Bloomberg’s green power resources include biomass and wind power.

Bloomberg Recognized for Industry-Leading Use of Green Electricity

NEW YORK–(BUSINESS WIRE)–Bloomberg L.P., a leader in sustainability efforts among global corporations, has been named by the Environmental Protection Agency as number 30 on its list of the 50 green power partners using the most renewable electricity and the only media company in the top 50. Green Power helps to prevent emissions from conventional power sources that are linked to harmful air pollution and climate change.

“Purchasing green power helps our organization become more sustainable, while also sending a message to others across the U.S. that supporting clean sources of electricity is a sound business decision and an important choice in reducing climate risk,” said Peter T. Grauer, Chairman of Bloomberg L.P.

The EPA recognized Bloomberg for its annual green power usage of more than 140,000,000 kWh, 59% of its total electricity use. Bloomberg’s green power resources include biomass and wind power.

The Bloomberg sustainability program is on track to reduce the company’s carbon footprint 50% by 2013 (from its 2007 baseline) through implementing energy efficiency measures, increasing renewable resource use and activating comprehensive waste reduction strategies. Bloomberg has implemented composting programs in major U.S. offices and has LEED certified offices in the U.S., Japan, and U.K.

Bloomberg’s commitment to the environment and the communities in which it operates extends beyond its own doors – it also engages vendors and customers in setting standards, promoting clean technologies and reducing natural resource use. Bloomberg employees use an internal site to share information and tips about sustainable practices both at the office and at home. BGREEN, as Bloomberg calls the program, has been widely embraced, and is now an ingrained part of the company’s culture.

The EPA report is available at: yosemite.epa.gov

Photo Credit

A Boeing 747 cargo plane was demolished for recycling this month by the Aircraft Recycling Corporation at the former George AFB in Victorville. About 80-85 percent of an airplane is recyclable. Photo courtesy of ARC – Doug Scroggins

It may be counterintuitive to think of EPA Superfund sites as hotbeds of green technology. But as the Air Force Real Property Agency — responsible for buying, selling and managing Air Force property worldwide — continues cleaning, restoring and transferring property to the community, the former bases are attracting more clean, green businesses by the day.

McClellan and Mather in Sacramento, George in Victorville, Castle in Atwater, March in Riverside, and Norton in San Bernardino – all on the EPA’s National Priorities List due to pollution from former days – house a growing number of businesses promoting environmentally-friendly practices and products.

McClellan Park in Sacramento may be the green giant of the group, with numerous tenants on the leading edge of green technology. One is the 91,000-square-foot factory of ZETA Communities, manufacturers of “net-zero energy” homes, which produce as much energy as they use over the course of a year. Constructed in modules, the buildings use photovoltaic power (also known as solar power), Energy Star appliances, ultra-efficient insulation and high-performance windows, among other features. ZETA Communities, headquartered in San Francisco, won Green Builder magazine’s 2009 Home of the Year Award for a 1,540-square-foot modular home now permanently located near a BART (Bay Area Rapid Transit) station in Oakland. The McClellan Park factory can produce five modules (or two townhouses) per day. ZETA also manufactures energy-efficient mixed-use facilities at McClellan and is planning to produce green housing and other buildings for various military bases around the U.S., according to Shilpa Sankaran, VP of Business Operations and co-founder.

This energy efficient modular home, by ZETA Communities, won Green Builder magazine’s home of the year award. ZETA’s factory at the former McClellan AFB can produce two townhouses per day. (Photo by Nandita Geerdink)

Fiberwood LLC, also at McClellan, operates a successful business recycling 50-100 tons of newspaper per day into a product called hydroseed mulch. Mixed with whatever seeds a contractor wants to add, as well as water and fertilizer, it’s sprayed wet on highway embankments, large building sites, and sites damaged by fire to control erosion and dust. The mulch keeps the seeds wet to promote rapid germination. Fiberwood recently expanded to produce spray-on building insulation, called Kozi, also made of recycled materials, in this case denim and cardboard. “We’re using totally recycled material,” Stuart Douglass, president of Fiberwood said. “It’s absolutely natural and healthy.” The company is currently testing recycled paper animal bedding.

Hydromulch, manufactured by Fiberwood LLC at the former McClellan AFB, is sprayed after a fire in Santa Barbara, CA for reseeding and erosion control. The mulch, made of recycled newspaper, can be applied as soon as a fire is out. (Courtesy photo)

McClellan is also the headquarters of Renewable Energy Institute International, which recently received a $20 million stimulus grant from the U.S. Department of Energy to build a biorefinery in Port of Toledo, Ohio. There, crop waste such as rice hulls will be converted into diesel fuel.

