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Mayors Who Go Green…, Save Green  BY DR. EDWARD H.SALMON AND RICHARD S. MROZ, ESQ., SALMON VENTURES LTD

            Energy conservation has become a major priority across the nation with the hopes of reducing the emission of harmful pollutants and greenhouse gases. New Jersey’s communities are taking part in this national endeavor by investing in a number of “green” initiatives. As of the New Year, 83 Mayors from New Jersey were part of the over 750 communities across the country who had signed the US Conference of Mayors Climate Protection Agreement. New Jersey ranks second only to California in the number of municipalities who have committed to this pact. The Climate Protection Agreement urges the federal government and US Congress to adopt and enact legislation, policies and programs aimed at the reduction of greenhouse gas emissions. Mayors who sign the Agreement also commit to meeting or exceeding targets of the Kyoto Protocol within their respective communities through a number of conservation tactics. In June 2007, the U.S. Conference of Mayors also endorsed the EPA’s Energy Star Challenge, which aims to improve energy efficiency by 10% or more in commercial and industrial buildings across the nation. 

            A good place to begin for Mayors who have signed on to meet these goals or who simply want to “go green” with their community operations is to establish a “carbon footprint.” A carbon footprint is a measurement of the total amount of carbon dioxide and greenhouse gases emitted from an individual, an organization, or in this case, a municipality’s use of products and services. The footprint can be calculated based on monthly energy consumption, vehicle use, and other factors for a total assessed figure. Once a verifiable carbon analysis is made for you community, the subsequent goal should be reducing that figure by at least 10% based on the goals of the US Conference of Mayors Climate Protection Agreement and the EPA’s Energy Star Challenge. 

            There are a number of practical steps that can be taken to make these reductions. First, identify areas that use high amounts of energy and formulate solutions to help conserve in those areas. For example, switching to Compact Fluorescent Lamps in all government facilities, as well as promoting incentives for members of the community to use them in their homes is a simple energy solution with a huge positive environmental impact. On average, a standard incandescent bulb lasts between 750 to 1,000 hours, while Compact Fluorescent Lamps last between 6,000 to 15,000 hours, which is a 91% longer life. In addition, Compact Fluorescent Lamps consume approximately one quarter of the power of incandescent bulbs. Consequent cost savings results from the longer life and reduction of energy it takes to light the bulb.  

            Another growing option for many municipalities is the installation of solar panels on government buildings. Solar energy is clean, cost-effective, and in most cases can be installed at no cost to the benefiting municipality. Vendors in the solar energy market offer Power Purchase Agreements, or PPA, in which a third party owner covers the cost of the system installation and takes full responsibility for its operation. Then the municipality enters into a contract to purchase the system’s power at a predetermined rate from the third party owner. Built into the PPA is typically a solar rate escalator, which means each year the rate for the electricity from the solar system increases in the range of 2% to 3% irregardless of regular increases in the wholesale energy market. The result is a clean, reliable energy source that reduces energy consumption, costs, and harmful emissions.  The Toms River School District placed solar panels on over twenty of its school buildings providing the district with 20% of its electrical needs. The New Jersey-American Water plant at Canal Road in Somerset, NJ uses solar energy to power 15% of the plant and saves $125,000 annually.  

            Another service that has become recently available in the energy market is reverse auctions. All energy consumers have the option to purchase their electricity from third party vendors as opposed to the larger wholesale provider. In a reverse auction, these energy suppliers compete to win a customer’s business. The process takes place online and begins when an organization posts a request for energy service bids. The auction is slated for a specific time and usually lasts about an hour, during which four or five energy vendors compete for the lowest bid. The process is called a reverse auction because the goal is to get the lowest bid possible, instead as in a usual auction being the highest bidder. At the end of the hour, the participant with the lowest bid wins the auction and is immediately entered into a contract with the customer. Besides the obvious benefit of achieving lower energy rates, a municipality has the option of performing multiple auctions for different components of its operations. For example, with a number of buildings in a municipality’s government operations, an auction can be performed for each individual building, and service contracts can vary in length of time. So instead of paying a flat rate for all of town’s energy consumption, the rates vary in different areas. Part of the request for service can include a stipulation that a percentage of the purchased power be provided from green energy sources. This percentage can not be high, but 10% green power falls right under the Conference of Mayors and EPA’s goals.    

            Reevaluating your municipality’s vehicle fleet use is another beneficial step with a variety options. Mayors can increase the fuel efficiency of their vehicles, reduce the number of vehicles in the motor pool, switch to bio-fuel, and educate drivers on fuel efficiency practices. Especially with rising fuel costs and with the use of diesel vehicles, investment in this area should be a fiscal priority as much as an environmental one for any community.  

            The benefit of these environmentally friendly steps is that they go hand-in-hand with fiscal responsibility. It is the goal of every Mayor and their municipal government to spend wisely and keep their budget low. Likewise in the recent few years, “going green” has gone from just an optional, good idea to an absolute necessity for every individual and organization in this state and in this country. Energy costs will only continue to rise in the coming years, but by investing in environmental friendly solutions, Mayors can reduce their community’s spending and reduce carbon emissions in the process.

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