Toyota’s previous comments with respect to the whole plug-in hybrid movement have bordered on hostile. The company, no surprise, has tried to downplay the potential by pointing to technical challenges, criticizing Prius hackers, and claiming that car owners don’t want to be burdened with having to plug their car into an electrical socket. But public pressure seems to have Toyota singing a different tune these days, making it the latest (and arguably most important) big car manufacturer to reveal that, yes, it’s working on plug-in hybrids behind the scenes. Perhaps it’s because George W. Bush himself is a supporter of the plug-in hybrid concept, or the fact that U.S. legislators seem intent on driving more funding toward the plug-in hybrid and flex-fuel options. It might also be because Ford and Daimler Chrysler are getting behind the plug-in concept and Toyota doesn’t want to lose its edge in the U.S. market.

On June 13 Toyota issued this release outlining its improved efforts to create environmentally sound and sustainable vehicles. Among a list of impressive initiatives under way, Toyoto Motor Corp. (TMC) made the following statement: “TMC will advance its research and development of plug-in hybrid vehicles (which can be charged from an external power source and provide electricity) and is currently working on a next-generation vehicle that can extend the distance traveled by the electric motor alone and that is expected to have a significant effect on reducing C02 and helping to abate atmospheric pollution.”

Whether this is open acknowledgement of a serious R&D program that will lead to commercialization of plug-in hybrids, or simply a marketing stunt to appease the plug-in hybrid movement, who knows…  I think Toyota, like other car manufacturers, realize that some huge advancements in battery technology are just around the corner and could soon unlock the potential of plug-in hybrids and EVs in general.

My Clean Break column in today’s Toronto Star takes a closer look at the decision by the town of East Gwillimbury — with a population of 22,000 about 30 minutes north of Toronto — to mandate that all new home developments in the area comply with Energy Star standards for building construction. The town, which grew tired of waiting for improvements to the province’s outdated building code, is believed to be the first in Canada to require Energy Star in home construction. Hopefully by becoming a first mover other communities in Ontario and across Canada will follow closely in East Gwillimbury’s path. Town mayor James Young says he’s already received numerous calls from other municipalities, including Toronto, that appear interested in the program. This is the kind of leadership this province needs, and it reinforces the fact that municipalities that are creative enough with policy design have a lot of power to influence change when it comes to energy conservation/efficiency. Kudos to Young and his council for taking the plunge.

In the column, I also make reference to a February study from the U.S. National Association of Home Builders, and a new contest launched by Canada Mortage and Housing Corporation called “Net Zero Energy Healthy Housing.” Both show the growing interest in homes becoming net producers, rather than net consumers, of energy. I see no reason why within the next 10 years every new home that’s built isn’t an energy generator.

Sonic Environmental reports today it has entered into a PCB clean-up contract with the owner of a site in the Greater Toronto Area. The company would not disclose the name of the site owner or the terms of the contract, but said the job involves remediation of a minimum of 500 tonnes and “potentially up to 2,500 tonnes” of contaminated soil. The company said the work is scheduled to be finished by the end of 2006. “This project is a major milestone for Sonic as it’s a first in Eastern Canada following the company’s recent approvals here in Ontario,” said Sonic VP of remediation services Larry Rodricks. “This contract should be the trigger that Sonic has been waiting for in order to secure future projects.” On top of the potential for soil remediation at more brownfield sites in Ontario, this deal also adds credibility to Sonic’s technology as it pitches for clean-up work in the Sydney tar ponds.

I’ve got a story in today’s Toronto Star about how our local utility, Toronto Hydro, is trying to get regulatory approval to launch a cash-for-conservation program this summer, similar to a program that has been in place in California since 2001. The idea is to give customers — households and small businesses — a 10 per cent rebate off their electricity bill if they can reduce their consumpton by 10 per cent between July 15 and Sept 15 (compared to an average of the same period during the two previous years). The utility estimates that a third of its 500,000 customers will reach the target and it expects it will have to pay out about $5 million in rebates, assuming the Ontario Energy Board approves the program.

This program raises the whole concept of paying for conservation, or “negawatts,” as some people call it. It makes complete sense. Not using electricity, and thus sparing a jurisdiction the need to generate that electricity or import it from somewhere else at considerable cost, should carry a value. So looked at this way, conservation (the negawatts concept) is in direct competition with the power generators, who rake in more profits the more electricity they sell.

This ties in nicely with a Red Herring article published online yesterday, which takes a closer look at the concept of “demand response” and ways new technologies are making it possible to purchase and sell negawatts in order to prevent blackouts.

One U.S. company, called Consumer Powerline, is selling those negawatts to utilities at the same rate they’d pay for electricity during times of peak consumption. At no charge, the company will put meters and monitoring equipment at a customer’s site. Those customers (typically large enterprises) use special software that analyzes energy use and an energy dashboard feature will recommend how to best manage power consumption, such as what appliances or equipment should be turned off. Consumer Powerline pays its customers a portion of the negawatt sales. And like the Toronto Hydro program, customers win twice: Not only do they get a lower utility bill because of the conservation, they get paid on top of that.

I think the only thing missing from the Toronto Hydro program is that it doesn’t provide any software (and real-time feedback) allowing customers to make the most of their conservation efforts. Excuse the pun, but merely telling people to conserve but not giving them a way to monitor and manage consumption is like operating in the dark. Most cleantech companies pursuing this market — EnerNOC, Broadband Energy Networks, GridPoint, Fat Spaniel, Comverge, etc. — try to differentiate themselves using technology/software that maximizes demand-response efforts.

What I’m waiting for is the day my utility can provide me with real-time data of my home energy consumption and an analysis of past usage, along with regular suggestions on how I can improve the energy efficiency of my home. Kind of like how QuickTax software allows me to maximize my tax return based on how much I invest in my RRSP. This could easily be accessed on the Web through a password-protected account. Perhaps the introduction of smart meters, and other smart grid developments over the next few years will enable this.

Congrats to the Quebec government for going out on a limb with a plan to put a “carbon tax” on fossil fuel products sold by the oil and gas industry. Not only that, but by 2010 the province wants to mandate California-grade auto emission standards on the auto sector and it plans to tighten up efficiency standards in the province’s building code.

The carbon tax will raise about $200 milion a year over six years that will go toward a Green Fund. Money from the fund will go toward green projects and improvements to public transportation. This is the type of leadership the country needs, and apparently Manitoba and Newfoundland/Labrador are following a similar path. The big question remains is whether Ontario has the gutts to take a similar route… so far it has remained suspiciously quiet on this issue.

This carbon tax may never see the light of day, but at least it will spark debate around the issue and get the country talking more about how to tackle emissions.