Archives For Economic

Coal Power Plant The much debated climate bill is being heralded as legislation with the substance enough to begin to change our lives towards a new path of sustainability. One group that would arguably see the most change is the network of the country’s energy providers as carbon pricing leads to higher stakes for producing electricity from coal, oil and natural gas. Some have set up this confrontation as taking place between greenies and big power companies, but the power generation world is not as uniformly resistant as some might say. Is it possible that some of our biggest polluters could actually help lead our walk into the sustainable promised land?

A series of recent events points to the possibility of utility companies leaving behind the stance of defiance to play a more cohesive role in formulating new climate legislation. One of first steps is acknowledging the issue which, compared to where we have been, is a big step. A trio of large utility companies recently lead a withdrawal from the United States Chamber of Commerce citing disagreements over the Chamber’s stance on climate change. Exelon, Pacific Gas & Electric and PNM Resources all pulled their participation from the organization that claims to be “the voice of business.” Shortly afterwards, Nike resigned its position on the federation’s board. Tech bellwether Apple has been the most recent departure.

New York Times sentinel, Kate Galbraith, recently reported on two more utility companies steering their business away from coal-fired power. Arizona Public Service, the state’s largest utility, released a new strategy outline for future production to meet an anticipated 50% rise demand with no new coal plants. Similarly, NV Energy, a utility servicing Nevada and California, decided to postpone production of a 1.5 gigawatt coal plant to change its potential opening from 2012 to 2020. As Ed Mazria of Architecture 2030 often notes, the only true solution to make the difference that we need to, as fast as we need to, when it comes to carbon emissions is attacking coal for power production.

So why the change of heart? Could it be that the widespread chanting of environmental advocates are finally seeping in on the highest level, enough to make corporate executives question their means for making profits in our country? Before we start doling out halos and merit badges, there could be a number of reasons why this turn of events is not quite so surprising.

We are moving into a political state of mind where it is a question of when, not if, climate legislation is going to be passed. With the Copenhagen summit on climate change only months away, fewer want the U.S. to appear as the climate dunce of the developed world. Furthermore, Manik Roy, Vice President of  Federal Government Outreach for the Pew Center on Global Climate Change, recently pointed out that 23 states and the EPA are all in the process of reforming their own means of combating emissions. “There is a misconception that no legislation means no regulation. This is just not the case.” Utilities could be facing new laws and regulation on local levels regardless of whether or not the Kerry-Boxer bill passes in the Senate. At this point it is simply smart business for companies with the largest stake in the outcome of climate regulation to play a more central and participatory role in how the laws get detailed.

Most of these mentioned utility players hail from the west coast where states already have healthy goals for requiring renewable power generation by 2020. California prides itself on being at the forefront of sustainability. Supporting a more broadly based action and downplaying coal production can create the appearance of being a green crusader while getting more mileage out of things that they may run into on the local level anyway (which does not make it wrong, I say take all the credit that they want.) It is unlikely coincidence that Exelon is the country’s largest producer of nuclear energy. As pointed out by Robert Peltier from energy blog Master Resource, nuclear energy stands to fair extremely well if climate legislation doles out carbon allowances by percentage of current generation—meaning that nuclear companies could get carbon permits for free that can be sold at market price (since they produce no carbon themselves.) With few people asking questions about what we will do with the country’s nuclear waste issue, it is increasingly easier for nuclear companies to claim green roots.

There may be more than a bunch of born again greenies to explain the growing support for change, but so what? For the challenges that we face now of reformatting a number of social norms, supporters do not have time to quibble over whether or not different people are doing the right thing for the right reasons. If the prospect of imminent climate legislation is causing utilities to re-evaluate beforehand, then process is working just as it should and its integration may be even easier. With goals that are even slightly closer to aligning, more progress can be made on getting initiatives to market and implementation. From consumer education, to smart grid test programs, to quicker resolution to NIMBY sentiments for siting new power generation and transmission; all could stand to benefit from having more utilities on board.

