NSI News Blog

New Energy Star program promotes commercial building energy efficiency

2010-06-25T15:19:00.002-04:00

By Bruce Gruenewald

Director, Sustainability Operations

A new Energy Star pilot program designed to further improve commercial building energy efficiency offers state and local governments another way to meet their greenhouse gas reduction (GHG) targets..

The U.S. Environmental Protection Agency, in partnership with several states and utilities, introduced the Building Performance with Energy Star program last month. It will link eight Energy Star partner utilities and state energy efficiency programs throughout the country in a pilot designed to strategically pursue whole-building energy improvements with commercial customers, according to a Department of Energy newsletter.

Modeled after the successful Home Performance with Energy Star program, Building Performance with Energy Star will provide a framework for regional energy efficiency programs to align their financial incentives and technical assistance with a comprehensive approach to building upgrades, according to the EPA press release.

The new program includes several key elements to help states and utilities promote an inclusive strategy for improving energy efficiency, including measuring energy use, approaching energy efficiency opportunities based on building assessments, and creating a delivery network for whole building efficiency services. It will also reinforce the Obama Administration’s clean energy investment effort by helping to reduce energy use in commercial buildings, which accounts for 17 percent of U.S. greenhouse gas emissions at a cost of over $100 billion per year.

NSI will certainly look to this program as a tool for clients capable of assisting state and local governments in ways that meet their energy efficiency objectives.

Bruce Gruenewald is the Director, Sustainability Operations for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. Prior to joining NSI, Mr. Gruenewald served as a program manager on several US EPA contracts. He provided technical leadership for the contracts, supervised multi-disciplinary consulting staffs, and managed the business and contractual relationships with the government. He also positioned his employers for new business opportunities in federal, state, and local markets, evaluated potential teaming partners, and wrote proposals and developed pricing and cost strategies in response to RFPs. Prior to working in the federal contracting field, Mr. Gruenewald worked for the US EPA for 8 years, the last two as the Lead Economist on the Superfund reauthorization task force where he advised legislative negotiators and political appointees on the economic, budgetary, and programmatic impacts of various legislative proposals to reauthorize the Superfund program. Mr. Gruenewald graduated with honors from Saint Louis University with a BA in Economics. He also holds an MPA from George Washington University and is an associate member of the American Bar Association’s Section on Environment, Energy, and Resources.

Reports indicate life after stimulus for clean energy

2010-06-17T14:21:00.001-04:00

By Bruce Gruenewald

Director, Energy and Environmental Operations

Reports continue to indicate the clean energy sector’s strength despite the recession and uncover signs pointing toward steep growth in the coming years. Perhaps there’s life after stimulus after all?

A recent report from Bloomberg New Energy Finance noted that worldwide financial investment in clean energy, including wind farms, solar parks, biofuel plants, and other projects, as well as public market, venture capital, and private equity financing for clean energy companies reached $27.3 billion in the first quarter of 2010. That level represents an increase of 31 percent from the first quarter of 2009 but is down 13.6 percent from the fourth quarter.

However, Bloomberg expects clean energy investments to set a record in 2010, possibly reaching $200 billion. And the U.S. Department of Energy’s Energy Information Administration predicts renewable energy will be the fastest-growing source of energy throughout the world over the next 28 years. According to highlights of an EIA report released last month, International Energy Outlook 2010, the anticipated growth will meet a projected 49 percent increase in world energy use.

The American Recovery and Reinvestment Act has so far been the main driver of the U.S. clean energy market. Critics have suggested there won’t be a return on that investment or that if the investment has to be made in the first place, it’s an artificial marketplace. The recent reports blow those theories out of the water.

I believe these signs most certainly suggest there’s life after stimulus funding. The stimulus primed the pump. And there’s no stopping it now.

Bruce Gruenewald is the Director, Energy and Environmental Operations for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. Prior to joining NSI, Mr. Gruenewald served as a program manager on several US EPA contracts. He provided technical leadership for the contracts, supervised multi-disciplinary consulting staffs, and managed the business and contractual relationships with the government. He also positioned his employers for new business opportunities in federal, state, and local markets, evaluated potential teaming partners, and wrote proposals and developed pricing and cost strategies in response to RFPs. Prior to working in the federal contracting field, Mr. Gruenewald worked for the US EPA for 8 years, the last two as the Lead Economist on the Superfund reauthorization task force where he advised legislative negotiators and political appointees on the economic, budgetary, and programmatic impacts of various legislative proposals to reauthorize the Superfund program. Mr. Gruenewald graduated with honors from Saint Louis University with a BA in Economics. He also holds an MPA from George Washington University and is an associate member of the American Bar Association’s Section on Environment, Energy, and Resources.

Offshore wind market could take off

2010-06-09T14:52:00.000-04:00

By Bruce Gruenewald

Director, Energy and Environmental Operations

With the nation’s first offshore wind project approved after a contentious nine-year battle between government officials and a wealthy opposition group, investors and developers might gain some long-awaited opportunities along the coastline.

The controversial Cape Wind project in the waters of Nantucket Sound “will be the first of many projects up and down the Atlantic Coast,’’ Interior Secretary Salazar said at a Massachusetts State House press conference with Governor Deval Patrick at his side. According to the Boston Globe, Cape Wind will create 1,000 construction jobs and help the state in its goal to be a national clean energy leader.

The move paves the way for additional offshore wind projects to move forward. . In the end, regulators determined that the environmental, cultural, and aesthetic impacts of the project could be effectively mitigated, providing a much-needed victory for renewable energy and the offshore wind industry.

Unlike intermittent energy gleaned from solar panels or onshore wind farms, offshore wind offers a sustained energy supply that generally results in lower environmental and aesthetic impacts. Wind farm projects are proposed in numerous other states, several of which are being developed by one company in Delaware, Maryland, New Jersey and New York.

Offshore wind provides yet another example of a largely untapped renewable energy source for the nation’s energy portfolio. While no single renewable energy source will meet all of America’s future energy requirements, renewable sources of energy will reduce our dependence on fossil fuels. We need look further than the spill in the Gulf to be reminded of the environmental and human costs associated with our fossil fuel dependence.

Found money good news for all

2010-05-13T13:18:00.001-04:00

By Kevin Matthews

Vice President, Energy and Sustainability Sector

The Obama Administration has done its share to create new opportunities for the energy and sustainability markets. As it turns out, there are even more worth billions of dollars within existing federal programs.

The Washington, D.C.-based U.S. Green Building Council released a report last month that concludes the Administration has the ability to use more than 30 existing federal programs worth $72 billion to enhance efficiency in commercial buildings and multifamily housing, with no new legislation.

The report is a legal analysis sponsored by leading organizations in energy, housing, environment and real estate. According to a press release, the report concludes that the Obama Administration is authorized to play a more active and supportive role in encouraging and progressing the energy efficiency and sustainability of America’s multifamily and commercial building stock.

“As an early adopter of green buildings and the LEED green building certification system, the federal government has been a leader in bringing green buildings to cities and towns across America,” stated Roger Platt, Senior Vice President, Global Policy & Law, USGBC. “This new report unveils an even larger opportunity for the Obama Administration to increase our nation’s energy efficiency, while creating thousands of jobs and saving taxpayers money.”

The report presents an extensive menu of options, across an array of programs, which the Obama Administration could begin implementing immediately without having to seek new funds or authority from Congress.

This is all refreshingly good news for a very diverse bunch; the public sector, fiscal conservatives, environmentalists and an industry that is projected to contribute $554 billion to the U.S. gross domestic product from 2009-2013.

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.

