Thanks for all the input. My new supplier is my old salesman from another building supply company and is just starting out and is also very eager and passionate about it. I really hope all works out well as he is one of my very few friends in real life and has put a lot on the line far more than me. Around here builders don't want to change but the homeowners and cities are forcing on them. Some of my oddball green materials I have used in the past I have had to go all the way to NYC for them which is about an hour away
I think it's a great idea and while I believe that there is a reasonable possibility that what Peter has stated could come to pass, I also feel that there is money to be made legitimately in the industry.
You mentioned about changing the focus of your business, but instead of making a quick and one-way jump into something, you could also begin to offer additional options for each job you bid and switch over in a progressive motion. Make the green option available and many people will take it, each for their own reasons.
That way you would have more time to research and educate yourself about which measures and specific products are worth the bother and which ones are a waste of money and effort. Moving into that direction slowly might make more business sense. As you further develop your business in that direction you could even go green only later if you find it profitable enough.
Nothing is to stop you from personally "going green" in all your work and advertising that also. It would be part of the reason that you have made these options available to your clients.
The reason I say educate yourself well (if you haven't already, that is) is that many products offered as "green" make almost no impact or they only impact a certain cross section of the array of problems we face.