Manufacturers Best Practice Guide

Planning an Energy Program: Energy Teams

Convene An Energy Team to Develop an Action Plan
After adopting an energy policy, the next step is to bring together an energy team to develop and execute the energy action plan. Once in place, this group will also be able to integrate their specific expertise into the details of the energy policy and plan. Led by the energy director or facilities manager, this group will be the on the ground team that keeps the energy plan moving. Remember, ultimate success will necessitate the inclusion of all staff through education, encouragement and incentives.

Corporate Leadership in Energy Efficiency
In order for energy efficiency to become widespread in the industrial sector, it is necessary that top-level management take a leadership role in the process. Facility managers often recognize that energy efficiency is a win-win effort; without the buy-in from corporate leadership, the ceiling for benefits from energy efficiency remains low.

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Appoint An Energy ManagerAn energy manager is responsible for facilitating and coordinating the planning, procurement and utilization of energy resources. Their duties might be solely focused on energy, or energy management might be one of many duties. Similarly, an energy manager might be responsible for a single building, an entire campus, or even global operations spread throughout several countries.

Consider goals and objectives when deciding which staff to include. For example, if air quality concerns are high among the priorities, then recruit staff familiar with the existing heating, ventilation and air conditioning (HVAC) system.

External partners are another source of expertise and capabilities. Local utilities, for example, offer a range of incentives, services and programs that are often free of charge or tied to rebates. Similarly, third parties such as architecture and engineering firms, building contractors and owner's representatives, might be able to provide specialized services that in-house staff do not have the time or capacity to perform. Some even offer performance guarantees that limit financial risk. Energy services companies (ESCOs) bundle services, equipment purchases and financing into a single package, which might pay for projects that would otherwise be cost prohibitive.

Educate and Involve Company Employees in the Energy Plan
Key to any energy management plan is the active participation of the actual energy users. In the same way that company executives must buy into the planning and implementation of energy-efficient procurements and practices, company employees can make or break the success of an energy plan. An understanding of the need for energy efficiency must be established company wide.

Making Energy a Top Priority: California Portland Cement

California Portland Cement has made energy management a core activity in its business plan. "Effectively managing energy is an important part of our day-to-day operations," says CEO Jim Repman. "As an EPA ENERGY STAR partner, we place a high value on the environmental and fiscal savings gained from superior energy management."

Energy Management Teams

At the outset, California Portland Cement assigned an energy manager and formed an energy management team consisting of plant and corporate personnel. The team represents several different departments and functional areas, including engineering, operations, maintenance, accounting, executive management and procurement.

Saving money was the motivating factor for the plan, and the team realized that even a 5% improvement could result in millions of dollars in energy savings each year. As they developed the plan they also saw the additional benefit of saving significant amounts of process emissions.

Now that the program is underway, the corporate energy team meets every TWO months and rotates to different facilities throughout the company. In addition, each major facility or division has its own local team to ensure that initiatives are implemented.

California Portland Cement also created a process energy team made up of process engineers who conduct periodic energy assessments on specific plant areas. They take measurements, review operational data, calibrate instruments and write reports describing opportunities. The process energy team also brings in consultants and uses resources such as those available through DOE's Industrial Technologies Program (ITP) to conduct energy audits.

An Emphasis on Corporate and Employee Buy-in

California Portland Cement has found that support and cooperation throughout the company, from plant employees to executive management, is essential to the effective implementation of the energy program. One of the sustaining elements is its senior management's commitment. For example, the senior vice president of operations and the vice president of engineering participate in all corporate energy meetings. Through their participation, the energy program gains credibility and reinforces the need to meet company efficiency goals.

Because of the corporate emphasis on energy management, it is a regular topic at quarterly cost-review meetings and frequently on the agenda at executive, staff and board meetings. Corporate managers also understand the need to recognize employees for their contributions to the program's success. To bolster buy-in among plant employees, California Portland Cement has initiated a pilot bonus program at one of its plants. Employees receive incentive bonuses tied to the plant's energy performance. And, throughout the company, employees are recognized at awards luncheons and other events attended by CEO Jim Repman.