Emissions Reduction Planning Toolkit | Better Buildings Initiative

To better assist buildings and industry in organizing and implementing an Emissions Reduction Plan (ERP), the U.S. Department of Energy (DOE) developed a set of essential tools and resources, collectively known as the ERP toolkit. This toolkit, comprised of the resources below, provides organizations that aim to reduce its emissions with tools and guidance on developing an ERP and strategies for implementation and tracking.

This toolkit is designed to help organizations develop an ERP that is consistent with the Framework for Emissions Reduction Planning. The Framework is a resource developed by DOE to help organizations create a specific, actionable plan to reduce Scope 1 and Scope 2 emissions. The Framework defines five Milestones, depicted below, for developing an ERP and provides guidance for ongoing implementation of the plan. The ERP toolkit supports operationalizing the Framework.

erp milestones

Below, the ERP Toolkit contains an overview of each milestone within the framework, as well as a curated list of resources that can support an organization through specific tasks.

While the Framework has a unified approach to supporting organizations to reduce their emissions through shared milestones, there are some sector-specific differences. The result is a Framework developed for Building Portfolios and Industrial Portfolios. In this toolkit, Milestones 1, 2, and 5 are combined for both buildings and industrial portfolios. But Milestones 3 and 4, where there are more significant differences based on what type of portfolio is being considered, the tasks are organized by sector. At the end of each milestone, a collection of resources designed to support buildings, industrial or both portfolios is included.

For Industrial portfolios, the Industrial ERP Exercise Book contains a collection of worksheets that are referenced throughout this toolkit. These worksheets can be thought of as primers that introduce and identify which planning steps require additional resources and attention from your organization to be successful in achieving ambitious emission reduction goals.

This toolkit is not intended to be prescriptive, and the planning process could look quite different depending on many characteristics of an organization. This toolkit will help organize your thoughts and map out your organization’s existing emission reduction planning efforts.

Milestone 1: Establish Inventory and Scope of Work

The purpose of this milestone is to understand the major sources of an organization’s emissions and to define the scope of work for the emissions reduction planning process itself. Tasks in this milestone include engaging stakeholders, developing a emissions inventory management plan, and setting a reduction target. Developing a scope of work for the ERP and defining evaluation criteria for assessing scenarios are also critical steps in Milestone 1.

IDENTIFY AND ENGAGE STAKEHOLDERS

When identifying stakeholders to engage, consider who will be needed to support the planning effort, approve the ERP, and support plan implementation. Stakeholders should develop a relationship early in the process and define expectations for future involvement.

ESTABLISH A GHG INVENTORY MANAGEMENT PLANT

Develop and document standardized data management processes and methods to collect, quantify, verify, and roll up emissions data from the facility level to the portfolio level to create a GHG inventory.

Inventories should follow the Greenhouse Gas Protocol and cover all significant sources of GHG emissions.

Determine Organizational and Operational Boundaries
Organizational boundaries determine which entities (e.g., subsidiaries, joint ventures, partnerships) and assets (e.g., facilities, vehicles) will be included in the scope 1 and scope 2 GHG emissions inventory. Operational boundaries define the scope of direct and indirect emissions for operations that fall within a company’s established organizational boundary.
Quantify Scope 1 & 2 Emissions
An accurate GHG inventory is a crucial component of an ERP. At a minimum, inventories must include all direct emissions from sources owned or operated by the organization, such as boilers, furnaces, and vehicles (Scope 1) as well as indirect emissions associated with purchased energy such as electricity (Scope 2).
Develop Inventory Management Plan
An inventory management plan describes an organization's process for completing a high-quality, corporate-wide greenhouse gas (GHG) inventory. Organizations use an inventory management plan to institutionalize a process for collecting, calculating, and maintaining GHG data.

SET GHG EMISSIONS REDUCTION TARGETS

core graphic Publicly reported GHG targets provide transparency, accountability, and credibility to emissions reduction efforts. They also help organizations accurately measure and quantify emissions reductions.

GHG reduction targets should be defined relative to a baseline year representing typical operations, with clear deadlines. Organizations may set multiple targets on different time scales – long-term, ambitious goals (e.g. net-zero emissions by 2050) combined with interim goals on shorter time scales (e.g. 50% reduction by 2030).

