Green Jobs in Minnesota: Market Analysis, a report prepared for the Minnesota Green Jobs Task Force, takes a new approach to estimating the size of the green collar workforce by using market information that tracks levels of green activity in a variety of industries. The report identifies four industry sectors that make up the U.S. green energy economy: green products, renewable energy, green services and environmental conservation.

The green products sector is particularly expansive and includes green building, transport, and consumer and industrial products. Green building is the largest part of this sector in Minnesota, and includes new LEED construction, as well as production, installation and use of energy efficient building technologies.

In order to estimate the size of green workforce in Minnesota and project its growth over the next ten years, the report relies on other published studies and, in many cases, on calculations based on the estimated amount of green activity that occurs within traditional industry sectors. By examining the projected resources and demand for green products and services over the next ten year, the authors are able to project a rate of growth for the state’s green workforce.

Green Jobs in Minnesota: Market Analysis is available at: http://www.mngreenjobs.com/sites/default/files/downloads/MN%20Green%20Jobs%20Report_0.pdf

The Political Economy Research Institute (PERI) at the University of Massachusetts - Amherst and the Center for American Progress took a different approach last year in their report estimating the employment gains that could result from green investments. In Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon Economy, the authors examine the types of occupations that stand to grow as federal and state governments invest in green initiatives.

In an earlier report, PERI compiled a list of occupations related to the green economy to describe the impact that federal green investment could have on a state-by-state basis. These occupations include jobs in building retrofitting, mass transit, energy-efficient automotive technologies, wind power, solar power and cellulosic biofuels. The full list of occupations related to the green economy includes over a hundred different jobs, including heating/air conditioning installers, carpenters, welders, software engineers, construction managers and industrial truck drivers.

In Green Recovery the authors argue that a large variety of jobs are central to the green economy and could see their demand increase as demand for green products and services grows.

Study authors Ottmar Edenhofer and Lord Nicholas Stern of the Potsdam Institute for Climate Impact Research and the Grantham Research Institute on Climate Change and the Environment, respectively, break down international spending and find that green efforts represent about 15 percent of global stimulus investment. South Korea devoted the largest share of its recovery package to green efforts, 80.5 percent, followed by the European Union with 58.7 percent. The U.S. ranked sixth in green spending as a share of its recovery, with 11.5 percent.

The study also compared green stimulus spending to 2008 GDP. China led the G20 countries in this metric, investing an amount equal to 4.8 percent of its GDP to green initiatives. The U.S. ranked fourth, investing about .8 percent of its GDP in these efforts. The study’s authors contend that the current level of green investments will not be sufficient to halt climate change and maximize the return on stimulus investments.

Edenhofer and Stern recommend that the G20 nations use their current and future recovery packages to invest in seven strategic areas related to fighting global climate change and achieving sustainable growth.

These areas include:

• Increasing energy efficiency through programs that offer loans to homeowners and businesses to increase energy efficiency in buildings, stricter fuel efficiency standards and promoting the shift to electrification;
• Upgrading physical infrastructureincluding flexible and capable electrical grids, public transportation, efficient freight transport systems, as well as improving international technology transfer and financing for large-scale infrastructure projects;
• Supporting clean energy markets by providing feed-in tariffs, renewable portfolio standards production tax credits, guarantees and loans for clean energy technology projects;
• Initiating flagship projects including large-scale demonstration projects for clean fuel and energy technologies and research communities to support international and cross-institutional projects;
• Enhancing international R&D by at least tripling total investment in research on clean and renewable energies, as well as establishing publically financed venture capital funds that target clean energy startups;
• Incentivizing Investment in technology and processes that ensure low-carbon production by instituting consistent carbon-pricing policies; and,
• Coordinating G20 efforts by refraining from stimulus provisions that would stifle international trade in cleantech markets.

Towards a Global Green Recovery: Recommendations for Immediate G20 Action is available at: http://www.pik-potsdam.de/globalgreenrecovery

Over the past several months, governors, legislators and economic development groups have announced new initiatives aimed at job growth and energy independence in the new economy. The following overview provides a sampling of green energy initiatives and investments from numerous proposals and announcements across the nation.

Arizona
Science Foundation Arizona (SFAz) announced a recent investment of $4 million to support five science-based businesses in the solar industry, according to an article in The Arizona Republic. SFAz also formed a new branch called the Solar Technology Institute to further support the industry. Projects approved for funding include development of reflectors that concentrate sunlight on solar panels, expansion of a photovoltaic testing laboratory, and development of software to help determine where to build power plants, storage sites and other energy infrastructure.

