Greenhouse Gasesfor DummiesLena Hansen and KittyWang, PE, of RMI’sEnergy & Resources Teamoffer a primer on the insand outs of greenhousegas trading schemes.

CommunityDevelopment andEnergy EfficiencyRMI’s Jonathan Kelvesand Michael Kinsleyexplain the connectionbetween energy efficiencyand jobs in a community.

Amazing Glazing Greg Franta, FAIA, writesabout “the magic of win-dows” and how they canlower your energy bills.

Factor 10 for CitiesRMI Intern MelissaSemcer describes our latest efforts to makeurban areas ten times as efficient as they currently are.

What Are You Doing?This summer and fall,RMI is playing host totwenty-one interns andfellows. Here, read whatthey’re up to.

NSC WeekendRMI Intern CarolineFluhrer describes ourNational SolutionsCouncil Weekend inColorado.

I n s i d e

RMISolutionsRMISolutionspage

R o c k y M o u n t a i n I n s t i t u t e ° V o l u m e x x i i ° # 3 ° F a l l 2 0 0 6

RMI Adopts the“2030 Challenge”

B Y C A M E R O N M . B U R N S

our home. Your office.The local supermarket.The kids’ school.

They seem benign enough,and we tend not to think of ourbuilt world the same way wethink of our cars and trucks andfactories—as great, pollution-spewing beasts. But buildingsconsume roughly 40 percent ofall the energy consumed in theUnited States and they’re respon-sible for about 40 percent ofgreenhouse gases emissions. Thetailpipes are just farther away.

Rocky Mountain Institute hasbeen working on building-energyconsumption long before our pas-sive-solar Headquarters inSnowmass, Colo. was completedin 1984. Our staff has helpedgreen up hundreds of big develop-ments and individual buildings—from the White House to city sky-scrapers. We even helped estab-lish the U.S. Green BuildingCouncil’s Leadership in Energyand Environmental Design(LEED) green building standard,back in the early 1990s when“green building” was a relativelyunknown term.

But in July, Rocky MountainInstitute took a big step andembraced an initiative called the

2030 Challenge, formally adopt-ing it for all future green buildingwork.

The 2030 Challenge is thebrainchild of architect EdwardMazria, AIA, senior principal atMazria Inc. Odems Dzurec inSanta Fe. Mr. Mazria launchedthe Challenge in early January, asa combination web-based rallyingcry and online resource fordesigners.

Specifically, the Challengeaddresses greenhouse gas emis-sions from the burning of fossil-fuel-based energy. It calls for allnew buildings and renovations tobe designed carbon-neutral—

meaning their operations willrelease zero carbon dioxide intothe atmosphere—by the year2030. The buildings will eitheruse no fossil-fuel-generated energyor their operators will offset theiremissions through the purchaseof certified carbon dioxide reduc-tions or sequestrations elsewhere.

Before 2030 and carbon neu-trality, however, the Challengeoutlines interim emissions reduc-tion targets. It calls for a mini-mum 50 percent reduction in car-bon dioxide emissions* for newconstruction and renovation proj-ects immediately; for a 60 percentreduction in emissions by 2010;

YCarbon-Neutral Buildings in 24 Years the Ultimate Goal

DA

VID

PA

TT

ERS

ON18

13

8

8

6

4

Green Building

2 RMISolutionsF a l l 2 0 0 6

for a 70 percent reduction by 2015; foran 80 percent by 2020; for a 90 percentreduction by 2025—and then, of course,the ultimate goal: carbon-neutral build-ings by 2030.

Victor Olgyay, AIA, a Principal withRMI’s Built Environment Team said theChallenge is not a result of designers’frustrations with the LEED system, butrather that it adds another dimension andcomplements the many evaluation sys-tems already in use. He also acknowl-edged that meeting the 2030 Challengewill turn some green-building clients off.

“We have already seen some pushbackfrom clients,” he said. “I think this ishealthy, especially as people try to under-stand what this level of performanceentails for them. Most people I have spo-ken with are excited about trying toachieve the 2030 Challenge and arecoming to RMI because we can deliverextra-high-performance buildings.However, some don’t see why theyshould change from business as usual—in fact, this is where the real excitementof this proposal lies! These ‘status quo’people are the ones who will really makea difference when they discover that it isnot painful, and may even be profitable,to make a significant difference—and the

bar will be raised.” Victor also notedthat getting to 50percent (or 100percent) carbonreduction is some-thing that is with-in reach of alldesigners andbuilders—the onlyrequirement iscommitment.

“If you don’thave the design,use money,” hesaid. “If you don’thave money, usedesign. If youdon’t have either,you aren’t committed.”

He also pointed out that because thereare so many carbon reduction methods,there is one to suit every situation.

“Of course not everyone will join theparade, but that is the cost of taking astand,” Victor added. “I believe that weare pointing to a greater good, and even-tually—perhaps sooner rather thanlater—our client load will increasebecause people will see the added valueof accepting the 2030 Challenge.”

Since its launch,several other organi-zations have accept-ed the Challengeand made it anoperating dictum. InDecember, theAmerican Instituteof Architects (AIA)endorsed theChallenge, and start-ed encouraging itsmembers to strivefor a reduction ofenergy use in allnew and renovatedbuildings. In June,the 2030 Challengewon backing from

the U.S. Conference of Mayors, whichapproved the 2030 Challenge for theircities’ buildings.

RMI announced adoption of theChallenge at the American Solar EnergySociety’s “Solar 2006” annual confer-ence in July.

For more information about the 2030Challenge and the building sector, visit:www.architecture2030.org andwww.advancedbuildings.net/index.htm.

1. Good design. We start with all the nor-mal green-design practices: building orienta-tion, energy analysis, shading, daylighting,high-performance glazing, insulation, effi-cient mechanical systems, etc. This is often“free” as part of good, responsible design,and can get to 50 percent (carbon reduction).If, for some reason, this is not enough…

2. Add technology: Photovoltaics, solarhot water, fuel cells, micro-hydro, wind, geo-

exchange, etc. Any of the suite of low-carbonon-site renewable energy-generation tech-nologies can be employed. These offset utili-ty-produced electricity, and have all theadded benefits of distributed generation. If,for some reason, this is not enough…

3. Buy it: Utility-generated wind power,“green E” power, tradable energy certificates,carbon offsets, etc. This is an emerging mar-ket that is very exciting and available to all.

—Victor Olgyay

The 2030 Challenge in Practice

2030 ChallengeCarbon DioxideReductions Goalsfor all new and renovated buildings• 50 percent now• 60 percent in 2010• 70 percent in 2015• 80 percent in 2020 • 90 percent in 2025• 100 percent in 2030

*Note: While the 2030 Challenge is aimed atgreenhouse gas reduction, some advocatesof the Challenge are using fossil fuel use asa proxy for carbon dioxide reductions. RMI’sadoption of the challenge will focus directlyon carbon dioxide.

Green Building

3RMISolutionsF a l l 2 0 0 6

THE UNIVERSITY OF COLORADO AT BOULDER’S MEMORIAL

Center (UMC) has become more than just a placewhere students relax, dine, and socialize—it is nowone of the greenest buildings on campus. On June 19,the CU Memorial Center’s new addition was awardedLEED Silver certification under the U.S. GreenBuilding Council’s Leadership in Energy andEnvironmental Design certification system forExisting Buildings (LEED-EB). The Memorial Center isthe second building in Colorado, and the twenty-eighth in the nation to receive this prestigious honorunder the LEED-EB system.

Open to students since 2002, the Memorial Centeraddition included roughly 50,000 square feet of newspace and the renovation of another 136,000 squarefeet of existing space. Sustainability was one of thepriorities for the UMC project team, and the goal was“to create a more livable, enjoyable, and sustainablespace for students, workers, visitors, and the environ-ment.” Through an analysis of system processes andthe use of environmentally friendly materials, theUMC project team was able to streamline mainte-nance procedures while creating a space that wasinviting and energy efficient. Rocky MountainInstitute’s RMI/ENSAR Built Environment Teamassisted with the initial design of the addition andthen recently provided assistance to the UMC projectteam throughout the LEED certification process.Being the first LEED-EB project at CU, the UMC will

serve as a model for future campus building renova-tions as well as an example for other universitiesseeking to promote sustainability in the remodelingprocess.

The Memorial Center’s key sustainability achieve-ments include:

• An Energy Star score of 91 out of 100, denoting thehighest standard of energy efficiency compared tosimilar buildings;

• Powered by 100 percent renewable wind energy;• Use of recycled and sustainable materials in the

building process, including bamboo flooring and work-stations made of 98 percent recycled content;

• Daylighting through strategic window placementand daylight-sensor lighting controls in the atrium;

• Access to eighteen bus lines connecting stu-dents and employees to the greaterBoulder/Denver metro area; and

• Native flora used in the surrounding landscape. Rocky Mountain Institute’s Built Environment

Team is one of the world’s leading proponents ofgreen development, a fast-growing field in which thepursuit of environmental excellence produces funda-mentally better buildings and communities—morecomfortable, more efficient, more appealing, and ulti-mately more profitable. For more on our work, pleasevisit our website at www.rmi.org (our MediaMaterials section is atwww.rmi.org/sitepages/pid65.php).

