Fueled by President Obama’s strong sense of urgency and a relatively unified majority

voting bloc of Congressional Democrats, Congress quickly moved the American

Recovery and Reinvestment Act of 2009 (“ARRA”) out of a joint conference session to

passage by both chambers, meeting President Obama’s ambitious President’s Day

deadline.

I. Highlights of Certain Energy Provisions in ARRA

Congressional leaders calculate that the ARRA is comprised of approximately 65 percent

appropriations provisions and 35 percent tax incentives, and the energy provisions appear

to be generally in line with the ARRA’s overall spending/tax relief ratio: energy

expenditures are expected to total roughly $38 billion over a ten-year period, whereas the

effect on federal revenue from the energy tax incentives is estimated at approximately

$18 billion over the same period.

Production and Investment Tax Credits

While the ARRA’s energy tax incentive provisions may have a smaller total dollar value

than the appropriations provisions, these tax incentives may provide much needed

assurance to investors. The ebb and flow of tax equity transactions over the past several

years in renewable energy projects has been tied to availability of tax credits; uncertainty

as to tax credit availability has often hindered investor confidence in wind, solar and

other renewable project development. Recognizing this fact, Congress and the White

House have tried to reinvigorate renewable energy investments through the ARRA by

expanding, extending and strengthening current tax incentives.

The ARRA extends the existing production tax credit (“PTC”) for wind facilities placed

in service on or before December 31, 2012. The PTC is also extended for facilities of the

following types that are placed in service on or before December 31, 2013: closed- and

open-loop biomass, geothermal, trash and landfill gas, hydropower, and marine and

hydrokinetic facilities. The PTC is claimed over a ten-year period.

Currently, solar facilities are eligible for a 30 percent investment tax credit (“ITC”). The

ARRA expands this provision to give wind facility owners the option of electing to claim

a 30 percent ITC on costs of new equipment in lieu of the PTC for facilities placed in

service between January 1, 2009 and December 31, 2012. Owners of solar, biomass,

landfill gas, trash, geothermal, marine and incremental hydropower facilities may elect to

claim the ITC on costs of new equipment in lieu of the PTC for facilities placed in

service between January 1, 2009 and December 31, 2013.

A facility owner who elects the ITC option must reduce the depreciation basis for the

facility by half the amount of the credit (i.e., 85 percent of the cost of the facility may be

depreciated). The facility owner may make the ITC election on a project-by-project basis;

however, the election cannot be made by another party on behalf of the owner.

Geothermal facilities were previously eligible for a 10% ITC, which has now been

increased to 30% under the ARRA’s ITC provision. This provision allows for wind,

biomass, trash/landfill gas, marine, and incremental hydropower facilities, which

previously did not qualify for the ITC, to be financed through leveraged leases, which is

not an option when the PTC is being claimed due to the requirement in Section 45 of the

Internal Revenue Code that the taxpayer be the producer of electricity.

Historically, extensions of renewable energy tax credits have coincided with a sharp

uptick in the development of qualifying renewable facilities, spurred largely by

institutional investors that could offset their tax liability while providing needed equity

through sale-leaseback, lease pass-through, and partnership flip financing structures. The

Senate Finance and House Ways & Means Committees recognized, when conferring on

the final draft of this provision, that “[b]ecause of current market conditions, it is difficult

for many renewable projects to find financing due to the uncertain future tax positions of

potential investors in these projects.” While the ARRA gives some certainty by extending

availability of the PTC and ITC for many renewable project types, it is notable that the

“placed-in-service” deadline extension is generally more favorable for projects with

shorter lead times or projects that may be incrementally installed (such as wind turbines).

Projects that may require lengthy regulatory approvals or other time-intensive activities

prior to construction (e.g., hydropower facility expansions and marine/hydrokinetic

projects subject to Part I of the Federal Power Act) will call for particular attention to

process management and activity coordination to meet applicable in-service deadlines.

