foundations for sustainable local economic...

Foundations for Sustainable Local

Economic Development Emerging Green Industry

Olaava MacKenzie Travis Grubb Ben R. Jordan John Rhodes

Georgia Institute of Technology City and Regional Planning Program

Planning Local Economic Development December, 2008

Nancey Green Leigh, PhD, Professor Joy Wilkins, Dana King, EII, Co‐Advisors

“Attracting ‘Green Industry’ to Your Area” CP 6412/PUBP 6600

PLED Team Project December,8 2008

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Table of Contents: Introduction……………………………………………………………………….3 Chapter 1—The Literature and Green Industry ………………………………4

1.1.Renewable Energy……………………………………………….5 1.1.1 Wind…………………………………………...............….5 1.1.2 Biomass…………………………………...........................6 1.1.3 Solar………………………………...............................…..7

1.2.Recycling, Green Building Deconstruction………….………………8 1.2.1 Recycling…………………………………………..………...8 1.2.2 Green Building.......................................................................9 1.2.3 Deconstruction…...................................................................9 1.2.4 The Future..............................................................................10

1.3 Eco-Industrial Parks…………………………...............................…10 1.4 Patents………………………………………….............................…..12

1.4.1 Solar.................................................................................12 1.4.2 Renewable Oil.................................................................12 1.4.3 Biofuel..............................................................................13 1.4.3 Green Building Products..........................................................13 1.5 Venture Capital...................................................................................14 1.5.1 Venture Capitalists..........................................................14

Chapter 2—Case Studies…………………………………………………….16 2.1 Burlington, Vermont...………….…………………………....16 2.1.1 Intervale Background....………………………..….16 2.1.2 Current Structure………………………………….17 2.1.3 Recommendations……………………………...…..17 2.2. Kalundborg, Denmark………………………………………….18 2.2.1 Town History...…......………………………………18 2.2.2 Current Structure.…………………………………18 2.2.3 Recommendations………………………………….19 2.3. Braddock, Pennsylvania................………………………………19 2.3.1 A Declining Steel Town....…………………………20 2.3.2 Methods and Successes..…………………………...21 2.3.3 Recommendations............................……………….22 2.4. Los Angeles, California.................………………………………22 2.4.1 Background……………...…………………………23 2.4.2 Current Structure..........…………………………...24 2.4.3 Recommendations............................……………….25 Chapter 3—Conclusion………………………………………..........……………..25 References……………………………………………………..……………...27



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I. OVERVIEW Due to increased demand for and decreased supply of global resources and energy the world economy is shifting towards green industries. These “Green” industries are defined as those which are “devoted to the reduction of fossil fuels, the increase of energy efficiency, and the curtailment of greenhouse gas emissions” as well as those focused on environmental sustainability and efficient use of resources (Green Jobs Report, p. 2). The benefits associated with these developing green industry sectors occur at the macroeconomic and microeconomic levels. Such macroeconomic benefits include “investment in new technologies, greater productivity, improvements in the US balance of trade, and increased real disposable income across the nation. They also include the microeconomic benefits of lower costs of doing business and reduced household energy expenditures. These advantages are manifested in job growth, income growth, and of course, a cleaner environment” (Green Jobs Report, p. 3) Unfortunately, transitioning towards green industries is not just about economic success. Without this shift there is mounting evidence to suggest the world will be devastated by global warming. (Pew Center, 2008) In Hot, Flat and Crowded, Thomas Friedman argues that the United States has an important opportunity to play a major role in the global effort to solve problems accompanying climate change. He notes:

This challenge is a unique opportunity for America. If we take it on it will revive America at home, reconnect America abroad, and retool America for tomorrow. America is always at its most powerful and most influential when it is combining innovation and inspiration, wealth-building and dignity building, the quest for big profits and the tackling of big problems. When we do just one, we are less than the sum of our parts. When we do both we are greater than the sum of our parts – much greater (Friedman, p. 6).

Focusing on developing green industries will help address global warming as well as improve local economies. Capitalizing on emerging trends is a key component of local economic development. To this end, attracting and developing green businesses can lead to a diverse and sustainable local economy. This resource is intended to provide tools for the development of local green industry through an overview of the emerging green sectors as well as case studies with recognized successes in green industry and economic development strategies. Chapter 1 analyzes the current green industry sector landscape, identifies emerging patents and looks to the future with venture capital concentration. Chapter 2 details areas in which successful green economic development strategies have been implemented. Chapter 3 concludes by providing overall recommendations for attracting and cultivating green industries on a local economic development level.



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Chapter 1: Literature Review of Emerging Green Sectors 1.1. The Green Economy: Green industry is one of the fastest growing sectors of the U.S. Economy. Many factors, such as rising energy costs, increased public awareness and increasing regulation are contributing to a significant increase in demand. According to UCLA's policy brief on the topic,

Several cities and metropolitan regions have begun to aggressively develop and promote the green sector. Regions face competition domestically from major U.S. cities, and also from countries and regions abroad. In the race to become a major regional center for the Green economic sector, securing the ‘first mover’ advantage will be critical to future success. (The Economic Potential of Green Industry, Pg.1, 2006)

Environmental Business Journal predicts in its analysis of the environmental sector “Report 2020: U.S. Environmental Industry and Global Markets.” that green industry will be worth $300 billion by 2010

Figure 1. Growth of the Green Sector (reprinted from Environmental Business Journal) Green industry is already a part of the economic development plans of many regions – including entire states – and there is room for considerable growth. Major cities such as Los Angeles, Portland and New York City, states such as Colorado, and even small rust-belt towns such as Braddock, PA, have all made attracting green industry and economic development a priority. In Hot, Flat, and Crowded, Friedman explains his theory of America's next big bubble as being one in which green industry becomes dominant. “Green is not simply a new form of generating electric power. It is a new form of generating national power—period” (Friedman, p. 19). Regions that miss out on this “national power” may be left behind - the new rust belt of the green revolution. The literature related to the green industry sectors suggests that development will most likely occur in the following areas: renewable energy, eco-industrial parks, green technology, and recycling. In this review, we examine the literature surrounding existing technologies in these sectors to determine the possibility for growth. In addition, we investigate where venture capitalists are putting their money and what new green industry patents are being granted in order to develop an understanding of the future of green industry.



