OF ENERGY IN THIS COUNTRY, WE HAVE TO FACE THE FACT THAT THE CONVENTIONAL FUELS WILL RUN OUT OR GET EXPENSIVE AND WE HAVE TO START TRYING OTHER WAYS OF HEATING OUR BUILDINGS.

THIS WAS AN ATTEMPT TO BRING A TECHNOLOGY THAT'S BEEN AROUND FOR A LONG TIME AND PUT IT IN A SETTING WHERE IT'S NEVER BEEN USED BEFORE.

Narrator: BARRE, VERMONT.

THIS HOUSING PROJECT RECENTLY INSTALLED AN INNOVATIVE HEATING SYSTEM FUELED BY WOOD CHIPS.

TIM MAKER MANAGES THE PROJECT.

WE REDUCED THE OVERALL COST FOR HEAT AND HOT WATER HERE FROM $55,000 A YEAR DOWN TO $14,000 A YEAR.

TENANT ELECTRIC BILLS... AVERAGE WINTER ELECTRIC BILL UP HERE FOR A TENANT WAS $250 A MONTH AND NOW THAT'S $55 A MONTH SO IT MADE AN INCREDIBLE DIFFERENCE FOR CASH FLOW FOR PEOPLE WHO ARE STRAPPED FOR MONEY.

AND IN ADDITION THE SYSTEM HAS BEEN SUCCESSFUL IN THAT IT SUPPLIES HEAT AND HOT WATER YEAR ROUND AT AN AVERAGE COST OF UNDER $25 A MONTH PER APARTMENT WHICH IS VERY GOOD.

Narrator: THE NON-PROFIT COMPANY RESPONSIBLE FOR FINANCING THIS ENERGY-SAVING TECHNOLOGY IS V.E.I.C.

BASICALLY IT WOULD AVOID BUYING OIL BUYING KEROS... ...FOR SOME THRESHOLDS.

THEY GOT USED TO IT AND THEY SOMEHOW MANAGED TO INCORPORATE THAT INTO THEIR BUDGETS.

EXCEPT FOR LOW-INCOME PEOPLE.

THE ENERGY CRISIS NEVER WENT AWAY FOR LOW-INCOME PEOPLE.

Narrator: BETH SACHS IS THE EXECUTIVE DIRECTOR.

THE POPULATION AS A WHOLE PAYS APPROXIMATELY 3% OF THEIR TOTAL ANNUAL HOUSEHOLD INCOME FOR ENERGY.

LOW-INCOME HOUSEHOLDS PAY AS MUCH AS 13% OR MORE.

THE ENERGY CRISIS NEVER WENT AWAY FOR THEM.

WHEN IT COMES TO HEATING BUILDINGS WE DON'T KNOW WHAT WE'RE GOING TO DO WITH ALL THE EXISTING BUILDINGS IN THIS COUNTRY WHEN FUEL OIL AND NATURAL GAS AND LP GAS BECOME PROHIBITIVELY EXPENSIVE OR SCARCE.

AND THIS PROJECT, I THINK TRIED TO BEGIN ANSWERING THAT QUESTION SAYING, "HERE'S ONE CASE, LET'S SEE HOW WE CAN APPLY "A RENEWABLE FUEL TECHNOLOGY IN THIS INSTANCE-- SEE WHAT HAPPENS."

IT'S BEEN A SUCCESSFUL EXPERIMENT.

IT'S CLEAR THAT THROUGH EMERGING TECHNOLOGIES AND RESEARCH, WE CAN DO THE SAME WITH LESS.

WE DON'T HAVE TO BE COLD.

WE DON'T HAVE TO BE UNCOMFORTABLE OR IN THE DARK.

Woman: GOOD MORNING, WASHINGTON ELECTRIC.

Narrator: IN CENTRAL VERMONT THE WASHINGTON ELECTRIC COOP WAS TRYING TO SAVE MONEY.

V.E.I.C.

PROPOSED CUTTING THE COOP'S COSTS BY ENCOURAGING MEMBERS TO USE LESS ENERGY.

GENERAL MANAGER JOE BONGIOVANNI.

