$3,000 for energy audits and improvements, Government Funding

Obama Unveils ‘Cash for Caulkers’ Rebates for Energy-Efficient Retrofits


Homeowners eligible for up to $3,000 for energy audits and improvements.

March 2 -- President Obama today announced the details of “Homestar,” a Cash for Clunkers-like rebate program designed to entice Americans to make their houses more energy efficient.

Under the proposal, homeowners could be eligible for up to $3,000 in rebates for purchases of efficient product upgrades or whole-house audits/retrofits. Obama wants the program, dubbed “Cash for Caulkers” and first mentioned in his January State of the Union address, included in a jobs package being drafted by Congress.

The administration hopes the incentives will boost demand for building products such as insulation, efficient windows, and roofing in the same way car sales skyrocketed last year when consumers were offered rebates for trading in their gas-guzzling autos for more fuel-friendly models. The White House says the program would create “tens of thousands” of jobs, cut energy bills for families by $200 to $500 per year, and reduce the nation’s dependence on oil.

In a statement, the NAHB acknowledged the program’s economic possibilities: “This has the potential to be a real shot in the arm for the home building industry,” said association chairman Bob Jones. “It will help put America back to work, and it will help families save on monthly energy bills.”

Administration officials are still working with Congress on details but confirmed the program would cost about $6 billion and that up to 3 million households would participate, according to the Associated Press. Some details, including how long the program will run, have not been worked out with Congress.

“It is going to be politically difficult to do some of this,” Obama said outside Savannah Technical College, the site of his announcement. “I am confident we can do it.”

DETAILS UNVEILED

Under the plan, consumers would collect point-of-sale rebates for energy-efficient purchases. A broad array of vendors, from small independent building material dealers and energy efficiency professionals to large national home improvement chains would market the rebates, provide them directly to consumers, and then be reimbursed by the federal government.

Under the first level of rebates, Silver Star, consumers would be eligible for up to $1,500 for a variety of home upgrades, including adding insulation, sealing leaky ducts, and replacing inefficient water heaters, HVAC units, windows, roofing, and doors. There would be a maximum rebate of $3,000 per home.

The more comprehensive Gold Star level would provide a $3,000 rebate to consumers for a whole-house energy audit and subsequent retrofit tailored to achieve a 20% energy savings. Additional rebates would be available for savings above 20%.

Click here for full details of the Homestar program. Details Can be viewed at: stlouisrenewableenergy.com

Along with the NAHB, building products manufacturers and nonprofit environmental groups heralded the new plan.

“American homes are so wildly inefficient that billions and billions of dollars in wasted energy are holding back our economic recovery,” said Lane Burt, manager of Building Energy Policy at the Natural Resources Defense Council, a wildlife protection organization. “Even the most basic upgrade puts money in our pockets, puts Americans back to work, and puts energy waste on the run.”

Masco Home Services president Larry Laseter, one of three manufacturers who joined President Obama at the announcement, urged Congress to approve the program. “We applaud the efforts of the administration to introduce a jobs creations program that is truly a win-win-win," said Laseter. "The Homestar program will put our nation's skilled construction force back to work, benefit homeowners through comfort and energy-efficient improvements to their existing homes, and result in long term energy efficiency gains.”

The National Lumber and Building Material Dealers Association was more cautious, telling EcoHome's sister publication ProSales that it will be working closely with the White House, the DOE, and Congress to help ensure the program does not put small and large independent dealers at a disadvantage over big-box retailers.

The NAHB also expressed that equal access for everyone will be essential to the program's success.

By:Jennifer Goodman, Senior Editor Online for EcoHome.
Provided by: Scotty, Scott's Contracting, St Louis "Renewable Energy" Missouri

Illinois' Green Energy Finance Initiative

March 2, 2010


Illinois' Green Energy Finance Initiative

A recent initiative from Illinois may serve as a model for other states that hope to attract green energy projects and stimulate economic development.

by Marnin Lebovits, Illinois Finance Authority

There are plenty of reasons to encourage and support the development of renewable energy projects. But in this down economy, the credit markets are typically discouraging. Here in Illinois, we've found a way to open new doors to financing renewable energy projects because we know they're good business–and good for our state.

