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DOE releases FY2011 Budget Request

noreply@blogger.com (Dan Trombley) — Mon, 01 Feb 2010 22:57:00 +0000

The Department of Energy released their budget request for fiscal year 2011 today. While the Office of Energy Efficiency and Renewable Energy's budget is slated for a slight increase, the Industrial Technologies Program's budget request is the same as 2010's request - $100 million (although the actual 2010 budget as passed by Congress was only $96 million).

We are disappointed that the request is not higher. ACEEE recommends that the ITP budget should be $150 million, closer to the funding a decade ago.

However, we are also surprised (and still disappointed) at how the funds are apportioned. While funding for most cross-cutting research, CHP, and technology deployment is slightly up (from $84 in 2010 to $87 million in 2011), the Industrial Assessment Center program is still being run at the unsustainable level of $4 million, roughly unchanged in the past 5 years (except for a small amount of stimulus funds). The IAC's need closer to $8 million to properly run all 26 centers. For more info on the IAC, see here and here.

More importantly, industry-specific research, once the backbone of ITP, has been cut to almost nothing. ITP currently partners with the top energy-intensive industries, such as forest & paper products, aluminum, steel, metal casting, glass, and chemicals; in 2011 they will only fund projects for the chemicals and cement industries (a new addition to ITP).

But most surprisingly is the apparent plan to replace this proven method of partnering with industries to perform R&D with a new program called "Manufacturing Energy Systems". This program will supposedly conduct R&D and/or technology deployment at 2 major universities to address the technology needs of specific industries through "rapid innovation of new products and processes" to reduce energy and greenhouse gas emissions.

We're withholding judgment on this program until we see more details. It has potential to be an effective tool to reduce manufacturing energy use in this country, but we feel this activity should not be done at the expense of the proven methods of the Industries of the Future program.

ACEEE supports the work of the Industrial Technologies Program, but feels, along with a recent peer review of ITP, that it should focus more on industry-specific research.

The President has spoken often on the importance of the manufacturing sector in our economy, on how research and development is essential to securing our long-term economic growth, and on the vital role energy efficiency plays in increasing our energy independence and ensuring a clean energy future. However, he has not taken the necessary steps to support the only program in the federal government that is actively addressing all three.

ACEEE signs coalition letter in support of manufacturing EE jobs

noreply@blogger.com (Nate Kaufman) — Wed, 27 Jan 2010 18:35:00 +0000

In December, ACEEE and 26 other leading trade associations, industrial firms, and NGOs signed a letter in support of provisions in upcoming jobs legislation that will create jobs, improve energy efficiency in manufacturing, and help make American industry more competitive.

The letter can be read in full here [PDF].

Because the House of Representatives passed their own version of a jobs bill last month, the coalition letter was sent to Senators, specifically those on the Energy and Natural Resources Committee, those who are members of the Northeast-Midwest Senate Coalition, as well as to Majority Leader Reid and Minority Leader McConnell. The letter was also sent to key executive officials, including Energy Secretary Chu, Commerce Secretary Locke, and Senior Counselor for Manufacturing Policy Ron Bloom.

The Senate is expected to release preliminary drafts of its jobs bill in the next few days.

Forum on Energy Efficiency in Agriculture - February 7-9, 2010

noreply@blogger.com (Nate Kaufman) — Thu, 07 Jan 2010 16:26:00 +0000

The 3^rd Forum on Energy Efficiency in Agriculture is right around the corner!

Madison, Wisconsin
February 7-10, 2009
Monona Terrace Community Center

Learn how to cut energy costs with energy efficiency, new business opportunities with renewable energy production and carbon sequestration.

National agriculture leaders will speak, including Rick Tolman, CEO of the National Corn Growers Association and Roger Johnson, President of the National Farmers Union.

Regular registration for the 2010 Ag Forum and associated events ENDS January 18, 2010. We know budgets are tight, so register now at www.aceee.org/conf/10ag! You can find the program here.

Wisconsin’s Dairy Business Innovation Center (DBIC) is organizing an accompanying one-day event, the Profitability and Environmental Sustainability in the Dairy Industry Conference. For details on both of these important events, visit www.aceee.org/conf/10ag.

The hotel reservation deadline at the Hilton Madison Monona Terrace is January 15th. Go to: http://www.aceee.org/conf/10ag/index.htm#when to secure your reservations at the low conference rate of $125 per night. Mention ACEEE when making your reservations.

In addition, scholarships are available for interested farm families for the DBIC one-day event only. You can receive a $50 scholarship (maximum 2 per family) if you send a brief email to maggiemfitzsimmons@gmail.com outlining why you're interested in attending and why you need financial assistance at this time.

