Green energy may take big strides in 2011

Extracting energy from waste and significant moves by BP, Shell and Chevron into renewables will be among the big green stories for 2011, says a Seattle-based investment bank.

Cascadia Capital LLC also said in its annual clean-tech forecast that Congress will discard a cap-and-trade proposal on pollutants and that high oil prices will generate increased investment in natural gas, which has seen resurgence from new techniques unleashing major reserves.

“Energy policy and sustainable technologies continue to draw significant debate from consumers, pundits, politicians and investors around the world,” said Michael Butler, Cascadia chairman and CEO, in a statement. “In 2011, the energy landscape will be marked by significant investment activity from oil companies, M&A (mergers and acquisitions) of renewable energy companies, and the introduction of new technologies for transforming waste to energy. These markets will continue to draw a great deal of attention as oil prices continue to rise and the formation of a national energy policy is thrust back into the spotlight.”

In the newspaper business, where I spent 24 years of my life before this assignment, we'd all be rushing around about this time of year to get two things together.

One would be a summary of the year's top stories. The other would be a story that focused on what was expected to happen in the new year, much like what Cascadia has done here.

Every reporter was expected to collect and report on everything on his or her beat, or subjects covered. Most of us hated the task, grumbling the entire time. Our point? We'd already been covered those topics. "It's old news," we'd say. And the forecasts? We believed they were usually too general and be of little use, much like picking the Superbowl lineup a year in advance.

Our wrap stories would run on A1 during the holidays -- traditionally a time when news slows to a near stop. We'd recycle the best photos and frequently get the photogs to work up photo pages inside.

Of course, now I look upon it all fondly. And to an editor, tying up loose ends and looking ahead make sense. Back when I worked at the now deceased Anchorage Times in the early 1990s, I'd come up with the big fisheries story that would include a forecast of the salmon runs and the crab catch in the Bering Sea. Those were the big money stories and of interest to me since my grandfather, Lowell Wakefield, was one of the industry's pioneers.

At the Skagit Valley Herald, overlooking the tree-studded Puget Sound, my big stories would be farming, timber and the environment's battle with sprawl. When I went into editing full time and overseeing reporters, my subjects expanded to include crime, health care and in the Tri-Cities, the lovable Hanford nuclear site.

Now my scope has narrowed again, and I write mostly about green energy, tossing in somewhat relevant personal observations every now and then. And the traditions of my past encourage me again to cite my big stories and issue a forecast.

For the San Joaquin Valley, the top green news, at least from my perspective, has got to be energy efficiency. The Valley received a bundle from the American Recovery and Reinvestment Act in 2009, and while much of it remains unspent, the allocations will prove invaluable in reducing energy costs to jurisdictions.

Here at the SJVCEO, we've had significant delay getting Energy Efficiency and Conservation Block Grant money spent for the 39 cities and counties our nonprofit represents. Most of the hurdles are bureaucratic and require seemingly endless administrative solutions and reports.

However, looking into my crystal ball I see our fortunes changing early next year. I see work getting done and that money getting spent.

In other green Valley news, 2010 was big in getting wind and solar projects moving forward. The golden eagle has slowed wind projects and tortoises messed with some solar efforts, but we expect some to soldier on and connect with the grid. Perhaps waste-to-energy projects at dairies and other biomass efforts will get the green light.

I'd like to say I had a clue about green jobs, but I don't. Like many across the country, I experienced an economy-related layoff. I watch as my beloved newspaper industry continues to contract. I would like to see green energy innovation provide a bright spot.

Will it happen in 2011? One can hope.

Green Building Is Growing In United States

Green building is accelerating in the United States, even in this down economy. According to the Las Vegas Business Press and McGraw-Hill Construction, one-fourth of all construction in 2010 will fall into the "green" category - an increase of 50% over the last two years.

"It's an amazing area of opportunity at time when the construction market is extremely challenged," McGraw-Hill Vice President Harvey Bernstein said in the story.

Going green can increase returns almost 10%, which is an incentive, McGraw-Hill said. The green mandate is increasingly being seen on commercial construction, particularly health care and government.

That's certainly good news and could foreshadow what could come when construction picks up as the economy improves.

