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Texas-Size Energy Savings!

A Step-by-Step Assessment Guide

and Calculator for Small and Medium-Sized Manufacturers

Kathey Ferland Warren M. Heffington

Nicholas Kampschroer David Huitink
University of Texas at Austin Randy Kelley
Center for Energy and Environmental Texas A&M University
Resources Mechanical Engineering Department
Texas Industries of the Future Energy Systems Laboratory

Funding for this Project Provided by:

Texas Commission on Environmental Quality and
the US Environmental Protection Agency. Additional funding provided by the
US DOE Office of Energy Efficiency and Renewable Energy through a contract with the
Texas State Energy Conservation Office

If you have any questions about this manual or the associated spreadsheet, please email them to or call 512-232-4823

Table of Contents

DISCLAIMER .......................................................................................................4


1: INTRODUCTION AND PURPOSE ...................................................................5

1.1 Organization of the Document and Spreadsheet ..................................................... 5

1.2 Assessing Your Opportunities ................................................................................... 7

1.3 The Walk-Through and Equipment Requirements................................................. 7


2.1 Texas’s Voluntary Improvement Program: Clean Texas, Cleaner World ........... 9

2.2 Environmental Management Systems and Energy................................................ 11


3: QUANTIFYING YOUR ENERGY COSTS ......................................................13

3.1 Energy Management................................................................................................. 13

3.2 Terms and Analysis................................................................................................... 14

3.3 Electric Deregulation and Incentives ...................................................................... 24

3.4 Periodic Review......................................................................................................... 25

4: ASSESSING YOUR OPPORTUNITY.............................................................26

4.1 Identifying Major Energy Consuming Equipment................................................ 26

4.1.1 Air Compressors .................................................................................................. 29
4.1.2 Motors .................................................................................................................. 30
4.1.3 Combustion and Steam Systems.......................................................................... 30
4.1.4 System Controls ................................................................................................... 32
4.1.5 Lighting................................................................................................................ 33
4.1.6 Chillers................................................................................................................. 33
4.1.7 Climate Control.................................................................................................... 34
4.1.8 Pumping Systems................................................................................................. 34

4.2 Plant Assessment Questions ..................................................................................... 36

4.2.1 Air Compressors .................................................................................................. 36
4.2.2 Motors .................................................................................................................. 37
4.2.3 Combustion and Steam Systems.......................................................................... 37
4.2.4 System Controls ................................................................................................... 39
4.2.5 Lighting................................................................................................................ 40
4.2.6 Demand Limiting ................................................................................................. 40
4.2.7 Chillers................................................................................................................. 41
4.2.8 Building Envelope ............................................................................................... 41
4.2.9 Combined Heat and Power (CHP)....................................................................... 42
4.2.10 Additional Questions ......................................................................................... 43

4.3 Typical Projects to Increase Energy Efficiency and Reduce Costs...................... 44


5.1 Organizations, Training and Technical Assistance ............................................... 61

5.2 Funding for Improvements ...................................................................................... 62

5.3 Tools ........................................................................................................................... 63

5.4 Reference Documents ............................................................................................... 63

5.5 Websites ..................................................................................................................... 64

5.5.1 US Department of Energy.................................................................................... 64
5.5.2 National Organizations and Campaigns to Improve Energy Efficiency (Industry)
....................................................................................................................................... 65
5.5.3 Environmental Management Systems.................................................................. 65
5.5.4 Texas Electric Markets ........................................................................................ 65


The contents of this report are offered as a guide. The University of Texas at Austin,
Texas A&M University, the Texas Engineering Experiment Station, and the Texas
Commission on Environmental Quality, as well as all technical sources referenced in this
report, do not (a) make any warranty or representation, expressed or implied, with respect
to the accuracy, completeness, or usefulness of the information contained in this report,
or that the use of any information, apparatus, method, or process disclosed in this report
may not infringe on privately owned rights; (b) assume any liabilities with respect to the
use of, or for damages resulting from the use of, any information, apparatus, method or
process disclosed in this report. The report does not reflect official views or policy of the
above-mentioned institutions. Mention of trade names or commercial products does not
constitute endorsement or recommendation of use.


The Texas Industries of the Future, located at the University of Texas at Austin’s Center
for Energy and Environmental Resources, Texas A&M University, and the Texas
Engineering Experiment Station would like to acknowledge the following organizations
and individuals for their contributions and support:
• Funding for the project was provided by two organizations. The Texas Commission
on Environmental Quality’s Pollution Prevention and Industry Assistance Section and
the US EPA provided primary funding for the project. Thanks to Ken Zarker and
Grace Hsieh for recognizing the importance of energy efficiency as a voluntary goal
in the Clean Texas, Cleaner World program. The project was also funded by the US
Department of Energy Industrial Technology Program under a contract with the State
Energy Conservation Office, Felix Lopez, Senior Engineer.
• Rutgers University’s Center for Advanced Energy Systems and Dr. Michael Muller,
for use of their document “Self-Assessment Workbook for Small Manufacturers”,
which served as the initial model for this document. Portions of Section 3 of this
document were drawn extensively from this earlier work.
• Reviewers included Jim Eggebrecht, Engineering Systems Laboratory, Texas
Engineering Experiment Station; Atiq Sediqi and Richard Smith, Texas Commission
on Environmental Quality, and Vince Torres, University of Texas, Center for Energy
and Environmental Resources.
• Technical input in their areas of expertise was provided by: Riyaz Papar, Hudson
Technologies (chillers); Dan Bullock, HARC’s Combined Heat and Power Regional
Application Center (CHP); and Kurt Middelkoop, Texas Manufacturing Assistance
Center (EMS).

1: Introduction and Purpose
The purpose of this manual is to provide managers or engineers at small or medium-sized
manufacturing plants with a list of questions and calculations so that they can quickly
assess whether they have opportunities for energy and cost savings at their facility.
Typically, engineers and managers at these types of facilities have neither the time nor
the data to conduct an in-depth analysis of their energy systems. However, case studies of
energy project implementation have shown that many facilities can achieve energy cost
savings of up to10-15% with little capital investment. The purpose of this document is to
assist these managers to identify where their 15% of energy cost savings might be found
at their facility. The spreadsheets accompanying this manual will calculate the potential
savings for your plant, based on your inputs, for 16 projects commonly identified at
manufacturing plants. These 16 projects are based on results from hundreds of plant
assessments conducted in Texas by the U.S. Department of Energy’s Industrial
Assessment Centers.

1.1 Organization of the Document and Spreadsheet

This document presents a set of diagnostic questions that address the major energy using
equipment at small and medium-sized manufacturing facilities. These diagnostic
questions will guide the reader to those areas of the plant that represent a significant
opportunity for energy cost savings. For each of these topics, the most common types of
projects have been identified from the US DOE Industrial Assessment Center database on
projects in Texas. For each project, the manual describes the data input needs, so that the
reader can use the spreadsheets to calculate potential savings. In some cases, defaults are
provided if facility data cannot be determined.

The approach in this manual has been to keep information needs for the
TIP assessment as simple as possible, while still giving you reliable estimates.

If an in-depth assessment is desired, there are extensive tools and resources on the US
DOE’s Industrial Technologies program website that can assist an engineer to identify
savings from energy projects or energy system optimization. Technical, web and
organizational resources are described further in Section 5. For the purposes of this
document, it has been assumed that the users of this manual will not have on-site
personnel with extensive energy management expertise, nor the time to gather extensive
data. Instead, the manual will take you through a series of questions that will help you to
identify common opportunities that have been found at similar types of facilities, and,
based on your inputs, the accompanying spreadsheets will estimate energy, cost and
emissions reductions from project implementation. The goal is to give a manager or
engineer at a facility enough information to screen projects economically for possible

Section 2 describes the relationship of energy to environmental management systems.

This linkage is underscored in the State of Texas by the Texas Commission on
Environmental Quality, the state’s lead environmental agency. TCEQ, under direction

from the State Legislature, encourages facilities of all types to adopt Environmental
Management Systems (EMS). Because energy usage has an environmental component,
either directly through combustion emissions or indirectly, through use of electricity to
power motor driven systems, energy efficiency is often a goal at facilities that are
members of the state’s voluntary environmental leadership program, Clean Texas,
Cleaner World. This document will assist members of that voluntary program to identify
energy-efficiency projects and calculate their corresponding cost savings and energy

Section 3 shows you how to calculate your energy unit costs and provides tips on
reducing your energy bill, even before you start looking at reducing energy usage. Your
electrical energy and demand cost can also be calculated by the accompanying
spreadsheet. However, default costs are also provided in the spreadsheet.

Section 4 turns to identifying how your facility uses energy and your opportunities for
improvement. Section 4 includes a list of questions specific to energy-using equipment.
By going through this checklist, you can identify which systems are likely wasting energy
and thus, warrant further scrutiny. Following the diagnostic questions is a set of 16
projects that are keyed to the questions. For each of these projects, a spreadsheet has been
developed which will enable the user to estimate energy reductions, cost savings and
emission reductions for a similar project at their facility.

These projects were selected based on their frequency of inclusion in the US DOE
Industrial Assessment Center database for projects in Texas. Thus, they are the energy
efficiency projects most often identified at plants visited by the US DOE Industrial
Assessment Centers in Texas.

The list of diagnostic questions was developed based on a review of a self-assessment

document from Rutgers University, US DOE case studies and fact sheets, websites,
documents, and discussions with technology experts. These questions are not meant to be
exhaustive and will not identify all possible inefficiencies. They are targeting the most
common inefficient practices. With the exception of Project 7, the projects to address
these inefficiencies will not require extensive technical expertise or specialized training.
With the information from the spreadsheet, managers will be equipped to move forward
with projects that will pick the “low-hanging fruit” that is growing at their facility.

Section 5 presents resources that the reader can use to follow up on the opportunities that
go beyond the scope of this document. Resources are divided into five areas:
Organizations, Training and Technical Assistance; Funding for Implementation; Tools;
Reference Documents; and Websites. This section focuses on those resources of special
interest to Texas manufacturing plants.

Calculations to estimate your costs savings, energy reductions and emissions reductions
are presented in a separate spreadsheet file for the 16 projects described in Section 4.
Projects included in the spreadsheet file address compressed air systems, motors,
combustion and steam systems, controls, lighting, reducing demand charges, and chillers.

This spreadsheet will also assist you in calculating your electrical energy and demand

1.2 Assessing Your Opportunities

The information in this document is organized so that you can follow a four-step process
presented below.

Steps to Calculating Your Opportunity Location in Document

Step 1: Quantify Your Unit Energy Costs Section 3
Step 2: Develop List of Major Energy Section 4.1
Consuming Equipment
Step 3: Assess Your Opportunity Areas for Section 4.2
Improving Efficiency
Step 4: Calculate Your Energy, Cost and Section 4.3 and Spreadsheet
Emission Reductions from Projects

Steps 3 and 4 can be applied sequentially for all equipment or iteratively, assessing the
opportunity and then calculating energy, cost and emissions reductions for one project at
a time. The material is organized by plant equipment; thus if you do not have certain
types of equipment at your site, it will be easy to skip sections.

1.3 The Walk-Through and Equipment Requirements

It is suggested that the person conducting the assessment of the facility start at the
entrance of raw materials into the facility and follow the material through the facility,
along the way observing the plant energy systems. The assessor will answer questions
about the energy systems that will indicate whether a potential for savings exists. For the
most common inefficiencies, they will be referred to a related project, which will list the
data needed for project evaluation.

Before you start your facility walk-through in Section 4.2, make sure you will have all
the equipment that you need to do the measurements. The following list is based on the
example projects in Section 4.3. You will need this equipment to measure how well
equipment is currently performing. The data gathered using this equipment will be an
input to the spreadsheet calculations.

If the assessor takes the complete list of assessment questions (Section 4.2), project
descriptions (Section 4.3) and the equipment with them, they will be able to complete the
assessment in one walk-through.