Green definition varies, but doesn’t really matter

2010-05-06T16:44:00.000-04:00

By Kevin Matthews

Vice President, Energy and Sustainability Sector

The U.S. Department of Commerce issued a report last month that indicates — as many have over the past several months — that the green sector of the U.S. economy appears poised to grow quickly.

We already knew this, but it’s always nice to hear.

The report also said a lack of data and multiple definitions of “green” make identifying trends difficult. Specifically, the “green share” of total product shipments in the manufacturing sector grew from 1.3 percent in 2002 to 1.4 percent in 2007, using a broad definition of what constitutes “green,” according to a press release. Using a narrower definition led to a finding of zero growth between the two years, according to charts in the document.

The report surmises consumer demand for green products and services and high energy prices that create incentives for firms to develop more energy-efficient goods and services are driving growth.

Exactly.

Regardless of the trends, we’re moving in the right direction. And government has been and will continue to be a crucial driving force as we navigate the road ahead.

In fact, here’s what Commerce Secretary Gary Locke said in a statement accompanying the report:

“The Obama Administration's agenda for economic recovery depends in part on efforts to develop clean energy and energy-efficiency technology. These reports provide important insights and are a valuable foundation to measure our success as that agenda moves forward.”

And as that agenda moves forward, the private sector would do well to incorporate a strong government strategy within business development plans. Executives might also want to brush up on their knowledge of Environmentally Preferred Purchasing directives.

We’re moving in the right direction, but now is definitely not the time to cruise.

After 40 years, it’s all about energy

2010-04-22T08:09:00.001-04:00

By Bruce Gruenewald

Director, Energy and Sustainability Operations

For environmentalists, surely each Earth Day has marked another year of climbing the proverbial uphill battle. First, it was all about a whole lot of cleanup — the air, the water, litter along the highways. Some time later recycling was all the rage as a means of reducing waste streams.

Today, on Earth Day’s 40th anniversary, our efforts to effect environmental change have everything to do with energy and how it’s generated and used. The past few years have seen huge strides in this vein, from building retrofits, including numerous DOE programs and ARPA-e. Also, the new HomeStar program, currently in development, will provide incentives for homeowners who make energy efficiency investments in their homes. These accomplishments save money, improve the efficiency of the energy we already use and achieve environmental benefits.

It occurs to me that what marks this anniversary is that the connection between energy and the environment has been clearly established, and that the celebration is also about how we can achieve environmental benefits by focusing on energy efficiency. We’ve made a lot of headway — and we can celebrate that. But as you celebrate, remember that our work on energy efficiency is really just getting started. In fact, according to published reports, White House Administration officials will visit more than a dozen localities today to promote energy efficiency and hope to use the Earth Day commemoration to push for action in Congress on its clean-energy plan, which remains stalled in the Senate.

Allow me to suggest that we take a moment to celebrate what we’ve already achieved and renew our commitment to the things we still need to do, including:

· We still need to improve vehicle efficiency and scale adoption of more efficient power plants for all types of vehicles. These include improved gas engines, diesel, diesel-hybrid, and electric. We need a portfolio of technologies to meet different driving needs. DOE’s Advanced Technology Vehicles Manufacturing loan program and ARPA-e are intended to meet these needs.

· We need to both improve the efficiency of the electricity grid and provide it with networking capabilities (i.e., make it a smart grid). Again, DOE has programs to pilot, mature, scale, and ultimately commercialize and deploy the technologies we need to achieve these two objectives.

These and other energy efficiency efforts will enable us to improve energy efficiency and substantially reduce GHG emissions. While some of these efforts may take decades to fully deploy, we are laying the foundation for a cleaner and more energy efficient future.

Just imagine what we’ll have accomplished in another 40 years.

Financing alternatives put solar within reach

2010-04-15T12:15:00.001-04:00

By Scott Sklar

Senior Advisor

While no one argues against the merits of harnessing the sun’s power, the half-century-old technology’s growth has been slow in the United States. But that’s starting to change thanks to some creative financing options that are gaining favor in the public and private sectors.

According to a recent Fast Company piece, despite the dramatic drop in cost of solar energy components and overall systems, companies remain slow to embrace the option due largely to the necessary capital investment regardless of its long-term payoff.

Unfortunately, this is true despite government incentives. Businesses can obtain a 30 percent tax credit and other benefits for on-site renewable technologies that reduce capital costs by 25 to 40 percent, a huge incentive that NSI is helping to facilitate for several clients. However, the Fast Company article aptly points out that all the grants and subsidies in the world won’t make for a sustainable market.

Alternative financing methods might turn that around. Lately, more companies have turned to options involving lease contracts and Power Purchase Agreements that are far easier on recession-strapped budgets and ease nervous board members’ minds.

In one scenario that’s become more common recently, a solar power vendor works with a client and leasing company who purchases the solar energy system. The client then holds and pays on the lease contract rather than an acquisition.

Another option involves a Power Purchase Agreement (PPA), in which the vendor finances and builds a system on the client’s property and the client signs an agreement to pay a fixed monthly amount for use of the generated power. This has been a valuable tool for expensive, large-scale systems that clients don’t want to shoulder the cost of or responsibility for.

The PPA model, according to the Fast Company piece, has been used across a range of power-related industries globally. With the right credit-worthy partner, solar is suddenly within reach for many entities that are unable or unwilling to make any upfront investment, the article states.

These financial options could very well be the key to the growth that has eluded the solar power industry for so long. Because once cost is no longer an obstacle, the reasons to forgo solar energy are what become elusive.

These and other financial options could very well be the key to the growth that has eluded the solar power industry for so long. Because once the up-front cost is no longer an obstacle, there are no other reasons to forgo solar power as a long-term, reliable, emissions-free and renewable energy resource.

Scott Sklar, a nationally known expert and frequent speaker on clean energy policy, technology and applications, serves as a strategic advisor on NSI’s Energy and Sustainability teams, focusing on clean tech, sustainability and renewable energy issues. He has assisted a wide-range of national corporations and government clients on dynamic, diverse projects that include interconnection equipment, fuel cells, photovoltaics, waste heating engines, modular biomass and concentrated solar power. Scott is also President and Founder of the Stella Group, Ltd and Executive Director of the Solar Energy Industries Association. He also serves on the Boards of Directors of the Business Council for Sustainable Energy and the Renewable Energy Policy Project, co-chairs the Policy Committee of the Sustainable Buildings Industry Council, and serves as Chair of the Steering Committee of the Sustainable Energy Coalition. Scott served for nine years as Energy and Military Aide to Senator Jacob K. Javits (NY), and for three years was Washington Director and R&D Director of the National Center for Appropriate Technology. For 15 years, he simultaneously served as the Executive Director of two industry groups, the Solar Energy Industries Association and the National Biomass Industries Association. For the past eight years, he has served as President and Founder of The Stella Group, Ltd., a strategic marketing and policy firm for clean distributed energy users and companies using renewable energy. Scott is also a noted author, whose book, “A Consumer Guide to Solar Energy,” was just re-released for its third printing, and his coauthored book, “The Forbidden Fuel: A Political History of Biofuels,” was published in 1985 and was republished in 2009.

Collaboration will bring cybersecurity solutions

2010-04-12T11:34:00.001-04:00

By Mark Danner

Consulting Manager, Homeland Security and Public Safety Practice

Last year I had the opportunity to hear the Director of the US National Security Agency speak at three separate conferences and each time he repeated the need for an enhanced public-private partnership to confront cyber threats. In fact, this has become a mantra by government and military officials who understand how highly dependent Federal, State and Local governments are on critical information and communications technology infrastructures that are owned and operated by the private sector. However, the challenges to building an effective and trusting partnership are daunting. The USG has all too often sought the private sector’s knowledge and experience without providing any financial incentives to such an exchange, or effective means to safeguard corporate proprietary information and mitigating reputational risk.

