ABC Education

SustainabIe Energy Management PIan

2011 - 2013


Executive Summary

ABC proposes to improve the efficient use of energy resources throughout its campus by
creating, implementing and following an effective Sustainable Energy Management Plan
(SEMP).

The objective of ABC's SEMP is to promote good stewardship of our environment and
community resources while demonstrating financial responsibility to our staff, faculty,
and students. Furthermore, this program aligns with our organization's stated
commitment to [insert details of organizational environmental/sustainability commitment,
as appropriate].

Key elements for consideration include:

O Utility and energy related costs are a significant part of overall operating costs
O Energy costs in FY 20xx were $X million.
O Energy Use ntensity(EU) was X BTU/FT
2

O Campus related O&M costs are $X annually
O Campus capital project costs are projected at $X over X number of years

O Recent activity associated with managing these costs include the following:

O Fill in

O To further strengthen and obtain the full value from energy management activities, a
strategic approach needs to be taken. With the adoption of this SEMP, ABC will fully
integrate energy management into its business decision-making, policies, and
operating procedures.

O With energy management an integral part of business decisions, ABC can expect the
following:
O At least a X% reduction in energy use, which translates to $X in energy costs
per year.
O $X annually to the bottom line which equates to approximately $X million over
X number of years
O Energy investments will get a XX% internal rate of return (RR)


O Active management of energy related costs and risks in this manner will provide a
significant economic return to the organization, will demonstrate environmental
stewardship, and will support other key organizational objectives.




Comment |!1]: Summarize activities the campus
has done previously to reduce energy such as;
converting to energy eIIicient lighting, IT related
initiatives, controlling thermostats to speciIic
temperatures, etc.
Comment |!2]: This can be Iilled in once the
recommendations are selected
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SustainabIe Energy Management PIan Background

[State what, if anything, has been accomplished with regard to a Sustainable Energy
Management Plan and state the need to improve and grow these efforts. This may
include the formation of a green or energy team.]

ABC is now making a fundamental commitment to protect the environment through the
continuous improvement of our energy performance. An organization-wide energy
management plan will help us integrate energy management into our day-to-day
operations which will enhance our financial health and aid in preserving the environment
for future generations.



Guiding PrincipIes for Strategic Energy Management

ABC's SEMP will be guided by these principles:

ABC can significantly improve its energy-related performance by acting strategically
through the adoption of a SEMP. nternalizing energy management into our
organization's every-day decision-making, policies, and operating procedures will help
assure substantial and long-lasting reductions in energy use throughout the campus.

Taking A Strategic Approach: ABC actively manages energy costs by.
....

Supporting Mission-Critical Goals: Strategic energy management will directly support
ABC's mission-critical goals of .

Comment |!3]: ample oI vision statements
provided. Be sure to tie in the campus` overall
vision/mission statement.
Comment |!4]: Policy and goals can be added to
this section iI appropriate.
Comment |!S]: List out cost management
activities.
Comment |!6]: Summarize supporting goals oI
the organization.
Strategic energy management can be pursued without adverse impacts to comfort. n
fact, leading ENERGY STAR partners have found that the increased attention to
operations and maintenance that underlies good energy management also has the effect
of reducing hot and cold complaints.

The impacts of ABC's energy management efforts on those goals will be tracked and
reported wherever possible.

Pursuing Long-Term Change to Core Business Practices: The core of a strategic
approach is the consistent incorporation of energy management into our organization's
core practices and decision-making such as the strategic planning and budgeting
processes. Change in energy-related business practice will cover all applications of
energy management new construction and major renovations, existing building
operations and upgrades, and the economic analysis and procurement practices
underlying these practices.

ostering Organizational Commitment and Involvement: Executive and
organizational commitment and involvement is critical to successful strategic energy
management. Senior management at ABC will work with facility managers and other key
staff to ensure that adequate organizational support and resources are provided to
maximize the benefits of energy management to ABC. Energy management will be
integrated into the strategic planning and capital budgeting processes.

Obtaining Solid Economic Returns: Energy management investments will
yield solid economic returns that meet ABC's standard X (number) year return on
investment requirements applied through the campus' capital budgeting process.
ABC will apply consistent financial analysis methods that consider life-cycle to
reduce total cost of facility ownership and operation.

&sing Available Resources and Assistance: Use national, regional, and local
sources of strategic, technical, and financial assistance to help achieve our
energy management goals. These include Duke Energy, ENERGY STAR, and
state loan and tax credit opportunities.

Business Case for Energy Management

Below are the central business arguments for ABC's pursuit of strategic energy
management.