Register Now and we'll see you in Madison!

Obama's "Framework for Revitalizing American Manufacturing" a step in the right direction

noreply@blogger.com (Dan Trombley) — Mon, 04 Jan 2010 16:13:00 +0000

On December 16, 2009, President Obama released a report on revitalizing manufacturing in the United States. The report lays out the current state of manufacturing in America, discussing seven key cost drivers, how government action--or inaction--can affect those costs, and how the Obama Administration plans to use government influence to improve American manufacturing.

Some key backgrounds discussed in the report are:

the successes of American manufacturing: "the United States has had the largest increase in manufacturing output among major developed countries" since 1978
that manufacturing directly provides quality jobs: manufacturing employees earn 22% more than service sector employees and are more likely to have employer-provided health care
that manufacturing creates 3 jobs in other sectors for each job in manufacturing.
the reasons for the decline in manufacturing employment
the effect of manufacturing on communities.

The report goes details seven ways in which government can impact manufacturing costs and lays out specific policy proposals that will aid American manufacturers. The seven items are:

Provide workers with the opportunity to obtain the skills necessary to be highly productive.
Invest in the creation of new technologies and business practices.
Develop stable and efficient capital markets for business investment.
Help communities and workers transition to a better future.
Invest in an advanced transportation infrastructure.
Ensure market access and a level playing field.
Improve the business climate, especially for manufacturing.

While none of the individual policies are new (many call for increased funding for certain programs or cutting bureaucratic red tape for small businesses), this is the first time an Administration has acknowledged the impact government has on manufacturing and has made a coordinated effort to ensure the effect is a positive one.

ACEEE applauds this report as a vital first step in improving American manufacturing. However, the report underrates the role role energy efficiency can play in increasing manufacturing competitiveness. Energy efficiency lowers energy costs, which are typically higher in the U.S. than in many competing countries. This makes energy efficiency a key target for improving American manufacturing. Additionally, producing advanced energy-efficient products, much like producing renewable energy equipment, can allow American manufacturers to retool and serve a much needed market segment.

This is not to say that energy efficiency is absent in the Obama plan. There are a number of policies that would improve manufacturing energy efficiency in America, such as:

Job training - while not directly targeting efficiency, a more educated and better trained workforce is a key need for improved industrial energy efficiency.
Doubling R&D budgets - unfortunately the report does not mention the important research done through DOE's Industrial Technologies Program.
Doubling funding for Manufacturing Extension Partnerships - the MEP program focuses on improving competitiveness more broadly, but also achieves gains in energy efficiency
Advanced Energy Manufacturing Tax Credit - encourages manufacturers to retool to produce clean energy technologies, including energy-efficient products.
Investments in advanced transportation infrastructure - lowers the cost of transporting freight.
Modernizing the electric grid - enables energy efficiency through greater controls, among other benefits.
Next-gen information and communications technologies - ICT has already been one of the largest contributors to manufacturing energy efficiency in the last 20 years.
Passing comprehensive energy and climate legislation - if a climate bill like ACESA in the House or an energy bill like ACELA in the Senate are passed, it will mean billions of dollars for manufacturing energy efficiency. However, both bills fall short of what truly comprehensive energy legislation could accomplish.

One policy not mentioned in the report is DOE's Industrial Assessment Center (IAC) program. Expanding this program (as directed under the ACELA bill) would establish workforce training at universities and community colleges, improve competitiveness of American manufacturing, and reduce energy use.

Manufacturing grows in December

noreply@blogger.com (Nate Kaufman) — Mon, 04 Jan 2010 16:04:00 +0000

According to a new report released by the Institute for Supply Management, in December the U.S. manufacturing sector grew for the fifth straight month. The ISM's index of national factory activity rose to 55.9 from 53.6, putting it at its highest level since April 2006.

See the Reuters article for details.

McKinsey: Credit Starting to Flow

noreply@blogger.com (Neal Elliott) — Fri, 18 Dec 2009 17:56:00 +0000

Is credit starting to flow?

Every six weeks, the Quarterly conducts an economic conditions snapshot survey of a panel of executives around the world. For the first time in more than a year, the proportion of respondents who report that their companies have sought external funds has changed significantly—increasing to 41 percent, from 32 percent in October. What’s more, a higher proportion of these companies actually received the money they sought. Our findings may indicate a rising—and apparently well-founded—hope among executives that credit will be available.

From McKinsey Consulting:

For more on the views of our executive panel, read “Economic Conditions Snapshot, December 2009: McKinsey Global Survey results” (December 2009).

