Clean Ops Blog

Start Planning for USA TODAY’s Dealer Innovation Award – this is an awesome marketing and PR opportunity!

Nominations for the USA TODAY Dealer Innovation Award will begin at the end of this year for the 2009 contest.

Four winners will be chosen and will be featured in a full-page ad in USA TODAY and NADA’s AutoExec magazine. And one grand winner, selected from among the four, will be honored at a special ceremony held in conjunction with the New York International Auto Show, and will receive roundtrip airfare and hotel accommodations for two in New York City and two VIP auto show passes.

If your dealership or one you know has successfully implemented initiatives that resulted in significant energy savings and reduced utility costs, you should nominate that dealership for the award.

Examples include:

•    Switching to more energy-efficient lighting, heating or cooling
•    Adding insulation or coatings to buildings, heaters, or windows to reduce energy use.
•    Increasing exterior plantings to reduce water runoff, provide shade or lower the effects of pollution.
•    Installing more eco-friendly building materials.
•    Creating, monitoring or using equipment differently to save energy or supplies.
•    Recycling or reusing to create less waste.

2008’s Winner was Jim Hand of Hand Motors in Manchester, Vermont.

He saved more than $50,000 by making upgrade to his dealership and by becoming the first carbon-neutral dealership in the state.

Here are some of the upgrades Hand employed:

• Uses 100% waste motor and vegetable oil to heat his new 11,200 square foot service area, saving more than $15,000 a year on heating oil.
• Installed energy efficient lighting that saves another $10,000 per year in energy costs.
• Buys renewable wind energy credits to offset the store’s electrical usage.
• Shuts down all computer terminals at night.
• Installed motion detectors in vending machines so they only light up as a person approaches.

For more information, visit:

http://www.nada.org/ProgramsAwards/DealerInnovationAward/

I’ll be sure to look for the date you can submit nominations and post it on the Clean Ops Blog.

Technorati Tags: clean tech autos, environmental autos, green award, Green Building, green dealerships

General Motors’ LEED-Gold Certified plant in Lansing, Michigan

For all the flack GM has taken in the marketplace for its gas guzzling vehicles, I have to hand it to them for stepping up to the plate with some solid green initiatives, from focusing on more fuel efficient and less polluting vehicles to their green building programs. As a manufacturer, GM gets double points for being green in both product and practice:

1. Making their products more environmentally friendly, and
2. Making the actual production process of their products more environmentally friendly. 

According to Kimberly Hosken of the U.S. Green Building Council, buildings in the United States consume 40% of our energy. This is why green building initiatives are a cornerstone of today’s clean technology movement.

GM actually built the first LEED-Gold Certified auto manufacturing facility, in Lansing, Michigan, which was the first its kind, not to mention the largest and most complex manufacturing site, to ever receive this level of LEED certification.

Worth viewing, for both information and inspiration, are GM’s promotional videos on their green initiatives:

http://link.brightcove.com/services/player/bcpid824493250

The press release – “GM Opens First-Ever LEED-Gold Certified Automobile Manufacturing Facility” - can be found here:

http://www.gm.com/corporate/responsibility/environment/news/2006/leed-cert_080406.jsp

Despite of the economic doom and gloom littering the media these days, this puts wind in my sails.

Ford, what they hay???

Technorati Tags: clean tech cars, energy savings, environmentally-friendly, Green Building, green dealerships, green manufacturing, green tax savings

Recently I had a great conversation with Chris Henderson, operations director, and Matt Rader, green building cost segregation director, of SourceCorp Professional Services, the leading provider of specialized tax services in North America. Undoubtedly, the idea of dealerships becoming environmentally sustainable is a story that makes all of us feel good. But when it comes to “going green” being financially viable, these guys are where the rubber hits the road. SourceCorp has been providing LIFO accounting services to dealerships for over 25 years, and now offers green building tax deduction analysis and certification to help dealers get the maximum tax advantages for green building practices.

