WORK PERFORMED UNDER AGREEMENT DE-OE SUBMITTED BY Idaho Office of Energy Resources 322 E. Front St. P.O. Box Boise, ID

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1 PROJECT MANAGEMENT PLAN Enhancing State Government Energy Assurance Capabilities and Planning for Smart Grid Resiliency October 17, 2009 WORK PERFORMED UNDER AGREEMENT DE-OE SUBMITTED BY Idaho Office of Energy Resources 322 E. Front St. P.O. Box Boise, ID PRINCIPAL INVESTIGATOR Timothy O Leary Phone (208) Fax (208) SUBMITTED TO U. S. Department of Energy National Energy Technology Laboratory Joseph L. Hanna Page 1 of 12

2 1. EXECUTIVE SUMMARY Provide a description of the project that includes the objective, project goals and expected results. The summary should also include a succinct project background and project rationale. For purposes of the application, this information should be a summary of the pertinent information that is included in the Project Narrative (Field 7), so that the Project Management Plan is a stand-alone document. Project Background and Rationale In January 2009, the State of Idaho, Bureau of Homeland Security published it s final rule for Idaho s Emergency Operations Plan. A portion of that plan includes provisions for energy emergency preparedness. With the increased development of new distribution infrastructure, renewable energy generating resources, distributed generation, and implementation of smart grid technologies into our state s energy portfolio, there is a need to update the Energy Assurance part of our State Emergency Operations Plan. The updates may include the establishment of a statewide system to analyze failure sequences, recommended actions that could be built into new energy developments that will help mitigate systems failures, integration of local Smart Grid technologies into the statewide grid system, the incorporation of cyber security into the grid, the establishment of a program that will offer training for energy disaster management and expedient mitigation of large scale system failures and perhaps other updates that are yet to be determined. Project Objective The objective of this program will be to strengthen and expand state and local government understanding of energy assurance and develop planning and resiliency by incorporating regional and statewide cooperative actions that match energy demand with existing and new energy portfolios while developing Smart Grid technologies and applications for all forms of energy generation, distribution and use. Project Goals To this end, a new cooperative working group comprised of local and regional stakeholders will be established. The group will be tasked to recommend modifications of our existing Energy Assurance plan, published as part of the Idaho Emergency Operations Plan, to integrate new Smart Grid Energy Assurance technologies. It will work together to build relationships among stakeholders intended to perpetuate the current spirit of cooperation by increasing the in-house energy assurance expertise of all involved. Where possible, new Energy Assurance plans will be developed and deployed. Expected Results The Work group will develop a common data management system to help track and analyze systems failures statewide. Knowing where the systems failures are and what caused them will help with regional planning, future energy development and technical improvement projects. The plan will result in the creation of new jobs or the training of existing professionals to assure their involvement with the future of the northwest energy grid systems expansions. As Idaho s energy infrastructure is developed over the coming years, this plan and the experts that it anticipates will be trained will help to assure reliable, efficient and abundant energy resources are available to those living in the region. 2. RISK MANAGEMENT The Applicant (Recipient) shall provide a summary description of the proposed approach to identify, analyze, and respond to perceived risks associated with the proposed project. Project risk events are uncertain future events that, if realized, impact the success of the project. Since risk is inherent to all projects, regardless of the level of complexity, cost or visibility, project risk must be addressed to the appropriate level for every project. It is recognized that the depth of analysis and the complexity and cost of the resulting risk management approach (and plan) will differ from project to project and among organizations. Commonly accepted approaches, such as those Page 2 of 12

