When it comes to energy-efficiency projects or green initiatives designed to reduce your facility's dependence on fossil fuels, sometimes it takes money to save money. And therein lies the rub. While few manufacturers dispute the importance of such green measures, not all businesses have the dollars to dole out for such initiatives, or at least believe they have the upfront dollars required for a payback that may be a ways down the road. Still, 71% of respondents to a recent survey commissioned by the International Facility Management Association and Johnson Controls reported that they are paying more attention to energy efficiency than they were one year ago. And of organizations that have made public carbon commitments, 45% have identified energy efficiency in buildings as their top carbon-reduction strategy.

That said, funding, or more specifically a lack thereof, likely puts a damper on energy-efficiency projects. According to additional results from the Energy Efficiency Indicator survey, which queried more than 1,400 North American executives responsible for energy use in their facilities, 42% of respondents said limited capital availability for projects is a barrier to their efforts to save energy. Another 21% cited unattractive paybacks as a barrier. And nearly 50% require payback periods of fewer than three years. On the other hand, 44% said utility or government incentives are very or extremely influential in making energy-efficiency decisions. That's up from 38% in 2008.

Clearly, energy-efficiency and other green initiatives are getting done. Capital budgets, operational budgets and yes, continuous improvement budgets, are many manufacturers' primary funding sources for such endeavors. But for organizations willing and able to do the required homework, utility and government incentives can ease the burden of funding internal energy projects.

A Strategic Approach to Energy Management

CalPortland Co. spends more than $100 million per year on energy. That cost alone would explain the interest this Glendora, Calif.-based producer of cement, concrete and asphalt has in energy efficiency, but it doesn't tell the entire story. Environmental regulations are another factor in CalPortland's efforts. Less fossil fuel energy usage translates to fewer greenhouse gas emissions, points out Steve Coppinger, director of energy services. "The third [reason] is to do the right thing and be conscientious about the communities where we work, where our businesses are."

CalPortland takes a strategic approach to managing energy. Its energy portfolio includes wind to help power its Mojave, Calif., cement plant.

CalPortland has partnered with the EPA's Energy Star program (and is in fact a five-time Energy Star award winner) to develop a corporatewide, strategic approach to energy management. This approach has helped the company save more than $6 million since it was implemented. The Energy Star program also has been a source for free consulting services and facilitates the sharing of energy best practices through industry focus groups, Coppinger says.

The CalPortland director of energy services says the manufacturer's energy management approach includes taking advantage of energy resources and incentives available in the locations in which it operates. For example, it has partnered with several California utilities to jointly conduct energy-efficiency plantwide assessments at two locations. The first of the two week-long plantwide assessments was performed at no cost to CalPortland as a pilot program, while the company shared costs on the second assessment, which was conducted by a third party.

"We identified $3.7 million in potential energy savings, and it cost us about a total of $10,000 to come up with those numbers," Coppinger says, "We've worked on many of [the opportunities] and completed several of the projects that were a result of the assessments." Not only that, part of the service provided by the third party that conducted a plantwide assessment included filling out applications for rebates on projects that had been identified. "As a result of that we've gotten some very substantial rebate money from the utility," he says.

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