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The U.S. Department of Energy hosted a webinar on January 29, 2019 to offer a preview of anticipated updates for the Superior Energy Performance program and name change to SEP 50001™. Watch the recording or view the transcript below. Updates include changes to the Scorecard, DOE recognition for higher recognition levels at the Silver, Gold, and Platinum levels, and more. Learn more:


Paul Scheihing: Good afternoon and good morning, depending on where you are in the United States, or North America. I look forward to going over the new SEP 50001 Program with you today. In the next hour and a half, we will go over the DOE offerings, give you kind of a bigger picture overview of the ISO 50001 offerings that DOE has, get into what the updates will be for SEP 50001 in 2019, talk about the new recognition process for the program. We have some trainings coming up that we recommend for people, and then for both the end-users and the auditors, the proposed transition which we’re going through an approval process with ANAB. And then of course, we’ll do Q&A’s. We’re going to do it in two parts – I’m going to stop just before I get into the specifics of SEP 50001, and stop for about five minutes, see if you have any questions, and then at the end, we’ll open it up of course.

And again, as Pamela said, if you do have a question, if you do have a question, put it in the chat form, that way we’ll know you have a question, and what it is, and then we’ll see if we can answer as many of them as we can, and we’ll open you up – we’ll unmute you to be able for you to ask and clarify things.

All right, so – so how is ISO 50001 doing, relative to other key management systems around the world? This data shows how ISO 50001 is trending, relative to 9001 and 14001, and as you can see, at the moment it’s trending fairly closely, but we’re still at the early stage of a global management system. The other management systems have taken about – almost ten years before they picked up and accelerated, due to various market conditions. So as of 2017, we had 77 certificates – an estimate of 2-3 hundred facilities in the United States, and then worldwide 22,000 plus. We don’t have the 2018 numbers, but you know, we’ll be getting those soon.

Ok, now – so, key point is that 50001 is yielding results. DOE is taking extensive data with our SEP partners to look at the cost-effectiveness of putting the management system in place. First of all, you can see that quite a few companies have already adopted the standard, in one or more facilities around North America, and if you look at the United States data, a typical manufacturing plant saves about one percent a year. And then our industry leaders through the Better Plants Program, Energy Star – they got about two and a half percent across their portfolio. Well what we’re seeing with 50001 across 50-plus facilities, is we’re improving at 4.6 percent per year, which is very encouraging. And even more important, is 75 percent of those savings are coming from no-cost, low-cost operational improvements, which means they require almost no capital. And so that is really the business case for doing 50001, is you put the structured management system in place, and you get that savings – greater savings at less cost, and it’s more sustainable – it persists.

So, many of you might be aware that the 50001 standard was revised last year, and there are some changes, and key ones are summarized here. Better clarification, an expanded role of top management, a strengthened demonstration emphasis of energy performance, which is a key difference of ISO 50001 to other management systems – it’s very data-driven and very performance-driven. Types of energy within the scope, and boundaries cannot be excluded, and then they have more clarifying details on things like the energy review, energy performance indicators, data collection plan, etc., normalizing your variables.

And then the most important thing is the standard was aligned into what’s called a high-level structure, so the 9001, the 14001, the 45001, 18001, 50001, all have the same common structure now, which is an advantage if you have these other management systems, you can kind of cross-reference things, and build upon whatever management system you have to 50001.

So, you’re probably saying, well, how am I going to know what to do? I already have 50001 2011, how do I go to 2018? Well, we’re going to put out a document and a guidance for you to follow section by section – we developed this in collaboration with the U.S. Technical Advisory Group, which is the main group that represents the United States at the TC 301, the ISO 50001 committee. And we’re shooting this document to be out by March 1st, so we will put it on our website, we would hope to put a notice in our Advanced Manufacturing Office newsletter, anyway, we’ll get it out to you. And looking forward to getting that so you folks can see what you need to do.

So, DOE has created a spectrum for ISO 50001 adoption, ranging from the Ready Program through ISO certification to SEP. So, as it explains there is – it says you begin with the market-driven business culture development – that’s the most important thing of 50001, that’s why we’re getting all the savings. We’re including more people in my plant, and top management is involved, and we’re going through that rigorous energy review process. And then we go all the way to SEP, where you’re verifying the results of all the hard work you’ve done, and the results you’ve gotten. So, with 50001 Ready currently at 16 facilities that have been recognized – it’s not a certification, it’s a recognition by DOE, and it’s fairly young, so it’s building in the last half year. And then we have about 200-300 facilities that are ISO 50001 certified, and 57 of those are SEP certified through the DOE program.