Table 1.1: List of Equipment for the Assessment

• Thermocouple or thermometer for:

o Temperature of liquids
o Air Temperature
o Surface Temperature of machines, furnaces, steam lines, etc.
• Light Meter
o To measure lighting levels in different areas of plant.
• Tape Measure
• Stopwatch
• Pressure Gauge
o Fitted for quick disconnect to use when system pressure
gauge is inoperable or unavailable.
• Ultrasonic Detector
o To detect air and steam leaks (many air and steam leaks can
be detected with the naked ear; an ultrasonic detector would
not be needed for these).

2: Energy-Efficiency Goals and Environmental Improvement
If your facility is typical, you have opportunities for increasing the efficiency of your
energy use. And if your facility hasn’t reviewed its utility and process systems for
efficiency in the last two years, the savings could be substantial. Increasing your facility’s
energy efficiency will yield two key benefits: reduced costs for energy and reduced
emissions from power generation, either at your site or at the power generation site.

The total cost savings opportunities may be surprising. Studies by the Department of
Energy have shown that savings of 10-15% of your energy costs can be expected without
making significant capital investment.1

Efficient energy practices will also benefit the environment. Consumption of non-
renewable resources will be reduced and pollution associated with energy generation will
decrease. However, sound energy management practices are not limited to reducing
demand. The use of green energy sources such as wind energy and biogas (e.g., methane
from renewable sources) will also provide an environmental benefit if it substitutes for
power from fossil fuel sources.

If you have onsite combustion units and are concerned about your NOX emissions as well
as fuel costs, you may wish to download the DOE software tool “NOX and Energy
Assessment Tool (NxEAT)”
That tool allows you to input data specific to your combustion equipment and analyze
how potential changes to your combustion equipment operations will affect energy usage
and emissions.

Because energy and the environment are inter-related, facilities seeking to reduce their
environmental impact will find consideration of the impacts of their energy usage key.
Members of voluntary environmental improvement programs, such as the Texas
Commission on Environmental Quality’s (TCEQ) Clean Texas Cleaner World (CTCW)
program, often make commitments to energy efficiency in their improvement goals. One
of the purposes of this document is to assist these members to identify and quantify the
cost, energy and emissions reductions they might achieve by implementing efficiency
projects at their facility. The CTCW program and Environmental Management Systems
are described in the following sections.

2.1 Texas’s Voluntary Improvement Program: Clean Texas, Cleaner World

The Texas Commission on Environmental Quality’s Clean Texas, Cleaner World

(CTCW) is a voluntary environmental leadership program to protect air, water, and land
resources in Texas.2 Depending upon their level of membership, CTCW’s 350-plus
members have committed to prevent pollution, promote sustainability, increase internal
environmental awareness and/or host community environmental projects.

DOE Industrial Technology Program Peer Review, April 2004
“Clean Texas Progress Report” –

In joining CTCW, an organization commits to voluntary goals to measurably reduce
environmental impact that go beyond that mandated by regulation. This reduction in
impact may result from a reduction in the consumption of resources, a reduction in
pollutant output, or habitat protection. Members joining at the Leader levels also agree to
implement a performance-based EMS that meets the CTCW standards. These standards
may be found at the CTCW website

CTCW extends a number of benefits and incentives to its members, including (but not
limited to) the following:
• Recognition for Exceptional Environmental Performance
• Networking Opportunities
• Technical and Program Assistance
o Primary contact at TCEQ
o Site assistance visits by the TCEQ Pollution Prevention Team
o Assistance in developing an EMS
o Discounts on training opportunities
o Assistance in outreach events such as Pollution Prevention Week, Texas
Recycles Day, and Earth Day
o Mentoring opportunities from other Clean Texas, Cleaner World members
• Regulatory Benefits (Leader Levels)
o Modification of state or federal regulatory requirements that do not charge
emission or discharge limits
o Adjustment to methods or frequency in scheduling and conducting
compliance inspections
o Ten-percent credit on compliance history score
o Exemption from pollution prevention planning under the Waste Reduction
Policy Act
o Accelerated access to TCEQ program information
o Single point of contact at TCEQ for innovative activities
o Low inspection priority for EPA inspections (National Leaders only)
o Expedited permitting
o On-site technical assistance
o Recognition for your efforts and use of the CTCW logo
o Other organization-specific incentives
• Reduced fees for training

In 2004, CTCW members reported reducing their air and waste emissions by 47,715 tons,
their water consumption by 664 million gallons, electrical energy usage by 37 million
kilowatt-hours of electrical energy, thereby saving $6.9 million.3

Organizations at the partner or leader level will find it useful to evaluate their energy
usage as part of their goal setting. The implementation of a performance-based EMS
provides a facility with a structured approach for evaluating whether energy use is an
important aspect of a facility’s operation.

”Annual Report 2004” Clean Texas, Cleaner World, Texas Commission on Environmental Quality.

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2.2 Environmental Management Systems and Energy

An Environmental Management System (EMS) is a system that a facility employs to

manage any and every aspect of its operation that relates to air, water, or land.4 An EMS
should provide for worker and community safety in addition to encouraging smart
environmental practices.

When you develop an EMS for your facility, you will identify all the environmental
aspects from your facility’s operations. Aspects include activities such as energy use,
water use, material input use, air emissions and solid waste generation. Based on criteria
the facility develops, a facility will then determine which aspects are the most important
for it to address in its management system. The document, “A Guide to Developing an
Environmental Management System for a Small Business” by the TCEQ provides an
easy-to-understand guide for creating an EMS at a small facility.5 Table 2.1 illustrates a
few of the possible Environmental Aspects, including energy, that one might find at a
small manufacturing plant.

Table 2.1: Identification of Environmental Impacts (Excerpt)6

Operation Environmental Aspect Actual and/or Potential
(Quantified if Possible) Environmental Impacts
Plastic-part Manufacturing Plastic part solid waste: Depletion of
(Injection molding and averages 300 lb/month landfill space
plastic part finishing)
50 lb/1000 units Air Degradation of air
emissions from transport Quality

Energy use: Depletion of coal,

5,000 kWh/month for oil, natural gas,
manufacturing + sales, and/or creation of
or 833 kWh/1000 units nuclear waste
Water use (which in this Depletion of water
case creates wastewater): Supply
6,000 gal/month, or
1000 gal/1000 units

Use of virgin paper Depletion of

cardboard and forests and landfill
nonrecyclable foam space
packaging pellets

There are a number of reasons a facility might consider implementing an EMS:

• Cost reduction
• Risk reduction

“A Guide to Developing an Environmental Management System for a Small Business” GI-304, Aug.

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• Supply chain requirements
• Improved environmental compliance
• Enhanced reputation

The reasons why you might decide to do an EMS are beyond the scope of this document
and there are numerous resources that discuss the steps in preparing an EMS. But if
energy is one of your aspects and you want to work on it, then you’ll find the steps in
Section 3 and 4 of the document will help you identify projects and quantify the savings.
After you complete the walk-through in Section 4, you can fill in the spreadsheet
accompanying this document and it will calculate your cost, energy and emission
reductions resulting from projects you have identified. These estimates can help you to
evaluate whether projects make economic sense, as well as generate estimates on impacts
for CTCW reports to TCEQ.

CTCW members who commit to energy-efficiency goals will report only

TIP their reductions in on-site energy usage or on-site emissions as part of
their reporting under the CTCW program.

Section 5 contains a number of resources available to small and medium-sized Texas

facilities interested in implementing an EMS.

EMS Development Leads to Energy Reductions

In May 2004, the Texas Manufacturing Assistance Center worked with Pilgrim’s
Pride Chicken at their freezer storage facility in Pottsboro, Texas to implement
the requirements of ISO 14000. The implementation process included a review of
all processes that could have an impact on the environment. TMAC used an
aspect-ranking tool to prioritize and identify opportunities to reduce risks,
improve compliance and identify ways to reduce the facility’s impact on the
environment. When the ranking was completed, the use of electricity was
identified as a major aspect at this facility.

Opportunities for improvement included turning off over 200 lights that were not
needed, adjusting refrigeration controls, and installing a “Cool Roof” technology.
Savings from these three projects was estimated at $68,000 a year.7

Texas Manufacturers Assistance Center, Kurt Middelkoop,

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3: Quantifying Your Energy Costs8
You will need the information developed in this section to calculate the potential savings
for your projects. Tips are also provided that can reduce your energy costs before you do
any efficiency projects.

3.1 Energy Management

To meet the challenge of increasing costs for energy, a successful company must have an
energy management program in order to consistently take advantage of opportunities to
improve their energy efficiency and reduce the costs. Several basic steps are required for
effective energy management:9

• Management Commitment
• Data Collection (Equipment and Energy Bill)
• Analysis of Opportunities
• Implementation of Opportunities
• Continued Feedback and Analysis

The energy management program must have the commitment of management for it to
produce a long-term increase in energy efficiency. A brief, early show of support will
only result in small, temporary improvements. Management must design the efficiency
program as a part of its regular, overall business management system. It is also very
important to communicate to all staff the costs of energy and fuel, and consequences of
future energy shortages, in order to create plantwide energy awareness.

Accounting for energy and its cost is an essential component of an energy management
program. If the use of energy is not carefully monitored, energy will be spent freely—and
unnecessarily. Graphs of energy use will help plant personnel understand clearly how
much is being used and how much it is costing the company. The graphs are simple to
prepare and updating them should be convenient; updating as the monthly utility bills
arrive will be frequent enough to track changes without being time-consuming. Each type
of fuel or energy used will require its own graph.

Data analysis will be greatly aided if the records use a standard format for all the
company’s divisions and if the different energy units are converted to common energy
units such as the Btu (British thermal unit). By comparing the cost of various fuels in one
common set of units, the true cost of each fuel can be determined. Useful conversion
factors are in Table 3.1.

Portions of Sections 3.1-3.3 are drawn from the document “Self-Assessment Workbook for Small
Manufacturers”, Version 2.0, October 2003, Center for Advanced Energy Systems, Rutgers University.
A more detailed approach can be found in the “MSE 2000: A Management System for Energy” published
by Georgia Institute of Technology, available from ANSI.

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Table 3.1: Energy Conversions
1 kWh 3412 Btu
1 therm 100,000 Btu
1 cubic foot natural gas 1000 Btu*
1 gallon #2 oil 140,000 Btu*
1 gallon #4 oil 144,000 Btu*
1 gallon #6 oil 152,000 Btu*
1 gallon propane 91,600 Btu*
1 ton coal 28,000,000 Btu*
1 boiler horsepower 9.81 kW
1 horsepower 0.746 kW
1 ton refrigeration (RT) 12,000 Btu/hr
*Varies with supplier

3.2 Terms and Analysis

In analyzing your bills, the following should be considered:

Avoided Cost: The avoided cost is the cost per unit of energy consumption that can be
saved from not purchasing a unit of energy.10


Determining the cost of electricity to use in evaluating savings from energy efficiency
projects can be confusing. Monthly electricity bills for industry typically have at least two
important components: 1) charges based on energy consumption, measured in kilowatt-
hours (kWh); and 2) charges for capacity (the size of the transformers, wires, and other
system features serving your facility). Capacity charges are also known as load or
demand charges, and typically are billed in terms of kilowatts (kW) or kilovolt-amperes

Cost of Demand: Monthly spikes in demand can drastically increase your cost of
electricity (See Figures 3.1 and 3.3 for an illustration). The second cost component of an
electric bill, demand, is based on the highest rate of consumption during the billing
period. It is usually defined by the electric utility as the rate energy is consumed in
kilowatts (kW) during fifteen-minute periods throughout the month. The maximum
consumption for a fifteen-minute period is recorded, and multiplied by a cost factor
($/kW),11 which can vary considerably depending on whether the demand occurs during
the on-peak (daytime hours) or off-peak (nighttime hours). The demand charge is then
added to your consumption and other costs. Demand costs often can make up as much as
30 or 40% of the total electric bill. If your facility has significant spikes in demand, you
may find the suggestions in Project 15 helpful.

