California looks to regulate toxic ingredients in consumer products

There's an initiative in California to "mandate new regulations limiting toxic ingredients in a wide variety of consumer products," according to a news release sent to me. The new regs are scheduled to take effect Jan. 1, and there's a public meeting for comments from stakeholders set for Nov. 1.

California's Department of Toxic Substances Control new "Green Chemistry" regs will "require companies to analyze the raw materials of their products and their potential toxicity through their entire life cycle.  The regulations, which reflect an entire movement, seek to minimize a product’s impact on human health, the environment and natural resources."

And as is often the case, as goes California, so goes the country. That is, the wider impact of the regulations will likely be felt in markets and by manufacturers far outside state lines. For more information, the news release recommends Peter Hsiao, an environmental and clean tech attorney in Los Angeles with Morrison & Foerster. (You might recognize Morrison & Foerster as the wild and crazy law firm that likes to be known as MoFo.com.)

Lowe's: Three green steps forward, one step back

In September, number two home improvement giant Lowe's announced it was rolling out its Energy Center concept nationwide, and putting recycling centers in every store as well. The Energy Centers are an  in-store gathering of energy-efficient products, while the recylcing centers let customers bring in rechargeable batteries, cell phones, compact fluorescent lights, and plastic bags. 

And this month, the EPA named Lowe's its WaterSense Partner of the Year for the second year in a row; Lowe's is the first retailer to be tapped two years running.

But in Salem, Mass., environmentalists are attacking the company's plans for a new store.

Pres. Obama wants you!

... to go shopping and save energy.

The president will speak at a Home Depot tomorrow to encourage homeowners to take steps to save energy. Addressing business leaders at the store, he will talk about legislation he plans to introduce that will give tax credits for projects that retrofit homes to become more energy-efficient.

Myth debunked: Cap and trade does NOT require retrofits

According to Snopes.com, the famed Internet rumor fact-check site, e-mail gossip has it that "the 'Cap and Trade energy bill' requires that all existing real estate must meet new energy standards before it can be sold." And Snopes answers that rumor today with an emphatic "FALSE."

HR 2454 contains no provisions requiring that existing homes "must meet the new energy standards" before they can be re-sold. Likewise, the bill includes no requirements that an existing residential property undergo an energy usage-related audit or inspection and be assigned a "certificate of efficiency issued by a federal building efficiency inspector" before it can be re-sold or rented.

... the bill merely provides for federal funding to be offered as incentives for owners of existing properties to voluntarily improve the energy efficiency of their structures.

Now, all of this is good news for home improvement retailers. For one, even if the cap-and-trade aspect of the legislation is defeated in the Senate, laws requiring efficiency in new construction are still likely to reappear. And for another, the provisions encouraging retrofits -- but not requiring them -- will bring in new business, without alienating those who think the government is forcing action.

But first, your job is to educate your customers, so they won't believe every wild thing they read in their in-boxes.

What's coming out of Copenhagen for the home improvement industry

Dec. 7 sees the start of the U.N. Climate Change Conference, the biggest gathering of world leaders addressing eco-issues since the meeting at Kyoto, Japan, 12 years ago.

Despite a carbon dioxide cap-and-trade bill that passed the House this summer, Senate heel-draggers have denied the president the signed legislation he had hoped to bring to Copenhagen. Resolved not to repeat Bill Clinton's mistakes in Kyoto (Clinton signed the Kyoto Protocol but could not get it ratified by Congress), Obama has signalled that he does not expect a formal treaty to emerge out of Copenhagen -- he won't seek a treaty until he has a signed law in hand.

So what does that have to do with home improvement? Well, Obama won't want to leave Copenhagen empty-handed, so he'll focus on other areas of agreement. For example, check out this Nov. 17 Energy Department press release boasting of areas of agreement with China:

The two Presidents announced the launch of a new U.S.-China Energy Efficiency Action Plan.  Under the new plan, the two countries will work together to improve the energy efficiency of buildings, industrial facilities, and consumer appliances.

There's more here. 

So the government may soon be pushing tighter building standards and electricity-stingy appliances. The point is that as we see more emphasis on energy efficiency initiatives coming out of Copenhagen, like this one with China, there will be more opportunities for green retailers and builders.

Update: President Obama today confirmed that he will attend the Copenhagen meeting. I don't think he'd be going if he didn't think there was a reason to do so.

Gov't review of pesticides may hit L&G products

The EPA has ordered a new review of a slew of weed killers, some of which (including a widespread one, Atrazine) are used in lawn and garden products. For the science of the issue, check out Chemistry World's report. For two different opinions, there's EPA revisits atrazine - finally and Alarmists unfairly target crucial agricultural tool.

Stimulus smart grid money heads into home channel

Last year the power companies were predicting new smart grid technology and hyper-efficient appliances. GE, for example, is pushing this tech, no surprise, seeing as the company stands to sell a lot of new smart meters. Well, the Obama administration is using $3.4 billion in stimulus money to help that trend along.

