Protect Our Environment
Through Energy Efficiency


                        An Energy Wake-Up Call	
                        Teaming Up to Save Energy Checklist.
                        Organizing Your Energy Team	
                        Starting Your Energy Program	
                        Building Capacity	
                        Sustaining the Team	
                        Maintaining  Momentum	
                        For More Information	

Organizations with energy programs that achieve
results have senior-level support, sufficient energy
program staff, and management structures that
empower staff to address energy efficiency issues
directly. The U.S. Environmental Protection Agency's
(EPA) ENERGY STAR* "Guidelines for Energy
Management" provide a management structure for
organizations to follow in developing a strategy for
achieving sustained performance. Forming an energy
team is one of the first steps in this framework.

Teaming Up to Save Energy is a "how-to" guide on
building an energy management team. The guide
discusses the structure, launch, and  maintenance
of an energy team. Examples from ENERGY STAR
partner organizations and a checklist are provided
to illustrate practices and help with implementation.
This guide complements "Guidelines for Energy
Management," which is available online at


Management of energy is good business because it
strengthens the bottom line. In many sectors, well-run
energy programs may reduce energy costs by 3 to 10
percent annually. By improving financial performance,
superior energy practices can create a competitive edge.

Strong energy management is a strategic asset. Besides
reflecting overall management acuity, it can be a sign of
future profitability. Financial analysts and investment firms
increasingly view the quality of energy management as an
indicator of financial performance.

Organizations often differ dramatically in energy
performance, even when they belong to the same
industrial or commercial sector, operate under the same
market conditions, and use the same equipment. Why the
big performance gap?

The high performers adopt a structured approach to
energy management and establish policies and procedures
needed to ensure long-term results. They commit to
allocating staff and resources to energy management,
establishing goals, and adopting a philosophy of
continuous improvement.
• Rising energy costs
  and increasing price
• Concerns aboutthe
  reliability of supply.
• Consider going be-
  yond the traditional
  organizational focus
  on energy supply and
• Reduce supply risks
  by improving energy

• Your organization's
  senior managers
  are convinced that
  energy management
  requires capital-
  intensive purchases
• Use internal
  examples of energy
  savings from better
  practices and low-
  cost improvements.
• Find examples of
  wasted energy
  and calculate the
  savings from better
• Use life-cycle costs
  and benefits to
  evaluate capital
  expenditures rather
  than just initial
• Cite examples of
  leading companies
  and organizations
  with strong energy
The ENERGY STAR "Guidelines for Energy Management"
provide a framework for organizations as they develop and
implement an energy management program. The steps of
the management strategy outlined in the "Guidelines for
Energy Management" are broadly illustrated in the graphic
on page 3. More details on the "Guidelines for Energy
Management" can be found at

Establishing an energy team is an important part of the
first step in energy management, "Make Commitment."
The energy team is responsible for planning, implementing,
benchmarking, monitoring, and evaluating the organizational
energy management program. The team's duties also
include delivering training, communicating results, and
providing recognition.

This guide is designed to help organizations develop
effective energy teams. The guide provides assistance
through checklists, guidance, and examples for:

• Organizing your energy team
• Starting your energy program
• Building capacity
• Sustaining the team, and
• Maintaining momentum
   FOR EXAMPLE, a culture of energy efficiency is
   embedded within the organization at Mines, an
   international property development company that
   builds and manages office space and other real estate.
   "Making wise use of energy is part of our company
   culture," says Jim Green, C.P.E., the company's regional
   manager of engineering services. "If I'm visiting a
   property and someone shows me new work we've done,
   I may comment on the quality of the workmanship, but
   my next question is how does it affect the building's
   energy picture? Everyone on our staff thinks that way;
   we mentor them to think in those patterns."

                            Make Commitment
                           Assess Performance
                               & Set Goals
Action Plan
This diagram illustrates the main management elements of the ENERGY STAR "Guidelines
for Energy Management." To read the Guidelines,

Energy Director
Energy Team
Energy Team's
Resources and
Able to work with all staff levels from maintenance
to engineers to financial officers
Senior-level person empowered by top
management support
Energy director reports to senior executive or to a
senior management council
Senior champion or council provides guidance and
Members from business units, operations (e.g.,
engineering), facilities, and/or regions
Energy networks formed
Support services (PR, IT, and HR)
Facility managers, electrical personnel
Two-way information flow on goals and
Facility-based energy teams with technical person
as site champion
Consultants, vendors, customers, and joint venture
Energy savings passed on through lower prices
Separate division and/or centralized leadership
Integrated into organization's structure and
networks established
Energy projects incorporated into normal budget
cycle as line item
Energy director is empowered to make decisions on
projects affecting energy use
Energy team members have dedicated time for the
energy program

Program Launch
Energy Team
Senior management briefed on benefits, proposed
approach, and potential energy team members
Energy team met initially to prepare for official launch
Success showcased at the official launch
Organizational kickoff announced energy network,
introduced energy director, unveiled energy policy,
and showcased real-world proof
Work plans, responsibilities, and annual action plan
Facility audits and reports conducted, energy
efficiency opportunities identified