Planning for these projects, if it is not already in progress, will likely need to commence

promptly if the credit regime is to be achievable.

Additionally, the ARRA makes minor adjustments to the carbon dioxide sequestration

credit that was enacted late last year. The carbon dioxide sequestration tax credit is a

credit of $10 to $20 for every ton of carbon dioxide that is captured and sequestered in

secure underground geologic formations. Prior to the ARRA, only the Environmental

Protection Agency (“EPA”) was required to develop regulations governing the

sequestration and storage of carbon dioxide. Now the EPA, Department of Energy

(“DOE”), and Department of Interior have such regulatory authority.

Grants in Lieu of Production and Investment Tax Credits

Although stronger and more reliable tax provisions provide an avenue for renewable

investment from remaining institutional investors, development may continue to be

slowed by reluctant credit markets and diminished opportunities for monetization of

PTCs and ITCs. The ARRA includes provisions to fill the private credit void by making

cash available for renewable projects in the form of government grants to spur

investments in renewable energy.

The ARRA provides for the Department of the Treasury to issue grants of up to 30

percent of the basis of “qualified facilities,” which include: wind, closed-loop biomass,

open-loop biomass, geothermal energy, solar energy, landfill gas, municipal solid waste,

incremental hydropower production attributable to efficiency improvements or additions

to capacity, marine and hydrokinetic renewable energy, and certain fuel cell facilities.

Microturbine and cogeneration facilities may be eligible for grants of up to 10 percent of

the facility’s basis.

The grants may only be accepted in lieu of PTCs or ITCs and apply to (1) facilities

placed in service in 2009 or 2010, and (2) facilities that initiate construction in 2009 or

2010 and are completed by the “credit termination date,” which ranges from January 1,

2013 to January 1, 2017 depending on the type of facility. The grants generally would be

payable upon achievement of the commercial operation date for the applicable facility. It

is intended that the Secretary administer the grant program by implementing rules similar

to those governing the ITC.

DOE Clean Energy Programs

The ARRA also channels significant DOE spending to both pilot and commercial

renewable/low-emissions energy projects. Approximately $3.4 billion is appropriated to

DOE for allocation to “Fossil Energy Research and Development” projects, which

include the development of emission reducing technologies such as carbon capture and

sequestration demonstrations to help develop the technologies needed by the nation’s

current energy infrastructure to respond to public health and climate change concerns. An

additional $2.6 billion will be spent on renewable energy and energy efficiency

demonstration and deployment activities (including biofuels, hydrokinetics, geothermal,

wind and solar projects).

Loan Guarantees for Existing Transmission and Renewable Technologies

Near-term stimulus is intended through this expansion of a loan guarantee program that

was originally enacted under Title XVII of the Energy Policy Act of 2005 (“EPAct

2005”) to spur the development and deployment of innovative energy technologies. The

program expansion provides $6 billion of loan guarantees for certain renewable energy

systems, leading edge biofuel projects and electric power transmission facilities that are

important in meeting reliability needs and have a positive effect on a state’s or region’s

environment (including climate change) and energy needs. Perhaps most troubling is that

the loan guarantees are limited to projects that commence construction by September 30,

2011. Only a very small number of transmission projects, particularly new projects, could

meet this requirement due, among other things, to the typical lengthy siting proceedings.

Under the expanded Title XVII, “renewable energy systems” include those that generate

electricity or thermal energy (or manufacture component parts of such systems). Leading

edge biofuel projects are limited to those that are likely to become commercial

technologies and will produce transportation fuels that substantially reduce life-cycle

greenhouse gas emissions compared to other transportation fuels. Loan guarantee funding

is limited to $500 million per biofuel project. The limited guarantees may help speed the

development and commercialization of alternatives to corn-based ethanol, such as

cellulosic ethanol.

Given the speedy action that will be required to issue loan guarantees for renewable

energy and transmission projects that will commence construction by September 30,

2011, DOE will be constrained in its ability to engage in time-consuming rulemaking.