Ternion Bio-Industries, based in San Jose, established a research and development facility at McClellan, where the company recently built what’s believed to be the first commercial-scale bioreactor designed to use algae to reduce carbon emissions. The three-story tall reactor can grow the amount of algae produced in almost three acres of open ponds in less than 300 square feet. Future customers such as power plants and refineries will feed their CO2 emissions to the algae, which – like all plants – needs CO2 to live.

SunEdison, North America’s largest solar energy provider, has its Renewable Operations Center in a former airplane hangar at McClellan. SunEdison has about 80 megawatts of generation capacity under management across some 300 solar power plants. At the center, SunEdison’s photovoltaic power systems are monitored, remote diagnostics are analyzed, and service fleets dispatched as necessary.

Beutler Heating and Air Conditioning, based at McClellan, is selling and installing Yes! Solar products made by Solar Power Inc. for residential and commercial use. Beutler advertises turnkey solutions for clients interested in switching to solar power. And, at press time, McClellan Business Park had signed a lease with N Solar Inc. of South Korea, which plans to manufacture solar modules beginning in September, eventually employing 150 people at the site. N Solar’s headquarters will also be housed at the 128,000-square-foot McClellan site. The company, based in Seoul, is a subsidiary of Millinet, an information technology company.

Across town at Mather Commerce Center, American River College is holding classes in a former Air Force diesel equipment repair shop to teach students about clean-diesel technology. In the wake of tougher state and federal emission control standards, the certificate program trains students to repair and retrofit trucks and buses. Craig Weckman, chair of the clean-diesel technology department at ARC, said the class is so popular it has students wait-listed for admission.

Todd Stretars (rear) and Martin Peck make adjustments to a diesel engine. Both students are enrolled in American River College's clean diesel technology program at the former Mather Air Force Base in Sacramento, Calif. (Photo by Wojciech Betlej)

Also at Mather, California Electronic Asset Recovery, Inc. (CEAR) recycles electronics such as televisions, computers, VCRs, DVDs, phones, copiers, printers, microwaves, and small appliances. Some electronic devices are refurbished and sold. Those categorized as “end of life” are disassembled at CEAR, where hazardous materials such batteries, fluorescent light bulbs and mercury switches are removed and sent to other recyclers. The business prevents lead, mercury and other toxics used in electronics from entering landfills.

Employees at California Electronic Asset Recovery dismantle monitors at the former Mather AFB. CEAR recycled over 15 million pounds of e-waste last year.

Piles of used computer parts are waiting to be recycled at California Electronic Asset Recovery at the former Mather Air Force Base in Sacramento

In Victorville, at the former George Air Force Base now known as Southern California Logistics Airport, another kind of recycling is taking place on a massive scale. The Aircraft Recycling Corporation is involved in the demolition, dismantling, salvage, and scrapping of outdated or accident-damaged aircraft. “About 80-85% of an aircraft is recyclable material,” said Doug Scroggins, managing director of ARC. Aircraft aluminum cannot be used to make aluminum cans or another aircraft, he said. But it can be used for auto parts, furniture, and other items. Airplane seat cushions are shredded and used as packing material. Carpeting and passenger windows are also recycled. From time to time, a cockpit is donated to a museum.

“It doesn’t matter where the aircraft is,” Scroggins explained, noting that the company will travel wherever there’s an unwanted plane to dismantle it, pick up the material and transport it to a processor. He and his associates have gone as far as Guam to recycle aircraft. He said planes arriving in Victorville for recycling have already been stripped of hazardous materials. A two-minute video produced by Honeywell shows ARC at work demolishing an aircraft:

At the former Norton Air Force Base, now the San Bernardino International Airport, tenant Kelly Space & Technology has invented a WiseLight technology that remotely controls outdoor lighting, saving both energy and money. The City of Los Alamitos is using WiseLight on its tennis courts, softball and soccer fields, according to Jason Lee, Kelly’s Director of Operations.

In some cases, it’s the buildings and corporate business practices that are attracting the attention of green advocates. Also at San Bernardino International Airport, Kohl’s Department Stores, headquartered in Menomonee Falls, Wisconsin, built an enormous solar array on the rooftop of its San Bernardino Distribution Center. There, 6,208 solar panels generate 1 megawatt of power, enough to power 400 homes for a year. Kohl’s also uses solar energy for partial power at nearly half of its California retail outlets. Since October, 2008, all trucks transporting Kohl’s goods from the Ports of Long Beach and Los Angeles are fuelled by Liquefied Natural Gas, the cleanest burning fossil fuel.

Tesco, an enormous British corporation which operates about 200 Fresh and Easy neighborhood grocery stores in the Western U.S., built its main distribution center at the former March Air Force Base in Riverside. In 2007, Tesco installed a $13 million solar roof on its five-building, 820,400-square-foot facility. The chain also uses hybrid refrigeration trucks which can be plugged in while they’re at the center, minimizing CO2 emissions and noise. Each Fresh and Easy store returns all display and shipping materials to the distribution center, where they are recycled or re-used.