Tracking and
Formal Training
Systems established for tracking energy
performance and best practices implementation
Events for informal knowledge transfer, such as
energy summits and energy fairs, implemented
Awareness of energy efficiency created through
posters, intranet, surveys, and competitions
Participants identified, needs determined, and
training held
Involvement in ENERGY STAR Web conferences
and meetings encouraged
Professional development objectives established
for key team members
Use of outside help has been evaluated and
policies established
Outside company successes sought and internal
successes shared
Information exchanged to learn from experiences
of others

Awareness of energy efficiency created throughout
Energy performance information is published in
company reports and communications
Recognition and
Internal awards created and implemented
Senior management is involved in providing
Credibility for your organization's energy program
Awards from other organizations have added to
your company's competitive advantage
Built-in plan for continuity established
Energy efficiency integrated into organizational
Measures of
Sustainability of program and personnel achieved
Continuous improvement of your organization's
energy performance attained

One person cannot do it all. Energy management is a
cooperative activity involving a team and, usually, multiple
subteams. A team approach improves buy-in from all
levels of the organization, which helps to ensure greater
energy savings.

Senior management needs to perceive energy management
as part of the organization's core business. The key is
an energy team leader at the corporate-level who is
empowered by support from the top senior management.
The energy director should be passionate about energy
management without being a zealot or grandstanding,
both of which can decrease team cohesion.

Some energy directors have a technical background;
others have financial experience or have  been plant
managers. Regardless of background, the energy
director must be able to work with all staff levels, from
maintenance to engineers to financial officers.

DO: Share credit for the achievements of the energy
management program with everyone involved. This
practice avoids "ownership" struggles and can increase
participation because everyone wants to be part of a
winning effort.
on the road 50 to
60 percent of the
time," says Fred
Dannhauser, former
global energy manager
at Owens Corning.
"I'm interested in
going to the plants
and being out on the
floor and being their
barrier buster with the
DO: Visit the organization's facilities on a regular basis to
determine their needs.

The energy director needs to be in touch with the big
picture. One way to help ensure empowerment is for the
energy manager to report directly to an executive who can
serve as a corporate ally.

Another option is a senior management council that
provides the energy director with guidance at the strategic
level and serves as the corporate champion. The council
might meet annually and be composed of representatives
from each business unit and, for multinational
organizations, each region. Other members might include
the CFO, treasurer, and director of purchasing.

DO: Secure an ENERGY STAR Partnership letter signed
by your CEO and use it as one of the team's credentials to
help empower your team.

DO: Involve your CEO in recognizing individuals and
facilities that achieve significant gains in energy

As with the strategic-level council, the number of people
on the energy team at the operational level depends on
the size of your organization. The right mix of players on
this energy steering committee is crucial. The energy
director might recruit team members based on business
units, operational areas, and/or regions.

Consider a representative from each operational area that
significantly affects energy use, such as:
                                            Operations and
      and Suppliers
                                                 'Uilding Design
                                                 and Facilities
         Health and Safety
 Real Estate
and Leasing
                                FOR EXAMPLE, at
                                California Portland
                                Cement Company, a
                                subset of the company's
                                energy team is made
                                up of process engineers
                                who visit a different
                                plant every six weeks
                                and do an energy audit.
                                At one plant, the pro-
                                cess engineers focused
                                on the finish grinding
                                system and identified
                                $300,000 in opportuni-
                                ties for annual energy
Other possible members of the core energy team
include plant managers, plant engineers, and electrical
supervisors. One important consideration is to ensure that
the team is multidisciplinary. A diverse, cross-functional
team can find more opportunities for reducing energy use.
Some multinational organizations have multiple levels of
energy teams, which form an energy network. A small
organization may have only a few key representatives.

                              • At many manufacturing sites, investments
                                in process improvements take priority over
                                energy investments.
                              • Usually the funding of projects is based on first
                                cost rather than life-cycle cost.
                              • Include process engineers as part of the
                                energy teamto provide access to process
                                improvement planning.
                              • Consider developing indicators that measure
                                the financial and environmental benefits,
                                as well as productivity improvements, that
                                are understandable to everyone in the
                                organization. Energy savings can be presented
                                as an equivalent amount of product that would
                                need to be sold to obtain the same financial
                                gain (net profits).
                              • Measure the impact of the program by its
                                effect on earnings and shareholdervalue.
                                ENERGY STAR provides a financial value
                                calculator to help measure this impact.
                              • Use financial metrics such as net present
                                value, simple payback, internal rate of return,
                                and hurdle rate to make your case effectively.
                                Speakthe language of your organization's
                                financial officers when explaining the program.
                              • Focus on internal rates of return to
                                demonstrate that energy projects may be
                                better investment alternatives than capital
                                allotted for process improvements.
                              • Explain how investing in technologies and
                                practices that reduce energy can affect
                                your organization's energy security and
                                help insulate the organization from the risks
                                associated with supply and price uncertainties
                                in a deregulated market.

