“Green Shoots” on Climate Change?

With the entire U.S. political world engaged in handicapping the likely outcome of the health care reform debate, while others focus on the Obama administration’s impending decision on strategy and troop levels for Afghanistan, there hasn’t been much attention paid outside advocacy groups to prospects for action on climate change legislation (passed, as you might recall, by the House during the summer).

The general prognosis has been pretty negative, in part because of the extreme difficulty encountered in getting the revised Waxman-Markey legislation through the House (requiring compromises that left a lot of advocates cold or lukewarm), and in part because the Senate was so absorbed with health reform.

But last weekend the leading Senate climate change legislation advocate, John Kerry, threw a change-up that will at the very least require a recalibration of expectations, by signing onto a New York Times op-edwith Republican Sen. Lindsay Graham offering a new “deal”: combining a cap-and-trade system for carbon emissions with provisions liberalizing offshore oil drilling and relaxing regulations on nuclear power development.

The op-ed is worth reading in its entirety, but aside from offering conservatives the carrot of more U.S. oil and nuclear power, it also bluntly threatens the stick of unileratal action on climate change by the Obama administration:

Failure to act comes with another cost. If Congress does not pass legislation dealing with climate change, the administration will use the Environmental Protection Agency to impose new regulations. Imposed regulations are likely to be tougher and they certainly will not include the job protections and investment incentives we are proposing.

The message to those who have stalled for years is clear: killing a Senate bill is not success; indeed, given the threat of agency regulation, those who have been content to make the legislative process grind to a halt would later come running to Congress in a panic to secure the kinds of incentives and investments we can pass today. Industry needs the certainty that comes with Congressional action.

This threat may actually be welcomed by hard-core Republican pols who would lick their chops at the idea of “bureaucrats” end-running Congress to set up a cap-and-trade system, but not by those industries that would actually be affected, particularly since the business community is already divided on the issue.

The op-ed also discusses the national security case for action on climate change, and as Brad Plumer at The Vine notes, this argument polls well, has some appeal to conservatives, and also explains why Foreign Relations Committee chairman Kerry has for the moment displaced Barbara Boxer of CA as the “face” of the climate change initiative in the Senate.

Meanwhile, Nate Silver goes through the Senate membership and tries to assess which specific senators might be moved by a new bipartisan “deal” on climate change:

So what does this get the Democrats? It gets them Linsday Graham’s vote, and possibly Lisa Murkowski’s. It takes Mark Begich from a leaner to a likely yes. It might encourage Mary Landrieu, and possibly George LeMieux of Florida, to look more sympathetically at the bill. Then there are a whole host of more remote possibilities: Isakson of Georgia, and perhaps Cochran and Wicker of Mississippi or Burr of North Carolina; none of those votes are likely, but they become more plausible with offshore drilling in place. Overall, it seems to be worth something like 2-4 votes at the margin.

That would give the Kerry-Graham bill a fighting chance, especially if an additional vote or two — possibly John McCain’s — can also be picked up as a result of the nuclear energy compromise. Of course, that’s assuming that no liberals would rebel against the new provisions, but the opposition to both offshore drilling and nuclear energy seems to be fairly soft in the liberal caucus.

On this last point, it’s worth noting that Dave Roberts of Grist, a highly credible warrior for action on climate change, adjudges the concessionson oil and nuclear energy “an affordable price [to pay] for the benefits of passing a bill.”

If nothing else, Kerry’s gambit has shuffled the deck, complicated Republican claims that Democrats are uninterested in genuine bipartisanship, and offered a sign of potential progress in advance of international climate change negotiations in December. All in all, it’s a good example of strategic audacity on an extraordinarily wonky issue, and well worth watching.

This item is cross-posted at The Democratic Strategist.

Energy Efficiency Spurs Economic Growth

A new study from Environment Northeast (ENE), an environmental research organization, offers a rebuke to the notion that energy efficiency can only be achieved at the expense of economic growth. Studying the macroeconomic impact of efficiency policies in the Northeast, ENE finds that efficiency provides not just savings for consumers and a decrease in emissions — the usual benefits of energy efficiency — but a significant economic boost as well.

