United States (Federal)

US-2:Executive Order 13624

Policy Description

Executive Order 13624 sets a national goal to deploy 40 gigawatts of “new, cost-effective industrial CHP” by 2020 and directs federal agencies to support this goal. The purpose of the executive order is to promote American manufacturing by helping to facilitate investments in energy efficiency at industrial facilities. 

Description

Executive Order (EO) 13624 sets a national goal to deploy 40 gigawatts (GW) of “new, cost-effective industrial CHP” by 2020 and directs federal agencies to support this goal. The purpose of the executive order is to promote American manufacturing by helping to facilitate investments in energy efficiency at industrial facilities [1].  It directs four federal agencies (Departments of Energy, Commerce, and Agriculture, and the Environmental Protection Agency) and four councils/offices (National Economic Council, the Domestic Policy Council, the Council on Environmental Quality, and the Office of Science and Technology Policy) to improve coordination to encourage investment in industrial energy efficiency and combined heat and power (CHP) by:

  • convening national and regional stakeholders to identify, develop, and encourage the adoption of investment models and state best practice policies;
  • providing technical assistance to states and manufacturers;
  • providing public information on the benefits of investment in industrial energy efficiency and CHP; and,
  • using existing federal authorities, programs, and policies to support investments [2].

 

The Department of Energy has begun acting on the Executive Order through a variety of activities including [3] [4]:

  • Releasing a Funding Opportunity Announcement to establish regional Combined Heat and Power Technical Assistance Partnerships (CHP TAPs). The CHP TAPs will provide education, outreach and technical assistance to a variety of stakeholders including end-users (e.g., commercial, industrial, institutional), state decision makers, electric and gas utilities, trade associations and non-profit organizations.
  • Initiating Regional Industrial Energy Efficiency & Combined Heat and Power Dialogue Meetings
  • Focusing Better Buildings, Better Plants Program & Challenge efforts on CHP
  • Releasing “Combined Heat and Power: A Clean Energy Solution” report
  • Providing State technical assistance
  • Offering CHP assistance at Regional Clean Energy Application Centers (CEAC)

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: Information & Outreach

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2012

Policy Linkages

Complements Better Buildings, Better Plants Effort Defining
Supported By Business Energy Investment Tax Credit (ITC) Supporting Measure
Supported By Modified Accelerated Cost-Recovery System (MACRS) Supporting Measure
Supported By Combined Heat and Power (CHP) Partnership Effort Defining
Supported By State and Local Energy Efficiency Action Network (SEE Action) Supporting Measure

Agencies Responsible

Department of Energy
Department of Commerce
Environmental Protection Agency

Primary Objective: Energy

Objective

The main objective of the Executive order is to increase investment in industrial energy efficiency and CHP in order to reduce costs for industrial users, improve U.S. competitiveness, create jobs and reduce harmful air pollution.

Target Group

• Industrial companies • ­State governments ­• Utility companies

Driver of energy consumption or emissions affected by policy: Total energy use, Relative efficiency, Technology implementation rate, Knowledge level

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

Coverage

Quantitative Target? yes

Target: Deploy 40 gigawatts of “new, cost-effective industrial CHP” in the U.S. by 2020

Progress Monitored? yes

Verification Required? no

Enforced? no

Requirements on the Target Group

  • Utilities can partner with industrial customers, project developers, and other stakeholders to address existing obstacles, [5]
  • States can promote and adopt the recommendations (from federal agencies) for best practice State policies and investment models that overcome the barriers to investment in industrial energy efficiency, and
  • Manufacturers can invest in energy efficiency and CHP in their facilities