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1.1 Renewable Energy:

Rising costs of fossil fuels and predicted shortages, combined with increasing efficiency in alternative technologies are causing the focus on green energy to increase drastically. There are several forms of renewable energy, including wind, solar, hydropower, geothermal, and biomass. While the potential growth of these areas varies widely, all are underutilized. According to the U.S. Energy Information Administration’s Annual Energy Outlook 2008,

By 2030 U.S. electricity production will need to increase by nearly 30 percent to meet growing demand. Currently, wind, solar and biomass supply 2.3% of our nation’s electricity. While these renewable sources currently make up only a small fraction of energy production, renewable energy production is expected to increase by more than 70% between 2006 and 2030. Identifying and using land located in areas with high quality renewable energy resources will be an essential component of developing more electricity from renewable energy sources.(Page 3, 2008)

Communities are utilizing existing strengths to develop renewable energy. Such strengths may include existing infrastructure on sites incompatible with typical redevelopment (brownfields), powerful wind corridors, a water source, and a manufacturing-oriented workforce. In our case studies chapter we will examine several communities using existing resources to develop green industry, including abandoned buildings and industrial waste. Many green energy jobs in the future will come from manufacturing materials used within the sector. 1.1.1 Wind: Wind is the fastest growing source of alternative power. Although it generated only 0.08% of the United States’ power in 2007, wind has the potential to have a greatly increased market share.

The AWEA (American Wind Energy Association)estimates total potential generation at 10,777 billion kWh annually, more than 2.5 times the net amount of electricity generated in the U.S in 2007. Regionally, the highest potential lies in the northern and western parts of the country. North Dakota is ranked highest with 1,210 billion kWh of potential. The four highest ranked states (North Dakota, Texas, Kansas, and South Dakota) are estimated to have a total potential of 4,500 billion kWh, enough to power the entire country. Although the preponderance of wind power potential is in northern and western states, there are some opportunities further east. Maine, New York, and Michigan are also on the list of top twenty states. (Green Jobs Report, Page 7, 2008)

Production of windmills is increasing rapidly. It is also largely a localized industry. The blades on windmills are so heavy that it is cost-prohibitive to ship them too far. Manufacturers would prefer to produce them nearby where they will be installed, to reduce transportation costs. Texas has the largest current wind power capacity, and about 1,000 MW's under construction. Iowa is also growing rapidly, and looks to be a leader in the wind-generation sector over the next few years. Table 1 presents the top 5 states with the largest wind farms in the United States:



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States with most wind energy installed, by capacity (MW) 2007

1. Texas 2,768

2. California 2,361

3. Iowa 936

4. Minnesota 895

5. Washington 818

Table 1 Source: Annual U.S. Wind Power Rankings 1.1.2 Biofuel:

Biomass is an energy source that can be effectively exploited almost anywhere. The EPA

is currently recommending that contaminated brownfield sites be used to create renewable energy. This will allow a community to take advantage of existing infrastructure, and utilize a labor force already familiar with the brownfield sites. The EPA's “Data Guidelines for Clean and Renewable Energy Generation Potential on EPA Tracked Sites” states that:

Contaminated lands are a good fit for siting clean and renewable energy facilities because they generally have: existing transmission capacity and infrastructure in place; adequate zoning; and take the stress off undeveloped lands for construction of new energy facilities, preserving the land carbon sink. Clean and renewable energy is an economically viable reuse for sites with significant cleanup costs or low real estate development demand and it can provide job opportunities in urban and rural communities, particularly where factories, mining, and other manufacturing activities have ceased operations. (Page 1, 2008)

The following map examines sites in the United States that are ideal for a biopower facility based on their proximity to electrical transmission lines and graded roads. The map demonstrates that many old industrial sites in the South, Northeast and Midwest could take advantage of their existing infrastructure.



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Figure 2. EPA Tracked Sites with Biopower Facility Siting Potential (reprinted from www.usepa.gov) 1.1.3 Solar: Technological advances and expensive fossil fuels have greatly increased solar power production in the last few years. Since 2003 solar energy production has increased 27%, with the potential to grow in the coming decades.