The nonprofit corporation matches state dollars with private funds to strengthen Arizona’s biomedical research and industry. However, continued support for SFAz is uncertain with a recent reduction of funds to Arizona’s 21^st Century Competitive Initiative Fund, which supports the efforts of SFAz (see the Feb. 4, 2009 issue of the Digest).

California
In an effort to attract and retain clean technology companies, boost job creation, and attract federal funding for clean tech R&D, Los Angeles city leaders, the University of California Los Angeles (UCLA) and the University of Southern California last week signed a Memorandum of Understanding to form a partnership called CleanTechLA. The partnership also includes the Los Angeles Chamber of Commerce, Los Angeles Business Council and the Los Angeles County Economic Development Corporation. Last week’s signing formalizes the year-old partnership that originally was established to help Los Angeles lobby to bring the proposed California Institute for Climate Change to the region, according to a UCLA press release. A new proposal for the center was reintroduced in the California Legislature in February, following Gov. Arnold Schwarzenegger’s veto of legislation establishing the center last year, reports the Los Angeles Times.

Michigan
The West Michigan Strategic Alliance announced last November it will launch the West Michigan Green Jobs Regional Skills Alliance to prepare workers for jobs in the alternative energy industry. The alliance, which received a $20,000 grant from the Michigan Department of Energy, Labor and Economic Growth, will determine the skill sets workers need to obtain green jobs, conduct green jobs market analysis, and work with educational institutions to provide the education and skills training for workers. 

During the 2008 legislative session, lawmakers added a new green jobs component to Michigan’s No Worker Left Behind Initiative, directing $6 million for investment in job training within emerging industries of wind, solar, biofuels and geothermal. The program provides financial assistance for training programs or up to two years’ tuition at any Michigan community college or university for training in high-demand occupations.

New Mexico
In support of Gov. Bill Richardson’s proposal to develop a workforce trained for 21st century jobs, the New Mexico State Legislature passed two bills this session allocating funds and creating training programs for green jobs.

HB 622 creates a green jobs fund from which higher education institutes will create green job training programs. The fund was initially designed to receive money from bonds issued by the New Mexico Finance Authority. However, that provision was eliminated and now the fund will receive appropriations from federal green jobs programs and any other allocations, according to an article in The New Mexico Independent. Lawmakers also passed a measure designating a portion of state funds for training in the green energy sector. SB 318 requires a minimum of $1 million from the state’s Job Training Incentive program be used for this purpose. Both bills were signed into law earlier this month.

Building on the Renewable Energy and Job Creation Tax Act of 2008, Gov. Richardson signed SB 257, which extends the state’s solar tax credit program, originally designed to fill a gap in a federal program. The bill allows a 10 percent state tax credit above the federal credit of 30 percent on the cost of solar installation up to $2,000, reports The New Mexico Independent.

Lawmakers also allocated funding for two major solar initiatives from new Severance Tax Bonding designated for capital outlay projects. Specifically, $6 million was approved for the Schott Solar Manufacturing Plant to accelerate development of solar power generation capacity and for the completion of a 200,000-square-foot solar equipment manufacturing plant. Another $3 million was approved for Project Sun Kachina for construction of a solar panel production facility in Belen, NM.

New York
Using $561.2 million in federal stimulus funding, lawmakers established the Senate’s Green Initiatives Institute, supporting green jobs and community development, according to a press release from the New York state Senate majority leader. The institute will operate through a competitive-grants program for municipalities, community colleges, nonprofit organizations, and small businesses, and focus on renewable energy development and distribution, weatherization, and retrofitting. As many as 8,600 new green jobs are anticipated through the institute, according to the press release.

Tennessee
Gov. Phil Bredesen introduced in March a package of legislative measures designed to encourage a new energy policy for Tennessee. The package of bills, known as the Tennessee Clean Energy Future Act of 2009, is based on recommendations from the governor’s Task Force on Energy Policy, which was established in 2008. A key component of the legislation would encourage job creation in the clean energy technology sector by making qualified businesses eligible for Tennessee’s existing emerging industry tax credit.

Earlier this year, Gov. Bredesen announced a plan to build a solar research institute in partnership with the private sector, the university system and Oak Ridge National Laboratory (see the Feb. 25, 2009 issue of the Digest). Funding for the institute will be included in an amendment to the executive FY10 budget, according to the governor’s office.