And Mark Hendrickson, director of the Merced County Department of Commerce, Aviation and Economic Development, is trying to establish a Merced County Green/Solar Technology Innovation Hub (iHub) at the former Castle Air Force Base, now Castle Commerce Center. The idea is to create jobs capitalizing on new green technologies being researched and developed through UC Merced. UC Merced’s non-imaging optics laboratory at Castle engages in design, development and testing of solar concentrators for photovoltaic and solar thermal system applications. A two-acre solar test center is proposed for adjacent land at Castle.

The iHUB proposal involves a partnership between the cities of Atwater, Los Banos, and Livingston, Merced Community College, UC Merced, Merced County, the Greater Merced Chamber of Commerce, the UC Merced Small Business Development Center, and others “to create a culture for inventions and patents that produce marketable and sustainable applications targeting the field of energy and solar research, and to prepare a workforce for the renewable energy industry,” according to a recent proposal. The area has chronic high unemployment and a poverty rate of 19.3 percent, compared to the statewide average of 12.4 percent in 2008, according to Census Bureau estimates.

In conclusion, as closed Air Force bases around California continue transforming into vibrant corporate complexes, their ability to attract tenants exploring green technologies is unlocking tremendous potential for jobs and growth. At least one of them, McClellan Business Park – coincidentally the green giant of the group – has more people working there now than it did when McClellan Air Force Base closed in 2001.

Large Solar Panel Array - flickr photo by laurenatclemson

The future will be brighter for many businesses in Ontario as more than 500 new green energy projects, most of them solar power installations, were recently approved. Of those projects, two are solar projects in Thunder Bay-Superior North, one in Dorion Township and the other Terrace Bay.

These 510 projects are the first larger power generators to obtain contracts through Ontario’s landmark Feed-In Tariff (FIT) program, the most comprehensive of its kind in North America. FIT encourages the development of renewable energy projects from a diverse range of producers, including homeowners, schools, farmers, large retailers and small businesses, by offering long-term, stable prices for the electricity generated.

“Everybody is participating, from everywhere in Ontario, from farmers, schools and hospitals to large scale retail and commercial operations,” said Brad Duguid, Minister of Energy and Infrastructure. “These projects will create a new source of income while providing new clean and green electricity in Ontario particularly on hot, sunny summer days when demand soars. With our new domestic content rules, these projects will also help create new ‘green collar’ jobs here in Ontario, as well as major economic investments in equipment and services here at home.”

Michael Gravelle, MPP Thunder Bay-Superior North – “These projects bring the benefits of Ontario’s Feed-in Tariff program to northwestern Ontario. Our province’s electricity future will be spurred by initiatives like these that capture the rays of the sun, the force of wind, water and of renewable gases to light our homes and power our businesses. Everyone in the northwestern Ontario should take pride in these developments and look forward to those still to come.”

The 510 projects are to be built in 120 communities across Ontario by farmers, municipalities, local distribution companies, commercial businesses, industrial customers, public institutions such as schools and hospitals, a winery and even a church. The projects range from 10 kilowatts to 500 kilowatts and have a total generating capacity of 112 megawatts, enough energy to power more than 13,000 homes. About 95 percent of the projects are for solar generation. The remaining projects are biogas (20), water (4), onshore wind (3) and biomass (1). A detailed list of the projects is available on the Ontario Power Authority’s website at www.fit.powerauthority.on.ca

The successful applicants from northwestern Ontario were, Cyntech Corporation of Dorion Township, for a 250 kilowatts solar project and TNT Properties of Terrace Bay, for a 40 kilowatts solar project.

The Feed-in Tariff program’s domestic content requirements ensure that a key portion of the technology used for renewable energy generation comes from Ontario. Developers must meet a certain percentage of made-in Ontario goods and labour at the time the project reach commercial operation. For solar photovoltaic projects larger than 10 kilowatts, the requirement is 50 per cent today, which will increase to 60 per cent on Jan. 1, 2011.

“The Ontario Power Authority is very excited about this announcement. Over the last year, we consulted, developed and launched the program. These first FIT contracts really bring the program to life and highlight its success,” said Colin Andersen, CEO of the Ontario Power Authority.

The Ontario Power Authority began accepting FIT applications on Oct. 1, 2009 and received 956 eligible applications for the first round of FIT contracts, including the 510 projects announced recently. Due to their size (up to 500 kilowatts), these projects can be connected to Ontario’s electricity grid without detailed impact assessments necessary for larger projects.

The FIT program, one of the cornerstones of Ontario’s Green Energy Act, provides stable, guaranteed pricing to renewable energy producers. It supports the province’s commitment to eliminate dirty coal-fired generation by the end of 2014 — the single largest climate change initiative in Canada. FIT and other initiatives under the Green Energy Act will support the creation of 50,000 “green collar” jobs.