As with other technologies, potential job growth is available to any city that is able to attract manufacturing firms in the industry. Production within the United States has surged over the past 10 years; in 1997, domestic producers shipped photovoltaic devices totaling 46,354 peak kilowatts of capacity. That year there were more than 1,700 direct employees in the industry. By 2006, production had reached 337,268 peak kilowatts of capacity, a more than seven-fold increase, and employment had risen to 4,000 jobs. The industry actually supports many additional manufacturing jobs, as the end-product producers purchase raw materials and intermediate goods from suppliers. In order for solar energy to attain a more prominent role in domestic energy production, both employment and production would need to increase dramatically. (Green Jobs Report, 2008)



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1.2 Recycling, Green Building and Deconstruction 1.2.1 Recycling: With landfills overflowing and the costs of throwing things away increasing, recycling is becoming a viable alternative as well as an economic development strategy. Curbside recycling programs are important, but the major recycling projects of the future are predicted to be in industrial materials. (Institute for Local Self-Reliance, Washington, DC, 1997) Table 2. Job Creation - Reuse and Recycling Vs. Disposal

Type of Operation Jobs per 10,000 tons per year

Product Reuse

Computer Reuse 296

Textile Reclamation 85 Misc. Durables Reuse 62

Wooden Pallet Repair 28

Recycling-based Manufacturers 25 Paper Mills 18

Glass Product Manufacturers 26 Plastic Product Manufacturers 93

Conventional Materials Recovery Facilities 10

Composting 4 Landfill and Incineration 1

Source: Institute for Local Self-Reliance, Washington, DC, 1997 Many independent corporations are getting into the recycling industry. These organizations realize that they can make a profit as well as save thousands of pounds of waste from going to the landfill. Flipswap, a cell-phone trade-in and recycling company located in California, takes old consumer phones in exchange for credit. The company then acts as a middle agent, either selling the phone back to organizations that can recycle them, or recycling them if they are too damaged. Flipswap has been able to keep over 50 tons of mostly toxic waste out of landfills. (Flipswap.com, 2008) Another company is using glass waste to make countertops:

BottleStone manufactures a material made out of 80% recycled glass, meant to replicate stone. It is strong, moldable, and colorful. More importantly, BottleStone uses glass waste that requires no special cleaning, recycles all its water, generates no carbon dioxide, can be recycled at the end of its life and contains less embodied energy than its concrete counterpart. Right now, it is being used mostly for countertops, though the



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company would like to use it in more large-scale applications. (Techworld.com, 2008)

Bottlestone countertops also qualify builders for LEED credits, discussed in the next section. Regular stone and ceramic countertops can’t qualify for these credits. In 2008, the corporation won the California Clean Tech Open for their innovative project.

1.2.2 Green Building The entire construction industry is moving rapidly towards green buildings. Buildings use 72% of the electricity produced in the United States, over half of which is coal-powered. Coal is one of the largest contributors to global warming (U.S. Green Building Council). The green certification program Leadership in Energy and Environmental Design (LEED) is a voluntary platform for companies to increase their energy efficiency and build green. Currently there are 14,390 registered LEED projects and 1,753 certified projects (Green Building Council). These numbers are expected to grow in the future as companies realize the long-term energy saving potential of these buildings. Already several municipalities have required LEED certification on all of their new government buildings. A community can capitalize on this growing industry in a few ways. Communities can train existing businesses and construction workers on the LEED program. The only difference between a LEED building process and a traditional process is the materials, so retraining construction workers should not be a huge impediment (LEED Building Council, 2008). The EPA estimates that the LEED program has saved $14 billion dollars since its inception. According to the McGraw-Hill Green Building Report, green construction increases building values by 7.5 percent, rents by 3 percent and occupancy by 3.5 percent. They also improve the return-an-investment by more than 6 percent. Encouraging companies to go green will thus increase a regions tax base due to higher property values (McGraw-Hill, p. 4) 1.2.3Deconstruction

One of the growing recycling industries is deconstruction. Deconstruction is the systematic disassembly of a building, with the purpose of recovering valuable materials for reuse in construction, renovation or manufacturing. Deconstruction can help save energy, building costs, reduce the environmental impact of construction and demolition, provide points toward LEED certification and create local jobs. (Waste to Wealth) Many materials can be reused, leading to a more efficient, less expensive building process:

Lumber, the most popular deconstructed resource, can currently be reused for nonstructural applications (researchers are also working on a system to grade salvaged lumber for structural applications) or re-milled for flooring or furniture. Similarly, materials such as bricks, windows, and doors are resold in their existing form. Other materials that cannot be reused intact are reused on-site or recycled. Concrete can be crushed and used as aggregate or fill, asphalt shingles can be ground up for roads, and drywall can be pulverized and used as a soil amendment. (2006)



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There are also potential drawbacks to the deconstruction process. Recycling materials requires extra training and additional workers and time. It is easier to destroy something completely than to spend a lot of time salvaging materials, and many companies are unfamiliar with how to implement deconstruction. Sometimes the materials are suspect as well, and there is no uniformity of laws regulating liability of reused materials. (Leigh and Patterson, 2006) In their article “Deconstructing to Redevelop”, Leigh and Patterson propose several ways to deal with these drawbacks. They suggest cities create a “one-stop shop” educating company's and developers about the potential savings and benefits of deconstruction. In addition, they can create workforce training partnerships to provide workers knowledgeable about deconstruction. (Leigh and Patterson, 2006) The Institute for Local Self-Reliance (ISLR) indicates that as many as 200,000 jobs are created each year in deconstruction with the potential for future growth. This has the potential to impact poor communities as well, “because deconstruction is easily integrated into public housing and urban revitalization programs (for which millions in federal funding is available), trainees frequently are drawn from the community's lowest-income populations.” (ISLR) 1.2.4 The Future: Unfortunately the economic downturn of 2008 may negatively affect the recycling industry. The market for recycled materials is closely tied to the market for new products. If demand for manufactured goods decreases, demand for recycled products to assist in that production also decreases. As of December 2008, these negative affects are being felt:

