United States (Federal)

US-4a:Save Energy Now LEADER (replaced by US-4b Better Buildings, Better Plants Program)

Policy Description

The Save Energy Now LEADER Program wasa national initiative of the Department of Energy that aimed to drive a reduction of 25% or more in industrial energy intensity in 10 years (2006-2016). Beginning December 2011, the Save Energy Now Program was transitioned into the Better Buildings, Better Plants Program.

Description

The U.S. Department of Energy’s Advanced Manufacturing Office (AMO, formerly the Industrial Technologies Program, or ITP) has been working with industry since 1976 to encourage the development and adoption of new, energy-efficient technologies [1]. AMO is operating within the Office of Energy Efficiency and Renewable Energy (EERE).

AMO launched the Save Energy Now initiative in support of the Energy Policy Act of 2005 (Section 106) [2], aiming to achieve targeted intensity improvements by widespread adoption of proven, cost-effective technologies and practices that are available today (*1). The Save Energy Now Program’s goal was to drive a 25% reduction over 10 years in U.S. industrial energy intensity from 2007 through 2016 (equivalent to reducing energy intensity by 2.5 percent per year from 2007 through 2016) [3] and contributes to the longer term (2030) targeted CO2 intensity reduction in the U.S. industry. (*12)

In November 2011, the Save Energy Now Program transitioned into the Better Buildings, Better Plants Program (US-2b). All Save Energy Now LEADER companies were eligible to transfer to the Better Buildings, Better Plants Program, although any company may opt-out.

AMO approach
AMO’s approach to achieving these goals is to partner with industry to reduce industrial energy use, emissions, and waste while boosting productivity [4]. These partnership activities follow two paths – 1. Cost-sharing research, development, and demonstration (RD&D) projects, and 2. Working with energy-intensive industries to assess energy use and identify opportunities for energy savings and emissions reductions through AMO's Save Energy Now initiative.

Save Energy Now (end as of December 2011)
The Save Energy Now LEADER program is a national initiative of the AMO that aims to drive a reduction of 25% or more in industrial energy intensity in 10 years (2007-2016) [5] and focuses on onsite energy intensity reductions (*3). To achieve this goal, AMO is partnering with Save Energy Now LEADER companies and Save Energy Now ALLY Organisations. A Save Energy Now LEADER is a U.S. company that has partnered with AMO to significantly reduce industrial energy intensity. They sign a voluntary pledge to reduce their facilities' energy intensity by 25% or more over 10 years by:

  • Developing an energy intensity baseline (*2);
  • Developing an energy management plan;
  • Designating an energy manager or leader [6].  

By signing up the companies have access to extensive free technical support as well as access to financial support (see details below).

Save Energy Now ALLY organisations are state, utility, laboratory, university, and nonprofit partners that make a voluntary commitment to help industrial companies reduce their energy intensity. ALLY Organisations offer financial and technical resources that support industrial energy efficiency. By partnering with ALLY organisations, AMO aims to expand industry access to resources and accelerate reductions in industrial energy intensity.

The 25% goal takes into consideration that reductions in energy intensity may vary from year to year. Companies will select the time period based on data available, starting with the time they sign the Pledge. The time period may not necessarily be 2007-2016.

After AMO’s budget was reallocated, the Superior Energy Performance (SEP) certification program, which was originally one of the supporting elements of Save Energy Now program, has grown in emphasis (see US-5).

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: 2006

End Date: 2011

Policy Linkages

Complements Greenhouse Gas Permitting (under the Clean Air Act) Effort Defining
Complements Energy Star for Industry Program Effort Defining
Supported By Business Energy Investment Tax Credit (ITC) Supporting Measure
Supported By Modified Accelerated Cost-Recovery System (MACRS) Supporting Measure
Supported By Loan Guarantee Program Supporting Measure
Supported By Superior Energy Performance Effort Defining
Replaced By Better Buildings, Better Plants Effort Defining

Agencies Responsible

Department of Energy

Primary Objective: Energy

Objective

The Save Energy Now Leaders partnership aimed to: • Sign up over 240 companies for the Save Energy Now Leaders partnership (FY08-FY13) [7] • Satisfy a requirement in Section 106 of the Energy Policy Act of 2005—to secure voluntary corporate agreements to reduce energy intensity by 2.5% each year from 2007 through 2016—by recruiting companies that pledge to achieve a 25% reduction in industrial energy intensity over 10 years [8]

Target Group

• Energy-intensive industries producing bulk materials such as chemicals, paper, and steel; • Major value-adding industries such as food processing, fabricated metals, and auto manufacturing; • High-growth industries such as computers, electronics, and supporting facilities such as data centers; • New energy supply industries such as biorefineries producing biofuels, power utilities, and chemicals; • Merchandising industries with large supply chains such as wholesalers and retailers; • Through the Save Energy Now LEADER Partnership, any company in the U.S. industrial or manufacturing sector is eligible, regardless of size and no matter their level of expertise in energy management. Global enterprises can also participate, but energy intensity reductions achieved in the United States must be reported on a separate form from non-U.S. reductions.