Photo Credit: Flickr davipt

NIMBY Wind Farm

Sometimes the products of technology and infrastructure have a certain beauty that compliments their functional necessity, but all too often our aversion to the appearance of key service components conflicts with our desire for their services to be readily available. Renewable energy production, such as wind turbines and solar power stations, are increasingly becoming the targets of backlash, even from environmental supporters, when it comes time to locate them. A new strategy for overcoming the next generation of NIMBY (Not In My Back Yard) sentiment is imperative to avoid our recent progress in sustainability from hitting a wall.

Polling from numerous sources repeatedly points to a growing population of U.S. citizens supporting the need to address climate change and transfer our production of energy to renewable sources. People will sign petitions, click “yes” on websites and maybe even call their Congressman in support of green energy. But in true American style, when it comes to actually implementing the goal the discussion turns into a barrage of finger-pointing with no one wanting to have to look at the finished product.

The lack of willingness to actively participate in the necessities of society is one of our blaring moments of shortsightedness. As a country that enjoys an elevated standard of living, its rise has been paralleled not only by an increasingly complex and expansive array of technology necessary to sustain it, but also a lack of responsibility for making it possible. Having a water treatment facility within a block from your home is a fallacy, but blame is thrown instantly at the onset of an E. coli breakout. No one wants to see high voltage power lines but brownouts are unacceptable.

One of the more famous examples is the repeated stalling of the Cape Wind Project that meant to erect 130 wind turbines in Nantucket Sound with a maximum capacity of 420MW. The program claims that in average winds the wind farm could provide 75% of the energy for Cape Cod and its surrounding islands. However, local residents have opposed the project due to the possibility of tarnishing their ocean view. Keep in mind that the wind turbines will be 5 to 13 miles from shore so that an onlooker could reportedly extend an arm and cover one with the fingernail on a thumb.

Unsurprisingly, continuously pushing renewables to the outskirts of society increases the amount of transmission (materials, land, installation, maintenance, replacement) needed to transport the power, increasing the amount of power lost in transit and raising the price of the power that gets there (which in turn compounds the problem.) Heaven forbid we need to pay more for power that is more sustainable and less polluting. Who would think that in a capitalistic economy the cheapest solution is not always the best?

One option is to give the federal government more power in making decisions for renewable energy sites and new transmission lines, but the prospect of increased government intervention is already causing politicians to butt heads on the Climate Bill. Another option is to use government policy that sweetens the deal for proximity to new energy solutions. (For Liberals, this would mean tax people the farther they get from renewable energy. For Conservatives, it would mean provide subsidies for those willing to live next door. For me, I would say do both.)

Yet another possibility is to redesign these facilities for a new aesthetic reading. After all, most of the time these components of infrastructure are designed by engineers. As an architect, I can respect and appreciate the simplicity and functional efficiency of how engineers design. Their goal of streamlined products that serve a specified purpose can be seen in old warehouses, factories and power stations. Nonetheless, they are usually not trying to win beauty contests. Some of these creations could not get a facelift to draw a different impression from surrounding onlookers.

Trash and Recycling CenterSpanish architecture firm Abalos and Herreros has a portfolio of work that has reinvestigated the appearance and nature of industrial programs like their recycling center in Valdemingómez, Spain. Contrary to the American standard of cheap metal siding and standing seam roofs, their facility is wrought with light to illuminate a terraced interior designed with an elegant order for industrial function. Solar farms and biomass plants could conceivably be realized in a second generation that is more viewer-friendly.

I do not believe that the largest impediment in the path of environmental stewards is convincing people that changes should be made. Regardless of the debate on climate change, sustainability and efficiency just make sense. Preserving our resources, keeping our air, water and land clean; it is just smart and more people realize that everyday. The impasse is instilling not the notion, but the drive for everyone to contribute and accept part of the collective onus to change—and make no mistake, things will need to change. Sustainability is not a technological fix. Our levels of consumption cannot be supplemented with gizmos.

Personally, I think that wind turbines and CSP plants have their own manner of beauty to them, like an ipod or a 40” Samsung LCD television, but I do not know if my sentiment has reached the majority yet.

