Clean Energy Handbook 2009

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Sponsored Editorials Making energy work for you By Skip Schick While renewable energy is appealing, the starting point to address energy issues should be conservation. Energy efficiency is the most cost-effective way to address our energy and environmental challenges. Because buildings consume a huge amount of energy—48 percent of all that is used in the country—they must be our first priority in the push for greater efficiency. BetterBricks has the resources to help you make the most of every kilowatt and every energy dollar. BetterBricks is the commercial building initiative of the non-profit Northwest Energy Efficiency Alliance, which is supported by regional utilities.

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Seize the Opportunity Energy management is a business opportunity. Companies that understand that and have the vision and commitment to pursue it reap big benefits. These companies examine their energy related business practices strategically. This not only sets in motion changes throughout the company that result in a great return on investment through energy savings, it also yields big benefits to the company’s core business or mission. Mobilize Your Company Successful companies communicate expectations throughout the company and mobilize the organization to carry out action plans to achieve company goals and targets. The focus here is on key energy related business practices including building operations, purchasing & procurement, capital improvements, and building design & construction. Investing in staff training and engaging outside service contractors and expertise can help ensure the capability to succeed. And like other areas of business focus, the job is never done. Best practice continues to advance, and continuous improvement is the norm. Get Educated and Stay Informed BetterBricks.com is a convenient, go-to resource where you’ll find a wealth of practical, user-friendly information about energy efficiency. BetterBricks partners with leading local and national organizations to offer a variety of education opportunities to business and building professionals about the benefits and strategies of energy efficiency. These workshops, seminars, and trainings aim to provide tools, technical and business skills to help better incorporate energy efficiency into business practices. Stay up to date with the latest on events, training opportunities and news with the BetterBricks e-newsletter. Sign up at www.BetterBricks.com. Skip Schick is the senior manager of the Northwest Energy Efficiency Alliance’s BetterBricks initiative. Contact Skip at [email protected].

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Achieving operational excellence By Perry England MacDonald-Miller, a regional leader in building performance services, can help you achieve your operating and budget objectives—with the highest efficiency and greatest predictability. In 2008/2009, total customer incentives achieved for completed MacDonald-Miller projects exceeded $2 million. Utility bill savings to customers was about $370,000. Following is a list of some incentives for building performance measures. Puget Sound Energy Custom grants can cover up to 70 percent of project cost, depending on estimated savings and cost effectiveness. Measures Covered: Lighting retrofits, HVAC systems and controls, Building energy optimization, Efficient water heating, Industrial process systems, Elevators and escalators and Compressed air. Prescriptive rebates pay per unit if installed equipment meets rebate criteria. Measures Covered: Variable speed drives, High efficiency motors, Programmable thermostats, High efficiency air conditioning and heat pumps, Gas boiler tune-ups, Premium HVAC service program, Commercial laundry boilers, Commercial laundry water heaters, Ceiling or wall mount lighting controls, Hospitality industry rebates, Small business lighting program, LED exit signs and Efficient kitchen equipment. Seattle City Light Custom grants can cover up to 70 percent of the project cost depending on estimated savings. Measures Covered: Lighting retrofits, HVAC systems and controls, Elevators and escalators and Energy analysis assistance. Standard incentives pay $0.17 - $0.23 per kilowatt-hour saved up to 70 percent of the project cost. Measures Covered: Variable Speed Drives, High Efficiency Motors, High Efficiency A/C & Heat pumps, HVAC & Lighting Controls, Hospitality Industry Rebates, Small Business Lighting program and Industrial Process Loads, Tacoma Power HVAC Custom Grants - Incentives of $0.23/ kWh first year kWh saved, up to maximum of 70% of project cost. Measures Covered: HVAC equipment and Controls, Heat recovery systems, Economy cooling, Demand controlled ventilation, Bldg envelope insulation, HVAC controls, Variable flow systems, Compressed air and Efficient kitchen equipment Zero percent interest loans are available for qualified projects. Perry England is the vice president of building performance services for MacDonald-Miller Facility Solutions. Contact Perry at 206-768-4218 or [email protected]

Online Collaboration: The Greenest Competitive Advantage By Mike Mansbach If real estate is all about location, location, location, global business is all about collaboration, collaboration, collaboration. It’s also about working smarter by leveraging the right technology to rise above your competitors and succeed in today’s challenging economic climate. Online collaboration with Citrix® GoToMeeting® Corporate enables you to instantly and cost-effectively meet with distributed employees, partners or clients located anywhere in the world — without ever stepping foot inside an airport. Easily conduct on-thefly or scheduled presentations, perform demonstrations in real time, collaborate on documents or provide in-depth training. Collaborating online using GoToMeeting Corporate significantly reduces the need for costly business travel. And by reducing travel, you also: Reduce Carbon Emissions: The true cost of business travel cannot be calculated in dollars and cents alone. Excessive business travel takes its toll on the environment, a finding underscored by the proliferation of carbon offsets one can purchase to counterbalance the negative impact of travel on the planet. But why travel at all if you can effectively meet online? Cut Travel Costs: Business travel is not cheap. Today’s fuel costs have significantly augmented ticket prices, and often the cost of a single trip to attend an offsite meeting runs into the thousands. Plus, business travel inevitably results in countless hours of downtime in airports, taxi queues, restaurants and hotels. With GoToMeeting Corporate, you can meet instantly —no lines, no weather delays and no huge expense reports. Increase Productivity and Efficiency: Meetings aren’t always planned out in advance. Sometimes you need to get the team in a huddle to brainstorm a new project or provide a new game plan midseason. With online collaboration, cost-effectively assembling employees, prospects or partners can be done in a matter of seconds. With that kind of efficiency, projects get done much faster and sales cycles are shortened. Innovate to compete by implementing GoToMeeting Corporate— your ticket to working smarter and greener by eliminating unnecessary travel, increasing productivity and reducing your carbon footprint. Mike Mansbach, online globetrotter, is Vice President and General Manager of Field Marketing and Global Sales at Citrix Online. Contact [email protected].

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Table of Contents 9 Determine a baseline Rising energy prices and awareness about climate change is leading

more businesses to develop sustainability goals. Learn the critical first steps to creating an Energy Plan.

13 Energy reduction

From buildings to commuting to delivery of goods, all businesses can make improvements that cut back on energy use and save money. Learn about the tools, technologies, organizations and incentives available to help businesses of all sizes reduce their energy impacts.

29 Renewables

Continued increases in electricity prices mean more businesses view onsite renewable energy generation as a key business solution. Learn about the return on investment of renewable energy technologies as well as the innovative financing solutions, incentives and stimulus dollars available to small business.

35 Carbon offsets

Most-often viewed as the final step in a Clean Energy Plan, voluntary carbon offsets, if purchased from a valid source, allow companies to invest in renewable energy and efficiency projects outside of their own businesses.

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Editor’s Note Welcome to Sustainable Industries’ 2009 Clean Energy Handbook for Business. Today’s companies are faced with the difficult challenge of meeting sustainability mandates while keeping within modest operations budgets. Smart energy management is a key tool in addressing greenhouse gas emissions and is a proven way to reduce operations budgets, yet in today’s economy, a tight capital market and reduced consumer spending makes it harder for companies to invest in clean energy solutions. There are many ways, however, to seize generous incentives, stimulus money, loans and innovative financing solutions to invest today in technologies that make sense for business, the environment and the health of employees and communities. With input from many leading industry experts in the fields of energy management, carbon markets and renewable energy, we’ve expanded upon and updated our 2008 Clean Energy Handbook for Business to include additional information about renewable energy technologies, the smart grid and stimulus funding, to name a few areas that received more attention in 2009. As members of the sustainable small business community, Sustainable Media Inc. knows as well as any company the limitations businesses have in terms of time and money. With the Clean Energy Handbook for Business, one of numerous free Sustainable Industries Business Guides published by Sustainable Media Inc., we aim to provide essential tools for energy reduction that go well beyond the low-hanging fruit. We also aim to explain the basics of investing in onsite renewables to further companies’ efforts in gaining independence from fluctuating energy prices. Lastly, we help companies that can’t or have no need to invest in renewable technologies for their own facilities determine how to use carbon offsets, innovative commuting programs and other tools to reduce company expenditures and greenhouse gas emissions. Over the next 25 years, emissions from commercial buildings are expected to grow faster than in any other sector, at 1.8 percent annually. Businesses that take advantage of the current lull in the real estate market to improve their assets will be well poised when the market recovers. Occupancy rates of buildings certified by the U.S. Green Building Council’s Leadership in Energy and Environmental Design rating system are among the highest in the nation—and for good reason. Such buildings save both building owners and tenants money in utility bills and other operational costs. They are also known to provide healthier work environments that attract leading-edge businesses that care about their triple bottom line, as well as top-notch employees who care about their work environment as much as they care about the global environment. There is a clear and deliberate reason for the organization of the Clean Energy Handbook for Business: It starts with setting a baseline and creating a plan for energy management and then moves on to provide tips for reducing energy use. Investing in renewables is a clear “second tier” of clean energy management. And lastly, after both energy efficiency and renewables have been addressed, businesses often consider carbon offsets. In the final section of the Clean Energy Handbook for Business, find out where to begin to search for offsets and how to discern if they are real and verifiable. We hope you’ll use the Clean Energy Handbook for Business, along with the Sustainable Industries’ Green Office Guide (available for free at www.sustainableindustries.com/resources) to begin or continue transforming your business into one that’s ready for the New Economy. Thank you for taking the time to learn more about what we believe to be the most pressing issue facing businesses, nonprofits, governments and individuals today. We look forward to hearing your feedback. Please send comments and feedback to [email protected].

Brian Back Publisher and Founding Editor Sustainanle Industries

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Becky Brun Editor Sustainable Industries

Charles Redell Associate Editor Sustainable Industries

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Determine a Baseline

Fast Facts

If manufacturers cut back their energy use by 10 percent, they would save almost $10.4 billion annually.

Although office buildings have the second largest amount of square footage, they consume the most energy of all building types, accounting for 19 percent of all commercial energy consumption. About 30 percent of the energy consumed by U.S. buildings is done so inefficiently or unnecessarily. On average, a building can achieve a 20 percent to 30 percent improvement in energy efficiency where the majority of improvement doesn’t require capital expenditures for new equipment. Source: Environmental Protection Agency

While more companies are making a commitment to sustainability, implementing a sustainability plan takes time, focus, determination and, of course, money. Sustainable Industries’ 2009 Green Office Guide (available as a free download at: www.sustainableindustries.com/resources) is a comprehensive resource for businesses working to create and implement a company-wide sustainability plan. However, a company’s physical location is probably the most resource intensive part of business operations, and the Clean Energy Handbook aims to address facilities and transportation in greater detail. In today’s economy, tightening budgets and shrinking labor forces are making it harder than ever for business owners and building managers to work toward energy-reduction goals. Even with innovative technologies such as smart meters and sensors that provide occupants with energy use data in real time, someone within the company must make the time to analyze the data and implement energy reduction strategies. Such a role can be played by the business owner, building manager, financial officer, office manager or any employee with a dedication to ensuring energy-reduction measures get taken. While many Sustainable Industries readers have already made huge strides in reducing energy, many companies are still at square one. This section offers a blueprint for companies that want to set energy reduction goals but don’t know where to begin. Determining a baseline is a valuable and necessary first step. The baseline is the way in which companies determine their improvements and new goals. Therefore, this section is one businesses will always come back to.