Thus, DOE’s current loan guarantee regulations, issued by final rule on October 4, 2007,

are likely to influence strongly how DOE solicits, evaluates, approves, and monitors its

expanded renewable and transmission project loan guarantee program. Under the existing

regulations, DOE may guarantee up to 100 percent of a loan, provided that the loan is

issued by the Treasury Department’s Federal Financing Bank. Loans from private lenders

can be guaranteed, provided that the guarantee is for less than 100 percent of the loan

amount. Greater weight will likely be given to applications that rely upon a smaller

guarantee percentage. Of note, DOE likely will issue a loan guarantee only where the

project sponsors make a significant equity contribution toward the project cost. Under the

current regulations, loan guarantees will not be issued unless the credit subsidy cost and

administrative fees have been paid, which will most likely be the responsibility of the

borrower. The preliminary credit subsidy cost estimate is to be made available to the

borrower when the term sheet is provided to the project sponsor.

That regulations are in place for the existing loan guarantee program does not provide

great assurance that transmission and renewable project loan guarantees will be rapidly

approved and disbursed. At this time, DOE has not approved and disbursed a single loan

guarantee under the innovative technology program established by EPAct 2005.

However, during DOE Secretary Steven Chu’s confirmation hearings, he committed to

reform DOE to speed up the loan guarantee process. In a later interview with The Wall

Street Journal, Secretary Chu stated that he expects the guarantees to start being made

within five months of the enactment of the stimulus package and that he would like DOE

to spend half of its total appropriations within one year. He also indicated that in order to

get more money to the private sector, he will streamline the review process and give less

scrutiny to each loan guarantee application.

Smart Grid Development

The appropriations for activities related to smart grid development are among the largest

of the energy appropriations in the ARRA, totaling approximately $11 billion. Within this

amount, DOE will receive $4.5 billion for investment in “smart grid” technologies. The

DOE Smart Grid investment is intended to set up digital technologies in the transmission

grid that will modernize the electric grid and save energy and costs, as well as facilitate

recovery from disruptions to the energy supply. Of the $4.5 billion that DOE will receive,

$100 million will be available for worker training activities and $80 million will be

allocated to conduct a resource assessment and an analysis of future demand and

transmission requirements after consultation with the Federal Energy Regulatory

Commission. DOE is also directed to provide financial assistance to utilities of up to 50

percent of the costs of qualifying advanced grid technology investments.

New Borrowing Authority for WAPA

The Western Area Power Administration (“WAPA”) is provided authority under the

ARRA to borrow money directly from the Treasury. In addition to retaining the

appropriations from DOE that it currently receives, the bill permits WAPA to maintain

$3.25 billion in outstanding repayment balances to the Treasury at any one time.

WAPA’s Administrator may allocate the borrowed funds to: (i) constructing, financing,

and studying new or upgraded electric power transmission lines and related facilities; and

(ii) facilitating the delivery of power from renewable energy resources that are

constructed or reasonably expected to be constructed in the future.

Expanded Borrowing Authority for BPA

For the past 35 years, the Bonneville Power Administration (“BPA”) has had the

authority to borrow funds directly from the Treasury. The ARRA expands the amount of

Treasury debt BPA is authorized to have outstanding at any one time from $4.45 billion

to $7.8 billion. The bill instructs BPA to use the funds borrowed to assist in financing the

construction, acquisition and replacement of its transmission system. After President

Obama signs the stimulus bill, BPA will have around $5.5 billion of unused borrowing

capacity.

In the past two years, WAPA and BPA each have received over 100 requests for

interconnection to the grids that they operate. Many otherwise viable wind projects were

cancelled or suspended because of problems with accessing the WAPA and BPA grids.

