Area firms to cut greenhouse gas emissions voluntarily

Silicon Valley/San Jose Business Journal - March 29, 2004

by Andrew F. Hamm

While visions of regulating greenhouse gas emissions dance in the heads of congressional leaders, Silicon Valley companies are plowing ahead with their own voluntary program to make breathing easier.

A combination of business groups, state environmental agencies and environmentalists will kick off on March 29 an ambitious carbon dioxide emission-reduction program for Silicon Valley. By 2010, the goal is to reduce emission levels to 20 percent below 1990 levels.

"We're hoping to do a good enough program that it will be adopted elsewhere," says Margaret Bruce, environmental director for the Silicon Valley Manufacturing Group. SVMG has joined with the California Environmental Protection Agency and the Silicon Valley Environmental Partnership in spearheading the program through an organization called Sustainable Silicon Valley. Only Napa Valley and Toronto have similar programs in North America.

The primary weapons will be reducing the amount of electricity, natural gas and motor fuels being used by participating companies, Ms. Bruce says.

Pacific Gas & Electric Co. is endorsing a bill by Sen. Thomas Carper, D-Del., that would set federal greenhouse emission standards on urban areas, says Wendy Pulling, PG&E's director of environmental policy.

"This program will give businesses a better understanding of risk assessments... and also to have a seat at the table on the ongoing conversation on global-warming issues," Ms. Pulling says. "And of course, reducing CO2 emissions means saving energy and that means saving money."

In 1990, a total of 13.42 million tons of carbon dioxide was deposited into Silicon Valley skies. In 2000, 15.69 million tons of carbon dioxide were released into the atmosphere in Silicon Valley. The 2010 goal is to reduce that to 10.74 million tons.

The American Lung Association gave Santa Clara a "D" on its annual grade for air quality, but reducing CO2 emissions is really a global issue, says Terry Trumbull, president of the Santa Clara chapter of the American Lung Association.

CO2 isn't as harmful healthwise as ozone, Mr. Trumbull says. But an increase in CO2 emissions reduces the water supply, causes coastal damage and affects crops and vegetation due to associated higher temperatures, Mr. Trumbull says.

Energy reduction is being emphasized because a large majority of energy used in California is generated by burning fossil fuel, including natural gas and coal, Mr. Trumbull says.

Businesses will be asked to make adjustments in their automobile fleets, on-site generators and back-up generators, enact energy-reduction programs and make capital improvements, including the installation of more energy-efficient appliances and equipment.

In return, businesses will receive official recognition that they have reduced their carbon dioxide emissions. This will help in case future state or federal CO2 requirements are ever enacted and gives the company a leg up in the public relations battles, Ms. Bruce says.

Hewlett-Packard Co. is trying to reduce its electricity consumption in its Bay Area plants by 1 gigawatt by the end of 2004 and by 50 gigawatts worldwide -- a 3 percent reduction overall -- says Robert Parkhurst, HP's global environment program manager.

"Just the (temperature) control can lead to millions of megawatts reduction worldwide," Mr. Parkhurst says.

PG&E is in the process of a company-wide inventory of its CO2 emissions, Ms. Pulling says. Once the survey is complete, PG&E will target areas where they can reduce emissions.

Ms. Bruce notes that not all companies have to get as involved in the program to participate.

"We're not asking everybody to do 20 percent (reduction)," Ms. Bruce says. "If your organizations can do 1 percent, you are welcomed. We'll nibble this down, if necessary."

While the initial list of Silicon Valley companies participating is impressive, it is also short. Only seven organizations were signed up as of March 24, including Lockheed Martin, Oracle, Lifescan and HP.

Other environmentally friendly Bay Area business programs already in existence also are lightly used.

Santa Clara County's Green Business Program has certified only 30 businesses since it was established in 1998 with another 30 going through the process. A separate green building program being established for city buildings in San Jose, Sunnyvale and Menlo Park among others has certified only a handful of buildings nationwide. Among those is the William and Flora Hewlett Foundation building in Menlo Park, although there are dozens more in the certification process.

ANDREW F. HAMM covers energy for the Business Journal. Reach him at (408) 299-1841.
© 2004 American City Business Journals Inc.