Rules of thumb • Establish an “energy team.” The team should include at least one, if not all of the following: facility manager, member of the maintenance crew and CFO. The energy team works to gain buy-in from key stakeholders (including employees), facilitate an energy audit and monitor the company’s energy reduction plan. • Start at the beginning. Estimate the costs of your current energy consumption. Collect and review utility bills, including electricity, heating and cooling, for the past two years to establish benchmarks. Create or obtain a building profile, which includes architectural blueprints, mechanical, electrical and HVAC systems, that shows current energy equipment. • Determine a baseline. Conduct an energy audit, which will provide concrete numbers (Energy Use Index) to help the energy team evaluate the company’s progress as it works to reduce the energy consumed by buildings. A simple walk-through of existing equipment and systems will likely identify the “low-hanging fruit” in existing equipment. • Hire a professional. If your company is small or it is just beginning to track its energy use, consider working with one of many nonprofit organizations to schedule a free energy audit. Free audits usually consist

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Tips for hiring an Energy Service Company Implementing an energy efficiency retrofit project that pays for itself through energy savings can be a complex undertaking. Energy Service Companies (ESCOs) have extensive design and implementation experience in integrating multiple efficiency measures, mitigating technical and performance risks and providing a financial guarantee to project lenders that the energy savings generated will cover the debt service. ESCOs, in essence, act as project developers, as they integrate the project’s design, financing, installation and operational elements. Project contract terms typically range between seven and 20 years, depending on the types of measures installed. The main differentiator between ESCOs and other energy efficiency contractors is the guarantee of energy savings, which is specified as part of the terms of an energy savings performance contract (ESPC). Once the decision to hire an ESCO has been made, organizations typically identify the scope of the project and put the project out to bid. When evaluating ESCO Responses to Proposals, organizations should look at two things: 1. The extent of service offering ESCOs should be able to provide (either directly or through experienced subcontractors) all of the services identified by the organization as needed to implement the energy efficiency retrofit. Typically these include the following: > Provide an investment grade audit. > Engineer projects of appropriate size and scope. > Arrange project financing and assist the organization in understanding the available financing options. > Procure and install equipment. > Monitor and verify energy savings for as long as the customer wishes, often the entire contract term. > Provide, if requested, ongoing operations and maintenance savings. > Prepare reports for the customer detailing energy savings and a reconciliation plan if energy savings were to fall below projections. 2. Project development, engineering and design ESCOs should present a comprehensive plan to maximize energy savings while meeting the customer’s specific facility requirements. In addition, ESCOs should be able to engineer and design the project to include multiple conservation measures and to account for interactions among the installed measures. Once an ESCO has been selected, the following sequence of milestones can be expected: > ESCO will perform an investment-grade audit, which includes a baseline of the facility’s prior energy consumption patterns. > Once the audit is accepted, the project scope finalized, final financing terms accepted, and the ESPC executed, project installation work begins. > The systems and equipment will be tested to ensure the measures are functional and that projected energy savings are produced. > Ongoing operation and maintenance is performed to ensure proper functioning of the equipment, at the option of the customer, by the ESCO or the customer. > Ongoing measurement and verification of energy savings. —Contributed by Una Song, National Association of Energy Service Companies More info: National Association of Energy Service Companies sponsors a rigorous accreditation program for ESCOs, energy service providers and energy efficiency contractors and publishes case studies and energy-saving guides. www.naesco.org “How to Hire an Energy Service Company,” published in January 2000 by the California Energy Commission, offers advice for selecting an ESCO, and includes a checklist for ensuring a successful working relationship with an ESCO. www.energy.ca.gov/reports/efficiency_handbooks/index.html

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Determine a baseline

Cl e an e n e r g y h a ndbo o k of a one- or two-hour walk-through of facilities, a consultation and a list of energy-saving strategies. Nonprofits such as the Energy Trust of Oregon, the Northwest Energy Efficiency Alliance, Flex Your Power in California and EPA’s Energy Star program provide free energy auditing services. They work with preferred energy service companies, and can recommend one in your region. • Hire an ESCO. If your company has multiple buildings, consider hiring an energy service company (ESCO) to conduct your audit. In order to develop a cost-saving estimate that the ESCO will guarantee, the ESCO will need to perform its own audit. The cost of the audit is incorporated into the overall project costs, which are generally laid out in a multi-year contract. Companies that stand to save $500,000 to $1 million over 20 years are best-suited for hiring an ESCO. National Association of Energy Service Companies can help you find a certified ESCO in your area (see “Tips for hiring an ESCO,” p.10).

Resources

Buildings Energy Data Book The Building Technologies Program within the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy developed the “Buildings Energy Data Book” to provide a current and accurate set of comprehensive buildings- and energy-related data. http://buildingsdatabook.eren.doe.gov

BetterBricks A program of the Northwest Energy Efficiency Alliance, BetterBricks works with the commercial real estate market to improve building performance. Its “High Performance Portfolio Framework” is a useful guide for creating energy management strategies. www.betterbricks.com California Energy Commission Provides energy service grants and loans as well as energy-saving tips for commercial, nonprofit and government building owners/managers. www.energy.ca.gov Energy Star’s Portfolio Manager A free, online tool to help companies track, assess and monitor their building’s or portfolio of buildings’ energy use. www.energystar.gov/index.cfm?c=evaluate_performance.bus_portfoliomanager Farmer’s Conservation Alliance This Oregon-based nonprofit works with rural communities to help homeowners and small businesses save energy and protect watersheds. The alliance’s “The Navigator” is a guide about how to save energy and take advantage of federal and state (Oregon) incentives. www.fcasolutions.org Energy Trust of Oregon A nonprofit organization that manages the money collected from Oregon’s public purpose charge, which comes from the state’s two largest electric utilities. The money is used to fund energy conservation and renewable energy investments for businesses and individual homeowners. Coordinates energy audits for commercial customers. www.energytrust.org Flex Your Power A nonprofit funded by California’s public goods charge as well as contributing municipalities and partner organizations and companies, Flex Your Power provides energy-saving tips, information about energy-related incentives, case studies and more. www.flexyourpower.org

National Association of Energy Service Companies A 20-year-old national trade association promoting the benefits of energy efficiency, NAESC sponsors a rigorous accreditation program for ESCOs, energy service providers and energy efficiency contractors. It also publishes case studies and energy-saving guides. www.naesco.org Northwest Energy Efficiency Alliance A nonprofit organization funded by 15 leading Northwest electric utilities as well as Energy Trust of Oregon and the Bonneville Power Administration, to create energy efficiency in the marketplace; provides energy audits for industrial and commercial building owners/managers. www.nwalliance.org University of Washington’s Energy Program A program that offers an extensive library of resources for commercial and industrial buildings, including an Energy Audit worksheet. www.energy.wsu.edu/pubs/#rem_energyaudit

Next steps

Once you’ve performed an energy audit, you’ll have a benchmark from which you can build long-term goals. From there, you can begin putting your plan into place. • Review your energy audit. If you’ve hired an ESCO, it will go through all the potential energy-saving measures your company can take to improve building performance. Then you will have to weigh the costs and benefits associated with such energy improvements. • Choose which measures to tackle first. When choosing which energy improvements to make, consider the following: 1. Where is the greatest opportunity for energy conservation in existing equipment? 2. What improvements result in the greatest potential savings in operational costs and utility bills? 3. Prioritize projects in terms of greatest payback and ease of implementation. • Set timely goals. Define quantifiable goals and your personnel and financial constraints. For example, you might decide that by 2012 you want to reduce your energy consumption by 18 percent by making capital improvements that yield a minimum return of 25 percent and do not exceed a defined annual amount. With management’s approval, you can execute a plan that will reduce energy consumption by 6 percent each year over the next three years. • Get buy in from stakeholders. From the CEO to the factory worker to the stockholder, everyone must be willing to take responsibility for reducing the company’s energy use. Once people are in the know about the company’s energy reduction goals, they will be more likely to contribute. In return, they should be rewarded when the company meets its energy reduction goals: Consider creating competitions and offering incentives to employees for reducing their energy use. • Monitor progress. Publish the results of the energy audit and your company’s energy-reduction goals in an Energy Action Report. If your company publishes an annual sustainability report, put the company’s clean energy accomplishments in the report. Consider posting signs in locations where energy use is controlled by staff, such as the copy room, kitchen, lighting controls, thermostats, etc.

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Clean energy hand bo o k

Using your lease as a tool Green leases are lease agreements that ensure building owners and tenants work together to maintain a new or existing building’s green third-party certification through operations and management practices. A green lease is unique in that it prohibits the tenant from using the office or retail space in any way that conflicts with the landlord’s sustainability practices (including any third-party certification system). The landlord may prepare an Operations and Maintenance Manual for the building and require the tenant to comply with it. Green lease agreements could include the following: Reducing energy and water use > Tenant space is sub-metered for electricity use. > Compact fluorescent lights, occupancy sensors and other lighting improvements have been installed where appropriate. > Interior lights throughout the building, except exit lights, are turned off at night. > Appliances, computers and other technologies are Energy Star certified. > All faucets have aerators and showerheads that are low-flow (2.5 gpm or less). > Energy and water consumption is tracked and reported to tenants. > If a lawn is present, it is not watered. Avoiding toxic chemicals > Cleaning supplies are certified by Green Seal or meet the U.S. Environmental Protection Agency’s Design for the Environment standard. > Janitorial service is committed to purchasing nontoxic cleaning materials and training staff on how to use them. > If landscaping is present, only organic fertilizers and pesticides are utilized. Recycling > Recycling containers have been provided for newspapers and magazines. > Containers for glass/plastic bottles and cans are provided. > Fluorescent lights, batteries, old paint, and scrap metal are recycled. > Appliances, computers and other technologies are recycled and/or refurbished when possible. Many organizations in recent years have begin working to provide green lease guidelines to assist building owners and tenants agree on terms for building operations and maintenance. Some of the best guides are listed below. More info: Building Owners and Managers Association (BOMA) International’s “Guide to Writing a Commercial Real Estate Lease, Including Green Lease Language,” www.boma.org Center for Earth Leadership trains Northwest citizens interested in becoming leaders in sustainability within their business, school, government, neighborhood and more. www.earthleaders.org City of Seattle’s “Quick Guide to Green Tenant Improvements,” www.cityofseattle.net/DPD/GreenBuilding/Commercial/Overview/DPDP016421.asp Corporate Realty, Design & Management Institute’s “Model Green Lease,” www.squarefootage.net/2009modelgreenlease.htm Real Property Association of Canada’s “National Standard Green Office Lease for Single Building Projects,” www.realpac.ca/s_223.asp

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Energy Reduction

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Buildings

Fast Facts

Energy use represents the largest category of controllable operating costs for a typical office building.

The United States could reduce its annual energy consumption by almost 25 percent by 2020 through the deployment of energy efficiency measures. The industrial and commercial sectors represent 40 percent and 25 percent of those potential energy savings, respectively, most of which comes from buildings. Harnessing the energy efficiency potential of the country’s retail and office buildings could result in $11 billion in annual savings by 2020. Combined annual energy costs for commercial buildings amount to $202.3 billion annually. Sources: “Unlocking energy efficiency in the U.S. economy,” a 2009 report by McKinsey & Company consulting firm, U.S. Department of Energy, U.S. Environmental Protection Agency, Flex Your Power

Energy use in the building sector varies widely depending on building location, physical characteristics, age of mechanical systems and motors, efficiency of the equipment, occupants’ behavior and type of fuel or renewable energy used in the building. Buildings have become more efficient over the last couple of decades due to more stringent building codes and more energy-efficient equipment, yet commercial buildings and industrial facilities represent about 45 percent of U.S. greenhouse gas emissions. The U.S. Environmental Protection Agency (EPA) reports that 30 percent of all U.S. buildings use energy inefficiently or unnecessarily, proving there is much progress to be made in this arena. Once you’ve formed a dedicated team to create, implement and monitor your company’s energy action plan (see “Energy reduction: Determine a baseline,” p. 9), then you can begin evaluating the many energy-saving opportunities available to businesses. Keep in mind your energy-reduction strategy will vary greatly depending on whether you are building a new facility or trying to retrofit an existing building. It can cost up to five times more to incorporate efficiency measures as a retrofit than to include them in new construction, according to McKinsey & Company, so if you’re starting from the ground up, consider an integrated design process. That way, building owners work with their design team from the very early stages to explore ways to reduce loads through structural strategies such as building orientation and building mass, and passive or lowenergy mechanical opportunities such as natural ventilation and underfloor air systems. All of these measures are impossible, or nearly impossible to implement once a building has been constructed.

You don’t have to be a building owner to implement energy-efficiency measures (see “Using your lease as a tool,” p. 12). The rate of return on all energy efficiency improvements for both new and existing buildings varies greatly depending on the technology and goes beyond the scope of this publication. Any professional energy audit and/or project bid should include rates of return for each recommended measure.

Building envelope A building’s envelope, or its skin, is the barrier between interior and exterior environments. There are a number of strategies, ranging from proper sealing techniques to cool roofs and overhangs that prevent heat loss and extreme heat gain. Reduced heat loss or gain means less energy is needed to heat and cool buildings.

Rules of thumb

Note: EB is for Existing Buildings, NC is for New Construction • Seal leaks. EB If a building is not well sealed, air will leak through the building’s windows, doors, skylights and holes or chases that lead up into the building from the basement. Properly sealing such areas can significantly decrease heat and cooling loss. Products available for

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Energy Reduction air sealing include caulks, weather stripping, gaskets and door sweeps. In addition, improperly sealed duct systems can waste 25 percent to 35 percent of the energy necessary for cooling and heating due to air leakage and conductive heat transfer. • Increase reflective exterior surfaces. EB/NC Reflective surfaces on roofs and walls minimize the amount of solar heat gain in a building. Cool roofs, which reflect a large portion of the sun’s heat energy back into the atmosphere, are one tactic. Radiant barriers are another. Radiant barriers are ideal for “skin-load dominated” buildings such as homes, rather than internal load-dominated structures such as office buildings. But single-story industrial and agricultural buildings are good candidates for radiant barriers. • Select proper glazing. NC Lower solar heat gain coefficient (SHGC) glazing reduces the amount of solar radiation that is allowed into a building. Choosing proper glazing for your building should be determined by such factors as your climate, orientation and external shading (see “Energy performance characteristics,” this page). • Increase exterior shading. EB/NC Window overhangs for southern exposures and vertical fins for east- and west-facing windows provide shade and can be aesthetically pleasing. Trees also provide shading. • Install insulation. EB/NC Insulation provides a constant thermal barrier that minimizes heat flow through the walls, ceilings and floors. It can reduce energy usage in buildings by up to 20 percent, according to EPA. Occupants benefit from increased comfort while building owners/operators benefit from reduced heating and cooling costs. The higher the “R-value,” the more effective the insulation (see “Energy

Clean energy hand bo o k performance characteristics,” below). Insulate roof or ceiling spaces to R-19 standards or above. Consider insulated drapes or blinds, a quick and affordable way to decrease heat loss.