Gov. Bredesen’s FY10 budget proposal includes $5.3 million to provide third-year non-recurring operational funds for the University of Tennessee Biofuels Center, which is part of a comprehensive plan for Tennessee’s fuel strategy that also includes research funding to increase switchgrass production and find other non-biomass alternative fuel sources.

Utah
Lawmakers passed a bill during the 2009 legislative session that provides a competitive edge for recruiting clean energy businesses to the state. HB 430 establishes renewable energy development zones and provides a refundable tax credit on 100 percent of tax liability for alternative energy projects within the zones. The legislation stipulates that incentives are “post-performance” and businesses must meet standards set by the Governor’s Office of Economic Development. These include direct investment within the boundaries of a zone, creation of new incremental jobs in the state, significant capital investment or the creation of high paying jobs or significant purchases from Utah vendors and providers, and the generation of new state revenues.

Virginia
Gov. Kaine won approval for reform measures under the Renew Virginia Initiative announced in December as a green jobs and energy proposal (see the Jan.7, 2008 issue of the Digest). They include:

• SB 1186 – A measure to amend the existing Biofuels Production Incentive Grant Program to create a larger incentive for advanced biofuels that are made from cellulose, hemicelluloses, lignin or algae than for biofuels made from food stocks, such as corn.
• SB 1339 – A measure providing tools to expand energy efficiency and the use of renewable energy sources by allowing utility companies to modify electric rates to allow customers to shift electric use to non-peak times when rates are lower. This measure also raises the state’s renewable energy portfolio standard to 15 percent by 2025.

The need for more urgent and more significant action underlies the Board’s work. “The [current] scale and speed of adopting sustainable and clean energy technologies fall short of what is necessary to address today's challenges, which will only become more acute with the passage of time,” the report says. 

A U.S. responsibility to lead globally on the issue also is stated in no uncertain terms, “U.S. reliance on fossil energy sources has given rise to a global call for a sustainable energy economy.”

"Our report calls on the U.S. federal government to take the lead and set an example," said NSB Task Force on Sustainable Energy Co-chairman Jon Strauss.

Key findings:

• The federal government must adopt a forward-looking clean energy strategy that substantially increases investment in sustainable energy technology research; establishes appropriate market conditions to facilitate development and widespread deployment of sustainable energy technologies; educates and trains a workforce to address energy challenges; and advocates energy efficiency and energy conservation measures.
• The unique circumstances of the energy challenge – attempting to transform an already established sector and market with legacy technologies – will require active Federal attention to all stages along the R&D spectrum: basic research, applied research, development, demonstration, market commercialization, and deployment.
• The current energy economy does not adequately value or reward the attributes of sustainable energy solutions relative to those for the use of non-sustainable energy. Institutions of higher education and the private sector must train and retain talented specialists in energy research and skilled technicians in energy-related specialties.
• The United States should develop and lead a coordinated strategy for international involvement in sustainable energy research, development, and deployment – involving active engagement and collaboration with industry in both developed and developing countries.
• The U.S. Government should promote national public awareness of sustainable energy solutions, energy consumption, and energy efficiency. In addition, it should strategically engage with the public to motivate sound consumer action.

Numerous specific recommendations are provided for how the federal government and NSF should address the findings. Among the NSF recommendations is one encouraging stronger partnerships with universities, states and the private sector. The full 61-page document is available at: http://www.nsf.gov/nsb/committees/se/pub_comment.jsp. Comments will be accepted via email to: NSBenergy@nsf.gov. The public review and comment period is open until May 1, 2009.

A partnership between the state of Kentucky, the University of Kentucky, the University of Louisville, and Argonne National Laboratory is establishing a national Battery Manufacturing R&D Center to be located in Lexington. Focusing initially on advancing lithium-ion battery manufacturing, the Center will utilize the research and personnel from the universities, but also will have complementary R&D facilities at Argonne. Existing Kentucky programs to fund research grants and recruit researchers will be used to enhance the Center’s activities.

A few days after the Kentucky announcement, the National Alliance for Advanced Transportation Batteries (NATTBatt), a partnership of 50 battery and materials manufacturing companies, announced their intention to spend $600 million to build a 1 million-square-foot campus for its headquarters, research efforts, and a new lithium-ion battery plant. The campus will be located 45 minutes south of Louisville’s airport, about 90 miles to the southwest of the previously mentioned Argonne-partnered project. Participating members will be able to run trials and validate research on-site. The free land from the state for the project is situated on a parcel from a failed bid to attract a Hyundai automotive plant. Seven other states submitted proposals to attract NATTBatt.

