On Fri, Oct 29, 2010 at 8:43 AM, Alliance to Save Energy <info@ase.org> wrote:
October 29, 2010News You Can Use is a daily compilation of news clips related to energy efficiency. If you would like to submit an article for consideration, particularly one of interest to the Alliance Associates, please forward it to Heather Rubacky at the Alliance to Save Energy.Subscribe to News You Can Use though our subscription page . Be sure to check the "News You Can Use" checkbox! If you have problems receiving this newsletter or with the subscription page, please contact us.
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1. Home Smart Energy News Alliance formed to create a smart grid standard Alliance formed to create a smart grid standard Oct 29, 2010 Smart Meters A group of smart grid industry players which include big names such as Pacific Gas & Electric Company, Southern California Edison, Honeywell, and the Lawrence Berkeley National Laboratory (Berkeley Lab) recently announced the formation of the OpenADR Alliance, a non-profit organization created to advocate the development, adoption and compliance of a smart grid standard called Open Automated Demand Response (OpenADR). The alliance's main goal is to reduce costs, improve reliability and accelerate the speed of Automated Demand Response (Auto-DR) and smart grid implementations in the US.
2. GSA raising energy-efficiency standard for new construction Oct 29, 2010 Federal Times The General Services Administration is raising the bar to increase the energy efficiency of all of its new federal building construction projects.
POLICY
3. 'Slasher' in line to lead House panel Oct 29, 2010 Politico ...energy legislation, leading opposition to the cap-and-trade bill via his ranking member slot on the Energy & Environment Subcommittee. The Democrats' bill was "something that'd help cripple economic recovery in the Midwest and help send more jobs overseas than you could shake a stick at," he said. "We ought to be encouraging our electricity producers, rather then penalizing the users of electricity," he added. Sources favoring Upton say Republicans...
4. Tapping the Energy Efficiency Market within Federal Building Lease Renewals Oct 27, 2010 Clean Technica This article is the second in a series about the potential for private renewable energy companies to access the large (and growing) market for clean energy within the federal government by John K. Norris of MyEnergySolution.
AROUND THE GLOBE
5. Australia Landlords Switch Off Lights as They Face Energy Efficiency Rules Oct 29, 2010 Bloomberg Australia's biggest office landlords are switching off lights and installing more efficient air conditioners ahead of rules demanding reporting of energy use in the nation with the developed world's second-highest greenhouse gas emissions per person.
6. Automaker exodus looming Oct 28, 2010 The Yomiuri Shimbun ...cars from Japan to overseas, a move that may occur sooner than originally scheduled. Even for models that will continue to be manufactured in Japan, cost-cutting concerns will see Toyota procure more parts from overseas than currently. Toyota has set itself the target of maintaining domestic production at 3.2 million vehicles per year, including hybrid cars. Nonetheless, one Toyota-affiliated autoparts maker said, "We're bracing for the possibility that domestic production will...
7. Solar power could crash Germany's grid Oct 27, 2010 New Scientist HARNESSING the sun's energy could save the planet from climate change, an approach that Germany has readily adopted. However, the German Solar Industry Federation rejects DENA's concerns, claiming that extra solar energy takes the pressure off high-voltage power lines because it tends to be generated close to where it is used.
REGIONAL
8. California air board to unveil cap-and-trade program for CO2 Oct 29, 2010 The Sacramento Bee ...energy efficiency retrofits will cost millions of dollars and will take a lot of time to install, he said. "It's important to have the time to ramp up -- because it affects such a wide swath of California's economy," Hanemann said. Even with the phased-in approach, oil refiners predict they will take a big financial hit. San Antonio-based Valero Energy Corp. (NYSE:VLO) is the state's eighth-largest polluter, emitting about 3.8 million metric tons of carbon in 2008....
9. State favors keeping solar rebates Oct 29, 2010 The Pueblo Chieftain Patrick Malone Oct. 29, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- DENVER -- The Governor's Energy Office and state Rep.
10. Global warming issue may determine key races in Virginia Oct 27, 2010 Los Angeles Times ...to limit carbon emissions and trade pollution rights. Most openly question the science of global warming or denounce it as a hoax. In some races, especially in coal-producing, farm and factory states in the mid-Atlantic and Midwest, partisan rivals appear united in their condemnation of major climate change legislation. At an Oct. 18 debate in Morgantown, W.Va., the Democratic nominee for Senate, Gov. Joe Manchin III, said
THE BUSINESS OF ENERGY
11. As Solar Power Projects Take Off, Hurdles Loom Oct 29, 2010 New York Times Bullard, gas-fueled plants can produce electricity for about 10 cents a kilowatt-hour.
TRANSPORTATION
12. CTA to buy 2 all-electric buses Oct 28, 2010 Chicago Tribune ...it will save 800,000 gallons of diesel fuel and reduce carbon dioxide emissions by 80,000 tons annually. Both grants supporting environmentally sensitive transportation projects were awarded through the U.S. Department of Transportation's Transportation Investments for Greenhouse Gas and Energy Reduction and Clean Fuels programs. -- Jon Hilkevitch Newstex ID: KRTB-0197-50183641 ...
13. Kia unveils Soul for Brazil that runs on 100% ethanol Oct 28, 2010 USA Today Brazil, although it generally doesn't doesn't allow you to drive a car as far: Kia says the Soul Flex will boast a 44% improvement in fuel efficiency compared with the existing gasoline model and superior power. Changes made to accommodate the more "abrasive nature" of ethanol fuel include reinforcing the fuel pump, pillar cap and fuel line, and fitting a gasoline tank assistance system in order to aid engine ignition at low temperatures. Kia will begin exporting Soul Flex to Brazil this month.
EDITORIAL
14. OPINION Oct 29, 2010 The Seattle Times A competitive process finds the most energy-efficient projects and building upgrades. Funding the grants requires modestly expanding the state's debt limit, which needs voter approval. I think that is doable and worth doing. The underlying process of R-52 -- energy performance contracting -- is not new.
1. Home Smart Energy News Alliance formed to create a smart grid standard Alliance formed to create a smart grid standard Oct 29, 2010 Smart Meters A group of smart grid industry players which include big names such as Pacific Gas & Electric Company, Southern California Edison, Honeywell, and the Lawrence Berkeley National Laboratory (Berkeley Lab) recently announced the formation of the OpenADR Alliance, a non-profit organization created to advocate the development, adoption and compliance of a smart grid standard called Open Automated Demand Response (OpenADR). The alliance's main goal is to reduce costs, improve reliability and accelerate the speed of Automated Demand Response (Auto-DR) and smart grid implementations in the US.
Through an automated message delivery sent by utilities to consumers, Auto-DR suggests households and business establishments to reduce usage of electricity during peak demand hours, or in reaction to market price changes. What OpenADR does is that it standardizes a message format for the Auto-DR to ensure that dynamic price and reliability signals are sent in a uniform and interoperable data model among utilities, Independent System Operators (ISO) and customers' energy management and control systems.