Photo Credit: Flickr via AbracaDebra

Recycled Paper

In an international landscape, many claim that sustainable measures in the U.S. lose their steam if the industrial economies of China and India are not on board. Similarly, within the U.S., efforts of individual citizens need to be paired with corporations doing their part to change the course of business to greener ends. A recent study suggests that some large corporations are beginning to alter their daily operations to align themselves with greener options of stocking their paper products. According to the Green Grades report of twelve companies, conducted jointly by the Dogwood Alliance and Forest Ethics, corporate powerhouses like Fed-Ex and Office Depot are on the path to a more sustainable paper trail while others still have a long way to go.

The Green Grades study looked at six areas of sustainable paper usage including FSC certified products, avoiding paper from endangered forests and recycling policies. Fed-Ex stood at the head of the class, earning an “A-“ from the study for excelling in responsible sourcing of materials and using FSC certified products. They are not a bad company to be leading the pack as not only one of the largest shipping companies by the owners and operators of one of the largest copy-center chains as well. Followed by Staples, Office Depot and OfficeMax, some of the bellwethers seem to be catching on.

On the other hand, not every company can join Bank of America  and its One Bryant Park as the epitome of environmental reform. Some companies have yet to even scratch the surface. I was surprised by some of the laggards. Amazon.com and Costco received failing grades, followed closely by the “D+” rankings of Target and Wal-Mart, all apparently suffering from sourcing their paper products from endangered forests and questionable suppliers.

There is a lot to be said for targeting paper products as a component of our waste stream. According to the EPA, in 2007 paper and paperboard comprise a third of our waste— 83 million tons. The negative effects of the paper industry are also relatively immediate and encompassing. Illegal logging in both Asia and South America lead the destruction of rain forests and risk removing entire ecosystems of life around the planet, not to mention the tremendous carbon sinks that old growth trees provide.

But the largest waste source is also one of the easiest to fix. Sustainable forestry is growing in popularity as organizations like the Forest Stewardship Council gain exposure and notoriety. As digital media continues to advance, numerous extraneous paper habits can be replaced with a bit of foresight and focus. For the material that has to still be printed, paper is also one of the easiest products to recycle.

I was not surprised at the deficiencies in recycling which comprised the lower marks of even the highest ranking companies. Years ago, a discussion I had with Tom Rhoads of the Onondaga Country Resource Recovery Agency in Syracuse, New York, he told me that when it came to recycling many residents were already on board, earning Syracuse one of the highest recycling rates in the state. But it was the businesses that were notoriously hard to convince. Here in Manhattan the field is much the same.

It is markedly easy for a slightly educated consumer to contribute to more sustainable paper purchasing. Whether it is essentials like paper plates, toilet paper and paper towels or supplies like printer paper, purchasing FSC certified or recycled content is a small added price to pay (perhaps an extra dollar) while the effects are far reaching. The more responsible materials we can purchase, the more that the rise in demand will shift jobs from older corners of the industry to their more responsible counterparts until a new standard is fully implemented and better practices are commonplace. Less consumption and waste all lead to fewer landfills, lower costs of removal, more efficient manufacturing and healthier ecosystems to reduce the carbon pressure on the environment.

Vote GraphicThey are hidden amongst the mail, often getting tossed aside for the Economist, Business Week or the new IKEA catalog. “Proxy Information Enclosed” often lays printed across the front as a faint reminder to the stock purchase that was made days to months ago. These often-ignored ballots of corporate policy could offer a new alternative to government intervention for spreading sustainability through the upper echelon of our corporate landscape.

For those like me, proxy statements often get a quick look at best. A glance almost always reveals that I have never heard of any of those running for board positions, nor know enough to vote for or against any of the resolutions. However, a new trend is forming that has investors of public companies using proxy resolutions to drive upper management towards sustainability planning. While this has been slowly happening over the course of the past few years, the change in the game is that it is starting to work.

A blog post by Marc Gunther points to a proxy vote for utility company IdaCorp, based in Boise, Idaho, where investors drew together a 51.2% majority in favor of the company adopting greenhouse gas emission targets—despite the resistance from the company’s management. The win could mark a new trend of American equity owners forcing sustainability up through individual companies.