Like other states, Illinois recognizes the climate and environmental benefits from generating power from renewable energy sources. We know that developing these projects will reduce our region's dependence on foreign oil.

Renewable energy will also help to meet state renewable portfolio standard (RPS) targets. Illinois established its targets in August 2009 and requires that by 2025 one-quarter of all of the power used annually in Illinois must be generated from renewable energy sources. Of this amount, 75 percent of the renewable power used must be generated from wind projects. This requirement has created a significant interest in renewable energy projects, especially wind projects. Also, like other states our state wants, to the extent possible, to provide incentives to help reduce the cost of power generation from these projects so that savings can be passed on to ratepayers.

Finally, renewable energy projects will spur economic development and provide a secure revenue stream for many farmers and other property owners struggling during this recession. The projects will create jobs–many in depressed, rural regions of the U.S., where municipalities will also benefit from the increased tax revenue sparked by such development.

Challenges for Project Finance

Despite these benefits, developers typically face serious obstacles when they attempt to finance renewable energy projects. Capital markets continue to face severe challenges, and the ability for developers to obtain traditional project financing is much more limited than in the past. Only a handful of financial institutions will provide loans for renewable energy projects, including wind farms. Even then, the terms and conditions for the loans are quite arduous.

Most recent transactions include loan terms of only 5 or 7 years, with a 20-year amortization period, generating significant refinance risk in most cases. Developers with the ability to raise capital in other forms, either on a portfolio basis or through a rated parent entity, are forced to prioritize projects in different stages of development across the U.S. market and even around the world.

To better compete, the Illinois legislature created new financing tools to aggressively attract renewable energy projects to our state. The state's approach might serve as a model for others hoping to attract similar types of development

The Illinois Solution

The Illinois legislature recently passed a bill adding renewable energy projects to the portfolio of developments eligible for assistance through the Illinois Finance Authority (IFA), which provides expert, hands-on support to help businesses get the capital they need for growth.

The IFA's assistance for renewable energy will come in the form of up to $3 billion of loan guarantees for project debt. This project finance can contain long-term tenors to fully repay the project debt, thereby eliminating the risk of refinancing. The loan guarantees will be secured by the state's moral obligation. While moral obligation is not a full faith and credit guarantee, it is a model that has been used extensively in the municipal finance markets, and it's used often in Illinois. As of September 2009, the State has outstanding debt (unrelated to this renewable energy finance initiative) of over $100 million using this model. Eight state agencies have the ability to issue moral obligation-supported debt totaling around $1.5 billion for local governments and economic development purposes. Clearly, this is an important funding tool.

These incentives will reduce a project's financing costs by an estimated 100 to 175 basis points. Combined with other incentives offered by the state, such as grant funding available from the Department of Commerce and Economic Opportunity for renewable energy projects, Illinois' incentive package is drawing attention from developers. In fact, the IFA late in 2009 was already reviewing a number of renewable energy projects for inclusion in this program in anticipation of the legislation's effective date, January 1, 2010.

Private Sector Debt Loan Guarantees

Under the first of three IFA funding models, a developer can work with its traditional project finance lenders and add the IFA as a partner, providing a "loan guarantee" to private sector lenders. The private sector lender would also have the support of Illinois' moral obligation pledge.

Lenders will need to first look to the renewable energy project revenues to cover the debt service. If the project doesn't generate enough revenue, the lender (or lead arranger bank for a syndicated loan transaction) may call in the IFA. The addition of the state's moral obligation may allow the private sector lenders to extend the term of their project debt, possibly even to fully amortize the debt (based upon the tenor of the power purchase agreement) and should help to reduce the cost of the private sector financing.

