Distributors wanting to enter or expand their current sales in the energy management market can use several sites on the Internet to find project leads, but your current customer base is the first place to look for growing sales. Consider revisiting all of the energy management proposals you might have made since 2007 and updating them to reflect current electricity prices; local, state and federal incentive programs, and new regulatory requirements. If the payback becomes shorter and more convincing, resubmit the proposals to the customer and highlight the changes. The Database of State Incentives for Renewables & Efficiency is the most comprehensive source of information on federal, state, local, and utility incentives and policies that promote renewable energy and energy efficiency.

Energy efficiency is a core component of the LEED rating system, so any project that registers for LEED certification is likely to require energy products and services. The USGBC provides a searchable database of LEED registered projects. Looking for projects in your area can generate sales leads, especially since new construction projects and major renovations tend to have long gestation times.

The American College & University Presidents Climate Commitment (ACUPCC) and the U.S. Conference of Mayors Climate Protection Agreement are both seeking to reduce greenhouse gas emissions through energy management projects. Signatories have committed to improve the energy efficiency of the built environment within their jurisdictions. More than 1500 cities and higher education institutions, large and small, have committed to these changes; that’s a large number of potentially significant leads.

Knowing where to look for potential sales, how to pitch projects to customers, and how to present energy and environmental services and products can help proactive distributors stay ahead of the competition. For more tips on selling energy management projects, please refer to NAED’s Selling Toolkit.

The U.S. Department of Energy’s Federal Energy Management Program (FEMP) has ambitious clean energy goals. Clean energy is an umbrella term that is used to encapsulate efficient, low-carbon, and renewable energy sources. As the largest energy consumer in the U.S., the federal government has embraced a prime opportunity to lead by example. FEMP is a key component of this task because it is responsible for helping federal agencies meet energy management goals, including:^[1]

• Reducing energy intensity 30% by 2015 from 2003 levels
• Reducing water intensity 16% by 2015 from 2007 levels
• Generating or purchasing at least 7.5% of electricity from renewable sources by 2013

Energy (or water) intensity measures the amount of energy (or water) required to produce a given level of output or activity. It can be used to measure the amount of energy it takes to manufacture a product or to produce a certain level of Gross Domestic Product (GDP). For instance, U.S. energy consumption in 2004 was about 100 quadrillion (10¹⁵) Btus and the GDP was estimated at $11.74 trillion. These figures produce an energy intensity ratio of about 8500 Btus (9 megajoules-MJ) for every dollar of GDP.^[2]

FEMP will use American Recovery & Reinvestment Act funding to develop an energy, water, and greenhouse gas emissions reporting and tracking system for federal facilities. This system will help the government achieve its energy management goals.^[3] As noted in NAED’s “Findings in Brief: The Green Market” white paper and “The Energy Management Market for Government Buildings” case study, the stimulus act and the government’s clean energy goals provide numerous opportunities for electrical distributors to sell energy management products and services.

^[1] http://apps1.eere.energy.gov/news/daily.cfm/hp_news_id=193 accessed August 12, 2009.

^[2] http://www1.eere.energy.gov/ba/pba/intensityindicators/total_energy.html accessed August 12, 2009.

^[3] http://apps1.eere.energy.gov/news/daily.cfm/hp_news_id=193 accessed August 12, 2009.

As businesses, consumers and government entities become increasingly aware of the overall environmental and economic impact of their decisions, water efficiency is emerging as the next big topic in the green movement. General Electric Co. executives recently predicted that their water products and services division could quickly become a major growth driver, likening the potential of the water business to their recent and rapid success in the wind business.¹

What is WaterSense?

WaterSense seeks to promote the market for water-efficient products, programs, and practices. Launched in 2006 by the Environmental Protection Agency (EPA), WaterSense helps consumers identify water-efficient products and programs by labeling products and programs that perform as well or better than their competitors and use at least 20 percent less water than their competitors.²

WaterSense Products

Today, consumers can choose from more than 300 high-efficiency toilets (HETs) and more than 1,000 types of water-saving faucets and accessories that have earned the WaterSense label. In 2008 alone, WaterSense labeled toilets, faucets, and faucet accessories helped Americans save an estimated 9.3 billion gallons of water - enough water to supply 100,000 average households for a year - and realize more than $55 million in savings on water and sewer bills.³

WaterSense Partners

WaterSense partners with manufacturers, retailers and distributors, utilities, state and local governments, nongovernmental organizations, trade associations and irrigation professionals to bring water-efficient products to market and to endorse the WaterSense label.

Ferguson Enterprises, the country's largest wholesale distributor of plumbing supplies, partnered with WaterSense in 2007.

