Planning
Task 11: We identify energy performance indicators and energy baselines to measure and monitor our energy performance and to demonstrate energy performance improvement. We have a methodology for determining and updating them.
Detailed Guidance: Energy Performance Indicators and Energy Baselines
- Develop one or more energy performance indicators (EnPIs) for your organization. If relevant variables significantly affect energy consumption, normalize the EnPIs.
- Develop an energy baseline (EnB) for EnPI in order to later determine energy performance improvement.
- Communicate proposed EnPIs and EnBs to top management so they can ensure the EnPIs and EnBs are appropriate for the organization.
- Record and regularly review the method used to determine and update EnPIs, and establish the conditions under which adjustments to the baseline(s) will be made.
- Compare EnPI values to their respective EnBs on a regular basis.
- Implement a process for ongoing monitoring, measurement, and analysis of your EnPIs, EnBs, and energy performance improvements.
- If you are planning on seeking 50001 Ready recognition for this project please refer to the, “Get Ready Recognized,” page of the 50001 Ready Navigator to ensure you select an EnPI, EnB, and method for demonstrating energy performance improvement allowed by the recognition program. To achieve Ready recognition energy performance improvement is demonstrated for the same scope and boundaries as your 50001 Ready EnMS.
Energy performance indicators are quantitative metrics used to monitor energy performance and demonstrate energy performance improvement. As quantitative measures, energy performance indicators (EnPIs) are measured values, ratios, or models your organization accepts as meaningful representations of energy performance. Where the EnPI is the metric by which to measure energy performance, the “EnPI value” is the measured or calculated number for a specific time period of measure (e.g., kilowatt-hours [kWh] is the EnPI and 42 is the EnPI value; together they indicate an energy performance of 42 kWh).
An energy baseline (EnB) is the quantitative reference used for comparing current EnPI values to determine if energy performance has improved. Typically, energy baselines are associated with EnPIs and represent the value of an EnPI during a time interval known as the baseline period. Often a baseline is established by an organization’s strategic initiatives or in response to a legal or other requirement. The baseline is established considering the data period(s) suitable for your organization’s energy use and consumption.
EnPIs and EnBs can be established at the level of the entire organization or at the level of a specific sites, piece of equipment, system, or process. ISO 50001 requires, but does not specify for what scope and boundaries, that an organization must demonstrate energy performance improvement. As they are the focus of energy performance improvement actions, it is recommended that each SEU have at least one EnPI and associated EnB.
If you are planning on seeking 50001 Ready recognition for this project please refer to the, “Get Ready Recognized,” page to ensure you select an EnPI, EnB, and method for demonstrating energy performance improvement allowed by the recognition program. To achieve Ready recognition energy performance improvement is demonstrated for the same scope and boundaries as your 50001 Ready EnMS.
As discussed in Task 8 Energy Data Collection and Analysis relevant variables are quantifiable factors that routinely change and have a major impact on energy performance, including the operational performance. EnPIs and EnBs that take relevant variables into account may be more meaningful than those that depend on the intended use of the EnPI and EnB. Where the organization has data indicating that relevant variables significantly affect energy performance, the EnPIs should consider the relevant variables into account. The organization determines what indicates that a variable “significantly affects energy performance” and should develop a criteria to follow. If relevant variables are identified the EnPI should be normalized meaning absolute energy consumption itself cannot be used as the EnPI but needs to be adjusted through the use of an energy intensity, regression, or other adjustment method.
Responsibility for determining the EnPIs and EnBs typically rests with the energy team. It is top management’s responsibility to ensure that the EnPIs and EnBs are appropriate for your organization and to provide the resources needed to establish, track, and evaluate the EnPI values.
Once the EnPIs and EnBs are established, it is vital to analyze and monitor them and their associated EnPI values. The benefit of analyzing EnPIs values by making the comparison to the EnBs shows the direction and rate of change in organizational energy performance. Since the ultimate objective of energy management is continual improvement, consistent trends in actual and predicted energy performance can demonstrate and quantify the improvement.
This guidance is relevant to sections 6.4 and 6.5 of the ISO 50001:2018 standard.
Both ISO 14001:2015 and ISO 9001:2015 management systems involve the use of indicators, but not necessarily EnPIs. However, existing processes used to determine appropriate indicators for environmental or quality likely could be applied to determining EnPIs appropriate for an ISO 50001:2018 EnMS.
