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PURPOSE OF THIS GUIDEPersonnel across your organization will benefit fromthis guide, including senior managers and directors who influence corporate managementand priorities department managers, real property managers and other staff whoare accountable for annual capital and operating budgets andfacility operationWe encourage you to considerhow your organizationcan benefit from energymanagement best practices. building operators and superintendents who are responsible formaintaining building systems and occupant comfort tenants and building occupantsUsing our energyresources responsiblyis a win-win:It’s good for Canadianbusiness, good for Canadianconsumers, good for theCanadian economy and goodfor the environment. service providers, whether they perform maintenance, conduct energy surveysand assessments, or undertake retrofit workBecause energy management is a continuous process, this guide will be useful for allorganizations in the commercial and institutional sector, from those that have beenmanaging energy for years to those that need a place to start.Call to actionEnergy management is more about change management than engineering. Buildingsare dynamic environments that must evolve to maintain the value they provide to theirowners and occupants. Effective energy management requires a holistic approach thatconsiders occupant behaviour, organizational structure and the technical aspects of thefacility. Managing change in these three areas will result in sustainable and continuousimprovements to your organization’s bottom line.The Canadian commercial and institutional sector represents about 766 million squaremetres of floor space1 and approximately 12 percent of Canada’s secondary energyconsumption (energy delivered to end-users).2 From 2011 to 2030, commercial buildingfloor space is projected to grow by about 33 percent, and significant numbers of existingbuildings will be retrofitted. In 2012 alone, almost 17 billion were spent on buildingrepair and construction in the commercial and institutional buildings sector.3To remain competitive in the global marketplace and to align with our Americancounterparts, the Canadian buildings sector has a duty to use our energy resourcesresponsibly and take up the call to action as a mechanism that will strengthen andenrich our economy for future generations.41Natural Resources Canada, Survey of Commercial and Institutional Energy use – Buildings 09/scieu e.pdf2Natural Resources Canada, Energy Efficiency Trends in Canada, 1990 to /data e/trends.cfm?attr 03Statistics Canada, Table 029-0005 – Capital and repair expenditures, by sector and province,annual (dollars), CANSIM, www5.statcan.gc.ca/cansim/pick-choisir?lang eng&p2 33&id 0290005Energy Management Best Practices Guide For Commercial and Institutional Buildings

PURPOSE OF THIS GUIDEHow to use this guideThis guide has four sections, each with a unique purpose.Section 1. Business case for energy management. The financial benefits of energymanagement best practices are compelling. This section explains why you shouldimprove your energy management practices.Section 2. Energy management road map. There are four core steps (Plan-Do-CheckUpdate) that every organization can take to improve its energy management practices.This section presents a road map for those steps.Section 3. Primer on energy management practices. Energy management practicescan be grouped into eight equally important categories. This section explains thesepractice categories.Section 4. Taking action. This section outlines tangible actions that your organizationcan undertake and provides resources and tools.About the Buildings DivisionWorking under the mandate of Natural Resources Canada’s Office of Energy Efficiency,the Buildings Division offers leadership, energy management best practices and capacitybuilding resources for Canada’s commercial and institutional sector. Working withstakeholders and allies across the country, we offer tools, resources and informationto help further Canada’s sustainability mandate.Energy efficiency, through the responsible use of energy, is good for Canada’sbusinesses and good for Canadian consumers, because it leads to reduced overallenergy costs. Becoming a more energy-efficient nation can improve our environmentwhile creating employment and revenue streams that will lead to lasting benefits forthe commercial and institutional sector and the Canadian economy as a whole.Our missionThe Buildings Division’s mission is to improve the energy performance of commercial andinstitutional buildings in Canada. We work with stakeholders to exchange information and providetools, policies and programs that build awareness and lead to action.Our visionHelping Canada’s buildings sector to become a world leaderWe can help you make your new, existing or federal buildings more energy efficientwith such offerings as the Canadian adaptation of ENERGY STAR Portfolio Manager.Guides and training are available to help ensure that your building is compliant with theNational Energy Code of Canada for Buildings 2011. We can help you make the smartmoves to improve your bottom line and contribute to Canada’s overarchingsustainability goals.Learn more about the Buildings Division and our energy efficiency offerings by visitingour Web site ) or by contacting usby e-mail at info.services@nrcan-rncan.gc.ca.Energy Management Best Practices Guide For Commercial and Institutional Buildings5