In a second financing model, the IFA would issue bonds secured by both project revenues and the state's moral obligation support. The IFA would then loan the bond proceeds to the project developer to pay for project construction. Again, the first repayment source for the debt service on the bonds is project revenues. Illinois will be called upon by the Bond Trustee to fund any debt service deficiency on a moral obligation basis. In this instance, the tenor of the bonds could be set to correspond to a final term that will be near the PPA maturity, fully amortizing the project debt. The bond investors will assume the project risk. However, investors will also benefit from the security of the guarantee of the State of Illinois on a moral obligation basis. This additional security will reduce the project's interest rate.

A Third Option

These two models can be combined with the private sector providing a loan for a shorter-term piece and bonds issued for a longer-term piece of the debt financing. For example, the IFA can provide a loan guarantee to private sector lenders on their shorter-term financing (also known as "Series A") and the IFA can be the lender, on a pari-passu basis (in other words, without partiality) for a "Series B" financing that will represent the debt's longer-term portion. The combination of the proceeds from the Series A and Series B financings will provide the total debt funding for the project, thereby reducing total debt service costs and eliminating the refinance risk of traditional private sector funding.

The U.S. Department of Energy (DOE) loan guarantee program for renewable energy projects requires a participating lender (either a financial institution or an economic development authority) to share risk with the DOE. Although the IFA intends to work with projects participating in the DOE program, it is not required.

To back its push for renewable energy projects the state created the Illinois Energy Team (IET) to help review environmental and technical aspects of renewable energy projects and help expedite project development. The IET includes specialists from the state university system, Argonne National Laboratory and state agencies such as the Illinois Finance Authority, the Illinois Power Agency, the Illinois EPA and the state Department of Commerce and Economic Opportunity. This panel reviews feasibility studies and reports, evaluates technology, and considers project siting, grid interconnection and environmental impact issues. The IET will also provide a forum for developers to work with various state agencies to help projects come to fruition.

The box presents a sample of the expected terms and conditions for the moral obligation support from the State of Illinois. These terms and conditions — subject to change — represent traditional project finance criteria.


The IFA has accepted program applications for three wind projects. Inquiries have come in from developers involved in virtually all renewable energy sectors, including wind, solar, clean coal, geothermal, biodiesel and biomass.

Marnin Lebovits joined the Illinois Finance Authority as a senior funding manager in August 2009 and helped create program guidelines and credit criteria. For the last 20 years prior to joining the IFA, he has been active in municipal and project finance, managing and actively participating in the municipal and project finance groups for both Sumitomo Bank and DEPFA BANK. Mr. Lebovits received his MBA from the Wharton School of the University of Pennsylvania and is a CPA.
For more information on this Illinois financing initiative, contact Mr. Lebovits at 312-651-1344 or mlebovits@il-fa.com.

Wind Turbines-Rural America

February 16, 2010


The Interview: Dan Juhl
by David Wagman, Chief Editor, REWNA Magazine
Oklahoma, United States [Renewable Energy World North America Magazine]

Wind turbines have been part of North America's rural landscape for well over 150 years, known best to farmers and ranchers as windmills. Rather than generate electricity, these machines pumped water out of the ground for domestic use, livestock and irrigation.

Today, the development of large-scale wind farms–containing dozens or even hundreds of wind turbines spread over many square miles–has brought a new breed of wind-driven machine to rural landscapes. They have not always been welcomed. Billboards along I-70 in Kansas in 2007 protested against the "industrialization" of rural parts of the state as large-scale wind farm development advanced.

Such opposition to wind farm development–and related transmission–threatens to slow growth in parts of the country where populations are small, viewsheds are wide and wind resources are robust.

Dan Juhl understands the depth of feeling that motivates opponents to large-scale wind farms. But he also recognizes the long-term benefits that can come to rural areas by developing such resources.

"Creating jobs in rural America is a big deal," says the 60-year-old Juhl, who is chairman of the board and CEO of the company that bears his name. As a comparatively small-scale wind developer based in Woodstock, Minn., Juhl Wind has championed the idea of community-based wind project ownership since the 1980s when Juhl returned to his home state after spending some time in California. He based his community ownership ideas on approaches used by the Dutch and the Germans, who kept project ownership in the hands of local landowners. During the 1990s Juhl worked to encourage policymakers in Minnesota and Nebraska to adopt rules encouraging similar types of local ownership. And since 1999 his company–whose stock trades over the counter using the symbol "Juhl.OB"–has developed 130 MW of community-owned wind power in both midwestern states.