Interagency report on international competitiveness and climate regulations released

noreply@blogger.com (Nate Kaufman) — Fri, 11 Dec 2009 16:58:00 +0000

On December 2, a number of collaborators from several federal agencies released a report [PDF] at the request of five Senators from manufacturing states: Evan Bayh (D-IN), Sherrod Brown (D-OH), Arlen Specter (D-PA), Debbie Stabenow (D-MI), and Claire McCaskill (D-MO).

The original letter from the Senators asked that the Administration offer an analysis of four primary points:

Determination of which industries will likely be eligible for the energy-intensive, trade-exposed (EITE) industry allocations provided in the American Clean Energy and Security Act of 2009 (HR 2454);
Assessment of the potential impacts of this legislation on EITE industries;
Identification of additional data that would be useful for determining trade impacts, allocation requirements, and greenhouse gas emission in other countries; and
The other measures within ACES that could help to mitigate the effects of a cap-and-trade system on EITE industries.

The report is thorough and impressive in its scope and depth. The executive summary states:

The modeling indicates that, even absent the mitigating allocation measures, total annual emission leakage to unregulated countries associated with a cap-and-trade program’s impacts on the international competitiveness of domestic “trade-vulnerable” industries is likely to be only on the order of 10 MMTCO2e. The modeling projects that the vast majority of emission reductions achieved by these industries under a cap-and-trade program will be from reductions in the emission-intensity of their production (e.g., increased energy efficiency, or shifts to lower-emission production methods), rather than from declines in production associated with increased imports from unregulated countries. Importantly, while output-based allocations can essentially eliminate the leakage that is associated with the reduced international competitiveness of domestic industry, if carefully designed, these allocations can do so while preserving incentives for industry to reduce the emission-intensity of its production. With such allocations, leakage associated with impacts on the international competitiveness of domestic industries falls to about one MMTCO2e, or about one percent of the estimated emission reductions from those industries.

There are several caveats outlined in the full report, as well as potential issues with the administrability of the EITE provisions of ACES.

ACEEE commends the report's authors for their hard work, and we hope that this will help to pave the way for Senate legislation that will lead to a more energy-efficient, rejuvenated, competitive, and sustainable manufacturing sector in the United States.

Obama's jobs speech gives indicates support for manufacturing energy efficiency

noreply@blogger.com (Nate Kaufman) — Wed, 09 Dec 2009 16:02:00 +0000

Yesterday, President Obama gave a speech broadly laying out the steps that his Administration envisions for further stimulating the economy, putting Americans back to work, and getting businesses hiring again. In it, he gave a nod to the manufacturing sector, indicating that an upcoming jobs bill should include programs that invest in manufacturing energy efficiency and bolster manufacturers of energy efficiency and clean energy technologies:

Expansion of successful oversubscribed Recovery Act programs to leverage private investment in energy efficiency and create clean energy manufacturing jobs. The Recovery Act included historic investments that have helped to build the foundation for a clean energy economy. The Administration supports expanding programs for which additional federal dollars will leverage private investment and create jobs quickly, such as industrial energy efficiency investments and tax incentives for investing in renewable manufacturing facilities in the U.S.

ACEEE views this as a promising signal of the Administration's acknowledgment of the manufacturing sector as a crucial target for public-private partnership investment. We look forward to a concerted effort by both the President and Congress to follow through on strong energy efficiency measures for the manufacturing sector.

Images: President Obama (Boston Globe)

Factory orders rise unexpectedly in October

noreply@blogger.com (Nate Kaufman) — Fri, 04 Dec 2009 16:35:00 +0000

Economic reports show that U.S. factory orders unexpectedly rose in the month of October, according to the Associate Press. Economists worry that economic recovery could be hindered by a continued increase in unemployment rates and decrease in disposable income. However, in another favorable piece of economic news released today, the Department of Labor reports that national unemployment fell slightly to 10.0 percent as only 11,000 jobs were lost in November, the smallest monthly loss since the recession began two years ago. According to the Associated Press article,

The factory orders report followed news earlier this week that a closely watched gauge of manufacturing activity showed growth for a fourth straight month in November. The Institute for Supply Management said its manufacturing index read of 53.6, slightly lower than October's 55.7. But any reading above 50 indicates growth.

Economists were especially encouraged that new orders in the ISM report jumped over 60 for the third time in the past four months. The last such streak was in 2005. Of the 17 industries surveyed, 13 reported higher orders.

