Supporting Manufacturing Leadership Through Sustainability E3: Economy, Energy, and Environment

Federal Programs Working Together Antonio Doss, SBA/SBDC: Roger Kilmer, NIST/MEP; Kathleen Hogan, DOE/EERE; Jim Jones, EPA/P2; Jane Oates, DOL/ETA

What is E3? A model for collaboration among manufacturers, utilities, local government, and federal resources intended to: Invest in local communities Address energy and sustainability challenges Provide valuable technical training and assessments Enable economic growth 33

Benefits for Manufacturers 44 Cost Savings Significant cost savings result from increased process efficiencies and reduced waste Profitable sustainability practices Access to Technical and Financial Resources Additional funding through federal and state programs Enhanced skills and capabilities for workers Increased Competitiveness State-of-the-art sustainable business practices Technical support to drive entry into new markets Job creation and retention

Benefits for Communities 55 Economic Growth Improved competitiveness of existing manufacturers Enhanced ability to attract new business Increased manufacturing jobs and/or job retention Trained workforce with skills for a sustainable economy Progress toward Environmental and Climate Change Goals Catalyze meeting local government’s environmental and climate change goals

Benefits for Utilities 66 Increased Competitiveness Invest in local communities Strengthen and stabilize industrial rate-payers Progress toward Environmental and Climate Change Goals Catalyze meeting environmental and climate change goals Achieve organizational carbon reduction goals

7 How we work together DOC and its Manufacturing Extension Partnerships (MEPs) brings years of experience in cost reduction, business growth, lean manufacturing, and innovation to the E3 team SBA and its Small Business Development Centers (SBDCs) provide business excellence counseling services and financing through guaranteed loan programs DOL and its Workforce Investment Boards (WIBs) provide green job and skills training and apprenticeships supported by workforce development and training grants DOE and its Save Energy Now and Industrial Assessment Centers (IACs) programs provide energy audits and other energy efficiency assistance EPA and MEP and their Green Supplier’s Network provides Lean and Clean assessments to small- and medium-sized manufacturers EPA and its Climate Leaders tools are used to benchmark greenhouse gas (GHG) emission profiles

8 1. Coordinated Technical Assessments DOC, Manufacturing Extension Partnership DOE, Industrial Assessment Centers EPA, Pollution Prevention (P2) Network State Environmental Programs 2. Post Assessment Recommendations Guide each facility toward improvements in overall efficiency, reduced waste, more efficient use of resources including energy and water, and cost savings. 3. Implementation Support SBA, Small Business Development Centers 4. Training and Continuous Improvement DOL, State Workforce Development/Investment Boards State Environmental Programs E3 Delivery System

Energy Metrics: Environment Metrics: Economic Metrics: Environmental savings identified Lean savings identified Other cost savings One time potential cost savings identified Individuals trained Jobs created Jobs retained Total annual potential impact identified Number of small businesses engaged Percentage of small businesses engaged Number and value of SBA loans granted Capital infusion dollars invested Hours of counseling provided Air emissions reduced (lbs) Solid waste reduced (lbs) Material intensity per unit of production Hazardous waste reduced (lbs) Hazardous materials reduced (lbs) Water pollution reduced (lbs) Water used/conserved (gal) Water intensity per unit of production E3 Metrics Energy conserved (MM BTU/kWh) Energy intensity per unit of production Carbon reductions (tons) Carbon intensity per unit of production 99

PILOT COMPANIESAGGREGATED RESULTS Identified recurring savings - Annualized Energy Savings - $1.7 MM Environmental Savings - $2.6 MM Lean Savings - $1.033 MM Water pollutants avoided – 257,000 pounds CO2 emissions avoided – 19,000 tonnes SOx Reduction – 215 tonnes Solid waste reduction – 24,000 pounds Realized savings – Annualized $660,000 implemented or committed since project began $50,000 increase in sales identified 5 jobs identified as retained E3 Results: Columbus Ohio Pilot

Here is where we are TODAY 11 as of May 9, 2011 Discussion just started

12 E3: North Carolina Strengthening the Next Generation Strategy in North Carolina: Deploying E3 for Growth through New Partnerships NC E3 officially kicked-off on December 13, 2010 E3 Assessments scheduled for Burke and Forsyth counties