How can government and the private sector jump start collaborative initiatives and new partnerships? Let me offer a few thoughts on effective strategies and success stories. Underlying the power of collaboration is the principal of subsidiarity or empowering and funding organizations, groups and associations at the state and local level whenever possible. Rather than waiting for direction and initiatives to come out of Washington, where a national cybersecurity strategy is still evolving, players at the local level are coming together to educate each other on cyber threats and risk mitigation strategies, and building new synergies.

In one West coast chapter of InfraGard, the FBI public-private partnership between local FBI offices, State and Local governments, businesses and academic institutions to enhance critical infrastructure protection, members have launched an innovative threat awareness project. They are bringing together corporate and academic cyber experts to train local CEOs on cyber threats. Further north in Canada, researchers at the University Toronto involved in the public-private venture Information Warfare Monitor published this week a must-read report on the “Shadow” cyber espionage network linked to operatives in China. Of note is that their ground-breaking public research was funded by a grant from the MacArthur Foundation. Washington has much to learn from these small-scale initiatives.

A key strategy for building public-private collaboration is one that I have long advocated and practiced, and this is deconstructing complex cybersecurity issues into concepts, ideas and actionable information that “digital immigrants” and non-specialists can grasp. I was delighted to read this week that Melissa Hathaway, former Acting Senior Director for Cyberspace for the National Security Council, advocated the need, “tell simple stories [about cybersecurity] so everyone can talk about them at the water cooler and dinner table, and relate to them."

But in order to tell stories government, industry and academia need to begin weaving cyber narratives that capture peoples’ imaginations and that are based on reality and not hyped threats (let’s hope that MTV’s former star, Spencer Pratt, will find good advisors and realistic story-lines for his next initiative, a TV series called “Cyber Spies” ). And the key to being able to build popular awareness of cyber threats, and in turn enhance public-private partnerships, will be exposing the malicious human faces behind cyber attacks, thefts and exploits. Indeed, to most of us the digital signature of a “zero-day exploit” is meaningless – but knowing the identity and personality of the face behind the tool, and understanding his actual capabilities and intentions – now that’s a real story.

This is the last of a four-part blog series on cybersecurity.

Mark Danner, Consulting Manager with NSI works collaboratively with the Practice Managing Directors across such verticals as Homeland Security and Public Safety, Energy and Environment and Finance, to help a wide variety clients win opportunities in government markets. Mark has 20 years experience in providing innovative solutions to complex technology and operational risk problems for both the federal and private sectors. During a diverse career as an operations officer with the U.S. Intelligence Community, he provided key US decision makers with high-value answers to pressing national security questions related to counterterrorism, counterproliferation, deep-dive investigations and critical infrastructure protection. A natural communicator and team leader with a passion for building holistic security into organizational culture, Mark began sharing his experience with the private sector in 2006. He first worked on Wall Street with the Corporate Security and Business Continuity Group of Deutsche Bank where he advised internal groups on business resiliency planning and launched a program to model malicious threats against the Bank's global infrastructures. He then joined the management team of NeuralIQ, a small California-based technology firm where he helped develop the company’s business development plan for cyber intelligence services targeted to public and private sector clients and that allowed users to track the full scope of a computer network attack in real-time. Mark received a B.A. in International Affairs from Earlham College, Richmond, Indiana, and a Master’s Degree in Middle East affairs from Georgetown University, Washington, D.C.

Health care reform brings challenges, opportunity

2010-04-08T16:16:00.001-04:00

By Christine Ferguson

Senior Advisor

The questions swirling around health care reform haven’t stopped since the legislation passed last month. Unfortunately, the answers are elusive, and will continue to be for some time.

Clearly, the impact on states will be immense. But what that impact looks like and how it will take shape state-by-state is far from certain. State administrators are scrambling. However, that does not mean there won’t be worthy opportunity involved for businesses poised to help with everything from administration IT and disease management to a slew of health care services. In fact, reports indicate optimism in the market related to health care reform.

States will be rethinking everything from State employee and retiree insurance to Medicaid and IT systems that will allow them to deliver the healthcare of the future. Health IT systems may help states determine patterns of use that will present crucial knowledge to determine what the future system will look like. How states respond to the new law and how their delivery systems change will vary.

Here are a few things to consider if companies are hoping to gain business from health care reform:

Realize the process will not be a straightforward march to a clearly defined destination. States and the Federal government will change along the way. Lots of uncertainty and challenges are ahead, but along with those will come opportunity if you’re able to be flexible.
Look to states moving fast with leaders who have a more proactive mindset as potential partners. For example, leaders in Vermont and Massachusetts know the direction they want to take, especially having already undergone their own recent reform, while California officials are still debating. Now is time to build on existing relationships, look at options and explore coalitions, groups and affiliations.
For every win, there will be several losses as businesses attempt to find their way into the health care market. There will be fits and starts.
Business leaders can’t expect state officials to know the answers to all of the health care reform questions or even exactly what they need. But it will be helpful to pay attention to which governors are on board with the mandate and ready to move forward, even if they are unsure of what the future brings.
Review statements governors have made with regard to health care reform for clues about whether they are good partnership candidates. If there’s a lot of questioning in regards to constitutionality coming from the governor’s office, set your sights elsewhere.
There’s a lot we don’t know. But focusing on what we do know and understanding some investments in time and resources may fall short while others yield great payoffs will go far in helping businesses prepare for the potential opportunities that health care reform will present.

NSI is working collaboratively with several companies to share its in-depth understanding of the geopolitical landscape to develop effective, proactive strategic approaches regarding this “perfect storm” of political, economic and public policy issues the public and private sector currently faces.

Christine C. Ferguson, JD serves as Senior Advisor for NSI’s Health Care sector providing expertise and strategic insight to NSI’s health care clients. In addition to her senior advisory role with NSI, Ms. Ferguson currently serves as a research professor at the George Washington School of Public Health and Health Services. Ms. Ferguson has been engaged in the development of an educational program in state health policy and concentrates her research on health reform, health services for vulnerable populations, overweight and obesity, and health systems reform. Prior to her academic role, Ms. Ferguson served in executive positions at the state government. As Commissioner of the Massachusetts Department of Public Health under Governor Mitt Romney from 2003 to 2005, where she led the Administration's efforts in the areas of emergency preparedness, substance abuse services, medical errors reduction, and early childhood education and child care. Ms. Ferguson also served as Secretary of the Rhode Island Department of Human Services from 1995 to 2001, under Governor Lincoln Almonds' two-term administration. From 1981 to 1995, Ms. Ferguson served as counsel and Deputy Chief of Staff to the late U.S. Senator John H. Chafee (R-RI). In this role, Ms. Ferguson served as lead staff negotiator for the Mainstream Senators in their 1993-1994 attempts to develop a bipartisan health reform proposal. Most recently, Ms. Ferguson served as president of First Focus, a special initiative funded by the David and Lucile Packard Foundation and the Atlantic Philanthropies. She is a member of the Board on Children, Youth, and Families of the National Academy of Sciences and the Board of the Neighborhood Health Plan of Rhode Island. She has also served in a leadership capacity at the National Academy for State Health Policy and other organizations. Ms. Ferguson is a graduate of the University of Michigan and the Washington College of Law at American University.

Real-time intelligence key to cybersecurity

2010-04-05T12:03:00.001-04:00

By Mark Danner

Consulting Manager, Homeland Security and Public Safety Practice

Why is it that cyber criminals and digital spies have such an advantage when it comes to successful exploitation of our information and communication technologies?

