# Presentation: 205083

## Overview of Industrial Energy Efficiency and Environmental Policies and Programs in the U.S. 

**Lynn Price**
**Energy Analysis Department**
**Environmental Energy Technologies Division**
**Lawrence Berkeley National Laboratory**
**Presented to the Policy Implementation Committee **
**of the Energy Conservation and GHG **
**Emissions Reduction in Chinese TVEs Project**
***September 15, 2003***

## U.S. Industrial Energy Use

- Industrial sector accounts for about 40% of U.S. primary energy consumption
- Industrial sector emits about 35% of U.S. carbon dioxide emissions
- Key indudstrial subsectors: agriculture, mining, construction, food, paper, chemicals, glass, cement, steel, primary aluminum, petroleum refining, metals-based durables, and other manufacturing
- Most of the energy industry uses is supplied from natural gas and petroleum, with electricity coming in a distant third, followed closely by coal

## U.S. Industrial Primary Energy Use, 1997

## U.S. Industrial Energy Use

- LBNL energy efficiency assessments show cost-effective potential savings available in key energy-intensive U.S. industrial sectors
- Iron and steel sector: 18%
- Pulp and paper sector: 16% to 22% (with recycling)
- Cement sector: 18%

## U.S. Energy Efficiency Policy

- National Energy Policy Legislation (passed by Congress)
- National Energy Conservation and Policy Act – 1975
- National Energy Act – 1978
- National Appliance Energy Conservation Act – 1987
- Energy Policy Act – 1992
- National Executive Orders (issued by the President)
- Requiring Agencies to Purchase Energy Efficient Computer Equipment
- Energy Efficiency and Water Conservation at Federal Facilities
- Greening the Government Through Efficient Energy Management
- Developing and Promoting Biobased Products and Bioenergy
- Greening the Government Through Federal Fleet Transportation Efficiency
- Actions To Expedite Energy-Related Projects
- Energy Efficient Standby Power Devices

## Energy Policy Act (EPAct) – 1992
Established a program within the U.S. Department of Energy to demonstrate and commercialize new renewable energy and energy efficiency technologies 
Established new standards, rating systems and demonstration programs to promote increased energy efficiency in buildings
Outlined voluntary guidelines and provided grants to industry for energy efficiency improvements
Outlined new standards and labeling programs for appliances and equipment
Directed all utilities to use integrated resource planning in making power plant investment decisions
Provided loans and training for state and local energy conservation programs
Set goals and requirements to stimulate implementation of conservation measures in federal buildings
Authorized increased spending for energy efficiency research, development, and demonstration 

- Established a program within the U.S. Department of Energy to demonstrate and commercialize new renewable energy and energy efficiency technologies
- Established new standards, rating systems and demonstration programs to promote increased energy efficiency in buildings
- Outlined voluntary guidelines and provided grants to industry for energy efficiency improvements
- Outlined new standards and labeling programs for appliances and equipment
- Directed all utilities to use integrated resource planning in making power plant investment decisions
- Provided loans and training for state and local energy conservation programs
- Set goals and requirements to stimulate implementation of conservation measures in federal buildings
- Authorized increased spending for energy efficiency research, development, and demonstration

**U.S. Energy Efficiency Policy**

## U.S. Industrial Energy Efficiency Policy

- No comprehensive industrial sector energy efficiency policy in the U.S.
- EPAct 1992
- Outlined voluntary guidelines and provided grants to industry for energy efficiency improvements
- Outlined new standards and labeling programs for equipment (e.g. motors)
- May 2001 National Energy Policy plan issued by the National Energy Policy Development Group (led by Vice-President Dick Cheney) – few recommendations for industry; not enacted
- Greenhouse gas emissions policy related to energy efficiency

## U.S. Industrial Energy Efficiency Policy: Climate VISION

- Climate VISION (Voluntary Innovative Sector Initiatives: Opportunities Now)
- Announced February 2003
- Committed to reducing America’s greenhouse gas intensity - the ratio of emissions to economic output - by 18 percent during the next decade
- Challenged American businesses and industries to undertake broader efforts to help meet that goal
- Criticized as “business-as-usual” by non-governmental organizations

## Industrial Sector Goals:
Portland Cement Association (PCA) has committed to reduce CO2 emissions by 10% per ton of cement from a 1990 baseline by 2020. 
American Iron and Steel Institute (AISI) has committed to achieving a 10% increase in sector-wide average energy efficiency by 2012 from 1998 levels. 
Semiconductor Industry Association (SIA) has committed to reduce a suite of the most potent GHG emissions by 10% from 1995 levels by the end of 2010. 
Magnesium Coalition and the International Magnesium Association. Partner companies have committed to eliminate sulfur hexafluoride (SF6) emissions from their magnesium operations by 2010. 