3 supported by The Project Management Institute s A Guide to the Project Management Book of Knowledge, should be considered. As a minimum, the Recipient should provide sufficient information with the application to demonstrate an appropriate approach to managing risks during project execution. This must include the initial identification of significant technical, resource and management issues that have the potential to impede project progress and strategies to minimize impacts from those issues. All projects are subject to uncertain future events that, if realized, impact the success of the project. To address these events as they come up, the project work group will be tasked with working out germane actions. The level of involvement and action will be dependent on the severity of risk. More severe risks may require a more detailed system of Risk planning and management such as that outlined in the Project Management Institute s A Guide to Project Management Body of Knowledge while lesser risks may only require brief discussion, decision and assignment of action. As the team will be assigned the task of deciding the appropriate direction to be taken to update Idaho s existing Energy Assurance plan, they will also be tasked with outlining the possible risks associated with the work. Risks will be appropriately addressed as they are identified during planning meetings. List of Possible Project Risks 1. Meeting attendance In a state such as Idaho, geography can become an impediment to maintaining participant involvement during a long term project such as this. To help mitigate the risk of excessive absenteeism, the budget has been set to allow for payment of travel expenses for all those that must travel to attend meetings. Face to face meetings will be held to a minimum by using teleconferencing technology. This may help project participants to effectively utilize their time while maintaining a presence in the planning process. Later on in the project, travel will be limited to training professionals assigned to visit local communities to conduct training and Energy Assurance exercises. 2. Contractor availability The project is anticipated to extend over a 3 year period. It may be difficult to find a consulting contractor willing to do the work being requested for the small amount of funding being budgeted. It will be up to the work group to discuss the extent to which the contractor will be assigned work. Once the proposals have been received, adjustments in the scope of work and/or the budget may be necessary. 3. Changes in the work group membership Projects that extend over longer terms are subject to corresponding risks. Some of those originally assigned to participate in the project will undoubtedly move on to other opportunities. This may result in their institutional knowledge being lost to the remaining members of the team. New members will need to be brought up to speed on the activities and actions of the team at the points of change. Even though this risk may result in delaying the outcome, it will also result in additional trained professionals which is one of the goals of the project. Good records of the work group meetings will be necessary to assure new members will be able to catch up and follow along. Issues and Actions documentation will be helpful in mitigating this issue. 4. Lack of consensus When working with a team, there is always a risk of not being able to achieve consensus. Group members may approach the project from different and perhaps opposing directions. Under the right circumstances, these problems can be contentious and divisive. The group will need to agree in the beginning to work toward the common goal of developing a comprehensive energy assurance plan and all will be asked to compromise where necessary or to work out an acceptable understanding where compromise is not possible. It will be up to the group facilitator to assist members in working out differences of opinion. Page 3 of 12

4 3. MILESTONE LOG The Recipient is to provide milestones for the project. Each milestone is to include a title, planned completion date and a description of the method/process/measure used to verify completion. The milestones developed should be quantitative and show progression towards project goals. It is expected that the Recipient will have a milestone at least semi-annually or every six months of the project schedule: however, milestones should not be developed to meet this expected schedule. Milestones are different than success criteria (Section 6) in that milestones typically show progress through the execution of the project, whereas success criteria are used by the DOE to determine if specific goals were met the completion of the project. Format for the milestone log should be as follows: M1 Title: Develop Project Management Plan Planned Date: October 2009 Verification Method: Plan Submission to DOE M2 Title: Develop and Convene Project Work Group Planned Date: October 2009 Verification Method: Minutes of First meeting M3 Title: Complete Workforce Development Plan Planned Date: November 2009 Verification Method: Plan Submission to DOE M4 Title: Initiate Contract Planned Date: March 2010 Verification Method: Program development and training contract in place. M5 Title: Development and Initiation of Training Program Planned Date: October 2010 Verification Method: Plan will be in place and first local Training Session will have been conducted. M6 Title: Initial Energy Assurance Plan Development Planned Date: February 2011 Verification Method: Delivery of Initial Energy Assurance Plan to DOE. M7 Title: Energy Supply Disruption Tracking Process Planned Date: February 2012 Verification Method: In-place and In-Use Tracking Process M8 Title: Final Energy Assurance Plan Planned Date: August 2012 Verification Method: Delivery of Final Energy Assurance Plan to DOE. Page 4 of 12

