The Enterprise - Utah's Business Journal by Vaughn Taylor

Focus W UTAH

a sa t c h Fr o n t

June 2011

A Publication of The Enterprise - Utah’s Business Journal

Utah’s Green Business Environment INSIDE Fifteen green business practices that will save $2,697 per employee. Page 2 Utah County start-up finding wealth by turning food waste into compost. Page 4 More than 40 Salt Lake City businesses sign up with TapIt to offer water bottle refilling at no cost. Page 5 Utah firm claims to have found holy grail of transmission technology. Page 6 U of U lauded by EPA for purchasing green electricity. Page 6 The truth about rainwater harvesting: now legal, sort of. Page 7 Protect your green innovation. Page 8 Utah firm’s management technology helps commercial fleets go green. Page 11 Lake Powell is one of the cleanest lakes in the nation thanks to volunteers, recycling-friendly facilities. Page 11 Historic Park City Alliance wraps up second Mobile Recycling Center season. Page 11

Utah Focus, June 2011

Fifteen green business practices that will save $2,697 per employee

If you’re a business executive in today’s market, you can’t have escaped the hard truths of the current economic recession. The downturn has created a culture of deep cost cutting that has organizations slashing budgets and cutting costs wherever feasible. In fact, a survey by global management consulting firm Booz & Co. showed that over 40 percent of companies are focused exclusively on cost reduction as a survival method. However, three years of traditional cost reduction and layoffs have exhausted businesses in all industries. And, it’s not clear that the strategy is feasible or sustainable even in the short run: 86 percent of executives surveyed say they have run through their cost-cutting toolbox and are running out of options. Perhaps even more disturbing, 72 percent acknowledge that the cost-cutting culture is hurting morale. What’s surprising then, is that only 30 percent of executives surveyed say that have tried other, non-traditional responses to the economic situation. What if you could identify business practices that would result in significant savings — boosting your bottom line and employee morale in the process? The Green Business Bureau has identified 15 green business measures that will result in an annual savings of nearly $3,000 per employee, with little or no impact on the quality of work performance or customer service. In order to illustrate the savings that companies can realize by implementing the green business practices described here, the Green Business Bureau created a fictional firm by the name of “Green Gizmos, Inc.” Based on the average U.S. company size, Green Gizmos employs 10 people in an office suite of 1,000 square feet. The office is open an average of 10 hours a day, 240 days of the year. 1. Energy Audit. Scheduling a professional, commercial energy audit can uncover myriad opportunities for real cost savings measures for your business. Auditors perform on-site walkthroughs, examining everything from office equipment to processes and suppliers, surveying consumption and finding potential savings. Commercial energy audits are often available through your energy provider, or can be performed by private contractors. The average savings shown from a commercial energy audit is approximately 30 percent of the $568 in energy expended by the average

US employee each year, or $170 per employee. Savings per employee: $170. 2. Tweak the Heat: The average U.S. employee accounts for about $278 in heating, cooling and ventilation costs each year. For each degree you raise the cooling thermostat setting, up to 5 percent of cooling costs can be saved. Setting the thermostat at 74 instead of 68 degrees will save 30 percent on cooling costs — or $41 per employee for the warmer half of the year. For each degree you reduce the heating thermostat setting, up to 5 percent of hearing costs can be saved. Setting the thermostat at 68 instead of 72 degrees will save 20 percent of heating costs, or $25 per employee for the cooler half of the year. Savings per employee: $66. 3. Program Your HVAC. HVAC comprises the largest operating expense for an office. In fact, it’s estimated that 40 percent of energy usage in a commercial space is dedicated to HVAC. If utilities are included as part of your lease, you can rest assured that your landlord is passing this hefty expense on to you. The average U.S. employee accounts for an annual HVAC expense of $278. By installing a programmable thermostat, you can expect to save 10 percent of your HVAC costs per year, resulting in savings of $27 per employee. Savings per employee: $27. 4. Rest Your Computer. A recent study by 1E and the Alliance to Save Energy showed that 50 percent of American workers leave their computer on at night, and many incorrectly believe that their screensavers are designed to save energy during their down time. You can set computers to enter system standby or hibernate after 30 minutes of inactivity, and set monitors to enter sleep mode after five to 20 minutes of inactivity, to cut energy usage by 70 percent and save up to $178 per computer per year. Savings per employee: $178. 5. Turn it Off. Even when turned off, many pieces of office equipment continue to draw power. This “phantom draw” can account for 40 percent of the electricity used by these devices, and 10 percent of your office’s overall electricity bill. This waste can be avoided by unplugging the appliance or by installing and using a power strip to cut all power to the appliance — saving up to 40 percent of the U.S. average $113 in electricity used by each employee for office equipment and computers.