As the WAPA and BPA service areas encompass some of the nation’s prime areas for the

development of large-scale wind and solar energy projects, these entities will have

significant influence on domestic renewable generation investment. WAPA’s new and

BPA’s expanded borrowing authorities are expected to enable a greater level of grid

access for potential renewable project developments.

II. Specific Appropriations for Energy-Related Projects

• Fossil Energy Research and Development: $3.4 billion

Taking note that the current energy infrastructure in the country is reliant on fossil fuels

and that the transition to renewable energy will not occur overnight, the ARRA makes

$3.4 billion available for “Fossil Energy Research and Development.” The DOE’s Fossil

Energy Research and Development program issues grants for the development of

emission reducing technologies, including carbon capture and sequestration projects.

• Transmission Upgrades and Smart Grid Investments: $11 billion

An amount of $4.5 billion is appropriated for research and development, pilot projects

and federal matching funds to modernize the electricity grid. To promote smart grid

technology, matching grants for smart grid demonstration projects would be increased to

50 percent of investment costs from the previous 20 percent.

The ARRA also stipulates that the Office of Electricity Delivery and Energy Reliability,

in coordination with the Federal Energy Regulatory Commission, will provide technical

assistance to the North American Electric Reliability Corporation, the regional entities,

the states, and other transmission owners and operators for the formation of

interconnection-based transmission plans for the Eastern and Western Interconnections

and ERCOT.

• New Borrowing Authority for WAPA and BPA

WAPA may now have $3.25 billion in Treasury debt outstanding at one time, and BPA

may have $7.8 billion outstanding. The ARRA directs these power-marketing

administrations to allocate the borrowed funds to projects that expand and update their

transmission lines and also to projects that will facilitate the transmission and delivery of

electricity generated by renewable energy projects. The ARRA also provides that

WAPA’s Administrator is responsible for achieving the personnel staffing levels that are

necessary to cost-effectively and efficiently address WAPA’s obligation and new

mandates.

• Efficient and Renewable Energy: $2.5 billion

An additional $2.5 billion is appropriated for renewable energy and energy efficiency

research, development, demonstration and deployment. Biomass and geothermal projects

have been marked for special treatment, receiving $800 million and $400 million,

respectively. Remaining funds go to research and demonstrations for additional

renewable energy technologies, including water power and solar energy, and industrial

and commercial energy efficiency demonstrations. Finally, within available funds,

$50 million is directed to support research to increase the efficiency of information and

communications technology.

• Renewable Energy and Transmission Loan Guarantee: $6 billion

An appropriation of $6 billion in loan guarantees is expected to support more than

$60 billion in loans for renewable energy systems, incremental hydropower and

transmission technologies (through amendment of EPACT Title XVII) that will

commence construction prior to September 30, 2011. Upgrades to existing transmission

systems will be eligible for the loan guarantees, as will “leading edge” biofuel pilot or

demonstration projects (up to $500 million in funding).

III. Specific Tax Incentives for Energy-Related Projects

• Renewable Energy Production Tax Credit: $13.143 billion

The current version of the PTC is extended for wind facilities placed in service on or

before December 31, 2012. The existing PTC is also extended for the following facilities

placed in service on or before December 31, 2013: closed- and open-loop biomass,

geothermal, solar, trash and landfill gas, qualified hydropower, and marine and

hydrokinetic facilities.

• Temporary Substitute Election of the Investment Tax Credit: $285 million

Wind facility owners may elect to claim a 30 percent ITC on costs of new equipment in

lieu of the PTC for facilities placed in service between January 1, 2009 and December 31,

2012. Owners of biomass, landfill gas, trash, geothermal, marine and incremental

hydropower facilities may elect to claim the ITC on costs of new equipment in lieu of the

PTC for facilities placed in service between January 1, 2009 and December 31, 2013.

A facility owner who elects the ITC option must reduce the depreciation basis for the

facility by half the amount of the credit (i.e., 85 percent of the cost of the facility may be

depreciated). The facility owner may make the ITC election on a project-by-project basis;

however, the election cannot be made by another party on behalf of the owner.