¹ http://www.reuters.com/article/bondsNews/idUSN2235851820090811

² http://www.epa.gov/watersense/pubs/every.htm

³ http://www.epa.gov/watersense/news/current/summer2009.htm

Two of the Obama Administration’s stimulus programs focus specifically on energy efficiency: the Energy Efficiency and Conservation Block Grant Program (EECBG) and the State Energy Program (SEP). Combined, these programs offer just over $6 billion in funding for various energy efficiency projects, but they require project participants to measure and provide verification of energy savings. For instance, the EECBG program requires grantees to report energy savings per dollar invested to the Department of Energy.^[1] To help customers using these programs meet new regulatory requirements for transparency and effectiveness, electrical distributors should be familiar with measurement and verification (M&V) protocols.

M&V provides reassurance for the customer (and the government) that what was promised in the energy project proposal is actually delivered. Some incentives and rebate programs may also require M&V. Many Energy Service Companies (ESCOs) offer performance guarantees as a method of verifying energy savings. Energy service providers, facility managers, and building owners can all follow M & V guidelines to determine whether or not energy savings were actually achieved. The U.S. Department of Energy’s Federal Energy Management Program (FEMP) developed a Measurement and Verification Guideline for Federal Energy Projects to help with before-and-after energy use comparisons. These guidelines can be scaled up or down depending on the complexity of the energy project. The Efficiency Valuation Organization’s International Performance Measurement & Verification Protocol (IPMVP) also provides guidelines on how to measure systems in isolation or to conduct whole building comparisons. This protocol is also referenced in the LEED rating system, under Energy and Atmosphere credits.

What does this mean for the electrical distributor? A chance to sell customers more sensors and other measurement systems, not only for these specific stimulus-funded projects, but also for all the LEED projects that choose to pursue the point(s) for using M&V systems. For more information, see NAED’s Findings in Brief: Services & Solutions to Help Customers Go Green.

^[1] http://www.eecbg.energy.gov/about/FAQ.html#lh1 accessed August 11, 2009.

Wal-Mart High Efficiency (HE) pilot stores help the world’s largest retailer reduce energy use and greenhouse gas emissions.

As the world’s largest company, Wal-Mart has a tremendous impact on the environment.^[1] Over the past few years, the company has been building High Efficiency (HE) pilot stores to reduce their energy use and greenhouse gas emissions.

Wal-Mart introduced the sixth generation of HE pilot stores last summer in Sacramento, California. The store is climate-specific, using a combination of evaporative cooling and radiant flooring technologies to cool the stores. Cool water is produced in roof-mounted cooling towers and then pumped through the radiant flooring system to cool the retail space.

This system uses less energy than traditional air conditioning. HE pilot stores also feature daylight harvesting through skylights, which reduces lighting energy by up to 75%, and LED lighting, which is 70% more efficient than traditional fluorescent lighting. Overall, the Sacramento store is 30% more energy efficient than the 2005 Wal-Mart supercenter baseline.^[2] Wal-Mart uses energy management systems in all of their U.S. stores and Sam’s Club locations.^[3]

It is important for electrical distributors to be aware of what retailers are doing in terms of sustainability. According to a 2009 survey of NAED members, 44% of respondents identified retailers as an end user of energy management solutions. For more information on selling energy management solutions to commercial customers, please refer to NAED’s “Selling to the Commercial Market“ case study.

[1] http://walmartstores.com/FactsNews/FactSheets/ accessed August 5, 2009.

[2] http://walmartstores.com/FactsNews/NewsRoom/9203.aspx accessed August 5, 2009.

[3] http://walmartstores.com/Sustainability/9124.aspx accessed August 5, 2009.

Plug loads account for 15 to 19% of residential energy use^[1] and about 20% of commercial energy use in the U.S.^[2] Plug loads grew by 12 to 14% in 2007 and it is safe to expect similar growth in the coming years.^[3] Most plugged-in devices use energy even when they are turned off. This type of energy use is often referred to as phantom load or vampire energy. Electronics draw power through two types of standby modes: passive and active. The clock on a microwave is an example of passive standby. An example of active standby is a DVD display when it is programmed to record something. Even cell phone chargers still draw power when they aren’t actively charging a cell phone battery. 22% of plug load electricity is used in standby mode.

There are several devices that can help reduce plug loads. GreenSwitch™ is an innovative device that can wirelessly control wall plugs and light switches, allowing users to control plug loads with one switch. Wattstopper/Legrand offers Isolé Plug Load Controls; surge protected power strips with occupancy sensors. When no one is present, peripheral office equipment is powered down to reduce energy consumption.