Driver of energy consumption or emissions affected by policy: Specific energy consumption (with the unit of production can be measured in different ways (*4))

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

Coverage

Thirty-two companies received the Save Energy Now LEADER award in December 2009, after which another 12 companies joined the initiative. (*5) [9]. As of November 1, 2011, Save Energy Now LEADER companies representing over 1,300 facilities had submitted annual reports documenting energy intensity improvements, energy use data, and achievements. Total energy use represented by these companies is over 1 quadrillion Btu and the share of total U.S. manufacturing energy use represented by these companies is 4.8% [10].

Quantitative Target? yes

Target: 25% reduction in energy intensity over 10 years (2.5%/y) (*6)

Time Period: 2007-2016 (10 years, flexible)

Progress Monitored? yes

Verification Required? yes

Enforced? no

Requirements on the Target Group

 

For industrial companies that are partnering with DOE's Advanced Manufacturing Office (AMO) to become a national Save Energy Now® LEADER, DOE requires companies within 12 months to:

  • Establish energy use and energy intensity baselines (*9) Companies can use Quick Plant Energy Profiler (Quick PEP), an online software tool, as a first step in establishing a baseline for plant's energy use [11]
  • Develop an energy management plan
  • Designate an energy leader or manager
  • Develop a Corporate Energy Management Plan (*10)
  • Take steps to reduce energy intensity and as a consequence reduce GHG emissions
  • Report energy intensity, energy use data, and achievements annually to DOE [12].

Support by Government

 

U.S. Department of Energy provides the Advanced Manufacturing Office’s budget through funding and grants [13].

Companies participating can get financial support for their project investments (see US-7, US-8 and US-9).
AMO provides free administrative and technical support [14], including:

  • Steps to Develop a Baseline: A Guide to Developing an Energy Use and Energy Intensity Baseline and the Reporting Requirements for the Save Energy Now LEADER Pledge
  • Quick Plant Energy Profiler (Quick PEP) – software tool (*11)
  • Energy Intensity Baseline Spreadsheet

In addition, AMO facilitates an in-depth plant assessment to identify potential savings from energy efficiency improvements, waste minimization and pollution prevention, and productivity improvement. For the largest, most energy-intensive plants a three-day energy system assessment can be conducted by a DOE Energy Expert.

Small- and medium-sized plants can apply to receive a one-day, plant-wide assessment from one of DOE's university-based Industrial Assessment Centers (IACs). To qualify for this assessment manufacturers should have a total energy bill between $100,000 and $2.5 million and meet other sector-specific conditions [15]. The assessments are performed by local teams of engineering faculty and students from 32 participating universities across the country [16]. The assessments are provided at no charge. Centers are selected through a competitive solicitation process. Average implemented cost savings per assessment is approximately $26,000 [17].

Implementation Toolbox

 

The Advanced Manufacturing Office is supported by an extensive implementation toolbox comprising energy assessments, support for baseline development, software tools such as Quick Plant Energy Profiler (Quick PEP), energy management training and coaching, and webinars. See DOE's website for more information at: http://www1.eere.energy.gov/manufacturing/tech_deployment/

Complexity of Implementation

Government

Program is moderately complex. Complexity lies in the specification of energy intensity targets and the comparison among and aggregation within companies. For example, since the target is a reduction in the energy intensity (dollars per unit of output), the variability in units of output among and within companies creates complexity in analysing the findings. Direct costs are relatively low.

Target Group

Industries can voluntary participate and receive both technical and financial support to implement the program requirements. Difficulties are related to meeting the energy intensity reduction target.

