PROPOSAL FOR DEVELOPMENT OF GRASS ROOTS GROCERY SUSTAINABLE ENERGY MANAGEMENT PLAN
November 15, 2016
Prepared By: Justin Mason on behalf of G3 Consulting
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Grass Roots Grocery SEMP Development
EXECUTIVE SUMMARY Grass Roots Grocery is quickly gaining a reputation for selling first-rate natural and
organic food sourced from sustainable farmers. Grass Roots has expressed a desire to
extend sustainability into all aspects of their operations. Specifically, they aim to target
climate change by reducing their carbon footprint by reducing energy consumption. To
help achieve this goal, Grass Roots has requested proposals for the development of a
Strategic Energy Management Plan (SEMP). G3 Consulting is pleased to submit this
proposal outlining our methodology to develop a customized SEMP and showcasing our
understanding of energy management.
The G3 team will get to know your organization in detail in order to develop a holistic
energy management plan tailored to Grass Roots’ needs. To do this we will:
• Engage executives to determine the company’s vision for energy management. • Study market trends and the political landscape to understand the external
drivers influencing energy consumption and utility costs. • Meet with stakeholders to determine barriers and benefits to implementing
energy conservation measures so we that can leverage opportunities and plan for solutions.
• Study existing policies and procedures to identify gaps that may prevent effective implementation of the SEMP.
• Investigate buildings to find the most impactful and cost-effective energy conservation measures.
• Get to know your financial drivers to ensure our proposals meet your hurdle rates and other financial constraints.
Understanding this information will enhance G3’s ability to facilitate goal development
and to identify a range of effective energy conservation measures (ECMs) from low-cost
retrofits, high impact investments, operational integration, and behavioral change
campaigns.
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Grass Roots Grocery SEMP Development
The result will be a customized Strategic Energy Management Plan that is tailored to
match your needs. The following proposal will demonstrate G3’s expertise in
developing strategic plans that benefit the client by providing a roadmap to reducing
energy consumption and greenhouse gas emissions.
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Grass Roots Grocery SEMP Development
TABLE OF CONTENTS
TABLE OF FIGURES Figure 1 - SEMP Development Process 2 ........................................................................................Figure 2 - ECM Development 13 ......................................................................................................Figure 3 - SEMP Implementation Scope 14 .....................................................................................
EXECUTIVE SUMMARY i ................................................................................................................
1. Project Background 1 .................................................................................................................
2. Project Scope 2 ..........................................................................................................................
2.1. Deliverables 3 ......................................................................................................................
2.2. Exclusions 3 ........................................................................................................................
3. Project Methodology 3 ................................................................................................................3.1. Situation Analysis 4 ..............................................................................................................
3.1.1. Organizational Review and Vision Development 4 ........................................................
3.1.2. Project Kickoff Workshop 5 ............................................................................................
3.1.3. Technical Review 7 .........................................................................................................3.2. Strategy Development 11 .....................................................................................................
3.2.1. Core Activities and Goals Workshop 11 .........................................................................
3.2.2. Identify and Develop Energy Conservation Measures 12 .............................................
4. Optional Services: Implementation and Progress Monitoring 15................................................
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1. PROJECT BACKGROUND Grass Roots Grocery has identified climate change as a real concern to management,
employees, and their customers and is interested in developing a five-year Strategic
Energy Management Plan (SEMP) to guide initiatives surrounding sustainability and
energy management. Implementing a SEMP will provide direction for energy
management initiatives and help the company to save money and reduce its carbon
footprint. This document outlines G3’s proposed process and methodologies to develop
a comprehensive SEMP for Grass Roots Grocery.
With rapid expansion across BC and Alberta, and a newly formed HR department and
Green Team, Grass Roots Grocery is well-situated to develop a strategic plan for energy
management. Developing a SEMP now, while the company’s policies and practices are
in the early stages of growth will help Grass Roots Grocery to establish energy
management as a key pillar of the company’s organizational culture. A SEMP can also
serve as a marketing platform to engage your existing environmentally-conscious
customer base as well as to attract new customers.
According to Natural Resources Canada, retail grocery stores are “among the most
energy-intensive commercial buildings” and that “$1 in energy savings is equivalent to
$59 in increased sales.” This research shows that even a small reduction in energy 1
consumption can have a big impact on a grocery store’s bottom line.
Another driver of energy management is energy security. Utility prices are projected to
rise significantly in both BC and Alberta over the next five years. The introduction of the
http://www.nrcan.gc.ca/energy/efficiency/buildings/capacity-building-resources/newsletter/17356) 1
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carbon tax in Alberta is expected to result in an electricity price increase of $10/MWh in
the next year . Significant price increases are also projected in BC. A well-developed 2
SEMP will strengthen your organization’s resilience against increasing and
unpredictable energy costs.