ISO 14001:2015 uses indicators to evaluate progress towards environmental objectives. Since ISO 14001 also requires the determination of the criteria against which environmental performance is evaluated, some organizations may be using environmental indicators to evaluate energy performance as well. In ISO 9001:2015, indicators are focused on effective operation and control of processes. Indicators in ISO 50001:2018 are quantitative values or measures of energy performance.
Overall, indicators in these standards are different from one another in terms of focus and purpose. But, organizational familiarity with the development and use of indicators can be helpful in implementing EnPIs for an ISO 50001 EnMS. Neither ISO 9001 or ISO 14001 include the concept of baselines.
Your organization may already be using energy performance indicators (EnPIs) to monitor, measure and evaluate energy performance. Steps 3.2, 4.1, 5.5, 6.0, and 6.1 of the ENERGY STAR® Guidelines for Energy Management provide tips related to this topic, including establishing EnPIs such as Btu/square foot or Btu/product. Energy performance indicators used in the ENERGY STAR program may be applicable to the EnMS but should be reevaluated to ensure all EnMS requirements are met. And, Appendix 4 of the ENERGY STAR guidelines provides detail on normalizing data. This 50001 Ready Navigator task provides additional guidance, and U.S. Department of Energy tools referenced in this task can help your organization establish a simple energy model that is often a more meaningful measure of energy performance than a single metric or simple ratio, to accurately represent the relationship between operational activities and energy consumption.
Energy performance indicators (EnPIs) are developed using the information from the energy review (Task 8 Energy Data Collection and Analysis). The responsibility for developing a list of potential EnPIs typically is left to the energy team and others assigned to assist. Top management is responsible for ensuring that the EnPIs appropriately represent energy performance. Most often, this is accomplished through the management review process (see Task 23 Management Review).
It may be necessary to develop different EnPIs for different stakeholders. Stakeholder needs can vary significantly, and their requirements should be considered in EnPI development. Top management typically will be interested in an EnPI that is related to your organization’s strategic business goals and improves the bottom line. Operations or production personnel may want a metric that provides guidance for operating equipment and systems at maximum efficiency. External agencies may require specific performance metrics to provide information related to regulatory or other requirements.
While there are no limits on the number of EnPIs that your organization can have consider selecting a handful that provide immediate value to key stakeholders. It is recommended that each SEU should have one associated EnPI. EnPIs should be developed so you have an ability to monitor energy performance and demonstrate energy performance improvement of SEUs and other parts of your organization that are of interest.
ISO 50001 requires organizations to demonstrate energy performance improvement. This requirement necessitates the development of at least one EnPI and EnB. There is no requirement for what scope and boundaries for which energy performance improvement needs to be demonstrated. If you are planning on seeking 50001 Ready recognition for this project please refer to the, “Get Ready Recognized,” page to ensure you select an EnPI, EnB, and method for demonstrating energy performance improvement allowed by the recognition program. To achieve Ready recognition energy performance improvement is demonstrated for the same scope and boundaries as your 50001 Ready EnMS.
The meaning and usefulness of an EnPI may be enhanced if it is normalized by a relevant variable that affects the energy consumption pertaining to the EnPI. See Task 8 Energy Data Collection and Analysis for additional details on relevant variables
EnPIs are typically established in one of three forms:
- a single metric, such as consumption;
- a ratio or per unit basis such as Btu/square foot or Btu/pound or Btu/unit; or
- a numerical model that accounts for one or more relevant variables.
A single metric, such as consumption, is frequently adequate to determine and monitor energy performance if the equipment, system, or process is not affected by other variables or if the relevant variables are constant. Single metrics are also easily conveyed to those not familiar with the details of energy uses or who wish to connect energy consumption to financial costs and environmental impacts.
- A warehouse with no heating or cooling, equipped only with lighting, and operating on a set schedule every day would be expected to have consistent energy consumption. Any changes would reflect site changes (e.g., adjusted schedule, site expansion) or changes in energy performance (e.g., installed high efficiency lighting, removed excess fixtures).
- A motor operated 24 hours a day at a constant load would be expected to have consistent energy consumption. A change in consumption may indicate motor problems, or if the current motor is replaced with an energy-efficient motor, a consumption decrease would be expected.
