50001 Ready program. Pete Langlois US Department of Energy

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1 50001 Ready program Pete Langlois US Department of Energy

2 50001 Ready: Energy Management Assistance and Recognition DOE s Ready program resources and recognition to accelerate the use of Energy Management Systems (EnMS) in the United States Help organizations in ISO preparedness Free software tools and DOE recognition for being Ready The next step in EERE s multi-year effort to spur energy management best practices An Enabler that helps organizations lower energy costs, reinvest in research and personnel, progress towards their sustainability goals related to energy, improve their EPA Energy Star scores, achieve their Better Plants and Better Buildings energy goals, Recognition: Individual facilities / buildings will be recognized (if they wish) by the DOE as being Ready after implementing an energy management system using the online Ready Navigator guidance resource Energy.gov/50001ready

3 ISO Energy Management System (EnMS) International standard that draws from best practices around the world. Developed with input from 56 countries, many countries now adopting it as a national standard. ISO specifies guidelines for establishing, implementing, maintaining and improving an EnMS Extending Management principles to Energy Financial Personnel Compliance Inventory Production Quality Environmental Health & Safety Light blue text represents new data-driven sections in ISO that are not in ISO 9001 & ISO 14001

4 Success Story: Nissan Nissan s vehicle assembly plant in Smyrna, Tennessee, was the first U.S. passenger vehicle plant to achieve ISO and U.S. Superior Energy Performance certification. 24% over 6 years $2.4 million

5 ISO in the U.S. Examples of companies already using ISO in America Cummins Google Typical energy savings in an industrial setting (from low- and nocost measures): 5-7% annual improvement is common 30% over 3-4 years is not unheard of 3M Aflac American Axle & Manufacturing BAE Systems BMW Bosch Rexroth Bridgestone Cargill Chrysler Coca-Cola Cummins Curtiss-Wright EMD Detroit Diesel Google HARBEC Hilton Worldwide IBM Intertape Polymer Group Land O Lakes Johnson Controls Marriott International MedImmune NewGold Nissan North America Samsung Schneider Electric Subaru Titan America Volkswagen Volvo Truck

6 Why ISO 50001? What we know There is still large potential for energy savings in the industrial and commercial marketplace Industrials/commercials historically focus on improving EE through products and projects There has been a high focus on low hanging fruit low ROI, cash incentives, simple, easy, piecemeal What we believe The best way for industrials and commercial buildings to achieve the fullest EE potential is to adopt programs & policies that improve energy performance on an ongoing basis The best available instrument to assure transparent and continuing EE improvement is an energy management systems (EnMS) that is auditable and certifiable The best available auditable & certifiable internationally recognized EnMS tool is ISO The money we save on energy can be reinvested back into the plant and ultimately create more jobs for the people here in Detroit. Jeff Allen, Plant Manager, Detroit Diesel

7 DOE Support for ISO U.S. Recognition Options for ISO Program Name Ready Superior Energy Performance (SEP ) U.S. Government Supported Approach Program to self-attest ISO structure Qualified EnMS Program for ISO certification Energy Savings Validation Approach Market Actors & Drivers Ready Measurement & Verification (M&V) Protocol Market Allies recognized by U.S. DOE SEP M&V Protocol Accredited certification bodies recognized by U.S. DOE

8 50001 Ready Overview A voluntary program that recognizes a facility s selfattestation to ISO DOE recognition requires 2 steps: Use Ready Navigator online guide to self-attest implementation of ISO Validate energy calculations (with relevant variables) using DOE s new EnPI Lite online calculator, EPA Portfolio Manager or other approved tools Check it out now at energy.gov/ 50001ready Ready provides guidance for the critical elements of ISO Completed = tasks in + Navigator tool Validated energy savings (Portfolio Manager, EnPI Lite, others)

9 50001 Ready Navigator online guide Step-by-step Turbo Tax approach to tasks divided into 4 sections Extensive guidance available in each module Energy.gov/50001ready

10 50001 Ready Navigator online guide Ability to assign tasks to team members, manage multiple projects across an enterprise Requires energy performance change data from Portfolio Manager, EnPI Lite online calculator or similar tool Energy.gov/50001ready

11 Summary Key Actions in Ready Set an Energy Policy Have management commitment Empower an energy team Identify where energy is used Create plans to improve energy use Management approval of plans Track progress and reassess energy action plans Key Takeaways on Ready Designed to be DIY No cost for resources Light Duty TurboTax structure Can support customers Allows for internal and external experts Consistent practice across facilities Recognition by US Dept. of Energy Energy.gov/50001ready

12 ISO at Detroit Diesel Carlo Caltagirone

13 Detroit Facility Background Project Summary Industry Diesel Engines, Axles, Transmissions & Components Facility location Detroit, MI, USA Operations Machining, Assembly, and Test Employment 2,800 Production Schedule 3 shifts, 7 days per week SEP certification level Platinum 32.5% Energy management system ISO

14 EnMS Scope and Boundary Detroit Diesel is a 3.2M Sq. Ft Facility Boundary includes entire campus (131 acres) Scope includes R&D, Machining, Assembly (engines, axles, automatic transmission for trucks) and Engine Test Axle Machining Turbo Assy. DDC R&D Engine Machining Engine Assy. Axle Assy. MB R&D Transmission Assy