Cost Reduction/Containment
Strategic energy management presents a highly leveraged opportunity to reduce
operating costs and positively impact ABC's bottom line. Dollars of operating cost
savings directly improve the operating margin. With ABC's current operating margin of
X%, reducing energy costs by $1 has the equivalent impact to the bottom line as
increasing revenue by $X. Further, investments in energy projects typically have a lower
risk of performance over time relative to other investments and savings from energy
projects are easier to forecast reliably than savings or revenue increases expected from
more variable investments.
Comment |!7]: planation:

To increase your bottom line you can (1) reduce
epenses or (2) increase revenues. Assuming all
costs are variable.

Reduce penses (AMPL):
With a 5 proIit margin, to produce $100 in revenue
you spend $95 and make $5 'proIit. II you reduce
epenses by $1, you increase proIit to $6 (which
increases your margin to 6.

Increase Revenue:
Revenue penses ProIit
penses are 95 oI revenue.

To increase proIit Irom $5 to $6 as we did above, but
to do so through increasing revenue, we need to
determine how much we need to increase revenue
by.

II proIit is $6:
Revenue 5 (margin) $6
$6 / 5 $120
So, $120 (revenue) - $1114 (epenses which is $120
5) $6

So decreasing epenses by $1 can have the same
impact on the bottom line as increasing revenue by
$20. It can also improve your operating margin.

This eample should be adapted to align with the
Iinancial metrics that ABC commonly uses to
measure Iinancial perIormance.
An X% reduction in energy can translate into $X annually. (Assumes percent savings is
based on energy intensity. Also based on current consumption of X million kWh and X
million therms and current energy rates of X per kWh and X per therm.) The US EPA
estimates that buildings can achieve 5-10% energy savings through low and no cost
operations and maintenance strategies.


Strengthened Community Leadership and Environmental Stewardship
Energy management is a visible, public commitment to the community and environment.
Through aggressive energy management, the campus can provide leadership in
promoting sustainable communities, efficient business practices, and environmental
stewardship. This is an excellent opportunity to provide leadership and reduce costs at
the same time. Reducing energy use by XXX,XXX kWh can prevent the emission of
X,XXX metric tons of carbon dioxide emissions, equivalent to the emissions of
approximately XXX cars, or the emissions from the electricity to power nearly XXX
homes for one year.

GoaIs

O Long term: Establish ABC as a leader in energy efficiency and sustainability.

O Short term: Reduce energy use by X% by 20xx compared to a 20xx baseline.

DetaiIed PIan

The objectives of ABC's SEMP are to:

O Establish a campus sustainable energy management plan.
O Establish an internal framework to support the commitment to energy
management.
O Establish a process for monitoring energy performance and recognizing
achievements.
O dentify and implement energy performance improvement projects.
O Adopt policies and/or guidance on incorporating energy efficiency into new
building design and/or renovation projects.
O mplement best practices in operations and maintenance.
O Establish energy efficiency guidelines and standards for products and equipment.
O Develop a communications plan to raise employee, student, visitor and
stakeholder awareness through communications activities.
O Train employees on energy saving practices that they need to adopt or employ in
their daily responsibilities.

The following actions will support each objective and help ABC reach its energy
management goals. Following approval of this SEMP, progress towards each activity
will be tracked. Any documents developed as a result of the activities listed below will be
attached as an appendix and become part of this SEMP.



Comment |!8]: missions Calculator
http://www.epa.gov/cleanenergy/energy-
resources/calculator.html
Comment |!3]: Fill this section in with internal
metrics that you could relate these to. For eample,
how do the number oI cars or homes compare to the
number oI employees you have (or the number oI
employees in a department)?
Comment |!10]: Should be tweaked to Iit ABC`s
speciIic goals.
Comment |!11]: Should be tweaked to Iit ABC`s
speciIic objectives.
bjective 1: EstabIish a campus sustainabIe energy management pIan.
Action Lead TimeIine
Complete energy management assessments
using ENERGY STAR Assessment Tools.

Draft energy plan.
Present to senior management for approval.
Obtain approval from senior management.
Communicate the plan to key decision makers to
ensure the plan is incorporated into business
practices.



bjective 2: EstabIish an internaI framework to support the commitment to
energy management.
Action Lead TimeIine
Assign "Director of Energy responsibilities.
Establish a "Green Team if not already in place.
Ensure relevant representatives from key areas
such as; Duke Energy Business Relations
Manager, current/potential contractors, real
estate partners, facilities development staff,
information technology/computer data center
staff, and students are represented.

Assign specific tasks to individuals on the team.



bjective 3: EstabIish a process for monitoring energy performance and
recognizing achievements.
Action Lead TimeIine
Gather energy and campus characteristic data.
Enter data into EPA's Portfolio Manager.
Update Portfolio Manager data on a X basis
dentify metrics to report to senior management
on a X basis.

dentify a means for reporting metrics to
employees so they can track progress. i.e.