In these examples, monitoring consumption as the EnPI provides guidance on the operational status of equipment or information on the results of changes.
A ratio or a per unit basis EnPI may be desired so it is possible to make comparisons over time at different output levels or at different locations of a similar process. These EnPIs typically relate energy consumption, cost, or environmental impact to an appropriate organizational output. One form of a ratio EnPI that relates performance to production or to one single output is commonly referred to as simple energy intensity. An energy intensity EnPI is defined and calculated by dividing energy consumption by productive output for an organization, site, department, product, equipment, system, process, or other part of the organization under consideration.
When calculating the EnPI, the energy measurement must accurately capture energy consumption for the unit under consideration, and the chosen unit, such as production measure, must cover the same time frame as the energy consumption.
- For a commercial operation, an EnPI may be Btu/occupied-square foot or Btu/type-square foot or use (e.g., a commercial warehouse may calculate an EnPI for refrigerated square footage and another EnPI for dry goods square footage).
- For an industrial plant, an EnPI may be Btu/unit produced or Btu/$-value added to product.
- For an organization that makes bricks, a typical EnPI is Btu/lb or Btu/ton of bricks. A change in this EnPI provides an indication that some parameter in the process has changed and warrants investigation.
A numeric model may provide a more meaningful measure of energy performance than a single metric or simple ratio to accurately represent the relationship between operational activities and energy consumption. In this case, more sophisticated models that allow the use of one or more factors for estimating energy consumption may be required. Depending on your needs, regression analysis or calculations using engineering theory may be required to provide a sufficiently accurate model. Modeling based on regression analysis or engineering theory can be complex, and typically requires analysis by someone skilled in the systems, processes, operations, or equipment being modeled. The U.S. Department of Energy offers a regression-based tool called the Energy Performance Indicator Tool Lite. If you are located outside the US, please consult your program administrators program guide for tools available in your area.
An energy baseline (EnB) is the quantitative reference(s) for comparing current EnPI values to determine if energy performance has improved. Typically, EnBs are associated with EnPIs and represent the value of an EnPI during a time interval known as the baseline period. Like EnPIs, the EnB can be established at any level of your organization. An EnB can be established for the entire site and/or there can be baselines for individual equipment, systems, or processes. The following inputs will help you determine the appropriate EnBs:
- How will each EnPI be used for evaluating energy performance? Is there a logical EnB for each?
- What are the historical changes to site, equipment, systems, processes, or organization that would change how energy performance is evaluated?
- What stakeholder interests should be considered when establishing EnB for the EnPI?
- Are there strategic initiatives that would be measured or influenced by one or more of the established EnPIs? Is there an EnB associated with these strategic initiatives?
- What are the historical periods that have reliable, consistent data for the established EnPIs?
The answers to these questions will help identify the relevant EnBs for the established EnPIs.
Documented information must be maintained on the methods you use to determine and update your organization’s EnPIs. Some organizations document their methods within an energy manual, which is not required but can be useful as a “roadmap” to the energy management system (EnMS). Other organizations address their methods for determining and updating EnPIs within an energy planning procedure. How and in what format the documented information is maintained is up to your organization.
EnPI values are reviewed and compared to their respective EnBs, as appropriate. Typically, this is done on a regular basis to ensure continuing applicability for the energy performance being measured. Changes in site, equipment, systems, processes, operating procedures, materials, relevant variables, and many other factors could result in a change in the validity of the EnPI used to measure energy performance. When changes occur, they are evaluated so the EnPI can be updated as needed. Recall that top management is responsible for ensuring that the EnPIs are appropriate for the organization (see Task 4 Management Commitment). As changes occur that affect the validity of the EnPIs, this information is included in Task 23 Management Review.
Calculated EnPI values and their associated EnBs are retained as documented information and periodically reviewed to determine if adjustments are required.
The process of updating EnPIs should include an evaluation of the EnBs to determine if they remain a meaningful point of comparison to determine energy performance improvement. Adjustments to an EnB should be made in the following instances:
- When the EnPIs no longer accurately reflect the organization’s energy performance
- When there are major changes to static factors, the process, operational patterns, or energy systems
- According to a predetermined method
Records of modifications and updates to EnBs must be retained. Maintaining EnBs keeps the measures of energy performance relevant and meaningful.