In specific, utilities, vendors, and consumers will benefit from the adoption of OpenADR as it brings cost reduction (mostly production, service, and maintenance costs due to the standardization), compliance assurance (through a uniform set of standards to which vendor technologies need to adhere to), and improved reliability (as a result of standardizing a message format for Auto-DR).
The OpenADR Alliance's role will be to initiate collaboration between industry stakeholders in order to ensure the rapid development of OpenADR. National standards work will be based from OpenADR specifications published by Lawrence Berkeley National Laboratory and will be funded by the California Energy Commission's Public Interest Energy Research (PIER) program. Also, the National Institute of Standards and Technology's (NIST) is further developing OpenADR, along with other organizations such as the Organization for the Advancement of Structured Information Standards (OASIS), the Utilities Communications Architecture International User's Group (UCAIug), and the North American Energy Standards Board (NAESB).
According to Mary Ann Piette, research director for PIER Demand Response Research Center (DRRC) at Berkeley Lab, "Grounded in the standards activities initiated by Berkeley Lab in 2002, the OpenADR Alliance will play a central role in accelerating the adoption of Auto-DR and rapidly advancing our power grid into the 21st century"."Only through interoperable technology standards can we implement Smart Grid solutions with the reliability, cost-effectiveness and guaranteed compliance necessary for broad market acceptance. The OpenADR Alliance will implement processes to quickly bring this commercially proven standard to market", she added.
Meanwhile, Honeywell's vice president of energy solutions, Jeremy Eaton said,"There's no question the widespread adoption of an OpenADR standard will lower the development, equipment and service costs for Smart Grid vendors and the utilities investing in these solutions". "And it will ultimately benefit homeowners and businesses because open standards spur competition and innovation, and will lead to more effective Smart Grid technologies, and greater energy and cost savings."
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2. GSA raising energy-efficiency standard for new construction Oct 29, 2010 Federal Times The General Services Administration is raising the bar to increase the energy efficiency of all of its new federal building construction projects.
Projects must achieve LEED Gold certification, the second-highest rating from the U.S. Green Building Council's Leadership in Energy and Environmental Design program.
Previously, federal building projects needed to be certified at the LEED Silver level, the third-highest rating, or higher.
The U.S. Green Building Council's LEED system awards points for incorporating sustainable practices into building designs. The more sustainable features of a building, the more points it receives. A LEED Gold rating building would need to incorporate more features such as water-efficient bathrooms, green roofs and recycled construction material.
The highest rating is LEED Platinum.
Robert Peck, commissioner of GSA's Public Buildings Service, said that better-performing government buildings can have a substantial environmental impact.
"This new requirement is just one of the many ways we're greening the federal real estate inventory to help deliver on President Obama's commitment to increase sustainability and energy efficiency across government," Peck said in a news release.
For projects funded before fiscal 2010, LEED Gold standards will be incorporated wherever possible.
New leased GSA spaces still require only LEED Silver certification.
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3. 'Slasher' in line to lead House panel Oct 29, 2010 Politico Darren Samuelsohn
Fred Upton is no longer known as the "Young Slasher," but the Michigan Republican is preparing to bring a sharp edge to the House Energy and Commerce Committee.
Upton earned the nickname early in his career for repeatedly offering floor amendments imposing across the board cuts on spending bills. Now, the 12-term congressman hopes to be chairman of the panel that will be a major focus of GOP efforts to fight President Barack Obama on everything from health care to energy policy to business regulation.
Already, he's planning an attempt to repeal portions of the Democrats' health care reform law – his way.
"I know there's going to be a vote to repeal the whole thing if we take over, but in all likelihood we're not going to have the votes to override," Upton told POLITICO. "I look at this a little bit like a Jenga game. It's a good game with my kids. We're going to look at the pieces."
Upton has a conservative track record going after fraud, abuse and spending mismanagement, lessons he learned as a key staffer in President Ronald Reagan's White House Office of Management and Budget.
"If you work at OMB, you know where everything is buried," said a long-time Upton friend tied to the domestic auto industry. "Then, you put 25 years of experience in the House in understanding every program that's out there. And there's one person who can inject some common sense into all that's coming through the committee. He's the guy."
But Upton has another side to him. He supported more federal spending on embryonic stem cell research. And while he backs oil drilling in Alaska's Arctic National Wildlife Refuge, he's managed to cast enough votes on water pollution and logging to put him among the top dozen or so most active pro-environment Republicans, according to his lifetime League of Conservation Voters scorecard.
"Many in Republican leadership want to be rid of Joe Barton because of his honesty of apologizing to BP," said Daniel Weiss, a senior fellow at the Center for American Progress Action Fund, referring to the controversial former Energy and Commerce chairman. "But down the road, Fred Upton could create as many headaches for them."
Upton is trying hard to play up his conservative credentials as part of his bid to lead the powerful committee. He blasted House Speaker Nancy Pelosi and Rep. Henry Waxman, the man he'd like to replace as committee chairman, for staying quiet after NPR last week fired commentator Juan Williams.
"Contrary to much popular opinion, he's a very conservative guy and I think will work well not only with us who are in the Congress already who are strong conservatives, but the large class we're going to bring in who are going to have very conservative credentials also," said Rep. Virginia Foxx (R-N.C), who said Upton called her to get her support in a possible showdown with Barton and other Republicans.
Upton isn't guaranteed the gavel. Barton, who served as chairman for two years and then ranking member for four, would need a waiver from GOP leaders to keep control for another term. And Barton isn't going quietly , telling CNBC on Thursday he's been talking with Minority Leader John Boehner (R-Ohio) and is "confident" he'll win the spot.
Illinois Rep. John Shimkus and Florida Rep. Cliff Stearns are other possibilities, although observers peg them for subcommittee chairmanships instead.
Upton said he's not campaigning, but it's clear he has reached out to fellow Republicans, giving $144,000 through his political action committee to incumbents and potential new freshmen, according to OpenSecrets.org. He's been on the road trying to help candidates in the Midwest and Rust Belt, with recent stops for Randy Hultgren, the Illinois state senator gunning to win back former House Speaker Dennis Hastert's old seat, and Mike Kelly, who is challenging Pennsylvania freshman Democrat Kathy Dahlkemper.
Several sources say Upton's history on Energy and Commerce – he's been the top GOP member on all but two subcommittees – and demeanor – he insists people call him Fred – could put him over the top.
"He's just really devoid of either the ego or the rock star stuff that some members get," said a former House GOP energy staffer. "If it is him, it'll be a well run committee. He's been around enough to see what works and what doesn't."
Perhaps most important, Upton offers the GOP a clean break from its past, namely the headaches associated with Barton, who this summer publicly apologized to BP executives for how the Obama administration was treating the company during the Gulf of Mexico oil spill.
Upton has pledged a steady dose of oversight as Obama's team implements the health care law, as well as detailed scrutiny of the Environmental Protection Agency's power to regulate for greenhouse gases.
Health and Human Services Secretary Kathleen Sebelius and EPA Administrator Lisa Jackson can expect to have their own parking spaces reserved outside the Rayburn Office Building.