Concentrating on automotive battery technologies, Michigan Gov. Jennifer Granholm signed legislation on April 6 to provide $220 million in tax credits for companies engaging in battery research and manufacturing. The tax credits come on top of $335 million in similar credits approved by the governor in January, creating a larger pool of resources.

Within a week of announcing the expansion in available credits, the Michigan Economic Growth Authority (MEGA) approved $543.5 million in tax incentives to locate four advanced battery manufacturing facilities in the state. Of the total state credits, $400 million – $100 million for each facility – comes from the expanded pool of tax incentives for advanced battery research and manufacturing.

An Argonne National Laboratory press release announcing its partnership with Kentucky is available at: http://www.anl.gov/Media_Center/News/2009/news090408.html.

A press release by Kentucky Gov. Steve Beshear on NATTBatt’s selection is available at: http://migration.kentucky.gov/newsroom/governor/20090413batteries.htm.

A press release announcing Gov. Granholm’s expanded advance battery tax rebates is available at: http://www.michigan.gov/gov/0,1607,7-168-23442_21974-212181--,00.html.

Building a cluster of academic and industrial research can happen without policy interventions; however, Toledo’s situation is different. The region’s leadership in advanced renewable energy is the result of deliberate choices and continual injections of funding by a host of public and private partners. So how did Toledo do it?

The maturation of Toledo’s advanced energy cluster is rooted in the actions of a handful of entrepreneurial researchers. When paired with the resources from regional, state, and federal entities, in addition to the knowledge base from existing industries, the solar energy cluster eventually grew to employ thousands of people in Northwest Ohio. In the last year alone, five photovoltaic startup manufacturers have sprung up in Toledo, joining a base that already includes some of the largest solar manufacturing facilities in the U.S.

While the major milestones to advancing the photovoltaic industry in Toledo occurred within the last 20 years, the pioneers in the new industry came from an existing strength: the glass industry. The glass industry in Toledo grew rapidly in the early 20^th century. The demand for sheet glass, fiberglass, and glass for automobiles in nearby Detroit contributed to this growth.

In 1948 Harold McMaster, a physicist often referred to as the father of the solar industry in Toledo, left one company and started his own firm that produced tempered glass with the property of crumbling upon impact, instead of shattering into large pieces. Almost 40 years later, McMaster formed a new company, collaborating with the University of Toledo for technical needs, soon operating Toledo’s first solar manufacturing plant. In 1987, the University of Toledo (UT) hired Dr. Alvin Compaan, and research specifically in the thin-film photovoltaics sector developed into the core of the region’s solar efforts.

Key steps of this cluster’s development include:

• 1989 – First federal research funds in solar energy field to Toledo awarded; funds from the Deptartment of Energy’s Solar Energy Research Institute;
• 1989 – Ohio Department of Development Edison program awards UT funds, when matched by local industry, builds tech infrastructure leading to faculty recruitment;
• 2001 – UT identifies renewable energy as an area to focus resources, creating an endowed chair position;
• 2002 – NSF awards $600,000 Partnership for Innovation grant that promotes photovoltaic outreach to industry and regional connectivity;
• 2003 – State of Ohio awards $2 million to create Center for Photovoltaic Electricity and Hydrogen;
• 2005 – Clean and Renewable Business Incubator started on UT campus;
• 2005 – University Clean Energy Alliance of Ohio formed and housed at Incubator;
• 2007 – State of Ohio awards $18.6 million (with $29 million in matching funds from industry) to form Wright Center for Photovoltaic Innovation and Commercialization;
• 2008 – State of Ohio awards $8.9 million in faculty recruitment funds, and when matched UT fills four new faculty positions;
• 2008 – NASA-funded solar cell testing facility opens in Alternative Energy Incubator;
• 2008 – Out of eleven DOE projects for solar research in U.S., UT received two awards totaling $2.5 million;
• 2009 – State of Ohio awards $1.5 million, with 1:1 match by regional academic institutions, to create renewable energy and sustainability STEM education programs.

With the advancement of Toledo’s solar energy efforts on many fronts, from research to training to entrepreneurship, the narrative of Toledo is changing  as the national media have focused on the story.