"The genesis was no big thing," says Juhl. "Just a bunch of folks trying to make things happen." Having spent his childhood on a farm, Juhl grew up with wind technology. Now his focus is on using development tools to "help people who own the wind benefit from it."

The company has fewer than two dozen employees and the corporate office has been off the grid for 10 years. Electricity for the office comes from a hybrid wind/solar system and heat comes from a corncob burner. Juhl drives an electric car to and from work.

The essence of Juhl Wind's approach is to exploit wind resources for electricity generation while keeping the economic benefits as close to home as possible.

Through the community wind approach, the company involves land owners and the local community by establishing a limited liability company. This structure extends ownership to participants along with an initial equity investor. Once the equity investor receives its targeted rate of return, long-term project ownership flips to the community. As project developer, Juhl Wind helps in finding financing, secures utility power purchase agreements, negotiates with turbine suppliers for equipment and operates the wind farm once it's completed.

"We want economic development and to keep jobs in our communities," says Juhl. "The revenue stream stays in the community."

To the extent possible, the company uses local contractors, including electricians, engineers, installers and maintenance workers.

"When we build these projects we are small enough that we can utilize local talent," he says.

To date, the company's work has focused on the Buffalo Ridge area of southwestern Minnesota. At an elevation of around 2,000 feet, this 60-mile-long expanse of rolling hills offers good wind resources. To date, Juhl Wind has developed 14 wind farms with a total of 117 MW installed capacity. The company has another two dozen projects under development with a potential total capacity of 425 MW.

Much of the developed wind capacity connects to the grid via 69kV lines, which means the projects generally remain at the sub-transmission level. As a result, most of the electricity never makes it to the broader grid but is consumed locally. Juhl Wind prefers to develop projects sized between 5 MW to 20 MW and that represent a capital investment of $10 million to $40 million. That leaves them nowhere near mega-project size, but of a dollar and megawatt scale that's "still big to me," Juhl says.

Since the company went public in June 2008 it's attracted more attention and opened new sources of capital. Retired General Wesley Clark joined the board of directors in January 2009, having contacted the company to express an interest in its development approach. And Juhl Wind is investigating setting up an equity fund with the backing of "socially responsible firms" to develop more opportunities.

Community wind is a relatively small part of the larger wind development industry, representing roughly 2 percent of U.S. wind power capacity, according to one study. Projects are concentrated in a handful of states, including Minnesota, Iowa and Texas. (One Massachusetts community-owned wind project is profiled on page 67.)

A 2009 conference paper written by two researchers at the National Renewable Energy Laboratory said that while all wind energy projects offer an economic development component, local communities may see only a small benefit from the investment. The researchers said it is not uncommon for less than 15 percent of project-related construction spending to remain in the state where the project is built.

Community wind projects such as those developed by Juhl Wind can boost local economic benefits in three principal ways, according to the authors. First, more local labor and materials may be used during development and operations. Second, profitable projects with local ownership provide dividends to local shareholders. Third, community wind projects often depend on local banks for construction financing and operating loans.

Comparing community wind to a fictional "absentee" project, the authors found that construction employment effects can be 1.1 to 1.3 times higher and operations-period impacts 1.1 to 2.8 times higher for community wind.

The NREL researchers concluded that community wind projects have "greater economic development impacts than absentee-owned projects" and recommended that policies prioritizing higher levels of local ownership are "likely to result in increased economic development impacts."

Community ownership may help ease the sort of opposition to large-scale wind development that led to anti-wind billboards being posted along I-70 in Kansas.

Large-scale wind farms and transmission lines are becoming a major issue in rural America, Juhl says. "You just can't plop huge amounts of power" on rural areas, he says. "At some point the people who own the land become upset."