• Treasury Grants for Specified Energy Property in Lieu of Tax Credits

Treasury grants are available for solar, wind, biomass, fuel cell, geothermal, trash,

landfill gas, incremental hydropower, and marine energy facilities placed in service in

2009 or 2010 and for geothermal, solar, qualified fuel cell, qualified microturbine,

combined heat and power system, qualified small wind energy, and geothermal heat

pump property placed in service in 2009 or 2010, in amounts of up to 30 percent of the

tax basis of such facilities or property. In addition, so long as construction begins in 2009

or 2010 and the grant application is received before October 1, 2011, the grants will be

available for wind facilities placed in service by January 1, 2013; for biomass, trash or

landfill gas, hydropower, and marine and hydrokinetic facilities placed in service by

January 1, 2014; and for geothermal, solar, qualified fuel cell, qualified microturbine,

combined heat and power system, qualified small wind energy and geothermal heat pump

property placed in service by January 1, 2017. The grant program is limited to recipients

that would otherwise qualify for an ITC election (including through the election to claim

the ITC in lieu of the PTC) and is not available to governmental or tax-exempt entities,

clean renewable energy bond lenders or cooperative electric companies. Those projects

and facilities that receive Treasury grants in lieu of tax credits would not be able to claim

the PTC or ITC and any previously claimed ITCs would be recaptured. The grant

provision is intended to mimic the operation of the ITC, including that grant money

received would generally not need to be reported as taxable income and the depreciable

basis of facility equipment would be reduced by half the amount of the grant.

• Repeal of Certain Credit Limitations

The $4,000 cap on the ITC applicable to qualified small wind energy property is

eliminated. In addition, the rule limiting the amount of credit for property financed by

subsidized energy financing or private activity bonds is repealed.

• New Clean Renewable Energy Bonds

An additional $1.6 billion is provided for bonds for certain renewable energy facility

capital expenditures incurred by governmental bodies, public power providers or

cooperative electric companies. Holders of such bonds may claim a tax credit equal to the

product of their bond’s credit rate and the face value thereof.

• Qualified Energy Conservation Bonds

An additional $2.4 billion is provided for bonds related to capital expenditures incurred

by state and local governments for qualified energy conservation purposes (i.e., programs

and initiatives that reduce greenhouse gases). Holders of such bonds may claim a tax

credit equal to the product of their bond’s credit rate and the face value thereof.

• Refueling Property Credit Expansion: $54 million

The ARRA provides for an increase in the alternative fuel vehicle refueling property

credit for property placed in service during calendar years 2009 and 2010, including

property relating to ethanol, natural gas, compressed natural gas, liquid natural gas, liquid

petroleum gas, biodiesel, hydrogen and electricity.

• Credit for Investment in Advanced Energy Facilities: $1.647 billion

A new investment credit, in the amount of 30 percent, is established for facilities engaged

in the manufacture of advanced energy property. “Advanced energy property” includes

technology for the production of renewable energy, energy storage, energy conservation,

efficient transmission and distribution of electricity, and carbon capture and

sequestration. To be eligible for the credit, a project must be certified by the Secretary of

Treasury, in consultation with the Secretary of Energy, through a competitive bidding

process. The certification program must be established by the Secretary of the Treasury

no later than 180 days after the date of enactment. Up to $2.3 billion may be allocated

under the program.

• Depreciation Bonus: $5.074 billion

A 50 percent “depreciation bonus” is available for capital expenditures related to new

equipment placed in service within the United States in 2009 and is not specific to

energy-related expenditures. This bonus is only available to taxpayers that were not

committed to the investment prior to January 1, 2008. When claiming the bonus, a

taxpayer would be able to depreciate 50 percent of the cost of equipment placed in

service for year 2009 (or a lesser percent if the taxpayer also elects the ITC), and would

then follow the regular depreciation schedule for following years.