RMI/ENSAR Built Environment Team Guides CU Memorial Center to LEED Existing Building Certification

Greenhouse Gas Markets

The broad scientific consensus isthat the earth’s climate is experi-encing unprecedented changes

caused by greenhouse gas (GHG) emis-sions due to human activities. In reaction,much of the world has come together toaddress and reduce this climate impact.The United States is one of only twodeveloped countries that has not joinedthis effort, and continues to resist manda-tory controls on GHG emissions.

Despite this fact(and perhaps becauseof it), individualstates, local govern-ments, and compa-nies in the UnitedStates are proactivelyand aggressivelyreducing their GHGemissions. And, atleast in the short term, almost all of themare relying on one market-based solutionto achieve GHG-reduction goals flexiblyand cost-effectively: emissions trading.

Emissions trading is not a new concept.Emissions trading programs are based onthe commodity trading markets that havebeen a staple of the U.S. economythroughout history—the Chicago Board ofTrade (CBOT) and the New YorkMercantile Exchange, for example, pro-vide platforms for trading everything fromcorn to crude oil.

The U.S. Environmental ProtectionAgency implemented emissions tradingpilot programs as early as 1980. Theseefforts were relatively successful, and theUnited States now has active regional

markets for trading reductions of nitrogenoxide, sulfur dioxide, particulate matter,and more.

This experience with pollution tradingis now being carried over into carbondioxide and other GHGs. But can GHGsbe traded in the same way as other com-modities? Unfortunately, the answer is no.While CBOT traders can be relatively cer-tain that one bushel of corn has the samevalue as the next bushel of corn, the same

is not true for one ton of GHG becausenot all tons are created equal. In this arti-cle we’ll explain why, and explore theimplications for emerging carbon markets.

The Currency of Greenhouse GasesJust as crude oil is measured in barrels,GHG is measured in tons. But tons ofwhat? While carbon dioxide is the mostcommon GHG, there are twenty-threeother GHGs that contribute to climatechange. These include common gases likemethane (a major component of naturalgas) and nitrogen dioxide, as well as moreexotic gases such as halocarbons, perfluo-rocarbons, and sulfur hexafluoride.

Each of these other GHGs has a moresevere climate impact than carbon diox-

ide. For example, the global-warmingpotential of one ton of methane is thesame as that of twenty-one tons of carbondioxide. Nitrous oxide has three hundredand ten times the global-warming poten-tial as one ton of carbon dioxide, whilesulfur hexafluoride has a whopping twen-ty-four thousand times the potential.

In order to create a common “curren-cy,” emissions of all gases are typically nor-malized to an equivalent number of tons

of carbon dioxide.This unit is typicallyexpressed as “tonsof carbon dioxideequivalent.”

Designing theMarketWhile the UnitedStates does not

currently have national-level GHG regu-lation, nine northeastern states are inthe process of establishing a regionalcap-and-trade market for electricity gen-erators. California and other West Coaststates are also considering establishingstatewide cap-and-trade systems thataddress large emitters. The primary ben-efit of the cap-and-trade schemes is thatthey allow the participants to shoparound for the best deals, allowing themto achieve their emissions reduction tar-gets at the lowest possible cost.

Existing GHG markets are eitherclosed or open. Closed markets includea number of entities that are regulated(e.g., utilities, manufacturers, etc.), set a“cap” on their emissions, allocate a

B Y L E N A H A N S E N A N D K I T T Y WA N G , P E

An Expedient Path Through an Inconvenient TruthAn Introduction to Greenhouse Gas Markets

Nitrous oxide has three hundred and ten times the global-warming potential as oneton of carbon dioxide, while sulfur hexafluoride

has a whopping twenty-four thousand times the potential.

4 RMISolutionsF a l l 2 0 0 6

fixed number of emissions “allowances”to the parties within the market, andthen allow for the trading of allowancesbetween those entities. Thus, entitiesthat cut their energy use and reducetheir emissions beyond their require-ments can then sell the ability to emitGHGs to entities that cannot meet theemissions limits.

However, because the impact ofGHGs is global, the location of an emis-sions reduction is not important. Openmarkets allow regulated entities to notonly trade allowances within the mar-ket, but to purchase emissions offsetsfrom entities outside the market. In thisway, offsets (presumably less expensive)from other regions can provide addition-al compliance flexibility. Whether a mar-ket allows for the purchase of offsets aswell as allowance trading can funda-mentally change the game.

In addition to buying and sellingallowances and offsets to meet a cap,under some market designs, entities canalso bank (i.e., save for use at a futuretime) and borrow allowances and off-sets. These mechanisms also add flexi-bility and should contribute to lowercosts. However, unduly generous bank-ing rules can blunt the near-term impactof GHG regulations.

The Basics of OffsetsOffsets represent emissions reductionsfrom entities not regulated by a cap.However, all offsets are not createdequal. By definition, an offset is a differ-ence: the difference between the baselineemissions (what would have happenedabsent the project) and emissions after areduction project. The baseline is what isreplaced by the project—it doesn’t actu-ally exist! Thus, measurement is inherentlyuncertain. Some projects involve activitiesthat are easily quantified and measurable,while others are more uncertain. Forexample, with forestry projects the growth-rate of the trees, the type of trees, and thelong-term preservation of the woodland allcreate uncertainty in quantifying the off-sets. The “degree of certainty,” then,defines offset quality and exposes thebuyer and/or seller to risk.

The quality of an offset can be furtherdefined by the following criteria that,together with cost, determine the offset’soverall value (in a perfectly efficient mar-ket, the quality of the offset would beincorporated in the offset cost). Theseinclude the “RSVPE” criteria—that is,they must be: Real, Surplus, Verifiable,Permanent, and Enforceable.

To represent real (or measurable)emission reductions, a project must be“additional” or surplus to what would

happen otherwise. The baseline must beproven to be a credible projection ofemissions without the project, and thereductions from that baseline must bemeasured and verified independently.The project must also demonstrate thatthe reductions are permanent and notsimply deferred.

In practice, it is the project developerwho must provide satisfactory evidenceto the seller that all these conditions aremet. Once this is done, the seller is likelyto insist that there be some (frequentlyfinancial) mechanism for enforcingagainst violations of these principles.

Finally, in addition to the RSVPE crite-ria, some markets will consider otherattributes, such as additional environ-mental benefits (e.g., nitrous oxides orsulfur oxides reductions or soil erosionimpacts) and social impacts (includingthe impact of the project on the localeconomy, for example).

The graph shows the wide range ofquality of offsets currently available in vari-ous offset markets around the world andtheir costs. The most valuable offsets arethose that are low cost and high quality.

Early carbon restrictions appear tofavor the cap-and-trade approach as thebest way to achieve GHG reduction goalsat the lowest cost. As these carbon mar-kets mature, it will be increasingly impor-tant to understand how they work.

Although it can be argued that we arelate in getting started, cap-and-tradeoffers a proven mechanism for movingthe nation towards a climate-neutraleconomy. Eventually, we anticipate thatthe various markets under considerationwill be harmonized so that offsets will betradable across all of them.Understanding how these markets workwill become a new specialty in the fieldof commodity trading.

Lena Hansen and Kitty Wang are mem-bers of RMI’s Energy & Resources Team.

Greenhouse Gas Markets

$5 $10 $15 $20 $25

Qualityof offsets

Increasing value

Chicago Climate Exchange

Renewable Energy Credits

Futuro Forestal

The Nature Conservancy/Conservation International

Climate Trust

World Bank

Natsource

AgCert

CO2e

European Trading Scheme Emissions Allowance Units

Figure 1. Cost and Quality Determine the Total Value of GHG Emissions Offsets

5RMISolutionsF a l l 2 0 0 6

Sustainable Communities

Energy-Efficiency Managers andEconomic-Development Directors—An Under-Explored Political Alliance

ON ONE SIDE OF TOWN, ENERGY-EFFICIENCY

(EE) managers at the electric utility arecharged with reducing demand. On theother, economic-development (ED) pro-fessionals are judged on their ability toincrease the number of jobs. Thoughthey could help each other achieve theirrespective goals, such an alliance is rare.The result? Lost opportunities for bothand, worse, for the communities inwhich they work.

In the United States, electricity gen-eration produces more greenhouse gasesthan all mobile sources combined (e.g.,cars and trucks). Energy-efficiencyinvestments would significantly reduceelectricity-generation emissions and saveutility ratepayers billions (see box).

Yet most utilities are not investing inEE to the extent necessary to realizethese achievable results. The reasonsare numerous and include perverse utili-ty regulations, bureaucratic intransi-gence, and an orientation toward keep-ing utility rates low instead of keepingmonthly utility bills low.1

Like oil tankers, electric utilities arenotoriously slow to change direction.Many engines need to be going fullthrottle to make a turn successfully—rate payer demands, regulatorydemands, financial demands, politicaldemands. Lack of political will is onemajor reason for under-investment inEE. Yet, an effective alliance of EE andED advocates can help turn the corner.

How can EE managers and ED direc-tors help create the political will? Energy-efficiency investment creates jobs (see“RMI Refines Community Energy

Opportunity Finder,”www.rmi.org/sitepages/pid1218.php). People are employed todesign, install, and sell the gadgetsrequired for efficiency, their spendingcreates jobs, and lower utility bills freeup money to be spent locally—most ofwhich would have been spent outsidethe community to pay for electricity.

