ACEEE Industrial Energy Efficiency Blog

Industrial Energy Efficiency Blog Moves to NEW ACEEE WEBSITE

2010-08-12T12:52:00.000-07:00

On Monday, ACEEE launched a brand new Web site in honor of our 30th anniversary.

Our new Web site is a portal to ACEEE’s wealth of research, analysis, and community building over the last 30 years and a bridge to our future work. We salute you, our friends, supporters, and colleagues, and invite you to share in our celebration of three decades of collaborative progress in achieving greater economic productivity, energy security, and environmental protection.

All future blog posts from this blog and other ACEEE blogs will be housed on the main "Blog" page on the new site, http://aceee.org/blog. We hope you continue to check in frequently on our blog as well as all of ACEEE's activities in the realm of Industrial Energy Efficiency.

An Export Strategy for the Clean Tech Sector

2010-07-29T14:38:00.000-07:00

As part of the larger Make It In America initiative, yesterday the U.S. House of Representatives passed H.R. 5156, the Clean Energy Technology Manufacturing and Export Assistance Act of 2010. According to its main sponsor, California Congresswoman Doris Matsui, the Act will encourage investment in American-made high-tech products and launch an export strategy to bring those products to foreign markets.

H.R. 5156 authorizes annual appropriations up to $15 million for the Clean Energy Technology Manufacturing and Export Assistance Fund, which will be administered through the Department of Commerce's International Trade Administration.

In a related development, the International Trade Administration's Office of Energy and Environmental Industries is currently seeking comments on its proposed National Renewable Energy and Energy Efficiency Export Strategy [pdf]. More information about the proposed strategy and information about sharing comments with the International Trade Administration can be found here. Note that the official deadline for comments has passed, but it appears the comment period is actually still open at this point.

International Freight Cost Increase Further Encouraging Domestic Production

2010-07-28T09:16:00.000-07:00

A story in Monday's New York Times reports that the cost of marine freight are again increasing as the global economy recovers. This trend is a recovery of a trend that ACEEE noted in the last half of the past decade. Part of this trend is competition for capacity, but much results from infrastructure constraints at US ports that increase the cost and delay imports into the U.S. As we saw in the last decade, when freight becomes a constraint, manufacturers are motivated to move production to the U.S. for both finished goods, but also for components that are key elements of the supply chain.

So in spite of indications of some softening in manufacturing data suggest continuing indications that the manufacturing sector is poised for reinvestment.

NY Times story highlights manufacturing workforce issues

2010-07-02T05:36:00.000-07:00

A story in today's New York Times highlighted a fact that ACEEE has been hearing for several years, which is there is a shortage of skilled manufacturing workers (as I discussed last year in my Senate Energy testimony). The Times story uses examples from Ohio that echo the same comments we heard two years ago when we did our stakeholder engagement for our Ohio study.

I heard the same comments last week when I participated in a stakeholder meeting for NYSERDA's Industrial program. Among the revealing comments was that the challenge is not just finding engineers, but also skilled trades like welders, machine operators, and mechanics. The joint DOE/EPA National Action Plan for Energy Efficiency has identified this as an important issue, commissioning a report on the topic which unfortunately did not delve deeply into the industrial sector needs.

This topic is one of ACEEE's four key elements of a national industrial policy to revitalize manufacturing:

Access to new technologies (e.g., R&D)
Access to industry-specific technical expertise and technical assistance
Access to capital to make capacity modernizing investments
Access to a trained workforce

Neal Elliott, Associate Director for Research

Three Studies All Find that Long-Term Greenhouse Gas Emissions Limits Can be Met without Harming the U.S. Economy

2010-06-17T10:02:00.000-07:00

by Steve Nadel, ACEEE Executive Director

On Tuesday June 15, 2010, three studies were released on the impacts of the American Power Act (APA) as developed by Senators Kerry and Lieberman. The three studies also integrated in all or many aspects of the American Clean Energy Leadership Act (ACELA) as developed by the Senate Energy Committee. All three studies found that impacts of this bill on the U.S. economy would be minimal. The three studies were prepared by the Environmental Protection Agency (EPA), American Council for an Energy-Efficient Economy (ACEEE), and the ClimateWorks Foundation.

On the big picture question of changes in gross domestic product (GDP), the ACEEE study found that APA+ACELA, because of the emphasis on large-scale productive investments in energy efficiency, would increase GDP by a minute amount, ranging from 0-0.13%, depending on the year. Climate Works found that under APA, including some aspects of ACELA, GDP would average $9 billion more over the 2012-2030 period, a very small increase in a multi-trillion dollar economy. EPA, with only a very limited integration of energy efficiency investments in their analysis, found an average $9 billion loss over that same period.

On employment, ACEEE found a gain of about 166,000 jobs in 2030 from APA+ACELA. These job gains increase to 364,000 if energy efficiency provisions are enhanced. Climate Works found gains of 540,000 jobs over the 2012-2030 period from APA, including some aspects of ACELA. EPA did not look at employment.

The one metric all three studies included was household costs and savings. The ACEEE analysis found slight household costs in 2020 ($24 per household) but savings in 2030 (e.g. $256 per household) and beyond as cost-effective energy efficiency measures reduced residential energy bills. The enhanced efficiency scenario had much larger household savings (e.g. $448 per household in 2030). EPA found that household costs would go up slightly under APA, plus some aspects of ACELA, with the next present value cost increase averaging $79-146 per year – a small amount considering that average household income was $52,029 in 2008, according to the Census Bureau (2009 figures not yet available). The Climate Works analysis was in between, finding average household savings of about $70 in 2020 and 2030. The EPA analysis only included some of the energy efficiency savings in the bills, which is likely a major reason why they found small household cost increases instead of savings. More time is needed to figure out why the results varied as much as they do between the three studies, but relative to household income, the differences are small.