Additional Support Services:
• Public Relations: PR departments can help share
  information with the organization and help ensure
  favorable publicity for your organization's energy
  management accomplishments.
• Information Technology: IT personnel can help with
  tracking systems and web-based communications.
• Human Resources: HR personnel help you staff
  the energy team, train the workforce, and administer
  performance standards and rewards.

Most energy improvements are implemented at the facility
and property level. Changing current, often inefficient,
operating practices to a culture of efficiency requires
that facilities or properties buy into the principles of the
organization's energy management program.
    FOR EXAMPLE, the General Motors Corporation
    has an Energy and Environmental Strategy Board
    consisting of directors and headed by the executive
    vice president. At the next level is a Global Energy
    Team with representatives from GM North America,
    GM Europe, GM Latin America, and GM Asia/Pacific.
    The third level is a Manufacturing Leadership Team,
    which monitors progress on  a quarterly basis. A
    fourth level is the Energy and Utility Services Group,
    which is responsible for energy consumption and
    the energy budget for GM North America. Finally,
    every plant has an Energy Conservation Team that
    includes both salaried and hourly people.
 Colorado Springs
 School District 11, a
 team with engineering
 and technical expertise
 coordinates energy proj-
 ects. The team meets
 with a committee made
 up of principals, teach-
 ers, building managers, a
 procurement department
 representative, food ser-
 vice managers, security
 department director, and
• Facility employees
  and managers are
  too busy to work with
  the energy team, but
  are the ones whose
  help you need.
• Attend facility meet-
  ings or participate in
  discussions to learn
  abouttheir concerns
  and howyou can
  address them.
• Provide information,
  tips, and reminders
  on howtosave

  FOR EXAMPLE, during
  visits to Mines'
  managed properties,
  Jim Green offers
  suggestions on
  introducing new
  technologies, but he
  also finds that ideas
  are a two-way street.
  "I might visit a property
  that has a technology
  that I've not seen
  installed before, so I'll
  ask the manager to
  put together a 'best
  practices,' and I'll
  show him  how to do
  that. That way, we
  share information and
  spread concepts and
A mechanism to involve people at facilities and properties
is essential since day-to-day working practices in the
facilities greatly influence energy efficiency.

• Send out the ENERGY STAR Partnership letter signed
  by your CEO to the facility managers and ask them to
  participate. The letter is a proven door-opener.
• Ask the plant or property managers to identify a person
  who will "own" energy management at that facility and
  serve as the site energy champion.
• Provide the site champion with information on
  the benefits of energy efficiency to educate other
• Encourage the site champion to form an energy
  team that includes the plant's key operations and
  maintenance people.

DO: Meet informally during half-hour breaks so as not to
interfere with regular work schedules of the site energy

DO: Recruit candidates for the energy team by letting
them know that it is a career-enhancing opportunity. They
will be saving money for their organization, and that is
important in a performance-oriented environment.

DO: Illustrate how energy management practices support
the facility's and company's goals.
                                 FOR EXAMPLE, "Instead of a top-down structure,
                                 Toyota has more of a give-and-take negotiation with
                                 the plants," says Bruce Bremer, manager of Facility
                                 Engineering-Engineering Support at Toyota. "We are
                                 constantly asking them for their input and involvement."

Consider engaging your joint venture partners, customers,
vendors, and service providers in the energy management

Vendors and service providers who reduce their own
energy costs might pass those savings on by charging
lower prices. Those suppliers  also  can help advance your
organization's energy management program by providing
tips on energy-efficient equipment.

By the same token, helping customers reduce their energy
costs might provide a value-added service that can help
retain them as purchasers of your company's products.
FOP EXAMPLE, to demonstrate to the community
that every possible effort is being made to achieve
significant energy improvements without any additional
tax burden, Colorado Springs School District 11 has
used multiphase performance contracts with energy
service companies to leverage energy savings for
financing new capital-intensive projects.
FOR EXAMPLE, Eastman Kodak has preferred
supplier agreements to buy all its motors from
preferred vendors. "With an agreement comes
engineering and technical support, so when we're
doing energy assessments, we can rely on them to
help us decide whether the cost of putting in a high-
efficiency motor is justified," says Kodak worldwide
energy program manager George Weed.
General Motors,
through the Suppliers
Partnership for the
Environment™, has
helped its suppliers
evaluate how to
manage and use

FOR EXAMPLE, "te part
of our environmental
activities, energy
savings is listed as one
of our key performance
indicators," says Bruce
Bremer of Toyota. "So
it's right up there on
our radar screen. Over
the years, we moved
it up on the company's
priorities by keeping it
Where the energy team lives in the organizational tree
is important for its success. Sometimes the team is its
own division or a component of Facilities, Operations, or
Environmental, Health, and Safety. Who the team members
report to is also an important consideration. Often, energy
teams are a voluntary network, and the members do not
report directly to the energy director. The exception is
those organizations that operate energy management as a
separate business unit.