"We'll paint the curb yellow for them," he said.
When it comes to Energy and Commerce's turf, Upton's experience level is perhaps weakest when it comes to health care, one of two subcommittees (trade and consumer protection is the other) that he's not had a leadership spot on. But it's hard to find someone who is holding that against him.
"Somewhat ironically, if he has an Achilles heel and I don't think he does, with respect to taking the chairmanship, it's with a health-related issue," a Republican lobbyist told POLITICO.
On technology, Upton led Republicans on the Communications, Technology and the Internet subcommittee from 2001 to 2006, securing new fines for indecency on TV and leading the digital television transition. He's established himself as a vocal opponent of net neutrality – the principle that Internet providers should be required to treat all Web traffic equally. Upton said he's likely to restrain the reach of the Federal Communications Commission, especially to ensure it does not assume a more forward role in regulating broadband or the Internet.
"As I talk to all the different players, Verizon, AT&T, the cable folks, they're all willing to spend big bucks in the future to faster deploy advanced technology and government needs to stay out of the way," Upton said. "That will continue to be my role."
Upton has also been at the center of the battle over energy legislation, leading opposition to the cap-and-trade bill via his ranking member slot on the Energy & Environment Subcommittee. The Democrats' bill was "something that'd help cripple economic recovery in the Midwest and help send more jobs overseas than you could shake a stick at," he said.
"We ought to be encouraging our electricity producers, rather then penalizing the users of electricity," he added.
Sources favoring Upton say Republicans would also be getting a useful economic perspective as it tries to sell the public on its policies. His home state of Michigan is second only to Nevada when it comes to unemployment, and his district in the state's southwestern corner has lost its share of manufacturing plants, including paper mills, auto part suppliers, furniture makers and the Whirlpool appliance company – except its corporate HQ – that was founded by his grandfather.
Tony Romm and Jennifer Haberkorn contributed to this report.
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4. Tapping the Energy Efficiency Market within Federal Building Lease Renewals Oct 27, 2010 Clean Technica The U.S. Market for Energy Efficiency
As I wrote about earlier, the market for solar power and energy efficiency within the federal government is huge and largely untapped. Pursuant to Presidential Executive Order 13423, federal agencies are required to improve energy efficiency and reduce greenhouse gas emissions of the agency, through a substantial reduction in energy usage (up to 30%). Following up on this initial directive, President Obama signed Presidential Executive Order 13514 which stated beginning in 2020 and thereafter, all new federal buildings that enter the planning process will be designed to achieve zero net energy by 2030 and urges federal agencies to manage existing building systems to reduce the consumption of energy, water, and materials, and identify alternatives to renovation that lower a buildings operational cost. Finally, this order requires that all federal agencies establish and implement energy efficient practices for at least 15% of each agency's building inventory by fiscal year 2015.
In addition to these executive moves, the U.S. General Services Administration (GSA), the federal agency responsible for the management and procurement of most federal office buildings, has pushed itself to the forefront of the green building revolution. GSA has a fiscal year 2011 capital investment program of $1.4 billion to support green building, including $676 million for new construction and $703 million for renovation and alteration.
The GSA Leasing Process
In a typical build-to-suit for the federal government, private developers submit bids to GSA in response to another federal agencies' request for office space. The winning bidder then signs a 10-20 year lease with the federal government for that office space. Critically, the federal government renews existing leases on procured office space approximately 90% of the time, providing landlords a reliable source of cash flow over an extended period of time.
Importantly, a large portion of the federal government's office space was built and leased to the government well prior to the energy efficiency requirements of Presidential Executive Orders 13423 and 13514 with a large number of existing leases expiring over the next few years. In fiscal year 2011 (commencing on October 1, 2010), 128 leases expire for 6.1 million square feet; in fiscal year 2012, 107 leases expire for 6.4 million square feet; and in fiscal year 2013, 123 leases expire for 7.2 million square feet.
As stated above, the new government procurements will require energy efficient measures be incorporated into the design of the building requirement from the beginning. But what about the renewal of existing leases? As stated above, President Obama has required that all federal agencies have at least 15% of its inventory incorporate energy efficiency guidelines by fiscal year 2015. How will this impact lease renewals and will the federal government continue to renew existing leases with private landlords if those buildings do not comply with Presidential Executive Orders 13423 and 13514?
Energy Efficient Retrofits and GSA Lease Renewal
GSA has not put out definitive guidance on the matter but within the industry, it looks as if GSA might be using the leverage of lease renewal to force private landlords into energy efficient retrofits to meet federal requirements.
To start, GSA is already beginning to measure its inventory in advance of the 2015 deadline. By December 2010, GSA is scheduled to assess at least 5% of its owned buildings greater than 5,000 gross square feet and at least 5% of its leases greater than 5,000 gross square feet for compliance with federal energy efficiency requirements for the purpose of tracking leased assets that already meet such requirements. GSA has also required additional information on green building and energy efficient measures for all applications for improvements and lease renewals for federal buildings. Finally, GSA has created "Build Green Coordinators" in each of its 11 building regions for the purpose of providing private developers with technical assistance concerning green lease solicitation build-out requirements and LEED certifications.
Undoubtedly, this will have an impact on whether GSA will renew an existing lease with a private landlord. If an existing office building can be retrofitted to be energy efficient, this would be a much simpler and less costly way for GSA and other federal agencies to meet the energy efficient inventory standards. GSA could always elect to re-procure a project but that is costly and more importantly, time consuming. It has been my professional experience that a lease renewal in an existing leased building, even with major modifications such as requiring the building to be LEED certified and incorporating renewable energy systems, can be done by GSA, the agency occupant and the landlord, in just a few months. Whereas, a re-procuring of new space to meet the "sustainability" requirements will take GSA and the agency, several years to develop the new specifications, bid the new specifications, award the lease contract and then actually have the project built and occupied.
Not only does the existing landlord benefit by retaining a AAA lessee at renewal, even with large capital investments in the "green building" mandates, many of the sustainable improvements reduce the operating expenses the landlord is responsible for paying under the gross lease contract.
How to Find Landlords of Expiring GSA Leases
Finding landlords with expiring leases with the U.S. government is not easy but can be found with publicly available resources. First, download GSA's list of lease building inventory. You will notice that every lease in all 11 of GSA's regions are listed including information on rentable square feet, annual rent amount, landlord name and lease expiration date. Filter out all of those leases that are not for buildings of 5,000 square feet or more and have lease expirations greater than 5 years. The landlord name should be attached which you can cross reference with the U.S. Small Business Administration to retrieve publicly available contact information which can be a starting point for your lead generation process. Move the middle of the page and enter the landlord's name under the "Searching for a Specific Profile" to retrieve the available information.
Note of caution: sometimes the name of the landlord as listed on the lease inventory is not complete, so when it's entered into search box, the landlord's contact information can not be found. The landlord and other lease information on the GSA lease inventory is entered by GSA personnel.