The economic downturn has decimated the market for recycled materials like cardboard, plastic, newspaper and metals. Across the country, this junk is accumulating by the ton in the yards and warehouses of recycling contractors, which are unable to find buyers or are unwilling to sell at rock-bottom prices. (New York Times, 2008)

Materials are selling for much less than they went for even a few months ago. In October 2008, mixed paper sold for $105 on the West Coast. Now the same quantity sells for only $20 to $25. In addition, tin has taken a large hit. Earlier this year the metal was worth $327 per pound, and now the same quantity is worth $5. (New York Times, 2008)

Fortunately, in many areas recycling is still cheaper than sending materials to the landfill. Harvard University's recycling and waste materials manager will keep sending Harvard's recyclables to the recycling center “ as long as the price was less than $87 a ton, the cost for trash disposal” (New York Times, 2008). The cost currently hovers around $20. Many recycling companies anticipate that the market will rebound and are warehousing their goods. As soon as the market picks up for manufactured goods, the market for recycled materials will follow.

1.3 Eco-Industrial Parks:

The role Eco Industrial Parks (EIP) could play in promising community sustainability can be a powerful platform for local economic developers. The idea of a symbiosis of industries to reduce waste and capitalize on transformations of materials between industries has been around



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since the mid 80’s in engineering and scientific journals (Dunn & Steinneman, 1997) However, for many years the planning community paid little attention to the possibilities within this symbiosis. In 1997, encouraged by the US Presidents Council for Sustainable Development, representatives from 16 EIP’s met to discuss their projects, define the EIP and share their goals. (Koenig 2002)

This conference defined the EIP as “closely cooperating manufacturing and service businesses that work together to improve their environmental and economic performance by reducing waste and increasing resource efficiency. Firms coordinate activities to increase efficient use of raw materials, reduce outputs of waste, conserve energy and water resources, and reduce transportation requirements.” (www.smartgrowth.org , 2000) While this definition is widely accepted, one concise definition is difficult to agree upon.

Each EIP finds itself to be unique and specialized in terms of the type of industry the particular EIP will attract and more importantly how those businesses will work together to reduce costs, reuse waste and possibly develop a closed loop system. While Kalenborg, Denmark has slowly developed a reasonably effective EIP, as will be discussed in the second half of our study, other EIP’s find that while this may be a good example, “Communities need technical expertise to identify possible linkages among firms and their production processes. With rare exceptions, each individual EIP will need to develop its own industrial ecosystem.” (www.smartgrowth.org , 2000)

While this is a challenge, the excitement and possibilities EIP’s provide not only for business’ to take advantage of economies of scale, but also for surrounding communities cannot be overlooked. The same goals and ideas generated from Industrial Ecology may certainly begin to overlap with community goals. As Andres Koenig describes in his article Qou Vadis EIP?, “Imagine 200, 500, or even 1000 companies in an EIP setting the standards for green procurement—for example, by ordering low energy fluorescent tubes, establishing an on-site recycling facility for these tubes, and even promoting the development of low mercury content that makes these tubes nonhazardous.” (Koenig, 2002) His vision is for an EIP to take a leadership role in a community, sharing all “available tools to minimize the use of resources and create better products.” (Koenig, 2002). While EIPs in the US are primarily in the developmental stages, some are choosing to set demanding standards.

In Burlington, VT an agro-industrial park is slowing evolving into an integrated eco-industrial park. What started as a simple composting business has emerged into a group of 13 farms that utilize biomass power from a neighboring plant and are beginning to find other raw materials from surrounding businesses. Urban planner Will Raap was able to revitalize an area know as “The Intervale” through a partnership with local municipalities and private land owners who had previously allowed this area to become a site of illegal dumping. After inexpensive leases of land and equipment were granted, the farmers were able to create a collaborative environment were each utilize waste products that become raw materials for another farm. Local companies such as Ben & Jerry’s Ice Cream and a Burlington Area brewery have recognized this idea, and now these companies are also participating in the waste re-use program. The goal is to recycle 10% of Burlington’s waste and provide 10% of their food source, and these goals have been nearly achieved in the last 15 years. We will discuss the growth of the Intervale and compare its development process to that of the EIP in Kalundborg, Denmark in a case study to follow.



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The intrinsic value in an EIP is easily accepted as a sustainable trend in industrial development. This acceptance along with the successes found in Kalunborg has led to a significant body of literature on the subject. All too often, it appears to be found that EIP’s are seeing themselves fall into the category known as “green-washing”, rather than a bonafide green industry. “At this early stage in eco-industrial development, however, while it is necessary to be aware of these issues, it is perhaps too easy to be overwhelmed by the sheer complexity of attempting to construct 'islands of eco-industry' which also articulate with broader economic and social trends.” (Gibbs, Duetz, Proctor, 2002 p13) EIP’s and the issues of “complexity” will continue to develop hand in hand but may perhaps be an avenue for solutions to sustainability in its purest form.