The energy team needs to be empowered by "owning"
energy management and by having the authority to make
decisions. The energy director should be part of the
organization's strategic business planning sessions.

Don't go it alone! Successful teams avoid a maverick
reputation, which can make energy management seem like
a marginal activity and thus at risk of elimination. Energy
management should be integrated  into the organization's
structure as part of its core business, rather than being
a stand-alone activity that gives the impression of being
in its own world. When energy management is fully
integrated, each department or function has an energy
management role as part of its staff members' jobs.

DO: Pass credit to others who are not part of the team but
are implementing the energy improvements.
  Energy Management
  Financial Management
  Building Design and
  Facilities Department
Establish      Plan       Develop    Implement     Track
 Energy      Energy       Cost       Energy      Energy
  Goals      Projects    Estimates     Projects     Savings

Funding is a key to the success of the energy
management program. Some organizations set aside
a percentage of their budgets for energy projects. The
challenge is to get energy projects incorporated in
the normal budget cycle as a line item. Timing is all-
important. Seek funds  early, rather than adding projects
after the annual budget is finalized.

DO: Strive to establish the energy director as a full-
time position and allocate at least 20 percent of each
energy team member's time if your company has multiple
facilities and large energy expenditures.

DO: Consider securing  a different hurdle rate or return
on investment (ROI) for large or capital-intensive energy
projects that will help hedge against rising energy costs.

DO: Consider developing a capital fund for energy
projects based on a percentage of the savings achieved
from the projects.
biggest areas for
potential improvement
require a large capital
investment," says
Stephen J. Coppinger,
P.E., chief electrical
engineer at California
Portland Cement.
"But we've been able to
show plant managers
that there are a lot of
things we can do short
of spending a lot of
money. A consultant did
a study and came up
with a list of projects
at one plant with a
potential savings of
$400,000 and a one-
or two-year payback.
And those projects
can be replicated at
other plants."
    FOR EXAMPLE, General Motors created a business unit that has responsibility for
    energy supply, consumption, and efficiency for all of the company's North American
    plants. "The company transferred the energy budgets from the plants to this group,"
    says Kamesh Gupta, GM energy manager.  "All energy-consuming assets of the
    plants, such as compressors and air chillers, are part of this business unit. We have
    people at the plant level who report to us,  and we support the plant energy teams
    with resources, common systems, and best practices. We have the responsibility
    for capital expenditures for energy improvements. In the last three years, we spent
    about $30 million on those projects. If you  run energy as a business, you're really
    focused on making conservation happen and can leverage your efforts rather
    than relying on each plant and hoping they will deliver results. It takes a business
    approach and operation to drive this home."

                            STARTING YOUR
                            ENERGY PROGRAM
 Raytheon established
 an energy awareness
 month as the launch
 pad for kicking off its
 program. "Each site
 picked a day during
 the month and held
 an event," says David
 Chamberlain, principal
 energy engineer
 at Raytheon. "We
 focused on employee
 awareness of energy
 savings at their homes,
 since people tend to
 be more interested
 when they're paying
 the bill. We teamed up
 with Lowe'sฎ and local
 utilities, and people
 came out in droves to
 find out about energy-
 efficient appliances
 and weatherizing their
 homes." During the
 events, Raytheon's
 corporate energy team
 identified local energy
 champions to form
 a network of plant
 people who know the
 equipment that might
 be wasting energy.
The experience of organizations with successful energy
programs reveals that careful planning and effective
outreach at the launch of the program creates momentum
for the energy team. Successful program launches have

• Planning - Prior to any official launch, the energy
  director should prepare a briefing on the benefits of
  energy efficiency, the proposed approach, and a list of
  potential members of the energy team.

• Presentations to Senior Management - The energy
  director, with the support of a senior energy champion,
  should brief senior management.

• Team Strategy - A series of meetings of the energy
  team to prepare for the program's official launch
  should be held. The team should consider initiatives to
  highlight, such as a successful pilot project that could
  be showcased at the program's kickoff. A pilot project
  with a short payback period can provide credibility and
  real-world  evidence of actual dollar savings.

• Organizational kickoff-A formal event (perhaps
  even a webcast) that involves senior management
  announcing the formation of the energy team network
  and introducing the energy director helps to create
  credibility for the energy program. If this event will
  be the first time that the program goes live, it also
  provides an opportunity to unveil the energy policy. As
  additional real-world proof of the importance of energy
  management, a guest energy director from another
  organization could be invited to make a presentation on
  its energy successes.

 energy team at
 California Portland
 Cement meets every
 six weeks, each time at
 a different plant on a
 rotating basis. "During
 our initial audit, we
 learned about energy
 improvements that
 we are now applying
 at other plants," says
 Stephen Coppinger,
 "such as putting new
 timer cards in dust
 collectors, which save
 compressed air. And,
 instead of repairing old,
 less efficient motors,
 we're looking at our
 purchasing policy on
 premium energy-
 efficient motors."
At the first meeting of the corporate energy team, a schedule
for future meetings is established. How frequently the team
gets together varies from organization to organization, but
monthly meetings appear to be the norm. As communication
channels, meetings are superior to emails, which may tend
to be ignored. Multinational organizations might conduct
monthly team meetings by conference call  or webcast, with
face-to-face meetings held on a quarterly or annual basis.