• Net Operating Losses: $947 million

The maximum carryback period for net operating losses is extended to five years for

losses in 2008 or 2009, for businesses with gross receipts up to $15 million. This is a

dramatic turnaround from the provision in both the Senate and House bills, which would

have applied to all businesses that were not beneficiaries of the Troubled Assets Relief

Program.

The time is now.  Your moment has come.  Seize the green.ä

(Special Thanks to Ahren Tryon, Dewey & LeBoeuf)

Monitoring and Measurement:

•  There must be a procedure to monitor and measure, on a

    regular basis, the key characteristics of the operation that

    can have a significant environmental impact.

•  Calibrated or verified monitoring and measuring equipment

    must be used and associated records must be maintained

•  Lessons learned: Monitoring and measuring can be directly

    tied to objectives and targets

Evaluation of Compliance:

•  New clause in the ISO 14001:2004 edition

•  There must be a procedure established, implemented and

    maintained for periodically evaluating applicable legal

    requirements

•  Records of these periodic evaluations must be kept

Nonconformity, Corrective Action and Preventive Action:

The organization must establish, implement and maintain a procedure for dealing with actual and potential nonconformities and for taking corrective and preventive action.

•  Common pitfalls: Over-documenting corrective actions.

•  Not documenting preventive actions

•  Failure to determine true cause of nonconformity

•  Forgetting to review the effectiveness of corrective and

    preventive actions

•  Forgetting to “Prioritize” the nonconformities of greatest

    magnitude

Records:

The organization shall establish and maintain records as necessary to demonstrate conformity to the requirements of the EMS. There shall be a procedure for the identification, storage, protection, retrieval, retention and disposal of records.

•  Lessons learned: Eliminate paper records whenever

    possible.

•  Pitfalls: No defined method of disposal.

•  No defined retention period or overstated retention

    period

Internal Audit:

Internal audits must be conducted at planned intervals to determine whether the EMS conforms to planned arrangement and has been properly implemented and maintained.

•  Lessons Learned: Define up front the qualification of

    auditors

•  Base audits on results of previous audits

•  Pitfalls: “Across the board” scheduling

•  Poor documentation of audit reports

•  Incomplete audit of elements

Management Review:

Ingredients for the Management Review

•  Results of internal audits

•  Communication from external interested parties, including

    complaints

•  Environmental performance of the organization

•  Extent to which objectives and targets have been met

•  Status of corrective and preventive actions

•  Follow-up actions from previous management reviews

•  Changing circumstances, including developments in legal

    and other requirements related to its environmental aspects

•  Recommendations for improvement

Key Management Review Issues:

•  The Management Representative is NOT the top manager

    unless so appointed

•  Management review should clearly stipulate

    whether or not the EMS is suitable, adequate and effective

•  The Management Review should be the basis for the

    continuation of the “plan-do-check-act” cycle

Parts I, II and III completes how to develop an ISO 14001 Environmental Management System.  Now, its up to you.

Businesses around the world are positioning themselves for the green economy.  This article presents Part 2 of a 3-part series.  It provides an outline of primary elements required to acheive sustainability as it relates to your business under the ISO 14001 standard (Environmental Management System). Presented is a step-by-step process to reduce your carbon footprint. If you think its easy, its not.  But, it will pay-off.

ISO 14001 Certification (continued from, “Green Certification Part I: Here’s How To Do It”):

Resources, Roles, Responsibility and Authority:

“Structure and Responsibility” must be emphasized when developing your Environmental Management System (EMS).

•  Emphasis is on management to ensure adequate human,

    infrastructure, technology and financial resources are

    available

•  Lessons Learned: Make sure that roles and responsibilities

    are defined and documented up and down the organization

•  Make sure that the Management Representative is

    specifically appointed in writing and knows his/her

    responsibilities

Competence, Training and Awareness:

Competence, training and awareness (CTA) addresses any person performing tasks for it or on its behalf that have the potential to cause a significant environmental impact. No longer limited to direct employees.

