Employees That Pay You

Business operating costs go up and up. Possibly, your production and sales can no longer keep pace. Your first knee-jerk reaction is probably to cut back on overhead. Your next response is lying off some of staff, all the while still trying to meet the same production demands. You may go over your financial data, yearly, quarterly, maybe even more often. Finally you see it… your energy costs have been increasing for the past few years. But how do you fix a problem you seemingly have no control over? Well there may be a solution! I suggest that you hire a specialist. This will increase your just slightly but your specialist will more than save this offset many times over. Who is this Specialist?

A REM will also look at the tax and rebates available for reduction of utility consumption, they will work with the local utility company to find ways to raise money to fix problems, or help pay for the change out of old equipment. The REM is familiar with the State programs and stimulus money from the Federal Government. To help ensure that your REM provides these services, you can put them into his REM contract.

A REM is not a fix it all, but by doing audits they can identify the first low cost and high payback projects which will immediately reduce your energy costs. Then they move on to more long-term efficiency equipment. They are trained in lighting, heating, ventilating and air conditioning units. They know boiler systems, and chiller units. A REM does not replace the maintenance staff, but assist them in identifying poor efficiencies and qualities of equipment. REMs are often Certified Energy Managers, CEM, and have a background with a PE or Mechanical Engineering license.

Another resource a REM brings to the table; he assist the public relations department of your company. If you do not have a public relations division, the REM becomes one. Their job is to contact outside media outlets and notify them that XYZ Inc. has made certain changes to bring his carbon footprint to such and such a point. They ensure that the public knows how “Green” your company is becoming. They scrutinize your competitors and set goals to ahead of them, and present these changes to the authorities whether it is the State or Federal Government authorities.

The Energy Team.

Every company should have a “magic six” energy team ideally consisting of a Senior Manager, Accounting Department Representative, Maintenance Manager, the Energy Manager, a Utility Company Representative; (all 3 electric, gas and water) and of course the REM. They should meet often at first to set goals, and outline steps to meet those goals. They should be able to measure the progress completed from their efforts, and they should begin to see the downturn in their utility bills.

The REM’s job is to not only save money for the company, but also to assist the Mechanical Engineer get the best performance from the equipment so that facility occupants can feel refreshed and relaxed when in the environment they set up. This takes more than just turn off, turn on equipment depending on the season of the year. It also takes getting involved with “Earth Day”, “Green Day”, and possibly even the local schools. This positions your company as a leader in the community when it comes to making the smartest changes to become eco-friendly business.

Who needs to hire a REM?

The United States Government has several REMs as government contractors who are required by contract to save 3 times their salaries in obtainable and measurable energy savings. These REMs work on the military bases throughout the world all doing the same things at each base, and within their own group they have a powerful ‘reach-back’ program. Because of this, a REM who has an expertise in one field can assist the other REMs to make base-specific, appropriate recommendations. If you would like to see if you need a REM in your business do the self screening survey below.

1. Does your facility have a full-time energy manager?

[ ] YES

[ ] NO

2. Does your facility have a written energy management plan?

[ ] YES

[ ] NO

3. Do you have a reliable, timely and accurate means of measuring energy performance?

[ ] YES

[ ] NO

4. Are you on schedule for meeting your energy efficiency goals?

[ ] YES

[ ] NO

5. Have you completed comprehensive energy audits at your facilities?

[ ] YES

[ ] NO

6. Have you identified and prioritized your energy efficiency projects?

[ ] YES

[ ] NO

7. Do you have an annual budget for energy efficiency projects?

[ ] YES

[ ] NO

8. Have you installed significant energy efficiency projects already?

[ ] YES

[ ] NO

9. Do you have a preventive maintenance program?

[ ] YES

[ ] NO

10. Are you practicing reliability-centered maintenance?

[ ] YES

[ ] NO

11. Do you have a recycling program?

[ ] YES

[ ] NO

12. Do you regularly track and verify utility bills?

[ ] YES

[ ] NO

13. Have you entered into any energy savings performance contracts?

[ ] YES

[ ] NO

14. Has anyone onsite received an energy efficiency award?

[ ] YES

[ ] NO

15. Have you completed any renewable energy projects?

[ ] YES

[ ] NO

16. Do you have a peak electric load reduction program in place?

[ ] YES

[ ] NO

17. Do you have an emergency or contingency plan for energy shortages, price spikes, brownouts or blackouts?

[ ] YES

[ ] NO

18. Does your senior management support energy efficiency in general?

[ ] YES

[ ] NO

19. Would your senior management support an alternatively financed full-time person?

[ ] YES

[ ] NO

20. Does your contracting officer understand and support alternative methods of procuring energy efficiency?

[ ] YES

[ ] NO

Totals Yes: ________ No: ________

Self-screening survey

After taking the above survey address the questions you answered no to. (If all answers are yes I will address that in a moment.) What you want to do is try to bring those no’s up to a yes. Depending on how critical the question answered was a no, and how many no answers you may only need to contract the services of a REM to get you up to speed. This indicates your energy team is aware of their facility and they are working hard to run it at the best efficiency level they can given the age of the equipment and environment they have to work within. If you answered all of the questions yes, or even the majority, you may not need a REM on salary, however it is recommended that you bring in the REM or their company to conduct a full energy audit compared to a base year. It is like every once in a while bringing in an accountant CPA to certify your books, and validate that everything has been properly accounted for.

Who other than Military needs REMs? Actually large manufacturing facilities, Commercial Real Estate Owners, School Districts, Hotels and Motels or any other large energy using facility would all benefit from engaging the services of REM.

What else besides discovering places where we can conserve energy and capture those savings along with appropriate tax credits does a REM do? Let’s define REM this way:

What can the REM do for you?

The REM can provide a variety of services including:

Energy Awareness
- Training & Marketing of the Program
- O&M Improvements
  - Utility Rates & Billing Reviews
  - Low/No-Cost Efficiency Improvement Options
  - Project Facilitation
    - Finding funds – ECIP, Rebates, Grants, Alternative Financing, etc
    - Assistance with Alternatively Financed Projects
    - Performance Assurance of Alternatively Financed Projects
    - New Building Design Review
    - Program Management Support
    - Other Energy Program Support as Assigned

Where Do You Find A REM

Surprisingly, a good REM is not easy to find. You could use a head hunter to track one down, or you could go to companies like Sain Engineering Associates Inc. to help you with your REM problems. You should also go to the website for the FEMP program that links you to a booklet that describing the proper way to contract a REM.

Contracting for a Resource Efficiency

Manager

A Federal Energy Management

Program, Operations & Maintenance

Center of Excellence Guidebook

This book is the best place to begin your search for the REM that you need. Remember REMs have specialties. Some are familiar with Nuclear Power productions, Old Boiler Systems, co-generation, heat sink heat pumps, Lighting Control, Closed air handlers, and Chiller Towers.

You may need to call on companies like CEM of Phoenix to do a stage 1 to a full stage 3 Energy Audit and provide you with a book so you can get started with a REM, that will give you direction. This Energy Audit will pay for itself the first year if the suggestions are implemented.

Ideal candidates who need REMs are Hospitals, Multi Building owners (Federal buildings are under government mandate to meet certain goals) School Districts, Hotels, High rise buildings, manufacturing companies, and production distribution companies. In fact, REMs benefit just about everybody!

The Self Screening Survey taken from FEMP Federal Energy Management Program, Contracting for a Resource Efficiency Manager • Page 4

Taken from the Web Site of: Sain Engineering Associates Inc. Under REMS

Contracting for a Resource Manager on line web location: www1.eere.energy.gov/femp/pdfs/rem_guidebook.pdf -

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