First Industry-specific Roadmap Examines Emissions Reductions in Cement Industry

noreply@blogger.com (Nate Kaufman) — Thu, 03 Dec 2009 20:54:00 +0000

The Cement Technology Roadmap [PDF], released today by the World Business Council for Sustainable Development (WBCSD) and the International Energy Agency (IEA), outlines the path that the public and private sectors should take to reduce global greenhouse gas emissions associated with the cement industry. It is the first such report to focus on a specific industry sector, and includes energy efficiency investments as a primary means of achieving the emissions reductions that the industry is capable of achieving, namely about 18 percent below 2005 levels by 2050.

Other emissions abatement measures outlined in the report include use of renewable sources of energy and the development and deployment of carbon capture and sequestration technologies.

See WBCSD’s news release for details.

The full roadmap is available here.

Manufacturing grows again, but recovery fragile

noreply@blogger.com (Nate Kaufman) — Tue, 01 Dec 2009 18:34:00 +0000

The U.S. manufacturing sector grew in November for the fourth month in a row, Reuters points out today. However, the growth has slowed down slightly from October:

The Institute for Supply Management said on Tuesday its index of national factory activity decelerated to 53.6 in November from 55.7 in October. The median forecast of 70 economists surveyed by Reuters was for a reading of 55.0 in November. Readings above 50 indicate expansion in the manufacturing sector, while numbers below 50 show contraction.

Still, most factors are moving in the direction of economic recovery.

New reports: Industry's role in addressing climate change

noreply@blogger.com (Nate Kaufman) — Thu, 05 Nov 2009 16:46:00 +0000

A new study by the World Wildlife Fund examines the need for US industries to undergo a fundamental transformation to decrease carbon emissions to necessary levels. According to the executive summary:

This report models the ability of low-carbon industries to grow and transform within a market economy. It finds that runaway climate change is almost inevitable without specific action to implement low-carbon re-industrialisation over the next five years. The point of no return is estimated to be 2014.

While WWF focuses on the need for the industrial sector to address climate change before the point of no return, a separate report by the Presidential Climate Action Project gives several important government recommendations for addressing industrial decarbonization.

Efficiency, as expected, plays a huge role in these recommendations. Among the recommendations are the bolstering of two critical DOE programs: Industries of the Future, and Industrial Assessment Centers. ACEEE has been advocating for these programs for many years, and we expect that they will certainly play a key role in addressing climate change in the industrial sector.

DOE Announces $155 Million for Industrial Energy Efficiency

noreply@blogger.com (Dan Trombley) — Tue, 03 Nov 2009 18:27:00 +0000

DOE announced today they would be awarding over $155 million for industrial energy efficiency projects and technical assistance. "Many companies already realize that improving efficiency saves money while helping the environment," said DOE Secretary Steven Chu. "These projects will make energy efficiency technologies more widely available, cutting energy use and reducing carbon pollution across the country."

About $146 million was awarded to nine companies implementing energy efficiency projects in plants across the country.

The remaining $9.5 million was awarded to the university-based Industrial Assessment Centers (IAC), state agencies, regional partnerships, and a national technical assistance provider to offer local technical support for the industrial sector. These awards went to 15 IACs, 11 state energy offices/organizations, five regional efficiency partnerships, and one national technical assistance provider.

More detail on the grant selections can can be found here.

This announcement is a very good step for industrial energy efficiency. The bulk of the grant money will go toward the implementation of projects, in accordance with the goals of the stimulus package. Some funds will be retained for more strategic uses such as technical assistance which can beget even more projects down the road.

However, the demand for industrial energy efficiency remains extremely high. DOE has publicly stated that requests for this funding exceeded $10 billion, or nearly 65 times the funds available. The industrial sector continues to be undervalued by policymakers. Despite accounting for one-third of the energy use and 27% of greenhouse gas emissions in the United States (LBNL), the industrial sector has not been receiving appropriate consideration and funding to reflect this importance. As a reference point, industrial energy efficiency was given about 0.02% of stimulus funds, and receives about 4% of DOE Energy Efficiency and Renewable Energy budget.

ACEEE commends today's DOE grant allocation, and hopes that future policies and appropriation will give increased attention to the industrial sector.

