1 | Energy Efficiency and Renewable Energy eere.energy.gov

Achieving Superior

Energy Performance

April 2, 2014

Paul Scheihing

Technology Manager,

Technical Assistance

Advanced Manufacturing

Office

www.manufacturing.energy.

gov

2

• Energy management and ISO 50001

• What is SEP?

• What are the SEP Results?

• What have manufacturers said are the benefits

of SEP?

• How can your facility start implementing SEP?

• What is DOE’s role in SEP?

• What are the latest projects by DOE to expand

SEP adoption?

Agenda

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Energy management and ISO 50001

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How can you achieve these objectives in your facility?

• Identify new opportunities for improving energy performance

• Move to a higher level of sophistication in data utilization

• Achieve energy improvements with little to no capital investment

• Build greater confidence among senior management that you are achieving returns and delivering results

• Broaden energy management engagement to employees at all levels, including top levels of management

• Integrate energy performance into management practices

• Receive external recognition for third party verified results

• Contribute to national goals to strengthen the economy, protect the environment, and reduce dependence on foreign oil

The Energy Challenge in Facilities Across the Country

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• Time and again, industrial energy efficiency has been demonstrated to be cost effective while having a positive effect on productivity

• Despite this, energy efficiency improvements with very favorable payback periods often do not get implemented

• Even projects that are implemented may not be sustained due to lack of supportive operational and maintenance practices

Problem: Energy efficiency is not integrated into daily management practices.

Solution: Staff at all levels within an organization need to be engaged in the management of energy on an ongoing basis.

Energy management requires an organization to shift from a project-

by-project approach to one of continual improvement in energy

performance

Project Approach vs. Energy Management

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Source: UNIDO 2010

Ad Hoc Approach to Energy Management

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Continuous cost reduction from energy management systems

Senior management commit to program

Initial savings sustained

Low cost operational improvements first – then investment

Becomes company culture

SOURCE: Kahlenborn et al. (2012), based on Lackner & Holanek (2007).

Structured Approach to Energy Management

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• Help an organization institutionalize the policies, procedures, and tools to

systematically track, analyze, and improve energy efficiency—leading to

continual improvements in energy performance

• Can increase energy efficiency by 15% or more in an industrial facility via

operational changes; new technologies offer further improvements.

• Requires an organizational change in culture

• Requires that top management be engaged in the management of

energy on an ongoing basis.

Systems Processes Facilities Equipment Personnel

Scope of Energy Management:

What is an Energy Management System (EnMS)?

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New international best practice in energy management

leading to:

• continual improvement of energy performance;

• greater reliability of sustained energy savings;

• better utilization of energy data in making

decisions;

• more strategic deployment of energy efficient

technologies (e.g. advanced monitoring systems),

and

• integration of energy efficiency practices into

daily organizational operations.

• Developed in

collaboration with

input from 56

countries

• Global impact: many

countries are

adopting ISO 50001

as national

standard.

http://www.iso.org/iso/home/standards/management-standards/iso50001.htm

ISO 50001 - Energy Management systems

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4.5 Implementation and operation

• Training

• Documents

• Communication

• Design

• Operational control

• Procurement

4.6 Checking

• Measuring

and monitoring

• Legal requirements

• Internal auditing

• Nonconformance,

corrective, preventive

• Records

4.1 General requirements

4.2 Management responsibility

4.3 Energy policy

4.4 Energy planning – Energy review – Energy baseline

– EnPI

– Objectives, targets

& action plans

4.7 Management review

ACT

DO CHECK

PLAN

Blue text represents new data-driven sections in

ISO 50001 not in ISO 9001 & ISO 14001

ISO 50001: Plan-Do-Check-Act

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ISO 50001: March 2014

United States – Looking Forward Country ISO 50001

Certified Sites (Mar. 18, 2014)

Global 6,912

Germany 3,240

France 966

Netherlands 407

United Kingdom 348

Italy 228

Spain 205

Sweden 192

India 140

Korea 121

Turkey 108

United States 58

- The number of ISO 50001 certifications around the world is rapidly growing.

- Historically, ISO 14001 and ISO 9001 accelerated only 3 to 4 years after introduction

Source: Reinhard Peglau, German

Federal Environment Agency

ISO 50001 Adoption: Nearly 3 years since publication

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What is SEP?

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ISO 50001

Components in place:

• Top Management

• Energy Team

• Policy

• Planning

• Baseline

• Performance Metrics

Superior Energy Performance

Single facility ISO 50001 conformance with

verified energy performance improvement

ISO 50001 ISO 50001 is a

foundational tool that

any organization can

use to manage

energy.

