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1 Overview for Midwest Energy Efficiency Alliance April 23, 2013

MEEA Industrial Webinar: Better Buildings, Better Plants - How You Can Benefit

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The Department of Energy's (DOE's) Better Buildings, Better Plants Program is a national partnership initiative, building off the success of the Save Energy Now LEADER initiative, to drive significant improvements in energy efficiency across U.S. industry. Through this program, leading manufacturers partner with the Department to improve their energy intensity by 25% over ten years, develop energy management plans, and track and report their annual progress. The Energy Department helps these companies meet their goals by working with them to establish key energy performance metrics, evaluate energy-saving opportunities, and organize plant-level training events. This webinar, presented by Andre de Fontaine, will provide an overview of the Program, share benefits of joining, highlight successes to date, and preview upcoming activities in 2013. Andre de Fontaine is a Project Manager in the U.S. Department of Energy's (DOE) Advanced Manufacturing Office. At DOE, he manages the Better Buildings, Better Plants initiative, which is a voluntary energy savings partnership program for manufacturers. Prior to joining DOE, Andre was a Markets and Business Strategy Fellow at the Pew Center on Global Climate Change. Before that, he was a journalist in California, covering environmental policy in the state's capital. Andre holds an MA in public policy from Georgetown University and a BA in Political Science from UC San Diego. This webinar is part of the Midwest Energy Efficiency Alliance (MEEA) Industrial Webinar Series. Find out more at http://www.midwestindustrial.org.

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Overview for Midwest Energy Efficiency AllianceApril 23, 2013

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Advancing Energy Efficiency in Manufacturing

“Of course, the easiest way to save money is to waste less energy. So here’s a proposal: Help manufacturers eliminate energy waste in their factories and give businesses incentives to upgrade their buildings. Their energy bills will be $100 billion lower over the next decade, and America will have less pollution, more manufacturing, more jobs for construction workers who need them.”

—President Obama, 2012 State of the Union Address

Official White House Photo by Pete Souza

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Better Buildings, Better Plants Program & Challenge Overview

The Better Buildings, Better Plants Program & Challenge are the industrial components of the Better Buildings Challenge. DOE offers manufacturers two opportunities to engage in Better Plants based on their level of commitment.

U.S. Industrial Companies

DOE’s Better Buildings, Better Plants Program

Better Buildings, Better Plants Challenge

Challenge partners pursue innovative approaches to overcoming barriers to energy efficiency, showcase solutions, and provide transparency on results

Program Partners pledge energy saving goals consistent with national targets and agree to report progress annually to DOE

Challenge and Program are complementary initiatives that support the President’s goal of helping manufacturers save $100 billion in energy bills over the next decade

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Better Buildings, Better Plants Program Overview

• The Better Buildings, Better Plants Program builds on the success of previous DOE partnership programs

• Partners:– Set a 10-year, 25% energy intensity improvement target for all U.S.-

based manufacturing operations

– Develop energy management plans

– Track and report energy data annually to DOE

– Receive national recognition for their achievements

– Receive support from technical account managers on energy intensity baselining, energy management planning, and project identification

– Participate in In-Plant Trainings

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Energy Savings from Better Plants Program Partners

2010 2011 Cumulative

Energy intensity improvement (%) 2.84% 3.15% NA

Energy savings 14.9 TBTUs/yr 15.7 TBTUs/yr 45.6 TBTUs

Cost savings (million dollar) $80.7/yr $81.6/yr $240.5

Better Plants Program consists of 118 companies, representing over 1,400 plants and more than 6% of the total U.S. manufacturing energy footprint

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Better Plants Facility Locations

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Better Plants Presence in Midwest

Midwestern Presence

• 53 Better Plants Partners headquartered in the Midwestern region.

• 398 Better Plants facilities located throughout the Midwest representing 67 companies.

• Complete list of Partners available at: http://www1.eere.energy.gov/manufacturing/tech_deployment/betterplants/partners.html

Midwestern INPLTs• 3M, St. Paul, MN• Alcoa, Cleveland, OH• Cummins, Columbus, IN• GM, Fairfax, KS• GM, Wentzville, MO (planned)• Navistar, Springfield, OH• Neenah Foundry, Appleton, WI• Owens Corning, Newark, OH• Textron, Muskegon, MI• Toyota, Troy, MO

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Partner Benefits

Better Plants Program Partners receive: • National recognition through web profiles, annual recognition

letters from DOE leadership, invitations to special events, and other opportunities

• Access to a technical account manager (TAM) who can help the company establish an energy intensity baseline, refine metrics, identify energy saving opportunities, and introduce the company to tools and resources from DOE and other organizations

• In Plant Trainings, which are 3-4 day sessions that train multiple participants on identifying and implementing energy efficiency projects in major energy-use systems

• Access to the full suite of DOE tools and resources that help manufacturers maximize their energy productivity