Comment |212]: For students, look to the
Alliance to Save nergy (AS) Green Campus
Program: mpowering Tomorrow`s nergy
IIiciency Leaders.
Comment |213]: Sub-Metering Energy Use
in Colleges and Universities: ncentives and
Challenges.
http://www.energystar.gov/ia/business/higher_e
d/Submeter_energy_use.pdf
Comment |!14]: Typically monthly.
introduce a scorecard mechanism stating % of
reduction goals, decreases carbon emissions,
increased Energy Performance Score.
Apply for external recognition where eligible or
look to showcases improvements, such as:
- College Sustainability Report Card
- ENERGY STAR Partner of the Year Award

Develop an internal recognition program to
reward staff and students for their contribution
towards reaching the savings goal.


bjective 4: Identify and impIement energy performance improvement
projects.
Action Lead TimeIine
Work with Duke Energy to conduct an energy
assessment if not already completed.

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

Establish an annual process for conducting
energy assessments.

Establish a continual process for identifying
improvement projects.

Work with Duke Energy to identify incentive
opportunities.


bjective 5: Adopt poIicies and/or guidance on incorporating energy
efficiency into new buiIding design and/or renovation projects.
Action Lead TimeIine
dentify architect and design consultants that
have experience in designing energy-efficient
campus buildings.

Establish a commitment to integrating energy
efficiency into new building design and/or
renovation projects.

Set performance targets.
ncorporate energy efficiency into design
decisions.


bjective 6: ImpIement best practices in operations and maintenance.
Action Lead TimeIine
Conduct a review/inventory of current
operational controls and settings (ex:
temperature setting and lighting controls) and

Comment |21S]: http://www.greenreportcard.org
/
Comment |216]: RGY STAR Higher
ducation homepage:
http://www.energystar.gov/inde.cIm?chighered.b
ushighereducation
establish guidelines for temperature set points
(include documentation in appendices of this
plan).

Develop operational changes and guidelines for
specific areas. i.e. standards for room
occupancy time frames so that temperature
gages may be fixed at those times.

Train appropriate staff to carry out operational
changes.

Conduct a review of maintenance procedures
and expand as necessary.

Document current operations and maintenance
procedures for all major campus building
equipment and develop checklists to ensure
staff complete all maintenance on a routine
basis as outlined in the equipment manuals.

Establish lighting guidelines. dentify areas that
do not operate 24/7 where lights can be turned
off after business hours.

Establish enforcement procedures to ensure
guidelines are followed.



bjective 7: EstabIish energy efficiency guideIines and standards for
products and equipment.
Action Lead TimeIine
ntegrate energy efficiency standards into the
campus' purchasing and procurement policy.
Consider contractual agreements with vendors
who specifically deal with energy efficient
products. Specify ENERGY STAR, where
applicable.

Enable power down features on computer
monitors and PCs.

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

dentify rebate opportunities by working with
Duke Energy and local retailers.





bjective 8: DeveIop a communications pIan to raise empIoyee, visitor,
student, and stakehoIder awareness through communications activities.
Action Lead TimeIine
dentify at least one ENERGY STAR National
Campaign to leverage to raise awareness within
the campus and community.

Annually hold energy events in conjunction with
Earth Day (April 22) and Energy Awareness
Month (October). Provide information to staff,
faculty, and students on saving energy at work
and home.

dentify other communications strategies to raise
awareness about the campus' goals and plan.

Offer employees tips and advice on energy
savings behaviors at home that will carry
through to the workplace. Provide them with
information on rebates that may assist them in
their efforts.



bjective 9: Train empIoyees on energy saving practices that they need to
adopt or empIoyee in their daiIy responsibiIities.
Action Lead TimeIine
ntegrate energy efficiency into trainings for
facilities department staff.

Work with HR to integrate training into other
applicable employee trainings, such as new hire
trainings.




This template was developed for Duke Energy's Higher Education SEMP Program. It is based on
energy plans and resources from www.energystar.gov.
Comment |217]: RGY STAR`s 'A
Student`s Guide to Improving nergy PerIormance
on Campus:
http://www.energystar.gov/ia/business/highered/
RGYSTARStudentActivityGuide.pdI
Comment |218]: Be part oI an RGY STAR
Higher ducation Success Story, create an RGY
STAR Showcase Dorm Room, and other suggestions
here on the RGY STAR Higher ducation
homepage:
http://www.energystar.gov/inde.cIm?chighered.b
ushighereducation
Comment |213]: RGY STAR Challenge
Toolkit has many diverse and inIormative resources:
http://www.energystar.gov/inde.cIm?cchallenge.c
hallengetoolkit
Appendices



Comment |!20]: Appendlces should lnclude
documenLs developed as dlrecLed above such as
communlcaLlons plan CM guldellnes eLc