DEFINE GHG EMISSIONS REDUCTION PLAN SCOPE OF WORK

Define the scope of work for the ERP development process and outline what tasks will be included in an ERP. Plan and assign staff time and financial resources required to complete these tasks. If sufficient in-house expertise is not available, plans for identifying, vetting, and hiring external contractors may be necessary as well.

Key elements of an ERP are shown in the graphic to the right. Some are core elements of an ERP that all industrial organizations should include. Others are optional, but recommended to be included where applicable, depending on organizational characteristics and priorities.

DEFINE EVALUATION CRITERIA

Working with internal and external stakeholders, define specific evaluation criteria to assess and select projects and scenarios to reduce GHG emissions.

In general, the emissions reduction potential of projects will be the primary metric considered by plan developers; functionally, it is the metric that defines success or failure of the plan. However, other considerations will be important as well, depending on organizational priorities.

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TOOLS AND RESOURCES

For more information about Milestone 1 for Buildings, click here. For Industrial, click here.

Resource Title	Description
Industrial Resources
Milestone 1 Industrial Exercises	These exercises can be used by industrial organizations to introduce and support development of the ERP tasks covered in Milestone 1.
DOE VERIFI (download or online)	Organizations can use this tool to track utility data (Electric, natural gas, etc.) at a facility and aggregate to an organizational level. This tool allows for easy quantification of Scope 1 and Scope 2 emissions including mobile and fugitive emissions. The tool uses the EPA eGRID Subregion dataset and the residual mix factors are from Green-e® Residual Mix Emissions Rate. See additional capabilities in Milestone 2 Resources section below.
Buildings and Industrial Resources
Carbon Emissions Calculator	Useful calculator for quantifying emissions potential for one-off sources using a variety of fuels. It quantifies emission reduction if switching fuels or changing consumption levels. Emission Output Rates were obtained from the EPA and the Electronic Code of Federal Regulations.
Greenhouse Gas Protocol	This resource has standards, tools, and training to help organizations account for and report emissions.
Science Based Targets Initiative	This corporate climate action organization provides guidance to develop GHG emissions reduction targets.
EPA Center for Corporate Climate Leadership	This resource center helps organizations of all sizes measure and manage GHG emissions, providing technical tools, ground-tested guidance, and educational resources.
Buildings Resources
Engaging Stakeholders in Reducing Carbon	This DOE Better Buildings resource hub includes a library of resources on how and when to engage critical stakeholders throughout planning and execution.

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Milestone 2: Categorize Portfolio

The purpose of this milestone is to identify key characteristics that can be used to categorize facilities and processes within a portfolio, including identifying those with the highest potential to reduce GHG emissions.

SELECT KEY CHARACTERISTICS OF THE PORTFOLIO

Determine distinguishing features of the facilities and processes within your portfolio to help you select key characteristics. After collecting this information, list and sort facilities and processes by these characteristics to help you uncover commonalities across the portfolio and prioritize action. Note that it is always important to identify the facilities and processes that account for a significant portion of the total portfolio GHG emissions. Examples of key characteristics for categorization include: building type, HVAC system type, climate zone, or for industrial, individual, discrete pieces of equipment, such as a boiler, or processes and equipment that, while individually small, are distributed widely enough to be significant, such as refrigerant leaks from chillers or compressed air.

BENCHMARK

Benchmarking can be used to identify best practices and ideal operating conditions as well as opportunities for performance improvement. Benchmark facilities and processes within the same category – or, if information is limited, benchmark against previous performance.

SELECT FACILITIES OR PROCESSES FOR FURTHER ANALYSIS

Organizations will need to decide which facilities and processes in the portfolio on which to focus. By selecting facilities and processes for further study that represent the different categories in the portfolio, the same strategies may be scaled across the portfolio to decarbonize similar facilities and processes. Organizations may prioritize based on significant GHG emitters (SGEs), cost, location, ease of technology piloting, scalability, or other characteristics.

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TOOLS AND RESOURCES

For more information about Milestone 2 for Buildings, click here. For Industrial, click here.