Home builder tests water efficient housing

A Los Angeles home builder has embraced water conservation, at least on a trial basis.

KB Homes has partnered with the U.S. Environmental Protection Agency, building the first homes in the nation to be certified by the agency's WaterSense program, agency officials reported. The four homes are in Roseville, Calif. and are expected to help families save 20 percent over the run of the mill home, or an average of 10,000 gallons of water and at least $100 on utility costs each year.

“The construction of the first WaterSense labeled homes, and the plans to build more, mark the beginning of an innovative approach that gives homeowners the chance to cut their water and energy bills and protect a vital environmental resource.” said EPA Administrator Lisa P. Jackson, in a statement.

The program, which seeks to help home buyers cut their water and energy use, serves as another indication of where the industry appears to be headed. Energy efficiency and water conservation are big in California and gaining prominence throughout the West and South where water allocation issues appear to be cultivating nothing less than high anxiety.

I'm reminded of Jack Nicholson in the movie "China Town," in which John Huston, as villain Noah Cross, says, "Either you bring the water to L.A. or you bring L.A. to the water."

It's all about water. Was then and it is now.

Frank Ferral, who heads the Recycling Energy Air Conservation program for the Greater Stockton Chamber of Commerce, has been spreading the conservation message to business -- and anybody else who will listen -- for the better part of the past decade. His point is relatively simple: Saving energy and water and keeping waste out of the trash makes economic sense.

Hundreds of businesses have signed up for his program in which a team of experts goes through a building and identifies areas that can benefit from installation of energy efficient lighting, water saving devices and waste diverting practices. The REACON program in Stockton has helped develop an industry manufacturing products out of former debris.

With a recent grant, Ferral has been expanding his program and message throughout California's Central San Joaquin Valley. His concept has been to team up with chambers of commerce and offer them up the team energy audit concept so the chambers can provide it as a value-added product to members.

I tagged along on a couple of audits in Fresno, one at a bank and another at a business in an old downtown building. The lighting expert said he could get immediate savings of about 20 percent on the bank and more than 30 percent on the older building. The water savings were more basic, adding a 1.2-gallon flush toilet among other measures.

The EPA has entered into a consumer friendly realm with its WaterSense site, which offers tips and quantifies retrofit measures. Each of its WaterSense houses includes aptly labeled plumbing fixtures, an efficient hot water delivery system, water-efficient landscape design and other water and energy-efficient features.

EPA officials estimate that if the approximately 500,000 new homes built last year had met WaterSense criteria, the homes would save Americans 5 billion gallons of water and more than $50 million in utility bills annually.

Yeah, it's in the water.

US, EU push toward energy efficiency

Energy efficiency is going global.

It's not just a bunch of true believers pounding fists on tables.

Last week in Lisbon, Portugal, the year-old U.S.-EU Energy Council brought up energy efficiency and clean energy technologies in a joint statement from the council and U.S. State Department, saying the concept has "effects across our foreign, economic and development policies."

The council ordered its Energy Security Working Group to pursue an aggressive list of clean energy issues. Officials said they "highlighted the importance of enhancing cooperation on energy efficiency in the buildings sector and products," recognizing "the mutual benefit of working towards common standards, convergent regulatory frameworks and effective incentives for the deployment of emerging clean energy technologies."

Also targeted were electric vehicles, energy storage, cellulosic and algal ethanol, and carbon capture and storage. The council praised the working group for its research into hydrogen and fuel cells, solar power and even nuclear fusion.

The emerging international consensus embracing the value of energy efficiency follows that of California. The state has successfully championed energy efficiency as a way to diminish the need for new energy generation since the anti-nuclear movement in the 1970s. Consumers, the federal government and a bunch of movers and shakers in corporate America have jumped aboard relatively recently.

By working together on energy, officials involved with the council say the U.S. and Europe can increase "mutual security and prosperity; underpinning stable, reliable and transparent global energy markets; and coordinating our regulatory regimes and research programs to speed the deployment of tomorrow’s clean and efficient energy technologies."

The bottom line? Economic growth and job creation. At least that's the line from the U.S. State Department. Climate change goals also factor in.