E3 North Carolina Adds State and Local Partners 13 IES and NCDENR GSN Lean and Green Reviews WRP and NCSU Energy Systems Assessments NC OSH Worker Safety Audits NC Economic Development Regional Partners NC Small Business and Technology Development Centers NC Workforce Development Boards and Community Colleges Community Business Partners including Utilities and Manufacturers

Deploying E3 in a Community E3: Economy, Energy, and Environment Assess Transform Sustain 14

Components of a E3 Program 1.Community involvement 2.Team Building 3.Leadership in local messaging 4.Manufacturing support and commitment 5.Technical assessment and discovery 6.Workforce evaluation and training 7.Project identification and implementation 8.Monitoring and measuring improvements 9.Sharing success E3: Economy, Energy, and Environment 15

E3 North Carolina - Technical Assessments Business Excellence Assessment Lean and Green Review Energy Systems Assessment Greenhouse Gas Evaluation Worker Safety Review Manufacturers will have access to the following E3 technical assessments and training. 16 E3: Economy, Energy, and Environment

Becoming an E3 Manufacturing Partner E3 manufacturing partners are asked to contribute approximately 20% of the value to receive the comprehensive set of assessment services - $7500 Additionally, partners must make a project commitment amount of $2500 to be held in escrow to apply to a selected transformation project Make the necessary time commitment and contribute to E3 assessment activities Collect and report appropriate E3 metrics Participate and share at local E3 sustainability councils 17

E3 and WIBs Example: South Carolina - SC E3 partners completed a two day training workshop featuring Lean and Green introductory concepts, practices, and applications along with discussions on roles and responsibilities. This value added workshop also included participation from the local workforce investment boards that helped to align their services and programs with E3. WIBs visited participating E3 manufacturing companies to see first hand how additional green skills could be achieved. The next critical conjuncture for building green skills occurred when key staff inside the manufacturing facilities not only observed environmental assessments (SC TAPS) and energy assessments (SCMEP) but were provided hands on training in developing a value stream map for a specific process During the second day of the assessment process, a future state value stream map was developed---a pivotal piece in identifying future training needs and strengthening strategic planning efforts. 18

E3 and WIBs In the next phase of E3, SC team will involve DOL’s Apprenticeship Program for on the front end of projects to work with manufacturers to add a “green” component for E3 positions. By partnering with the MEP, work force investment boards and local community colleges SC plans to fulfill the training requirements of the Apprenticeship Program. Example: Virginia, the Shenandoah Valley Workforce Investment Board partnered with the VA Division of Registered Apprenticeship and other partners for a grant for assisting incumbent workers. The community and technical colleges are involved in providing apprenticeship related instruction based on the needs of the participating employer. 19

E3: North Carolina – Value of Services 20 ServiceValue Estimation Lean and Green Assessment (2 facilitators for 2-3 days on-site and 1 day off-site) $8,000-$12,000 (range exists depending on availability of grant funding, and contributions from participating E3 client) Carbon Footprint Assessment (1 expert for 1day on-site, additional time off-site) $1,500 - $3,000 Energy Systems Assessment (1 expert for 1-2 days on-site, additional time off-site) $3,000-6,000 (depending on size of facility and operations) Business Excellence Assessment (1 expert for 1-2 days on-site, additional time off-site) $2,500 Worker Safety Review (1 expert for 1 day on-site, additional time off-site) $2,500 Follow-up assistance to develop an action plan for implementation of recommendations resulting from assessments. $ /day - potentially covered through grants and contributions from participating E3 client SBTDC Assistance and training for facility fiscal health, access to loans etc. $800-$1,250/day Workforce Board--Workforce development and training for participating E3 facilities No cost currently identified TOTAL PROGRAM VALUE Up to $28,500 PLUS THE LONG TERM SAVINGS

Why E3 Matters Harnesses the existing services of local, state and federal government Provides manufacturers with a prioritized set of recommendations that focuses on energy natural resources conservation, fiscal health, competitiveness and workforce development Establishes replicable, self-sustaining initiatives to increase the sustainability and profitability of local and regional manufacturers 21

22 Contact Us- E3 Headquarters' Programs Kristin Pierre, EPA Alex Folk, DOC Scott Hutchins, DOE Kevin Thompson, DOL Rachel Newman-Karton, SBA