Focus on Energy Industrial Sector Update John Nicol Focus on Energy June 24, 2010

Focus on Energy Program Mission Accelerate energy efficiency in Wisconsin by supporting projects that otherwise would not be completed

Why Focus on Energy? Approx 2/3 of each energy $1 leaves Wisconsin Efficient businesses are more competitive Wisconsin’s home owners & businesses save more than $250m annually with Focus programs Increases in efficiency will reduce the need for future power plants

Focus on Energy Programs Residential (single and multi-family) Renewable Energy Business Schools & Government Commercial Industrial Agricultural Target Sectors Pulp & Paper Food Processing Metal Casting Plastics Waste & Wastewater

Industrial Energy In Wisconsin Electricity 24,329 GWh Natural gas 1.4 Trillion therms Industrial market 35% of total energy IndustryElectricityNat. Gas Pulp & Paper30%18% Food & Dairy13%18% Metal Casting10%12% Chemicals5%10% Printing4%2% Glass1%5% Other Industrial37%35%

Focus on Energy Industrial Program Over 2,000 industrial facilities have participated

Technical Facility-wide assessments System assessments Project-specific assessments Industrial Best Practices Emerging Technologies Facilitated Energy Management Training & Awareness Financial Prescriptive Incentives Custom Incentives Study Grants Service Grants Renewable New Construction Special Incentives Special Promotions Focus on Energy Assistance

Renewable for Business Now under each Sector (ie: Industrial) Biomass Combustion Biomass Digestion Solar Electric Solar Water Heating Distributed Wind

Special Incentives Incentive options that offer flexibility for businesses “RFP” programs: businesses can “bid” on incentives needed to complete a project. Winning proposals are selected on competitive basis Staffing Grants: initiative that funds the staff time required to get energy efficiency projects implemented. Also a competitive grant.

Technical Facility-wide assessments System assessments Project-specific assessments Industrial Best Practices Emerging Technologies Facilitated Energy Management Training & Awareness Financial Prescriptive Incentives Custom Incentives Study Grants Service Grants New Construction Renewable Special Incentives Special Promotions Focus on Energy Assistance

Best Practice Technologies Off-the-shelf, market-proven technologies Little or no perceived technological risk Focus incentives promote deployment

Common Industrial BP’s Lighting - Upgrade to T8 Fluor. - Occupancy Sensors Compressed Air -Repair Leaks -Reduce Pressure -Eliminate Inappr. Use -VSD Compressors -Waste Heat Reuse Pumps & Fans -Right-size Motors -Variable Speed Control Ventilation -Air Balance -Reduce Vol. of O.A. -System Controls

BP Sector Guidebooks Pulp & Paper (pulping rotors) Dairy Processing (floating head pressure) Plastics Industry (ceramic barrel heaters) Water & Wastewater (fine bubble diffusion) Metal Casting (reduce scrap) Process Specific Opportunities

Emerging Technologies Technologies that have not been adopted in Wisconsin Real or perceived technical risk Eligible for FOCUS incentives as well Investment or shared savings available

Program Updates Significant reductions in incentives (about 25%) starting July 1 st, 2010 Some incentives eliminated like: Compressed air leak repair Feasibility studies Boiler/Chiller tune-ups Steam trap repair

New Custom Incentives

Why Incentive Reductions? Reduced energy use in Wisconsin in 2008 and 2009 resulting in reduce program funds Strong participation in program during first half of 2010

Feedback Ultimate goal is to reduce energy costs for industrial businesses How can we make it work better for you?

Industrial Energy Metering Assistance and demonstration of increased energy metering and dashboards to increase energy use knowledge and control –Monitoring plan and follow through required –50% funding of new systems –Up to $20,000 in incentives

Staffing Grants Provide incentive for staff to manage and implement energy efficiency projects –Competitive –List of projects required –Payment when specific project is completed

Compressed Air Leak Repair Pay for qualified vendor to tag and fix most leaks –Leak repair can be low priority –Leaks on key equipment will be responsibility of facility personnel –No cost to facility except to participate in follow- up assessment

Other ideas? Provide funding for targeted national experts to provide process assessments Provide support for % of energy intensity reduction ????

Contact Information John Nicol focusonenergy.com