Yellow Wood Associates, Inc. conducted research to determine how, and whether, Vermont municipalities can use alternative technologies to save money, create jobs, and reduce negative environmental impacts. Our research focused on alternative approaches to energy, heating, building siting and design, retrofitting of municipal buildings, and innovative water and sewer technologies. Examples included the use of biomass heat in affordable housing. The results were compiled into a 50-page summary document that formed the basis of a successful Small Business Innovations Research grant through the USDA Rural Development Program. Work on the Phase 1 SBIR began May 15, 2002.