It probably sounds backwards, but government rules and regulations can be great for business.

What types of rules and regulations?  Green!

Here is an article quoting Governor Arnold Schwarzenegger (a Republican) saying it’s so.

http://news.yahoo.com/s/nm/20081208/ts_nm/us_climate_schwarzenegger

“The green rules and regulations that will help save our planet will also revive our economies,” the governor said.

Why is this true?  The answer can be boiled down to two words: “First Cost“.

What is first cost?  It is the bane of existence of architects, mechanical engineers, builders and heating and air conditioning contractors.

Let’s say you are a Heating and Air Conditioning contractor who has been called out to a building because the air conditioner stopped working, and it’s very hot.

After several minutes in a 120 degree crawl space, you figure out that the compressor is broken on the 20 year old air conditioner.  You know that you can fix the compressor for $2,000.00, but the obvious solution to the problem is to replace the aging energy hog with an extremely efficient new air conditioner.  The cost of the new air conditioner will be $15,000.00, but you have cost analysis to show that the savings in energy costs will pay for the replacement A/C in five to seven years.

Which option does the building owner choose?  At this point the decision comes down to a dollar and cents decision versus a “do the right thing for the environment”  or “spend more now but save more in the long run” decision.  Sadly, most times the “first cost” (dollars and cents spent today) wins the day, the compressor is replaced and the energy hog goes back on line to continue gobbling excess power.

Why doesn’t the contractor just say “I can’t fix that 20 year old crock, you need to buy a new air conditioner.”  Some contractors approach their clients this way, but unfortunately, there are many people in the heating and air conditioning trades who will undercut the honest guys and do the cheap thing.  In order to compete, even the most well intentioned contractor has to provide both options, or he will lose the job.

This is where green regulations can come in to help the economy and the environment.  If the option to replace the compressor was not available, something which could easily be written into local, state or federal building codes, the building owner would only have to make choices between different types of energy efficient air conditioners and choose a reputable contractor.  A new air conditioner is sold and installed by a contractor, the manufacturer has to build a new one and the energy footprint of the building goes down.  We all breathe a little easier because greenhouse gas emissions are reduced.

By the way, the engineers who design the heating and air conditioning systems in our buildings are out front on this issue.  They are pushing for Net Zero Energy buildings.  Here is a video:

http://endependence.info/research/videos-c-3-v-98.html