- Portland Cement Association (PCA) has committed to reduce CO2 emissions by 10% per ton of cement from a 1990 baseline by 2020.
- American Iron and Steel Institute (AISI) has committed to achieving a 10% increase in sector-wide average energy efficiency by 2012 from 1998 levels.
- Semiconductor Industry Association (SIA) has committed to reduce a suite of the most potent GHG emissions by 10% from 1995 levels by the end of 2010.
- Magnesium Coalition and the International Magnesium Association. Partner companies have committed to eliminate sulfur hexafluoride (SF6) emissions from their magnesium operations by 2010.

**U.S. Industrial Energy Efficiency Policy: Climate VISION**

## Industrial Sector Goals:
American Chemistry Council (ACC) has agreed to an overall greenhouse gas intensity reduction target of 18% by 2012 from 1990 levels. 
Aluminum Association has committed to reduce sector-wide greenhouse gas emissions
The Alliance of Automobile Manufacturers member companies commit to achieve at least a 10% reduction in GHG emissions from their U.S. automotive manufacturing facilities, based on U.S. vehicle production, by 2012 from a base year of 2002.
American Forest and Paper Association (AF&PA) is committed to actions to to reduce their greenhouse gas intensity by 12% by 2012 relative to 2000. 

- American Chemistry Council (ACC) has agreed to an overall greenhouse gas intensity reduction target of 18% by 2012 from 1990 levels.
- Aluminum Association has committed to reduce sector-wide greenhouse gas emissions
- The Alliance of Automobile Manufacturers member companies commit to achieve at least a 10% reduction in GHG emissions from their U.S. automotive manufacturing facilities, based on U.S. vehicle production, by 2012 from a base year of 2002.
- American Forest and Paper Association (AF&PA) is committed to actions to to reduce their greenhouse gas intensity by 12% by 2012 relative to 2000.

**U.S. Industrial Energy Efficiency Policy: Climate VISION**

## U.S. Department of Energy

- Founded in 1977
- Mission is to advance the national, economic and energy security of the U.S. and to promote scientific and technological innovation in support of that mission
- Office of Energy Efficiency and Renewable Energy (EERE) has an Industrial Technologies Program
- Office of Industrial Technologies
- Industries of the Future Program: agriculture, aluminum, chemicals, forest products, glass, metal casting, mining, petroleum, steel
- BestPractices Program: works with industry to identify plant-wide opportunities for energy savings and process efficiency, focuses on industrial systems such as motors and pumps, compressed air, steam, and process heating

## U.S. Environmental Protection Agency

- Founded 1970
- The mission of the U.S. Environmental Protection Agency is to protect human health and to safeguard the natural environment--air, water, and land--upon which life depends
- Industrial energy efficiency program >> ENERGY STAR for Industry

** **Energy Star includes partnerships between  industries and government
-   Energy Star is a voluntary program with over 500 industrial partners
-   LBNL supports development of the program through development of tools

## High GWP Environmental Stewardship Programs - Works with the major HFC, PFC, and SF6 emitting industries to develop and implement cost-effective emission reduction strategies through partnership programs in the aluminum, magnesium, semiconductor, HCFC-22, and electric power transmission and distribution sectors 
Voluntary Aluminum Industrial Partnership - Participating companies work with EPA to improve aluminum production efficiency while reducing perfluorocarbon (PFC) emissions

- Voluntary Aluminum Industrial Partnership - Participating companies work with EPA to improve aluminum production efficiency while reducing perfluorocarbon (PFC) emissions

**U.S. Environmental Protection Agency**

## The National Environmental Performance Track Program recognizes and encourages top environmental performance among private and public facilities in the United States. Performance Track facilities go beyond compliance with regulatory requirements to achieve environmental excellence
Performance Track provides recognition, regulatory flexibility, and other incentives that promote high levels of environmental performance and provides a learning network where best practices can be shared

- Performance Track provides recognition, regulatory flexibility, and other incentives that promote high levels of environmental performance and provides a learning network where best practices can be shared