Savings per employee: $45. 6. See the Light. Lighting accounts for 13 percent of energy expenditures in commercial buildings. The introduction of compact fluorescent light bulbs (CFLs), which use 75 percent less energy and last 10 times longer than incandescent bulbs, gives businesses an opportunity to save significant amounts of money with very little effort. In fact, replacing 50, 60-watt incandescent light bulbs with energy-efficient 15-watt compact fluorescent bulbs will result in an average annual savings of $1,250 — or for Green Gizmos’ 10-person office, $125 per employee. Savings per employee: $125. 7. Tap into a Good Thing. The average cost of a pint of bottled water in the U.S. is $1.23, and with eight pints per gallons that means each gallon costs up to $9.85. The average U.S. employee drinks about a pint and-a-half of water a day (45 gallons in a year), or the equivalent of $443 in bottled water. Installing a water cooler can save your office money. Typical delivery service for five-gallon jugs of water cost on average $3.81 per jug. Which means each employee drinks the equivalent of $34 of water a year — for a savings of $409 per employee. Savings per employee: $408. 8. Switch to Ceramic. Sip that tap water sustainably. The average American office workers uses approximately 500 disposable cups every year at an average cost of $75 per 500 cups. Investing in reusable coffee mugs or tumblers results in an annual savings of $75 per employee. Savings per employee: $75. 9. Slow the Flow. The average U.S. employee consumers about $34 in water over the course of a year. Installing flow rate control (aerators) on faucets can reduce water waste by up by 40 percent — or $13 per employee. Savings per employee: $13. 10. Take Time Out. By reducing the amount of paper in an office, you reduce the administrative time required to print, manage, store, dispose of and recycle it. At Green Gizmos, the Green Business Bureau assumed that four hours a day are consumed by these tasks at an administrative cost of $100 per day. by cutting paper usage in half, that requirement is also halved, resulting in annual savings of $1,200 per employee.

Savings per employee: $1,200. 11. Reduce Your Use. Studies show that a well-written and enforced paper reduction policy can cut paper consumption by up to 50 percent, or $166 per employee. Savings per employee: $166. 12. Holey Savings! Use EcoFont for in-office documents. EcoFont is a printing process that inserts tiny holes in the letters of a given font, requiring less ink to print without affecting legibility. It can reduce ink or toner use by up to 25 percent. Using an average recycled cartridge price of $175, and assuming five cartridge changes a year, that results in an overall savings of $128, or $21 per employee. (Download EcoFont free at www.ecofont.eu/). Savings per employee: $21. 13. A Friendly Reminder. Insert a “please consider the environment” footer in your e-mails. The average American workers uses 10,000 sheets of paper each year at an average cost of $330 per employee per year. If this subtle reminder could save two pieces of paper each day, that would result in a 5 percent savings, or $16 per employee per year. Savings per employee: $16. 14. Scratch That. Reusing scratch paper can have a significant impact on paper expense — up to 35 percent a year. For the average American worker, that would result in savings of $116. Savings per employee: $116. 15. Clean Out your Drawers. With technologies changing on what seems like a weekly basis, businesses everywhere have a stash of outdated cell phones, pagers and other electronic devices. Because these items contain toxic metals like arsenic, beryllium, cadmium, copper and nickel, they are considered hazardous waste and can’t be disposed of in landfills. However, a growing industry is offering recycling and disposal services for unwanted electronics — and they pay you. Companies like CorporateRenew will take your old cell phones and send you a check in return, with the average office receiving $700. At Green Gizmos, that means a savings of $70 per employee. (Visit www. corporaterenew.com). Savings per employee: $70. TOTAL GREEN SAVINGS PER EMPLOYEE: $2,697.

Utah Focus, June 2011

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Utah Focus, June 2011

Utah County start-up finding wealth by turning food waste into compost By Andrew Haley The Enterprise EcoScraps, a 20-employee green tech startup from Utah County, is turning rotting vegetables into real profits. The company, founded last year by BYU classmates Daniel Blake, Craig Marineau and Brandon Sargent, composts excess waste produce from large-scale food wholesalers like Costco and sells the product both as pure compost and as compost-rich potting soil under the names Harvest Plenty and Clean Earth. Sales are expected to reach $1.5 million by year’s end. EcoScraps collects 20 tons of landfillbound vegetables and fruit per day from more than 70 grocers, wholesalers and Costco stores in Utah and Arizona, producing 35 cubic yards of compost per day at its two facilities in Salt Lake City and Tempe, Ariz. Those total 70 cubic yards, nearly 1,900 cubic feet, of compost material is

packaged and sold by various retailers in Utah, Arizona, Colorado and Oregon. Clean Earth Soils Compost Mix retails for around $6.50 per cubic foot, while Clean Earth Soils Potting Mix, the compost mix with fibrous coco-peat and the waterretentive volcanic material perlite added, retails for a dollar more per cubic foot. The three young entrepreneurs hatched the idea of EcoScraps after Blake witnessed an enormous amount of food being thrown away at a Provo diner in 2009. Aspiring to make money while helping the environment, the trio started operations as a 21st century cottage industry, experimenting with composting in a dorm parking lot and later in a storage shed before expanding into larger premises. Much of the company’s initial capitalization was poured into research and development geared toward understanding and optimizing the chemistry and biology behind the

composting process. Initial experiments in the composting of various materials led to the current product, which aids plant growth as effectively as synthetic fertilizers, the company says. EcoScraps compost is a combination of more than 20 different vegetables and fruits, with optimized levels of nitrogen and other nutrients important to plant growth. BYU faculty aided the trio with the streamlining of the composting process, enabling EcoScraps to produce compost in three weeks rather than the period of several months usually required to compost material in backyard composting bins. EcoScraps opened its Salt Lake City production facility a year ago after signing agreements with various area wholesalers to collect their vegetable and fruit waste and with retailers to sell the finished product. Success in the Salt Lake market

