Transcript FINAL IndyGreenEconomyV3091409nonotes

Getting to the Green Economy
A Roadmap for Indianapolis
Presented by Chris Slattery,
September 15, 2009
Who
We Are
About Us
Delta Institute
• Nonprofit organization formed in 1998
• Mission is to transform the Great Lakes
region into a vital center of the Green
Economy
The Delta Redevelopment Institute:
• Affiliate nonprofit focusing on brownfield
and other economic development
initiatives.
Purpose of this Report
• Identify sustainable reuse opportunities for
brownfields in weak market areas.
• Lay the foundation for a “Green Economic
Development Action Plan” for Indianapolis.
Our Approach to the Green Economy
• Make the entire business base more competitive
in a resource-constrained world
• Support emerging green industries.
The Green Economy:
National Estimates
Jobs
750,000 –
9,000,000
(2006 & 2007)
Sales
>$1 trillion
(2007)
Venture Capital
Investment
$12.9 billion
(2006 – 2008)
The Green Economy
Green Job Estimates:
8,900
Green jobs in
Indianapolis
(12th in nation)
(2006)
17,000
40,000
Clean Energy
Economy Jobs in
Indiana
(13th in nation)
The number of
clean energy
manufacturing
jobs Indiana could
gain in the next 10
years
(2007)
Business Drivers
COST
COMPETITIVENESS
Other Green Economy Drivers
• Energy Independence
• Environmental and social
concerns
• Public Policy (American
Climate and Energy Security
Act)
IPPC, 2007 Report
Defining the Green Economy
Other
Sustainability
Sectors
Emerging EnergyRelated Industries
Renewable Energy
(wind, solar, biomass),
Green Buildings
(retrofits and
energy/water-saving
fixtures)
Waste Reduction,
Water/Wastewater,
Pollution Mitigation,
Local Food Systems
Greening
Existing
Businesses
Professional and support
services, Greener
products and services
But the Green Economy is still Emerging….
Greening Existing Non-Green Industries
….can improve regional
business competitiveness and
create thousand of professional
support jobs.
Key Existing Industries
Life Sciences
• Including biotech and biopharmaceutical research with universities
Advanced Manufacturing
• High-skilled jobs in new technologies in automotive, aerospace and pharma and medical devices
Logistics
• Freight carriers (FedEx, UPS), distribution centers, logistics specialists
Information Technology
•Computer system design, telecommunications services, etc.
Motor Sports
•Racing teams, organizations, marketing and related retail businesses
Energy
•“Cleantech” – renewable energy, alternative fuel, transportation R & D
Relevant Economic Assets
• Large population base and
building stock
• Share of stimulus funds such as
Energy Efficiency Community
Block Grant (EECBG) and State
Energy Program (SEP) funds.
•Ample supply of available
commercial and industrial property
in weak market areas
Our Vision for Indy’s Green Economy
Green Building
Products and
Services
Waste Reduction,
Recycling and
Pollution
Mitigation
Urban
Agriculture
Greening
Existing
Businesses
Cleantech
(Renewable
Energy and
Electric Vehicle
R & D)
Our Vision for Indy’s Green Jobs
Higher Skill
Lower-Skill
Early stage R & D
Weatherization
Manufacturing
Other green
building/construction
Pollution Mitigation
Services
Recycling and material
recovery
Services for Greening
Buildings & Businesses
Urban agriculturetransitional job training
1. R & D for Electric Vehicles
• Hoosier Hybrid Partnership
• Project Plug-In
• Federal Goal: 1 million plug-in
hybrids on the road by 2015
• Stimulus grants to retool auto
supply industry
2. Manufacturing of Renewable Energy Components
•
There are 250 tons of steel
in an average wind turbine.
•
Over 1,300 existing firms in
Indiana (161 in Marion
County) with potential to
manufacture RE
components.
3. Green Building Products and Services
•Construction trades, building trade technical,
professional services, green building products and
dealers and wholesalers.
•No good estimates of existing firms
•EDF green jobs map is one source of firms that
offer green bldg products and services.
•Increase in the number of LEED building
applications one indicator of potential
4. Waste Reduction, Recycling and Pollution
Prevention
• Includes:
–
–
–
–
–
Material recovery
Recycling
Pollution and hazardous waste remediation
Water treatment, waste water management
Environmental consulting
• Competitive advantage: large population, waste
stream and inventory of industrial property
Waste Business Opportunities
• Biomass energy production
using wood waste or sludge as
feedstock
• Composting of landscaping and
food waste
• Resale of used building
materials from demolition or
redevelopment
• E-Waste
5. Urban Agriculture
•Growing opportunities in
Midwest despite harsh winters
•Transitional job training in
landscaping and farming,
nutrition and environmental
practices.
