Rocky Mountain Institute/volume xviii #3/Fall 2002 RRMMIISSoooolllluuuuttttiioioioonnnnssss newsletter S m all is Pro f it a ble Today’s electricity problems—and costs— are in the grid B y A mory B. Lovins For the first century of electrical power, as Profitable: and Jeremy Heiman generating plants became larger and more The Hidden centralized, delivery of power became Economic lectricity has been so successful more and more dependent on the grid. Benefits of providing the energy needs of citi- Driven by demand that escalated as costs Making Electrical Resources the Right Ezens and industry that many of us declined, the size of power plants grew Size, written by RMI cofounder and CEO can’t imagine life without it. Flip a switch, during the first years of the 20th century. Amory Lovins and six coauthors. Small Is a light comes on. Spin a dial, a fan begins The complexity and size of the grid Profitable builds on the assertion central to whirling. Crank a knob and a pump starts increased at the same time. But by the Lovins’s groundbreaking 1977 work, Soft pushing. Electricity has become a pervasive early 1990s, it was Energy Paths, arguing that energy efficien- and essential force in modern life because clear that utilities cy and cheaper electricity from small, it is a versatile, convenient, controllable, were no longer put- renewable sources of energy will gradually clean-to-use, and generally reliable form of ting many large replace the output of large, centralized fos- energy. Although only about one-sixth of power plants in their sil fuel-powered generating stations and the total energy delivered in the United shopping carts. By nuclear plants. States is electrical, electric power provides 2000, decentralized A m ory Lovins our highest-quality energy services. electricity produc- Through the 20th century, coal- or oil-fired tion was the subject of stories in such steam turbine power stations evolved from But once in a while, the lights won’t go mainstream publications as The Wall Street local, neighborhood-scale generators into on. It could be due to a thunderstorm, a Journal, The Economist, and The New huge, remote, regional power plants that traffic accident, or anything else that can York Times. Power users and utilities alike often served customers hundreds of miles compromise reliability in an instant. are recognizing that smaller power sources away. Power distribution infrastructure Simple power failures such as these— that can reduce dependence on the grid evolved as a network rather than a direct as well as more complex ones—almost also have substantial economic benefits. line from producer to user, because inter- always originate in the grid, the complex lacing the unreliable power stations of the transmission and distribution network The economic advantages of these smaller early days with complex transmission sys- that gets electricity from today’s giant power generating units is the subject of an tems made consumer power more reli- power plants to the consumer. important new book from RMI, Small Is able—if one plant went on the fritz, the consumer was still hooked up to the rest. As economies of scale drove utilities to W hy C olor? build ever-larger power plants, the grid “Advances in printing technology, such as computer-to-plate press (CTP) became more complex. Distance, complex- imaging, has enabled four-color printing to become more energy- ity, and age made the grid steadily less reli- and resource-efficient and more cost-effective than two-color printing. able at the same time power plants were It also allows us to keep the presses in four-color process, eliminating becoming more dependable. ink waste and special cleanups.” Rich G arigen A rea A ccount Manager, C olorado Printing C ompany continued on next page “Central thermal power plants than a decade old, no systematic economic resources” the right size for their task can stopped getting more efficient rationale for a new pattern has been avail- boost their economic value, typically by in the 1960s, able up to now. The advantages, economic about tenfold, though the exact value is bigger in the ’70s, and otherwise, presented by distributed site- and technology-sensitive. Electrical cheaper in the ’80s, and bought in the ’90s.” generation have yet to be widely under- resources are not only generating systems, stood across the industry. The shift in the but also devices that save or store electrici- Small Is Profitable Executive Summary scale of power generation facilities has ty. Some of the broader and more impor- increasingly been driven by the financial tant findings of the study include: risks of big, lumpy, slow-to-build power In today’s electricity market, however, the plants that have weakened many utilities • Financial economics: modern tools economies of scale that justified building big for portfolio management reveal a nearly (and bankrupted a few) that forgot Miss coal-fired and nuclear power plants have tenfold gain in value for renewable Piggy’s Fourth Law—“Never try to eat been outrun by diseconomies of scale, both sources, about 3–5-fold for nonrenew- more than you can lift.” But invisible to ables, from properly counting the in the grid and in generating plants. Mass most practitioners, partly because of disci- reduced financial risks of small, fast, production of smaller generating units offers plinary boundaries between electrical engi- portable, and (for renewables) constant- greater economies than big plants can gain neering and financial economics, are price resources. through unit size. Centralized power gener- scores of positive economic advantages of • Electrical engineering: lower grid ation is no longer cheaper even on its distributed generation. Small Is Profitable costs, fewer losses, and longer equip- own—and when supply is expanded, new for the first time assembles these “distrib- ment life, and more graceful handling of power plants now cost less than the grid failures can increase the value of a dis- uted benefits” and makes them widely linking them to customers. tributed resource by 2–3-fold, or even accessible. more if the decentralized generating project is located in an area with a con- Smaller power sources located at or near “E. F. Schumacher would be proud of gested grid or if the customer requires the customer, collectively called “distrib- this rigorous extension of his thesis high power quality or reliability. uted generation,” today offer many other in Small Is Beautiful. benefits not provided by big, centralized It shows how making systems the • Miscellaneous benefits: dozens of plants. The power quality and reliability right size can make them work better other benefits may combine to increase and cost less.” the value of distributed generation essential to high-tech businesses such as resources, typically by about 2-fold— semiconductor manufacturers and Internet Dr. D aniel Kammen Professor of Energy and Society and of Public more if heat produced as a byproduct of service providers is not available through Policy, University of C alifornia, Berkeley electricity generation is recaptured for the grid, so large, centralized power plants industrial processes or space heating. can’t compete in power quality with onsite Small Is Profitable is the first comprehen- • Management of external costs: costs or neighborhood-scale generation. sive analysis of how making electrical not directly charged to the power pro- ducer, such as the environmental or pub- resources the right size can minimize their Although the gradual shift from the old lic-health costs of combustion emissions, central-plant-based pattern is now more costs and risks and capture unexpected can be important, though they’re not sources of profit and advantage. It enumer- included in the roughly tenfold overall ates 207 ways in which making “electrical gain in value. RMInews N E P Initiative D raws Crow d On 26 June, RMI CEO Amory Lovins participated in a Congressional briefing on the National Energy Policy Initiative in Washington DC. The event, sponsored by the Environmental and Energy Study Institute and Rocky Mountain Institute, drew a crowd of over 170 people. The panel was designed to give insight and direction to the current Congressional energy debate. Congressmen Zach Wamp (R-Tenn.) and Mark Udall (D-Colo.), co-chairs of the House Energy Efficiency and Renewable Energy Caucus, provided opening remarks. Amory Lovins of RMI intro- duced the audience to the consensus-based process behind the NEP Initiative, while Jack Riggs of the Aspen Institute (former Staff Director of the main House energy committee) and Bruce Smart, retired Chairman and CEO of Continental Group and former Under-Secretary of Commerce, described the Initiative’s implications for reconciling the House and Senate energy bills currently in conference. For more information on the NEP Initiative, please visit www.nepinitiative.org.

2 RMISolutions F a l l 2 0 0 2 SIP

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S providers, cheaper electricity for cus- tomers, and a cleaner environment and a Small Is Profitable observes, though, that emerging from new technologies, institu- safer world for everyone. And when fully capturing the benefits of distributed tions, and attitudes. A clearer understand- we flip the switch, the lights will go on. electricity generation will require astute ing of why smaller power sources are And stay on. business strategy from those who develop superior could greatly accelerate their new smaller resources, and reforms of pub- transition by revealing many unexpected Please Visit: lic policy that currently makes some distrib- sources of value waiting to be captured www.smallisprofitable.org uted benefits invisible or uncapturable.

T O D AY’S Win d is Prof it a ble IN FLE C TIO N P OIN T The Rosebud Sioux Tribe recognized some time ago that their reservation in South- central South Dakota has great potential for generating electricity from wind. The release of Small Is Profitable at this Tribal lands in the Dakotas have a commercially attractive wind power potential of time may position the book to provide about 400 gigawatts (400 billion watts), compared with the less-than-800-gigawatt exactly the clear vision of the future that currently-installed electric generating capacity of the entire United States. has been lacking in the electric utility industry. It’s evident that a transition— During the writing of SIP, Amory Lovins observed that Native American tribes from large to small, from centralized gen- appear to be sufficiently sovereign to receive credit on international carbon erating plants to distributed generation—is trading markets for wind power development on their lands, yielding cash to help well under way. But it’s not clear to many finance transmission lines to industrial cities of the Midwest. Another option that in the industry how to use this transition appears economically viable is production of hydrogen, an energy carrier more to their advantage. Andrew Grove of Intel, valuable than electricity. Existing electric transmission infrastructure could carry in his 1996 book Only the Paranoid only a small fraction of the potential energy from wind in the Great Plains. Survive: How to Exploit the Crisis Points That Challenge Every Company and The Rosebud Sioux have taken the first step in realizing their wind potential by Career, describes such a time of wrench- installing one 750-kilowatt NEG Micon wind turbine on the reservation— ing transition as an “inflection point,” a a half-millionth of the Dakotas’ Tribal lands’potential. Starting in November, it is make-or-break point that quickly sorts busi- expected to generate about 2,400,000 kilowatt-hours of electricity annually, enough nesses into two categories: the quick and to serve about 240 households. About 14.2 percent of households on reservations the dead. Properly understanding an have no grid electricity, as compared to only 1.4 percent of all U.S. households. inflection point can be the key that allows Tribal officials see this first turbine as a start of an economic development a business to survive and prosper in the initiative that will bring a vital industry to the reservation, envisioning future new environment that results. value-added uses of wind energy such as greenhouses or fish farming. In many Small Is Profitable thoroughly and read- ways, the Rosebud Sioux’s example confirms that small, decentralized, and inde- ably explores the issues that will define pendent power production, á la SIP, works. the new power generating environment —Jeremy Heiman

RMISolutions 3 F a l l 2 0 0 2 The challenge for Hall, Colosky, and their M a n u f a ct urers Ex plore colleagues in industry is to see what the future possibilities might be for slashing Ave n u es to E f f icie ncy waste in manufacturing systems. That group, known as the Evolutionary B y Jeremy Heiman Evolutionary Manufacturing Discussion Manufacturing Discussion Group (EMD), Group events begin with a guest speaker in oday’s manufacturing plants leave convened at Rocky Mountain Institute in the morning, followed by an afternoon of a lot of room for improvement. mid-August. T Products are still rolling off discussion of the ideas inspired by the assembly lines designed in the 1950s and The gatherings began in May 2001, when speaker. RMI CEO and cofounder Amory ’60s, a time when energy and raw materi- Robert “Doc” Hall, professor emeritus of Lovins kicked off the meeting with a pres- als were cheap and environment was free. business at Indiana University, and Charlie entation of his popular parable about para- While some industrial managers have Colosky, a consultant and President of chuting cats into Borneo, a classic example of how a lack of whole-systems thinking become aware of the inefficiencies that are Operations Development Associates, Inc., can lead to unintended consequences. In perpetuated in factories, and are aware that of Mooresville, Ind., convened a discus- the early 1950s, the Dayak people of manufacturing isn’t as profitable as it could sion group “to look into the future of man- Borneo suffered from malaria. The World be, resistance to change is strong. ufacturing and management in general,” as Colosky put it. Members of the group Health Organization had a solution: the What to do about it? A few of the more deemed the initial meeting productive and WHO sprayed large amounts of DDT to kill progressive manufacturing managers, along decided to continue. The August meeting the mosquitoes that carried the malaria. with a handful of industrial consultants, at RMI was the group’s fourth. The mosquitoes died; the malaria assembled a discussion group last year to declined—so far, so good. But there were haul the twin ideas of efficiency and profit Many RMI Solutions readers have heard side effects. First, the roofs of people’s hous- into the open and allow them to mature. the term “lean manufacturing”— es began to fall down on their heads. It the systematic identification and elimina- seemed that the DDT was also killing a par- tion of waste from industrial processes. asitic wasp that had previously controlled RMInews For m er R M It e Grows O hio E n tre pre n e urs’ Grou p Last year we reported on the formation of a non-profit organization, the Entrepreneurs for Sustainability, that was doing good work in Cleveland, Ohio. Headed by former RMI intern and longtime associate Holly Harlan, the organization supports entrepreneurs who implement sustainability principles in new or existing businesses—in short, it’s where the ideas and principles of natural capitalism are brought to life. In 2001, the group saw some impressive growth—holding eight awareness and community building meet- H olly H a rl a n ings averaging 25 attendees per meeting. As of early August, in 2002 the organization had hosted five events averaging 70 attendees per meeting. In January, 80 entrepreneurs explored opportunities in the local and organic food industries. In March, 120 participants showed their support for emerging energy technologies and systems (energy efficiency, fuel cells, biodiesel, solar, wind, microhydro, etc.) in northeastern Ohio. This unique group includes entrepreneurs, inventors, business leaders, bankers, architects, developers, restaurant owners, manufacturers, educators, high school and college students, designers, engineers, researchers, writers, farmers, government planners, environmentalists, and capitalists. According to Harlan, each meeting produces contacts and ideas for participants, and many leave with renewed vigor for possible business opportunities. In only six months, one of the group’s members went from an idea to a partnership that is now delivering products. “My business owes its existence to the Entrepreneurs for Sustainability,” noted Ray Holan, of Biodiesel Cleveland. “I am now well into the start-up phase of a business that refines and sells biodegradable diesel fuel made from recycled cooking oil from local restaurants. I had been dreaming of developing a business that could ‘make a difference’ for some time, but had no organized way of making it a reality. That was before I heard about the Entrepreneurs for Sustainability.” For more information, contact Holly Harlan at [email protected].

