Waste and Opportunity (or how to sharpen your saw)

Cincinnati is a wasteful city. This is the single most important fact in understanding our local economy.

What does it mean to say that Cincinnati is a wasteful city? Let's look at a couple of basic examples:

• the average car in Cincinnati and throughout the U.S. gets about 24 mpg, while the average car in Japan gets about 48 mpg, so half of each dollar we spend on gasoline is wasted.
• the average building in Cincinnati and throughout the U.S. can reduce its energy usage by more than 30% using energy efficiency improvements that pay for themselves in 3 years or less, without changing the quality of life of the building's occupants, so 30% of each utility dollar is wasted.
• food consumed in Cincinnati travels an average of 1500 miles from farm to table, while fertile land in our own community lies vacant.
• Rumpke landfill receives 2 million tons of material each year, and 60 percent of that is material for which there are established commodity markets with buyers ready and willing to pay a good price. More than a million tons per year of valuable natural resources are being wasted.

Now that we know what it means to say that Cincinnati is wasteful, why is that fact important?

Cincinnati's economy, like that of the nation and the world, is currently in the doldrums. People are struggling to understand: how to re-energize the economy; how to make the economy sustainable for the foreseeable future; and how to create an economy that can support an adequate standard of living for all of our City's inhabitants. These are the right questions to be asking, and the answers lie in eliminating waste.

The global economic slowdown started at about the same time that oil hit $140/barrel. Coincidence? Consider that every dollar we spend on petroleum is a dollar that leaves Cincinnati for some other part of the world; that every dollar we spend on food is a dollar that leaves Cincinnati for some other part of the world; and that every ton of natural resources that we bury in the landfill represents destruction of our own wealth. Is it any wonder that Cincinnati has not enough dollars to meet its needs, and that Cincinnati's economy and that of the whole nation needs massive infusions of cash (federal stimulus) to keep functioning?

Is now the right time to try to eliminate the waste in our economy. The story of the woodcutter comes to mind. This woodcutter had a contract to saw 10 logs per day, and he was very happy because he could saw 10 logs in 6 hours. But as time went by, the woodcutter's saw began to dull, and it took him 7 hours, then 8, to saw his 10 logs per day. Before long, the woodcutter was working feverishly from sun up to sun down trying desperately to fulfill his contract and deliver 10 logs per day. A friend asked him why he didn't sharpen his saw. Without looking up, the desperate woodcutter replied that he was far too busy to stop for even a moment, and went on working with his dull saw.

Some would argue that a recession is no time to worry about energy efficiency investments, urban gardens, or other extravagances. That perspective overlooks the fact that our inefficiencies are an important cause of our economic problems, and that eliminating waste is the best hope for enabling economic recovery. Like the woodcutter, if we make a small investment in improving the efficiency of our process, there is good reason to be optimistic about the future. If we decide that hard times are the wrong time to change, we can be sure that our situation will continue to gradually worsen.

Larry Falkin
Director, City of Cincinnati Office of Environmental Quality
larry.falkin@cincinnati-oh.gov


Hear Lt. Governor Lee Fisher and learn from representatives from leading local Company's on how to sharpen your saw. www.3esummitcincinnati.org/ October 2nd 8am-noon at the Duke Energy Center

Advanced Energy Fund Ohio Job stimulus program

The $150 million advanced energy funding (over three years) seeks to increase the development, production and use of advanced energy technologies in the state, and is divided into two parts:

• $66 million for clean coal technology projects administered through the Ohio Air Quality Development Authority’s (OAQDA) Ohio Coal Development Office (OCDO) (reviewed by staff, outside reviewers and the Technical Advisory Committee and approved by OAQDA); and
• $84 million for non-coal-related projects in three $28 million annual appropriations administered by OAQDA (reviewed by staff and outside reviewers, the Development Finance Advisory Council, approved by OAQDA and brought before Controlling Board for final approval).

Award Ranges
Grants may range from approximately $50,000 to $250,000 based on the size and scope of the entire project and the jobs, investment and other impacts outlined below in the Guiding Principles section. Projects presenting outstanding value propositions for Ohio may be considered for significantly higher awards.

Loans may range from approximately $1 million to $2 million. For highly qualified applicants, loans could be structured a number of ways including below market rates, subordinate collateralized positions with participating financial institutions and/or varying principal payments for a specified period of time.