Beecher, Janice, “Avoided Cost: An Essential Concept for Integrated Resource Planning”, Water
Resources Update No. 104, Summer 1996. p. 28.
TXU Energy website,

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Fixed Charges: A third, less-important feature of your electricity bill, is monthly fixed
charges such as customer or meter charges. If you can identify these charges, subtract
them from the total; generally, energy efficiency projects will not impact them.

Steps to Estimate Your Demand and Energy Consumption Charges: The spreadsheet
file accompanying this document provides you with step-by-step instructions on how to
calculate your energy and demand charges and will perform the calculations. In order to
keep this analysis simple, these estimates are based on average costs, rather than the
marginal price of electricity (the cost of the last unit of electricity purchased). For the
purposes of the cost analysis presented in the spreadsheet, these estimates will be
sufficient to give you an idea of whether a project is economically attractive for your

Lastly, remember that there are many variations in electrical charges. Whether you are
buying “deregulated” energy makes a big difference. Some customers may not pay a
demand charge at all, or may pay about half what a neighbor pays. Demand may be
charged by the T&D company (transmission and distribution, the “wires” company) and
not by the actual energy supplier. If you get lost, call your utility account representative,
let them know you are doing a self-assessment for energy efficiency and ask for help in
interpreting your bills, so that you can calculate your demand and energy consumption

The worksheet in the spreadsheet file accompanying this document will

TIP enable you to calculate the information used to generate tables of cost
data, such as Table 3.2. We suggest you complete the spreadsheet on
“Steps to Calculate Your Demand and Energy Charges” before proceeding
to Section 4.

Having tables and plots of the data you are working with makes the analysis easier and
will allow you to spot revealing trends. You can enter the data from the monthly tables
into an annual summary, shown in Table 3.2. You can then use the information from
Table 3.2 to generate graphs such as those displayed in Figures 3.1, 3.2, and 3.3.

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Table 3.2: Electrical Billing Summary
Consumption Demand
Date Consumption Cost Peak Demand Cost
(months) kWh ($) KW ($)
Jan 198,800 $12,975 948 $8,759
Feb 331,200 $20,374 912 $8,427
Mar 245,000 $13,951 710 $6,560
Apr 305,600 $18,902 948 $8,759
May 368,000 $22,621 1,222 $11,290
Jun 318,400 $19,651 888 $8,205
Jul 289,200 $18,855 890 $8,223
Aug 335,600 $21,720 964 $8,907
Sep 367,600 $23,638 952 $8,796
Oct 387,200 $25,384 1,144 $10,570
Nov 350,000 $22,583 824 $7,613
Dec 374,400 $24,701 1,105 $10,210
Totals 3,871,000 $245,355 11,507 $106,319

In Figure 3.1, bars represent consumption while the points on the graph represent
demand. It does not appear that there are any significant seasonal trends in electrical
consumption. The inconsistent demand indicates that the process schedule may not be
constant. This facility could save money by streamlining its operations in order to reduce
the demand, and decrease its variation. In addition, notice that demand and electrical
consumption are not directly related. The largest demand spike (May) does not occur (in
this case) in the month with highest consumption (October).

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450,000 1400

Consumption kWh
400,000 Peak Demand kW


Electrical Consumption

Electrical Demand





0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billing Period

Figure 3.1: Annual Electrical Consumption




Demand (kW)




Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billing Period

Figure 3.2: Annual Electrical Demand

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$25,000 Consumption ($)

Demand ($)

Cost ($)




Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billing Period

Figure 3.3: Annual Electrical Costs

The sample analysis for electricity above and at the end of this section show examples of
how to calculate the cost of consumption for electricity, natural gas and #2 fuel oil.

Power Factor:12 Your electric bill may have a charge for reactive power. This will
typically be significant for your facility only if five percent or more of the bill is a penalty
charge for having a low power factor. Typically, it is significant when the great majority
of your electricity is consumed by electric motors.

The power factor can be improved by installing banks of capacitors within

TIP the plant or providing a matched capacitor to each motor to offset their
reactive effect.

The diagram below will help explain what power factor is and why an electric utility is
concerned with your facility’s power factor. Power Factor is the ratio of Real Power,
measured in kilowatts (kW) to Apparent Power, measured in kilovolt-amperes (kVA).

Trabachino, Carole, “Energy Guidebook (Establishing an Energy Management Program and Identifying
Energy Savings Opportunities).” OIPEA, December 2000. p. 43.

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• Apparent Power is the amount of power provided to your facility by the electric

• Reactive Power is non-working power, and is measured in kVARs. Inductive

loads (e.g. transformers, electric motors, and high intensity discharge lighting)
require current to create a magnetic field. The current used to create the magnetic
field is required to operate the device, but does not produce work. Inductive loads
are a major portion of the power consumed in industrial facilities.

• Real Power is the work done by the device, and is measured in kW. If your
facility draws 100 kW Real Power and 100 kVAR Reactive (magnetizing) Power,
then your utility must provide your facility with Apparent Power of 142 kVA. The
power factor is 70%, which means that only 70% of the current provided by the
electrical utility is being used to produce useful work.13

Seasonal Averages: In Figure 3.4, notice how the natural gas bill dips during the summer
months. This is most likely because the plant is not heated during the summer. Similarly,
some plants have summer seasonal increases in utility consumption from air
conditioning. The seasonal average is the average energy consumption and costs for a
given six-month season.

Understanding seasonal changes in your utility bill will aid you in taking
TIP energy saving actions related to heating and cooling.

Late Charges: Check if your utility bills contain late charges. Late charges can account
for several percent of your bill.

Paying bills on time will reduce excess fees from late charges and reduce
TIP the cost of energy to your facility. This is one of the easiest methods to
reduce your energy bills.

Taxes: In Texas, industrial energy use through a meter or account whose predominant
use is for manufacturing is exempt from taxes. This requires a study by an engineer, but if
you are paying taxes inappropriately, it may be well worth your time to pursue this.

Reducing Power Factor Cost, US Department of Energy Fact Sheet #

- 19 -
Information is available from the Comptrollers office and from your utility account
representative about tax exemption.

TIP Check out if you can reduce your taxes on energy used for manufacturing.

Natural Gas
Table 3.4: Natural Gas Summary
It will be easier to make informed decisions about Cost
energy usage if you are aware of how much each utility DATE Therms ($)
costs per unit consumed (e.g., $/Btu). Cost of energy Jan 8,877 5,722
consumption is easy to calculate; divide your total Feb 7,618 4,852
consumption costs by the total amount of energy Mar 4,232 2,689
Apr 3,761 2,457
May 3,410 2,220
Natural gas consumption is measured in therms. The
cost of consumption of gas is calculated as the total Jun 3,212 2,088
annual cost divided by the amount of gas consumed. Jul 3,050 1,983
Aug 3,123 2,036
Cost ($/therm) = = $0.644 / therm Sep 3,157 2,055
56,787therms Oct 3,348 2,177
Nov 4,722 3,069
Figures 3.4 and 3.5 show lower gas consumption in the
Dec 8,277 5,245
summer than in the winter. This is a clear seasonal
trend. The summer (May to October) average of $2093 Totals 56,787 36,593
is the baseline usage. Any charges above $2093 are seasonal charges. The baseline usage
represents process usage. Gas use in excess of this line is probably for space heating. We
can estimate that about 1/3 of gas use is for process heating and 2/3 is for space heating
during the winter months in this example.

- 20 -



Charges ($)





Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billing Period

Figure 3.4: Natural Gas Costs





Usage (Therms)






Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Billing Period

Figure 3.5: Annual Natural Gas Usage

- 21 -
#2 Fuel Oil
Table 3.5: #2 Fuel Oil Consumption History
From the consumption summary in Table DATE CONSUMPTION Cost
3.5, the cost of consumption can be Dec 499 $450
calculated as follows:
Jan 3,014 $3,536
Cost ($/gallon) = Feb 1,120 $1,264
$10,600 Mar 2,683 $2,512
= $1.03 / gallon
10,339 gallons Apr 1,070 $1,116
May 469 $418
In Figure 3.7, #2 fuel oil also seems to Jun 0 $0
display a seasonal trend, probably also due Jul 0 $0
largely to space heating. The process for Aug 141 $118
calculating seasonal trends in fuel oil
Sep 0 $0
consumption is the same as that of natural
gas. Oct 522 $444
Nov 821 $742
TOTALS 10,339 $10,600




Cost ($)





Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Billing Period

Figure 3.6: #2 Fuel Oil Annual Cost

- 22 -


Consumption (gallons)





Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Billing Period

Figure 3.7: #2 Fuel Oil Annual Consumption

Utility Balance

In order to fully understand how much of each type of energy your facility uses, and
which types of energy will be more economical for your plant, it would benefit you to
assemble a pie chart showing each type of resource your facility uses as a percent of the
whole. In order to avoid an “apples and oranges” comparison, use the conversions from
Table 3.1 so that all the units of your energy bills will be the same. The pie charts will
show how much of each utility your facility consumes and help illustrate the unit cost of
each utility. There is an example below.

Upon examining Figures 3.8 and 3.9, it becomes apparent that this facility consumes
more electricity than any other utility (65% of total energy use) and it is also the costliest
to use (88% of the total electrical bill for the facility, including both demand and energy
consumption charges). For this reason, reducing electrical consumption should be given
priority at this example plant.

- 23 -
#2 Fuel Oil
Natural Gas


Figure 3.8: Utility Usage Comparison

Natural Gas
Demand 9%

#2 Fuel Oil

Figure 3.1: Utility Cost Comparison

3.3 Electric Deregulation and Incentives

The Texas market opened to retail competition in certain areas of the State in January
2002. Depending upon your location in Texas, your plant will be served by a regulated
utility, a municipal utility, an electric coop, or you will have your choice of several Retail
Electric Providers (REPs). The website can help you
figure out if you are in a competitive area. This site can also help you compare offers
from different REPs. Thus, the location of your plant will have a significant impact on
the types of incentives or assistance available to you for efficiency projects. By
comparing prices offered by REPs, you may also find that you can negotiate a better price
than the one you are currently charged.

- 24 -
Integrated utilities may offer rebates for installation of energy efficient equipment. For
example, Austin Energy offers rebates for up to 50% of the total cost of certain
equipment, not to exceed $100,000. Rebate programs change, so it is important to check
with your local utility to determine what they are offering.

In addition, both regulated utilities and REPs may offer services such as energy audits.
Again, you will need to check what is offered by the REPs or the integrated utility
serving your area.

Finally, in transmission service areas that are in competitive markets and areas outside
ERCOT served by investor owned utilities, Standard Offer Programs offer incentives for
energy and demand savings. These programs, required by state law in areas with
competitive retail electricity, are set up by the transmission utilities. They are offered to
all types of electric customers in their service areas. lists the
utilities with Standard Offer Programs in Texas.

Ask your utility about rebates and incentive programs. In addition, find out
TIP if you are in a competitive electric market and if you can negotiate a better

3.4 Periodic Review

Although you may find some projects are not economically attractive at this time, save
your results and periodically recalculate your savings to account for changes in operation
or energy costs.

- 25 -
4: Assessing Your Opportunity
After you have calculated the cost of energy consumption, the next step is to identify the
energy-consuming equipment at your facility, identify if there is an opportunity for
savings, and evaluate potential projects.

4.1 Identifying Major Energy Consuming Equipment

An understanding of where the energy is going is necessary for an economic analysis of

your opportunities. Section 4.1 describes the common equipment that accounts for most
energy use at a typical small manufacturing facility. It also provides a brief discussion of
“inefficient” practices, so that you can spot these easily as you do your walk-through.