Resources Buildings Technologies Research and Integration Center Based at Oak Ridge National Laboratory, the research center is developing technologies that improve the energy efficiency of residential and commercial buildings. It provides models for roofs and walls and Web-based building envelope calculators that allow building owners/managers to enter values specific to your construction type and location to determine the energy efficiency of new or existing envelope systems. www.ornl.gov/sci/roofs+walls/calculators/index.html Cool Roof Rating Council A nonprofit organization that provides third-party ratings for radiative properties of roof surfacing materials. A roof’s “coolness” is measured by solar reflectance and thermal emittance. Both properties are measured from 0 to 10. The higher the value, the “cooler” the roof. www.coolroofs.org 2030 Challenge Energy Estimating Tool San Francisco-based architecture firm Perkins + Will created this Web-based tool for project teams taking on the 2030 Challenge to create carbon-neutral buildings by 2030. The tool aims to help builders figure out a mix of energy efficiency, renewable energy and offsets to meet their goals. http://2030e2.perkinswill.com

Energy performance characteristics You’ll often hear contractors refer to insulation’s U-factor and a window’s solar heat gain coefficient (SHGC). When upgrading insulation or windows, having some sense of their energy performance characteristics will help you make an educated decision about which products to choose. U-factor The rate at which a window, door or skylight conducts non-solar heat flow is referred to as its U-factor. For windows, skylights and glass doors, a U-factor may refer to just the glass or glazing alone. A general rule is the lower the U-factor, the more energy-efficient the window, door or skylight. Solar heat gain coefficient (SHGC) SHGC refers to a fraction of solar radiation admitted through a window, door or skylight. The lower the SHGC, the less solar heat it transmits and the greater its shading ability. A product with a high SHGC rating is more effective at collecting solar heat gain during the winter. A product with a low SHGC rating is more effective at reducing cooling loads during the summer by blocking heat gained from the sun. Therefore, what SHGC you need for a window, door or skylight should be determined by such factors as your climate, orientation and external shading. R-value Insulation materials are rated according to their ability to resist heat flow. This thermal resistance rating is commonly known as an “R-value.” The higher the R-value of a material, the better its ability to resist heat flow. The reciprocal of the R-value is the U-value, which characterizes the rate of heat loss. Source: U.S. Department of Energy Efficiency and Renewable Energy, U.S. Environmental Protection Agency

14

Sustainable Industries

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HVAC systems In most regions of the country, heating, ventilation and air-conditioning systems are one of the most essential yet most costly to operate components of a healthy working environment. They account for approximately half of all the energy used in U.S. buildings, according to the Oregon Department of Energy. Huge amounts of energy can be wasted due to errors, including improper management of HVAC systems (i.e., keeping thermostats too high or too low), improperly sized systems, or ducts that are not properly sealed. When planning a new building or when purchasing a new HVAC system for an existing building, a number of considerations should be made. If you are building from the ground up, encourage your facilities manager and the building designers and engineers to discuss the possibilities available to you.

Rules of thumb • Properly maintain units. EB Perform scheduled maintenance, including cleaning condenser coils, replacing air filters regularly, tightening and replacing belts, and checking ducts and pipe insulation for damage. • Reduce heating and cooling loads. EB Upgrading lighting systems, which create heat and thus increase cooling needs, can help reduce cooling loads during the summertime. In smaller-building retrofits, install programmable thermostats to ensure air temperatures are regulated according to the number of occupants in the building at different times during the day. Even better, use thermostats that can schedule fan operation and heating and cooling settings independently. Keep vents closed in unoccupied areas to prevent heating and cooling of storage areas and closets. • Replace old systems. EB Consider replacing old HVAC systems with new, energy-efficient systems. Contact your state Department of Energy or Energy Star for a list of efficient systems. • Size units appropriately. EB/NC Use the specifications outlined by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) when selecting a new HVAC system. • Evaluate the entire drivepower system. EB An average building may contain hundreds of motors, and their collective energy use can account for as much as one-quarter of a building’s energy costs, most of which are used by HVAC systems and drivers for fans, pumps, and air-conditioning compressors. Choose motors that meet the National Electrical Manufacturers Association’s Premium specification. Motor efficiency is a bigger concern in industrial facilities than in commercial buildings. • Consider natural ventilation. NC Building designers in the Northwest are beginning to design buildings that have no air conditioning at all. Taking advantage of the region’s mild temperatures, designers can use numerous tactics to cool a building using only outside air. • Consider underfloor systems. NC Underfloor systems, which are cost-competitive with conventional HVAC systems, are beneficial for a number of reasons. With air flowing from the floor to the ceiling, most

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Sustainable Industries

Clean energy hand bo o k heat created from ceiling-mounted lights is carried away before entering a conditioned space, which reduces the cooling load. The vertical airflow means pollutants are drawn up to the ceiling away from building occupants. Ask your service provider for more information.

Resources

American Society of Heating, Refrigerating and Air-Conditioning Engineers An industry group working to advance technology that promotes higherperforming buildings, ASHRAE provides resources, continuing education and certification for professionals as well as standards for technologies and building design. ASHRAE is accredited by the American National Standards Institute. www.ashrae.org National Electrical Manufacturers Association An industry organization that develops standards for electrical equipment, including motor efficiency standards, the NEMA Premium motor specification is recommended for achieving optimal drivepower performance. www.nema.org/gov/energy/efficiency/premium MotorMaster Provides free software for analyzing the cost-effectiveness of energyefficient motors; most useful for industrial applications. www1.eere.energy.gov/industry/bestpractices/motors.html

Lighting Lighting can account for up to 70 percent of wasted energy in commercial buildings, according to consulting firm McKinsey & Company. Energyefficient lighting is an easy and cost-effective way to immediately reduce your business’ energy use. Conventional light bulbs, which have to be replaced regularly, account for about 25 percent of electricity use in typical business offices, according to the U.S. Environmental Protection Agency. And the rate of return on energy-efficient lighting systems is almost immediate. Compact fluorescent lightbulbs (CFLs) and light emitting diodes (LEDs) last up to 10 times longer than conventional incandescent light bulbs and are up to four times more efficient. If you want to install new fixtures to further improve efficiency, check with energy service companies (ESCOs) and lighting design companies in your area for rebate and incentive options before purchasing.

Rules of thumb • Install CFLs and LEDs. EB/NC An Energy Star-qualified CFL uses 75 percent less energy than a standard incandescent bulb, lasts up to 10 times longer and pays for itself after about 500 hours of use, according to EPA. An LED light bulb can reduce energy consumption by 90 percent and lasts about 100,000 hours. CFLs, if installed correctly, also light up faster than conventional bulbs. Both CFLs and LEDs can replace incandescent lighting in lamps, wall fixtures, suspended fixtures, exit signs and exterior lighting. Note: CFLs, which contain trace amounts of mercury within their glass tubing, must be left on for about 20 minutes when first installed. Due to their mercury content—up to 4 milligrams per bulb—CFLs should be properly disposed of, and ideally recycled. For more information and area recycling options go to: www.lamprecycle.org.

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Energy Reduction • Upgrade before buying. EB Fluorescent lighting is an old but updated technology. If you don’t like the quality of CFLs, look for the latest upgrades in fluorescent technology. With upgrades, lighting output often remains the same and in many cases, results in stronger and more effective lighting. Upgrades cut down on the waste heat that is generated by older lighting technologies, resulting in a more efficient cooling system and a more comfortable office.  • Retrofit parking lights. EB Install more efficient security and parking lot lighting—high-pressure sodium fixtures are more efficient than metal halide, mercury vapor, fluorescent or incandescent fixtures. Install motion/occupancy sensors in parking lots: Synergies include reduced maintenance costs, longer life and reduced light pollution.  • Daylight your space. EB/NC Sometimes the most effective  energysaving technique is also the simplest. Use the natural light that filters into your business, and dim or turn off your indoor lights during peak daylight hours. Consider installing skylights—some modern skylights such as Solar Tracking Skylights and Solatubes maximize the sunlight coming into your space (see “Resources,” this page, as well as Sustainable Industries Top 10 Green Building Products 2008, 2009). • Turn off overhead lights. EB When possible, rely on small, task lighting rather than overhead lights. Make sure to turn off overhead lights at the end of the day. • Install dimmers and sensors. EB/NC Controls help ensure you use only the energy you need, particularly in areas such as bathrooms, copy rooms and storage rooms. • Consider repainting. EB Because dark walls require more power to produce the same amount of light, paint dark walls and ceilings with lighter colors to maximize the effect of existing lighting.

Resources Energy Design Resources Funded by California utility customers and administered by the state’s biggest utilities, Energy Design Resources provides resources, design tools and training for developers, engineers and architects of commercial and industrial buildings in California. www.energydesignresources.com Lamprecycle.org Sponsored by the National Electrical Manufacturers Association to encourage the recycling of spent lamps containing mercury, Lamprecycle. org is a nonprofit organization providing information for all light bulb users about recycling spent mercury-containing bulbs. The nonprofit targets facilities managers, commercial or residential property managers, lamp distributors and government employees. www.lamprecycle.org Lighting Design Lab Sponsored by Northwest Energy Efficiency Alliance, area utilities, and energy-efficiency groups, the Lighting Design Lab works to educate consumers and businesses about energy-efficient technologies through consultations, classes and technical assistance. The lab is located in Seattle, but offers classes throughout the region and online. http://lightingdesignlab.com

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Sustainable Industries

Clean energy hand bo o k Solatube Patented technology uses a light catcher reflector to catch daylight and evenly disperse it as white light into rooms. www.solatube.com Solar Tracking Skylights A completely self-contained, self-managed skylight with mirrors; unlike typical skylights, which only provide light to occupants when the sun crosses its opening, Solar Tracking Skylight’s mirrors provide coverage throughout the entire day. www.solar-track.com

Hot water While businesses vary on how much hot water they use (in some cases, only for hand washing and in kitchens), most businesses use energy to heat some amount of hot water. The energy expended on heating your water supply is often minimal, but there is usually some room for improvement.

Rules of thumb • Start with the small stuff. EB Encourage employees to conserve water by not running faucets while washing dishes. Lower the water-heating thermostat by a few degrees or to the lowest effective temperature. Heat energy is lost as it travels through the pipes to get to your faucet; so lowering the temperature and making sure no water is lost along the way can cut both the amount of energy and water wasted. • Maintain hot water fixtures. EB Regularly maintain hot water fixtures and plug leaks as they occur. Check with your building owner to ensure hot water pipes and tanks are maintained regularly. Storage-type water heater tanks should be flushed out annually to remove sediments that reduce system efficiency. • Insulate hot water pipes and tank. EB/NC To reduce heat losses in your hot water system, make sure that your hot water storage tank and hot water pipes are well insulated, especially if they are kept in unheated areas such as the basement. Check with your building owner to ensure such facilities are maintained regularly. • Turn off your hot water heater. EB If you are not using the facilities on weekends or can do without hot water use for two days or more at a time, turn off the hot water heater altogether. How? If you have an electric water heater, you can install a timer and use off-peak power for your hot water. • Upgrade to a new hot water heater. EB If you are buying a new hot water heater, consider the latest technologies such as a heat pump water heater or heat recovery unit. Such technologies remove heat from the surrounding air (i.e. from your lights, or your cooling and heating systems) and transfer it to the water. • Try tankless on-demand water heaters. EB/NC More common in today’s commercial, mixed-use and residential buildings, on-demand water heaters typically supply up to two gallons per minute of hot water. However, they often require intricate wiring, so check with your contractor first.

Energy Reduction

Cl e an e n e r g y h a ndbo o k

Resources

office, according to the Responsible Purchasing Network. While energy use is an increasingly important consideration for businesses, so are hazardous substances, electronic waste and indoor air quality. Choosing electronic equipment that is energy efficient, nontoxic and upgradable can help companies minimize their impact.