•  Lessons learned. CT&A may be demonstrated by

    education, experience, training or a combination

•  Common pitfall. Assigning a person to a critical task

    without the requisite qualifications and failure to document

    qualifications on individuals

Communication:                    

•  Communication is required both internally and externally

•  Internal communication must be throughout the

    organization

•  Extent of external communication must be determined and

    this determination documented

Documentation:

Documentation must include:

•  The environmental policy, objectives and targets

•  Scope of the environmental system

•  Main elements of the EMS and their interaction (linkage)

•  Lessons Learned: There needs to be a linkage from top

    level documents (manual) through standard operating

    procedures to work instructions

•  Common pitfalls: “Short circuits”

Control of Documents:

•  Documents must be approved prior to use

•  Reviewed and updated as necessary

•  Identified to changes and current revision

•  Available at point of use

•  Legible and readily identifiable

•  Removed when obsolete

•  Lessons learned: Modern software documentation

    programs eliminate most of the mechanical glitches

    common in manual document programs

Operational Control:

•  Operations that are associated with identified significant

    environmental aspects must be identified.

•  Documented procedures must be in place to control

    situations where their absence could lead to deviation from

    the environmental policy, objectives and targets.

•  Lessons learned: Make sure that suppliers and contractors

    are included when considering operational controls

Emergency Preparedness and Response:                      

•  There must be a procedure to identify potential emergency

    situations and potential accidents that can have an impact

    on the environment.

•  There must be a periodic review of emergency

    preparedness and response procedures

•  Common pitfall: The emergency preparedness system

    hasn’t been tested

Please get ready for “Green Certification Part III:  Here’s How To Do It”.

ISO 14001 is Based on Plan-Do-Check-Act:

• Plan: establish the objectives and processes necessary to deliver results in accordance with the organization’s environmental policy

• Do: implement the processes

• Check: monitor and measure processes against environmental policy, objectives, targets, legal and other requirements and report the results

• Act: take actions to continually improve performance of your Environmental Management System (EMS)

General Requirements:

Your business needs to establish, document, implement, maintain and continually improve an EMS and determine how it will fulfill the following requirements.

• Make sure that you have a plan to continuously improve your environmental management system. Too often, the scope statement is static. It needs to be “alive”!

• Common Pitfall: Having no scope statement or one that is extremely vague (i.e. XYZ business is a good environmental citizen).

Environmental Policy:

• The environmental policy must be appropriate to the nature, scale and environmental impacts of its activities

• Must include commitment to continual improvement and prevention of pollution

• Must include commitment to comply with applicable legal requirements

• Must be communicated to all persons working for or on behalf of the organization

• Must be available to the public

Environmental Aspect:

Identify environmental features or characteristics within processes of your business.

• An aspect is anything that your business does that can have an impact on the environment

• Aspects can be positive or negative

• Aspects must be identified and kept up to date

• Lessons learned: Set measuring stick and rank aspects by importance and severity. Determine which aspects are significant.

• Common pitfall: Not keeping the list of aspects up to date = stale aspects.

Legal and Other Requirements:

Legal requirements to which your business subscribes must be identified and procedures must exist to determine how requirements apply to environmental aspects.

• Lessons learned: Identification of legal and other requirements can be easily done through subscription to monthly periodicals which report changes to federal and state law

• Pitfalls: Don’t forget local statutes. They count too!

Objectives, Targets and Programs:

You need to establish, implement and maintain documented environmental objectives and targets, at relevant functions and levels within your business.

• Lessons Learned: Have a target for every objective. Keep it current.

• Common pitfall: “Pie in the sky” objectives that can’t be measured or proven. (Objectives that don’t match the aspects).

Please get ready for “Green Certification Part II:  Here’s How To Do It”.

