Drinking water -- bottled or tap -- is regulated by a wide variety of agencies. The EPA is regulating 17 new chemicals in 2011. Image: Flickr / brimelow / CC-BY

This morning, an announcement was made that EPA drinking water standards are getting an update to address rocket fuel tap water. This reverses a 2008 edict of the Bush administration disallowing these new regulations. Perchlorate and 16 other volatile organic compounds will be included in new regulations.

EPA drinking water standards

The Environmental Protection Agency is responsible for setting standards of allowable contaminants in drinking water. Almost all drinking water contains something other than pure hydrogen dioxide — minerals, dissolved solids and thousands of chemicals can be in water. The EPA regulates how much of a wide variety of chemicals and bacterial contaminants can be in water before further purification steps have to be taken.

The EPA drinking water standards for perchlorate

Perchlorate is a naturally occurring chemical, but it can also be manufactured for use in rocket fuel, bleach, fertilizers and fireworks. Perchlorate is not directly dangerous to human health, but may affect iodine uptake in the thyroid. A lack of iodine can lead to clinical depression, neurological disorders, preterm births and obesity. Several states already limit perchlorate, but up to 4 percent of municipal water, consumed by about 17 million people, could have heavy perchlorate contamination. That means about 4 percent of municipal taps are pouring out rocket fuel tap water.

EPA drinking water standards for VOC compounds

The new 2011 EPA regulations for drinking water contain limits on more than just perchlorate. Volatile organic compounds, otherwise known as VOC compounds, are also going to be regulated. A total of 17 individual chemicals, including perchlorate, will have new limits set. Volatile organic compounds are usually found in industrial manufacturing and solvents and can have a wide variety of detrimental effects. In general, VOC compounds are considered dangerous. The new EPA regulations are set to take effect this year.

Sources

CNN
Wikipedia – Thyroid Horomones

Getting the Energy Star certification may be too easy. Image from Flickr.

When shopping for a new small or large appliance, the Energy Star label is supposed to be a guide of energy usage. A joint venture of the Environmental Protection Agency and the Energy Department, the Energy Star label currently functions as the guide for millions of dollars of government subsidies, as well as hundreds of thousands of consumer decisions each year. This is why it is especially worrisome that a recent Government Accountability Office audit was able to get over a dozen bogus products approved – everything from a gas-powered alarm clock that would practically require auto financing all the way to a space heater with fly paper attached.

Energy Star approved unrealistic products

When the Government Accountability Office submitted fictional products for approval, they were granted the Energy Star logo 15 times out of 20. Energy Star certifications were offered to products that claimed 20 percent more efficiency than any other product on the market – with absolutely no questions asked. A bogus air cleaner that was really a space heater with a duster and fly paper taped on was also certified.

Energy Star partnerships

Beyond approving products that were bogus or improbably specified, the GAO report on Energy Star also found that companies could easily get certified as partners. Once a company is certified an Energy Star Partner, they are allowed to use the Energy Star logo. This means products that carry the Energy Star logo may or may not have ever been tested by the EPA and Department of Energy. In other words, getting an Energy Star label may be easier than getting instant payday loans.

Energy Star requires outside certification?

For some products, the Energy Star label requires that the manufacturer provides “independent laboratory certification” of their energy savings claims. This includes products such as fluorescent lights and energy-efficient windows. However, fridges, washing machines, dishwashers, air conditioners, water heaters and more are not necessarily verified.

Changes to the Energy Star system

The Environmental Protection Agency and Department of Energy have both put out statements responding to the GAO report. The Energy Department has “promised to set up a system of independent verification of products.” No matter what happens, it is certain that the Energy Star logo and Energy Star Certification need some serious attention – from regulators, their own government agencies and the public.

Sources:

G.A.O. Report 10-470

The Environmental Protection Agency (EPA) has now confirmed that scientific evidence clearly shows that greenhouse gases “threaten the public health and welfare of the American people”.  The EPA has identified the main pollutant as “carbon dioxide from burning fossil fuels” and called for a reduction in these emissions to be enacted by Congress or the White House.

Many call the timing of this announcement political due to the upcoming international conference on climate change. Environmentalists, however, seem thrilled with the timing because it shows a commitment on the part of the U.S. to step-up pollution control efforts either with or without the help of Congress.

A history of token responses

The United States has long been criticized by the rest of the world for putting its economy ahead of environmental responsibility. Many nations have condemned U.S. environmental legislation as being far too little and far too slow to make any real impact. Big business lobbies, especially the oil industry, have argued that too strong an environmental agenda would cripple many businesses. Given the latest health findings, however, and given that the auto industry already lies crippled, this argument seems to have lost some of its sway.

The connection between a green environment and the green in our wallets

Actually, the connection between money and values has been around for a long time. According to Investopedia, ancient cultures including the Jewish culture, have long promoted investing in companies that promote values that match their religious beliefs and avoiding businesses with that promote values counter to their religious teachings.

Here in the United States, the Quakers have long promoted a sense of moral stewardship by asking believers to patronize companies aligned with their beliefs. According to the Institute of Socially Responsible Investing (SRI), beginning in the 1970s, this value-based investment style has come to characterize the “buy green” movement in the U.S.

What’s in it for us?

What’s in it for us may very well be our continued existence. The concept of “green” business has moved from the fringe to center stage, and the green advertisements of major companies demonstrate a growing belief that economic health, human health, and environmental responsibility are all intertwined.  Johnson and Johnson brags in a recent commercial that one of their power plants is powered by emissions from a garbage dump. IBM boasts of its cooler and more environmentally friendly servers. The list of green-conscious companies is growing by the day.

What is in it for you?

As an individual investor, a new layer of research must be added to our usual investment criteria. In addition to all the balance sheet issues, investors need to also analyze how the companies they’re considering buying into are positioned with regard to environmental issues. Will these companies hold up well to public scrutiny? Will they do well with existing and proposed environmental legislation? By investing in companies with environmentally sound practices, you will be investing in a healthier and cleaner future as well as greater financial returns.