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prompted the trio to expand into Arizona, opening a Tempe facility six months later. According to Sargent, the company’s head of sales, EcoScraps is in the initial phases of expanding into Oregon and Colorado, where EcoScraps’ products are already retailed. Sargent said EcoScraps plans on eventually reaching the national market, using the same formula it has from the beginning: testing product demand in a new market, acquiring waste-hauling contracts with area wholesalers, establishing a 35 cubic yard size production facility, and starting operations. He said the current Salt Lake City and Tempe facilities would be used as templates for the imminent Oregon and Colorado facilities. He said EcoScraps is looking to increase production in the Salt Lake market. “We were able to bootstrap into it, start small, and grow,” Sargent said. In addition to producing nutrient rich soil-conditioner that makes for better plants, composting vegetable matter reduces methane emissions produced by simple decomposition. During the composting process, decaying plant matter is exposed to oxygen, leading to the development of different bacteria than those which break down plant matter in landfills. The limiting and capturing of methane emissions has become a new front in the fight against global warming both because methane is more detrimental than carbon dioxide and because attempts at limiting CO2 emissions have led politicians into direct conflict with powerful energy interests. According to Bloomberg, on June 1, former President Bill Clinton told an assembly of mayors from the world’s largest cities convened for the C40 meeting in Brazil that reducing methane emissions would buy time for politicians to work out solutions to limits on CO2. Clinton advocated tapping landfills for methane, which is essentially natural gas. Environmental and green technology groups are debating the inherent advantages of transforming landfills into de facto natural gas wells versus large-scale composting programs, whether by for-profit enterprises like EcoScraps or government-mandated initiatives like San Francisco’s recently mandated composting program. That debate is part of a larger conversation in environmental and green technology circles that is finding political and economic gain in increased efficiency systems. EcoScraps’ business plan is founded on the inherent wastefulness of U.S. grocers and wholesalers for whom the overstocking of inventory is standard operating procedure. EcoScraps offers to dispose of unsalable produce at rates up to 25 percent lower than traditional landfill-bound waste removal services, essentially subsidizing a cheaper garbage program with a for-profit composting program. “A grocer has to bring in so much it goes bad. We come in and offer significantly cheaper hauling fees,” Sargent said. “For Costco we offer them 25 percent less see ECOSCRAPS next page

Utah Focus, June 2011

ECOSCRAPS

More than 40 Salt Lake City businesses sign up with TapIt to offer water bottle refilling at no cost

than their normal hauling fees. That’s big money when you’re thinking about hauling every single day.” According to the EPA, the United States sent 34 million tons of food waste to landfills in 2009, an amount greater than the nation’s discarded plastic, metal or lawn clippings. That food waste generates 20 percent of the country’s methane emissions, a tremendous contribution to overall greenhouse gas emissions that are destabilizing the global climate. With such an abundance of waste, EcoScraps sees next to no limits on the availability of low-cost raw materials and is likely to grow as much as demand for its end product permits. With increased customer interest in green products, whether organic foods or goods manufactured with recycled materials, EcoScraps is playing a role as purveyor of a conspicuously green commodity it is able to manufacture ‘at almost zero cost. That business model has permitted sales growth to explode in the company’s first year and could lead to rapidly increased sales, permitting the company to benefit from economy of scale. With global attention being turned to ways of combating methane emissions, and agencies like the World Bank announcing plans to subsidize methane-reducing technologies, EcoScraps may be at the forefront of companies tapping into the “goldmine” of the methane capture industry that Clinton spoke of in Brazil.

In an effort to reduce waste in the community, Salt Lake City has partnered with TapIt, the only water bottle refilling network in the nation. More than 40 Salt Lake City food service businesses have signed up to be official TapIt Partners, pledging to offer free tap water to the public. Salt Lake City residents or visitors can use the TapIt iPhone app, mobile website or look for a TapIt sticker on the windows of participating restaurants to find where they can easily fill their personal water bottles — no questions asked. Salt Lake City is situated close to the source of its drinking water. The majority of the city’s water comes from mountain streams and is fully treated before it goes in the pipes to users. The city’s drinking water, consistently one of the top contenders for the nation’s best-tasting tap water title, complies with or exceeds all EPA requirements. TapIt was inspired by the idea that water — a public resource — should be easily accessible. Program partners agree, believing those who want drinking water should not feel forced to buy water in a plastic bottle. Salt Lake City businesses participating in the TapIt program are: • Alchemy Coffee Co., 390 E. 1700 S. • Bruges Waffles and Frites, 336 W. Broadway. • Cafe on First, 39 I St.

from previous page

• Cafe Solstice, 673 E. Simpson Ave. • Cali Natural Foods, 389 W. 1700 S. • Carluccis Bakery, 314 W. 300 S. • Coffee Noir, 1035 E. 200 S. • Cuchina Deli, 1026 E. 2nd Ave. • Dolce Coffee, 2236 S. 1300 E. • Dolcetti Gelato, 900 S. 900 E. • Este Pizzeria, 2021 S. Windsor St. • Gandolfos Deli, 201 S. 1300 E. • Jack Mormon Coffee, 82 E St. • Jitterbug Coffee Hop, 1855 S. 700 E. • Liberty Heights Fresh, 1290 S. 1100 E. • Mazza Middle Eastern Cuisine, 1515 S. 1500 E. • Mestizo Coffeehouse, 641 W. North Temple • Millcreek Coffee Roasters, 657 S. Main St. • Nobrow Coffee, 315 E. 300 S. • Nostalgia Caffe, 248 E. 100 S. • On Time Mexican Restaurant, 1899 S. Redwood Road. • Pago, 878 S. 900 E. • Red Moose Coffee Co., 1693 S. 900 E. • Rico Locals Food Cooperative, 797 S. 500 E. • Sage, 473 E. 300 S. • Salt Lake Roasting Co., 320 E. 400 S. • Settebello Pizzeria Napoletana, 260 S. 200 W.