For each energy-using system you will also be provided with a reference to software tools
and other resources available from the US DOE’s Industrial Technologies Program,
which offers these resources under its Best Practices program

Figure 4.1 illustrates how energy is used across all manufacturing and mining facilities in
the US. This may be unlike the energy use profile at your facility, since it is an average.
But it is a reminder to look at all energy use systems when considering where your
opportunities may lie. These major uses are covered by the projects in Section 4.3 and the

Figure 4.1 Energy End-Use in Manufacturing and


Facilities Other
8% 4%

Fired Electro-
Systems chemical
38% 2%

Process Steam
Cooling 35%
Motor Driven

Before moving on to the process questions, you should create a list of the major energy-
using equipment in your plant. This list can be developed from maintenance records or

- 26 -
purchase orders. (It may also be gathered during a tour of the manufacturing process and
its subsystems, but this will only be feasible for the smallest of facilities.) A
comprehensive list of this type will be extremely useful in order to begin calculating
dollar savings. An example of such a list is shown in Figure 4.2: Major Energy
Consuming Equipment. Once you have a list, you will be ready to walk through your
facility to assess your opportunities.

- 27 -
Major Energy Consuming Equipment

Air Compressors

1-60 HP Screw Type Air Compressor

Heating/Cooling/Ventilating Equipment

1-Roof mounted Air Conditioners

1-Roof mounted Heat Pump

Production Equipment

Roll Forming Machines:

5-5 HP lines (v-belt)
1-5 HP line (direct drive)
3-7.5 HP lines (v-belt)
5-10 HP lines (direct drives)
5-10 HP lines (v-belt)
1-15 HP line (v-belt)
2-20 HP lines (v-belt)
1-63 HP Slitter (40 HP v-belt)
2-10 HP Winding Machines (v-belt)


Heating/Cooling/Ventilating Equipment
5-Gas Fired Infrared Heaters
15-Gas Fired IR Heaters
1-Hot Water Heater
1-300 Boiler HP (also used in production)
Production Equipment
1-300 Boiler HP


Heating/Cooling/Ventilating Equipment

1-250 Boiler HP Fuel Oil fired boiler

Figure 4.2: Example List of Major Energy Consuming Equipment

- 28 -
4.1.1 Air Compressors

Compressed air is energy-expensive. The overall efficiency for a typical compressed air
system is only about 10%.14 Small improvements in the efficiency of your compressed air
system, then, will have a substantial impact on your energy bill.

Most air compressor systems are much less efficient at partial load (particularly true of
rotary screw type compressors). If your system has a widely distributed load profile,
installation of multiple, smaller compressors with sequencing controls may improve its
efficiency. Alternately, installation of a receiver tank (or an additional one) will take
advantage of excess supply.

Good maintenance is essential for any mechanical system, and particularly for air
compressors. Any leaks in the system can drain system performance. Leaks can waste as
much as 20-30% of a compressor’s output, wasting thousands of dollars and hundreds of
thousands of kilowatt-hours of energy each year.15 If your facility does not have in place
an aggressive program to detect leaks, one should be implemented as soon as possible.
Leaks can come not only as a hole in a pipe or a poorly joined seam, but also in the form
of a condensate trap left permanently open. Condensate traps should never be left open; if
one is broken, it should be repaired. In addition to leak detection, your maintenance
program should include scheduled checking and replacement of filters. Clogged, dirty
filters can impede airflow, and significantly decrease the output pressure of your
compressed air system.

The location of your compressor’s intake may also play a role in the overall efficiency of
the system. The intake should be drawing in the coolest air possible. Cooler air is more
compact than warmer air; the compressor will have less work to do to achieve a given
pressure if it draws in cooler air.

Compressed air itself carries considerable heat, as much as 280,000 Btu/hr from a 100 hp
compressor. Depending on the system, about 50-90% of the heat generated can be
recovered and used.

Any equipment that once used compressed air, but no longer does, should not be left
attached to the supply line. Unused equipment that remains attached to the system will
continue to use some compressed air. If there is any unused equipment, it should be cut
off as close to the transmission line as possible, without disrupting flow to other

“Improving Compressed Air System Performance: A Sourcebook for Industry”, Compressed Air
Systems Fact Sheet #2.
“Improving Compressed Air System Performance: A Sourcebook for Industry”, Compressed Air
Systems Fact Sheet #7.
“Improving Compressed Air System Performance: A Sourcebook for Industry”, Compressed Air
Systems Fact Sheet #2.

- 29 -
Training and tips on compressed air system improvements is available from the
Compressed Air Challenge at and the US DOE.
See the Resources section for training information in Texas.

Projects 1 and 2 in Section 4.3 allow you to calculate savings from improvements to your
compressed air system.

4.1.2 Motors

Electric motors consume about 70% of all the electricity used by industry. Reducing
energy losses for motors therefore represents a huge energy savings potential.

As with air compressors, electric motors operate at peak efficiency near peak load. As the
time to replace a motor draws near, evaluate whether or not the motor is oversized for its
application. Unless demands on a motor have increased since it was installed, or it is
clearly undersized, a motor should not be replaced with a larger one. The application
MotorMaster+, available free of charge from the US Department of Energy at, will be an asset to you as you
evaluate your motor systems. If you have applications with non-constant loading,
variable speed drive control could help bring down the cost of your motor operation.

The drive system that transmits the motor’s energy to its application can also be a source
of loss. Direct drives should be used whenever conditions permit. If the conditions
demand a system of belts, cog-type belts should be used instead of standard v-belts. Cog
belts are inexpensive, and their transmission efficiency is 2-8% greater than that of v-

Motors that have a variable load may be candidates for variable speed drives (VSD) that
will result in significant savings. This is particularly true of centrifugal pumps and fans,
such as the fans in air handling units. More information on VSDs can be found at the
DOE’s BestPractices website

Projects 3-5 in Section 4.3 allow you to calculate savings from improvements to your
motor systems.

4.1.3 Combustion and Steam Systems

Boilers operate at peak efficiency near peak capacity.

A certain amount of air is necessary for complete combustion under ideal conditions,
with complete mixing. Complete mixing is impossible to achieve in an industry setting,
and so to ensure complete combustion (no wasted fuel), a certain amount of excess air
must be taken in. If too much is drawn in, a boiler or furnace will run lean, and its
efficiency will fall. As a general rule, each 15% reduction in excess intake air will result

Energy Efficiency Guide for Colorado Businesses:

- 30 -
in a 1% increase in efficiency, though there should be at least 10% excess air. Each
system will have individual characteristics that determine the optimum level.

Air intake for boilers and furnaces should come from the warmest location possible. The
process of combustion requires heat as well as fuel in order to progress; combustion
occurs more completely with warmer intake air, and reduces the load on the boiler. If
heat in flue gases is not already being recovered and used in other applications, it can be
used to heat intake air for the boiler or furnace. It is important, however, not to lower the
stack exhaust temperature too much. If the stack temperature is too low, condensation
could occur, resulting in a buildup of corrosive condensate that can damage the exhaust
system. Generally, each 40°F reduction in exhaust gas temperature will yield a 1%
increase in overall system efficiency.18

In firetube boilers, the flow of exhaust gases in the tubes can become laminar, reducing
heat transfer to the water, and the overall effectiveness of the boiler. The installation of
turbulators in the tubes will disrupt the flow, alleviating this problem. Turbulators are
very inexpensive to install, and typically have payback periods of less than half a year.19

Steam, like compressed air, is expensive to generate. Benchmarking the fuel cost of
steam generation will make this clear. Depending on your operating conditions, steam
can cost more than $8.00/1000 lbs. Some steps can be taken, however, to reduce this cost.

Ensuring that line pressure is not excessive can greatly reduce operating costs.

Heating the boiler feedwater will greatly reduce the load on the boiler. A 50°F increase in
feedwater temperature will translate into approximately 4-5% reduction in cost of steam
generation. Recycling condensate from plant operations into the boiler feedwater will
help achieve this end.

Blowdowns are necessary for boiler operation, but they waste a considerable amount of
heat and energy. Accordingly, they should be performed only frequently enough as to
preserve smooth operation of the boiler. An automatic blowdown control system can be
an aid in this. Pretreating feedwater can also minimize blowdowns by reducing the
impurity levels. Blowdowns cannot be eliminated, but some of their heat can be
recovered, and transferred to feedwater, reducing the load on the boiler.

As with air compressors, leaks in the steam system can be quite costly. Even a single
small leak in a high-pressure line can cost more than a hundred dollars a week in steam
loss. The steam lines should be checked for leaks, and so should the steam traps; if your
system has not been well maintained in the last five years, as many as a third of your
traps may have failed.20

“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #4.
“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #25.
“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #1.

- 31 -
Steam distribution and condensate return lines should be insulated. Bare distribution lines
continuously radiate heat to their surroundings, which the boiler must compensate for.
Insulating these distribution and return lines can reduce the cost of steam generation by
tens of thousands of dollars per year. Old, damaged, or wet insulation should be replaced,
as it will be significantly less effective. Check OSHA procedures for checking or
changing old insulation, which may contain asbestos. Additionally, the benefits of
insulation are not limited to reduced cost of steam generation; any surface with a
temperature above about 140°F poses a hazard to worker safety. The North American
Insulation Manufacturers Association (NAIMA) has developed 3EPlus, a program
available free of charge from NAIMA at, which can
estimate your savings potential in insulation opportunities.

Low-pressure waste steam can be recompressed to higher pressure and used for
applications requiring low-/intermediate-pressure steam, rather than using high-pressure
steam throttled to lower pressure. The energy used to recompress steam is typically only
5-10% of that used to generate an equivalent amount of steam in a boiler.21

Low-grade waste steam can also be used to power an absorption chiller, which can
supplement your plant’s cooling needs. Absorption chillers use a thermal compressor
instead of a mechanical compressor. Although less efficient in theory, if the thermal
compressor is powered by low-grade steam that would otherwise be wasted, it can
improve the plant’s efficient use of energy.22 The US Department of Energy has a helpful
information sheet concerning absorption chillers at

Projects 6-9 in Section 4.3 allow you to calculate savings from improvements to your
fired heater and steam system.

The US DOE’s BestPractices program offers several tools that will help you evaluate
your process heating and steam systems. All of them are available free of charge from the
BestPractices website at

4.1.4 System Controls

Significant energy savings can be realized without the purchase of any new equipment.
Section 3 demonstrated the impact of demand on electricity bills. Some of this demand
charge may be avoidable, depending on the flexibility of your operating schedule.
Identify the portions of your operating processes that consume the greatest amount of
energy, and schedule them so that they overlap as little as possible, and operate during
off-peak hours.

Some valuable system control strategies are less complicated. Equipment that will not be
used for a significant amount of time could be shut off. If the equipment operates on a set
schedule, you may find that the installation of setback timers will be an asset.

“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #11.
“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #14.

- 32 -
Projects 10 and 11 in Section 4.3 allow you to calculate savings from improvements to
your controls.

4.1.5 Lighting

It is likely that your facility could save much energy by making improvements to its
lighting system. Many industrial facilities do not take full advantage of natural lighting,
and older lamp technologies consume much more energy per unit output than more recent
designs and newer technologies. Do not forget, though, that some manufacturing
processes may require some lighting characteristics that can only be achieved by lower-
efficiency lamps.

Most facilities also have lights on unnecessarily. Many places are over-lit, and some
lamps could be removed from these areas. The Illuminating Engineering Society of North
America ( publishes suggested light levels for various working
environments that will aid you in making decisions about light levels. Lighting should be
kept to a minimum when no workers are present, and any outdoor lighting system should
be switched off during daylight hours (barring unusual circumstances).

Your facility may also benefit from the installation of light-emitting diode (LED) lighting
systems. Recent advances in LED technology have the potential to deliver an LED that
costs a tenth of what an incandescent light costs, and a fifth of what a fluorescent light
costs, per lumen of output. LEDs last much longer than traditional incandescent lights,
with useful lifespans measured in years. LEDs generate much less heat than incandescent
lighting; replacing incandescent lighting with LEDs could reduce cooling costs in air-
conditioned areas.