Tankless Water Heater Guide A helpful resource to help businesses select tankless water heaters, the guide provides insight on different models, installation and maintenance. www.tanklesswaterheaterguide.com

Rules of thumb

Florida Power and Light  The utility provides a guide that illustrates newer heat recovery technologies and explains how the units work. www.fpl.com/business/savings/waterheating.shtml

Office equipment

• Upgrade before buying. EB In some cases, upgrading existing computers is a viable solution for companies. Improving shared data storage, adding additional memory and installing updated software can all lengthen the life of existing computers. If that’s not possible, buying machines that are easy to upgrade and maintain will help make this an easy choice in the future.

Office electronics, from computers to printers and other document imaging technology, account for up to 26 percent of energy use in a typical

• Curb phantom electricity. EB Many appliances use energy even when they’re turned off. Items left plugged into the wall, such as cell

Personal computer manufacturers Company

Energy Star desktops

Energy Star notebooks

EPEAT desktops

EPEAT notebooks

Acer - www.acer.com

16

41

-

-

Apple - www.apple.com

4 

11

9

11

CTL Corp. - www.ctlcorp.com

3

1

2

1 

Dell - www.dell.com

18 

35

12

34

Enano Computers - www.enanocomputers.com

-

-

-

-

Fujitsu Computer Systems - www.computers.us.fujitsu.com

14

25

-

18

Gateway - www.gateway.com

3

15

-

-

Hewlett-Packard Company - www.hp.com

12

56

18

65

Lenovo Group - www.lenovo.com

12

17

12

24

MDG Computers Canada Inc. - www.mdg.ca

-

-

-

-

Panasonic - www.panasonic.com

-

20

-

17

Paragon Development Systems - www.pdspc.com

3

-

2

-

Samsung - www.samsung.com

-

24

-

78

Sony - www.sony.com

5

118

-

230

Toshiba - www.toshiba.com

-

21

-

84

Zonbu - PConRails www.zonbu.com

-

-

-

-

RESEARCHER: Dana Sagona SOURCES: EPEAT and Energy Star

Sustainable Industries

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Energy Reduction

Clean energy hand bo o k

phone chargers and laptop batteries, can leak more than 20 watts of power, according to the Energy Trust of Oregon. Plug office equipment into a power strip and turn it off at night and on weekends. Set office equipment to go into sleep mode when not in use. At night, turn all equipment off. • Reduce the number of office machines. EB Sharing printers and office equipment discourages printing and removes associated indoor air quality issues from individual workspaces; it also saves money. • Buy energy-efficient computers and office equipment. EB/NC Buying Energy Star-labeled computers and office machines will save energy as well as money spent on energy. If appropriate, use laptop computers, as they consume 90 percent less energy than desktop computers, according to the Energy Trust of Oregon. If appropriate, use ink-jet printers: They consume less energy than laser printers. • Consider leasing. EB/NC If your company must upgrade to the latest technology frequently, consider leasing equipment, rather than buying it. Leasing extends the life of equipment your company considers outdated by placing it at another company or organization, where it may still be considered state-of-the-art.

Resources

Electronics Take Back Coalition This group aims to improve the lifecycle management of electronics, including computers and other office equipment. The organization provides purchasing guides and documents to aid buyers as they investigate end-of-life issues before purchasing equipment. www.electronicstakeback.com

Energy Star A program of the U.S. Environmental Protection Agency, Energy Star provides third-party verification of the energy-efficiency claims made by manufacturers of office equipment (see “Personal computer manufacturers,” p. 19). Energy Star specifications for office and imaging equipment are regularly upgraded. Energy Star-qualified office and imaging products use 10 percent to 75 percent less electricity than standard equipment, according to EPA. www.energystar.gov Green Electronics Council’s Electronic Product Environmental Assessment Tool (EPEAT) Launched in January 2007, EPEAT is set of guidelines that promote not only energy efficiency, but a variety of additional social and environmental factors associated with the manufacturing and recycling of electronics. The online EPEAT database of registered products includes more than 1,200 products from about 30 manufacturers. Since 2007, all federal agencies have been required to purchase only EPEAT-registered products. www.greenelectronicscouncil.org

Green California: Office Machines The California Department of General Services’ Environmental Procurement Policy (EPP) Best Practices Manual aims to help buyers write environmental specifications into bid solicitations, tap into Web sites and other resources related to EPP, and locate reuse programs to obtain low-cost or used equipment and supplies. www.green.ca.gov/EPP/OfficeMach

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Sustainable Industries

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Energy Reduction

Cl e an e n e r g y h a ndbo o k

Energy management software Advancements in technology and computer software in recent decades has led to the development of hundreds of software applications that businesses can use to find out how they are using energy at all hours of the day. Many software companies offer energy management software for free; others charge. The U.S. Department of Energy’s Building Energy Software Tools Directory provides information on 375 building software tools for evaluating energy efficiency, renewable energy and sustainability in buildings. Learn more at: http://apps1.eere.energy.gov/buildings/tools_directory

Snapshot of free software Building Life-Cycle Cost (BLCC) program analyzes the relative cost effectiveness of alternative buildings and building-related systems or components. Typically, BLCC is used to evaluate alternative designs that have higher initial costs but lower operating-related costs over the project life. www1.eere.energy.gov EnergyPlus Simulation Program, developed by the Department of Energy, helps building designers and owners reduce energy and improve indoor air quality. http://apps1.eere.energy.gov/buildings/energyplus Facility Energy Decision System is a Windows-based software tool that can identify energy improvements that maximize savings. www.pnl.gov/feds WATERGY uses utility data from the most recent 12 months and facility data (number and kind of water consuming/moving devices and their water consumption and/or flow rates), the spreadsheet estimates direct water, direct energy and indirect energy annual savings, as well as payback times for a number of conservation methods. www1.eere.energy.gov/femp/information/download_watergy.html Federal Renewable Energy Screening Assistant is currently under development. The new, Web-based version is designed to better help users examine which renewable technologies are cost effective at their site. For more information, contact Alicen Kandt at [email protected]. Hohm is a free online application developed by Microsoft that analyzes users’ energy data and appliances and then provides personalized energy saving recommendations, which range from removing air leaks to installing a programmable thermostat. www.microsoft-hohm.com Google is testing a smart energy gadget that users will be able to install on their personalized Google start page. Google PowerMeter is currently being tested with select utilities and their customers. www.google.org/powermeter

The U.S. Green Building Council Los Angeles Chapter (USGBC-LA) We are a high-performing nonprofit organization incorporated in 2002 by a motivated and diverse group of individuals with a common interest in environmental conservation. The USGBC-LA expresses a commitment to making the greater Los Angeles area a better place to live through smarter planning, better public policy, and environmental strategies.

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Sustainable Industries

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Clean energy hand bo o k

Commuting

Fast Facts

Commuting makes up 20 percent of personal vehicle trips taken nationally. The average U.S. commute time (one way) is 15 to 19 minutes.

About 86 percent of Americans commute to work using personal vehicles, and 88 percent of those commuters drive alone. Every one-point increase in a property’s “Walkscore” can raise its value by as much as $3,000. Sources: CEOs for Cities, Energy Information Administration, U.S. Census, Walkscore.com

For companies seeking to improve their carbon footprint, reducing employee vehicle use can be a great step in the right direction. It can also save companies and employees money. For most employers, there are great opportunities to reduce transportation-related environmental impacts. Whether a company is looking to relocate, or just encourage trip reduction at its current office, there are multiple strategies for discouraging employees from driving to work alone.

Rules of thumb • Find the right spot. For companies looking to relocate, choose offices that provide access to mass transit, minimize parking availability, offer employees easy walks to lunch, errands and other amenities, and provide showers, changing rooms and secure, covered parking for bike commuters. • Encourage telecommuting. Telecommuting, virtual meetings and remote access have been shown to decrease employee trips required. Telecommuting has also been shown to improve employee productivity and support family-friendly office policies. • Provide rewards. Reward employees who choose alternative commute strategies and make sure driving isn’t being supported by hidden benefits such as free parking which can actually cost the company hundreds of dollars a year (see “Case study,” page 24).

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Sustainable Industries

• Eliminate the need for personal vehicles. Consider adding fuelefficient, shared-fleet vehicles, enrolling in a car-sharing program, partnering with a car-sharing company to get vehicles onsite or creating an onsite bike-share program. • Promote your programs. Employees can only participate in the programs you offer if they know about them. Be sure to get the word out through as many channels as possible and integrate the programs into new-employee hiring materials. Carpool benefits Employers can help employees form carpools through rideshare matching, which helps potential carpoolers locate others nearby with similar schedules. Regional rideshare organizations in most areas allow anyone to register directly for no cost. Casual carpools, or “ad hoc carpools” are informal carpools that form when drivers and passengers meet without specific prior arrangement at designated locations. Such programs exist in the East Bay and San Francisco (www.ridenow.org/carpool/#locations) are popping up in other locations. Employers can also partner with private services such as Seattle’s Goose Networks (see “Resources, p. 25). The primary advantage for employers that promote carpooling is a need for fewer parking spaces. Other advantages may include reduced employee stress and improved worker productivity. Pairing carpooling programs with a cash benefit, often in the form of a parking cash-out (see “Parking cash-out, p. 25), allows two employees to share one space and split the money saved.

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Energy Reduction

Clean energy hand bo o k

Case Study: Seattle Children’s Hospital bike commute program and offers free helmet fittings. It also hired “a bicycle advocacy superstar” in the form of the former executive director of the Bicycle Alliance of Washington to run the program, according to Nunes-Ueno. To encourage those employees who are not familiar with city bike riding to try it out, the hospital has two small-scale bike share programs that allow employees who have errands to run or meetings at satellite locations to check out a bike for as long as 48 hours. The cornerstone of Children’s bike commute program is laid before a new employee even starts work, says Nunes-Ueno. Each new staff member is given an individualized commute plan that includes bus routes to take, local car and vanpool options in their neighborhood and a personalized bike route to and from work. His office also offers “basic commute therapy,” or the opportunity for employees to come in and learn about alternate forms of transportation. His team will even line up “buddy rides” so new bike commuters can learn the ins and outs of a particular route by riding with a partner. Making its bike commute program work wasn’t all bread and honey, Nunes-Ueno says. It’s taken some creative thinking to come up with ways to assure that employees are riding as much as they say they will. (Children’s is launching an online calendar tracking system soon to do this.) They also had to create new systems and strong partnership with the hospital’s Accounts Payable department to track the bike inventory accurately. But it’s all been worth it, Nunes-Ueno says. The program was oversubscribed almost right away. Even in the midst of the recession, Nunes-Ueno says he will likely have a budget to purchase more bikes in the coming year because the program has proven so successful and valuable. More info: www.seattlechildrens.org

Courtesy Seattle Children’s Hospital

Seattle is not the most bike-friendly city on the West Coast. Between nine solid months of grey, wet weather and the city’s notorious hills, it is no surprise that only about 2 percent of all commute trips in this environmentally aware city are by bike. Seattle Children’s Hospital’s bike commute program shows that riding to work in the Emerald City is a pretty easy sale, if done right. Out of the hospital’s approximately 7,000 employees, 8 percent commute by bike at least two days a week. When Seattle Children’s launched its bike commute program, the hospital was already ahead of the curve, according to Paulo Nunes-Ueno, its director of transportation. At the time, 6 percent of employees identified as bike commuters. Over the next year, Nunes-Ueno says his goal is to get that number to 10 percent. He’ll do that by continuing the most popular aspects of the program: Any employee who pledges to ride to work rather than drive at least two days a week gets a free bike. In addition, every day an individual gets to work without driving alone, Children’s pays them $3.25. Over the course of a month, this can add $65 to an employee’s paycheck. “We realize to achieve our goal to be the best Children’s Hospital, we’re going to have to have the best commute program,” Nunes-Ueno says. “The best commute program is going to have a significant presence in bicycling because it is the least impactful mode after walking.” What upper management saw in the numbers probably didn’t hurt either. Each parking spot costs $40,000 to build and hundreds of dollars a year to maintain, Nunes-Ueno says. Each of the 126 bikes in the commute program has a one-time cost of $1,000, making the investment a sound financial one as well. Giving away free bikes isn’t all the hospital does to encourage more bike commuting. It also hosts bike-safety classes that teach new riders bike safety

24

Sustainable Industries

Employees from Seattle Children’s Hospital pedal to work, rain or shine

Energy Reduction

Cl e an e n e r g y h a ndbo o k Free or reduced-cost transit passes Employers can provide up to $230 per month in tax-free transit/vanpool benefits to employees. The employer does not pay payroll taxes on the benefit, and employees do not pay income or payroll taxes on it. So giving an employee $230 in transit or vanpool benefits is less expensive for an employer than raising the employees’ salary by $230, and the employee takes more home. If the company can not provide this benefit, the employee can choose to have up to $230 deducted from his or her monthly paycheck before taxes for transit-related expenses. The company and the employee can also combine forces to get to the $230 limit. http://transit.metrokc.gov/cs/employer/ctr-taxinfo.html Telecommuting Telecommuting is an arrangement between employers and employees in which employees work part- or full-time from alternate locations, such as their homes, telecommuting centers or coworking spaces. Telecommuting can serve as a valuable retention tool, increase employee morale and productivity, and reduce costs through office space and parking savings. Technological solutions can improve employee experiences, including software and hardware that allow employees to remotely access their computer and/or professional documents. (Some states offer incentives for telecommuting programs. In Oregon, visit www.oregon.gov/ENERGY/ TRANS/transhm.shtm.) Flexible schedules Compressed work week schedules are another creative way of reducing employee vehicle use, not to mention reduced operations costs. A common flexible schedule is four 10-hour days or “nine nines”—nine, nine-hour work days with the office closing every other Friday. Such schedules can have a side effect of higher worker productivity and satisfaction. Emergency ride home A key way to encourage employee participation in alternative commuting is providing access to a ride home when unusual situations arise. Establishing an “emergency ride home” program that provides limited, targeted assistance in such instances can improve the success of other commuter programs in place. Companies may consider providing employees with access to fleet vehicles, taxi fares or short-term car rentals. In some places, such as Sacramento, regional employers may partner to provide ride-home program. U.S. Environmental Protection Agency (EPA) research shows that such programs have minimal cost after they are established—an average of $2 to $5 per commuter annually.