At the core, the problem is that the Internet was built as a communication tool by and for an academic community where trust was taken for granted. Those early pioneers that built the Internet architecture could never have envisioned how in very short time this global information infrastructure would become a means for legions of malicious actors of all kinds to conduct their attacks, thefts and operations across the World Wide Web, through email, and even inside Peer-to-Peer (P2P) networks (If your kids or employees are downloading “free” music from the P2P sites, check out the very real threats you face from criminals in this eye-opening MSNBC report).

Consider these three additional factors that give the threat actors the initiative:

First, these malicious players think with a predator mindset. In our culture we are not socialized to think and reason in this pathological manner. These are individuals, groups and organizations that are always on the prowl for vulnerabilities that they can exploit through innovative technologies and creative social engineering tricks.
Second, the really devious players in the digital domain take time to prepare their attacks. They carefully prepare their operations through unobtrusive research, development of new attack tools, preparation, and assessment of their victim’s point of greatest weakness. But when they finally deploy their malicious payloads, they move at high speed. A profoundly revealing 2008 Investigation Report by Verizon’s Business Risk Team that summarized more than 500 security incidents over four years demonstrates this fact. The report found that nearly one half of network compromises occurred within minutes to an hour, whereas two thirds of these compromises took months or even years to discover, and then over half took weeks or months to resolve. Verizon noted, “organizations are simply not watching.” But how can you watch for something that you’ve never seen?
This brings us to our third advantage that is that these malicious operatives in cyberspace have besides a cultivated amorality and evil mindset, and the intelligence and capability to get inside a target fast, grab what they’re after and depart undetected. This factor is that like aliens in science-fiction movies, they can “shape shift” – in this case it’s their digital payloads that are morphing. Their malicious code or malware is evolving faster that our defensive systems can detect them. This morphing ability allow attackers to evade Intrusion Detection Systems and anti-Virus software that all require some kind of known or suspect “fingerprint” in order to block malware from the network or computer.

So, what can be done to respond effectively to this multifaceted and persistent threat?

Government and industry need to admit that the passive, layered-defense posture in cyber security, while a necessary protective measure, is not sufficient to meet the evolving threat landscape. We need to move to real-time cybersecurity defenses that trap, identify and repel attackers as they launch. In this regard, Richard Hale, Chief Information Assurance Executive for the Defense Information Service Agency has perceptively recommended that cybersecurity tools need to be developed that “deceive adversaries” in cyberspace by creating “noisy” environments populated with many decoy targets. These targets can then be watched in real time so that we can learn from the attackers themselves.

This is the third of a four-part blog series on cybersecurity. Up next: Cybersecurity solutions will come from collaboration.

Keys to success in public market small, but crucial

2010-04-01T17:15:00.002-04:00

By Kevin Matthews

Vice President, Energy and Environment

The Federal, State and Local governments offer billions in grants, loans and tax incentives for myriad projects and publicly-owned utilities and also have a variety of rebates and incentives. But accessing those funds isn’t easy.

In fact, a request for funding might be automatically rejected if it’s not submitted on double-sided paper. This is just one example of how very different the rules of engagement in partnerships vary widely between the public and private sectors.

This is why I’m looking forward to sharing my knowledge of the unique skills required to engage government partners in today’s marketplace during a panel discussion in the Silicon Valley next week. The presentation, Public Money: How and Where to Get It, is part of the Funding a Cleantech Company Series sponsored by Environmental Business Cluster and will be held from 3 to 7 p.m. Thursday, April 8 at Fenwick and West LLP, 801 California Street, Mountain View, CA. I will be among a panel of entrepreneurs and experts who have been successful navigating the public financing process and can provide guidance on how to increase executives’ probability for success.

Approaching the government as a partner is a completely different approach and a different skill-set than private equity partners. Being prepared and knowing what they are looking for can make the difference in whether you’re tossed out of the running or awarded funding. Simple, but key aspects of the process can make or break you. A proposal could be dead in the water even if it’s the best of the bunch if every step isn’t executed flawlessly.

NSI has been helping companies develop and execute strategies to win public dollars since 1995. Earlier this year, we assisted SeaMicro ($9.3M) and Power Assure ($5M) secure funding from the Department of Energy to improve energy efficiency IT projects.

The Nexus Between Terrorism, Crime and Cyberspace

2010-03-29T14:38:00.000-04:00

By Mark Danner

Consulting Manager, Homeland Security and Public Safety Practice

We’ve heard a lot about cyber terrorism lately – including FBI Director Mueller’s March 4^th warning at the RSI Cyber Security Conference that “the cyberterrorism threat is real” and that terrorist organizations are looking to conduct cyber attacks against the US. Yet at the same time, and Mueller acknowledges this, terrorists have not launched any significant cyber attacks against Western targets. And why should they when there are so many factors mitigating against the use of such cyber weapons?

There is no guarantee that after all the lengthy and complex work to prepare an attack that, in the end, it won’t fizzle into a non-event. While many of our networks may be vulnerable to hackers and other malicious operatives, at the same time they are also quite resilient to the kind of outage that generates the necessary fear that terrorists seek.

It’s time that we start decoupling the very different digital threats that the popular discourse keeps confusing. Cyber terrorism is fundamentally different from cyber war, and, as you will read below, hackers who support terrorist causes have a different agenda than sowing mayhem in cyberspace. In order to make sense from these confusing mash-ups we need a different lens to view these threats than apocalyptic sound bites referring to “digital Pearl Harbors”. Nor are we helped by the jockeying of various Federal government and military agencies to frame cyber threats within the larger and oft dramatized global war on terror. A must read in this regard is Prof. Myriam Dunn Cavelty’s penetrating analysis of the debate.

Indeed, some of the most clear thinking and compelling research on cyber threats is increasingly coming from academia. Across the US, institutions such as the University of Alabama Birmingham (UAB) are developing new research methodologies and tools for understanding the cyber threat landscape. And these schools are not only getting government grants and scholarships (see the National Security Agency’s “National Centers of Academic Excellence” program), but they are also in some cases applying their cyber research in helping the US authorities fight cyber crime.

I recently learned from Gary Warner, Director of Research in Computer Forensics at AUB, that he and his students have found links between surprisingly large and capable hacker communities from Morocco and Saudi Arabia, to Turkey and Pakistan and regional extremist causes and groups. Warner, who joined me this week at the GovSec Conference’s General Session on “Cyber Espionage and Criminal Hacking: The New Threat Matrix”, described how hackers from these regions are successfully using phishing attacks to steal large amounts of money out of unwitting Americans’ digital pockets, and how portions of these proceeds are going to support their violent causes. Now that is a tremendously beneficial and enlightening insight into the cyber threats discussion.

This is the second of a four-part blog series on cyber security. Up next: Real-time intelligence key to cyber security.

A lifeline for venture stage technology

2010-03-22T10:09:00.000-04:00

By Bruce Gruenewald
Director, Energy and Environmental Operations

We’ve witnessed a recent wave of growth in cleantech with financial backing from the public and private sectors. Some of the most exciting opportunities, however, lie ahead and might have been lost in the cracks of risk assessment if not for ARPA-e.

After attending the Inaugural ARPA-e Energy Innovation Summit held March 1-3, 2010, I have the feeling we can look forward to phenomenal energy innovation in the years to come.

