Realizing the Potential of Industrial Energy Efficiency-

Superior Energy Performance and ISO 50001- Energy Management

June 18, 2009CEI Workshop

Aimee McKaneLawrence Berkeley National Laboratory

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What are Industry’s Priorities?

Current

1. Stay profitable

2. Operate a safe workplace

3. Be compliant with environmental regulations

4. Meet legal and social responsibilities

5. Monitor supply chain for potential liability

Emerging

6. Manage GHG emissions, carbon footprint

Why Isn’t Industry More Energy Efficient?

• The business of industry is not energy efficiency• Facility engineers typically do not become CEO or CFOs• Budgets are separate for equipment purchases and operating

costs• Data on energy use of systems is very limited • Difficult to assess performance or evaluate performance

improvements• Opportunities to become more

energy efficient are overlooked

Industry and Energy Management

• Most energy efficiency in industry is achieved through changes in how energy is managed in an industrial facility, rather than through installation of new technologies;

• Companies that establish an energy management plan gain a number of benefits:

—Develop a baseline of energy use

—Actively managing energy use and reduce costs

—Reduce emissions without negative effect on operations

—Continue to improve energy use/product output over time

—Document savings for internal and external use (e.g. emission credits)

Impact of Energy Efficiency Policies in Japan

1,327

1,273

1,192

1,101 1,101

1,059 1,059

1,000978

951

1,036

1,013

1,013

985

1,0491,091

1,051

1,0701,077

1,037

1,0441,021

1,059

1,036

1,038

1,050

1,1311,142

1,345

1,405

1,467

1,566

1,573

1,438

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

Fiscal Year

Pri

ma

ry e

ne

rgy

co

ns

um

pti

on

/ G

DP

Ton oil eq. / Billion yen

2nd Oil Crisis

1st Oil Crisis Source: METI/General Energy Statistics

10 years

Improvement by 30%

10% improved for 20 years

Main Improvement*Energy Management*Energy Efficient Equip.*Efficient Process Tech. R&D

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Why an Energy Management Standard?

• An energy management standard provides a method for integrating energy efficiency into existing industrial management systems for continual improvement;

• All existing and planned energy management standards are compatible with ISO 9000/14000;1

• Companies who adopt an energy management standard are able to reduce energy use and improve operations, even if they are already complying with ISO 14001.

• Also applicable to commercial, institutional, and transportation sectors

1 International Organization for Standardization (ISO)

Components of an EM Standard

Typical features include:1. an energy management plan that requires

measurement, management, and documentation for continuous improvement for energy efficiency;

2. a cross-divisional management team led by a representative who reports directly to management and is responsible for overseeing the implementation of the strategic plan;

3. policies and procedures to address all aspects of energy purchase, use, and disposal;

Components of an EM Standard, con’t

4. projects to demonstrate continuous improvement in energy efficiency;

5. creation of an Energy Manual, a living document that evolves over time as additional energy saving projects and policies are undertaken and documented;

6. identification of energy performance indicators, unique to the company, that are tracked to measure progress; and

7. periodic reporting of progress to management based on these measurements

ANSI MSE 2000:2008

www.ansi.org

Criteria for Superior Energy Management

Top management support

Suitable Resources

Well-defined goals, metrics and project plans

Organizationally Integrated

Continual Improvement Structure

Sustainable!

Energy Management Standards

Current Status • Several countries already have national energy

management standards (Denmark, Ireland, Sweden, US, Thailand, Korea)

• The EU has developed a regional energy management standard, pr EN 16001

• Energy management standards are under development in China, Spain, and Brazil

• ISO has initiated work on an international energy management standard (2008-2011) through Project Committee 242

• Preparatory assistance from the United Nations Industrial Development Organization (UNIDO)

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ISO 50001: Energy management – Requirements with guidance for use

Scope Standardization in the field of energy management,

including: • energy supply, • procurement practices for energy using equipment and

systems, • energy use, and • any use-related disposal issues.

The standard will also address measurement of current energy usage, and implementation of a measurement system to document, report, and validate continual improvement in the area of energy management.

