Supporting Industrial Energy Efficiency (IEE) and Combined
Heat and Power (CHP)
US EPA Activities in Support of Executive Order of August 30, 2012
October 16, 2012
National Governor’s Association Policy Academy
Enhancing Industry through Energy Efficiency & Combined Heat and Power
1
Overview
•
Recognizing the Air Emissions Benefits of IEE & CHP through Clean Air Act
Implementation
– Incorporating IEE & CHP in Air Quality “SIPs” (State Implementation Plans)
– Employing Output-based Approaches in Air Regulatory Programs
• Industrial, Institutional and Commercial Boilers: “Boiler MACT”
• Power Plants: Mercury and Air Toxics Standards (MATS)
•
Technical Assistance: EPA Partnership Programs
– CHP Partnership
– ENERGY STAR for Industry
•
Other
– NEW REPORT: “CHP: A Clean Energy Solution”
– Convening (with DOE) Regional Dialogue Meetings on Best Practice Policies and
Investment Models
– Leading (with DOE) State & Local Energy Efficiency Action Network (SEE Action)
Working Groups
•
•
Industrial Energy Efficiency and Combined Heat & Power
Driving Ratepayer-Funded Efficiency through Regulatory Policies
• Appendix
– Additional Slides on EPA Partnerships
2
Recognizing the Air Emissions Benefits of
IEE & CHP through Clean Air Act Programs
• Incorporating IEE & CHP in Air Quality “SIPs” (State
Implementation Plans)
– “The Roadmap” is key to EPA’s effort to encourage state, tribal and local agencies to
consider incorporating energy efficiency (EE) and renewable energy (RE) policies and
programs in their State and Tribal Implementation Plans (SIPs/TIPs). The initiative
includes a manual, training, tools and technical assistance.
– Fact Sheet - Information on why EPA is encouraging incorporation of EE/RE policies and
programs in SIPs and TIPs
– Basic Information – An overview of EE/RE policies and programs, including more
information about SIPs and TIPs, who should learn more about EE/RE opportunities, and
information on electric energy training.
– EE/RE Roadmap Manual – Learn more about how this new document can help air
agency planners
– Quantification – Information on how to quantify EE/RE emissions reductions
– http://epa.gov/airquality/eere/
3
Recognizing the Air Emissions Benefits of IEE & CHP
through Clean Air Act Programs (continued)
• Employing Output-based Approaches in Air Regulatory Programs
– Industrial, Institutional and Commercial Boilers: “Boiler MACT”
• Finalized March 2011
• Sets standards for emissions of toxic air pollutants like mercury, arsenic, and metals, from
new and existing industrial, commercial, and institutional boilers and process heaters at
major sources of hazardous air pollutants.
• Proposes reconsidered December 2011
• To be finalized in 2012
• Provisions recognizing emissions benefits of IEE & CHP
– Alternative output-based limits, including accounting for CHP
– Requirements for boiler tune-ups and facility energy assessments
– Credit for IEE measures implemented to reduce energy demand met by boilers/CHP across facility
• http://www.epa.gov/airquality/combustion/
– Power Plants: Mercury and Air Toxics Standards (MATS)
• Finalized December 2011
• Provides for alternative output-based limits for emissions of toxic air pollutants like
mercury, arsenic and metals, including accounting for multiple forms of energy output (e.g.,
electricity and steam) of CHP systems
• http://www.epa.gov/mats/
4
EPA’s CHP Partnership
• The EPA CHP Partnership (CHPP) is a voluntary program that
seeks to reduce the environmental impact of power generation by
promoting the use of highly efficient CHP.
• Through 2011, the CHPP and its Partners put into operation more
than 550 CHP projects representing more than 5,300 MW of capacity.
• The CHPP offers services and tools for Partners to assist with CHP
project development, overcoming regulatory barriers, transform
markets ripe for CHP, and crucial recognition.
• Support development of new CHP projects with credible and
unbiased technical expertise
• Targets key regulatory, utility and information barriers
EPA’s CHP Partnership
Overview of CHPP Tools and Resources
• Three types
– General Partnership education and outreach
– Technical assistance for candidate sites
– Publicity and recognition
• All tools and resources available for free
– General Partnership education and outreach materials available
to everyone
– Technical assistance and publicity/recognition available to
