May 2009 Archives

As the climate bill makes its way to the house floor for a full vote in the next couple of months, it's worth keeping in mind that passage is far from certain, even in a House full of Democrats. Carbon cap and trade remains highly controversial, and many Democrats in coal-producing parts of the country are going to be scouring over the details of free allowances before they will even consider voting yes on the bill. If the bill does not pass, it will be at least a couple of years before there's any movement on federal carbon standards since Washington will be caught up with midterm elections next year.

Over at Grist, Jonathan Hiskes has written an excellent piece on the nine House members who might cast the deciding vote, yes or no, on the bill. There are nine of them, all men, and all from coal-producing states. Hiskes generated the list using the geographic study of carbon impact I blogged about last week. The nine are from PA, VA, AL, IN, LA, ND, AR, TN, and MS. I think the analysis is spot-on, and by and large I agree with his predictions.

My power meter has a rotating disc that spins slowly when there’s little electricity being used, faster when a lot of electricity is being used, and stops when the power goes out. Millions of meters around the country work the same way. That rotating disc measures how much power my house is consuming, but it tells me nothing about where the power is being used, how the power is used, and how that usage compares in time and geography. In other words, it’s a measurement device, nothing more.

Smart meters seek to change all that. A chunk of the federal stimulus bill is to be spent on smart energy grids that include wireless sensors which transmit electric loads to utilities so that energy use can be managed rather than simply supplied. Even the smartest energy grid, however, can’t change consumer behavior unless consumers understand the energy implications in their own homes.

That’s where Google comes in. The internet giant’s philanthropic arm, which brought you innovative products such as Google FluTrends, recently launched Google PowerMeter. The service provides an informative graphical interface that allows users to analyze your power usage in detail, such as which appliances are using the greatest draw, to save money by making data-based choices, and even to share the data (for a neighborhood competition, for example). For now, the service is very much in beta mode and is partnered with only a handful of utilities. To really make a difference, more utilities will have to install smart meters and partner with Google.

IT companies that want to monitor energy usage currently have to pay a lot of money to do so. If more utilities implement smart grids and partner with third party providers such as Google’s PowerMeter, those costs may come down dramatically.

We focus a lot on this blog on the intersection of law, existing and proposed, and technology, especially in the I.T. industry. Apparently this is an area that a lot of you are concerned about. Digital Realty Trust recently commissioned an independent survey of senior executives at U.S. corporations responsible for data center and Green IT initiatives. The results are interesting, and not that surprising.

Sixty-nine percent of those surveyed said they were extremely concerned, or very concerned, about government regulation. Eighty-one percent said that carbon credits were now part of their IT strategy, compared with 18 percent in 2008. Fifty-three percent felt that the industry now has a clear idea of what a green datacenter is, compared with 82 percent who felt that there was no clear definition. Finally, 73 percent identified energy efficiency as a key feature of a green datacenter.

The key figure here is that nearly three-quarters of executives are extremely concerned or very concerned about government regulation. And you should be, as Congress and the president continue to move towards greater environmental regulation. As these moves play out, we'll continue to bring you updates and analysis, right here. So bookmark us, add us to your RSS feeds, and let us know how we're doing.

• The Japanese government announces plans to create a massive cloud server that could eventually host all Japanese government software. The servers are to be located in cold regions, will use wind and solar power, and placed underground where temperatures are more stable.

• A new report, Global Green IT Power Management Market 2008-2011, has been released. Purchase and download here.

• Anoter report, Best Practices in Green IT 2008, is also available here.

• Google is investigating using tidal energy power to power servers mounted on a flotilla of boats moored three to seven miles offshore.

• Cisco launches Smart Grid Solutions, to help utility companies measure and manage power supplies more securely and efficiently.

• AT&T announces a new, first-ever, Chief Sustainability Officer.

• Cisco will share its own experiences with the Cisco Unified Computing System, including environmental sustainability and energy savings, in a May 27 webcast.

The American Clean Energy and Security Act, also known as the Waxman-Markey bill, passed the House Energy and Commerce Committee on Thursday by a vote of 33-25. The bill, which we have been following closely on this blog, will now move to other committees for consideration. Chairman Waxman plans on moving the bill to the floor for a vote by July.

In its current iteration the bill requires greenhouse emissions to be reduced by 83 percent of their 2005 levels by 2050. Carbon emissions would fall into a cap-and-trade scheme, with 85 percent of the permits given away for free for the next 20 years. Utilities must buy 12% of their electricity from renewable sources. The auto industry is also targeted for assistance for shifting towards lower-carbon vehicles. Finally, building codes will be amended to make buildings 30 percent more efficient by 2010 and 50 percent more efficient by 2016.

