Kristina Tridico is a partner at Ice Miller LLP.  Her primary areas of concentration are corporate transactions, environmental and sustainability law.  Kristina is chair of Ice Miller's Green Industries Initiative.

At least that is Sen. Bob Corker's (R-Tenn.) take on carbon sequestration (as reported in BNA's Daily Environment Report) who says he finds it hard to believe that the infrastructure necessary to make carbon capture a reality, such as pipelines and right of way access, will ever come to pass.  His remarks are skeptical of the Senate Energy and Natural Resources Committee chairman Jeff Bingaman's (D-N.M.) proposal to add a bill establishing a national carbon capture and sequestration program.  The bill (S. 1013) would establish a national indemnity program through the Department of Energy (DOE) for up to 10 commercial scale carbon capture and sequestration projects. While the Department of the Interior is preparing a report that provides the framework for geological sequestration on public lands, the legislation authorizes DOE and the Environmental Protection Agency and the Department of Transportation to establish a grant program for state agencies.  The secretary of energy could take ownership of, and assume potential liability for, carbon dioxide injection as part of DOE sequestration demonstration projects according to Sen. Lisa Murkowski (R-Ala.). From a legal perspective the risk of loss of carbon capture and the issues surrounding indemnity have been a sticking point for potential projects.  Proponents of projects have been looking for certainty on what programs and agencies will govern the carbon capture programs.  In addition to the indemnity, the bill includes a legal framework for closing down a geological storage site to address these concerns.  Obviously not everyone is sold, as Sen. Corker also inquired "Are we smoking something?" and the Obama administration officials testifying before the committee said that DOE and the Interior Department are not prepared to take a position on the bill at this time.

In the meantime, donkey owners everywhere are tying them to fence posts; just in case.

Indiana Department of Environmental Management, DieselWise Indiana  - Application Deadline is May 15, 2009

The DieselWise program is grant availability for projects designed to significantly reduce diesel emissions across Indiana.  The total estimated funding for this competitive grant opportunity is in excess of $2,000,000.  DieselWise Indiana anticipates awarding cooperative agreements from this announcement ranging from $25,000 to $250,000, subject to availability of funds and the quality of proposals received.  Additional funds may be available in the near future.  Project proposals submitted under this grant announcement may be awarded for funding from these additional funds.  Preference will be given to applicants that are willing to provide a financial match and/or in-kind match, provide actual historic idling hours pre-installation and post installation of idle reduction technologies, along with a commitment to maximize the use of any installed diesel emission reduction technology.  Information can be found at http://www.in.gov/idem.5255.htm

USEPA Small Business Innovation Research Program - Solicitation closes May 20, 2009

The U.S. Environmental Protection Agency’s (EPA) Small Business Innovation Research Program supports small businesses in developing new environmental technologies.  The EPA anticipates the total funding that will be available for Phase I projects issued under this announcement will be $1.8 million. A total of $70,000 is available in funding for each EPA Phase I award. Recipients of Phase I awards will be eligible to compete for a much larger (up to $295,000) two-year Phase II award. Companies with fewer than 500 employees are eligible.  Solicitation closes May 20.

SBIR Phase I green building materials and systems research topics are:

• Building Materials and Site Management
• Energy and Indoor Environmental Quality
• Water Use and Management

HUD Brownfields Economic Development Initiative Funds - Application Deadline June 16, 2009
 
The Department of Housing and Urban Development (HUD) published a notice of availability of $20 million in Brownfields Economic Development Initiative (BEDI) funds (74 FR 20494) on May 4.  David Kaminsky, who works on development grants in HUD's Office of Economic Development, said the funds will be awarded competitively, and individual grants are capped at $2 million. BEDI grant funds are targeted for use in redeveloping brownfield sites as part of larger urban economic development projects, according to HUD. Brownfields are underutilized, abandoned or vacant sites where expansion or redevelopment may be burdened by confirmed or suspected environmental contamination, according to HUD. Kaminsky said BEDI grants must be used in conjunction with a new guaranteed loan under Section 108 of the Housing and Community Development Act. Section 108 is the loan guarantee provision of the Community Block Grant Program administered by HUD. The application deadline is June 16. The funds are coming from fiscal year 2008 and fiscal year 2009 appropriations, according to HUD. See http://www.hud.gov/offices/cpd/economicdevelopment/programs/bedi/funding09/index.cfm.