4 RMISolutions F a l l 2 0 0 2 EMD Group

“Antibodies.” business. The root of the task with lean engineer, more often than not, has a pre- manufacturing is implementation—etching conceived idea of how things should be John Wallner Director of Manufacturing Engineering at nature’s impeccable, life-nurturing process- done, making efficiency innovations harder Tektronix, describing entrenched resistance to es into the hearts and minds of corporate to achieve. A bright engineer hired from change often found in large corporations. leaders, shop floor supervisors, and employ- another field might see more readily the ees at every level. There are multiple inefficiencies in a process because she’s thatch-eating caterpillars. Worse, DDT-poi- reasons why resource efficiency isn’t stan- inexperienced in that industry, and hasn’t soned insects were eaten by geckoes, which dard operating procedure for most firms. become blind to the waste. were in turn eaten by housecats. The cats started to die, rats flourished, and the peo- One of the facts of corporate sustainability Colosky observed that trying to find a way ple were threatened by potential outbreaks is that the companies that achieve it gener- for people to embrace change, a way that of typhus and plague. To cope with these ally have an enlightened CEO or leader- interests them and doesn’t overwhelm problems, which it had itself created, the ship team. While solutions might some- them, isn’t easy. Management exhibits a WHO was obliged to enlist the help of the times come from the bottom or the side, lot of resistance, for example, to leasing or British Royal Air Force to air-drop 14,000 top-down conversions are most likely to other conversions from product-oriented live cats into Borneo. survive. Worker-initiated advances in business to a service-oriented mode. Many waste-stream utilization are often swept are not even comfortable with leasing a This tale about a lack of whole-systems out of existence during periodic corporate car, he said, noting, “We feel ownership is thinking underscores that if we don’t restructuring. more secure.” understand how things are connected then often the cause of problems is solutions. RMI’s Catherine Greener, who organized Other ways of bringing about corporate But if we harness hidden connections, we the August meeting, noted that General change may work better. With the modi- can often solve or avoid a problem in a Motors at one time hired a bunch of “out- way that also solves or avoids many others of-the-box” engineers and “salted” various without making new ones—before some- departments with them, ostensibly to bring one needs to parachute more cats. Getting more new ideas into the design process. multiple benefits from single expenditures The plan was foiled, however. Every one is the core of integrative design. Because of the new engineers quit within a short current manufacturing systems are not period of time, because of resistance to based on whole-systems thinking, humans their ideas exerted by the old employ- generate a lot of waste. In the United ees. “Antibodies,” remarked John States, we each daily generate about 20 Wallner, a former Apple Computer times our body weight in waste. And that manager who’s currently responsi- massive flow of materials to no purpose, ble for instrument assembly at Lovins pointed out, is a vast business Tektronix. Institutional resistance opportunity. to change is sometimes known by that term. Lovins explained the four principles of natural capitalism (1. radically increase the Trent Spear, a manager with productivity of resources; 2. shift to biolog- ABB, a multinational manu- ically inspired production models; 3. move facturer of electrical systems to a solutions-based business model; and and components, observed 4. reinvest in natural capital), and used that a kind of corporate iner- real-world examples to show how nature tia stands in the way of the uses raw materials in ever-evolving but implementation of efficiency virtually perfect processes. measures. Executives often feel that an engineer who is experienced in the particular T h e C h alle n g e o f ‘Le a n’ field where he will be work- ing is the only sound hire to Inspired by Lovins’s talk, the EMD Group M a n u f a c t u rin g g ro u p m e m b e rs m e e t n e a r started applying its challenging message to make. But the experienced R M I’s so u t h e a st a n n ex. Photo: C ameron M. Burns

RMISolutions 5 F a l l 2 0 0 2 EMD Group The companies that achieve sustainability generally have an enlightened CEO or leadership team. fied architectural design charrette process Hiring and retaining talented young this young group satisfied themselves that that RMI uses, Lovins said, innovations employees, whose energy and new ideas they’re all seeking the same goal. Second, can be established more firmly by involv- are infectious, is also problematic. Harry the members had the opportunity to talk ing more personnel at more levels of the Ott, currently with The Coca-Cola about and compare their individual experi- corporate structure. “Once they approach Company, recalled that when previously ences in bringing a fundamentally different the design fearlessly, with a clean sheet, working for another Fortune 500 company idea like natural capitalism into the market- it’s pretty amazing what happens,” he said. one energetic young engineer came from place. All could compare experiences and MIT with enthusiasm that infected the begin looking for shareable, cross-sector After lunch, the group broke into three whole office. Unfortunately, he didn’t stay solutions. New connections were made, too, smaller discussion panels for the afternoon, long because certain people who were part and existing relationships were cemented as and took up the challenges of education, of the management team felt threatened by a result of the meeting, bringing new confi- employee retention, and management his talent and zeal. Transient executives are dence and camaraderie to the members. changes. Education might be one of the another major impediment to achieving The fourth accomplishment of the meeting root causes of unlean manufacturing. lean manufacturing and natural capitalism. was developing new ways to move forward Peter Senge, founder of the Society for Spear said he worries that, if natural capi- in the field of industrial efficiency and envi- Organizational Learning and a friend of talism is adopted by corporations, the con- ronmental consciousness. RMI, noted that a major flaw in the educa- cept won’t be sustained because of the fre- tion system in general is that adults train quent changes in management that plague In a Saturday morning session, group mem- young people for the current world, not many companies. “My fear,” he said, “is bers agreed there is a future for the organi- the very different world that will exist that leaders will bring in natcap and then zation, bringing the message of efficiency when they become adults. The factors that leave, and someone else will take over and environmental consciousness into will shape the future must be considered with some other idea.” industry. Doc Hall might have summed up along with the basics of business. Tom the discussions best when he said, “David Johnson, a professor in the MBA program is still looking at Goliath. These people S m all St e ps First at Portland State University, observed that have been beaten up enough times that business schools in the United States are Although no corporate revolutions were they know that change doesn’t come easily.” too often used primarily as a device for fomented during the day-and-a-half meeting, Who can say what the future might hold screening and recruiting executives. Colosky said some small-but-important steps for the small EMD Group? David was a towards getting sustainability into industry small guy, but he certainly put Goliath in were accomplished. First, the members of his place. RMInews A m ory Brie fs t h e Hill on M ilit a ry Fu el Wast e On Thursday 11 July 2002, RMI CEO Amory Lovins briefed a bipartisan Congressional group about the potential for energy efficiency in military applications. Energy efficiency improvements have enormous potential for enhancing military preparedness and national security and for reducing costs. Lovins led an expert panel that also included Vice Admiral Dennis V. McGinn, Deputy Chief of Naval Operations, Warfare Requirements and Programs, U.S. Navy, and retired Vice Admiral Richard Truly, who directs the National Renewable Energy Laboratory and chaired the Defense Science Board Task Force on which Lovins served. Its report Enhanced Warfighting Capability Through Reduced Fuel Burden was published in 2001. The Environmental and Energy Study Institute (EESI) and the House Energy Efficiency and Renewable Energy Caucus hosted the briefing, and Congressmen Zach Wamp (R-Tenn.) and Mark Udall (D-Colo.), co-chairs of the House Energy Efficiency and Renewable Energy Caucus, provided opening remarks. The public briefing, entitled “Battling Fuel Waste in the Military: How Energy Efficiency and Resilient Energy Supplies Can Enhance National Security and Military Preparedness,” is partly posted at www.rmi.org/sitepages/art7013.php. Amory Lovins will again brief this subject 8 October at the Center for Naval Analyses and the Naval Sealift Command.

6 RMISolutions F a l l 2 0 0 2 A n In tro d uction to Gree n B uildin g B y A lexis Karolides to capture the multiple benefits of syner- tions and might allow other building com- gistic design, the “whole system” design ponents to be downsized. For example, Part 1: process must occur early in the building’s better windows and insulation can result Resource Efficiency conception and involve interdisciplinary in smaller heating systems; photovoltaic teamwork. In the conventional, linear panels can double as shade for parking or oday it is commonly assumed development process, key people are can replace a building’s spandrel glazing. that the built environment will often left out of decision-making or Buildings use 40 percent of total U.S. T degrade the natural one, but brought in too late to make a worthwhile energy (including 60 percent of electrici- this belief is not based on historical evi- contribution. Early and complete collabo- ty) and 16 percent of total U.S. water; dence. For most of earth’s history, struc- ration, however, can reduce or eliminate they produce 40 percent of the waste in tures built for shelter have typically both capital and operating costs, while at landfills. Natural Capitalism documents enhanced biodiversity and benefited the the same time meeting environmental surrounding community. Beaver dams, for and social goals. how radical improvements in resource instance, create eddies where wetlands efficiency are readily possible—today’s It is precisely the integrated approach form, supporting a vast array of diverse off-the-shelf technologies can make exist- described above and the multiple benefits life. Why should an office building be any ing buildings three to four times more thereby achieved that allow many green different? resource-efficient and new buildings ten buildings to cost no more than standard times more resource-efficient. “Green building” is a way of enhancing buildings, even though some of their the environment. It benefits humans, the components may cost more. Green design Reducing energy use in buildings saves community, the environment, and a elements may each serve several func- resources and money while reducing pol- builder’s bottom line. It is about tailoring lution and CO2 in the atmosphere. It also a building and its site to the to local cli- leverages even greater savings at power mate, site conditions, culture and com- A bout the Author plants. For the average 33-percent-effi- cient coal-fired power plant, saving a unit munity, in order to reduce resource con- RMI’s Alexis of electricity in a building saves three sumption while enhancing quality of life. Karolides, a former units of fuel at the power plant. Richter Fellow, holds There is no singular “look” for a green a Masters of building. While natural and resource effi- As RMI’s Amory Lovins has often said, Architecture degree “It’s cheaper to save fuel than to burn it.” cient features can be highlighted in a from Rice University. But full financial benefits will only be building, they can also be invisible within A registered archi- any architectural design. tect with six years’ realized by using the integrated approach commercial experience, she was previ- described above (high performance win- Likewise, a green building is not an ously the sustainability manager for the dows will increase initial costs unless the assemblage of “environmental” compo- architectural firm Sussman Tisdale Gayle. designer takes proper credit for smaller nents or a piecemeal modification of an This three-part series on the basics of heating and/or cooling loads and equip- already-designed, standard building. green building is adapted from the forth- ment). Just as important as what goes These approaches not only add to the coming book Green Building: Project into a green building is what can be left Planning & Cost building’s cost, but also produce marginal out. Green building design eliminates Estimating, coauthored resource savings at best. True green build- waste and redundancy wherever possible. ing takes a holistic approach to program- by Karolides. It is scheduled for ming, planning, designing, and construct- One of the key ways of reducing resource publication in ing (or renovating) buildings and sites. It consumption and cost is to evaluate first late October by whether a new building needs to be built. involves connecting often-interlinked R.S. Means Co., Inc., issues such as site and climate, building and is available from the publisher at Renovating an existing building can save orientation and form, lighting and ther- 1-800-448-8182 or at www.rsmeans.com, money, time, and resources, while often mal comfort, materials, etc., and optimiz- in the website bookstore under enabling a company (or a family, if it is a ing all these aspects in concert. In order “New Releases.” residential building) to be located in a