Durable goods orders rise 1 percent in September

noreply@blogger.com (Nate Kaufman) — Thu, 29 Oct 2009 14:56:00 +0000

From the Associated Press:

WASHINGTON — Orders to U.S. factories for big-ticket manufactured goods rose in September as the biggest jump in demand for machinery in 18 months offset weakness in commercial aircraft and autos.
The second advance in three months for durable goods orders is a hopeful sign for the manufacturing sector, which has helped lead the early stages of the fledgling economic recovery. But many economists worry that demand could falter in the months ahead as various government stimulus programs wind down.
The Commerce Department said Wednesday that orders for items expected to last at least three years increased 1 percent last month, matching economists' expectations. Excluding transportation, orders rose 0.9 percent, slightly better than the 0.7 percent that economists had forecast.
A 7.9 percent rise in orders for machinery, the best showing since an 8.5 percent surge in March 2008, led the overall increase.
Orders for non-defense capital goods, considered a good proxy for businesses' investment plans for new equipment, rose 2 percent, the strongest advance since June.
Last month's rise in orders followed a 2.6 percent decline in August and a 4.8 percent surge in July, indicating that any recovery from the recession likely will proceed in fits and starts.
Paul Ashworth, senior U.S. economist at Capital Economics in Toronto, said a large part of the September increase reflected a jump in demand for military equipment rather than strength in the private sector.
"The recovery is still struggling to gain any forward momentum," he wrote in a note to clients.
Demand for transportation equipment rose 1.1 percent after a 9.1 percent plunge in August. Orders for defense aircraft rose 12.5 percent last month, offsetting a 2.1 percent drop in demand for commercial aircraft and a 0.1 percent dip in orders for autos and auto parts.
The auto sector had posted two months of gains, helped by the Cash for Clunkers government sales incentive program. But that program, which offered car buyers up to $4,500 to trade in their old models for new cars, ended in August.
Besides the surge in demand for machinery, orders for primary metals such as steel rose 0.3 percent. Orders for computers and related products increased 0.4 percent in September.
Analysts expect that the overall economy, as measured by the gross domestic product, grew at an annual rate of 3.3 percent in the July-September quarter after contracting for a record four straight quarters. The third-quarter GDP report is due out Thursday.
If businesses are encouraged by the early signs of recovery, they could start hiring back the millions of workers who were laid off during the recession, providing an important boost to consumer spending. But many employers appear reluctant to hire back those workers until there are more signs of a rebound.
Caterpillar Inc. announced Monday that about 2,500 laid-off workers will be permanently cut from the company. They were among more than 22,000 employees laid off earlier this year as the world's largest maker of mining and construction equipment scaled back production due to weaker demand. Caterpillar last week said it was seeing encouraging signs that a recovery was under way, even as it reported a 53 percent decline in third-quarter earnings.
Also this month, Texas Instruments Inc. reported third-quarter profits and sales that were slightly above expectations. The company also said its largest division, which makes analog chips used in digital music players and other gadgets, enjoyed 20 percent growth for the second straight quarter.

Barriers to energy efficiency investments and energy management in the industrial sector

noreply@blogger.com (Nate Kaufman) — Tue, 27 Oct 2009 14:25:00 +0000

The industrial energy efficiency team at ACEEE has put together a brief synopsis of the Barriers to energy efficiency investments and energy management in the industrial sector [PDF]. With the current economic recession being the primary obstacle to industrial energy efficiency investments, ACEEE looks ahead to the American economy's recovery, but acknowledges that the current economic climate is the best time to make the necessary policy changes to encourage efficiency investments. The four greatest challenges that stymie such investments include:

The need for new technologies, products, and processes;
Access to industry-specific expertise, assessments, and training for workers;
Availability of a trained and capable workforce; and
Access to useful capital to make needed investments.

Several policy initiatives, which are discussed briefly in the paper, could help to address these limiting factors, including legislation currently on the table in the US Senate. In particular, components of the American Clean Energy Leadership Act of 2009 would help to address some of the fundamental obstacles to industrial energy efficiency.

It is ACEEE's hope that these provisions will be incorporated into a comprehensive energy/climate bill, one with more robust energy efficiency provisions across all economic sectors. (See Climate Bill Must Be Strengthened to Spur Investment in Energy Efficiency to Save Consumers $Billions, Create Millions of New Jobs, Support Robust Economy.)

Manufacturers Worse Off Under Kerry-Boxer Climate Bill Emissions Allocation Scheme

noreply@blogger.com (Dan Trombley) — Mon, 26 Oct 2009 18:06:00 +0000

On Friday, October 23rd, the EPA released its scoring of the Clean Energy Jobs and American Power Act (S. 1733), also referred to as the Kerry-Boxer Climate Bill. The EPA found that the costs of Kerry-Boxer do not differ greatly from the Waxman-Markey climate bill. Both bills are expected to cost around $100 per household. However, this analysis does not fully account for energy efficiency provisions, which ACEEE estimates could save as much as $36 billion by 2030.

