Today, President Obama signed an Executive Order to facilitate investments in industrial energy efficiency that will strengthen American manufacturing and help create jobs. These efforts to boost industrial energy efficiency, including combined heat and power systems, can save manufacturers as much as $100 billion in energy costs over the next decade, improving their bottom lines and strengthening U.S. manufacturing competitiveness. These types of efficiency measures will reduce energy consumption and reduce harmful emissions.
"Today, we are taking another step to strengthen American manufacturing by boosting energy efficiency for businesses across the nation," said President Obama. "This action will cut costs, increase efficiency, and help our businesses create strong, middle class jobs. We'll continue to do everything we can to put more people back to work and build an economy that lasts."
While manufacturing facilities have become more energy efficient over time, there is an opportunity to accelerate and expand this trend with investments that reduce energy use through more efficient manufacturing technologies and processes, such as the expanded use of efficient, on-site heat and power generation, known as combined heat and power (CHP). This Executive Order builds on important steps the Administration has taken to scale up private sector investments in energy efficiency in our homes, buildings, and factories with efforts like the Better Buildings Initiative and investments upgrading homes around the United States.
In addition, it directs the Departments of Energy, Commerce, and Agriculture, and the Environmental Protection Agency, to coordinate actions at the Federal level while providing policy and technical assistance to states to promote investments in industrial energy efficiency. The Executive Order also directs agencies to foster a national dialogue through ongoing regional workshops to encourage the adoption of best practice policies and investment models that overcome barriers to investment, provide public information on the benefits of unlocking investment in industrial energy efficiency, and use existing Federal authorities that can support these investments.
Today's Order also establishes a new national goal of 40 gigawatts of new combined heat and power capacity by 2020, a 50% increase from today. Meeting this goal would save energy users $10 billion per year, result in $40 to $80 billion in new capital investment in manufacturing and other facilities that would create American jobs, and would reduce emissions equivalent to 25 million cars.