• Spoon Me, 532 E. 400 S. • Squatters Pub Brewery, 147 W. 300 S. • Sugar House Coffee, 1045 E. 2100 S. • The Bicycle Transit Center, Canyon Sports, 250 S. 600 W. • The Park Cafe, 604 E. 1300 S. • The Pie Pizzeria, 1320 E. 200 S. • Z Pizzeria, 1588 E. Stratford Ave. • The Pie Pizzeria Two, 273 S. 1300 E. • The Soup Kitchen, 2012 S. 1100 E. • Toasters (Convention Center), 151 W. 200 S. • Toasters (300 South), 30 E. 300 S. • Tony Caputos Market and Deli, 314 W. 300 S. • Vertical Diner, 2280 S. West Temple • Visit Salt Lake Info Center, 90 S. West Temple

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Utah Focus, June 2011

Utah firm claims to have found holy grail of transmission technology By Andrew Haley The Enterprise VMT Technologies, a Utah County technology development and licensing company, believes it has found the holy grail of transmission technology. The company says it has designed a working universal transmission, a technological breakthrough sought after by global car makers, transmission manufacturers and military engineers for decades. If their design works, VMT could revolutionize the wind turbine and heavy vehicle industry. “What we’ve created is a new platform technology we believe, and I say believe because we haven’t built a working model yet, will improve the efficiency of wind turbines and allow large trucks to operate more efficiently,” said VMT sales director Mike Agrelius. A traditional transmission, like the gears on a bike, allows an operator to switch between a limited-number of teethed metal gears to adjust the ratio of torque being transmitted to the wheels. A tradi-

tional transmission has inherent inefficiencies engineered into it because of the limited number of fixed speeds and because no energy is transmitted during a change in gears, causing brief losses of momentum. Engineers as far back as Leonardo DaVinci began working on a more efficient continuously variable transmission (CVT), usually a system of pulleys that allow a vehicle or machine to alternate between an infinite number of speeds by using variable levels of friction instead of discrete metal teeth to control gear speed. CVTs have been used in farm equipment, tanks, aircraft and race cars for decades. But because changes in torque are translated through a CVT by friction, torque spikes cause significant wear and tear. According to VMT, its universal transmission combines the fixed metal-to-metal toothed aspect of a traditional transmission with the infinite variability of a CVT, allowing for the energy efficiency of a CVT without the wear and tear. “We’ve taken a CVT transmission and

applied it into a high torque application, which had never been done,” Agrelius said. “We’re turning finite gears into infinite gears. Most people look at that and say ‘that can’t be done.’ It looks like it’s impossible.” If its universal transmission proves workable, VMT believes it could transform wind power technology. Current wind turbines are designed for a 20-year life span, but gearboxes, operating on CVT technology, wear out after as few as six years, according to Brendon Bosworth of New West, an online magazine. Because wind gusts generate huge torque spikes, a universal transmission would increase the efficiency of energy harnessed by the windmill while decreasing the wear on the turbine’s gearbox. In a May 12 press release, VMT claimed that if applied, its universal transmission could increase wind turbine efficiency by 5 to 10 percent. In the same press release, VMT claimed that even a 2 percent increase in wind turbine efficiency

would be a game changer for the renewable energy industry. Beyond wind energy, VMT says its universal transmission would allow trucks and other heavy vehicles like tanks and tractors to operate with both high torque and fuel economy. Agrelius said the company has shown the designs for its universal transmission to representatives from most of the world’s automotive companies and transmissions manufacturers. So far, none of those companies has agreed to a partnership, Agrelius said. As a technology development and licensing company, VMT was not planning on pursuing the practical development of its universal transmission but was waiting for outside investment from other companies and entities to permit the manufacture and deployment of its technology. “Our plan is to get with a major manufacturer and work with them,” Agrelius said. Gary Lee, an engineer at the 12-employee Provo start-up, invented the universal transmission. According to its website, VMT holds the patent to the technology.

U of U lauded by EPA for purchasing green electricity

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The University of Utah is ranked third in the nation on the Environmental Protection Agency’s list of college and university “green power partners.” The University of Pennsylvania and Carnegie Mellon are the only two schools ahead of the U of U in the rankings. The U of U is being recognized for its voluntary purchase of 85 million kilowatthours of green electricity (green-e) certified renewable energy and solar panel installations on campus. The EPA estimates that the University of Utah’s green power purchase is equivalent to 31 percent of the school’s total electricity consumption. EPA’s list highlights institutions of higher education within EPA’s Green Power Partnership that have made purchases that help reduce the environmental impacts of electricity use and support the development of new renewable generation capacity nationwide. Schools can meet EPA purchase requirements using any combination of three different product options: renewable energy certificates, onsite generation and utility green power products. Green-e certified RECs are defined by the EPA partnership as electricity generated from solar, wind, geothermal, biomass and low-impact hydro resources. These renewable energy sources are cleaner than conventional sources of electricity that produce air pollution and carbon dioxide, a greenhouse gas linked to global climate change. REC purchases support the expansion and development of new renewable energy capacity. The U’s green-e purchases were motivated by a student campaign that led to the creation of a small student fee to pay for clean energy purchases on behalf of the Associated Students of the University of Utah.