At the meetings, the team members report on their progress
on assigned tasks and provide monthly reports on energy use
so that the team can build up data. The meetings also offer
opportunities for presentations on best practices by in-house
and outside technical and operational experts. In addition,
members can network with each  other, learn about key
contacts, and share problems for which the other attendees
might be able to offer potential solutions. Meetings also are
a mechanism for linking facilities so they can replicate best
practices and thus avoid reinventing the wheel.

Each year, the energy team should develop an action plan
for the year ahead, with activities to be conducted. In this
way, the team becomes proactive in planning its time and
ensuring that projects are funded.
  FOR EXAMPLE, General Motors' corporate energy team meets every month with plant energy
  engineers via webcasts. The plant-level energy teams meet weekly, and internal sharing of
  information at the plants occurs on a continuous basis. Real-time electric load profiles at the
  sites, for instance, show the level of energy efficiency achieved during weekend shutdowns. By
  comparing those readings with the plant's benchmark level, the performance for that week is
  determined. The energy team network shares information on a weekly, monthly, quarterly, or
  annual basis, depending on the level of detail needed. "We can tie it all together because our
  program is a business," says GM's Kamesh Gupta, "not just a staff organization."

The energy team and technical experts conduct assessments
at facilities by performing a physical walk-through to find
energy-saving opportunities. The energy team will need to
recognize that they will be competing for time and attention
against the business of the facility. However, assessments
are a powerful tool for involving facilities in a nonthreatening
way and encouraging their buy-in.

During the assessments, energy team members may
see best practices  in action, so the audits are a hands-
on learning opportunity for gathering practices and
technology to transfer. After a week-long assessment,
the members write an in-depth report, which might run as
long as 300 pages. A summary is circulated internally on
the intranet or published in the organization's newsletter.
    FOR EXAMPLE, Eastman Kodak conducts quick energy assessments called "kaizens,"
    a Japanese term for "take apart and make new for the good of others"—used
    for identifying and implementing rapid solutions that do not require large capital
    investments. A compressed air kaizen, for example, might involve fixing leaks. A lighting
    kaizen might require ensuring that fixture controls are actually programmed for the
    correct "time of day schedules." Another kaizen may involve fixing a faulty steam trap
    that is costing the company thousands of dollars per year. The kaizens raise questions
    about operations, such as whether a compressed air system should be run at 100
    pounds per square inch when 80 psi would do. "In energy management, there is not one
    big elephant that  saves the day," says Kodak's George Weed, "but a lot of small- and
    medium-size things that add up to big savings. The achievements involve improving the
    efficiency of the HVAC [heating, ventilating, and air-conditioning] system, right sizing
    equipment, and adjusting time-of-day electricity rate schedules."

  "At facilities where
  we are making the
  same product at each
  and every shift," says
  Owens Coming's
  Fred Dannhauser, "we
  got some mileage by
  creating a competition
  once we were bet-
  ter able to measure
  energy use." If Shift A
  consumed less energy
  than Shift B, for exam-
  ple, the second shift
  decided to be more
  conscientious so they
  could win. "First, we
  had to have data that
  would stand the test of
  integrity," Dannhauser
DO: "Deliver the goods" by ensuring that responses to
suggestions from plant workers are positive and prompt
and that results are obtained quickly.

DO: Prioritize the actions and improvement that should
take place first and that will lead to early success.

DO: Suggest schedules and timelines to ensure that
recommendations will be implemented.

DO: Leverage existing assessment methods and problem-
solving techniques employed by your company.
    FOR EXAMPLE, Toyota also conducts kaizens, plus
    three-day assessments called treasure hunts. The
    hunt begins on a Sunday to see whether equipment
    is shut off, continues on Monday and Tuesday to
    look at production startup and shutdown. At the
    closing meeting on Tuesday, the team presents
    ideas and cost savings to the plant managers. The
    participants, gathered from Toyota's other plants,
    frequently take some of the ideas back to their own
    plants, so it is not just the host facility that benefits.
    Toyota's Bruce Bremer adds, "As part of our cycle
    of kaizens, we also build energy reductions into the
    design of new plants so the improvements don't
    have to be done later."

Two essential components of your organization's energy
management program are:
• Mechanisms for tracking and communicating progress;
• Informal and formal tools for transferring that
  information to managers and workers.

Systems that track energy performance, implementation of
best practices, and progress toward goals are also effective
tools for evaluating progress and communicating successes.
A second key element is a knowledge management system
or best practices database. The sophistication of this tool
can range from a database published internally on the orga-
nization's intranet, or spreadsheets and electronic charts
provided to facility managers and engineers only. Case stud-
ies on successful projects can be published on either tool,
with information on the relevant contact persons.