SECTION 1Business case forenergy managementEnergy management is an attractive investment because itchanges your organization’s approach to energy in a way thatleads to sustained returns. By specifically addressing commonproblems that affect the commercial and institutional sector,energy management best practices drive important benefits foryour organization.Common problemsIn many organizations, energy performance suffers because Investment decisions are made separately from operational decisions.The benefits of energy savings are not always realized by the person or entitymaking the investment or the change in operation. For example, manyleaseholders are not metered separately and, therefore, are not charged directlyfor their energy use. This effectively negates the incentive for occupants to changetheir behaviour in a way that improves energy performance. First cost and non-energy considerations drive investment decisions.Life-cycle costs are not always integrated into corporate decision-making processes.For example, when a new facility is built or retrofits are done, the initial capitalcost and performance characteristics are typically given higher priority thanenergy-related operational costs. Energy information is incorrect or incomplete. You cannot manage what youdo not measure. For example, many organizations cannot accurately compareenergy consumption year by year and do not have the data required to verify energysavings that result from projects that have been implemented. Building personnel lack the awareness, capacity and accountabilityrequired to drive energy performance. There can be a lack of coordination andcommunication about energy performance between senior management, buildingoperators and occupants. For example, if building operators are not accountablefor energy management and are not given the proper training and informationabout building performance, they are more likely to manage their facility’s systemssolely to maintain comfort and operational requirements, without consideringenergy efficiency. Energy performance measures are undertaken on an ad hoc basis.When energy management activities do occur, they are often informal and lackthe direction that a best practice planning process affords. For example, anorganization can take advantage of synergies between various energy projects ortime-limited support from utilities and government agencies if objectives are welldefined and actions are undertaken in a managed fashion.6Energy Management Best Practices Guide For Commercial and Institutional Buildings

SECTION 1 BUSINESS CASE FOR ENERGY MANAGEMENTBenefits of implementing best practicesOrganizations that adopt energy management best practices are rewarded inthree key ways: Energy and cost savings. For many decision makers, the most compellingreason to manage energy is that it directly improves the organization’s bottomline. When energy management practices are successfully implemented, theycan reduce the amount of energy used by an organization significantly. Tofurther improve the business case, many energy management actions can beimplemented quickly and inexpensively. Risk mitigation. Energy-related risks include unexpected cost increases andsudden equipment malfunction or failure, which can lead to occupant discomfort.Minimizing your exposure by reducing your energy consumption is a goodbusiness practice. Indirect benefits. Many energy management actions can lead to improvedcomfort and a sense of pride and well-being among building occupants.This, in turn, leads to a more productive workforce. You will also be able todemonstrate corporate social responsibility by reducing the environmental andgreenhouse gas impact associated with the energy you consume. What’s more,you can differentiate yourself from your peers by showcasing your success andbeing acknowledged for your leadership.4City of OshawaOver a three-month period in2009, and again in 2010, theCity of Oshawa challengedstaff at various city facilitiesto reduce electricity andnatural gas consumption.Prior to the challenge,maintenance and facility staffreceived customized Dollarsto ense training fromNatural Resources Canadaand learned about thebenefits of makingbehavioural and operationalchanges at their facilities.Using only no-costmethods, the city reducedenergy consumptionby approximately4,000 gigajoules comparedto the 2008 baseline periodand saved almost 50,000.4The City of Oshawa. March 2011. Community Centre and Fire Hall Conservation Challenges – 2010 Results.Energy Management Best Practices Guide For Commercial and Institutional Buildings7

SECTION 2Energy management road mapEnergy management practices are grouped into eight equallyimportant categories: commitment, planning, organization,projects, financing, tracking, communication and training.City of BurlingtonThe City of Burlingtonis an excellent example ofan organization that hasdeveloped a best practiceenergy management planby following the four-stepPlan-Do-Check-Update roadmap and by using a version ofthe energy managementbalanced scorecard.Road mapYour organization can improve energy management practices within each of theseeight categories by following a four-step process – Plan-Do-Check-Update:1. Plan. Take stock of the current state of your energy management practices, thenset objectives and define the actions that will improve your energy performance.2. Do. Follow your plan and begin to take actions that will achieve your desiredobjectives.3. Check. Monitor the success of each action on an ongoing basis.4. Update. Assess the progress toward your plan by reviewing its contents andmaking changes at least annually.Key actions that wereidentified to improve the city’senergy management practicesinvolved benchmarkingfacility energy performance byusing the Canadian adaptationof ENERGY STAR PortfolioManager, as well as takingadvantage of NaturalResources Canada’sDollars to ense EnergyManagement workshops.5COMMITMENTPLANNINGORGANIZATIONAn energy policy endorsed bysenior management, and withclear targets, catalyzes changefrom the top down.An energy management planprovides a framework toachieve targets.Energy management ismost effective when it’san integral part of TSRoutine assessmentof technical, behaviouraland operational projectsreduces missed opportunities.UPDATEDOA commitment tofund opportunities thatmeet established investment criteriafacilitates project development.CHECKTRACKINGYou can’t manage what you don’tmeasure. Energy performancecan be managed by monitoringand benchmarking.58TRAININGCOMMUNICATIONShowcasing the value andperformance of energymanagement increasessupport and buy in.Awareness and capacitydevelopment enable operationaland behavioural change.The City of Burlington. March 2013. Corporate Energy Management Plan.Energy Management Best Practices Guide For Commercial and Institutional Buildings