The three studies are available here:

Enhancing Energy Efficiency Provisions in Energy Bills Will Create Jobs, Save Money, & Reduce Fossil Fuel Dependence

2010-06-15T10:15:00.000-07:00

This morning ACEEE released a report analyzing the American Power Act (APA), introduced by Sens. Kerry and Lieberman. The bill (combined with the American Clean Energy Leadership Act or "ACELA") offers more industrial energy efficiency provisions than did the American Clean Energy Security Act (ACES) [PDF] passed a year ago by the House; however, APA lacks a funding mechanism to enable the investments that are needed to modernize our manufacturing base to reduce its carbon footprint and allow it to again become the global leader in manufacturing.

ACEEE's report also considers enhancements to APA. These provisions dramatically increase the energy and cost savings from the bill, while producing significant new jobs. In particular our analysis of the enhanced provisions looked at using some of the allocations to the industrial sector to establish a revolving loan fund for manufacturing similar to the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act introduced by Sen. Sherrod Brown (D-OH). This provision, combined with other manufacturing provisions in our enhanced bill, could enable a re-invigoration of U.S. manufacturing, while realizing the low-cost energy and carbon savings available in the sector and enabling the production of new clean technology products to enable energy savings in other sectors of the economy.

Manufacturing Recovery Continues in May

2010-06-01T11:58:00.000-07:00

The Institute of Supply Management reported today that activity in 16 of 18 industry sectors increased last month, for the 10th consecutive month of manufacturing growth. The only industry groups that contracted were petroleum and coal.

Order backlogs increased for the 5th month, with both supplier and customer inventories continuing to contract, suggesting that we should see continued growth in manufacturing output. In particular, customer inventories are reported by the survey as "too low."

In addition, this month's report saw an increase in hiring in manufacturing with employment increasing 1.3%, indicating a renewed confidence among manufacturers that the recovery is likely to be sustained.

For industrial energy efficiency programs, this suggests that customers are likely to begin planning capacity investment (if they are not already making these investments), so the time is ripe to reach out to manufacturing plants to ensure that these investments are made to maximize energy efficiency. ACEEE hears from its industry colleagues that access to capital remains a challenge, so programs that can either directly help with financing or facilitate other financing resources such as economic development bonds will be well received.

Ongoing Analysis of Industrial Provisions in APA (Kerry-Lieberman)

2010-05-27T08:31:00.000-07:00

Since the release of the draft of the American Power Act (APA or Kerry-Lieberman), ACEEE has been looking at the industrial provisions in the bill. A lot of uncertainties exist about what the final legislation will look like, such as the understanding that the bill will include the ACELA energy bill (see ACEEE's assessment and summary of the energy efficiency provisions). Based on our review of the bill's industrial provisions, a couple of important manufacturing elements emerge:

1) the carbon caps for direct emissions do not go into effect until 2016, allowing the industry a three year transition period from when caps go into effect on the electric sector.

2) during this 3-year period, 0.5% of total allowances go to fund Sec. 451-453 of EISA (see ACEEE's analysis of EISA), which: provide grants and loans for CHP and waste energy recovery; industry specific research and technical assistance including the IACs; and energy efficiency in data centers. The ACELA provisions expand and refine these provisions, so there could be some important interactions.

3) Energy-Intensive, Trade-Exposed Industries receive 15% of allowances from 2016-2025, ramping down beginning in 2026.

4) the industrial portion of the electric local distribution allocation is explicitly directed to go to that sector.

ACEEE thinks these are important new provisions, and represent perhaps the one bright spot in an otherwise disappointing bill.

ACEEE will have a detailed analysis of all the energy efficiency provisions in APA in a few weeks.

Compressed Air Savings at IETC

2010-05-20T09:52:00.000-07:00

This morning a chaired an excellent session on compressed air system efficiency at the IETC conference in New Orleans. In spite of working on compressed air systems for over 30 years, I am impressed that the savings remain to be had, and there are so many new opportunities.

Jim McAuley gave a great presentation on how to optimize systems to achieve maximum efficiency.

Alexander Pavlov with AtlasCopco presented their integrated approach to system efficiency. He also talked about their new Carbon Zero compressor that can recover 100% of the energy value of electricity input in the form of heat for use in hot water production or boiler make-up preheat.

Finally, Darren Woodruff with Petro Chemical Energy reminded attendees that leak detection and repair is a never ending opportunity.

Neal Elliott

Federal Data Shows Sustained Recovery in Manufacturing

2010-05-14T09:55:00.000-07:00

Three federal data reports released today provide further evidence of a sustained recovery in the manufacturing sector. In addition to factory output increasing by 1% for the second month in a row, consumer spending increased for the 7th month at a 0.4% rate-twice the previous month's rate. The Commerce Department indicated that inventories increased by 0.4% as well, suggesting that demand for manufactured goods has become sustained.

"The manufacturing recovery is getting more diffuse, with 17 of 19 major sectors increasing production," said David Huether, chief economist at the National Association of Manufacturers in an AP story. "It looks more durable and deeper."

For industrial energy efficiency programs, this new data suggests it is time to be reaching out to their manufacturing customers to see assess their plans for capital expansions. Getting in on the investment cycle is the least-cost opportunity for manufacturing energy efficiency.