ENERGY STAR provides a tool for tracking, normalizing, and
benchmarking energy use in buildings over time. To use this
tool, see ENERGY STAR'S Portfolio Manager.  Also available
are ENERGY STAR'S energy performance indicators (EPI) for
plants in select manufacturing sectors. The indicators
enable energy comparisons of a plant's energy efficiency
to that of its industry. All of these tools are available at
General Motors
uses a scorecard to
track performance at
each plant. TheGM
2100 data-gathering
system contains a
built-in mechanism for
generating charts that
compare energy use
at the facilities on a
monthly and quarterly
    FOR EXAMPLE, Toyota sends out monthly reports on targets versus actuals for the
    plants as a whole, monthly reports by shops (paint shop, plastics shop, weld shop,
    etc.), monthly productivity reports on energy use by unit of production, monthly
    reports on nonproduction energy use over weekends and between shifts, and annual
    summary reports that are sent out to all plants. "We go through the reports with the
    president for North America on a regular basis," says Toyota's Bruce Bremen "He
    receives the reports for North America as a whole and for each plant."

Frito-Lay holds a
three-day energy
summit annually for
all members of the
energy team, key
plant personnel, and
selected service and
product provider
partners. Other
organizations, such as
United Technologies
Corporation and
hold annual two-day
energy summits.
Two powerful tools for informal training are energy
summits and energy fairs.

Energy summits are usually annual get-togethers for
technology transfer. The energy network gathers to
exchange information on the program and best practices,
and to discuss new project ideas. Energy summits also
provide an excellent time to offer training and bring in
outside speakers to discuss energy management issues.

Attendees can include outside experts from another
industry sector, voluntary program partners, consultants,
and nonenergy corporate divisions such as environment,
health, and safety.

At the summit, a senior manager could articulate the goals
for the coming year and provide recognition for people in
the energy team network. A workshop at the end could
offer a forum for focusing on action steps.

For a multinational  organization, the energy summit could
be a global webcast. In other cases, companies might prefer
to host the summit at corporate headquarters and facilities
on a rotating basis. When held at a plant, the summit could
include a walk-through to showcase successes.

Energy fairs and exhibitions are one- to three-day events
for all employees, their families, and even neighbors
to educate them about basic energy strategies for the
home. Energy fairs normally are held at facilities and can
include representatives from outside organizations, such
as government or local utilities, to man the booths. The
energy fair could be held in connection with Earth Day,

Energy Awareness Month (October), or in conjunction
with "Bring Your Daughter or Son to Work" days. One
approach is to work with your organization's event planner
to help stage the exhibition. The expected outcome is
that employees' increased knowledge will translate to a
culture of energy efficiency in the workplace.
    FOR EXAMPLE, to solicit energy project ideas,
    Starwood Hotels held a competition where the
    prize was a Porscheฎ Boxster convertible. The
    energy management team received more than
    200 suggestions.

  FOR EXAMPLE, times
  is always looking fora
  thoughtful, diplomatic
  way of fostering
  healthy competition
  among its properties.
  But, in the meantime,
  the company is alert
  to opportunities
  for saving energy
  that develop out of
  satisfying needs
  expressed by tenants.
  When one tenant
  complained  about
  noise near the air-
  handling rooms,
  Mines considered
  technologies, but
  found instead that
  installation  of variable
  frequency drives
  on the air-handling
  units would  solve the
  problem while also
  cutting energy use
  in half.
Posters, intranet sites, surveys, and competitions are
additional tools for informally raising awareness of energy
efficiency and transferring knowledge. Attractive and
informative posters and intranet sites keep the energy
program vividly in front of people's eyes and educate them
at the same time.

DO: Consider conducting a short survey or questionnaire
that polls the entire workforce or a sample subset
of employees to raise energy awareness and gauge
employee attitudes toward energy efficiency.

DO: Hold contests to build interest and keep the energy
program fresh.

DO: Use free ENERGY STAR  Partner and Employee
Awareness poster templates to help raise awareness of
your energy program.
           Bur Actions Makfr a Different
                                        We can change Hie World!

Investing in training that promotes employee development
helps ensure the success of the energy program by building
overall organizational capacity. Informed employees
are more likely to contribute ideas, operate equipment
properly, and follow procedures.

Formal training can be targeted to address specific energy
management issues and transference of skills, and it
also can be used as an opportunity to gather feedback.
Training can be conducted at a particular site, or it can
be organization-wide.  Consider whether  the participants
should include a mix of departments and a mix of  managers
and other employees.  Including managers can demonstrate
organizational commitment but might inhibit discussion.

Training that promotes the professional development of
key energy team members sustains the success of the
corporate program. Organizations such as the Association
for Energy Engineers offer a one-week course that
qualifies successful participants to become certified
energy managers. Some utilities and community colleges
offer specialized training, such as the Building Operator
Certification for building managers.
Owens Corning,
by educating its
employees, improved
the operation of air
dampers in order
to use less air and
natural gas during
the incineration
process, reducing
energy consumption
for incineration by 10
percent. Training paid
off big time.