Controlling plug load growth is an important energy management strategy. Electrical distributors should consider offering plug load controls to all customers as a means of accessing the growing energy management market. For more information on plug load controls, please refer to NAED’s Going Green – Inside and Out white paper, How to Profit from Green Market Opportunities available at the NAED Learning Center.

[1] https://touchstoneenergy.cooperative.com/public/programs/EnergyEfficiency/documents/EnergyUseofHouseholdElectronics.pdfaccessed August 10, 2009.

[2] Sabo, Carol. “Plug-Load Energy-Efficiency on Campus”, a presentation given at the Advanced Design and Technologies for Higher Education Facilities Workshop in Lansing, MI September 23, 2005. PA Government Services, Inc.

[3] http://www.todaysfacilitymanager.com/articles/does-it-pay-to-pursue-plug-load-reductions.php accessed August 10, 2009.

Practices that help companies excel in sustainability efforts include corporate leadership, developing metrics, setting policies and standards, improving stakeholder communications, educating staff, and formalized reporting. Using dashboards to deliver sustainability metrics in a user-friendly way is also a highly recommended practice. Dashboards provide a visual means of gauging how well a company is doing on various indicators, like energy and water use. They often come in the form of websites or “apps”.

The study used six key performance criteria to differentiate “Best-in-Class” companies. These companies achieved the following returns on their sustainability investments:

• 9% reduction in carbon footprint
• 6% reduction in energy costs
• 7% reduction in facilities costs
• 10% reduction in paper costs
• 7% reduction in transportation / logistics costs
• 16% increase in customer retention

For more information on sustainability practices tailored to the electrical distribution industry, please refer to NAED’s “Inside Going Green – Little Green Book of Corporate Sustainability.”

Source: Cindy Jutras and Jhana Senxian, “The ROI of Sustainability: Making the Business Case,” Aberdeen Group, May 2009.

Available at: http://www.aberdeen.com/summary/report/benchmark/5908-RA-sustainability-environmental-stewardship.asp

• Save energy
• Reduce greenhouse gas emissions
• Reduce maintenance costs
• Improve light quality
• Save tax dollars

Cree, a leading manufacturer of LEDs and one of the LED City industry partners, is going after outdoor lighting as a primary market.^[1]

In December 2006, a pilot project for the LED City program was launched in Raleigh, North Carolina. LEDs replaced high-pressure sodium fixtures in a parking garage and produced energy savings of 40%. User surveys conducted before and after the project found that LED light quality was superior and that the garage felt safer.^[2]

A good approach to building your initial LED sales program is to inquire about municipal and institutional energy efficiency initiatives and whether they include using LEDs for outdoor lighting. Municipal energy efficiency initiatives are seeing a boost in funding from the American Recovery & Reinvestment Act. The best place to look at how stimulus funding is being spent on the local level is through your state’s recovery website, which can be found here: http://www.recovery.gov/?q=content/state-local-tribal-and-territorial-resources&mode=map.

CRS Electronics, another large LED manufacturer, offers an online savings calculator that might also be helpful in generating LED sales. For more information on LEDs, please refer to NAED’s white paper Findings in Brief: Services & Solutions to Help Customers Go Green.

[1]Detar, James. “LED Chipmaker Cree Plugs Into Green Field.” Investor’s Business Daily, November 26, 2008.

[2] http://ledcity.org/about-the-program/ accessed August 10, 2009.

Mission Zero™is the company’s commitment to completely eliminating its negative impact on the environment by 2020. Anderson coined the term EcoMetrics™to describe the measurement system Interface uses to track their progress. The system was put in place in 1994, and it is designed to assess how much the company takes in, in terms of materials and energy, compared to what comes out, in the forms of products and waste.

Every facility the company owns tracks hundreds of metrics on a quarterly basis. Some of the key indicators include energy and water use, waste output, renewable energy generation, carbon emissions, and social investments through philanthropy and volunteering.^[1] This data is compiled each year on a company-wide basis and published on Interface’s website.

One of the most striking examples of how successful their approach has been is the amount of carpet they’ve diverted from landfills through recycling and reuse. From 1995 to 2008, Interface has reused over 725 million pounds of carpeting, thus diverting it from landfills. Other EcoMetrics show that renewable energy sources supply 28% of the company’s energy use, and that biobased or recycled sources supply 24% of their raw materials.^[2] While this example is from the floor covering industry, you can find examples of electrical distributors and manufacturers that are taking innovative approaches to sustainability in NAED’s Corporate Sustainability case study series.

^[1] http://www.interfaceglobal.com/Media-Center/Ecometrics.aspx accessed August 3, 2009.