The OPA is responsible for ensuring a reliable, sustainable supply of electricity for Ontario. Its four key areas of focus are: planning the power system for the long term, leading and co-ordinating conservation initiatives across the province, ensuring development of needed generation resources, and supporting the continued evolution of the electricity sector.

The Electric 2010 Ford Transit Connect

Azure Dynamics Corporation announced AT&T has agreed to purchase two of the first Ford Transit Connect Electric vans, the latest addition to AT&T’s growing fleet of alternative-fuel vehicles.

The Ford Transit Connect Electric — the all-electric version of the 2010 Ford Transit Connect, the North American Truck of the Year — will be powered by Azure Dynamics’ patented Force Drive(TM) electric drivetrain with an advanced lithium-ion battery from Johnson Controls-Saft. The vehicle, which goes on sale later this year, has a range of up to 80 miles on a single charge and will be rechargeable using either 240-volt or standard 120-volt outlets. It has a top speed of 75 miles per hour.

“Cleaner, alternative-fuel vehicles are the future of our corporate fleet, and the Transit Connect Electric represents a real breakthrough and will be a strong addition to our range of alternative-fuel vehicles,” said Jerome Webber, vice president of fleet operations at AT&T. “It’s exactly the kind of vehicle we envisioned when we mapped our long-term vision to invest up to $565 million to deploy more than 15,000 alternative-fuel vehicles through 2018.” AT&T currently operates more than 77,000 vehicles in its corporate fleet, including 15 gasoline-powered Ford Transit Connect vehicles AT&T began piloting in 2009.

Scott T. Harrison, CEO of Azure Dynamics, said Transit Connect Electric project is in line with his company’s mission.

“Our business is built on great technology, committed partners and customers who want to improve efficiency while reducing their environmental footprint,” Harrison said. “The Transit Connect Electric brings all of those elements together in a single package and is exactly on target with our goal at Azure of ‘driving a world of difference.’”

According to Harrison, commercial vehicles are ideal candidates for electrification due to typical duty cycle characteristics like predictable drive routes and a return to a central location each night for recharging. The zero tailpipe emission Ford Transit Connect Electric also will help protect air quality in the urban environments where it operates.

By combining car-like driving dynamics with truck-like cargo capacity, Ford Transit Connect Electric is well-suited to the demands placed on urban delivery vehicles for small businesses and larger, corporate fleets.

The Transit Connect Electric is expected to offer lower cost of operation because recharging with electricity is generally less expensive than refueling with gasoline. Additionally, customers will benefit from lower maintenance costs as the electric drive train has far fewer moving parts to maintain.

“Ford Transit Connect was first introduced in the U.S. last year as a new fuel efficient alternative to larger commercial vehicles. Adding the electric option addresses a growing demand from our customers for sustainable vehicles for their fleets,” said Gerry Koss, Ford fleet marketing manager. “This Transit Connect Electric represents the first in a family of electrified vehicles, including new hybrids, plug-in hybrids and all battery electric vehicles, which Ford will deliver over the next three years.”

AT&T plans to take delivery of the Transit Connect Electric in late 2010.

Canada-based Naya Spring Water announced today it is the first bottled spring water company in the world to use 100 percent recycled plastic in its bottles. Recycled plastic, or rPET, is made from plastic that was previously used as packaging, then recycled and processed to create new bottles.

Less Waste

After seven years of R&D, Naya’s 100 percent rPET (recycled polyethylene terephthalate) bottles are engineered to utilize plastic waste, which otherwise could end up in landfills. The rPET plastic used in Naya’s new bottle is FDA approved and meets the same rigorous safety standards as virgin plastic bottles. Naya’s pure spring water will be available in the new bottles in the New York City area beginning this month and the rest of North America in early 2010.

“We’re proud to be the first major spring water brand to introduce 100 percent recycled plastic bottles, which is a win for the environment as well as for consumers who enjoy bottled water and want to reduce their impact,” said Daniel Cotte, president of Naya Waters, Inc. “This innovation is another demonstration of our commitment to put the environment at the heart of Naya’s company strategy.”

Less Carbon

Having led the movement to 25 percent and 50 percent rPET last year and this, Naya is also the first Canadian company to have had the carbon footprint (full product lifecycle) of some of its products certified by the Carbon Trust, an independent leader in measuring companies’ carbon footprints. While turning a used plastic bottle into a clean, reusable bottle requires energy and emits carbon, using 100 percent rPET versus virgin plastic significantly reduces both. Specifically, Naya reduces the full lifecycle carbon footprint of its 1.5 liter bottle by 30 percent when using 100 percent rPET versus the same bottle made with virgin plastic, as certified by the Carbon Trust.