On the same day, Senator Boxer released the Chairman's Mark of the Kerry-Boxer bill. This version filled in some of the major sections left out of the original bill. One of the most anticipated sections was the greenhouse gas emissions allocations. The percentage allocations for "energy-intensive, trade-exposed" (EITE) industries are almost the same as the House-passed Waxman-Markey bill, except the Senate bill allocates slightly more allowances in the early years (4% instead of 2% in 2012 and 2013). However, there are about 1% fewer allocations in the Senate bill because it has a slightly stricter emissions cap. Much more importantly, about 20% of lifetime allowances are set aside for other purposes before the rest of the allocations are divvied up. Even though EITE industries receive more allowances in the first two years, the Senate bill will result in about 15% less allowances than the House bill. The Senate bill gives about 6% of all allowances over the life of the bill to EITE industries, while the House bill gives about 8%.

Both the Waxman-Markey and the Kerry-Boxer bills compel the program administrator to determine eligible facilities based on the following criteria: Any manufacturing facility that has either an Energy Intensity or a Greenhouse Gas Intensity of at least 5% AND has a Trade Intensity of at least 15% is eligible. Additionally, any facility has an Energy Intensity or a Greenhouse Gas Intensity of at least 20% is also eligible. It should be noted that only about 1.3% of US manufacturing facilities would be directly affected by a carbon cap.

Definitions:
- Energy Intensity: $energy / $shipments;
- Greenhous Gas Intensity: (20 * Tonnes-CO2e) / $shipments;
- Trade Instensity: ($imports + $exports) / ($imports + $shipments) of the sector;

However, there are still issues with administrability, particularly data collection, that have yet to be properly addressed. In many cases, data for each industry (at the six digit NAICS code level) is not readily available, and current estimates often use surveys such as the Manufacturing Energy Consumption Survey, which are not designed to provide information with the precision required.

New Report Identifies Best Program Strategies for Realizing Energy Efficiency in Industry

noreply@blogger.com (Nate Kaufman) — Thu, 08 Oct 2009 17:52:00 +0000

WASHINGTON, D.C. (October 8, 2009) - A new report by the American Council for an Energy-Efficient Economy (ACEEE) highlights successful program strategies to realize the large potential energy savings in the industrial sector. Released today, Industrial Energy Efficiency Programs: Identifying Today's Leaders and Tomorrow's Needs finds that industrial sector energy savings have remained untapped by many existing publicly funded energy efficiency programs. Energy efficiency in the industrial sector represents a low-cost resource compared with other sectors, but running successful programs for this sector requires different approaches than are traditionally used in other sectors. The new report identifies leading industrial programs and successful program strategies, and suggests directions for programs looking to start or expand offerings to realize the energy efficiency savings in this sector.

The report reviewed over 30 industry-focused energy efficiency programs in the United States and Canada, and offers new insights into current trends in today's industrial energy efficiency programs. It also discusses emerging challenges that such programs will have to address in the near future. These challenges reflect the industrial sector's complexity where many efficiency opportunities are site-specific. The report finds that successful industrial efficiency programs build relationships with their industrial customers and provide flexible program offerings to meet these challenges.

"This report is timely because of the important role of the industrial sector to contribute to energy efficiency savings and greenhouse gas emission reductions," said Anna Chittum, lead author of the report and associate with ACEEE's Industrial Program. "As more states, as well as the federal government, set more aggressive energy savings targets, we need the significant savings available from the industrial sector to achieve these goals and keep costs down for everyone."

Industrial energy efficiency programs have existed for decades across the U.S. and Canada. But these programs have not historically maximized savings opportunities and many publicly funded programs have not invested time and resources to develop programs to effectively serve this sector.

"To achieve the energy savings required by the substantial energy savings goals out there, we have to learn how to make today's industrial energy efficiency programs as effective as possible," said Dr. Neal Elliott, ACEEE's Associate Director for Research and a co-author of the report. "Improving these industrial programs is our best opportunity for achieving significant energy savings in the industrial sector."

One important trend the report notes is the emergence of "self-direct" industrial programs, in which large industrials have the opportunity to utilize public benefits funds-which would otherwise support industrial efficiency programs-to make these investments in their own facilities. In these situations, the facilities themselves are responsible for meeting savings targets stipulated by the program administrator. The report finds that the few well-designed self-direct programs actually behave similarly to mature customized incentive programs. Both well-designed "self-direct" programs and mature customized incentive programs deliver large and low-cost energy efficiency savings.

The report also lays out important lessons learned about industrial programs generally for those looking to establish new industrial energy efficiency programs. "So many utility and public benefit programs are looking to achieve more savings from their industrial customers," said Nate Kaufman, a co-author of the report and research staff with ACEEE's Industrial Program. "This report shows that there is still plenty of room for improvement. Industrial programs can look to the leading programs to learn how to make their programs better."