Projects 12 and13 in Section 4.3 allow you to calculate savings from improvements to
your lighting.

4.1.6 Chillers

If your facility’s chillers are more than ten years old, or the system capacity is larger than
1000 tons of refrigeration, there may be opportunities for energy-efficient replacements.

If you have a large capacity chiller (over 1,000 RT) that makes chilled water, you will
probably find it cost-effective to conduct a chiller performance evaluation at least once a
year, due to the high total cost of chiller operation.

Ensure that no frost is forming on your chillers’ evaporator coils. Frost is an insulator,
and will degrade the coils’ performance.

If your facility has a sufficient source of low-grade waste heat (steam, process, etc.), that
is being dumped to ambient, you might investigate the installation of an absorption chiller,

- 33 -
which can supplement your plant’s cooling needs. Absorption chillers use a thermal
compressor instead of a mechanical compressor. Although less efficient in theory, if the
thermal compressor is powered by low-grade waste heat that would otherwise be wasted,
it can improve the plant’s efficient use of energy.23 The US Department of Energy has a
helpful information sheet concerning absorption chillers at

Load Factor: If your chillers are operating below full capacity for much of their running
time, you may wish to investigate options such as using a smaller capacity chiller.

Project 16 will help you calculate potential savings from upgrading to a more efficient

4.1.7 Climate Control

Climate control can be very expensive in Texas. Climate control costs can be cut
significantly using a “cool roof”. A “cool roof” is made of high-emittance materials that
reflect much more incidental solar energy than a standard roof, reducing heat transfer to
the interior. Washington State University has published a fact sheet that details the
benefits of cool roof technology, available from
ep/pubs/building/res/roof_coat.pdf. They found reductions in cooling costs of 25 to 67%
for buildings in Florida and California. The US Department of Energy has also published
recommendations on the use of cool roofs, available from their website at

4.1.8 Pumping Systems

Between 20 and 50% of energy consumed in industrial processes is used to power pumps.
As you look for savings opportunities in pumping systems in your plant, include larger
systems that may have pumps associated with them in your search.
Signs that a pumping system has opportunities for more efficient operation include:
• Use of a throttle valve control to regulate system pressure (in which case,
replacing the drive motor with a VSD would be a recommended fix)
• A bypass/recirculation line is usually left open (in which case, replacing the drive
motor with a VSD would be a recommended fix)
• There is continuous pump operation on a batch process.
If your process has a constant number of pumps supporting a dynamic process,
improvements to the control system could save considerable energy, money, and process

The Pumping System Assessment Tool (PSAT), available free of charge from the US
Department of Energy at, can assist you

“Improving Steam System Performance: A Sourcebook for Industry”, Steam Tip Sheet #14.
“Improving the Efficiency of Pump Systems”,

- 34 -
as you optimize or upgrade your pumping system. Training on the software is also
available from DOE in Texas (see the Resources section).

- 35 -
4.2 Plant Assessment Questions

This list of questions will help you identify plant operations that can be made more
efficient. If you check a barred red circle ;, this indicates that there may be an
opportunity for improvement. This list is designed to be general, and of use to as many
facilities as possible; there may be opportunities specific to your plant that are not
covered here.

4.2.1 Air Compressors

Yes No

‰ ; Has your compressed air system been audited within the last three years?

‰ ; Is each machine using compressed air receiving it at the minimum acceptable

pressure? (See Project 2)

; ‰ Is the line pressure more than 10% greater than that required by air-driven
machines? (See Project 2)

; ‰ Is the compressed air used for cooling product, cooling equipment, and/ or
agitating liquids?

; ‰ Are there any leaks in the compressed air system? (If you do not know or are
unsure, check ;.) (See Project 1)

‰ ; Is there an aggressive program to detect and eliminate compressed air leaks?

(See Project 1)

; ‰ Are any condensate traps left permanently in the open position?

; ‰ Is there any old equipment that no longer uses compressed air still connected
to the compressed air delivery system? (See Project 2)

; ‰ Is the pressure drop (measured between receiver tank and point of use) more
than 10% of the compressor’s discharge pressure?

‰ ; Is the compressor lubricated with a synthetic lubricant? (See Project 4)

‰ ; Are filters (air and oil) changed on a schedule recommended by the original
equipment manufacturer?

‰ ; Is the compressor’s air intake located at the coolest possible location?

‰ ; Is the cooling air for the compressor discharged outdoors in the summer and
into areas requiring heat in the winter?

- 36 -
‰ ; Is there any system in place to recover waste heat from the compressor?

‰ ; With more than one compressor operating, are the compressors sequenced so
that rather than operating several at part load, each operating compressor is
operating at or near its maximum?

‰ ; If screw compressors and reciprocating compressors are used in parallel, is the

screw compressor operated as close to its rated capacity as possible?

‰ ; Is the screw compressor shut down when only small amounts of compressed
air are in demand (weekends, nights, etc.)? (See Project 10)

4.2.2 Motors

Yes No

‰ ; Do the motor systems employ direct drives instead of belts (cog belts, v-belts,
etc)? (See Project 5)

‰ ; Are energy efficient motors (EPACT compliant) used? (See Project 3)

‰ ; Are motors sized according to load?

‰ ; Do the motor systems use variable speed drive control?

; ‰ Is petroleum-based lubrication used on any parts needing lubrication? (See

Project 4)

‰ ; Do you have a motor survey and tracking program in place?25

‰ ; Do you have a spares inventory?

‰ ; Do you have specifications for purchase, repair, and maintenance?

4.2.3 Combustion and Steam Systems

Yes No

; ‰ Does your facility use an oven, furnace, or boiler?

; ‰ Does your facility use steam or other heated process fluids? (If you answered
no to both of these, then you may skip this section.)

See the “Motor Decisions Matter” website at for
guidance on how to set up the programs referenced here

- 37 -
; ‰ Is the oven electric?

; ‰ Does the air for combustion come from inside the building?

‰ ‰ Is the boiler a firetube boiler? (If no, skip the next question.)

Yes No

‰ ; Does it have turbulators?

Yes No

‰ ; Does the boiler operate at high fire during most operational time? (See Project

‰ ; Is the surface temperature of the apparatus below 140°F? (See Project 6)

‰ ; Is a program to analyze flue gas for proper air/fuel ratio active? (See Project

‰ ; Is flue gas heat energy used for any purpose? (See Project 8)

‰ ; Are steam traps installed and working properly? (See Projects 8 and 9)

‰ ; Is there an aggressive program in place for checking to see that steam traps
have not failed? (See Project 9)

‰ ; Is steam being supplied at the lowest acceptable pressure? (See Project 9)

‰ ; Are lines properly insulated? (The application 3E Plus, available from, can help you determine appropriate levels of
insulation for adequate safety and energy savings.) (See Project 6)

‰ ; Is insulation in good condition (e.g., not damaged or wet)? (See Project 6)

‰ ; Is a feed-water treatment program active? (See Projects 7 and 8)

‰ ; Is condensate returned from process areas? (See Project 8)

‰ ; Is the condensate tank insulated? (See Project 8)

; ‰ Does steam leak from any part of the system? (See Project 9)

‰ ; Are blowdowns controlled automatically?

‰ ; Is there any program in place to recover waste heat from boiler blowdowns?

- 38 -
‰ ; Is there a low-pressure waste steam recovery system in place? (See Project 8)

‰ ; Can high-pressure condensate be flashed to provide low-pressure steam

(especially, instead of a throttling valve) to applications that require steam at
low pressures? (See Project 8)

‰ ; Are flash steam vents fitted with vent condensers in order to recover flash
steam energy? (See Project 8)

‰ ; Does your plant use its low-grade waste steam to power an absorption chiller?
(See Projects 8 and 15)

‰ ; Has the fuel cost of steam generation been benchmarked at your facility
within the last two years?

; ‰ Are there any open tanks of heated process fluids (i.e., a heated water rinse

4.2.4 System Controls

Yes No

; ‰ Are machines left running when not in operation? (See Project 10)

; ‰ Is the workspace air-conditioned in the summer and/or heated in the winter?

(If no, skip the next three questions.)

What is the temperature at which the workspace must be maintained?

At what temperature is the warehouse maintained?

Yes No

; ‰ Could the workspace temperature be brought closer to the outside


Yes No

‰ ; Are de-stratification fans used?

‰ ; Are nonessential exhaust/supply fans shut down during non-working hours?

(See Projects 10 and 11)

‰ ; Are motion sensors used in the warehouse? (See Projects 10 and 15)

- 39 -
4.2.5 Lighting

Yes No

‰ ; Are lighting levels at the minimum recommended for each task? (See Project

; ‰ Can any areas be partially de-lamped? (See Project 12)

; ‰ Can lighting hours be reduced? (See Projects 12 and 13)

‰ ; Are employees trained and/or encouraged to turn off unnecessary lights? (See
Project 13)

; ‰ Can motion sensor lighting controls be employed in warehouses, storage

areas, etc., where personnel entry is intermittent? (See Projects 11, 12, and 13)

‰ ; Are all fluorescent bulbs installed of an energy efficient design? (See Projects
12 and 14)

‰ ; Is a program to replace old ballasts with an energy efficient type in place?

(This is especially important if power factor costs are high.)

; ‰ Are ceilings at least 15-20 feet high? (If so, high-bay T-5 fluorescent, metal
halide or sodium lamps may be substituted for standard fluorescent or
mercury vapor lamps.) (See Project 12)

; ‰ Is very fine color rendition required? (If so energy efficient fluorescent lights
should be used.) (See Project 12)

‰ ; Have you reduced exterior lighting to the minimum safe level and/or installed
timers or photocells to turn off exterior lights when daylight permits? (See
Projects 12 and 13)

4.2.6 Demand Limiting

Are forklift trucks battery operated or propane driven? ‰ Battery ‰ Propane

Yes No

‰ ; If battery operated, are they being recharged during off-peak

hours (at night)? (See Project 15)

Yes No

; ‰ Does the rate schedule of the plant show a demand charge? (If not, you may

- 40 -
skip this section of questions.)

Obtain a printout of the hourly variation of electrical demand for an “average” month of
production for your facility. Project 15 covers limiting demand.

Yes No

; ‰ Is the demand maximum significantly greater at one time of day

each day (does it “spike”)?

; ‰ Is the maximum demand significantly greater than the average

demand during each day?

; ‰ Is the monthly maximum demand significantly greater on one day

than any other?

4.2.7 Chillers

Yes No

; ‰ Are your chillers more than ten years old? (See Project 16)

; ‰ Do you have a large (>50%) variation in system load over the annual
operation of the chiller system?

; ‰ Does your process(es) require chilling/refrigeration at 20°F or below?

; ‰ Is your total installed plant capacity greater than 1000 tons of refrigeration?
(See Project 16)

; ‰ Can cooling tower water be used instead of refrigeration during any part of the

‰ ; Is chilled water produced at the highest acceptable temperature?

; ‰ Can outside air be used in any drying process instead of conditioned air?

; ‰ Is frost forming on the evaporators?

4.2.8 Building Envelope

Yes No

‰ ; Is the exterior painted white over spaces that must be air-conditioned?

‰ ; Are air conditioners, unit heaters, and other HVAC equipment consistently

- 41 -
maintained, and maintained well?

; ‰ Are any belts used in fans standard v-belts? (See Project 5)

‰ ; Are filters on roof air intakes clean?

‰ ; Are roof exhaust fans using notched belts? (See Project 5)

‰ ; Are walls, ceilings, roofs, and doors well insulated?

‰ ; Are loose-fitting doors and windows weather-stripped?

‰ ; Are all windows, sashes, doors, etc., in good condition (e.g., not broken or
leaking conditioned/heated air)?

; ‰ Does your facility have a metal skin industrial roof?

