1. 1 ENERGY STAR ® & Its Work with Manufacturers ENERGY STAR Industrial Sectors Team U.S. EPA October 27, 2009

2. 2 Discussion History Emphasis on corporate energy management Overview of work with manufacturers Focus on specific industries –Plant energy performance indicators –Energy guides –Focus meetings Areas for coordination

3. 3 ENERGY STAR Government-backed program that helps businesses and industry protect the environment through superior energy performance by providing energy-efficient solutions for plants, businesses, and manufacturing processes Government-owned and controlled brand recognized by more than 60% of all U.S. households National symbol for environmental protection and energy efficiency

4. 4 Why manufacturers? Big energy users - about a third of the energy in the U.S. as a group Greenhouse gas emissions - about 27% of U.S. carbon dioxide emissions Room for improvement – energy intensity can be improved for most industries & companies

5. 5 History with manufacturers 1991 – EPA develops Green Lights, transformation of national market for energy-efficient lighting. Emphasized corporate commitment & worked with major manufacturing companies 1992 – EPA introduces ENERGY STAR with the first qualified product line of computers and monitors 1996 – EPA launches ENERGY STAR effort to improve energy use in buildings, working with owners of all types 2000 – EPA creates focus under ENERGY STAR for manufacturing energy. Works with U.S.-based manufacturing industries to improve corporate energy management

6. 6 Why energy management? Strategic energy management is basic to the control of climate risk (i.e. carbon dioxide emissions)

7. 7 Approach Corporate-wide energy management –Work with industries and companies to improve strategic energy management at the CORPORATE level Manufacturers of all types with specialized focuses for individual sectors

8. 8 Why corporate energy management? Energy management often is: –Decentralized –Not part of a company’s core business –Technology-oriented –Project- and not system-oriented –Considered capital intensive –Not viewed as a profit center Result: important energy savings are missed because the company lacks a means for controlling energy use across all operations

9. 9 What distinguishes manufacturers achieving superior energy performance? Superior energy management based on the principle of continuous improvement Acknowledgement, recognition & and national exposure

10. 10 Why manufacturers participate in ENERGY STAR Share best practices –Learn from each other –Share new technologies Reduce energy costs & emissions Demonstrate environmental leadership Improve competitiveness

11. 11 Emphasis with manufacturers Centralized corporate energy management –ENERGY STAR systems approach for the continual improvement of energy performance –ENERGY STAR and its tools support this central goal –Avoids duplication with other Federal and state programs

12. 12 Promoting corporate energy management Basic energy management: ENERGY STAR Guidelines for Energy Management –Energy Management 101 –Successful: second most download from Buildings & Plants web page Energy program assessment matrix –Assess areas for improving corporate program Facility energy assessment matrix –Assess areas for improving energy management in plant or facility Teaming up to save energy –How to for pulling a corporate-wide energy team together Communication resources –Posters and other materials Partner networking –Available to commercial and industrial partners Partnership with ENERGY STAR –Elevates energy management to executive level Recognition –Partner of the Year –ENERGY STAR for plants – new label for energy-efficient plants

13. 13 Steps for successful energy management ENERGY STAR Guidelines for Energy Management -outlines steps to close the gap between energy leaders and laggards -based on best practices from ENERGY STAR partners -www.energystar.gov

14. Evaluate a corporate energy program

15. Evaluate plant/facility energy management

16. 16 Goals of work with specific industrial sectors FOCUSES identify best performance and promote corporate energy management Assist companies to develop strong corporate energy management programs Encourage use of benchmarking for measuring improvement at the plant level Promote use of available technology now Enable companies to learn from each other - efficiency forum

17. 17 Benchmark facility energy efficiency A critical step in energy management –Enables aggressive and realistic target setting –Supports finding and applying best practices along with proving their value ENERGY STAR: Performance is proven by numbers EPA’s National Performance Rating System –Commercial & industrial facilities Commercial buildings – rating system available for over 50% of U.S. commercial floor space Industrial facilities – plant energy performance indicators (EPIs) for 3 plant types and in development for 4 more

18. 18 Answer: Common Knowledge Plant benchmarking – difficult for most industries Is 10 MPG high or low for a 2-door economy car? Answer: ? Is 10 mMBtu per vehicle high or low?