Let’s talk about 50001 Ready – how it works. So, there is a Navigator tool, which I’ll demo in a few seconds, but there are tasks in there – 25 of them, where you go through and you pick off one at a time, and all 25 tasks have the requirements of 50001 within those tasks. And so it’s a self-guided tool, you follow it through, and then you also have to measure your performance, and you can use various tools -  you may be familiar with the Portfolio Manager, or the EMPILite, or – we’re fairly flexible on which tool you can use – it does have to follow a regression analysis approach, but anyway, you do your performance, and then you get steps 1 and 2 done, and then you have the team leader and the job management person sign off, you attest that you completed 50001 Ready, and submit that to DOE and you get a recognition by DOE that you’ve accomplished, and you - in a sense, that you’re conformant to the standard.

So, little bit about the Navigator tool – first of all, here’s the website you go to – – and it’s – we call it kind of a TurboTax-type tool, where you mark the steps – these 25 tasks, you know, give you a very specific, you know, getting it done – when you’re done with this, you’re going to get these one, two, to three things done – it gives you a rough task overview and then it gets into more detail – full guidance. It also gives you tips on how to go from ISO management systems, like 9001, 14001, or you might have done EnergyStar - the guidelines there. How do you go from those to 50001? And then it helps to form your team – one person could be the team leader, and assign tasks to different team members, and then as it says you can download guidance, etc. It is in English, Spanish, and French.

I’m going to quickly go there for a second – let’s see. All right, you should be able to see it. So this shows the Navigator tool. And it’s in four core sections – Planning, Energy Review, Continual Improvement, System Management. So you can see here, for Planning, we have five tasks, right? And for Energy Review, we have 6 through 13. Continual Improvement, is more the checking tasks, here. And then System Management. Couple, you know, key things is that at the end of the process, you’re going to review things with your management. Of course, you’ve got to calculate the savings of what you achieved, your energy performance improvement, etc.

So, you know, each one of these tasks, you go in and you kind of assign people to do them, and track your progress. Okay, let’s go back to the presentation. All right, two key new features is the multi-site platform. This is going to be very popular with companies that have portfolios, you know, Better Plants partners, for example, or utilities that want to work with multiple customers, so this allows for the coordination of corporate office with the various plants, or the utility with their customers. And this is being beta-tested currently, and it’s functional in the Navigator here. The second thing, which is going to be available, we’re estimating March 1st, is this playbook, which has everything that’s in the Navigator, but it’s put in an Excel format, where you can get specific worksheets that we kind of selected the ones that are the most fundamental to each of the 25 tasks, and we’ve actually filled out some of the worksheets as an example for you to follow.

So, look for that to be coming out, the playbook. So let’s talk a little bit about SEP now. So, great savings with many of the plants – up to a million dollars a year in savings, again, the savings is mostly from operational improvement. We’re reducing carbon emissions and we’re getting that third party verified energy performance improvement. And again, the savings have been found to be almost double of what corporate leaders are experiencing on average. So, we’ve got some great partners here that have one or more plants involved. Four of them actually have enterprises established.

So, what is SEP 50001? Well, it’s going to remain as SEP currently is, in two key parts – it’s 50001, the management system of ISO 50001, and the verified energy performance improvement following the MSE 50028-1. It is an ANAB-accredited program, which means that ANAB kind of looks over the program, and makes sure it’s meeting the standards. The way they do that, is in particular, especially, is to accredit verification bodies, that go in and do the audits. So they’re making sure the auditors are doing things in a quality fashion that follow a standard.

Program status – we launched it in 2012, and revised the program in 2017. Now we’re going through our third revision in 2019, and we have 57 active certifications across the dozen or so companies. You can see six of them have, you know, multiple sites. So, very pleased by that – these are the companies that, on average, are improving 4.6 percent per year. I guess the other thing I would say is the diversity of both industrial and commercial, you know, the Hilton and Marriott in there, as well as we have a wastewater – a water works, sorry – in Des Moines Water Works.

Okay – so we’re going to open up the lines now, for a quick pause, if you might have some questions. Let’s see, let me take a look at the questions. Okay, so one question is –

Pamela: There are a couple of questions about when the 50001 Ready Program and the 50001 Ready Navigator will be updated to the 2018 version of the ISO 50001 Standard.