Utah Focus, June 2011

The truth about rainwater harvesting: now legal, sort of By Jonathan Clyde In general, the legal system in the United States has been slow to adapt to changing attitudes toward the environment and how resources are used. In fact, many western states, including Utah, have laws that appear to be at odds with emerging conservation and environmental values. On the federal level, regulations in the form of the Clean Air Act, the Clean Water Act, the National Environmental Policy Act and the Comprehensive Environmental Response, Compensation and Liability Act have been enacted to combat environmental harms and prevent further degradation. However, these acts are not designed to encourage conservation or environmental values. Rather, they serve to punish those that fail to meet minimum standards. Laws that truly enable and encourage conservation values are few and far between. A telling case study of how laws encouraging sustainable use can come to be enacted played out in media during 2008. That summer, Mark Miller Toyota’s new building was scheduled to come online and announcements were made regarding its grand opening. The new facility was a shining example of modern green construction and it was going to be the first dealership in Utah to receive a LEED (Leadership in Energy and Environmental Design) Gold Rating and only the third such dealership in the nation. Its design took advantage of natural light, was energy efficient and was designed to then collect the rainwater that fell on the property for reuse in its car-washing bays. There was only one small problem: under Utah law, the collection of rainwater was illegal without a water right. Utah, like most western states, relies upon a system of water allocation that is predicated upon the date a water right was first diverted and placed to beneficial use. Many people are no doubt familiar with the phrase “first-in-time, first-in-right,” which governs how Utah’s stressed water supplies are allocated among competing users. The system protects those water users who were the first to divert and place the water to beneficial use regardless of the type of use. It is the protection of early appropriators that gave rise to the name “prior appropriation doctrine.” This doctrine finds its roots in the westward expansionist era of United States history. As miners and homesteaders sought to develop the West they commonly found that water rarely naturally occurred in the places where it was needed. Consequently, early settlers, notably the Mormon pioneers, spent extensive amounts of time and money creating complex diversion and conveyance structures to transport the water to the locations where it was needed. The prior appropriation doctrine evolved as a means to protect that investment and to prevent junior, or later, appropriators from injuring or impairing prior established diversions and uses of the water. Accordingly, earlier or senior appropriators are granted priority against later or junior appropriators and the needs of the senior appropriator must be satisfied before those of any junior appropriators. Thus, during times of shortage a junior appro-

priator’s water right can be curtailed in favor of the senior appropriators. This doctrine has been applied in Utah for nearly 150 years and has functioned admirably during that time. However, the recent changes in attitudes toward the environment and the climate, coupled with population increases, have presented new challenges to the doctrine. The collection of rainwater generally runs afoul of this doctrine, because the rainwater harvester is typically not an appropriator of a valid Utah water right. Therefore, because the casual rainwater harvester typically does not hold a recognized water right, he or she is creating an unauthorized diversion, which falls outside of the water right priority system and cannot be accounted for. Rainwater harvesting seems innocuous enough, but when

without a water right. The media reports rapidly led to public outcry and a sense of general disbelief. Consequently, despite the technical illegality of rainwater collection, both local and state governments responded in favor of the collection of rainwater. Salt Lake City and the Division of Water Rights took great steps to coordinate with Mark Miller Toyota concerning its proposed collection of rainwater. The division and the city determined that the dealership’s proposed “diversion” would primarily affect only the water rights owned by the city. Thus, the City was able to work with the dealership and the division to reach an acceptable agreement. The agreedupon solution was to permit Mark Miller Toyota to utilize a city water right, which would allow the dealership to collect and

As individual businesses seek to adopt more sustainable practices, it will be necessary to coordinate with local governments and the relevant state agencies to ensure that proposed practices do not run afoul of Utah’s laws. However, some local governments are supportive of efforts to adopt sustainable business practices. Cooperative solutions to the perceived roadblocks of sustainable business practices are out there and can be reached through open communication with local and state governments. taken to extremes, it has the potential to dramatically alter the hydrology of the state. Because water that falls to the ground must flow somewhere, it eventually will become part of the public water supply. Imagine, for instance, that every building in the Salt Lake Valley began to harvest all of the rainfall that fell upon its roof. Or consider if every landowner in the Heber Valley erected tarps across their land and collected all of the rain that fell on their property. The amount of water that would be collectively stored by these individual reservoirs could be enormous, and each drop of water held in these collection containers would no longer be able to run off into natural channels or be available for downstream users. When viewed in this light, it is easy to see that the cumulative effect of many rain barrels has the power to significantly alter natural flows and drainage. Accordingly, large-scale rainwater diversions can easily run afoul of the prior appropriation doctrine. As the summer of 2008 progressed, evidence of such conflict became ever more apparent. The media got wind of Mark Miller Toyota’s plight and quickly began reporting the fact that it was illegal to capture the rain that fell on your land

divert rainwater under the city’s name. This arrangement allowed Mark Miller Toyota to continue to collect rainwater but brought the diversion within the priority system. Following the general public outcry over the illegality of rainwater harvesting, the Utah Legislature passed S.B. 32 during the 2010 General Legislative Session. That bill allows a person to store and collect rainwater on their own parcel, subject to a number of limitations. Specifically, the new law provides that a person may directly capture and store precipitation on any parcel owned or leased by that person. However, the captured water may only be stored for future beneficial uses only on the property or parcel on which it is captured. This requirement is designed to restrict the collection of rainwater to personal use on a specific parcel. It also prevents speculators from harvesting rain from various properties and transporting the captured water for use at another location. Additionally, the law placed limits on the number and size of the collection basins that a person could install. Specifically, if a person plans to collect rainwater in an underground storage con-