RMISolutions 7 F a l l 2 0 0 2 Green Building part of town with existing infrastructure a “thermal break” in the frame (an insulat- Rather than degrading the surrounding and public transportation, enhancing con- ing material inserted to block the heat environment, development can enhance it. venience and reducing sprawl. If a new transfer across the metal). Next, demolition and construction should building is required, it should be sized As the above descriptions suggest, one of be carefully planned to reduce or eliminate only as large as it really needs to be. the best ways to reduce heat loss or gain waste. Typically, demolition and construc- Smaller buildings require fewer materials, is by installing the appropriate high-per- tion debris account for 15–20 percent of less land, and less operational energy. Our formance window for the given climate. municipal solid waste (and sometimes as cultural assumption is that we should buy The right window can save energy, much as 40 percent), while estimates are (or lease) as much square footage as we enhance comfort, allow space-condition- that 90 percent of this “waste” could be can afford. Yet the average new house ing systems to be downsized, reduce fad- reused or recycled. Reusing and recycling size has steadily increased over the past ing from ultraviolet light, reduce noise waste is not only the environmentally few decades while families have gotten from outside, reduce condensation, and friendly thing to do, but could save money smaller. Smaller houses and commercial improve daylighting. and promote local entrepreneurial activities. buildings allow the budget to be spent on quality, not “empty” quantity. Once the building envelope is designed to It is critical to note that reusing, salvaging reduce heat flow, we can use a number of and/or recycling materials requires addi- Energy. The easiest and least expensive natural heating and cooling methods to tional up-front planning. The contractor way of reducing operational costs in a downsize or even eliminate fossil-fuel- must have staging/storage locations and building is to lower its energy consump- based heating and cooling systems. must allot additional time for sorting tion—best done by increasing energy Techniques include daylighting, passive materials, finding buyers or recycling cen- efficiency. There are great energy-cutting solar heating, natural ventilation, passive ters, and delivering materials to various opportunities in simple designs that cooling, efficient and right-sized HVAC locations if buyers don’t collect them. respond to location and climate. Most systems, and utilization of waste heat. North American buildings should face Third party commissioning. When the their long side to within 15 degrees of Daylighting enhances visual acuity for occu- building is completed, third party building true south (and use proper shading to pants, creates a connection to nature, and commissioning—making sure systems are block summer sun but not winter sun). increases productivity and well-being. It also installed and running as designed and as This can save up to 30 or 40 percent of reduces operational energy costs as electric efficiently as possible—can save as much as the energy consumption of the same lights are turned off or dimmed when day- 40 percent of a building’s operating costs building turned 90 degrees. light is sufficient. This points out the impor- for heating, cooling, and ventilation, tance of integrating all the technical sys- according to Lawrence Berkeley National Heat travels in and out of buildings in tems—daylighting, lighting, and space-con- Laboratory. Ongoing regularly scheduled three ways: radiation, convection, and ditioning. It is also important to design sys- maintenance and inspection are also critical conduction, all three of which must be tems for varying loads. to maintain the performance and efficiency addressed. Radiation is the transfer of heat of the building and its mechanical systems. from a warmer body to a cooler one via When energy loads are as small as practi- infrared rays. They can be blocked by cal, appropriate renewable energy sources Recycling. Americans produce an esti- using reflective surfaces. Convection is the should be evaluated. These include wind, mated 154 million tons of garbage— transfer of heat by heat-driven circulation biomass from waste materials, ethanol from roughly 1,200 pounds per person—every of a fluid or gas, such as air. Convective crop residues, passive heating and cooling, year. At least 50 percent of this trash heat transfer can be controlled by sealing and photovoltaics. An electrically efficient could be, but currently isn’t, recycled. gaps around windows, doors, electrical building might be less expensive to build Recycling doesn’t stop at the jobsite. outlets, and other openings in the build- with “off-grid” power than to connect to The building should be designed to foster ing. Conduction is the transfer of heat the grid. convenient recycling of consumer goods across an immobile substance. Every throughout the life of the building. This material has a specific conductivity (U- Demolition/Construction Practices. usually entails easily accessible recycling value) and resistance (the inverse of the With any site development it is impor- bins or chutes, space for extra dumpsters U-value, called the R-value). Metal is a tant to protect adjoining agricultural or trash barrels at the loading dock, and great conductor, so if high-performance areas, rivers, and trees, and to be espe- a recycling-oriented maintenance plan. windows have metal frames, there will be cially vigilant about erosion control. Next issue: Environmental Sensitivity.

8 RMISolutions F a l l 2 0 0 2 B uildin g t h e Fu t ure o f B uildin gs

B y Onno Koelman Benyus has distilled her thoughts into nine laws of the circle of life and e now stand at the advent of a basic sustainability. Nature (1) rewards revolution that will change cooperation and makes symbiotic relation- W the way we conceive, design, ships work; (2) fits form to function effi- and construct buildings. No longer shall ciently; (3) develops diversity of possibilities buildings be devices to conquer nature; to find the best solution and survival; insects, with no complicated, dangerous, rather, they shall complement and restore (4) recycles and finds uses for everything; or toxic manufacturing processes. But bio- her. The instigator of this revolution is an (5) requires local expertise; (6) avoids mimicry’s promise is not limited to materi- unlikely heroine: a soft-spoken, careful, artic- excesses and “overbuilding”; (7) taps the als science alone. It has implications for ulate observer, teacher, and author named power of limits; (8) runs on the sun and construction processes as well, especially Janine M. Benyus (who also happens to be other natural sources of energy; (9) uses since the building industry is a major con- a member of RMI’s Board of Directors). only the energy and resources that it needs. tributor to environmental degradation in Benyus started out as an eager wildlife biolo- its current state. A revolution might be just gist, but now works as a “biological consult- Visionary companies are beginning to real- what the doctor ordered. ant” to several major corporations, teaching ize that not only will biomimicry be good them how to learn better, smarter design for the environment; it will lead to more Buildings use approximately two-thirds of from nature. She posits that there exists a durable, comfortable, desirable, and effec- all U.S. energy when you include all the tremendous database of tried and tested nat- tive products. For example, Nike is study- embodied energy costs of initially extract- ural solutions all around us. Indeed, during ing animal foot padding for the design of ing those materials, transporting them to, 3.8 billion years of evolution, those natural its shoes. If a mountain goat can run over and later hauling truckloads of trash away solutions that didn’t work were recalled by slippery ice and rough rock due the handy from, a site. The construction industry their “manufacturer,” Mother Nature. mix of hardness and softness in its hooves, produces up to 40 percent of the material Benyus’s message is that if we just open our perhaps shoe soles could be made with that goes into our landfills. Given that eyes and look in the right places, there are similar properties. humans are now prevalent over the elegant, efficient, and eminently practical entire globe, we no longer have the solutions all around us. By understanding how nature does things, option of carrying our waste out of sight the Atlanta-based carpet manufacturer to get it out of mind. Does a forest carry Benyus’s exposition of these ideas is in Interface designed carpet tiles that copy the away its waste? Is there any waste in a her landmark 1997 book, Biomimicry. ever-changing pattern of the forest floor forest? The answer to both of these ques- According to Benyus, biomimicry “refers and thereby fit together without a notice- tions is no. How might we emulate to the new science that studies nature’s able pattern—put the tiles down in ran- forests in this crucial issue by making use best ideas and then imitates these designs dom order and they still fit perfectly. This of all materials and developing recycling and processes to solve human problems.” modularity obviates excessive cost in repair processes that occur spontaneously, with- The concepts of biomimicry are deceptive- and installation; when one high-traffic area out constant human intervention? ly simple but profound in their implica- tile wears out, just slip in a new one. Answering this question of eliminating tions. Simple, because the answers are waste is vitally important—yet it encom- often already present in nature—we mere- Biomimicry holds future possibilities in passes but one facet of the biomimicry ly need to rediscover and apply rather than many other areas as well. Mechanical revolution. invent. Profound, because if we can engineers might learn from sequoias, rethink the way that we build and the way which lift tons of water hundreds of feet So what might lie in store for us if the we manufacture it will allow us to into the air without pulleys, levers, or potential for biomimicry is fully explored? improve our quality of life and not only do machinery—using only the power of the Imagine a building that, like a chameleon, “less bad” to the environment, but actually sun. Spiders spin material much stronger changes colors to take advantage of weath- restore it along the way. than man-made Kevlar ® out of digested er conditions. Buildings that become dark-

RMISolutions 9 F a l l 2 0 0 2 RMI is now preparing to lead this next revolution, facilitating RMI’s Green Development Services aims to bring biologists to the design table to the integration of biology, engineering, and architecture help show engineers and architects where into a whole-systems program to look for inspiration, awe, and practical for making fundamentally better buildings. models for solving some of the building industry’s most pressing problems. Biology is nature’s treasure trove of outstanding er during cold weather and lighter during water, and with the addition of two- or models of sustainability—our job does not warm weather would substantially three-story edible landscaping (like Village stop at preserving Nature; we need to look increase their efficiency. The insulation Homes in Davis, California), it could be to her as teacher and role model. in such buildings might, like a pelican’s shaded for temperature control while feathers, fluff up during cold weather and providing delicious organic food for its Our goal is to foster buildings that are compact during hot weather, allowing inhabitants. Additionally, the typical waste harmonious with their environments, cooling and heating processes to be maxi- streams and garbage that come from efficient in their use of energy, and innova- mized without pumping in additional ener- buildings (including wastewater and food tive in their use of building materials, but gy. These buildings could have roofs that scraps) could be fed into Living Machines ™ also better suited for human occupation and open like flower buds to allow ventilation and recycled, feeding the fish that swim in use. Some of the possibilities are surprising during sunny weather but close to keep the pond under the waterfall in the natu- and include buildings that might one day be out the rain. If a rose bud can open and rally-illuminated and ventilated lobby atri- self-building, self-cleaning, and self-repairing. close without machinery, our buildings um. These are just a few of biomimicry’s The bio-logical revolution is coming. could too. building design possibilities.

While these solutions might seem a bit far- RMI is well equipped to make an impor- fetched there are already many ways in tant contribution to the biomimicry revolu- Onno Koelman is RMI’s inaugural Mineral which our buildings can, with present tion, especially in building construction. Acquisition Partners (MAP) summer technology, mimic natural systems. Take For over a decade, RMI has been a leader energy fellow researching biomimicry. principle one above: “nature rewards in the green development movement, He holds a BS in Mechanical Engineering cooperation and makes symbiotic relation- fostering the design of buildings that are from Stanford University. In the next article ships work.” A building can and should more energy- and resource-efficient. We in this series, we’ll explore how RMI is be a net contributor to its surroundings. are now preparing to lead this next revolu- focusing its research to facilitate the Like a tree, it could provide and store tion, facilitating the integration of biology, application of biomimicry toward better energy using the technology of solar panels engineering, and architecture into a and more efficient buildings. and fuel cells. It could collect and store whole-systems program for making funda- mentally better buildings. The staff of RMInews U.S. Gree n B uildin g C ou ncil M ee ts at R M I The United States Green Building Council (USGBC) held a Board of Directors meeting at RMI 1–2 August. RMI is a founding member of the USGBC and several board members wanted to tour RMI’s Headquarters, one of the first green buildings in the country. The Council has 1,600 member organizations, including architectural and engineering firms, real estate developers, major corporations, federal agencies, city and state governments, manufacturers, and environmental organizations. Collectively they work to promote buildings that are environmentally responsible, profitable, and healthy places to live and work. The USGBC created the LEED rating system, which is now being used to gauge the environmental performance of six percent of all commercial and institutional space under design in the United States. For more information on USGBC and the LEED rating system, please visit www.usgbc.org. For more on RMI’s headquarters building, please see www.rmi.org/sitepages/pid379.php.

10 RMISolutions F a l l 2 0 0 2 Life at R M I Gu ess W ho’s C o m in g for M ee tin gs? Marty Pickett, organization (RMI’s Bill Browning is on its mission while enhancing RMI’s ability to Executive board), but it wasn’t the only group conven- be effective. We’re having conversations Director ing at RMI this summer. with other organizations as well, including The Natural Step and Redefining Progress, In a recent staff RMI also hosted a gathering of the as to whether and how our groups might meeting, RMI’s Evolutionary Manufacturing Discussion have more collective impact. prominence became Group (see p. 4). This body might not be a source of discus- well established or even very prominent, We at RMI know there’s much to accom- sion—and subse- but we think it will be. It certainly com- plish in our pursuit to “foster the efficient quently, a source of pride. Several staff mem- prises prominent participants, including and restorative use of resources.” We’ll bers reported how well known RMI is across Tom Johnson (coauthor of Profit Beyond take (and seek) all the help we can get! the nation and around the globe. Often, Measure), Peter Senge (author of The On behalf of RMI staff, I’d like to thank audience members, university students, col- Fifth Discipline), and representatives of former Communications Director, Norm leagues, or clients “rush” RMI staff to tell the automotive, beverage, and appliance Clasen, who recently left RMI for other them how impressed they are with RMI’s industries, and several entrepreneurial work. Clearly, we have a growing reputation. ventures. During the five years that Norm manufacturing groups. But the fact that the Board of Directors of led our Communications Department, he the U.S. Green Building Council—the fore- Meetings of this sort bring RMI and indus- was instrumental in taking our publica- most organization concerned with green try champions together to brainstorm ideas tions and outreach services to a higher building—chose to hold its annual meeting and problems, allowing an opportunity for standard. We’ll all miss his terrific energy, at RMI is telling of the Institute’s role in sus- innovative approaches for solutions. good humor, and fabulous photos—images tainability in many sectors (see p. 10). The Collaborations with other groups cause that caught the spirit and flavor of RMI as USGBC is a well-established and impressive RMI to keep a fresh perspective on its few words ever will. Good luck, Norm!