If we think of a local economy as awater bucket that is full when prosper-ous, we would notice that most EDefforts focus on finding more hoses to fillthe bucket, which is often well worthdoing. But less obvious, and getting virtu-ally no attention, is the fact that thebucket is full of holes—also known aseconomic leakage. In the case of electric-ity use, energy inefficiency is the culpritthat allows this leakage. Plugging the

leaks is a powerful ED tool. Jobs created directly by EE invest-

ments range from blue-collar jobs tomore technical positions—frominstallers putting in high-performancewindows and insulation to engineersdesigning and installing more efficientequipment and processes in a factory.

Indirect jobs result from an increased“economic multiplier.” When electricbills decline, many of the dollars thatwould have left the community to payfor electricity instead recirculate in thecommunity and create jobs, which inturn increases local spending.

Several studies have demonstrated theutility bill savings and direct and indirectjob-creation benefits that EE investmentscan yield. A 2002 study by the RANDCorporation for the State of Minnesota con-

B Y J O N A T H A N K E V L E S A N D M I C H A E L K I N S L E Y

On national scale, U.S. electricity generation produced 2.290 billion metric tons ofcarbon dioxide equivalent* in 2004. By comparison, U.S. cars, trucks, and planesgenerated 1.86 billion metric tons of carbon dioxide equivalent during the same timeperiod. Energy efficiency and renewable energy programs can dramatically reducethose emissions because they encourage individuals and communities to upgradeinefficient lighting, motors, roofing, windows, and insulation—to name a few energyefficiency opportunities. Indeed, a 1998 study commissioned by the World WildlifeFund estimated that adoption of WWF’s Climate Protection Scenario policies wouldresult in an 8.5 percent decline in U.S. carbon emissions between 2000 and 2010(instead of a 20 percent increase without any policy changes), and a 28 percentdecline between 2000 and 2020 (rather than a 36 percent increase). The impactswould also benefit electric utility customers’ wallets—to the tune of $600 billioninaccumulated savings by 2020. Source: EPA

* Carbon dioxide equivalent: “A measure used to compare the emissions from various greenhousegases based upon their global warming potential. For example, the global warming potential for methaneover 100 years is 21. This means that emissions of one million metric tons of methane are equivalent toemissions of 21 million metric tons of carbon dioxide.” Source: http://stats.oecd.org/glossary/detail.asp?ID=285

Electricity Generation & Emissions

6 RMISolutionsF a l l 2 0 0 6

Sustainable Communities

cluded that EE measures created statewideper capita energy expenditure savings of$242 from 1982 to 1992. This equates to a33 percent decline in energy expenditures(the result of efficiency measures and ener-gy price reductions). This created astatewide savings to residents of $1.1 billion(in 1998 dollars). Another 2002 study, bythe Southwest Energy Efficiency Project,estimated that EE investments in Arizona,Colorado, Nevada, New Mexico, Utah, andWyoming would generate a net savings toconsumers of $28 billion between 2003and 2020, create 58,400 net new jobs inthe region, and increase income in theregion by $1.34 billion per year by 2020.2

Energy efficiency should be especiallyattractive to towns and cities that arestruggling economically because thesemeasures create jobs and savings whereopportunities seem nonexistent. Energy-efficiency benefits do not depend on anupturn in the economy. Lower utilitybills make a community more attractiveto business, a fact obvious to thoseinterested in starting, expanding, orlocating a company. And because EEinvestments rely less on decisions madeby distant governments or companies,they give struggling communities anopportunity to regain some autonomyover their economic destinies.

These benefits will resonate particu-

larly strongly with publicly and coopera-tively owned utilities (POUs and COUs,respectively, owned and managed bythe rate payers themselves, either indi-rectly through a city government, ordirectly in the case of electricity utilitycooperatives).3 The EE–ED link can beparticularly powerful in POUs andCOUs because the decision-makers andthe beneficiaries are both local, they arebeholden to local stakeholder groups,and they include community goals intheir organizational missions.

In contrast, the mission of investor-owned utilities (IOUs) is to maximizeshareholder value, and those sharehold-ers may or may not live in the commu-nities served by their utilities. Yet com-munity leaders, armed with job-creationarguments brought to them by analliance of EE managers and ED direc-tors can influence the local utility, thePUC, state legislators, and other electedstate officials who oversee their PUC.

If EE managers and ED practitionersremain unconnected, ill-informed politi-cal leaders can allow job-creation oppor-tunities to sit on the vine, localeconomies will continue to “leak”unnecessarily, and greenhouse gas emis-sions will not be reduced. In sharp con-trast, an alliance of EE managers andED practitioners can create the political

will necessary to increase EE invest-ments and turn the tanker.

Michael Kinsley is a Principal andJonathan Kevles is an Intern with RMI’sIntegrative Design Team. Thanks toSkip Laitner for his continuing analysisof jobs and energy.

1 Utility investment in energy-efficiency pro-grams can cause the per-kilowatt-hour price ofelectricity (the “rate”) to go up as utility costrecovery of investments are spread over fewerkilowatt-hours. But efficiency reduces electrici-ty use, causing customers’ utility bills to godown. As long as bills go down by more thanthe rates go up, the customer saves money.

2These studies also look at the job creationbenefits of investments in renewable energy(RE). This article does not delve into the REside of the issue because RE investments,while extremely important from an environ-mental perspective, must be examined on acase-by-case basis to determine their localjob-creation potential. For instance, a windfarm might provide clean power to a communi-ty, but it may be located hundreds of milesaway, meaning lease payments to distantlandowners and windmill installation jobs toresidents near that distant wind farm; thus, inthis example, no direct jobs are created for thecommunity making the RE investments.Alternatively, local labor would be required toinstall photovoltaic systems or passive solarwater heaters, thus creating many good-pay-ing local jobs through RE investments.

3 According to the American Public PowerAssociation (www.appanet.org), in 2004 therewere 2,011 POUs and 884 COUs, which serveda combined 16.6 percent of all electric utilitycustomers in the country.

On 13 July, the most powerful presentation inthe Institute’s RMIQ (Quest for Solutions)lecture series to date took place. RMI CEO

Amory Lovins, Paul Westbrook of Texas Instruments,Chris DiPetto from the Pentagon, Andy Ruben fromWal-mart, and RMI’s Managing Director Joel Swisher,PE, teamed up for a panel discussion. Each panelistgave a short presentation about their energy-efficien-cy initiatives and how RMI played a role before sittingdown to field questions from the audience.

The event, which took place at PaepckeAuditorium in Aspen, Colo., brought in roughly 200audience members, all of whom were treated to a

fascinating evening. Paul presented the new chip“fab” (fabrication plant) that he and RMI were instru-mental in developing. The facility saved more than$280 million in capital costs and will save millions inoperating costs, all while keeping numerous jobs inRichardson, Tex. Chris described his efforts toimprove the energy efficiency of the military’s war-fighting platforms, and Andy described Wal-Mart’sefforts to improve the efficiency of their trucks andstores. Last but not least, Joel presented two casestudies of work that RMI has done with energy utili-ties to help them save costs while producing energymore efficiently.

RMIQ: “Strange Bedfel lows” A Major Success

7RMISolutionsF a l l 2 0 0 6

Green Building

IN JULY, ROCKY MOUNTAIN INSTITUTE, ARUP

(an international engineering firm based inLondon), and other sustainability anddesign experts from around the worldgathered in Cambridge, England to explore“Factor 10 Engineering for SustainableCities.” Factor 10 is a novel approach tosustainable development in which per-formance outputs (things like the amountof park space that can be kept green witha gallon of water and the amount of officespace kept comfortable with a ton of cool-ing) are improved by a magnitude of ten atno additional—perhaps even reduced—capital cost.

According to the United Nations, the

majority of people now live in cities and,as Peter Head of Arup noted, “the futuresuccess of humankind is linked to howsuccessful urban living will be as part ofthe planet’s ecosystem.” Current urbandevelopment tech-niques and designslead to environmentaldegradation andresource depletion,and it is likely that, on a world scale, thebuilding industry(including buildingoperations and embodied energy) is thelargest single consumer of energy—certain-ly it is in the United States. A whole-sys-tem integrated design process could result

in a new generation of architecture withoptimized energy and water efficiency,appropriate natural materials, and superiorindoor environments. Energy efficiencyand the use of renewable energy in the

built environment could cre-ate win-win solutions aslower operating costs cor-respond to reduced atmos-pheric pollution.

The two-day colloquiumfocused on promoting andimplementing whole-sys-tem urban development

strategies—turning the way engineers anddesigners approach urban development onits head. Participants explored topics rang-ing from environmental footprints and

B Y M E L I S S A S E M C E R

Factor 10 Engineering for Sustainable Cities

B Y G R E G O R Y F R A N T A , FA I A

In terms of a building’s energy perform-ance, windows can be either heroes orvillains. When buildings are “designed

by climate,” windows can be the majorcontributor to human needs for heating,cooling, lighting, ventilating, and a con-nection to the outdoors (through views).

Windows are the main components offenestration, which also includes skylights,clerestories, and dormers. Glazing refersto the fenestration’s light-transmittingmaterials, and it is typically glass, fiber-glass, or plastic. Glass was first used forwindows by the Romans, probably inPompeii and prior to the birth of Christ. InVenice in the thirteenth century, flat glasstechnology was developed and windowsbecame popular throughout Europe. Notsurprisingly, the Industrial Revolutionmade windows more economical throughmass production.