Support for the IMPACT Act

2010-05-10T08:15:00.000-07:00

Last summer Senator Sherrod Brown of Ohio introduced the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act, which would:

Establish a 2-year, $30-billion Manufacturing Revolving Loan Fund. States would receive grants to establish revolving loan funds to assist small- and medium-sized firms in retooling, expanding or establishing domestic clean energy manufacturing operations, and in becoming more energy efficient.
Expand and focus Manufacturing Extension Partnerships on Clean Energy Manufacturing. The Hollings Manufacturing Extension Partnership (MEP), a division of the Department of Commerce’s National Institute of Standards and Technology, would receive $1.5 billion in federal funds over five years to help manufacturers access clean energy markets and adopt innovative, energy-efficient manufacturing technologies.

You can go here; http://org2.democracyinaction.org/o/6420/p/dia/action/public/?action_KEY=2180 to endorse IMPACT quickly or to learn more about it.

This legislation, backed by a broad coalition of business, labor and environmental leaders, invests in America's capacity to domestically produce the equipment of the clean energy future — solar panels, wind turbines, energy efficiency systems, and the countless components that go into them. The Apollo Alliance estimates that this bill would create 2.7 million jobs.

Please join the National Association of Manufacturers, Alliance for American Manufacturing, the Solar Energy Industries Association, the Precision Metalforming Association and over 230 U.S. businesses in supporting Senator Brown's IMPACT Act.

You can go here; http://org2.democracyinaction.org/o/6420/p/dia/action/public/?action_KEY=2180 to endorse IMPACT quickly or to learn more about it.

If you have any questions about the above site or this initiative, please direct them to Ron Ruggiero of the Apollo Alliance:

Ron Ruggiero
Field Director
Apollo Alliance
cell: 503-358-1816
ruggiero@apolloalliance.org

Business Attitudes Toward Energy Efficiency are Changing

2010-04-29T07:30:00.000-07:00

Business investment is rebounding rapidly, reversing directing from the drastic cutbacks and plant closings that began almost two years ago. However, according to Dow Jones Newswires Column, there is a key change to the way many businesses are looking at investments and profits: they are looking to make recent investments in energy efficiency sustainable, as a means of increasing profits in the long run.

According to the article,

A survey done by Siemens shows the shift in attitudes. In 2006, 43% of respondents looked at sustainability as an expense related to regulatory issues, and only 31% viewed it in terms of adding to financial performance. By 2009, 25% of companies looked on sustainability as regulatory-related and a sizable 58% connected it to their bottom line.

This shift in attitude is a logical trend in industrial and business decision-making, and one that ACEEE has argued for for 30 years. Only recently, though, have businesses been getting the message that energy efficiency is a cost-saving investment, and a boon to the bottom line.

A new viewpoint toward energy efficiency by some of the larger corporations can dramatically shift supply chains toward more efficient and sustainable practices, transforming the market toward a more energy productive and less wasteful business culture. Investments in energy efficiency also create jobs, bolstering our national economy and putting Americans back to work.

ACEEE will continue to point to energy efficiency as the cleanest, lowest-cost, most sensible way of promoting economic prosperity, energy security, and environmental protection.

New Peak Oil Analysis

2010-04-19T09:24:00.000-07:00

Seeking Alpha has posted a very troubling blog entry this morning on the topic of Peak Oil. The post reviews international analyses and expert presentations that suggests that we may be closer to a Hubbert-like peak event than the U.S. press are reporting. The article suggests that many in the international community are already beginning to plan for a high and volatile oil price future. However, the author Chris Nelder of Energy & Capital has found very limited coverage of this topic in U.S. press, in marked contrast to coverage in other countries. These international analyses suggest that this reality may come sooner rather than later. If this concern proves correct, the U.S. could be in for a rough ride.

Senators from Manufacturing States Outline Needs for Climate Bill

2010-04-16T06:08:00.001-07:00

A letter calling for strong measures to protect manufacturers as a condition for support of the Kerry, Graham, Lieberman climate bill came from ten industrial state senators:

Sherrod Brown
Debbie Stabenow
Carl Levin
Robert P. Casey Jr.
Arlen Specter
Mark Warner
Claire McCaskill
Evan Bayh
Kay Hagan
Robert Byrd

The list falls into three board catagories:

Invest in American Manufacturing Competiveness
Level the Playing Field and Prevent Carbon Leakage
Ensure A Long-Term Future for American Manufacturing

See reporting on this from Kate Sheppard.

Save the Date! 2011 ACEEE Summer Study on Energy Efficiency in Industry 7/26-7/29, 2011

2010-04-07T12:30:00.000-07:00

SAVE THE DATE!
2011 ACEEE Summer Study on Energy Efficiency in Industry!
Tuesday, July 26 - Friday, July 29, 2011
The Conference Center Niagara Falls, Niagara Falls, New York

Mark your calendars to attend the 10th biennial Summer Study on Energy Efficiency in Industry scheduled for July 26- 29, 2011 at the Conference Center Niagara Falls in Niagara Falls, NY.

Participants from around the world will gather for three days to discuss technical, policy, financing, and program issues related to increasing energy efficiency in industry. Also, we are delighted to welcome back Larry Kavanagh, American Iron and Steel Institute and Raymond Monroe, Steel Founders' Society of America as Co-Chairs of the Summer Study. Their knowledge and expertise in this field will help design an event you don't want to miss!

Look for more information coming this summer about participating in the conference either by submitting an abstract for presentation or simply registering to attend. Information about the conference and Call for Abstracts will be posted soon and periodically updated at the Summer Study Web site. For more information please visit www.aceee.org.

Shop Floor to Top Floor

2010-04-07T05:49:00.000-07:00

Yesterday the Pew Center on Global Climate Change released its new report From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency at its conference in Chicago. ACEEE's Neal Elliott was an advisory for the report, which was prepared by ACEEE's former Deputy Director Bill Prindle. The report provides important insights into how corporations internalized energy efficiency into their operations through extensive surveys of leading companies and key case studies of six global leaders. In particular, the report identifies the 7 habits of highly efficient companies.