2. PROJECT SCOPE The scope of this project comprises the development of a SEMP, which will holistically
address energy and sustainability management within Grass Roots Grocery’s
organization. The SEMP will include technical, behavioral, and organizational activities
which will enable the company to reach its overall energy management vision.
To develop a comprehensive SEMP that aligns with Grass Roots Grocery’s vision and
culture, a situation analysis will be performed which will evaluate all existing aspects of
the organization. G3 will work with stakeholders to develop vision, goals, and targets
which will be integrated into the SEMP, and form the basis for the selection of proposed
energy conservation measures, behavioral changes, and organizational changes (see
Figure 1).
http://www.cbc.ca/news/canada/calgary/alberta-electricity-aeso-firstenergy-climate-1.3536363 2
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Figure 1 - SEMP Development Process (Alexandre Herbert, CESA 5850 BCIT 2016)
Refer to Section 3 Project Methodology for a detailed description of G3’s proposed
project execution.
2.1. DELIVERABLES
1. Building energy benchmarks & energy use index (EUI): G3 will use Energy Star Portfolio Manager to develop an EUI for each of Grass Roots Grocery’s buildings.
2. ASHRAE Level 1 energy audit report for each of Grass Roots Grocery’s buildings.
3. 99% draft SEMP for review and approval by senior management. 4. An approved, detailed five-year SEMP incorporating any changes requested
during the 99% review.
2.2. EXCLUSIONS
1. Detailed development and design of energy conservation projects. The delivered SEMP will include opportunities that have been identified as beneficial to the organization with class D cost estimates only.
2. Development of specific organizational policies to facilitate organizational and behavioral change.
3. PROJECT METHODOLOGY Sustainable energy management goes beyond commissioning ad hoc energy audits
and picking ‘low hanging fruit’ (even if it is organic!). We believe that by fostering a
continuous-improvement approach, organizations can successfully integrate energy
management into the very core of their business practices. This holistic approach must
be built upon a comprehensive understanding of an organization’s present state, in
order to identify areas where improvements and changes could lead to reduced energy
consumption that is sustained over time. Our team has the experience and expertise to
facilitate an effective situation analysis and develop a comprehensive SEMP which
incorporates technical, behavioral, and organizational aspects. In short, we have a well-
equipped tool box and we will work with you to determine the best tools for the job.
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3.1. SITUATION ANALYSIS
Before identifying measures to reduce energy consumption and GHG emissions, G3 will
perform a situation analysis. This process will provide G3 with an in-depth
understanding of Grass Roots Grocery’s existing resources, policies and operational
attitudes prior to the development of energy conservation measures. Applying this
knowledge helps to align any proposed energy conservation activities with your
company’s overall vision.
The situational analysis is comprised of two key components: technical and
organizational. G3’s proposed process for performing this analysis is described in detail
below.
3.1.1. Organizational Review and Vision Development
A preliminary policy review will be performed immediately upon project award. This
review will provide G3 with a better understanding of Grass Roots Grocery’s operations
and serve as G3’s starting point to develop the agenda for a project kickoff workshop.
A review of initiatives already implemented by Grass Roots Grocery’s competition will
also be performed to determine the overall direction of the organic retail grocery market
and to identify illustrative examples of initiatives that have been supported by
consumers sharing this particular market space. One such example is Greens Organic
+ Market who are participating in Metro Vancouver’s Zero Waste Challenge with the
objective of increasing the diversion of solid waste from the landfill. Another trend is
grocery stores expanding their local food selections to support the local agricultural
community as well as to supply products with less-intensive GHG emissions.
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To complete a comprehensive organizational review, G3 will require the following
minimum documentation. G3 will review these documents immediately on project
award. Additional documentation and information may be requested as the review
progresses.
1. Corporate Vision, Mission Statement and Values documents
2. Company construction and operations policies, and internal company standards.
3. Procurement policies
4. Financial policies
5. Job descriptions
The preliminary policy review will prepare G3 to conduct the project kickoff workshop
which will further develop our knowledge of Grass Roots Grocery’s existing operations
and corporate culture.
3.1.2. Project Kickoff Workshop
Two weeks after project award, G3 will hold a meeting with Grass Roots’ executive.
This project kickoff workshop will comprise four main topics: an executive questionnaire,
vision development, stakeholder review and financial constraints review. These topics
are discussed in more detail below.
To help Grass Roots Grocery staff to prepare for this meeting, and to ensure an efficient
use of time, G3 will provide details on any required information one week prior to the
meeting date.