Even higher-performing windows withdouble and triple glazing are not new.

Thomas Stetson first patented multi-panedwindows in the United States in 1865.However, it wasn’t until more than onehundred years later that they became pop-ular. Today, with our modern windowtechnology and design tools, windows canbe designed so they optimize buildingenergy performance, as well as just abouteverything else in a modern home. Yet,this optimization is far from mainstream inthe building industry.

The most fundamental climate-respon-sive design consideration in terms of win-dows is orientation. In the continentalUnited States, east- and west-facing win-dows have low sun angles, meaning bigsolar gains and glare that’s difficult to con-trol. Controlling solar gain and glarethrough overhangs or lightshelves onsouth- and north-facing windows is mucheasier. South-facing windows can providewinter solar heat gain if desirable, andnorth-facing windows can be great in hotclimates.

When the sun’s rays strike glazing, they

are reflected, absorbed, or transmittedthrough the glazing. The portion that istransmitted may be ultraviolet, visible, orinfrared light energy. All types will pro-duce heat when they are transmittedthrough windows, but only about half ofthe energy is visible. This distinctionmakes for interesting possibilities, andmodern technology allows us to filter outinvisible heat or visible light, dependingupon our objectives. For example, a glaz-ing that reduces solar heat gains inresponse to cooling loads may have a lowsolar heat gain coefficient (SHGC), typical-ly less than 0.26. A glazing with the sameSHGC could have a relatively low (lessthan 20 percent) or high daylight trans-mittance (greater than 50 percent) to helplight the building. This can make a big dif-ference in the amount of glass used on aproject and the overall building perform-ance, not to mention blocking 99.5 per-cent of potentially harmful ultravioletlight. Glass color and spectrally selectivelow-emmissivity (“low-e”) coatings make

The Magic of Windows, Part 1

8 RMISolutionsF a l l 2 0 0 6

this possible.Another modern opportunity is to dras-

tically reduce heat transfer via a reductionin heat conduction through the window.With interior glass surface temperaturesbeing closer to the interior air tempera-tures rather than outdoor temperatures, as with conventional glazing, thermalcomfort is increased and heating and cool-ing loads are reduced.

Single glazing (still common in mild cli-mates) has a rate of heat transfer of aboutU-1.1,1 double glazing is about U-0.5, andtriple glazing is about U-0.32, all depend-ing upon the air space size, glass thick-

ness, and other characteristics. Double glass with a low-e coating on

one surface achieves less than U-0.30.Suspended coated (low-e) film (SCF)between panes can drop a window’s rat-ing to below U-0.20. Combining low-ecoatings on the inner surfaces of glass,using two SCFs and filling the gas-filledspaces with optimized mixes of kryptonand argon gas results in less than U-0.10.Of course, these values are impacted bythe spacer and frame performance, sothey need to be high-performance aswell. An example of a very high-perform-ance window is on my own residence in

Boulder, Colo., where I used clearAlpenglass with fiberglass windows(made by Alpen, Inc., of Boulder) thatachieves seven times the performance ofthermal pane glazing (U-0.07).

Yes, high-performance windows canseem pricey up front. But to fully assess awindow’s worth, one needs to understandhow it impacts the entire system’s perform-ance, the construction cost, and the life-cycle cost. Superwindows may reduce oreliminate the need for costly traditionalheating and cooling systems and have otherimportant impacts. Integrated design is thekey to revealing “the magic of windows.”

Team Leader of the RMI/ENSAR BuiltEnvironment Team, Greg Franta, FAIA,practices his magic out of our Boulderoffice.

Green Building

1 “The rate of heat loss, in British thermalunits per hour, through a square foot of a sur-face (wall, roof, door, windows, or other build-ing surface) when the difference between theair temperature on either side is 1° Fahrenheit.The U-value is the reciprocal of the R-Value.”Source: www.eere.energy.gov/financing/glos-sary.html.

High-performance windows (U-0.07) used in the Simpson-FrantaResidence in Boulder, Colo.

energy-use analyses of several major citiesto design strategies for engineers andcase studies of communities thatemployed Factor 10 solutions. RMI wasrepresented by Greg Franta, FAIA, whomade a presentation on Factor 10applied to sustainable architecture andinitiated a collaboration with Arup topartner on planning for future cities.

In terms of community development,Factor 10 means recognizing the linksbetween economic growth, human health,and sustainability—thereby addressingmultiple interests with fewer resources.One notable example is Curitiba, Brazil,which shunned mega-projects in favor ofmulti-purpose, financially responsible, com-munity-supported projects. The key wasthe exclusion of typical engineering prac-tices in favor of integrative design process-

es that treat transportation, land-use,hydrology, poverty, waste flows, health,education, jobs, income, culture, and poli-tics as equal components.

The Factor 10 colloquium in Englandbuilds on a project RMI launched severalyears ago—Factor 10 Engineering (a.k.a.“10xE”; see RMI Solutions, spring2004)—the ultimate product of whichwill be a casebook that includes a thor-ough analysis of engineering practice,comparing the differences between stan-dard practice and whole-system integra-tive design. The casebook—and relatedpresentation opportunities—will allowRMI to bring a sound and compellingpedagogic basis for the “nonviolent over-throw of bad engineering” to firms andclassrooms worldwide. The book will alsointroduce engineers to the value of dis-

tributed generation resources, such assolar and fuel cells, despite their addition-al associated up-front cost.

“Although our Factor 10 Engineeringfor Sustainable Cities effort is still in itsinfancy,” Greg noted, “we are very excitedabout the potential opportunities withArup and others for significant enhance-ments in resource efficiency, waste reduc-tion, and pollution prevention compared totraditional practice. The future looks brightfor cities worldwide as RMI, Arup, andothers lead the way toward urban develop-ment that meets the economic and socialneeds of its citizens while simultaneouslysupporting life-sustaining eco-systems.”

Melissa Semcer is an Intern with theInstitute’s RMI/ENSAR BuiltEnvironment Team.

9RMISolutionsF a l l 2 0 0 6

Editor’s Notes

Dances With Batteries

Walk into the office of JohnWaters, leader of RMI’sIntegrative Design Team, and

if he’s not busy plowing through hisRolodex and contacting industry leaders inthe automotive sector, he might hand youtwo batteries: a traditional lead-acid bat-tery that’s the size and weight of a brick,

and an advanced lithium battery that’s the size and weight of aslice of bread.

For John, the difference between batteries is more than physi-cal. They represent the Dark Ages and the Enlightenment in trans-portation strategies.

“For all these advanced efficiency powertrain systems—in cars,trucks, and other vehicles—that are being developed to be able toachieve their potential, there’s a huge need to improve the energystorage systems they use: that is, the battery,” he said. “Americamight even be in the process of trading its foreign oil dependencyfor another kind of foreign energy dependency—on those coun-tries (China, Korea, etc.) producing the batteries that will be anintegral part of the future’s highly efficient vehicles.”

Lithium, the universe’s lightest metal, is used in batteriesbecause it can typically store twice as much energy as today’snickel-based batteries (used in hybrid-electric vehicles today). Butuntil recently, lithium batteries were more promise than reality.

Work on lithium batteries began in the early 20th century, buttheir inherent instability made functional design elusive. Researchmoved toward the lithium ion, which, though able to hold lessenergy than lithium metal, made the batteries safer, rechargeableand more useable. It took until 1991 for lithium-ion batteries to becommercialized.

Lithium-ion batteries have had their critics over the years, butwith every passing month, this new technology seems to showincreased promise. For example, last year, Altair NanoTechnology(www.altairnano.com) of Reno, Nevada, announced it had madea huge advance in lithium-ion batteries. Their battery can becharged 6,000 times (instead of the typical ~750 times), can becharged in 6 minutes (instead of 2 hours), and can carry 3 timesas much power.

Today the lithium-ion battery industry is a mere fifteen years old,and these batteries have generally been used in small consumer goods.

The challenge, John says, is to adapt the technology to larger-format, higher-voltage applications.

But John’s work at RMI isn’t just about promoting and explor-ing the best technologies. His job is organizing creative people tofind solutions. Earlier this year John met with executives at a lead-

ing consumer products firm to look for a future products strategy.Rather than simply apply his own knowledge gleaned from yearswith General Motors, Delphi, and EnerDel, John got on thephone and, after many days’ effort, pulled together an innovationworkshop. This company doesn’t make cars, per se, but rathervehicle components. The resulting RMI workshop wasn’t yourtypical green building design event either. It was a far-ranging“group-think,” in which the firm’s representatives could exploretrends, products, and challenges in the auto industry.

“We came up with several strategies that fall easily into theircore competencies,” John said. “The really weak link in the pow-ertrain for advanced vehicles—in cost, performance, mass, andinvestment strategy—is the battery. It represents 60 percent of thecost, more than 50 percent of the performance, and it affects thatever-important weight equation.”

Not surprisingly, that piqued the interest of company executivesat the event, and in no time event attendees were zeroing in on anew product strategy that could be part of a whole-system solu-tion for big lithium-ion batteries.

