Energy PolicyEnergy Policy

No longer to be ignored is the radical shift in the US policy towards CO2 and five other industrial pollutants.

Businesses may need reminders that participation in reducing energy footprints, doing more for less and meeting carbon neutral goals may become mandatory. In other words energy regulation in the first form will be EERS, which can become a painful experience for businesses that don't have a viable energy plan or are latent in adopting efficiency, conservation and alternative energy. At VoiceCon Orlando I heard very little about energy, efficiency or the word "green." No longer to be ignored is the radical shift in the US policy towards CO2 and five other industrial pollutants, as reported by the WSJ.Financial Times reports that Professor Jeremy Rifkin also a US energy advisor, said, "Obama has the program but not the roadmap. The EU has the map but not the money."

Savor this thought for a moment, including more government regulation, because inevitably this tends to mean higher prices for energy. My state (Maryland) is reacting to the demand to build more power plants and they are rescinding their stance on "no wind power sites" in the Western Maryland region by granting construction of a limited wind farm project given a set timeline to produce specific amounts of energy.

With the global economy in the current mess it's in, it shouldn't mean that energy issues be put off for better times. In fact, the time seems right now. Companies building clean energy plants may obtain financing and government backed loans. Companies spending on private solar, wind, geothermal and other alternative energy projects to reduce their internal energy footprint will likely continue to receive tax incentives. Navigating through the government process isn't going to be smooth however. According to the WSJ, the Energy Department hasn't approved any loan applications since the loan program started in early 2007. For those that do find their way, the tax credits along with any grants/incentives are worthy and do reduce the TCO. But you will need patience and more than luck. As Professor Rifkin observes, the question really is do you have an energy roadmap, resources to implement it and a policy to keep it in check? The policies act as guidelines to keep the company (or government or users) on the straight and narrow with the goals set forth in the energy plan.

Energy efficiency by businesses shouldn't be any surprise. It's another metric showing how well or not so well you run your businesses, create products or services and deliver and sustain them and your infrastructures. Then again there is more than an underlying threat to businesses since a new energy bill including energy efficiency and climate change legislation is likely to roll out. Ready or not, be prepared to spend money on efficiency but even more money on compliance. The Obama administration didn't forget about stimulus money for energy either.

The federal tax code is very specific on energy tax credits and when you can take them. We paid for our initial solar hot water system in December 2007 but the system didn't go in service until February 2008 due to delivery delays. So the federal tax credit wasn't realized until 2008. Then because of other construction (my new offices) we could not obtain the "final inspection" on the entire job until August 2008. Even though the solar hot water system (SHWS) was in service, the final inspection certificate wasn't issued until August 2008, and this meant a delay in receiving the grant money we applied from the State of Maryland that was finally received in February 2009. The Maryland Energy Administration (MEA) delayed our funds even further. A clerk at the MEA insisted that we did not have an inspection since the county inspector did not leave a "sticker." The folks at the county were kind enough to provide documentation to the MEA and it still meant several weeks of phone calls and emails chasing the MEA. In the Balance of Power, I mentioned that some local (county) and State and Federal energy policies are not aligned with one another. I also noted in Challenging the System to Heal & Green Itself" the mess that our national energy system and government policies are in--come to think of it, if you compare the economic meltdown to energy, the same ineffective legislation and polices are in effect hindering progress and we still face huge infrastructure improvements at taxpayers' expense. Just as in telecom and finance--the policies and legislation are outdated, cumbersome, contradictory, contain elements of protectionism for jurisdictions and are grossly inconsistent.

We continue to monitor our energy usage and as I stated previously, anyone--individual, company, corporation, government regardless of how small or large you are, you will reach a point of practical maximized efficiency. Realize early on that as a business your energy demand will contract and expand, as does business. Then, you can't keep dumping dollars into newer or better energy improvements because it's not likely to remain sustainable since everything you buy has a practical life cycle. This doesn't negate the need to create your own power plants because this is when you begin to think how to create your own energy to offset the inevitable rise in future energy (not gasoline for vehicles) prices and increased regulation from State and Federal government. You also need to have in place effective company policies that will prevent future actions that can vaporize your past energy efficiency accomplishments. Any new construction or acquisitions of gear need to meet higher standards. Otherwise your efficiency will head south and your bills north leaving everyone wondering why investment of resources were made into energy efficiency to begin with.

Management will always require an allocation of resources and a good plan (roadmap) both near and longer term. Without proper policies in place, spending money on energy efficiency can become a money pit especially when IT or other company ventures go against the idea of reducing energy consumption in favor of expansion or growth.

Environmental regulations will change faster than unifying the national electrical grid. This spells trouble for businesses creating CO2 and other identified pollutants. While the White House and Capitol Hill continue to burn coal in D.C. (past 99 years) to power their needs you can bet that the challenges won't be easy for them either if they continue to exempt themselves from their own new policies. Now my hat goes off to AT&T for investing in the new generation of "long lines" that I think does help green the planet. The next time you drive by one of their towers (I do everyday) look up and give it some thought. I'm not trying to go over the top here but you need to also know that copper isn't sustainable under the new US policies unless the purveyors of copper get exemptions too.No longer to be ignored is the radical shift in the US policy towards CO2 and five other industrial pollutants.