Of the conservatives that I often pair words with, one of the greatest oppositions to the green lobby is not that they disagree with the need to address climate change, but that they dislike the method of using government intervention to “restrict choices” of citizens to only those considered to be more sustainable. Right-wingers would rather see a free market option that facilitates the opportunity to change lifestyle rather than mandating it. Gathering support for green-goal investing could create a new way to incite change within the framework of capitalism that our country has come to rely on so heavily.

Some could argue that individual investors would be muscled around by larger institutional investing groups, keeping them from achieving results—especially on larger companies that are responsible for more considerable portions of waste production, pollution and energy use. But IdaCorp’s example shows that individuals are joined by non-profits and new funds, adding strength to proxy movements.

Groups like Ceres help coordinate efforts to promote change within company policy. Ceres states its mission as “Integrating sustainability into capital markets for the health of the planet and its people” and operates as a network of environmental organizations, public interest groups and an investor network that collectively manage over $7 billion in assets. That is a number that can be a substantial presence in a larger range of companies. According to Ceres:

A record 68 climate-related shareholder resolutions were filed by investors this year, of which 31 were withdrawn after the companies agreed to positive climate-related commitments.

For conservatives, this should be a win-win. On one hand, it promotes Americans to reinvest their money back into our own businesses, helping to bolster an economy that is in dire need of it. It also acts on a case-by-case basis as the result of nothing more than investors exercising their rights as owners of a company—potentially downplaying the amount of effort needed from Capitol Hill. If the support for green efforts is as strong as polls like Zogby International’s recent inquiry is saying, then private investing dollars could help battle inefficiency and accountability from the private sector side.

Strength in the movement could not have happened at a better time. With many people believing that the worst of the recession is behind us, long term trends in the market are likely bullish, prompting more people to stay invested in companies that have a better chance of turning a profit. Conversely, if this kind of success had happened three years ago, the effort could have faced a devastating setback by numerous investors working to change companies only to see their assets cut in half.

Given the current economic landscape, the American Clean Energy and Security Act is likely getting a different reception than it would have three years ago. With unemployment still at a twenty-year high, preserving economic stability and preventing job losses is one of the more popular methods of targeting the bill for flaws. While opponents to the bill have claimed that the resulting rising costs of the legislation could add financial burden to families and sacrifice American jobs, the truth is that sustainability is the best source of economic rejuvenation that the country has and according to recent polling, the number of naysayers are dwindling.

Job Poll Graph

According to a  poll released by Zogby International, when likely voters were asked how climate efforts will affect American jobs, 51% believe that new job creation will result while an addition 17% believe it will have no positive or negative affect. More impressively, those who believe that American jobs would be sacrificed were in the minority in all age and income groups, speaking to a sentiment brewing uniformly throughout the population. Numbers like these make me wonder if the range of benefits that sustainability can bring is becoming clearer to more people in the U.S.. Wishful thinking perhaps, but it is a good place to start.

My own goals for helping to spread that kind of knowledge were bolstered in 2007, when I sat in a conference hall with 8,000 others listening to Bill Clinton give the keynote speech at the Greenbuild Expo in Chicago, hosted by the USGBC. The former President spoke at length about the progress made by the Clinton Climate Initiative and their future goals, but in speaking about sustainability’s affect on the economy, Mr. Clinton had a quote that has stayed with me:

“For all the skeptics, I think this is the greatest opportunity our country has had to generate broad-based prosperity since we mobilized for World War II.”

It struck me because it was the first time I had heard a politician asserting the latent job value in sustainability and what it could produce for our country. The result could be a reversal of the exodus of industrial jobs that has plagued America for decades and its opportunities for implementation are widespread leaving few pockets of the economy without a chance for benefit. New job prospects can emerge from three lines of national intervention: restoration, innovation and conversion—all equally necessary and co-supportive.

Restortation – As a society, we we have only recently begun to fully realize how interconnected the workings of the planet truly are, and as a result, the full effect that our actions impose on our surroundings. Naturally, such a realization brings some grim findings. 11 million people live within a mile of over 1,300 Superfund Sites in the U.S., catagorized by the Environmental Protection Agency as some of the worst toxic hazards sites in the country. A proactive, rather than cursory, approach to remedying our own mistakes could sprout a formative industry of trained, specialized workers. Everyday brings new environmental violations released by the EPA, so having supply problems for work in this arena is likely a ways off. The rewards for such efforts are far reaching. Beyond a more healthy natural landscape, the reduction in pollution-damaged land would parallel a reduction in health problems rising from contamination, especially our drinking water–effectively curbing our medical spending while increasingly our livelihood.