While most of the cash is going to a wide range of power companies, $19.3 million of that is going to the home channel's own Whirlpool Corp. to help spur the creation of smart appliances such as dryers. These machines will be able to read the electric grid in order to regulate power use and save money, for example, by turning on when electricity is cheaper.

Here's what Whirlpool exec VP Bracken Darrell said at the Energy Efficiency Global Forum & Exhibition in Paris last April:

By 2015 we are prepared to make ALL the electronically controlled appliances we produce, ANYWHERE in the world, capable of receiving and responding to a signal requesting curtailment of the appliance’s energy consumption. These products will also be capable of providing the consumer with contemporaneous information about their energy consumption. Whirlpool would also require any manufacturer that is licensed to use the Whirlpool brand to add similar capability to products bearing the Whirlpool brand.

I have to count myself unconvinced, though, so far. Are consumers going to be happy leaving their wet laundry in the drier until 3 am, when the electric rates go down? What if they have another two loads to dry after that? And will consumers want their clothes to sit in a ball in the drier getting wrinkled from 4:30 am until the consumer gets around to taking them out two or four hours later? I look forward to seeing how the engineers at Whirlpool tackle these problems. $19.3 million says they'll think of something.

Trade group lobbies Senate for clean energy

Efficiency First, a trade advocacy non-profit, is asking the Senate for prompt action on the American Clean Energy & Security Act.

As new energy business leaders from across the country, we fully support the legislation’s goals: to create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

The trade association includes contractors, energy companies, and building product vendors including BASF and Panasonic.

Hat tip: California Building Performance Contractors Association

Building material vendor promotes tax credit angle

More and more manufacturers are pushing their green products, especially if those products can be used for tax credits. Thanks to the stimulus legislation recently passed -- specifically, the American Recovery and Reinvestment Act -- manufacturers are looking for ways to raise consumer awareness.

So it is with building material maker Typar, with a sustainability page on the company Web site as well as a new press release (PDF format) featuring products like the company's "Weather Protection System," a building wrap that can reduce your tax load:

Through the ARRA, homeowners can receive tax credits amounting to 30 percent of the cost up to $1,500 of energy-efficient improvements made to an existing home. Home builders, too, can benefit, receiving $2,000 in tax credits for building a home that saves 50 percent of the heating and cooling energy used by the average home of similar size; manufactured home builders can receive $1,000 in tax credits for the same heating and cooling energy savings. And, commercial builders, designers and building owners can receive $1.80 per square foot of the structure in tax credits for building envelope improvements that reduce heating and cooling energy by at least 10 percent.

New association lobbies for greener building codes

A new alliance among home builders, manufacturers, and energy companies has formed the Building Energy Efficient Codes Network. The association is so new it does not seem to have a Web site, but here is an article about the new organization, and here are two other articles on BEECN and its agenda.
From the latter:

Basically, BEECN is lobbying for national legislation that would require a series of energy-efficiency improvements over 2006 International Energy Conservation Code: a 30% increase in energy efficiency for all new residential and commercial buildings starting in 2010, a 50% increase by 2014, and a net-zero-energy standard by 2030.

Weatherization report tells how retailers use tax credits to drive sales

Here's a special report by the staff of Home Channel News on energizing sales at retail by making the most of the weatherization incentives in the recent stimulus package.

For many Americans, the new tax incen tives provi de the perfect justification they need to replace drafty windows and doors; add insulation to the attic; or install a new, energy-efficient water heater. These incentives are targeted to the retrofit market, providing remodelers — and their suppliers — some much-needed revenues.

Full disclosure: I'm the managing editor of Home Channel News.

Green flood of weatherization stimulus cash begins

News reports from all over say that federal stimulus funds for home weatherization are now really starting to flow to municipalities. Check out these articles from across the country:

• Maryland: $1.4 Million in stimulus funds will expand weatherization program
• New York: Federal Stimulus Funds for Weatherizing Arrive in Long Island
• Nevada: County to Receive Federal Stimulus Funds for Weatherization Assistance Program
• Michigan: Stimulus weatherization plan comes with pros, cons
• Maryland again: Baltimore City fetches nearly $16M in stimulus cash for weatherization projects
• South Carolina: Stimulus Funds to Go to Weatherization in Spartanburg and Cherokee Co.
• South Dakota: SD gets $9M in stimulus funds to weatherize homes
• North Carolina: Update on Greensboro's green projects and use of federal stimulus funds

Which begs the question: How are retailers taking advantage of this opportunity? Some are participating in teen job training programs. Some are just plain hiring. Some are selling more exterior doors. And some are stocking new products.

How about you? Comment here or e-mail me at malterio@lf.com.

Web site offers green tax incentive info

Check out the Tax Incentives Assistance Project, a Web site put out by a partnership of non-profits. The top news item includes a link to informational fliers in PDF format -- the site urges businesses to put their own logos on the fliers and hand them out.