Eligible Projects

• Non-coal
  · Renewable energy resources including energy derived from sources including solar, wind, hydroelectric, geothermal, certain fuels derived from solid wastes
  · Fuel cells
  · Increased efficiency in electricity generation without additional carbon dioxide emissions
  · Advanced nuclear energy technology
  · Advanced solid waste or construction and demolition debris conversion technologies resulting in measurable greenhouse gas emissions reductions
  · Any technologies, products, activities or management practices or strategies that reduce or support the reduction of energy consumption or support the production of clean renewable energy.
  Clean Coal
  · Improved retrofit technologies applicable to existing coal-fired generating units to increase generating efficiency in order to significantly reduce carbon dioxide emissions, to reduce emissions of conventional pollutants to negligible levels, and to develop methods for capture and sequestration of carbon dioxide;
  · Technologies to upgrade Ohio’s existing fleet of coal-fired electric generation plants;
  · Coal technologies capable of cost-effectively supplying the energy needs of Ohio’s industrial complex;
  · Development/deployment of advanced coal based power and fuel producing systems (e.g., IGCC, oxy-combustion systems, ultra-supercritical systems, chemical looping systems, etc.);
  · Cost effective carbon dioxide capture and sequestration through improving capture technology, surveying and cataloging Ohio carbon dioxide reservoirs, and development of carbon dioxide transport mechanisms;
  · Economic and effective mercury capture technologies;
  · High volume fly ash and flue gas desulfurization byproduct utilization in mine remediation/reclamation; and
  · Other projects certified by the OCDO Director as mission critical to the program’s Strategic Plan.
  Guiding Principles
  
• Workforce Impact: OAQDA will place high priority on new job creation and, to a lesser extent, on job retention.
• Full-time Permanent Jobs: certain projects will directly create new jobs, as well as indirectly creating the opportunity for additional permanent jobs through an expanding supply chain or the formation of the core of a potential industry cluster.
• Construction Jobs: a valuable contribution to short term economic recovery with value added to the extent these jobs engender learning and applying new skills that will be applicable to future projects. While the OAQDA understands that it may be challenging for an applicant to commit to a certain number of construction jobs, we recognize their importance.
• Economic Impact of Jobs: higher priority may be given to jobs providing compensation at or above sector or regional averages.
• Advancement Opportunities: new job creation that leads to career paths of increasing skills and opportunity will be given consideration. The degree to which new jobs open the doors of opportunity to currently unemployed or underemployed Ohioans will also be factored into the award decisions

Leverage: although the job stimulus package makes a significant amount of funds available for advanced energy projects, the OAQDA recognizes that the amount is relatively small within the context of the size and diversity of the advanced energy industry. Accordingly, it is essential that these funds significantly leverage the investment from other private and public sources.
Private Investment: when analyzing the total project, the amount of private investment (equity or debt) should at least match and really should exceed the state's involvement and preference will be given to applicants that demonstrate high leveraging of the state's investment.
Public Investment: in addition to private sector investment, support from other public (or nongovernmental organizational) sources further demonstrates the viability of the project. The public investment could include federal, other state and local commitments to the project.
Return on Public Investment: projects supported by public funds in earlier stages of development will be given added consideration. Job stimulus funds should clearly advance any earlier public investment to the commercialization stage, thereby improving the return on the total public investment package.

Coordination: projects that take advantage of other components of the job stimulus program or additional state incentives will be given added consideration. The advanced energy component of the job stimulus package is not an isolated, stand alone program; projects should demonstrate careful exploration of how other components can contribute, particularly the Choose Ohio First Co-op/Internship Program. Increasing the value of the project by active exploration of the more traditional economic development incentives offered by the state (including those at the Ohio Department of Development and the OAQDA) will also be evaluated.

Tipping Points: the OAQDA recognizes that many advanced energy projects carry significant price tags. It will be essential for applicants to demonstrate that the state investment makes a critical and substantial difference to the project and/or the industry.

• Progress in Development: will the state investment make possible a technology advance from pilot to demonstration stage, or preferably from demonstration to the commercial stage?
• Project Viability: will the state investment provide a necessary "bridge" for a project from one stage of private investment to the next (the effectiveness of the "bridge" must be clearly measurable with a significant degree of success certainty)?
• Project Expansion and/or Location: will the state investment ensure that subsequent phases of job creating production occur in Ohio or that expansion opportunities are realized in Ohio?
• Break-through Potential: will the state investment support a key activity of early stage commercialization that advances a potentially disruptive technology significantly? Such a role will be inherently higher risk for the state and would require clear documentation of the potential advance and its impact on Ohio's economic development goals.

Strategic Positioning: in addition to furthering investment in the advanced energy industry, the job stimulus program seeks to strengthen Ohio's manufacturing base and prepare for the industries and products of the future.