E ditor’s N ot es

Re a d er Survey O f fers Insig h t

too long, and the newsletter being so cent of donors opposed advertising in the thick. Our new staff art director Ben newsletter, 40 percent didn’t mind, and Cam Burns, Editor Emerson—who has the strongest graphics 9 percent said “good idea.” We probably background ever seen at RMI—cleaned up won’t hire any ad sales folks just yet. And Recently, RMI Solutions went through a and has now taken over layout (something most who read the newsletter read every bit of a metamorphosis, and you hold the I did at the last minute with each issue). story in it, the most popular topics being product of that change. In the summer Now the various elements of Solutions the articles about energy (energy security issue, we polled readers and learned a few connect in space and topic in a sensible, and policy, technology, etc.) and green things. First, readers were very supportive readable way. Also, you’ll note this issue buildings (85 percent read the energy of RMI. The comments scribbled into is four-color (see p. 1 for the reasons), pieces and 70 percent read green buildings every returned survey included statements and looks great. articles). While this survey lacked controls like, “critical contemporary relevance,” (we can’t force respondents to answer “articles demonstrating hope,” and “fresh There were a few other results we took to every question if they so choose), it did concepts, clearly presented.” But positive heart: 82 percent of respondents preferred offer valuable information. As we continue feedback should not encourage resting on the printed version, while 12 percent liked to refine the newsletter, we hope you’ll one’s laurels. So, we took to heart the the online version—we’ll keep printing it, continue your support and offer valuable many comments about our articles being but offer it online as well. Fifty-one per- feedback on all our publishing activities.

RMISolutions 11 F a l l 2 0 0 2 Ask Rocky Dear Joanne, Dear Joanne,

Development of technologies related Your neighbor would not be able to blow to the Hypercar ® concept is currently up this car more easily than a convention- by taking place worldwide. Anuvu al vehicle. This has more to do with Thammy (www.anuvu.com) is working to incor- design than type of fuel. We recommend Evans and porate its fuel cell technology into auto- that the Hypercar ® design be made Peter Light mobiles, and X-Corp develops composite- stronger and more secure than the con- (not pictured) body vehicles. Both Honda and Toyota ventional vehicle because this would help have announced plans to market a with durability of the vehicle and there- hydrogen fuel-cell car in late 2002, and fore lower expense for the owner. Extra Dear Rocky Mountain Institute, six more major automakers by 2005, but security from outside tampering could be I am so happy to read about the hydro- those will first appear in limited quanti- made available in this type of vehicle gen car in Discover magazine. I had no ties. For more information about these because of the increased electronic capa- ® idea that hydrogen cars were on the developments, visit RMI’s Recent bility of the Hypercar concept. market. I have been emailing the wrong Hypercar News at A hydrogen leak is less likely than a gaso- people. I have been emailing General www.rmi.org/sitepages/pid388. php. line leak, due to the higher standards on Motors et al. for a solar powered car. As you know, fuel cells run on hydrogen. compressed gas tanks than on the conven- Please tell me when is this car going to Hydrogen is a component of much carbon- tional gasoline tank. (In Hypercar, Inc.’s be marketable? Soon, I hope. I want based material (including dumpster waste). Revolution concept car, the hydrogen tanks something other than this gas-eating, Before it can be used in a fuel cell, hydro- are three times stronger than the car, oil-consuming heap I drive now. I under- gen needs to be extracted or “reformed” which would be one of the strongest cars stand that a fuel cell has to be in place into a usable gas or liquid. It will be quite on the road.) Furthermore, even if hydro- somewhere. Well, bring it on. We have a some time before you can throw your gen were to leak out, it quickly dissipates dumpster in the condo that we would trash into a machine and get useable up and away rather than pooling around love to see used as a fuel supply, and to hydrogen out. However, hydrogen vehicle the car as a gasoline leak would. The com- provide pure water for the pool next pressed hydrogen gas tanks are designed to refueling is being intensely researched door. That’s how I see it from what withstand gunfire and are placed centrally now. To learn more about these issues, I read. I’m past ready. Ten years ago I in the car so they are better protected even check back at RMI’s website for revised decided that I would never buy another in a side crash. hydrogen and fuel cells pages in a few American made car much less a foreign weeks. We’ll have them posted soon. In car because I am so very tired and Of course, any car can still be blown up the meantime, you might find the National exhausted having to watch our military with enough explosive, although a bomb Hydrogen Association website informative men go over there and fight for oil. How would be harder to hide under the vehi- (www.Hydrogen-US.com/). long until this car comes to market? cle as it would have a flat underbelly. I know it sounds simple, but I am serious If you cannot wait to get into a greener I hope this allays your concerns— about the dumpster/fuel cell idea since car, you may learn about the best of you can find out much more about the the article says the fuel cell can be pow- what’s available today at properties of hydrogen and its safety ered by garbage—nothing like American www.fueleconomy.gov/, or from the following websites: innovation! Please let me know when www.greenercars.com/indexplus.html, www.eren.doe.gov/hydrogen/ this car will be on the market. from which you can order a copy of their I want to be one of the first purchasers. www.hydrogennow.org Green Book. www.ttcorp.com/nha/ Thank you so much. www.hydrogen.org/Introduction/main.html I hope that these are good starting points Joanne Stewart, Via email for you. If you have any other questions Thank you for your continued support after visiting our website, please do not of RMI. P.S. Can a nefarious person blow hesitate to get in touch. this car up more easily than the —Thammy Evans oil/gas type car? —Peter Light

12 RMISolutions F a l l 2 0 0 2 Clarification In a story on performance-based fees, R MI Solutions, Summer 2002, the authors failed to mention contributions from the Northwest Energy Efficiency A lliance, which funded the North Clackamas High School design work at the Lighting D esign Lab (no longer called Seattle City Light’s Lighting D esign Lab). The A lliance also funded the commissioning at North Clackamas, a critical component in making sure all of the aspects from lighting to mechanical systems are working and integrated. Its website (www.betterbricks.com), run by Managing Editor John Jennings, is an interesting source of information on commercial energy efficiency design. A lso, a special thank-you to G unnar Hubbard, RMI’s project manager for the P B F project.

RMInews E njoy Su n - Powere d Sur f in g at R M I We bsit es

percent renewable energy. RMI chose “The RMI websites hosted by SolarHost for web-hosting services in SolarHost have not been down once.” early 2002. Bill Simon, RMI Webmaster

“After speaking with SolarHost’s Steve then converts it to alternating current as May and Randy Mayes about the com- it is transmitted to the load. If charged pany’s background in web-hosting plus for about five hours, the batteries can their interest in the environment and supply 140 percent of the energy needed renewable energy, we decided to give for the company’s servers and energy them our business,” said Bill Simon, needs in SolarHost’s Warrenton, Va. RMI Webmaster. “Their goals were in offices (night and day). The leftover line with RMI’s mission statement. energy is sold back to the regional grid. It was the perfect match. SolarHost is providing the same web-hosting services SolarHost went “live” in March 2000, In 1977 RMI CEO Amory Lovins wrote, found at other companies, but they do and since then has been down for only “Recent research suggests that a largely it without polluting the environment. 11 minutes, mostly for service upgrades. solar or wholly solar economy can All of their web servers, routers, and Within a year of starting, SolarHost had be constructed in the United States with Internet equipment are 100 percent attracted over 75 environmental groups straightforward soft technologies that powered by the sun.” and many private-sector firms motivated are now demonstrated and now eco- by the reliability of SolarHost’s service. nomic or nearly economic.” That was SolarHost is currently hosting three 25 years ago. Today’s solar technologies of RMI’s websites, including: the Small Is Besides RMI, SolarHost works with (and tomorrow’s) hold a lot more Profitable (www.smallisprofitable.org) The Center for Renewable Energy promise, and we can’t wait to see website, the NEP Initiative and Sustainable Technology or CREST what they bring. (www.nepinitiative.org) website, and (www.crest.org); the Interstate the Natural Capitalism Academy Renewable Energy Council or IREC At Rocky Mountain Institute, staff (www.natcapacademy.org) website. (www.irecusa.org); the Maryland, Va., members try to live what they preach. SolarHost started hosting RMI and Washington, DC Chapters of the In recent months we’ve been noting the websites in January 2002, when Solar Energy Industries Association latest steps in our shift to environmen- www.nepinitiative.org was launched. or MDV-SEIA (www.mdv-seia.org); tally sensitive papers, but we are work- the Solar Energy Industries Association ing to “green up” operations elsewhere “SolarHost’s staff has been first class— (SEIA) national website too—notably our websites. professional and responsive,” said Simon. (www.seia.org); the Renewable Energy “And the hosting service has been Policy Project (REPP) (www.repp.org); Several of RMI’s websites are now host- flawless. The RMI websites hosted by and Home Power Magazine ed on solar-powered servers owned SolarHost have not been down once.” (www.homepower.com). by SolarHost, the world’s first (and so far probably only) web-hosting service SolarHost uses Siemens solar panels and For more information, visit provider that is powered by 100 batteries to collect and store the energy, www.solarhost.com.

RMISolutions 13 F a l l 2 0 0 2 W h at Are You D oin g?

Katherine Grimberg Onno Koelman Meredith Shempp (Phillip Semmer Having just (David Tice Internship) graduated from Internship) Just how sustainable Stanford University In order to stay com- are you? That is with a degree in petitive, livestock the question compa- Mechanical producers must nies are beginning Engineering and a understand ecologi- to ask themselves. passion to save the cal processes as they However, companies environment, I find pertain to land use. are using different devices for measuring myself fortunate Increased knowledge can be applied to goal- success. My internship involves the devel- enough to be at RMI. I am working for GDS setting and decision-making in order to sus- opment of a tool that will facilitate compar- as this year’s Summer Energy Fellow (spon- tain agriculture, fish and wildlife popula- isons amongst companies of different sizes, sored by Mineral Acquisitions Partners) tions, and the functions of water catchment and serve as a continuous improvement exploring how we can apply the revolution- basins. This summer I have been managing tool for companies to assess their progress. ary and evolutionary concepts of biomimicry cattle in a high-intensity/short-duration While the general nature of this tool and biophilia to buildings, making them rotation grazing cycle. The benefits of high- currently does not address the intricacies happier, healthier, and more productive intensity/short-duration rotation grazing of various organizations, it covers enough places to live and work. cycles include increased soil productivity information to help identify trouble spots and vegetative biodiversity. I have also been in the system and to discover leverage Jeremy Magliaro monitoring wetlands hydrology, assisting points for future improvements. with irrigation, improving and maintaining The U.S. EPA is the Nature Trail, and aiding with invasive re-evaluating the species abatement. Betsy Hands efficiency of central- This summer I have ized wastewater been working with treatment plants. Josh Terry the economic I’m working with (John & renewal team on an RMI Adjunct Mary Frantz Internship) exciting project that Scholar Richard looks at the intrinsic Pinkham preparing “Case Studies of As a designer, my work involves links between busi- Economic Analysis and Community encoding complex nesses and commu- Decision Making for Decentralized information within a nities. More and more companies are rec- Wastewater Systems.” This report aims to specific design appli- ognizing that they play a valuable role in a illustrate the full spectrum of economic, cation for broadcast community’s quality of life and economic social, political, and environmental issues in an easily understandable format. I hope revitalization. Interestingly, they are part- associated with decentralized wastewater to accomplish this with RMI’s Virtual nering with a variety of stakeholders to treatment systems and their implementa- Reality Tour of the superefficient headquar- enhance the assets of the community tion in communities. ters building. The goal is to show virtual while maintaining their bottom line. I am visitors the building’s unique design with researching how the concept of sustain- the click of a mouse. able development can be applied so that it captures the principles of natural capital- T h e f u t u re g e n e ra tio n o f in t e r ns p ra c tic e t h eir w ritin g skills a t R M I’s ism and strengthens the relationship 2 0 t h A n nive rs a ry between communities and businesses. Pic nic c ele b ra tio n. s m a d A

