CEE June Meeting: Industrial Program Planning Committee

1. CEE June Meeting:Industrial Program Planning Committee Ted Jones Sr. Industrial Program Manager June 13, 2007

2. Today’s Agenda • Background on Industrial Program Planning Committee • Overview of Industrial Energy Consumption and Savings Opportunity (sector and process) • Program Perspective • NYSERDA • National Grid • Review Criteria for Establishing Committee Priorities • Discussion

3. Session Objectives • Identify programs that are focusing on specific industrial sectors and/processes • Share lessons learned and identify emerging opportunities • Explore a process for collecting information about on industrial programs – identify what information is relevant • Review criteria for assessing program opportunities

4. Background: CEE Program Planning Effort in 2006 • Phase I • Identify Energy Consumption by Sector • Map CEE Committee Work • Phase II • Review Existing Studies for New Opportunities • Establish Criteria for Consideration • Phase III • Develop Spreadsheet Assessment Tool • Apply Criteria to Map Opportunities to Criteria

5. Recommendations for 2007 • Equip Committees with Study Results to Identify and Develop New Explorations • End Use Consumption • List of Related Opportunities • Assessment Criteria • Spreadsheet Tool for Consideration • Devote Additional Staff Time to Support Committee Evaluation of Related Explorations

6. Recommendations for 2007 • Establish an Industrial Program Planning Committee to Explore Priority Processes • Cultivate Industry Relationships to Uncover New Innovative Opportunities

7. Industrial Energy Use 25.5 Quads 3.9 Quads 5.9 Quads Natural Resource Extraction Industries Process & Materials Industries Fabrication & Assembly Industries

8. Industrial Sector CEE Coverage CEE Initiatives: Motors Motor Mgmt. Motor Systems Compressed Air Pump Systems Transformers Water/Waste Water Fired Heaters 31% Motor Systems 23% Steam 26% Process Cooling2% Facilities 10% Other 4% Electro-chemical4%

9. Primary Metals – SIC 33 Pulp and Paper – SIC 26 Metal-Based Durables Food Processing SIC 20 Industrial Boilers Process Heating Process Cooling Machine Drive Electro-Chemical Processes Other Explore Savings Opportunities within Specific Industrial Sectors and Across Key Processes/Systems Chemicals – SIC 28 Other – SIC 21-25, 30-31, 39 Petroleum Refining – SIC 29 Mining Water/Wastewater Stone, Clay & Glass – SIC 32

10. Relevance to members Number of members interested Relevance to savings targets Magnitude of benefit Alignment with CEE’s mission Technical Potential Amount of energy and demand savings Magnitude of societal benefit Indicators of Market Change Logic model of market Metrics at leverage points Trackability Key Stakeholder Relationships Relations with manufacturers, appropriate industry associations Relates well with or leverages other industry efforts Economies of scale Benefit from previous lessons learned Existing expertise Other Potential Assets Resources or movements available to leverage Level of Effort Required CEE members’ effort required Staff effort required Relates well with or leverages other CEE efforts Economies of scale Benefit from previous lessons learned Existing expertise Makes use of CEE’s unique role Voluntary member participation to support initiative Utilizes CEE’s unique industry positioning Could anyone else but CEE play this role? Is this something that otherwise wouldn’t or couldn’t occur? Fills a gap Does it address a trend in energy consumption? Is there CEE “coverage” of industry? Time frame Near, Interim or Far-term Phase II Assessment Criteria

11. Key: Favorable Position Weak Position “Consumer Report Style Rating” of CEE’s Current Industrial Initiatives and New Opportunities Technical Potential Makes Use of CEE’s Unique Role Indicators of Market Change Time Frame- Near, Interim, Far-Term Key Stakeholder Relationships Fills A Gap Other Potential Assets Alignment with CEE’s Mission Level of Effort Required Relevance to Members Satisfactory Position Industrial Boilers Sample Process Heating Process Cooling Machine Drive Electro-Chemical Processes Other

12. Committee Objective • Identify opportunities at the national level for efficiency programs to achieve energy savings within specific industrial sub-sectors and across common industrial systems and processes. • Identify the types of information that would provide value to programs nationally • Review industrial energy consumption patterns, emerging technologies, efficiency resources and innovative program models • Apply the criteria developed during the CEE planning process • Develop committee recommendations, as appropriate

13. We also want to take a look at emerging program approaches… • In the Northwest - Northwest Energy Efficiency Alliance is focusing on food processing and pulp and paper • In California - PG&E and SCE are focusing on data centers, bio-tech, water treatment, wineries and oil refining • In New York – NYSERDA is focusing on sector-specific strategies, such as hospitality, municipal water and wastewater and industry.

14. And National Program Approaches… • EPA – ENERGY STAR for Industry Program • Energy Management • Focus Industries • DOE – Office of Industrial Technologies • Industrial Technology R&D • Emerging Technologies • Cross Cutting Technologies • Best Practices

15. What have we done so far?? Two Committee Webinars: • Energy Star for Industry Program • DOE-Industrial Technologies Program

16. Energy Star for Industry • 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

17. Energy Star’s Take on 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

18. Energy Star Resources • 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

19. ENERGY STAR Assistance for Specific Industries • 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

21. Result: A growing list of opportunities for programs and ENERGY STAR to work together • CEE members can identify which plants in its service territory are participating in ENERGY STAR Program, utilize ENERGY STAR tools and resources and accurately refer to it in their program communications. • ENERGY STAR is now referring their corporate partners to CEE member • ENERGY STAR and local efficiency programs can promote a consistent message on energy management at the facility level, helping to educate plant personnel about energy savings opportunities and energy management.

22. Result: A growing list of opportunities for programs and ENERGY STAR to work together • CEE member efficiency programs can identify which industrial plants are participating in ENERGY STAR and offer targeted assistance to help those plants implement their plant action plans and meet their goals. • ENERGY STAR and CEE can encourage additional efficiency programs to promote an energy management approach through their industrial programs • Exploring other opportunities: • Assessing the opportunity for ENERGY STAR and the Industrial Program Planning Committee to pursue metal casting as a potential Focus. • Scheduling training for interested CEE members on collecting cement plant data and running ENERGY STAR's Cement EPI • Share a CEO’s perspective on energy management with the CEE members, such as the CEE of California Portland Cement.

23. DOE – Office of Industrial Technologies • Overview (most members familiar with) • Industrial Technology R&D • Emerging Technologies • Cross Cutting Technologies • Best Practices (tools and resources) • Save Energy Now Assessments • Process heating, steam, pumping and compressed air • “Achieving Superior Energy Performance” • New Effort to developing standards to enable third-party certification of energy management/performance

24. Primary Metals – SIC 33 Pulp and Paper – SIC 26 Metal-Based Durables Food Processing SIC 20 Industrial Boilers Process Heating Process Cooling Machine Drive Electro-Chemical Processes Other Explore Savings Opportunities within Specific Industrial Sectors and Across Key Processes/Systems Chemicals – SIC 28 Other – SIC 21-25, 30-31, 39 Petroleum Refining – SIC 29 Mining Water/Wastewater Stone, Clay & Glass – SIC 32

25. Questions?