Calculated EnPI values and EnBs should be recorded and reviewed on a regular basis. Updated EnPIs and EnBs are an input to management review (Task 23 Management Review) and used to help monitor energy performance and demonstrate energy performance improvement. These metrics can be used to verify the success of activities such as energy-efficiency projects, operator or maintenance personnel energy-efficiency training, and energy management awareness programs. This provides a positive message for middle and top management to build support for the EnMS. Improvements in EnPIs are indicators of growing sophistication of the EnMS. Accurately recording and storing EnPIs and EnBs creates a historical registry that will display the impact of energy management practices over time.
The components of EnPIs that are measured or calculated will be managed for accuracy and repeatability in the energy data collection plan (addressed in Task 8 Energy Data Collection and Analysis). Top management’s review of energy performance must include a review of performance as determined by the EnPIs and the related EnBs. Top management must ensure changes are made when these metrics are no longer appropriate.
The online EnPI Lite software as a free resource for organizations wishing to use regression modeling to develop normalized EnPIs and calculate energy performance improvement against an EnB. The EnPI Lite uses a set of statistical validity tests documented in the 50001 Ready M&V Protocol to ensure results are mathematically meaningful. The EnPI Lite tool will provide site-level site energy savings, energy performance improvement percentage, and energy performance improvement percentage for each energy source. Use of the EnPI tool is not required for 50001 Ready recognition. Other tools are also available.
Energy performance indicators are quantitative metrics used to monitor energy performance and demonstrate energy performance improvement. As quantitative measures, energy performance indicators (EnPIs) are measured values, ratios, or models your organization accepts as meaningful representations of energy performance.
When managing energy-related GHG emissions as part of your EnMS, include energy-related GHG performance indicators as quantitative ways to monitor your energy-related GHG emissions. Like other EnPIs, energy-related GHGperformance indicators can be:
- A single metric, such as total emissions
- A ratio or per unit basis, such as pounds of emissions per unit, or
- A numerical model that accounts for one or more relevant variables
When developing performance indicators for energy-related GHG emissions, your organization should consider:
- Using emissions intensity, either from a ratio or from a numerical model, as a meaningful internal metric to manage energy-related GHG emissions and changes in energy-related GHG emissions performance over time.
- Establishing an energy-related GHG performance indicator for each emission type (i.e. Scope 1, 2, and 3) included in your scope and boundaries.
- Establishing at least one energy-related GHG performance indicator for each SEU.
- Setting performance indicators based on stakeholder needs relative to GHG emissions reporting.
In addition to your energy baselines, an energy-related GHG emissions baseline should be developed. The energy-related GHG emissions baseline should provide a quantitative reference for determining if your energy-related GHG emissions have reduced and performance has improved. When developing your energy-related GHG emissions baseline, your organization should consider:
- How the energy-related GHG emissions performance indicators will be used for evaluating GHG emissions performance.
- Whether there is a logical baseline for each energy-related GHG emissions performance indicator.
- Whether there are stakeholder interests to account for when establishing energy-related GHG emissions performance indicators.
- Whether there are strategic initiatives that can drive the formation of energy-related GHG emission performance indicators and baselines.
If you do not have an existing 50001 Ready-based EnMS and want to build one that also helps your organization manage GHG emissions, you should follow the guidance in the “Full Description” tab keeping the following in mind:
- Establish energy-related GHG emission performance indicators. Establish energy-related GHG emissions performance indicators following the guidance above. Keep in mind that different indicators might be needed for different internal and external stakeholders.
- Establish energy-related GHG emission baselines. Establish baselines for any energy-related GHG emissions performance indicators. Ensure the baselines meet both your internal and external stakeholder interests. Records of modifications and updates to both performance indicators and baselines must be retained.
- Create a methodology for determining and updating energy-related GHG emissions performance indicators. Create a methodology for determining and updating performance indicators based on the new energy-related GHG emissions performance indicators and baselines. Keep in mind the frequency of GHG-related reporting needed by different GHG emissions-related stakeholders.
- Create a methodology for adjusting energy-related GHG emissions baselines. Create a methodology for reviewing performance indicators and baselines based on the new energy-related GHG emissions performance indicators and baselines.