WE TAKE A LOOK AT NOT ONLY TRYING TO BUY POWER AS INEXPENSIVELY AS POSSIBLE AS MUCH AS THAT IS POSSIBLE BUT ALSO IN TAKING A LOOK AT HOW TO HELP THE MEMBERS USE THE ELECTRICITY MORE EFFICIENTLY AND MORE WISELY AND LESS WASTEFULLY AND AT A LESSER COST.

( birdsong ) Narrator: THE COOP CONTRACTED WITH V.E.I.C.

TO CARRY OUT ITS STRATEGY TO REDUCE ENERGY DEMAND.

YOU SAID YOU HAVE A WATER HEATER?

ELECTRIC WATER HEATER?

WE HAVE AN ELECTRIC WATER HEATER.

AND IT'S 52 GALLONS.

Narrator: AS A PART OF THE PLAN COOP MEMBERS MAY REQUEST A HOME ENERGY AUDIT.

DO YOU HAVE AN ELECTRIC DRYER?

Narrator: VADIM BELOTSERKOVSKY PERFORMS THE AUDITS.

THE RANGE AND THE OVEN ARE BOTH GAS?

GAS OR WOOD.

FREEZERS?

NO FREEZERS.

Narrator: ENERGY SAVED IS POWER THE COOP DOESN'T HAVE TO BUY.

IS THERE A SUMP PUMP IN THE BASEMENT?

NO, NO SUMP PUMP.

WHAT'S THE WATER SUPPLY FOR THE HOUSE?

VIRTUALLY EVERY POWER SOURCE THAT WE HAVE HAS ITS NEGATIVE SIDES IN TERMS OF THE ENVIRONMENT.

THAT REALLY CAN'T BE DENIED.

IT'S ALWAYS A QUESTION OF WHAT ALTERNATIVES THERE ARE AND, TO ME, DOING WHAT YOU'RE DOING WITH LESS... USING LESS POWER IS ONE OF THE OPTIONS THAT YOU HAVE AND THAT'S THE OPTION THAT WE'RE INVESTING IN.

UTILITIES ARE NOW RESPONSIBLE FOR, AND DEFINING THEMSELVES AS PROVIDING SERVICES, NOT PROVIDING ELECTRICITY OR GAS.

THOSE ARE THE TWO REGULATED FUELS.

SO THAT THEY ARE CONCERNED WITH HOW IT GETS USED AND THEY ARE BEING REQUIRED TO LOOK AT WHETHER OR NOT THEY CAN ACQUIRE SUPPLY BY REDUCING CUSTOMERS' NEED FOR ELECTRICITY RATHER THAN BUILDING NEW POWER PLANTS.

WHAT ABOUT NINTENDO?

DO THEY SUCK A LOT?

UM, NO... PLEASE SAY YES.

SORRY-- MOST ELECTRONICS AREN'T MAJOR USERS WHEN YOU COMPARE IT TO THINGS LIKE LIGHTING, REFRIGERATION THE WATER HEATER.

Narrator: VADIM SCRUTINIZES EVERY USE OF ELECTRICITY IN THE HOUSE.

AS FAR AS WATER USE GOES I WANTED TO CHECK THE WATER FLOW THAT YOU HAVE AT THE FAUCETS.

Bongiovanni: WE SEE AN INVESTMENT PATTERN THAT GIVES US THE LOWEST OVERALL COST OF SERVICE THE LOWEST OVERALL REVENUE REQUIREMENT-- THAT'S THE ONE THAT WE WANT TO PUT IN PLACE.

Sachs: WE HAVE BEEN SUCCESSFULLY, I THINK PROVIDING ENERGY SERVICES, SAVING ENERGY, EMPLOYING PEOPLE IN MEANINGFUL WORK FOR SIX YEARS WITH LITTLE TO NO HELP OR ENCOURAGEMENT FROM THE FEDERAL GOVERNMENT AND I THINK WITH THE CHANGE IN ADMINISTRATION THERE'S NOTHING BUT GROWTH AND OPPORTUNITY.

ON THE OTHER HAND, I THINK THAT WE CAN'T JUST LOOK TO THE FEDERAL GOVERNMENT.

UM, THERE'S ACTUALLY A FLUORESCENT TUBE INSIDE THIS AND IT'S A GLASS GLOBE THAT'S COVERING IT.

THIS IS A 15-WATT BULB THAT PUTS OUT ROUGHLY AS MUCH LIGHT AS A 60-WATT.