The event brought together the nation’s key players in energy innovation: scientific researchers, VC investors, technology entrepreneurs, large corporations, and government officials around the agency’s focus on high risk, high payoff concepts — technologies promising genuine transformation in the ways we generate, store and utilize energy. The one-day pre-conference workshop logged 900 attendees while the two-day summit attracted 1700 attendees, one-third higher than what was expected

The goal of ARPA-e is to enhance U.S. economic energy security via a three-part mission: reduce greenhouse gas (GHG) emissions; reduce energy imports; and, improve energy efficiency.

Here’s what makes ARPA-e unique:

· The Agency seeks to bridge the gaps in the energy innovation pipeline by investing in venture stage technology that is too risky for a private sector investment, yet promises a 50 percent or greater gain over current technology if it can be accelerated to commercialization and deployment in 3 to 5 years.

· ARPA-e is not interested in funding incremental improvement (2 to 3 percent annual gains), basic research, or long-term projects (5+ years).

· The first round of awards went to 37 projects; three-quarters of the $151 million was given to small businesses or universities with the balance going to large businesses or research consortia. The average award was $4 million and awards were made in 10 areas ranging from energy storage to building efficiency.

· ARPA-e will provide technical, operations, and commercialization support to its grant recipients.

Here’s what ARPA-e looks for in a project:

· A sound technical plan

· A disruptive, game-changing technology

· The opportunity to “de-risk” a high risk investment that carries too much risk for private equity firm

· A multi-disciplinary, best in class team.

I strongly encourage energy companies with promising technologies to build a relationship with ARPA-e. ARPA-e is a new organization, and its management is creating a culture of openness and transparency. They expect the energy community to play an active role in helping the Agency achieve its mission. ARPA-e emphasized that if a company is not actively engaged with the ARPA-e community, then there’s less likelihood that they’ll get funded. ARPA-e expects cleantech companies and researchers to participate in its workshops, serve on concept paper and application review panels, and get to know its Program Directors (who will run their programs from conceptualization to commercialization and then return to University after 4 years).

We can begin to assess ARPA-e’s success in about a year as work on the 37 current awards moves forward. Meanwhile, even more awards will be doled out in the next few months. And, according to the Agency, if just a fraction of the projects funded by ARPA-e are successful in reaching the marketplace, the U.S. will benefit greatly by creating new industries and jobs, making energy technologies substantially more cost-saving and profitable, and accelerating the timeframe for achieving energy and climate goals.

Season of change for elections, brownfields

2010-03-18T10:01:00.000-04:00

By Kevin Matthews

Vice President, Energy and Environment Sector

We’re headed into another season of change when it comes to elections. Brownfield development may not be on the tip of the politicians’ tongues, but those close to the issue in both the public and private sectors must get the conversation going. Now.

First, the brownfield community needs to understand the ramifications of the political environment and how that affects brownfield redevelopment. To that end, I plan to cover current activity within the state legislatures and the outlook for upcoming state elections in a session titled Political Outlook — The Hills, the Halls, and the Street at the National Brownfield Association’s The Big Deal: Atlanta 2010 on March 23 and 24 at the Grand Hyatt Hotel.

The Atlanta event is the flagship summit offered by the NBA, known as the premier association for government, businesses and individuals involved in the sustainable redevelopment of brownfields, and connecting green building to brownfield sites. This year’s summit will focus on the theme of energizing brownfield development.

Polls indicate discouragement with the status quo in state government, which will likely mean a changeover in governor seats in many elections and a learning curve for the candidate taking over the reigns. Regardless of a particular candidate’s political leaning, the brownfield community has an opportunity to build relationships and educate candidates now that will serve their cause down the road.

The Environmental Protection Agency’s Brownfields Program creates many benefits for local communities. For example,

• Projects leveraged $18.68 per EPA dollar expended

• Leveraged 61,023 jobs nationwide

• Stormwater runoff from brownfields redevelopment is 44 to 88 percent lower than alternative greenfields scenarios

• Can increase residential property values 2 to 3 percent when nearby brownfields are addressed

• Promotes area-wide planning

I don’t know of any candidate in any party who would think these are bad ideas for their communities. But they might not know about them.

To hear more, join me and 25 other presenters and hundreds of attendees at next week’s event. Check out the full press release here. Now’s the time to prepare for working with new leadership come 2011.

Awareness must come before cyber security solutions

2010-03-17T12:04:00.000-04:00

By Mark Danner

Consulting Manager, Homeland Security and Public Safety Practice

In themselves, computers are harmless. But with certain brains behind them, they become a devastatingly powerful tool for theft and destruction.

The media and government officials are certainly paying attention to the issue with increasing frequency, especially after the recent Google hack, and previous noteworthy exploits in 2009 that included the penetration of classified US military networks and the massive GhostNet operation against foreign embassies and other targets. In contrast to the much-hyped threat of “cyber terrorism,” the most virulent and persistent threats coming across the internet are specifically designed by malicious operatives to be unobservable and exploitative. A 60 Minutes piece that aired late last year puts this in excellent perspective.

Unfortunately cyber terrorism and information operations are regularly conflated and confused in the public discourse. Cyber terrorism is a violent act carried out over IT networks by an individual, organization or state designed in function of a specific ideology with the goal to generate fear, discord and confusion in society. As such, only the Estonian Internet take-down of 2007 comes close to qualifying. Information Operations (IO), on the other hand, are an offensive, surreptitious and targeted effort using information and communication technologies by malicious actors to obtain material or information gain. In contrast to the rare phenomenon of cyberterrorism, IO happens 24/7 against every public and private sector target imaginable.

The reason such information operations are so persistent is that the malicious operatives behind these exploits have the initiative as they chase after vulnerable and lucrative targets. They have forced the cybersecurity industry into a reactive state, chasing threats with technology solutions that only deal with known and discovered-after-the-fact malware. The only way to reverse this evolutionary cycle is for industry and government to adopt a proactive defense and creative offense that are based on awareness of the threat actors themselves and not just their technologies of exploitation. We need to understand who is behind particular Information Operations? What are their motivations? When – in real time – are they operating? Where are their base of operations? Why do they select particular targets? And how do they collaborate as “communities of practice?”

It is time that we too build communities of practice that understand cyber threats holistically and not just as a function of complex technology. But the problem is that the IT world is the home of a technical elite who speak a language that few can really understand and conceptualize. We need to expand this world and move to build a common language and understanding among non-specialists regarding cyber threats and the people and technologies behind them. As a first step, let’s start creating a culture of awareness where the faces of cyber operatives become as well-known as fugitives on “Americas Most Wanted” and their secretive operations publicized by investigative journalists in television, print and electronic media. It’s time to start telling real stories about real threats.

This is the first of a four-part blog series on cyber security. Up next: Why cyber terrorism is not likely.

Mark Danner, Consulting Manager with NSI, works collaboratively with the Practice Managing Directors across such verticals as Homeland Security and Public Safety, Energy and Environment and Finance, to help a wide variety clients win opportunities in government markets. Mark has 20 years experience in providing innovative solutions to complex technology and operational risk problems for both the federal and private sectors. During a diverse career as an operations officer with the U.S. Intelligence Community, he provided key US decision makers with high-value answers to pressing national security questions related to counterterrorism, counterproliferation, deep-dive investigations and critical infrastructure protection. A natural communicator and team leader with a passion for building holistic security into organizational culture, Mark began sharing his experience with the private sector in 2006. He first worked on Wall Street with the Corporate Security and Business Continuity Group of Deutsche Bank where he advised internal groups on business resiliency planning and launched a program to model malicious threats against the Bank's global infrastructures. He then joined the management team of NeuralIQ, a small California-based technology firm where he helped develop the company’s business development plan for cyber intelligence services targeted to public and private sector clients and that allowed users to track the full scope of a computer network attack in real-time. Mark received a B.A. in International Affairs from Earlham College, Richmond, Indiana, and a Master’s Degree in Middle East affairs from Georgetown University, Washington, D.C.

