United States (Federal)

US-6:Energy Star for Industry Program

Policy Description

ENERGY STAR for Industry is a partnership program that encourages the use of energy management to measure energy performance, set goals, and track energy savings. The program focuses on energy efficiency in individual manufacturing sectors and supports industrial companies' development of robust energy programs that create the necessary infrastructure for cost-effective GHG management.

Description

ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that helps homes and businesses save money and protect the environment through energy efficient products and practices [1]. ENERGY STAR includes targeted subprograms such as ENERGY STAR for Buildings & Plants that focuses on energy management in commercial buildings and manufacturing facilities and ENERGY STAR for Industry, which promotes the use of an energy management strategy to assist industry in measuring energy performance, setting goals, and tracking energy savings. Companies that join these programs are known as ENERGY STAR Partners. The ENERGY STAR for Industry program focuses on energy efficiency in individual manufacturing sectors, including  cement, corn refining, dairy processing, food processing, glass, iron and steel, metal casting, motor vehicle manufacturing, petrochemicals, petroleum refining, pharmaceuticals, pulp and paper, and ready mix concrete [2].

Participation
Through ENERGY STAR for Industry, US EPA helps industrial companies develop robust energy programs that create the necessary infrastructure for cost-effective GHG management. US EPA’s ENERGY STAR for Industry program provides guidance, tools, and recognition to help companies improve their energy performance. By becoming an ENERGY STAR partner companies commit to a) measure, track, and benchmark energy performance, b) develop and implement a plan to improve energy performance, adopting the ENERGY STAR strategy, c) educate their staff and the public about the partnership and achievements with ENERGY STAR.  Partners can join at the plant or company level (*1).

Recognition
EPA offers a number of forms of recognition, including certification (label) for energy efficient products and facility energy efficiency (for a production site as a whole) [3]. Recognition of ENERGY STAR Leaders is provided for portfolio-wide energy efficiency improvements of 10%, 20%, 30% (or more) reductions in normalized energy use. Both of these are for industry as well as for other sectors. The Industry Challenge recognizes industrial sites that improve their energy efficiency by 10% within 5 years [4].

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative, Voluntary Agreement

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 1992

Policy Linkages

Complements Save Energy Now LEADER (replaced by US-4b Better Buildings, Better Plants Program) Effort Defining
Complements Better Buildings, Better Plants Effort Defining

Agencies Responsible

Department of Energy
Environmental Protection Agency

Primary Objective: Energy

Objective

Reduce energy use and provide recognition opportunities to highlight industrial companies’ energy efficiency efforts

Target Group

16 major industries including: Steel Industry, Pharmaceutical Industry, Petrochemical Industry, Cement Manufacturing, Corn Refining, Food Industry, Glass Manufacturing, Motor Vehicle Manufacturing, Petroleum Industry, Pulp & Paper, Water/Wastewater [5]

Driver of energy consumption or emissions affected by policy: Energy efficiency

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

ENERGY STAR partners include associations, organizations that own/manage/lease buildings and manufacturing plants, service and product providers, small businesses, and utilities and energy efficiency program sponsors. In 2008, a total of 45 industrial plants were awarded ENERGY STAR [6]. Since then the number has grown rapidly, including the ones that take on an actual reduction commitment. EPA's website lists a total of 399 ENERGY STAR participants (October 2012) [7] of which 155 sites achieved the ENERGY STAR Challenge for Industry goal of a 10% or greater improvement in energy efficiency within 5 years or less [8]. In 2011 alone, 60 plants met or exceeded their targets [9].

Quantitative Target? yes

Target: Set up by participant (*2)

Time Period: Set up by participant (*2)

Progress Monitored? yes

Verification Required? yes

Enforced? no

Sanctions: N/A

Requirements on the Target Group

By becoming an ENERGY STAR partner companies commit to a) measure, track, and benchmark energy performance, b) develop and implement a plan to improve energy performance, adopting the ENERGY STAR strategy, c) educate their staff and the public about the partnership and achievements with ENERGY STAR. The requirements to obtain an ENERGY STAR for Industry label are to follow the Guidelines for Energy Management [10]. These include: STEP 1: Make Commitment, STEP 2: Assess Performance, STEP 3: Set Goals, STEP 4: Create Action Plan, STEP 5: Implement Action Plan (*4) (requested to fill in the Energy Tracking Plan (ETP) template), STEP 6: Evaluate Progress, STEP 7: Recognize Achievements (i.e. obtain the ENERGY STAR label). While the goal setting for ENERGY STAR is at the choice of the partner company, two other labels in the ENERGY STAR program have to meet government defined requirements in order to obtain recognition. Recognition for ENERGY STAR Leaders requires portfolio-wide energy efficiency improvements of 10%, 20%, 30% (or more) reductions in normalized energy use. (*5) In order to be labelled as a partner that meets the ENERGY STAR Industry Challenge parties have to improve their energy efficiency by 10% in 5 years.