The conference has had representatives of many of the companies profiled in the report sharing their experiences, and providing insights into how they have made energy efficiency part of their businesses. (Presentations from the conference should be up on the Pew web site in a week or so.) Among the key insights are that setting ambitious corporate target EE targets are a great way to produce substantial results. As Rob Schasel with Pepsico said, "Make up a number. It saves time and inspires the staff." Jay Dietrich with IBM pointed out that there are always opportunities that the company is not aware of that they will find once they start looking for them. Several of the speakers commented that staff know about lots of energy efficiency opportunities, and that companies need to empower them to go out and realize the savings. Several speakers, including international energy management expert Peter Garforth pointed out that energy efficiency is about money, and that efficient companies are profitable companies that are likely to succeed in the new global marketplace.

The vast majority of the companies accept that global carbon regulations are coming, and that as Garforth, Elliott and Southern California Edison's Gene Rodrigues all pointed out what U.S. companies need is regulatory certainty so they can move forward with investments.

The new report is a must-read for those interested in understanding energy efficiency in manufacturing, and the role of energy efficiency in climate policy.

More signs of recovery in manufacturing

2010-04-02T07:01:00.000-07:00

Today the Labor Department reported that manufacturers added 17,000 jobs last month, the third straight month of gains. This confirms yesterday's Institute for Supply Management Report that indicated that manufacturers are starting to fill vacancies.

The ISM report also indicated that they saw manufacturing growth in March for the 8th consecutive month--the fastest growth since July 2004. Inventories began to recover as we saw 46 months of liquidation reverse as mid-channel began to rebuild their stocks, suggesting that the wholesale demand is beginning to recover. This trend will further encourage manufacturers to invest in new capacity.

We are already seeing shortages beginning to appear in basic electronic components, with lead times and prices increasing as a result. The ISM survey also reports continued increases in export orders, particularly for machinery to China suggesting a global recovery of investments.

For Industrial Energy Efficiency programs this suggest the time is ripe to engage customers as they begin to plan capacity investments as a sustain market demand begins to manifest itself.

Energy Efficiency Fastest Growing CleanTech Investment

2010-04-01T05:53:00.000-07:00

Clean Tech Investing indicate that The Cleantech Group and Deloitte report $1.9B in global cleantech venture dollars, across 180 disclosed deals for 2009. Energy efficiency accounted for 120 of the tracked deals, up from 87 tracked deals in 2008. In Q1 2010, they report 39 energy efficiency deals for an annualized rate of 156 deals.

Manufacturing Continues to Recover, If Somewhat slower

2010-03-31T09:57:00.000-07:00

While reports indicate that factor orders increased for the 10th month out of the past 11, inventories grew at a slower rate than anticipated indicating continued caution on the part of companies. The bright spots are in investments in manufacturing equipment that suggest a growing recovery in manufacturing capacity. Also manufacturing hiring continued to decline, reinforcing trend toward labor productivity. A key indicator to watch for is when firms begin to hire which will signal a shift to corporate optimism.

Carbo2n Nation Film Review

2010-03-29T08:22:00.000-07:00

I was privileged to attend the world premier of a new energy and climate documentary, Carbo2n Nation last night at the DC Environmental Film Festival. For disclosure purposes, I was an early technical adviser to the film, though I have not been involved with the production or editing of the film and this is the first time I have seen the film.

As the film’s director Peter Byck said last night, this film was inspired by Vice President Al Gore’s documentary An Inconvenient Truth. Peter indicated that while Gore’s film made a compelling case for why climate change is real, it did little to provide guidance on what the United States could do to address the problem. Carbo2n Nation alternates between presentations of the manifestations of climate change and compelling profiles of individuals that are making a real difference in reducing GHG emissions. Among the opportunities for reduction profiled were energy efficiency, including interviews with ACEEE’s founder Art Rosenfeld, energy efficiency visionary Amory Lovins and industrial energy efficiency entrepreneur Sean Casten. Among the most memorable scenes are those with Rocky Mountain Institute staff working on the greening of the Empire State Building and the profile of Van Jones and his efforts on green jobs, which included a very touching joint interview with his late father.

I, like many of those in attendance at the screening were left with a sense of optimism that there is something that we can do about climate change, and that the entrepreneurial spirit of the United States can us concerns about climate change as an opportunity to innovate and prosper in the future. I would recommend this film to all interested in energy efficiency and concerned about climate change, and look forward to further projects on this topic by Peter Byck and his Earth School Educational Foundation Inc.

DOE releases FY2011 Budget Request

2010-02-01T14:57:00.000-08:00

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.

New jobs bill language pays homage to industrial EE

2010-01-28T08:12:00.000-08:00

Today, legislative language was released for a Senate jobs bill that will likely be introduced in the coming weeks. ACEEE is pleased that $11.5 billion for energy efficiency has been included as a key component of the bill. Of that money, $4 billion would be allocated for industrial energy efficiency and productivity.

The bulk of the money ($3.5 billion) would go to the Office of Energy Efficiency and Renewable Energy in DOE as a continuation of the industrial energy efficiency grants awarded through ARRA, which proved to attract far more solicitations than the amount of available funding could support. Of that money, $250 million would be allotted specifically to small and medium-sized manufacturers, a critical segment of the industrial sector that is too often overlooked, and $500 million would be set aside for projects using "smart manufacturing" technologies, such as sensors, controls, and information networks.