15 Daimler Energy and Environmental Certification Approach All production locations worldwide are certified to ISO A total of 22 locations in Germany including Daimler s major plants already have energy management systems that are certified in accordance with ISO Detroit Diesel is the 1st Daimler facility in the U.S. to implement ISO and achieve SEP certification. ISO was seamlessly blended with the existing ISO Environmental Management System. Daimler Sustainability Report,

16 ISO Implementation Daimler has extensive energy management expertise in their German facilities. Carlo Caltagirone, energy management specialist, was sent to Detroit Diesel to implement ISO To assist with Carlo s assignment, PHI Environmental Consulting was hired as an ISO subject matter expert. Detroit merged ISO with the existing ISO Environmental Management System. Implementation of ISO was similar to ISO and assimilated seamlessly. Identified roles and responsibilities Conducted gap analyses SEU (internal audit) Identified what we do now and what we need to do to meet ISO Daimler exchanged information and best practices from their German facilities to Detroit. Essentially, ISO was an enhancement of ISO rather than a completely new system. 16

17 Challenges Management Engagement Time Requirement Manpower & Expertise Budget Competing interest (energy efficiency vs. non-energy) Communication Changing the Plant Culture 17

18 Cost-Benefit Analysis Project Cost / Benefit Analysis SEP certification level Platinum Energy management system (EnMS) ISO Energy performance improvement 32.5% over 10 years Annual energy cost savings $815,000 Cost to implement $129,000 Payback period* 2 months * SEP marginal payback is based on operational energy cost savings attributable to the SEP program. 18

19 Thank you!

20 Using ISO to drive energy improvements Jim Haried, EHS and energy consultant Zahid Kamal, Energy Manager, GASCO

21 ISO energy management system (EnMS) Benefits Reduce operating costs Reduce greenhouse gas (GHG) emissions Improve global competitiveness Demonstrate commitment to shareholders, customers, neighbors, etc. 4.7 Management review 4.2 Management commitment 4.3 Energy policy The US Department of Energy promotes ISO for: Energy sources, consumption and performance Performance goals for equipment Energy plans, monitoring and corrective actions Design and procurement practices for energy-using equipment, systems and processes Continuous improvement of the energy management function 4.6 Checking 4.5 Implementation and operation 4.4 Planning

22 Energy savings results 30% Energy saving 26% Saving in water consumption 81% Recycling (by weight) of total waste

23 Energy savings results No Energy saving project Savings/year 1 Replaced electric hot water heaters with one central solar hot water system (70% savings) $42,155 2 Installed three solar photovoltaic systems $45,789 3 Automatic control of lights (20% savings) $40,702 4 Evaporative coolers on chillers (20% savings) $128,956 5 Variable flow chilled water system (25% savings) $55,238 6 Heat recovery system on boilers (30% savings) $55,000 7 Fresh air handling unit (AHU) control (40% savings) $11,048 8 VFD control on AHU motors when unoccupied (40% savings) $49,890 9 Temperature control through occupancy sensors (10% savings) $10,571 Total savings $439,349 Capital cost of these improvements $2,196,745 Payout period 5 years

24 Energy savings at gas plant examples 1. Gas turbine replacement with variable frequency drive motors 2. Gas turbine exhaust gas heat recovery/combined cycle/boiler feedwater pre-heat to improve thermal efficiency from 25% 30% to 55% 60% 3. Gas turbine automatic process control retrofit reduce gas consumption by >3% 4. Switchgear replacement network upgrade for 11kV switchgear 5. Variable speed drives on dozens of electric motors 6. Re-lamping production areas and offices 7. NOx and SOx online monitors for gas turbines to optimize turbine performance and reduce GHG emissions

25 ISO logic flow Clause Scope Typical scale Energy baseline All energy using equipment Hundreds of items Energy performance All energy uses that an organization 3-20 KPIs indicators wants to monitor Energy objectives, targets and management action plans Focus on improvement projects that save money, make operational 3-5 items improvements (b) Significant energy use Focus on a few items that need (SEU) - "energy use accounting for improvement; self-defined, subjective, substantial energy consumption may not be significant to others and/or offering considerable potential for energy performance improvement" For each SEU, six more clauses apply 3-5 items

26 Significant energy uses Objectives and targets - consider all SEUs when setting O&Ts Train / pre-qualify all employees and contractors re control of each SEU Operational control - control operations and maintenance activities related to its SEUs... to ensure that they are carried out under specified conditions: a) Set operating and maintenance criteria for each SEU b) Operate and maintain equipment per operational criteria for each SEU c) Communicate the operational controls to operators and contractors

27 Significant energy uses Design - consider energy performance improvement opportunities and operational control in the design of new, modified and renovated facilities, equipment, systems and processes related to each SEU Procurement (a) inform suppliers related to SEUs that procurement is partly evaluated on the basis of energy performance (b) set criteria for assessing energy use, consumption and efficiency over the expected operating lifetime when procuring energy and for items related to SEUs (c) set energy purchasing specifications for effective energy use Monitoring - monitor, measure and analyze the key characteristics including (a) SEUs (b) the relevant variables related to SEUs (c) EnPIs (d) the effectiveness of the action plans in achieving objectives and targets (e) evaluation of actual versus expected energy consumption

28 Questions and answers Jim Haried