SEP Certification Requirements

SEP certification recognizes facilities that demonstrate energy management

excellence and sustained energy savings.

Certification Requirements: An ANSI-ANAB Accredited Verification Body conducts a

third-party audit to verify the following:

1. Energy management system conformance to ISO 50001

2. Applicant meets energy performance improvement and additional requirements in

ANSI/MSE 50021

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Certification Levels

Performance

Characteristics Silver Gold Platinum

Energy

Performance

Pathway

Energy

Performance

Improvement

Meets a specified energy performance threshold over the last 3 years:

5% 10% 15%

Mature

Energy

Pathway

Uses Best Practice

Scorecard to earn

points for energy

management best

practices and

energy performance

improvements.

Energy

Performance

Improvement

Meets 15% energy performance improvement threshold

over the last 10 years.

Score on Best

Practice

Scorecard (out of 100 total

points)

At least 35 points

Minimum of 30 points

for energy management

best practices

At least 61 points

Minimum of 40 points for

energy management best

practices and 10 points for

energy performance

(beyond 15% over the last

10 years)

At least 81 points

Minimum of 40 points for

energy management best

practices and 20 points for

energy performance

(beyond 15% over the last

10 years)

Facilities are certified silver, gold, or platinum based on the level of their achievement.

Two pathways are offered: 1) energy performance and 2) mature energy.

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What are the SEP Results?

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The energy

performance

improvement is over

a 3-year period,

including capital and

operational

improvement.

** Mature energy

pathway performance

improvement is over

a 10-year period

Facility Name % Energy Performance

Improvement

Mack Trucks | Macungie, PA ** 41.9

Volvo Trucks, NA | Dublin, VA 25.8

Dow Chemical Company | Texas City, TX: Manufacturing facility 17.1

Bridgestone Americas Tire | Wilson, NC ** 16.8

Harbec Plastics | Ontario, NY 16.4

3M Canada Company | Brockville, Ontario, Canada 15.2

Cook Composites and Polymers | Houston, TX 14.9

Cummins | Whitakers, NC 12.6

General Dynamics | Scranton, PA 11.9

Allsteel | Muscatine, IA 10.2

Cooper Tire | Texarkana, AR 10.1

Olam Spices | Gilroy, CA 9.8

Owens Corning | Waxahachie, TX 9.6

Dow Chemical Company | Texas City, TX: Energy systems facility 8.1

Nissan, NA | Smyrna, TN 7.2

Freescale Semiconductor, Inc. | West Austin, TX 6.5

3M Company| Cordova, IL 6.2

SEP Certified Plants – as of March 2014

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Average quarterly percentage energy savings as a

function of average quarterly baseline energy

consumption for all nine facilities. Results are

aligned across facilities so that the first quarter

starts when the facilities received their first SEP

training. Subtracting the BAU quarterly energy

savings percentage from quarterly post-first training

energy savings percentages reveals savings

attributable to SEP.

Cost Benefit Analysis - Nine SEP-certified industrial facilities:

• Improved energy performance by 10% on average and saved more than $500,000

over business-as-usual in the first 18 months of SEP implementation.

• 74% of energy and energy cost savings after EnMS implementation came from

operational (no or low-cost) actions

Data and Metrics: Making the Business Case

View full study at:

www.superiorenergyperformance

.energy.gov/pdfs/sep_costbenefit

s_paper13.pdf

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• SEP marginal payback figures are calculated for each plant

by dividing SEP costs (not including capital project costs)

by associated SEP operational energy savings beyond

business-as-usual operational energy savings prior to SEP

SEP Payback

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At its vehicle assembly plant in Smyrna, TN, Nissan achieved the

following by implementing SEP:

• Improved energy performance by 7.2% over 3 years

• 4-month payback

• $938,000 total annual energy savings

Nissan Case Study: >$900K savings with 4 month payback

View this and other SEP case studies at:

http://superiorenergyperformance.energy.gov/successes_and_testimonials.html

“SEP adds rigor, analysis, and gives good guidance. It’s

one thing to have a target and objective, but SEP gives

tools that empower you to be more disciplined and prove

the impact certain activities have.”

-Nissan North America Energy Team

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• First ISO 50001 facility in US

• 25% improvement in energy

performance over 3 years

• $866,000/year operational

savings

• $377,000 cost to implement

SEP

• 5 month payback

Billboard at the Roanoke, Virginia Regional Airport. Image: Volvo

Trucks

Volvo Trucks Case Study: >$800K savings with 5 month payback

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• First U.S. defense contractor to

be SEP and ISO 50001 certified

• 11.9% improvement in energy

performance over 3 years

• $956,000/year operational

savings

• $255,000 cost to implement SEP

• 6 month payback

“SEP brought to light many energy intensity savings

opportunities that were previously hard to justify.

