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ENERGY STAR®

& Its Work with Manufacturers

ENERGY STAR Industrial Sectors Team

U.S. EPA

October 27, 2009

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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

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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

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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

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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

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Why energy management?

Strategic energy management is

basic to the control of climate risk

(i.e. carbon dioxide emissions)

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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

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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

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What distinguishes manufacturersachieving superior energy performance?

Superior energy management based on the

principle of continuous improvement

Acknowledgement, recognition & and national exposure

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Why manufacturersparticipate in ENERGY STAR

• Share best practices– Learn from each other– Share new technologies

• Reduce energy costs & emissions

• Demonstrate environmental leadership

• Improve competitiveness

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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

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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

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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

Evaluate a corporate

energy program

Little or no evidence Some elements Fully implemented

Energy DirectorNo central or organizational resource Decentralized management

Central or organizational resource not empowered

Empowered central or organizational leader with senior management support

Energy Team No company energy network Informal organizationActive cross-functional team guiding energy program

Energy Policy No formal policyReferenced in environmental or other policies

Formal stand-alone EE policy endorsed by senior mgmt.

Gather and Track Data Little metering/no trackingLocal or partial metering/tracking/reporting

All facilities report for central consolidation/analysis

Normalize Not addressedSome unit measures or weather adjustments

All meaningful adjustments for organizational analysis

Establish baselines No baselines Various facility-establishedStandardized organizational base year and metric established

BenchmarkNot addressed or only same site historical comparisons

Some internal comparisons among company sites

Regular internal & external comparisons & analyses

Analyze Not addressedSome attempt to identify and correct spikes

Profiles identifying trends, peaks, valleys & causes

Technical assessments and audits Not conducted Internal facility reviewsReviews by multi-functional team of professionals

Determine scope No quantifiable goalsShort term facility goals or nominal corporate goals

Short & long term facility and corporate goals

Estimate potential for improvement No process in placeSpecific projects based on limited vendor projections

Facility & organization defined based on experience

Establish goals Not addressed Loosely defined or sporadically appliedSpecific & quantifiable at various organizational levels

Define technical steps and targets Not addressedFacility-level consideration as opportunities occur

Detailed multi-level targets with timelines to close gaps

Determine roles and resources Not addressed or done on ad hoc basisInformal interested person competes for funding

Internal/external roles defined & funding identified

Create a communication plan Not addressedTools targeted for some groups used occasionally

All stakeholders are addressed on regular basis

Raise awareness No promotion of energy efficiency Periodic references to energy initiativesAll levels of organization support energy goals

Build capacity Indirect training only Some training for key individualsBroad training/certification in technology & best practices

MotivateNo or occasional contact with energy users and staff

Threats for non-performance or periodic reminders

Recognition, financial & performance incentives

Track and monitor No system for monitoring progress Annual reviews by facilitiesRegular reviews & updates of centralized system

Measure results No reviews Historical comparisonsCompare usage & costs vs. goals, plans, competitors

Review action plan No reviews Informal check on progressRevise plan based on results, feedback & business factors

Make Commitment to Continuous Improvement

ENERGY STAR® Energy Management Assessment Matrix

Evaluate Progress

Recognize Achievements

Implement Action Plan

Create Action Plan

Set Performance Goals

Assess Performance and Opportunities

Evaluate plant/facility energy management

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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

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Benchmark facilityenergy 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

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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?

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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

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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.