While photovoltaics is only one component of the region’s economy in aggregate, the development of this sector in Toledo illustrates the need for communities wanting to grow their economies to engage local industry, to promote research entrepreneurs, to find partnerships at the state and federal level, and to celebrate successes.

SSTI would like to thank D’Naie Jacobs, Associate Director for Economic Development at the University of Toledo for providing background material for this article. Sources used in the article’s preparation include: “The Role of an Antecedent Cluster, Academic R&D and the Role of Entrepreneurship in the Development of Toledo’s Solar Energy Cluster” by Frank Calzonetti, 2006; “Transforming The Glass City into the Solar City,” 2008, http://www.ssti.org/posters/images/posters/ut.pdf “Panel Discussion on Focused Clusters” by Al Compaan, 2009; and, “Northwest Ohio’s Position as a Leader in Photovoltaics,” 2009.

Successful state, university and local TBED strategies to grow green(er) companies help fund product demonstrations and early adoption strategies to help with market penetration.  In Toronto, a broad group of CEOs took matters into their own hands. 

Greening Greater Toronto has announced the creation of a working group comprised of more than 25 senior executives who will encourage and lead other organizations to buy products and services that minimize environmental impact and create green jobs. The working group, called the Green Procurement Leadership Council, represents approximately $40 billion in annual buying power.

In addition to creating the Green Procurement Leadership Council, Greening Greater Toronto plans to:

• Host the Green Procurements Marketplace event designed to present innovative green technologies and services that deliver environmental benefits and positive business returns;
• Create a green supplier database identifying high potential technologies available;
• Hold strategy forums convening industry and business leaders to develop strategies to advance the profile and adoption of high potential green technologies;
• Create a toolbox consolidating demonstrated best practices promoting green procurement principles; and,
• Develop a procurement portal that would provide an online listing of green suppliers to include economic and performance data for specific products and programs.

Toronto is not alone. Many U.S. states and local governments also are implementing green purchasing initiatives, including California, Massachusetts, New York, Oregon, and Washington. However, there is still room for progress. In July 2008, the National Association of Counties released a survey report on county green programs, which indicates 84 percent of the 147 counties that responded to the questionnaire do not have a green purchasing policy.

As a resource for organizations that are thinking about buying green, the National Association of State Procurement Officials has developed a Green Purchasing Guide to use in navigating the sea of information surrounding the adoption of a responsible purchasing program. The guide is available at: http://www.naspo.org/content.cfm/id/Green_Guide.

SSTI is pleased to invite applications for the 2009 awards cycle, a program recognizing exceptional achievements in approaches to improving state and regional economies through science, technology and innovation.

The purpose of the awards program is to showcase best practices across a broad spectrum of categories encompassing several elements that have been found in successful technology-based economies. The categories are:

• Expanding the Research Infrastructure;
• Commercializing Research;
• Building Entrepreneurial Capacity;
• Increasing Access to Capital;
• Enhancing the Science & Technology Workforce; and,
• Improving Competitiveness of Existing Industries.

Recipients will be selected based on their ability to clearly define a need for the initiative, demonstrate results, and describe how the impact is communicated to key stakeholders. Award-winning initiatives will also stand out among others in its field.

As an Excellence in TBED Award winner, you are provided with a forum to showcase your accomplishments during dedicated breakout sessions at SSTI’s annual conference in Overland Park, KS, Oct. 22-23, 2009. An awards ceremony honoring the recipients will also take place during the conference.
 
The deadline to apply is June 16.
 
For more information on the 2009 Excellence in TBED Awards, including a downloadable brochure and application form, visit www.sstiawards.org.

• Evaluation of proposals submitted for funding under Ohio Third Frontier and other technology-based economic development programs supporting research and cluster development (i.e., targeted vertical industries) programs administered by Development, and to provide technical assistance to Development regarding research and cluster development programs and initiatives. More information is available at: http://www.ohiochannel.org/your_state/third_frontier_project/rfp.cfm?rfp_id=94466.
• Evaluation of proposals submitted for funding under Ohio Third Frontier and other technology-based economic development programs supporting entrepreneurial assistance and early stage capital initiatives administered by Development, and to provide technical assistance to Development regarding entrepreneurial assistance and early stage capital initiatives. More information is available at: http://www.ohiochannel.org/your_state/third_frontier_project/rfp.cfm?rfp_id=94467.