With the EnMS system in place and metering

instruments installed, it is much easier to justify

improvement projects, and management is more

receptive to these proposals.”

- Stephen Cannizzaro, Sustainability Manager

See the case study at:

http://superiorenergyperformance.energy.gov/succe

sses_and_testimonials.html

General Dynamics Case Study: >$900K savings with 6 month payback

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What have manufacturers said are the

benefits of SEP?

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SEP certified facilities achieve greater

savings potential

SEP creates higher confidence in

energy efficiency investments

“External verification and validation is critical.

Certification adds to the confidence in

calculations and savings.”

— Nissan, Smyrna, TN

Third-party verification bolsters a plant’s

internal reputation and the company’s public

image “At first, we didn’t appreciate the value of third party

verification, but our facility has evolved to value

third party verification as critical. Any facility can

claim energy savings, but a third party verification

proves the savings to be real.”

— Schneider Electric, Smyrna, TN

“Third-party certification removes any

potential of “green washing” and provides

credibility to savings.”

— General Dynamics, Scranton, PA

“The established targets required by SEP kept the

team at 3M Canada motivated and dedicated to

achieving those targets. Since ISO 50001 does not

specify particular energy savings targets on its

own, along with SEP we're able to truly

demonstrate our level of achievement, which we're

quite proud of.”

—3M Canada, Brockville, Ontario

“SEP has helped justify expenditures to

management. The measurement and verification

requirement helps to identify real cost savings,

allowing us to reinvest those savings into

additional energy projects.”

— Cooper Tire, Texarkana, AR

“The verification was more important than the

management standard because it provides a

performance metric. SEP provides the ability to

have proven performance metrics to quantify

actual savings, giving both internal and external

credibility to savings claims.”

— Volvo Trucks, Dublin, VA

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End User Testimonials

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• Advantages of the rigor of SEP: – Improves measurement of energy performance of manufacturing processes

– Helps find new savings opportunities that were not originally apparent, including those that are low/no cost

• Highlights process energy savings: – Enables incentives and measureable improvements on the process energy side

of manufacturing (vs. focusing on specific pieces of equipment or measures)

– Engages process engineers in energy management

• Promoting the business case for SEP: – SEP provides plant managers top level metrics on the bottom-line business

value

– Plant managers are confident presenting real and accurately calculated savings to management due to third party verification

End User Noted Benefits of SEP

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How can your facility start implementing

SEP?

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SEP Certification Process

4. Audit and Certify The SEP Verification Body will used certified audit personnel to verify your facility’s conformance to SEP requirements.

1. Enroll

Enroll in SEP, no matter

how far along you are in

the process. There is no

commitment involved.

2. Implement

Implement an EnMS in your facility

using the various available

resources and work towards

meeting SEP requirements.

3. Apply

Once ready, submit an application

to the SEP Administrator. When it

is approved, the application will

be sent to your selected SEP

Verification Body.

5. Maintain

After the initial SEP certification, we encourage your energy team to take steps to continue

improvements in energy performance. The SEP Verification Body will conduct annual

surveillance audits to ensure the EnMS is maintained.

6. Recertify

SEP Certification lasts for 3 years. In order to maintain certification, your facility will have to

apply for recertification and undergo a recertification audit, similar to the initial certification

audit, to show that the requirements are still met.

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A range of implementation resources available:

• eGuide for ISO 50001: Use this web-based toolkit to implement an EnMS

consistent with ISO 50001, https://ecenter.ee.doe.gov

• eGuide Lite: Download and use this starter toolkit to learn the basics of

energy management and build internal or supply chain capacity,

http://ecenter.ee.doe.gov/EM/SSPM/Pages/home.aspx

• Certified Practitioners in EnMS: Hire a CP EnMS to assist with

implementing ISO 50001 and preparing for SEP certification. Some

companies have sent internal staff to the training and certification to build

this expertise in house,

• Learn more about CP EnMS training:

http://superiorenergyperformance.energy.gov/energy_professional.html

• Find a CP EnMS: http://ienmp.com/pro_search/index.php?action=1

• EnPI Tool: Enter energy consumption data and easily adjust for variables

to receive a normalized view of energy performance and calculates SEP

metrics, http://ecenter.ee.doe.gov/EM/tools/Pages/EnPI.aspx

(continued)

SEP Tools and Resources

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Comments on the eGuide

from users:

“Excellent job! VERY

helpful and almost

exhaustive.”

“This is one of the best, if

not the best, government

guides I've ever used. It's

easy to navigate,

concisely and clearly

written, logical. Thank

you!”

