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Img_1453_4Attention Wall Street types and financial entrepreneurs keen to go green. The U.S. Environmental Protection Agency and the U.S. Department of Agriculture today announced they’re hooking up to promote water quality trading markets.

The idea is to clean up rivers, lakes and oceans by letting those who restore wetlands and reduce agricultural runoff to sell credits to sewage treatment plants and other facilities required to maintain water quality levels under the federal Clean Water Act. In other words, if Big City Sewage Plant can’t or won’t meet its water quality targets it can buy credits from Farmer Brown who has gone organic and thus slashed the amount of contaminants running from her land into a nearby river. Pollutants such as nitrogen, phosphorus and sediment can be traded.

Here’s the green to be made: while there are a few scattered water quality trading markets around, there’s a business to be built in setting up and brokering these markets. That means opportunities for consultants, traders and software engineers. The feds hope to provide $3 million in funding for such markets in 2007.

More Companies Go Kyoto

Img_1222_6Thirteen U.S. corporations today pledged to reduce their greenhouse gas emissions between 9 percent and 100 percent over the next decade. The companies, which range from Fortune 100 behemoths like DuPont and Intel to the Sonoma Wine Company, signed up for the Bush administration’s voluntary global warming program called Climate Leaders. (The complete list is here.) So far 58 companies have taken the pledge, and to date five companies, including General Motors and IBM, have met their greenhouse gas reduction targets.

Participating companies agree to conduct an inventory of their greenhouse gas emissions and then develop a plan to reduce or offset them. Some smaller companies have gone completely carbon neutral. For instance, Silver Spring, Maryland, printing company Ecoprint reduced its emissions to zero by buying its electricity from a wind farm and purchasing renewable energy credits to offset emissions from employee commutes, manufacturing and heating. Conservation Services Group, a 270-person Westborough, Massachusetts energy consultancy, promised to slash its annual 2,036 metric tons of greenhouse gas emissions to zip by replacing its vehicle fleet with hybrids, curtailing electricity use and buying credits from the Chicago Climate Exchange, a carbon trading market.

AutoNation Plugs In

Prius_imageThe green bandwagon rolls on. Today, AutoNation, the largest car retailer in the U.S., called on Detroit and Tokyo to start rolling plug-in hybrids off the assembly line.

“These new hybrids would offer consumers a 50-mile all-electric range, get the equivalent of 100 miles per gallon, be fully recharged at night and deliver all the performance and comfort of traditional gasoline-powered vehicles without the damaging emissions,” said AutoNation chief executive Mike Jackson in a statement. “We believe Americans will buy these vehicles, which is why we want to sell them.”

AutoNation signed on to the Plug-In Partners campaign, a group of enviro activists, cities, companies and utilities trying to create a national market for plug-in hybrids. To create a plug-in Prius, for instance, you swap out the car’s battery for a rechargable lithium ion version.

The car retailer’s move is good news for the campaign but problematic for startups like EDrive and Hymotion – see Business 2.0’s July article – that sell plug-in conversion kits. If automakers heed the call for hyper-efficient hybrids, the conversion kit market is sure to run out of gas.

Svleaders_for_alt_energyWith the election a few weeks away, a Who’s Who of Silicon Valley’s executive class is convening a “CEO Summit on Alternative Energy” Monday in San Jose. The confab is part of a campaign by a group called Silicon Valley Business Leaders for Alternative Energy to lobby Congress to reduce the United States’ dependence on imported oil.

Here’s what the group wants: federal incentives – read subsidies – to companies developing renewable energy technologies; policies to shield alt energy businesses from oil price flucations of the type that doomed the solar biz in the 1980s; promotion of flex-fuel cars capable of running on both gasoline and ethanol; and policies to encourage the development of plug-in flex-fuel hybrid electric cars and “practical” all-electric cars.

So far about 30 Silicon Valley CEOs – including the chiefs of Advanced Micro Devices, Juniper Networks, Palm and SanDisk – have signed the group’s open letter calling for such an agenda. Of course it goes without saying that Silicon Valley is experiencing a green energy boom, with big investments in biofuels and solar power on the line. Fair enough, given that Big Oil has certainly played the politics-and-tax-break game to its multibillion-dollar advantage for well high on a century.

Monday’s event at Novellus Systems will feature about 200 execs, academics, policy wonks and politicos like California Senator Dianne Feinstein.

Berkeley_logo_2Part of the fun of living in Berkeley, California, is voting. Sure, there’s the usual bond measures and city council candidates – spanning the political spectrum from the left to the far left to the far out left. But in Berkeley we also like to weigh in on topics of international import, and the 2006 election is no exception. For instance, the November 7 ballot features Measure H, which calls on the city council to petition the U.S. House of of Representatives to impeach President George W. Bush and Vice President Dick Cheney for various high crimes and misdemeanors. Then there’s Measure G, which would have Berkeley reduce its greenhouse gas emissions 80 percent by 2050. The measure, which is advisory but backed by the mayor, urges the city council to set a 10-year emissions reduction target in 2007 and develop a plan to achieve that goal.