The House Energy and Commerce Committee continues to debate the Waxman-Markey Energy Bill, with an eye towards moving the bill out of the committee for a full House vote before the Memorial Day recess. On Tuesday, the Committee held a marathon 14-hour session to consider a series of Republican amendments designed to kill the bill. All the offered amendments failed.

Now, Republicans have threatened to force a reading of the bill and the amendments. The bill is 946 pages long, and a motion to read the bill would be an attempt to delay the bill from moving to the floor for a vote, where it will almost certainly pass. Democrats have countered the move by hiring a speed reader, who, if forced, could read the bill in nine hours.

On Wednesday, Democrats revealed a list of companies that support the legislation, including Duke Energy, Shell, Alcoa, US Steel, Dow Chemical, John Deere, and Exelon Corp. The list took a lot of wind out of the GOP's sails, as one of the principal arguments made by Republicans is that the bill will hamper business growth. Republicans did not react well to the list.

I continue to hold on to my prediction that the bill will make it to the floor for a vote, and will pass the House of Representatives. There are many details in the bill that will still need time to be aired out, details that will undoubtedly affect the IT industry, and I'll continue to blog about this once-in-a-generation bill as it winds its way into law.

Pretty significant news out of the EPA. We've all seen the Energy Star logo on appliances such as laundry machines and dishwashers, and the logo is also seen on computer equipment such as home and office PCs. The logo was nowhere to be found, however, on computer servers. A couple days ago, the Environmental Protection Agency released its long awaited Version 1.0 for Energy Star certification of computer servers. Servers that meet the specification are 30 percent more energy efficient than standard servers. According to the EPA, if all servers sold in the U.S. were Energy Star certified, it would result in energy savings of over $800 million and prevent greenhouse gas emissions equivalent to those of 1 million vehicles.

In order to meet the specification, servers must use efficient power supplies that generate less waste heat, include capabilities to measure real time power use, processor utilization and temperature, and include advanced power management features.

Next step: Energy Star for data centers?

When I teach NAFTA to my international business students, many of whom come from families that have never considered the negative consequences of trade liberalization, I struggle sometimes to demonstrate to them how entire communities and indeed, entire industries, have disappeared from the American landscape as a result of lowered trade barriers. Although it’s easy to talk about the benefits of NAFTA, such as lower prices for American consumers and higher wages for Mexican workers along with more labor and environmental protections, these benefits may ring hollow for the steel, cotton, or auto worker whose company has closed a plant down and shifted production to Mexico. The bottom line for the United States is that while NAFTA has been good for the economy as a whole, zooming in on certain areas of the country reveals that what’s good for the entire country can in fact be devastating for certain areas.

The same is true for carbon cap and trade, according to a new academic paper by Michael Cragg of The Brattle Group and Professor Matthew Kahn from UCLA. Carbon Geography: The Political Economy of Congressional Support for Legislation Intended to Mitigate Greenhouse Gas Production, argues that the energy bill currently debated in the House will have dramatically difference costs on Americans depending on where they live. Different areas of the country emit far more pollution on a per capita basis than other parts, as this Google Earth project shows. A Reuters columnist sums it up this way: “[Carbon cap and trade] will result in large distributive consequences and income shifts, hitting some groups far harder than others.”

I think this report is very useful because it predicts the political uncertainty surrounding passage of the climate bill. States that emit a lot of carbon and have low populations are going to suffer higher costs under cap and trade. States with higher populations, however, will bear relatively lower costs.

For the IT industry, there are lessons here on where to focus lobbying efforts in addition to making plans for green data centers. Since date centers can be located jus about anywhere, it’s conceivable in the future that data centers may be located in remote regions with high prevailing winds, lots of sunlight, or cold temperatures. If that’s the case, then the industry should begin to think now of how to inform members of Congress from those regions that carbon cap and trade may not be as damaging as they fear.

News Roundup

• Mimecast announces that it has eliminated 8349 servers from clients’ IT footprints with Software-as-a-Service (SAAS)-based unified email management services.

• NPR interviews Van Jones, special adviser for green jobs to President Obama. Definitely worth a listen as Jones describes the transformation of blue-collar jobs into green jobs, such as electricians who install solar panels.

• Aveta Solutions, LLC, offers green Six Sigma certification to companies interested in driving out waste as well while improving the planet at the same time.

• PEER 1 Network Enterprises begins work on a 41,000 sq ft green data center in Toronto. Features include an on-site well, high efficiency centrifugal chillers, and heat exchangers to take advantage of free cooling the cooler months.

• A new survey of senior data center professionals in Europe reveals 70 percent are extremely concerned or very concerned about the impact of green regulations on data centers.

• BDNA Insight launches software to help businesses accelerate Green IT initiatives and cut costs by up to 35 percent.