5 4. FUNDING AND COSTING PROFILE The Recipient shall provide a table that shows, by year, the amount of government funding going to each project member and cost share provided (if applicable) by members. The table shall also calculate totals and cost sharing percentages. Table 1 Project Funding Profile below is an example. Table 1 Project Funding Profile Budget Category Year 1 Year 2 Year 3 Total 1 Personnel 51,356 52,896 54, ,725 Fringe Benefits 20,260 20,867 21,491 62,618 Travel 6,000 7,000 8,000 21,000 2 Equipment 2,000 2,000 2,000 6,000 2 Supplies ,200 2 Contractual 7,000 6,000 11,000 23,000 Other Total Direct Charges 87,016 89,163 97, ,545 Indirect Charges 21,441 22,084 22,744 66,269 Total 108, , , ,814 1 Personnel The $151,725 represents three years of salary for one Senior Energy Specialist. Year 1 represents the current salary, year 2 and year 3 amounts were increased by 3% each to accommodate any potential increases in employee compensation that may be given out. While the current economic condition is not very promising for increased wages, this grant covers a three year period so it is likely the salary amount would increase during the life of the grant. The Senior Energy Specialist currently assigned to this grant is Tim O Leary. He will also be the ongoing program manager assigned to this work. No new positions will be created with funding from this grant. It will be used to prevent the elimination of an existing position. Page 5 of 12

6 2 Equipment, Supplies, Contractual The Office of Energy Resources will follow Idaho State Purchasing and Contracting policies for all acquisitions associated with this grant. The Recipient shall also provide a table that projects, by month, the expenditure of the government funds for each year. While it is recognized that out year costing profiles are less certain and the nature of specific tasks are dependent on successful or unsuccessful completion of the current approach, the Recipient should provide their estimates of out-year costs to the extent practical. Table 2 Project Spending Plan provides an example. Note: Create one spend plan for each year during the project period (actual starting month may be different than in the example). Cost sharing is not required for this grant. However, recipients may reflect non-federal funds in the Project Funding Profile and as a separate column in the Project Spending Plan, if applicable. Table 2 Project Spending Plan Monthly Spending Plan (Year 1) August September October November December January February March April May June July Total ($s in thousands) 108 Monthly Spending Plan (Year 2) August September October November December January February March April May June July Total ($s in thousands) 111 Monthly Spending Plan (Year 3) August September October November December January February March April May June July Total ($s in thousands) PROJECT TIMELINE The Recipient shall provide a timeline of the project broken down by each task and subtask, as described in the Statement of Project Objectives. The timeline shall include for each task, a start date, end date, approximate cost and team members participating on the task and their role. The timeline shall also show any interdependencies with other tasks and note the milestones identified in the Milestone Log (Section 3). It is highly recommended that the Recipient consider using a commercial software package to generate the timeline as a Gantt chart (see Figure 1 as an example) or other applicable format. Task 1.0 Initial Project Management Plan Start Date: August 2009 End Date: October 2009 Approximate Cost: $ 10,000 Team Members: Tim O Leary Roll of Team Members: Mr. O Leary will draft the initial Project Management Plan. Sub-task 1.1 Continued Project Management Plan Updates Page 6 of 12