Parking cash-out Employers that offer free or subsidized parking to employees can implement “parking cash out.” According to E Magazine, free employee parking costs U.S. employers $85 billion annually in construction, maintenance and operation costs. Under a parking cash-out program, an employer gives employees a choice to keep a parking space at work, or to accept a cash payment and give up the parking space. These programs are particularly useful for employers seeking to locate a new office site with less available parking. In California, state law requires certain employers who offer free parking to offer a cash allowance in lieu of a parking space. www.arb.ca.gov/planning/tsaq/cashout/cashout.htm

Commuter benefit programs In West Coast states, companies with more than 100 employees are required to participate in commuter trip reduction programs, (In San Francisco companies with 20 or more employees have to meet this requirement.) but commuter benefit programs can be successful at smaller businesses as well. Alternative commuter programs are easy to implement and provide multiple benefits, both financially and otherwise, to employers and employees alike. The federal transportation bill includes tax benefits aimed at reducing congestion and air pollution. For instance, employees can deduct up to $230 per month from their paychecks, pre-tax, to pay for transit and vanpool expenses. Some states offer similar programs. In either case, companies may be eligible for tax credits when they offer transportation programs that cut work-related travel. Additionally, the U.S. government now offers the Federal Bike Commuter Benefit. Employees who use a bike for the majority of their commute to work are eligible to receive $20 a month tax free to use toward a new bike, bike repair and storage. The payments are also a tax deduction for the company. Whether offering cash incentives or partner discounts, companies have multiple options for cutting the impacts of employee commuting. Be sure to check with your company’s financial manager to determine your company’s eligibility for federal, state and local tax benefit programs. King County in Washington offers a good guide to setting up a Commuter Benefit Program at http://transit.metrokc.gov/cs/employer/ctr-tools.html Currently, only one Commuter Benefit Provider is offering the Bike Commuter Benefits. www.accorservicesusa.com/home.aspx

Resources Bike Maps Getting around on a bike is not the same as driving from place to place and this extends to the route one takes. Having a good map that highlights bike routes is key. Oregon riders can check www.portlandonline.com/transportation/index. cfm?c=34809&a=71796 for a good list of city maps. In Portland, www.bycycle. org offers online bike-route planning. Washington riders can visit the state Department of Transportation for a listing of street and trail maps available in the state. www.wsdot.wa.gov/bike/localmaps.htm In California, a good collection of trail maps and on-road bike lanes around the state is available from California Bicycle Coalition. www.calbike.org/resources.htm#maps Commute Trip Reduction The City of Seattle and SDOT encourage all commuters to use alternatives to driving alone to work. This City of Seattle site includes information and resources about trip reduction laws, regulations, resources and more. www.seattle.gov/transportation/commute.htm “Commuter Choice Primer” This guide­—produced by three federal government agencies—is directed toward employers that want to offer employees commuting benefits as alternatives to driving. The guide helps implement programs to get employees on transit, bikes and also examines alternative work options such as flexible hours and telecommuting. www.itsdocs.fhwa.dot.gov/JPODOCS/REPTS_PR/13669.html

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Energy Reduction Creating a bike-friendly workplace > Implement other trip reduction programs. Access to guaranteed ride home, parking cash-out, and transit passes can all help encourage employees to bike to work. > Make sure your lease agreement supports cyclists. Standard office lease language typically forbids bikes from office buildings, including elevators and storage areas. Talk with your landlord about removing or revising any bikeprohibitive clauses in your lease. > Provide in-office showers and/or changing rooms. Clean-up facilities allow bike commuters to dress appropriately for the road and the office, no matter how far their trip, or how busy their day. > Provide secure bike parking options. This may include in-building storage, bike lockers or bike racks in a secure part of your facility.

“Best Workplaces for Commuters” A joint project of EPA and the National Center for Transit Research, this membership program provides qualified employers with national recognition for offering outstanding commuter benefits. www.bestworkplaces.org CommuterChoice.com This Web portal was developed and is maintained by the Association for Commuter Transportation (ACT) and Transportation Demand Management Institute (TDMI). Funded by the Environmental Protection Agency (EPA), U.S. Department of Transportation, and TDMI, the CommuterChoice.com Web site provides an open service to employers, commuters, and Commuter Choice service providers throughout the United States. www.commuterchoice.com “Complete Guide to Flexible Working” A guide published in cooperation with Toshiba, this document provides insights into “flexible” work strategies that aim to bring work to the worker, rather than the other way around. Guide has a strong focus on using technology to aid in employee trip reduction. www.flexibility.co.uk/Guide/index.htm Coworking community blog Coworking is a relatively new concept where freelance and other “nomadic” workers share office space regardless of whether or not they actually work together. Coworking spaces could provide an alternative work site for a company that doesn’t want the headache of managing its own space. http://blog.coworking.info Employee Commute Options (ECO) The Oregon Department of Environmental Quality offers a comprehensive list of statewide and national resources for commuter trip reduction. Find local contacts, tax information and more. www.deq.state.or.us/nwr/eco/resources.htm Google Maps Most people know Google Maps offers detailed, turn-by-turn directions for driving to almost any destination in the world. But not everyone realizes it also offers users the ability to plan walking routes and trips via public transit for many cities around the world. http://maps.google.com/intl/en/landing/transit/#mdy

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Clean energy hand bo o k Goose Networks A Seattle-based privately held company, Goose Networks uses proprietary commuter management software to help private and public organizations create commuter solutions. www.goosenetworks.com Ridester Developed by Jake Boshernitzan while a college student at the University of Texas, Ridester is a free national online ride board. www.ridester.com “Toolbox for Mobility Management in Companies” Developed by a Belgium-led consortium for the European Union. this software helps companies develop commuter benefit programs, as well as promote the use of public transportation, ride-sharing, walking and biking by commuters. http://mobilitymanagement.be “TransForm” A partnership of more than 90 groups working to create a sustainable Bay Area, the coalition is currently campaigning for improved commuter options and offers an array of transportation-related programs on its Web site including information on the 2009 Regional Transportation Plan (RTP). www.transformca.org Walkscore.com Walkscore.org calculates how walkable an address is based on what services are available within a mile radius of it. Plug in any address and watch the map populate with services ranging from grocery stores and movie theaters to libraries and transit stops. A study released by CEOs for Cities in August 2009 found that an additional one point increase in Walkscore means an increase of between $500 and $3,000 in home values. www.walkscore.com

Steps for reducing employee vehicle trips > Assess current commuter habits. How and how far are employees traveling to work? Survey employees to determine their current behavior over a month—including why they choose alternative commute options when they do. > Calculate current costs of commuter behavior. Parking lot maintenance, security and construction; reimbursement for personal vehicle use; and existing transportation benefit programs all have costs. > Identify trip reduction goals. Set targets for decreasing personal vehicle use, as well as any additional goals, such as increased bike commuting, that match company goals for employee wellness, etc. > Identify resources and programs to help achieve those goals. The rest of this section can provide some ideas about what types of programs may help achieve those goals, including grants, guides and tax credits. > Market the new plan to employees. Provide straightforward tools that encourage employee participation in programs. Easy enrollment, marketing materials and clear communication of program goals are all tools for helping boost employee participation. > Track and reward successes. Track commuter behavior and reward all employees when benchmarks are met, but be sure to publicize all progress, not just successes. If participation is low, evaluate your current programs and improve them. Resources listed in this publication may be helpful.

Energy Reduction

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Fleet Vechicles

Fast Facts

The transportation sector consumes 71 percent of the petroleum used in the United States, making it the largest source of enduser carbon dioxide emissions in the country.

The city of Portland estimated it would save 25 percent of its annual budget by swapping 20 downtown fleet vehicles for a contract with Zipcar. Of the 5.8 million commercial vehicles in operation in 2008, 50 percent belong to non-fleets.

Sources: Automotive Fleet magazine, Energy Information Administration, city of Portland

Rules of thumb • Use what you have. Determine the environmental impact of the different types of fleet vehicles currently maintained by the company. Create a tool for helping employees choose the greenest option, based on type of use and fuel efficiency. • Make smarter purchases. When it’s time to replace fleet vehicles, consider making greener purchases. A lifecycle approach to accounting can make the business case for purchasing more fuel-efficient vehicles. • Consider eliminating or reducing your fleet. Depending on your company’s needs, participating in car-sharing programs may be a viable option for reducing your impact. Car-sharing companies often offer a wide range of vehicle types, including hybrids and fuel-efficient compact cars and sedans. • Consider bike shares. Some companies with multiple locations in the same city have loaner bikes and locks for employees for getting to off-site meetings (see “Case study,” p. 24). If locations are close enough, riders will hardly break a sweat, and a few minutes of exercise in the middle of the day could make for healthier, more productive employees.

Resources

Alternative Fuels & Advanced Vehicles Data Center The Energy Efficiency and Renewable Energy division’s fleet portal is a one-stop shop for information on alternative vehicles. The information is

arranged by fleet application and includes clean fleet strategies that can be implemented to help reduce petroleum consumption, as well as financial incentives for adopting clean fleet strategies. www.eere.energy.gov/afdc/fleets/index.html Commuter Challenge This nonprofit works to improve the environmental impacts of commutes in the Puget Sound region by collaborating with public agencies to provide information, technical assistance and incentives to employers and employees to help reduce the number of vehicles on the road; working with public and private entities to develop and implement innovative programs to encourage changes in individual behavior; and proposing and supporting public policies targeting transportation problems. www.commuterchallenge.org DriveClean.gov Developed by the California Air Resources Board, this site is aimed at promoting zero and low-emission vehicle choices for drivers. It includes resources for fleets, including a tool for providing a lifecycle analysis of costs associated with vehicle selection, from fuel use to pollutant emissions. www.driveclean.ca.gov Zip Car With operations in the United States, Canada and the UK, Zipcar is the world’s largest car sharing and car club service. It currently offers services in the West Coast cities of Portland, Seattle and San Francisco, as well as many universities. www.zipcar.com

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Energy Reduction

Clean energy hand bo o k

Energy efficiency incentives The incentives for energy efficiency are also quite attractive—and improving all the time. After educating yourself about state and federal tax incentives, rebates and loan and grant programs, you might be surprised by the amount of assistance you can get from the government. Such information will be vital when trying to convince your company’s CEO or CFO to invest in energy efficiency.

Federal incentives

> Lighting and electronics. Federal tax credits are available for many Energy Star-certified products. See www.energystar.gov/index. cfm?c=products.pr_tax_credits > Plug-in electric and plug-in hybrid vehicles. This tax credit for passenger vehicles and light truck ranges from $,2500-$7,500. The credit phases out over a year after a total of 250,000 qualified vehicles are sold in the United States by all manufacturers combined.

The Energy Policy Act of 2005 includes many incentives for consumers and businesses that invest in energy-efficiency technologies. Some of the incentives for businesses include:

> Smart meters and smart grid systems. The Emergency Economic Stabilization Act of 2008 included a tax break for smart meters and smart grid systems to be depreciated over 10 years.

> Commercial buildings. Tax deductions of up to $1.80 per square foot are available to new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. The deduction includes three separate system incentives: lighting, HVAC and building envelope. A building can qualify for one or all of the deductions, which are based on square footage. Therefore, the bigger the space, the larger the deduction. The deduction can be claimed by either the building owner or a tenant who has financed their own commercial improvements. For any government building project, the deduction can be claimed by the primary designer.