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Partner Web Profiles

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In-Plant Trainings

• In-Plant Trainings (INPLTs) help develop energy efficiency expertise within companies

• Events range 3-4 days and are led by energy experts who train participants on how to conduct assessments, use DOE tools, develop energy management systems, and implement projects

• Participants can come from plants from the same company, from peer or regionally-based companies, suppliers, and others

• Energy assessments are a component of the INPLTs, but the events put greater emphasis on training, replication, implementation, and sustainable energy management systems

• In 2012, DOE conducted 12 INPLTs covering: steam, compressed air, process heating, pumps, and fans. Through these events, DOE:

– Trained over 250 participants

– Helped identify over 750 billion BTUs in energy savings and over $4.6 million in cost savings

DOE energy expert Greg Harrell and an Alcoa employee at a recent INPLT event

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Monthly Newsletter

• Better Plants monthly newsletter keeps partners up to date on new program developments

• Topics include: – New tools and documents

– Upcoming events, including in-plant trainings, webinars, regional meetings

– New partners

– Partner success stories

– Completed showcase projects, implementation models

– Applicable R&D funding

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Enhanced Energy Intensity Baselining Tool

• Third iteration of DOE’s Energy Performance Indicator tool released in November 2012

• The tool allows plant and corporate energy managers to create normalized energy consumption baselines and track progress over time

• Regression analysis is employed to allow for “apples-to-apples” comparisons, normalizing energy use for variations in critical variables over time, such as: – Weather, e.g. HDDs, CDDs, humidity, etc.– Production, e.g. product output, moisture content, raw materials, etc. – Space utilization, e.g. changes in conditioned floor space in a building

• Web-based demos and training from TAMs is available for Better Plants Partners

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How do I Sign Up?

• Simple 2-page partnership agreement form

• Should be signed by CEO or a senior executive

• Outlines Partner and DOE roles

• Contact myself or [email protected] for a copy of the form or for more information on the program

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Better Buildings, Better Plants Challenge Overview

A select number of manufacturing partners have stepped up to the Better Plants Challenge, which calls for a higher level of leadership, innovation and transparency

Challenge Partners Agree to:

Commit• Establish energy efficiency goal• Announce innovations/market

solutions

Take Action• Showcase project within 9 months• Set organization-wide plan,

schedule and milestones within 9 months

Report Results• Share information and

implementation models• Share portfolio wide energy

performance annually• Provide quarterly updates on

progress on showcase projects, other milestones

President Obama and former President Clinton take a tour of the upgrades of the Transwestern Building in Washington, Dec. 2, 2011

(Official White House Photo by Lawrence Jackson)

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Who are the Current Challenge Partners and Allies?

• 23 Commercial Partners• 11 Better Buildings, Better

Plants Partners• 36 Community Partners• 17 Education Partners• 13 Financial Allies• 2 Utility Allies

• ~2 billion square feet of commercial and industrial space committed

• 300 manufacturing plants

• ~$2 billion in private sector financing

100+ public, private and non-profit organizations:

Together, they represent:

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Better Buildings Challenge Partners & Allies

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Better Buildings, Better Plants Challenge Partners

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Nissan Showcase Project Site Visit

• DOE visit to highlight Nissan’s showcase project in Smyrna, TN• New $200-million paint plant; 30% more energy efficient than

previous plant• EERE Assistant Secretary toured the plant and made remarks to

press

EERE Assistant Secretary Dave Danielson tours the paint plant with Nissan’s Mike Clemmer

A vehicle moves through the process at the Nissan paint plant in Smyrna, TN

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August 30th, 2012: President Obama signed an Executive Order to accelerate investments in industrial energy efficiency (EE), including combined heat and power (CHP). The order: • Sets a national goal of 40 GW of new combined heat and power installation over

the next decade;

• Directs DOE and EPA to convene ongoing regional workshops to foster a national dialogue to encourage adoption of best practice policies and investment models in CHP;

• Directs EPA to provide assistance to States on accounting for the potential emission reduction benefits of CHP and other EE policies when developing air quality policies;

• Directs EPA to employ output based approaches as compliance options in power and industrial sector regulations, as appropriate, to recognize the emissions benefits of highly efficient energy generation technologies like CHP;

• Directs DOE to expand participation in and create additional tools to support the Better Buildings, Better Plants program

• Directs all Federal agencies to provide general guidance, technical and financial analysis on the value of investment in EE and CHP

• Assist States in developing and implementing State specific best practice policies that can accelerate investment in EE and CHP

Executive Order

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Thank You!

Andre de FontaineBetter Buildings, Better Plants202-586-6585 [email protected] [email protected]

Better Buildings, Better Plants: http://www1.eere.energy.gov/manufacturing/index.html

Better Buildings Challenge: http://www4.eere.energy.gov/challenge/