Serendipitous timing or well-planned launch, the Energy Systems Network (ESN) launched today at a press conference attended by Governor Daniels. The ESN is an economic development initiative for the clean-technology sector. ESN is the latest economic development initiative under the Central Indiana Corporate Partnership, which also houses Conexus (the manufacturing/logistics initiative) and BioCrossroads (life sciences). The dialogue on clean energy received a boost this week with the introduction of the Waxman-Markey comprehensive energy legislation. Playing off the theme that carbon-capture legislation is coming, even as early as this session, Jim Rogers, Duke Energy President and CEO, highlighted the need for clusters addressing energy technology by saying that groups like the ESN need to connect and convene in order to solve the energy issues facing not only our generation, but generations to come. Highlighting his Princeton, Ind., roots and his grandson at Purdue, Mr. Rogers stated that Indiana has the configuration of technology companies, know-how and passion to turn energy vision to reality. Committing $1M in funds from Duke over three years, Duke is a partner, with IPL and others, in one of the first ESN initiatives announced, the power plug-in initiative, to create a vehicle system connected to the smart grid. Allison Transmission, Cummins and EnerDel lead the contributors to a Hoosier heavy hybrid program for medium and heavy duty trucks. Governor Daniels reminded the audience that there are not enough BTUs from these sources to replace coal, so don't think Indiana is not going to be a player in the energy economy, but that these technologies are an important supplement and a driver of jobs and the economy in Indiana. An all-star board including Mr. Rogers, Mike Hudson of I-Power, President Dr. Cordova of Purdue, Charles Gassenheimer of EnerOne and others joined the Governor and Mr. Rogers at the event. Joe Loughrey, formerly of Cummins, announced that he will chair the ESN.

President Obama set out his priorities regarding his vision of a clean energy future. In a press release prior to meetings with "clean energy entrepreneurs and leaders of the research community" the president stated that it was time to make investments in cutting-edge research that will establish the foundation for America's future economic prosperity. The press release included the follwoing:

FACT SHEET: INVESTING IN OUR CLEAN ENERGY FUTURE

Today, President Obama will meet with clean energy entrepreneurs and leaders of the research community to discuss his strategy for building a clean energy economy and creating the industries and jobs of the future.

The American Recovery and Reinvestment Act (ARRA) and his FY10 budget dramatically increase investment in cutting-edge research, the development and deployment of clean energy technologies, and incentives for private sector research and development (R&D).  These investments will establish the foundation for America’s future economic prosperity, reduce our dependence on foreign oil, and help combat climate change.

The ARRA includes $39 billion in energy investments at the Department of Energy and $20 billion in tax incentives for clean energy, including:

• The creation of an advanced research agency for energy, modeled after the Defense Advanced Research Projects Agency which developed the Internet.
• Support for Energy Frontier Research Centers, which could lead to breakthroughs in energy storage, super-efficient engines, and solar cells as cheap as paint.
• Supporting U.S. manufacturing of advanced batteries needed for plug-in hybrids, renewable energy backup, and other applications.
• $1.2 billon for research infrastructure for the Department of Energy’s national labs, which is being announced by Secretary of Energy Steven Chu today at Brookhaven National Laboratory. 

The  president’s 10-year budget also proposes almost $75 billion to make the Research and Experimentation Tax Credit permanent, stimulating private-sector investment in R&D and keeping the U.S. economy at the cutting-edge of 21st century technologies:

• Studies have shown that every dollar of tax benefit stimulates as much as an additional dollar of private R&D spending in the short term and two dollars in the long term.  Every one dollar of R&D adds two dollars of benefit to our economy and society as a whole.
• Two-thirds of benefits of the credit are attributable to salaries of U.S. workers performing U.S.-based research, and the credit stimulates R&D spending by more than 11,000 small, medium and large firms.
• The credit has been extended 13 times with some extensions lasting just six months, and has also been allowed to lapse for almost a year - undermining its effectiveness because companies can't count on it. 

