Environmental Responsibility in the US and Beyond by tate cantrell

Views and Opinions on Green IT (Aug 5 2009) Cap and Trade , Emissions

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   Following up on one of my recent blogs about the UK government’s push for carbon reduction, I thought I would discuss some recent developments that have taken place with the United States’ new cap-and-trade plan to address the issue of carbon emissions.  The American Clean Energy and Security Act of 2009 (ACES) introduces a variant of a "cap-and-trade" system with market-based incentives to reduce carbon pollution through the use of energy efficiency and clean energy technologies. Companies that do not reduce their carbon emissions will pay more for pollution allowances. The bill was recently approved by the House of Representatives on June 26^th and will next be voted on by the Senate.  The new plan is already gaining significant attention amongst businesses, the media, and the world at large as it marks the first time either house of Congress has approved a bill associated with reducing carbon emissions and overall impact on climate change in the US. 

    

   Like the UK’s Climate Change Bill, the ACES plan will cause changes in the way data centers and many companies are managed and monitored for power consumption.  The bill requires a 17-percent emissions reduction from 2005 levels by 2020 and a total of 80 percent reduction in US emissions by 2050.  Further impacting the data center community, this bill calls for limiting emissions of hydrofluorocarbons, a group of chemical compounds commonly used in refrigeration and air conditioning, as well as a renewable electricity standard that would aim to have 25 percent of US electricity come from renewable sources (such as wind, solar, and geothermal) by 2025.  As a result of these restrictions, the government expects an increase in revenues of over $845 billion over the next ten years alone.  Where will this money come from?  From consumers and companies alike – and the vast majority as a result of increasing electricity costs.  New pressures on electricity cost from environmental regulations coupled with the consistently upward trends in energy demand will only accelerate the increase of energy costs as a percentage of data center cost of operation.

    

   As companies ponder their fate with this and other green legislature materializing, many are searching for the best way to adjust their data center strategy to excel in changing times.  While we shouldn’t expect a Cash for Data Center Clunkers initiative to emerge any time soon, there are options for minimizing regulatory impacts to a company’s bottom line.  One of the more interesting discussions for businesses and data center operators surrounds the opportunity for companies to move their data centers to remote locations where they can maximize efficiency in design and minimize costs in operations. Companies that are looking to get real value out of this approach would need to be very careful when evaluating optimal locations from a total cost perspective.  This motivation may bring a great deal of companies here to Iceland and other areas whose environments are more naturally suited to accommodate a data center in an energy-efficient manner.  More restrictions are bound to come into play for operators as countries continue coming together to discuss legislation and the race for clean air endures.  No matter what companies decide to do in the future, green planning is going to come into play all over the world.

   
   

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