- Create a process for monitoring and analyzing energy-related GHG emissions performance indicators. Create a process to monitor and analyze EnPIs and energy-related GHG emissions performance indicators. Updates to energy-related GHG emissions performance indicators and baselines should be inputs to the management review (Task 23 Management Review).
- Review your process for monitoring and analyzing EnPIs. Monitor and analyze the energy-related GHG emissions performance indicator values. Updates to energy-related GHG emissions performance indicators and baselines should be included as inputs to the management review (Task 23 Management Review)
If you have an existing 50001 Ready-based EnMS and want to adapt it to manage energy-related GHG emissions, you should:
- Review your current EnPIs and add energy-related GHG emission performance indicators. Review your current list of EnPIs to determine which additional energy-related GHG emissions performance indicators should be established. Keep in mind that different indicators might be needed for different internal and external stakeholders.
- Review your current energy baselines and add energy-related GHG emission baselines. Establish baselines for any energy-related GHG emissions performance indicators. Ensure the baselines meet both your internal and external stakeholder interests. Records of modifications and updates to both performance indicators and baselines must be retained.
- Review your methodology for determining and updating EnPIs. Review and revise your methodology for determining and updating performance indicators based on the new energy-related GHG emissions performance indicators and baselines. Keep in mind the frequency of GHG-related reporting needed by different stakeholders.
- Review your process for adjusting EnBs. Review your process for reviewing performance indicators and baselines based on the new energy-related GHG emissions performance indicators and baselines.
- Review your process for monitoring and analyzing EnPIs and energy-related GHG emissions performance indicators. Updates to energy-related GHG emissions performance indicators and baselines should be included as inputs to the management review (Task 23 Management Review).
Task 11 Decarbonization Guidance Version: v0.9
This Navigator task should be used to develop appropriate metrics for measuring energy performance and assessing compliance with federal requirements. Based on 42 U.S. Code § 8253(a), energy consumption from 2015 may be used as a baseline for analysis.
42 U.S. Code § 8253(f)(1)(3) may be referred to as a guide for how current methods for evaluating energy performance may be supported by identification of EnPIs.
Developing EnPIs through this task can be used as a means for demonstrating progress towards compliance with Sec. 2. Goals for Agencies. Executive Order 13834
It is essential for facilities to establish relevant and reliable metrics for understanding the degree to which energy practices are improving, and as such, users should accomplish this through the identification of EnPIs. Energy consumption per gross square foot can be adopted as the EnPI for this task, as detailed in 42 U.S. Code § 8253(a)
To ensure the success of your water management efforts, you need to understand your baseline water consumption and determine water management performance indicators. FEMP’s Water Manual section 4.6 (Track and Report Performance) provides guidance that could help you accomplish this task.
A key element of a good water management program is to track performance. All water equipment and system performance must be measured throughout its life to ensure proper operations, maintenance, and repair. In addition, water savings must be measured and verified. Quantitative metrics for tracking water efficiency improvement help you to verify the success of your projects and investments in efficiency. The process of determining water performance indicators is similar to that of determining the energy performance indicators as described in the 50001 Ready Navigator.
After determining the right performance metrics for your water management system, determine baseline measurements for each metric. The first step in developing a baseline should be collecting water use data. After collecting water use data, the following steps need to be taken:
- Determine a baseline annual water use for a specific year or an average water use over several years. If monthly data are available, plot the monthly use over time. Is water use increasing, decreasing, or steady?
- Try to determine what caused the major trends. Is there a seasonal pattern to water use? This is often the case when irrigation water is used, or cooling water demand increases in the summer months. Analyzing the data in this way will help you understand current water use trends.
- Continue to plot total water use as new water bills become available. Also, plot any available submetered data. Evaluate trends and investigate and resolve any unexpected deviations in water use.
- Consider incorporating water-efficiency policies and goals into the facility’s environmental management system (EMS), if one has been developed, and track progress on the goals through the EMS process.
Tools and Resources:
- Water Metering Resources (https://www.energy.gov/eere/femp/water-metering-resources)
- Metering in Federal Buildings (https://www.energy.gov/eere/femp/metering-federal-buildings)
It is essential for sites to establish relevant and reliable metrics for understanding the degree to which energy practices are improving, and as such, users should accomplish this through the identification of EnPIs. For hotels, energy consumption per gross square foot is one logical EnPI for this task. The example hotels Playbook for task 11 provides additional examples.