Paul: That’s a great question, and as of next week, we will have our internal document to review the crosswalk of how the existing Navigator is going to need to change. We’ve got to review that, and we’re hoping to release that in March. That we can, you know – you guys can have access to the new standard. But before that, you’ll have this guidance document that I mentioned – that – you can get that in your hands and at least start to make the changes. Very important task to do this. Any other questions, Pamela?

Pamela: No, not yet.

Paul: That was the basic – several people asked the same question, so we better get on that, right? All right, so let’s get into the details of SEP 50001. All right, so, we started this process almost two years ago, actually. So it’s been an interesting journey, and you know, we heard a variety of input from industry as to why to improve the program, what needs to be changed, and also what needs to be maintained, but you know, SEP is about really bringing out the value and verifying the value of ISO 50001. So we know now that 50001 is getting great value, SEP just takes that and improves it with third party verification of how much it’s being – how much the standard is saving. And it’s designed to encourage adoption across all types of manufacturing plants, or commercial sectors – you should be able to do SEP in a steel mill, or auto plant, but also a hotel, or a community college, or a wastewater plant. As long as you can build a model – an energy performance model that’s conformant to the SEP measurement verification protocol, you should be able to achieve SEP certification.

So, but – we knew we had to achieve what I call greater sector parity – that means, build a greater level of fairness in it in terms of how facilities get recognized by the program. And I’ll talk about that in another slide, but we also wanted to encourage management practices that were beyond 50001, and to promote advanced technology through the scorecard we have. Like any process, we wanted it to be more streamlined and more cost-effective – to reduce costs in the process. And we’ve learned along the way of how to do that. And then we wanted to enhance the recognition – to make sure we were recognizing plants for all types of achievements, and those that were really achieving, you know, an excellent level of achievement, you know, to maybe just getting beyond the ISO 50001 – the entry-level SEP.

So the feedback we got, especially from energy-intensive end-users – we, you know, throughout the years I would – myself and others would go out and try to encourage energy-intensive facilities to join SEP, and one of the things we heard back is, you know, “I don’t think I can get to platinum, because, gee, you require 15% over three years – I just couldn’t do that, it’s not technically possible the next couple of years, or maybe not economically achievable.” So that was one thing. So why begin the process if I can’t get to platinum. If I can’t to platinum, I’m going to end up at bronze or silver, and then the boss is going to ask, well why didn’t you get platinum, and I have to explain it.

Then there was the perceived risk of, well maybe I can get the first certification of SEP, but can I maintain it? So those are the key things that made us kind of pause and think of how to change things. But we still wanted to preserve the core value of SEP, which was the verification of the performance. And above all, it should be a tool that helps managers promote their good achievements to their upper management – that those achievements are credible, transparent, and verifiable.

So, I’m going to talk about five topics that are listed here, and the name change – how we simplified things in regards to the recognition. How we are going to enable multisite certification, how existing ISO 50001 certified sites can opt into the SEP program more easily, and then how you could elevate your recognition as you go along, to provide flexibility in there.

So, the name change. The reason for the name change was a few things. First of all, as I already told you, we have the 50001 Ready Program, which that name is very clear – it’s “I’m ready, I’m conformant to 50001.” And also, we wanted to be clear that SEP includes 50001, so it’s a program aligned, part of, ISO 50001. The name applies to both the certification and the recognition components. And of course, it is for the 2019 program. We did change the names of the standards, the numbering – don’t ask me why, it was a decision to not – well actually I can tell you – there was an ISO 50021 standard that came out, so we felt changing it to 50028 would make it less confusing. So we have the 50028-1, which is for the extra requirements to ISO 50001, and the 50028-2 is the requirements of the auditors. So when the auditors get accredited, they have to follow that standard. And then there’s two normative references, which is a streamlining in itself – before I think there were four – and the certification protocol and the measurement verification protocol are the order of references related to the two standards.

The titles are listed there – SEP 50001 Verification Body, we changed the name of the Lead Auditor. SEP PV is the same as it was, and a change in the name of Certified Practitioner to put that number in there – 50001 Certified Practitioner in Energy Management Systems.