^[2] http://www.interfaceglobal.com/getdoc/7e96b54e-ad49-4eff-9877-38a55df0396d/Global-EcoMetrics.aspx accessed August 3, 2009.

As you likely know, this company is a progressive wire and cable manufacturer based in Carrollton, Georgia. In 2008 the company set an ambitious goal of eliminating lead additives from all of their products, and began using sustainability as a framework through which every aspect of the business was viewed.^[1]

The Toxic Substances Control Act (TSCA) currently oversees the 82,000-pluschemicals currently in the market. Under TSCA, the U.S. Environmental Protection Agency (EPA) must meet stringent requirements in order to prove that a chemical poses a health threat and needs to be restricted or banned. This differs significantly from the EU’s REACH regulations under which the manufacturers are responsible for proving that their products are safe.^[2]

In October 2009, EPA administrator Lisa Jackson announced the core principles that outline the Obama Administration’s goals for chemical management. The principles, which are intended to help Congress reform TSCA, are as follows:^[3]

• Chemicals should be reviewed against risk-based safety standards based on sound science and protective of human health and the environment

• Manufacturers should provide EPA with the necessary information to conclude that new and existing chemicals are safe and do not endanger public health or the environment

• EPA should have clear authority to take risk management actions when chemicals do not meet the safety standard, with flexibility to take into account sensitive subpopulations, costs, social benefits, equity and other relevant considerations

• Manufacturers and EPA should assess and act on priority chemicals, both existing and new, in a timely manner

• Green Chemistry should be encouraged and provisions assuring Transparency and Public Access to Information should be strengthened

• EPA should be given a sustained source of funding for implementation

[1] Winn Wise, personal interview, February 23, 2009.

[2] http://www.GreenerDesign.com/news/2009/03/02/chemical-industry-health-and-environment-groups-push-us- 

toxics-law-reform accessed October 14, 2009.

[3] http://yosemite.epa.gov/opa/admpress.nsf/0/D07993FDCF801C2285257640005D27A6 accessed October 14, 2009.

This conclusion is supported by findings from related reports. McKinsey & Company’s 2009 report, ”Unlocking Energy Efficiency in the U.S. Economy”, found that energy efficiency technologies have a $170 billion annual market potential. A 2008 report by Lazard, an international financial advisory and asset management firm, found that the levelized (average lifetime) cost of energy efficiency improvements ranges from zero to five cents per kWh.

Given these findings, the ACEEE analysis of energy efficiency economics concludes that these investments have a return on investment range of 10 to 25%. This means that in as little as four years energy efficiency investments can pay for themselves. From that point on, energy savings can help households and businesses improve their bottom lines. By 2050, ACEEE estimates that energy efficiency investments could cut energy bills in half for U.S. consumers and businesses and reduce carbon emissions by as much as 7,167 megatons. As a point of reference, the U.S. released 7,150 megatons of greenhouse gas emissions in 2007.^[1]

Another important benefit of energy efficiency investments is potential job growth. These investments will replace energy intensive economic activities with labor intensive economic activities. This finding is supported by the work of Professor David Roland-Holst at the University of California. After studying the macroeconomic implications of California’s innovative energy policies, he found that efficiency programs have created about 1.5 million full-time jobs with a payroll of $45 billion while saving about $56 billion since 1972.^[2]

These findings support the business case for energy efficiency investments and may eventually help electrical distributors sell energy management projects, by encouraging more money to flow to these investments. Please refer to NAED’s Findings in Brief: The Green Market: Trends, Breakthroughs & Business Opportunities for more information.

[1] http://epa.gov/climatechange/emissions/downloads/2009GHGFastFacts.pdf accessed August 10, 2009

[2] Roland-Holst, David. “Energy Efficiency, Innovation, and Job Creation in California.” Palo Alto, California, Next 10, 2008. Available at: http://www.nextten.org/next10/publications/research_eeijc.html.

For instance, the electricity sector produces 34% of the GHG emissions in the U.S. and 40% of total carbon dioxide (CO2) emissions.

Figure 1: U.S. Greenhouse Gas Emissions by Sector.² 

 
In a 2009 survey of National Association of Electrical Distributors (NAED) members, respondents were asked to describe the end users of their energy management products and services. The majority of respondents sold to industrial (78.8%) and commercial office (74.1%) customers. As can be seen in the figure above, 20% of GHG emissions come from the industrial sector, while 11% come from the combined residential and commercial sectors.