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3.1.2.1. Executive Questionnaire
An energy management and sustainability questionnaire will help Grass Roots Grocery
to identify the highest priority areas in energy management and sustainability and to
provide a focus for the development of the company’s SEMP. It will also help to guide
the development of your company’s energy management vision and provide G3 with a
better understanding of Grass Roots Grocery’s corporate culture (e.g. risk tolerance,
corporate strategic plan and priorities, stakeholders, corporate social responsibility, etc.)
3.1.2.2. Vision Development
Developing an energy management vision is fundamental to creating an energy strategy
for the organization. G3 will facilitate the development of the company’s energy
management and sustainability vision. This vision will help to guide G3’s focus during
the analysis of Grass Roots Grocery’s present state, and will form the foundation for
energy management goal development tailored to Grass Roots Grocery’s specific
needs for inclusion in the SEMP. It will reflect Grass Roots Grocery’s core values and
outline at a high level where the executive sees sustainability and energy management
within the organization at the end of the implementation of the five-year SEMP.
3.1.2.3. Stakeholder Review
A facilitated review will be performed with the company’s executive to identify Grass
Roots Grocery’s internal and external stakeholders. This review will help G3 to
understand each stakeholder’s roles and responsibilities, including how they influence
company operations and culture. Stakeholder identification is important to ensure all
parties who have an influence on financial or policy decisions, and company culture, are
included in the SEMP development, and that proposed energy conservation measures
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will not have undesireable impacts on the stakeholders. When stakeholders see value in
your company’s SEMP, they are more likely to do their part to support your objectives
whether as energy consumers, facility operators, or decision makers.
3.1.2.4. Financial Constraints Review
It is important to determine the level of financial investment Grass Roots Grocery is
willing to make in sustainability and energy management prior to identifying Energy
conservation measures for inclusion in the SEMP. Some of the financial constraints that
must be identified to ensure the development of a feasible SEMP include:
1. Marketing value of ‘Green’ Projects. Is funding available for visible ‘green’ projects from the company’s marketing budget?
2. Acceptable ROI of energy savings projects. Is Grass Roots willing to accept a longer ROI in the effort to address climate change and promote sustainability?
3. Annual capital budgets. How much is Grass Roots willing to spend to replace and/or upgrade equipment and long-term assets?
4. Energy efficiency project budgets. Has Grass Roots Grocery already allocated a budget to energy efficiency projects such as energy audits, capital projects or building retro-commissioning?
5. Maintenance budget. Does Grass Roots’ budget already include regular preventative maintenance measures and inspection of their systems?
3.1.3. Technical Review
A technical review of Grass Root’s facilities will provide quantitative information on the
current state of energy consumption and GHG production associated with your
buildings. It will also serve as the starting point for developing technical energy
conservation measures for inclusion in the SEMP.
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To perform the technical review of our facilities, G3 will require the following
documentation from Grass Roots Grocery. Additional documentation and information
may be requested as the review progresses.
1. Electrical, Mechanical, and Architectural drawings of buildings (where available).
2. Utility bills for a minimum of the past 12 months at each location. If possible, utility bills for the past 24 months is preferable for a more accurate analysis.
3. Equipment inventories for all buildings.
4. Standard operating procedures for operations and maintenance.
5. Existing technical standards specific to Grass Roots Grocery.
Details of the technical review that G3 proposes to perform are discussed below.
3.1.3.1. Utility Rate Review
G3 will examine the rate structure of Grass Roots Grocery’s electrical and natural gas
utility bills in each province, and use this information in combination with projected rate
increases when determining the projected payback of any energy conservation
measures included in the SEMP. The impact of fuel costs on the price of products due
to an increase in transport costs will also be considered. To determine the impact of
these factors, G3 will require authorization to discuss Grass Roots Grocery’s energy
billing directly with their utility providers.
3.1.3.2. Building and Equipment Inventory Review
Grass Roots Grocery has indicated that the company owns all buildings and that there
are accurate equipment inventories for each location. These inventories will be
reviewed in detail to identify high-energy consuming equipment, with particular attention
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on high-energy consuming equipment that is common to all facilities. Any locations with
insufficient inventory information will be flagged as requiring further assessment.
3.1.3.3. Energy Benchmarking
The adage “you can’t manage what you don’t measure” is especially true in energy
management. An Energy Star Portfolio Manager account will be developed for Grass
Roots Grocery. This is an industry standard tool used to benchmark building energy
consumption. It can help identify Grass Roots Grocery’s highest energy-intensive
buildings and prioritize locations for the implementation of energy management
measures. Energy benchmarking is also necessary to enable quantitative monitoring of
the progress and success of efficiency measures post-implementation.