Also included in the industrial energy efficiency provisions of the potential bill are

$440 million for the Defense Production Act to provide grants and loans to support U.S. manufacturing capabilities for critical technology items and materials manufacturers who are critical to our national industrial base
$50 million for the Manufacturing Extension Partnerships to waive cost-match requirements for funding manufacturing improvement projects.

We are thrilled that champions in the Senate have come to acknowledge the vast potential for energy savings through investments in industrial energy efficiency, the likes of which will retain and create jobs, enhance the competitiveness of American manufacturing, and ensure the sustainability of U.S. industries for the long term.

ACEEE signs coalition letter in support of manufacturing EE jobs

2010-01-27T10:35:00.000-08:00

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

2010-01-07T08:26:00.000-08:00

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

2010-01-04T08:13:00.000-08:00

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

2010-01-04T08:04:00.000-08:00

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

2009-12-18T09:56:00.000-08:00

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

2009-12-11T08:58:00.000-08:00

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

2009-12-09T08:02:00.000-08:00

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

2009-12-04T08:35:00.000-08:00

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

2009-12-03T12:54:00.000-08:00

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

2009-12-01T10:34:00.000-08:00

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

2009-11-05T08:46:00.000-08:00

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

2009-11-03T10:27:00.000-08:00

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

2009-10-29T07:56:00.000-07:00

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

2009-10-27T07:25:00.000-07:00

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

2009-10-26T11:06:00.000-07:00

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

2009-10-08T10:52:00.000-07:00

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

2009-09-18T07:22:00.000-07:00

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

2009-09-17T13:15:00.000-07:00

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

2009-09-10T08:28:00.000-07:00

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

2009-09-01T14:11:00.000-07:00

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

2009-08-26T11:08:00.000-07:00

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!

2009-08-18T13:02:00.000-07:00

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

2009-08-18T12:47:00.000-07:00

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

2009-08-14T07:57:00.000-07:00

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.

New Federal Legislation Introduced

2009-08-11T13:24:00.000-07:00

Yesterday, new bipartisan legistlation was introduced by Senators Jeff Bingaman (D-NM) and Olympia Snowe (R-ME). In addition to The Efficient Vehicle Leadership Act of 2009, they have introduced three other bills to expand and improve energy efficiency tax incentives. These tax-related bills have been referred to the Senate Finance Committee. From Senator Bingaman's office:

The Expanding Building Efficiency Incentives Act of 2009 (S. 1637) encourages energy efficient technology and construction throughout the nation by extending tax incentives for the construction of energy efficient new homes, energy efficient manufactured homes, energy efficient commercial buildings and major incentives for the residential energy efficiency industry. The legislation also adds a higher-tier credit for homes that satisfy the Builders Challenge standard and includes new incentives for homes in high-rise buildings, a 50 percent credit bonus for units in low-income developments and incentives for home energy ratings and auditor training.

The Expanding Industrial Energy Efficiency Incentives Act of 2009 (S. 1639) would create the first direct tax incentive ever for industrial energy efficiency. As such, the Act would help our industrial sector adopt advanced energy technologies and processes, enabling American industry to reduce fuel dependency, cut costs, reduce greenhouse gas emissions, add jobs and enhance global competitiveness. The Act creates incentives in the three critical areas: water reuse, advanced motors, and CFC chillers. It also enhances incentives for combined heat and power systems. Energy efficiency organizations estimate that these incentives together will save the equivalent of four months worth of total U.S. energy consumption.

The Cleaner, Secure, Affordable Thermal Energy Act(S. 1643) would create significant tax incentives for consumers, businesses and tax-exempt entities that now rely on heating oil to convert to more efficient natural gas or biomass (wood pellet stoves) heating systems.

For more details on these bills, see the related press releases from Sens. Bingaman and Snowe.

In addition, last week Sens. Bernie Sanders (I-VT) and Jeff Merkeley (D-OR) introduced The Thermal Energy Efficiency Act of 2009 (S. 1621). There is a good writeup about the bill in Grist. For details, see the press release from Sen. Sanders's office.

Upcoming Events

2009-08-03T11:27:00.000-07:00

There are two upcoming events that may be of interest:

September 1, 2009
Energy Efficiency Opportunities in India - Webinar
Cost: $35 per participant
Learn more/register here.

In this webinar, you will learn about new business opportunities in India's burgeoning $30 billion energy efficiency market. U.S manufacturers of energy efficient products and energy service companies have tremendous potential in India, particularly in the areas of industrial energy efficiency and green building. The Government of India plans to save 10,000 MW of energy by 2012 alone and is poised to set energy usage standards for energy-intensive industries, which will further accelerate the growth of this market. Now is the time to enter the market to ensure that you tap into the energy efficiency boom in India! This webinar will inform you where the opportunities are and how to take advantage of them. Additionally, India's leading energy experts will provide tips and guidance on how you can begin or advance your business in India's energy efficiency sector. For more information, please contact Nyamusi Igambi at Nyamusi.Igambi@mail.doc.gov or Linda Abbruzzese at Linda.Abbruzzese@mail.doc.gov.
September 21, 2009
U.S. Department of Commerce
Energy Efficiency in Manufacturing Forum
Location: Toledo, Ohio
URL: http://www.commerce.gov/
Contact: Ryan Mulholland (Ryan.Mulholland@mail.doc.gov)

Join federal and state officials and private sector executives on September 21 at the Energy Efficiency in Manufacturing Forum in Toledo, Ohio.

Representatives will discuss resources for improving energy use and increasing efficiency in manufacturing facilities, the stimulus funding available for energy efficiency improvement projects, and best practices instituted at regional facilities.

The forum will take place in Toledo at the world headquarters of Owens Corning, an EPA Energy Star Partner. In addition to morning forums on energy efficiency resources available to U.S. companies, there will be an afternoon site visit to a local manufacturing facility demonstrating energy efficiency improvements in action.There is no cost to U.S. companies to attend this event.