• SCG Services LLC announces an expansion of its Tier IV green data center in central Ohio.

• SAP acquires Clear Standards, a U.S.-based company specializing in helping companies measure, optimize and report greenhouse gas emissions.

• Not to be outdone, Oracle purchases Virtual Iron, a producer of virtualization software.

For the second year in a row, National Geographic has published its Greendex index, which measures and monitors consumer behaviors that have an impact on the environment. The index surveys 17,000 consumers in 17 countries. And once again, the United States scores dead last in housing, transportation, and goods, and near to last in food.

Here are some highlights that jumped out at me. On housing, 30 percent of Americans live in homes with 9 more more rooms, compared with a country average of 8 percent. American homes are among the least likely to have on-demand hot water systems. One bright spot is that 58 percent of Americans use cold water to launder, a 10 point increase.

Transportation brings down the US index substantially. We are likely to have much larger vehicles, drive alone (58 percent drive alone daily), and are among the least likely to drive compact cars, use public transportation, or walk or bike to work.

The U.S. ranks lowest on goods as well, with Americans more likely to own large appliances such as dishwashers and multiple televisions. We are less likely to bring our own bags to stores (although this score is up 14 points from last year). One interesting note is that more American consumers believe that the extra cost of environmentally friendly products makes them "not worth it."

Finally, on food, the U.S. does not rank last (yay!). We rank 13 out of the 17 countries surveyed. The food index is helped by an increase in consumption of locally grown food, a decrease in drinking bottled water, and being infrequent consumers of imported foods.

More data on the countries surveyed can be found here.

From Tuesday's Internetnews:

SAP is betting on green solutions to boost the bottom line -- both in its own business and customers'.

The German software giant today announced the acquisition of Clear Standards, a provider of carbon footprint tracking software.

Full story

Hmmmm. Anyone want to weigh in on what SAP might be thinking?

This week's Cover Your Assets column on ServerWatch highlights five fairly painless areas to save money and energy.

Included among them:

Alternative Desktops: When your standard desktops die off or become obsolete, replace them with something alternative for the same price as traditional fare. Save significant money on power by choosing energy-saving models.

Power Management: Most office equipment has power saving settings. Check your user manual on how to set those for each device that stays on all the time. If a computer or office machine doesn't participate in nightly maintenance, updates or backups, power down those devices at the end of each workday. It's far less costly to power up than to leave everything on.

Read the complete article, here.

The Waxman-Markey Energy Bill continues to wind its way through the House of Representatives. Rep. Waxman, Chair of the Committee, has publicly stated that he wants the bill to come to a vote by Memorial Day, so the Committee has been working furiously, holding hearings, making amendments, and consulting with various stakeholders in an effort to secure passage. There's almost no question that Republicans as a whole will vote No on the bill, but even with a commanding majority of Democrats in the House, passage is not guaranteed unless the concerns of moderate Democrats and those from coal and auto states are satisfied.

One of the biggest points of contention is the allowances to be given to various industries to emit carbon. The Obama administration envisions that one day, all allowances will be sold by auction, much like spectrum is sold today for television, radio, and cell phone service providers. The draft bill was silent on the issue of how allowances would be priced. Yesterday the Wall Street Journal reported that an amendment to the bill to permit certain industries such as coal and autos some "free" allowances, at least in the first few years, means that the budget deficit will grow bigger than anticipated:

Beginning in 2012, the White House budget had counted on the sale of greenhouse-gas emissions permits to bring in $77 billion to $79 billion a year through 2019. Of the $624 billion in revenue, the White House allocated $504 billion to a $800-per-family tax cut for households with incomes below $150,000, in part to offset the impact of the cap-and-trade system on electricity rates. An additional $15 billion a year was dedicated to developing and deploying renewable-energy efforts to replace the fossil fuels being hit by the pollution trading system.

The White House is realizing that making industries pay to emit carbon, from Day 1, is never going to fly politically and that the billions to be raised by selling allowances are a few years away at best. It looks like 35% of allowances will be given for free to electric utilities, with an additional 15% going to aluminum, glass, and steelmakers, while the auto companies get 3% of the allowances for free.

The other major sticking point in the legislation is the target for carbon reduction itself. President Obama campaigned on a promise to reduce carbon emissions to 20% lower than 2005 levels by 2020. The compromise bill, likely to be introduced tomorrow, will set that target at 17% instead.

I've previously blogged about the problem surrounding green product certification -- there are too many standards, the standards are ill-defined, and the marketplace is generally confused about whether a product is truly green or if it's just a paid label to make customers feel good about their purchases. The same problem applies to IT professionals who may be asked by their organizations to create Green IT strategies. Some have deep knowledge about Green IT, others may not know much, and still others may be interested in the green technologies but don't really know much about how legislation and cost intersect with green IT strategy.