Support by Government

  • Coordinate and encourage efforts to achieve a national goal of deploying 40 gigawatts of new, cost-effective industrial CHP in the United States by the end of 2020;
  • Convene stakeholders, through a series of public workshops, to develop and encourage the use of best practice State policies and investment models that address the multiple barriers to investment in industrial energy efficiency and CHP;
  • Utilize their respective relevant authorities and resources to encourage investment in industrial energy efficiency and CHP, such as by:
    • providing assistance to States on accounting for the potential emission reduction benefits of CHP and other energy efficiency policies when developing State Implementation Plans (SIPs) to achieve national ambient air quality standards;
    • providing incentives for the deployment of CHP and other types of clean energy, such as set-asides under emissions allowance trading program state implementation plans, grants, and loans;
    • Employing output-based approaches as compliance options in power and industrial sector regulations, as appropriate, to recognize the emissions benefits of highly efficient energy generation technologies like CHP; and
    • seeking to expand participation in and create additional tools to support the Better Buildings, Better Plants program at the Department of Energy, which is working with companies to help them achieve a goal of reducing energy intensity by 25 percent over 10 years, as well as utilizing existing partnership programs to support energy efficiency and CHP;
  • Support and encourage efforts to accelerate investment in industrial energy efficiency and CHP by:
    • providing general guidance, technical analysis and information, and financial analysis on the value of investment in industrial energy efficiency and CHP to States, utilities, and owners and operators of industrial facilities;
    • improving the usefulness of Federal data collection and analysis; and
    • Assisting States in developing and implementing State-specific best practice policies that can accelerate investment in industrial energy efficiency and CHP. [6]

 

 

Implementation Toolbox

Combined Heat and Power: A Clean Energy Solution – a report release by DOE and EPA to provide a foundation for national discussions on effective ways to reach the 40 GW target, and includes an overview of the key issues currently impacting CHP deployment and the factors that need to be considered by stakeholders participating in the dialogue [7] http://www1.eere.energy.gov/manufacturing/distributedenergy/pdfs/chp_clean_energy_solution.pdf

Complexity of Implementation

Government

This effort is moderately complex due to the government’s role in coordinating stakeholders, providing technical assistance, and data collection and analysis associated with evaluating progress toward the 40 GW goal.

Target Group

Industrial companies can participate on a voluntary basis and receive access to technical support and financial advice to identify appropriate investment models based on the multiple stakeholders involved.

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 If the goal of 40GW of CHP deployed by 2020 the result will be: ­ • 1 Quad of energy saved (1% of total U.S. energy usage) [8] ­ • 150 million metric tons of CO2 reduced annually [9]
Estimated costs/benefits for industry If the goal of 40GW of CHP deployed by 2020 the result will be: ­ • $10 billion saved a year (compared to current energy use), totalling at least $100 billion saved in energy costs over the next decade [10] [11]
Estimated cost for government

References & Footnotes

References

[1] Exec. Order No. 13624, 77 FR 54779.(2012).

[2] "White House Announces Executive Order on Industrial Energy Efficiency, including Combined Heat and Power." Advanced Manufacturing Office. U.S. DOE-EERE, 30 Aug. 2012. .

[3] Department of Energy. Energy Efficiency and Renewable Energy. Advanced Manufacturing Office. Combined Heat and Power Technical Assistance Partnerships. 12 Dec. 2012. http://www07.grants.gov/search/search.do;jsessionid=V9Z1QKhbGqnG4t6LP29XnWXDJ6Wh5JPWcvgTvcTFBpnjRtHHK0Fk!-1879260429?oppId=210773&mode=VIEW.

[4] Department of Energy, Climate Policy Initiative Dialogue Meeting. http://ccap.org/assets/DOE-activities-in-support-of-the-executive-order-and-CHP-activities-in-Ohio_CCAP-Garland_Oct-2012.pdf

[5] U.S. DOE, and EPA. Combined Heat and Power: A Clean Energy Solution. August 2012. .

[6] Exec. Order No. 13624, 77 FR 54779.(2012).

[7] U.S. DOE, and EPA. Combined Heat and Power: A Clean Energy Solution. August 2012. .

[8] U.S. DOE, and EPA. Combined Heat and Power: A Clean Energy Solution. August 2012. .

[9] U.S. DOE, and EPA. Combined Heat and Power: A Clean Energy Solution. August 2012. .

[10] U.S. DOE, and EPA. Combined Heat and Power: A Clean Energy Solution. August 2012. .

[11] "White House Announces Executive Order on Industrial Energy Efficiency, including Combined Heat and Power." Advanced Manufacturing Office. U.S. DOE-EERE, 30 Aug. 2012. .