“One of the things I’m trying to do at RMI is connect the dotsbetween America’s major players, and that could ramp this up asfast as possible,” John said. “I’m trying to marry firms that dopackaging and manufacturing with firms that do materials process-ing and chemistry.”

So far, he seems to be succeeding.John is currently in touch with a firm that has developed a lithi-

um-ion sports car for production (www.teslamotors.com). He isalso working with officials from a U.S. state government wanting toinvest in entrepreneurial technology start-ups. He is talking to com-panies that make the packs that hold the batteries and firms thatmake the connection devices so they can be as easily assembled asModel Ts were in Henry Ford’s production line. And then, there’sthe new product that his innovation workshop client may beginproducing itself: the batteries.

Why is this little adventure coming together so quickly?John is quick to point out that there are all kinds of projections

for the size of the coming lithium-ion battery business, but undernearly every scenario, the prize is enormous.

“A battery pack company I know has estimated that their busi-ness sector alone is worth $800 million in annual revenues,” hesaid. “There are other estimates for other parts of the business, butit’s happening, and it’s a key step toward the lightweighting of vehi-cles that is so necessary for our future.”

Just think: transportation fuel efficiency, reduced fuel consump-tion, oil independence, national security, and the reduction of green-house gas emissions—not to mention, the development of a robustnew business that could move overseas jobs in the oil sector tomanufacturing facilities right here at home—all because of a battery.

No wonder John’s charged up.

B Y C A M B U R N S , E D I T O R

10 RMISolutionsF a l l 2 0 0 6

Life at RMI

Much of RMI’s research andwork over the years hasbeen applicable to and

usable by the military. In fact, RMIhas consulted on specific military proj-ects in the past, such as auditing andrecommending energy and fuel effi-ciency and savings potential on the

USS Princeton (2000–2001); teaching at various militarystaff colleges for more than two decades; serving on DefenseScience Board task forces to examine platform efficiency(1999–2001) and energy strategy (2006–2007); collaborat-ing with the Air Force Academy and Hickam Air Force Baseon building design and efficiency; and being on a team to“green” the Pentagon building soon after RMI’s “Greeningthe While House” effort—as well as many other things.

RMI’s Winning the Oil Endgame, published in 2004, specifi-cally targeted measures for radical resource efficiency that couldbe implemented by the military, the largest user of oil in theUnited States. How could RMI ensure that such bold changeswould happen? RMI’s approach and recommendations wouldneed to become an integral part of the military’s policy andthinking from the Pentagon down.

What better way to embed RMI’s work into the military thanto have a former military career officer on our staff, living andworking in Washington DC? In April, we hired former NavyCaptain Scott Pugh to lead RMI’s work with the Pentagon. He is

focused completely on implementing the ideas of Winning TheOil Endgame from a military perspective. He works closely withChris DiPetto, Special Assistant to the Director of SystemsEngineering at the Pentagon, in the Office of the UnderSecretary of Defense for Acquisition, Technology and Logistics.Having graduated from and taught at the U.S. Naval Academy,Scott is well versed in military strategy, thinking, and protocol.

Having Scott on the ground in DC has already proveneffective. Recently, Scott and RMI CEO Amory Lovins wereasked to participate in a Defense Science Board (DSB) taskforce to study Department of Defense energy strategies for afuture characterized by less plentiful energy supplies. ThisDSB task force is chaired by Dr. James Schlesinger (whowrote a forward to Winning the Oil Endgame) and GeneralMike Carns, USAF (retired). It meets in Washington twicemonthly and is expected to complete its work in early2007. About twenty other energy, technology, and policyexperts, including former CIA Director James Woolsey, arealso on the task force. Thanks to earlier work by Amory andformer RMI employee Odd-Even Bustnes, the DSB EnergyStrategy Task Force will be examining many of the sameenergy-saving ideas included in Winning the Oil Endgame,and has excellent potential to give additional weight andcredibility to RMI’s recommendations. You can read moreabout the DSB Energy Strategy Task Force athttp://www.acq.osd.mil/dsb/taskforces.htm.

Marty Pickett is Executive Director of RMI.

Embedding RMI Recommendations in the MilitaryB Y M A R T Y P I C K E T T

RMI/ENSAR Built Environment Team Helps LEED NC v3.0 Upgrade

Since its creation in the early 1990s, the U.S. GreenBuilding Council’s Leadership in Energy andEnvironmental Design (LEED) rating system has

been continually refined and improved. The LEED RatingSystem for New Construction (NC) is now going throughanother upgrade, to Version 3.0, and the Institute’s BuiltEnvironment Team is contributing to the vision of a new andimproved product.

“Ideas for the 3.0 upgrade have been germinating foryears, but the formal process is just starting,” noted RMISustainable Design Consultant Ashley Muse. “It’s excitingbecause, over the last few years in particular, LEED hasbeen thoroughly established as a tool for market transfor-mation within the building industry. As more and more of

the strategies used to meet LEED credits become bestpractice, there is a new opportunity to set the bar to encour-age higher goals for responsible design and to continue toexpand the issues addressed within the rating system.”

RMI’s Greg Franta, FAIA, recently took part in a work-shop on the revamping of the rating system and those work-ing on the upgrade have identified three questions theywant to address with Version 3.0: “What is our currentimpact in the market and how do we expand that impact?What technical and scientific advances will improve LEEDproduct performance? What service improvements willreduce transaction costs and other perceived barriers?”Version 3.0 is expected to be unveiled at the USGBC’sannual Greenbuild conference in the fall of 2007.

11RMISolutionsF a l l 2 0 0 6

Staff Spotlight

“WHY NOT MAKE IT BETTER?”After more than fifteen years, Jeff

Ronning is still asking this question. “I’mreally interested in improving things, mak-ing things more efficient,” he says.“Efficiency to me is a no-brainer. It justmakes sense.” As the newest addition toRMI’s Integrative Design Team, Jeff’s dedi-cation to efficiency and knowledge ofhybrid vehicles is being put to good use.

Jeff grew up in Kansas and he definitelyinherited the family engineering gene. Hisfather, Richard, ran an engineering firm inKansas City where he developed industrialdehydration process equipment, and hisgrandfather was a firm believer in efficientsystems. As a child, Jeff loved to tinker, andhis interest in how things work stayed withhim into college. He graduated from KansasState University in 1988 with a BS inMechanical Engineering.

In 1991, he went to work for DelphiCorporation and focused his energy ondeveloping the EV1, General Motors’ hybridcar. Jeff worked primarily on the car’s elec-tric propulsion system while learning every-thing he could about the electric motor andthe system that converted electricity forengine use. It was during this time that Jeffmet and worked with John Waters, his cur-rent Team Leader at RMI. In 1995, hebegan to look at thermal management inhybrid cars. His specialty was engineeringthe batteries, electronics, and motor for

proper cooling. Over the years he becamean expert on hybrid-vehicle programs anddid extensive analysis and testing on elec-tronic thermal systems, fuel injectors, bat-tery systems, fuel cells, and engines. In thelate ’90s, Jeff became an enthusiastic advo-cate of the plug-in hybrid, which can helpreduce oil usage, and worked to build amodel based on GM’s EV1.

Jeff provided consulting services to RMIin January 2006, and realized that RMI was a group of positive, dedicated,and passionate professionals with whomhe might like to be more involved. Hisinterest in the company turned into a jobopportunity when a position opened onthe Integrative Design Team. He joinedRMI full time in May 2006, and is alreadyapplying his expertise for RMI clients andfinding new opportunities for customerswho want to reduce energy use. Jeff’s dedi-cation to research, testing, and analysis,make him a valuable team member.

While Jeff’s professional experience wasgrowing, his family was growing as well.

He and his wife Jennifer have six children,ranging in age from four to fifteen. With asmile, he says that his hobbies over the lastfifteen years have been “pretty much rais-ing children.” The family enjoys manyactivities together, but one in particular isplaying music. Jeff really loved playing vio-lin as a child and all of his older childrenhave followed in his footsteps. “My twoolder boys have definitely passed their dadas far as ability,” he says, smiling. Togetherwith his three oldest children, he hasformed a quartet, and hopes to somedayplay chamber music for local weddingsand parties.

At RMI, Jeff is becoming moreinvolved with Integrative Design Teamclients, and is currently heading up aseries of tests on RMI’s Prius, primarily tostudy its cooling system. His practicalattitude towards efficiency, and the desireto keep building things better, motivateshis research. And why not—to Jeff, itjust makes sense.

—Isolde Stringham

Thank You, 3form!The Institute sends out a big thankyou to 3form, a Salt Lake City firmthat makes environmentally sensitive(and beautiful) building and architec-tural products. 3form has decided todonate 10 percent of the proceedsfrom its Reclaim products to RMI. Fifteen years ago, 3formfounder Ray Goodson devised a way to make incrediblyattractive architectural elements via a process in whichsheets of 3form’s ecoresin—made with 40 percent recycledglycol-modified polyethylene terephthalate (PETG)—were

pressed together to encapsulate organicmaterials like sticks, grasses, and leaves.Today the firm makes hundreds of prod-ucts based on its patented resin encap-sulation technology, including panels,work surfaces, and furniture. Reclaim is a

portion of 3form’s business that recycles damaged orunwanted panels for reuse in other applications. “We areproud to support an organization that fosters environmentallyresponsible business practices,” Ray said. For more informa-tion on 3form, visit www.3-form.com.