                              EPA offers several opportunities to keep abreast of energy
                              issues. Web conferences on energy management featuring
                              ENERGY STAR partners are held monthly. ENERGY STAR
                              Focuses identify and reduce barriers to energy efficiency in
                              specific sectors through technical guidance, performance
                              indices, and meetings. In addition, online training in ENERGY
                              STAR sector-specific tools, such as Portfolio Manager, is
                              free and is offered regularly.

                              DO: Training that is interesting and fun is more likely to
                              stick with nonenergy team employees.

                              DO: If you use a professional instructor, avoid
                              overscheduling the person's time, lest the sessions begin
                              to sound canned.

                              DO: Consider training specific individuals to become
                              technical experts in key equipment and facility utilities
                              that affect energy use, such as HVAC systems  and
                              compressed air.

Outsourcing to external consultants to perform
maintenance and metering to gather data can sometimes
have certain advantages. For example, if your organization
has insufficient in-house staff to perform regular
maintenance of steam traps, it can make sense to hire a
consultant. Outside eyes also can catch inefficient practices
that are often overlooked by company employees or even by
the energy team. Using third-party consultants and service
providers can be especially effective when conducting
assessments and technical audits.

If outsourcing is your choice, watch out for certain pitfalls.
Consultants and service providers should not become
the master of the knowledge, leaving  no expertise within
your organization. To avoid that, make the outsourcing
company a true partner and team member. Remember,
when meaningful performance metrics, incentives for
good performance, and penalties for lack of performance
are established, there is a common set of expectations
that can reduce problems.

DO: Consider outsourcing turn-key projects, such as
lighting upgrades, that are easily  replicated and monitored
across multiple sites.
FOP EXAMPLE, Owens Corning hired a consulting company that placed project
managers in the plants. Some are experts in process improvement, others are energy
experts. "We believe that when you have people on staff, they have a tendency to be
pulled in a hundred different directions," says Owens Coming's Fred Dannhauser.  "We
couldn't get enough traction without getting a resource dedicated  100 percent of the
time for a certain period.  But we didn't necessarily need someone in that role forever,
just while we addressed the backlog of projects. Whether you use outsiders is not as
important as using someone who is really going to dedicate time and who will be
held accountable for reducing energy consumption. We kept the charges for the project
managers at the corporate level, but the plants did the implementing."

                             CROSS-COMPANY NETWORKING
                             Active participation in industry and energy-focused
                             associations can provide a way to share program
                             experiences and results, as well as to learn from others.
                             Speaking engagements at industry events are an effective
                             way to share your organization's successes and motivate
                             others to improve energy performance.

                             Exchange of information and ideas on energy efficiency
                             within and across industrial and commercial sectors
                             and from ENERGY STAR can translate into significant
                             cost savings credited to your organization's energy
                             management program.
  FOR EXAMPLE, Eastman Kodak leveraged its partnership with ENERGY STAR to look
  into saving energy on exhaust hoods in laboratories. "I sent out an email and got five or
  six notes back," says Kodak's George Weed. "We learn from each other all the time. We
  just did a two-day benchmark exercise with Toyota, with a day in each plant, and we
  learned a lot from them and them from us. So now we're sending a person to participate
  in a Toyota energy treasure hunt in California. Then after that, they will be helping us
  with an energy assessment."
                                FOR EXAMPLE, California Portland Cement learned
                                from ENERGY STAR about a U.S. Department of Energy-
                                funded research project on energy-efficient motors. The
                                project provides rebates, so the cement manufacturer
                                will receive a number of new motors gratis in return for
                                providing readings to the researchers four times per year.

Keeping the energy management program alive and fresh
is perhaps the greatest challenge. Sustaining the program
requires ensuring that managers and employees are
aware of the results. Maintaining motivation also may
entail offering recognition and rewards.
   • Your organization's program has lost momentum,
    and poor energy habits are creeping back in.
   • Energy efficiency needs to become a part of
    the culture of your organization, integrated into
    its management systems, so thatthe energy
    program is self-sustaining and not just a flash
    in the pan that is vulnerable to cost-cutting.
   • The action plan's communications strategies
    should celebrate successes and target key
    audiences, including staff, stakeholders, and
   • A system of incentives, including individual-
    and team-focused recognition, can encourage
    staff to improve performance.
Jim Green says the
biggest challenge is
sustainability. "Our
mission is to keep
repeating the message
and educating our
tenants on the
advantages of energy
efficiency, and standing
ready to deliver when
they're ready to go

  FOR EXAMPLE, Vincent
  Gates, energy manager
  at Merck & Co., Inc.'s
  facility in Rahway, NJ,
  says, "Creating a
  unique name and logo
  is critical for building
  awareness of your
  program and market-
  ing it effectively. We
  include our program
  logo and the address
  of our internal energy
  web page on all energy
  communications. We
  have begun adding
  the  phrase, 'Merck is
  now an ENERGY STAR
  Corporate Partner,' and
  including the ENERGY
  STAR logo as well. The
  greater recognition of
  the  ENERGY STAR logo
  has caught employee
  interest and helped to
  increase recognition of
  our  program."
Publicizing the results of the energy management program
helps to integrate it into the organization's culture and
foster organizational pride.  If you have a good thing going,
let others know.