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 As of November 1, 2011 [18], Save Energy Now LEADER companies representing over 1,300 facilities have submitted annual reports documenting their energy intensity improvements, energy use data, and achievements • Total energy use (most updated baseline source energy consumption) represented by these companies is over 1 quadrillion Btu • The share of total U.S. manufacturing energy use represented by these companies is 4.8% (MECS 2006) Over two-thirds of reporting companies are on track to meet their 25% improvement goal • Six companies have met their 10-year targets • Several firms are making multi-million dollar energy efficiency investment commitments • Many SEN LEADER companies are pursuing Superior Energy Performance certification In 2010 the US government reallocated funding such that the Save Energy Now LEADER Program was transitioned into the new Better Buildings, Better Plants Program and the Superior Energy Performance programme (SEP).
Estimated costs/benefits for industry Save Energy Now program reduced plant’s energy use and costs by 5 - 15% over past 3 years [19]. Not applicable
Estimated cost for government The Advanced Manufacturing Office (AMO) budget appropriation for fiscal year (FY) 2012 was $115 million for both supporting RD&D projects and the energy savings assessments [20]. Approximately $62 million was appropriated towards the development and demonstration of next generation manufacturing processes to reduce energy losses from energy systems and improve efficiencies. Approximately $33 million was appropriated for the development of next generation materials for energy efficiency and renewable energy systems. Approximately $18 million was appropriated to provide industrial technical assistance through the Superior Energy Performance (SEP) program; Clean Energy Application Centers; the Better Buildings, Better Plants Program; and Industrial Assessment Centers (IACs) [21]. Not applicable
Other Benefits
General Benefits Industry increases its energy efficiency, energy and cost savings, reduces its CO2 emissions, improves competitiveness

References & Footnotes

References

[1] Pacific Northwest National Laboratory (2009). U.S. Department of Energy’s Industrial Technologies Program and Its Impacts. Retrieved from: http://repository.tamu.edu/bitstream/handle/1969.1/91077/ESL-IE-09-05-21.pdf?sequence=1

[2] Energy Policy Act of 2005: http://www.gpo.gov/fdsys/pkg/PLAW-109publ58/html/PLAW-109publ58.htm

[3] U.S. Department Of Energy (2011). Industrial Technologies Program Planning Summary. Retrieved from: http://www1.eere.energy.gov/industry/pdfs/itp_planning.pdf

[4] U.S. Department Of Energy (2011). Industrial Technologies Program Planning Summary. Retrieved from: http://www1.eere.energy.gov/industry/pdfs/itp_planning.pdf

[5] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[6] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[7] U.S. Department Of Energy (2011). ITP Multi-Year Program Plan 2008 to 2012. Retrieved from: https://www1.eere.energy.gov/manufacturing/about/pdfs/mypp_full_version.pdf

[8] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[9] U.S. Department Of Energy (2010). Save Energy Now LEADER Kicks Off with 32 Signatures, Dec 2009. Retrieved from: http://www1.eere.energy.gov/industry/bestpractices/energymatters/archives/winter2010.html#kickoff

[10] U.S. Department of Energy (2011). Better Tools for Better Plants. November 15, 2011 Webinar hosted by DOE's Advanced Manufacturing Office. Available at: http://www1.eere.energy.gov/industry/resources/tuesday_webcasts.html

[11] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[12] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[13] U.S. Department Of Energy (2012). AMO's Budget (for fiscal year 2012). Retrieved from: http://www1.eere.energy.gov/industry/about/budget.html

[14] U.S. Department Of Energy (2011). Save Energy Now LEADER A Voluntary Pledge for Corporations. Retrieved from: http://www1.eere.energy.gov/industry/saveenergynow/pdfs/leaderpledgefaq.pdf

[15] U.S. Department of Energy, Industrial Assessment Centers (IACs): http://www1.eere.energy.gov/manufacturing/tech_deployment/iacs.html

[16] U.S. Department of Energy, What is the IAC?: http://iac.rutgers.edu/about.php

[17] U.S. Department of Energy, IAC Assessment Statistics: http://iac.rutgers.edu/database/statistics/?STATE=&CENTER=&YEAR_limit=%3C%3D&YEAR=2010&SIC=&NAICS=&search=Search

[18] U.S. Department of Energy (2011). Better Tools for Better Plants. November 15, 2011 Webinar hosted by DOE's Advanced Manufacturing Office. Available at: http://www1.eere.energy.gov/industry/resources/tuesday_webcasts.html

[19] U.S. Department Of Energy (2012). Energy Management Demonstration Program. Retrieved from: http://www.mep.purdue.edu/prod_services/energy/save_energy_now/Energy%20Mgmt%20Demonstration.pdf

[20] U.S. Department of Energy (2012). Department of Energy FY 2013 Congressional Budget Request. Retrieved from: http://www.cfo.doe.gov/budget/13budget/content/volume3.pdf

[21] U.S. Department of Energy (2012). Department of Energy FY 2013 Congressional Budget Request. pg. 131. Retrieved from: http://www.cfo.doe.gov/budget/13budget/content/volume3.pdf

[22] Miller R. (2010). “Role of an Energy Manager”, July 1, 2010 Webcast, U.S. Department Of Energy. Retrieved from: http://www1.eere.energy.gov/industry/pdfs/webcast_20100701_role_energy_manager.pdf

[23] U.S. Department of Energy (2012). Department of Energy FY 2013 Congressional Budget Request. pg. 131. Retrieved from: http://www.cfo.doe.gov/budget/13budget/content/volume3.pdf

[24] Phylipsen et al, 1998, Handbook on International Comparisons of Energy Efficiency in the Manufacturing Industry, Utrecht University, Utrecht.