Industrial Energy Efficiency Programs: Identifying Today's Leaders and Tomorrow's Needs is available for free download or a hard copy can be purchased online for $25 plus $5 postage and handling from ACEEE Publications, 529 14th St, N.W., Suite 600, Washington, D.C. 20045, phone: 202-507-4000.

Solicitation for Grant Applications to Develop CHP Projects in Pennsylvania

noreply@blogger.com (Nate Kaufman) — Fri, 18 Sep 2009 14:22:00 +0000

From the EPA CHP Partnership:

The EPA CHP Partnership is informing its Partners of an important funding opportunity. The Pennsylvania Department of Environmental Protection has issued grant solicitations designed for the purchase and installation of renewable energy and energy efficiency equipment, including CHP. The grant program is called Pennsylvania Green Energy Works.

Applications are due by 4:00 P.M. EDT on October 9, 2009.

A collective total of up to $52 million will be available under four Pennsylvania Green Energy Works solicitations with $11 million allocated for CHP. All funding for this program is Federal funding appropriated by The American Recovery and Reinvestment Act of 2009.

Projects must comply with the following in order to be funded:
All projects must be physically located in Pennsylvania.
The project must result in the creation or retention of part-time or full-time temporary or permanent jobs.
The application must contain letters supporting the financial commitment for at least 25 percent of the cost of the project. These letters of commitment must be from both the applicant and any outside sources of funding, including clear documentation of amounts from each source. Monies "applied for" from other sources may not be included. Other DEP program funds cannot be used to comply with the project match.
For more information on the solicitation, including eligible projects, instructions for how to apply, and application evaluation considerations, visit the Pennsylvania Green Energy Works CHP Solicitation.

Manufacturers leading early stages of recovery

noreply@blogger.com (Nate Kaufman) — Thu, 17 Sep 2009 20:15:00 +0000

The Associated Press published an article yesterday about the gains in industrial production seen in August, yet another sign of the road to recovery. Here's one snippet:

In part, the improvement reflected auto sales that were boosted by the government's now-ended Cash for Clunkers program. But analysts were impressed that output rose broadly across industries.

"Vehicles are not the whole story," Nigel Gault, chief U.S. economist at IHS Global Insight, said in a note to clients.

Gault noted that production rose in five out of 10 categories of durable goods, including machinery and electrical equipment.

Advanced Energy Manufacturing Tax Credit - Applications Due September 16, 2009

noreply@blogger.com (Nate Kaufman) — Thu, 10 Sep 2009 15:28:00 +0000

From the DOE office of Energy Efficiency and Renewable Energy:

Through the American Recovery and Reinvestment Act of 2009, the Department of Treasury is awarding $2.3 billion in tax credits for qualified investments in advanced energy projects to support new, expanded, or re-equipped domestic manufacturing facilities. The Advanced Energy Manufacturing Tax Credit will help secure American leadership in the clean energy sector by supporting the larger goals of the Recovery Act to stimulate economic growth, create jobs, and reduce greenhouse gas (GHG) emissions.

The U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS) will review applications and make determinations on eligibility and merit. The application period opens August 14, 2009. Preliminary applications are due September 16, 2009, followed by final applications due to DOE and the IRS October 16, 2009.

Eligible projects include:

Technologies that create energy from renewable resources
Energy storage technologies
Advanced transmission technologies that support renewable generation
Renewable fuel refining
Energy conservation technologies
Plug-in electric vehicles and components
Property to capture and sequester carbon dioxide emissions, and to reduce GHG emissions.

Successful applicants will receive acceptance agreements from the IRS by April 16, 2010. Projects must be completed within 4 years of acceptance. Credits will cover future expenses and will not award past investment(s).

Read the DOE press release to learn more. Make sure to look in the right column for application forms and contact information.

Visit ITP's solicitations page for information on other financial opportunities.

American factories growing

noreply@blogger.com (Nate Kaufman) — Tue, 01 Sep 2009 21:11:00 +0000

American manufacturing facilities are expanding production for the first time in over a year and a half, according to the Institute for Supply Management (ISM). The ISM's manufacturing index broke 50 for the first time since January 2008, coming in at 52.9.

The ISM index is a key measure of US manufacturing. Any number below 50 means the economy is contracting, and any number over 50 means it's expanding.

This is a significant stepping stone of the path to recovery because it means that manufacturers have burned down as much of their inventory as they feel comfortable with and are launching new purchase orders. This, in turn, should lead to the creation of more jobs.

