of the key characteristics is evaluated to determine the appropriate quality(s) that should be measured or monitored so appropriate data can be collected for analysis. Items to include in the plan will vary depending on the size and complexity of the organization and its monitoring and measuring equipment. Typically, the plan would include at a minimum: specification of the systems, processes or equipment to be monitored or measured, the frequency of data collection, collection method(s),description of the data analysis process, and calibration requirements (see Step 6.2).

Once the key characteristics and monitoring and measurement requirements are identified, theEnergy Measurement Plan Worksheet provides a guide to the details required to em sure adequate data collection for determining energy performance. This form is used for an overall look at the relevant key characteristics. More detailed information may be required for some equipment or systems and theEquipment Energy Measurement Plan can be used for additional detail. AnExample Equipment Energy Measurement Plan is also provided. In addition to defining its measurement needs, the organization must review them periodically. Changes to monitoring and measurement methods, equipment, procedures, personnel, and the like typically are implemented in response to changes in key characteristics (e.g. significant energy uses) or the need to meet other EnMS or energy performance requirements (e.g. new objectives, targets and action plans). The data collected by the monitoring and measurement activities is used to analyze energy performance and results of these activities are recorded.

Investigate and respond to significant deviations

The key characteristics determine energy performance and the data collected by monitoring and measurement of these attributes is used to identify significant deviations. The organization determines what will be considered a significant deviation but, in general, it is a departure from a level of energy performance that is acceptable, defined or expected. A deviation may be identified by a specific level of variation or can be evaluated by knowledgeable personnel to determine if it is significant and if action is required. Significant deviations can be an improvement as well as a decline in energy performance. Examples of methods for specifying significant deviations can include: Values outside of control limits Percent variation in value Trends identified Specified variation in EnPIs Level of variance between expected and actual performance Change in equipment efficiency Variation in specific variable performance Failure to meet objectives and targets Failure to meet a specific performance level

Significant deviations must be investigated and an appropriate response developed. The investigation addresses normal operation, as well as evaluation of energy use and consumption expected as the result of process changes or implementation of improvement opportunities. Significant deviations that result in improved energy performance can be analyzed for actions to be replicated in other energy systems. The organization determines if significant deviations will be handled through the corrective action system (see Step 6.5) or investigated through another process. Results of investigation and the response(s) need to be recorded.

Make monitoring and measurement connections for significant energy uses

The Significant Energy Uses Control Chart introduced in Step 2.3.4 and then again in Step 5.2 is intended as a concise roadmap to the organizations management of

its significant energy uses. It is designed to capture the connections between each significant energy use and the associated operational controls, training, monitoring and measurement, and calibration required by ISO 50001. Column 6 of that chart can be used to record information or references to the monitoring and measurement that is put in place to track key characteristics of the significant energy uses. AnExample Significant Energy Uses Control Chart is available here.


"Where are we heading?" Questions : What monitoring and measuring equipment is calibrated? What calibration records are maintained? Do you have records for calibration(s) that are outsourced?

In an ISO 50001 EnMS, the equipment used to monitor and measure data associated with key characteristics (see Step 6.1) must provide data that are both accurate and repeatable. Accuracy and repeatability are necessary to validate performance and verify the results of improvement implementations. A calibration program provides the means to ensure monitoring and measuring equipment is properly maintained to provide accurate data. Basic components of a calibration process include: Identification of equipment to be calibrated Specify the calibration method Establish calibration tolerance and frequency Responsibilities for calibration personnel Documentation of calibration

Identification of equipment to be calibrated The first step in a comprehensive calibration program is to identify the equipment to be calibrated. For ISO 50001, the focus is calibration of equipment needed to monitor and measure the key characteristics of operations that determine energy performance. Review the key characteristics and the monitoring and measurement equipment identified in Step 6.1and identify the equipment that requires calibration. This can be recorded on the forms that are discussed in the last section below. However, also consider there may be other devices for which calibration would be beneficial. This could be equipment or processes that have not been identified as a key characteristic but that could affect energy performance or equipment operation. Specify the calibration method Specifying the calibration method involves determining the appropriate document, procedure, standard or other similar reference that will be used to define the calibration process. Calibration can vary from a complicated process using multiple documents with defined procedures and tests to a simple comparison with a standard calibrated reference. Trade associations, equipment manufacturers or metrology labs may be sources of assistance for determining the appropriate calibration reference. Identify the appropriate reference(s) or standard(s) that would specify requirements related to items such as calibration frequency (discussed below), methods, traceability and personnel qualifications. This step is associated with