So, how did we simplify the recognition? Well first of all, we decoupled the recognition from the certification. Let’s go over how that works. So the first step to SEP is you’re going to get certified. And you can get certified over an achievement period of one, two, or three years – that was an added flexibility. So, you of course have to meet the requirements of ISO 50001, the management system, and you have to verify your improvement following the 50028, which includes the M&V protocol. But another key thing is you have to be greater than zero. So that was kind of a radical change in that – the reason why we did that is we wanted to align with the requirements of 50001, which says you have to continually improve, which means you have to be greater than zero with your improvement. Of course SEP gives more specificity of what it means to – you know, the measurement of energy performance improvement.

So – and the other thing is remember I said, a lot of companies were, you know, unsure whether they could get re-certified, so this greater than zero kind of relaxes that, and you’ll see from the recognition part again that it’s decoupled from the certification - that gives opportunity to still be greater than zero but also get points through your management practices and other things.

All right, so now you’re certified, and the recognition is optional – we will recognize if you’re SEP 50001 certified, but we will also recognize you for silver, gold, platinum if you go to the next step. And the – your verification body has submitted information to us about your certification, and the report of how much you’ve improved.

All right, third thing is, multisite certification. So there’s two possibilities there. The first one is, on the left hand side, is that the SEP part – the energy performance improvement part, and the verification of the numbers – that is going to follow also what you would do on an enterprise for the ISO 50001, which means you’re going to have a central function, at, you know, across all your portfolio – but for the facilities, you’re going to go in and sample both the management system and the performance, and the advantage of that is it reduces the cost of certification across that enterprise. So, you know, we’re – there’ll be more details on that I’ll go over.

And second approach, that might be of interest to some organizations, is if you have a group of facilities that are geographically close but not contiguous, you can certify the portfolio facilities under one certificate. So let’s – one example would be, let’s say a school system that has 20 schools. Obviously they’re geographically close. You can kind of group all those schools under one scope and get one certification. You could imagine maybe a manufacturing company’s got several facilities within a city. Or, you know, other examples. Wastewater, municipality that has multiple facilities.

So, let’s go into the multisite, where we’re one – we’re doing the sampling. You have this one, under one function, right? But the performance sampling. So, what the verification body does is send their auditors out to just a few facilities, and there’s a formula you follow, of how many facilities you got to go into based on your total population. But for the non-sampled sites, this is going to be interesting. So we’re going to allow an internal auditor, performance verifier. So this is a person that’s got to be certified within the company – could be a consultant, but it could be, you know, internal staff – and that person will be doing the internal performance verification, just like the external auditor would be doing. What he or she needs to do is show the energy performance improvement reports to the external verifier to check all these numbers here, and you know, to sort of take a review of the forms before it’s sent into DOE, and then they verify the form was completed.

So that’s kind of very interesting how that works out. You know, I know we have interest from several companies to do this. All right, so what if you have already three or more SEP sites that are certified individually, which we – as I showed you, I think we have six companies that way. So, we’re working through the details now of how to do that, and just to kind of give you a rough idea what we’re thinking about – you know, if you have multiple facilities, we’re going to allow – you’re going to have to align those facilities under one, the same certification period, at least certification time. But that’s going to require you to move your achievement periods for each facility to get them aligned. And then we’re coming up with a rule that any one facility can’t have data that’s more than 11 months old from the aligned certification month.

And then, we also will also re-baselining of any one facility to allow you to get a valid model. If you’re going to be moving your achievement period around, you may have to extend back your baseline period to do that. We just ask you seek our approval to do that, and then we’re going to hold a separate webinar with the SEP companies to go over this, and get your feedback. So, be looking for the notice on that webinar to be coming out soon.

Okay, topic four – added more flexibility in how you could build from your ISO 50001 certification to SEP. So, we’ve created three scenarios. One is of course your certification body in 50001 just proceeds to apply for SEP verification body accreditation. That’s the most clearcut one. Another one would be possibly your CB for 50001 transfers, your certificate to an SEP verification body. But the third scenario would be you could keep your ISO 50001 CB, and then get a SEP 50001 VB to verify your improvement, not to go in and audit for 50001 but to build on that existing valid ISO 50001 certificate. Yeah, so three options there.

Okay, a little bit about the DOE recognition, and qualifying for silver, gold, platinum. So as I mentioned previously, the first step is to get certified, so, here we are – so let’s say you are – you just got your SEP 50001 certification. What you will do is to complete a scorecard declaration, that you claim scorecard credits. You will have to get a 50001 certified practitioner to attest to those credits you’re claiming. That certified practitioner could be an internal staff person, or it could be an external person. So, that person signs off on those credits, and submits that to DOE.