1.4 Emerging Patents: One of the best ways to predict emerging green sectors is to look at patent grants. New property rights are being granted for all parts of green industry. Of particular interest are patents that are geared towards improving efficiency in energy consumption or creating sustainable technology, because these are the patents that are likeliest to achieve economic success. In this section renewable energy and green building product patents are reviewed. 1.4.1 Solar Energy: The University of South Florida has been researching solar cells for quite a while. Recently, they created a cell that is smaller than a grain of rice. However, these cells can produce 7.8 volts of electricity when grouped in sets of 20. These cells are capable of many things:

The cells are made of an organic polymer that can be dissolved or applied to flexible materials instead of the usual brittle silicon wafers. This flexibility plus their small size would allow them to be sprayed or painted onto surfaces like houses, cars, clothing or anything that is exposed to sunlight. Head researcher Xiaomei Jiang is working towards one use in particular for these tiny arrays: powering microscopic chemical sensors for soldiers in the field. Batteries are heavy for soldiers to carry and they also cost the military about $57,000 per soldier per year. Having a small, renewable source of power for these types of devices would be in the military and the soldiers' interests. (USF, 2008)

Solar cells this small, yet so powerful and mobile, have the potential to transform the solar industry. 1.4.2 Renewable Oil: Oil is a finite resource but once extracted is widely utilized in a variety of products in addition to serving as an energy source. Although commonly associated with transportation, it is also used in making plastic, pesticides, some medicines and many other products. Petroleum is a fossil fuel that is inherently finite, so many scientists are working on ways to make oil out of natural resources that are regenerative.



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One company recently patented a process that derives oil from algae. Uniquely, Solazyme has been able to use algae that grow in the dark, instead of the more common practice of harnessing algae that grows in sunlight. This will allow them to grow their fuel quickly and efficiently. Solazyme, a California biotech company, has been able to create oil that is currently used in anti-wrinkle products. In September of 2008, the company announced that they had created the first algae-based jet fuel. (Solazyme.com) 1.4.3 Biofuel: A quick review of the green energy sector reveals thousands of biofuel related patents established within the United States alone. A recent article entitled Biofuel Patents are Booming by Dallas Kachan of the CleanTech Group, LLC states that 2,796 biofuel patents were published in the U.S. over the last six years with the yearly patent yield increasing “by over 150 percent in each of the past two years”. Further examination of the patent record for the 2007 year would demonstrate the biofuel dominance over other facets of this sector with a total of “1,045 biofuel patents it was more than the combined total of solar power (555) and wind power (282) patents published in the same year”. (Kachan). Kachan’s analysis of the biofuel patents examines the subcategories of biodiesel, agricultural biotechnology, ethanol and other alcohols, enzymes , and biomass each of which had patents published counts of 299, 110, 42, 35, and 41 respectively for 2006 to 2007. Listed by ownership entity the selected technologies were “57 percent owned by corporate entities, 11 percent owned by universities or other academic institutions and 32 percent undesignated, where the patent applications do not list the patent owner” (Kachan). The top 5 biofuel patent producing countries from 2006 to 2007 were the United States of America, Germany, Japan, Italy, and France who maintained patent numbers within the selected technologies of 184, 34, 14, 10, and 10 respectively. Focusing on the patents within the United States of America, Kachan’s article diagrams the publishing entity locations by state within the following attached table. The five states with the highest number of biofuel patents were Missouri, California, Iowa, Illinois, and Minnesota with patents published counts of 41, 25, 15, 13, and 11 respectively.

1.4.4 Green Building Products:

Over 9 billion bricks are manufactured each year in the United States. (Ecogeek.org) Retired civil engineer Henry Liu has just invented a cheaper more energy efficient way of making bricks that reuses industrial waste and is more environmentally sustainable.

Manufactured from fly-ash, a byproduct of coal combustion with a worldwide surplus production running in the hundreds of millions of tons each year, these new bricks are as strong and safe as the bricks we're all used to seeing, cost 20% less to make, and are far more environmentally friendly.

Clay bricks are fired in a kiln at over 2000°F (1100°C). Liu's new building material is cured in a 150°F (66°C) steam bath after exiting a 4000 psi (28,000 kPa) press, saving massive amounts of energy and reducing the carbon footprint for builders considerably. In addition, the new bricks are easier to use which will save bricklayers time, and homebuilders money. (Ecogeek.org)



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Another company focused on sustainable building materials is creating a cheaper, more energy efficient form of drywall. Called “EcoRock”, this drywall could revolutionize the industry:

EcoRock requires 80 percent less energy to produce and cuts CO2 output by 90 percent compared to traditional gypsum-based drywall. These reductions in energy and CO2 are accomplished by eliminating heaters, dryers, calcining and burning of fossil fuels. The material congeals without heat and no mining is necessary in its production. It uses 85 percent recycled content and is fully recyclable. The company claims it holds up even better than gypsum drywall. In contrast, traditional drywall is made by mining and then roasting gypsum rock in 500 degree kilns. Drywall factories produce about 20 billion pounds of greenhouse gases a year. EcoRock costs $14 - $20 per 4x8-foot sheet, about the same as high-end drywall and will be available starting in 2009. (EcoGeek.org, 2008)

Each year hundreds of new green industry patents are granted. These patents will pave the way for dozens of green industry startups, a few of which will be successful. While these patent numbers are the clearest representation of the burgeoning green energy sector, the continued health and vitality of that sector will depend on adequate funds to finance the research that goes into each published patent and its ultimate commercialization. These funds are more widely known as Venture Capital and will be explored in the next section.