Using the Climate TechBook to dig a bit further into the commercial sector, users will learn that lighting is the largest single end use of energy in commercial buildings, about 25%. This fact should make lighting a prime target for energy use reductions, coinciding nicely with the fact that fluorescent lamps are the mainstay of energy-efficient lighting sales for electrical distributors and manufacturers. For more information on fluorescent lamp sales and more detailed data on energy efficiency marketing opportunities, please refer to NAED’s  Findings in Brief: Services and Solutions to Help Customers Go Green.

1) http://www.environmentalleader.com/2009/06/08/pew-center-launches-online-climate-techbook/

2) http://www.pewclimate.org/technology/overview/electricity

Mark Frankel, the Technical Director with the New Buildings Institute, suggests that what EMS should produce is actionable information for the designers, operators, and tenants.Measuring temperature, occupancy and plug loads, lighting run times, and total energy use are good data sources to start with. This doesn’t have to be real time (streaming) data, but it should be produced more than once a month or once a year.^[1] The New Buildings Institute offers an Advanced Buildings Core Performance Guide, which includes a section on energy metering protocols.

Under the latest Leadership in Energy and Environmental Design (LEED) guidelines, known as LEED v3, buildings seeking certification under the Existing Buildings: Operations & Maintenance (LEED EBOM) rating system must provide operational performance data on an on-going basis. This requirement provides further support for EMS that provide useful and actionable information. Distributors looking for more technical sales should investigate the LEED standards for measurement and verification of building performance as a possible sales aid.

^[1] Mark Frankel, personal interview, January 27, 2009

Mark Frankel, the Technical Director with the New Buildings Institute, suggests that what EMS should produce is actionable information for the designers, operators, and tenants. Measuring temperature, occupancy and plug loads, lighting run times, and total energy use are good data sources to start with. This doesn’t have to be real time (streaming) data, but it should be produced more than once a month or once a year.³ The New Buildings Institute offers an Advanced Buildings Core Performance Guide, which includes a section on energy metering protocols.

Under the latest Leadership in Energy and Environmental Design (LEED) guidelines, known as LEED v3, buildings seeking certification under the Existing Buildings: Operations & Maintenance (LEED EBOM) rating system must provide operational performance data on an on-going basis. This requirement provides further support for EMS that provide useful and actionable information. Distributors looking for more technical sales should investigate the LEED standards for measurement and verification of building performance as a possible sales aid.

The GRI provides a trusted and credible framework for sustainability reporting that is applicable to a wide range of organizations. The framework provides guidance for reporting on corporate governance structures, management approaches, and environmental, social, and economic performance indicators; all within the context of sustainability.

AccountAbility also provides sustainability reporting standards. These standards comprehensively assess an organization’s management, performance, and reporting on sustainability issues. Both report preparers and third-party sustainability assurance providers, i.e. organizations that test the credibility of sustainability claims, can use these standards.

In general, sustainability reporting makes sustainability efforts more transparent, and allows the public to compare sustainability activities between companies. More information on sustainability reporting can be found in NAED’s Little Green Book of Sustainability and Tools for Corporate Sustainability Planning. For examples of corporate sustainability reports, go to CorporateRegister.com, a searchable database of corporate social responsibility reports and resources.

¹http://greenbiz.com/news/2009/07/16/gri-record-growth

When considering various green labels, it is important to look for third-party certification and recognition by standard setting organizations, like the American National Standards Institute (ANSI) and the International Organization for Standardization (ISO). A few of the green labels that are most relevant to electrical distributors are:

• The U.S. Environmental Protection Agency’s ENERGY STAR^© label is widely recognized and can be found on appliances, home electronics, office equipment, and lighting products. ENERGY STAR recently began certifying LEDs that meet strict efficiency, quality, and lifetime criteria. You can learn more about ENERGY STAR qualified LEDs by visiting their website: http://www.energystar.gov/index.cfm?c=ssl.pr_why_es_com
  
  
• Underwriters Laboratories^® (UL) has begun an Environmental Claims Validation™ program that tests various product claims, such as recycled content, regional materials, energy and water efficiency, and compostability. UL is also developing a Sustainable Product Certification™ program for building products, office products, and consumer electronics.
  
  
• Green Seal™ is another popular green product certification program. It is based on the International Organization for Standardization (ISO) standards for environmental labeling and has been accredited by the American National Standards Institute (ANSI). The Green Seal can be found on commercial cleaning and facilities maintenance products, household products, and office products.