Now on many issues Berkeley tends to serve as a bellwether only for Santa Cruz, Santa Monica, Eugene, Boulder and other people’s republics. But on the environment the East Bay city has been a national leader: It was the first to adopt curbside recycling, now found in even the reddest of the red states, and in 2003 it began to convert all municipal vehicles to biodiesel.

In one of its periodic forays into foreign policy, Berkeley endorsed the Kyoto Protocol and then proceeded to make its rhetoric reality. Between 2002 and 2005 the city exceeded the Kyoto targets by reducing its greenhouse emissions 14 percent. The city also has joined the Chicago Climate Exchange, the North American carbon trading market. So as New York City and other municipalities now move to limit their own greenhouse gas emissions, they just might want to look to the left coast.

Climate_1The rubber begins to hit the road on California’s landmark global warming law on Oct. 19 when state Air Resources Board members get briefed by their staff on their role and duties in enforcing limits on greenhouse gases. One of California’s most powerful environmental agencies – just ask the auto industry – the ARB has been handed the complex job of figuring out how to implement the law’s requirement that the state’s industrial polluters reduce emissions of greenhouse gases 25 percent by 2020. One thing’s for sure, there’s a lot of green in it for attorneys and lobbyists as the regulatory battle begins. Stay tuned to the wombat for further developments.

The U.S. Environmental Protection Agency and the Department of Energy apparently don’t share the Bush administration’s skepticism about global warming. The agencies’ Energy Star program has embarked on a campaign to persuade Americans to replace conventional light bulbs with energy efficient ones “to help reduce the risk of global climate change.”

As of today nearly 125,000 people have promised to replace almost 200,000 lightbulbs. That small act alone will eliminate 82 million pounds of greenhouse gases, the EPA says. Energy efficient lightbulbs are more expensive than standard bulbs but use two-thirds less electricity, produce 70 percent less heat and last about 10 times longer. In other words, you’ll save money in the long run as well as help the planet.

According to the EPA, 800,000 cars’ worth of greenhouse gas emissions could be taken out of the atmosphere if every home in the nation changed at least one light bulb. Now just imagine the environmental payoff if every bulb in every standard-issue McMansion was replaced…..

Epa_green_power_2Pop quiz: What company is the biggest corporate buyer of renewable energy in the United States? a. Toyota b. Whole Foods c. Wells Fargo d. Halliburton.

And the green smiley face goes to …. Wells Fargo. The banking goliath has purchased 550 million kilowatt hours of electricity generated from renewable sources, according to a quarterly list released Tuesday by the U.S. Environmental Protection Agency’s Green Power Partnership program. Actually, Wells Fargo bought renewable energy certificates that will pay for 550 million kilowatt hours of wind energy, representing 42 percent of the bank’s electricity needs.

Green grocer Whole Foods came next, generating 463 million killowatt hours and 100 percent of its electricity needs from renewable energy sources like biomass, geothermal, small-hydro, solar and wind.

Given Whole Food’s alt corporate bent, that might not be too much of a shocker. But get this: The number one buyer of green energy in the nation are those hippies at the U.S. Airforce, which bought a billion kilowatt hours of electricity produced by biomass, geothermal and wind.

The EPA itself ranked No. 4, buying 100 percent of its electricity – representing about 330 million kilowatt hours – from renewable energy sources. The list of the top 25 green power buyers is here.

Cool Roofs

Coolroofphoto1If you’re a green geek, California is the place to be these days. Environmental technology is hot, hot, hot – just witness the megabucks being poured into Silicon Valley solar startups and biofuels companies. Sure, greentech is sexy – I for one am still waiting for that solar-powered iPod – but we tend to overlook low-tech solutions to environmental problems. Like painting roofs white.

So-called cool roofs reflect rather than absorb the sun’s rays and can lower air-conditioning bills by 15 percent and a building’s overall energy costs by half. That’s a considerable chunk of change given that we spend $40 billion a year on air conditioning in the United States. “If you have a new home in Sacramento or Fresno, on a hot afternoon there’s two ways to take a kilowatt off the grid,” Arthur Rosenfeld, a commissioner with the California Energy Commission, said recently. “One’s to install photovoltaics to cool the house – that’ll cost you about $7,000. Or you can make the roof white.”

A word of advice to solar energy entrepreneurs: you just might want to think twice before pitching that business plan to Vinod Khosla, legendary Silicon Valley VC and clean tech guru. Khosla, who’s placing big bets on biofuels, told the audience attending Tuesday’s California Clean Tech Open awards ceremony in San Francisco that “solar is going in the wrong direction.”

The problem? In Khosla’s view, solar energy proponents are too fixated on making solar cells cheaper to produce. “If I were an entrepreneur in solar, I would not be working on lowering the cost of solar cells; I would be working on higher efficiency solar cells.”

“Solar of course is a great technology and we imagine many uses,” he said. “But even with subsidies solar is quite uncompetitive. Being a Republican, I don’t like subsidies.”

Much more promising on the solar front, Khosla noted, are solar thermal power plants, some which use the sun’s rays to heat fluids to create steam to drive electricity-producing turbines.

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