determining the details of the calibration process. The information identified for this process may also provide guidance with respect to tolerances. Establish calibration tolerance and frequency The calibration tolerance is the permissible deviation from a specified value. The tolerances are specified to ensure the equipment is calibrated to the required accuracy within acceptable limits. There are several factors to consider when establishing the tolerances: Equipment capability The monitoring or measurement equipment must have the capability to measure within the required accuracy. Equipment cannot be calibrated to a tolerance for which it is not capable of measuring. Process or product requirements Customer requirements, subassembly requirements or final use can dictate the tolerances required. Manufacturer's specifications Manufacturers can specify tolerances for equipment used in the organizations processes. Again, the equipment must have the capability to measure within the required accuracy. Standards/regulatory Tolerances may be dictated by standards associated with the product or as required by regulatory agencies. Hand in hand with the tolerance is the frequency of calibration. While the manufacturer's recommendations are one source for information on calibration frequency, the purpose and usage of the equipment must also be considered. Harsh environments and measurements that have a very close tolerance may require more frequent calibration. The equipment history is important also. Monitoring and measuring equipment with a history of losing accuracy may require more frequent calibrations. Such equipment should also be recalibrated when there is reason to doubt the equipments accuracy. Once tolerances and calibration frequencies have been established, check the calibration regularly. Change or modify the methods, schedule or equipment as required to satisfy tolerance requirements. Responsibilities for calibration personnel Responsibilities for personnel in charge of the calibration process need to be defined. To ensure equipment is properly calibrated and will provide accurate data consider: Who will do the calibration? Will this be done in-house or contracted? If done in-house is the expertise, equipment and necessary documentation available? If contracted can one contractor calibrate all equipment? Are there relevant legal requirements? Who will maintain calibration records? Will this be done in-house or contracted? What records will be maintained and in what form? What record access is required? Who will maintain and use the equipment? Will training be required? Are there calibration requirements associated with maintenance? Can operators make adjustments? What do operators need to know about calibration?

Who will be responsible for ensuring calibration is conducted? Who will maintain or be responsible for regular review of calibration schedules? Who will ensure equipment is available for timely calibration?

Who will verify proper calibration? Will this be done in-house or contracted? What is required to verify calibration? Are the resources available or is equipment or personnel training required?

Documentation of calibration Accurate documentation is maintained to verify the calibration status of the monitoring and measurement equipment and provide guidance on the calibration needs and responsibilities. ACalibration Plan can be used to list the monitoring and measuring equipment that requires calibration and describe the method, calibration personnel, frequency and basic equipment information. TheCalibration Record can be used to document the results of equipment calibration. Both the Calibration Plan and the Calibration Record can accommodate calibration information on several pieces of monitoring and measuring equipment. The Equipment Calibration Record provides a continuous record that combines information similar to the Calibration Plan and Calibration Record but is used for only one piece of monitoring and measurement equipment. It shows the history of the equipment which is useful for analyzing trends and indicating when equipment needs to be replaced. The Significant Energy Uses Control Chart can be updated to include the equipment to be calibrated (Column 7) and the calibration records to be kept (Column 8). AnExample Significant Energy Uses Control Chart is provided. This completed form, first introduced inStep 2.3.4, and used again in Step 5.2.2 and Step 6.1, provides a concise and useful roadmap to the organizations management of its significant energy uses. An additional consideration for recording and communicating calibration status is an indicator of the calibration status on the equipment itself. This approach is used by many organizations. The calibration status indicator could be in the form of a sticker, label, or tag. Information on the tag typically includes: Equipment name Date of calibration Next calibration due date Calibrator's initials or verification

If the organization decides to outsource calibration services, much of the calibration process can be placed in the hands of the calibration contractor. However, whether conducted internally or performed by a contractor, records must be maintained and responsibilities defined to ensure calibrations are kept current and evidence of current calibration is readily available.


"Where are we heading?" Questions : What processes are in place to evaluate your compliance with legal and regulatory requirements? How often are evaluations of legal and regulatory compliance conducted? What processes are in place to evaluate compliance with other (non -legal) energy related requirements that are subscribed to by your organization?

Step 6.3 involves conducting the evaluations of compliance that were planned for inStep 2.1.4. This is a good time to revisit that planning to ensure that it included defining and communicating roles, responsibilities and authorities and that the intervals for conducting such evaluations have been determined. The purpose of evaluating compliance with the applicable legal and other requirements related to your energy use and consumption is to ensure that you are meeting those requirements. The evaluations identify actual or potential problems so appropriate corrective or preventive actions can be taken (see Step 6.5). Consider either developing or obtaining checklist tools to assist in the compliance evaluation process. Checklists for auditing legal requirements (particularly for federal regulations) are often available either commercially or on the Internet. Customized checklists can be created by taking each requirement and developing questions than can be asked to determine whether that requirement is being met. TheGeneric Compliance Evaluation Checklist Format may be useful as a starting point for developing your own customized checklist(s). Where legal and other requirements are not being met (non-compliances), corrective action is taken to eliminate the problem. Sometimes there may be a situation where there is no evidence of non-compliance, but there are indications that a potential problem could arise based on current conditions. In this case you may want to consider initiating preventive action to further investigate the issue and take any needed actions. See Step 6.5 for further information on corrective action and preventive action. The results of the compliance evaluations must be recorded and maintained. How the results of the evaluations are recorded and maintained, including the format and level of detail, is up to the organization. The results of these evaluations must be reviewed by top management as part of the management review process (see Step 7).