Partners
• All Partnership tools and resources available on CHPP
website:
www.epa.gov/chp
EPA’s CHP Partnership
Tools and Resources
Most popular
•
CHP Emissions Calculator (http://epa.gov/chp/basic/calculator.html)
–
•
Catalog of CHP Technologies (http://epa.gov/chp/basic/catalog.html)
–
•
Provides an overview of how combined heat and power (CHP) systems function and key concepts.
It also presents useful estimates about the cost and performance characteristics of different types
of CHP prime movers. [.pdf format]
Funding and Incentive Database (http://epa.gov/chp/funding/funding.html)
–
•
Allows a user to calculate and compare the CO2, SO2, and NOx emissions from a CHP system to
those of a separate heat and power system. The calculator also presents estimated CO2 emissions
reductions in terms metric tons of carbon equivalent, acres of fir or pine trees, and emissions from
passenger vehicles. [.xls format]
Presents information about a multitude of federal and state CHP financial incentives and
regulations that encourage CHP or biomass project development. Incentives include, but are not
limited to, grants, loans, state tax exemptions, standardized interconnection rules, net metering
rules, and output-based regulations. [html format]
CHP Project Development Handbook (http://epa.gov/chp/projectdevelopment/index.html)
–
Presents tips and proven strategies for successful CHP project development. [.pdf format]
EPA’s CHP Partnership
Tools and Resources (continued)
• Direct Project Assistance (case-by-case basis)
– (e.g. level 1 feasibility analyses, air permitting guidance, funding incentive research)
• ENERGY STAR CHP Award
– (http://epa.gov/chp/public-recognition/awards.html)
• Facilitate peer-to-peer marketing and networking
• Other Publications and Resources
– Fact sheets, white papers, technical resource documents, market analyses
http://epa.gov/chp/publications/index.html
• CHP Partnership Help Line:
– (703) 373-8108 or chp@epa.gov
EPA’s CHP Partnership
Market Sector Strategies
• CHPP has worked in the ethanol, waste water
treatment facilities, hotels and casinos and utility
sectors
• Provide an understanding of sectoral barriers to CHP
• Outcomes of sectoral work:
– Resources have led to the growth in the use of CHP in the
sector
– Developed collaborations within the Agency (e.g., work with
Office of Wastewater Management on CHP and Wastewater
Treatment Facilities)
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EPA’s CHP Partnership
Clean Air Act Policy Support
• Advance consideration of output-based standards with credit for
CHP in EPA regulations
• Improve understanding of permitting processes (e.g., New Source
Review, output-based standards) to facilitate increased use of CHP
• Ensure adequate treatment of CHP in “Clean Energy in SIPs
Roadmap”
• Conducting a regional pilot in the Midwest to identify barriers and
incorporate use of output-based standards in state permits
• New: working with NASEO to develop tools and resources
– Potential for CHP to achieve state energy objectives
– State policies and programs to advance CHP deployment
– Case studies on state CHP efforts
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ENERGY STAR for Industry
Save Energy & Build an Effective Energy Program
– http://www.energystar.gov/industry
ENERGY STAR Guidelines for
Energy Management
– A framework for how to develop an energy program
•
Dozens of tools & resources support companies of all types in
each step of the process
– Based on best practices from successful ENERGY
STAR partner companies.
•
The foundation for the energy programs of thousands of
organizations in the U.S.
– Structured on a “plan-do-check-act” approach.
Informed the ISO 50001 standard.
– Industry participates!
– Over 700 industrial corporations are partners
– Over 18 specialized industrial sectors address
their energy management issues with ENERGY
STAR
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ENERGY STAR for Industry
Tools for Manufacturers
For specific sectors, EPA convenes “Industrial Focuses”
 Energy Guide that identifies energy efficiency opportunities.
 Energy Performance Indicator (EPI) to benchmark performance of plants in
the sector
 Sharing of best practices & networking among sector’s energy
managers
ENERGY STAR Focus Industries
Service Offerings
Industry
Peer
Exchange
Network
Industrial
Energy Guide
Energy Performance
Indicator

