Energy Management in the U.S.

James Quinn Energy Efficiency & Renewable Energy U.S. Department of Energy

Program Name or Ancillary Text

Rio de Janeiro, Brazil August 9, 2011

eere.energy.gov

Introduction

Energy Management

Energy management is the process of monitoring, controlling, and conserving energy in an industrial facility.

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Benefits of Energy Management

Managing Energy, Gaining Control

• End-users cannot control external factors, such as supply issues, prices, or the global economy, but they

can

control how they use their energy resources. • An

energy management process

can help users proactively assess, measure, and manage energy usage. Energy management standards and resources can support this process and help end-users gain control.

Benefits of an ISO Standard:

• Compatible with other ISO management system standards.

• Multi-national companies may use one system in all of their facilities. 3 | Industrial Energy Efficiency eere.energy.gov

Energy Management Efforts

U.S. DOE Efforts to Support Energy Management

The U.S. DOE has supported a series of domestic and international efforts to help end-users and their organizations manage energy. • ISO 50001 Energy Management Standard • ASME System Assessment Standards • Resources for Supporting Energy Management • Superior Energy Performance Program • Global Superior Energy Performance (GSEP) Partnership 4 | Industrial Energy Efficiency eere.energy.gov

New ISO 50001 Standard

ISO 50001 Energy Management Standard

• Requires organization to establish a baseline, metrics, energy management team, and system —enabling

systematic

achievement of

continuous improvement in energy performance

. • Designed to be used independently, yet can be aligned or integrated with other management systems (e.g., ISO 9001 and ISO 14001). • Applicable to all organizations that use energy, including industrial plants, buildings and other facilities, entire organizations.

• Does not prescribe specific energy performance criteria.

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ISO 50001 Standard

Development of ISO 50001

• Developed by the ISO Project Committee 242 which initially met in June 2009 • 52 member countries involved; management by China, the United States, Brazil, and the United Kingdom • April 2010: Issued Draft International Standard • June 2011: Published standard • ISO 242 now moving to TC 242 and will continue to develop implementation material 6 | Industrial Energy Efficiency eere.energy.gov

Energy Management Model

Plan-Do-Check-Act process typically includes:

• Energy policy and energy management plan • Cross-divisional management team • Operating controls and procedures • Established baseline of energy use • Identification of energy performance indicators • Objectives and targets • Action plan • Periodic reporting of progress (to management) 7 | Industrial Energy Efficiency eere.energy.gov

Components of an Energy Management System

•Management review

ACT

•Policy •Management responsibility •Energy planning •Measuring

CHECK

and monitoring •Internal auditing •Nonconformance, corrective, preventive •Records

DO

•Training •Documents •Communication • Design • Operational control • Procurement 8 | Industrial Energy Efficiency eere.energy.gov

What is Superior Energy Performance?

A market-based, ANSI/ANAB-accredited certification program that provides industrial and commercial facilities with a roadmap for achieving continual improvement in energy efficiency while boosting competitiveness. • • • • Goals: Drive continual improvement in energy performance Develop a transparent system to validate energy performance improvements and management practices Encourage broad participation throughout industry Support and build the energy efficiency market and workforce Superior Energy Performance for industry will be launched nationwide in 2012.

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Getting Superior Energy Performance Certified

Certification Requirements

: An ANSI/ANAB-accredited Verification Body will conduct a third-party audit to verify that that the facility meets the following requirements: 1.

2.

Energy Management System Conformance to ISO 50001 Energy Management Standard Energy Performance Improvement

Superior Energy Performance

Facility-level conformance to ISO 50001 with validated energy performance improvement

ISO 50001 is a foundational tool that any organization can use to manage energy.

ISO 50001

Components in place: • Baseline • Policy • Plan • Team/Leader

ISO 50001

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Texas Pilot Project, 2008-2010

DOE worked with the University of Texas at Austin to pilot Superior Energy Performance in Texas facilities: • Field tested elements of Superior Energy Performance • Conducted audits using ANSI MSE and M&V Protocol • Established the first ANSI/ANAB accredited Verification Body for Superior Energy Performance •

Certified the first plants to Superior Energy Performance First facilities certified to Superior Energy Performance Cook Composites and Polymers Co.

Houston, Texas

Freescale Semiconductor, Inc.

West Austin, Texas

Owens Corning

Waxahachie, Texas

Union Carbide, subsidiary of the Dow Chemical Co.

Texas City, Texas (manufacturing facility)

Union Carbide, subsidiary of the Dow Chemical Co.

Texas City, Texas (energy systems facility)

Performance Level Gold Silver Silver Platinum Silver

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Energy Management Demonstration Projects

U.S. DOE is conduct Energy Management Demonstrations in partnership with states, regions, and utilities to and further test Superior Energy Performance and build energy management expertise. • • •

Kick-Off Dates 2009:

Northwest region

2010:

Southeast, Midwest, and Mid-Atlantic regions

2011

: California, Colorado, Texas (second round) and Northeast region

Industry Participants

• 3M • Alcoa • Allsteel • Amcor PET • Bentley Prince Street • Bridgestone Tire • Cook Composites & Polymers • Cooper Tire • Didion Milling, Inc • Dow Chemical • Eaton • General Dynamics • Haynes International • Holcim • JR Simplot • Kenworth Trucks • Lockheed Martin • Neenah Foundry Company • Nissan • Schneider Electric • Spirax Sarco • Traco • Volvo • World Kitchen http://www.eere.energy.gov/industry/energymanagementdemonstrations/ 12 | Industrial Energy Efficiency eere.energy.gov

Value of Superior Energy Performance

Superior Energy Performance provides…

• A facility-wide strategic approach to continual energy performance improvement. • Market-recognized validation of effective energy management.

Third-party transparency validates energy performance improvement.

• SEP M&V Protocol – Offers a standardized methodology for validating energy performance improvements.

– Provides top-level sanity check that supports project-level M&V.

• Supports a more flexible approach by public utility commissions in validating expenditure of rate payer funds.

SEP builds energy management expertise in the workforce.

• Certified Practitioner credentialing offers an opportunity for states and utility representatives to increase energy management expertise. • Prepares states and utilities to respond to growing interest in energy management. 13 | Industrial Energy Efficiency eere.energy.gov