SO YOU'RE ONLY USING A QUARTER OF THE POWER AND THAT'S THE ADVANTAGE TO THE COOP TO PUT THESE IN.

MOST OF THE COOP MEMBERS HERE ARE INTERESTED IN WHAT'S GOING ON, ESSENTIALLY.

THEY SEE AS PART OF THIS EFFICIENCY AND CONSERVATION POWER PLANT AS BEING BUILT IN THEIR HOMES LITTLE BY LITTLE AND IT'S SOMETHING PEOPLE CAN UNDERSTAND PEOPLE CAN SEE; IT'S VERY TRANSPARENT.

I THINK THIS FIELD WILL CONTINUE TO GROW AND I THINK, IF ANYTHING, THERE'S REALLY AN AWARENESS NOT JUST OF THE FINANCIAL BENEFITS OF ENERGY EFFICIENCY BUT THAT THERE IS A REAL CONCERN ABOUT HOW IT CAN MITIGATE THE ENVIRONMENTAL DAMAGE THAT WE'RE DOING.

I THINK THAT PEOPLE WILL CONTINUE TO BE COMMITTED TO DOING SOMETHING ABOUT GLOBAL WARMING DOING SOMETHING ABOUT STRIP-MINING AND DOING THINGS ABOUT DRILLING IN THE ALASKA WILDLIFE REFUGES AND THAT THEY WILL WANT TO DO THEIR PART-- ONE, TO SAVE MONEY, AND TWO, TO SAVE THE ENVIRONMENT.

Woman: WHEN I WAS GOING OUT TO WORK, I WAS ONLY WORKING PART TIME BECAUSE OF THE CHILDREN, AND I WAS PAYING DAY CARE AND BECAUSE I WAS ONLY PART TIME I HAD TO PAY FOR MY OWN INSURANCE AND BY THE TIME I GOT DONE, I WASN'T MAKING ANYTHING.

THAT WAS A HOBBY THAT BARELY PAID FOR ITSELF AND I DECIDED, "THIS IS CRAZY."

I WAS GOING OUT AND TEACHING OTHER PEOPLE'S CHILDREN AND MY OWN WERE AT A DAY CARE.

WHY NOT STAY HOME WITH THEM AND SAVE ALL THE EXTRA COSTS?

Narrator: LILY'S HUSBAND ELDRED DELIVERS THE PAPER.

LIKE, I HAVE NO DESIRE TO BE A PAPER SALESMAN PER SE.

I WASN'T DRAWN INTO THIS FOR ANY OF THOSE REASONS AND NEITHER WAS LILY.

SHE DIDN'T... IT WAS THE CONCEPT OF DISTRIBUTING RECYCLED PAPER IS HOW WE GOT INTO THE PAPER BUSINESS AND THAT'S THE ONLY THING THAT KEEPS US IN IT.

Lily: THE IDEA OF CLOSING THE LOOP, IT STARTED TO BECOME AN ISSUE.

Narrator: FOR RECYCLING TO WORK, PEOPLE NEED TO BUY RECYCLED PRODUCTS.

SO WE TRIED TO START BUYING RECYCLED PAPER FOR OUR OWN USE AND IT WAS VERY DIFFICULT TO FIND IT.

Narrator: LILY HAD WORKED IN A SCHOOL AS A SPEECH PATHOLOGIST.

SHE WONDERED WHY THE SCHOOL DIDN'T USE RECYCLED PAPER.

SHE WAS TOLD IT WASN'T AVAILABLE.

...OTHER PEOPLE MUST BE FINDING THE SAME THING AND MAYBE THERE'S SOMETHING TO BE DONE HERE.

I, AT THAT POINT, WAS HOME WITH THE KIDS AND A LITTLE BORED ANYWAY.

THERE'S ONLY SO MUCH YOU CAN DO WITH LAUNDRY AND I HAD BEEN A PROFESSIONAL BEFORE THAT.

Narrator: LILY DISCOVERED THERE WASN'T A SINGLE RECYCLED PAPER DISTRIBUTOR IN THE STATE OF VERMONT.

Eldred: ...BECAUSE WE WERE THE FIRST RECYCLED PAPER COMPANY IN THE STATE OF VERMONT.

WE WERE THE FIRST ONES TO SELL RECYCLED PAPER AND WE WERE, AND ARE, I SHOULD SAY THE ONLY ONES WHO STILL EXCLUSIVELY SELL RECYCLED PAPER.