“In our work with Naya, we have been impressed by their commitment to fighting climate change. The 100 percent rPET bottle represents a significant reduction in carbon over virgin plastic and we applaud this important step,” said Euan Murray, General Manager, Carbon Footprinting at the Carbon Trust.

Naya’s commitment to innovation allows the company to set a new standard for the industry. The company estimates that if just 10 percent of the US beverage industry adopted 100 percent rPET for its plastic bottles, the reduced use of virgin plastic would save 715,000 barrels of oil per year.

Naya’s Sustainability Commitment

The launch of Naya’s 100 percent rPET bottle further demonstrates the company’s leadership to move the bottled water industry to be more sustainable as a whole. In addition to reducing the impact of bottle packaging, the company has focused its efforts in three other key areas: water quality and conservation of natural resources, minimizing operational impact and recycling.

Through its relationship with 1% for the Planet, Naya gives 1 percent of total revenues to environmental programs and created the NAYA Waterways fund with the ‘Fondation de la Faune du Quebec,’ a nonprofit organization committed to wildlife conservation. The NAYA Fund is currently helping to revitalize six rivers and streams in Quebec.

Operationally, Naya currently recycles 96 percent of waste from its plant, including paper, cardboard and plastic. To encourage broad recycling adoption, Naya supports education programs, including a project in partnership with waste management experts Consortium Echo-logique that introduces pilot programs to collect recyclable waste in pedestrian streets. Naya is also a founding member of ‘Table pour la recuperation hors foyer’ (TRHF), a Canadian non-profit whose mission is to develop and implement large-scale recycling programs in out of home channels.

About Naya Natural Spring Water

Naya is a Canadian Natural Spring Water whose philosophy is to offer natural spring water of exceptional quality while minimizing its environmental footprint. For more information please visit www.naya.com.

Sustainable Life Media announces the first Sustainable Brands Boot Camp, a 13 part online course in sustainable innovation. The course is designed to teach companies to build business value and brand equity by innovating for sustainability, and give students additional resume qualifications and the tools to enact change from within their company.

Developed by the producers of the Sustainable Brands Conference, Boot Camp participants learn from some of the world’s top sustainable business thought leaders, each a leading sustainable business expert in his/her specialty. These long-time sustainability practitioners have consulted with top global brands, including Coke, Pepsi, Walmart, UPS, HP and Kraft, among many others.

Designed for executives and managers seeking to understand how to identify and respond to today’s market demands around improving the environmental and social impact of business, the course follows Sustainable Life Media’s 4-step prescription for building the better brands of the future: “Observe, Re-Design, Measure and Communicate.”

Sessions are designed to fit a lunch hour and are also available on demand. New sessions are added weekly which students may join live or as it fits their schedule. With a commitment of 13-20 hours, students will gain a solid grounding in the core disciplines needed for moving successfully in to the new age of sustainable business. Topics include: market drivers, new business opportunities, business model and product innovation strategies, supply chain and metrics best practices, and designing communications that work.

The first three sessions are available on-demand. The 4th Boot Camp session will be recorded live during the course’s regular weekly time slot on Friday, December 11th( )at 1 PM EST. This week, Carol Holding and Dr. Lucille Pilling will detail their 6 Organizational Models for Integrating CSR with Brands.

An excerpt of Will Sarni’s expansive Introduction to Opportunities in Sustainable Innovation (Week 2) and his more detailed look at some specific responses to the growing problems of water, energy and climate change is available for complimentary review at: http://www.sustainablelifemedia.com/events/online/sbbootcamp/schedule/willsarni

A Toyota facility keeps a landscape beautiful as a zero landfill contributor - Flickr shchukin

EPA Regional Administrator Shawn M. Garvin joined Secretary Randy Huffman of the West Virginia Department of Environmental Protection in recognizing Toyota Motor Manufacturing West Virginia, Inc. at its Buffalo, W. Va., facility, and Dow West Virginia at its South Charleston facilities.

The Sustainability Partnership is an innovative program developed by EPA’s mid-Atlantic region to create a one-stop shopping approach for organizations that use large quantities of energy, water, and natural resources and want to “go green.” Instead of dealing with each of EPA’s voluntary programs individually, EPA staff will work out a comprehensive ‘green’ plan for organizations that often saves money and makes good business sense. The overall goal of the SPP is to minimize the use of energy, resources and waste generation in the mid-Atlantic states.

“Today, both companies take a tremendous step forward in providing a more sustainable future for the people of West Virginia,” said Garvin. “EPA is making a concerted effort to partner with states and businesses to improve environmental performance and make larger strides in sustaining our communities. And voluntary efforts that are initiated and tracked through programs like our Sustainability Partnership are a proven way to go.”