Innovation – Our country still operates as a world-renowned center for technological excellence, though perhaps not as uncontested as we once were. Meeting the future’s needs for renewable energy, water purification, recycling, building technology, waste treatment and transportation will take nothing less than technological excellence. In the end, it will get done—the only question is whether we will do it, or pay someone else to do it. Amidst its seemingly endless string of needless opposition, the Cape Wind Project and its resulting turbine factory was slated to create between 600 and 1000 pre-operational jobs and 150 permanent jobs during operation for 420 megawatts of wind energy. We need closer to 200 gigawatts and just as much solar. Creating a new source of American jobs while weening ourselves off of oil and coal offers fewer violated ecosystems, cleaner air, cleaner water and  increased national security.

Global Warming GraphConversion – Numerous parts of our infrastructure are reaching the crest of their lifecycle curve, marking the transition from an asset to a liability for the economy. Power generation, roads and railways, power conveyance and water systems all comprise lingering costs that will eventually become outmoded. Creating a new life for these pieces of infrastructure can allow us to draw out new kinds of latent value from systems that we have already paid for. This is perhaps one of the largest sources of environmental resistance. What are we going to do with all the oil and coal jobs in the country? We will turn them into something else that will evolve into a new staple of the American economy. One 54-year-old plant on the Ohio River is being converted to burn grass and wood cubes to produce 312 megawatts of power, leaving it as one of the largest biomass plants in the country. The retooling of the plant will purportedly turn 105 local (coal) jobs, into green jobs.

Serious Materials became the most recent epitome of scanning the landscape for conversion opportunities before wasting time, money and energy building new facilities. The California-based company produces high efficiency building products like high performance windows and doors as well as insulating drywall. They represent the transition into the next generation of the building industry which new standards will be crafted around. Their search found a recently closed window factories in Chicago, Illinois and Vandergrift, Pennsylvania and purchased their facilities, hiring back workers that would have otherwise remained laid off. Retooled and retrofitted, the plants continue to function producing better products and sustaining employment.

To date, the climate bill is the fastest way to begin the transition to an economy supported by an Environmental Industry base. Environmental commentator Joe Romm recently said that although he gives the bill a “B-“ as an emissions bill, he gives it an “solid A” as a renewable energy bill. The Zogby poll claimed that 71% supported ACES Act passed by the House of Representatives. 22% believed that Congress is doing an adequate amount to address climate change, with 45% saying they are doing too little. Less than a third of respondants (28%) believe that Congress is doing too much.  We will see if growing public sentiment seeps its way into the Senate.

As our technological boundaries continue to be conquered and redrawn, there are some on the bleeding edge of innovation that seem to blur the line between technology and magic. What Cambridge, Massachusetts based Joule Biotechnologies is claiming to have accomplished seems nothing short of magical: putting organisms, sunlight and carbon dioxide into a box and making a viable petroleum substitute appear. No drilling, no burning off waste. According to the company, that has been operating in stealth mode for nearly two years time, they are ushering in the new standard of fuel as essentially, liquid solar power.

“There is no question that viable, renewable fuels are vitally important, both for economic and environmental reasons. And while many novel approaches have been explored, none has been able to clear the roadblocks caused by high production costs, environmental burden and lack of real scale,” said Bill Sims, president and CEO.

If correct, their plan can take two of the most abundant things on the planet—photons and carbon dioxide—and circumvent the need to be drilling more wells searching for oil. Their “black box” is dubbed a Solar Converter, which reportedly uses proprietary organisms to induce photosynthesis, creating a hydrocarbon liquid the company calls SolarFuel. Simms points out that this separates them from a biofuel process, like ethanol, which uses a plant base for its feed stock.

SolarFuel

The prospect of sun fed fuel could impressively leap-frog the ethanol industry, replacing it as the renewable fuel of choice given that its carbon footprint could vastly outperform ethanol’s much debated, corn-based and energy intensive process. Eventually, such a model could propose to achieve the impossible: bring the use and production of our country’s fuel to a level of stasis with the net input of carbon equaling the net output of its use.