Several of the technologies in the program today will be on display, highlighting the importance of R&D investment in building a clean energy economy, including:

• Orion Energy "Apollo Light Pipe:" The Apollo Light Pipe collects and focuses sunlight, bringing natural light indoors without consuming electricity and replacing traditional lighting for large portions of the day.  Coca-Cola and Sysco have installed this system, saving enough energy to power over 500 homes for a year.
• Solyndra Solar Panel: Solyndra is the first recipient of the DOE Loan Guarantee recovery program, announced last week.  Their solar panel is a unique cylindrical design that maximizes direct sunlight and absorption. 

The program will highlight success stories from R&D investments in the lab to job creation. Paul Holland, the vice chairman of the board and lead investor for Serious Materials, will introduce the president and share the story of Serious Materials, the leading energy-saving building materials company in the U.S.

• Serious Materials has four plants in California, Colorado, Pennsylvania, and plans to reopen the old Republic Windows plant in Chicago this Spring.
• Earlier this month, Serious Materials re-opened a previously shuttered plant in Pennsylvania, and is hiring back over 100 union workers in the next couple of months.
• Serious Materials’ products exceed current Energy Star standards by up to 400 percent and can reduce heating and cooling energy costs by up to 50 percent.  Five percent of U.S. energy use is lapsed through inefficient window glass.

Update GHG Rule Published April 10th

The EPA's proposed Mandatory GHG Reporting Rule was published in the Federal Register on Friday, April 10, 2009.  There will be a second hearing on April 16, 2009 in Sacramento, CA (Sacramento Convention Center, 1400 J Street, Sacramento, CA 95814). Comments must be in to EPA by June 9, 2009.

--------------

The Environmental Protection Agency, on March 10, 2009, issued a proposed rule for a mandatory federal greenhouse gas reporting program. The new reporting requirements would apply to suppliers of fossil fuels and industrial chemicals, manufacturers  of motor vehicles and engines, as well as direct emitters of greenhouse gases with emissions equal to or greater than a threshold of 25,000 metric tons per year.   The EPA estimates that approximately 13,000 facilities would be covered under the reporting program.

EPA indicated that in developing the program they considered work underway in many states and regional initiatives as well as voluntary programs.  Seventeen  states have developed, or are developing, mandatory GHG reporting rules. Reporting requirements have taken effect in 12 states as of 2009, the remaining are set to begin in 2010 or 2011. However, the proposed rule includes manufacturers of mobile sources and engines as required to report emissions from the vehicles and engines they produce, generally in terms of an emission rate, which is not typical in the reporting schemes considered by the agency.

The gases covered by the proposed rule are carbon dioxide (CO2), Methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexaflouride (SF6), and other fluorinated gases including nitrogen trifluoride (NF3) and hydrofluorinated ethers (HFE).  The public has 60 days to comment on the proposed rule after it is published in the federal register. Comments are likely to address the mobile source requirement, the cost associated with the frequency and verification of reports included in the proposal and the thresholds for reporting.

Blog written by Paul Jones.

Tax Provisions in the American Recovery and Reinvestment Act Provide Relief to Taxpayers and Promote Clean Technology and Renewable Energy
As expected, the United States Congress passed, and last week the President signed into law, sweeping economic recovery legislation that expands existing, and establishes new, tax incentive programs to promote clean technology, renewable energy and green jobs.  The legislation also provides businesses tax relief in certain areas.

Read the entire alert about the American Recovery and Reinvestment Act.

The American Recovery and Reinvestment Act (ARRA) is being scrutinized on every level, and the overall assessment is that the bill is good for green.  From production tax credits to grants, weatherization to infrastructure investment, money is there to be received but you have to work quickly, and through the proper processes, to receive the funding.  Watch for tight timelines and meet the dates!