Finally, as an experienced developer of U.S. government buildings, I would recommend that solar and energy efficiency professionals be prepared to discuss the following with the landlord:
Is the landlord is aware of the federal requirements for energy efficiency and how GSA is going to enact them on the property owners they lease from? Solar and energy professional must be able to discuss the details of the GSA enforcement program.
Has GSA has contacted the landlord regarding a renewal or extension of the lease for the their premises? If so, has GSA discussed any new green technology improvements specifically for meeting any new "sustainability" requirements or bringing the building to a certain LEED level certification?
Be prepared to discuss how solar power and energy efficient improvements can help the landlord comply with the "sustainability" requirements and how the cost of a solar power system or other energy efficient improvements can be incorporated into the tenant improvement package (such costs may vey well be paid for by GSA as a reimbursable tenant improvement expense but there isn't a clear cut policy on this issue at the moment).
Be prepared to discuss a range of financing options and how they might impact the owner's on-going operating expenses.
When requesting a site visit or face-to-face meeting, be familiar with the layout of the landlord's property and be prepared to make recommendations at that meeting.
One final note of caution, some of the landlords are going to be experienced developers and construction guys and may know a lot about the federal "sustainability" requirements — even solar systems. However, there a lot of mom/pop owners out there, particularly with the smaller buildings — between 5000 to 20,000 square feet, who purchased their property via a 1031 exchange that are not knowledgeable about these matters nor can they afford to lose the federal government as a tenant.
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5. Australia Landlords Switch Off Lights as They Face Energy Efficiency Rules Oct 29, 2010 Bloomberg Australia's biggest office landlords are switching off lights and installing more efficient air conditioners ahead of rules demanding reporting of energy use in the nation with the developed world's second-highest greenhouse gas emissions per person.
The largest property managers are ahead of legislation which comes into effect Nov. 1 requiring owners to reveal office buildings' energy efficiency to tenants and buyers, according to Simon Wild, Sydney-based principal at sustainable design consultants Cundall. Cundall worked with the U.K. Green Building Council on a study of the nation's sustainability rating tool, the results of which were released in August.
"The industry, particularly the tier one landlords, have been disclosing for a long time," Wild said. "Australian companies are very much market-driven about how they can attract the big players in town to reside within their buildings."
GPT Group, Australia's second-biggest diversified property trust by market value, cut its buildings' greenhouse gas emissions by 28 percent between 2005 and 2009 by installing more efficient air conditioners and recycling more waste. Morgan Stanley-backed Investa Property Group's 21-story Ark building in North Sydney can generate electricity, recycle rainwater and recharge electric cars.
Australia boasts some of the most environmentally friendly real-estate groups in the world, a survey of global companies by Netherlands-based Maastricht University found this year. Sydney- based GPT heads the Dow Jones Sustainability Index's 21-company real-estate leader list, a third of whose members are Australian, more than any other country.
Energy Efficiency
Australia had the second-highest carbon dioxide emissions per capita among developed nations, according to 2008 figures from the International Energy Agency, the latest data available from the group. Only Luxembourg's emissions were higher.
The legislation requires owners of office buildings leasing or selling more than 2,000 square meters (21,528 square feet) to reveal their day-to-day energy efficiency on the five-star National Australian Built Environment Rating System. Companies pay A$770 ($752) for a rating to New South Wales state's Department of Environment, Climate Change and Water, which administers the program nationally, and about A$3,000 for an assessor to review documents including the previous year's bills, said Yma ten Hoedt, the department's principal program manager.
The rules will affect 10 percent of office buildings nationally every year, DECCW estimates. Companies must also disclose tenanted areas' lighting systems' performance and provide a statement on buildings' efficiency from Nov. 1, 2011.
Smaller owners, who may not have ratings or necessary documents, will be most affected, said Rebecca Pearce, Sydney- based head of sustainability at CB Richard Ellis Group Inc., the world's largest commercial property broker.
Tenants
Government agencies, which occupy about a third of offices nationally, will require buildings they lease or own to have a minimum 4.5 star energy rating by next year. The national average is 2.5 stars, with the biggest landlords targeting 4.5 over the next two to four years.
"To have a building vacant because it's not efficient or rated so tenants don't want to go into it, we don't even want to go there," said Rowan Griffin, head of sustainability at Colonial First State, the asset management arm of Commonwealth Bank of Australia. Colonial manages 34 office properties, valued at about A$4 billion.
Almost 300 tenants occupying about 1.5 million square meters, have committed to the CitySwitch Green Office program, including accounting firm PricewaterhouseCoopers LLP, property broker DTZ, and Commonwealth Bank of Australia, the country's biggest bank, pledging to achieve at least a four-star tenancy rating.
Improving Performance
PricewaterhouseCoopers has spent A$800,000 replacing light switches in its Sydney office with sensors, according to the CitySwitch website. DTZ is saving A$3,500 a year on the energy bill at its Sydney headquarters by introducing steps such as installing shared printers and setting computing equipment to turn off automatically, the website said.
A one-star efficiency gain means A$2 to A$4 in annual savings per square meter, a Citi Investment Research study in January found. For a 10,000-square-meter office building, that equates to savings of as much as A$40,000 a year.
A University of California, Berkeley, study found buildings rated under a U.S. plan similar to the system used in the incoming Australian rules commanded rents of about 3.5 percent more than comparable properties, and sale prices rose as much as 16 percent. A similar Australian study is expected to be completed in the second quarter of 2011.
Building Management
Companies reach up to four stars by better timing lights and equipment use, installing more efficient systems during upgrades, and better training staff, said Craig Roussac, general manager for sustainability, safety and environment at Investa. The company improved one of its building's performance by 1.5 stars more than expected by adjusting the way it was run by its manager, he said.
"You can have an efficient car, but you can be driving it with the handbrake on and completely stuff things up," Roussac said. "Conversely, you can have someone who's passionate and skilled, and see an increase in returns."
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6. Automaker exodus looming Oct 28, 2010 The Yomiuri Shimbun Mamoru Kurihara and Nobuyuki Kojima
Oct. 25, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Toyota Motor Corp.'s (NYSE:TM) decision to revise its assumed exchange rate for the latter half of fiscal 2010 to 80 yen per U.S. dollar is based upon its expectation that the yen will continue to trade extremely strongly against the dollar for the time being.
Other automakers and export-oriented manufacturers are likely to follow Toyota and revise their own assumed exchange rates.
If their attempts to offset the yen's strength go as far as transferring production bases overseas, however, there could be undesirable effects on employment conditions in Japan.
Toyota Motor Corp. President Akio Toyoda said at a press conference on Oct. 18 that the firm was struggling to keep up with rival automakers in developing countries that have lower production costs.
"Theoretically speaking, we're not competitive at all," he said.
He explained to reporters that even Toyota, the nation's leading manufacturer, has found it difficult to maintain domestic production due to the rapid rise of the yen.
Of a total of 3.2 million Toyota automobiles either already manufactured or scheduled to be manufactured in Japan during the current fiscal year through March 31, 1.8 million units--more than half--are for export. The yen's steep appreciation has shrunk the profits from those exports.
