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Industries related to automotive manufacturing and its supply chain play a key role in leaving a carbon footprint during an automobile's life cycle. Per the report from Lawrence Berkeley National Laboratory (LBNL) in March, 2008 [1], “motor vehicle industry in the U.S. spends about $3.6 billion on energy annually.” The proposed research will focus on energy savings opportunities in automotive manufacturing and its supplier network. The US Department of Energy (DOE) funds 24 Industrial Assessment Centers (IAC) throughout the U.S. that conduct energy assessments at many of these facilities. The results of these assessments are summarized in a database maintained by Rutgers University which acts as the central management body for all the IACs. This research will present key concepts summarized from this database.

Automotive industries in the US and around the world have enormous impact on the economy of each country. Not just the major vehicle manufacturer, but all the other companies in the supply chain are equally important. This was evident with the earthquake and Tsunami that happened in March 2011. Because of the massive destruction at suppliers' facilities, the automakers in the US and other countries struggled to get the necessary parts and supplies. This created a ripple effect throughout the world and led to the closure of several automakers' facilities for a long time. Thus, the automotive supply chains are as important as the main automotive manufacturing facilities. Since these suppliers produce a lot of parts and supplies, the corresponding energy usage is also significant. The current research is focused on compressed air and process heating system analysis at one of the automotive parts manufacturer in Mexico.

This research attempts to investigate the effect of change in system curve on the energy intensity method of measurement and verification of energy savings. With recent push from US government on energy efficiency through EPACT 2007 and upturn in performance contracted energy efficiency project implementations the effective and accurate evaluation of energy savings as compared to the baseline is of paramount importance. The authors have studied different methods of Measurement and Verification (M&V) of energy savings from literature to compare and contrast and clearly bring out merits and de-merits of each. Finally, the role of production level variable plays in establishing the baseline energy usage is discussed. Though modern models proposed in the literature of determining baseline energy usage consider production level, this variable is compounded from two variables viz., time of usage of a system and fraction of total capacity usage.