Energy Management in the U.S .

1. Energy Management in the U.S. James Quinn Energy Efficiency & Renewable Energy U.S. Department of Energy Rio de Janeiro, Brazil August 9, 2011

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

3. 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.

4. 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

5. Requires organization to establish a baseline, metrics, energy management team, and system—enabling systematicachievement of continuousimprovement in energy performance. New ISO 50001 Standard ISO 50001 Energy Management Standard • Designed to be used independently, yet can be aligned or integratedwith other management systems (e.g., ISO 9001 and ISO 14001). • Applicable to all organizations that use energy, including industrialplants, buildings and other facilities, entire organizations. • Does not prescribe specific energy performance criteria.

6. 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

7. Plan-Do-Check-Act process typically includes: Energy Management Model • 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)

8. Management review Components of an Energy Management System PLAN ACT • Policy • Management responsibility • Energy planning CHECK DO • Measuring • and monitoring • Internal auditing • Nonconformance, • corrective, preventive • Records • Training • Documents • Communication • Design • Operational control • Procurement

9. 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 systemto 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.

10. Getting Superior Energy Performance Certified ISO 50001 • Components in place: • Baseline • Policy • Plan • Team/Leader • Certification Requirements: • An ANSI/ANAB-accredited Verification Body will conduct a third-party audit to verify that that the facility meets the following requirements: • 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 10

11. 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

12. Energy Management Demonstration Projects Kick-Off Dates 2009: Northwest region 2010: Southeast,Midwest, and Mid-Atlantic regions 2011: California, Colorado, Texas (second round) and Northeast region 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. • 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/

13. 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.