Some programs are being implemented by the Department of Energy.  On Thursday Energy Secretary,  Steven Chu, announced he intends to streamline the process by which the Energy Department distributes funding, with the goal of dispersing 70 percent of its funds from the ARRA by the end of 2010.  He is naming Matt Rogers as a senior adviser to implement the new department reforms which include rolling out appraisals of applications for loan guarantees, rather than waiting for the application deadline to evaluate them.  He said that the loan application forms will be simplified and the department will speed up loan underwriting by using outside partners.  The Treasury Department is also tasked with crafting regulations to implement the stimulus funding.

Specifically for Indiana, you should know the process for the:

Indiana Brownfields Program - Contact a Petroleum Remediation Grant consultant in your region.  A potential project list will be compiled by March 4, 2009. Right now the list is focused on petroleum contaminated sites, however the program may be able to open site consideration to hazardous substances as well.

Indiana State Revolving Fund - Drinking Water and Wastewater programs.  The Indiana Finance Authority (IFA) will be provided approximately $94 million to fund wastewater infrastructure projects and about $26 million to fund Drinking Water infrastructure projects.  The IFA created the SRF Loan Program Recovery Loan and Grant Program.  All standard SRF Loan Program requirements apply. Fixed rate loans (20- year terms) and grants are available.  Make sure that your community has completed a Preliminary Engineering Report and have it filed with the SRF Loan Program by March 13, 2009.

As always think about where the remainder of the financing is going to come from.  For instance, if you are applying for the 30 percent Department of Energy grant for eligible wind, biomass, geothermal and solar plants, make sure that you have a plan in place to fund the remaining 70 percent.  Start talking with your investment and private equity team to craft the entire package.

Blog written by Paul Jones.

Congress is in the process of passing economic recovery legislation that would (if enacted) expand existing, and establish new, tax incentive programs to further those goals.  Specifically, the American Recovery and Reinvestment Tax Act (the Act) contains several provisions that would provide expanded or additional sources of funds for green projects.  If enacted in its current form, the Act would, among other things:

• Establish a 30% credit for investment in facilities that manufacture advanced energy property;
• Extend Code Section 45 renewable energy production tax credits by increasing the placed in service date for three years (through 2012 for wind and 2013 for other qualified facilities);
• Allow temporary election to claim 30% investment credit under Code Section 48 in lieu of the Code Section 45 production tax credit; and
• Expand the volume for Clean Renewable Energy Bonds (CREBs); and
• Expand the volume for the recently established Qualified Energy Conservation Bonds (QECBs), which like CREBs, are tax credit bonds.

The Act contains several other provisions, including those that would expand the New Markets Tax Credit program, revise certain tax-exempt bond limitations, and provide relief for cancellation of debt income.

Read the full text of an Ice Miller alert which contains more details on the points above.

And it was a whirlwind, no pun intended... Wednesday at the State House,  the Indiana General Assembly was enlightened (really, this is too easy) by a group of local and national experts on topics ranging from photovoltaic opportunities, the Energy Systems Network and lithium batteries to a utilities take on where energy is headed.  One common theme - in these tight capital markets regulation is necessary to jump-start the innovation and, if companies (and/or ratepayers, as the case may be) are going to be asked to foot the bill. The providers want cost recovery and the ratepayers are going to want to make sure that they are not disproportionally impacted.  The AEP representative stated that the time to act in support of low/non-carbon technologies is now.  He stated that AEP believes that the evaluation of a new nuclear power plant (1600 MW unit) is favorable in relation to continued use of fossil fuels, but caveated that any development on the issue would require a favorable regulatory environment (including cost recovery).  Jesse Kharbanda of the Hoosier Environmental Council noted that a core weakness on renewables in Indiana right now is that there is no renewable energy policy at the state level. He provided that Indiana is the only state in the Industrial Midwest without a renewable energy standard.   A second common theme was the discussion of "zero-carbon emitting technologies" and innovation that is growing around these areas. The presenters noted that these are key market opportunities.  According to the presenters, the lack of a Renewable Energy Standard (RES) means that Indiana is losing out.  Go to http://www.in.gov/legislative/session/video.html to see a recording of the days events.