National Resources

> Combined heat and power (CHP) systems smaller than 50 megawatts (MW) Owners of such systems may take advantage of a 10 percent investment tax credit for CHP property, applicable to only the first 15 MW of CHP property. Systems must be placed into service between October 3, 2008 and December 31, 2016. Only the original constructor or user of the CHP property may take the tax credit, in the year that the system becomes operational. > Commercial vehicles. Buyers of heavy-duty hybrid vehicles can receive credits based on the weight class of the vehicle, its fuel economy relative to a comparable conventional vehicle, and the incremental cost. Credits are available for heavy-duty vehicles placed in service from January 1, 2006 through December 31, 2009. The available credits range from $3,000 to $12,000. > Carpooling. Employers can provide up to $230 per month in tax-free transit/vanpool benefits to employees. The employer does not pay payroll taxes on the benefit, and employees do not pay income or payroll taxes on it. If the company cannot provide this benefit, the employee can choose to have up to $230 deducted from his or her monthly paycheck before taxes for transit-related expenses. The company and the employee can also combine forces to reach the $230 limit.

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American Recovery and Reinvestment Act of 2009 More than $36 billion in tax incentives and grant money is available for both energy efficiency and renewable energy. To learn how to apply for the funds and for up-to-date information on how the money is being allocated by the Department of Energy, go to www.energy.gov/recovery. The Tax Incentives Assistance Project Sponsored by a coalition of nonprofits, government agencies and other organizations in the energy efficiency field, this Web site provides information about the federal income tax incentives for energy-efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005. www.energytaxincentives.org U.S. Department of Energy DOE’s Office of Energy Efficiency and Renewable Energy provides loans and grants for businesses and universities. www.eere.energy.gov/financing/business.html

State incentives

The “Database of State Incentives for Renewables and Efficiency”— produced by North Carolina Solar Center and the Interstate Renewable Energy Council and funded by the U.S. Department of Energy—is a onestop shop for information on state, local and utility incentives that promote renewable energy, energy efficiency and green building practices. It also includes a list of regulations, rules and policies within such industries. Businesses and individuals can search by state as well as “renewable energy” and “energy efficiency.” Go to: http://dsireusa.org

Renewables

Cl e an e n e r g y h a ndbo o k

Investing in renewables

Fast Facts

In 2008, consumption of renewable sources in the United States totaled 7.3 quadrillion Btu, or about 7 percent of all energy used nationally.

An average crystalline silicon cell solar module has an efficiency of 15 percent, while an average thin film cell solar module has an efficiency of 6 percent. Thin film manufacturing costs potentially are lower, however. The United States in 2009 overtook Germany as the world’s largest wind energy producer. The state of Texas is the world’s sixth largest wind energy producer. In 2008 domestic PV cell manufacturing capacity grew 65 percent to 685 MW and production grew 53 percent to 414 MW. Sources: AWEA, U.S. Department of Energy, www.solarbuzz.com, SEIA

Once your business has tackled as much as it can through energy efficiency improvements, renewable energy generation offers an opportunity for your business to further its commitment to sustainability. Renewable energy installations can help companies hedge their bets against rising energy costs, providing more stable energy costs in an uncertain energy economy. Despite the rise and fall of federal tax credits for renewable energy generation, federal and state incentives, along with technological advances, will likely continue to make renewable energy more affordable as time goes on. While solar power is one of the most commonly deployed renewable energy technologies on commercial and industrial buildings, geothermal, biomass and small-scale hydro are also common in some regions of the country. Recent technological advancements as well as incentives (see “Renewable energy incentives,” p. 33) for small-scale wind has also helped make wind power more appealing to building owners. Installing a renewable energy system is a big investment, and a number of things should be considered before investing in solar panels, small-scale wind or other renewable energy technologies.

Rules of thumb • First, invest in energy efficiency. Implement all other energy saving measures first (see Section 1I, “Energy reduction,” p. 7). • Do your research. Is your building well-cited for solar panels or a solar hot water system? Can you tap into geothermal? What is your wind resource? Knowing the answers to such questions will help you choose a renewable energy system suitable for your needs. • Secure financing. Some states and banks offer loans specifically for renewable energy projects. For tax-exempt nonprofits, third-party financers can provide the necessary upfront capital for renewable energy systems. They maintain ownership of the system while reaping the tax benefits [see “Third-party financing for renewable energy,” p. 31]. Finding tax equity partners (investor-owners) has become more difficult over the past two years due to the recession but legislation to modify the structure of popular renewable energy credits has been passed (see, “Renewable energy incentives,” p. 33).

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Renewables • Hire a qualified installer. Work with a qualified renewable energy system installer, who will help with financing options, permitting and the installation of renewable energy systems.

Resources American Wind Energy Association An industry association that provides information on renewable energy policies, research and development, and other topics related to the growth of wind power in the United States. For helpful information on the basics of Wind Energy, visit AWEA’s Wind Web Tutorial at www.awea.org AWEA has also compiled a list of U.S. manufacturers of small-scale wind equipment for home, farms or office buildings. www.awea.org/smallwind/smsyslst.html Center for Renewable Energy and Sustainable Technology Aiming to accelerate the use of renewable energy technology, this nonprofit provides information and growth strategies for renewables that respond to competitive energy markets and environmental needs. www.repp.org

Clean energy hand bo o k U.S. Department of Energy Efficiency and Renewable Energy This government agency administers numerous programs, including building technologies, solar energy, biomass, alternative fuel vehicles and federal energy use, that aim to enhance energy efficiency and productivity and bring clean, reliable and affordable energy technologies to the marketplace. www.eere.energy.gov U.S. Department of Energy’s Federal Energy Management Program As the largest energy consumer in the United States, the federal government, through FEMP, is working to promote energy efficiency and the use of renewable energy resources at federal sites. FEMP helps agencies save energy, save taxpayer dollars, and demonstrate leadership in clean energy adoption. www1.eere.energy.gov/femp Wind Powering America The U.S. Department of Energy’s Wind Powering America site provides state-by-state wind project information, including validated wind maps, anemometer loan programs, small wind guides, legislative briefings and state-specific news. www.windpoweringamerica.gov

Energy Trust of Oregon By investing in renewable resources and green technologies that specifically aim to protect the environment, Energy Trust of Oregon provides resources and cash incentives to consumers. Its goal is to encourage citizens to support renewable energy initiatives. Energy Trust also offers comprehensive information on each renewable energy industry. www.energytrust.org/RR/index.html Environmental Protection Agency’s Clean Energy Programs Working with state policy makers, electric and gas utilities, energy customers and other key stakeholders, EPA’s Clean Energy Programs are designing and implementing clean energy policy and technology solutions that produce environmental and economic benefits. http://epa.gov/cleanenergy Find Solar A nonprofit organization that helps link solar power professionals with potential solar power customers, and explains the costs associated with installing solar. www.findsolar.com National Renewable Energy Laboratory A national laboratory working on research and development of renewable fuels and electricity, NREL provides information suitable for businesses, individuals and government agencies. NREL also lists analyses of the potential costs, benefits and timeframes of several renewable energy technologies, including solar, geothermal, wind and hydropower. www.nrel.gov

Green Professionals Free Webinar Series Providing education to enhance your career in sustainability. Visit our site for a list of courses and dates. www.green-professional.com

Solarbuzz Access solar industry statistics, learn about solar PV manufacturers and installers, receive solar industry news and find out about conferences and workshops. www.solarbuzz.com Solar Energy Industries Association An industry association that provides up-to-date information on solar energy policies, incentives, research and development, and other topics as part of its mission to grow the solar energy industry in the United States www.seia.org

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Green Professionals WEBINAR SERIES

Renewables

Cl e an e n e r g y h a ndbo o k

Third-party financing for renewable energy The third-party financing method is used to make the most out of a diverse resource mix. One participant may have real estate ideal for a renewable energy project; the other may have capital and/or expertise to facilitate the investment purchase. There are many types of third-party financing within all the renewable technologies. The benefits to both the host and the investor vary.

Here’s how it works: > In the energy industry, there are financiers (investors) who are comfortable with evaluating the internal and external risks. The investor offers the host an energy services agreement (ESA), which establishes specific terms and payments that must be met. > In solar, the ESA typically calls for all power generated from the system to be purchased by the host. In wind, the ESA is typically signed by the utility due to the production-based incentives and project scale. In either case, the investor-owner assumes all costs, maintenance and risks associated with the system’s performance. > The investor is responsible for permitting, engineering and design, procurement and installation. The host provides roof space, is willing to commit to a financing contract (see below) and provides access to the host for maintenance.

Financing Models Traditional Financing Traditionally, a business interested in making a capital improvement would apply for a commercial loan or line of credit from a bank. In the current economic climate, it’s more difficult to secure such loans. For this reason, certain integrators and industry trade associations have recently established financing programs to assist with the acquisition and installation costs. Some banks have also dedicated millions of dollars to financing programs that offer debt and tax equity for investment in renewable energy projects. Power purchase agreements (PPAs) In most cases, hosts commit to a 20-year contract. At the end of the contract, they may sell the system at “fair market value.” In many cases, the owner (investor and developer) is looking to gain the short-term market rate return provided by the investment tax credits and the mid-period return based upon the power rates. Typically, the end user purchases the power on a kilowatt-per-hour basis from the energy company and/or dealer of the solar system. During the term of the PPA, the host has enjoyed predictable power rates, positive recognition and potential power savings.

The Oregon Flip, or an Operating Lease This model aims to transition ownership of the system to the property owner after a six-year period. In this model, the host is a more active participant with some upfront financing. The host chooses to leverage its financial resources in order to purchase a system, which may be 10 times the size of a direct purchase. For wind projects, the benefits to the property owner are much the same. The difference is that their contracts are usually 10 years rather than six. After the investor-owner absorbs the tax benefits and the developer has achieved its return, the real estate owner becomes the system owner for an agreed-upon price. Third-party investors The major developers and financiers of renewable energy systems include Renewable Ventures (www.renewableventures.com), SunEdison (www.sunedison.com), Tiogoa Energy (www.tiogaenergy.com), Conergy (www.conergy.us), Commercial Solar Ventures (www.c-s-v.com), as well as Wells Fargo, U.S. Bank and other large financial conglomerates. Choosing the right provider will depend primarily upon project size and expertise. Many of these organizations are looking to finance solar projects no smaller than 5 megawatts, making it difficult for building owners to participate. Federal tax credits, grants, loan guarantees and state rebates These tax credits, grants, loan guarantees and state rebates may play a role in the selection and terms of the contract options above. The federal Emergency Economic Stabilization Act of 2008 authorizes $18 billion in incentives for clean and renewable energy technologies and energy efficiency improvements. The federal tax credit for solar systems is generally 30 percent of the cost and allows for accelerated depreciation. The American Recovery and Reinvestment Act made available $5 billion in cash assistance to energy production companies. The Department of Energy has also made available an estimated $30 billion in loan guarantees for renewable energy projects and a program to award $2.3 billion in manufacturing tax credits for clean energy. ­ —Information for this article provided by Philip Krain, Commercial Solar Ventures; Michael Polentz and Tara Kaushik, attorneys at Manatt, Phelps & Phillips.

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Clean energy hand bo o k

Renewable Energy Technology – Return on Investment Device 20-panel solar photovoltaic array 3-kW micro wind turbine 20-panel solar hot water array 15-kW mid-sized wind turbine Compact fluorescent/LED lights Boiler and DDC controls retrofit Wastewater district heating system 120-kW micro hydro generator Wood-waste gasification turbine 1.3-MW wind turbine Wet-organic methanol digester Device 20-panel solar photovoltaic array 3-kW micro wind turbine 20-panel solar hot water array 15-kW mid-sized wind turbine Compact fluorescent/LED lights Boiler and DDC controls retrofit Wastewater district heating system 120-kW micro hydro generator Wood-waste gasification turbine 1.3-MW wind turbine Wet-organic methanol digester SOURCE: Richard Iredale, Stantec 32

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Cost $28,000 $23,000 $17,500 $48,000 $830,000 $2.2 million $3 million $400,000 $16 million $2 million $20 million

Return on investment (5.3%) (5.1%) (4.0%) (0.4%) 1.9% 2.8% 5.9% 7.7% 11.9% 14.3% 22.4% (Cost)/ton of Co2 offset ($220,000) ($75,000) ($6,000) ($16,300) ($4,400) ($300) $160 $5,700 $1,800 $13,600 $600

Renewables

Cl e an e n e r g y h a ndbo o k

Renewable energy incentives The long-term benefits of investing in onsite renewable energy can outweigh the initial expenses it takes to install a system, especially in states with robust incentives. However, the high cost of purchasing and installing such systems outright is sometimes a daunting undertaking for smaller businesses. Federal and state agencies, as well as nonprofits such as renewable energy industry associations and the Energy Trust of Oregon offer numerous resources to help businesses and individuals understand the financial and legal aspects of renewable energy installations. While most of the references made to energy-related federal and state incentives focus on renewable energy, the incentives for energy efficiency are also quite attractive—and improving all the time. After educating yourself about state and federal tax incentives, rebates and loan and grant programs, you might be surprised by the amount of help you can get from the government. Such information will be vital when trying to convince your company’s CEO or CFO to invest in renewables and energy efficiency.