Footnotes

(*1) Approach differed per sector and depended on various sector-specific assumptions. The Multi-year project plan 2008-2013 includes a detailed overview of focus activities and planning per sector. See http://www1.eere.energy.gov/industry/about/pdfs/mypp_full_version.pdf

(*2) Companies must develop an energy use baseline and track the change in energy intensity throughout their participation in the Pledge. A change in energy intensity is the annual incremental change in plant or organizational energy intensity from one year to the next compared to the base year. Companies without an existing baseline must establish an energy baseline and energy intensity baseline within one year of signing the Pledge and the baseline must be for the year on which the Pledge was made.

(*3) Purchased renewable energy credits were not part of the program. Onsite renewable power or energy recovery efforts such as Combined Heat & Power (CHP) are noted by the Program as a valuable means to reduce energy intensity.

(*4) There are many definitions of energy intensity. The Energy Policy Act of 2005 defines energy intensity as the primary energy consumed for each unit of physical output in an industrial process. Pledge partners were encouraged to measure energy intensity in a way that adheres to this definition. However, DOE mentioned it 'understands that each company will need to adopt methods to measure and track energy intensity data that are appropriate for their operations. Therefore energy intensity pledges and measurements will vary by industry and company. The units of physical output (or units of production) can be the number, mass, volume, size, functionality, or economic value of a product. Note that normally physical output measures by definition exclude measuring output in economic terms [22]. However, in the Energy Policy Act of 2005 this is allowed. Many companies will need to track energy intensity across multiple product lines due to significant diversity in product groups. Segmenting energy use among specific product groups is challenging; however, efforts to do so will provide more accurate and valuable estimates of energy intensity for each product group.’

(*5) On December 2, 2009, the U.S. Department of Energy's (DOE's) Advanced Manufacturing Office (then known as the Industrial Technologies Program) held a signing ceremony at the U.S. Capitol Building in Washington D.C. for the first 32 companies, representing a broad range of the U.S. industrial sector, gathered to publicly commit to the Save Energy Now LEADER initiative.

(*6) The program satisfied a requirement in Section 106 of the Energy Policy Act of 2005 to secure voluntary corporate agreements to reduce energy intensity by 2.5% each year from 2007 through 2016. Program requirements were adapted based on industry input. Companies that became a Save Energy Now LEADER took the Pledge to achieve the 25% goal over a 10 year time period; the 25% goal takes into consideration that reductions in energy intensity may vary from year to year. Companies selected the time period based on data available, starting with the time they sign the Pledge. The time period may not necessarily be 2007-2016.

(*7) To validate and verify program performance, AMO committed to reporting and managing its performance plan and conduct internal and external reviews and audits.

(*8) No penalty for withdrawal from program or failure to meet goal.

(*9) Baseline: Save Energy Now LEADER Companies must develop an energy use baseline and track the change in energy intensity throughout their participation in the Pledge. A change in energy intensity is the annual incremental change in plant or organizational energy intensity from one year to the next compared to the base year. Companies without an existing baseline must establish an energy baseline and energy intensity baseline within one year of signing the Pledge and the baseline must be for the year on which the Pledge was made. The commitment to the Save Energy Now program is intending to reduce industrial energy intensity by 25% during a 10 year period. Companies must strive for that timeframe regardless of energy efficiency efforts done in the past. DOE has developed a guide to help companies calculate valuable baseline metrics. DOE also offers technical assistance to guide companies past any hurdles. DOE wants to make sure that baselines are set in a responsible and defensible manner without causing undue burden on companies and plants. Companies may also use their own or a commercially available methodology.

(*10) Participating companies were required to develop and maintain an up-to-date energy management plan (for internal use only) to guide energy efficiency efforts. This included designating an energy leader or energy manager at the company.

(*11) Quick Plant Energy Profiler (Quick PEP) – software tool helps plants baseline and profile their energy use and estimate potential cost savings in a few hours. Quick PEP has a Carbon Footprint Calculator that considers 24 energy sources and tracks 'absolute' changes in annual energy use and annual CO2 emissions.

(*12) No information is available on the targeted post-2016 energy intensity improvements and a potential continuation of the Save Energy Now initiative (or alternative policies).

Other Useful Resources