SECTION 2 ENERGY MANAGEMENT ROAD MAPScorecardThe energy management balanced scorecard has been successfully deployed by thousandsof organizations trained by Natural Resources Canada over the last decade. It is aplanning tool that will help you: assess the current state of your energy management practices set objectives to improve the state of your energy management practices define actions to achieve these objectivesEach of the eight categories of energy management practices can be divided intofive practice levels. The lowest level (one) indicates that there is plenty of room forimprovement, while the highest level (five) indicates that your organization’s operationsare aligned with best practices.It does not necessarily make sense for all organizations to ultimately aim for level fiveperformance in every category. Depending on the number and type of facilities in yourportfolio and the size of your organization, level four may suffice for some categories.For example, if your energy consumption and costs are relatively low, aiming for a levelfour under tracking could be more appropriate.If your organization is starting out with lower scores, your goal should be to continuallymove up, level by level, over time. And, where feasible, you should aim to makeimprovements across all categories simultaneously. This will ensure your organizationis optimizing the way it manages energy.Energy Management Best Practices Guide For Commercial and Institutional Buildings9

10Energy Management Best Practices Guide For Commercial and Institutional Buildings12345LevelPlanningA comprehensive energymanagement plancovers all major practicecategories, defines howtargets will be achievedand is implemented byall departments withfull support from seniormanagement.oAll departments arerepresented on theplanning teamwith some seniormanagement support.oOnly technical peopleor technical managersare involved indeveloping an energymanagement plan.oOne person hasbeen delegated todevelop an energymanagement plan.oNo energymanagementplan exists.oCommitmentAn energy policy existsthat has clear targets,has the commitmentof senior managementand is communicatedbroadly.oA formal energy policyexists but lacks activecommitmentfrom seniormanagement.oThe energy policy setby the energy manager,energy committee orequivalent has not beenadopted.oAn undocumentedset of guidelines orprocedures exists.oNo guidelines orprocedures exist.ooThere is noenergy-relatedresponsibility or contactbetween management,staff and the occupants.oAn energy manageris a part-timeresponsibility thathas limited authority.oAn energy manageris in place but has noclear responsibility orauthority.oAn energycommittee is used asthe main channel ofcommunications alongwith direct contact withmajor energy users.oEnergy management isfully integrated into themanagement structurewith clear delegation ofresponsibility forenergy consumption.OrganizationEnergy management balanced scorecardProjectsoThere is no mechanismor resources toidentify or developenergy-savingopportunities.oOnly informalassessments are madewith ad hoc resourcesto identify energysaving opportunities.oDevelopment of energysavings opportunities isad hoc andinfrequent. Thereis only selectedimplementation.oThere is formalizedbut infrequentidentificationof energy opportunities,basic business casesand implementation.oIdentification ofcapital, behavioural,operational andmaintenance projects,development ofbusiness cases andimplementationare ongoing.FinancingoEnergy efficiencyinvestments arenot pursued.oOnly low-costmeasures areimplemented.oInvestments are basedon short-term or simplepayback criteria only,with no considerationfor life-cycle costing.oLife-cycle costing and/or internal rate of returninvestment criteriaare used.oInvestment criteria,financing mechanismsand commitment toimplement energyefficiency projects areclearly defined.TrackingoNo energy data arebeing tracked orbenchmarked.oCost reporting is basedon utility invoice data.No benchmarking isdone.oFacility-level performance is monitoredagainst a baselineby using utility datawith ad hoc use offindings. No bench marking is done.oFacility-level performance is monitoredagainst a baselineand benchmarked byusing key performanceindicators. Resultsfrom major projectsare measured.oAn energy accountingsystem sets targets,forecasts use, monitorsuse against a baselineand the forecast, andidentifies faults. Savingsare tracked at a projectand system level byusing submeters.Performance isbenchmarked.CommunicationoEnergy efficiency isnot promoted.oOnly informal contactsare used to promoteenergy efficiency.oStaff and tenantawareness is occasionalonly and ad hoc.oAn ongoing programof staff and tenantawareness exists, andprogress is reportedthrough regularpublicity campaigns.oThe value of energyefficiency and theperformance ofenergy managementare reported andmarketed, both withinthe organization andoutside, continuously.TrainingoThere is no energymanagement oroperational training.oBuilding operatorsreceive ad hoc trainingin energy-efficienttechnologies andpractices.oBuilding operators aretrained to maintainmajor energy-intensivesystems.oSenior management orstaff and tenants havereceived ad hoc training.Building opera

Business case for energy management. Energy management is an attractive investment because it . changes your organization's approach to energy in a way that . leads to sustained returns. By specifically addressing common problems that affect the commercial and institutional sector, energy management best practices drive important benefits for