”It’s a great day for Toyota and Dow as they have come a long way in the area of corporate sustainability,” said Secretary Huffman. “Toyota and Dow have learned to recognize the complementary relationships among the environment, economy and communities in West Virginia, and further realize that this Sustainability Partnership goes far beyond stakeholder involvement – it requires working within their facilities and with communities to tackle specific environmental issues.”

In 2000 Toyota’s Buffalo, W.Va. facility began implementing an environmental management system (EMS). Three years later, it had become, and remains, a zero landfill contributor — reusing or recycling materials that otherwise would have been sent to landfills. By implementing the EMS and setting long-term goals, Toyota is already addressing ways to reduce waste, water usage, greenhouse gas emissions, hazardous materials usage and wastewater discharge.

At Dow West Virginia Operation’s South Charleston facility, the company has been working to reduce energy, water use, waste generation, and has increased the facility’s land and habitat conservation.

During a three-year demolition project, Dow saved 49,939 tons of concrete/masonry from going to the landfill by reusing the material. During 2007-2008, Dow recovered 3,726 tons of ferrous and non-ferrous metals for reuse; developed a 10-acre wildlife habitat certified by Wildlife Habitat Council; worked with South Charleston Middle School students to install birdhouses, plant native wildflowers and prairie grasses. Dow continues to work on the implementation of a wildlife management plan and is exploring collaborative opportunities with EPA and WVDEP to help schools remove hazardous materials and waste.

Additionally, Dow West Virginia’s South Charleston facility is implementing the American Chemistry Council’s Responsible Care Program, which requires CEO-level commitments to measure and publicly report environmental performance and to obtain independent certification that the company’s environmental management plan functions according to professional standards.

Recycle and reuse old office furniture - Flickr ChicagoGeek

Starting a business from home can be extremely advantageous. In addition to controlling expenses, the allowed IRS deductions can go a long way to reducing your tax liabilities. The eligibility rules are pretty clear and easy to follow, but it is important to understand the limitations on writing off the business use of your home. And, in order to receive the maximum benefit of the tax laws, it is critical to establish a system for managing the paperwork to keep track of deductible expenses.

The IRS considers the term home to mean your house, apartment, condo, trailer home, or boat, as well as any structure also on the property, such as a garage (attached or unattached), shed, greenhouse, studio, and the like. Any space you use in any structure on your property counts, as long as the way you use it meets the IRS qualifications.

The rules state that “business use” of an area of your home must be exclusive, regular, and for your business. Your business space must be your principle place of business, a place where you meet with clients in the normal course of business, or a separate, unattached structure used in connection with your business to qualify.

The exclusive use test requires that you use the space only for your business. That is, if you do most of your work in the living room, but also use that room as personal space, it does not pass the exclusivity test. While the space does not have to be divided by a wall or other permanent partition, it must be used only for business purposes. Set up a dedicated space for your office, even if you don’t have a completely separate room available.

There are some scammer “tax programs” that encourage you to write off the business use of your kitchen (you have to eat at work, right?) and bathroom (you can’t hold it all day). Don’t do it. These areas do not meet the exclusive use test, and claiming a high percentage of your home’s space as business use will raise red flags with the IRS. The exceptions to the exclusive use test are if you use space for inventory storage or your business is a day-care center.

The regular use test requires that you use the qualifying area of your home for business on a continuing basis. If you only use your home office occasionally, it can’t be deducted, even if the space passes the exclusive use test. Pretty basic. Just having an office space at home doesn’t mean you can deduct it – it must be used on a regular basis for your business.

To qualify as your principle place of business, your home office does not have to be your only place of business. As long as the space is used exclusively and regularly for management (or administrative) activities and you do not conduct these activities at the other location, your space is deductible. If you have a bookkeeper that works somewhere else, that is OK. As long as your home office is your primary location for completing specific work tasks, you should qualify. Any separate structure (garage, shed) that you use for business purposes does not have to be your principle place of business to qualify, but does have to pass the exclusive and regular use tests.

Once you have clarified which work spaces qualify, you need to determine the percentage of your home that is can be deducted. That is, divide the area used for your business by the total area of your home. If your office is in a 10×12 room, the total office space is 120 sq ft. In a 1200 sq ft house, the business use percentage would be 10%. Thus, 10% of all relevant expenses can be deducted from your personal taxes. IRS Form 8829 provides the formula for calculating the business percentage of your home. This percentage is then used to determine the eligible deduction amount allowed for certain business use of the home expenses.

The expenses you may deduct fall into three categories: direct, indirect, and unrelated expenses. Direct expenses, for the most part, are not subject to deduction limits. These are expenses such as repairs or renovations related only to the business areas of your home. Also, any dedicated phone line or internet access that is only for the business can be deducted in full.