Following up on two major campaign themes, on Monday, January 26, President Obama stated that, "It will be the policy of my administration to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs."  He directed the Environmental Protection Agency (EPA) by memorandum to Lisa Jackson, the new EPA administrator, to reconsider California's request for a waiver so that it can impose rules for automotive greenhouse gas emissions more strict than those of the federal government, according to the Wall Street Journal. Under the federal Clean Air Act, California needs an EPA waiver in order to set pollution standards that are stricter than other federal standards.
 
So goes California, so goes other states?  While a final decision by EPA is not expected for several months, with the number of states that the "Bush administration had left idling on clean cars" (according to Chris Kearns of Environment Rhode Island) the states are waiting to act.  Thirteen other states have already passed laws calling for the adoption of new rules as soon as the waiver is granted.  However, not all of Indiana's neighbors are thrilled with the prospect.  Sen. George Voinovich, R-Ohio, suggested that this was akin to hitting U.S. automakers when they are down.  "I am fearful that today's action will begin the process of setting the American auto industry back even further," replied Voinovich in a written statement.  "The federal government should not be piling on an industry already hurting in a time like this."  President Obama refutes the assertion, saying "Let me be clear: Our goal is not to further burden an already struggling industry," Obama said. "It is to help America's automakers prepare for the future."  Obama also directed his administration to get in place new fuel-efficiency guidelines for the auto industry in time to cover 2011 model-year cars.
 
Meanwhile, the Associated Press reports that Secretary of State Hillary Rodham Clinton on Monday, February 2 will appoint a special envoy for climate change as the Obama administration moves to restore America's credentials in environmental policy, according to U.S. officials familiar with her decision.

According to the summary of the American Recovery and Reinvestment Bill by the Committee on Appropriations (Obey, D-WI, Chair) action, and action now, is needed to pull the economy out of a "crisis not seen since the Great Depression." The bill contains targeted efforts to have clean, efficient American energy, summarized by the Committee as:

CREATE JOBS WITH CLEAN, EFFICIENT, AMERICAN ENERGY
To put people back to work today and reduce our dependence on foreign oil tomorrow, we will make investments aimed at doubling renewable energy production and renovate public buildings to make them more energy efficient. America’s energy shortcomings present a huge opportunity to put people to work in ways that will transform our economy.

• Reliable, Efficient Electricity Grid: $11 billion for research and development, pilot projects and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid making it more efficient, secure and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation.
• Renewable Energy Loan Guarantees: $8 billion for loans for renewable energy power generation and transmission projects.
• U.S. General Services Administration (GSA) Federal Buildings: $6.7 billion for renovations and repairs to federal buildings including at least $6 billion focused on increasing energy efficiency and conservation. Projects are selected based on GSA’s ready-to-go priority list.
• Local Government Energy Efficiency Block Grants: $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.
• Energy Efficiency Housing Retrofits: $2.5 billion for a new program to upgrade HUD sponsored low-income housing to increase energy efficiency, including new insulation, windows and furnaces. Funds will be competitively awarded.
• Energy Efficiency and Renewable Energy Research: $2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities to foster energy independence, reduce carbon emissions and cut utility bills. Funds are awarded on a competitive basis to universities, companies and national laboratories.
• Advanced Battery Loans and Grants: $2 billion for the Advanced Battery Loan Guarantee and Grants Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America should lead the world in transforming the way automobiles are powered.
• Energy Efficiency Grants and Loans for Institutions: $1.5 billion for energy sustainability and efficiency grants and loans to help school districts, institutes of higher education, local governments and municipal utilities implement projects that will make them more energy efficient.
• Home Weatherization: $6.2 billion to help low-income families reduce their energy costs by weatherizing their homes and make our country more energy efficient.
• Smart Appliances: $300 million to provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills.
• GSA Federal Fleet: $600 million to replace older vehicles owned by the federal government with alternative fuel automobiles that will save on fuel costs and reduce carbon emissions.
• Electric Transportation: $200 million for a new grant program to encourage electric vehicle technologies.
• Cleaning Fossil Energy: $2.4 billion for carbon capture and sequestration technology demonstration projects. This funding will provide valuable information necessary to reduce the amount of carbon dioxide emitted into the atmosphere from industrial facilities and fossil fuel power plants.
• Department of Defense Research: $350 million for research into using renewable energy to power weapons systems and military bases.
• Alternative Buses and Trucks: $400 million to help state and local governments purchase efficient alternative fuel vehicles to reduce fuel costs and carbon emissions.
• Industrial Energy Efficiency: $500 million for energy efficient manufacturing demonstration projects.
• Diesel Emissions Reduction: $300 million for grants and loans to state and local governments for projects that reduce diesel emissions, benefiting public health and reducing global warming. This includes technologies to retrofit emission exhaust systems on school buses, replace engines and vehicles, and establish anti-idling programs. 70% of the funds go to competitive grants and 30% funds grants to states with approved programs. Last year EPA was able to fund only 27% of the applications received.

