Certifying U.S. Manufacturing Plants for Energy Efficiency Aimee T. McKane, Lawrence Berkeley National Laboratory Con

1. Certifying U.S. Manufacturing Plants for Energy Efficiency Aimee T. McKane, Lawrence Berkeley National Laboratory Consortium for Energy Efficiency May 29, 2008 Webcast

3. Superior Energy Performance Partnership

5. Quick Start Website Comprehensive listing of energy efficiency resources from public and non-profit sources - documents, software, training, case studies, tip sheets, experts, and calculators Save Energy Now Best Practices, technologies, tools, and resources that a plant engineer can use today - creating a baseline on energy use, assessing opportunities and implementing Best Practices Manage Your Energy Program Step-by-step process, as well as tools and resource, to evaluate, implement or improve the plant or corporation�s energy management system Assistance and Resources Tools, case studies, training, experts, and technologies that will give you a Quick Start to achieving Superior Energy Performance http://www.energyquickstart.org/quickstart/

6. Strategic Goals of Plant Certification

7. Benefits of Plant Certification Establishes systematic means to achieve continuous improvement Standards for energy management and system assessments Tools and resources to assist in implementation Process for validation Focus on reducing energy intensity per unit of output Helps plants get on the path to improvement by adopting tools and resources Promotes buy-in to energy efficiency Applies to most companies (a wide range of industries) Delivers value to all plants, not just those that pursue certification Creates a transparent way to compare energy efficiency

8. Certifying Plants for Energy Efficiency

9. What Is an ANSI-Accredited Certified Plant? Complies with ANSI MSE 2000:2008 Energy Management Standard (eventually an ISO standard) Achieves a minimum energy intensity improvement over the past two years May apply System Assessment Standards for energy systems in plant facilities (initially pumping, compressed air, steam, process heating) May use certified practitioners�recognized by third party�to assist in complying with standards Uses measurement and validation experts�recognized by a third party�to verify implemented energy savings Uses ANSI-accredited process to achieve third-party plant certification

10. Requirements for Certification For initial certification, the plant: Complies with the energy management standard, and Achieves validated energy intensity performance by: Demonstrating energy intensity improvement of >5% over the previous 24 month period OR Assessing any energy system which uses greater than 10% of total plant energy use (not including feedstocks) and demonstrating that the plant has: Implemented >30% of total Btu energy savings opportunities that meet the company�s internal rate of return (IRR) and are identified through application of system assessment standards, OR Met or exceeded the Energy Management Best Practice threshold* for systems for which Best Practices exist.

11. So, what does the U.S. energy management system standard look like? Here is a graphic from our latest standard revision. MSE 2000 was designed to integrate project management and management system best practices both of which can be represented with Demings Plan-Do-Check-Act cycle for continual improvements Right-side � energy project mgt. Projects of course are one of the primary means for making improvements. Must plan the project. Must implement or DO the project. Then, to be complete we need to measure and verify our success, what we call CHECKING. Finally, based on our checks we are able to prove our performance and look to further efforts to be improving our management system. However, even if you do projects well, best management practices are needed. These are represented by the left text box. The standard also assists an organization to develop a framework/system to sustain their energy savings and also to continually improve the system and energy performance. Speak about why those elements are needed. So, what does the U.S. energy management system standard look like? Here is a graphic from our latest standard revision. MSE 2000 was designed to integrate project management and management system best practices both of which can be represented with Demings Plan-Do-Check-Act cycle for continual improvements Right-side � energy project mgt. Projects of course are one of the primary means for making improvements. Must plan the project. Must implement or DO the project. Then, to be complete we need to measure and verify our success, what we call CHECKING. Finally, based on our checks we are able to prove our performance and look to further efforts to be improving our management system. However, even if you do projects well, best management practices are needed. These are represented by the left text box. The standard also assists an organization to develop a framework/system to sustain their energy savings and also to continually improve the system and energy performance. Speak about why those elements are needed.

12. Lessons Learned Benefits and cost savings derived from energy management systems are easily understood by organizations Payback is typically less than 2 years on investment in adopting MSE Many companies recognize value of added environmental benefits There is a lack of incentives and public policies inhibiting marketplace to adopting MSE

13. Lessons Learned Top management at corporate level must buy-in and commit resources Immediate energy savings can derail the systems & continual improvement focus and reinforce a limited project mindset MSE is data driven, but new programs must not be overwhelmed by too much information Other management systems compete for resources � ISO9001, ISO14001, Six Sigma Less energy intensive organizations may include energy within their Environmental Management System, but frequently do not

14. International Energy Management Standard UNIDO Expert Group, Vienna, March 21-22, 2007 ANSI (U.S.) / ABNT (Brazil) leadership proposal ISO Project Committee - PC 242 formed First Meeting of ISO PC 242 - September 2008, Washington, DC UNIDO / CSC Working Group Meeting Discuss similarities and differences Preparatory harmonization Detailed & Summary Comparisons developed Framework for Action How is the U.S. a player in this international effort? How is the U.S. a player in this international effort?

15. IIndustrial systems include those systems that contribute to industrial production processes, such as: motor systems (pumping, compressed air, and fan), steam systems, and process heating systems.

16. System Assessment Standards: Are designed to create a market threshold for industrial energy efficiency assessments from the current body of expert knowledge Provide a standardized framework for conducting assessments of industrial systems Establish minimum requirements and guidance for: organizing and conducting assessments, analyzing the data collected, and reporting and documentation,

17. Goals To create and test standards for conducting industrial energy system assessments Initial portfolio of four (4) standards (pumping, compressed air, steam, and process heating) and corresponding guidance documents that become the industry standard for these system types. Builds off previous experience through USDOE�s Save Energy Now To define a set of skills and a qualifying process required to recognize individuals as Certified Practitioners in the application of each system standard. To identify not-for-profit organizations to Manage and maintain the quality of the system assessment standards and guidance and Offer a program to qualify and maintain the professional credentials of Certified Practitioners

18. Measurement and Verification Protocol

19. Certified Practitioners

20. Looking Forward: Key Milestones June 2008: Texas Pilot project begins field testing ANSI energy management standard and system assessment standards Feb. 2009: Select third-party certifying organization May 2009: Begin field testing of measurement and verification methodology in pilot plants

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