ISO Project Committee 242

• Secretariat is co-led by the American National Standards Institute (US) and Associação Brasileira de Normas Técnicas (Brazil)

• September 8-10, 2008, 1st PC 242 Meeting in Arlington, VA, USA– 35 participating countries from all regions of the world, as

well as UNIDO, which has liaison status– Two-year accelerated schedule to have ISO 50001 ready

for publication by early 2011• March 9-12, 2009, 2nd PC 242 Meeting in Rio de Janeiro, Brazil

– PC 242 has already prepared two Working Drafts and will issue a Committee Draft in June 2009

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ISO 50001- potential impact

The future ISO 50001 will:• Establish a framework for industrial plants, commercial

facilities or entire organizations to manage energy• Have broad applicability across national economic

sectors, potentially influence up to 60 % of the world’s energy use.

Driving the uptake of ISO 50001- Energy management

in the United States

Superior Energy Performance (SEP)

A U.S. industry initiative that provides industrial facilities with a road map for achieving continual improvement in energy efficiency while maintaining competitiveness.

Superior Energy Performance goals:

• Encourage broad participation through tiered approach

• Use ISO 50001 standard as foundational energy management system

• Drive continual performance improvement in energy intensity

• Foster an organizational cultureof continuous improvement in energy efficiency in U.S. manufacturing facilities

• Develop a transparent systemto validate energy intensity improvements and management practices (conformance with ISO 50001)

• Create a verified record of energy source fuel savings and carbon reductions with potential value in state, regional, national and international markets

Superior Energy Performance Strategy

— Champion of U.S. industry in implementing and achieving national energy efficiency policy goals.

— Seeks to improve the energy intensity of U.S. manufacturing through a series of initiatives.

— Guides development of the Superior Energy Performance

U.S. Council for Energy-Efficient Manufacturing

Benefits of ANSI-accredited SEP Certification to Manufacturing Plants

• Establishes systematic framework to achieve continuous improvement based on application of an energy management standard

– Initially, the US energy management standard American National Standards Institute (ANSI)MSE 2000-2008, to be supplanted by ISO 50001 energy management in early 2011

– American Society of Mechanical Engineers (ASME) system assessment standards (compressed air, process heating, pumping, and steam)

– Tools and resources to assist implementation and validation of energy performance improvement

Benefits of ANSI-accredited SEP Certification to Manufacturing Plants

• Certified plants receive recognition from:

– Public – recognized leader in sustainable use of energy resources (local and financial community)

– Supply chain – customer gives preferred supplier status

• Increases access to external financial incentives

– Energy efficiency programs (electric utility & others)

– Carbon credits – state, region and national

Certified by ANSI-accredited Certifying Body (initially KEMA in 2009, then others in 2010) in two areas:

1. Energy Management System Conformance - ANSI MSE 2008 standard and eventually ISO 50001 standard

2. Validated Energy Performance Improvement – Third party measurement & verification to meet minimum SEP energy intensity performance improvement requirements

Getting Superior Energy Performance Certified

How SEP Supports and Builds the Industrial Energy Efficiency Market

Implementation of an energy management system and independent validation of energy intensity improvements can provide benefits to:

Supply Chains • Provides a pro-active turnkey program for major OEMs and retailers to request their suppliers to meet the program requirements

ESCOs • Builds greater credibility with industrial customers and a stronger business case for providing third-party energy efficiency services and off-balance sheet capital investments

Utilities • Empowers a plant-wide, systems-oriented approach• Helps justify industrial energy efficiency program investments,

including permanent operational changes, to public utility commissions

SEP Program Development Status

EnergyManagement

Standard

EnergyManagement

Standard

System AssessmentStandards

System AssessmentStandards

Measurement & Verification

Protocol

Measurement & Verification

Protocol

• Revised ANSI Management System for Energy (2008)• Developed training and coaching materials for five pilot plants on MSE 2008• Formed US/ANSI Technical Advisory Group; participated in first and second ISO PC 242 meetings to move toward ISO 50001 Committee Draft