3.1.3.4. Energy Audits
ASHRAE Level 1 (walk-through) energy audits will be performed at each of Grass Roots
Grocery’s locations using existing equipment inventories. G3 will require the assistance
of a building maintenance staff member who is knowledgeable with the building
operation at each location during the audit.
Prior to attending each site, G3 will review equipment inventories and utility
consumption data for the location. It is assumed that Grass Roots Grocery retail stores
are fitted with smart meters with electrical demand and consumption data available in at
least 1-hour increments. For any locations which do not have this data available,
temporary metering may be recommended once the walk-through audit has been
completed and a building energy use index has been determined.
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The information collected during the energy audits will help to identify obvious sources
of energy waste and inefficiency, such as equipment that is found to be operating
unnecessarily or building areas that are overlit. Depending on the results of the walk
through audits, a more comprehensive ASHRAE Level 2 audit may be recommended
for some locations.
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3.2. STRATEGY DEVELOPMENT
With the information obtained through the situation analysis and with a concrete vision
established, Grass Roots Grocery will be well positioned to build a solid SEMP. The plan
will provide a detailed roadmap on how to achieve the company’s energy management
vision.
3.2.1. Core Activities and Goals Workshop
G3 will facilitate a workshop focusing on defining core activities and goals which target
the realization of your energy management vision. A cross-section of stakeholders,
which could include executives, store managers, green teams, and operations, should
participate in the workshop. Including representatives from different business areas
improves coordination, leads to more informed decisions, helps to identify benefits and
barriers, as well as generally fosters trust in the process.
Core activities provide broad categories for the development of energy conservation
measures, and allow for appropriate resources to be allocated to each. The workshop
will aim to define the core activities and to understand the level of commitment available
for each. These categories may include technical, behavioral, and operational
measures.
Once the core activities are agreed upon, the workshop attendees will participate in
defining specific goals. Goals are necessary to quantify progress towards attaining the
vision. G3 endeavors to develop “SMART Goals” which are specific, measurable,
attainable, relevant, and time bound. Voluntary energy management and sustainability
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certifications may also provide a starting point for the goals development process.
Some examples of these certifications and programs include:
1. LEED
2. BOMA BEST
3. Grocery Stewardship Certification
4. Zero Waste Program
A fundamental part of the goal development process is establishing key performance
indicators (KPI) which can be used to identify Grass Roots Grocery’s best and worst
performing buildings. These KPIs will also be used to monitor progress, and compare
energy performance with competitors. KPIs for Grass Roots could include energy
intensity, carbon intensity, reduced utility bills, customer satisfaction, employee
wellness, or the marketing value gained through energy initiatives. The workshop will
provide a forum to consult with stakeholders to understand which reporting metrics have
the potential to provide the greatest benefit for your organization.
The workshop will also identify how progress towards goals will be monitored and
communicated throughout the life of the plan.
3.2.2. Identify and Develop Energy Conservation Measures
Upon completion of the situation analysis and goal development, G3 will begin to
develop a list of energy conservation measures (ECM) which will help Grass Roots
Grocery to achieve its goals. Class D cost estimates will be developed for each
recommended ECM.
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The proposed ECMs will be separated into three categories: technical, organizational,
and behavioral. Evaluation of ECMs will be performed using a triple bottom line
framework, which considers social and environmental factors such as greenhouse gas
reduction, solid waste and food waste reduction, as well as the financial impact of
potential measures. G3 will work with Grass Roots Grocery to determine how much
weight the company places on the non-financial portions of this evaluation process.
We have created an infographic (see Figure 2 below) to highlight some illustrative
examples of technical, organizational and behavioral ECMs that may be considered for
Grass Roots Grocery, depending upon the outcome of the situation analysis and
strategy development.
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4. OPTIONAL SERVICES: IMPLEMENTATION AND PROGRESS MONITORING
Writing a SEMP does not guarantee that the strategies and measures included in the
document will be implemented. Progress monitoring is essential to ensuring that
proposed measures are implemented and that the SEMP stays on track. G3
recommends conducting a formal SEMP progress update annually, along with semi-
annual reviews to resolve any roadblocks as soon as possible. G3 will work with Grass
Roots Grocery to identify metrics that are meaningful to your organization and that can
be used as the basis for ongoing progress monitoring and reporting.
A big part of what makes G3 the top choice for organizations in Western Canada when
they decide to become more energy efficient is the option to have our team help them
successfully implement the actions identified in their strategic plans. Once our team of
consultants has developed a SEMP for Grass Roots, we can work with you to help
implement the action items that have been identified in the plan. We look forward to the
opportunity to work closely with your company to assist with the initiation and
implementation of projects.
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Figure 3 - SEMP Implementation Scope (Alexandre Herbert, CESA 5850 BCIT 2016)
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