A special thanks to Doug Morrell, SourceCorp’s director of marketing, for introducing us. I was doing a little research on my own, and “cold called” Doug, and he immediately put me in touch with Chris and Matt, who had so much information to share that it made my head spin. It’s always best to get information straight from the horse’s mouth, so I encourage anyone interested in learning more, to contact Matt and Chris directly. I’ve included their contact info below.

Here are some key takeaways from our conversation:

The Best Dealership Candidates for the 179D Tax Deduction

The 179D Tax Deduction offers a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings. The Energy Policy Act of 2005 includes a tax deduction for investments in “energy efficient commercial building property” designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings.  The deduction applies for the years 2006, 2007, and 2008, and it’s expected that it will be extended. So, dealerships built within the past three years will most likely be eligible simply due to general environmental improvements in building practices over the past few years.

What do older dealerships do?  While making environmental upgrades does come with a cost, Chris noted that it’s negligible - at a 3-5% premium, and will pay off in the long run. As a marketer, I know that going green can also pay off handsomely in great marketing and PR for the dealership in the short run. Let your customers and local news agencies know your dealership cares about the environment and is doing it’s part to save energy, reduce waste, and create a healthier environment – both in the store and outside.

Easiest Ways to Go Green and Get the Tax Deductions

Lighting

The easiest and least invasive way for dealerships to implement environmental upgrades is with lighting. LED lighting technology, in particular, is leading the way in environmentally sustainable lighting. There’s more upside for bigger dealerships, as the deduction is measured in watts per square foot, with a $0.60 per square foot savings applied. However, even smaller stores can reap rewards in terms of energy cost savings.

One firm that Chris and Matt recommend for energy efficient lighting is LED Green Power:

LED Green Power
www.ledgreenpower.com

John Regan
Phone:  (831) 425-7922

Lindsey Lewis, co-author of the Clean Ops Blog also provided information on lighting in the post: “Going Green: Lighting.”

http://drivingsales.com/blog/cleanopsblog/2008/06/07/going-green-its-the-little-things-part-i-lighting/

LED isn’t the only type of lighting that can qualify; it’s just the most efficient.  There are types of fluorescent fixtures, like “T-5” for example, that can help reach the efficiency thresholds outlined in the 179D provision. 
 

HVAC

The next area where dealerships can win environmental benefits and potentially get tax deductions is via their heating, ventilating, and air conditioning systems. Implementing a geothermal heat pump, for instance, can offer a 10% tax credit. These pumps draw heat form the Earth to generate power. Costs for these pumps, as with many other “clean” technologies, are continuing to decrease as they gain wider spread adoption.

Dealers are also utilizing used motor oil as heat oil to reduce their operating costs and increase efficiency.  When installing a system, look for a high SEER or EER rating - the higher the number the more efficient the unit.
 

The Building Envelope

The third area is in the “building envelope” itself.  Proper insulation and “low-e” windows can also reduce energy costs and be used to apply for the deduction. Increasing the insulative properties of the ceiling and walls is also an option.  This could be as simple as adding thickness of the walls to add more insulation or installing very efficient wall systems like a structural insulated panel.  One supplier that can help with this is:

Green-Source Products
1170 Ivanhoe Road
Cleveland, OH 44110
www.greensourceproducts.com/

Joe Westfall
Vice President of Sales & Marketing
Phone: (216) 851-4641
Email: jwestfall@GreenSourceProducts.com

Take the Time to Determine if Your Store Qualifies

With the various pressures dealers are under today to reduce overhead costs, considering every possible tax advantage is worth looking into. And with stories on “going green” flooding the media today, it makes perfect sense for dealerships that have green initiatives to broadcast it as much as possible – just as you do your excellent customer service. Advertise that you’re a green dealership in your print advertisements, window stickers, posters in the store, your website, email campaigns, etc.

I highly recommend getting in touch with the folks at SourceCorp to learn more.