tainer, he or she is limited to one underground container per parcel, with a maximum capacity of 2,500 gallons. Such a container must be installed in accordance with state construction laws and all other relevant laws. However, if a person desires to collect or store rainwater in an aboveground, covered storage container, the person is limited to a maximum of two covered 100-gallon containers. Regardless of type, each rain storage container must be registered with the Division of Water Rights. The State Engineer has provided a website on which a person may register their rainwater storage containers. The State Engineer requires the following information: (1) name and address of the person capturing or storing precipitation; (2) total capacity of all containers storing precipitation; and (3) street address or other suitable description of the location where precipitation is to be captured and stored. Registration is currently free and can be completed through the Division of Water Rights webpage, as follows: http://waterrights.utah.gov/forms/ rainwater.asp. The bill, as passed by the legislature, has a distinct residential or personal emphasis. The quantity of water that can be captured and stored is very limiting and is generally inappropriate for commercial or business applications. For example, a 2,500-gallon underground container would be insufficient to meet the needs of Mark Miller’s car-washing bays. Rather, the goal of the bill was to allow personal rainwater collection for usage in residential gardens. Therefore, while this law is an affirmative step towards sustainable practices and embodies conservationist goals, it was not intended to encompass larger-scale rainwater projects. It does not go so far as to condone or legalize the collection and re-use of sufficient rainwater to meet general business purposes. Rather, businesses hoping to adopt this sustainable practice are left to seek out cooperative arrangements with local governments and/or individual water-right holders. Accordingly, as individual businesses seek to adopt more sustainable practices, it will be necessary to coordinate with local governments and the relevant state agencies to ensure that proposed practices do not run afoul of Utah’s laws. However, as the Mark Miller example has shown us, some local governments are supportive of efforts to adopt sustainable business practices. Cooperative solutions to the perceived roadblocks of sustainable business practices are out there and can be reached through open communication with local and state governments. Jonathan S. Clyde is an attorney at Clyde Snow & Sessions, where he practices as a member of the firm’s Natural Resources and Water Law Group. He works alongside some of Utah’s celebrated water law attorneys and industry leaders, Steven E. Clyde and Wendy Bowden Crowther, to provide legal solutions for individuals, corporations, and municipalities in matters of water rights, quality and resources. Clyde currently serves as a board member of Utah Open Lands, a non-profit land trust conservation association. www.clydesnow.com.

Utah Focus, June 2011

Protect your green innovation Green technology innovation is thriv- Thomas L. Friedman’s Hot, Flat and ing in this economy as businesses look for Crowded, studies show that occupancy, cost and energy saving strategies to enhance rental rates and sale prices are higher in efficiency and sustainability into the future. LEED-certified buildings than in convenAccording to the Energy Information tional ones. Administration, U.S. buildings use over 70 An innovation, to be protectable under percent of the country’s electricity, patent law, may consist of a new and consume nearly 40 percent of and useful process, machine or its energy. (Green Building Alliance composition of matter, or any (2010)). Compared to standard new and useful improvement buildings, green buildings have thereof. Those concepts may been shown to lower maintenance include innovations for sustaincosts by over 10 percent, reduce able site development, water energy use more than 25 percent savings, energy efficiency, mateand significantly increase occupant rials selection and indoor envisatisfaction. (Green Building ronmental quality improvement. Victor Pollak As owners and managers seek Alliance (2010)). Building owners and managers to squeeze opportunities for nationwide seek to renovate and improved efficiency out of improve their buildings’ energy use everyday activities and processwith innovation in green building es, innovation in construction design, workplace design and propand management of facilities erty management. Programs such may be fertile ground for patent as the federal Energy Star program protection. If you have conor the U.S. Green Building ceived of such innovations, you Council’s LEED rating system may be able to seek patent or (Leadership in Energy and other intellectual property proEnvironmental Design) encourage tection in order to monetize the Artemis the adoption of green building and innovations through licensing Vamianakis development practices by creating a or other means. recognized benchmark for design, In a recent decision, Bilski v. Kappos, construction and operation. For example, the U.S. Supreme Court clarified that innothe LEED standard for existing buildings vative processes and business methods encourages facility managers and building may still be eligible for protection under owners to address issues of improved air the Patent Act. quality for occupants, lower water use, The Patent Act governs the issuance greater recycling efforts, reduction of toxic of patents. The Patent Act defines four patmaterials and lower overall operational ent eligible categories: “whoever invents and maintenance costs. According to or discovers any new and useful (1) pro-

cess, (2) machine, (3) manufacture or (4) composition of matter, or any new and useful improvement thereof, may obtain a patent.” A “process” under the act, is defined as an “art or method, and includes a new use of a known process, machine, manufacture, composition of matter or material.” A business method is a specific type of “process,” an orderly procedure, a regular way or manner, a method of doing business. What processes, business methods, are eligible for patent protection? In 2008, a landmark Federal Circuit decision suggested that a process is eligible for patent protection “only if: (1) it is tied to a particular machine, or (2) transforms an article into a different state or thing;” this was known as the “machine-or-transformation” test. The machine-or-transformation test effectively narrowed the broad statute; the Patent Office began to reject patent applications and district courts began to strike down existing patents on innovative processes. In 2010, however, the decision was reviewed by the U.S. Supreme Court. In Bilski v. Kappos, the U.S. Supreme Court analyzed the rigid machine-or-transformation test, and found that while the test is a “useful and important clue, and investigative tool,” it is “not the sole test for deciding whether an invention is a patent-eligible process.” The court also clarified the law on business method patents, finding that business methods may fall within the scope of “processes” eligible for protection under the Patent Act. Finally, the court emphasized that clear limitations remain

— “In order to receive patent protection, any claimed invention must be novel, nonobvious, and fully and particularly described.” The invention or discovery must be more than an abstract idea alone; an abstract idea that is applied to a known structure or process, however, may be well deserving of patent protection. What does this mean? The court did not to adopt categorical rules on what specific business methods would be patent eligible, lending to what may be, an unpredictable future. For now, however, Bilski stands for the possibility that processes described as business methods may be eligible for patent protection. Accordingly, as building owners and managers discover new ways to use energy more efficiently, they may be in a unique position to harness innovation in everyday processes into patentable technology and to then monetize the technology through licensing or other means. It may be worth your while to consult patent counsel to explore whether patent protection may be available for your innovations. Victor Pollak is an attorney/shareholder at Fabian Law. He concentrates in corporate and securities matters for businesses and their owners, including those engaged in technology commercialization. He can be reached at (801) 531-8900 or vpollak@ fabianlaw.com. Artemis Vamianakis is an associate attorney at Fabian Law. She has experience in a variety of legal fields including business organization, energy and utilities, natural resources and real property. She can be reached at (801) 531-8900 or avamianakis@fabianlaw.com.