Indirect expenses are those that cover running the entire home and are generally deductible up to the business use percentage you calculated previously. Utilities, insurance, general repairs, and the like are all subject to the percentage limit. Thus, if you calculated that 10% of your home qualifies for business use, then 10% of all indirect expenses can be deducted on your taxes. Most of these expenses are not deductible at all unless you use your home for business, so being able to deduct even a percentage can provide real tax advantages. Unnecessary expenses are those related only to parts of your home not used for business. They cannot be deducted. Unnecessary expenses are things like lawn care, repairs to another part of the home, and the like.

The deductions you can take for the business use of your home are also limited by the gross income of your business. You first reduce your gross income by regular business expenses and certain other expenses, then can claim business use deductions up to the amount of the remainder. Basically, you cannot use business use of the home deductions to create an overall loss to the business, only to the point of breaking even.

Be careful not to double-dip on allowable deductions such as mortgage interest and real estate taxes. These expenses must be divided on your personal taxes according to the percentage for business and the percentage for personal. The IRS publications for deducting the business use of your home are very straightforward. As long as you have good records for all the allowable expenses, filling out your 1040 is not particularly complicated.

Before you launch your business from home, be sure you have established an efficient system for tracking expenses for tax purposes. An effective filing system is a good start – you should be able to find and retrieve any filed document within a few minutes. Be sure you keep all relevant utility statements, repair bills, and real estate tax statements for the year. Staying organized throughout the year will save you untold hours come tax time.

K. MacKillop, a serial entrepreneur, is founder of LaunchX and blogs about starting a business. The LaunchX System for Business Startup is designed to give you everything you need to start a business, whether you start from a home office or not. Visit LaunchX.com for a free Business Readiness Assessment.

Source: www.isnare.com

“RONA is well aware of the role we can play in preserving nature and protecting the longevity of our natural resources, and we believe we can help Canadian consumers adopt responsible consumption habits as well,” said RONA executive vice president of merchandising Normand Dumont. “Selecting wood products is one way RONA can exercise such leadership and demonstrate its commitment to protecting the environment.”

The Boreal Awards

The Boreal Awards are handed out by the Boreal Leadership Council to recognize leadership, innovation, cooperation, diligence and excellence among organizations working to protect the boreal region and advance the balanced vision of the Boreal Forest Conservation Framework, a plan endorsed by all members of the Boreal Leadership Council.

RONA is pleased that its efforts have been recognized by this award and extends its congratulations to the other winners and finalists.

Wood product procurement policy

The Wood Products Procurement Policy meets RONA’s objective to provide certified forest products to its customers. In implementing this new policy, RONA has made a commitment to doing business with suppliers that share its vision in terms of sustainability and have adopted responsible forest management practices.

To develop a unified, global approach, RONA conducted many consultations with stakeholders, including the forest industry, environmental organizations and scientific experts. Following these consultations and RONA’s own evaluation, the company adopted an inclusive approach which recognizes all three certifications – the Forest Products marking Program (CSA), the (SFI) and the Forest Stewardship Council (FSC). RONA has also decided to give preference to the FSC certification as this standard better meets RONA’s requirements in terms of relationships with indigenous communities and the conservation of biodiversity.

RONA’s policy also states that it will conduct business with suppliers who do not contribute to deforestation and proactively address issues related to their activities. RONA also values suppliers who integrate the Life Cycle Assessment approach to develop and make products.

The consultations conducted by RONA have allowed the company to set measurable objectives, including the following:

- To source 100% of commodity lumber (spruce, pine, fir) for sale at RONA’s corporate and franchise stores from certified forests by the end of 2010

- To source 100% of commodity plywood panel products for sale at RONA’s corporate and franchise stores from certified forests by the end of 2009

- To ensure that 25% of commodity lumber for sale at RONA’s corporate and franchise stores is FSC certified by the end of 2012

RONA will implement a rigorous assessment program and report on an annual basis on the progress it has made in reaching the specific targets set in the Wood Products Procurement Policy.

ABOUT RONA

RONA Inc. is the largest Canadian distributor and retailer of hardware, renovation and gardening products. RONA operates a network of nearly 700 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 15 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales. For more information, please visit www.rona.ca.

San Francisco Climate Change Center

The agreement in principal was signed at Cisco’s Globalisation Centre East, an environmentally sustainable campus in Bangalore that serves as a showcase for urban development solutions. The Cisco Smart+Connected Communities initiative is designed to provide cities and communities with smart and connected solutions for utilities, safety and security, connected real estate, transportation, health care, learning, sports venues, and government services.

The City and County of San Francisco is undertaking the development of a number of major sustainable urban development projects, at locations including the Hunters Point Shipyard and Treasure Island (HPS Connected Communities) and in connection with the new Transbay Transit Center. The city envisions revitalizing these underutilized properties into some of the most innovative sustainable urban development projects in North America.