Conference a step toward cyber security awareness

2010-03-15T17:57:00.002-04:00

By Paul M. Joyal

Managing Director, Public Safety and Homeland Security Practice

The real issues crucial to cyber security often get buried amid technical terms and the intricacies of the United States governments’ computer systems. But the key to defending our nation against potentially disastrous impacts of cyber espionage and criminal hacking is understanding the methodology and new threat matrix. Today, the intelligence, business and criminal communities are indistinguishable and often one in the same.

Those who attend this year’s GovSec/U.S. Law Conference March 23-24 at the Walter E. Washington Convention Center will have the opportunity to understand both the threat matrix and the mind of the hacker. As organizer and moderator of the General Session on Cyber Espionage and Criminal Hacking, I will guide a panel of experts in a discussion of how a nexus of crime, business and intelligence presents a threat to individuals as well as public and private sector companies that is magnified by our IT-dependent world. Additionally, I will conduct a session on Law Enforcement Case Studies and Tactics — From Intelligence Led Policing to Predictive Policing: How Technology and Information Fuse a New Paradigm.

During the General Session, experts from the United States and England will illustrate how our cyber vulnerabilities provide myriad opportunities for criminal thieves, corporate espionage agents, terrorists and intelligence organizations to steal information, money and secrets for a variety of purposes as well as inflict damage on our critical infrastructure.

Sophisticated intelligence operations have raided our computers, and pilfered them of their contents. Malware and other sophisticated software techniques have been used to defraud credit card companies and banks. A ZeuS malware attack sent emails to federal officials appearing to be from other trusted members of the government but in fact inserted software to obtain files of interest and broadcast them out to adversaries. The recent online attacks on Google and dozens of other American corporations have been traced to computers at two educational institutions in China, including one with close ties to the Chinese military, according to published reports. The connection of crime, intelligence and foreign operations are at times, indistinguishable. This complicates our understanding of the threat environment and provides deniability for intelligence operations.

In an unusually bold statement in 2008 detailing another incursion of the Net battle targeting government sites, the CIA admitted web hackers penetrated overseas power grids, compromising service while demanding payment in exchange for cessation. But the most dramatic testimony was delivered last week by the former Director of National Intelligence, Michael McConnell, who told the Commerce, Science, and Transportation Committee on Feb. 23 “We’re the most vulnerable. We’re the most connected. We have the most to lose. So, if we went to war today, in a cyber war, we would lose.” His testimony should serve as a clarion call to rally around!

Today, the U.S. government is providing more attention and commitment of resources to this problem via a $17 billion cyber security initiative passed by Congress. However, the need for state and local action to protect our critical infrastructure should also become a priority. The National Governors Association (NGA) states that cyber security is the weakest link in their efforts to protect critical infrastructure assets in its states. The National Association of State Chief Information Officers (NASCIO) has proposed a specific cyber grant program for states similar to the DHS homeland security grants. In short, our exposure is enormous and the resources heretofore have been meager.

Testimony and proposals such as these will help to build our awareness of the issue. But without a concerted public relations campaign, similar to the “don’t be a litterbug” campaign of the past or the “Smoky the Bear” campaign, that create a character who viewers can emotionally connect with, our investment will never fully achieve its intended goal. That is because computer security is everyone’s business, for if any computer is unprotected, that innocent machine can be taken over for illicit purposes.

In our effort to develop solid solutions to these complex problems, building greater awareness and understanding of our cyber vulnerabilities underlies what’s quite possibly the greatest threat to national security today. The GovSec/U.S. Law Conference is the ideal place to do just that.

Join Paul Joyal at GovSec 2010 and view Paul Joyal's pre-conference interview here:

March 23: “Session LE-1: From Intelligence-Led Policing to Predictive Policing: How Technology and Information Fuse a New Paradigm."

(10:30 am)

March 24: Cyber Espionage and Criminal Hacking: The New Threat Matrix (11:30 am)

Paul M. Joyal leads the Homeland Security and Public Safety Practice for National Strategies, LLC (NSI), He is a recognized authority and noted commentator on the former Soviet Union, Intelligence and Terrorism, who has expertise in business development with law enforcement and national security entities nationwide. He served as a federal law enforcement officer and as director of security for the United States Senate Select Committee on Intelligence from 1980 to 1989. His career includes a range of consultation services to a number of Fortune 100 firms pursuing opportunities in the former Soviet Union, Turkey and Iraq. He is also a frequent commentator on ex-Soviet Union, counter-terrorism and intelligence affairs for BBC, ABC, NBC, Dateline, Nightline, Cross Fire, TIME, Newsweek and other media outlets. He has also been a frequent contributor at GovSec/U.S. Law conferences. In 1998, he represented the Georgian Government before the U.S. Congress and Departments as its first lobbyist. Mr. Joyal also served as expert advisor to the Security and Defense Committee of the Georgian Parliament and the Chairman of the National Security Council and Minister of Defense. He was decorated with the Georgian government’s highest civilian award, “The Order of Honor” for his service promoting Georgian independence, security and integration with the Western world. Paul previously held the position of Operations Director for Remington Elsag Law Enforcement Systems in its national rollout. Mr. Joyal serves on the Prince Georges County Law Enforcement Task Force and previously on Governor Martin O’Malley transition team for Public Safety. He was elected as the President of the State of Maryland Chapter of the FBI InfraGard and was recently elected to the National InfraGard broad of directors He also serves on the GovSec/U.S. Law Conference and CyberWATCH advisory boards. His professional associations include the International Chief’s of Police Association; the American Society for Industrial Security International; and the Major City Chief’s organization.

Spending down, interest in energy efficiency way up

2010-03-08T15:14:00.000-05:00

By Kevin Matthews

Vice President, Energy & Environment Sector

Whether a piece of news gets labeled “good” or “bad” always depends on the perspective.

A recent case in point:

The New York Times Green Inc. blog reported recently that venture capital investments in clean tech companies plunged by 50 percent to $2.6 billion last year as investors put their money in energy efficiency projects instead. The information came from a report released last month by Ernst & Young. The downturn was due to investors shifting money from capital-intensive solar and biofuel companies into firms that use technology to reduce or monitor energy use because the funding requirements are lower and the returns are often faster.

But the report, based on data from Dow Jones VentureSource, also found that while the overall monetary investment fell, the number of deals increased 21 percent. In addition, the Energy Efficiency category received the most US Venture Capital investment dollars in the fourth quarter of 2009, with $252.8 million and 22 deals, compared to $133.7 million and 14 deals in the third quarter. This category raised $593.3 million for all of 2009.

Clearly, the fine print is important here. It’s basically great news for any company that has anything to do with energy efficiency, as well as for anyone in the public or private sector who does business with them.

Federal energy-efficiency spending signals trend

2010-02-24T15:04:00.001-05:00

By Kevin Matthews
Vice President, Energy and Environment Sector

A recent report from the Federal Times indicates the ongoing trend in spending and subsequent opportunities that abound for public sector energy efficiency projects will continue.

According to an article from Environmental Leader, federal agencies spent more than $1.7 billion last year on energy-efficiency projects, increasing their environmental spend by more than 80 percent from 2008.

The Federal Times article reports that about two-thirds of the investments were paid for with federally appropriated dollars, primarily from the American Recovery and Reinvestment Act, with the remainder financed by private-sector financing arrangements, such as Energy Savings Performance Contracts (ESPCs) and Utility Energy Services Contracts (UESCs). Under these programs, contractors pay for renovations upfront and are paid back over time with cost savings that result from reduced energy consumption.