Getting across the benefits of saving energy and the results
of your program takes effective communications skills.
Possible newsletter subjects include facility achievements
and brief summaries of assessment reports. You may be
able to link your news to corporate or world events. Also
consider asking your organization's public relations depart-
ment for advice on your communications plan.

Methods for communicating results include internal
progress reports, reports on assessments, emails, pay
statement mailers, and publications such as newsletters,
magazines, videos, the organization's intranet, posters,
flyers, energy calendars posted on bulletin boards, and
meetings and conferences.

For celebrating successes externally, press releases and
the World Wide Web are your best bets.

DO: Promote your energy program by using the ENERGY
STAR Partner mark in conjunction with your logo.

DO: Pace your delivery of good news and always have
something worthwhile to say.

DO: Tailor your messages and communications for
your different target audiences, such as management,
employees, and outside stakeholders.

DO: Promote the program at a grassroots level
by educating employees about your organization's
partnership with ENERGY STAR.

Recognizing the contributions of teams and individuals
helps to reinforce the value of energy efficiency and
encourage even greater improvements. Acknowledging
successes will help sustain motivation. Verbal appreciation,
simple forms of thanks ranging from coffee mugs to formal
written commendations and certificates, plaques presented
at award ceremonies, salary increases, and stock options
can all act as motivators.

Consider recognition to individuals, departments, teams,
and facilities. Look at incentives from the point of view of
employees and ask: "What's in it for them?" Ensure that
all recognition and rewards are equitable and based on
published criteria. You may choose to recognize the best
energy-saving ideas, the greatest reductions in energy
use, and savings increased by "x" amount.
Food Lion's Energy
Awareness Plan
rewards maintenance
staff by awarding
quarterly bonuses
for improving energy
performance. Keeping
maintenance staff
motivated to save
energy has helped
Food Lion reduce its
utility cost per store
per week by 5.5

    recognized 3M with
    the 2005 ENERGY
    STAR Partner of Year
    Award for Sustained
    Excellence. For the
    past five years, 3M has
    reduced its energy use
    by 4 percent annually
    across all facilities for
    more  than $190 million
    in savings.
James T. Mahan, senior vice
president-engineering for3M,
accepts an ENERGY STAR Award
for Sustained Excellence-Energy
Management from EPA's Kathleen
Hogan at the 2005 Partner of the
Year Award event.
External recognition from a third party (government
agencies, nonprofits, the media, and trade associations)
validates the importance of the energy program, provides
satisfaction to those who earned the award, and enhances
your organization's public image. A solid reputation
contributes to your organization's competitive advantage
by making it more attractive to customers, current and
potential employees, lenders, and business partners.

Awards, particularly from an outside organization, are
one of your most powerful tools for persuading senior
management to support the energy program. Besides
creating a sense of ownership by the corporate officer, the
award attracts media attention and positive PR for the

ENERGY STAR brings credibility to an organization's
energy management program. Once an organization wins
an ENERGY STAR award or earns the ENERGY STAR
for a facility, it becomes an unquestionable symbol of
commitment to achieving excellence in energy performance.

DO: Invite corporate officers to accept awards at high-
profile industry and government conferences.

One test of whether your organization's energy
management program is successful is whether the
energy director would be replaced if he or she left or was
promoted. Another test is whether your organization's
energy use is showing continuous improvement despite
changes in key personnel.

DO: Recharge commitment by reviewing and updating
your organization's energy policy to ensure that it is not
just regarded as corporate wallpaper.
FOR EXAMPLE, between 1997 and 2004, Toyota
decreased energy use per unit of production (cars
going out the door) by 20 percent for all its North
American plants. "Everyone has responsibility for
improving the environment," says Toyota's Bruce
Bremer, "not just at work, but also at home."
• The energy
  director has been
  promoted to another
  position orthe
  senior manager
  who served  as the
  program's champion
  has retired. The
  new senior manager
  lacks a personal
  commitment to
  energy efficiency.
• The organization's
  energy management
  program should
  contain a built-in
  plan for succession,
  such as a provision
  for the energy team
  and organization
  executives to select
  a new energy


Participation in ENERGY STAR presents an excellent
opportunity for an organization to benchmark itself against
peers, reduce costs, and improve and gain recognition
for its voluntary energy efficiency accomplishments.
Producing an energy management program with results
that the entire organization can be proud of can lead to
recognition for the team and management respect for the
energy manager.

EPA's ENERGY STAR program offers the following
information and resources for creating effective teams:
• Sample briefings
• Financial analysis calculators
• Communications materials
• Tracking and benchmarking training
• Technical guidance
• Networking
• Access to energy professionals

Visit or contact:

U.S. Environmental Protection Agency
1200 Pennsylvania Avenue NW (6202J)
Washington, DC 20460




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                                                         Document Number 430-K-05-007