State and Regional Industrial Energy EfficiencyPlanning, Collaboration and Implementation

David Terry, Executive DirectorNational Association of State Energy Officials

Alliance to Save EnergyState & Utility Partnerships: Engaging American Manufacturers

Wednesday, September 22, 2010

About the National Association of State Energy Officials (NASEO)

NASEO was formed by the governors in 1986. NASEO is the only national organization whose membership

includes the governor-designated energy officials from each state and territory.

NASEO’s 56 State and Territory Energy Office members work on a wide range of energy programs and policies with a focus on driving private-sector economic development through support for renewable energy and energy efficiency technologies.

NASEO operates a Regional Network Program, with seven Regional Coordinators, to support states in program delivery and to improve federal, state, and private sector collaboration.

State Energy Offices and the Federally Co-Funded State Energy Program

Each of the 56 governor-designated State Energy Offices (SEOs) operates energy efficiency and renewable energy programs addressing opportunities in every sector of the economy.

SEOs invest over $3 billion annually of state-based funding (e.g., public benefit funds), as well as cost-shared federal funding from the U.S. State Energy Program (SEP).

SEOs deployed over $3.2 billion in ARRA SEP funds this year with more than $217 million dedicated to industrial efficiency and manufacturing retooling projects and hundreds of millions more in loan programs for industrial efficiency measures.

SOEs are close to constituents, understand in-state energy resources and opportunities and are well-positioned to design and deliver public-sector energy efficiency programs.

NASEO Industrial Efficiency Committee Activities and State Priorities

Financing for Efficiency Improvements – Job Retention and Competitiveness

Manufacturing Retooling Industrial Assessment Centers Clean Energy Application Centers Industrial Energy Efficiency R&D State-based Save Energy Now Projects DOE-EPA State Energy Efficiency Action Network Superior Energy Performance Best Practices (e.g. Compressed Air, Motors)

Success Stories - Manufacturing Retooling

NASEO coordinated 12 states to discuss model RFPs, DOE guidance, etc

Coordination was organic, conference calls were scheduled based on the needs of participating states

Retooling forum fostered state-state relationships to help states help themselves

States included: MD, VA, IL, WI, ID, MI, OH, IN, MN, FL & PA

As a results states like ID, which had already started retooling process could help MD which was having trouble getting approval

Success Stories – STAC Food Processors Efficiency Project

Four SEOs in the Northwest worked with universities, National Labs, the Northwest Food Processors Association (NWFPA), Northwest Energy Efficiency Alliance, Del Monte Foods and others.

Goal: Improve access to information about energy and water efficiency technologies for the NW food processing industry.

Accomplishments: Regional network of stakeholders Best practices portfolio of energy and process optimization 11 Best Practices workshops held for plant and facility staff Emerging technologies resources for food processing industry All information hosted on a web portal maintained by NWFPA

Success Stories – Alabama Save Energy Now

3-year DOE Save Energy Now (SEN) award for energy audits of major users

Alabama Energy Office (ADECA) is collaborating with the Alabama Technology Network (ATN) and the Alabama Industrial Assessment Center (AIAC) to provide energy and lean assessments to manufacturers as one of the primary objectives of the program

Building partnerships with other agencies and companies allowed ADECA to expand the scope of the project, saving energy, materials and money

10 plants assessed to date, with $425,000 in identified annual savings

Success Stories – Industries Of the Future (IOF), West Virginia Assessment Program

Joint effort of West Virginia University’s Industrial Assessment Center (IAC), and the West Virginia Energy Office

Provides assessments to companies ineligible for DOE’s national IAC program due to the minimum energy consumption requirement

The team facilitates implementation of recommendations Results:

QuadGraphics, Martinsburg WV, acting on the assessment recommendations resulted in annual savings of $1.3 million per year

Steel of WV, Huntington, WV – Estimated savings of $888,241 per year One project invested $10,280 in more efficient burners which

resulted in savings of $89,964 annually

Success Stories – Washington State University Extension Energy Program

Washington State University (WSU) has provided assistance to the state’s industries since the 1970’s.

Steady, predictable funding from DOE and the state’s own natural gas settlement fund create stability.

WSU maintains stakeholders group, has on-site technical assistance, and a diverse network of partners – creating value that bring clients back and delivers energy saving results.

Tangible assets include: engineering technical assistance, energy assessments, best practices trainings, financial support ($1.5 million in incentives for capital improvements), policy advocacy, technology information resources.

Programmatic Trends, Needs and Outlook

Engaging Small and Medium Industries, in addition to major industrial firms and energy users, is needed.

Opportunities exist for stronger linkage across RD&D with state and federal leadership.

DOE, states, universities, and non-profits run a wide range of industrial efficiency of programs that are individually effective, but cross-program communication and coordination must be improved to leverage resources and garner support.

NASEO’s Regional Network Program, operating across 7 regions, encourages regional collaboration, peer exchange for program development and design, and multi-state programs and projects.

Enabling public and private financing of efficiency advances is key.

NASEO State Energy Loan Fund (SELF) Database

Contains Information on:• Funding sources • Fund size and focus• Web links• Contact information

The database focuses on revolving loan funds which are self renewing and provide a low-cost way to implement self sustaining programs.

http://www.naseo.org/resources/selfs

NASEO Contact Information

NASEODavid Terry, Executive Director: dterry@naseo.org

Industrial Program StaffBill Nesmith, Industrial Program Director: wnesmith@naseo.orgDiana Lin, Project Manager: dlin@naseo.orgChad Woodworth, Research Analyst: cwoodworth@naseo.org

www.NASEO.org