Specialized industry focusesFocus Industry Year in

ProgressPeer Exchange

ForumEnergy Guide Energy

Performance Indicator (EPI)

Cement 3 Yes Complete Complete

Corn Refining 4 Yes Complete Complete

Food Processing

2 Yes Final draft Under testing

Glass 2 Yes Final draft Under testing

Motor Vehicle 5 Yes Complete Complete

Petrochemical Initiated Initiated Planned Exploring options

Petroleum Refining

2 Yes Complete System available

Pharmaceutical 2 Yes Complete Under testing

Pulp & Paper Initiated Initiated Planned Exploring options

Plant energy

performance indicators

(EPIs)- download

from industrial

site- benchmark

a plant’s energy

nationally

Plant Characteristics

Current Year Baseline YearSIC Code: 3711 (Motor Vehicle Assembly) Select Year:

Zip Code: 21737 222,000 210,000

Location: Frederick, MD 65.0 65.0

30 Year HDD 4,707 222,040 222,040

30 Year CDD 1,137 100% 95%

Notes: HDD:

CDD:

120.0 120.0

no yes

Energy ConsumptionElectricity Gas Distillate Oil Residual Oil Coal Other

Select Units

Current Year Annual Consumption 242,926 1,786,265

(2005) Annual Cost ($) 9,474,114 10,870,649

Baseline Year Annual Consumption 269,856 2,111,012

(2004) Annual Cost ($) 10,524,384 12,846,957

Total Site Energy Results

EPI

Annual Energy Cost ($/year)

Number of Vehicles

$ Energy/vehicle

Energy Output Ratio (mMBtu/vehicle)

% Utilization (production/capacity):

Wheelbase of the largest vehicle produced (inches):

Is this plant air - tempered ?:

Current Year (2005)

$23,371,341

Average Plant Efficient Plant

91.64

11.78 6.58

$20,344,763

14.44

Current (2005) Baseline (2004)

111.29

Energy Performance Indicator Tool for Automobile Assembly Plants9/5/2006

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Your PlantYour Plant

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Use this space to describe the source of HDD/CDD data

used to compute the EPI score.

Production (# of vehicles):

Line speed (vehicles per hour):

Capacity (# of vehicles):

38.72

(2005)

50

$10,196,401

45.93

5.28

Baseline Year (2004)

222,000 210,000 222,000 222,000

75

(2005)

$8,594,845

MWH mMBtu Gallons Gallons Short Tons

-

0.20

0.40

0.60

0.80

1.00

1.20

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

mMBtu per vehicle

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Per

cen

tile

mMBtu

-

0.20

0.40

0.60

0.80

1.00

1.20

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

mMBtu per vehicle

Fre

qu

ency

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Per

cen

tile

2005 2004

mMBtu/vehicle = 11.78

EPI = 14

# of vehicles = 222,000

EPI = 8

mMBtu/vehicle = 14.44

# of vehicles = 210,000

Back

Electric Fuels

EPIs provide Statement of

Energy Performance

STATEMENT OF ENERGY PERFORMANCE

Add Facility Name Here

For 12 month period ending: Month/Day/Year

Facility Address Owner's Address Corporate Energy Manager ContactFacility Name Owner's Name Contact NameStreet Address Street Address Email AddressAddress 2 Address 2 Phone NumberCity, State City, State21737 ZIP

Automobile Assembly Plant EPI Result

Energy Performance Score: 14

Professional VerificationProfessional Engineer NameAddressAddress 2City, State ZIPPhone Number:Licensed Number:Licensing State:

EPI Verification

NOTE:

For US EPA Use Only:

3. An energy performance score of 75 is the minimum required rating to be considered eligible for the ENERGY STAR.

Professional Engineer Stamp

Based on the conditions observed at the time of my visit to this facility, I certify that the information used in this tool to generate the energy performance score represented on this statement is accurate.

1. Applications for recognition of plant energy performance to the US EPA must be made within 4 months of Period Ending date. Award of the ENERGY STAR is not final until approved by the US EPA.

2. All EPI scores and supporting data must first be verified by the US EPA or a US EPA-designated EPI reviewer if supporting data is considered to be confidential business information (CBI) before submitting applications for the ENERGY STAR.

EPI attached for EPA review.

EPI contains confidential business information and has been sent to the designated reviewer.

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Next focus industries

• Selection criteria

• Potential new directions

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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

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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

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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

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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

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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

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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

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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

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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

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Resources

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

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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 …

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A role for energy efficiency programs

• How can we make it easier for industrial customers to participate in ENERGY STAR?