• Attracting New Investment: projects capable of bringing new commercially viable energy companies and technologies to Ohio, perhaps original equipment manufacturers of those technologies.
• Building upon Manufacturing Strength: projects that create new jobs and investments that can assist current Ohio manufacturers to retool, retrain and/or expand to become more competitive members of the local, regional and global supply chain for advanced energy technologies.
• Reclaiming Ohio's Heritage of Innovation: projects that can help Ohio innovators and entrepreneurs advance technology development toward commercialization and provide the necessary incentive for that commercialization to occur in Ohio.
• Preparing Ohio's Workforce for the Future: projects with the potential to provide good paying jobs to both Ohio's current and future workforce provide the greatest return on state investment; projects should advance our ability to retain and retrain Ohio workers.
• Expand Opportunities to New Groups/Areas: projects that include groups or regions not traditionally seen as part of advanced energy technology.

See how Neyer is helping their clients save money through sustainable buildings

While new commercial projects have slowed or stalled for many developers, Neyer Properties has focused on the acquisition of existing buildings and redevelopment projects-- both of which have financial benefits and strong environmental benefits by themselves-- but when you add a LEED certified tag to it, you gain even more.

Making sustainable improvements to existing buildings adds value to the building and the surrounding community. Sustainable renovation strategies can help a building use 25% less energy, reduce water use by 50%, deplete fewer natural resources, and preserve infrastructure and green space compared with new construction and greenfield developments.

Renovating and redeveloping existing buildings extend the life cycle of a structure and is seen by many as a key factor in land conservation and reducing the amount of sprawl.
Ridge Pointe, for example, (the former K-Mart site on Ridge Road near Highland Avenue) is one of Neyer Properties' current mixed-use redevelopment projects. The overall master plan includes office 'flex' space in the old K-Mart building, which will be redeveloped into a new two-story medical office building that will be built to LEED standards.

Office space tenants will be able to walk to additional retail and restaurants at the Ridge Pointe site, which provides healthy exercise for them and eliminates the need to drive, further saving the environment by eliminating vehicle emissions.

Christ Hospital recently opened its new Imaging Center at the LEED Certified Red Bank Crossing II, an office building part of Neyer’s larger mixed-use redevelopment site on Red Bank Expressway. Christ Hospital began embracing sustainable building and operations practices about four years ago, and has saved an estimated 15 to 20 percent, or $1.5 to 2 million, since then. Utility costs were reduced by improving electrical and steam heating systems, eliminating paints and carpets containing VOCs, changing out light bulbs, installing waterless urinals and a drip irrigation system, as well as implementing recycling programs, says Rick Perkinson, director of facilities and maintenance at Christ Hospital.

“People are always concerned about the perceived cost to go green, but in our experience, a LEED Certified or Silver building will take less than a year to pay back any additional costs relative to certification,” said Jeff Chamot, development project manager and LEED AP at Neyer Properties. “This is a small upfront price to pay for an office where utility use and bills will be 20 to 50 percent less each year than in traditionally-built buildings.

“Achieving this level of payback does require a holistic approach, however,” he added. “Designing the project sustainably from day one, having the right team in place as far as architects, engineers and contractors, and knowing the LEED certification system well are all important. If you take a project that has already been designed and re-design it for LEED-certification, it will inevitably cost more than one to two percent.”

“We found that we’d hit on the best of two worlds,” says Dan Neyer, president of Neyer Properties. “Not only could we save energy and natural resources, and feel good about our contribution to sustainable living, but we could save our tenants money, too. That’s something everyone can relate to.”

Find out how much you can save by moving to a green office space by using our Green Savings Calculator on our new green webpage: www.Neyer1.com/green! There, you will also be able to learn more of the details that make a building or site sustainable by watching “A Golden Opportunity – Neyer’s solutions for green development.”

Jeff Chamot
Jchamot@neyer1.com

Learn about this and more at the Cincinnati Energy, Efficiency and the Environment Summit on OCTOBER 2, 2009 8AM-noon at the Duke Energy Center http://www.3esummitcincinnati.org/