The study used a forecasting model to project the effect of efficiency programs on the economies of six New England states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. It found that efficiency programs led to gains of more than $180 billion in gross state products over 15 years, more than justifying the efficiency investments made by the states.

How exactly does energy efficiency get translated into economic growth? Saving on energy bills, consumers could then redirect that money to the wider economy. Moreover, lower energy costs give regional businesses a boost by strengthening global competitiveness and promoting further growth. So much for the false choice between the environment and the economy that skeptics would have us make.

To read the ENE report, click here.

Building a Clean Economy on an Old Tobacco Plant

It’s hard to imagine many new uses for a shuttered tobacco factory. Thirty-foot tall cranes designed for moving bales, a paper factory, heavy equipment including backhoes, fork-lifts and tractors, and old cement floors stained by tobacco juice made sense for tobacco. But the odds that this plant, situated on 140 acres of land and given up by tobacco company Brown and Williamson in 2006 after its merger with R.J. Reynolds, would find a second life seemed pretty low.

Welcome to the world of sustainability and green entrepreneurs. An enormous tobacco factory in Chester, Virginia, about 20 minutes southeast of Richmond, has become the unlikely but inspiring location for an interdisciplinary group of green companies to work together and create a sustainable—and profitable—economy.

The Sustainability Park was launched in 2006 by Brenda Robinson, a Richmond-area biomass entrepreneur. She founded the Sustainability Park to create a community of businesses sharing a common vision of sustainability and renewable energy advancement.

“The Park is still creating jobs and did throughout the economic downturn,” said Robinson, the Park’s founder. “We are continuing to expand with new manufacturing facilities and equipment.”

The Sustainability Park currently has thirteen tenants, whose services include biomass production; industrial composting for landscapers and gardeners; recycling of massive amounts of debris that would otherwise go to landfills; and even a baseball training facility for Richmond-area youth that uses all-recycled equipment. Tenants in the Park also provide the important new business of LEED¬—Leadership in Environmental Energy and Design—Certification. This important program, created and monitored by the U.S. Green Building Council, provides strict standards for certifying construction as sustainable according to a variety of criteria, including the percentage of post-consumer material used and the impact on the local environment.

The Park and other projects like it across the country, belie the notion that green or sustainable projects are somehow antithetical to the free market or to capitalism; on the contrary. The Park itself is a for-profit company and the tenants are all for-profits. There is a raging market for the services the tenants provide. One company, Ace Recycling, sorts large quantities of construction debris, recovering tons of metal, biomass and other materials, for later post-consumer use, whether as wood pellets or as road surfacing—and at prices often lower than landfills.

Robinson explained that small businesses, like those at the Sustainability Park, are currently constrained by the lack of growth capital and government programs are not structured to aid these types of projects.

“We have been resourceful without government assistance,” said Robinson, “but infusion of government shovel-ready funding would have created many more sustainable jobs and additional tax revenue while helping the environment, promoting creative entrepreneurship and clean energy solutions.”

These businesses do need help from government, whether with improved access to stimulus funds; reducing the red tape often required at the federal or state level to apply for and receive grants; and increased investment in research and development. Recently, the Park considered applying for a federal grant to help increase efficiency of their own energy use, which could have saved $250,000 a year. They stopped the application process when they discovered that the regulations in place—including the requirement to purchase a $30,000 energy audit and a limit of 25% on the company’s savings—would have dramatically reduced their economic impact.

Yet, the profitability and early success of the Park’s tenants reveals the tremendous promise of clean technology as a business model and investment for society. Robinson noted the co-location of such varied “green” businesses has triggered tremendous cooperation, brainstorming, and even business deals within the Park. A recycler, for instance, sold material to another tenant to build a road.

The innovation and entrepreneurial spirit at the Park shows that America can indeed grow its way out of the current economy and into a new clean economy, where we will begin leading the world again. Our policymakers need to open the door and where helpful, provide incentives and ease regulatory burdens. The new generation of green entrepreneurs will do the rest.

For evidence, just see the facts. Less than three years later, $20 million has been invested in the Park, which has created 80 local jobs—including rescuing many employees who lost their jobs when the tobacco factory closed.