7 Start Date: October 2009 End Date: August 2012 Approximate Cost: $ 15,000 Team Members: Contractor and Tim O Leary Roll of Team Members: The Contractor will track the development of the project and recommend changes to the plan as the work progresses. Mr. O Leary will periodically modify the plan as the specifics of the program change by direction of the working group. Sub-task 1.2 Establish a Project Work Group Start Date: September 2009 End Date: October 2009 Approximate Cost: $ 5,000 Team Members: Tim O Leary and representatives from the energy industry in Idaho. Roll of Team Members: To guide and direct the development and implementation of the Inter and Intra State Energy Assurance Plan, training and exercises for Idaho. The approximate cost listed is for setting up the team and convening the first meet and greet. Includes travel costs for members of the team and conference call expenses. Additional costs for travel and phone conferencing are included elsewhere. Task 2.0 Workforce Development Plan Start Date: August 2009 End Date: November 2009 Approximate Cost: $ 3,000 Team Members: Tim O Leary Roll of Team Members: Mr. O Leary is the designated coordinator at the State level. He will work with other state agency representatives to develop the Workforce development plan. Sub-task 2.1 Establish a Consultant Contract Start Date: October 2009 End Date: March 2010 Approximate Cost: $ 3,000 Team Members: Tim O Leary Roll of Team Members: Mr. O Leary will work with the team members to establish the requirements for the RFP. He will draft the RFP, advertise and write a contract for a consultant that will help write the Energy Assurance plan and develop a training and exercise program. Task 3.0 Energy Assurance Plan Development Start Date: September 2009 End Date: August 2012 Approximate Cost: $ 200,000 Team Members: Tim O Leary, Contractor, and Project Working Group Roll of Team Members: All team members will contribute to the development and implementation of a new State Energy Assurance Plan. The initial plan will be completed by February 12, 2011 and will be updated as training and exercises are conducted and evaluated. Task 4.0 Energy Supply Distribution Tracking Process Start Date: October 2009 End Date: February 2012 Approximate Cost: $35,000 Team Members: Tim O Leary, Contractor, and Project Working Group Roll of Team Members: All team members will contribute toward the development of a comprehensive tracking and record keeping process. The specifics of the system and the home repository of the Page 7 of 12

8 information is to be determined. Task 5.0 Energy Assurance Training/Exercise Planning Start Date: March 2011 End Date: April 2012 Approximate Cost: See tasks 5.1 and 5.2 Team Members: Tim O Leary, the Contractor and members of the Project Working Group Roll of Team Members: Mr. O Leary will be responsible for setting up and hosting the exercises and training events. The Contractor will be responsible for deciding on training and event content and will provide trainers for each event held. Each of the members of the team will represent their own entity and will be responsible for invitations and attendance of others from their own organizations. Task 5.1 Intra-state Training and Exercises Start Date: March 2011 End Date: April 2012 Approximate Cost: $70,000 Team Members: Tim O Leary, the Contractor and members of the Project Working Group Roll of Team Members: Training sessions will be held in key communities statewide. Each training session will include an exercise. The contractor will develop training that can be adjusted to accommodate the specific conditions germane to each area of the communities targeted for the training. Exercises will fit the training. Task 5.2 Inter-State Training and Exercise Start Date: March 2011 End Date: April 2012 Approximate Cost: $30,000 Team Members: Tim O Leary, the Contractor, members of the Project Working Group and Representatives from participating adjacent states. Roll of Team Members: To be decided. Figure 1 Sample Project Timeline (Gantt Chart) Year Quarter M1 Task Project Management Plan Sub-task 1.1 Continuous Project Management Plan Updating Sub-task 1.2 Establish a Project Workgroup Task 2.0 Workforce Development Plan M2 M3 Sub-task 2.1 Establish a Consultant Contract M4 Page 8 of 12

9 Task 3.0 Energy Assurance Plan Development Task 4.0 Energy Supply Disruption Tracking Process M5 M6 Task Energy Assurance Exercise M7 M8 Sub-task 5.1 Intra-State training/exercise Sub-task 5.2 Inter-State training/exercise Notes: M# = Milestones from Milestone Log 6. SUCCESS CRITERIA The success criteria should correlate to the performance metrics in the Funding Opportunity Announcement. Usually, the success criteria pertain to desirable outcomes, results and observations from the experimental efforts. The success criteria should not be based on interpretations. Success Criteria are different than milestones (Section 3) in that milestones typically show progress through the execution of the budget period and project, whereas success criteria are used by the DOE to determine if specific project goals and objectives were met. Typically, these goals and objectives represent requirements established by the program as evidence of progress in advancing a technology area or scientific/engineering knowledge. The following are success criteria specifically identified in the Funding Opportunity Announcement intended to illustrate the extent to which the project was successful. Quarterly, Annual, and Final reports will include actual metrics related to these Criteria. Success Criteria Target 1. Number of Energy Assurance Plans created or substantially revised 1 2. Number of Jobs created within State government agencies for energy assurance planning and response capabilities. 3. Number of energy assurance training sessions, workshops and/or exercises 5 conducted 4. Number of people trained 20 1 Funding under this grant will be used to retain one employee. No new positions will be created AGREEMENT STATEMENT OF PROJECT OBJECTIVES The Statement of Project Objectives (SOPO) from the Agreement will be inserted here. Note that Task 1.0 (or other designation) of the SOPO entails the work necessary to manage the project and to update the Project Management Plan submitted with the application. The Project Management Plan submitted as a work product under Task 1.0 (or other designation) serves as the base project cost, schedule and scope and is the basis for reporting quarterly progress in the Progress Report defined in the Federal Assistance Reporting Checklist and Instructions A. Objective The objective of this program will be to strengthen and expand State and local government understanding of energy assurance and develop planning and resiliency by incorporating regional and statewide cooperative response actions that match energy demand into existing and new energy portfolios while developing Smart Grid technologies and applications. The project is anticipated to Page 9 of 12

