Saturday 13 December 2008

Green Is the New Color of Lobbying

Makers of Energy-Saving Products See Opportunities in Big Stimulus Bill

By BRODY MULLINS
WASHINGTON -- Lobbying for green energy has become a red hot business here.
From electric cars to "green" roofs, companies that produce renewable fuels and energy-efficient products have snapped up Washington lobbyists at a rapid clip to get a helping hand from the federal government.
Nearly 300 green companies and industry groups have signed up Washington lobbying firms seeking tax breaks, research grants, contracts and other government business during the current two-year session of Congress, according to disclosure forms reviewed by The Wall Street Journal. That is an eightfold increase from the previous session.
The growth in the green-lobbying business is the offshoot of converging economic and political trends: Rising energy prices and concerns about global warming have created a need to find alternative energy sources. Meanwhile, the 2006 and 2008 elections have empowered Democrats who are more inclined to use the government to boost energy efficiency and renewable fuels. That has put billions of dollars up for grabs.

Green lobbyists are watching the coming economic-stimulus bill, which President-elect Barack Obama says will include grants and tax incentives for energy-efficient products and renewable fuels. Congress is expected to take up a broader energy bill and an energy-tax bill later that will be targets for green programs.
"It's all very positive for those in the energy efficiency and renewable energy industry," says Craig Silvertooth, executive director of the Center for Environmental Innovation in Roofing.
Mr. Silvertooth's trade association, which was founded earlier this year, is pressing for tax incentives to encourage commercial developers to replace their roofs with energy efficient materials.
Mr. Obama gave momentum to the green roofing group when he told NBC's "Meet the Press" last weekend that the country has "an enormously inefficient building stock and we can save huge amounts of energy costs, and reduce our dependence on foreign oil, by simple things like weatherization and changing the lighting in major buildings." Mr. Obama said that he will include such a proposal in the economic-stimulus package that he hopes Congress will pass early next year.
Lobbyists for scores of green companies see the stimulus plan as a ripe opportunity. The American Wind Energy Association and the Solar Energy Industries Association want to require as much as 20% of the nation's electricity to come from renewable sources. The Integrated Waste Services Association wants the government to require more fuel to come from municipal solid waste. Companies that seek to harness ocean waves to make energy want some help from the government.

A coalition of renewable-fuel companies wants to upgrade the electricity grid so they can expand the marketplace for their renewable electricity. The National Association of Homebuilders wants bigger tax credits for constructing energy-efficient homes.
The growing business for green lobbying has spurred some lobbyists to shift their focus. Sam Geduldig, a financial-services lobbyist, signed up the green-roofing association a few months ago and is close to making a deal with two other clients. Mr. Geduldig says "there are no bad meetings" when he brings renewable clients to Capitol Hill. "You go into a Republican office and they love the innovation and idea of putting energy back into the grid," he says between pitches. "Democrats love the green technology angle and encouraging conservation."
One company making the rounds this week was Cincinnati-based Advanced Mechanical Products Inc., which builds electric cars. The company's president and CEO, Jack Kuntz, has been on Capitol Hill seeking funding and tax incentives needed to increase his production from a few hundred cars a year to a few thousand.
On Tuesday, the company filed an application with the Energy Department for a $20 million loan from a federal program designed to encourage advanced technology vehicles.
For the past few days, Mr. Kuntz has parked one of his electric cars, a converted Saturn, on Capitol Hill to show off for lawmakers and aides. The car has a range of 150 miles with a battery that takes 3.5 hours to fully charge at a cost of less than $5. The electric cars cost a total of about $50,000 each, including the cost of a new Saturn.
Mike Dektus, a company spokesman, says the company would like a $7,500-per-car tax credit to make it more affordable to consumers. "Everybody who is involved in automotive these days is looking for tax credits," Mr. Dektus says.—T.W. Farnam and Brad Haynes contributed to this article.
Write to Brody Mullins at brody.mullins@wsj.com