The NREL-written conference paper said that as wind penetration levels approach 20 percent, the likelihood rises that more people will encounter wind projects and infrastructure. While increased exposure will be a welcome change to some, the risk exists that people living in a wind project's footprint may resist project development. This may be especially true if "outsiders" or "corporate interests" are seen as benefiting more than local residents, the paper suggested.

Community wind can counteract opposition by increasing the amount of economic development benefits that remain local. At the same time, community wind may ease perceptions that "outsiders" are benefiting from wind projects.

Juhl admits his projects generate electricity that may cost more than what larger developers can offer, primarily because of differences in scale and scope. But he argues the difference "vaporizes" when amortized across the rate base and after accounting for other economic development benefits. State regulators, however, often need to be reminded of the benefits community wind can offer.

"Regulators don't care about anything but the cost of energy," he says. "But we're the ratepayer; we create all these jobs and keep revenue in the community."

Juhl Wind receives a steady flow of inquiries from communities intent on developing their own wind resources. The company's small scale limits the extent to which it can join even the most interesting projects. "I have to be honest with them," Juhl says. "It's difficult being a small player."

Difficulties aside, Juhl remains committed to the goals of community-based wind that first inspired him 30 years ago.

"If we can use this to help rural economies prosper that's the thing," he says. "It makes a huge difference in the larger economy."

National Call In Week, Repower America

Dear Blog Reader,

Next week could make or break America's climate and energy future.

Last summer, the House passed a comprehensive clean energy and climate bill that could create millions of clean energy jobs and begin to address the climate crisis. Now, a new Senate version, with significant support from key Senators, could be less than a week away* -- but lobbyists from Big Oil and Coal are already lining up to do whatever they can to gut critical provisions.

We can't let lobbyists and special interests win. America needs clean energy and the jobs it will bring to our economy.

That's why we're launching our biggest calling campaign ever. We're joining forces with a coalition of climate groups to create a perfect storm of grassroots pressure from Tuesday through Thursday of next week. We're holding an event near you where local members can call other supporters around the state and connect them to our Senators. Can you join us?

RSVP to a phone bank for clean energy near you.

Your calls were crucial to shutting down Senator Lisa Murkowski's attack on the Clean Air Act last month.

Now, with the Senate negotiating the contents of this critical new bill, its fate is in our hands too. We need to keep our Senators' phones ringing off the hook -- the more they understand that passing this bill is our top priority, the more they will make it theirs.

To get it done, we're setting the ambitious goal of 20,000 calls from the Climate Protection Action Fund alone next week. And to reach that number, we'll need the help of committed supporters like you to make it happen. Can you help us reach our goal?

Help us flood the Senate with calls. RSVP for a local phone bank next week.

Successful legislation isn't just important here in the U.S. As we saw at the Copenhagen climate conference, countless nations are relying on our action to catalyze global efforts to promote clean energy and reduce carbon pollution.

But for this bill to make a real impact, it's got to include two things:
1) Strong investment in clean energy to create American manufacturing and construction jobs, and
2) A cap on carbon pollution that limits the amount of carbon companies can emit, giving them incentives to reduce emissions while holding violators accountable.

Your calls have made a difference before. And next week, your barrage of phone calls will tell our Senators to stop wasting time, stop caving to big oil and coal, and finally pass a strong clean energy and climate bill -- because we can't afford the consequences of their inaction.

Please RSVP to a phone bank today.

Thanks,

Dave Boundy
Campaign Manager Repower America

* Juliet Eilperin and Steven Mufson, "Reid demands climate bill ASAP," Washington Post - Post Carbon blog, http://views.washingtonpost.com/climate-change/post-carbon/2010/02/reid_demands_climate_bill.html

Energy Efficiency, Demand Response "DR", Utility Companies

Info Supplied by: Scotty, Scott's Contracting-St Louis Renewable Energy Missouri Information found at:http://www.renewableenergyworld.com/rea/blog/post/2010/02/getting-to-energy-efficiency-with-two-little-magic-words-demand-response?cmpid=WNL-Friday-February26-2010

Getting to Energy Efficiency with Two Little Magic Words (Demand Response)



Here’s how to be super cool in Silicon Valley: Mutter the words “demand response” or, better yet, the acronym “DR.” Wait for somebody to start talking about Energy Efficiency (somebody will) and then say “demand side management” or its acronym, “DSM.”