Furthermore, Toyota's business recovery could be hampered by 150 billion yen in additional losses in consolidated accounts for the second half of the year that will result from the revision of the assumed rate.
Toyota, which since its foundation has made a high priority of job protection, is confronting a dilemma. It may be forced to slash its domestic workforce if it moves domestic production operations overseas.
"I want to stick to making things in Japan...but only passion is making it possible now," Toyoda said.
Toyota plans to stop exporting its mainstay Corolla passenger cars from Japan from around 2013 and begin manufacturing the vehicles overseas.
Toyota also plans to transfer production of Camry and Vitz passenger cars from Japan to overseas, a move that may occur sooner than originally scheduled.
Even for models that will continue to be manufactured in Japan, cost-cutting concerns will see Toyota procure more parts from overseas than currently.
Toyota has set itself the target of maintaining domestic production at 3.2 million vehicles per year, including hybrid cars. Nonetheless, one Toyota-affiliated autoparts maker said, "We're bracing for the possibility that domestic production will fall below 3 million units."
Other Japanese automakers may follow suit and transfer domestic production overseas.
"It's possible that we'll raise the overseas production ratio up another notch if the yen's strength persists," Honda Motor Co. (NYSE:HMC) President Takanobu Ito said.
Suzuki Motor Corp. (OOTC:SZKMY) President Osamu Suzuki said the yen has already appreciated beyond a manageable level.
Further transfer of production to other countries, and procurement of more autoparts from abroad, could cost jobs at many subcontractors in Japan.
An increase in the trend would also impact the business performance of steel and plastic makers.
In the manufacturing industry, a rising chorus of voices is urging the government to urgently address the strong yen and take steps--such as lowering the effective corporate tax rate--to encourage manufacturers to continue production in Japan.
Newstex ID: KRTB-0230-50177265
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7. Solar power could crash Germany's grid Oct 27, 2010 New Scientist HARNESSING the sun's energy could save the planet from climate change, an approach that Germany has readily adopted. Unfortunately, this enthusiasm for solar panels could overload the country's ageing electricity grid.
Solar power is intermittent and can arrive in huge surges when the sun comes out. These most often happen near midday rather than when demand for power is high, such as in the evenings. A small surge can be accommodated by switching off conventional power station generators, to keep the overall supply to the grid the same. But if the solar power input is too large it will exceed demand even with all the generators switched off. Stephan Köhler, head of Germany's energy agency, DENA, warned in an interview with the Berliner Zeitung on 17 October that at current rates of installation, solar capacity will soon reach those levels, and could trigger blackouts.
Subsidies have encouraged German citizens and businesses to install solar panels and sell surplus electricity to the grid at a premium. Uptake has been so rapid that solar capacity could reach 30 gigawatts, equal to the country's weekend power consumption, by the end of next year. "We need to cap installation of new panels," a spokesperson for DENA told New Scientist.
However, the German Solar Industry Federation rejects DENA's concerns, claiming that extra solar energy takes the pressure off high-voltage power lines because it tends to be generated close to where it is used. The federation adds that the grid only needs to be strengthened in some rural areas where solar supply can exceed demand.
Germany's problems highlight the perils of moving to renewables without adequate preparation. "You lose flexibility on the supply side, so you need to gain some on the demand side," says Tim Green of Imperial College London, perhaps by encouraging people to charge their electric cars when the sun shines.
The best long-term solution is to install region-wide grids, says Tim Nuthall of the European Climate Foundation in Brussels, Belgium. "In Europe, you need a grid that balances the sun in the south with the wind in the north."
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8. California air board to unveil cap-and-trade program for CO2 Oct 29, 2010 The Sacramento Bee Rick Daysog
Oct. 29, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- With voters headed to the polls Tuesday to decide the fate of California's climate change law, regulators are pressing ahead with a key part of the statute that puts limits on how much the state's companies can pollute.
The California Air Resources Board today will unveil new rules and regulations for a cap-and-trade program. It will set a ceiling on the amount of carbon that refiners, power companies and major manufacturers can emit each year.
While details of the regulations aren't yet available, ARB officials have already indicated that they plan to take a pro-business approach. They will initially give companies pollution allowances for free, rather than selling them at auction.
"Because of the state of the economy, to go to a large auction quickly just isn't realistic," ARB Chairwoman Mary Nichols said in a legislative hearing earlier this month.
The cap-and-trade program essentially places a cap on the amount of carbon emitted by the state's 500 largest polluters. Companies that pollute less then their limit -- to be set by the state -- can sell their unused allowances to companies that pollute heavily, creating market incentives for the companies to reduce emissions voluntarily.
The cap-and-trade program is set to begin operating in January 2012. But it could be put on hold if Proposition 23 passes Tuesday.
The ballot measure would suspend the state's global warming law, AB 32, until the statewide unemployment rate drops to 5.5 percent for four consecutive quarters. Proposition 23 is trailing with voters, according to polls released in the past two weeks.
While the agency won't charge for allowances in the beginning, Nichols said it will likely put prices on them at some point in the future. Many economists expect the carbon allowances to eventually trade in the $20-per-metric-ton range.
Michael Hanemann, an economist and public policy professor at the University of California, Berkeley, said the go-slow approach provides flexibility for companies to adjust to the new regulations.
A big company can't make the necessary fixes overnight. Switching to renewable fuel sources or installing energy efficiency retrofits will cost millions of dollars and will take a lot of time to install, he said.
"It's important to have the time to ramp up -- because it affects such a wide swath of California's economy," Hanemann said.
Even with the phased-in approach, oil refiners predict they will take a big financial hit.
San Antonio-based Valero Energy Corp. (NYSE:VLO) is the state's eighth-largest polluter, emitting about 3.8 million metric tons of carbon in 2008.
It has spent more than $5 million to fund the Yes on 23 campaign.
In a conference call with analysts Tuesday, the company said California's cap-and-trade program could cost the firm about $75 million a year.
"It will all be passed through to the consumer, as the companies aren't going to be able to absorb this," said Valero CEO Bill Klesse.
"Or they are going to go out of business. Or it makes the playing field unlevel with imports."
Thomas Tanton, an economist hired by the Yes on 23 committee, believes that the cap-and-trade system is going to hurt the most productive sectors of California's economy.
The law not only targets refiners and energy companies but also places pollution limits on cement makers, dairies and other industries that produce large amounts of carbon dioxide.
Tanton opined that the program won't make a big dent in the global warming problem. The only other cap-and-trade system in the country is one for power companies in New England, New York and New Jersey. Even combined, the two systems won't reduce enough carbon emissions to slow global warming, Tanton predicted.
"Most of the other states are saying they're not going to do this because it costs so much and the economy is suffering so much," Tanton said.
"I don't know if any of them can ever afford it, not now, not ever."
Daniel Esty, director of Yale University's Center for Business and Environment and a campaign adviser to President Barack Obama on energy and environmental issues, believes that today's announcement will be closely followed not only by energy companies and environmentalists but also by Wall Street and other mainstream businesses.