19. 19 Specific assistance for the industrial sectors Annual industrial focuses –Create momentum for continued improvement of energy efficiency –Identify and tackle barriers to energy efficiency in the industry –Promotes networking, refinement of tools, and sharing of best practices specific to the industry Energy guides –Discuss the energy efficiency opportunities in a specific industry’s manufacturing plants Plant energy performance indicators (EPIs) –Enables benchmarking of plant energy performance to the national industry –Developed in cooperation with industry –Empowers corporations to set goals for improvement and monitor progress

20. 20 EPA objectives for the EPIs Enable a higher level of energy management Enable industry to answer the question: “If all plants in the industry look just like this one, what percent would be better performers and what percent would be worse?” Provide a ranking/percentile score of a plant’s energy performance in the industry, relative to best observed performance within the specific industry –Base the EPI on actual energy use patterns in the industry and activities that influence energy use –Normalize to the plant’s configuration and activities –Relate energy inputs to plant outputs, primary business of a plant –Based on activities that influence energy use, e.g. heating/cooling loads, material inputs, etc.

21. Specialized industry focuses Focus IndustryYear in Progress Peer Exchange Forum Energy GuideEnergy Performance Indicator (EPI) Cement3YesComplete Corn Refining4YesComplete Food Processing 2YesFinal draftUnder testing Glass2YesFinal draftUnder testing Motor Vehicle5YesComplete PetrochemicalInitiated PlannedExploring options Petroleum Refining 2YesCompleteSystem available Pharmaceutical2YesCompleteUnder testing Pulp & PaperInitiated PlannedExploring options

22. Plant energy performance indicators (EPIs) - download from industrial site - benchmark a plant’s energy nationally

23. EPIs provide Statement of Energy Performance

24. 24 Next focus industries Selection criteria Potential new directions

25. 25 ENERGY STAR Partnership Available to manufacturing companies –Associate corporate reputation with a successful, national symbol of environmental protection and energy efficiency –Learn from the network of corporate partners

26. 26 Recognition Partner of the Year –Recognizes leadership in corporate energy management Labels –Plants and buildings that score in top 25 percent nationally using EPA-designated system

27. 27 Sampling of industrial partners General Motors Corporation CEMEX Pfizer National Starch and Chemical Dow Chemical DuPont Ford Motor Company 3M Kraft General Mills Sunoco ExxonMobil Merck Lafarge Hewlett Packard Raytheon Toyota Johnson & Johnson Boeing UTC

28. 28 ENERGY STAR for plants EPA develops or recognizes qualified national energy rating system for specific industrial plant types Plant must score in the top quartile (top 25%) for energy performance for plant type nationwide Professional engineer certifies application and data inputs used to compute plant energy rating are correct, then stamps Statement of Energy Performance Corporate energy directors apply and maintain data file compliant with EPA requirements and subject to potential EPA inspection EPA determines award of ENERGY STAR. EPA issues: –Plant banner/flag materials –Bronze plaque –Certificate of achievement

29. 29 ENERGY STAR Partnership Corporations: –Associate corporate reputation with a successful, national symbol of environmental protection and energy efficiency –Learn from the network of corporate partners

30. 30 Service and Product Providers Directory of Service and Product Providers (SPPs) –Compilation of businesses available to assist with identification, prioritization and implementation of quality energy improvements –Industrial SPPs Teaming profiles Directory identifies those who work with industrial companies –New direction Highlighting suppliers to the focus industries

31. 31 ENERGY STAR Industrial Team Betsy Dutrow, Team Lead dutrow.elizabeth@epa.gov –Sectors: cement, food processing, glass, motor vehicle, petrochemicals, petroleum –Program evaluation –Next generation energy management strategies –New directions (NAM, DOE, etc.) Walt Tunnessen, Sector Manager tunnessen.walt@epa.gov –Sectors: corn refining, pharmaceutical, pulp & paper –Networking for commercial and industrial partners –Financial sector outreach –ENERGY STAR campaign coordination (e.g. Change a Light) Nicole Hillis, Communications Manager hillis.nicole@epa.gov –Plant labeling –Website management –Industrial service & product providers –Sector: cement –Communications

32. 32 Heads up DOE initiative to certify plant-level energy efficiency of U.S. plants –ANSI standard development Plant level management standards Additional standards for steam, process heating, compressed air, pumping) –EPA invited to participate –Read more at www.superiorenergyefficiency.net

33. 33 Resources All energy guides, EPIs, guidelines, matrices, etc. can be downloaded directly for use from: – www.energystar.gov/industry

34. 34 Areas for coordination Using the EPIs with eligible plants in the region Using the Energy Guides to evaluate plant opportunities Using the matrices to evaluate programs And more …

35. 35 A role for energy efficiency programs How can we make it easier for industrial customers to participate in ENERGY STAR?