WASHINGTON — An
executive order issued last week by the office of the President of the United
States seeks to promote American manufacturing by helping to facilitate
investments in energy efficiency at industrial facilities. One stated goal of
the executive order is to deploy 40 gigawatts of new, cost effective industrial
CHP in the United States by the end of 2020.
order notes that the industrial sector accounts for over 30 percent of all
energy consumed in the United States, and, for many manufacturers, energy costs
affect overall competitiveness. While manufacturing facilities have made
progress in becoming more energy efficient over the past several decades, there
is an opportunity to accelerate and expand these efforts with investments to
reduce energy use through more efficient manufacturing processes and facilities
and the expanded use of combined heat and power (CHP).
of burning fuel in an on-site boiler to produce thermal energy and also
purchasing electricity from the grid, a manufacturing facility can use a CHP
system to provide both types of energy in one energy efficient step.
Accelerating these investments in our Nation''s factories can improve the
competitiveness of United States manufacturing, lower energy costs, free up
future capital for businesses to invest, reduce air pollution, and create jobs,
the executive order states.
Despite these benefits, independent studies
have pointed to under-investment in industrial energy efficiency and CHP as a
result of numerous barriers. The executive order notes that the Federal government
has limited but important authorities to overcome these barriers. Its efforts
to support investment in industrial energy efficiency and CHP should involve
coordinated engagement with a broad set of stakeholders, including States,
manufacturers, utilities, and others. By working with all stakeholders to
address these barriers, there is an opportunity to save industrial users tens
of billions of dollars in energy costs over the next decade.
is no one size fits all solution, the executive order notes, so it is
imperative to support investments through a variety of approaches, including
encouraging private sector investment by setting goals and highlighting the
benefits of investment, improving coordination at the Federal level, partnering
with and supporting States, and identifying investment models beneficial to the
multiple stakeholders involved.
formalize and support the close interagency coordination required to accelerate
greater investment in industrial energy efficiency and CHP, the executive order
directs executive departments and agencies to convene national and regional
stakeholders to identify, develop, and encourage the adoption of investment
models and State best practice policies for industrial energy efficiency and
CHP; provide technical assistance to States and manufacturers to encourage
investment in industrial energy efficiency and CHP; provide public information
on the benefits of investment in industrial energy efficiency and CHP; and use
existing Federal authorities, programs, and policies to support investment in
industrial energy efficiency and CHP.
In addition, the executive order states that
the Departments of Energy, Commerce, and Agriculture, and the Environmental
Protection Agency, in coordination with the National Economic Council, the
Domestic Policy Council, the Council on Environmental Quality, and the Office
of Science and Technology Policy, shall coordinate policies to encourage
investment in industrial efficiency in order to reduce costs for industrial
users, improve U.S. competitiveness, create jobs, and reduce harmful air