"Where are we heading?" Questions : What resources are available to assess the status of the system? Who in your organization has experience with internal auditing? Who provides training on internal management system auditing? What personnel should be included in the EnMS internal auditor pool? How are or would the results of internal audits be reported to top management?

An internal audit is a systematic, independent and documented process for collecting and objectively evaluating evidence to determine whether a set of requirements is being met. In this case, the requirements involved are the organizations requirements for its energy management system. (For those

implementing an ISO 50001 EnMS, the requirements also include those of the ISO 50001 standard.) The internal audit process needs to be systematic, independent and documented. (See Step 1.4 for a discussion about documenting the internal audit process.) The purpose of this narrative is to provide an overview of the basics of an internal audit program. More detailed information about internal auditing is presented inIntroduction to Internal Auditing Concepts. However, if your organization does not already have an internal audit program in place for other management systems (such as quality, environmental, safety and health, etc.), then it is strongly recommended that you attend an internal auditing training course to learn how to manage and conduct internal audits. If your organization does have an internal audit program in place for another management system, then you will want to leverage those existing processes and access the available in-house internal auditing expertise. Internal auditing is a critical element of the management system. It is the primary process used by the organization to check on whether the energy management system: meets the requirements and arrangements that the organization has established for its energy management system, is effectively implemented and maintained, conforms to the energy objectives and targets, and results in energy performance improvement.

In other words, internal audits of the energy management system evaluate both energy performance and the implementation and effectiveness of the management system. EnMS internal audits assess both: energy performance, and management system processes.

Internal audits help identify both areas of success and areas in need of improvement. Internal audits determine if the organization is: doing what it says it will do, continually improving its energy management system, and achieving energy performance improvement.

The energy management representative is often responsible for the internal audit program, but some organizations may have an internal audit program manager. Internal audits are planned Internal audits are to be conducted at planned intervals. They are not surprise activities. The person responsible for the internal audit program prepares an internal audit schedule that:

addresses auditing both energy performance and the management system, and considers the status and importance of the areas and processes as well as results of previous audits. The internal audit schedule often covers an annual period, but may be for shorter or longer periods. Often organizations conduct internal audits of their entire system during the first year of implementation. After that, they have audit results to supplement their consideration of status and importance and many organizations will schedule internal audits so as to audit their entire system within a different timeframe, for example, within an 18-month period or a three year period. Some organizations may decide to conduct their internal audits of energy performance separately from internal audits of the management system. Since development of the audit schedule must consider the status and importance of processes and areas, attention is typically given to processes and areas associated with the organization's significant energy uses, energy objectives, targets and action plans, operational and maintenance controls and activities related to sustaining energy improvements over time. Example of Status and Importance in Audit Schedule Development An organization implements a steam trap program as part of an action plan to reduce energy losses. The internal audit schedule indicates that the steam trap program will be audited twice within the timeframe covered by the audit schedule. The first internal audit will assess whether initial implementation of the steam trap program has been accomplished. Later in the audit schedule, the steam trap program will be re-audited to ensure that the routine inspections of the steam traps are being conducted and that the program is effective in reducing steam losses.

Once the organization has conducted internal audits, adjustments to the audit schedule may be needed based on the results of those audits. Example of Adjustments to an Audit Schedule An organizations annual internal audit schedule indicates two internal audits of a specific significant energy use (e.g. compressed air use in the production area) in 2011. If, when the internal audits of that significant energy use are conducted, no nonconformities are identified, then the 2012 internal audit schedule may be modified to include only one internal audit of that particular significant energy use. On the other hand, if the internal audits of that significant energy use reveal a consistent lack of conformance with the organizations requirements, then the internal audit schedule may be revised to include additional audits of that significant energy use.

Examples of other criteria that can be useful in deciding whether additional internal audits are needed include: new management initiatives, organizational changes, customer issues, process changes, EnPIs not being met, and

new or revised energy objectives or targets.

The internal audit schedule typically identifies the processes and areas to be audited and the planned audit date(s). An Internal Audit Schedule Template and an Example Internal Audit Schedule are provided for your use. Internal audit plan An internal audit plan or agenda is to be prepared for each internal audit. Typically, this plan is prepared by the internal audit program manager or by a lead auditor or audit team leader. It often includes the following basic information: Date of the audit Objective(s) of the audit Processes/area(s) to be audited Auditor(s) responsible for auditing each process/area Timing Requirements and references Examples of typical audit objectives are to evaluate: conformity with the requirements of the EnMS, conformity with the established energy objectives and targets, implementation and effectiveness of the EnMS, and energy performance improvement.

Examples of processes to be audited include those associated with: Significant energy uses Energy objectives Targets and action plans Operational and maintenance controls Management responsibility

The Internal Audit Plan Template and Example Internal Audit Plan can help you develop an audit plan. Conducting internal audits Internal audits are conducted by personnel who have been trained in internal auditing for management systems. The audits may be conducted by a single individual or by a team. In either case, the person(s) conducting the internal audit needs to be objective and impartial, and they should not audit their own work.