• Step-by-step guidance to implement an EnMS

• Simple, clear instructions and guidance

• Taking action made easier using templates, checklists, forms, and samples

Implementation Resources: eGuide for ISO 50001

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• SEP is based on a strong foundation of international and

national standards and protocols http://superiorenergyperformance.energy.gov/standards.html

• ISO 50001

• ANSI/MSE 50021: additional SEP requirements beyond ISO 50001

• SEP Measurement and Verification Protocol

• SEP Best Practice Scorecard

• SEP Certification Protocol

• Additional useful resources include: • ASME System Assessment Standards

http://superiorenergyperformance.energy.gov/asme.html

• ENERGY STAR® energy management guidelines

http://www.energystar.gov/buildings/about-us/how-can-we-help-you/build-

energy-program/guidelines

Additional SEP Tools and Resources

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Get Started: Visit the Redesigned SEP Website

Visit our new website: www.superiorenergyperformance.energy.gov

Additional website features:

• Access SEP software tools and technical resources,

(http://superiorenergyperformance.energy.gov/resources_to_pursue_sep.html)

• Read case studies and watch video testimonials from SEP-certified facilities.

(http://superiorenergyperformance.energy.gov/successes_and_testimonials.html)

• See the latest certification results

(http://superiorenergyperformance.energy.gov/results.html)

• Find professional training and credentialing opportunities for your staff.

• Sign up to receive the latest SEP updates.

− Enrollment: Open to any U.S. industrial facility at any

stage of the SEP implementation process,

http://superiorenergyperformance.energy.gov/enroll.html

− Application: Any U.S. industrial facility may submit an

application for certification when ready for its SEP audit.

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What is DOE’s role in SEP?

What are the latest projects by DOE to expand SEP adoption?

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Current Activities

• DOE acts as the SEP Administrator and is currently developing, testing

and refining the administrative processes for industrial plants to enroll

and apply for SEP certification

• DOE provides recognition for SEP achievements and is working to build

overall program recognition

• New SEP Initiative: Better Buildings SEP Accelerator

DOE’s Role In Development and Support of SEP

Development of SEP

• DOE worked with the U.S. Council

for Energy-Efficient Manufacturing

(U.S. CEEM) to develop SEP

• DOE also partnered with state and

regional energy efficiency partners

to conduct SEP demonstrations

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Better Buildings Industrial SEP Accelerator

The Industrial SEP Accelerator is part of the Better Buildings initiative to

transform markets for accelerated energy efficiency.

Purpose: DOE is exploring ways to make SEP certification easier and more

affordable for industrial facilities.

• SEP Enterprise-wide Accelerator: Companies are testing strategies to

implement SEP across a corporation, business unit, or multiple plants to

benefit from economies of scale. Six Partners committed, with 30

participating facilities located in the U.S., Canada, and Mexico:

– 3M Company, Cummins Inc., General Dynamics Ordnance & Tactical Systems,

Nissan North America, Inc., Schneider Electric, Volvo North American Group

• SEP Ratepayer-funded Program Accelerator: Utilities and energy

efficiency program administrators are testing SEP as a practical, energy-

saving program offering for their industrial customers.

– Bonneville Power Administration, Efficiency Vermont, Northeast Utilities, including

Connecticut Light & Power Company, Yankee Gas, and NSTAR Electric & Gas

http://www1.eere.energy.gov/buildings/betterbuildings/accelerators/

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Paul Scheihing

Technology Manager, Technical Assistance

Advanced Manufacturing Office

US Department of Energy

paul.scheihing@ee.doe.gov

202-586-7234

http://www.superiorenergyperformance.energy.gov

http://www1.eere.energy.gov/manufacturing/index.html

http://www1.eere.energy.gov/manufacturing/tech_assistance/index.html

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Backup Slides

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► Receive SEP certification

► Obtain third-party verification

► Achieve energy performance

improvement targets

► Conduct rigorous measurement &

verification of energy performance

SEP

Foundational Energy

Management (e.g., ENERGY STAR

For Buildings & Plants)

ISO 50001

Fundamental approach to developing a systematic

energy management program based on industry

best practices and benchmarking tools

Standard Energy Management

System (EnMS) framework for

global industrial operations

Verified energy

performance

► Re-assess

► Evaluate progress

► Implement plan

► Create action plan

► Set goals

► Baseline energy performance

► Establish energy policy

► Receive ISO 50001 certification

► Achieve ISO 50001 EnMS

► Management reviews

► Conduct internal EnMS audit

► Formally document EnMS

1

2

3

Steps in EnMS Progression

Strategic Energy Management Continuum