And you can see the point level of 25, 50, and 75 points, or silver, gold, platinum, respectively. By the way, we did test the scorecard with our existing SEP plants, so we got some good feedback there. So, we will recognize these sites that submit the declaration at the three levels, and also, even if they’re just 50001 certified, we’ll recognize that. One thing we did discover – we cannot allow the existing SEP 2012 or 2017 certification to apply through the scorecard declaration. So, you will have to do the SEP 2019.

So the scorecard, which I’ll dive into a little more – it, you know, shows all the different ways you can get credits, you can get to silver, gold, platinum. It is no longer a normative reference to the SEP ANSI/MSE standards, which I think is a real advantage in that as we get into this and people start claiming credits and get feedback from industry, DOE will have the flexibility of changing the scorecard as we learn from our experience with it. And so the SEP audit – the external audit - will no longer cover the scorecard. But the certified practitioner will verify the credits claimed.

In terms of how the scorecard was changed and enhanced, we, you know, still continue to encourage energy management practices and advanced technologies. As I already said, it’s no longer part of the ANAB accredited certification. It’s not a normative reference, but it’s designed to recognize diverse practices in varied sectors, so what that really means is when we came up with the credit, we asked ourself the question, you know, how would a light manufacturing plant do at getting this credit, how would a, you know, very large chemical plant do? So we tried to create some fairness – how would a hotel do, you know, etc. etc.? And we also created some flexibility in how you would achieve the recognition level. And you’ll see that in the next slide – I’ll show you the scorecard – and the variety of things, whether it’s through energy performance improvement, or other management practices. With regard to energy performance improvement, we created a lot of, you know, flexibility there too in that we’re going to give you credit if your past performance prior to SEP was significant. Or if you’re in an energy-intensive sector, you will get some consideration for that. If you’re already Energy Star certified, or within the Better Plants program. And we’re going to reward past SEP 50001 program recertification, or actually that should be SEP or SEP 50001, so if you’ve been certified SEP three or four times, you’ll get credit for that.

All right, this is generally the outline of the scorecard. So, first of all, it’s 128 possible points, and if you recall that the – oops, sorry – it’s 25, 50, and 75, right? So, it’s out of a possible 128, so we in a sense have some extra credit in there in order to get to Platinum. So, the top part – the 33 points is strictly on the energy performance improvement. I’ll go over that in a second. And then 44 points are all these management system practices – many of them we retained from the old scorecard and made some changes. And then we added some new things in here in terms of other certifications that you may have in your facility. If you’re LEED certified, if you’re Energy Star certified – things like that. Maybe your company’s reporting to the Carbon Disclosure Project, or other reporting systems, you get credit for that.

If you go out and promote ISO 50001, either to your supplies or customers, as measured by getting them to do 50001 Ready, at least doing that, you get credit for that. If you work with a utility, or some other third party, you get credit for that. If you’re in a – you happen to be in a sector that benchmarks their energy performance improvements, like Energy Star does, or a few other private sector benchmarking systems, and you can show you’re in the top quartile, you get credit for that. And then if you’re willing to share your experience with DOE for a few things, like the cost of your program and things like that, you get credit.

There is credit for advanced technologies – using submeters, using smart sensors, controls - and then we have this one here, it’s kind of open to innovative things you’ve done, you have proposed to do – you get credit for that. And then finally of course, combining power and renewable energy. We actually increase the number of points for that.

Okay, let’s talk about the energy performance improvement. So we came up with this formula, and this took some time and a lot of sensitivity analysis, to maybe different sectors and you know, maybe whether you’re Energy Star certified or your past performance. But the way this works, is first of all you got to get your average energy performance improvements – that’s annual energy performance improvement. So you take your total number and you divide it by the months of your achievement period. So it would be, about average, let’s say one percent per year.

And then the next one is if whether you’re in an energy intensive sector, and you get credit for that, if you’re in a sector. If you’re Energy Star certified, or you’re contributing to your Better Plants improvement, you get credit for that. And then if you had a strong improvement in the ten years prior to your first time initial certification, you can get credit for that. And then finally, if you have previous SEP certification.

