How E NERGY S TAR ® Works With Industry

What is E NERGY S TAR ? A voluntary program that enables organizations of all types to achieve their best in energy performance.

Many think of …. buildings homes products …. when E NERGY S TAR comes to mind

But E NERGY S TAR is more E NERGY S TAR works with industrial corporations to improve the energy performance of their operations.

What is meant by “industry”? Primarily manufacturing where mechanical or chemical transformation of materials or substances into new products occurs NAICS code (SIC ) In 2000, manufacturers paid nearly $75 billion for energy, representing an increase of $10 billion over 1999 energy costs!

The Industrial Partnership A voluntary partnership between manufacturers and EPA’s E NERGY S TAR program to promote energy efficiency. Over 477 industrial partners Four industry focuses, thus far

Program Goals Reduce emissions of carbon dioxide and other pollutants from fossil fuel combustion Provide information on the best in energy performance to an industry & recognize the superior achievements of the companies

Why companies participate To reduce energy costs & emissions To strengthen corporate image & position themselves to receive recognition To improve competitiveness

How E NERGY S TAR works with manufacturing companies Highlights superior energy performance –energy management practices and tools Promotes centralized corporate commitment to energy management –identifies corporate energy managers & supports ongoing improvement –provides access to the best advice –tools for demonstrating corporate success

Strategic energy management E NERGY S TAR offers a strategic approach to energy management based on the successful practices of our partners

E NERGY S TAR: Conducts Sector Focuses to develop resources and energy performance indicators for specific industries. Provides forums for energy managers to network and share successful practices.

What Partners do: Improve their energy management program by applying the strategic approach. Make use of the tools provided. Work with E NERGY S TAR to improve the tools under development. Leverage the E NERGY S TAR brand in promoting their program.

Partners: 1. Institute a corporate policy for continuous improvement of energy performance 2. Measure, track and benchmark energy use for all facilities 3. Develop and implement a plan for improving energy performance in all facilities 4. Educate employees and the public about energy efficiency, the successes the company has and its partnership with E NERGY S TAR 5. Tell E NERGY S TAR the company is doing this by using the partnership letter.

What support do partners receive? an easy way to commit to energy performance –model commitment & logical, strategic action plan an easy way to measure, track and benchmark energy in operations –performance rating system »benchmark for building energy consumption »indicator of plant energy consumption an easy way for energy managers to get the support they need –specialized sector focuses –energy professional –corporate attention through commitment –networking opportunities –on-line tools –recognition

Benefits for manufacturers Logical, simple strategy Technology transfer Benchmarks of energy performance targets of performance Contact with peers in a non-sell environment Case studies of real-world efforts Public recognition of company achievements Improve image as environmental leader Results can be used in corporate public relations and environmental programs Confirmation of efforts (a.k.a. third-party validation)

Recognition E NERGY S TAR Partner General Motors Corporation receives 2002 Partner of the Year award from EPA Administrator Whitman

Sector Focuses

What is a focus? A focus is: –a concentrated effort to improve energy performance within a manufacturing sector Goals are to: –create momentum for continued energy performance in the sector –provide tools to enhance energy performance –encourage sharing of ideas and opportunities within the sector –uncover new energy saving opportunities with a specific sector

Current industries of focus Motor Vehicle Assembly Brewing Cement Corn Refiners more to come...

Key aspects of a focus Sector Energy Efficiency Assessment & Opportunities Report Plant Energy Performance Indicator (EPI) Stronger Network of Energy Managers

Specialized Report A technical opportunities assessment of energy efficiency in a manufacturing sector –industry-specific & cross-cutting technologies/practices –estimation of energy savings potential DOE’s Lawrence Berkeley National Laboratory researches and prepares this with the sector

Energy Performance Indicator - the missing metric Answer: Common Knowledge Is 10 MPG high or low for a 2-door economy car? Answer: ? For your plants, do you know? Is an energy cost of $6.00 for every $100 of shipment value high or low?

Rationale for EPI development To enable sector energy managers to assess current performance To help companies set and track energy performance goals To help companies prioritize limited resources & apply them where they will have the most benefit

Do something that matters! Partner with ENERGY STAR, and become an environmental leader while you improve your corporate bottom line.