Energy Efficiency Efforts and Initiatives in Alabama DOUG SWEET, P.E. Doug Sweet & Associates, Inc. Power-Up Forum – Birmingham, AL Dec. 12, 2013

Quick Comments on the Paper Industry in Alabama Alabama is 2nd largest pulp & paper producer in the US – 8.6 million tons/day 70,000 employees in AL forest products industries - $2.2 billion in payrolls Timber expansion is outpacing removal by 23 percent - increased by 1.1 million acres since 1978 Energy intensive but pulp mills can use wood, bark and pulping by-products as fuel for boilers. Paper is not a dying industry Newsprint ↓ Packaging ↑ Magazines & printing →

Paper Industry

Energy Efficiency If a process cannot be measured, it cannot be controlled or improved: Paraphrased quote by Lord Kelvin, 1883 Energy cannot be created or destroyed, only transformed: First Law of Thermodynamics Energy Efficiency combines the knowledge of measured energy consumption with maximizing benefits from energy conversion to useful products (lighting, motors, heating/cooling, pumping, transportation, conveying, etc.) So, what are we doing to promote energy efficiency in Alabama?

Energy Efficiency – Some Key Efforts Permanent Joint Legislative Committee on Energy - PJLCOE NGA Policy Academy Governor Bentley – EO #25 ADECA – Energy Division Alabama Technology Network

PJLCOE Rep. Greg Wren – Chair, Sen. Cam Ward – Vice Chair Committee established in 2007 Several bills passed regarding fuel efficiency for state vehicles, life cycle costing, etc. Adopted 2009 International Energy Conservation Code

NGA Policy Academy on Industrial Energy Efficiency and Combined Heat & Power Sept 2012 thru May 2013 Alabama selected to participate along with 4 other states - Arkansas, Iowa, Illinois and Tennessee Recommendations included: Technical assistance and education on EE potential Annual IEE summit/forum Governor’s awards on EE accomplishments Student internship program to identify or implement efforts for EE which have been identified Assistance with meeting Boiler MACT compliance Potential tax benefits for EE investment and/or Boiler MACT compliance

Student Internship Program Working with ATN and others to create pilot program to run from May - August 2013 6 U of Alabama students and 6 manufacturing facilities – engineering & bus. management – 3.0 GPA minimum $760,000 of actual annual energy savings were identified and implemented Additional $260,000 identified 6,280 megawatt hours saved annually Successful program will be expanded to other schools in 2014

Governor’s Executive Order #25

Governor’s Executive Order #25 When: Dec 27, 2011 What: Understanding that state buildings and employees can be a model for EE practices since there is significant expense to the state for energy consumption by these facilities Goal: Reduce energy consumption by 30% by fiscal year 2015, relative to 2005 levels – Annual value is $5.4 million How: Energy officers designated, audits, education, tracking, use of USEPA Energy Star Portfolio Manager (not by reinventing the wheel). Significant assistance through ADECA – Energy Div. Score: 2012 savings = $3.9 million 2013 savings = $1.3 million (low estimate) Expect to exceed the goal by 5%

ADECA – Energy Division Alabama SAVES Energy Revolving Loan Program - $65 million pool for 1%, 10 year loans to implement EE projects – 30 businesses participating with $21.9 million of funding and $5.1 million in energy savings Administer Alabama energy codes Workshops and training to accomplish goal of EO #25 Alabama WISE Program – low interest loans for residential EE projects - $2.4 million in projects, mostly for local contractors Low income home energy assistance program (LIHEAP) – working with 22 community agencies to assist with heating and cooling costs

ADECA – Energy Division Alabama Energy Plan – Develop and issue RFP for assessment of energy issues, needs, concerns across Alabama in 2nd half of 2012 and early 2013 Contracted with Baker Tilley who prepared a survey Survey forwarded to stakeholders previously identified 417 responses submitted by deadline of 1-18-13 Highest priority (75%) – Pursue conservation and EE as a preferred energy source Other (65%) – reduce dependence on foreign oil, EE for transportation, maintain economic competitiveness for Alabama Project put on hold in spring 2013 due to funding limits because of sequester

Alabama Technology Network Existing organization already active in promoting EE, conservation, lean manufacturing, waste reduction, and sustainability for Alabama industries Many success stories E3 – Economy – Energy – Environment Worked closely with U of A in summer intern pilot program following NGA Policy Academy

Energy Efficiency and Conservation in Alabama – WHAT’S NEXT? Build on strengths Observe and implement successful programs used elsewhere – not just in Southeast Promote policy to enhance EE efforts while promoting economic growth Alabama is a great place to: live – work - and make stuff……. EFFICIENTLY