By the way, these documents are now live on our website, and I’ll show you at the end of the call how to get access to these. So this is an example – I picked a steel mill, hypothetical steel mill, which generally they typically improve a half percent or one percent per year. Let’s say the steel mill in 2019 gets certified SEP 50001, and they’ve improved 1.5 percent over three years. And let’s say they’re Energy Star Certified, which is possible – that’s a benchmarked sector. And let’s say they improved 12 percent over the past previous ten years, immediately preceding their SEP baseline period. So that would mean that 1.5 percent over three years is a half percent. They are in an energy-intensive sector – EI equals three, instead of one, Energy Star certification gets the three multiplier. Their prior improvement of 12 percent, yeah – they were greater than ten percent and energy-intensive, so that goes to five. And then this is their first certification, so their C-factor is zero.

So that would give 18 points. Okay? So remember, that’s out of a maximum of 33. So that’s not bad. And if you recall, the previous SEP program, you know, although it was done a little differently – you know, just to get silver, you needed to be five percent over three years. So you can see, we’re giving a facility in an energy-intensive sector, about half the points that they can claim, you know, the maximum points they can get.

I just want to give you one example, but you can go in and look at the scorecard, see how your plant would fare with this credit. Okay, a little bit about the declaration process, and we’re almost done – is, again, they complete the scorecard declaration, claim the points – that’s done by the certified practitioner – internal or external, and then that 50001 CP EnMS signs off, along with the top management, the declaration. They submit that declaration to DOE, and they can do that at any time that they’re in their, you know, their current SEP 50001 certification cycle. They could do it the first month they got it, when they first get certification, or they could wait, you know, two and a half years, if they’d like. DOE will spot check applications from time to time, to ask questions about the claims. We reserve that right. We’re not an auditor – it could be a 30-minute phone call. And upon approval by DOE, you’ll get recognized, and that will last six months after your SEP 50001 certificate expires, so if you have a three-year, you know, certificate, it could – your recognition could last for 3 ½ years.

We will of course recognize everyone on the DOE website, and other promotions that we do, and the – we’ll give you a certificate, you know, paper or electronic certificate, for those facilities recognized as silver, gold, or platinum. Of course, that note down here about multi-site – each site within the multi-site can apply for recognition individually.

So let’s say you want to upgrade – let’s say you got silver, when you first started out, and midway through, or say a year later, you put a CHP facility in. And, you know, that got you a good amount of points, and of course that’s also going to mean you improved your performance. You can go in at the 12-months, or 24-months after your certification and upgrade your recognition. So you’d fill out that scorecard declaration again. If it’s for the energy performance improvement, you will need a new SEnPI, which you’ll have to do one of two things – excuse me – you can certify early to the program, or you could pay for a performance verifier to come in, to just re-verify that SEnPI.

The other credits that are non-performance-related, you could just re-claim those. All existing credits you have stay the same – they don’t have to be re-checked, so you can only go up during that three-year period. So, you know, this upgrading of recognition could work nicely to align with a utility program that’s looking for the verified year-on-year energy performance improvement, or maybe there’s a national recognition awards program, that will give you the flexibility of not having to wait three years for you to up your recognition level.

I wanted to mention a little bit about trainings that are coming up – there’s two trainings, one on the ISO 50001 update training, and the SEP 50001 specialist training. We would recommend this to anyone that’s either going to implement SEP, or audit SEP. Some of it’s recommended, some of it’s required for certain people. So, the required of course is for existing certified professionals. All 50001 CP EnMS will get a notice soon that they have to do the update training for 50001. The SEP 50001 specialist training is optional for the CP’s, other than if you want to sign the scorecard declaration.

And then of course, there’s our auditors – they’ll have to go through both of these trainings. So, the ISO 50001 update training is already available. It’s online, and the SEP 50001 is going to be coming out in March 1st. There are other slides to training with more and more detail – I’m not going to go over them now, but again you’re going to get these slides – you can look over them yourself, all right?

So I’m going to go over – go past that. Okay, let’s talk a little bit about the post-transition. We aligned the transition, the timeframe with the ISO 50001 transition – that seemed to make sense. Which means that verification bodies will transition by August of this year. They’ll be prepared  to do audits. Some of them will be prepared hopefully sooner.

The SEP 50001 2019 offers, you know, only those will be offered after about a year from now – February 2020. And then the SEP 2012 and 2017 certificates will be withdrawn after August of 2021. So two and half years for that. So, steps to transition – get the standards – these are pending ANSI approval, we’re hoping these will be approved in a month or so. And you’ll be able to get the normative references today to look at those. Your auditors will need to take the training, and we would encourage end-users to take it too, to learn about the program.