Yes No

‰ ; If your facility has a metal skin industrial roof and has no ceiling,
does it have skylights? (See Project 12)

; ‰ Is the roof unpainted, painted in a dark color, or painted with a

clear coat?

4.2.9 Combined Heat and Power (CHP)

If you answer “yes” to questions 1, 2, and 3, your site may be a candidate for Combined
Heat and Power.

1. Do you pay more than $.06/kW on average for electricity (including

generation, transmission, and distribution)?
2. Do you have or plan to have thermal loads throughout the year (including air
conditioning, steam, hot water, chilled water, process heat, etc.)?
3. Does your facility operate for more than 5000 hours/year?

If you answered “yes” to questions 1, 2, and 3, go on to questions 4 and 5.

4. Are you concerned about power reliability? Is there a substantial financial

impact to your business if the power goes out for one hour? For five minutes?
5. Do you expect to replace, upgrade, or retrofit central plant or boiler equipment
within the next 3-5 years?

If you answered “yes” to all five of these questions, then you may have an opportunity to
improve your efficiency and cut costs by implementing a Combined Heat and Power
project. You can get assistance to analyze your situation in greater detail by contacting

- 42 -
the Houston Advanced Research Center’s Combined Heat and Power Regional
Application Center at (281) 364-6087 or

4.2.10 Additional Questions

Yes No

; ‰ Is hydraulic equipment (e.g., pumps) used to transmit power?

; ‰ Does the plant have significant exhausts of heated/conditioned air?

; ‰ Are there any leaks in your cooling system?

- 43 -
4.3 Typical Projects to Increase Energy Efficiency and Reduce Costs

This section contains a description of the 16 projects commonly identified at typical

small and medium-sized manufacturing plants. For each project, you will find a list of the
data needs to estimate your cost and energy savings. In order to collect the information
for the calculations, you will need the tools that were identified in Section 1. The
spreadsheet file accompanying this document has a sheet for each of the individual
projects and leads you through the data input process. Default values are available in
many cases if you do not have the required data. After you input data (or use the default),
the spreadsheet will calculate your energy and demand savings, and total cost savings.
Emissions reductions are also calculated for CO2 and NOX. All results from these
spreadsheets are estimates. Simplifying assumptions have been used to result in a user-
friendly tool to help the plant operator who has neither the resources nor the time to use a
complex tool. Although these results must be regarded as estimates, we have tried to be
accurate when possible and conservative otherwise.

- 44 -
Recommended Action:
Repair leaks in the compressed air system.

A common, costly loss of energy is a leaky compressed air system. Over time,
connections, seals, and gaskets degrade, and leaks develop. In order to maintain the
system’s required operating pressure, the air compressor must run longer and cycle more
frequently to compensate for air lost through the leaks. Many leaks can be detected easily
by listening for the hiss of escaping air. Repairs typically are inexpensive and easily

How to Gather Information:

A simple test can be done to evaluate the state of a compressed air system by following
these steps:
1. Choose a time when no compressed air is in use (e.g. during a lunch break or
after hours).
2. Use a gauge to determine system pressure.
3. Shut down air compressor(s).
4. Use a stopwatch to measure the time it takes for leaks to drop the system
pressure 10 psi. Record this time.

Calculation of Savings:
After performing this test, gather the following data to insert into the spreadsheet
provided for calculation of energy savings:
• Type of compressor (reciprocating, screw or centrifugal)
• Receiver #1 tank diameter26 (ft)
• Receiver #1 tank length 26
(Repeat as needed for any other large receivers)
• Major header inner diameter (in)
• Major header length (ft)
• Minor header inner diameter (in)
• Minor header length (ft)
• System pressure (psi)
• Compressor motor horsepower (hp)
• Compressor motor name plate efficiency (if available)27
• Time for the system to drop 10 psi (sec)
• Operating hours per year (hrs/yr)

If tank volume is known, length and diameter data are not required.
For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 45 -
Recommended Action:
Lower the compressed air system operating pressure to the minimum effective level.

Often, manufacturing facilities operate their compressed air system at a pressure higher
than their equipment requires. The air compressor(s) must work significantly harder to
maintain the unnecessary pressure in the lines. In addition to drawing excessive energy,
high system pressures can increase leak rates and shorten compressor lifespans. Most
manufacturing equipment, such as air driven tools, requires no more than 80 psig; and the
delivery pressure should be set only moderately higher (perhaps an additional 10 psi).
This should not be taken as an absolute rule, however, as each system will have different

How to Gather Information:

To estimate the potential savings associated with lowering the compressed air system
pressure, collect the following information:
1. Determine the required system pressure for the machine that requires the
highest pressure. (This information will probably be contained in operation
manuals. If not known, contact the equipment manufacturer.)
2. Determine the new target system pressure setting by adding 10–15% to the
value found in step 1.28

Calculation of Savings:
After determining the new target system pressure, gather the following data to insert into
the spreadsheet provided for calculation of energy savings.
• Type of compressor (reciprocating, screw or centrifugal)
• Compressor motor horsepower (hp)
• Compressor motor efficiency (if available)29
• Current system pressure (psi)
• Target reduced system pressure (psi)
• Operating hours per year (hrs/yr)

Air pressure that is too low will alter and possibly interfere with equipment operation. Sometimes, a
feature of the system design, such as too long or too small air supply lines, becomes a limiting factor that is
difficult to analyze. If this is the case for your system, lower air pressure that is too high in small
increments, perhaps 5 psi at a time, checking for proper equipment operation and safety at each step before
lowering pressure further.
For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 46 -
Recommended Action:
Consider purchasing a premium efficiency electric motor at rewind or replacement time.

The Energy Policy Act of 1992 (EPACT) required motor manufacturers to make motors
with minimum efficiencies at a level once known as “energy efficient.” EPACT took
effect in 1997; if your motor was purchased prior to 1997, it may be a pre-EPACT lower-
efficiency model. Savings are still available if “premium” or “ultra high” efficiency
motors are chosen. While cost savings will be obtained on energy costs anytime the
efficiency is higher, the purchaser should consider several things, including motor type,
size, and operating hours. Generally, open drip-proof (ODP) and totally enclosed fan
cooled (TEFC) intermediate sizes with long operating hours may be good candidates for
replacement with “premium” motors.

Motors often are rewound relatively inexpensively. However, high-quality premium

efficiency motors generally have a higher relative output than rewound motors and
therefore produce more work per energy input. The higher initial cost of premium motors
can increase the payback period, but in the long term, these motors will generate
considerable savings—especially as energy costs rise. This can be especially important if
you plan to expand your business.

How to Gather Information:

To estimate the potential energy savings generated by the purchase of premium efficiency
electric motors, perform the following steps:
1. Determine horsepower and efficiencies of each motor as indicated on the
2. Determine the operating hours per day.

Calculation of Savings:
After gathering this information, insert the data obtained into the spreadsheet provided
for calculation of potential energy savings.

For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 47 -
Recommended Action:
Replace standard petroleum-based lubricants with more efficient synthetic lubricants.

Synthetic lubricants exhibit more uniform viscosities over larger temperature ranges and
protect against friction loss better than their conventional, petroleum-based counterparts.
Gearboxes and bearings that require periodic lubrication (for example, non-sealed
bearings in electric motors) and currently use petroleum-based lubrication may benefit
from a switch to synthetic lubricants; as a result, some electrical energy will be saved,
and the equipment will wear less. This can be especially important in applications
involving large motors.

CAUTION: Equipment such as seals must be compatible with

synthetic lubricants. If in doubt, check with both the equipment and
lubricant manufacturers.

How to Gather Information:

To estimate the potential savings associated with changing lubricants, perform the
following steps:
1. Locate the electric motor drivers.
2. Record the horsepower and efficiencies31 (if available) indicated on the
3. Determine the daily operating hours.

Calculation of Savings:
After gathering this information, insert the data into the spreadsheet provided for
calculation of potential energy savings.

For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 48 -
Recommended Action:
Replace standard v-belts used on electric motors with more efficient belts.

When standard v-belts of constant cross-sectional area must be replaced, consider “cog-
type” belts in order to reduce energy losses.32 Cog-type belts are more efficient than v-
belts because less energy is expended in flexing a cog-type belt around the sheaves. The
energy savings associated with replacing drive belts are not significant for small motors
(less than 10 hp), but for plants that employ large belt-driven systems, the savings
associated with changing belts may prove substantial.

How to Gather Information:

To estimate the potential savings associated with changing the belt drives on electric
motors, perform the following steps:
1. Locate any electric motors that have belt drives.
2. Record the horsepower and efficiencies33 (if available) as indicated on the
3. Determine the daily operating hours.

Calculation of Savings:
After gathering this information, insert the data into the spreadsheet provided for
calculation of potential energy savings.

Cog-type belts utilize the same sheaves as the standard v-belts. They are not synchronous belts, which
require different drive sheaves.
For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 49 -
Recommended Action:
Add insulation to equipment to prevent heat loss.

Uninsulated or poorly insulated surfaces (for example, steam systems and ovens) lose
substantial energy by heat transfer to the atmosphere. In the case of steam systems, heat
transfer from uninsulated pipes to their surroundings may be so great that steam will
condense in the transmission lines, increasing the load on the boiler. Proper insulation
would prevent much of the loss of heat to surroundings, reducing the boiler’s load.
Similarly, uninsulated electric and gas ovens will lose heat to surrounding air. This heat
exchange occurs in all cases of heated (or cooled) systems where there is a significant
temperature difference between the system and its surroundings, which can only be
slowed by the addition of insulating material.

How to Gather Information:

To estimate the potential energy savings due to insulating against unwanted heat transfer,
perform the following steps:
1. For steam lines and other heated or cooled material transport pipes, locate and
determine the pipe diameter and length for each major section.
2. For other heated or cooled applications, determine the surface area through
which heat is being lost.
3. Measure surface temperature with a thermometer.
4. Estimate average ambient temperature.
5. Use the 3E Plus software34 to obtain heat loss data.
6. Select an appropriate desired thickness of insulation (usually between 1 in and
2 in thick).
7. Record the values of heat loss for both the bare surface and the insulated heat
loss for the chosen thickness of insulation.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

3E Plus is available free of charge from the US Department of Energy’s BestPractices program at

- 50 -
Recommended Action:
Tune combustion heating systems for maximum efficiency.

Combustion heating systems must have their air-fuel ratio tuned for maximum efficiency.
If the air-fuel ratio is too low, the combustion process will not be complete, and unburned
fuel will be exhausted. If the air-fuel ratio is too high, excess amounts of heated exhaust
gas, particularly nitrogen, carry energy up the stack. The air-fuel ratio can be determined
from measurements of oxygen in the stack. If excess stack oxygen is found to be either
too low or too high, then corrections can be made to the burner. For natural gas, natural
draft systems, the recommended level of stack oxygen is 4 to 5%; for forced draft
systems, it is less.35

CAUTION: These measurements should be made only by trained personnel

using proper equipment. In addition, adjustments should be made only by
personnel trained for the purpose and who are alert to the safety issues that can
arise from carbon monoxide concentrations. Trained personnel conducting the
measurements may be able to predict cost savings for you. If not, the
spreadsheet associated with this project is designed to calculate savings for
natural gas fired systems using two very common stack measurements (excess
oxygen and temperature).

How to Gather Information:

To determine the potential energy savings due to tuning fired heating systems, perform
the following steps:
1. Determine the annual consumption in CCF per year of natural gas into the
system (perhaps available from energy bills if the system is the only one
operating on the meter, for example).
2. From trained personnel, obtain the percentage of excess oxygen in the exhaust.
3. From trained personnel, obtain the inlet air temperature.
4. From trained personnel, obtain the exhaust gas temperature.
5. Obtain the recommended safe level of stack excess oxygen from the
manufacturer of the system.
Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential natural gas energy savings.

CAUTION: Other fuels have different characteristics. This spreadsheet should not be used for
fired systems that do not use natural gas.