The U.S.-EU Energy Council brought together Secretary of State Hillary Clinton; Daniel Poneman, deputy secretary of the U.S. Department of Energy; EU High Representative Catherine Ashton; EU Energy Minister Freya Van den Bossche; and EU Commissioner for Energy Günther Oettinger.

Heavy hitters. But this is politics, and the actual effect of the effort may be minimal at first. This is especially true in this case. While energy efficiency received top billing, there was also quite a bit of time given to Ukraine's natural gas transmission and Nigeria's oil fields.

Still, my impression is that the more that energy efficiency is publicized, embraced and instituted, the more the common Joe and Josephine will give it a try. It's like my recent post about LED bulbs being hawked at hardware stores across the nation. They're a little expensive to install but worth it in the long run.

Times are changing.

Photo: Secretary of State Hillary Clinton & EU Foreign Affairs & Security Policy High Rep./European Commission VP Catherine Ashton

Energy efficiency movement gains steam

Energy efficiency doesn't boast the sex appeal of solar or wind power, but it gets results.

And influencing more people to champion the cause could siphon off a large resource of untapped energy savings. At least that's the conclusion of a study released this week by the American Council for an Energy-Efficient Economy, or ACEEE.

After all, the nation’s largest single user of energy -- accounting for about half -- is homes and commercial buildings, said William Fay, executive director of the Energy Efficient Codes Coalition, this week. Fay made his remarks at the Final Action Hearings for the 2012 International Energy Conservation Code in Charlotte, N.C. on Monday where building officials from across the country voted for a series of new building energy codes expected to improve energy efficiency in new buildings by 30 percent, according to BrighterEnergy.org.

The ACEEE study's authors said programs that motivate green behavior could lead to significant savings and should be implemented with greater zeal. "We need to design and build programs that change habits as well as light bulbs," they said.

The sentiment reflects that of Art Rosenfeld, the nuclear physicist and California energy commissioner, a pioneer and tireless advocate of energy efficiency. He was dubbed the Godfather of Green by KQED and told CBS news in a past interview that the United States' descent into an unrepentant energy guzzler can be explained simply: "Energy in the U.S. is dirt cheap. And what's dirt cheap is treated like dirt."

Rosenfeld adopted the position advocated by ACEEE early on, successfully working to change consumers' wasteful habits in California.

The state got the message -- with Rosenfeld's help -- back in the 1970s at the height of the anti-nuclear movement. To avoid building another reactor, the state went with energy efficiency, improving building and appliance standards. The result: the Rosenfeld Effect, which resulted in the flattening of the state's per capita energy use.

ACEEE's researchers made a number of recommendations for enhancing the acceptance of energy efficiency. One was increasing the visibility of energy using behaviors. One particular program, already offered by PG&E's smart meters, allows consumers to see more clearly how much power they consume.

The smart meter on my house enabled me to monitor power consumption of my new SEER 13 air conditioning unit. I had switched from an evaporative, or swamp cooler, and was worried about ballooning electric bills. Fortunately, those didn't come to pass, and my family was able to keep summer cooling bills relatively low, keeping the thermostat on 78 degrees.

We're still not great about dealing with vampire power -- the electronic devices all over the home constantly sucking energy and consuming as much or more than 10 percent of a home's power demand.

Changing habits can make a big difference to the environment, not just the bottom line. As Rosenfeld said, "To delay global warming, you get halfway there with efficiency."

Energy efficiency is what many refer to as the "low-lying fruit" in the move to clean energy. For instance, a recent report by Boulder, Colo.-based Pike Research estimates potential annual energy savings of more than $41.1 billion if all U.S. commercial space built as of 2010 were included in a 10-year retrofit program.

The next step in the clean energy movement is more costly.

Rosenfeld said renewables like solar and wind should be pursued once energy efficiency is addressed. "But renewables cost you money, while efficiency saves money," he said.

Calif. & Mass. top energy efficient states

When it comes to energy efficiency, California ranks No. 1.

At least that was the finding of the American Council for an Energy-Efficient Economy in its recently released 2010 State Energy Efficiency Scorecard report.

Massachusetts placed second and Oregon, New York and Vermont round out the top five.