Resource Title	Description
Industrial Resources
Milestone 2 Industrial Exercises	These exercises can be used by industrial organizations to introduce and support development of the ERP tasks covered in Milestone 2.
DOE VERIFI (download or online)	Once facilities have been entered into VERIFI in Milestone 1 this tool can be utilized to identify facilities with the highest GHG emissions for prioritization.
Plant Carbon Footprint & Assessment Tool (Excel tool for download)	This tool allows a user to enter facility level energy consumption and map the individual systems with the highest emissions. The user can build an inventory for each system based on either consumption or nameplate data. The resulting combination of the inventory and facility consumption data will highlight the systems that must be prioritized. See additional capabilities in Milestone 3 Resources section below.
IEDO Tip Sheets by System	Two-page tip sheets provide advice on how to quickly make improvements. Organizations can baseline current system operation and performance.
Buildings and Industrial Resources
ENERGY STAR® Portfolio Manager®	This resource helps organizations benchmark energy performance, prioritize efficiency measures, and verify energy reductions for commercial buildings.

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Building Portfolios

In this milestone, the organization will move forward with GHG emissions reduction audits on the representative buildings selected in Milestone 2 and assess additional portfolio level policies and requirements. Emissions reduction audits allow organizations to select ERMs to implement immediately, as well as to define measures to scale across similar buildings in their portfolio.

BUILDING-LEVEL GHG EMISSIONS REDUCTION AUDITS

The figure below summarizes the different tasks within a GHG Emissions Reduction Audit. The following Better Buildings resources include guidance and a template that details recommended services and deliverables for a building-level GHG emissions reduction audit for operational Scope 1 and 2 GHG emissions.

Steps to Building Level GHG Reduction Audits

Emissions reduction audit results in measures that can be combined to meet the building’s GHG reduction target, going beyond a typical energy audit to include:

Energy efficiency
Electrification
Fugitive emissions (e.g., mitigating refrigerant leaks; use of low-GWP refrigerants)
Onsite renewable energy

PORTFOLIO-LEVEL GHG EMISSIONS REDUCTION ASSESSMENTS

In addition to building-level audits, an organization may complete assessments to define measures that apply to multiple buildings or the entire portfolio. These may become standard practices through changes to portfolio-level policies and requirements. Common portfolio-level measures include:

Renovation/refresh requirements and new construction specifications
Green power procurement
Vehicle fleet electrification studies

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Industrial Portfolios

Through this milestone, an organization completes both facility-level and portfolio-level emissions reduction assessments to identify and quantify projects and operational practices to reduce emissions. This two-fold approach provides broad coverage of the variety of different strategies organizations may use to achieve their emissions reduction goals. These ERMs typically fall under four pillars, Energy Efficiency, Electrification, Low-carbon Fuels, Feedstocks, and Energy Sources (LCFFES), and Carbon Capture, Utilization, and Sequestration (CCUS).

FACILITY-LEVEL GHG EMISSIONS REDUCTION ASSESSMENTS

Conducting facility-level assessments allows organizations to gain insight into individual facilities’ GHG emissions and identify, quantify, and prioritize emission reduction measures (ERMs). The figure below outlines the process of conducting a facility-level GHG reduction assessment. Such an assessment should go beyond a traditional energy audit by identifying many types of ERMs including electrification, LCFFES (e.g. hydrogen, biogas), and fugitive emissions reduction, not just energy efficiency. Furthermore, potential ERMs should generally be assessed on emission reduction potential, in addition to energy and cost savings.

PORTFOLIO-LEVEL GHG EMISSIONS REDUCTION ASSESSMENTS

Portfolio-level GHG emissions reduction assessments allow organizations to identify, quantify, and prioritize ERMs that are implemented, led, and/or approved at the portfolio level, such as strategic energy management, clean energy procurement, demand management/load flexibility, circular economy strategies, or strategic business changes. Effective portfolio-level emissions reduction requires coordination and collaboration across multiple stakeholders, including facilities, regional suppliers, and utilities.

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TOOLS AND RESOURCES

For more information about Milestone 3 for Buildings, click here. For Industrial, click here.

