NYSERDA Announces $10 Million for Energy Efficiency at Industrial and Manufacturing Facilities

Funding supports clean energy projects at large and medium-size industrial facilities and is expected to yield over $12 million in annual savings

Efficiency efforts will boost the bottom lines of job-creating businesses and reduce greenhouse gas emissions equivalent to taking 16,800 cars off the road

September 12, 2016

The New York State Energy Research and Development Authority (NYSERDA) today announced $10 million for two new clean energy initiatives to support energy efficiency and reduce costs at industrial and manufacturing facilities. The On-Site Energy Manager and Strategic Energy Management initiatives are designed to improve business performance and operations of participating facilities while reducing greenhouse gas emissions.

The two initiatives support cutting-edge energy management in New York's industrial and manufacturing base, which accounts for 7.4 percent of total energy use in the State. As energy is one of the largest operational costs for manufacturers, investing in process and energy efficiency improvements will lower costs and improve overall competitiveness. Facilities that participate in NYSERDA's On-Site Energy Manager and Strategic Energy Management initiatives are expected to save a total of $12.9 million annually through recommended efficiency measures.

The programs advance Governor Cuomo's Reforming the Energy Vision (REV) to achieve a clean, resilient and affordable energy system for all New Yorkers. By reducing the overall amount of electricity the state consumes, they also support New York's Clean Energy Standard, which mandates that 50 percent of all electricity used in the State come from renewable sources by 2030.

New York State Chairman of Energy and Finance Richard Kauffman said, "Large energy users, such as those in the industrial and manufacturing sector, understand how incorporating energy efficiency into core business processes can reduce costs. By supporting personnel and their efforts to address energy challenges of these facilities and plants, we advance the State's energy objectives and help companies and manufacturers improve their results."

Launching today, the On-Site Energy Manager initiative will provide $7 million in cost-share funding in partnership with large and medium-size industrial facilities to demonstrate the benefits of hiring a dedicated, full-time on-site energy manager. Through a competitive process, 30 facilities will be selected to receive NYSERDA support to put a contractor or permanent employee in that role for one year. The on-site energy manager will help the facilities make productivity improvements that drive energy efficiency and reduce energy use on a sustainable, ongoing basis. For more information on On-Site Energy Manager, visit on-site energy manager.  

Launching in a few weeks, the Strategic Energy Management initiative will provide $3 million to support continuous improvement demonstrations at 20 manufacturing facilities statewide that have high energy usage and costs. NYSERDA will provide consultants to teach facility personnel how to reduce energy intensity over time, systematically achieve energy savings goals and implement smart, sustainable energy management practices that lead to ongoing cost savings for the business.

John B. Rhodes, President and CEO, NYSERDA, said, "Often the best path for an industrial facility to achieve its sustainability goals is to incorporate smarter energy management as an integral element of its continuous work to improve business operations. As part of Governor Cuomo's REV strategy, these innovative initiatives aim to help industrial and manufacturing facilities improve process efficiency and cut energy costs, thus reducing carbon emissions and helping our manufacturers compete."

The On-Site Energy Manager and Strategic Energy Management initiatives are anticipated to cut carbon emissions by 1.2 million metric tons over 15 years, the equivalent of taking 16,800 cars off the road. Funding for these initiatives will come from the State's 10-year, $5.3 billion Clean Energy Fund, which supports clean energy market development and innovation and is a major component of REV.

Following completion of these initiatives, NYSERDA will establish a list of qualified energy-focused process consultants who can provide energy management expertise to industrial and manufacturing facilities.

Randall Wolken, president, The Manufacturers Association (MACNY), said, "MACNY supports industrial companies in Upstate New York and is engaged with them to continuously reduce their costs and improve their operations. We support the opportunity presented by NYSERDA's industrial energy efficiency Strategic Energy Management initiative. As energy is an expensive resource for manufacturers, the strategic management of energy is key to New York manufacturers remaining competitive with those in other states and countries."

Jay Dietrich, distinguished engineer: Energy and Climate Stewardship, IBM, said, "At IBM, our New York locations have used a strategic energy management approach based on our Environmental Management System requirements and rigorous energy management processes to conserve or avoid the use of over 110,000 MWH of energy from June 2012 to June 2016; 4.5 percent of the total consumption over this period. As other New York facilities embrace a disciplined energy management program, they can realize operational savings and improved efficiency and reduce their environmental impact."

Michael F. Sillero, energy manager, Finch Paper LLC, said, "An On-Site Energy Manager is a key resource to accelerate a company's energy efficiency efforts. Through identifying, prioritizing, and driving critical energy efficiency projects and programs, an On-Site Energy Manger will enhance your company's competitiveness and sustainability, while your bottom line benefits multifold."

Today's launch of these initiatives for the industrial and manufacturing sector is the most recent NYSERDA action as it reshapes the State's energy efficiency, clean energy and energy innovation initiatives under the CEF. This launch follows the recent introduction of other innovative initiatives that take a smarter approach to increasing energy efficiency in a variety of settings, including existing and new multifamily housing, commercial new construction, and in local government buildings and communities. 

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