The British Computer Society is seeking to change that, at least in Great Britain, through the establishment of a three-day program that will lead program participants to a Foundation Certificate in Green IT. The syllabus begins with a definition of Green IT, followed by a section on how to measure an organization's current environmental impact (such as measuring carbon) and exploring various green technologies such as virtualization and power efficiency, and concluding with a section on implementing Green IT within organizations. More information, including FAQ's, are here.

I can't help but think this is a positive development that will soon be mimicked in the United States. The regulatory environment in Great Britain and the EU generally is far more stringent than the U.S., but with looming legislation bound to affect the IT industry in the U.S., a certification program, even if it's just a foundation course, will be helpful to both IT professionals and hiring companies.

News Roundup

• Is the Net Hurting the Environment? The New Scientist explores this provocative question.

• Fair Issac Corp., the good folks who publish your FICO score, is going green. It has saved $1.1 million by implementing PIN-based printing.

• Forrester Research predicts the Green IT service market will grow 60 percent by 2013 to $4.8 billion.

• Another Forrester survey concludes that in 2009, 31 percent of U.S. businesses rank green IT initiatives as a top priority.

• If you have Nexsan drives and turn on the AutoMAID technology for 30 days, Nexsan would like to send you a free gift.

• According to IBM, 70 percent of firms in Brazil are considering Green IT initiatives.

• Got an extra $3395? Consider downloading “Does Green Still Mean Go for the Manufacturing IT Industry in a Recession?”

• If you’re looking for something cheaper, for $1000 there is Green IT Asset Disposal & Recycling 2008-2011.

• Microsemi Corporation announces its Green Power over Ethernet (POE) Certification Program.

Interesting article over at Internetnews about how going green is no longer about pain and making do with less. These days, the focus is on saving money, adhering to the law and gaining respect.

Specifically, the article points out

... green IT initiatives will help a company look good by producing positive press coverage and mitigating negative coverage, make a company feel good by helping individuals do the right thing, and will also save money by lowering energy costs.

Well worth checking out.

Follow the Green IT Blog on Twitter.

• Pete Foster argues that when the economy recovers, Green IT will once again be a priority for companies, and opportunities abound for those who are ready.

• Active Power, makers of flywheel-based UPS for green power in data centers, announces a 48 percent increase in revenue compared to last year.

• T-Mobile announces plans for a SIM-based device that plugs into smart meters and lets T-Mobile handle the backhaul of sending electrical monitoring data to a utility.

• The L.A. Times profiles the future CleanTech Manufacturing Center, a business incubator for green technology.

• California State University East Bay is honored with a “Green 15 Award” for server virtualization of its data center.

• If you’ve got $2875 burning a hole in your pocket, you can download the Best Practices in Green IT report.

• SonicWALL releases a Green IT calculator to calculate the cost and environmental savings of going green by implementing telecommuting.

Yesterday President Obama met with key Democratic lawmakers to push for action on climate change legislation, especially the carbon cap and trade bill under consideration in the House of Representatives. Not much action came out of the meeting, but there was an agreement to push forward to the "cash for clunkers" program to provide incentives for folks with older gas guzzlers. The new plan is weaker than the Sutton plan I blogged about here, and it also removes one of the key objections to Sutton's plan, that vehicles be built in North America.

Under the new plan, four categories of vouchers are created. Under the passenger car category, the old vehicle must get less than 18 mpg. If the new vehicle gets at least 4 mpg better than the old vehicle, the government will give buyers a $3500 voucher. If the new vehicle gets at least 10 mpg better than the old vehicle, then the voucher will be worth $4500. Under the light truck category, the old vehicle must also get less than 18 mpg. If the new light truck or SUV gets at least 2 mpg better, then the voucher is worth $3500, while if the new light truck or SUV gets at least 5 mpg better, then the voucher is worth $4500. You can find more details of the plan here.

The government estimates the plan might replace up to 1 million vehicles currently on the road, not a tremendous impact considering there are 250 million vehicles on US roads currently. There is still no mention of where the money for the plan will come from, and how the Senate will react to the plan.

The most charitable description I can think of for this plan is "modest." The auto industry could certainly use a lift in volumes right now, but a plan that only lasts for one year has a real danger of bottling demand on the early side as consumers wait to see more details, and evaporating demand at the end of the program as the artificial demand created by the program wanes. Plus, has anyone considered what this does to the value of older SUVs that qualify for the program? If I'm in the market for a new car or truck, I'd be looking anywhere I can to find a qualifying "clunker" so that I can get my government voucher. I'm sure this is not an intended consequence, but as with all legislation, the devil is very much in the details.

And can we please stop calling this "cash for clunkers"? Surely our government can come up with a better name than that.