Department of Treasury Grant Guidance

2009-07-24T13:11:00.000-07:00

From the EPA CHP Partnership:

...The U.S. Department of Treasury has issued guidance for grants in lieu of tax credits for energy production facilities contained in the American Recovery and Reinvestment Act (ARRA) of 2009.

The Department of Treasury is not yet accepting applications. This information has been released to allow companies to prepare in advance for submitting a grant application. Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction.

Section 1603 of ARRA allows eligible entities that place in service specified energy production facilities to apply for grants from the U.S. Department of the Treasury in lieu of claiming applicable investment and production tax credits. For eligible CHP projects, the Department of Treasury will make payments to qualified applicants in an amount equal to 10 percent of the system cost. There are also specific provisions for microturbine and fuel cell projects. Eligible microturbine projects can receive 10 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $200 for each kilowatt of capacity. Eligible fuel cell projects can receive 30 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $1,500 for each 0.5 kilowatt of capacity.

Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction. A completed application will include the signed and complete application form; supporting documentation; signed Terms and Conditions; and complete payment information. All applications must be received before the statutory deadline of October 1, 2011. For a facility placed in service in 2009 or 2010, applications must be submitted after the facility has been placed in service and before October 1, 2011. Treasury will review the applications and make payment to qualified applicants within 60 days from the date the completed application is received by Treasury. For a facility not placed in service in 2009 or 2010 but for which construction began in 2009 or 2010, applications must be submitted after construction commences but before October 1, 2011. If the facility has been placed in service at the time of the application, Treasury will make payments to qualified applicants within 60 days from the date the completed application is received. For the facility not yet placed in service at the time of the application, Treasury will review such applications and notify the applicant if all eligibility requirements that can be determined prior to the facility being placed in service have been met.

For more information including the guidance document, terms and conditions, and a sample application, please visit the U.S. Department of Treasury’s Web site at: http://www.treas.gov/recovery/1603.shtml.

Questions about the program and the application process at: 1603Questions@do.treas.gov.

Another green shoot

2009-07-23T07:57:00.000-07:00

3M reports better than expected earnings for the quarter. Marketplace Radio also suggests that the manufacturing sector is likely to come back quickly. We need to be watchful.

ACEEE Industrial Summer Study Conference, July 28-31

2009-07-06T10:53:00.000-07:00

ACEEE's biannual Industrial Summer Study conference is fast approaching. This year, the conference will take place at the Conference Center Niagara Falls in Niagara Falls, New York. Time is running out to register for the conference, so please do so as soon as possible. Registration information and other details of the conference can be found at http://www.aceee.org/conf/09ss/09ssindex.htm.

Panel topics include:

Investing in Energy-Saving Technologies
Selling Energy Efficiency in Your Organization
Energy Efficiency: Using Other People’s Money
Regulatory Aspects and Incentives to Energy-Efficient Investments
Energy Efficiency: Investing in Time of Uncertainty
Energy Efficiency as a Co-Benefit
Tech Expo

Details of each panel are available here [MS Excel file]. Register now to secure a spot at Summer Study!

More Green Sprouts for Manufacturing

2009-06-24T06:49:00.000-07:00

While the manufacturing sector remains depressed, promising signs continue to emerge that we may be seeing the beginning of a turn around. The most recent sign is that the Commerce Department's report of May durable good orders shows promise in some areas. Orders rose 1.8 percent in May -- the second month in a row suggesting a positive trend.

According to the Associated Press, "Orders for non-defense capital goods, a key proxy for business investment plans, jumped 4.8 percent, the biggest increase since September 2004. That could signal that businesses have stopped trimming their investment spending."

The AP also reports that orders for machinery rose 7.7 percent, while demand for computers and related products surged 9.4 percent last month. Vehicle orders were down, in large part because of the continuing problems in the auto industry.

While this does not mean that the recovery is upon us, it does suggest some glimmers of hope.

Motor Crusher Credit part of House & Senate Bills

2009-06-23T14:37:00.000-07:00

The "Motor Crusher Credit" (actually entitled the Motor Efficiency Rebate Program) passed out of the Senate Energy Committee last Wednesday as Sec. 228 of the comprehensive energy bill the American Clean Energy Leadership Act. See ACEEE's press release on the bill for details and a link of our assessment of the energy efficiency impacts of the bill.

The motor rebate provision (as Sec. 245) is also part of the House Climate Bill (H.R. 2454), the American Clean Energy and Security Act, which appears headed to a floor vote in the House this week. The provision's inclusion in both bills makes it likely that the authorizing language will be included in any bill that emerges from a conference between the two houses, whether it is a climate bill or just an energy bill. We are guessing that the bill, if passed, will not pass until the fall.

The provision would then go to DOE for the development of a program plan covering how it would actually be implemented.

It is important to remember that this is just authorizing language, and that were it enacted we would still need to have money appropriated to fund the program. We hope that this would be part of the FY2011 appropriation request from U.S. DOE. As a result it appears unlikely that this program would actually be funded until the 2010 program year at the earliest.

Senate energy bill passes through committee

2009-06-23T13:17:00.000-07:00

On June 17, the Senate Energy and Natural Resources Committee passed the American Clean Energy Leadership Act, which includes the manufacturing energy efficiency provisions from S. 661, the Restoring America's Manufacturing Leadership through Energy Efficiency Act of 2009, as well as several other major energy bills. According to the Committee's website, the bill will:

Accelerate the introduction of new clean energy technologies in the United States, creating new jobs and helping businesses grow through clean energy project financing, a renewable electricity standard and a robust and secure national electricity transmission highway;
Increase energy efficiency in buildings, major equipment and appliances, saving consumers and businesses billions of dollars on their energy bills;
Enhance America’s energy independence by increasing clean energy supplies and energy security, including new access to over 20 trillion cubic feet of clean natural gas resources;
Strengthen America as the world leader in energy innovation, by doubling our national investment in energy research and technology;
Build a new energy workforce for the future;
Protect consumers by making energy markets more transparent and fair, and by providing new tools to fight market manipulation; and
Tackle future energy and climate challenges with smarter, more integrated planning.