Simple ways to make your home more environmentally friendly and energy efficient By Max Thompson When we celebrated the first Earth Day more than four decades ago, environmentally friendly “green” homes were considered the kind of thing that only Berkeleyites who drove VW buses might own. But we’ve come a long way since then. Like hybrid cars, recycling and energy efficient appliances, eco-friendly homes are rapidly gaining in popularity. More and more people are building green homes from the ground up. And those with existing homes are retrofitting them to make the property more environmentally friendly and energy efficient. Homeowners understand that making a home greener not only saves limited natural resources, but also saves them money in the long run and has proven to be healthier as well. There are so many new products on the market that is has become very simple to increase the energy efficiency of your home — everything from compact fluorescent bulbs to low-flow shower heads and a programmable thermostat. Most of these products can be installed in less than an hour, but their benefits can last for years. To get you started, here are a handful of tips to easily and affordably make your home greener — and save you a lot of “green” in the process:

• Start by assessing your energy usage. Getting a handle on your home’s energy use is an important first step to improving efficiency. You can do a simple assessment using the online tools at ENERGY STAR, the organization run by the EPA and the U.S. Department of Energy. It will take just five minutes and you will need your last 12 months of utility bills. The site will provide guidance on home improvement projects to enhance energy efficiency, and even provide information rebates and government tax credits. • Seal and insulate. Sealing and insulating the “envelope” or “shell” of your home — its outer walls, ceiling, windows, doors, and floors — is often the most cost effective way to improve energy efficiency and comfort. ENERGY STAR estimates that a knowledgeable homeowner or skilled contractor can save up to 20 percent on heating and cooling costs (or up to 10 percent on their total annual energy bill) by sealing and insulating. • Make your HVAC system more energy efficient. As much as half of the energy used in your home goes to heating and cooling. So making smart decisions about your home’s heating, ventilating and air conditioning (HVAC) system can have a big effect on your utility bills. Change

your air filter regularly. Tune up your HVAC equipment yearly. Install a programmable thermostat. Seal your heating and cooling ducts. Consider installing ENERGY STAR-qualified heating and cooling equipment. • Install low-flow shower heads and toilets. Older toilets waste large amounts of water. More than 30 percent of indoor residential water comes from toilets. New, low-flow models now use less than a gallon of water per flush vs. five gallons on older models. You can also save water and money, and still have ample water pressure, with a low-flow shower head, which can slash bathing-water consumption 50 to 70 percent. • Use energy efficient lighting. Compact fluorescent light bulbs (CFLs) use 66 percent less energy than a standard incandescent bulb and last up to 10 times longer. Replacing a 100-watt incandescent bulb with a 32-watt CFL can save $30 in energy costs over the life of the bulb. • Consider solar water heaters. A solar water-heating system can reduce the fossil fuel you’ll need for showering and washing clothes, and lower your utility bills in the process. But before installing one, determine whether you have a sunny enough location to recoup the up-front

costs, which CNN Money says can range from $3,000 to $8,000. • Choose healthier paints. Having a greener home is more than just saving energy. It’s also about the health of the home and protecting the environment. Conventional paints contain solvents, toxic metals and volatile organic compounds that can cause smog, ozone pollution and indoor air quality problems. These unhealthy ingredients are released into the air while you’re painting and even after the paints are completely dry. Opt instead for zero- or low-VOC paint, made by most major paint companies. • Reuse and remodel. As CNN Money said in a recent article, “the house that you fix up will probably be much greener than anything you build in its place, no matter how cutting edge the new design or how much recycled material you use.” With a total tear-down, everything that went into building the old house goes to waste. Construction material is one of the largest contributors to landfills. So reusing and remodeling is a good way to limit your impact on the environment. Max Thompson is CEO of Coldwell Banker Residential Brokerage in Utah. He can be reached at (801) 563-7600.

Utah Focus, June 2011

Building Sustainably As one of Utah’s leaders in sustainable construction, Ascent has built sustainable and LEED certified facilities since 2000. With LEED Accredited Professionals on staff, we make sure the best practices we follow result in the sustainable quality you expect. Ascent is proud to be starting another LEED project this month, the State of Utah, DNR, Interagency Fire Dispatch Center. Our commitment will continue to be Building Sustainably and Building Better than the competition. “The citizens of Carbon County love our new energyefficient, environmentally-friendly, Senior Center— a model in sustainable design and construction.”

25 South M ain, Suite 200

~Mike Milovich-Carbon County Commissioner

a s c e n tc o n st r u c t i o n .c o m

C e n t e r v i l l e , U ta h 8 4 0 1 4 p 801.299.1711 f 801.299.0663

Utah Focus, June 2011

at www.treeutah.org

Utah Focus, June 2011

Utah firm’s management technology helps commercial fleets go green West Valley City-based inthinc Technology Solutions Inc., a telematics company centered on fleet management and driver safety solutions, has released a whitepaper describing how technology can reduce the impact commercial vehicle emissions have on the environment. inthinc develops technology that tracks engine idling as well as fuel consumption trends, providing commercial fleet managers with real-time reports on vehicles’ impact on the environment. According to the U.S. Energy Information Administration, Americans consumed nearly seven billion barrels of