•Indiana agricultural
entrepreneurs are finding
success with indoor
aquaculture.
6. Greening Existing Business
• Training & support job categories:
– Business services
– Finance and investment
– Research and Advocacy
Current Business and Political Support
Renewable Energy and
Cleantech
Green Building Products
and Services
Waste Reduction,
Recycling, Pollution
Mitigation and Urban
Agriculture
• The Central Indiana Corporate Partnership and other Energy
Systems Network Partners
(www.cincorp.com/energysystemsnetwork)
• The Indy Partnership
• Indiana office of Energy Development (sponsors “Windiana”)
• Hoosier Environmental Council
• Integrator-sponsored supply chain forums (Brevini)
•
•
•
•
US Green Building Council – Indiana Chapter
Governor Daniels – Executive Order [08-14]
City of Indianapolis, Office of Sustainability
Indiana House and Community Development Authority (IHCDA)
• Keep Indiana Beautiful
• Indiana Recycling Association
• Division of Community Development, Dept of Metropolitan
Development, City of Indianapolis
• Indiana Department of Environmental Management (IDEM)
• Central Indiana Clean Air Partnership
• Purdue University Cooperative Extension Service
• Indiana Aquaculture Association
• Kansas State University, Technical Assistance for Brownfields
(TAB) program
Others working on
green economic development
• Indianapolis Economic Development, Inc.
• Greater Indianapolis Chamber of
Commerce -- Green Business Initiative
• Indiana Finance Authority
• Indiana Association of Economic
Development (IACED)
• Ball State College of Architecture and
Planning
Great Lakes, Midwest and National Support
• Midwest Energy Efficiency Alliance
• Great Lakes Wind Network
• German American Chamber of Commerce of the
Midwest
• Delta Institute - Green Business Development
Center
• American Wind Energy Association (AWEA)
• American Solar Energy Association (ASES)
Federal Stimulus
State Energy
Program Grants
($27 million)
US Dept of
Energy &
Treasury cash
grant or tax
credits
US Treasury
Dept Clean
Renewable
Energy Bonds
New funding
coming through
American Clean
Energy Security
Act (ACESA)
Utility Company Support
•Investment in Wind
Farm Development
•Green power
purchasing option for
residential customers
Benton, White,
Tippecanoe Counties
Challenges and Barriers
1. Limited Market Demand
• limited state policies for renewable energy
• lack of education and incentives for green
buildings
• lack of information on green suppliers
Challenges and Barriers
2. Global and Regional
Competition
• Offshore manufacturing
• Other states invest more to attract
wind and solar manufacturers.
• Other states have strong support
networks for energy technologies
• Other states are competing to
commercialize new technologies
Net Metering – policy that creates
demand for renewable energy
State
Applicable Sectors
Illinois
Commercial, Industrial, Residential, Nonprofit, Schools, Local
Government, State Government, Fed. Government, Agricultural
Commercial, Industrial, Residential, Nonprofit, Schools, Local
Government, State Government, Fed. Government, Agricultural,
Institutional
Ohio
Iowa
Commercial, Industrial, Residential
Commercial, Industrial, Residential
Minnesota
Commercial, Industrial, Residential
Wisconsin
Commercial, Industrial, Residential
Indiana
Residential, Schools
Michigan
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
Net Metering
State
Eligible Renewable Technologies
Illinois
Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Municipal
Solid Waste, CHP/Cogeneration, Anaerobic Digestion, Small
Hydroelectric, Other Distributed Generation Technologies
Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric,
Geothermal Electric, Municipal Solid Waste, CHP/Cogeneration,
Other Distributed Generation Technologies
Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass,
Hydroelectric, Fuel Cells, Microturbines
Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Municipal
Solid Waste, Anaerobic Digestion, Small Hydroelectric, Tidal Energy,
Wave Energy
Photovoltaics, Wind, Biomass, Hydroelectric, Anaerobic Digestion,
Fuel Cells using Renewable Fuels, Microturbines
Iowa
Indiana
Photovoltaics, Wind, Biomass, Hydroelectric, Municipal Solid Waste
Photovoltaics, Wind, Small Hydroelectric
Minnesota
Wisconsin
Ohio
Michigan
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
Net Metering
State
Limit on Overall Enrollment
Minnesota
None
Wisconsin
None
Iowa
None