Agenda 21 was the principal output of the United Nations Conference on environment and development (the, “Earth Summit”). The International Organization for Standardization (ISO) offers standards or gives guidance on good management standards in support of Agenda 21. The ISO 14001 provides its requirements for an Environmental Management System (EMS) that confirms global relevance for all size organizations wishing to operate under environmentally sustainable operations. It is an internationally accepted specification. With the help of environmental consulting firms, the standards can be applied to any organization, large or small, whatever its product or service, in any sector of activity, and whether it is a business enterprise, a public administration, or a government department.

The principle elements, stated in an EMS are presented below:

1. Environmental Policy Statement (environmental aspects & impacts of products, services, activities, and services, including intra-and inter-organization operations),
2. Planning (environmental aspects, legal and other requirements, objectives and measurable targets, environmental management programs),
3. Implementation and Operation (structure and responsibility, training, awareness, and competence, communication, environmental management system documentation, document control, operational control, emergency preparedness and response),
4. Checking and Corrective Action (monitoring and measurement, non-conformance and corrective- and preventative- action, records, environmental management system audit)
5. Management Review

Okay, you’re probably thinking, “I’m a bit overwhelmed by all of this! And, what can I do to actually represent my company is “green”?” Its entirely probable in your business your Environmental Management System is just an approach for doing things that you think are “green”, e.g., turning out lights, recycling, walking or biking to work, etc. (Don’t get me wrong! These are all great things to do.). But your system isn’t written down and likely known only by one or a few individuals in management with little or no communication. Everyone has the “green spirit” and each is contributing by doing his or her own thing.

Not all companies will want to go through the ISO 14000 certification process (many large companies do). Companies that don’t wish to become certified can implement the standards to be considered as third party compliant. Environmental consulting firms can suggest some ways to implement a “green” company system that minimizes harmful effects on the environment caused by its activities in an effort to achieve continual improvement of its environmental performance:

1. Plan - establish objectives and make plans (analyze your organizations situation, establish your overall objectives and set your interim targets and develop plans to achieve them.
2. Do - Implement your plans (do what you planned to do).
3. Check – Measure your results (measure/monitor how far your actual achievements meet your planned objectives.
4. Act – Correct and improve your plans and how you put them into practice (correct and learn from your mistakes to improve your plans in order to achieve better results next time.

The items that go into your plan are based on your specific industry type. The depth and detail is also driven by your companies size, but many of the same principles apply:

* Waste and toxics elimination that includes, but is not limited to, product creation, materials, manufacturing processes, delivery, consumer and end of life for products you use in your daily business activities or products that you sell to others,

* Toxics reduction and elimination (“The Ban List”)

* Reduce Greenhouse gas emissions by performing teleconferencing and web conferencing instead of traveling,

* Tracking and reduction of wastes,

* Purchase automobile hybrids,

* Alternative Transportation (walking, car pooling, biking, public transportation),

* Community involvement and volunteering,

* Reduce consumption of non-biodegradable products (plastics),

* Join and participate in associations dedicated to providing regulations, monitoring industry and enforcing compliance,

* Buy from ISO 14000 certified retailers and manufacturers with in-place programs for soil, groundwater, surfacewater, and air regulations in third world countries that are protective of human health and the environment (to US Environmental Protection Agency standards),

* Use recycled products,

* Conserve resources (e.g., water),

* Replace inefficient equipment that consumes energy,

* Encourage and support state and local government (cities, counties) to establish and implement environmental sustainability policy, guidelines and regulations for organizations that desire to conduct business in their jurisdictions,

* Join organizations in your specific industry that assist you in implementing environmental sustainability for your services and products

* Work toward Best Management Practices (e.g., recycling).

The objective of any EMS, leading to environmental sustainability, and the goal of environmental consulting firms, is to reduce our carbon footprint on the earth. Hopefully, I’ve been successful in raising your consciousness, awareness and credibility about what “green” means. Now it’s time to act! Then after your company creates and implements an EMS program you may be proud to represent that your company is “green”.