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“ H ave yo u eve r se e n a p a ra c h u tin g c a t? ” r G

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14 RMISolutions F a l l 2 0 0 2 St a f f S p otlig h t: C hristin a Pa ge

t’s fortunate for Resource efficiency was an important idea So Chris still works in the mountains. And Chris Page that at NOLS, as it is at RMI, but with a differ- Colorado’s mountains provide a playground I RMI is located ent twist. “You learn how little you really where Chris can practice her recreational in the Rocky Mountains. It makes her feel need in order to get by and be happy,” skills too. She’s a devout telemark skier, right at home. Chris said. rock climber, and a beginning whitewater kayaker. She does a bit of ice climbing, too. Chris, now a researcher and consultant in Chris’s teaching experience helped her rec- But this fall will bring a radically different RMI’s Commercial and Industrial Services ognize that people learn and absorb infor- activity, far from the Rocky Mountains. Team, was an instructor for the National mation in different ways, and that a Outdoor Leadership School (NOLS) before teacher needs to use creativity to get the This fall, Chris will be kicking off a semes- coming to RMI. She spent five years teach- message across. ter’s worth of RMI lectures at Beijing’s ing NOLS wilderness skills in the moun- Peking University School for the “For different people, different things cause tains of Alaska, Utah, Washington, Environment. A rotating team of RMI staff that light bulb to come on,” she said, Wyoming, and East Africa. She taught her members will be instructing environmental referring to the universal cartoon symbol students natural history, leadership, map engineering graduate students in the four for realization. Presumably, that’s a com- and compass navigation, backcountry med- principals of natural capitalism, tools for pact fluorescent light bulb. ical care, and how to stay warm, dry, and designing sustainable projects, and how to well fed in the woods. She also taught Chris is now a member of Mountain implement sustainability. The participants, them hazard evaluation and avoidance, Rescue Aspen, the local volunteer search from the top one percent of China’s stu- which varied from location to location. In and rescue team that rescues fallen dents, will be key decision-makers in gov- East Africa it was hyenas, elephants, and climbers, injured hikers, and lost skiers, ernment and industry after they graduate. malaria; in Alaska, grizzly bears, mosqui- and also is occasionally called upon to Anticipating many cultural differences, toes, and food re-rations being dropped recover a body in the backcountry. from airplanes. Some courses were as short Chris expects to take along some of the as two weeks, some as long as two and a “It’s been a really slow summer,” Chris lessons she learned as a NOLS instructor in half months. observed. But search and rescue teams Africa. “Teaching wilderness medicine to must keep their skills sharp with ongoing Ugandan and Tanzanian park rangers on Now RMI’s point person on educational ini- training. This year, members spent the Mt. Kenya in Swahili was quite an experi- tiatives, Chris credits her successes there to spring practicing search techniques, ence. Sometimes they just didn’t get it,” her NOLS teaching experience. “The ability high-angle rescues, snow and screefield she said. At that point, it would be time to to work as a team is important,” she said, evacuations, and avalanche safety. Early use some of that NOLS creativity to get “and so is self-reliance.” She found it chal- this summer, a re-certification committee the message across. lenging and exciting to work with staff made up of members of other Colorado —Jeremy Heiman from around the world: “there are so many search and rescue teams unanimously people who are talented and inspirational passed Mountain Rescue Aspen with who worked for NOLS, just like at RMI.” flying colors. RMInews Gree nin g C hin a f ro m t h e Roots U p In early 2002, Professor Jinren Ni of the School of the Environment at Peking University, in Beijing, China, requested that RMI lead a semester-long course on natural capitalism in autumn 2002. The Institute accepted the invitation and organized a team of top RMI researchers to lecture on a rotating basis. Class participants will consist of postgraduate students and faculty mem- bers from Peking University, as well as visitors from other institutions. The course will focus on natural capitalism examples relevant to China. While it is a modest start, Professor Ni, the University, and many others have indicated their interest in offer- ing this course on an ongoing basis at the University. RMI is, of course, excited to spread “natcap” to the future leaders of 1.3 billion people.

RMISolutions 15 F a l l 2 0 0 2 O t h er Voices C a n Sust ain a bility Sell? Chris Pomfret place. Simple: Unilever plc. is one of the A bout the Author world’s leading foods and consumer hen I was asked to speak at Editor’s note: Chris goods companies, with annual sales of the 20 March 2002 meeting Pomfret is the Brands around £30 billion in 150 countries. W of the IPA (Institute of Director of Birds Eye Every day 150 million people choose our Practitioners in Advertising), my first Walls, Unilever’s brands for feeding their families and Frozen Food prod- response was to question the title of the cleaning their homes. Within Unilever, ucts company in the conference—“Can Sustainability Sell?” Birds Eye Walls is the UK market leader UK. This article is I thought it was the wrong question. based on a speech delivered at a public in both frozen food and ice cream. Why would I suggest that? You may find meeting on 20 March 2002 of the IPA Running a multi-local, multinational this hard to believe from a company as (Institute of Practitioners in Advertising) FMCG (fast moving consumer goods) focused on marketing as mine, but while in the United Kingdom. business on this scale requires a tremen- Unilever as a whole—and Birds Eye dous amount of raw material, about two- Walls in particular—regards sustainability last thing on our minds. Instead, the driver thirds of which comes from agriculture— as absolutely critical to the future of our is our awareness that if our business is to and therefore has the potential to be business, the fact is that our commitment continue, then we need to sustain our sourced through sustainable farming, on to finding sustainable sources currently sources of supply—and the only way to do land or in the ocean. has little to do with today’s brand values, that is to make them sustainable. Our mission is to meet the everyday or with trying to increase our sales. This realization leads us to two conclu- needs of people everywhere, and to do You might think this statement is disingen- sions. First, sustainability is the only way that consistently we need to know where uous, or that I need a dose of the real for a business like ours to thrive in the all our raw materials are coming from— world. But Unilever’s view of sustainability long-term, so ultimately we will have to not just next year, but in a decade’s time. is grounded very much in the real world. sell it to consumers. Second, in the short That is why our drive for sustainability term they are unlikely to buy into it covers three key areas: water manage- because of the dislocation between con- ment, fisheries, and agriculture. U NILEVER’S VIE W O F sumers’ day-to-day buying behavior and SUSTAIN A BILITY their wider concerns. While many people T H E SUSTAIN A BLE have genuine concerns about global warm- The reason lies in the fundamental P E A PR OJE C T mechanics of our business. We rely on our ing, over-fishing, and other issues, they ability to take high-quality raw materials— don’t relate these issues to driving their car So what does this mean for Birds Eye be they fish, peas or palm oil—and turn to the supermarket or buying Birds Eye Walls? The initial impact of our drive for them into high-quality, added-value prod- Fish Fingers. Sure, they’ll accept a theoreti- sustainable sourcing is on peas and fish— ucts that we can market and sell, with the cal link between the two if it is pointed but ultimately its effects will be felt across help of the brand values and consumer out to them. But a significant emotional Birds Eye Walls and across Unilever as a trust we have worked to create around bridge between people’s concerns over sus- whole. Birds Eye is the UK’s largest food them. If our supply of raw materials runs tainability and their buying habits is yet to brand and peas are our biggest product be built. Until that time, sustainability as a out, we cannot produce any more, and and the foundation of our reputation for branding concept will not sell more peas, we cannot sell anything to anyone—no great food, simply frozen. fish fingers or anything else. matter how good our branding. Ninety-six percent of consumers in the So sustainability is all about the long-term UK eat Birds Eye peas, and we grow ITS PLAC E IN O UR B USIN ESS security of our supply chain. Which is them all ourselves, on 520 independent why, in all our sustainability initiatives at You may wonder why Unilever became commercial farms across East Anglia and Birds Eye, selling the concept has been the involved in sustainability in the first Humberside, all picked and frozen in two

16 RMISolutions F a l l 2 0 0 2 and a half hours and each one individually • supporting the principle that Pe as— inspected! So it’s logical that we’ve sustainable agriculture should enable b e fore t h e f ree z e. focused on peas in our main sustainable local communities to protect and improve their well-being and agriculture initiative in the UK. environments. Birds Eye has been working with pea The first pea crop under the sustainability growers since 1998 to develop a model of project was planted in the spring of 1999. sustainability that can be applied to our The results, so far, appear promising. entire frozen pea business. About 20 of Primarily, it seems possible that one can our pea farmers are currently taking part in nership with farmers to protect the long- maintain quality and productivity, and an initiative called the “partnership for sus- term health of the land. encourage biodiversity, while reducing tainability.” It’s based on an unprecedented the use of pesticides and chemical fertiliz- Why so little advertising? Because blowing collaborative effort between ourselves, our ers. Similar results are being achieved by our own trumpet now to an already-skepti- farmers, academics, and non-governmental Unilever companies elsewhere in the cal public would risk undermining the organizations—including ornithologists, world with tea, tomatoes, and spinach. credibility of the whole project. environmentalists, wildlife trusts, and Forum for the Future, the UK’s leading Although Unilever understands the cre- PART N ERS HIP sustainable development organization. ation and marketing of brands as well as F O R S USTAIN A BILITY anyone else in the world, what we have Under their supplier contracts with Birds seen in recent years is a major change in Eye Walls, our farmers have always been There are three aspects of the Sustainable the nature of brands themselves. required to meet quality thresholds, co- Pea Initiative that might make it hugely significant. First, the pilot scheme is now operate with local pea-growing groups, and When I started in this business 30 years being implemented by all our pea farmers be close enough to our freezing plants to ago, the relationship between the con- in Eastern England. Second, the knowl- get their freshly-picked produce there sumer and the brand was simple. People edge and experience we are gaining will within the requisite two and a half hours. like the product, so they took them home help us in our drive to increase the secu- and used them. Today, the issue is what’s Under the partnership for sustainability, rity of our future supply chains. And final- behind the brand and how does that the commitment on both sides goes much ly, the valuable body of research being express a consumer’s values? A BMW says further. It calls for Birds Eye and the farm- built up in a commercial setting—with more about the driver than the quality of ers to work together to promote a defini- proven, saleable, mass-market products— German engineering. Nike athletic shoes tion of sustainable agriculture drawn up in will help develop procedures and findings say more about someone being up-to-the- co-operation with environmental groups. to be shared across the food production mark than fast off it. industries, and across society as a whole. We have refined ten key indicators—from Besides increasing the value and utility of soil fertility and health to pest manage- Given our level of excitement over the brands, this shift also exposes them to ment, from water and energy efficiency Sustainable Pea Initiative, you might closer scrutiny and higher risks. to social and human capital—in order to think Unilever has missed an opportunity Nowadays people want to know what lies define sustainable agriculture. They include: to “sell” sustainability to consumers—and behind a brand. Is the company commit- thereby sell more peas. Again, that’s the • keeping yields and nutritional ted to high ethical standards of behavior? wrong perspective. quality high, while keeping Is it a good corporate citizen? resource inputs as low as possible; I have already noted that one day sustain- And does it apply the same values in all • minimizing adverse effects on soil, ability will have to sell because we have parts of the world? water, air quality and biodiversity no alternative. But selling sustainability while making a positive contribution proactively as an overt brand value will S USTAIN A BLE FIS H ERIES to these where possible; have to wait. We do include the • optimizing the use of renewable Sustainable Pea Initiative on our packaging Now for a “sustainable fish story.” resources, and minimizing non- now, but in a low-key manner: on the Unilever is a major global processor of renewable ones; and back of a package of Birds Eye peas, we fish and producer of branded frozen fish

print a small text box mentioning our part- continued on next page

RMISolutions 17 F a l l 2 0 0 2 O t h er Voices products—and to stay that way, we need most people. Even if they recognize it, con- moters have linked organic produce with to secure our supply chains amid growing sumer research shows that protection of concerns over an array of issues, from the global concern over the depletion of fish fish stocks is not linked to purchasing use of chemical pesticides, fertilizers and stocks. Our strategy is to reach a position habits. To start building that link, we have GMOs, to children’s health and food by 2005 in which all our fish supplies turned to the appeal of the ocean—and crises such as BSE (mad cow disease). come from sustainable sources. have included a statement saying “Ocean