WE DON'T SELL ANY OTHER KINDS OF PAPER ALONG WITH IT.

AND WE'VE MAINTAINED A CUSTOMER BASE OF PEOPLE A LOYAL ONE, AGAIN, BECAUSE WE WERE A COMMITTED ENVIRONMENTAL COMPANY IN THE BEGINNING AND NOT JUST A PAPER DISTRIBUTOR WHO HAPPENS TO CARRY A DOZEN-- "PUSH IT, WE'LL SELL IT IF YOU WANT IT."

AND THAT'S THE NICHE WE'VE FOUND RIGHT NOW AND I THINK THAT'S WHAT'S GOING TO KEEP US IN BUSINESS.

THE SCHOOLS AROUND HERE BUY FROM US AND THAT'S BEEN SOMETHING WE'VE BEEN ABLE TO OFFER TO THE COMMUNITY AND FEEL REAL GOOD ABOUT.

SCHOOLS WERE A REAL FOCUS FOR US A REAL IMPORTANT PART OF WHAT WE WERE DOING.

WE WANTED TO CHANGE THE WAY EVERYBODY IN SCHOOLS PERCEIVED THE PAPER CHASE AND THE WASTE.

AND SO WE AGGRESSIVELY WENT AFTER SCHOOLS AND SCHOOL BIDS COLLEGES AND ELEMENTARY SCHOOLS ALIKE.

YOU KNOW, WE'RE DEVELOPING A GENERATION OF KIDS TO WHOM RECYCLING IS ABSOLUTELY SECOND NATURE.

WE'RE GOING TO HAVE TO DEVELOP A GENERATION TO WHOM BUYING RECYCLED PRODUCTS IS ALSO SECOND NATURE-- THAT IT IS SOMETHING THAT YOU SEEK OUT WHEN YOU'RE BUYING SOMETHING IT WAS NOT... SOMETHING THAT'S MADE FROM RECYCLED PRODUCTS IS A REAL PLUS FOR THE BUYER.

IT'S NEARLY A 180-DEGREE DIFFERENCE FROM THE '50s WHEN THE WORD "DISPOSABLE" BECAME SUCH A HOT WORD IN ADVERTISING.

YOU BOUGHT SOMETHING BECAUSE IT WAS DISPOSABLE BECAUSE WHEN YOU WERE DONE WITH IT YOU COULD THROW IT AWAY.

AND THERE WASN'T ANY OTHER RECYCLED COPY PAPER TO BE FOUND WHEN WE STARTED.

IT WAS AMAZING, JUST THREE YEARS AGO BECAUSE NOW YOU CAN WALK INTO ANY LOCAL OFFICE SUPPLY STORE AND GET RECYCLED PAPER.

YOU COULDN'T DO THAT THREE YEARS AGO.

YOU COULD ONLY MAIL-ORDER IT FROM THE MIDWEST OR CALIFORNIA.

THERE WAS A PLACE IN CALIFORNIA, TOO.

SO IT WAS LIKE EVERYONE WAS LOOKING FOR IT SITTING AROUND WAITING FOR IT AND ALL OF A SUDDEN WE HAD IT.

MOST PAPER MILLS THAT HAVE BEEN GOING ALONG FOR YEARS AREN'T THRILLED ABOUT HAVING TO RETOOL TO MAKE RECYCLED PAPER.

EVERYBODY NEEDS PAPER, EVERYBODY BUYS PAPER.

THEY MAKE PAPER.

THEY WOULD JUST AS SOON STAY AS THEY ARE.

IT'S GOING TO HAVE TO BE MARKET-DRIVEN.

THERE ARE GOING TO HAVE TO BE, FINALLY, ENOUGH PEOPLE WHO ARE WILLING TO PAY A DOLLAR A CARTON $1.50 A CARTON MORE TO BUY RECYCLED PAPER.

I THINK RECYCLED PAPER SHOULD COST LESS.

WE ALL KNOW THAT BECAUSE THE BULK MATERIAL IS LESS EXPENSIVE THE PROCESS IS LESS EXPENSIVE, IT USES LESS WATER IT USES LESS ENERGY TO PRODUCE, SO WHY DOESN'T IT COST LESS?

SUPPLY AND DEMAND IS A BIG PART OF IT.