10 build in-house energy assurance expertise among all stakeholders including state and local governments by training existing and perhaps new personnel to deal with energy assurance issues. The plan will help to build regional and state-wide energy assurance capability by establishing both digital and person to person communications networks among the stakeholders in the region. B. Scope of Work To accomplish the objectives listed above, a new cooperative Work Group comprised of national, regional, state-wide, and local stakeholders will be established. Each of the stakeholders will increase their in-house knowledge of energy assurance by identifying vulnerabilities, critical infrastructure interdependencies, cyber security, energy supply systems, energy data analysis, and communications specific to their group s particular needs. It will guide the development of new Energy Assurance Plans and the refining of existing Plans by incorporating response actions into new and existing energy portfolios including Smart Grid technologies. The Energy Assurance section of the existing Idaho Emergency Operations Plan will be updated to assure blending of the new plans with the old. Under the charter of the Work Group, a system for tracking the duration, response, restoration and recovery time of sudden energy supply disruption events will be developed. Also included will be a system to train appropriate personnel on energy infrastructure and supply systems. The training will include the content and execution of energy assurance plans for each of the stakeholders organizations as they pertain to all recognized Northwest Energy Distribution Systems. During the project period, both inter- and intra-state energy emergency exercises will be set up and conducted to evaluate the effectiveness of the Energy Assurance Plans established. Adjustments to the plan will be made as appropriate. The Idaho Office of Energy Resources will track and report on the number of Idaho Energy Assurance Plans that have been created or substantially revised, the number of jobs that have been created or retained among the stakeholders as a result of the work done under the grant, the number, locations and outcomes of energy assurance training sessions, workshops and exercises conducted and the number of people trained. C. Tasks to be Performed Task 1.0 Project Management Plan One of the first assignments of the Work Group will be to advise the Idaho Office of Energy Resources in the development of the Project Management Plan. The plan will incorporate all elements of Attachment C of the Solicitation including an Executive Summary, Risk Management, a Milestone Log, a Funding and Costing Profile including a monthly spending plan for all 3 years, a project timeline, a listing of success criteria and a copy of the Statement of Project Objectives. This plan will be developed and delivered to DOE within 60 days of the grant award. Task 2.0 Workforce Development Plan Within 90 days of the award, the Work Group will advise the Idaho Office of Energy Resources in the development of a Workforce Development Plan. The plan will outline the methods and schedule for developing in-house expertise for all stakeholders including key staff from those State of Idaho Departments and Organizations that are members of the Work Group. The training will emphasize Smart Grid applications and vulnerabilities, critical infrastructure interdependencies, cyber security, energy supply systems, energy data analysis, and communications. The plan will also address hiring, retaining, and training personnel in these areas. Task 3.0 Energy Assurance Planning Upon award of the grant, the Idaho Office of Energy Resources will begin drafting an RFP to hire a contractor that will assist the Work Group in the Page 10 of 12