Federal incentives

While the federal government offers incentives for renewable energy, the long-term stability of such incentives remains a constant obstacle for developers of both large- and small-scale renewable energy projects. Wind and solar: PTC and ITC Two of the most talked about federal tax credits for renewable energy, the production tax credit (PTC) for many renewable energy projects (find a list of technologies at: http://dsireusa.org), and the investment tax credit (ITC) for solar energy and fuel cells, were renewed in October 2008. To help spur renewable energy development, the American Recovery and Reinvestment Act of 2009 allows taxpayers eligible for the PTC to take the federal business energy investment tax credit (ITC) or to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. The in-service deadline for wind projects is Dec. 31, 2012 and for other eligible renewable energy projects, Dec. 31, 2013. Note the PTC is only applicable to utility-scale projects, not smaller systems used to power individual homes or businesses.) Many states offer incentives for small-scale wind for the commercial, industrial, farm and residential markets (See “State incentives,” p. 34). The American Wind Energy Association offers a Small Wind Toolbox: see www.awea.org/smallwind. Fuel cells and microturbines Federal tax credits are available for qualifying fuel cells, which generate electricity through a chemical process, and microturbine systems, which are small power generation systems using a gas turbine engine. For fuel cells, credits are for 30 percent of the cost. The credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity For microturbines,

credits are for 10 percent of the cost. The credit for microturbines is capped at $200 per kW of capacity. Energy efficiency The Energy Policy Act of 2005 includes a number of incentives for consumers and businesses that invest in energy-efficiency technologies. Some of the incentives for businesses include: > Commercial buildings. Tax deductions of up to $1.80 per square foot are available to new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. The building or system must be certified and must meet the energy-cost savings goal issued by the Internal Revenue Service. > Commercial vehicles. Buyers of heavy-duty hybrid vehicles can receive credits based on the weight class of the vehicle, its fuel economy relative to a comparable conventional vehicle and the incremental cost. The available credits range from $3,000 to $12,000. > Lighting and electronics. Federal tax credits are available for many Energy Star-certified products. www.energystar.gov/index.cfm?c=products.pr_tax_credits

National Resources

American Recovery and Reinvestment Act of 2009 More than $36 billion in tax incentives and grant money is available for both energy efficiency and renewable energy. To learn how to apply for the funds and for up-to-date information on how the money is being allocated by the Department of Energy, go to www.energy.gov/recovery. The Tax Incentives Assistance Project Sponsored by a coalition of nonprofits, government agencies and other organizations in the energy efficiency field, provides consumers information about the federal income tax incentives for energy-efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005. www.energytaxincentives.org U.S. Department of Energy Office of Energy Efficiency and Renewable Energy This federal agency provides loans and grants for businesses and universities. Many federal laboratories also offer subcontracts for startups and universities www1.eere.energy.gov/financing/business.html Solar Energy Industries Association Provides up-to-date information on solar-energy incentives and pending legislation. www.seia.org

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Renewables

Clean energy hand bo o k

State incentives

Listing all of the incentives available to West Coast businesses for both renewable energy and energy efficiency would take up pages and pages of this handbook. The “Database of State Incentives for Renewables and Efficiency,” produced by North Carolina Solar Center and the Interstate Renewable Energy Council (IREC) funded by the U.S. Department of Energy, is a one-stop shop for information on state, local, utility incentives that promote renewable energy, energy efficiency and green building practices. It also includes a list of regulations, rules and policies within such industries. Businesses and individuals can search by state as well as “renewable energy” and “energy efficiency.” Go to: http://dsireusa.org

Resources (by state)

California Energy Commission Administers many state loan and incentives programs for energy efficiency and renewable energy. www.energy.ca.gov/renewables/index.html

providing rebates and grants for renewable energy and energy efficiency projects. www.energytrust.org Farmers Conservation Alliance A nonprofit based in Hood River, Ore., published “The Navigator,” a detailed guide for Oregon residents, farmers and small businesses looking to invest in energy and water efficiency. www.fcasolutions.org/thenavigator Oregon Department of Energy Administers state tax incentives for energy efficiency, renewables, alternative fuels and green building, including the business energy tax credit (BETC) and other programs. http://oregon.gov/ENERGY/CONS/BUS/BETC.shtml Washington State University Extension Energy Program Provides incentives to small- and medium-sized manufacturers in Washington state to pursue energy efficiency projects. www.energy.wsu.edu

California Public Utilities Commission Monitors California’s feed-in tariff, which allows customer-generators to enter into 10-, 15-, or 20-year standard contracts with their utilities to sell the electricity produced by small renewable energy systems at time-differentiated market-based prices. www.cpuc.ca.gov/puc

Washington State University’s Northwest Solar Center Administers state tax abatement for solar manufacturers, renewable energy production incentives and tax exemption for the sales of equipment used to generate electricity from wind, sun or landfill gas and fuel cells. http://northwestsolarcenter.org

Energy Trust of Oregon Administers the allocation of the state’s public purpose charge by

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Cl e an e n e r g y h a ndbo o k

Carbon offsets

Fast Facts

Carbon Offsets The Chicago Climate Exchange trades 7,500 carbon contracts and related derivatives per day.

On the futures section of the Chicago Climate Exchange, the right to buy an allowance or offset in the federal market in 2013 recently traded for $10.25 a ton, while offsets linked to 2009 projects were selling for only 25 cents a ton. The  voluntary  carbon  markets industry was valued at $705 million in 2008, up from $331 million in 2007. By 2010, the value of water markets alone is expected to near $500 million.  Sources: Ecosystem Marketplace, Wall Street Journal

So your business has tackled both energy efficiency and onsite renewable energy options, but try as one might, it’s near impossible to reduce the carbon footprint of your business to zero. Whether it’s transporting goods, running computers or manufacturing processes, some carbon emissions are inevitable. To mitigate the emissions from sources you can’t do away with, you can pay your electric and/or natural gas utility for energy generated from renewable sources, and you can purchase carbon offsets. Businesses large and small have embraced “green” power and carbon offsets in recent years, throwing around terms such carbon neutral and other buzzwords in advertisements and press releases to show their commitment to sustainable business practices. While the motives of companies can fall anywhere between altruism and good PR, purchasing “green” power and carbon offsets is a vital step for businesses that are moving toward truly sustainable operations. But with literally hundreds of options, many of which can seem like scams, the task of choosing a “green” energy or carbon offset provider can be daunting.

What are carbon offsets? Often, the easiest way to purchase green power is through the local utility. Many utilities offer green power pricing programs that include a small surcharge per kilowatt-hour for green energy. Others offer a set fee for a certain amount of electricity (measured in kilowatt-hours) to be procured from renewable sources, but this may or may not cover your organization’s

complete electricity usage. In either case, although the surcharge won’t ensure electricity is piped directly from a wind turbine to a business, it will help the utility cover the increased costs of renewable generation and help put more clean energy onto the grid. Some utilities even charge a flat rate for green energy that is not tied to the fuel price fluctuations of electricity from coal or natural gas. This pricing model can provide valuable energy price predictability for businesses, but not all utilities use such a price structure. However, utilities in some areas don’t offer green power pricing. The U.S. Department of Energy’s Green Power Network (http://apps3.eere.energy.gov/ greenpower) provides state-by-state information on green power marketing in competitive electricity markets and utility green power programs. Businesses that can’t purchase green power from their utility can purchase renewable energy certificates, or RECs. Pronounced “rex,” these certificates are sometimes called “green tags.” When a company or individual purchases a REC, the funds go to the operators of a wind farm or other renewable facility. This provides an additional revenue stream that allows the producer to generate and sell electricity at a more profitable rate, enabling more renewable energy development. But buyer beware: RECs are intangible commodities and are often unregulated by governments, leaving the potential for fraud. To ensure legitimacy, companies should look for RECs certified by a third party, such as the Environmental Resources Trust, or the San Francisco-based Green-e. It’s also essential to know carbon offsets are not the same as RECs, although they are similar. Offsets involve paying someone to reduce greenhouse gas emissions instead of reducing one’s own emissions, and

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RECs vs. carbon offsets: Are they the same thing? In your business’ efforts to become carbon neutral, it is important that you examine your GHG emissions sources. More than likely you’ve found your electricity and fuel usage are primary sources, but your organization may also have emissions of GHGs from industrial processes, and/or emissions from activities such as business travel. In examining the electricity component of your carbon footprint, you’ve probably looked at how your power is generated and examined carbon-free sources of power. Wind, solar, geothermal and other resources present attractive ways to generate clean electricity. But for one reason or another, it’s not always practical to employ one of those methods directly. Enter Renewable Energy Credits, or RECs (pronounced “rex.”) Companies and individuals can purchase RECs from their utilities or other suppliers to mitigate the non-“green” electricity generated by their utility. (Utilities in some states can also purchase RECs to meet state renewable power requirements.) Sometimes called “green tags,” RECs are a good way to mitigate the use of fossil fuels elsewhere on the grid. RECs are not the same thing as carbon offsets however and should not be used to offset your company’s emissions. This is because RECs specifically deal with ensuring renewable power generation. However, your organization’s emissions are likely from many more sources than simply its electricity use. You should not use RECs to mitigate GHG emissions from travel, natural gas usage or any activity besides electricity use. RECs are best used to reduce the amount of emissions associated with the electricity used by your company. It is important to note that when a REC is purchased, only the environmental attributes associated with the generation of 1 megawatt hour (MWh) of power are bought. The actual electricity flowing into your home or business may still come from “dirty” sources such as coal, nuclear or natural gas. For this reason, it is a better choice, when feasible, to generate clean electricity onsite instead of purchasing RECs. A carbon offset is a credit representing the avoidance of the emission of one ton of carbon dioxide equivalent (CO2e) into the Earth’s atmosphere. In theory, when a carbon offset is purchased, the affect of the emissions caused by transporting your product to market for example, is offset. Combined with reducing actual emissions, purchasing offsets can help a company “neutralize” its carbon footprint. In very simple terms, this means that if your organization emits 100 tons of CO2 from all of its business activities and purchases 100 quality carbon offsets, you could claim carbon neutrality. As an additional benefit, many offset programs have a social component that requires offset projects—many of which are located in the developing world—to re-invest in their communities. The first thing to do before considering the purchase of offsets is to measure your carbon footprint (See “Carbon accounting” sidebar, p. 36).

are not always connected to renewable energy generation. Offsets can come from such diverse actions as planting trees, capturing methane from landfills and livestock operations, implementing energy efficiency measures or more exotic methods.

Rules of thumb • Buy as little as possible. That doesn’t mean you shouldn’t try to buy 100 percent “green” power. It means you should try to reduce your energy use before purchasing RECs. “Green” power still comes at a premium, and the additional cost may be a way to help you set goals for using less energy: If green power is 5 percent more expensive, aim to reduce your electricity costs by at least that amount. • Don’t just choose the lowest cost. If you choose to work with a third-party supplier of renewable energy credits, be sure to work with a credible provider, preferably one that has clear standards for sourcing or that is certified by Green-e. • Consider buying locally. Many green power providers bundle the benefits of green power projects around the country. Specifying that your credits should come from local or regional projects ensures that you are supporting projects and “green” jobs in your area. It is important to note that using locally generated RECs might mean less overall emissions reduction.

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• Remember that RECs and carbon offsets are not analogous. RECs should only be used to mitigate emissions due to a company’s electricity usage. When feasible, onsite renewable generation is the preferred method to “greening” a company’s electricity portfolio.