The more the cost of electricity rises, the more the electricity-devouring Silicon Valley high tech companies become energy conscious. Google recently got permission from the Federal Energy Regulatory Commission to become a utility just so it can exercise more control over its energy mix, add more New Energy to its supply and implement better control of its Energy Efficiency (EE).

The Silicon Valley IT giants long ago took the standard EE steps like improving their insulation, windows and doors. Now what they are studying is how they can more effectively reduce their demand during periods like hot summer afternoons when the price of electricity peaks because everybody in California is running their air conditioners. This is called demand response (DR).

The chip wizards are also competing to invent the best demand side management (DSM) technologies for utilities so that they can interact with customers electricity consumption, via a smart grid, to prevent brownouts or blackouts when sudden fluctuations in supply or demand threatens the utilities’ capability to keep the lights on.

Coordination of Energy Efficiency and Demand Response; A Resource of the National Action Plan for Energy Efficiency, from researchers at the Lawrence Berkeley National Laboratory, is an examination of how EE and DR fit together.

It was written in support of the 10 implementation goals of the 2008 National Action Plan for Energy Efficiency Vision for 2025, an agreement between 50 major electric and gas utilities, state utility commissioners, state air and energy agencies, energy service providers, energy consumers, and energy efficiency and consumer advocates under the auspices of the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA). The goals:

(1) Establishing Cost-Effective Energy Efficiency as a High-Priority Resource
(2) Developing Processes to Align Utility and Other Program Administrator Incentives Such That Efficiency and Supply Resources Are on a Level Playing Field
(3) Establishing Cost-Effectiveness Tests
(4) Establishing Evaluation, Measurement, and Verification Mechanisms
(5) Establishing Effective Energy Efficiency Delivery Mechanisms
(6) Developing State Policies to Ensure Robust Energy Efficiency Practices
(7) Aligning Customer Pricing and Incentives to Encourage Investment in Energy Efficiency
(8) Establishing State of the Art Billing Systems
(9) Implementing State of the Art Efficiency Information Sharing and Delivery Systems
(10) Implementing Advanced Technologies

The LBNL paper (1) summarizes the research on the relationship between energy efficiency and demand response, (2) presents new information from program administrators, customers, and service providers, on current practices and opportunities in the coordination of energy efficiency and demand response, and (3) discusses the barriers to coordinating energy efficiency and demand response programs.

The goals of the Silicon Valley circuit and system builders are simple: (1) Make gads of money and (2) save the world. EE is the easiest cheapest way to begin doing both those things. The LBNL paper demonstrates that DR is a valuable means toward achieving EE, which makes DR pretty cool.

This post is based on Coordination of Energy Efficiency and Demand Response; A Resource of the National Action Plan for Energy Efficiency by Charles Goldman, Michael Reid, Roger Levy and Alison Silverstein (January 2010, Lawrence Berkeley National Laboratory)

Natural Living Expo Sunday, February 28, 10:00 a.m. to 4:00 p.m.

This Sunday please join StLouisGreen.com at the
 Healthy Planet Natural Living Expo!

Information Provided by:
 Scott's Contracting, Green Builder St Louis "Renewable Energy" Missouri

Learn To Live More Naturally
at the 19th Healthy Planet Natural Living Expo
February 28 In Webster Groves

Cure your cabin fever at The Healthy Planet, St. Louis’ Green & Natural Living magazine, hosts its 19th Natural Living Expo Sunday, February 28, 10:00 a.m. to 4:00 p.m. at the Webster Groves Recreation Center, 33 E. Glendale Road (I-44 at Elm Avenue) in Webster Groves.