Energy Management Handbook (5th edition), Wayne C. Turner (ed.), Fairmont Press, Inc., Lilburn,
Georgia, 2005, page. 94.

- 51 -

Recommended Action:
Use heat exhausted from equipment to heat other processes.

Some processes exhaust waste heat at high enough temperatures to be useful to provide
heat to other processes. Recovery of waste heat can take many forms, some as simple as
using uncontaminated exhaust heat from an air-cooled air compressor to warm personnel
areas in the winter. A complex, but common use involves recovery of exhaust heat from a
boiler stack to preheat air for combustion processes. This “recycling” of heat energy can
generate significant savings. Any combustion process is a possible source of waste heat,
particularly if its exhaust temperature is above 400 or 500°F.

On the spreadsheet, the source of the waste heat is called the “Hot Fluid”. The application
that will be heated (whether ambient air or a process fluid) is called the “Cold Fluid.”

How to Gather Information:

To determine potential energy savings available from the recovery of waste heat, perform
the following steps:
1. Identify sources of waste heat in your plant
2. For each source, measure and record the exhaust air temperature and the
current temperature at the point of application.
3. Record whether the heat source is powered by natural gas, or electricity.
4. If considering recovering heat for personnel comfort, estimate the percentage
of the year that the area in question is heated.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

- 52 -
Recommended Action:
Repair steam leaks and steam traps to reduce energy and water losses.

Steam systems develop leaks over time just as air systems do. Lost steam carries away
the energy required to make the steam, as well as wasting the water and its associated
water treatment chemicals. Steam leaks are easier to detect than air leaks because some
leaks are visible. Steam traps can also be a major source of leakage in a steam system, as
steam traps usually fail in the open position. Failed steam traps may be visually no
different from properly functioning steam traps, and leaks from failed steam traps often
go undetected. Faulty steam traps can be detected by ultrasonic detectors, industrial
stethoscopes, temperature measurements, and visual observation if the outlet is open.

How to Gather Information:

To estimate the potential energy savings from repairing steam leaks and faulty steam
traps, perform the following steps:
1. Measure boiler efficiency36
2. Record current operating steam pressure, in psig.
3. Locate any steam leaks and estimate the equivalent circular diameter of each
leak orifice.37
4. Determine the number of faulty steam traps in system.
5. Determine the manufacturer and model of the steam trap and then call a
vendor or the manufacturer to obtain the diameter of the circular orifice

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

If boiler efficiency is not measured, use the default value in the spreadsheet.
This method is very rough, but is usually the only cost-effective method available. Measurements are
usually too difficult or expensive. Most visible leaks can be estimated to have orifices between 1/64” and
1/16” in diameter.

- 53 -
Recommended Action:
Turn off motors and other equipment during breaks and after hours when they are not

Equipment is often left running during breaks, lunch, and after hours, when it is not
required. Substantial savings can be realized by simply shutting off equipment that is not
being used.

How to Gather Information:

To determine the potential energy savings due to shutting off equipment when it is not
needed, perform the following steps:
1. Locate any equipment that remains running at times when it is not required.
2. Determine the horsepower (or kilowatts) and efficiencies38 (if available) as
indicated on their nameplates.
3. Estimate the number of hours per day that the equipment can be shut off.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 54 -
Recommended Action:
Use set-back timers to reduce or eliminate after-hours energy consumption.

The installation of set-back timers may reduce energy consumption by equipment that is
not regularly monitored and runs unnecessarily after hours. Set-back timers can be
installed on compressors, area lighting, blower motors for dust collection, and any other
equipment which is not needed when the plant is not in operation. Timers are known to
be more effective than depending on personnel to shut off equipment.

How to Gather Information:

To determine the potential energy savings due to shutting off equipment after hours using
set-back timers, perform the following steps:
1. Locate any equipment that remains running unnecessarily after hours.
2. Determine the horsepower and efficiencies39 (if available) as indicated on
their nameplates.
3. Estimate the number of hours per day that the equipment can be shut off.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

- 55 -
Recommended Action:
Use more efficient lamps for illumination.

Four hundred watt or 1000 W metal halide lamps, or high-pressure sodium lamps are the
most common lamps used in production areas, and often these may be replaced with
more efficient lamps. There are energy-efficient versions of the above lamps that can be
used with the same ballasts and fixtures. For example, 360 W lamps can replace 400 W
lamps and there are industrial highbay T5 fluorescent lights that use about half the energy
of the lamps they replace. Skylights and sidelights can also be used to reduce the load on
a lighting system, but must be used effectively to realize their full potential. Task lighting
at workstations can also allow for highbay lighting to be eliminated or reduced.
Replacing current lamps with more efficient versions can reduce energy usage and costs.

CAUTION: When replacing lamps with lamps of lower wattage, the light level
may be reduced. Assure that the new lamps will provide adequate light for the
working environment. A lighting vendor or other lighting specialist can help make
this determination. When using skylights, be aware that the light will vary during
the day, and late in the afternoon or early in the morning, or on cloudy days, the
lighting system will need to be used.

How to Gather Information:

To determine the potential energy savings due to using more efficient light sources,
perform the following steps:
1. Determine the type of lighting currently used in each area.
2. Record the wattage of each type.
3. Record the number of each type.
4. Determine the operating hours of the lights. In the case of skylights, determine
the number of hours that the skylights will provide adequate illumination.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

- 56 -
Recommended Action:
Switch off outside lights during daylight hours and inside lights that are not in use.

Surprising amounts of energy are wasted on lighting areas that do not need it. Often,
outdoor lights are left on during the day. Warehouses, maintenance sheds, and other
minimally used areas may be lit all day, though only occupied for short durations during
the workday. Additionally, many times lights that are not necessary for security purposes
remain on in office and other areas after business hours. By turning off lights when they
are not needed, energy costs can be reduced substantially.

How to Gather Information:

To determine if your facility is wasting energy on unnecessary lighting, perform the
following steps:
1. Walk through the facility unannounced and look for lights left on:
• Outside during daylight hours
• In unoccupied areas
• Anywhere not required for security or safety after hours
2. Count the number of lamps in use and record the wattage of each.
3. Determine the time that the lights could be turned off by:
• Counting the number of daylight hours (or business hours) for outside
• Estimating the time rarely occupied areas are in use during the day
• Counting the number of after business hours that unneeded lights remain
in use
4. Group the information you have collected by location where lamps were
found, lamp type, and wattage.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential energy savings.

- 57 -
Recommended Action:
Install capacitors to optimize the plant’s power factor.

For facilities whose electric bills are in terms of apparent power, in kVA, any value of
power factor less than one results in an additional charge. Facilities billed in terms of kW
may also have a power factor charge if they are below a base level, typically 0.85 or 0.90.
Charges for low power factor may be reduced or even eliminated under many
circumstances by installing an appropriate amount of capacitance. Capacitors typically
have a reasonably long service lifetime and require little maintenance attention.

CAUTION: Capacitors can amplify the effect of harmonics. You should ensure
that any capacitors you install would not result in safety or equipment problems.
If harmonic amplification may be a problem for your facility, there are filters that
can reduce this.

How to Gather Information:

To determine the potential annual demand cost savings due to optimizing the power
factor, perform the following steps:
1. Determine the power factor and either the kW or the kVA from the bills
representing a year of electricity consumption.40
2. If you are billed in kW, determine the base level for the penalty from your rate
schedule or electricity provider. (If you are billed in kVA, there will be no
base level, but you are being charged for power factor for anything other than
a perfect 1.00.)41

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential annual demand cost savings.

Most utilities will show power factor and either kW or kVA. It is possible your utility displays something
different such as kVAR rather than power factor. In that case, this spreadsheet cannot be used, but your
utility account representative probably can easily tell you if you have a power factor penalty, and how
much your power factor costs on an annual basis.
The spreadsheet will calculate savings for correction to the base level for plants billed in kW and for
correction to unity for plants billed in kVA.

- 58 -
Recommended Action:
Adjust operations such that electrical demand is reduced.

A significant portion of a manufacturing facility’s monthly energy bill may be demand
charges.42 A facility’s electrical demand may be reduced in several ways. Processes that
do not need to run during working hours (for example, recharging electric-powered
equipment such as forklifts) can be rescheduled to off-shift hours, which usually coincide
with the electric utility’s off-peak hours. Motors that cycle on and off during a shift
should have their cycles fit to a schedule so that as few as possible operate during one
demand period.

How to Gather Information:

To determine the potential demand cost savings due to limiting the demand, perform the
following steps:
1. Decide which operation(s) could be eliminated or rescheduled to avoid
coincidence with the peak demand period.
2. Determine the horsepower of the motors associated with this operation(s) and
their efficiencies.43

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
estimation of potential demand cost savings.

For information on how electric utilities charge for demand, see section 3.2 of this document.
For unknown efficiencies, consult MotorMaster+ v. 4.0 software, provided free of charge by the US
Department of Energy’s BestPractices program:, or
use the default value provided in the spreadsheet.

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Recommended Action:
Replace old or inefficient chillers with more efficient chillers.

Modern chillers can be significantly more energy-efficient than older models. Estimating
the savings due to replacing the chillers can easily be done with information available
from the manufacturer(s) of your old chillers and of newer chillers.44

How to Gather Information:

To estimate the cost savings due to switching to more efficient chillers, perform the
following steps:
1. Determine the number of chillers, their size (tons) and their model numbers.
2. Contact the original equipment manufacturer and request the average
performance in kW/ton of the chillers at three-quarters load.45
3. Obtain the corresponding kW/ton at three-quarters load for a new, energy
efficient chiller.
Note: If the operating hours of your chiller(s) differ substantially from those of the
facility, you will need to change the operating hours on the “Plant Statistics” page of the
spreadsheet in order to receive an accurate estimate.

Calculation of Savings:
After performing these steps, insert the data obtained into the spreadsheet provided for
calculation of potential demand cost savings.

This information likely is not readily available in your plant records, but can be obtained from
manufacturers or manufacturers’ representatives.
If the actual load on the chiller is known, obtain the kW/ton at that load. Otherwise, use three-quarters
(75%) load for an industrial situation.

- 60 -
5: Additional Resources on Industrial Energy Efficiency
This section describes resources of particular interest to Texas manufacturing facilities.

5.1 Organizations, Training and Technical Assistance

Training and technical assistance to identify opportunities or implement projects is

available from the following organizations at no or low cost. Links are provided so you
can see specifically what is offered by these organizations.

• Texas Industries of the Future. The project, located at the University of Texas at
Austin, coordinates DOE Best Practices end-user training throughout the State
and organizes conferences and training on industrial energy-efficiency topics.
One-day training is offered on each subject: pumps, motors, fans, steam, process
heating, and compressed air. The training schedule and workshop agenda are
available on the web at or 512-232-4823. In
addition, the website has a calendar of training and conferences on any industrial
energy efficiency topics of interest to Texas manufacturers.