Resources Carbon Trade Watch An international organization, Carbon Trade Watch aims to provide research and analysis of climate change and climate policy. Its Web site provides articles about voluntary and mandatory carbon markets, climate change and climate justice. www.carbontradewatch.org Database of State Incentives for Renewables and Efficiency DSIRE is a comprehensive source of information on state, local, utility and federal incentives that promote renewable energy and energy efficiency. www.dsireusa.org Green-e A nonprofit group that certifies the validity of RECs and carbon offsets as real (have happened), additional (beyond business-as-usual activities), measurable, permanent (not temporarily displacing emissions), independently verified and unique (not used more than once to offset emissions), and also provides links to several green power and offset vendors. www.green-e.org

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Fluid Market Strategies—moving companies ahead to a sustainable future. Our expert team specializes in energy efficiency, marketing, sustainability, renewable technologies and carbon management. In short, we’ll take your company from where it is—to where it wants to be. Visit www.fluidms.com

Clean energy hand bo o k

Carbon accounting Carbon footprint measurement, for the most part, is beyond the scope of this guide. While carbon mitigation is becoming an increasingly important business strategy, it is a complicated process. Calculating all of the direct and indirect carbon emissions of your business operations is a daunting task and should be undertaken with the guidance of experts in the field. However, every business can take some steps toward carbon accounting. Often referred to as a carbon footprint, the process entails gathering data on activities such as building energy use and transportation to calculate the total greenhouse gases (GHG) produced over the course of one year. In the process, all GHG are converted into one base metric: carbon dioxide equivalent (CO2e). Once a business has determined its carbon footprint, it can identify elements of its daily operations that significantly contribute to climate change. The results of such an analysis provide a business with a plan of action to reduce its footprint. The leading carbon footprinting tool is the GHG Protocol developed jointly with the World Resources Institute and the World Business Council for Sustainable Development. www.ghgprotocol.org. This protocol categorizes GHG emissions in three ways: Scope 1: Direct GHG emissions (for example, through the combustion of fossil fuels in on-site power generation facilities, in company fleet vehicles, or through the release of GHG emissions in production processes). Scope 2: Indirect GHG emissions from electricity purchases (these emissions occur at the facility that generates the electricity, however the electricity is purchased and used by the organization undertaking the carbon footprint. Scope 3: Other Indirect GHG emissions: These are emissions that occur as a result of the company’s activities, but over which the company has no ownership or control. These emissions can be described as upstream emissions – that is, emissions released in the production/provision of goods/services used by the company (reporting Scope 3 emissions is optional, but recommended for certain activities such as employee commute, business travel, etc.).

Sign of the times 80% of consumers care about the use of renewable energy.* They understand fossil fuel electricity generation is the #1 source of greenhouse gas emissions nationwide. More than half of consumers want organizations to increase the use of renewables, but they also want those claims to be certified. Do your part by purchasing 100% Green-e Energy Certified renewable energy, then verify the purchase through an independent nonprofit program like Green-e Marketplace. We can license the logo for use on your marketing materials, website, and products, so you can start promoting your green efforts right away. And so can we. To learn how you can get started using the Green-e logo, call us today at 415-561-2100 or visit us online at www.green-e.org/marketplace

* source: 2009 LOHAS Consumer Trends Database

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Cl e an e n e r g y h a ndbo o k Green Power Network A project of the U.S. Department of Energy, the Green Power Network maintains a database of utilities offering green power, REC providers and other valuable informational resources. http://apps3.eere.energy.gov/greenpower Green Power Partnership The Green Power Partnership is a voluntary program that encourages organizations to buy green power as a way to reduce the environmental impacts associated with purchased electricity use. Partners include a wide variety of leading organizations such as Fortune 500 companies; small- and medium-sized businesses; local, state, and federal governments; and colleges and universities. www.epa.gov/greenpower Voluntary Carbon Standard The VCS Program provides a global standard and program for approval of credible voluntary offsets. VCS offsets must be real (have happened), additional (beyond business-as-usual activities), measurable, permanent (not temporarily displacing emissions), independently verified and unique (not used more than once to offset emissions). This standard provides a minimum for acceptable requirements for carbon offsets. www.v-c-s.org

Rules of thumb > Choose a reliable source. Almost all carbon accounting systems rely on the work of the World Resources Institute, which together with the World Business Council for Sustainable Development created the internationally accepted Greenhouse Gas Protocol (see “Carbon accounting,” p. 36). The Protocol provides a standard way of calculating footprints. One primary advantage of such tools is they allow the user to clearly communicate the methodology they used. Transparency around how a carbon footprint is calculated provides businesses confidence to share the information with employees, customers and other key stakeholders. > Collect data. A vast number of online calculators have sprung up in the past few years for businesses wanting to get a quick ballpark idea of their footprint. Most calculators are provided by organizations selling carbon offsets. Carbon offsets are a way for businesses to fund climate change mitigation projects around the world, such as wind energy farms or methane digesters. A general rule of thumb when using such calculators is the less information required, the more likely averages are being used, and therefore, the less accurate the results for specific users. The more data inputs, the more accurate your results. However, the online tools only provide ballpark figures and are not comprehensive. It is strongly recommended to work with a carbon accounting professional to get an accurate carbon footprint. > Report your findings. Carbon footprint data is the backbone of voluntary carbon registries, and one of the newest venues for businesses to publicly disclose their commitment to GHG reductions. Voluntary reporting systems, such as The Climate Registry, a newly minted nationwide registry, allow organizations to voluntarily report their emissions, set baseline measurements and track progress in reducing emissions.  The Climate Registry and its predecessor, the California Climate Action Registry, rely on the Greenhouse Gas Protocol framework mentioned previously, and provide careful instructions for calculating and reporting business footprints. Regional partnerships, such as the Seattle Climate Partnership, offer similar tools. —Information from this section was provided by Indigo Teiwes, Director, Carbon Advantage, Earth Advantage, Portland.

Choosing an offset provider Once your company has determined how many carbon offsets it needs to purchase in order to offset its carbon emissions, the next step is choosing where to purchase the offsets from—not as easy as one might think. This is particularly true if you are a small- to medium-sized business purchasing small to medium sized amounts of carbon offsets (less than 10,000 tons). If you fall into this category, you will be purchasing offsets on the retail market and there are several reports designed to help you navigate through this maze (see “Resources,” below). Regardless of the size of your purchase, the following questions apply:

Rules of thumb > Are the carbon offsets verifiable? Did the project actually happen? Did a third-party auditor verify there is a proven methodology behind calculating the projects’ output? > Are the carbon offsets additional? It would not have happened without your money [see “Understanding additionality,” page 38]. > Are the carbon offsets leakage-free? Ensure that events occurring outside the project area, such as the forest from which you are purchasing offsets, aren’t reducing the project’s carbon dioxide emissions benefit. > Are the carbon offsets permanent? The trees you paid for won’t be cut down and turned into toilet paper. > Were the carbon offsets double counted? Can you verify that credits are sold once and only once?

Resources

Build Carbon Neutral An online calculator designed by Seattle-based architecture firm Mithun offers a footprint calculator for the built environment. http://buildcarbonneutral.org Carbon Catalog A directory of carbon offsets, listing and rating more than 100 offset providers and more than 400 projects worldwide. www.carboncatalog.org CarbonOffsetList.org This ranking of carbon offset providers was put together by the Environmental Defense Fund and is a set of high-quality projects that it reviewed carefully and would turn to if EDF were to purchase offsets, according to the site. http://innovation.edf.org/page.cfm?tagid=23994 Carbon Offset Provider Evaluation Matrix (COPEM) In 2008 Carbon Concierge provided a rigorous analysis and evaluation of offset providers in the voluntary carbon market (VCM). Utilizing the criteria to evaluate these providers enables businesses to understand the benefits that offset providers bring to the market. http://carbonconcierge.com/2008 Carbon Offset Research and Education (CORE) CORE’s mission is to foster offset programs and policies that maximize their potential benefits, while minimizing their potential risks. CORE conducts research into offsets and offset markets to inform policy makers

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Clean energy hand bo o k

and the general public. On its site, you will find a collection of reports evaluating offset providers. www.co2offsetresearch.org Clean Air Cool Planet: Consumers Guide to Carbon Offset Providers Although published in 2006, this is another credible review of carbon offset providers. www.cleanair-coolplanet.org/ConsumersGuidetoCarbonOffsets.pdf

United Nations Air Travel Calculator The United Nations International Civil Aviation Organization recently unveiled a carbon calculation tool that allows travelers to estimate the carbon footprint for any flight they take. www2.icao.int/public/cfmapps/carbonoffset/carbon_calculator.cfm

Tracking regulations

David Suzuki Foundation In a partnership with Canada’s Pembina Institute, the David Suzuki Foundation—a respected Canadian environmental nonprofit—produced a report outlining how and why to buy carbon offsets. It also ranked the top Canadian offset retailers and a few of the better-known international ones. www.davidsuzuki.org

The carbon offset market is constantly evolving. It’s also not yet regulated at the federal level in the United States. With things shifting so rapidly, the subject of reporting business emissions and purchasing offsets can become a hornet’s nest for even the most informed offset purchaser. There are a number of online resources available to help you keep up on changes in regulations from the federal down to the community level.

Integrated Environmental Solutions Inc. Offers a software tool to help designers measure the energy use and carbon emissions of construction projects. www.iesve.com

The Federal Trade Commission The FTC is currently reviewing its “Green Guides,” publications, which help marketers avoid making unfair or false environmental claims. Included in this effort are attempts to define carbon offsets and renewable energy certificates. www.ftc.gov/bcp/edu/microsites/energy/about_guides.shtml Knowing how to comply with FTC rulings as they currently stand is also vital. The commission staff shares its views on complying with current requirements. www.ftc.gov/bcp/edu/pubs/business/energy/bus42.shtm

Global Cooling Project Developed with U.K. consultant ERM, the online resource offers tools to measure the carbon footprint of commercial production.  www.thebrooklynbrothers.com Sun Microsystems Provides open-source software tools that companies can use to track carbon emissions. The software is hosted at www.OpenEco.org.

Environmental Protection Agency Although EPA spent years resisting efforts to force it to regulate carbon emissions, the agency is now moving forward and is working on regulations limiting carbon emissions at the federal level. Follow the action on its Web site. http://epa.gov/climatechange/index.html

Understanding additionality The most difficult test, and arguably the most contentious issue facing the carbon offset industry, is the additionality concept. Quantifying a credit’s additionality means finding out whether the offset of emissions would have occurred without the purchase of credits. Sounds simple, right? Not exactly. There is no single test for additionality. Many carbon offset retailers and project developers use different additionality tests. Some common tests include: Regulatory If the project is implemented to meet regulations or fulfill industry standards, it cannot be considered additional. If the project goes beyond compliance, it could be considered additional. Financial An offset project is additional if it would have a lower-than-acceptable rate of return without revenue from carbon offsets. Barriers If non-business-as-usual implementation barriers, such as local resistance or lack of experience with a new technology, would otherwise keep a project from moving forward, the project is considered additional. Common practice If the project employs technologies that are very commonly used, it might not be additional because it is likely that the carbon offset benefits do not play a decisive role in making the project viable. Judging a project’s additionality along with the other three fundamental aspects listed above is a difficult process. In place of much-needed regulations for the industry, a variety of carbon offset standards exist. Although the standards are not regulated either, and therefore represent another potential pitfall for offset purchasers, there are a few standards that are widely accepted as reputable.

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Cl e an e n e r g y h a ndbo o k Finally, EPA maintains an e-mail list of news updates on these subjects. Sign up at www.epa.gov/climatechange/news_listservs.html. California Climate Action Registry To report emissions or not? How to report them? These are the questions that will define how many offsets a company needs to purchase when legal limits on emissions are passed. California is leading the pack on the issue. It has a set of General Reporting Protocols as well as specific protocols for the cement, forest and power industries. www.climateregistry.org/tools.html Climate Leaders An EPA industry-government partnership that works with companies to develop comprehensive climate change strategies. Partner companies commit to reducing their impact on the global environment by setting aggressive greenhouse gas reduction goals. www.epa.gov/climateleaders/ Pew Center on Climate Change The Pew Center is working at the federal level to get climate change legislation passed. A major part of its effort is focused on the creation of a capand-trade program, which would mandate a system of trading of emissions credits. it tracks the effort—including the release of studies on the topic. www.pewclimate.org/federal.

Local RECs? A good choice? Buy local has become a mantra for many people who are trying to build a more sustainable economy. Doing so generally makes sense: If one buys locally, there are less emissions associated with transport, jobs in the region are protected (or created) and dollars are kept in the local economy, effectively doubling their value. When it comes to renewable energy credits (RECs) or “Green Tags,” local is not always best, however. In some areas of the country, the standard generation mix is cleaner than in others. The Pacific Northwest is a good example of this. In Oregon, 8 percent of the 46 gigawatt hours (GWh) of electricity used in the state in 2005 was generated using coal, according to DOE’s office of Energy Efficiency and Renewable Energy (EERE). In North Dakota, 95 percent of that year’s 10 GWh of electricity was generated using coal. Put another way, 1 MWh of wind from Oregon avoids around 1,300 pounds of CO2 and the same 1 MWh of wind from North Dakota avoids 1,800 pounds of CO2, according to Pat Nye, vice president of the Climate Business Group at the Bonneville Environmental Foundation. To add more fuel to the fire, North Dakota is ranked first among all the states for potential wind energy generation with 148 gigawatts of potential wind energy available, according to American Wind Energy Association. Oregon is ranked sixth with 48 GWof potential wind energy available.

Western Renewable Energy Generation System (WREGIS) WREGIS is an independent, renewable energy tracking system that tracks renewable energy generation using verifiable data and creates trackable RECs that can be used to meet state requirements and in voluntary markets. www.wregis.org

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