Both the selection of auditors and how the audits are conducted need to

demonstrate that the audit process is objective and impartial.

During an internal audit, auditors interview personnel, observe activities, review documents, and examine records and data in an effort to determine the organization's energy performance, as well as conformity with its EnMS requirements. Internal auditors evaluate evidence (facts) and record both positive and negative outcomes (i.e. findings). Internal audit results The results of internal audits, both positive and negative, are to be recorded and communicated to top management. The reporting of audit results to top management is part of the management review process (see Step 7). Corrective and preventive action on the audit findings should be taken in a timely manner. Reminder: The full details of managing, planning and conducting internal audits can be obtained through internal audit training. This training may be internal if the organization already has experienced internal auditors or it may be obtained through an external course provider.


"Where are we heading?" Questions : What problem solving systems are in place that could be leveraged? How do you ensure that actions to solve problems are appropriate? Do you monitor data trends that can reveal actual or potential problems?

In the energy management system, it is necessary that your organization identify and address both existing and potential nonconformities. An existing nonconformity is a situation where a requirement is not met. A potential nonconformity is a situation where, if action is not taken, a nonconformity will potentially occur in the future. You want to eliminate a potential nonconformity before it occurs.

A nonconformity is a situation where a requirement is not met. An example of an existing nonconformity: EnMS Procedure #3 Energy Planning dated 3/15/2011 states that the energy review shall consider all energy sources. The 2011 energy review did not include consideration of propane, a major energy source used by the organization. An example of a potential nonconformity: The organization has established an objective to reduce the amount of energy used by the compressed air system by 5% by the end of 3rd quarter of the year. It is the middle of the 2nd quarter and measuring and monitoring data show that there has been no decrease in the amount of energy used by the compressed air system. It appears that if no action is taken, the objective will not be met. A nonconformity generally means that: the organization is not doing what it said it would do, what is being done is not working,

requirements are not being met, or the intended energy performance improvement is not being obtained.

Initially, most energy management system nonconformities (actual and potential) are identified during internal audits or monitoring and measurement activities. As the system matures, nonconformities may be identified by the people doing the work. This should be encouraged. People doing the work are often in the best position to see problems and suggest solutions. When a nonconformity is detected, the first step is to take appropriate action to resolve the immediate situation. For example, in the case where an oven is operating at a temperature higher than the correct temperature because the weather is hotter today, the immediate action taken is to decrease the natural gas flow to the oven. This is called correction. The next step is to determine the magnitude of the nonconformity and its impact on energy performance. Generally, this involves consideration of the extent of the nonconformity and its actual and potential effects, for example, on the: energy objectives, targets and action plans, significant energy uses, existing or planned operational ormaintenance controls, or other energy sources or energy uses within the organization.

Based on this information, a decision is made as to whether action should be taken to ensure the situation is prevented from recurring (corrective action) or prevented from occurring in the future (preventive action). If so, the nonconformity is entered into the organizations corrective action system. Once entered into the corrective and preventive action system (for an example, see theCorrective Action/Preventive Action Request (CAR/PAR) Form), the nonconformity is reviewed to determine its cause and determine if action is indeed necessary. The organization then decides on and implements an appropriate course of action to eliminate the cause of the actual or potential nonconformity. Example: Suppose a plant has a compressed air system which is a large user of energy. The plant has a procedure that states that the system operating pressure set point shall be 105 psig. The plant was found operating their compressor plant at 115 psig. Correction Change operating pressure back to 105 psig if no negative effect on production can be determined. Evaluate magnitude and impact of nonconformity Enter into corrective action system if appropriate. Cause Determine how and why the operating pressure was changed. Corrective Action Take action to eliminate the cause. Follow Up Make any other changes to the EnMS needed as a result of the corrective or preventive action. Review the action taken and determine if the solution was effective. Maintain records.

Sometimes the corrective or preventive actions that are taken to eliminate problems result in the need to make other adjustments or changes to the EnMs. For example, if existing operational controls were modified as part of implementing a corrective action, then there may be a need to modify the associated EnMS documentation. The actions taken need to be appropriate to the extent of the problem and its impact on energy performance. Dont spend $100 on a $10 problem and vice-versa. Once identified, a best practice in many organizations is determining whether the same corrective or preventive action is needed elsewhere, perhaps in another process, area or facility. A system-wide approach to problem identification and resolution such as this helps further a culture of proactive continual improvement. For most organizations, over time, this results in fewer nonconformities and negative audit findings. After the appropriate action is taken, a review is performed to determine if the action taken was effective. In other words, did the action taken eliminate the cause and result in the nonconformity not occurring or recurring? In some situations, it may be necessary to let a reasonable interval of time pass after the solution is implemented before the review for effectiveness is performed. Sometimes a solution needs time to work before its effectiveness can be fully evaluated. In summary: Correct the current situation Determine the magnitude and impact of the nonconformity Determine the cause of the nonconformity Determine if action is needed Determine the appropriate action to be taken Take action Review the effectiveness of the action taken Maintain records of corrective and preventative actions taken