SourceCorp Professional Services: http://www.SourceCorpTax.com

Chris Henderson, Director of Operations
Email: Chris.Henderson@SourceCorpTax.com
Phone: 817.732.5494 x136
Mobile: 817.475.1943

Matt Rader, Green Building Cost Segregation Director
Phone: 817.732.5494 x133
Mobile: 214.762.5198
Email: Matt.Rader@SourceCorpTax.com
 

Technorati Tags: environmentally friendly dealers, green building practices, Tax Savings

Automotive News Hosts Green Dealerships Webinar

Kudos to Automotive News for hosting a webinar on green dealerships.

One of the presenters was Pat Lobb, owner of Pat Lobb Toyota and Scion of McKinney, Texas. Mr. Lobb can deservedly claim the title of true industry thought leader and innovator as Pat Lobb Toyota and Scion is the first dealership to achieve LEED certification from the U.S. Green Building Council.

While the initial first cost premium to set up was 5% to 7%, and the ROI is expected within three to five years – as they say in the MasterCard ads – the benefits to Lobb’s community, the environment, staff and reputation? – Priceless!

Lobb’s 56+ square foot/14+ acre facility is a verifiable poster child for green dealerships. Here are some of the key green features:

The Power of Landscaping - Above and Beyond Sheer Beauty

• The dealership faces east, allowing the hot sun to hit the rear of the building in the evening, and Japanese creeping ivy covers a “Green Wall” in the back, absorbing the heat.
• West and north panels covered in plants also absorb heat from the sun, keeping buildings cooler, and reducing energy use.
• The plants acts as biofilters
o Humidify dry air
o Adding oxygen to building surroundings
o Removes impurities from the air
• The dealership uses landscaping that is native to North Texas, such as buffalo grass.

Building Materials to Reduce Energy Use, Save Money, and Decrease Toxins

• Building material is comprise of an aluminum composite – 95% recycled aluminum
• Glass is “Low-E” - low emissivity – with a high ‘UV’ rating designed to maximize use of natural light to reduce interior lighting requirements
o Helps to control and moderate internal temperature
o Creates comfortable working environment with natural lights and views
o Entry portal made from special “no-lead” glass

Building Features in the Service Area

• High-speed overhead doors in the service area operate during the day to keep service department temperatures more consistent.
• After hours, a steel security door is closed over the high-speed doors.
• Heated in winter by burning waste oil collected from oil changes of customers’ vehicles.
• Remaining waste oil is sold to recyclers who use it to make plastics.

Lighting – More than Just Ambiance

Exterior Lighting Strategy

• Highest outside lighting levels concentration along property edges.
• A dual switching strategy allows lighting levels to be set back to security levels after reasonable marketing hours.
• 400W with a reflective backing versus 750W results in equal light with less wattage.

Interior Lighting Strategy

• Efficiency and emotion-creating elements are hallmarks of the dealership’s lighting design.
o T-5 fluorescent fixtures with electronic ballasts
o Metal Halide lighting simulate sunlight
o Light-Emitting Diode (LED) exit signs use 25% electricity

And a Water Strategy to Boot!

The dealership has its own 8,660 gallon water cistern.

• Captures water from condensation generated by 12 roof top A/Cs and 7 interior A/Cs, plus rain from a roof top collection system.
• Water is used to irrigate the landscaping.
o This landscaping is low in maintenance and uses little water. The irrigation system uses the underground "bubbler" watering system so the groundcover roots are watered, and less water evaporates into the air.
o It is the most efficient way to water any non-turf area, since the exact amount of water needed is delivered at or near plant roots.
o Benefits include design flexibility, healthier plants and the elimination of water run-off.

The Humble Car Wash – a Green Strategy there too

• The car wash is a “closed loop recycled system,” which recycles the water used in each wash.
• Also, a special system is being used to ionize the water in the car wash to eliminate having to blow dry each car.
• This system saves over 66% of the water normally lost in a traditional car wash and leaves a “spot-free” finish.

Education

In addition, Pat Lobb Toyota has earned LEED innovation points for its educational activities. Throughout the dealership, placards specify the “Eco-Elements” of each area. There is an educational area in the store displaying all of the “green” elements used to build the dealership.

Well done, Mr. Lobb!

Technorati Tags: green dealership tips, LEED certified dealership, Pat Lobb