See the entire Committee on Appropriations summary. We'll all be watching Congress as they consider the bill in the next few weeks and its environmental and green provisions. Stay tuned for action!

Kelly Doria, an associate at Ice Miller, wrote this blog.  I thought it was interesting.

Although the issue of climate change disclosure has generated much attention over the last few years, the SEC has yet to establish specific guidance on climate change related securities disclosures.  But, this inaction has not stopped the state of New York from taking the lead by demanding climate change disclosures in public securities filings.

The New York State Securities Law, commonly known as the Martin Act, principally focuses on investigation and enforcement powers in preventing the investing public from fraud (compared to other states' Blue Sky laws that focus on the registration of securities).  The Martin Act permits the New York attorney general to file civil or criminal charges of fraud in connection with the offer and sale of securities in and from the state of New York.  In September 2007, New York Attorney General Andrew Cuomo subpoenaed the executives of several public energy companies (AES Corporation, Dominion Resources, Inc., Xcel Energy, Dynegy Inc. and Peabody Energy) for information on whether public disclosures to investors in filings with the SEC adequately described the companies' financial risks related to the emissions of global warming pollution.

In an agreement announced October 23, 2008, Dynegy Inc., a Delaware corporation headquartered in Texas and traded on the NYSE, agreed to provide disclosure of material risks associated with climate change in its next annual report on Form 10-K.  Pursuant to the agreement, the required disclosure includes an analysis of material financial risks from climate change related to:

• Present and probable future climate change regulation and legislation;
• Climate-change related litigation; and
• Physical impacts of climate change.

Dynegy also committed to disclosing:

• Current carbon emissions;
• Projected increases in carbon emissions from planned coal-fired power plants;
• Company strategies for reducing, offsetting, limiting or otherwise managing its global warming pollution emissions and expected global warming emissions reductions from these actions; and
• Corporate governance actions related to climate change, including if environmental performance is incorporated into officer compensation.

A similar agreement was also reached with Xcel Energy in August 2008, while the investigations continue for AES Corporation, Dominion Resources, Inc. and Peabody Energy.

Voluntary climate change disclosures is a likely trend for oil and gas companies in 2009, but expect these disclosures to expand to other industries in the near future.

Or so said John Doerr at the U.S. Senate Committee on Environment & Public Works briefing titled, "Investing in Green Technology as a Strategy for Economic Recovery."  The noted venture capitalist, a partner at Kleiner Perkins Caufield & Buyers, urged Chairman Barbara Boxer (D-CA) and the committee to encourage the enactment of vital policies to ensure speed and scale in addressing green technology.  Advocating for a unified national smart grid and a price on carbon/carbon emissions, among other policy objectives he identified as vital, Mr. Doerr stressed that the United States must account for the cost of emitting greenhouse gases.  Stating that, "battery-breakthrough's are the holy grail of greentech," Mr. Doerr cautioned that ingenuity and entrepreneurship must be fostered and developed domestically so that the United States is not left in the dust of its global competitors.  Mr. Doerr's remarks followed the introduction by Tom Friedman, author of Hot, Flat and Crowded: Why We Need a Green Revolution, who in colorful terms described the need to simulate massive innovation by a price signal.  Mr. Friedman did not advocate for a mechanism but prescribed that it must be accurate in speed, scope and scale.   After all, he reminded the panel, Green IS the new Red, White and Blue.  For a full replay of the hearing, go to http://epw.senate.gov/public/ under the "majority" page and view the recent webcast.

