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Washington’s Green Economy A Strategic Framework

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  1. Washington’s Green EconomyA Strategic Framework Julie Anderson, Senior Policy Advisor JulieA@cted.wa.gov 360-725-4029 May 12, 2009

  2. Green Economy Jobs Initiative The Legislation…E2SHB 2815 Carbon Reduction Policies Section 9 - Green Economy Jobs Initiative Definition of Green Economy Survey of Green Industries Strategic Planning

  3. What is a Green Economy? Green Economy: The development and use of products and services that promote environmental protection and/or energy security. Businesses engaged in: Energy efficiency Renewable energy Preventing and reducing pollution Mitigating or cleaning up pollution

  4. What is a Green Economy? . • The green economy is best thought of as the “greening” of our existing economy through development of new products, techniques and services. • Efficiencies, new energy sources, technologies and business models will develop and be adopted over time.

  5. What is a Green Economy? . • A. Clean energy • Efficiency Renewable Alternative • B. Green building • C. Green transportation • D. Environmental protection • Waste management Water conservation • E. Business services

  6. Green Economy Strategic Framework The Green-Economy Strategic Framework is lays the groundwork for developing a strategic plan for growing Washington’s green economy Assessment Principles Strategies

  7. Assessment of Challenges Domestic and global competition for preeminence in green technology. A late start in adopting renewable energy and efficiency. Low-cost hydro-electric power. An aging electrical grid. The need to target millions of small GHG emitters and consumers. The need to scale-up & aggregate green products and services across residential, commercial, industrial, agricultural, and government sectors.

  8. Significant private and public sector leadership. A robust global trade network. A concentration of organized clean technology and high-tech firms. Technology spill-over from IT, biomedical and aerospace industries. Assessment of Assets

  9. Experience and an excellent reputation in innovation-based economy. Two world class public research universities and a national lab. Consistently ranked as one of the top states in the nation for starting a business and for doing business. Diverse mix of private and public utilities committed to customer energy efficiency and conservation programs. Assessment of Assets

  10. Assessment - Industry Opportunities Washington has strong near-term and long-term economic potential in: Solar manufacturing Wind power development Green building design Bioenergy Smart grid technologies Solid waste and recycling Water conservation

  11. 14 Principles 1. Maintain a broad definition of green economy Do not limit the economic framework to clean energy or to high-tech industries. 2. Provide clarity with consistent language Use language deliberately and consistently to achieve clarity and to design policies that are easily understood. Use the definitions in this appendix: Definitions for a Green-Economy Jobs Initiative. 3. Aim high Set significant targets to demonstrate that there is a large and sustained market to pursue and that these markets are real. Design policies and programs to provide certainty about the future and market sustainability through clear descriptions of needed changes (goals, incentives, regulations).

  12. 14 Principles 4. Don’t pick winners and losers Be technology-neutral. Don’t mandate particular fuel types or certain environmental technologies. 5. Share prosperity Design policies and programs that will distribute economic benefits and provide living wages, career pathways and small-business starts all across the state. 6. Work with highest returns first Work with the highest job-growth potentials first. Begin work immediately with the “low-hanging fruit” that are closest to market competitiveness.

  13. 14 Principles 7. Maintain solid foundation for economic and workforce development Many of the barriers that Washington state must overcome are not specific to a green economy. Rather, the greatest challenges are those that currently inhibit innovation and new business development in Washington generally. 8. Be consistent Chart a path and stick with it. 9. Use our natural advantages Leverage what we have. Build on existing capacities and systems, both in the public and private sectors. Integrate strategies into existing programs

  14. 14 Principles 10. Coordinate and support local governments Use cooperative implementation and co-design with local governments. Many local governments have already initiated sustainability policies and need help with such things as finance development and planning authority. 11. Build in-state supply chains Look for gaps in supply chains. Local supply chains (clusters) have the added benefit of distributed employment and transportation efficiency. 12. Consider full system effects Consider both short- and long-term economic and environmental effects of green-economy activities.

  15. 14 Principles 13. Push and pull Combine technology push and demand pull to reap long-term financial benefits from the green economy. State government has a role in building demand for mature technologies. However, an ongoing commitment to research and development and demonstration also is required. 14. Measurement and performance Washington must develop its own, clear method of defining the green economy and measuring its impact.

  16. Energy  Recovery  Funds

  17. $60.9 M – State Energy Program 1. Community-Wide Urban Residential and Commercial Energy Efficiency Program $14.5 million will be used for the development and deployment of at least three large neighborhood-based building energy efficiency projects. 2. Farm Energy Assessments Program $500,000 will be directed to develop energy tools and training assistance to increase energy efficiency in the state’s large agricultural sector

  18. $60.9 M – State Energy Program 3. Energy Efficiency and Renewable Energy Loans and Grants Program $38.5 million will be dedicated to a loan and grant fund to: provide interim financing to renewable energy projects assist innovative companies that have commercial or near-commercial energy technologies support cost-effective energy efficiency projects

  19. $60.9 M – State Energy Program 4. Energy Efficiency Credit Enhancement Program $5 million for credit enhancement mechanisms such as loan loss reserves and loan guarantees by financial institutions. This approach is intended to generate high levels of leverage for energy efficiency projects that go beyond direct loans

  20. Clean Energy Leadership Initiative (5921) Make Washington a hub for clean energy technology and a leader in the creation of green jobs and the development, deployment, and export of clean energy technologies and services. Forms the clean energy leadership council.

  21. Clean Energy Leadership Initiative (5921) Develop a set of strategic recommendations for each identified clean energy segment: Encourage investment through a combination of incentives, regulation, taxation, and use of government purchasing power to build viable markets. Increase Washington's ability to obtain available competitive federal funds. Development of public-private partnerships in each sector.

  22. Clean Energy Leadership Initiative (5921) Strategic recommendations…Continued Necessary investments in universities, management, entrepreneurial, and emerging business needs, joint use facilities, demonstration facilities, and signature research centers. Market access requirements. Infrastructure needs Capital and financing requirements.

  23. Evergreen Jobs Initiative(2227) Accelerate the greening of Washington’s economy by creating a highly skilled green jobs workforce by emphasizing green jobs skills within existing education and training funds through the evergreen jobs initiative. Ensure that the state's workforce is prepared for the new green economy; the state attracts investment and job creation in the green economy Forms the evergreen jobs leadership group.

  24. Evergreen Jobs Initiative(2227) CTED and the Workforce Board coordinate state ARRA funding related to green economy,, identify and support state and local green economy projects, identify green economy innovations and new technologies, create performance metrics, and deliver reports every six months. Employment Security conducts labor market surveys and identifies strategic, high-demand green industries. The leadership group directs the delivery of education and training resource moneys to meet the demand for workers trained in energy audit and energy efficiency.

  25. Evergreen Jobs Initiative(2227) • Create and pilot green industry skill panels • Prioritize the use of high employer-demand funding for workforce training in green economy jobs • Conduct outreach efforts to public utilities, education, labor, government • Develop tailored, green job training programs. Improving, the worker training curricula and programs established in this section.

  26. Additional Information • Strategic Framework full report: www.cted.wa.gov, click on “Energy Policy” tab at the top, see “Quick Links” • Green Jobs Definitions List: www.cted.wa.gov, click on “Energy Policy” tab at the top, see “Quick Links” • State Energy Summit presentations: www.cted.wa.gov/summit