Local Company Leading New Energy Economy

At a time when most business executives are playing defense by slashing R&D and capital expenditures, there is at least one local company that is playing offense by launching new products and services that cater to emerging markets. Melink Corporation (Milford, Ohio), a firm specializing in energy efficiency for commercial and institutional buildings, has formed a new business unit specializing in renewable energy. The purpose is to help owners reduce their energy costs and carbon footprint by 50% or more and strategically position them as winners in the growing energy economy. Their new business unit is specifically focused on what it considers the most promising renewable energy technologies, ie. those having the greatest potential to go mainstream within the next 5 years. According to Melink these are geothermal heat pumps, solar photo-voltaics (PV), and low-wind turbines. Geothermal heat pumps are for space heating and cooling as well as water heating. They are up to 50% more energy efficient than conventional air conditioning systems and gas furnaces and boilers. The reason this technology has not yet gone mainstream is its incremental first cost. But with growing awareness of the energy savings along with a new 10% federal tax credit, this is about to change. Therefore, Melink is investing in the education and training necessary to become a regional expert in commercial geothermal design and commissioning services. Solar PV systems are for generating electricity from sunlight. They can be roof or ground-mounted and tied directly into the building electrical system to reduce the kW demand and kWh usage. This technology has also not yet gone mainstream because of its first cost. But with an 8-year extension of the 30% federal tax credit, as well as a state grant, accelerated depreciation, and a possible rebate from the local utility, this is also about to change. Therefore, Melink has become a contract manufacturer of Chinese solar modules and is positioning itself as a regional distributor and project developer of medium and large-scale solar power plants. In addition it is developing a small 1 and 2kW pre-engineered system for the residential and light commercial markets. Wind turbines are for generating electricity from wind when the sun isn’t shining. They can be located in business parks, college campuses, farms, and other sites where local zoning permits. Like solar PV systems, they can be tied directly into the building electrical system to reduce the kWh usage. And like solar PV systems, the incentives can be significant. Therefore, Melink has become the exclusive distributor of a Swiss engineered 6.5 kW wind turbine that is designed for low-wind conditions like that which exists in Southwest Ohio. Not only is it efficient at low wind speeds, it serves as a beautiful and inspiring feature for a company’s employees and customers. Steve Melink, President of Melink Corporation, states, “We have demonstrated that a business can truly reduce its building energy costs 50% or more compared to the average. In fact our headquarters is a near-zero energy facility and we have one of the most comfortable and productive work environments of any office in the State of Ohio. “This leads to benefits that go above and beyond the energy savings,” says Steve. “The HR benefit of being able to attract and retain the best and brightest people because of our green building and green mission is invaluable. And the PR benefit of being held up as a leader in the new energy economy is doubly invaluable. These benefits improve the top and bottom line in multiple ways.” Jennifer Sivak jsivak@melinkcorp.com Learn more about Melink and other Company's that are succeeding in the current environment at the Cincinnati 3E Summit - 10.2.09 - http://www.3esummitcincinnati.org/

Clean Energy Jobs in Ohio - Pew Report

http://www.pewcenteronthestates.org/uploadedFiles/Clean_Economy_Report_Web.pdf  

The Pew charitable trust has put out a study on the current jobs and future jobs by state from the clean economy.  The study has been highlighted by a number of politicians in the state, Ohio was one of the top 5 for new jobs.  The study highlights the potential for new development in the renewable energy and energy efficiency.  If you think about the potential to cut the cost that all of us pay for carbon resources, and putting those funds into projects that will put Ohioans to work, the potential to put people to work and build the how economy could be phenomenal.  

What do you think, will a carbon restrained economy be a boon or bust for your Company?  

See how local Company's are ensuring that they succeed at the Cincinnati 3E Summit.  www.3esummitCincinnati.org 

Introduction to the Cincinnati 3E Summit Blog!

Join us this summer for an exciting series of articles from local leaders about opportunities for your organization to go green, reduce energy and waste costs, and meet consumer and supplier expectations brought to you by the Cincinnati Energy, Efficiency and the Environment Summit (3E Summit). The 3E Summit is an educational and networking outreach of the City’s climate action plan designed to show local business, educational, non-profit and religious leaders that healthy business practices can be healthy for your organizations bottom line.
Smart leaders throughout the region recognize the opportunities that the ‘Green Revolution’ offers to their organization. Throughout the summer join us for a series of articles on everything from financing your green projects through tax incentives to what consumers expect from their suppliers so that you can keep your business ahead of the curve.
In addition to helping to educate the local business community, the 3E Summit aims to be the regions foremost green marketplace bringing together local businesses and organizations to create valuable partnerships. If you have an article you would like to suggest or a product or service you would like to let people know about, please post it on this blog or let the blog-master know so that we can obtain more submissions.

So stay tuned for this summer of green learning, topics may include the following:
· Tax incentives to finance your green business or project
· Paying for energy efficiency projects for your business
· Legal risks of climate change
· Programs available from Duke Energy to help you cut your utility bills
· Green buildings – what are they and what are the benefits?
· Geothermal projects to reduce your heating and cooling bills
· Waste reduction in manufacturing to reduce costs
· Green roofs – what are they and what are the benefits?
· Green IT – reducing your Company’s Information Technology operating costs at all levels
· The basics of how to calculate your Company’s carbon footprint
· Reducing the cost and carbon footprint of your vehicle fleet
· The Green attributes that large Company’s and government agency’s expect from their suppliers

So stay tuned for these and other exciting topics, and don’t forget to register for the Cincinnati 3E Summit on October 2nd, 2009 at the Duke Energy Center.