• Revised ANSI Management System for Energy (2008)• Developed training and coaching materials for five pilot plants on MSE 2008• Formed US/ANSI Technical Advisory Group; participated in first and second ISO PC 242 meetings to move toward ISO 50001 Committee Draft

OverallOverall• Developed Superior Energy Performance program strategy with SEPsteering committee (now US Council for Energy Efficient Manufacturing)• Established pilot program with five Texas plants; held 3 trainings, coaching• Established US leadership in ISO 50001 standard development

• Developed Superior Energy Performance program strategy with SEPsteering committee (now US Council for Energy Efficient Manufacturing)• Established pilot program with five Texas plants; held 3 trainings, coaching• Established US leadership in ISO 50001 standard development

• Formed four ASME technical committees to develop standards• Completed four draft ASME standards (pump, steam, process heating andcompressed air) and supporting guidance• Field tested standards and revising standards based on industry feedback

• Formed four ASME technical committees to develop standards• Completed four draft ASME standards (pump, steam, process heating andcompressed air) and supporting guidance• Field tested standards and revising standards based on industry feedback

• Produced draft measurement and verification (M&V) protocol to baselineand measure energy intensity performance improvement• Hosted meeting of utilities and M&V Experts to discuss and provide feedback

• Produced draft measurement and verification (M&V) protocol to baselineand measure energy intensity performance improvement• Hosted meeting of utilities and M&V Experts to discuss and provide feedback

Certifying Organizations for Professionals (TBD)

Certifying Organizations for Professionals (TBD)

Standards & Protocols

Standards & Protocols

SEP Planned Infrastructure

ParticipatingSEP program

ManufacturingPlants

Energy Management Practitioners

Energy Management Practitioners

System Assessment Practitioners

System Assessment Practitioners

Certified SEP Program Validation Specialists

Certified SEP Program Validation Specialists

SEP Program AdministratorSEP Program Administrator

ANSI-accreditedCertifying Bodies (TBD)

ANSI-accreditedCertifying Bodies (TBD)Energy

Management Standard

EnergyManagement

Standard

System AssessmentStandards

System AssessmentStandards

Measurement & Verification

Protocol

Measurement & Verification

Protocol

Superior Energy Performance Program Design

• The 3-tiered program accommodates:

— Maturity of plant’s energy management program

— Level of external validation desired

— Business climate/cycle

PARTICIPANT

Self-declaration

PARTNER Third party

remote verification

CERTIFIED PARTNER

ANSI-accredited certification

Major Milestones: 2009-2013

• Sept. 2009: M&V protocol ready for pilot plant application

• Sept. 2009: Request applications from five Texas plants

• Oct. 2009: Hold state-regional SEP pilot plant workshop to coordinate pilot plant program

• Oct. 2009: First plant applies to SEP program

• Nov. 2009: Complete first plant on-site audit and review of conformance to SEP program requirements

• Apr. 2010: Select SEP Program Administrator by conducting DOE solicitation

• June 2010: Establish accredited Certified Practitioner professional certification organizations for energy management and SEP validation specialists

• June 2010: First (five) plants certified through ANSI-accredited Certifying Body

• Aug. 2010: Establish accredited Certified Practitioner professional certification in four system areas

• Nov. 2010: Begin training Certified Practitioners in energy management and SEP validation specialists through ANSI-accredited professional certifiers

• Jan. 2011: Begin training Certified Practitioners in four system areas through ANSI-accredited professional certifiers

• Apr. 2011: ISO 50001 Energy Management Standard published; replaces ANSI standard

• June 2011: National launch of Superior Energy Performance Program

• June 2013: SEP program self-sustaining on program fees

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For more information

Superior Energy Performancewww.superiorenergyperformance.net

DOE Manager: Paul Scheihing Paul.Scheihing@ee.doe.gov

Energy Management Standards and System Standardshttp://industrial-energy.lbl.gov/node/94

ISO 50001http://www.unido.org/index.php?id=o86084http://www.iso.org/iso/pressrelease?refid=Ref1157

atmckane@lbl.gov