Cement Manufacturing

Published
2nd Version Released
Concrete

Published
In development
• Cookies & Crackers
• Breads & Baked Goods

Planned
Released
In development

Corn Refining

Published
2nd Version Released


Published
Draft
Published
Released
Released
Draft

Published
Draft
Released
Released

Commercial Baking
Dairy Processing
 Fluid dairies
 Cheesemaking
 Ice Cream
Food Processing
 Juice
 Potato Products
 Tomato Products

Glass Manufacturing
 Fiberglass
 Flat glass
 Container glass

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ENERGY STAR Focus Industries
Service Offerings
Industry
Motor Vehicle
Manufacturing
Peer
Exchange
Network
Industrial
Energy Guide
Energy Performance
Indicator


Published
2nd Version Released
In development
Metal Casting

In process
Draft (iron)
Petrochemical
Manufacturing

Published
Draft
Petroleum Refining

Published
Private system
recognized by EPA

Pharmaceuticals

Published
Released

Printing

In process
Exploring Options

Published
Released
Released

Published
Draft
Draft
 Automobile Assembly Plants
 Power train Plants
Pulp & Paper
 Integrated Mills
 Pulp Mills
Steel
 Primary Steel
 Mini Mills

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ENERGY STAR for Industry
ENERGY STAR Challenge
•
Recognizes 10 % improvement in energy intensity within 5
years or less.
•
•
•
•
Calculated against an internal baseline at an industrial site.
Sites participate by:
–
–
–
–
–
Selecting an energy intensity metric
Establishing a baseline
Setting a 10% improvement in 5 years goal
Registering for the Challenge
Verifying savings if goal is achieved
Who can participate?
–
–
Any manufacturing site can take the Challenge.
• No offices or warehouses.
Promote the Challenge to plants in your area.
Industry is using the tool
-
541 sites are taking the Challenge; 163 sites have achieved it!
–
–
–
–
Motivates sites to action & creates an objective for their energy program
Establishes basic energy tracking & benchmarking
Promotes continuous improvement of energy performance
Supports energy management teams & helps identify successful strategies with
ENERGY STAR tools
Links energy efforts to ENERGY STAR and the power of a broader campaign
–
15
Contact and Links
• Contact
– Joe Bryson, Senior Policy Analyst, Office of Air & Radiation, Climate Protection
Partnerships Division
– Bryson.Joe@EPA.GOV, (202) 343-9631
• Links
– Clean Air Act
• Incorporating IEE & CHP in Air Quality “SIPs” (State Implementation Plans):
http://epa.gov/airquality/eere/
• Employing Output-based Approaches in Air Regulatory Programs
– Boiler MACT: http://www.epa.gov/airquality/combustion/
– Mercury and Air Toxics Standards (MATS): http://www.epa.gov/mats/
– Partnership Programs
• EPA’s CHP Partnership: http://www.epa.gov/chp
• ENERGY STAR for Industry: http://www.energystar.gov/industry
• Executive Order
–
http://www.whitehouse.gov/the-press-office/2012/08/30/president-obama-signs-executive-order-promoting-industrial-energy-effici
• EPA/DOE CHP Paper (CHP: A Clean Energy Solution, August 2012)
– http://www.epa.gov/chp/documents/clean_energy_solution.pdf
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• APPENDIX
– Additional Slides on CHP Partnership
17
Advance CE and CHP in Rule Development
• Efforts include energy efficiency characteristics that result in
environmental benefits:
– Recognition of CE and CHP expands the suite of technologies that can be
considered
– Incorporate output-based provisions where applicable
• Existing Clean Air Act (CAA) regulations that include such provisions:
– Several New Source Performance Standards
– BACT Guidance – sector specific and permitting handbook
– CHP and output-based considerations in MATS
• Proposed regulations that consider such provisions
– Proposals applicable to CHP
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Advance IEE/CHP in Rule Implementation
Work done with Industry, States, and within EPA
• CE provisions in CAA regulatory programs can be
underutilized if not supported during rule implementation
phase
• Work with states and within EPA to support use of CE
provisions. Examples include:
– SIP Baseline Emission Projections
– CE in SIPs Roadmap
– Resources and outreach to facilitate use of output-based
standards
• Work with industry to support use of CE provisions
• GHG Reporting Program
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