• US DOE Industrial Assessment Centers. The two US DOE Industrial Assessment

Centers in Texas provide energy, waste, and productivity assessments at no
charge to small and mid-sized manufacturers. Assessments help plants maximize
energy efficiency, reduce waste, and improve productivity. On average,
recommended actions from an assessment result in annual cost savings of
$55,000. The university-based IAC team conducts a one-day site visit and
performs an assessment. Within 60 days, a report detailing the analysis, findings,
and recommendations, is sent to the client. In six to nine months, follow-up phone
calls are placed to the plant manager. Centers are funded by the Department of
Energy Industrial Technologies Program. For further information about a site
assessment, contact either of the two Industrial Assessment Centers in Texas or
the national office:

o Industrial Assessment Center national contact, or

phone (732) 445-5540.
o Texas A&M University, or 979-845-
o University of Texas at Arlington, or 817-272-

• Texas Manufacturing Assistance Centers (TMAC) was formed in 1996 to

improve and insure the competitiveness of small businesses in the state of Texas.
For the past 9 years, TMAC has successfully worked with dozens of organizations
across the state to implement EMS programs and help companies achieve
ISO14001 certification. TMAC is currently partnering with the Environmental
Protection Agency and the Texas Commission on Environmental Quality (TCEQ)
to educate organizations in the state of Texas about the Texas Environmental

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Management System (EMS) program. TMAC has implemented Performance
Based Environmental Management Systems (EMS) in over 15 organizations in
the state, including both larger corporations and local governments. TMAC has
reached over 300 companies, local governments and other organizations to
educate them on the benefits of implementing Performance Based Environmental
Management Systems. Free assessments are offered covering the following areas:
energy assessments and compressed air system leak audits. TMAC also offers
project implementation assistance at a cost affordable to small manufacturers.
Contact Kurt Middelkoop at the Texas Manufacturing Assistance Center, 817-
307-0613 or email

• TCEQ’s Pollution Prevention and Industry Assistance Section offers

organizations free pollution prevention assistance from experienced professionals.
The TCEQ has assembled a staff of professional engineers and scientists with
substantial experience in private industry who can look at your facility with a
fresh pair of eyes. These non-regulatory site visits target waste reduction, water
conservation and energy efficiency. In addition, the TCEQ also offers
Environmental Management System audits and training for facilities participating
in the Clean Texas, Cleaner World program. For more information, e-mail the
Engineering and Technical Assistance Team at 512-239-3100 or

• Gulf Coast Regional Cooling, Heating and Power Application Center. Located at
the Houston Advanced Research Center, the CHP Application Center facilitates
implementation of CHP in Texas, Louisiana, and Oklahoma. They promote the
deployment of integrated systems that provide both electrical generation and
thermal energy that can be used to provide heating and/or cooling for buildings or
industrial manufacturing applications. If you are interested in technical assistance
on a CHP project or to assess your potential for CHP, contact Dan Bullock at 281-
364-6087 or at

• US DOE’s Energy Efficiency and Renewable Energy Information Center. Got a

question about a technical issue, how to find a DOE document or use a DOE
software tool? Call them at 1-877-EERE-INF (877-337-3463) or email to

5.2 Funding for Improvements

• Check with Your Local Utility. See the example at

• Standard Offer Programs for Commercial and Industrial Customers.


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5.3 Tools

There are a number of software tools available on the web at no charge. These can assist
you to analyze your current systems to identify inefficiencies, evaluate potential projects
or set up energy management plans. Software tools of interest to manufacturing facilities
are found below:

• The Department of Energy’s Industrial Technology Program website offers

software tools that address the following systems: pumping, chilled water,
compressed air, combined heat and power, fans, steam systems, motors,
insulation, plant energy profiles, and NOX and energy tradeoffs from combustion
equipment. A
description of each of the tools is provided in Appendix 1. Affordable training
from DOE is provided on these tools and is available in Texas through the Texas
Industries of the Future

• ENERGY STAR has a tool that allows you to assess your energy management

• Building Energy Tools Software Directory.

5.4 Reference Documents

Other documents that users of this manual would find of interest include:

• “Self-Assessment Workbook for Small Manufacturers”, Version 2.0, October.

2003, Rutgers University. This document contains other projects small
manufacturers may find of interest, including waste reduction projects. Download
it from
• “Improving Steam System Performance, A Sourcebook for Industry”, US DOE,
Energy Efficiency and Renewable Energy, Industrial Technologies Program.
Document number DOE/DO-102004-1868. This excellent resource for steam
system operators contains additional opportunities, tools, resources and tip sheets.
Download it at
• “Improving Compressed Air System Performance, A Sourcebook for Industry”,
US DOE, Energy Efficiency and Renewable Energy. Document number
DOE/GO-102003-1822. This excellent resource for compressed air system
operators contains additional opportunities, tools, resources and tip sheets. It was

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produced as part of the Compressed Air Challenge. Download it at

5.5 Websites

The following websites are a source of technical, non-commercial information on

industrial energy efficiency topics, Environmental Management Systems and Texas
electric deregulated markets.

When searching the internet, if you are interested in viewing only resources
TIP available from certain organizations or types of organizations, after you type in
the search string (ex: boilers case studies), you can type in the initials of the
organization (example: DOE) or the initials of the type of domain (example: .gov
or .org or .com). Your query will be limited to the internet pages from those

5.5.1 US Department of Energy

Best Practices Program, US DOE. This website offers a large variety of case studies, tip
sheets, documents and software tools of interest to plant engineers or managers.

Cool Roof Calculator for Small and Medium Sized Facilities, US DOE. This version of
the calculator is for small and medium-sized facilities that purchase electricity without a
demand charge based on peak monthly load.

Cool Roof Calculator for Large Facilities, US DOE. This version of the calculator is for
large facilities that purchase electricity with a demand charge based on peak monthly

ENERGY STAR for Businesses. This site contains a number of resources for businesses
in certain sectors and for corporations.

“How To Buy Energy Efficient Cool Roof Products”, US DOE. Includes a calculator to
figure out your savings.

Industrial Assessment Centers This site contains a variety of

documents related to energy and productivity efficiency of interest to small

Industrial Technologies Program, US DOE.

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Industry Plant Managers and Engineers, US DOE.

5.5.2 National Organizations and Campaigns to Improve Energy Efficiency


Association of Energy Engineers. Offers online training on a large variety of energy


Compressed Air Challenge.

Hydraulic Institute.

Motor Decisions Matter. This national campaign offers guidelines on how to develop a
motor management program that will cut costs and energy usage at your facility. Includes
case studies.

“Steaming Ahead”, newsletter covering steam topics.

5.5.3 Environmental Management Systems

For Texas plants, the following resources may assist you in the development and
implementation of an EMS:
• Texas Manufacturing Assistance Center:
• Texas Commission on Environmental Quality:
o A Guide to Developing an Environmental Management System for a
Small Business:
o A Model Environmental Management System for a Small Business: Metal
• Public Entity Environmental Management System Resource Center:
• United States Environmental Protection Agency: National Environmental
Performance Track:

5.5.4 Texas Electric Markets

This website will help you compare different offers from Retail Electric Providers. It also
explains your rights and enables you to see who offers retail service in your area.

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Appendix 1: Software Decision Tools for Industry from DOE
The following software tools are available from the DOE BestPractices website at no-cost
or you may order a CD from the Energy Efficiency and Renewable Energy Resource
Center (see end of list for instructions).

Chilled Water System Analysis Tool (CWSAT) Version 2.0

Use the Chilled Water System Analysis Tool (CWSAT) to determine energy
requirements of your system, and to evaluate opportunities for energy and costs savings
by applying improvement measures. Provide basic information about an existing
configuration to calculate current energy consumption, and then select proposed
equipment or operational changes for comparison. The results of this analysis will help
you quantify the potential benefits of chilled water system improvements.
Fact Sheet (PDF 749 KB) Download Acrobat Reader
Download software from

Combined Heat and Power Application Tool (CHP)

The Combined Heat and Power (CHP) Application Tool helps industrial users evaluate
the feasibility of CHP for heating systems such as fuel-fired furnaces, boilers, ovens,
heaters, and heat exchangers. It allows analysis of three typical system types: fluid
heating, exhaust-gas heat recovery, and duct burner systems. Use the tool to estimate
system costs and payback period, and to perform "what-if" analysis for various utility
costs. The tool includes performance data and preliminary cost information for many
commercially available gas turbines and default values that can be adapted to meet
specific application requirements.
Fact Sheet (PDF 740 KB) Download Acrobat Reader
Download software from

Fan System Assessment Tool (FSAT)

Use the Fan System Assessment Tool (FSAT) to help quantify the potential benefits of
optimizing fan system configurations that serve industrial processes. FSAT is simple and
quick, and requires only basic information about your fans and the motors that drive
them. With FSAT, calculate the amount of energy used by your fan system; determine
system efficiency; and quantify the savings potential of an upgraded system.
Fact Sheet (PDF 740 KB) Download Acrobat Reader
Download software from

MotorMaster+ 4.0
An energy-efficient motor selection and management tool, MotorMaster+ 4.0 software
includes a catalog of over 20,000 AC motors. This tool features motor inventory
management tools, maintenance log tracking, efficiency analysis, savings evaluation,
energy accounting, and environmental reporting capabilities.
Fact Sheet (PDF 673 KB) Download Acrobat Reader
Download software from

NOX and Energy Assessment Tool (NxEAT)

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The NOX and Energy Assessment Tool (NxEAT) helps plants in the petroleum refining
and chemical industries to assess and analyze NOX emissions and application of energy
efficiency improvements. Use the tool to inventory emissions from equipment that
generates NOX, and then compare how various technology applications and efficiency
measure affect overall costs and reduction of NOX. Perform "what-if" analyses to
optimize and select the most cost-effective methods for reducing NOX from systems such
as fired heaters, boilers, gas turbines, and reciprocating engines.
Fact Sheet (PDF 693 KB) Download Acrobat Reader
Download software from

Plant Energy Profiler for the Chemical Industry (ChemPEP Tool)

The ChemPEP Tool provides chemical plant managers with the information they need to
identify savings and efficiency opportunities. The ChemPEP Tool enables energy
managers to see overall plant energy use, identify major energy-using equipment and
operations, summarize energy cost distributions, and pinpoint areas for more detailed
analysis. The ChemPEP Tool provides plant energy information in an easy to understand
graphical manner that can be very useful to managers.
Fact Sheet (PDF 807 KB) Download Acrobat Reader
Learn more about the ChemPEP Tool
Download software from

Process Heating Assessment and Survey Tool (PHAST)

Process Heating Assessment and Survey Tool (PHAST) provides an introduction to
process heating methods and tools to improve thermal efficiency of heating equipment.
Use the tool to survey process heating equipment that uses fuel, steam, or electricity, and
identify the most energy-intensive equipment. You can also perform an energy (heat)
balance on selected equipment (furnaces) to identify and reduce non-productive energy
use. Compare performance of the furnace under various operating conditions and test
"what-if" scenarios.
Fact Sheet (PDF 713 KB) Download Acrobat Reader
Download software from

Pumping System Assessment Tool 2004 (PSAT)

The Pumping System Assessment Tool helps industrial users assess the efficiency of
pumping system operations. PSAT uses achievable pump performance data from
Hydraulic Institute standards and motor performance data from the MotorMaster+
database to calculate potential energy and associated cost savings.
Fact Sheet (PDF 706 KB) Download Acrobat Reader
Download software from

Steam System Tool Suite

If you consider potential steam system improvements in your plant, the results could be
worthwhile. In fact, in many facilities, steam system improvements can save 10% to 20%
in fuel costs.
To help you tap into potential savings in your facility, DOE offers a suite of tools for
evaluating and identifying steam system improvements. Learn more about the tools and
specialized training, and download software here.
Fact Sheet (PDF 733 KB) Download Acrobat Reader

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Steam System Scoping Tool (SSST)
This tool is designed to help steam system energy managers and operations personnel to
perform initial self-assessments of their steam systems. This tool will profile and grade
steam system operations and management. This tool will help you to evaluate your steam
system operations against best practices.
Download software from

Steam System Assessment Tool (SSAT) Version 2.0.0

The Steam System Assessment Tool (SSAT) allows steam analysts to develop
approximate models of real steam systems. Using these models, you can apply SSAT to
quantify the magnitude—energy, cost, and emissions-savings—of key potential steam
improvement opportunities. SSAT contains the key features of typical steam systems.
Download software from

3E Plus Version 3.2

The program calculates the most economical thickness of industrial insulation for user
input operating conditions. You can make calculations using the built-in thermal
performance relationships of generic insulation materials or supply conductivity data for
other materials.
Download software from

Ordering Information: You can order a CD with the MotorMaster+ (MM+), Pump
System Assessment Tool, Steam System Tool Suite, 3E Plus and the new AirMaster+
software or get help on software installation and operation from the EERE Information
Center at 1-877-EERE-INF (877-337-3463) or email to

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