Ohio
1% of a utility's peak demand
1% of the total peak demand supplied by a utility during the
previous year (includes net-metered systems and dual-metered
systems up to 2 MW)
0.75% of a utility's peak load from the preceding year (0.5% for
true net metering and 0.25% for modified net metering of systems
up to 150 kW)
0.1% of a utility's most recent peak summer load (utilities may
impose this limit at their discretion)
Illinois
Michigan
Indiana
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
Net Metering
State
Limit on System Size
Ohio
Iowa
No limit specified (system must be sized to match some or all
of customer's load)
500 kW
Michigan
150 kW
Illinois
40 kW
Minnesota
40 kW
Wisconsin
20 kW
Indiana
10 kW
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
States with RPS
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
Renewable Energy Standards
and Purchasing Commitments
State
Renewable Standard
Purchasing Commitment
Minnesota
25% by 2025; Xcel Energy 30% by
2020
State: None;
Minneapolis: 10 % above state and
federal mandates by 2015
Illinois
25% by 2025
Ohio
25% by 2025 (12.5% from
renewables)
Wisconsin
10% by 2015
State: 5% by 2010, 15% by 2020
Chicago: 20% by 2005
State: None
Six largest state agencies: 20% by
2011
State: None;
Lansing: 10% renewable energy by
2010, 15% by 2015, 20% by 2020
Michigan
10% by 2015
Iowa
105 MW
State: 10% by 2010
Indiana
None
None
PEW Center on Global Climate Change, http://www.pewclimate.org/states-regions
Current Green Buildings
City
Certified
Silver
Gold
Platinum
TOTAL
Chicago
25
17
28
6
76
St. Louis
7
5
3
2
17
Madison
3
7
3
0
13
Milwaukee
2
4
4
0
10
MinneapolisSt.Paul
3, 2
4, 0
1, 1
0, 0
8, 3
Cleveland
5
2
1
0
8
Indianapolis
0
2
3
0
5
Lansing
0
0
1
2
3
Source: USGBC, http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247
Pending Green Buildings
City
Certified
Silver
Gold
Platinum
TOTAL
Pending
Chicago
25
17
28
6
327
Cleveland
5
2
1
0
60
St. Louis
7
5
3
2
56
MinneapolisSt.Paul
3, 2
4, 0
1, 1
0, 0
54, 12
Indianapolis
0
2
3
0
47
Madison
3
7
3
0
42
Milwaukee
2
4
4
0
29
Lansing
0
0
1
2
17
Source: USGBC, http://www.usgbc.org/LEED/Project/CertifiedProjectList.aspx?CMSPageID=247
Challenges and Barriers
3. Financing Gaps
• Venture Capital
• Debt financing and loan guarantees
• Nontraditional financing sources
Challenges and Barriers
4. Workforce Development
• Skilled workforce is needed in home
weatherization, home energy rating,
deconstruction and other emerging fields
• Stimulus money is short term - private
investment needed to sustain
opportunities.
Challenges and Barriers
5. Education, Training and Technical
Assistance
• Understanding and accessing new economic
incentives
• Carbon and Credit trading
• Market development
• Supplier requirements and identification
• Affordable sites for demonstration projects and
incubators
• Standards and steps for going green.
Challenges and Barriers
6. Organizations and Support Networks
• R & D: Energy Systems Network
• Manufacturing: …. ? Need for coordination of
gov’t, NPO and private efforts around wind?
• Non-Manufacturing: Greater Indianapolis
Chamber green initiative, … need for others?
Recommendations
 Refine a vision and action plan
• Create demand for green businesses
• Increase financing opportunities for green
business
• Improve education, training and technical
assistance
• Strengthen support networks for green and
greening businesses
Where Do We Go from Here?
• Plan for Green Reuse of 1 or 2
Priority Brownfield Sites
• Plan a Green Economy Summit
Green Economic Development Action Plan
GOVERNMENT
CAN:
• Provide financial incentives
• Pass state energy
legislation
• Update state and local
energy codes
• Adopt and promote green
purchasing policies
• Recognize green
businesses
SUPPORT
GROUPS CAN:
• Form manufacturing
partnerships to support
wind, solar, etc.
• Provide education,
training and technical
assistance
• Recognition/marketing
• Promote green
purchasing commitments
and consortiums
BUSINESSES
CAN:
• Participate in support
networks
• Green operations
and supply chain
• Engage consultants
or nonprofit support
groups to understand
and utilize incentives
Conclusion
• These are some great opportunities for
Indianapolis but not the only ones
• Tools, further research and survey work are
needed to complete Indianapolis’ roadmap to
the green economy
• Download a copy of report and access other
resources at
http://deltabrownfields.wordpress.com