Friendly” on the packaging. T H E O RGA NIC D O W N SID E To achieve sustainability our approach has been to center our decisions around The small mention of our Sustainable Pea Regardless, we don’t think organic products the Marine Stewardship Council (MSC), Initiative and ocean-friendly sourcing on are the overall solution as there are some a non-profit body that was founded in our packaging is a modest first step obvious structural problems in the organic 1996 as a joint venture between Unilever towards linking people’s concerns to sus- marketplace. More than 70 percent of and the World Wildlife Fund (WWF); tainability as a brand value. organic food eaten in the UK is imported. it became an autonomous organization in Also, proponents of organic food seem 1999. The MSC helps create and certify LESS O N S FR O M divided as to whether their goal is the sustainable fishing grounds and fisheries T H E O RGA NIC S IN D USTRY organic food itself or the method and val- around the world. It does the former by ues of organic food production (i.e., by inde- engaging with a wide range of stakehold- There are important lessons to be learned pendent farmers and small landowners). ers and local communities to balance the from the organic food industry. The rise in long-term viability of global fish supply demand for foodstuffs produced through There are also doubts about consumer atti- with the health of marine ecosystems. organic farming has been a prominent fea- tudes. The British retailer Iceland’s deci- And it achieves the latter by benchmark- ture of UK retailing in recent years, and sion to commit itself to organic food was ing fisheries against a number of criteria— the demand for organic produce, at what not very successful, although it must be principally that the fishing methods used are still premium prices, is unquestionably said the demographics of Iceland’s cus- tomer base were less than ideal. Greater make a fishing ground sustainable. impressive. The growth of organic farming here was very much led by the Soil doubts have been raised by recent research The MSC has recently certified its first Association, in a role that foreshadowed suggesting that today’s consumers have major species, New Zealand Hoki, which that of the MSC in fisheries. less faith in the health advantages of organ- we are now launching as a product. ic food over conventional produce. However, when it comes to marketing this The UK government now plans to triple What organics cannot guarantee is securi- fish and its sustainable sourcing, we face the land under organic cultivation by the ty of the supply chain or the social condi- two issues: one is that nobody has heard of end of 2006—and this continuing tions of the people employed to produce New Zealand Hoki—so our new packaging momentum was one of the reasons why it. I recently read an editorial which proclaims it as a “new excellent alternative Unilever acquired a small organics busi- asked, “How can something be good for to cod.” The other is that nobody has ness in Scotland last year. the environment if it is picked by laborers heard of the MSC or what it does. The Certainly, as an alternative to environ- on slave wages and air-freighted half way logo is non-motivating and obscure for mentally-damaging agricultural practices, round the world?” Unlike organics, any organic food has many attractions. Its pro- definition of sustainability must deal with RMInews R M I Dishes Up Id e as for Sust ain a bility Authors RMI recently contributed to a book (to be released in March) by one of the leaders in sustainable, organic food industry, Newman’s Own Organics. The book is The Newman’s Own Organics Guide to a Good Life: Simple Measures That Benefit You and the Place You Live, by biologist Nell Newman (co-founder of Newman’s Own Organics) with Joseph D’Agnese. According to D’Agnese, the book is “Nell’s take on what ordinary citizens can do to help the environment. It’s intended as a primer for people who are interested but don’t know where to start.” RMI’s CEO Amory Lovins is mentioned extensively in the book for his work in transportation; Dr. Jon Fox-Rubin, CEO of Hypercar, Inc., the Basalt-based RMI spin-off, was also interviewed.

18 RMISolutions F a l l 2 0 0 2 the human inputs to the chain—and the for it. Yet interestingly, the best way to resources. Similarly, the sustainable farm is human aspect is crucial to ensuring the build this link may not be through the not just a place that can continue to pro- supply chain really is sustainable. selling process, but through education. duce high quality food on a reliable basis. They must consider the needs of their Consumers nowadays are intelligent and FIN DIN G T H E RIG H T VO CA BULARY workforces and local communities as well. sophisticated enough to see marketing for What we can learn from the organics what it is. Thus, if we present sustainabil- As a result, we feel sustainability is closer industry is that vocabulary counts. You ity through a traditional marketing pitch to the concept of “quality” than any form would not sell organic food by slapping and call to action, they will reject it. of “competitive advantage.” It is not a “Approved by the Soil Association” all Instead, we need to develop a debate in one-time opportunity to steal a march on over it. Similarly, sustainability needs a straightforward language about the long- the competition, but a long-term learning language that encapsulates what it means term survival of the land and sea as process to be shared. without turning people off. sources of food. T H E C O N SU M ER D ILE M M A “Ocean-friendly” is a start, giving us an Good old Marketing Language, that accessible way of communicating what the which we traditionally use in mass com- In the beginning of this piece I claimed Marine Stewardship Council is about. We munication, will not work here. This is that by asking whether sustainability sells, haven’t yet cracked the right form of my challenge to the experts in communi- we were posing the wrong question. To words for land-based sustainability, but we cation. We have to re-think how we illustrate why, I would like to highlight will. When we do it will enable us to draw relate to the consumer. the dilemma that surrounds sustainability a road map for sustainability’s role in the for a company like ours. In simple terms, consumer marketplace. Having the right C O M P ETITIVE A DVA N TAGE the dilemma is that sustainability current- vocabulary will let us move from a defen- ly does not sell. Yet, it is essential to our sive to a proactive approach, enabling us to Unless sustainable produce has a competi- future, for three key reasons: build—and then steadily reinforce—the tive advantage over whatever else is avail- emotional link needed to make consumers able, consumers will not buy it anyway. 1. The survival and security of our supply chains more willing to buy products and brands The conundrum here is that neither Unilever nor any other supplier can fence from sustainable sources. 2. As a defensive stance to ensure itself off from the rest of the world. If our the continued quality and relevance fish stocks are sustainable but nobody of our brands in the future, and T H E C O N SU M ER VIE W else’s are, then the world will gradually But does the necessary level of concern run out of fish and we will have a cost 3. To ensure that we continue to be able to attract and recruit the best over depletion of the world’s resources disadvantage. young people—many of whom, already exist? To an extent, yes. But This means two things. First, we have to as you know, place huge importance its fragility and embryonic state means on the social awareness and respon- share what we learn—making it the it needs to be nurtured carefully by sibility of prospective employers. reverse of the traditional approach to marketeers. research and development, which is tar- Thus, the question “can sustainability If asked directly, consumers are, of geted at building up competitive advan- sell?” is the wrong question. Instead, from course, worried about sustainability. But tage. We are not creating proprietary the perspective of Unilever and Birds Eye will they pay more for it? Probably not. intellectual property to be guarded and Walls, the real question is, “Can a business Iceland’s experience is a warning to any- exploited, but instead we are identifying like ours survive in the long term without one putting too much commercial faith in broad approaches which we need to com- sustainability?” the consumer’s level of environmental municate to, and allow to be used by, One day, sustainability has to sell. Not commitment. other companies facing similar issues. just because it is the only way for us at If we manage to build the emotional link Second, it means we have to be in it for Unilever to secure our future supply I keep mentioning between sustainable the long term. Peas are grown under a chains, but also for the future of the products and consumers’ nagging con- seven-year rotation and there is no point resources on this planet. Like you, we cerns over the future of the planet, then being sustainable for one year and then don’t yet know when that day will come, maybe one day they will pay a premium spending the next six flagrantly using up but we hope it will not be too far away.

RMISolutions 19 F a l l 2 0 0 2 B o a rd S p otlig h t

A d a m Albrig h t wit h G a rre t t A d a m Albrig h t, in t h e Arctic Albrig h t N ation al Wildlife Re f u ge. “You get one life. dam Albright believes the It’s about being optimistic and enjoying it. world needs to change its It’s not about thinking about energy use. A wearing a hair shirt.” But he’s optimistic that change will come, and can be relatively painless. Albright has been on Rocky Mountain Institute’s Board of Directors for just over three Albright makes his living as a private “My long-term vision for RMI is for it to years, because he sees RMI as an impor- investor, both in traditional companies be as good at functioning as an organiza- tant agent of that change. He is and non-traditional ones. He was formerly tion as it is at thinking up ideas,” he says. currently chairman of the board’s a venture capitalist, investing money in He’s happy to be with RMI, partly because Nominating Committee and a member start-up companies. But he now uses the he’s impressed with Amory’s ability to get of the Development Committee. know-how he gained in the venture decision-makers to think creatively. Albright is notable for the number and world to guide investments in the non- Albright’s view is that there’s a strong quality of the organizations he advises. He’s profit world. In 1991, he started a private need for a change of thinking in the a member of the board of directors of the foundation that provides start-up money world, with 40 percent of our planet’s Natural Resources Defense Council, a high- to selected non-profit organizations. productivity now expropriated for the use profile environmental advocacy and legal “I just had an inspiration to do it, when of the human species alone. People like group, and the Worldwatch Institute, well some of the other things I was doing Amory Lovins are telling us not only that known for published research on sustain- weren’t very satisfying any more,” he we need to change, but also that the ability issues. He serves on the board of says. It’s not easy, because non-profit change need not be painful. Redefining Progress, an Oakland-based startups have a spotty record, and it’s group that studies the economic drivers hard to know whether they deserve sup- “My own view is that there’s all kinds of of environmental degradation, and port. “Sometimes they have great ideas opportunities,” he says, especially those Population Communications International, but fall short on execution.” presented by new technologies. Despite a unique organization that promotes the his view that the tipping point may be causes of women’s empowerment and Albright came to RMI’s board at the invi- near, after which Earth can no longer population control through the use of soap tation of CEO Amory Lovins. Amory replenish its resources, he’s not gloomy. operas, both in the third world and in knew of Albright through his friend Ted developed countries. He’s also on the Halstead, the president of Redefining “You get one life,” he says. “It’s about board of Futures for Children, a group Progress. At the time Albright came on, being optimistic and enjoying it. It’s not that promotes the advancement of Native RMI’s board was trying to implement a about wearing a hair shirt.” American children, focusing on education. new strategic plan, but was meeting with “It feels so much better to work on things some resistance, both from the staff and An economics graduate of Brown that are positive,” he continues. “That’s on the board. He was brought in on the University, Albright has, in his own what I think is so strong about RMI. We strength of his reputation for assisting words, “done everything from art to farm- can look forward to a future that’s not with organizational restructuring. Though ing to venture capital.” Now 55, he lives quite so bleak.” the new approach meant some changes with his wife on a ridge in the Berkshires. in personnel, he’s now satisfied that the —Jeremy Heiman They do yoga together and make frequent changes put in place will be successful. use of hiking trails right outside their door, and they ski and snowshoe with Though he says the work he’s most inter- other members of their family. Adam ested in is RMI’s energy work, his focus spent his most recent birthday hiking in as a board member is on the whole the Alps with his wife and daughter. organization.