Such spending most certainly motivated many state and local governments to reduce or monitor energy consumption. And, for those with mandates, the funding was crucial for meeting specific standards. What’s more, the funding boosted revenues for the innovative businesses behind the projects and, therefore, the green economy. This is one more example of how public-private partnerships are key to our nation’s future economic health.

Kevin Matthews is Vice President of the Energy and Environment Sector for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.

New network to drive cost-saving energy solutions

2010-02-23T15:59:00.000-05:00

By Kevin Matthews

Vice President, Energy and Environment Sector

There’s been a lot of talk on Capital Hill lately about saving ourselves from the slippery slope of increasing debt. No one answer will solve all of our economic woes, but some solutions don’t won’t a cent.

The State Energy Efficiency Action Network is one of them. The network, created by the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA), is meant to help states achieve maximum cost effective energy efficiency improvements in homes, offices, buildings and industry by 2020, according to a recent announcement.

“The State Energy Efficiency Action Network will help provide states with the technical and policy support they need to invest in energy efficiency, saving energy and money for families and businesses across the country,” Energy Secretary Steven Chu stated in a press release.

Through the network, DOE, EPA and other member organizations will assist states with their energy efficiency initiatives, including residential efficiency programs, financing solutions, and improving availability of energy usage information. According to the press release, the network will drive energy efficiency by using a broad set of goals developed in the National Action Plan for Energy Efficiency and strive to reach these goals five years earlier than originally envisioned. These goals range from establishing state-of-the art billing systems that provide consumers with consistent information on their energy use and costs to developing strong state policies to ensure robust energy efficiency practices.

This is a refreshing, yet simple way to spur dialogue among all levels of government and result in idea sharing and problem solving in one collaborative space. It could also become a place for ideas to acquire sea legs and become more widely distributed.

The new SEE Action Executive Group will meet for the first time in early March. A number of working groups will continue to meet throughout the year to deliver results on specific goals.

I look forward to seeing the results that come out of these meetings and hope to help businesses work with the government to implement them at the state and local level.

EPA budget follows pattern

2010-02-18T16:28:00.000-05:00

By Kevin Matthews
Vice President, Energy and Environment Sector

I suppose it makes sense the theme flowing through the various federal department budgets would be streamlining. With the deficit as it is, anything else would be irresponsible. But sometimes the cuts trim more than fat.

As we saw with the recent budget request for the Department of Energy, the $10 billion proposal for the Environmental Protection Agency leaves less for local governments than many would have desired. However, they might find alternative funding sources via parts of the Healthy Communities initiatives and Clean Air funds.

According to a press release, this budget offers $27 million for EPA’s new Healthy Communities Initiative to address community water priorities; promote clean, green, and healthy schools; improve air toxics monitoring in at-risk communities; and encourage sustainability by helping to ensure that policies and spending at the national level do not adversely affect the environment and public health or disproportionally harm disadvantaged communities. As for Clean Air funds, the budget includes $60 million to support state efforts to implement updated National Ambient Air Quality Standards (NAAQS). These avenues involve more competition from bigger companies and may be more difficult to navigate. NSI has often been able to help clients succeed with these challenges. Specifically, the budget includes seven priority areas EPA Administrator Lisa P. Jackson outlined to guide EPA’s work.

“To meet our environmental challenges and ensure fiscal responsibility, we’re proposing targeted investments in core priorities. This budget cuts spending while promoting clean air, land and water, growing the green economy and strengthening enforcement,” Jackson stated in a press release.

Additional budget highlights include $1.3 billion to address Superfund sites that may be releasing harmful or toxic substances into the surrounding community and $215 million to clean up Brownfields. There’s also more than $43 million for additional efforts to address climate change and work toward a clean energy future. EPA will implement the greenhouse gas reporting rule; provide technical assistance to ensure that any permitting under the Clean Air Act will be manageable; perform regulatory work for the largest stationary sources of greenhouse gas emissions; develop standards for mobile sources such as cars and trucks; and continue research of carbon capture and sequestration technologies.

This article originally posted at GovConExecutive.com. Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.

State, local funds dropped from DOE budget

2010-02-16T16:43:00.000-05:00

By Kevin Matthews

Vice President, Energy and Environment Sector

As with most budgets, good and bad news can be found within the president’s recent fiscal request for the Department of Energy.

Overall, the $28.4 billion Fiscal Year 2011 budget request represents a continuing commitment to energy efficiency and the core goals of the Obama Administration as laid out during the campaign. For example, there’s still plenty of money for Smart Meter retrofitting and renewables as well as the electric vehicle battery market.

“The President’s budget cuts wasteful spending while making wise investments in innovation and clean energy that will put Americans back to work, save families money and keep our nation competitive in the global marketplace,” said DOE Secretary Steven Chu in a press release.

Unfortunately, there’s also a lot less help for local governments that previously came in the form of Energy Efficiency Conservation Block Grants. The block grants had been an excellent vehicle for local governments to access without having to dip into their own cash-strapped budgets. Their absence means it will be more difficult for small projects to get through, such as lighting and HVAC, as well as retrofitting. Those areas will suffer losses in coming year and likely create a ripple effect with the companies who provide them. Local governments might find alternative funding sources via a $75 million appropriation to supplement stimulus money for state energy plans as well as increased funding for other programs that will help energy efficiency, such as Weatherization Assistance Program and Clean, Renewable Energy Generation.

The good news: Mid-cap companies still have access to large grants and loan guarantees as sources of low-interest capital to increase manufacturing capability. According to a DOE newsletter, the proposed budget includes $500 million to support an estimated $3-5 billion in loan guarantees for renewable energy and energy efficiency projects, as well as $10 million to support the continued administration of the Advanced Technology Vehicles Manufacturing Loan Program. According to budget highlights, $300 million is also included for the Advanced Research Project Agency - Energy for transformational energy research that industry by itself cannot and will not support, as well as lending authority to support approximately $40 billion in loan guarantees for innovative clean energy programs.

In addition, there’s $35 million for clean energy transmission and reliability, $39.3 million for Smart Grid research and development, and $40 million for energy storage on the electrical grid.

Kevin Matthews is Vice President of Energy and Environment for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments. Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.

Opportunity in Ocean State

2010-02-10T13:28:00.001-05:00

By Christine Ferguson

Senior Advisor

Our current economic problems have hit some states more profoundly than others. My small home state of Rhode Island continues to suffer and those without jobs have few opportunities.

While unemployment hovers at nearly 13 percent, Governor Don Carcieri submitted a plan to cut millions of dollars in funding for local governments and schools, charge new bridge tolls, and increase fees for motorists in an effort to cope with a massive budget deficit. A story in the Boston Globe reported the plan would eliminate about $135 million in state support for cities and towns and cut millions meant to support local school districts. Carcieri cited the unemployment rate as a reason for the cuts.

This news comes just two weeks after state officials disclosed that they have spent less than half of the federal stimulus dollars earmarked for Rhode Island a year ago. The Providence Journal reported that the state has received $1.26 billion of the $787-billion package, but has only spent more than $551 million, largely to plug budget holes. Another $55 million has been assigned to various projects.

The stimulus package was designed to help fix just the sort of problems Rhode Island has. The truth is, the state has not put enough resources and time into getting more of their money out the door. But officials appear to be making an effort to step up. And the private sector can do the same.

Some in private industry may write off small states as not worth their time to look into possible partnerships to make use of stimulus funds. But they should know that navigating bureaucracy in a small state can be much easier and more fruitful. And, once engaged, if the partnership is successful, the benefits often continue via word of mouth between the leadership of the state and their colleagues in other states. New companies in particular might do well to break into the government market via a small state such as Rhode Island, where new ideas and technologies might get more attention and receptivity.