Jeff Ronning

12 RMISolutionsF a l l 2 0 0 6

What Are You Doing?

Caroline Fluhrer MAP InternLast May I finishedup my undergradu-ate and master’sdegrees in engineer-ing at Stanford.

Thanks to the MAP fellowship program,I’m able to spend six months workingwith both the Built Environment andEnergy & Resources Teams in the Boulderoffice. My projects thus far have included aconference paper on Factor 10Engineering for Sustainable Cities and achapter on Integrated Design for theNational Council of ArchitecturalRegistration Boards. I’m also researchingbarriers to achieving greater energy effi-ciency in corporate real-estate projects. I’mfrom Seattle, so I enjoy spending week-ends exploring Rocky Mountain NationalPark and other amazing Colorado placeswith my fellow interns and roommates.

Vanessa FreyThis summer Iworked on biofuelsissues out of RMI’sKona office. Muchof my time wasspent analyzing

Hawai‘i’s biofuels production potential aspart of the state’s Energy Strategy. I alsohelped organize a biofuels summit inHawai‘i, where influential players from thepublic and private sectors identified waysto overcome barriers to biofuels develop-ment within the state. Finally—as a NewJersey native and a recent migrant to theMidwest (I am an MBA/MPP student atthe University of Michigan)—I thoroughlyenjoyed every palm tree and ray of sun-shine the Aloha State had to offer.

Josh HatchMAP InternI am thrilled to be apart of RMI. Comingstraight from com-pleting engineeringdegrees at Cornell

(BA) and Stanford (MS), I have beenassigned to both the Built Environment andthe Energy & Resources Teams. For theEnergy & Resources Team, I have beenworking on a long-term energy strategy forHawai‘i—researching historical data andestimating the future potential of efficiencyand biofuels—as the state tries to achievefossil-fuel independence. The BuiltEnvironment Team has me analyzing greenbuilding projects pursuing LEED certifica-tion. Additionally, I am developing a data-base of energy-efficiency measures for build-ings. With five months of my fellowship stillahead, I am hoping to take these projects tofruition and become involved with otherprojects as well.

Stephanie L.JohnsKonheim FellowI am a fellow withthe IntegrativeDesign Team (IDT)in Snowmass. My

degree is in engineering science and I havea minor in earth sciences. Before coming toRMI, I completed a semester program insustainable design at the Ecosa Institute inPrescott, Ariz. My work here has involvedresearch and data collection to support theID Team. The Team’s current effort focuseson the implementation of Winning the OilEndgame in the transportation arena, andmy tasks include research into plug-inhybrid vehicles, advanced batteries, andheavy-truck efficiency. I also take part in var-ious other initiatives and client work. Mywork not only supports IDT projects, butalso helps keep RMI knowledgeable aboutrecent advances in technology and industry,such as the latest advanced batteries.

Jonathan KevlesFrantz InternI began work atRMI on July 5 andimmediately hit theground running,assisting Michael

Kinsley in preparing materials for a Julystaff retreat and a National SolutionsCouncil (NSC) meeting. The materialswere for Michael’s presentation on“Sustainable Communities,” and the cen-tral question posed to NSC members andRMI staff was, “What should RMI’s role bein the growing field of work in helpingcities achieve sustainability?” The materialsand presentation have since generated anexciting conversation about this question,and will help me over the next six monthsas I develop a business plan for thisexpanded area of work for the Institute.

Nils LehmannI recently graduatedwith a master’sdegree in mathe-matics from McGillUniversity inMontreal. Working

with Kyle Datta and other members ofRMI’s energy group, I currently apply con-cepts of financial risk management to theenergy sector. One of our particular inter-ests is to show how utilities can hedgeagainst fossil fuels risks by investing inrenewables. I am currently based in RMI’sKona office and will conclude my intern-ship at Snowmass. Working for RMI isboth great fun and a wonderful learningexperience. Coming to Hawai‘i as aGerman during the 2006 World Cupproved to be a great choice, as Kyle’senthusiasm for soccer has already led totwo fun encounters with Kona’s organicfarmers.

Editor's note: This summer and fall,RMI is playing host to twenty-oneinterns and fellows. Here, they tell uswhat they’re up to.

13RMISolutionsF a l l 2 0 0 6

What Are You Doing?

Dan LeistraSemmer InternI spent the summerin RMI’s office inKona, working pre-dominantly onrenewable energy

issues for the Hawai‘i Energy Strategy, a setof policy guidelines RMI is crafting in con-junction with the state’s Department ofBusiness, Economic Development &Tourism. One of my main tasks for thisproject was to build a mathematical modelshowing how energy technologies improveover time as manufacturers gain moreexperience and scale up their operations.The model also catalogued the potentialfor increased renewable energy use inHawai‘i, and predicted future prices for dif-ferent energy options at various sites. Iplan to continue working in the field ofenergy policy and economics as I finish mymaster’s degrees in environmental manage-ment and business at Yale.

Elizabeth LokeyArgosy FellowI’m an environmen-tal studies Ph.D.student at theUniversity ofColorado and I’m

working with RMI’s Energy & ResourcesTeam in the Boulder office as an ArgosyFellow. I assist Energy Team members bydoing research on a variety of topics,including the creation of a carbon offsetstandard, tools to assess the local eco-nomic benefits of renewable energy andenergy efficiency, and the value ofethanol and biodiesel coproducts. Priorto starting my doctoral program, I taughtmiddle and high school Spanish and sci-ence at Vail Mountain School for fouryears. I’m an avid traveler, kayaker, biker,teleskiier, and soccer player.

Eric Maurer Stanback InternMy work with theBuilt EnvironmentTeam has beenincredibly diverse. Icreated and imple-

mented an on-line survey concerning high-performance schools for the State ofHawai‘i’s Department of Education.Together with another Boulder intern, Iconducted research on barriers to incorpo-rating energy efficiency measures in corpo-rate real estate. I also established energy,water, and waste baselines for a largemixed-use development and providedassistance on numerous LEED consultingprojects. Away from work, I enjoy thecamaraderie of my fellow Duke andStanford interns while hiking and bikingaround Colorado.

Lisa MoravanAs an IntegrativeDesign TeamFellow, I aminvolved in a vari-ety of projects. I amthe project manager

on the Cuyahoga Regeneration Project, anurban renewal effort focusing on part ofthe Cuyahoga River in Cleveland, Ohio. Iam also working with a major university toformulate its strategic investment plan insustainable environmental enterprise sys-tems and technologies. In addition, I amon the implementation team for RMI’s roll-out of a new project management andresource planning software. Finally, I chairRMI’s Continuous Quality Improvement(CQI) team, which monitors issues affect-ing RMI employees’ quality of life. Theteam is currently writing RMI’s core valuesstatement by collecting input from all RMIstaff and managers. No small task, but defi-nitely a worthy one!

Susan RichSemmer InternAs a recent gradu-ate from Kent StateUniversity’s VisualCommunicationDesign program, I

am excited about the opportunity to workwith RMI’s Snowmass-basedCommunications Department. Sincearriving in mid-July my projects haveranged from “thank you” brochures forrecent RMI events to more extended pro-motional and marketing pieces for theInstitute. I look forward to creating newsigns for the Institute’s Headquartersbuilding, as well as helping with aredesign of RMI’s website. Since myrecent move from Ohio, I have beenenjoying hiking, biking, and travelingthroughout Colorado.

Melissa SemcerStanback InternThis summer, Ihave been fortu-nate to work on avariety of projectswith the Energy &

Resources Team and the BuiltEnvironment Team; however, my majorfocus has been on creating a model thatexamines the economics of producingbiodiesel in the State of Hawai‘i. Hawai‘iis currently examining its alternativeenergy options to ensure secure energyresources for the future. I also recentlyfound myself elbow deep in pasta saladin preparation for the NSC weekend inSnowmass—quite an experience! I amcurrently pursuing a master’s degree inenvironmental management—focusingon environment and business—at DukeUniversity.

14 RMISolutionsF a l l 2 0 0 6

What Are You Doing?

Imran SheikhSince last fall I havehad the pleasure ofworking withAmory, primarily onan engineering edu-cation initiative enti-

tled Factor Ten Engineering (10xE). Weare developing a casebook to teach engi-neering students and practicing engineersthe methods and benefits of whole-systemdesign. In RMI’s consulting practice wekeep seeing the same design errors overand over, and rather than correcting theseerrors in minute particulars, it would be farmore effective to change engineering peda-gogy and practice so these errors don’toccur in the first place. Factor TenEngineering should be instrumental inimproving the mindware of future engi-neers so that they are prepared to designfar more efficient (and more profitable)solutions.

Aaron SilvermanI am working withRMI’s Energy &Resources consult-ing group in Kona.Our team, led byKyle Datta, RMI’s

Senior Director of Research & Consulting,is collaborating with the Hawai‘i govern-ment to formulate the state’s long-termEnergy Strategy. This is a very excitingproject as Hawai‘i has an abundance ofnatural resources to move the state awayfrom its heavy dependence on importedoil. I have been analyzing the historicalenergy demands across all sectors as partof our efforts to forecast future patterns ofconsumption. This internship has been avaluable learning experience and will serveas a foundation for continued work in thefield of sustainability.