Support by Government

US EPA provides recognition through ENERGY STAR to help energy programs to motivate teams, develop momentum, and build support [11]

Implementation Toolbox

The ENERGY STAR for industry is supported by an extensive implementation toolbox. The main tools are: Industry-Specific Energy Management Tools & Resources, ENERGY STAR Industrial Benchmarking Tools, and Guidelines for Energy Management. See http://www.energystar.gov/index.cfm?c=industry.bus_industry

Complexity of Implementation

Government

Practical organisation of the program is manageable and several standard tools are in place. Verification of target setting and achievements at participant level however is a specialised job that is often conducted by specialised consultants hired by EPA. (*3)

Target Group

Participants set up their own goals

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions 60 plants met or exceeding their targets in 2011 by achieving a 10% reduction in energy intensity, saving 16 trillion Btu and preventing the equivalent of nearly 1 million metric tons of GHG emissions [12].
Estimated costs/benefits for industry N/A Costs are only reported in individual plant reports. As it is a voluntary program in general it can be assumed that all investments are cost beneficial or have a short pay-back period.
Estimated cost for government In fiscal year 2012 $49.7 million was enacted for the Energy Star Program. It is not clear which part was reserved for the ENERGY STAR for Industry [13].
Other Benefits
General Benefits Increase enegy efficiency, improve competitiveness
Specific Benefits • Earn Recognition for participant's achievements and success (i.e. ENERGY STAR for plants, ENERGY STAR Challenge for Industry, ENERGY STAR leader)

References & Footnotes

References

[1] US Environmental Protection Agency, History of ENERGY STAR: http://www.energystar.gov/index.cfm?c=about.ab_history

[2] ENERGY STAR Industries in Focus: http://www.energystar.gov/index.cfm?c=in_focus.bus_industries_focus

[3] ENERGY STAR Labeled Buildings & Plants http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.showResults&building_type_id=ALL%20Plants&s_code=ALL&profiles=0&also_search_id=NONE

[4] US Environmental Protection Agency, ENERGY STAR® Challenge for Industry Professional Engineer Guide: http://www.energystar.gov/ia/business/industry/industry_challenge/PE_Guide_ChallengeIndustry.pdf

[5] US Environmental Protection Agency, ENERGY STAR® and Other Climate Protection Partnerships 2008 Annual Report: http://www.epa.gov/cpd/pdf/2008AnnualReportFinal.pdf

[6] US Environmental Protection Agency, ENERGY STAR® and Other Climate Protection Partnerships 2008 Annual Report: http://www.epa.gov/cpd/pdf/2008AnnualReportFinal.pdf

[7] ENERGY STAR Industry challenge participants http://www.energystar.gov/index.cfm?c=industry_challenge.challengers

[8] ENERGY STAR Challenge for Industry Achievers. http://www.energystar.gov/index.cfm?c=industry_challenge.achievers

[9] ENERGY STAR 2011 Achievements in Brief: http://www.energystar.gov/ia/partners/pt_awards/documents/2011_Achievements_in_Brief.pdf?c5c7-ff4b

[10] US Environmental Protection Agency, Guidelines for Energy Management: http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index

[11] US Environmental Protection Agency, How ENERGY STAR Helps Manufacturers Improve the Energy Performance of their Operations: http://www.energystar.gov/ia/business/industry/estar_and_manufacturers.pdf

[12] ENERGY STAR 2011 Achievements in Brief: http://www.energystar.gov/ia/partners/pt_awards/documents/2011_Achievements_in_Brief.pdf?c5c7-ff4b

[13] President’s Fiscal Year 2013 budget request: http://www.epa.gov/planandbudget/annualplan/fy2013.html

[14] US Environmental Protection Agency, ENERGY STAR® and Other Climate Protection Partnerships 2008 Annual Report: http://www.epa.gov/cpd/pdf/2008AnnualReportFinal.pdf

Footnotes

(*1) The Department of Energy has responsibility for specific product categories in the broader ENERGY STAR program but is not directly involved in administering the ENERGY STAR for Industry program. Some of these products include: Compact fluorescent light bulbs (CFLs), Room air conditioners, Refrigerators and freezers, Clothes washers, and Windows, doors, and skylights [14].

(*2) Based on the Guidelines for Energy Management, STEP 3 stipulates to "Set Goals" by 1) determining scope, 2) estimatine potential for improvement, 3) establishing goals.

(*3) Verification process depends on the "Recognition" choices of the participant's achievement. Example: For the ENERGY STAR Challenge for Industry, a licensed Professional Engineer conducts the verification process who can be employed by the organization or site participating in the Challenge for Industry. The licensed Professional Engineers signs the verification on personal title and could lose his/her license if the verification proves to be incorrect.

(*4) Sites participating in the ENERGY STAR Challenge for Industry are asked to confirm that existing company procedures are in place to manage the data required to track energy performance or create an energy tracking plan. For sites that do not have existing procedures, EPA provides sites with an Energy Tracking Plan (ETP) template to help sites establish the basic management procedures and documentation needed for the ENERGY STAR Challenge for Industry. Sites are not required to submit their ETP to EPA for review or approval.

(*5) Note that no period has been specified for this targeted achievement.