See ACEEE's preliminary analysis of the bill here. The full text of the legislation can be read here.

Industry Receives $256 Million in Stimulus Funding

2009-06-08T06:39:00.000-07:00

From the Office of Energy Efficiency and Renewable Energy (EERE) bulletin:

On June 1, 2009, DOE Secretary Steven Chu announced plans to provide $256 million from the American Recovery and Reinvestment Act (Recovery Act) to support energy efficiency improvements in major industrial sectors across the American economy.

The funding is targeted at reducing the energy consumption of America's manufacturing and information technology industries, while creating jobs and stimulating economic growth. These programs will help create manufacturing jobs quickly, along with jobs for technicians and experts who will be needed in the long-term to maintain and operate the new equipment.
Combined Heat and Power (CHP), District Energy Systems, Waste Energy Recovery Systems, and Efficient Industrial Equipment ($156 Million)—This funding is targeted toward projects that represent proven and effective near-term energy options that can be deployed in industrial and residential settings to improve efficiency, control costs, and limit greenhouse gas emissions—making U.S. industry more productive and competitive. Learn more about ITP’s Industrial Distributed Energy research and development projects, including CHP.
Improved Energy Efficiency for Information and Communication Technology ($50 Million)—This project will select and fund applicants to conduct research, development, and demonstration (RD&D) projects to promote new technologies that improve energy efficiency in the growing information and communication technology (ICT) sector. Read the ICT vision and roadmap, Routing Telecom and Data Centers Toward Efficient Energy Use (PDF 2.3 MB). And learn more about ITP’s data center efficiency activities.
Advanced Materials in Support of Advanced Clean Energy Technologies and Energy-Intensive Processes ($50 Million)—DOE will support RD&D projects for advanced industrial materials that can be used in fuel flexibility programs, CHP technologies, energy intensive processes, and nanomaterials and nanomanufacturing. These projects will help the American industrial sector increase competitiveness, while rapidly introducing advanced technologies. Learn more about ITP’s crosscutting technologies RD&D efforts.

More Indications that Manufacturing is Poised for Recovery

2009-06-01T07:29:00.000-07:00

The Institute for Supply Management's May 2009 Manufacturing Report on Business reports that their index increased to 42.8 — its highest level since September — compared with 40.1 in March. While a reading below 50 still indicates contraction in the manufacturing sector, new orders increased 3.9%, moving from contraction in April to growing in May. Inventories continued a 37-month contraction trend.

On an individual industry basis, five industry groups--Nonmetallic Mineral Products; Plastics & Rubber Products; Machinery; Food, Beverage & Tobacco Products; and Printing--were reported as expanding, while the balance of 13 industry groups--Textile Mills; Furniture & Related Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Primary Metals; Transportation Equipment; Computer & Electronic Products; Wood Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Chemical Products; Petroleum & Coal Products; and Paper Products--continued to contract.

Overall, the indications are that while manufacturing continues to slow, the rate of decline is leveling out and some industries are beginning to see signs of recovery.

Manufacturing Appear to be Bottoming Out

2009-05-28T06:26:00.000-07:00

Commerce Department data for April manufacturing orders suggest that the downturn in manufacturing may be bottoming out. Perhaps more important than the April data is the trend that has seen increases in orders in two of the last three months, following a period of six months of continuous declines.

All industries did not benefit uniformly. Defense capital goods soared by 23.2% percent and demand for communications equipment rose by 6.9%, while machinery orders were up 2.7% and primary metals such as steel rose by 1%. Transportation remained volatile with motor vehicles up 2.7%, while commercial airplanes orders fell 6.8%.

While this good news may not signal the beginning of the recovery, it does offer hope that the worst may be over. This changed reality would suggest it is time to begin thinking about what investments should be considered to improve energy efficiency and productivity in manufacturing, particularly as energy prices have continued their upward trend, with oil prices currently above $60/bbl.

Baldwin Amendment Incorporated into ACES

2009-05-22T13:52:00.000-07:00

On Tuesday, an amendment offered by Representative Tammy Baldwin (WI-2) was adopted by the House Energy and Commerce Committee into the American Clean Energy and Security Act (ACES) of 2009 (co-sponsored by Reps. Waxman and Markey).

This amendment would establish Building Assessment Centers (BAC) to train students to identify and implement energy efficiency opportunities in existing residential, commercial, and institutional buildings. The BACs would be modeled after the highly successful Industrial Assessment Center program. Furthermore, the amendment would establish "Centers for Energy and Environmental Knowledge and Outreach" to coordinate activities between the IACs, BACs, and Clean Energy Application Centers (formerly CHP Regional Application Centers).

ACEEE played a key role in the development of this amendment and we are thrilled that it was adopted.

Watch video of the amendment's introduction and adoption here.

The full ACES bill (H.R. 2454) passed out of committee last night. Its text can be viewed here.

Disappointing DOE 2010 Budget Request

2009-05-07T18:19:00.000-07:00

DOE released its budget request for FY2010. Unfortunately it is disappointing with respect to the Industrial Technologies Program. Overall, funding increases from $90 million for FY2009 to $100 million for FY2010. However, funding actually goes down for the Industries of the Future (industry specific), with distributed energy and industrial assessment centers level funded. The major increases are for deployment (e.g., SEN) and for cross-cutting research.