This popular event will include more than 70 exhibit booths offering a variety of eco-friendly, healthy and natural products, services and information. There will be numerous food and product samples to enjoy from Whole Foods Market, Sappington Farmers Market, Chipolte Mexican Grill, Schnucks Market & more. Enjoy seasonal beer tasting by Schlafly Beer and Wine Tastings hosted by Crown Valley Winery and Sappington Farmers Market. Eco-Friendly businesses will be on hand to show you how you can live a “greener” and more sustainable life at home, the office and in the community. Enjoy the beautiful sounds of Native American Flute by John MacEnulty and the heavenly melodies of Harpist Terri Langerak.

Expo visitors will have an opportunity to help the Haitians by making a donation to the Sisters of Loretto who will administer the funds directly to the Haitian people. The first 300 visitors will take home a complimentary eco-friendly, reusable tote bag courtesy of Whole Foods Market, Sappington Farmers Market, and Schnucks Markets.

Receive a free health screening or chair massage. Enter a free drawing for a family weekend at Trout Lodge YMCA of the Ozarks ($600 value), or Amtrak train Tickets. If you are interested in living a healthier and more eco-friendly life, then don’t miss this event! The first 100 paid visitors receive FREE passes to Missouri Botanical Garden, too! Plenty of door prizes and something for everyone in the family! Even your pets!

Adult admission is $8.00, children under 16 are free! Two for one tickets are inside the February issue of The Healthy Planet magazine. For more information please call The Healthy Planet magazine at 314-962-7748, or email expoinfo@thehealthyplanet.com.

For more info, please call 314-962-7748

Combat "Greenwashing"

Provided by: Scotty, Scott's Contracting, St Louis "Renewable Energy" Missouri

Article by:Shades of Green-By:Rich Binsacca

The term “greenwash-ing” has been aroundabout as long as its root word, relied upon to ­unearth exaggerated or untrue claims (made on purpose or unwittingly) about the environmental impact or value of a given product, including homes.


But given the rapid proliferation of both green products and buildings across the country, efforts to better define the term—and ferret out offenders—are relying more on science than trial-and-error or taking a label of ingredients at face value. “The trend now is to scientifically certify green claims against a battery of standards and test methods,” says Ed ­Wyatt, program manager for material content certification at Scientific Certification Systems in Emeryville, Calif., one of an increasing number of independent entities and public agencies providing that service.

Even then, however, Wyatt and others see manufacturers and builders misusing the certifications they earn once the marketing staff takes over. “There’s no such thing as an ‘eco-friendly’ certification,” he says, recalling a recent manufacturer’s packaging claim. Far more prevalent than misleading PR, he says, are truly unsubstantiated claims for which no scientific basis exists.

To combat greenwashing, builders and specifiers are ­asking for more information and third-party verifications, and applying comprehensive, software-enabled life-cycle analysis metrics to gain a more solid footing for their projects.

They also are relying on green building program standards to guide them to the greenest ­products and building practices. “They give you a framework with which to judge if something meets the qualifications of a truly green product,” says Fort Worth, Texas–based builder Don Ferrier, such as specific water flow rates for plumbing fixtures, as verified by a third party, as opposed to something simply marketed as a low-flow faucet.

Failing to go the extra mile can put builders at risk of ­becoming greenwashers themselves. “Currently, it’s easier to greenwash a building than a product or material,” says Carl Seville, owner of Seville Consulting in Decatur, Ga. Even if a builder is diligent in his specifications, he says, the value of the greenest materials can be wasted on a poorly built and ill-­performing house. “You can’t put lipstick on a pig.”

Just as builders, architects, and specifiers are starting to hold manufacturers accountable for their environmental impact claims, home buyers are becoming more eco-savvy, says Wyatt, perhaps to the point of questioning the value of using environmentally sustainable products and materials on a 4,000-square-foot house that required more material to build and uses more energy—even if ­efficiently so—than a smaller home. “It’s a slow process, but eventually they’ll put the products in a larger context.”

Scott's Contracting, Green Builder- St Louis "Renewable Energy" Missouri