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E3 Initiative: Helping Small, Mid-Size Manufacturers Become More Energy Efficient

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Date: Nov 30, 2010

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On Sept. 25, 2010, five federal agencies—the U.S. Department of Energy (DOE), U.S. Department of Commerce (DOC), U.S. Environmental Protection Agency (EPA), U.S. Small Business Administration and the U.S. Department of Labor (DOL)—signed a Memorandum of Understanding in collaborative support of the Economy, Energy and Environment Initiative (E3). The E3 initiative draws upon active federal resources and programs across participating agencies to assist small and medium manufacturers in becoming more efficient, competitive and sustainable.

E3 was founded on the premise that manufacturing energy efficiency, pollution prevention, productivity and competitiveness is all interdependent. Through the coordinated delivery of federal resources, as well as partnerships with local stakeholders, E3 provides access to a comprehensive suite of services that identify improvements, assist in design, finance and execute upgrade projects, and provide training for ongoing operations and maintenance.

The E3 Process

As the first step of the E3 process, participating manufacturers receive technical assessments drawing on methods from DOC Lean and Clean audits, DOE Energy Savings Assessments, and EPA Pollution Prevention evaluations. Assessments are performed by a broad network of technical experts comprised of specialists from DOC’s Manufacturing Extension Partnerships (MEPs) and DOE’s Industrial Assessment Centers.

To encourage subsequent improvements, the E3 program helps small manufacturers identify available funding, often through state and local grants, cost-sharing with local utilities or negotiating federally backed loan guarantees with local banks. Finally, E3 leverages DOL “green jobs” and workforce development grants to provide participants with employee training to ensure continuous improvement and long-term performance.

Boots on the Ground in Alabama

Despite recently launching a promising E3 project, Alabama really began prioritizing industrial energy efficiency through its Department of Economic and Community Affairs in 2005. The state-led effort then got a significant lift in 2009 from a three-year Save Energy Now grant from the DOE Industrial Technologies Program. Resources from that grant also helped fund the nation’s first statewide E3 pilot.

Managed by the Alabama Technology Network, Alabama’s E3 program is using existing federal, state and local expertise and resources to support local industries, such as several auto manufacturing suppliers, in their efforts to reduce energy consumption. Expected benefits from the comprehensive and integrated improvements include greater profitability and cost competitiveness for suppliers and manufacturers as well as a strengthened state economy.

Leveraging Federal Resources in State, Local Programs

Based on the pilot programs already underway in Wisconsin, West Virginia, the Carolinas, Texas and Ohio, the E3 initiative demonstrates how federal resources can be successfully adopted under state and local programs to productively engage small manufacturers.

E3 initiatives are under discussion in states such as Colorado, New Mexico, Washington, Illinois, Virginia, Oklahoma and Pennsylvania. The interagency collaboration behind the E3 program offers a holistic and practical approach to tackling a range of sustainability issues, streamlining service delivery, leveraging each agency’s core strengths and encouraging project implementation among participating manufacturers.

Partners Involved in E3 initiatives