THE OTHER THING IS, I THINK, WITH THE VIRGIN PRODUCT THERE ARE HIDDEN COSTS THAT AREN'T REFLECTED IN THE ACTUAL PRICE OF THE PAPER.

WE ALL KNOW THAT THE PAPER COMPANIES HAVE A GOOD DEAL WITH THE NATIONAL FORESTS AND THAT THEY GET THEIR BULK PRODUCT PRETTY CHEAP A LOT CHEAPER THAN WHAT IT'S REALLY VALUED AT AND IF THEY WERE ACTUALLY PAYING FOR TREES THERE WOULD BE A DIFFERENCE BUT THEY AREN'T PAYING THE KIND OF PRICE THEY PROBABLY SHOULD BE GIVEN THE EFFECT THAT WE END UP HAVING.

HERE, LET'S FIND A PLACE FOR THAT.

THE ENVIRONMENTAL IMPACT OF WHAT THEY DO ISN'T REFLECTED IN THE COST OF THEIR PAPER.

IF BY BEING THE FIRST ONE IN THE STATE IF WE HAVE DRIVEN THE MACHINE A LITTLE MORE AND DRIVEN THE WHEEL; IF BY OUR PRESENCE OF JUST STARTING TO SELL IN THIS STATE WE'VE MADE IT MORE AVAILABLE STATEWIDE THEN THAT WAS A GOOD THING TO DO AND THAT'S FINE.

I THINK PEOPLE FEEL THEIR LITTLE PART ISN'T ENOUGH BUT IF YOU LIVE A CLEAN LIFE AND YOU JUST DO YOUR THING EVEN IF YOU DON'T GET OUT THERE AND TRY AND CHANGE THE WORLD BUT YOU RECYCLE AT HOME AND YOU MAKE DECISIONS WITH A CONSCIOUSNESS THEN YOU CAN MAKE A DIFFERENCE AND AS A GROUP IF WE'RE ALL DOING THAT IF EVERYBODY JUST MAKES A FEW SMALL CHANGES IN THEIR LIFESTYLE IT CAN MAKE A BIG DIFFERENCE.

WE'RE NOT GETTING RICH.

WE DON'T WANT TO GET RICH.

WE FEEL RICH AND I THINK "RICH" IS A FUNNY WORD.

Man: I CAN JUSTIFY BEING A WORKAHOLIC BECAUSE I CAN ALWAYS SAY TO MYSELF "YEAH, I'M MAKING MONEY, BUT I'M CLEANING UP THE ENVIRONMENT."

Narrator: WAITSFIELD, VERMONT.

GASOLINE FROM THIS SERVICE STATION'S UNDERGROUND STORAGE TANKS HAS LEAKED INTO THE GROUND.

BRAD HORN IS A CHEMICAL ENGINEER.

YOU WANT TO VALVE EVERY ONE BUT THERE'S SO MANY HERE THAT IT WOULD BE... Narrator: HE SPECIALIZES IN HAZARDOUS WASTE CLEAN-UP.

THE STATE IS OUT HERE NOT BECAUSE THEY DON'T WANT TO HAVE GASOLINE IN THE SOIL.

THEY DON'T WANT PEOPLE DRINKING WATER THAT HAS GASOLINE IN IT AND THEY'RE WORRIED ABOUT THE FIRE HAZARD AND THE HEALTH EFFECTS TO HUMAN POPULATIONS.

AND SECONDARILY, YES, EVERYONE'S WORRIED ABOUT THE ENVIRONMENTAL IMPACTS ON GROUNDWATER AND SOIL MICROORGANISMS... Narrator: THERE ARE 1,452 GAS STATIONS IN VERMONT.

MORE THAN 900 OF THEM HAVE LEAKED.

90% OF THE MONEY IS SPENT ON GETTING THE LAST 1% OF THE CONTAMINATION OUT OF THE GROUND.

IT'S A BIG ECONOMIC ISSUE TO DECIDE DO WE HAVE TO GET THE LAST HALF A PERCENT OUT OF THE GROUND OR IS IT SAFE TO LEAVE IT THERE?

SO MY GUESS IS THAT... Narrator: THE AVERAGE COST FOR SITE CLEAN-UP IS $52,000.

THIS SITE HAS ALREADY COST OVER HALF A MILLION.