1.5 Venture Capital: Venture Capital is the term for funds invested in new businesses. It is in venture capital that the future of the emerging green industries will become established as viable, profitable companies or become forgotten casualties of the market. In 2007, U.S. venture capitalists invested $2.9 billion into the biofuel industry. This heavy investment in alternative fuels is predicted to increase in the coming years due to federal involvement. The federal government of the United States has allocated, for 2008 to 2015, $500 million in grants under the Energy Independence and Security Act of 2007 to promote the development of advanced biofuels (Energy Independence and Security Act, 2007). Although Venture Capital funds are concentrated in a few geographic areas, emerging green industries can begin anywhere. Apart from governmental funds such as those mentioned above, independent venture capital funds may be available for the savvy patent holder. In this report we examine three companies and contributions to this emerging economic sector--SJF Ventures, EnerTech Capital, and Google. It should be noted that these companies represent only a fraction of the funds that are available.



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1.5.1 Venture Capitalists: SJF Ventures - originally established in 1999 as the Sustainable Jobs Fund - has evolved into a venture capital company with a diverse portfolio of investments including, but not limited to, sustainable waste and recycling technology, organic food products, solar systems technology, and recycled flooring products. SJF’s initial investment is usually $1 to $2 million with follow-on investments for a total of up to $3 million per firm. Each company SJF invests in is required to sign a “Community Development Covenant”, requiring the company to create a certain number of jobs and pay competitive wages. SJF Ventures’ 18 current portfolio companies employ almost 3,000 people, with 1,230 new jobs created after SJF investment. Approximately 86 percent of these new jobs created employment for low- to moderate-income individuals. (SJF Ventures, 2008) EnerTech Capital has been investing in clean technology companies since 1996 and manages three funds totaling $380 million. EnerTech also maintains a diverse portfolio consisting of but not limited to photovoltaic cells, water remediation, green batteries, and wind sensor technologies. They have invested in dozens of startup companies including Altela, Atra Verda a water-remediation corporation, a company that makes conductive ceramic for bipolar batteries, and Philidelphia Alternative Energy, which produces electric power from algae. Google has done and continues to make significant green investments. Google has invested $10.25 million to develop geothermal energy technology. The funds have been spread between AltaRock Energy, Potter Drilling, and the Southern Methodist University Geothermal Lab. As stated above these companies and funds represent only a fraction of the funds available within the country however funds exist elsewhere across the globe and the United States should remain focused on this emerging green energy sector lest the funds and clean technologies are developed elsewhere.



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Chapter 2:

Successful Examples

In the previous sections the terms of the green industry sector have been examined and defined, the landscape of the sector has been laid out, and the current hot-spots have been discussed. This analysis was completed through a thorough review of the field while looking at a host of successful green companies, as well as mapping where green businesses are located, reviewing key “hot spots” or hubs of green industry.

As stated previously a jurisdiction looking to expand its green business base should follow this basic framework beginning with a thorough review of their goals and determination of the appropriate green categories of businesses they are hoping to attract, the jurisdiction should then conduct a review of the businesses already located within the area, and finally determine what drew the existing businesses to the area and what attributes of the community should be promoted or advertised. The communities or jurisdictions that have made substantial progress in this green industry arena and are to be examined are those of Los Angeles, CA, Kalundborg, Denmark, Braddock, PA, and Burlington, VT. The case studies will examine the approaches, failures, and successes of the above mentioned jurisdictions in their race to become the Mecca of emerging Green Industry.

2.1 Burlington, Vermont

After the 1992 meeting of The President’s Council on Sustainable Development, the investment of federal funds to encourage and jumpstart the development of Eco Industrial Park’s (EIP’s) was embraced by ecologically responsible communities. By 1996 a group of 16 US EIP’s met in Cape Charles, VA to discuss the structure of their parks in an attempt to share development strategies. The list was as follows: - Brownsville Eco-Industrial Park, Brownsville, Texas - Burnside Eco-Industrial Park, Nova Scotia (Canada) - Civano Industrial Eco Park , Tucson, Arizona - East Bay Eco-Industrial Park, San Francisco Bay, California - Fairfield Ecological Industrial Park, Baltimore, Maryland - Franklin County Eco-Industrial Park, Youngsville, North Carolina - The Green Institute, Minneapolis, Minnesota - Plattsburgh Eco-Industrial Park, New York - Port of Cape Charles Sustainable Technologies Industrial Park, Eastville, Northampton County, Virginia - Raymond Green Eco-Industrial Park, Raymond, Washington - Riverside Eco- Park, Burlington, Vermont - Skagit County Environmental Industrial Park, Skagitt County, Washington - Shady Side Eco-Business Park, Shady Side, Maryland - Stonyfield Londonderry Eco-Industrial Park, Londonderry, New Hampshire - Trenton Eco-Industrial Complex, Trenton, New Jersey



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- The Volunteer Site, Chattanooga, Tennessee Ultimately, the majority of these EIP’s were unable to move past the planning stage. While these communities recognized not only the competitive advantage to developing an EIP and also the importance of industrial symbiosis, chasing the example of the most successful EIP in Kalundborg, Denmark proved to be a complicated endeavor. However, the promise of a more efficient and sustainable avenue for local economic development is easily recognized in the EIP model. The EIP of Port of Cape Charles in Virginia for example struggled to draw tenants and ultimately was abandoned but other areas have thrived. The EIP in Burlington, Vermont known as the Intervale Center has enjoyed national interest as well as financial success. The Intervale Center is located in Burlington, VT and was originally called the Riverside Eco-Park. The park plan featured 10,000 square feet of office space and 50,000 square feet of bioshelter or greenhouse space. In 1987, long before the introduction of the EIP at the meeting of the President’s Council, Intervale began its first venture in compost products. The idea was to “restore the depleted agricultural lands of the Intervale.” (Raap, 2008) This venture now leads Vermont’s waste recycling efforts by composting 20,000 tons of waste each year. While the 10,000 square feet of office space has not yet been realized, the farming effort has grown and is focused on the preservation and management of 350 acres of land within the city limits of Burlington. The area now supports “viable farms, increasing soil fertility, protecting water equality through stream bank restoration and educating young people about agriculture and healthy food.” (www.intervale.org, 2008)