Joule Biotech says they can create 20,000 gallons of fuel per acre at roughly $50 a barrel with current subsidies, certainly a competitive price point out of the box. Furthermore, the fuel is purportedly going to be compatible with existing engines for diesel and gasoline, wiping out the potential snag of retooling an industry. With a pilot plant scheduled to come online in 2010, their next milestone could be a ramp up for commercial scale production in 2012 with additional investing. Despite not knowing how cleanly the fuel burns in comparison to ethanol or conventional gasoline, the prospects of carbon improvement on the national scale are far-reaching.

So where is the downside? I had trouble finding one myself. Though I have to admit that the claims bring to mind another magical fix that spawned years ago called Thermal Conversion Process (TCP) technology developed by a company called Renewable Energy Solutions.

Their process claimed to make synthetic petroleum from super-heating agricultural and industrial waste such as tires, plastics and paper. The idea seemed attractive when they claimed their only by-products were fuel gas (butane, methane, propane mix), synthetic oil and water. The prospects seemed to offer a solution to not only our foreign oil dilemma, but a significant portion of our waste issue as well with (similarly) a virtually unlimited feedstock. Unfortunately, it seems no new plants other than the pilot plant in Carthage Missouri have been constructed and for some reason, they have not catalyzed a new standard in fuel production. Hopefully, we will be hearing much more from Joule Biotech in the near future.

With the growing media focus on energy and carbon it is easy to lose sight of all the things that contribute to our energy usage and our carbon footprints. The strict focus on small parts of our economy’s environmental challenges only emulates how prone we are to isolating concepts and events rather than continually viewing our actions as an interconnected whole. Waste production is another prime place for progress that is not so far away from carbon caps and the renewable energy debate. The collection, sorting, compacting, dumping and even recycling of waste all uses energy so to strip down its girth is a boon to our greater goals. When it comes to waste, plastics stand out as a prime target for reorganization and an answer that quickly comes to mind is biopolymers—naturally based plastic compounds. Continue Reading…

I repeatedly suggest that one of the largest barriers to a more sustainable economy is ignorance. Most people are simply not aware of the problems, let alone the solutions, and as such the pitch for a different lifestyle (call is environmentally sound, ecologically efficient or simply “green”) can be a tough sell. So if the problem is a lack of education who is responsible for fixing it? We are quick to point fingers at tech companies, developers, car manufacturers—the producers of “stuff” that we consume to keep our economy afloat. But at the end of the day we cannot pile all of the onus on entities and organizations to force information onto us, we too have a responsibility to seek it out for ourselves. Continue Reading…

So maybe harder times are not hitting green goals that hard after all. Recent polling efforts targeting how citizens respond to green issues bears some surprisingly strong support for sustainability in the economy. The numbers come as a welcome counter to the Gallup poll that showed a continually declining support for the severity of global warming, suggesting that either support for green efforts were growing soft or that global warming may not be a great front runner for the movement.

ABC Green Polling

The necessity of environmental reorganization may be sinking deeper into the population. The polling questions by the Washington Post/ABC targeted the regulating of Greenhouse Gases by the government and showed considerable support—counter to the conservative voice of opposition with a strong presence in the media as of late. 75% of American voters are pro regulation with 54% being strongly in favor. Similarly, when asked as to their concern about rising costs associated with GHG regulation, 77% said they were concerned. It is reasonable to believe that, for many, despite their concern for higher prices they are still in favor of a more sustainable goal.

NBC Green Polling

The polling of NBC/Wall Street Journal is somewhat tempered, but still positive. Their more pointed question of whether we should regulate GHG if it will raise energy bills revealed 53% being in favor. Moreover, 68% of voters agreed with President Obama’s plans to devote $121 billion over ten years to develop green energy.

If the numbers carry some truth then we may be avoiding one of the worst fears of environmentalists and green company investors: the economic downturn and resulting financial worries will surmount years of growing interest (and capital) for green spending and policy. If sustainability in the marketplace can survive the worst financial crisis since the depression, then we may be poised for meaningful progress.