Given the recent failure by Congress to pass national cap-and-trade legislation, the California plan will likely serve as a model for how other states tackle the problem of global warming.
"There will be widespread interest in the package that emerges because it's such an important pilot project in the nation's attempt to find an appropriate climate change policy," Esty said. "It will be closely watched."
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Call The Bee's Rick Daysog, (916) 321-1207.
Newstex ID: KRTB-0178-50193403
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9. State favors keeping solar rebates Oct 29, 2010 The Pueblo Chieftain Patrick Malone
Oct. 29, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- DENVER -- The Governor's Energy Office and state Rep. Sal Pace, D-Pueblo, plan to challenge Black Hills Energy's intention to suspend its solar rebate offer as a threat to jobs in the budding clean-energy sector.
Chris Burke, vice president of operations for Black Hills-Colorado Electric, said the power company will work with the governor's office and the Public Utilities Commission to seek solutions that could restore the rebate, but in its present construction the program is too costly to the utility company and its customers.
Burke said Black Hills intends to include suspension of the solar rebate in its plan for compliance with the renewable energy standard adopted this year by the Legislature.
Black Hills' submission of the plan to the Public Utility Commission, originally scheduled for today, has been delayed until Monday, according to Burke.
Utility customers and solar-installation companies would be without the $2 per watt rebate that until now they have enjoyed for converting to the renewable energy source. But that figure, set by law, has multiplied into a $10 million deficit on the rebate program for Black Hills, according to Burke. He said that figure is expected to be $12 million by the year's end, because the 2 percent fee customers pay on their bill isn't enough to keep pace with the expense of the rebates.
One-fourth of the fees coming in under the rebate program and going directly to the deficit it has amassed, Burke said.
Even though Black Hills stopped approving the rebates earlier this month, many that the utility already has approved still are being developed. Consequently, customers will not see the 2 percent fee they pay into the rebate program disappear immediately.
"In the short term, the customers would not see any change," Burke said.
Primary reasons for the power company's deficit on the rebate are its fixed rate and the popularity of the program, according to Burke. He said an adjustment to fixed rate could accelerate restoration of the rebate program.
Black Hills' service area in Southern Colorado, including Pueblo, Canon City and Rocky Ford, has the sixth leading solar penetration rate nationwide in terms of kilowatt hours, Burke said. That popularity translates into a deficit because of the fixed rebate rate, he said.
That same popularity is what spurred solar development companies to crop up in Southern Colorado.
And that's why Pace objects to suspending the rebate.
"This decision by BHE essentially moves all of these new jobs to every part of the state where rebates are still offered except for Pueblo," Pace wrote in a letter to the PUC, urging it to block discontinuance of the rebate."
He complained that Black Hills failed to take advantage of tools the Legislature gave to utilities to manage the program, which Xcel Energy (OOTC:XCLEP) (NYSE:XEL) , the state's other investor owned utility, has relied on and flourished within the rebate's parameters.
"Black Hills has mismanaged the money," Pace said. "They're running the rebate program into the ground, and the consequences are going to be felt in the Pueblo area where we'll lose jobs in a viable, emerging industry."
"We believe the (rebate) program presents an inherent conflict between the interests of our customers and the solar-development industry," Burke said. "We have been good stewards of these funds."
Jeff Lyng, renewable energy policy manager for the Governor's Energy Office, said representatives of his office hope to meet with Black Hills' regulatory team soon after the utility submits its plan to the PUC.
Lyng said the Governor's Energy Office will thoroughly review the plan before that meeting, but is inclined to ask Black Hills to conclude the rebate suspension as quickly as possible.
"We're in tune with the job-creation element," Lyng said, noting that 5,300 jobs in the solar energy field have grown alongside the rebate program.
He said ensuring long-term sustainability and predictability within the solar industry is the key to its success.
"The abrupt closure of a program makes it difficult for that to exist," Lyng said. "It's disruptive to business."
Newstex ID: KRTB-0154-50193114
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10. Global warming issue may determine key races in Virginia Oct 27, 2010 Los Angeles Times Bob Drogin
Oct. 27, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- REPORTING FROM CHARLOTTESVILLE, Va. -- Republican Robert Hurt had barely begun his opening statement in the congressional candidates' debate here last week when he accused his Democratic opponent of endorsing "job-killing cap and trade."
Hurt, a state senator, repeated the charge five times in the next hour, insisting each time that incumbent Rep. Tom Perriello's vote last year for a House energy and climate change bill would cost the state 50,000 jobs if it becomes law.
True or not -- Perriello didn't respond -- the charges have potency far beyond this fiercely contested swath of central and southern Virginia. In much of the nation, "cap and trade" has become a dirty phrase this election season, and the political storm over global warming's causes and solutions may determine several key races.
For the first time in nearly a decade, not one Republican running for the Senate supports proposals to limit carbon emissions and trade pollution rights. Most openly question the science of global warming or denounce it as a hoax.
In some races, especially in coal-producing, farm and factory states in the mid-Atlantic and Midwest, partisan rivals appear united in their condemnation of major climate change legislation.
At an Oct. 18 debate in Morgantown, W.Va., the Democratic nominee for Senate, Gov. Joe Manchin III, said President Obama was "dead wrong on cap and trade," and that it would ruin the economy. His Republican opponent, John Raese, called global warming a myth.
Even Sen. John McCain (R-Ariz.), who introduced the first Senate cap-and-trade bill in 2003 and vowed during his 2008 presidential run to make it a priority if elected, has joined the skeptics' ranks. "I think it's an inexact science," he told a voters forum in New Hampshire.
The issue is on the ballot only in California. Carly Fiorina, the GOP's Senate nominee, favors Proposition 23, which would suspend the nation's stiffest global warming restrictions. The incumbent, Democratic Sen. Barbara Boxer, wants to keep the law.
Polls suggest several House races may turn on whether the incumbent voted for the cap-and-trade bill that narrowly passed the chamber in June 2009. A similar measure stalled in the Senate amid intense bickering and appears doomed for the foreseeable future.
Heather Taylor-Miesle, director of Natural Resources Defense Council Action Fund, which supports climate change legislation, said her group's polling of 23 battleground districts indicated voters were more likely to back Democratic lawmakers who voted for the bill and stood by it.
"With so many races so close, it could have a significant effect on the outcome of the election," she said.
But Jon McHenry, a Republican pollster who has surveyed 31 House races around the country for the American Action Forum, a conservative-leaning policy institute, said his data indicated the opposite.
"I'd be surprised if there are any Republicans willing to say they support cap and trade now," he said. "Where a Democrat is in a competitive race, it's a clear advantage for the Republicans to campaign against it."
Advocates say a market-based system would help create "green" jobs, spur investment in alternative energy sources and reduce reliance on foreign oil. Opponents argue it would stunt the economy, raise energy costs and do little to cool the climate.
For now, the battle over climate change appears to have put Democrats on the defensive.