A Corrective Action/Preventive Action Request (CAR/PAR) Form, along with aCAR/PAR Tracking Log are commonly used to record and track the status of corrective and preventive actions. An Example CAR/PAR Tracking Log illustrates how a log sheet may be used to track actions to completion. Such log sheets can be particularly useful when it is time to compile data and other information on the status of corrective and preventive actions for management review. Often it is the management representative who is assigned responsibility for managing the corrective and preventive action system. In the case of an integrated management system, oversight of the corrective and preventive action system for both energy and environmental issues may be assigned to the Environmental Manager. In other organizations, it is the Quality Manager who oversees the corrective and preventive action system for all quality, environmental and energy issues. If available, consider using (or at least harvesting from) processes already in place for corrective and preventive action, making any changes needed to accommodate the EnMS and ISO 50001 requirements.


"Where are we heading?" Questions : What evidence do you have for activities performed and results achieved? How do you use records of activities and results to confirm that processes and systems are functioning properly?

As discussed in Step 1.4 and Step 5.1, records provide evidence of activities performed and results achieved. The organization must maintain records to demonstrate that its EnMS meets both the organizations requi rements and the requirements of the ISO 50001 standard. Records that demonstrate the energy performance results of the organization are also required. It is important to know that checking and using the evidence from your energy management system necessarily involves your EnMS records. The purpose of this Step is to help you understand how to check and use the evidence from your system to demonstrate: the implementation of the system (you are doing what you say), and the effectiveness of the system in generating the intended results (what you are doing is working). First, check implementation of the planning (PLAN) process using your records: In Step 1.2.2, a management representative was appointed. A record of the appointment demonstrates the implementation of responsibilities and top management commitment. In Step 1.2.4, the energy policy was defined. A record of approval of this policy demonstrates both management commitment and organizational commitment. In Step 2.1, applicable legal and other requirements related to the organizations energy use, consumption and efficiency are identified, evaluated and tracked. In this case it is likely that more than one record is involved. There may be one record for identification and tracking, and another record for the evaluation of how these requirements apply to energy in your organization. There may be additional records for tracking, as well as for the evaluation, depending on how the system was established. In Step 2.2, energy sources as well as past and present energy data were identified. These may be electronic records and would demonstrate that the system for energy data is implemented. It also demonstrates the ability of the system to manage data. In Step 2.3, significant energy uses were identified. Records of this demonstrate the implementation of criteria for significance and use of the energy data.

In Step 2.4 and Step 2.5, energy opportunities were determined and prioritized. A record of these demonstrates implementation of an understanding of energy data, energy opportunities and organizational needs.

In Step 2.6, an energy baseline(s) was established. A record of the baseline(s) provides clear evidence of an understanding of energy data and the comparison points needed to effectively demonstrate energy performance improvement. Additionally in Step 2.6, EnPIs were established. Records of these indicate an understanding of facilities, systems, processes and equipment that affect energy use, consumption and performance of the EnMS.

In Step 3.1 and Step 3.2, objectives, targets, and action plans were established. Records of these demonstrate the intent and implementation of continual improvement activities.

Taking all of these records together is a way to review and evaluate the effectiveness of the planning process. Examples of how you can view the records together: Overall, the records show that all the energy sources within the scope of the EnMS are accounted for within the energy planning process. In addition, they demonstrate that energy use and consumption are clearly understood, data on energy consumption is available, and that the evaluation of energy opportunities has been performed in a clear and systematic fashion with related improvement objectives established. Also, the data for energy review, the baseline(s), the list of opportunities, and the significant energy uses taken together show a great understanding of the processes and use of energy within the organization. In addition, the data for energy review and the objectives and targets taken together indicate an ability to manage data on an on-going basis and to use it to make data driven decisions. Finally, the review of energy review data, the baseline(s), and the EnPIs taken together indicates a clear understanding of how to manage processes using data. Now, check establishment of the EnMS implementation and operation (DO) processes using your records: In Step 5.1, processes for managing and controlling information were defined and implemented. Related records could include revision history tables for specific documents, signatures or emails of document approval, updates to forms, document distribution lists and others. Such records help you ensure that the management of information is effective and provides opportunities for communication with the workforce.

In Step 5.2, operational and maintenance controls were determined and implemented. The records generated from this process could include maintenance databases, equipment logs, equipment down time logs, production records, equipment settings, operation hours, and personnel assignments. Review of these types of records confirms that operational and maintenance activities related to significant energy uses are being performed properly.

In Step 5.3 and Step 5.4, competence, training and awareness were determined. Together, these processes generate one of the most valuable resources an organization can have competent staff. It also helps open communication with contractors and temporary staff. Reviewing the records on competency and training or other actions taken allows a review of this process.