President-elect Barack Obama's appointments for key environmental and sustainability posts are getting mixed reviews.  Commentators are varying from saying this is a "sea-change" from the Bush postings to noting that the appointments are seasoned government insiders. The green team includes:
 
Energy Secretary - Steven Chu, professor of physics and molecular and cell biology at UC Berkeley and director of the Lawrence Berkeley National Laboratory. Mr. Chu's appointment signals a focus on science by the administration, but some have noted that he does not have the political credentials to be effective. Having called coal "his worst nightmare," Midwestern states like Indiana will have to closely follow his coal policy and his stated interest in cap-and-trade regulation.
 
Assistant to the President for Energy and Climate Change (Energy "Czar") - Carol Browner, former EPA administrator.  Noted as "well-vetted and safe" she was also widely criticized during her tenure with the Clinton administration as remaining silent during key determinations on EPA programs. However, Ms. Browner has clearly impressive credentials and is well-known to those inside Washington and in the environmental community generally.
 
EPA Administrator - Lisa Jackson, Governor Jon Corzine's chief of staff, previously head of New Jersey's Department of Environmental Protection. Ms. Jackson brings the view of the east coast in to the green team. So far she is the least well-received of the appointments, with environmentalists criticizing her track record at the state.
 
Chair, White House Council on Environmental Quality - Nancy Sutley - deputy mayor, Los Angeles. Ms. Sutley is another Californian in the mix. With Boxer and Waxman chairing the key legislative committees, west coast voices are now the power block on climate change.

Interior Secretary - Ken Salazar, Colorado Senate, is being criticized by environmentalists for his ties to ranching and traditional energy policy and his record in the Senate.

Media outlets are reporting that President-elect Obama delivered a videotaped message to California Governor Schwarzenegger's climate change summit vowing quick action to curb emissions and engage in international talks.  Does this mean that climate change legislation is coming?

Conventional wisdom has been that given the current fragile economy it would be unlikely that Congress could be able to enact a cap-and-trade regime until the economy recovers.  However, according to MSNBC, Obama's message told the scientists, executives, governors and foreign officials gathered at the conference that "[y]ou can be sure that the United States will once again engage vigorously in these negotiations, and help lead the world toward a new era of global cooperation on climate change."  (See Obama: Warming must be tackled now at www.msnbc.com)  Obama said that he will establish strong annual targets that set the United States on a course to reduce emission to their 1990 levels by 2020 and reduce them an additional 80% by 2050.  He said that his goal of $15 billion a year in incentives to get private capital moving towards clean energy technologies would produce five million green jobs that "pay well and can't be outsourced."

Pundits have been saying that Congress is not likely to act on a bill to tackle global warming.  However, that does not stop the new administration from enacting administrative actions.  Options for climate change regulation include not only legislation on cap and trade policy, but executive orders and regulation, such as pursuant to the clean air act, or litigation based changed brought by public interest environmental law groups to force judicial decisions on these issues.  With opposition to regulation under the Clean Air Act for greenhouse gas emission growing, the opponents are bracing themselves for the initiation of Environmental Protection Agency (EPA) rulemakings and are scrutinizing the EPA's proposed advanced rulemaking.

In any case, President-elect Obama feels the time has come..."Now is the time to confront this challenge once and for all," Obama concluded.  "Delay is no longer an option.  Denial is no longer an acceptable response.  The stakes are too high.  The consequences, too serious."

Blog written by Mark Grant.