ON ANY REMEDIATION SITE WHAT YOU'RE TRYING TO DO IS TAKE THE CONTAMINANTS WHICH HAVE BEEN DISPERSED, AND COLLECT THEM.

I IMINE... WHAT DO YOU THINK, DAVE?

SO THAT'S A TRAP.

SO WE'VE GONE DOWN TO TWO-INCH.

ORIGINALLY, SOIL VENT SYSTEMS LIKEHIS WENT IN WHEN THERE WAS A HAZARD IN A BUILDING.

I KNOW THE EARLIEST WORK THAT I DID WE WERE NEVER WORRIED ABOUT THE PRODUCT GETTING INTO THE GROUND THE CONTAMINATION GETTING INTO THE GROUND.

WE WERE WORRIED ABOUT EXPLOSIONS IN BUILDINGS AND OFTEN WE WERE BROUGHT ON SITE AFTER AN EXPLOSION HAD OCCURRED.

AND IT WAS USUALLY AT REFINERIES OR BULK STORAGE FACILITIES.

NOBODY THOUGHT THAT UNDERGROUND STORAGE TANKS AT CORNER GROCERY STORES WOULD HAVE THESE KIND OF PROBLEMS.

WE'VE GOT THOSE, THAT AND THE ONLY THING WE HAVEN'T LOOKED AT IS ALONG THAT SIDE OF THE HOUSE WHICH LOOKS PRETTY STRAIGHTFORWARD.

YOU WERE OVER THERE?

I NEVER CONSIDERED MAKING A LOT OF MONEY AS A FACTOR IN MY INTEREST IN THE ENVIRONMENTAL FIELD.

AS IT TURNS OUT, HAZARDOUS WASTE REMEDIATION IS AN EXTREMELY LUCRATIVE FIELD, BY LUCK.

15 YEARS AGO, I WOULD HAVE SAID "THE PROBLEM IS ALL THE BIG, BAD CORPORATIONS."

AND MORE OFTEN THAN NOT, IT'S NOT EVEN A CORPORATION THAT'S CAUSED THE HAZARDOUS WASTE PROBLEM I'M DEALING WITH-- A BIG CORPORATION.

IT'S SOMEONE WHO DIDN'T REALIZE WHAT THEY WERE DOING.

I THINK WHAT'S HAPPENED IS OVER THE PAST TEN YEARS THE TECHNOLOGY OF ANALYZING THE IMPACTS OF HAZARDOUS WASTE RELEASES ON HUMANS AND THE ENVIRONMENT HAS DEVELOPED SUCH THAT WE ARE SEEING THAT THERE ARE NEGATIVE IMPACTS ON... DUE TO OUR ACTIVITIES, THE WAY WE'VE BEEN DISPOSING OF HAZARDOUS WASTE OR LEAKS AND SO THAT'S DRIVEN THE REGULATORS TO ENFORCE CLEAN-UPS LIKE THIS AND THEREFORE DRIVEN PEOPLE LIKE ME TO TRY TO FIND CHEAPER WAYS TO CLEAN UP THE WASTE.

Narrator: HINSDALE, NEW HAMPSHIRE.

THIS IS THE SITE OF AN ABANDONED PAPER MILL.

THE DECLINE OF MANUFACTURING IN NEW ENGLAND HAS LEFT MANY BUILDINGS EMPTY AND CONTAMINATED.

BRAD HORN WANTS TO BUY ONE OF THESE BUILDINGS.

WELL, THE WHOLE IDEA IS THAT ITS VALUE IS DEGRADED OR PERCEIVED TO BE GREATLY DEGRADED BECAUSE OF THE PRESENCE THE POTENTIAL PRESENCE OF CONTAMINANTS.

IT MIGHT EVEN BE PERCEIVED BY THE OWNER AS A LIABILITY.

I HAVE THE EXPERTISE TO DEFINE THAT LIABILITY PRETTY WELL.

SO I CAN... SO I'M THEN IN A POSITION TO ASSESS WHETHER OR NOT I CAN MAKE MONEY BUYING AND CLEANING UP A PROPERTY WHEREAS USUALLY THE SELLER IS NOT IN THAT POSITION.

ONE OF THE PROBLEMS WITH THIS IDEA IS IT TAKES YEARS TO CLEAN UP A PROPERTY SO YOU DON'T BUY A PROPERTY AND FIX IT AND SELL IT IN TWO MONTHS.