In Step 5.5 and Step 5.6, the procurement process was discussed. Records related to the procurement process may include such items as purchasing specifications, email communications with suppliers or service providers, calculations of expected operating lifetimes for equipment or products, and evaluations of options for other sources or technologies. These types of records help demonstrate management of the significant energy uses and communication with suppliers about energy requirements.

In Step 5.7, recording the results of design activities was addressed. This allows the organization to demonstrate innovation and planned improvement of energy performance in activities involving new or modified facilities, equipment and processes.

In Step 5.8, ongoing internal communications about energy were initiated. A review of associated records is a means to review this process and how well it is working for the organization.

In Step 5.9, external communication was discussed. The records from Step 5.9 focus on the decisions related to external communication about the policy, energy performance and energy management system. The external communication related to suppliers and service providers was discussed in Step 5.4. These communication records help to ensure the lines of communication to those who can help us manage our energy and be successful.

Taking all of these records together is a way to review and evaluate the effectiveness of the EnMS implementation and operation processes. Examples of how you can view the records together:

The energy use and consumption data combined with the operational control and maintenance data and the training records indicate who is qualified within the organization to manage and control energy use and consumption.

The energy action plans in combination with the training, procurement and design records demonstrate planned energy performance improvements. The opportunities, design, procurement and communication information taken together demonstrates the intent to improve as well as innovation and energy considerations in long term planning.

Next, check implementation of the EnMS checking (CHECK) pr ocesses using your records: In Step 5.1, controls for EnMS records were defined and implemented. Managing records effectively demonstrates what the organization does, how it works, and why the organization is successful in managing energy and improving energy performance. In Step 6.1 and Step 6.2, measuring and monitoring and calibration processes were discussed. A lot of records are generated from these processes. These include calibration records, monitoring and measurement data for key characteristics including EnPIs, significant energy uses, variables that affect energy use, future energy use, opportunities, effectiveness of energy action plans, and actual vs expected energy consumption. These records enable monitoring and evaluation of the organizations energy p erformance. Step 6.3 addressed the evaluation of legal and other requirements. This set of records provides an excellent opportunity to demonstrate the organizations intent to meet both mandatory (i.e. legal) and voluntary (i.e. other agreed to) energy-related requirements. A review of this system for trends and issues not only reflects the importance of ongoing compliance to the organization, but also the clear intent to manage and maintain the needed information. In Step 6.4, the internal audit process was implemented. The records from this process may include, but are not limited to, training records for internal auditors, audit results, audit schedules and audit plans. Such records help to demonstrate internal review of the system and how well it is working, along with the ongoing commitment of top management to provide resources (especially personnel time) for the internal audit program. In Step 6.5, the find-and-fix system addressing nonconformities, corrective and preventive actions was established. The records from this process may include, but are not limited to, nonconformities, trended data and information, and corrective and preventive actions. This helps to demonstrate the organizations problem identification and problem -solving capabilities, and its

intent to review and manage the improvement of the energy management processes. Taking all of these records together is a way to review and evaluate the effectiveness of the checking processes. Examples of how you can view the records together: The energy use and consumption data combined with operational and maintenance controls and the monitoring, measurement and analysis information demonstrates control of the significant energy uses. The energy use and consumption data, energy management action plans, EnPIs, and baseline data, in combination with the monitoring and measurement data, data on the effectiveness of the action plans, and actual versus expected energy consumption demonstrate the organizations energy performance. The monitoring, measurement and analysis records, combined with the corrective and preventive actions demonstrate that major deviations in energy performance are addressed. The internal audit and evaluation of compliance records, combined with the corrective and preventive action records demonstrate the intent to comply with applicable legal and other requirements and to manage and improve the EnMS and energy performance. Finally, check implementation of the management review (ACT) process to sustain and improve the system using your records: In Step 7.1 and Step 7.2, key information for management was collected and a process established for top management review of energy performance and the EnMS. This process involves reviewing a lot of information that is available from your EnMS records. Management review clearly enables the organization to evaluate and address what is working, what needs to be improved, where the resources are currently focused, upcoming changes that may require adjustments in resource allocations. It helps to ensure that the direction of the EnMS is aligned with the priorities of the organization. The records of management review support and demonstrate this process. Taking all of these records together is a way to review and evaluate the effectiveness and continual improvement of both the management system and the energy performance of the organization.


Improved energy management and energy performance is the focus of an ISO 50001 energy management system. Therefore, the organization must have a process to periodically review and evaluate its energy performance and the energy management system to identify opportunities for their improvement. The process of reviewing, evaluating, and then taking appropriate actions to improve the EnMS and ensure energy performance improvement is the ACT part of the PLAN-DO-CHECK-ACT continual improvement cycle upon which ISO 50001 is based. The review and evaluation is conducted in the form of management review. Management review is the responsibility of top management. Based on data and other information presented during the review, management makes decisions regarding any needed changes. The decisions made during management review lead to actions which ensure the systems ongoing adequacy, suitability and effectiveness, as well as the continual improvement of both energy performance and the EnMS. The following Steps will help ensure appropriate information is collected; the information is presented in a way that is meaningful to management and conducive to decision-making; that management makes decisions related to improvements in energy performance and the EnMS; and that actions required by the decisions are implemented. 7.1 Collect information for management review 7.2 Conduct management reviews 7.3 Ensure continual improvement


"Where are we heading?" Questions : Where is data and information on the energy performance of the organization? What planned improvements in the system have been achieved? What is the status of other planned energy performance improvements?