The basic premise behind the development of Intervale is to create “a sustainable local food system that integrates farming, food processing, distribution, and consumption in ways that enhance the environmental, economic, social, and nutritional health of a particular place.” (www.intervale.org, 2008) By first succeeding in reviving the soil, they have now managed to sustain 13 individual farms. The farms include a berry farm, flower garden, organic fruits and vegetables, grain and pasture fed chickens, honeybees and others. These farms market and sell to local grocers as well as within the community at the Intervale Center and in Burlington at various Farmer’s Markets. Furthermore, they have partnered with a Ben & Jerry’s manufacturing plant about 20 minutes away, which brings ice cream waste products to Intervale to be sprayed over the compost, enriching the soil. This partnership reduces the ice cream plant's manufacturing waste by about 1 million gallons a year.

“The Intervale's mission is to recycle 10 percent of Burlington's waste and to supply 10 percent of its fresh foods. Today it is well on its way to meeting those goals. It now reduces the amount of non recyclable solid waste the county receives by about 10 percent and provides 4 percent of its fresh foods.” (Grogan, 2004) The strides toward reaching this goal are a product of a community’s commitment and the result of a dream envisioned by an urban planner, Will Raap.

Rapp opened a Gardener’s Supply Store in 1983 and by 1985 decided to move his store to land in the Intervale. At the time, this was a blighted area of illegal dumping and homeless residents. Rapp traced the history of the area to find it was once home to the Abenaki Tribe and later to early Colonial Settlers. Both of these groups found land of rich soil and were able to grow a variety of crops there. From this history Rapp envisioned the Intervale's future and he noted, that "you can think about it; you can write about it. But until you can show it, people can't internalize it." (Grogan, 2004)



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The first steps were small, such as initiating a program for local residents to bring their leaves to the Intervale in exchange for compost vouchers the next spring. Rapp was able to gain the support of city leaders and with their help developed a program to provide inexpensive leases of land and equipment to local farmers who would work the land. The 700 total acres of farmland now available in the Intervale were assembled through public and private owners who previously saw no economic gain to their ownership of this land. As the farms were taking shape, local restaurants and hospitals began giving their food garbage to be composted and in return were granted access to buy organic crops from these local farmers. The transformation of an area previously seen as the cities illegal dumping ground to the center of organic farming was an impressive adaptation.

Looking forward, the farms have opened the door to numerous other ventures. Burlington is home to a wood-fired power plant that converts yard trimmings, lumber scraps and other biomass to energy and this is located at the entrance to the Intervale. This power is used by the farms and will be the driving force behind the development of 50,000 acres of greenhouses that are planned. These greenhouses will provide the opportunity for year round crop production and greatly increase the economic opportunity. In addition, a Tilapia farm will be built that will again capitalize on this system that seeks to become a closed loop system. In this case, a local brewery will provide spent beer hops to encourage the well being of earthworms in the compost that will become the main source of food for the Tilapia. The Intervale and the city of Burlington appear to have embraced the belief that cities do not need to be solely dependent on industrial agriculture. Their ability to focus the park on the core idea of growing better tasting, healthier food has led to a competitive advantage in their community. By coordinating city officials and gaining their support the farm was made financially feasible for upstart farmers. In addition, holding to the historic principle of “waste not, want not”, the area has been able to keep the community vested in the success of these farms. The strength of this model lies in its simplicity. Will Raap did not set out to develop an EIP. His goal was to revitalize land that once was a focal point of the community. The strategy was a straightforward linkage of reusing the community’s waste products to support the land. Once this linkage took hold, other entrepreneurial farmers began to take interest. These new residents of the Intervale chose to follow the same model and ask the same question of, “How can I utilize my neighbors resources?” In a simple example of symbiosis currently in place, it is easy recognize that honeybees support flower gardens, which support the biomass plant, which support everyone in the community.

Recognizing the Intervale as an EIP is perhaps a debatable point as there are currently primarily farm related businesses participating. However, the use of waste products from Ben & Jerry’s and the linkage to biomass fuel is an avenue for future innovation. This community is not artificially trying to bring together industries, under the promise of Industrial Ecology; rather they have found an exploitable niche in the fabric of the community's needs. This model of slowly discovering concurrent business strategies closely resembles the efforts found in Kalundborg, Denmark. 2.1 Kahlundborg, Denmark

Kalundborg is the Stonehenge of this field, which has been “emerging” since it was first conceptualized 20-30 years ago. Many proponents think of Kalundborg’s EIP as an ideal manifestation of industry-meets-environment. But Kalundborg wasn’t built in a day, and those



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who would try to duplicate it certainly should not expect to create an eco-industrial park overnight.

Some citations say Kalundborg began as early as 1972, albeit in an unplanned way. What began as a one-production facility has evolved into a cluster of companies that rely on each other for material inputs. By the mid-1990s, there were 16 linkages in place between various on-site partners and today companies in other districts, as well as farmers participate. The core participants include an oil refinery, a power station, a pharmaceutical company, a plasterboard manufacturer, and the municipality of Kalundborg.