IT'S A LONG-TERM INVESTMENT-- FIVE, MAYBE EVEN TEN YEARS.

I TALK TO AS MANY PEOPLE AS I CAN ABOUT THE IDEA BECAUSE I GET DIFFERENT CRITICISMS, OFTEN CONSTRUCTIVE ABOUT WHY ITON'T WORK WHICH IS EXACTLY WHAT I NEED TO HEAR.

BUILDINGS CAN BE RECYCLED, AND THEY SHOULD BE ESPECIALLY IN NEW ENGLAND, ALL THE BEAUTIFUL OLD MILLS.

I'M A BUSINESSMAN AND I HOPE THAT I'M A SHREWD ONE BUT I'M PROBABLY A BETTER ENVIRONMENTALIST THAN I AM A BUSINESSMAN.

I LIKE THE IDEA OF MAKING GOOD MONEY DOING SOMETHING THAT'S NEEDED ENVIRONMENTALLY.

AND I THINK IT'S... I THINK IT'S A MARKET THAT HASN'T BEEN TAPPED.

Man: IT WAS DURING THE HEIGHT OF THE OIL EMBARGO.

EVERYBODY WAS IN THE FIREWOOD BUSINESS OR THE WOOD BUSINESS AND I HEARD ABOUT A DEMONSTRATION AT VERMONT TECHNICAL COLLEGE ABOUT WOOD CHIPS AND GASIFICATION SO I WENT WITH A FRIEND AND I SAW A EUROPEAN TECHNOLOGY THAT I'D NEVER SEEN BEFORE.

THEY WERE TAKING CHIPS AND GASIFYING THEM FOR ENERGY TO DRIVE CARS WITH USING INFERIOR TYPES OF WOOD.

AND I BASICALLY BECAME A BORN-AGAIN WOOD-BURNER.

Narrator: BRISTOL, VERMONT.

THE TECHNOLOGY THAT SPARKED LOU BRAVAKIS'S IMAGINATION IS MANUFACTURED TODAY IN THIS BACKYARD MACHINE SHOP.

BRAVAKIS AND HIS TWO PARTNERS BUILD HEATING SYSTEMS WHICH USE WOOD CHIPS AS FUEL.

THESE HIGHLY EFFICIENT MACHINES REDUCE ENERGY COSTS.

OUR FIRST ONE WAS THE EAST MONTPELIER SCHOOL WHICH WE INSTALLED THE SYSTEM FOUR YEARS AGO.

THERE'S A SCHOOL THAT WAS USING $38,000 WORTH OF ENERGY A YEAR IN THE FORM OF ELECTRIC HEAT AND NOW USES SOMEWHERE AROUND $3,500.

OF ALL THE FUEL SOURCES INCLUDING NUCLEAR, SOLAR, WIND WOOD IS THE ONLY BIOMASS, IT'S THE ONLY SOURCE THAT DOES NOT CONTRIBUTE TO THE GREENHOUSE EFFECT SIMPLY BECAUSE A TREE TAKES IN 30 TO 50 TIMES THE AMOUNT OF CO2 IN ITS LIFE CYCLE THAN IT GIVES OFF WHEN YOU BURN IT OR IF IT ROTS.

THERE ARE TREES THAT ARE GROWING EVERYWHERE AND IF ALL WE HAVE TO DO IS TAKE THE TREE AND GRIND IT UP NOT EVEN DO A MANUFACTURING PROCESS, JUST A SIMPLE GRINDING ALMOST AN AGRICULTURAL FORESTRY PRACTICE TO IT YOU CREATE A FUEL SOURCE THAT CONTAINS 84% GAS, BIOMASS GAS AND YOU CAN USE THAT INSTEAD OF THE OIL SO ONCE YOU CATCH THAT IDEA YOU SEE LITTLE OIL WELLS ALL OVER THE PLACE.

THE WAY WE'VE CREATED OUR BUSINESS WHAT HAPPENS, WE CREATE ELEGANT MACHINERY AND DESIGNS THAT WE SELL AT A PRICE THAT MAKES IT AFFORDABLE FOR THE SAVINGS THAT IS GENERATED FROM NOT USING HIGH-PRICED FUEL.