Solicitation for Applications to Develop CHP Energy Facilities Serving New Jersey Commercial and Industrial Customers

noreply@blogger.com (Nate Kaufman) — Wed, 26 Aug 2009 18:08:00 +0000

From the EPA CHP Partnership:

The EPA CHP Partnership is informing its Partners of an important funding opportunity. The New Jersey Board of Public Utilities in consultation with its Business Energy Ombudsman issued a solicitation for applications to develop CHP energy facilities serving New Jersey commercial and industrial customers. This solicitation is to encourage the development of CHP electrical and thermal energy generation projects. The projects must serve commercial and industrial facilities in New Jersey.

The solicitation has a total of $60 million available for grants. The amount of the grant will be based on the actual electric and thermal energy production on an annual basis which shall begin upon the commencement of operations of the CHP project. The grant amount will be calculated based on a 75 percent capacity factor over four years.
The CHP project shall serve a commercial, institutional, or industrial electricity customer in New Jersey with electric demand of at least 750 kilowatts, or such level of demand as subjects the customer to payment of a Retail Margin.
The CHP project shall establish by contract or other arrangement that the electric output generated by the CHP system, to the maximum extent feasible, be consumed at the project site by a facility located at the site and that any surplus power produced that is not needed by that facility may be sold into the interstate PJM grid.
The CHP project shall have an electric generating capacity of greater than 1 MW.
The CHP project shall be designed to achieve thermal efficiency levels of at least 65 percent for facilities with up to 20 MW of electric generating capacity, and at least 70 percent for facilities with electric generating capacity greater than 20 MW. An existing facility that does not currently achieve the applicable thermal efficiency level shall be eligible to receive a grant if the CHP system will result in achieving thermal efficiency levels of at least 65 percent for facilities with up to 20 MW of electric generating capacity, and at least 70 percent for facilities with electric generating capacity greater than 20 MW.

For more information on the solicitation, including instructions for how to apply, visit the New Jersey Economic Development Authority's Web site.

ACEEE 2009 Summer Study on Energy Efficiency in Industry a success!

noreply@blogger.com (Nate Kaufman) — Tue, 18 Aug 2009 20:02:00 +0000

ACEEE held its eighth biannual conference on industrial energy efficiency from July 25-31. Every discussion--from the morning formal presentations to the afternoon informal sessions to the evening plenaries--were full of valuable information.

A summary of the conference reflections by Neal Elliott is posted on our website, along with the plenary presentations.

All the papers presented at the conference are available on CD-ROM. If you would like to order a CD, visit our publications page and click on "Summer Study Proceedings" or contact Eric Schwass at eschwass@aceee.org to place an order. Additional copies are $100 each.

Thanks again to all of our presenters and attendees. We look forward to seeing you again in 2011!

GM raises production as "clunker" sales rise

noreply@blogger.com (Nate Kaufman) — Tue, 18 Aug 2009 19:47:00 +0000

From Reuters:

General Motors Co said on Tuesday it is increasing production for the second half of 2009 after a surge in sales ignited by the U.S. government's "Cash for Clunkers" incentives program.

The No.1 U.S. carmaker said it would build 60,000 more vehicles than planned for the third and fourth quarters by increasing overtime, adding shifts at several North American assembly plants.

The move will bring about 1,350 hourly workers in the United States and Canada back to assembly lines, GM said.

GM joins other automakers including Ford Motor Co in raising output after the runaway success of the incentive program, which offers payments of up to $4,500 to people who trade in old gas guzzlers for fuel-efficient vehicles, helped the companies reduce a glut of unsold cars and trucks.

By late July, the "clunkers" program, inspired by similar programs in Europe, had been drained of the $1 billion in its original budget. Congress authorized another $2 billion to extend the program.

GM's focus on more energy-efficient vehicles is welcome news for the energy efficiency community, and the increased production is perhaps even more welcome news for the struggling manufacturing sector.

More Manufacturing Green Shoots

noreply@blogger.com (Neal Elliott) — Fri, 14 Aug 2009 14:57:00 +0000

The Federal Reserve reported today that industrial production increased 0.5% in July, the first month in the positive realm in 9 months. The automotive sector lead the recovery as a result of the CARS ("Cash for Clunkers") program, but other sectors expanded by 0.2%, with aerospace equipment, computers and electronic products, and plastics leading the way. "Industrial production likely will remain healthy for the rest of the year as companies restock depleted inventories," said Joshua Shapiro, chief U.S. economist for MFR, Inc. The Commerce Department reported last week that wholesale inventories declined 1.7% in June. As an indication of this, AISI reported that steel manufacturing rate of capability utilization was 53.2%, up from a low of 41% early in the spring.

These indications suggest a modest and uneven recovery, but clearly the sector has begun to turn the corner.