Ankit SinghviWhat am I doing?Put simply, movingfrom one heaven(Hawai‘i) to another(Aspen). In Hawai‘i,I worked with

RMI’s Kyle Datta in developing a WTOEmodel for India, factoring in the demo-graphics and dynamics of a one-billion-peo-ple-strong country. I was also part of theHES 2020 team, and focused on the pro-cessing and distribution of biofuels in thestate of Hawai‘i. Gripped by soccer fever,our group also played a couple of gameswith local organic farmers. Currently, I amat RMI headquarters, working with Amoryon his potential visit to India and develop-ing broad recommendations for the coun-try in areas relevant for RMI.

Ryoto UchidaStanback InternI am a master’sdegree candidate inthe environmentalmanagement pro-gram at Duke

University. I have been working at RMI ona project to establish a carbon offset proto-col that would harmonize a number of dif-ferent regional greenhouse gas (GHG) miti-gation programs in the United States (e.g.,RGGI in New England and GHG programsplanned in California, Oregon, etc.) by pro-viding offset credits that are fungibleamong the programs in a credible manner.I have also been studying insurance prod-ucts that are useful for the carbon offsetprojects, such as energy saving insurance(ESI), carbon-credit delivery guarantees(CDG), and replacement insurance forafforestation and reforestation (A/R) car-bon offset projects.

Bryn WeaverI joined the Energy& Resources Teamin February 2006,and helped lay outa set of strategiesfor resource plan-

ning and energy efficiency measures for aMidwest utility in the context of theirheavy reliance on coal and a risky futureregulatory market. My work centeredaround comparing various greenhouse gasreporting protocols, evaluating carbon off-set providers and the state of the carbonmarket, and recommending the least-riskstrategy to plan for future growth whilemitigating future impacts from a carbon-constrained power market. During thesummer months I worked on models fortransportation efficiency measures,methane-recapture projects, and assembleda greenhouse gas supply curve for aCalifornia utility.

Aaron WestgateAmory has been agreat inspiration inmy life for years,and I am honoredto have the oppor-tunity to work with

him. Ultimately, my job is to help makeAmory more effective in his mission ofsaving the world, having fun, and mak-ing money by compiling and organizinghis hundreds of papers on energy andother issues. No small task, but an excit-ing one that continually exposes me toenlightened thinking and problem solv-ing. There are few places in the worldwhere you can work to simultaneouslyeliminate resource wars, climate change,and the energy crisis. After I finish mywork at RMI, I plan to continue globe-trotting, studying whole-system design,and working with communities ofinspired people.

15RMISolutionsF a l l 2 0 0 6

RMI Supporters

Contributions to RMI between 1 May 2006 and 31 July 2006

VISIONARIES$100,000 & aboveWilliam & Flora Hewlett FoundationFred & Alice Stanback

PATHFINDERS$50,000 - $99,999Rachel & Adam Albright

INNOVATORS$25,000 - $49,999The Charles Evans Hughes Memorial

Foundation, Inc.

PIONEERS$10,000 - $24,999Argosy FoundationAnn B. & Thomas L. FriedmanThe Alice P. & L. Thomas Melly FoundationMineral Acquisition Partners, Inc.,

Jane Woodward

INTEGRATORS$5,000 - $9,999AnonymousJames & Wendy ArestyMolly Beattie & Tom BedellJessica & John FullertonColleen & Bud Konheim,

in honor of Eric KonheimThe Philanthropic Collaborative,

Richard G. RockfellerCoYoTe PhoenixR.E.M./Athens, L.L.C.The Streisand FoundationWarren Wilson College

OPTIMIZERS$1,000 - $4,9993 Form, Inc.Adobe Systems IncorporatedAnonymous (2)Carolyn BrodyRobin & Dan CatlinCharles Cunniffe ArchitectsFreddy & Rosita Choi,

in honor of Eric KonheimCingularCottle Carr Yaw ArchitectsJohn & Marcia DonnellMary K. Dougherty & Erik Neumann,

in honor of Eric KonheimEarth ShareDoug & Peggy GraybealDavid Henry & Elaine PlyHarold W. JanewayCalleen & Francois Letaconnoux,

in honor of Eric KonheimDouglas & Susan LinneyJacqueline Merrill & James E. Hughes, Jr.Mary Sue & William F. MorrillMorrow Family Foundation, Inc.Refuge Sustainable Building Center, Inc.Philip E. RichterRMH FoundationSankyo Seiko Co., LTD,

in honor of Eric KonheimSusan & Ford SchumannBradford G. Stanback &

Shelli Lodge-StanbackGarret SwartWichita Falls Area Community Foundation –

John Hirschi Donor Advised FundWilliam B. Wiener, Jr. FoundationB. Wu & Eric Larson

STEWARDS$500 - $999Marla & Joel AdamsAnonymousCarter F. & Suzanne Bales,

in honor of Eric KonheimJeff Banks, in honor of Eric KonheimMarkell BrooksSally ColeLois-ellin DattaKathryn FleckStephen P. Hanson, in honor of Eric KonheimEmily & Numa C. Hero, IIIPeggy Hill & Julie CoyThe Arie Kurtzig Memorial FundEve & Michael MacDonaldConnie Moak Mazur & Jay Mazur,

in honor of Eric KonheimCharles P. McQuaidGerard O’NeillHope & Paul R. Rudnick,

in honor of Victor & Darlene LissSEED, Northwestern University,

in memory of Phil SemmerGordon & Carole SegalPhilip & Dorothy Silber,

in honor of Eric KonheimChris Smith & Toni Zurcher

IN-KIND CONTRIBUTIONSAustralian Artisanal, John BeattyMary Kay BoggsColorado Audio-Visual, Inc.John EmerickBruce KatzDarrell & JoAnn LafitteSnowmass ChapelMark ThomasVal’s GourmetWoody Creek Tavern

We also want to thankthose individuals whohave contributed toRMI through EarthShare, the combined

federal campaign, and other work-place charitable programs. If youwould like to have RMI as a charitableoption in your workplace campaign,please contact our DevelopmentDepartment at (970) 927-3851.

The following people have notifiedus that they have included RMI in

their wills and/or trusts. We aregrateful to each of them.

Esther & Francis BlighJoanne & Mike Caffrey

Virginia CollierAnne CookeRichard Ford

Stanton KloseErika Leaf

Joan SemmerJoel Shapiro

Marge Wurgel & Keith Mesecher

WillsBelow is suggested wording for including

RMI in your will. But we also suggest you

consult your attorney.

“I hereby leave _____ percent of my

estate (or a fixed amount, specific prop-

erty, or the remainder of my estate) to

Rocky Mountain Institute, a Colorado

nonprofit corporation, whose purpose is

to foster the efficient and restorative use

of resources to make the world secure,

just, prosperous, and life-sustaining.”

16 RMISolutionsF a l l 2 0 0 6

NNaattiioonnaall SSoolluuttiioonnss CCoouunncciillCo-Chair Elaine LeBuhn • Co-Chair Douglas Weiser • Honorary Chair Kathryn Finley

Maryvonne and Curtis Abbott

Mary and John Abele

Rachel and Adam Albright

Pat and Ray Anderson

Anonymous (6)

Wendy and Jim Aresty

Molly Beattie and Tom Bedell

Pamela and John Blackford

Rita and Irwin Blitt

Wendie Kellington and Josh Bratt

Margaret and Andrew Brigham

Steve Campbell

Robin and Dan W. Catlin

Ann and Doug Christensen

Sally Cole

Bob Fox, Cook + Fox Architects

Hilary and Kip Crosby

Charles Cunniffe

Beth and Ravenel Curry

Lois-ellin Datta

Martha Davis

Susan and Jon Diamond

Marion Cass and Stephen Doig

Drs. June and David Ewing

The Fackert Family

Judith Barnard and Michael Fain

Suzanne Farver

Kathryn Finley

Kathryn Fleck

Angela and Jeremy Foster

Ann and Tom Friedman

Jessica and John Fullerton

Jennie Muir-Gordon and Mark Gordon

Dana and Jonathan Gottsegen

Christina Grandy and Llewellyn Wells

Diane Troderman and Harold Grinspoon

Christina and Christopher Guido

Margie and John Haley

Marcia and John Harter

Elaine Ply and David Henry

Jessica Herzstein

Judy Hill

Abigail and Mark Horowitz

Jacqueline Merrill and James E. Hughes, Jr.

Holly Hunt

Nancy Reynolds and Logan Hurst

Mary and Michael Johnston

Bruce Katz

Colleen and Bud Konheim

Karen and Thomas Konrad

Elaine and Robert LeBuhn

Nancy Gerdt and Glenn Lyons

Jane Sharp MacRae and Duncan MacRae

Betsy and Lou Matlack

Lee Melly

James T. Mills

Sandra and Michael Minaides

Barbara Mitchell and Robert Boyar

Cyndi and Jerry Mix

Karen Setterfield and David Muckenhirn

Kelly Erin O’Brien and Martha Watson

Melinda and Norm Payson

Marty Pickett and Edgell Pyles

Sara Ransford

Xiaomei and Joseph Reckford

Nancy and Cy Rich

Emily M. Sack and Robert J. Schloss

Seymour Schwartz

Joan Semmer

Toni Zurcher and Chris Smith

Srinija Srinivasan

Alice and Fred Stanback

Robin and David Swartz

Nancy Kitzmiller Taylor

Lynda and Douglas Weiser

Jane Woodward, Mineral Acquisition Partners

Sue and Jim Woolsey

B. Wu and Eric Larson

RMI Supporters

Members of the National Solutions Council are:• Invited to participate in various discussions with RMI staff and/or

Board of Trustees about global issues.• Special invitees to RMIQs (RMI’s Quest for Solutions presentations) and other RMI events.

