Global Warming Solutions Reports

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Greening The Bottom Line 8/9/2006 Download the full report.

Executive Summary

Cutting global warming pollution can be good for California businesses and our economy.

Pioneering businesses across the Golden State are beginning to do their share to cut global warming pollution by being smarter about how they use energy and switching to clean, renewable energy sources. At the same time, they are finding that these strategies improve their competitiveness and help the bottom line—cutting energy costs, reducing exposure to volatile fossil fuel and electricity prices, and attracting environmentally aware customers.

This report highlights 12 such businesses or institutions and demonstrates the kinds of gains that can be had across California from an organized, statewide effort to reduce the state’s global warming pollution. Altogether, the companies profiled below have reduced their global warming emissions by more than 100 million pounds per year—while reducing their annual operating costs by more than $13 million.

Adobe Systems Incorporated, San Jose

Adobe has implemented 45 energy efficiency and conservation projects at its headquarters in San Jose, from installing more efficient lighting to reprogramming the central heating and cooling systems.

• Economic Benefits: Invested $1.1 million; reduced operating costs by just over $1 million per year.

• Global Warming Benefits: Cut carbon dioxide emissions by 16 percent (more than 11 million pounds) while increasing the number of employees.

Westfield Corporation, locations statewide

Westfield Corporation upgraded lighting systems at its seven San Diego-area shopping centers with more efficient technology, reducing electricity use by 19 percent. Westfield is nearing completion of a similar upgrade at 23 shopping centers nationwide.

• Economic Benefits: Expects to reduce energy paying off investment in less than 24 months.

• Global Warming Benefits: Nationwide, will reduce global warming pollution on the order of 40 million pounds per year.

P-R Farms, Clovis

In 2005, P-R Farms installed one of California’s largest privately-owned solar photovoltaic systems on the roof of its packing house, where employees pack, store and ship over 1 million boxes of fruit per year.

• Economic Benefits: Cost $3.2 million after rebates and credits; reduced monthly electricity bills by up to 80 percent; will reach full payback in 10 years.

• Global Warming Benefits: Prevents 1.6 million pounds of carbon dioxide emissions annually.

San Diego Association of Governments (SANDAG)

SANDAG’s RideLink program assists employers and commuters with alternative transportation to and from work—helping QUALCOMM win a 2nd place raking in EPA’s Best Workplaces for Commuters Program.

• Economic Benefits: In fiscal 2006, RideLink estimates that it prevented nearly 2 million commuting trips, saving more than $50 million in fuel costs, reduced travel delays and other benefits.

• Global Warming Benefits: The reduced vehicle travel avoided 125 million pounds of carbon dioxide pollution.

Bentley Prince Street, City of Industry

Bentley Prince Street, California’s largest commercial carpet manufacturer, reduced the amount of energy and resources used in carpet production, improved lighting efficiency, installed solar panels, purchased renewable energy credits and pursued a number of other projects to improve sustainability.

• Economic Benefits: Reduced the cost of manufacturing a unit of carpet by 48 percent since 1994, saving $3.8 million in 2005.

• Global Warming Benefits: Reduced its global warming pollution by 75 percent (33 million pounds of carbon dioxide per year) in the last decade.

California Environmental Protection Agency, Sacramento

The California Environmental Protection Agency (Cal/EPA) built a new headquarters building in Sacramento using a suite of energy-smart features, including an efficient lighting system, an efficient heating and cooling system, rooftop solar panels and daytime janitorial services.

• Economic Benefits: Cal/EPA staff estimate that the green features added no more than $2 million (or approximately 1 percent) to the cost of the building, and save over $1 million per year in reduced energy and operating costs.

• Global Warming Benefits: The building purchases 100 percent renewable energy from the Sacramento Municipal Utility District and has zero electricity-related global warming emissions.

Children’s Hospital Central California, Madera County

As part of a pilot Energy Star program with the U.S. Environmental Protection Agency (EPA), Children’s Hospital Central California upgraded
lighting and mechanical efficiency, saving over 4.5 million kilowatt-hours (kWh) per year.

• Economic Benefits: The measures save more than $400,000 per year on energy costs; many projects paid for themselves in less than 1-2 years.

• Global Warming Benefits: Cut carbon dioxide emissions by more than 5 million pounds annually.

San Mateo Community College District, San Mateo

San Mateo County Community College District made energy efficiency improvements and installed cogeneration units that generate electricity for on-site use and use leftover energy to heat dozens of buildings on two campuses, cutting energy use by 56 percent.

• Economic Benefits: Avoided $1 million in energy costs in 2005.

• Global Warming Benefits: Reduced carbon dioxide pollution by 6.4 million pounds per year.

Naval Base Coronado, San Diego

Naval Base Coronado replaced over 1,000 lightbulbs on its airstrips and heli-pads with Light Emitting Diodes (LEDs)—brighter than the old bulbs while using 90 percent less energy.  Additionally, the base replaced over 200 clothes washers with more efficient models and installed a large solar photovoltaic system on a covered parking lot.

• Economic Benefits: Reduced operating costs by over $500,000 per year; individual projects have a projected return on investment up to 26 percent.

• Global Warming Benefits: Cut carbon dioxide emissions by more than 4 million pounds per year.

California Portland Cement Company, Mojave and Colton

California Portland Cement Company worked with the EPA’s Energy Star program to improve the efficiency of its manufacturing process. As a result, the company cut annual electricity consumption at one plant by 10 percent in 2005.

• Economic Benefits: Saving nearly $3 million on electricity bills annually.

• Global Warming Benefits: Reduced global warming pollution by over 27 million pounds per year.

Clarum Homes, Watsonville

In 2005, Clarum Homes finished construction of the country’s largest community of zero-energy homes and apartments, Vista Montaña. Due to positive response from buyers, Clarum now builds zero-energy homes exclusively.

• Economic Benefits: Efficient features and solar panels save Vista Montaña homeowners an average of 67 percent on their electricity bills, or over $1,200 per year—giving Clarum a unique marketing tool.

• Global Warming Benefits: Vista Montaña prevents roughly 2 million pounds of carbon dioxide emissions annually.

Los Angeles Unified School District

Los Angeles Unified School District is prioritizing energy efficiency in a massive school construction and repair project, upgrading lighting, heating and cooling systems in hundreds of schools.

• Economic Benefits: In 2005, the district installed measures reducing energy costs by over $950,000.

• Global Warming Benefits: These measures reduced global warming pollution by over 7 million pounds per year.

These case studies demonstrate that reducing global warming pollution at California businesses and institutions can be good for the environment—and profitable too.When companies think seriously about their energy use and global warming impacts, they find opportunities to use less energy, use it more efficiently, and generate it from renewable sources. At the same time, these opportunities can help companies achieve greater financial success.

Policy Recommendations

Just as the companies profiled here are leading California toward solutions to global warming, California should lead the country in reducing global warming pollution.

California should establish policies that encourage all businesses to invest in cost-effective ways to reduce global warming pollution.  Toward that goal, the state should:

• Establish mandatory limits on global warming pollution from the state’s largest sources and reduce statewide emissions 25 percent by 2020 and 80 percent by 2050.

• Defend the state’s new global warming emission standards for cars and light trucks from legal attack by the auto manufacturers.

• Enhance funding for energy efficiency and distributed generation, promote smart growth and transportation alternatives, and require the state’s electric utilities to generate 20 percent of their electricity with renewable energy sources by 2010 and 33 percent by 2020.