• The Association of Energy Engineers (AEE) offers the Certified Energy Auditor (CEA) credential to engineering, architecture, and facility management professionals that can pass their rigorous training and examination program. The credential must be recertified every three years by accumulating at least eight credits, which are issued for continuing education courses and energy auditing employment, among other activities. A national list of CEAs can be found here: http://www.aeecenter.org/certification/activelists/CEAActive.pdf
  
• The Building Performance Institute (BPI) trains and certifies contractors based on the “building as a system” concept; which basically holds that the relationship between all the systems in a building is the key to its overall performance. For example, subpar performance in one area can affect energy use and efficiency in other areas. BPI offers building analyst, Air Conditioning / Heating, Envelope, and Multifamily Residence training and certification. BPI qualified auditors can be found here: http://www.energyaudits.com/FindAnAuditor.aspx
  
• The Residential Energy Services Network (RESNET) administers the national Home Energy Survey Professional test. Those who pass the test are qualified to offer comprehensive home energy audits, which includes performance testing, combustion appliance testing, and a computerized simulation analysis of the home’s energy performance. The performance analysis determines the scope of work the auditor will recommend to the homeowner. RESNET qualified auditors can be found here: http://www.energyaudits.com/FindAnAuditor.aspx

• Category 6 riser-rated communication cable
• Category 6 plenum-rated communication cable
• Non-metallic sheathed low-voltage power cable as used in building wire

These products were featured because they represent a significant share of the wire and cable market and contain materials for which alternatives are being sought. The report and a factsheet on the project can be downloaded here <http://www.epa.gov/dfe/pubs/index.htm#wirecable>

[i] http://www.life-cycle.org/ accessed June 26, 2009.

[ii] http://www.epa.gov/ORD/NRMRL/lcaccess/lca101.html accessed June 26, 2009.

[iii] http://www.epa.gov/ORD/NRMRL/lcaccess/lca101.html accessed June 26, 2009.

 Energy-efficiency programs run the gamut from simple, prescriptive rebates to innovative financing initiatives. Most programs that are just getting stared opt for lighting and HVAC rebates. For instance, many utilities offer rebates for compact fluorescent bulbs and T8 retrofits.[iii]

One of the more innovative programs in the U.S. is the City of Berkeley’s Financing Initiative for Renewable and Solar Technology (FIRST) <http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=26580> . This voluntary program helps property owners finance renewable and energy-efficient, or clean energy projects by providing the capital costs for equipment purchase and installation. The City of Berkeley views clean energy like other public goods, like water and roads, the public policy reason for creating this financing mechanism.[iv]

The city created a land-secured financing or assessment district comprised of property owners that voluntarily signed up for the program. Proceeds of a Clean Energy Bond are then given to property owners to pay the up-front costs of their clean energy projects. The property owner then repays the project costs on their property tax bills over the course of the next 20 years, presumably with the energy savings from the project.[v]

Other municipalities can apply for EECBG funding through the ARRA and use it as the basis of their own innovative financing initiative. Along with continued growth in existing energy efficiency programs, as they spread, these innovative programs will likely bring about new opportunities for electrical distributors in the energy management market.

[i] http://www.cee1.org/ee-pe/2008/#relationship accessed June 26, 2009.

[ii]  Callahan, Kateri, “Energy Efficiency & the Stimulus Bill: Rebuilding the Economy Today for a “Green Energy” Tomorrow.” Alliance to Save Energy webinar, March 17, 2009.

[iii] Jewell, Mark. “Keeping Efficiency at the Top of the List”, Engineered Systems, June 2009. Available at: http://www.esmagazine.com/Articles/Column/BNP_GUID_9-5-2006_A_10000000000000600036

[iv] DeVries, Cisco. U.S. Department of Energy Energy Efficiency and Conservation Block Grant Planning and Strategy Webcast, June 15, 2009. Available at: http://www.eecbg.energy.gov/Downloads/DOE_WEBINAR_DEVRIES_061509.pdf

[v] DeVries, Cisco. U.S. Department of Energy Energy Efficiency and Conservation Block Grant Planning and Strategy Webcast, June 15, 2009. Available at: http://www.eecbg.energy.gov/Downloads/DOE_WEBINAR_DEVRIES_061509.pdf

Smart Meters are digital devices capable of communicating energy use information between utilities and consumers. This two way communication allows utilities and energy users to access energy use information in real time. Understanding how energy is used can help utilities and consumers save energy and money. For instance, in areas with higher peak-period pricing (higher electricity rates during the greatest consumption periods, typically summer afternoons) the higher rates can be communicated to the consumer through energy monitoring devices or secure websites. The consumer then has the option to lower the air conditioning or turn off appliances or equipment during periods with higher energy rates.