There is a requirement in the ISO 50001: 2018 standard that “the organization shall demonstrate continual energy performance improvement” (section 10.2). The selection of EnPIs and their associated EnBs is critical to achieving this continual improvement.
This Navigator task may be used to establish the appropriate EnPIs for measuring energy performance and assessing compliance with any energy reduction targets you have established.
Developing EnPIs through this task can be used as a means for demonstrating progress towards compliance with any internal or corporate goals and targets.
When establishing a baseline year, consider this guidance from the Sustainable Wastewater Infrastructure of the Future Accelerator (SWIFt 1.0) documentation, “To set a baseline year, a facility should choose a recent calendar or fiscal year for which it has a full year of relevant data available, including energy, treatment volume, and pollutant load. Often, this will be the last full year before the initiation of a new energy program. Because the baseline year serves as the point of comparison for future efforts, organizations should select a 12-month period that reflects relatively stable operating conditions." (SWIFt EDMM, p.11)
DOE recommends SWIFt 2.0 Partners to start with a flow-based metric such as kWh/MG if an energy performance indicator (EnPI) has not been used previously.
If appropriate, it can also be helpful to establish separate metrics for drastic changes in plant operation such as wet season versus dry season or daytime versus nighttime.
Other example EnPIs that facilities have used could be pollutant-based metrics such as kWh/lb-BOD – referring to biological oxygen demand. “BOD can work well because pollutant concentrations heavily impact aeration needs (the largest source of energy consumption). Flow, on the other hand, largely determines energy needs for the plant’s pumping systems, also a significant energy user." (SWIFt EDMM, p.8)
The importance of using an energy performance indicator, specifically in wastewater treatment plants is that “[a]bsolute energy consumption can vary significantly due to factors outside a plant’s direct control such as flow volume or pollutant loading. For that reason, an energy-intensity based metric, which expresses energy consumption per unit of activity, is an improvement over absolute energy consumption, because it adjusts for periods of high or low activity. This approach has been used for years in the manufacturing sector and for commercial buildings." (SWIFt EDMM, p.15)
Both ISO 14001:2015 and ISO 9001:2015 management systems involve the use of indicators, but not necessarily EnPIs. However, existing processes used to determine appropriate indicators for environmental or quality likely could be applied to determining EnPIs appropriate for an ISO 50001:2018 EnMS.
ISO 14001:2015 uses indicators to evaluate progress towards environmental objectives. Since ISO 14001 also requires the determination of the criteria against which environmental performance is evaluated, some organizations may be using environmental indicators to evaluate energy performance as well. In ISO 9001:2015, indicators are focused on effective operation and control of processes. Indicators in ISO 50001:2018 are quantitative values or measures of energy performance.
Overall, indicators in these standards are different from one another in terms of focus and purpose. But, organizational familiarity with the development and use of indicators can be helpful in implementing EnPIs for an ISO 50001 EnMS. Neither ISO 9001 or ISO 14001 include the concept of baselines.
Your organization may already be using energy performance indicators (EnPIs) to monitor, measure and evaluate energy performance. Steps 3.2, 4.1, 5.5, 6.0, and 6.1 of the ENERGY STAR® Guidelines for Energy Management provide tips related to this topic, including establishing EnPIs such as Btu/square foot or Btu/product. Energy performance indicators used in the ENERGY STAR program may be applicable to the EnMS but should be reevaluated to ensure all EnMS requirements are met. And, Appendix 4 of the ENERGY STAR guidelines provides detail on normalizing data. This 50001 Ready Navigator task provides additional guidance, and U.S. Department of Energy tools referenced in this task can help your organization establish a simple energy model that is often a more meaningful measure of energy performance than a single metric or simple ratio, to accurately represent the relationship between operational activities and energy consumption.
Use this Notes section to save information for communication with other members of your project team, they will be able to see these Notes whey they are logged in to the 50001 Ready Navigator. Notes examples include dates of meeting with relevant personnel for completion of a portion of the task, decisions that have been made about task implementation, or perhaps a link to a file in your organization's shared drive that contains a completed worksheet or template. Please note, do not enter any information in here that you would not want shared with any members of the project team or the site's administrative staff.
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Log in to track notes| Name | Type | Description | Version |
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| 50001 Ready Playbook Task 11 | EnPIs and EnBs | PB.11.01.02 |