• Sponsors of regional RMIQ lectures or series.• Recipients of advance notification of key upcoming RMI publications.

The NSC extends an invitation to all RMI donors of $1,500+ annually to join. Watch your mailbox for upcoming NSC events!For more information about the Council, please contact Development at (970) 927-3851 or develop@rmi.org.

17RMISolutionsF a l l 2 0 0 6

National Solutions Council

IF YOU MISSED THIS YEAR’S NATIONAL

Solutions Council (NSC) Weekend, July12–16, you missed one of the finest gath-erings the Institute has yet offered. Morethan forty members of the Council cameto learn about RMI’s activities spreadingthe message of energy and resource effi-ciency and about our on-the-ground workimplementing Winning the Oil Endgame.Like the NSC weekend in 2005, thisyear’s event was also a chance for Councilmembers to meet RMI staff (and viceversa) and learn how the Institute—withits multifaceted projects—functions.

In typical Rocky Mountain style, itkicked off with a trip to the Old West viathe Snowmass Village Rodeo, where RMIExecutive Director Marty Pickett and herhusband Edgell Pyles greeted RMI’s guestsfrom horseback. Marty and Edgell arefounding directors of the nonprofitSnowmass Western Heritage Association,which hosts the rodeo as a way to pre-serve western culture.

On Thursday and Friday mornings,NSC members chose from a variety ofactivities, including a tour of Fiberforge—an RMI spin-off developing advanced com-posites for the automotive sector—and afascinating tour of green buildings in theRoaring Fork Valley. Over the years, manyRMI supporters and friends haveexpressed a desire to participate in a char-rette,1 particularly a green building char-rette. The tour was designed to sharpenCouncil members’ knowledge of greenbuilding techniques and systems as, dur-ing the coming days, they were to gettheir chance.

The local green-building tour visitedthree buildings, two private residences,and one hotel, the Snowmass Golf CourseClubhouse, which in 2005 achieved Silverin the U.S. Green Building Council’sLeadership in Energy and Environmental

Design (LEED) building rating system andwon the Colorado Renewable EnergySociety’s Renewable Energy in BuildingsAward in the category of commercialbuildings. The Clubhouse boasts an excel-lent combination of energy-efficient andsolar design systems. The building’sdesigners estimate the Clubhouse is 60percent more efficient than similar, con-ventionally designed buildings. The homesvisited were the residences of Charles andDee Wyly and Jason and Kelly Elliot. TheWyly home is special for its air condition-ing systems. Located near a spring-fedpond, the home uses the “cool” tempera-tures of the pond (about 55°F) to cool thehome in the summer, and the “warm”winter pond water (about 45°F) to warmthe home in the winter. Pipes and pumpshelp heat exchangers in the pond and thehome dispel the wanted—and unwant-ed—heat and cold. It has been estimatedthat the pond system saves about 40 per-cent of the energy that would otherwisebe necessary to condition the home.Additionally, the home boasts sevenlarge masonry towers that, in the sum-mer, act as chimneys and allow hot airto rise out of the house while pulling inlower, cool air.

Meanwhile, the Elliot residence issomething of a local legend, as when it

was built it boasted one of the largest pho-tovoltaic arrays in the country.

After the tour, Council members had achance to participate in informal meet-ings with RMI staff on a variety of cur-rent research and consulting topics,including sustainable communities,Winning the Oil Endgame implementa-tion, and our ongoing work with utilities.On Thursday night, the Institute present-ed one of our RMIQ lectures—this oneentitled “Strange Bedfellows”—featuringa panel discussion with officials fromWal-Mart, the Pentagon, TexasInstruments, and RMI talking about why

NSC Weekend “Best Yet”B Y C A R O L I N E F L U H R E R

18 RMISolutionsF a l l 2 0 0 6

National Solutions Council

RMI Solutions is published three times a yearand distributed to more than 10,000 readers (by mail and online) in the United States andthroughout the world. © 2006 Rocky MountainInstitute. All rights reserved.

Letters to the EditorWe want to hear your comments. Please address all correspondence to:

Cameron M. Burns, EditorRocky Mountain Institute1739 Snowmass Creek RoadSnowmass, CO 81654-9199tel: (970) 927-3851fax: (970) 927-3420newslet@rmi.orgwww.rmi.org

For reprint permission, please contactnewslet@rmi.org. As a leader in promotingresource efficiency, RMI supports innovative recycled paper manufacturers. This publicationis printed on New Leaf EcoOffset (100% post-consumer waste, processed chlorine-free) usingvegetable-based ink. Contact New Leaf Paper formore information, (888) 989-5323. No new trees were used in the production ofthis newsletter, and we offer paperless electronicdelivery via our website or on request.

About the InstituteRMI is an entrepreneurial nonprofit organizationthat fosters the efficient and restorative use of nat-ural, human and other capital to make the worldsecure, just, prosperous, and life-sustaining. We dothis by inspiring business, civil society, and government to design integrative solutionsthat create true wealth.

Our staff show corporations, communities, individuals, and governments how to createmore wealth and employment, protect andenhance natural and human capital, increaseprofit and competitive advantage, and enjoymany other benefits—largely by doing what theydo more efficiently.

Our work is independent, nonadversarial, and transideological, with a strong emphasis onmarket-based solutions.

Founded in 1982, Rocky Mountain Institute is a §501(c)(3)/509(a)(1) public charity. It has a staffof approximately 50. The Institute focuses itswork in several main areas—business practices,climate, community economic development, ener-gy, real-estate development, security, transporta-tion, and water—and carries on internationaloutreach and technical-exchange programs.

RMISolutions

they work together.Saturday was reserved for the next

big event: a green building charrette.The jam-packed day came aboutbecause of frustrations expressed byDoug Weiser, Council Co-chair. Havingcompleted his supposedly top-of-the-lineenergy-efficient home in 2003, he wassurprised, three years later, to still bereceiving substantial monthly electricityand gas bills. Even with features like a3-kilowatt photovoltaic system, solarwater heating, radiant floor heating,proper siting, and appropriate landscap-ing, total electricity consumption for theproperty was more than 200 kilowatthours per day. To remedy the situation,Weiser called upon RMI’s BuiltEnvironment Team and his fellow NSCmembers. As an extremely gracious hostfor the first ever NSC Design Charrette,Doug challenged the RMI/NSC team tobrainstorm concepts to reduce the envi-

ronmental impact of his family’s home.After presentations by several world-

renowned green-building consultants,attendees broke into small groups facili-tated by RMI staff. Guided by a“Sustainability Gameplan” worksheet,each group worked to generate goals,solutions, and challenges for the topicsof environmental footprint, energy,water, and lifestyle—at the end of theday delivering a raft of ideas for Dougand his family, from lighting motion sen-sors to trombe walls. All wereimpressed with the charrette processand how its open exchange of ideasenhanced the creativity of the atten-dees.

The weekend wrapped up in typicalAspen fashion—with a picnic on thelawn beside the Benedict Music Tentand a concert by the Aspen FestivalOrchestra and pianist Leon Fleisher andviolinist Sarah Chang.

The Institute’s DevelopmentDepartment is already planning the nextNSC weekend as well as a celebrationof RMI’s 25th Anniversary with a goalof connecting Council members toRMI’s far-reaching, all-important work.Council membership offers exclusiveaccess to most aspects of the Institute’soperations. And, the opportunity to net-work with other like-minded individualshas proven to be both popular and ben-eficial to members. For additional infor-mation about the Council, please con-tact the Development Department at970-927-3851 or develop@rmi.org.

Caroline Fluhrer is an Intern with RMI’sBuilt Environment and Energy &Resources Teams.

1 An intensive workshop that enablesdesign teams to use whole-system thinkingto explore the interconnections among vari-ous building elements.

19RMISolutionsF a l l 2 0 0 6

Rocky Mountain Institute1739 Snowmass Creek RoadSnowmass, CO 81654-9199

C H A N G E S E R V I C E R E Q U E S T E D

NON-PROFIT ORG

U.S. POSTAGE PAID

PERMIT #90

GLENWOOD SPRINGS, CO

RMI Adopts the “2030 Challenge”

An Expedient Path Through an Inconvenient Truth

Energy-Efficiency Managers and Economic-Development Directors

The Magic of Windows, Part 1

Factor 10 Engineering for Sustainable Cities

1

4

6

8

8

10 Editor’s Notes: Dances With Batteries

11 Life at RMI: Embedding RMI Recommendations in the Military

12 Staff Spotlight: Jeff Ronning

13 What Are You Doing?

16 RMI Supporters

18 NSC Weekend

Features In Every Issue

RMISolutionsRMISolutionsR o c k y M o u n t a i n I n s t i t u t e ° V o l u m e x x i i ° # 3 ° F a l l 2 0 0 6