20 RMISolutions F a l l 2 0 0 2 D onor S p otlig h t Craig M elby: A n d Re al Est at e’s H a rd Sell

f you’ve ever been to South Florida, During his 20-year mum of materials that emit volatile organic you know it’s an area where RMI’s commercial real estate compounds (VOCs). He’s planning a future I green building work needs to be career Melby has conversion of the house’s energy systems shared with developers and architects. owned, managed, to active solar, wind, and hydrogen. According to the U.S. Census Bureau, leased and/or brokered Florida’s population jumped from seven millions of square feet Craig has three daughters, aged three, 13, million to 16 million between 1970 of office buildings, shopping centers, and 16 years, respectively, and, his ideas and 2000 (South Florida went from two industrial properties and land. Currently, about raising them are provocative com- to four million), and today the Sunshine he runs The Melby Group, Inc., which pared to some. State shows no sign of slowing down. provides tenant representation services to “Isn’t it ironic that parents will ‘work Growth is an often-discussed subject. expanding companies throughout Florida. hard to provide a better life for their “When my clients are in the site selection Fortunately, some of RMI’s philosophy kids,’ taking them to soccer, swimming, and design stage, I never hesitate to bring is being spread around in South Florida, trips, etc., all the while driving an SUV up things like proper solar orientation, thanks to longtime Institute supporter that is ruining the planet they are going the advantages of daylighting, indoor air Craig Melby. Melby is unusual—he’s to have to live on?” he asked, in a refer- quality and energy-efficient technologies. heavily involved in many aspects of the ence to global warming. “I assume that if Most look at me like I’m a nut—but I commercial real estate sector, yet he’s also they knew better, they would make bet- can’t help it. It’s something I gotta do.” adamant about changing the industry. ter choices—and it is still too easy to turn He’s a green building and development Melby sits on the on the board of the a blind eye and pretend there is no prob- salesman in a land where such fellows Florida Green Building Coalition (a non- lem when the skies are still blue and the seem few and far between. profit dedicated to improving the built envi- air still clean. I really hope they’re right ronment) and is a charter member of the and there is no problem!” “I don’t remember how I first found out South Florida Green Design Council. He about RMI, but the more I read the more But just in case, Craig Melby will continue also writes a column quarterly for the Real impressed I am that your group can help selling his green ideals—for his business, Estate Strategies newsletter, in which he solve the world’s problems,” he said. and for his girls. espouses the virtues of energy and resource “So I keep contributing.” efficiency in buildings whenever he can. D e a r R M I Re a d ers “Most of my contemporaries still don’t What frustrates him most about green a n d Su p p ort ers, seem to be aware of the world’s environ- building and development is that “our gov- mental problems, or that they can do a One of the benefits of being an RMI ernment leaders do so little ‘leading.’ Also, lot to solve them while at the same time supporter of $20 or more is receiv- that zoning and building regulations so making money. But it is getting a lot bet- ing three issues of our newsletter, often get in the way and prevent you from RMI Solutions, annually. Of course, ter than it used to be. Recently SIOR (The doing something better than a code which you can read the newsletter online Society of Industrial and Office Realtors) is many times far behind the curve.” anytime at www.rmi.org without a decided to support the LEED (Leadership subscription. However, if you enjoy in Energy & Environmental Design) pro- Putting his money where his mouth is, it, we hope you’ll contribute anyway. gram, and some of the nation’s biggest Melby is completing his own passive-solar Also, we apologize if you received developers are discovering green design, six-bedroom mountain lodge, which he your copy of RMI Solutions at the materials, and technologies.” designed and contracted himself. The wrong address, or if you requested house features a heat-reflecting light an email notification and instead Melby grew up in St. Petersburg, Fla., but colored metal roof; high performance received a hard copy in the mail. has spent the last ten years in the Stuart, Please, if you would like changes windows; ICF (insulating concrete forms) Fla. area—“much less developed than made in your mailing address or in most of Florida—so far—which I like.” construction; earth-berming; natural venti- how you receive RMI information, lation; concrete and wood floors; and uses contact Ruth Klock at 970-927-7203, no pressure-treated wood and a bare mini- or email her at [email protected].

RMISolutions 21 F a l l 2 0 0 2 Instit u t e Su p p ort ers

Some Valley residents have had a vague Egan; storyteller Linda Levy; fuel cell A H e a rty idea of what RMI does, but most had an demonstrations; photography by Gregg T h a n ks to All incomplete picture. Elaine LeBuhn, a donor Adams; donated beer from New Belgium who lives in Snowmass Village and who has Brewery, the only wind-powered U.S. since become an RMI board member, came brewery; wine given by Best Connect Dale Levy, up with the idea of having a 20th anniver- Imports; and food donated by Clark’s Development Director sary picnic to build awareness among and Market and Peach Valley CSA. relationships with our neighbors. We are Sunday 14 July may grateful for the many hours that Elaine Absolutely vital to pulling all the picnic ele- go down in history spent making this event the success it was! ments together—invitation lists, shuttle bus as the day the world transportation, first aid, and much more— changed in the This wasn’t your ordinary Sunday after- was a staff committee including Ginni Roaring Fork Valley—where our headquar- noon affair in the park. It included music Galicinao, Ethel Lossing, Jenny Constable, ters in Snowmass, Colo. is located. by the band Rodeo Cool and Bobby Mason; and Ben Shepherd. Indeed, the entire RMI hot-air balloons courtesy of Unicorn staff helped out at some point. Thanks to On that day RMI celebrated with 350 Balloon Co. and Above It All Balloon Co.; everyone who worked long and hard. Valley guests our 20th anniversary at a a Hypercar, Inc. display; lighting, home, fun-filled, sun-drenched, information-rich, and energy efficiency displays provided by My special thanks go to all our Roaring Fork food-, drink-, and music-enhanced picnic E SOURCE, Alpine Ace Hardware, Plug Valley neighbors who celebrated with us. on the Windstar Land Conservancy Power, PowerLight Corp., Rising Sun We look forward to getting better acquaint- property. Enterprises, and Interface, Inc.; emcee Tom ed with you and others in the Valley.

M a gici a n D o c E a so n wor ks his sli g h t o f h a n d o n so m e ske p tic a l pic nici a ns.

Photo: Gregg A dams

22 RMISolutions F a l l 2 0 0 2 Institute Supporters Our sincere appreciation Bud Konheim, Nicole Miller, in is offered to these friends memory of Eric Konheim Vot e for R M I in Workin g who have contributed Carolyn Konheim & Brian Ketcham, Asse ts’ Poll to RMI between 1 May in memory of Irene Salminen In August, Working Assets, the forward-thinking telecommunications 2002 and 31 August 2002. Elaine & Robert Le Buhn firm that donates a portion of its revenues to non-profit groups, Numbers in parentheses Laurie & John McBride announced that RMI would be one of the 50 nonprofits to which it indicate multiple dona- donates a percentage of its annual income in 2002. tions. Please let us know Henry P. McIntosh IV, Constance H Bishop Foundation “We are hoping to exceed $4 million to be divided among the 50 if your name has been groups,” wrote President Michael Kieschnick in a letter to RMI. omitted or misspelled Joyce Mertz-Gilmore Foundation “You may recall that the allocation is based solely on a vote of our so it can be corrected Hideo Miki, in memory of customers by ballot, so the range of grants can be quite large— in the next issue. Eric Konheim from roughly $150,000 down to $30,000, reflecting their votes.” Tricia Nichols Each year, Working Assets selects 50 non-profits to receive a por- Jane & Kent Slaughter tion of the company’s sales. Since Working Assets was founded in 1985, it has disbursed over $30 million in donations. The compa- BENEFAC T O R S Effie E.Westervelt $10,000+ ny’s many customers decide who gets the money, by voting either The Virginia and Charles Brewer online or through special ballots that come with telecom bills dis- Family Foundation S P O N S O R S $100 – $999 tributed in October and November. Compton Foundation, Inc. John Accardi & Nancy Clarke Additionally, customers can vote for specific percentages of Working Assets’ donation to be dispersed to the groups—say, The Energy Foundation Gregg Adams 30 percent to one, 70 percent to another. Remember, you must be Bruce Adams Walter and Elise Haas Fund a Working Assets customer to vote. Not surprisingly, we encourage The Estate of Laura Hart Adobe Matching Gift Program you to vote for Rocky Mountain Institute. You can vote online at The Estate of Phoebe Love John L.Allen www.working assets.com/voting/. Holzinger Daniel Alpert The Gordon E. and Betty I. Moore Deborah Bezanis S.William Gouse Brian L. Larsen & Renae Kofford Foundation Stephen W. Biegel, in memory of Dale L. Gray Kathleen & Charles Lea, The New-Land Foundation, Inc. Eric Konheim Joshua Greenberg, in honor of Elaine Le Buhn The San Francisco Foundation William & Sandra Bliss (4) in memory of Eric Konheim Timothy Leddy Sandler Family Supporting Jabe Blumenthal & Julie Edsforth Sadja Greenwood (2) Cynthia R. Lewis, Foundation Margaret B. Bodtke Richard & Lois Gunther in memory of Eric Konheim Alice & Fred Stanback Lisa L. Brown, in memory of Kathy & Robert H. Gurland, Barbara & Irwin Linden, Fred Stanback Fund Jack R. Brown in memory of Eric Konheim in honor of Gertrude Naster Nancy A. Cantor Eldon Haines & Linda Rose Lisa & Jonathan A. Lucas, PAT RO N S Rita & Frank Castagna, Jane Hileman & Gaeton Zorzi in memory of Eric Konheim $1,000 – $9,999 in memory of Eric Konheim Peggy Hill Michael L. MacDonald Michael F. & Dulinda Coady, Anonymous Carola Mack, in memory of Eric Konheim Kurt Holtz Anonymous Donor through the in memory of Eric Konheim Bill C. Coleman Joel B. Ingber, D.D.S. Charitable Gift Fund Janice & Arthur Martin Kirkman & Lynn Eaton Jackson, Peter Barnes & Leyna Bernstein George Allen Cook in memory of Eric Konheim Donald & Geraldine McLauchlan, in Barnes Marion P. Culhane honor of Geraldine McLauchlan Marye J. Jackson Nancy & Robert H. Campbell (2) Lois-ellin Datta (4) Craig A. Melby (2) Charles N. Jaffee & Mary I. Caulkins & Karl Kister, Bill & Phyllis Davies, Marvina Lepianka (2) Audrey & Danny Meyer, Caulkins Family Foundation in honor of Dawna Davies-Wong The Rotonda Foundation, in mem- Anne & Brook Jones Earth Share Michael Edesess & Dyan Zaslowsky ory of Eric Konheim William Joseph Ettinger Foundation, Inc. Clayton H. & Katharine G. Farnham Nicole J. Miller, William A. Kint, Kathy Finley Honey S. Fishman in memory of Eric Konheim in memory of Philip A. Kint Stephen P. Hanson, in memory of Victor Garrett Mary Sue & William F. Morrill Kazuaki Komura Eric Konheim Jenifer & P.M. Gibbons, Johnny M. Mullen, Ken & Gail Kuhns, Peach Valley Kathi M. Kerr, in loving memory of in memory of Eric Konheim in memory of Benjamin M. Mullen CSA Farm Frances D. Kerr Chris Goplerud Wendy & Ford Northcut

RMISolutions 23 F a l l 2 0 0 2 Institute Supporters Avis R. Ogilvy A S S O CI AT ES $1 – $99 Keith Cochran Bernard Greening Susan D. Osofsky (2) Leslie Andersen Clark Cole Tamara Greenlaw Robert Patchen, Pace of Southport Steve Anderson Hilary & John Cole Michael Gurau (2), in honor of Eric Konheim Kate Anderson Consolidated Manufacturing, Inc. Kelly L. Harris Judith Schector Jennifer Anderson, Jason Davis Paul Harrison Susan & Ford Schumann in memory of John Denver Marilyn & Robert A. Derrickson, Jr Michael & Oliva Hassig Sherman Selden Harry & Cecille Anisgard Dion Devereaux Heifer Project International Cecil Sheib, Optimum Impact Fund Anonymous (20) Craig & Joni T. Diserens Wava & Reese H. Henry Philip Silber, Ann Marie Bailey Phyllis & Roger L. Duba Eric Henry in memory of Eric Konheim Edna C. Bartlett & William W. Durrell Craig Hibberd Douglas J. Smith Katherine B. Gordon Donald H. Dyall Bonny & Dwight Holmes, James Stevens, Garry Baverstock & Julia Hayes Charles Eady in honor of Douglas Holmes Nancy & Daniel L. Streiffert Guy L. Bazzani John M. Ellwood Mary Jo & Dale O. Hornberger Richard L. Sweeney Thomas A. Bell Polly & John M. Ely Jr. Carl Hungerford John Tellefsen Cindy Bethel Kim & Marshall Evans (2) Christopher M. Hunt The Sun Microsystems Toby Branch Robert Fairchild Larry R. Hyrup Foundation, Inc. Renata & Gary J. Brand Marvin Feldman J.P. Morgan Chase Foundation Ken Thomas Lorna Brown Nicole Hill Finnie Jay Jabas United Way of Greater Los Angeles Robert A. Brown Kim & David Floria C.J. & Naomi Jackson United Way of Kitsap County Sheilah Bryan Anna Flynn Donna & Jeffrey A. Jaffee David W.Vaughan & Martin Stupich Elaine & Bruce W. Burley Bertorello Francesco Thomas Jensen Jorgen Vos Michael F. Caffrey, Mark Friedman (4) James N. Jolly Allene Walter in memory of William P. Caffrey Marjorie & Brian Gaffikin William H. & Kay Jones Eleanor Wasson (3) Andrea Calbow David Garbacz Dana Judy & Susan A.Weisner Susan & Seward Weber Ruth & Ralph N. Calkins Margaret Geist JustGive.org Billie Ann & Sam K.Williams, Laura Carpenter, Rick Glassman Gerald & Jane Katcher in memory of Sarah Leigh Rives in honor of Art Carpenter Leslie & Merrill Glustrom Peter Kendall, Alex & Jerelyn Wilson J. Patrick Carroll Marian Goad The Schad Foundation Windstar Foundation Lynn R. Chong, Barbara A. & Howard N. Goldsmith Joseph A. Kestner, Jr. Harold M.Wit in memory of Chet Brickett James Goldstein Satguru Kaur Khalsa World Reach, Inc. Raymond & Janet R. Chu Bobby Grayson Charles F. King Geoffrey Coats Larry Greene

R M I’s 2 0 t h A n nive rs a ry Pic nic c ele b ra tio n f e a t u rin g t h e m usic a l t a le n ts o f o u r ve ry ow n E t h el Lossin g a n d Ro d e o C ool.

