A plan to have the city certify businesses as "green" moved ahead Tuesday with a $150,000 grant from the Department of Water and Power to hire a firm to develop the final program.

Councilman Richard Alarcón, who has been working on the program for four years, envisions a program similar to one in the San Francisco Bay Area that would recognize businesses that run in an environmentally friendly manner by reducing electricity and water use and increasing recycling.

"So many businesses within our city have taken steps to operate in an environmentally friendly manner, and the Los Angeles Certified Green Business program will reward them for their commitment," Alarcón said.

Officials said they believe the program, with details of cost and level of certification to be worked out, will be beneficial as a marketing tool for the businesses.

Gary Toebben, president and chief executive of the Los Angeles Area Chamber of Commerce, said the program will take advantage of increased awareness and support for environmentally friendly development. "L.A.'s green marketplace is growing and businesses who can demonstrate environmentally friendly operations stand to gain," he said.

Alarcón said he believes businesses will want to participate to show customers they are attempting to be environmentally friendly. It is aimed primarily at hotels, restaurants, retail, office space and auto-repair shops.

rick.orlov@dailynews.com