G8 Environmental Futures Forum 2000

Detailed Description of Best Practices
United States of America No.14

I. Title of the Best Practice

Industrial Assessment Center Program

II. Overview of the Best Practice

A. General Description
The Department of Energy's (DOE) Industrial Assessment Center, or IAC, Program was initiated in 1976 as an energy audit program working with three universities to improve the energy efficiency of small and medium-sized manufacturing plants in their respective localities. Building on its success, it gradually developed into the current national program -- working through centers located at 30 competitively-selected universities, and with a total systems (energy, waste and productivity efficiency) focus.

The program has two major objectives: 1) to sponsor and promote industrial assessments of small and medium-sized manufacturing plants, and 2) to provide engineering students with hands on industrial experience in energy, waste and productivity efficiency.

B. Special Characteristics of the Best Practice
Under the direction of experienced faculty, teams of engineering students from the centers, located at universities throughout the country, conduct industrial assessments and provide recommendations to help small and medium sized plants identify opportunities to improve productivity, reduce waste, and save energy. Each university-based team conducts a site visit and performs an assessment of the plant's energy, productivity and waste efficiency. Within 60 days, a report detailing the analysis, findings, and recommendations on ways to improve the plant's efficiency, is sent to the plant manager.

The program scope includes all industrial manufacturing sub-sectors. In addition, the program is involved with a number of special projects focused in-depth on energy intensive industrial sectors (like the metals casting industry). The program also provides technical support and collaborates on numerous joint efforts with state governments and other federal agencies who are working to improve industrial efficiency.

The IAC program maintains an extraordinary and extensive data base of information on over 8,800 audits conducted to date. What makes this data base unique is that it provides plant and sector-specific actual data on recommendations and their implementation. This means that anyone interested in a particular type of manufacturing industry can access data that shows the most frequently recommended and implemented opportunities for improving energy, waste, and productivity efficiency in that industrial sector. This information can often point the way to areas for prioritizing energy and waste reduction investments.

Through its Web site the program provides self help and best practices materials and workbooks that can help manufacturing plants conduct their own assessments.

C. Reasons for inclusion as a best practice
In 1999, annual reductions of CO
2 are 1.14 MMTCE for the IAC Program. To date, total commutative dollar savings are US$1,300 million.

The program is cost-effective, with a benefit cost ratio of 5.56 to 1 and a leveraging effect of 4 private dollars for every 1 public dollar spent.

The implementation rate for energy-related recommendations is 54%.

On average, recommendation actions from an assessment result in annual cost savings of about US$55,000, but some plants have had much better performance. For example, recommendations helped Amcast Precision Products of Rancho Cucamonga, California, reduce costs by US$81,450 per year. One suggestion alone --to filter and reuse its blasting water -- saved the plant over US$7,800 a year with a one-time investment of only US$750.

To date, over 2,300 engineering students have worked in the program and many have gone on to take their state of the art experience in industrial efficiency to manufacturing employers throughout the country. Engineering students who participate in the program are in high demand.

In addition, this program can be appropriate for application in, or technical transfers to, developing countries. The program in fact has had contact with and transferred information and experience to a number of developing countries -- for example, Ghana, Mexico, South Africa, Canada, and Finland.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( ) Regulatory Approach (Policy approaches-- regulations, incentives, etc.)
( ) Practical Action (Action undertaken independently by a social actor)
( X ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( ) Citizens
( X ) Central government
( ) Local government
( X ) Business -- small and medium-sized manufacturing plants
( X ) Other -- Universities

3. Sector(s) (Indicate main sector(s) only.)
( ) Energy
( ) Household
( ) Transportation
( X ) Industrial Enterprises
( ) Other (Non-Industrial) Business
( ) Agriculture/ Land Use/ Forestry
( ) Other (Please specify.)

4. Target Greenhouse Gas(es)
( ) CO2
( ) CH4
( ) N2O
( ) HFC
( ) PFC
( ) SF6
( X ) Other No specific greenhouse gas is targeted. The program focuses on energy, waste and productivity improvements. Savings in Greenhouse gases are, however, a significant by-product of the industrial assessments.

IV. List of References

http://www.oit.gov/iac

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person: Charles Glaser
Title: Program Manager
Organization: U.S. Department of Energy, Office of Industrial Technologies
Email: Charles.Glaser@ee.doe.gov
Tel: 202-586-1298
Fax: 202 586-3227
Address: 1000 Independence Ave. SW, Washington, DC 20585 USA

Detailed Description of Best Practices - USA No.14

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