"Governors, state legislators and officials, and citizens increasingly recognize energy efficiency — the kilowatt-hours and gallons of gasoline that we don’t use thanks to improved technologies and practices — as the cheapest, cleanest, and quickest energy resource to deploy," the report's drafters said.

The findings reflect those of a recent report by San Francisco-based Clean Edge Inc., which listed California just ahead of Massachusetts in a study listing the top clean energy states. That study listed innovation in multiple sectors as a key to developing a green economy.

In addition to states taking a leadership role in the energy efficiency movement by undertaking new policies and programs, the ACEEE report found:

• Alaska, Utah, Arizona and New Mexico showed the most improvement from last year's report by increasing investment in utility energy-savings programs, expanding state government initiatives and adopting better building codes. 
• State spending of $4.3 billion on energy efficiency in 2009 was about double that of two years earlier. 
• Twenty-seven states have adopted or are in the process of adopting energy efficiency resource standards that establish fixed, long-term energy efficiency savings targets. That's double the number four years ago. 
• Twenty states have adopted or are in the process of adopting improved building codes that stress energy efficiency. 
• California, Massachusetts and Washington have enacted greenhouse gas reduction targets related to transportation. 
• The injection of more than $11 billion in federal stimulus funding for state energy efficiency projects has helped create new programs that are saving money and putting people to work.

Would You Invest $30,000 To Reap A Return Of $250,000?

We here in Fresno, which is one of the hottest regions of California and has some of the highest power bills in the state, should have energy efficiency at the top of our green list.

Frankly, it boggles my mind that more property owners, legislators and policy makers still don't understand that energy retrofits are a great investment. Wouldn't you, as the headline to this article says, commit $30,000 to save $250,000 in expenses later?

Is there any investor who would not think that was a good return? Certainly, Chris Martin, director of energy management at University of North Carolina at Chapel Hill, thinks so. He led one of 14 teams across the country that participated in an EPA-sponsored Biggest Loser-style contest to shed the most energy weight, according to this New York Times story.

The Chapel Hill team spent $30,000 upgrading a residence hall on campus, and wound up slashing energy expenses $250,000, much of it by adjusting the heating and cooling system to run slower during moderate weather. All combined, the school cut energy use 36% .

The university engaged residents of the hall in the process. CityBiz Magazine said a touch-screen computer was installed in the dorm's lobby so students could track energy consumption. Each floor held energy-saving competitions, and reminders were posted in elevators, bathrooms, and common areas.

That means more money in university coffers. I don't know if Chapel Hill is strapped for cash, but I know a few campuses in California that would love the extra money.

Chapel Hill has seen the light, so to speak. Upgrades to 100 buildings on campus saved nearly $4 million last year, according to the New York Times. The average savings per building was $33,000. The average per-building investment: only $7,000.

"The payback is on the order of months, not years," Martin told the newspaper.

Other teams also got good returns for their investments. A Sears store in Maryland cut energy consumption 31.7%. A JC Penney outlet in Orange, Calif., reduced energy use 28.4%. Together, the 14 teams saved $950,000 on power bills.

Businesses and others in the San Joaquin Valley could probably reap good returns too. After all, temperatures reach triple digits in the summer. Businesses and families pay the price with heart-stopping power bills.

Retrofits and modifications such as these are the low-hanging fruit of the whole greening movement. Consider the iconic Empire State Building. A $20 million energy-efficiency upgrade, which includes more than 6,000 new windows, will shave $4.4 million annually off the power bill.
That's a payback of 4.5 years. Simply amazing.

Commercial building space in the United States covers a total of 79 billion square feet, and buildings, 80 percent of which are more than a decade old, are one of the leading sources of energy consumption and carbon emissions, said a recent report on commercial building energy efficiency by Boulder, Colo.-based Pike Research.

The report, "Energy Efficiency Retrofits for Commercial and Public Buildings," estimates potential annual energy savings of more than $41.1 billion if all commercial space built as of 2010 were included in a 10-year retrofit program.

Unfortunately, shredded budgets, the freezing of Property Assessed Clean Energy programs and an economic recession make it harder for businesses, homeowners and landlords to finance the upgrades.

But those who can manage it might enjoy a nice financial return.

(Photo of Morrison Hall by online wsj.com)