What is management review? The purpose of management review is to ensure the ongoing suitability, adequacy and effectiveness of the EnMS. Management review involves fact based decisionmaking by top management related to continual improvement of the organizations EnMS and energy performance. This is accomplished by analyzing specific information (inputs) about the system and its performance. A systematic approach to gathering and summarizing the necessary information on a routine basis is the focus of Step 7.1. The first step is to determine what information needs to be collected: Typically, the management representative ensures that the appropriate information is collected, organized and presented in a way that enables management to make informed decisions. But what information needs to be provided to management and where is it?

One way of determining what information needs to be collected is to start with the end in mind. That means looking at the types of decisions and actions that will result from the management review. Once the types of decisions that need to be made and the actions that will result are understood, look at the information generated by the system and determine the data that will help management address these decisions and actions. Typical decisions to be made are: What is the status of the energy management system? What strategic changes or modifications are needed (e.g., a policy change), if any? What changes are needed, expected or have resulted in terms of energy performance? Are there any changes in external requirements that will affect the energy management system? Are there any changes internally that will affect the energy management system? Do the current measures (e.g., EnPIs) provide the correct information? Is there a need to change, add, or delete any current improvement objective? What resources are needed for the energy management system? Is the energy management system suitable (appropriate) for the organization? Is the energy management system effective (generating the intended results)? Is the energy management system achieving continual improvement in energy performance? The inputs needed by management in order to make these decisions include: Energy policy Objectives, targets and action plans EnPIs and past, current and projected energy performance data Significant energy uses and their performance and any changes Evaluations of compliance to legal requirements and any changes Evaluations of compliance to other energy related requirements and any changes Changes in stakeholder expectations Internal EnMS audits Design Planned changes Procurement Planned changes Status of correction, corrective, and preventive actions Recommendations and opportunities for improvement Action items from previous management reviews

This information is available through the components of the EnMS. In other words, the information needed for management review is generated by the systems and processes of the EnMS itself. For example, energy review, baseline and EnPI processes (Step 2.2, Step 2.3, Step 2.4, Step 2.5 and Step 2.6) and the monitoring, measurements and analysis processes (Step 6.1 and Step 6.2) generate data on the status and performance of the organizations energy uses. The management representative must determine the appropriate data to include based on the outputs of the previous management review, the activities that have occurred since the last management review and the usefulness of the data for management decision-making in the upcoming management review. For example, data on the effectiveness of an action plan for a recently implemented steam trap program would not be included until after the information was available to show that the action plan had been fully implemented and that its effectiveness was evaluated. On the other hand, there may be interim data collection steps that provide information on the progress of meeting the objectives and targets associated with the action plan. Second, determine who has the information: A system is not a single person, so it is unreasonable to think that all the data and information needed for decision making comes from one person. The next step is to know who has the information that has been identified as necessary for the management review. Since the management representative is responsible for defining responsibilities and authorities throughout the EnMS, this should be a simple undertaking. For example, the results of the evaluation of compliance with legal and other requirements may be assigned to the Environmental Manager. The EnPIs may be assigned to a project engineer. The management representative will need to collect each type of information identified for use in the management review from the appropriate organizational contact or assign responsibility for doing so. The Management Review Preparation Form is a tool that can be used to help the management representative identify the decisions or activities to be addressed, identify the information or data needed and assign responsibility for collecting the data. In most cases, the personnel assigned responsibilities for that data or that component of the system during implementation (e.g., Step 2.2.3) will be responsible for collecting and preparing (or submitting) that information for management review. Make sure that these assignments for the purposes of management review are communicated to the responsible personnel. Third, collect data and organize for presentation: The management representative collects the data in accordance with the assignments and organizes it for the presentation. The extent of the management review will dictate the data to be collected and how it is organized. If the management review is to address the full scope of the EnMS, then the presentation is arranged so all components of the EnMS and the appropriate connections are presented in a logical manner. If the management review is only to address a few EnMS components the presentation will focus on those areas and any appropriate connections. Fourth, determine the best visual method to communicate the information: The information should give the big picture but be detailed enough to allow management to make fact based decisions about actions that need to be taken. Often the management representative prepares the data in the format to be presented in management review, but the keeper of the information should prepare the presentation materials when practical.