To recap, the following three things need to happen in order to generate big market growth for smart meters:

• Peak-period pricing: for some years, utilities have been introducing peak pricing to commercial and industrial customers across the country. They are just now beginning to offer residential customers peak pricing, which better reflects real-time electricity rates. Check with your utility to see if peak pricing is available in your service area.
• Smart Meter: At this point less than 6 percent of the U.S. population has one. Again, you’ll want to check with your utility to see if they are rolling out a smart meter program in your area.
• Energy monitoring device and / or website: A number of companies are launching energy monitoring devices, software, and websites this year. For instance, Google PowerMeter is an online energy information tool that will show consumers their electricity consumption through secure, personal iGoogle homepages or Google Gadgets.

Sources:
FAQ: Smart Grid - http://earth2tech.com/2009/01/26/faq-smart-grid/
10 Monitoring Tools Bringing Smart Energy Home - http://earth2tech.com/2009/04/14/10-energy-dashboards-for-your-home/
Google PowerMeter: http://www.google.org/powermeter/index.html

Senior management and / or corporate executive support for the green team are first and foremost. One-third of the firms surveyed for an Economist Intelligence Unit study place responsibility for sustainability performance directly with the CEO; another 26% place it with the board, representing 60 percent of the total respondents. This support can sometimes come in the form of a new corporate position, such as Chief Sustainability Officer (CSO). A Corporate Responsibility Officer Magazine survey indicated that, as of January 2008, fully 25 percent of Fortune 500 companies expected to appoint a CSO. (Of course, the Great Recession may have postponed some of these hires.)

Training and education are important parts to any new initiative, so green teams in the electrical distribution industry should consider seeking green building or renewable energy certifications. The Green Building Certification Institute recently launched a new designation for professionals that want to demonstrate general, green building knowledge – the Leadership in Energy and Environmental Design (LEED) Green Associate. Solar Energy International offers a number of workshops, both online and in person, on green building technologies and renewable energy.

Sources:
Kielstra, Paul. Doing Good: Business and the Sustainability Challenge. The Economist Intelligence Unit, February 2008: http://www.eiu.com/site_info.asp?info_name=corporate_sustainability&rf=0

A number of online carbon calculators, GHG accounting tools, and reporting methods can be used to track emissions. Here are a few of the better known and well-established ones:

• Greenhouse Gas Protocol – a multi-stakeholder partnership providing standard accounting procedures, supporting data, and calculation tools. This is the most widely used international accounting tool for quantifying greenhouse gas emissions and serves as the basis for the most widely accepted standards for reporting emissions data.
• The Climate Registry - the North American standard for reporting GHG inventories. It also prepares companies for GHG reporting and reduction regulations like California’s AB 32 legislation.  It is a collaborative effort between more than 40 states, provinces and tribes in the United States, Canada, and Mexico to develop and manage a common and unified GHG emissions reporting system.  You can view the Grand Targhee Resort’s (located in Alta, Wyoming) Climate Registry emissions report on The Climate Registry site.
• OpenEco – a web application and online community for reporting, analyzing, and comparing GHG emissions.

• The U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant Program offers a state and local grant allocation map showing where its share ($3.2 Billion) of the stimulus package is going.
• State Energy Programs are receiving $3.1 Billion from the stimulus package, and a map of those allocations can be found here.
• Recovery.gov also provides an interactive map showing how all stimulus funds are being spent on the state level.

Additionally, the U.S. General Services Administration will spend $5.55 Billion in stimulus funds on more than 250 construction projects across the country. These projects will focus on converting numerous government facilities to high performance green buildings, as well as new construction and general renovations. A list of projects scheduled to receive this funding can be found here.

Paper products constitute the single largest category of landfill waste, even though paper recycling is offered in numerous municipalities. The average office employee creates about 350 pounds of wastepaper each year, or 1.4 pounds per working day! Multiply that by the number of people working in your office and it is easy to see the large amount of paper going to waste.

Using paper more efficiently saves money because you won’t need to buy as much, and buying paper with recycled content reduces your environmental impact. Three core aspects to using and buying paper more sustainably include:

• Conserve paper –rely on emails and other electronic documents and use both sides of each piece of paper (set your printer to “automatic duplex” when printing large reports).
• Recycle paper – put paper recycling bins next to every trashcan.
• Purchase paper with high post-consumer content – post-consumer recycled content is material used by consumers and then recycled.

Buying just 40 cases of paper with 30 percent postconsumer content instead of paper made from virgin pulp saves the following resources:

• More than seven trees
• 2,100 gallons of water
• 1,230 kilowatt-hours of electricity
• 18 pounds of air pollution

The Natural Resources Defense Council offers an online smart paper toolkit for businesses interested making their paper use more sustainable.