FROM THAT, YOU CAN SPIN A LOT OF GREAT BENEFITS NOT ONLY ENVIRONMENTAL BUT ALSO LOCAL ECONOMIES.

( birdsong ) Narrator: SHELBURNE, VERMONT.

CHIPTEC IS INSTALLING A NEW HEATING SYSTEM DESIGNED SPECIFICALLY FOR THIS BARN COMPLEX.

BOB BENDER IS CHIPTEC'S BUSINESS MANAGER.

WELL, I DON'T THINK YOU NEED TO HAVE MONEY TO BE HAPPY BUT IT DOESN'T HURT.

AND SO IF YOU WANT TO HAVE FREEDOM AND POWER-- AND "POWER" ISN'T A BAD WORD IF IT'S USED WITH INTEGRITY-- BUT IF YOU WANT TO HAVE FREEDOM AND POWER THEN THE MORE RESOURCES YOU HAVE, THE MORE GOOD YOU CAN DO.

I LOOK AT MONEY AS WE'RE PLAYING A GAME OF BUILDING GASIFIERS AND MONEY IS LIKE THE SCORECARD.

AND YOU EITHER SCORE OR YOU DON'T GET TO PLAY THE GAME FOR VERY LONG.

IN THE WORLD THAT'S COMING ABOUT IF WE'RE ALL GOING TO SURVIVE ON THE PLANET WE'LL ALL HAVE TO DEAL WITH THE ENVIRONMENTAL ASPECTS OF OUR ACTIONS AND IT'S JUST A GREAT BUSINESS OPPORTUNITY.

SO THE IDEA IS HOW CAN WE DO THE BEST THING WE CAN FOR THE COMPANY THAT GIVES US THE ECONOMIC RESOURCES BOTH TO DEVELOP PRODUCT, TO SELL MORE OF THE PRODUCT TO CONTRIBUTE MORE TO THE KINDS OF THINGS THAT YOU WERE TALKING WITH WITH LOU: KEEPING THE AIR CLEAN, THE ENVIRONMENT CLEAN AND GIVING OUR CHILDREN A GOOD PLACE TO LIVE.

FRACTIONAL BY INCHES.

BY FRACTIONS OF INCHES.

YOU KNOW, YOU BUY OIL, YOU BUY GAS FOR YOUR CAR-- THERE'S A LOT OF COSTS THAT AREN'T ASSOCIATED WITH THAT THAT YOU'RE PAYING FOR BUT YOU'RE PAYING FOR IT SOME WAY OR THE OTHER WHETHER IT'S IN HEALTH CARE WHETHER IT'S IN AN ENVIRONMENTAL CLEAN-UP THROUGH YOUR TAXES ON SUPERFUND.

THE EXTERNAL FACTORS ARE, THERE'S... WE ARE ALL FINANCIALLY RESPONSIBLE FOR THE SOURCES THAT SUPPORT US.

THERE'S NO ESCAPING THAT.

TAKE A COMMUNITY THAT'S SPENDING A LOT OF MONEY FOR HEAT AND THAT MONEY'S ALL LEAVING THE COMMUNITY.

BUT IF YOU CAN BUY RESIDUE FROM THE LOCAL LUMBER MILL YOU NOT ONLY KEEP THAT MONEY IN THE COMMUNITY BUT YOU GET A MULTIPLIER EFFECT.

THE PEOPLE THAT WORK AT THE LUMBER MILL SPEND MONEY AT THE LOCAL GROCERY STORE AND THEIR CHILDREN GO TO THE SCHOOL THAT WE'RE HEATING.

SO IT'S A CYCLE THAT RUNS IN THE COMMUNITY.

BUT IT'S A REGIONALIZATION.

IT'S LIKE, WHAT DO WE HAVE AVAILABLE HERE THAT WE CAN KEEP HERE AND INTENSIFY THE ECONOMIC BENEFITS OF THAT AT THE SAME TIME DE-INTENSIFYING OR REDUCING THE ENVIRONMENTAL IMPACT.

SO THE WHOLE IDEA OF IF YOU HAVE A GOOD BUSINESS THEN YOU CAN'T HONOR THE ENVIRONMENT OR SOMEHOW THAT THE ENVIRONMENTALISTS ARE GETTING IN THE WAY OF GOOD BUSINESS I KIND OF THINK IS YESTERDAY'S NEWS.