Tool	Description
Buildings Resources
Low Carbon Strategies Toolkit	Low Carbon Technology Strategies are currently available for 10 building types, with a supplement for commercial kitchen equipment. Recommendations are grouped by technology, with recommended actions categorized as either simple, intermediate, or advanced.
GHG Emissions Reduction Audit: A Checklist for Owners	This guidance and accompanying checklist detail recommended services and deliverables for a building-level greenhouse gas (GHG) emissions reduction audit focused on Scope 1 and 2 GHG emissions.
GHG Emissions Reduction Audit Scope of Work Template	This Word template is intended to be used by building owners and operators to develop a scope of work for a building-level Greenhouse Gas (GHG) Emissions Reduction Audit for operational Scope 1 and 2 GHG emissions.
Buildings and Industrial Resources
Electrification Impact Calculator	Users can quickly explore energy, cost, and carbon impact of an electrification project. The tool also helps quantify the increase in electric peak load due to electrification.
Low Carbon Pilot Action Plan Templates	Building and Plant owners can use these example templates to outline and prioritize efficiency projects at a specific site or facility.
Electrification Impact Calculator	User can quickly explore energy, cost, and carbon impact of an electrification project. The tool also helps quantify increase in electric peak load due to electrification. Emission Output Rates were obtained from the EPA and the Electronic Code of Federal Regulations.
Renewable Energy Resources Hub	This Better Buildings hub includes a collection of resources that help navigate alternative energy solutions and future energy options and address common challenges.
U.S. DOE's Audit Template	This web-based tool provides a standard, data-driven framework for collecting, managing, and reporting building asset data (asset, audit, and retro-commissioning).
REopt®	The REopt® web tool allows users to evaluate the economic viability of distributed PV, wind, battery storage, combined heat and power (CHP), geothermal heat pumps (GHP), thermal energy storage and more.
Onsite Energy Technical Assistance Partnerships	The U.S. Department of Energy's (DOE) Onsite Energy Program provides technical assistance, market analysis, and best practices to help industrial facilities and other large energy users increase the adoption of onsite clean energy technologies.
Industrial Resources
Milestone 3 Industrial Exercises	These exercises can be used by industrial organizations to introduce and support development of the ERP tasks covered in Milestone 3.
MEASUR (download or online)	This tool allows users to quantify energy and emissions reduction by performing deep-dive analysis at an equipment level and develop each ERM. Users can quantify emissions reduction and return on investments from their own energy assessments and make a business case for these projects.
Industrial Assessment Centers	Small- and medium-sized manufacturers may be eligible to receive a no-cost assessment.

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Milestone 4: Develop Scenarios

After identifying and assessing ERMs in Milestone 3, an organization can now combine, scale, and phase ERMs across the portfolio to create emissions reduction scenarios. By developing and analyzing multiple scenarios (as illustrated in the figure below), an organization can compare the costs and benefits of each scenario and select a pathway that best meets their needs.

See below for details on sector-specific guidance for both buildings and industrial plants.

Emissions Reduction Target Graph

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Building Portfolios

To develop multiple scenarios and evaluate their alignment with the organization’s needs, different technical strategies can be tested such as the level of energy efficiency, electrification, and reliance on renewables.

DEVELOP SCENARIO INPUTS

Inputs to scenarios include building-level measure packages and portfolio-level policies (both defined in Milestone 3), as well as how measures are phased over time and estimated changes to the portfolio size. Organizations can consider other inputs to their scenarios depending on specific needs.

APPLY ERMs TO THE PORTFOLIO

The results of the building-level audits should be extrapolated during this phase to estimate impacts across the portfolio. Portfolio-level assessments can then be layered into savings projections.

DEVELOP IMPLEMENTATION PHASING

One of the most important variables in GHG emissions reduction planning is how quickly measures will be implemented across the portfolio. Pre-planning and portfolio-level policies will ensure that the low-emission, best option retrofits are most likely to be chosen by staff.

ESTIMATE CHANGES IN PORTFOLIO SIZE

The amount of growth or contraction of the portfolio floor area is another key input into the emission reduction scenario analysis. Consider developing net zero energy and all electric specifications for new construction to avoid the need to mitigate these emissions again in the future.

COMBINE INPUTS TO DEVELOP MULTIPLE SCENARIOS

To develop one or more scenarios that achieve deep emissions reduction, the previously described scenario inputs can be combined and phased. Emissions reduction estimates may be scaled through category-specific measures or portfolio-level measures. There will likely be more than one viable technical approach to efficiency, and the scenario development process allows for a life cycle cost comparison.

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Industrial Portfolios

Scenario development plays a crucial role in determining the overall impact on an organization’s emissions.

ESTABLISH SCENARIO PARAMETERS

Determine the scope (I.e., which emissions sources to include), GHG targets and timelines, and descriptions/goals of various scenarios. These scenarios will depend on key parameters that are unique to your organization. It’s necessary to evaluate multiple scenarios that consider uncertainty in terms of a range of potential outcomes, such as penetration of renewables, availability of low-carbon fuels, and other key parameters.