**U.S. Environmental Protection Agency**

## National Commission on Energy Policy

- Bipartisan group of leading energy experts who have come together to develop a long-term U.S. energy strategy that promotes national security, economic prosperity, and environmental safety and health
- Non-profit organization funded by the William and Flora Hewlett Foundation, The Pew Charitable Trusts, the John D. and Catherine T. MacArthur Foundation, the David and Lucile Packard Foundation, and The Energy Foundation
- The Commission is conducting original research on key energy issues, rigorously evaluating policy options, and will recommend politically viable and technically feasible solutions
- The Commission will issue several interim reports and, in late 2004 or early 2005, produce a set of long-term strategic energy recommendations that advocates practical steps in the transition to a more secure and sustainable energy future

## Non-Governmental Organizations

- American Council for an Energy-Efficient Economy
- a nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection
- Funding sources include foundations, national laboratories and research institutes, private companies and their associations, individuals, federal, state, and regional agencies, nonprofit organizations, and utilities
- ACEEE Industry Program: Goal: Analyze and promote technologies, process innovations, and policies for increasing the energy efficiency and competitiveness of manufacturing industries.

## Alliance to Save Energy 
Promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment and energy security
More than 70 corporations and business trade associations work together through the Alliance to promote greater investment in cost-effective energy efficiency. 
Funding comes from corporate contributions and grants from foundations and government agencies.
The Alliance's Industrial program works with corporate, state, federal, and international partners to help industry improve their bottom line through energy management and improvement projects. 

- Promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment and energy security
- More than 70 corporations and business trade associations work together through the Alliance to promote greater investment in cost-effective energy efficiency.
- Funding comes from corporate contributions and grants from foundations and government agencies.
- The Alliance's Industrial program works with corporate, state, federal, and international partners to help industry improve their bottom line through energy management and improvement projects.

**Non-Governmental Organizations**

## Energy Efficiency in U.S. States and Local Communities

- States implement their own energy efficiency and greenhouse gas mitigation policies
- Policies and programs that are controversial at the federal level, such as renewable portfolio standards and mandatory reporting of greenhouse gas emissions, have been implemented in a number of states
- A recent survey by the PEW Center on Global Climate Change found 42 greenhouse gas emissions reduction programs in 27 states
- Cities for Climate Protection is a global campaign of the International Council for Local Environmental Initiatives (ICLEI). More than 500 local governments worldwide participate in the Campaign, including over 140 cities and counties in the United States.

## New Jersey: Greenhouse Gas Reduction Target
Covenants signed with public and private sectors to reduce greenhouse gas emissions by 3.5 percent from 1990 levels by 2005 in accordance with the state reduction goal
Indiana: Industrial Energy Efficiency Fund
Project must result in measurable energy savings and contribute to the state's long-term economic development goals
Wisconsin: Reporting and Crediting System for Greenhouse Gases
Since May 1993 Wisconsin has required any facility that emits more than 100,000 tons of CO2 to report its emission levels to the Department of Natural Resources 
In 2000, a registry was created with the intent of allowing Wisconsin firms to report reductions of CO2 or other greenhouse gases and to provide them with protection for early action

- Covenants signed with public and private sectors to reduce greenhouse gas emissions by 3.5 percent from 1990 levels by 2005 in accordance with the state reduction goal
- Indiana: Industrial Energy Efficiency Fund
- Project must result in measurable energy savings and contribute to the state's long-term economic development goals
- Wisconsin: Reporting and Crediting System for Greenhouse Gases
- Since May 1993 Wisconsin has required any facility that emits more than 100,000 tons of CO2 to report its emission levels to the Department of Natural Resources
- In 2000, a registry was created with the intent of allowing Wisconsin firms to report reductions of CO2 or other greenhouse gases and to provide them with protection for early action

**Energy Efficiency in U.S. States**

## California
	The California Energy Commission is the lead agency for climate change issues

- 	The California Energy Commission is the lead agency for climate change issues

**Energy Efficiency in U.S. States**

- The Energy Commission has the only staff devoted entirely to climate change issues, the Climate Change Program (CCP)
- The Energy Commission is statutorily directed to prepare and maintain the state's inventory of GHG emissions
- The CCP has provided guidance on reporting and certification protocols to the California Climate Action Registry, a voluntary registry of GHG emissions
- The Commission administers the Public Interest Energy Research (PIER) Program, which funds research in many energy-related areas.
- The Energy Efficiency Program contributes to greenhouse gas reductions through promotion of energy efficiency in building standards, agriculture, manufacturing, water systems, and processing functions