In North Dakota, an energy-producing state, Rep. Earl Pomeroy has been forced to explain why Democrats held a vote on the cap-and-trade bill at all, even as he has made clear his opposition to the legislation.
Speaking to a coal industry group this month, Pomeroy, a moderate Democrat first elected in 1992, said the vote was Nancy Pelosi's "biggest mistake as speaker -- and she's made a lot of them."
In coal-rich southwestern Virginia, Democratic Rep. Rick Boucher, who has served 28 years in the House, has been pounded for his vote on global warming. Boucher sits on the House Energy And Commerce Committee, where the bill originated.
"If you can point to one reason that Rich Boucher is in trouble, it's the cap-and-trade vote," said Isaac Wood, who studies House races at the University of Virginia Center for Politics. "People say he's demonizing coal and threatening their jobs."
Boucher said he helped negotiate provisions "to get the best deal for coal" he could in the legislation. The final bill included tens of millions of dollars for "clean coal" technology, funds that would have directly benefited the region.
"I've had to explain it," Boucher said in an interview. "It's not easy to explain. It does not translate very well into a 30-second commercial."
In the adjoining district, Perriello has tried to turn the argument to one about clean energy and jobs. Trailing in the polls all year, the freshman Democrat has trumpeted his efforts to funnel federal funds to renewable energy projects in the economically depressed region.
"This is a good issue for us," Perriello said in an interview outside a Charlottesville school.
"I think my message of energy independence and green jobs still beats the Republican message of burying your head in the sand and doing nothing, even in a very conservative district," he added. "People understand that this needs to happen."
But even some of his supporters are skeptical.
Roy VanDerHyde, who runs a dairy in Chatham, received about $1.2 million in state and federal grants this year to harness methane gas produced from cow manure. In another month, he said, his herd will provide enough electricity to power as much as 600 homes.
"I'm split on cap and trade," VanDerHyde said. "If it works, it could make my [project] a gold mine. But it will cost so much to run the dairy, it will be a wash. That's what I'm worried about."
bob.drogin@latimes.com
James Oliphant of the Washington bureau contributed to this report from Bismarck, N.D.
Newstex ID: KRTB-1430-50118225
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11. As Solar Power Projects Take Off, Hurdles Loom Oct 29, 2010 New York Times TODD WOODY
NIPTON, Calif. — The long-promised building boom for solar power plants in the desert Southwest is finally under way. Here in the Mojave Desert, a dice throw away from the Nevada border, giant road graders and a small army of laborers began turning the dirt for BrightSource Energy's $2 billion Ivanpah project, the first large-scale solar thermal power plant to be built in the United States in two decades.
The Ivanpah plant is the first of nine multibillion-dollar solar farms in California and Arizona that are expected to begin construction before the end of the year as developers race to qualify for tens of billions of dollars in federal grants and loan guarantees that are about to expire. The new plants will generate nearly 4,000 megawatts of electricity if built — enough to power some three million homes.
But this first wave may very well be the last for a long time, according to industry executives. Without continued government incentives that vastly reduce the risks to investors, solar companies planning another dozen or so plants say they may not be able to raise enough capital to proceed.
"I think we're going to see a burst of projects over the next two months and then you're going to hear the sounds of silence for quite awhile," said David Crane, chief executive of NRG Energy, on Wednesday after he announced that his company would invest $300 million in the Ivanpah plant.
Solar developers depend on two federal programs to make their projects financially viable. The most crucial is a loan guarantee program, expiring next September, that allows them to borrow money on favorable terms to finance up to 80 percent of construction costs.
The other is the option to take a 30 percent tax credit in the form of a cash payment once a project is built. Although the tax credit does not expire until the end of 2016, the option to take it as a cash payment disappears this year, making it far less valuable to a start-up that is just beginning to generate revenue.
With both Democrats and Republicans promising to rein in the federal budget, it is unclear whether lawmakers will extend the programs in any form. "That could stall a number of projects and even lead to the failure of some," said Ted Sullivan, an analyst with Lux Research, a consulting firm in New York.
Yet no one in the desert here wants to think too much about those looming clouds.
"Ivanpah represents a transformational moment in our energy equation," said John Woolard, BrightSource's chief executive, who was joined Wednesday by Gov. Arnold Schwarzenegger of California and Interior Secretary Ken Salazar at Ivanpah's groundbreaking ceremony. "It demonstrates that the U.S. can lead in the drive for renewable energy at scale by building the largest solar plant in the world with new technology."
The eight California projects that are expected to break ground this year will turn 46 square miles of the desert into a futuristic landscape of mirrors, towers and solar dishes. State officials estimate the plants will create 8,000 jobs in a state with a 12.4 percent unemployment rate.
During its three years of construction, Ivanpah will employ as many as 1,000 laborers in a recession-scarred region.
"In the last year I haven't worked," said Basilio Yniguez, a 36-year-old pipefitter and father of seven, as he helped build a holding pen last week for threatened desert tortoises on the Ivanpah site. "Thanks to the green thing going up, I'm working."
The state is supporting the industry in part by mandating that California utilities get a third of their electricity from renewable sources by 2020.
"When you look at the raw number of kilowatt-hours we need, I don't see how you get there without large central station solar projects," said Pedro Pizarro, a top executive with the utility, Southern California Edison.
Unlike the photovoltaic panel systems found on rooftops, most of the new solar plants will use thousands of large mirrors to heat liquids to generate steam that drives conventional electricity-generating turbines.
"Without the Department of Energy coming in to assume a lot of the risk, you might not find lenders willing to lend, particularly if you're a start-up with untried technology," said Nathaniel Bullard, a solar analyst at Bloomberg New Energy Finance.
Other hurdles also stand in the way of the solar expansion. For some plants, multibillion-dollar transmission lines must be built to carry electricity from the desert to cities. Some environmentalists continue to oppose the projects' impact on imperiled wildlife, such as the desert tortoise, and may sue to stop construction.
The competitiveness of large-scale solar thermal plants in California also depends on the cost of natural gas, the state's dominant source of electricity. According to Mr. Bullard, gas-fueled plants can produce electricity for about 10 cents a kilowatt-hour. After including the government subsidies, solar thermal plants are expected to generate power at between 13 and 17 cents a kilowatt-hour, which the industry says is close enough in price to be competitive.
So far, Ivanpah is the only California solar thermal project to win a government loan guarantee, although other projects have applied and are awaiting decisions from the Energy Department.
"We are sensitive to the deadlines and are doing everything we can so that these projects can move forward," said Jonathan Silver, the executive director of the department's loan program. "There's a significant demand for these funds."
The uncertainty has left even some of the licensed solar projects in limbo.
Tessera Solar, based in Houston, has received federal approval to build two solar power plants that together would generate nearly 1,400 megawatts from 54,900 large solar dishes installed on some 10,000 acres of government land. The company is seeking loan guarantees to help finance more than $4.6 billion in construction costs.
"This is a very significant amount of funding to secure in these tough markets," Janette Coates, a Tessera spokeswoman, said in an e-mail. "The actual start of construction will depend on progress with both the D.O.E. loan guarantee process and the project equity process."