Last week, Congressman Dan Burton held a congressional hearing on green initiatives at the Keep Indianapolis Beautiful offices.  This hearing brought together various constituents to discuss primarily green building.  There were two panels presenting information.  The first panel was primarily composed of LEED-certified individuals from the architectural and construction industries.  The second panel, on which I spoke, included David Pittman from the Governor's Office, Kären Haley from the City of Indianapolis, Alexia Donahue-Wold from the City of Carmel, and Dave Sommer from Trane.  Kären was recently appointed by Mayor Ballard as the Director of the new Office of Sustainability for the City of Indianapolis.

This congressional hearing was a great way for the various constituents to discuss green initiatives not only with and among each other, but also to present issues and concerns to the Congressman.  Various members of the Congressman's staff were on hand, accumulating information.  These constituents now have a baseline for conversations with the Congressman's office on these various green initiative issues.

It was exciting to see how this green initiative discussion has moved into the forefront of these various governmental offices - the State, major cities and the Congressman's office.  The Congressman was very interested in discussing ideas and finding ways to incentivize developers and owners to undertake green building strategies in development.  One of the major topics discussed with green building was energy conservation and timeliness of energy conservation with the current world markets.  I look forward to the continuing dialogue among the various constituents.

I received a letter today as a US Green Building Council (USGBC) member from Rick Fedrizzi the CEO, President and Founding Chair of USGBC.  It was interesting to read his take on what will happen to the green building movement in a world where the financial crisis has stolen the headlines.  Mr. Fedrizzi's position is that it is "greed that led the world economy into crisis."  He takes that position that this greed will not defeat our commitment to good work.  "Fear will not dominate our agenda.  And our commitment to change - even in the face of so great a challenge - will not waver."

Mr. Fedrizzi continues that "Change doesn't wait on Washington. And it doesn't depend on Wall Street. Change comes from within."  The green building movement has been demonstrating that fact for more than 15 years.  Before there was a single government green building policy, before the business community stood up and took notice, before there was a LEED - there was you. Thousands upon thousands of committed individuals dedicated to doing better by doing good.  You've built this movement.  You're building sustainable communities.  And every single one of us has a contribution to make towards pulling our country out of this crisis."

I think that Mr. Fedrizzi's justification can be used to contemplate that more than green building - but green development, clean technology and the associated green jobs  -  will pave the way for a brighter economic future.  "It will save money.  It will save energy.  It will help save our climate.  And directly relevant to today's economic environment, it will create good, green, local jobs."  His example is that USGBC estimates that a 100% commitment to greening existing commercial buildings alone would create more than 1.5 million new opportunities for employment for out of work Americans.

While I think it is oversimplifying social, business and cultural issues to say that greed got us here, I can agree that green can lead us out.  Doing well by doing good is both a sustainable business and sustainable environmental message.  If getting everyone in our business communities to be "greedy" - "greedy" in energy savings, "greedy" in job creation in our state, "greedy" in the reduction of greenhouse gas emissions, then I say environmental greed is good.

With all of the talk of economic stabilization, recession, toxic debt, and presidential debates, green development discussions can get pushed to the curb. However, climate change is a hot topic among the presidential contenders. As part its efforts to address the country's economic situation the House approved H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the Act) on October 3rd. The Senate passed the bill on October 1, 2008. President Bush signed the legislation.   While the purpose of the Act was not "green" legislation, several provisions of the Act, especially those relating to bond development, were included and further green development opportunities. As summarized by the National Association of Bond Lawyers the provisions include:

• Another $400 million in Qualified Zone Academy Bonds (QZABs) authority for 2008 and 2009;
• $800 million in new Clean Renewable Energy Bonds (CREBs) authority and extension of the termination date for existing CREBs by one year;
• Extension and modification of the authority to issue Green Building and Sustainable Design Project Bonds (Green Bonds) until 2012;
• Tax-exempt bond relief to federally declared natural disaster areas in 2008 and 2009; and
• A new category of tax-credit bonds called Qualified Energy Conservation Bonds (see www.nabl.org). These and other provisions of the legislation address climate change and sustainability matters. Stay tuned for further developments!