Rhode Island can be a place of opportunity, and sometimes opportunities born in difficult times can lead to brilliant results and partnerships. There is no more beautiful and resilient state in the nation – don’t ignore it because it is small.

Christine C. Ferguson, JD serves as Senior Advisor for NSI’s Health Care sector providing expertise and strategic insight to NSI’s health care clients. In addition to her senior advisory role with NSI, Ms. Ferguson currently serves as a research professor at the George Washington School of Public Health and Health Services. Ms. Ferguson has been engaged in the development of an educational program in state health policy and concentrates her research on health reform, health services for vulnerable populations, overweight and obesity, and health systems reform. Prior to her academic role, Ms. Ferguson served in executive positions at the state government. As Commissioner of the Massachusetts Department of Public Health under Governor Mitt Romney from 2003 to 2005, where she led the Administration's efforts in the areas of emergency preparedness, substance abuse services, medical errors reduction, and early childhood education and child care. Most recently, Ms. Ferguson served as president of First Focus, a special initiative funded by the David and Lucile Packard Foundation and the Atlantic Philanthropies. She is a member of the Board on Children, Youth, and Families of the National Academy of Sciences and the Board of the Neighborhood Health Plan of Rhode Island. She has also served in a leadership capacity at the National Academy for State Health Policy and other organizations.

Rail investment a great start

2010-02-08T16:04:00.001-05:00

By Parris Glendening

Senior Advisor

Thirty-one states and the District of Columbia got some very good news recently. They will soon claim their share of $8 billion in grants from the American Recovery and Reinvestment Act to create 13 new high-speed rail corridor projects and for planning initiatives to lay the groundwork for future high-speed intercity rail service.

The move represents a clear commitment and understanding by the Obama Administration of this country’s dire need for a balanced transportation system. And we can all look forward to the many benefits of such a system, including job creation. On that point, a new analysis by Smart Growth America found that in the first 10 months of last year’s economic stimulus package, investments in public transportation created twice as many jobs per dollar as investments in highways.

Still, while understanding the necessity of spreading the new funds to multiple projects around the country, I agree with the Washington Post's editorial in that I would have rather seen some focused resources that could lead to the best overall transportation impact, particularly the Northeast corridor. This rail network from Boston to Richmond and almost every place in between is the nation’s most traveled rail line. It impacts 11 states and 110 million people and has the most potential for moving this country to a 21st century transit system.

Instead, the corridor is slated to receive $112 million in recovery money to help fund improvements along the route. As the Post opinion piece pointed out, these federal dollars are meant to be seed money to spur local and private investment. But these projects are massive, will take years to build and cost tens of billions of dollars. It is a start. Congress, however, must follow the lead of the Obama Administration and significantly reorder the priorities in America's transportation plan to make rail the investment of the future.

Stay tuned for NSI’s analysis of the potential public safety and security threats associated with these infrastructure and related issues.

Former Maryland Governor Parris Glendening serves as a Senior Advisor for NSI, where he works with the NSI team to develop winning legislative and marketing strategies for NSI’s clients. The Former Governor spent eight years as Governor of the State of Maryland, (1995-2003) where he made the environment, especially, smart growth-- education and inclusiveness the heart of his legislative, administrative and personal agenda. In addition, Governor Glendening had the honor of being elected chairman of the National Governor’s Association by his colleagues, where he made quality of life issues his top agenda item. He also served as President of the Council of State Governments. He was elected to statewide office after serving three terms as county executive of Prince George’s County, a jurisdiction of 800,000 outside of Washington, D.C. Mr. Glendening also serves as President of Smart Growth Leadership Institute, part of Smart Growth America, a nation-wide coalition of nearly 100 organizations promoting a better and more healthy way to grow; one that protects open space and farmland, revitalizes neighborhoods, keeps housing affordable, and makes communities more livable. As president, Mr. Glendening travels the country advising about the dangers of urban sprawl and its effect on our health, our prosperity and our communities as well as recommending a range of solutions to governors and public leaders.

New desktops won’t close real tech gap

2010-01-28T17:10:00.001-05:00

By Peter Butler

Vice President of Technology and Telecommunications

A top Obama Administration official recently claimed “federal workers having better computers at home than in the office” has led to a technology gap between the public and private sectors that nets “billions of dollars in waste.” Unfortunately, the comments fell short of addressing the real crisis for America’s CIOs.

The Hill reported the comments made by Office of Management and Budget Director Peter Orszag in a statement last week before a technology summit between Obama and dozens of corporate CEOs. While it’s probably fair to say government offices need technical upgrades, swapping out screens won’t solve the real issue. If only the solution were that simple.

The problem lies more with how government tracks and monitors the dollars it is allotted to support today’s most complex problems. Government could gain greater efficiencies through the enterprise deployment of asset management systems and project portfolio management systems. With an asset management system, government can track how its resources are being utilized. Also, they can determine whether the technology resources are up to date and being used in compliance with regulatory demands. With project portfolio management, government officials can better understand what they are spending our money on and, most importantly, why we are spending on that category. It’s imperative for our government leadership to have a real-time, birds-eye view into where their people, processes and technology are focused.

These are tough choices. And neither will come cheap.

Peter Butler is the vice president of the technology practice of NSI. In this capacity, Mr. Butler manages the day-to-day operations of the technology practice, leading efforts for new client acquisition, client management and P&L responsibility. Prior to NSI, Mr. Butler was an account director for Mainline Information Systems, CA, and Idea Integration. In 1998, Mr. Butler left the public sector to launch Homes.com as the vice president of Product Development. The site grew quickly, launching branded realtor and broker sites, and remains one of the leading portals today for online real estate. Mr. Butler also served as spokesperson for Florida Governor Bob Martinez in 1989 before changing his focus to internet communications. After launching the web strategies for Florida’s Leon County and the City of Tallahassee, Mr. Butler turned his attention to the State of Florida’s internet launch, and was project director for the State of Florida’s award winning web team under Governor Lawton Chiles.

Nevada governor’s threat should be wakeup call

2010-01-28T16:54:00.001-05:00

By Christine Ferguson

Senior Advisor

We’ve seen this happen before. Unlike the Federal government, states must balance their budgets every year. The economy tanks, state budgets shrink and as governors crunch the numbers they can’t help but consider axing the biggest ticket item: Medicaid.

Nevada Governor Jim Gibbons has done just that, according to a report from the Las Vegas Review-Journal.

A conservative Las Vegas-based think tank said the idea could save the state money and suggested that poor Nevadans probably would be better off without Medicaid, according to the article. But legislative leaders said Gibbons' idea would not receive their approval, which might be required. And a nonpartisan policy research group that monitors Congress said dumping Medicaid would leave many Nevadans without health care.

I’d be willing to bet it won’t happen after the governor’s staff researches the implications of such action. It’s a pretty difficult move to justify. If he follows through, Nevada would become the first state to have dropped Medicaid during tight times.

This should, however, be a wakeup call for Congress as to the magnitude of the problems facing states when it comes to health care and Medicaid costs. Despite at least a 50 percent match in federal funds, coming up with the remaining tab is getting more and more difficult in this economy. The cost of health care to states continues to grow and to infringe on other priorities – in some states health care consumes almost 30% of the state budget.

In the coming months, Congress must consider extending the enhanced match for Medicaid until the country climbs out of economic crisis. Otherwise, the results could be devastating, perhaps particularly so for 233,000 Nevadans who currently receive Medicaid benefits.