So, in conclusion, SEP 50001 simplifies the SEP performance verifiers responsibility – they are no longer doing the scorecard. That all translates into lower cost, which is good for the customer, right? Greater flexibility – we’ll try to get more types of companies to produce … by multisite certification options, easier to work your VB or your ISO 50001 CB. And more importantly, maintaining your SEP is going to be more manageable by always having to be above zero with your continual energy performance improvement.

Your online training module gives an easier and less costly transition for certified personnel – don’t have to leave the office, cost is pretty reasonable. And separating the DOE recognition from the certification allows us as DOE to work with you, to improve the program on the recognition side without disrupting the ANSI-accredited process. And then we feel like the scorecard addresses a greater fairness in energy performance points. Your – the – we added the new credit for the advanced sensors and sub-metering. Also rewarded people for corporate reporting, working with suppliers, working with utilities, and gave increased enhanced credits for CHP and renewables, which we feel is important to reward those two things. And created some business opportunities for the VB’s by them being able to help in upgrading recognition and recertifying early, if the performance improves dramatically over the three year period.

All right, so these are the links that – they’re long, but these are the key links. We’re working to … some website design. The main link you’ll be able to go to is this one – I think by the end of the day that should redirect from the old site to the new SEP 50001 site, but I wanted to make sure I gave you these links in case this one wasn’t working.

All right, so we are ready to take questions, so, Pamela, are we going to open the lines up now, or just to the people who have questions, right?

Pamela: Yeah, there were a couple of questions to follow on from the 50001 Ready Navigator, and the availability of it in March, so, there were questions about whether the Navigator will be ready in March like you said, or if the update is planned for another day.

Paul: Well, the guidance document is March 1st – that’s going to be out for sure. You may – there may be a month or so in between when that’s available and the Navigator – it’s quite a bit of work to modify that, but in the meantime, let’s call the guidance document your cheat sheet to know what you need to do.

Holly: Paul, at present, Lawrence Berkeley and Georgia Tech are working on updating the Navigator to the 2018 standard.

Paul: There you go.

Holly: So it is in progress.

Paul: Good, excellent. Thanks, Holly. What other questions do we have?

Pamela: There were a couple of questions about the timeline for the SEP documents, and whether they’ll be ready and aligned with the transition for ISO 50001, and I believe you answered that question in one of the slides – that yes, the SEP documents will be ready in time to align with the ISO 50001 transition.

Paul: Yeah. And you’ll be able to read those today. We don’t expect a lot of modifications to them.

Pamela: And then Prasath had a question about ISO 50003, and I will unmute Prasath to clarify the question.

Paul: Okay.

Prasath: Yeah, is there going to be any changes in the 50003 standard?

Paul: Holly, what do you know about that?

Holly: The 50003 standard is currently undergoing revision – it will not be out for another two years. At the present time, the current version of 50003 is a normative reference in the SEP MSE standards.

Prasath: Okay.

Pamela: Thanks. The next question is about SEP 50001 and where it will be applicable – if it’s just in the United States, or if it can also apply, for example, in Latin America. And that question is from Laura.

Paul: Laura, that would – okay, so the way that could work, for any other country than the United States – and let me just say how we’re going to do it in Canada and Mexico, okay? So the way this would work is in the next, say, year or two, three – the existing SEP verification bodies would go in those countries and perform the audit like they would do in the United States, so they could offer that certification. Then DOE could work with any country, like we’re doing with Canada and Mexico, to give them the scorecard. And Canada and Mexico could modify that scorecard to create their own program tailored to their market. They – you know, maybe they want to do the scorecard a little different than we do it. But they could offer that recognition to beyond the certification, to the facility in that country.

So, in answer to your question, Latin America – I would probably talk to the government agency for that, and then – you know, certainly they could get – that facility could get SEP certified. The recognition part is where I would need to coordinate with the government agency to give them a toolkit, if you will, to do the recognition part. But it’s all feasible.

Laura: Okay, thank you.

Pamela: Thanks Laura. And Andrew had a similar question about how 50001 recognition – SEP 50001 recognition would work with Canadian sites. Did that answer your question, Andrew, or did you have it different?

Andrew: I think it would, but because we are moving to one common North American enterprise level, I just wonder if, you know, how under one enterprise level would be recognized, you know, in those two countries. But I think you kind of answered this question, Paul.