Last month, Tessera suspended a much smaller project in Texas when it could not obtain private financing to build the 27-megawatt Marfa solar power plant.
Solar Millennium, a German developer, is seeking a $1.9 billion loan guarantee to build the first two phases of a 1,000-megawatt solar power plant that received federal approval on Monday.
Uwe T. Schmidt, Solar Millennium's executive chairman, said he expected work to begin in November on the $6 billion Blythe project, which will cover 11 square miles of the Southern California desert with long rows of parabolic mirrors.
Mr. Schmidt said that while Solar Millennium had found investors interested in financing the Blythe plant, the looming expiration of the cash grants would make it more difficult to fund future projects. "We're seeing that the loan guarantee is an absolutely necessity for building some of these larger projects," he said.
Assisted by deep-pocketed backers like Bechtel, Google and Morgan Stanley, BrightSource seems determined to press forward with its 370-megawatt Ivanpah plant no matter what happens on the policy front.
Last week, some 30 biologists in green hard hats were methodically sweeping through the creosote bushes looking for desert tortoises that must be relocated before the first of 347,000 mirrors the size of garage doors were installed around three 459-foot towers topped by water-filled boilers.
"Good projects will still move forward, but just not as many," said Mr. Woolard.
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12. CTA to buy 2 all-electric buses Oct 28, 2010 Chicago Tribune Jon Hilkevitch
Oct. 28, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- The Chicago Transit Authority received a $2.2 million federal grant on Thursday to buy two all-electric buses.
The battery-powered buses -- the first buses with an all-electric propulsion system in the CTA fleet -- will be tested to see how well they perform in regular service, officials said.
"We anticipate that the buses will be used for shorter runs," CTA spokeswoman Noelle Gaffney said. The buses will be used as part of the agency's initiatives to reduce greenhouse gas emissions, she said.
The two buses will be standard 40-foot models, but officials have not settled on a brand to purchase or announced when the pilot project will begin, Gaffney said. The buses will operate out of one garage that will be equipped with quick-charging units.
The CTA currently operates 228 diesel-electric hybrid buses and 1,553 diesel buses, officials said.
Meanwhile, Metra was awarded about $341,000 to install automatic shutdown and startup systems in about 27 locomotives. By shutting down instead of idling locomotives, Metra estimates it will save 800,000 gallons of diesel fuel and reduce carbon dioxide emissions by 80,000 tons annually.
Both grants supporting environmentally sensitive transportation projects were awarded through the U.S. Department of Transportation's Transportation Investments for Greenhouse Gas and Energy Reduction and Clean Fuels programs.
-- Jon Hilkevitch
Newstex ID: KRTB-0197-50183641
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13. Kia unveils Soul for Brazil that runs on 100% ethanol Oct 28, 2010 USA Today Kia just introduced its first South Korean model that can run on 100% ethanol -- the Kia Soul Flex.
It will never make it to the U.S., but cars capable of running entirely on ethanol are critical in Brazil, where the Soul Flex was unveiled at an auto show in São Paulo. Brazilians depend on ethanol to power cars because they have an abundance of sugar cane, from which it is derived. In the U.S., amost all ethanol used in a 10% blend with gasoline comes from corn. Ethanol is basically the same as the alcohol found in vodka or whisky, only with a little gasoline added so you can't drink it.
Currently, ethanol costs 40% less than gasoline in Brazil, although it generally doesn't doesn't allow you to drive a car as far:
Kia says the Soul Flex will boast a 44% improvement in fuel efficiency compared with the existing gasoline model and superior power.
Changes made to accommodate the more "abrasive nature" of ethanol fuel include reinforcing the fuel pump, pillar cap and fuel line, and fitting a gasoline tank assistance system in order to aid engine ignition at low temperatures.
Kia will begin exporting Soul Flex to Brazil this month.
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14. OPINION Oct 29, 2010 The Seattle Times Lance Dickie
Oct. 29, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Frugal voters unite!
Tucked away on the November ballot is a solid investment with guaranteed dividends. Referendum 52 asks taxpayers to spend a little money to save a lot of money on energy bills in schools and public buildings.
The state Legislature agreed to raise $505 million with general obligation bonds to pay for energy-conservation grants to schools, universities, colleges and public agencies. A competitive process finds the most energy-efficient projects and building upgrades.
Funding the grants requires modestly expanding the state's debt limit, which needs voter approval. It should be granted.
R-52 offers long-term environmental benefits, and it works as a jobs measure in a state economy with a stubborn 9 percent unemployment rate.
The legislation, sponsored by Rep. Hans Dunshee, D- Snohomish, creates a conservatively estimated 30,000 new construction jobs.
What really does it for me is saving money -- the pure economics of conservation. Time is the key element. Built and operating public facilities will be in use for decades more. Dated, inefficient lighting, heating and control systems have been, are now and will continue to waste taxpayer dollars. Those costs will only grow, sucking up more education dollars to pay the utility bill.
I don't know if clipping coupons and toting a sack lunch to work establishes one's bona fides as a frugal person. The instinct is less an aversion to spending, and more about not squandering scarce resources, mine and those we share.
R-52 is written to be paid for by extending a beverage and candy tax past its expiration in 2013. Initiative 1107 on the ballot would repeal the sales tax. If both measures pass -- raising the debt limit and repealing the sales tax -- the Legislature would have to find the $32 million of annual debt service in the general fund. I think that is doable and worth doing.
The underlying process of R-52 -- energy performance contracting -- is not new. The South Kitsap School District has been using it since 1999.
"The goal is to find equipment upgrades to provide guaranteed energy savings," said Tom O'Brien, director of facilities and operations.
Competitors for the grants would submit projects rated and guaranteed by specialized contractors as offering savings that quickly pay for themselves. Successful state-grant applicants would leverage district bond money, conservation grants from local utilities and loans whose repayment would be covered by energy savings.
Monitoring and verification requirements in energy contracting also ensure equipment is properly maintained, said Evan Ujiiye, director of capital planning for Northshore School District.
The state would collect sales taxes on project materials and services, but future savings on utility bills would accrue to the district and local taxpayers.
As citizens of overlapping jurisdictions, every taxpayer is paying bits and pieces of bills. Saving money and improving school environments are true values with a genuine impact on education. The legislation does not speak to healthier classrooms, but any retrofit project is going to reveal and remove all manner of hazardous funk.
Kevin Laverty, president of the Washington State School Directors' Association and a Mukilteo School Board member, knows firsthand the improvements that can be done, and the savings to be found. The association's board of directors has endorsed R-52.
The measure comes with official benedictions. State Treasurer James McIntire has opined the proposed bond measure should not affect the state's bond rating.
The best way forward is to vote no on I-1107, which saves a few pennies on wholly discretionary purchases. A yes vote on R-52 offers real benefits for students, schools and saves taxpayers money.
Lance Dickie's column appears regularly on editorial pages of The Times. His e-mail address is ldickie@seattletimes.com
Newstex ID: KRTB-0181-50191552
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