11 development of the Energy Assurance Plan document. Under the contract, the contractor will be responsible for writing Statewide and local Energy Assurance Plans that will dovetail into existing regional plans. They will review and evaluate the existing Energy Assurance Plan in the Idaho Emergency Operations Plan and incorporate changes as needed. Task 4.0 Energy Supply Disruption Tracking Process The Work Group will be tasked to develop a plan and a system to track the duration, response, restoration, and recovery time of energy supply disruption events. Ongoing cost of maintaining whatever system is developed is expected to be borne by the stakeholders as they will need to track these events anyway. The Work Group will choose from among stakeholders an organization that will be responsible for maintaining a consolidated repository for statewide event tracking. Task 5.0 Energy Assurance Exercise To evaluate the effectiveness of the plans, intra- and interstate exercises will be conducted. These exercises, done in conjunction with Idaho s Bureau of Homeland Security and the Idaho Public Utilities Commission, may be either table-top or in-field exercises that detail energy emergencies and/or disruptions that would be indicative of problems that would be experienced in Idaho. Such exercises may include natural disasters such as forest fires, earthquakes, landslides and avalanches, severe ice and snow storms, floods, or tornadoes. Other exercises may include man caused disasters such as terrorist activities, transportation accidents, and military exercises. Subtask 5.1 Conduct intra-state training/exercise As the program is developed, training will be offered to geographic regions around the state. Training will include exercises that will simulate conditions and situations that have a higher probability of occurrence in the area where the training will be occurring. These training exercises will likely be tabletop exercises conducted within the classroom setting. Subtask 5.2 Participate in and/or conduct inter-state/regional exercise In addition to the statewide training program, the Office of Energy Resources will participate in regional exercises similar to those being developed under the statewide training program. The extent of the exercise will be determined by the coordinated efforts of the work groups and teams from around the region. D. Deliverables Deliverable 1.0 Project Management Plan The initial Project Management Plan will be published by the Idaho Office of Energy Resources, the grant recipient, based on information and direction given by the Work Group. The document will be delivered to the Department of Energy within 60 days from the date of grant award. Deliverable 2.0 Workforce Development Plan A Workforce Development Plan will be published by the Idaho Office of Energy Resources, the grant recipient, based on input and direction given by the Work Group. The document will be delivered to the Department of Energy within 90 days from the date of grant award. Deliverable 3.0 Energy Assurance Plan While the Idaho Office of Energy Resources is in the process of writing the Project Management Plan and the Workforce Development Plan, a Request for Proposal for hiring a contracted Energy Assurance professional firm to draft the Energy Assurance Plan and coordinate reporting activities will be developed. This will offer work to local businesses in the community and will help to stimulate Idaho s economy. The Energy Assurance Plan, drafted by the successful contractor, will be based on input and direction from the Work Group. The Idaho Office of Energy Resources will provide facilitation functions for the work group and contractor. Page 11 of 12

12 They will also provide Department of Energy coordination and program management. Deliverable 4.0 Event Tracking Process Documentation Stakeholders from the region will be tasked to develop the methods and systems necessary to track disruption events. Documentation for the system including instructions and training manuals will be developed by the contractor based on input and direction from the Work Group. Deliverable 5.0 Energy Assurance Exercise Summary Within 24 months of the conclusion of the project, a summary report will be developed that outlines the training and exercises and the results of those exercises. The report will include information from all of the training and exercises including both inter-state and intra-state activities. Deliverable 5.1 Intra-State Exercise report with After-Action report After the Energy Assurance Plan has been developed, a schedule of training and exercises will be developed, published and delivered to the Stakeholders. The schedule will include invitations to local organizations and groups interested in participating in the activity. A registry of attendees will be kept. Within 30 days of the conclusion of each training, an after-action report will be created and delivered to the Department of Energy. Deliverable 5.2 Inter-State Exercise report with After-Action report The State of Idaho will cooperate with other Energy Assurance Organizations from other states in the region to participate in at least one regional training exercise. Within 30 days of the conclusion of the exercise, an after-action report will be drafted and sent to the Department of Energy. Page 12 of 12

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