ESTIMATE FUTURE PORTFOLIO CHANGES

Project future business developments (acquisitions, sales, or expansions) and changes to production rates and product mix to ensure a viable path to achieving GHG goals alongside organizational growth.

REVIEW EMISSIONS REDUCTION MEASURES

Review the opportunities identified in facility- and portfolio-level assessments. Collect data on technology/equipment availability, deployment year, cost, implementation effort, etc. The phasing of ERMs may depend on what scenario is being evaluated.

DEFINE SCENARIOS

Develop several distinct scenarios with different combinations and phasing of ERMs. Scenarios may also vary based on different projections of external factors such as technology costs or changes to the GHG intensity of grid power.

EVALUATE SCENARIOS

Evaluate scenarios to estimate emissions reductions, costs, and benefits of each scenario. By developing and analyzing multiple scenarios, organizations can compare the costs and benefits of each and select a pathway that best meets their needs.

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TOOLS AND RESOURCES

For more information about Milestone 4 for Buildings, click here. For Industrial, click here.

Resource Title	Description
Industrial Resources
Carbon Project Implementation Tracker	This resource can be used to log identified projects, track implementation progress, and measure improvement towards emissions reduction goals.
Milestone 4 Industrial Exercises	Useful calculator for quantifying emissions potential for one-off sources using a variety of fuels. It quantifies emission reduction if switching fuels or changing consumption levels. Emission Output Rates were obtained from the EPA and the Electronic Code of Federal Regulations.

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Milestone 5: Define Emissions Reduction Plan

In this final milestone, organizations document the ERP and define how the organization's GHG emissions targets will be met. The ERP will outline the timing of key emissions-reducing activities, responsibility of key stakeholders, financing plans, and next steps. Once complete, the ERP is not a static document; it will be a dynamic living document that organizations reference frequently and revisit periodically to ensure it is timely and meets their needs.

ASSESS SCENARIOS AND SELECT A PATHWAY

After developing multiple emissions reduction scenarios (Milestone 4), assess which scenario best meets organizational needs using the evaluation criteria defined in Milestone 1. The selected scenario will be documented as the organization’s emissions reduction pathway.

UPDATE ORGANIZATIONAL STANDARDS AND PROCEDURES

Review and update existing organizational standards and procedures (e.g. standard operating procedures, procurement practices, project evaluation criteria, and training programs) to align with the selected ERP pathway.

DEFINE FINANCING AND PROJECT DEPLOYMENT SCHEDULE

Decide on preferred financing mechanisms (and their phasing) to fund ERMs. This may depend on project type and organizational preference and should account for annual budgeting cycles, capital planning, and financing availability. Additional detail may be provided in a work plan that contains a timeline with immediate next steps and assigns responsibilities to stakeholders.

SECURE FINAL BUY-IN FROM STAKEHOLDER AND RELEASE PLAN

Share the draft ERP with all key stakeholders, update it to reflect their feedback, and get final approval. The approved ERP should be communicated by leadership throughout the organization.

+ Click Here to Access Steps for Buildings and Industrial

TOOLS AND RESOURCES

For more information about Milestone 5 for Buildings, click here. For Industrial, click here.

Resource Title	Description
Buildings Resources
Better Buildings Financing Navigator	This is an online tool that can help organizations find financing solutions for efficiency projects.
Industrial Resources
Milestone 5 Industrial Exercises	These exercises can be used by industrial organizations to introduce and support development of the ERP tasks covered in Milestone 5.

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TOOLS AND RESOURCES

To further ingrain a commitment to emissions reduction throughout the organization, tools like the 50001 Ready Navigator can be used in conjunction with the ERP to establish an organizational structure with clear roles and responsibilities that will lead to successful emissions reduction implementation across the portfolio of buildings

Resource Title	Description
Buildings Resources
Smart Energy Analytics Campaign Toolkit	This toolkit contains guidance on implementing an energy management and information system (EMIS) to help track energy and emissions reduction progress and identify performance issues.
Buildings and Industrial Resources
Funding and Incentives Resource Hub	This hub can help you navigate and discover the many rebates, funding opportunities, and other incentives including those available through the Inflation Reduction Act and Bipartisan Infrastructure Law.
50001 Ready Tool	Facilitates evaluation of energy use and significant energy users within an energy management system.

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