Paul: I just would say, Andrew, the more you encourage Natural Resources Canada, and in particular that Bob Frasier, my counterpart, knows that 3M wants to do this, that would help him, you know, move the program along with his management.

Andrew: We are doing that, so thank you Paul.

Paul: Okay.

Pamela: Thanks Andrew. The next question was about the declaration of the scorecard and whether an internal 50001 certified practitioner in EnMS could approve the declaration.

Paul: Yes.

Pamela: Okay, thanks. There’s a question about how many certified practitioners there are right now. Paul, do you know how many CP EnMS there are?

Paul: 100, 110 or so – about 100, 110.

Pamela: And regarding the CP EnMS training for 2019, there were questions about how to get the training for the update, and one of the detailed slides has those – that information for the CP EnMS, so Paul, maybe we can go to the CP EnMS slide quickly.

Paul: This one here?

Pamela: Yeah. And, I’m going to unmute Paul. Okay, the asker is no longer on the webinar.

Paul: Basically, the 50001 CP EnMS update for the ISO 50001 update is available already at that website, so you can go on there today and start that training. You know, self-paced, with knowledge checks, and you go through the process and get that certificate that you completed the training. Any other questions?

Pamela: And there’s another question on how soon companies can upgrade to the SEP 2019, and I believe you covered that in the proposed transition slide.

Paul: Yeah, I would say, it says worst case, it’s August of this year, but hopefully you can work with your verification body, and us, to go do that sooner. We’re waiting for the ANSI approval of the standards, again we’re hoping in the next month. We’re waiting – your verification body auditors need to take this training, the two trainings. This one’s already available, the SEP specialist will be available March 1st. We’re still working with ANAB on what the auditors need to do, but that’s, you know, that’s being worked. So, the answer is anytime, I would say, from April to August – somewhere in that period.

Pamela: Andrew had another follow-up question.

Andrew: Yeah, so say that our certification, SEP certification expires in April or May. Would we be able to switch over in that period, or would we be able to wait a month or two before the new system comes online, if it’s not ready by then?

Paul:  Let’s talk offline about that, yeah. That might be – that might be what’s called a – you know, ask the administrator for an exception.

Andrew: Okay, yeah, because we would like to evaluate that option. We do have five sites, I believe, or four sites, you know, getting ready for our certification.

Paul: Okay, we can talk about it.

Andrew: Okay, thank you.

Pamela: Steve had a question about energy intensity, and Steve, I’ve unmuted you so that you can ask the question.

Steve: Oh, okay, can you hear me? I’m out walking my dog –he couldn’t wait any longer. So, yeah – in the slides it talks about energy intensive industries and there’s some examples. That makes me very nervous, because one person can say, well, those industries listed are the only ones that are considered energy intensive, or it could be just chaos. So is there a way you’re going to be able to quantify that so people can say yes, I am, or no, I’m not, in that category?

Paul: Well, we have NAICS codes - I believe in the scorecards we have NAICS codes.

Steve: Oh okay.

Paul: So, if we don’t - if we don’t have them, we should put them in. Good point, Steve. I believe we do – I’ll take a look at that.

Steve: Yeah, otherwise – you can see the confusion, you know.

Paul: Absolutely, yeah. We, you know – Paul Schaffer and I talked about that – we actually – we had data that showed, you know, manufacturing energy consumption data by different NAICS codes, and that’s how we ended up, you know, picking the ones we did, but they were very specific numbers – NAICS codes numbers. So, yep – got to do that. But if it isn’t in there, we’ll modify the scorecard.

Pamela: The NAICS codes are in the scorecard, but the slide is just a very high-level summary and directs people to the scorecard for more details on each credit, and how they’re awarded. But it’s a good question, thanks Steve. I believe those are all the questions - does anyone have any additional points to raise? You can raise your hand or ask through the chat.

Paul: And my email is provided at the end, so – and everybody is going to get these slides again, probably within an hour or two, so if you have any other questions, fire them over at me.

Pamela: Okay, thanks Paul, and thank you everyone for joining this webinar. As Paul mentioned, the new website is being prepared and will be live through this short link on the online resources, so check out the draft documents and as Paul mentioned, he’s available for questions if you want to email him. We will be sending the slides to you after the meeting, and the recording and the slides will also be posted online at a later time, so thank you everyone. This concludes our webinar.

Paul: Thank you.