Together, the projects at Hunters Point, Candlestick Point and Treasure Island are expected to create new residential units for 60,000 occupants, generate as many as 30,000 construction jobs and 10,000 permanent employment opportunities. The new UNGC Center on the Hunters Point Shipyard will include offices for the UNGC, a major conference center and incubator space for emerging technology companies with a particular focus on “green tech” businesses.

Facts/Highlights

• Gavin Newsom, mayor, City and County of San Francisco, met with Cisco executives in Bangalore to tour Cisco’s Smart+Connected campus and view innovative solutions designed to reduce the dependency on fossil fuels, lower carbon emissions, reduce operating costs and provide a more productive working environment.
• Mayor Newsom and Cisco’s Chief Globalisation Officer and EVP, Cisco Services, Wim Elfrink concluded the tour by signing an agreement in principle designed to further discussions on potential green and cost-efficient solutions for a Sustainable 21st Century San Francisco, as part of the UNGC Center.
• The agreement in principle between Cisco and the city of San Francisco outlines the possibility for collaboration on the United Nations Global Compact Center in the areas of exploring 21st century technology’s impact on quality of life; studying green and technology innovation toward urban development; and understanding the evolutionary steps needed to embark on these transitions.
• The Cisco Smart+Connected Communities initiative helps transform physical communities into connected communities that can help realize sustainable economic growth and GDP, enable environmental sustainability through resource management and operational efficiencies, and enhance constituent quality of life.
• Cisco’s key focus areas for the San Francisco initiatives will be the environment, health care, education, utilities, public safety and security, and urban services, all designed to enhance the “work and play” quality of life for residents, workforce and visitors.
• The Urban EcoMap initiative is an extension of the Connected Urban Development engagement between Cisco and the City and County of San Francisco, resulting in projects such as the Urban EcoMap and the Connected Bus.
• The Urban EcoMap collaboration, a central feature of Cisco’s Connected Urban Development program, provides local communities with information on their progress toward meeting greenhouse gas (GHG) reduction goals and with access to the most useful, locally available tools and resources for reducing their carbon footprint.
• San Francisco was the first city to launch the global Urban EcoMap on Earth Day 2009. The Urban EcoMap represents a first step toward the vision for a Sustainable 21st Century San Francisco. Urban EcoMap amasses information on a neighborhood level, organized by ZIP codes, in order to help citizens discover their neighborhoods and take climate actions.
• The Connected Urban Development program was born from Cisco’s commitment to the Clinton Global Initiative to reduce carbon emissions and has been jointly promoted by Cisco and the city since 2006. Further cities are expanding the footprint of the global Urban EcoMap, including the City of Amsterdam which today announced the rollout of the program.

Additional Information about the Hunters Point Shipyard Development Plans:

• Exceptional urban planning and design, and substantially improved transportation infrastructures.
• High-quality park and recreation facilities that provide local and regional open space attractions, integrated with new development and the surrounding community.
• Model sustainability concepts and best practices of sustainable community development incorporated throughout the design and development process.
• Applied sustainability principles and best practices for the infrastructure plan, including wastewater, storm water, utility and transportation systems, and public open spaces and recreation facilities.
• Green building construction practices, particularly energy-efficient design for new development.
• Opportunities to take advantage of renewable energy sources, such as solar power, to encourage residents and workers to be conscious of resource use within the community.

Supporting Quotes

• Gavin Newsom, mayor, City and County of San Francisco
  “The Hunters Point Shipyard is a prime area for revitalization within San Francisco. We have been waiting for the ideal project to embark on our vision of a ‘Sustainable 21st Century San Francisco’ that showed promise in generating strong economic and employment opportunities for citizens and the surrounding areas while also respecting the use of the land and its resources. In developing this vision with Cisco for the Hunters Point Shipyard, I see this as being easily the most innovative sustainable urban development project in North America. The city of San Francisco is thrilled to be the home to such a progressive initiative and having Cisco as a partner in the UNGC Center will help advance that important project.”
• Wim Elfrink, chief globalisation officer and executive vice president, Cisco Services
  “Cisco envisages a future where successful communities and cities will run on networked information to help drive broad economic, environmental and social sustainability. We are honored to collaborate with Mayor Newsom and the city of San Francisco to achieve a ‘Sustainable 21st Century San Francisco’. This is a city at the heart of the Silicon Valley IT revolution, one that has been long committed to sustainability, and with leaders committed to transformation; all the right ingredients for building a sustainable city of the future.”

Supporting Resources:

• Cisco Smart+Connected Communities
  http://www.cisco.com/go/smartconnectedcommunities
• For more information on Urban EcoMap
  http://www.urbanecomap.org
• Cisco Globalisation News
  http://newsroom.cisco.com/globalisation
• Cisco and City of Amsterdam Expand Urban EcoMap Program Globally
  http://newsroom.cisco.com/dlls/2009/prod_120109c.html
• Connected Urban Development
  http://connectedurbandevelopment.org

About Cisco Systems
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