Stimulating the Home Channel

Congress and the incoming administration want to hit the ground running as it comes to the planned economic stimulus package. Brian Beutler has an excellent summary of the green provisions in one draft wending its way through the Washingtonian Halls of Power. A few highlights that target the home channel:

• $2.5 billion for a new program to upgrade HUD sponsored low-income housing to increase energy efficiency, including new insulation, windows, and furnaces.
• $6.2 billion to help low-income families reduce their energy costs by weatherizing their homes.
• $300 million to provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills.

Looks like there may be opportunities coming up.

How will the recession hit the home channel?

Well, seems that we are officially in a recession -- and have been for about a year -- something that's not news to us in the home channel, from retail mom-and-pop hardware stores to large tract builders. But where do we go from here?

Leanne Tobias of GreenBiz.com thinks that the government can spend us out of the recession, and if the Feds are going shopping, might as well get them to buy green. I think that may be a help, sure, but compared to the billions and trillions of greenbacks being juggled and dropped all over Wall Street, I have to wonder if requiring the government to put Energy Star fridges and air conditioners in office buildings is really going to solve our problems.

Besides, what about housing?

If money is short and you always wanted to live in a hobbit-hole, there's a $5,000 option for you (photo, above right). This earth-sheltered house, designed by an artist in Wales, England, "was built with maximum regard for the environment and by reciprocation gives us a unique opportunity to live close to nature." All for about "1000-1500 man hours and £3000."

If you do not want to build-it-yourself, the optimism of the folks behind the $100K house is refreshing. This is an effort to create affordable green housing in urban Philadephia, and the brains behind the work, Nic Darling, sees reason to keep hope alive:

I may be crazy, overly optimistic or both, but I don’t think we are screwed. In fact, I think we are in one of the best positions possible at this time and place. The real estate market in Philly, while down, has remained fairly strong compared to the smoking craters that have replaced housing markets in many other parts of the country. It has been particularly good for houses selling under $300,000 and that is right in our wheelhouse. ... In addition, we have seen an increase in consumer knowledge regarding the real costs of home ownership. Maintenance, taxes and utilities have finally (we hope) become a part of a home buyer’s consideration. Rather than simply looking at the monthly payment, people are starting to consider the total expense of home ownership, and this bodes well for homes like ours. Our houses will require less maintenance, use half of the utilities (compared to a code built home) and offer a ten year tax abatement (can you say $75 a year in taxes?). They are simply less expensive homes to own. ... People also seem more and more willing to pay for green.

The 100K house may not be as elfin and fey as the 5K earth-sheltered house, but the former is LEED Platinum rated, and it features indoor plumbing and a bathroom, so it has that going for it. Which is nice.

But what about that recession? The conventional wisdom holds that luxury properties will still do well -- and my cousin, who sells and installs very high-end millwork in upstate New York, says he's doing okay. That seems to give anecdotal weight to what the conventionally wise think. To the extent that the wealthy also are looking for green products, there may well be a sweet spot there.

And if Nic Darling is on to something, there's another opportunity for affordable green housing, in addition to the high-end projects. I hope he's right.

Pres-elect keeps talking the talk

President-elect Barack Obama released a video message online addressing climate change issues, including the new green economy. A text account at the New Energy World Network summed up his remarks this way: "Obama reiterated his pre-election New Energy plan to invest $150bn over the next ten years to catalyse private efforts to build a clean energy future."

The president-elect himself said:

This investment will not only help us reduce our dependence on foreign oil, making the United States more secure, and will not only help us bring about a clean energy future saving the planet, but it also will help us transform our industries and steer our country out of this economic crisis by generating five million new green jobs that pay well and can’t be outsourced.

"Transform our industries." Well, it will be very interesting to watch Obama put his plan into action, and to see how it affects the home channel industry.

Congress and energy credits

I just got an e-mail message from my rep in congress, John Hall, boasting about how the recently passed Wall Street bail-out legislation included "a significant expansion of solar tax credits available for both investors in and consumers of solar energy technology." Previously, a cap on deductions for solar energy installations had been set at $2,000; now that's been lifted. If the Democrats take control of government, it seems likely that tax credits like this will become more common.

If the man who would be president has his way, there are five million "green collar" jobs coming down the pike. Some of those jobs will be in making, selling, installing, and servicing solar energy systems for homes.

The photo above is from Rep. Hall's e-mail message.

Eco-friendly tax credits become law when tied to bailout

In an article published earlier today, the Orlando Business Journal explains how Congress passed solar energy tax credits by linking them to the $700B bailout bill.

The tax credit for producing electricity from wind would be extended for one year, while the credit for other renewable sources would be extended for two years. The tax breaks for solar energy would be extended for eight years.

San Jose adopts green building standards

According to this San Jose Mercury News article, the city will require that all new construction over 25,000 square feet meet LEED Silver certification standards. As for new homes, "Residential projects of 10 or more units would have to be LEED certified or meet the minimum 50 points on another standard, Build It Green's GreenPoint Rated system."

Toronto considers strict limits on packaging

From the Toronto Globe and Mail, here's a report today that the city of Toronto may tax plastic bags (to the tune of 20 cents each), and even ban some kinds of packaging. Toronto wants to divert 70 percent of waste from landfill by 2010, up from 42 percent today.