Photo: Gregg A dams

24 RMISolutions F a l l 2 0 0 2 Institute Supporters Connie Kobs (2), Philip D. Pack, in memory of John Denver in memory of Eric Konheim M atch m a ker, M atch m a ker, Ed Kountze Virginia M. Parker M a ke M e a M atch! Mike Kutner Arthur Payne For the third consecutive year, the Sandler Family Supporting Christopher Landgraf Nick Pennell, Foundation is challenging individuals and foundations to make ini- tial gifts to RMI of $10,000 or more. With the help of the Sandler Jacque & Greg Lantz Marty Pickett & Edgell Pyles match, your initial gift of $10,000 or more, made by 31 December, Mark Larson John Platt & Lisa Heilbron (2) will be matched 50 percent—a $10,000 gift becomes a $15,000 Dawn Layton & Bill Anderson Rudolph & Florence Popolizio, gift; a $20,000 gift becomes a $30,000 gift. Eva & Richard L. Lehman in memory of Irene Salminen What can $10,000 accomplish? It would pay for a month of inten- Marjorie & Arthur J. Levenson, Ron Porter sive education and consulting on natural capitalism in China, a in memory of William P. Bundy Power Saving Inspection Services country on the brink of tremendous industrial development. It could help RMI’s researchers synthesize the best ways to get off Wei-Chong Liao Lee Purcell oil dependence, or identify the most promising applications of bio- Donald R. Limbaugh Christopher R. Purvis mimicry in building and industrial design. It would help complete Anders Linse Nan & Andrew Quiroz a web-based tool for community planners to estimate cost savings Steven Lipman Wolfe Reitz from local energy efficiency. In these and hundreds of other ways, your investment in RMI’s work will be timely, strategic, and Roger Lippman Pat & Ray Rich results-oriented. Little Elk Creek Marion Richards (2) If you or someone you know would like to make an initial gift of Home Owners’Assoc. Patricia & Ronni R. Ridenour, $10,000 or more to RMI before 2002 comes to a close, please call Gretchen Liuzzi in memory of John Denver Peggy Hill or Dale Levy at 970-927-3851; or email Peggy at Don & Helen Lowe Robin & David S. Rittenhouse [email protected]. Remember, as soon as new supporters contribute a Lillie H. Lundahl, Alison & Richard R. Roach, total of $200,000, the Sandler Family Supporting Foundation will donate an additional $100,000! in honor of Irene Salminen in memory of Eleanor Velie Nicholas Mack Thomas Roberts Michael J. Malone Mark & Alexandra Robinson United Way of California WIN D S TA R L A N D Carl Manz & Christine Johnson Jon & Carole Ryberg, in memory of United Way of King County C O N SERVA N C Y Lorraine Marie, Esther E.Valentine-Ryburg John Van Strien D O N O R S in honor of Ray Fredrick Scott A. Schaefer Melissa von Schwanenfluegel Anonymous, Emily McCormack David A. Schaller Robert Wallace in memory of John Denver Laurie & Craig McDaniel Charles I. Schnautz Russell D.Ward, Jr. Grace & Bryan T. Bailey (5) Michael McGavock Suzanne Jean Shafer Brian Webster Michael Cummings (3), Jennifer Means Jerome L. Shain Mike Weislik in memory of Marcia Bohnen Larry & Jacqui Menkes Sherga Family Martin Weiss (2) Jane Ellen Hamilton Nation Meyer Carol & Ted G. Skowronek Osgood & Barbara Whittemore Joann M. Hutton, in memory of John Denver Michael Minaides Scott Smith Thomas G.Wilkinson Linda L. Locati, Betty & Kenneth Moore Mary Smith Cooper, Marianne Williams in memory of John Denver Lew Moran in honor of David Orr Diane Wittner Kerry & Ricki R. Newman, V. Joe Morice Gail & Gregory C. Speer Holly A. Zimmerman & in memory of John Denver David Baxter Moyer Renee Justice Standley, Peter DeCrescenzo Judy Pollock Shannon & Gary E. Mueller, in memory of John Denver in honor of CJ Mueller Thomas S. Stanton Philipp Muessig Richard E. Strucker National Renewable Energy Lab Robert E. Svoboda Jonathan K. Niermann Matt Syme We also want to thank those individuals who have William E. O’Neill Jaymes Tadlock contributed to RMI through Earth Share, the combined Toki & David C.Thompson federal campaign, and other workplace charitable Robert Olsson programs. If you would like to have RMI as a charitable J. Oosterlinck Charles J. & Rhoda Transue option in your workplace campaign, please contact our D evelopment D epartment (970/927-3851). Theresa M. Osborn David Tupper

RMISolutions 25 F a l l 2 0 0 2 R M I P u blic ations

S m all Is Pro f it a ble: T h e N ew B usin ess Cle a n er E n erg y, T h e Hid d e n Econo m ic Cli m at e: Gree n er Pro f its: B e n e f its o f M a kin g A Guid e to Lower C a r b on Fu el C ells as C ost-E f fective Electric al Resources t h e E m issions a n d B e t t er Distrib u t e d E n erg y Rig h t Siz e (softcover) B usin ess Per for m a nce Resources (softcover) (PDF-844k) by A mory B. Lovins, E. Kyle D atta, Thomas Feiler, Joel N. Swisher PE Karl R. Rábago, Joel N. Swisher PE, A ndré Joel N. Swisher PE Lehmann, and Ken Wicker This research paper explores the cost- Global climate change and the potential effectiveness of fuel cells as an electrical RMI’s energy team’s latest contribution costs of CO emission limits can impose generation source to provide domestic, to the Institute’s already rich store of 2 risks to business performance and asset commercial, and industrial power. intellectual capital, Small Is Profitable: values, while on the other hand, these Cleaner Energy, Greener Profits finds The Hidden Economic Benefits of concerns also present new business that, over the next decade, the once-cen- Making Electrical Resources the Right opportunities for pro-active companies tralized electric power industry will Size, builds on CEO Amory Lovins’s and institutions. Profitable “no-regrets” evolve toward a more competitive and 1977 Soft Energy Paths argument—that energy-efficiency improvements are wide- heterogeneous structure. In this new the cheapest electricity is not that pro- ly available today, and longer-term invest- environment, the use of fuel cells will duced by centralized coal- and gas-burn- ments in clean energy technology will be become economical if their proponents ing facilities. Rather, the costly and vul- increasingly attractive in a carbon-con- can capture their benefits as small, nerable architecture of the grid, our tech- strained world. Meanwhile, flexible regu- decentralized power sources. Fuel cells nical society’s need for more reliable lation and careful use of the emerging and other distributed generation sources power, and the enormous difference of carbon markets can help manage costs. require less power distribution infrastruc- scale between most needs and most sup- These and other opportunities can be ture (wires and transformers) because plies have brought us to the point where captured by responding to the challenge they can be sited close to where power is smaller is, in fact, economically superi- of climate change in a way that stimu- used. They are cleaner and quieter than or—a huge shift in energy thinking. lates innovation and improves business conventional power generation sources, 1st edition (paper, 4-color, 2002). practices. This document provides a basic so they can be located near or inside 419 pages, 782 refs. understanding of climate science and buildings, facilitating waste-heat recap- ISBN# 1-881071-07-3, $60 plus S+H. policy, and it identifies strategic options ture. Because fuel cells are modular and www.natcap.org for reducing CO 2 emissions and position- flexible in size, they don’t result in over- While supplies last, a free copy of ing a business to thrive in a carbon- building of capacity as do large power Cleaner Energy, Greener Profits will be constrained world, including detailed plants. (Paper, 2002). 36 pages. shipped with every SIP order. case-studies from well-known companies. Downloadable at: (Online only, 2002). Downloadable at: www.rmi.org/store/p385pid2418.php, To Ord er R M I P u bs Visit: www.rmi.org/images/other/ or available in print for $5 plus S+H. www.rmi.org/store/pid385.php Bus_NewBizClimate.pdf. or call 970-927-3851

26 RMISolutions F a l l 2 0 0 2 RMISolutions

RMI Solutions is published three times a year and distributed to more than 10,000 readers (by mail and online) in the United States and throughout the world. © 2002 Rocky Mountain Institute. All rights reserved. Letters to the Editor We want to hear your comments. Please address all correspondence to: Cameron M. Burns, Editor N at ural C a pit alism: Hopeful, creative, civil, and fun, the Rocky Mountain Institute Cre atin g t h e N ex t Economic Renewal process is designed 1739 Snowmass Creek Road In d ustrial Revolu tion to defuse factionalism, encourage citizen Snowmass, CO 81654-9199 tel: (970) 927-3851 (softcover) involvement and collaborative decision- fax: (970) 927-3420 making, and lead to practical projects [email protected] Paul Hawken, A mory B. Lovins, www.rmi.org and L. Hunter Lovins that benefit everyone. 3rd edition (paper, 1997). 225 pages. For reprint permission, please contact The classic work on reshaping business, ISBN# 1881071065. $17.95 plus S+H. [email protected]. As a leader in promoting Natural Capitalism: Creating the Next resource efficiency, RMI supports leading Industrial Revolution, is now available recycled paper manufacturers. This publication in a softcover. In Natural Capitalism, is printed on New Leaf EcoOffset (100% post- three leading business visionaries consumer waste, processed chlorine-free) using vegetable-based ink. Contact New Leaf Paper describe a future in which business and for more information, 1-888-989-5323. environmental interests increasingly No new trees were used in the production of overlap, and in which companies can this newsletter, and we offer paperless electronic improve their bottom lines, help solve delivery via our website. environmental problems—and feel About the Institute better about what they do—all at the Rocky Mountain Institute is an entrepreneurial same time. 1st edition (paper, 1999). nonprofit organization that fosters the efficient 416 pages. and restorative use of resources to create a A Pri m er on Sust ain a ble ISBN# 0316353000, $17.95 plus S+H. secure, prosperous, and life-sustaining world. B uildin g (softcover) www.natcap.org Our staff shows corporations, communities, Dianna Lopez Barnett & individuals, and governments how to create William D. Browning more wealth and employment, protect and enhance natural and human capital, increase T h e Econo m ic Re n ewal Written for architects, developers, gener- profit and competitive advantage, and enjoy Guid e (softcover) al contractors, landscapers, and home many other benefits—largely by doing what owners, this book demonstrates how a they do more efficiently. Michael Kinsley holistic approach to design can result in a Our work is independent, nonadversarial, and This field-tested manual describes how a building even better than the sum of its transideological, with a strong emphasis on mar- few energetic people can help steer their parts. Topics include site and habitat ket-based solutions. community toward development that’s restoration, transportation integration, Founded in 1982, Rocky Mountain Institute is sensitive to local values and the environ- edible landscapes, energy-efficient design, a §501(c)(3)/509(a)(1) public charity. It has a ment. Filled with success stories, work- materials selection, indoor air quality, and staff of approximately 50. The Institute focuses its work in several main areas—business practices, sheets, media materials, and resources, cost implications, plus an extensive bibli- climate, community economic development, it’s a do-it-yourself toolkit for anyone who ography and source lists. 1st edition energy, real-estate development, security, trans- wants to get sustainable economic devel- (paper, 1995). 135 pages. portation, and water—and carries on international opment moving in the local community. ISBN# 1881071057. $16.95 plus S+H. outreach and technical-exchange programs.

RMISolutions 27 F a l l 2 0 0 2 Rocky Mountain Institute/volume xviii #3/Fall 2002 RRMMIISSoolluuttiioonnss newsletter

CONTENTS

SMALL IS PROFITABLE . . . . . p a ge 1 STAFF SPOTLIGHT ...... p a ge 15

LEAN MANUFACTURERS’GROUP . . . . p a ge 4 OTHER VOICES ...... p a ge 16

GREEN BUILDING INTRO . . . . . p a ge 7 BOARD SPOTLIGHT ...... p a ge 20

BIOMIMICRY BY DESIGN . . . . . p a ge 9 DONOR SPOTLIGHT ...... p a ge 21

SUN-POWERED SURFING . . . . . p a ge 13 INSTITUTE SUPPORTERS . . . . . p a ge 22

WHAT ARE YOU DOING? . . . . . p a ge 14 RMI PUBS FOR SALE . . . . . p a ge 26

Rocky Mountain Institute N O N-P R O FIT O R G 1739 Snowmass Creek Road U.S. P O S TAGE PA ID Snowmass, CO 81654-9199 P ERMIT #143 G R A N D J C T, C O change service requested