Under the Energy Policy Act (EPAct) of 2005, businesses can apply for deductions for new or renovated buildings saving 50 percent or more on projected annual energy costs. Partial deductions are also available. Energy cost reductions are typically achieved through lighting and HVAC retrofits. The lighting deduction is $0.30 per square foot for systems using bi-level switching and reducing energy used for lighting by at least 25 percent. The deduction can be increased up to $0.60 per square foot for a 40 percent power reduction.

EPAct also hosts the Tax Incentives Assistance Project (TIAP), which gives consumers and businesses the necessary information to maximize the benefits of federal income tax incentives for energy efficiency. Government agencies, nonprofits, manufacturing groups, and other energy efficiency organizations like the American Council for an Energy-Efficient Economy sponsor TIAP. The TIAP website lays out commercial building and on-site renewables incentives, which are likely to be the most relevant to electrical distributors.

EPAct also allows businesses and individuals to apply for a 30 percent tax credit on the cost of solar, small wind, and geothermal heat pump renewable energy systems.

Although reusable containers won’t work for all shipping situations, they do work well for “closed-loop” shipping—when goods are moved within a company or when delivery trucks “backhaul” goods to a distribution center. Shipping in reusable containers also makes sense for large volume shipments and for shipments consistent (relatively little variety) in type, shape, size & weight, OEM customers are often open to this sort of shipping. Of course, variable-sized reusable containers can also be used to ship various loads of electrical products, particularly to larger job sites.

Another common model for reusable containers is called “managed-loop,” a rental or service-based container management. Outsourcing pallet management where an outside firm procures, reconditions, and distributes pallets to and from customers is a common example of this model. Instead of purchasing pallets, customers outsource all pallet management in exchange for a fee.

Reusable totes or trays can also save a lot of money—10% to 15% on product costs^1. Implementing reusable totes or trays for internal processes also reduces the need for new containers and decreases disposal costs.

The website UseReusables.org lists the following potential benefits of reusable containers:

• Reduced waste management costs
• Lower labor costs
• Better product protection
• Less product damage
• Lower materials costs over time
• Better ergonomics for employees
• Improved worker safety
• Longer useful life of packaging
• Reduced greenhouse gas emissions
• More efficient use of storage or warehouse space.
• Improve cube-utilization to maximize all available truck/trailer space

Additional Resources for Reusable Containers and Packaging Information:

• The StopWaste Partnership and Reusable Packaging Association’s “Use Reusables” website: http://www.usereusables.com/
• Cost savings calculator: http://www.usereusables.com/cost/cctool.html
• Reusable Packaging Association: http://www.choosereusables.org/

1 http://www.stopwaste.org/home/index.asp?page=231

A blog brought to you by the NAED Education & Research Foundation’s Channel Advantage Partnership and presented by Jerry Yudelson, PE, MS, MBA, LEED® AP

Jerry Yudelson is researching emerging green markets in electrical distribution for the Channel Advantage Partnership. He’s already completed Green Goes Mainstream: How to Profit from Green Market Opportunities and is currently working on Going Green—Inside & Out, focusing on Corporate Sustainability Planning and Selling Energy Management Solutions. 

Jerry is a green syndicated columnist, has served on the national board of the U.S. Green Building Council (USGBC), is the current Chair of USGBC’s Green Build program, and is an expert in the LEED® green building rating system. He’s been involved in marketing renewable energy systems, environmental remediation products and services, and green building design for 25 years.

The Value of Going Green:

Energy efficiency, green building, and renewable energy represent the biggest U.S. energy success stories of the past few decades. However, for the electrical distribution industry (ED), these markets seem to be the least understood. This knowledge gap threatens NAED members’ chance to capture significant green market share and seize growth opportunities. Going Green—Inside & Out is designed to bridge ED’s green market knowledge gap by delivering the following vital information about energy markets.

Corporate Sustainability
Corporations are operating in the “Information Age”, encountering greener resource technologies in an increasingly globalized marketplace. This blog discusses these timely issues by exploring the pros and cons of “going green.” 

Selling Strategies
Total investments in more energy efficiency technologies and products could increase this market by hundreds of billions of dollars annually in the next two decades. This blog presents tactical strategies to take advantage of the growth opportunities. 

Investment Incentives
The electrical distribution industry is facing tougher competition which increases the demand to implement cost-effective energy efficiency measures. This blog examines barriers to energy efficiency and outlines the scope of potential benefits future investments might yield.

Making the Business Case
With growing demand from customers and increasing legislative mandates for energy efficient buildings and sustainable business practices, this blog reviews analysis methods companies should employ when making energy efficiency and sustainability investment decisions.

Wind and Solar Power
As solar and wind power gain traction, this blog examines the market and capital trends around renewable energy power.