Presentations may be of any format but should present the data in a concise manner and in such a way that the data is easily understood. For example, rather than displaying a table of data, show the data in a line graph so that trends and irregularities can be easily illustrated. Provide process diagrams or pictures rather than trying to provide a verbal description. The information can be provided in a report, on an overhead projector, on a computer screen, via computer presentation software and a projector, etc. The size of the audience, room logistics and the need for hard copies are some of the considerations for determining the presentation method. There is much information about presentation methods available by simply doing a web search. Fifth, prepare the information and circulate it to top management and the energy team: Prepare the information in accordance with the appropriate format. Depending on their requirements, the information or a summary may be circulated to top management prior to the meeting for their review or they may wait until the meeting. Regardless of managements desires, the information should be provided before the meeting to the energy team and/or those that will be participating in the presentation. This will allow them to become familiar with the information to be presented and be prepared to provide feedback to management on their parts of the EnMS. An example of the information collected by the management representative is provided through the given link. This information would provide the basis for preparation of a summary presentation for management. The management representative may decide to use graphic representations or other summaries of the data in the presentation, but have the source data available as a back-up in case it was needed during the review.


"Where are we heading?" Questions : Are there operational and other management meetings in place that could be used for management review? Who needs to be involved in reviewing the performance of the EnMS?

The information to be collected for management review, who can provide that information, how it will be organized, and how it will be presented have been determined. Next, develop the process for conducting management reviews. Who should be included in the management review? The people participating in management review are based on: who needs information, who can take action, and who can provide resources needed for any necessary actions.

In short, that means who the organization has defined as top management and the management representative. The EnMS could define that a quorum is required to conduct the management review or specify a minimum attendance by certain positions or functions. If a quorum cannot be obtained or the required positions are not represented, the review would be rescheduled or conducted through an alternative mechanism (see How do we conduct a management review? below). How often do we need to conduct management reviews? Management reviews must be conducted at planned intervals; however, the frequency depends on the organization. When there are changes or a large number

of action plans or capital projects related to the EnMS underway, then an additional management review may be needed. More frequent management reviews allow for quicker responses to issues and opportunities, while conducting a review annually serves as a review of the year. There is no prescribed or required frequency as long as the review is effective. How do we conduct a management review? The means for accomplishing a management review is determined by the organization and is dictated by its needs. For example, management reviews could be conducted in person or through teleconferences, e-mails exchanges, electronic meetings, or other forms of electronic reviews. The method or media used for the review is not what is important and there is no requirement for a face-to-face meeting. Management review also does not have to be done as a single review; it can be a series of partial reviews. However, the partial reviews should result in a complete review of the entire EnMS over a specific period of time. Twelve months is the typical length of time within which the entire management system is reviewed. It is not important or necessary to discuss every single issue, corrective action, or small detail. The review should be conducted from a high level, not a detailed view. It helps ensure alignment between the system's objectives and the organizational business priorities. To conduct an effective review, the management representative should follow some basic rules: Select the participants to reflect the intended outcome of the review. At a minimum, top management needs to attend. Anyone else who may be necessary to provide additional explanations or justify specific requests also participates. Develop an agenda for the management review to ensure that all of the necessary inputs are addressed, time expectations are clear, and the objectives are achieved. Open the review by starting on time, welcoming the participants and reviewing the agenda, review objectives and the management representatives role in the review as facilitator. Establish ground rules for the review or remind participants of the ground rules. Typical ground rules are to respect each participant, participate through active listening and positive contributions, maintain confidentiality of the information, keep a parking lot list for items that need to be addressed offline and understand what constitutes consensus. Close the review by reviewing the decisions and action items, ensuring responsibilities are understood, thanking participants for their time, reminding them of the next meeting and informing them of when they will receive the notes from the review. A record of management review must be maintained. The format of the record is not important, but the record should include an indication of who attended, what topics were covered, any decisions or actions to be taken and any assignments made during the meeting. There are two different templates provided for

consideration. The Management Review Report Format or theManagement Review Record Form may be used as a record of management review.


"Where are we heading?" Questions : In stepping back and reviewing the lessons and progress to date, are there other improvements to make before beginning the Plan-Do-Check-Act cycle again? How do you follow through on improvement action items?

The decisions made during management review lead to actions which ensure continual improvement of both energy performance and the energy management system. For every decision, the organization needs to determine what actions need to be taken, who is responsible for the actions and when the actions are to be completed. These decisions and related actions effectively start the Plan-Do-Check-Act continual improvement cycle over. This is a good time to return to several prior Steps and review the criteria for significant energy uses (Step 2.3.3), prioritization factors for opportunities (Step 2.5.3) and the data being collected on the key characteristics (Step 6.1) to ensure they align with the current business priorities. In addition, the items for which top management is responsible as listed in Step 1.2.6 should be reviewed to ensure that top management remains actively engaged in the continual improvement of energy performance and the energy management system. CONGRATULATIONS! If you have worked completely through this DOE eGuide for ISO 50001 you are on the path to developing and implementing an energy management system that provides processes and systems needed to manage energy use and consumption and achieve improved energy performance. As the EnMS is fully implemented, the PLAN-DO-CHECK-ACT continual improvement processes are embedded into the organizations daily operations. This positions the organization for ongoing improvements in energy performance and the benefits that can result from reduced energy consumption, increased energy efficiency and proactive energy management.