We will post some more details once we get a chance to analyze the request in greater detail.

Successful Senate Briefing on S. 661

2009-05-06T07:58:00.000-07:00

On Monday, ACEEE and AMMEX hosted a briefing in the Dirksen Senate Office Building on the need for robust appropriations of S. 661, Restoring America's Leadership in Manufacturing through Energy Efficiency Act of 2009. The briefing went quite well; there were many people in attendance, including several Senate staffers.

Neal Elliott of ACEEE, Chip Foley of AISI, Fred Quan representing GMIC, and Rick Boyd of Nova Precision Casting gave compelling statements as to the efficacy of R&D funding and public-private research and technology partnerships in the strengthening of American manufacturing and the potential for further decreases in manufacturing energy consumption and intensity.

We thank our speakers for helping out at the briefing, as well as those who were in attendance.

U.S. Manufacturers See No Quick Economic Rebound

2009-04-24T10:10:00.000-07:00

Reuters has an article today about the economic downturn and its impact on the manufacturing sector in the US. While some economic indicators have recently been offering a glimmer of hope for recovery, manufacturers are still feeling the pain.

Another article, from AP, touches on American Electric Power's drop in first quarter earnings, based largely on industrial consumers' decline in electricity consumption. Interesting from a number of perspectives.

And lastly, some slightly better economic news.

Manufacturing Policy Update from Washington

2009-04-23T14:12:00.000-07:00

Well, the month of April has been a busy one in Washington Energy Policy circles. In addition to the Senate's energy efficiency in manufacturing legislation (S. 661), we are dealing with the House's Waxman-Markey climate legislation. One important element of the discussion is how to develop policies to mitigate the cost of climate legislation on energy-intensive industries. These are likely to involve some allocation of credits to the affected industries--perhaps in the form of investment incentives and additional funding for R&D to address the competitiveness impacts.

In addition, there are active discussions on other provisions that may benefit manufacturers. These include a provision to create a motor incentive grant program for EE programs to encourage the retirement of non-NEMA Premium motors and their replacement with NEMA Premium products. More details on this in coming days. If there is a tax title in the energy bill, there will be a proposal from Sen. Lincoln and Sen. Pryor for an investment tax for purchase of NEMA Premium motors in the works as well.

Finally, there have been a lot of discussions following Wednesday's Senate Energy Committee hearing on EERS and additional CHP provisions. These are still in the early discussion stages but could complement the investment tax credit and accelerated depreciation for new CHP investments that were passed in the TARP bill last fall.

So much to keep track of, but looks like Washington is taking the manufacturing sector seriously for a change.

NY Times - The Future of the Concrete Industry

2009-04-01T13:18:00.000-07:00

Substantial advances in low-CO₂ industrial production processes and materials sourcing will be necessary for the country's energy-intensive industries to develop long-term, sustainable strategies in response to any future climate change legislation. The New York Times summarizes a few of these kinds of technological innovations from the perspective of the concrete industry.

Dow closes buyout of Rohm & Haas

2009-04-01T12:38:00.000-07:00

Busy start to April. Breaking news is that the Dow Chemical Company has closed its much delayed buyout of the specialty chemical maker Rohm & Haas.

Motor Crush for Credit Provision in Senate Energy Bill

2009-04-01T12:25:00.000-07:00

Yesterday, the Senate Energy Committee passed a rebate provision as part of its Energy Bill markup that would set a new 'crush for credit' program at DOE. This legislation creates a new energy-efficient motor rebate program for the purchase of NEMA Premium^® efficiency electrical motors, providing a $25 per horse-power rebate for the purchase of NEMA Premium^® motors, as well as a $5 per horse-power rebate for the disposal of the old, inefficient motor. This program would offset most of the cost difference between new, more efficient motors and the lesser cost to repair the older, less efficient motors. Once signed into law, this program allows the federal government to spend $350 million to incentivize the widespread adoption of NEMA Premium^® motors.

For more details, see NEMA's Press Release.

ACEEE sees this provision as an important complement to motor efficiency programs that are attempting to affect the repair/replace decisions in the marketplace as we move toward the implementation of EISA motor efficiency standards (for more on this topic, see ACEEE's report).

Senate Energy Committee Testimony

2009-03-24T08:53:00.000-07:00

Thanks to the help of my colleagues here at ACEEE, my testimony for Thursday's Senate Energy Committee hearing on S. 661 Manufacturing energy legislation is in. Those interested can download my testimony here.

[Update] A video of the entire March 26 Senate Energy and Natural Resources committee hearing pertaining to S. 661 can be viewed here.

New Legislation: Energy Efficiency in Manufacturing

2009-03-21T16:38:00.000-07:00

By Neal Elliott, ACEEE Industry Program Director

Senator Bingaman (D-NM) has introduced the Restoring America’s Manufacturing Leadership through Energy Efficiency act in the U.S. Senate, representing one of the most sweeping pieces of legislation on energy efficiency in manufacturing in recent memory. The content of the bill can be found here.

The committee will hold a hearing on this legislation next Thursday (March 26) at 9:30. I have been asked to testify. We will post my testimony on our web site the day of the hearing and I will post a link on this blog.

NY Times - Manufacturing Woes

2009-03-21T16:36:00.000-07:00

Friday's NY Times had a story on the challenges facing the manufacturing sector.

Not a pretty picture.

Upcoming Webinar

2009-03-12T13:53:00.000-07:00

The next Industrial Program Managers Network webinar will be held Wednesday, May 20th from 2-4pm Eastern time. More details to come.