oil in 2010 (roughly 145 billion gallons). Using the conservative average price of gas in February 2011 ($3.21), Americans are projected to spend $455 billion on gasoline in this year alone assuming consumption remains constant. Organizations relying on fleet vehicles understand the enormous burden of these fuel costs and the impact each gallon of fuel has on the environment. In an effort to cut down on fuel consumption and to support commercial fleet needs, inthinc developed technology to allow organizations to have tighter control on the impact commercial vehicles have on

the environment, while still allowing them to operate an efficient fleet. Two primary components inthinc tackles are vehicle idling and speeding. According to an independent study, the average driver idles roughly 16 minutes every day, creating almost 94 million metric tons of CO2 and burning more than 10 billion gallons of gasoline annually. Inthinc’s fleet management solution uses an in-vehicle device that monitors engine idling and records how long vehicles were left standing still in an unproductive mode. This information is displayed in real time on the Web-based inthinc portal, where

fleet managers can see which vehicles need to be shut down. In addition, inthinc solutions coach drivers with real-time verbal alerts when speed limits are exceeded. While optimal fuel economy varies by vehicle type, gas mileage decreases rapidly at speeds above 60 mph. “A primary component of our product development over the past decade has included creating ways to help our customers reduce the carbon footprint,” said Todd Follmer, CEO of inthinc Technology Solutions.

Lake Powell is one of the cleanest lakes in the nation thanks to volunteers, recycling-friendly facilities With nearly 2,000 miles of shoreline and 2.5 million visitors a year, keeping Lake Powell clean is credited to recyclingfriendly facilities, environmentally-aware boaters and to its army of Trash Trackers volunteers. Last year, the environmental stewardship program collected 913,730 pounds of trash and recyclables at Lake Powell — the country’s second largest man-made lake — far surpassing its goals. “While Trash Trackers plays an immense role in keeping the lake clean, every visitor to the lake can play a role by reading our eco-friendly tips list,” said Cody Bailey, interpretative programs manager at Lake Powell Resorts & Marinas. “Lake Powell Resorts & Marinas has provided recycling trailers and bins at all launch ramps, lodge buildings and campground areas to encourage visitors to take part in the program, increasing the amount of material we are recycling.” The Trash Trackers program was started by Lake Powell Resorts & Marinas in cooperation with National Park Service’s Volunteers-In-Parks Program 22 years ago. The volunteers who descend upon Lake Powell range from first-time visitors to program veterans with decades of experience. In 2010 the program removed 913,730 pounds of trash and recyclables from the lake, shattering its 700,000 pound goal by nearly 20 percent. The trash was collected by Trash Trackers volunteers and from the trash and recycling bins at docks. Environmental achievements for 2010’s program include recycling 34,056 pounds of lead acid batteries, 3,340 pounds of rubber tires and 229,910 pounds of scrap metal. This year the program aims to remove 900,000 pounds from the lake and its beaches.

Lake Powell is the nation’s second largest man-made lake. Everyone spending time on Lake Powell is encouraged to turn their vacation into an eco-friendly holiday by following these tips: • Secure loose items on boat decks and shores. Much of the trash in the lake has been blown off of houseboat decks and beaches by wind • Properly dispose trash and recyclables. Bins have been provided at launch ramps, lodge facilities and campsites. It is illegal to burn trash or to dispose of trash in the lake.

• Keep golf balls out of the lake. Use designated golfing facilities as opposed to hitting golf balls into the lake. • Use appropriate facilities for waste. Use portable toilets when camping to reduce the chance of impairing water quality with improperly disposed waste. • Don’t carve or paint on rocks. Carving or spray painting rocks is graffiti and is illegal within the Glen Canyon National Recreation Area. • Leave fireworks at home. Fireworks

are illegal within national parks. The chemicals can harm the water quality and ecosystem of the lake. • Clean up after yourself and others. Practice leaving no trace by taking everything you brought to Lake Powell back out with you when you leave. To help leave the area cleaner than you found it, take an empty trash bag on shore excursions to remove trash left behind by other visitors. For more information about Trash Trackers, visit www.nps.gov/glca/supportyourpark/trashtracker.htm.

Historic Park City Alliance wraps up second Mobile Recycling Center season The Historic Park City Alliance (HPCA) has wrapped up the second winter season of its Mobile Recycling Center and successfully worked with Historic District businesses to improve sustainability. Prior to the mobile recycling program, Park City’s Main Street businesses filled up dumpsters with tons of usable material. The mobile recycling program has to date diverted half of these recyclables from the municipal landfill. “Recycling seems like such a routine chore these days, but developing a seam-

less recycling plan for Main Street businesses was a challenge,” said Rick Anderson, a member of the HPCA board of directors and owner of the Eating Establishment restaurant on Main Street. “Park City’s snowbanks and confined streets are difficult enough to navigate in the winter without unsightly trash or recycling bins clogging the sidewalks. As small mountain town business owners who care about our climate and environment, this was an important decision to help improve our community.”

The solution, said Anderson, was to create a recycling center on wheels that made it easy for businesses to recycle just steps away from their front doors. Joe Kernan, owner of Good Earth Recycling, which contracts to provide the service, said that the Mobile Recycling Center successfully recycled 78 tons of materials from participating Historic District businesses in 2010. Currently, the HPCA mobile recycling program serves about 50 businesses three days a week by

collecting recyclables at nine stops along Main Street. Businesses are given a 15-minute window at each stop for personnel to deliver their pre-sorted recyclables directly to Good Earth’s recycling truck. “It’s like meeting an ice cream truck,” said Anderson, “but the flavors are sustainability and environmental stewardship.” The mobile recycling effort is financially independent because it is funded by the Historic District businesses themselves, Anderson said.

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