While Kalundborg has evolved without a grand design into the “Ultimate Embodiment” of sustainability and industrial ecology practices on many levels, the push first and foremost was on economic efficiency. Originally, a plasterboard company named Gyproc located near Denmark¹s largest state oil refinery, because Gyproc realized they could utilize the refinery¹s excess gas waste as energy. It was only later that other prospects for environmental efficiencies were realized and pursued. The web of industrial symbiosis is further outlined in an article written by the group Web of Hope.

In 1976 the Novo-Nordisk plant started the pattern of materials flows, matching the evolving energy flows; sludge from Novo Nordisk's processes and from the fish farm's water treatment plant is used as fertilizer on a nearby farm; a cement company uses the power plant's desulphurized fly ash after Asnaes reacts the sulfur dioxide in its stack gas with calcium carbonate, thereby making calcium sulphate, or gypsum, which it sells to Gyproc, supplying two thirds of the latter's needs; the refinery's desulphurization operation produces pure liquid sulfur, which is trucked to Kemira, a sulphuric acid producer; surplus yeast from insulin production at Novo Nordisk goes to farmers as pig food. (Web of Hope, 2008) It is clear from these examples why Kalundborg is cited as a framework by which to

compare other emerging areas of industrial ecology. Clearly, the uniqueness of Kalundborg must be acknowledged and thus the difficulties of exact replication noted. The town has been successful in applying the concepts of integrated eco-industrial parks, however, and stands as an example for others. 2.3 Braddock, Pennsylvania 2.3.1 A Declining Steel Town Braddock, PA Mayor John Fetterman has the dates of every person violently killed in his town since 2005 tattooed on his forearms. Three people have been murdered, and countless more have been victims of crime over the past 3 years. Once a thriving town of 20,000 people, Braddock was the location of Carnegie's first steel mill and their first free library. The steel industry collapsed in the 1970's, leading to decades of de-industrialization. Over time people left and crime became rampant. Today the town has one working steel mill, but most of those workers commute in from other towns. Multiple buildings and lots lie vacant in the downtown area, and the unemployment rate, at 15.5% is well above the national average. Braddock’s current population is 2,800 people, a 90% decrease from its heydays in the 1950's and 60's. The



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town is currently about 60% African American and 30% white. This small steel town just eight miles south of Pittsburgh, seems an unlikely place for a green revolution. Yet that is precisely what is happening through the hard work of its mayor and a persistent group of citizens. John Fetterman came to Braddock in the 1990's from York, Pennsylvania as an Americorps volunteer. By 2001 he had started, and still directs a program helping dropouts get their GED's and find jobs. Although proud of his successes, by 2005 he wanted to do more for the town. Fetterman ran for mayor that same year and won by a single vote. Since then he has wholeheartedly devoted the office to attracting and developing green industry in Braddock. Fetterman believes that the city's gritty industrial image can work in its favor, and accepts as his motto, “Destruction breeds creation; create amidst destruction. We’re in the Wild West here.” He wants to turn the town's weaknesses into strengths, beginning with the towns empty lots. 2.3.2 Successes and Methods: Fetterman realized that vacant lots offer opportunities, and he partnered with local farmers to create Braddock Farms, an organic farm, on an area the size of a football field in the middle of downtown on their main street. The organic farm also serves as an opportunity for the towns young people to have employment and learn about the farming industry, including marketing. Over 75 jobs have been created for Braddock's young people, many of whom are would have no other source of employment. Says Fetterman of the project "Today, [Braddock] is almost a ghost town with about 2,800. Because many buildings had to be torn down, we have an abundance of vacant land in the borough and not much use for it. We also have young people here who need employment. We've taken a situation that could be considered blight and turned it around. The net result is, we have job opportunities for our young people, we are transforming vacant land into attractive green space and we are increasing local access to fresh, nutritious foods." The farm has contracts with local restaurants as well as several places in nearby Pittsburgh. Using vacant lots to grow organic produce allowed the town to encourage local green industry with minimal expense. Mayor Fetterman also made a commitment to attract new green industry, in addition to developing it locally. He has focused on aggressive recruiting, believing that if Braddock develops a reputation as supportive to green industry, people will be interested in locating businesses there. The mayor has traveled all over the country, talking up Braddock and its assets at green job fairs, venture capital conferences and college campuses. Fetterman's strategy has been successful thus far. In 2007, he recruited the founders of Fossil Free Fuels, a company that retro-fits old diesel cars and trucks to run on vegetable oil. The company also sells the oil, for much cheaper than conventional oil from fossil fuels. Fossil Free Fuels created partnerships with local restaurants, the same ones that sell Braddock Farms produce, to take their oil-waste for re-use. Dave Rosenstraus, co-founder of Fossil Free Fuels, came to Braddock specifically because the mayor had made developing green industry a priority. “You need to come to Braddock with the idea that you will be giving something and, in turn, have a place for that creation to be made” (Green Industry Hub Rises From Rust Belt Ruins, p. 3)

The founders were also attracted by the incentives offered by the mayor. They were offered free rent for a year. “John went above and beyond to get us to Braddock” says co-founder Colin Huwyler. Fossil Free Fuels has retrofitted dozens of vehicles since their inception



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over a year ago, and are currently working with local businesses to retrofit several company vehicles. So far they have also generated at least one supplementary industry, a fueling station serving the cars they retro-fit.

Fossil Free Fuels Headquarters in Downtown Braddock Source: PopCity Media

The mayor is also working to change Braddock's violent image while simultaneously providing jobs, cleaning up the town and avoiding gentrification. Fetterman is working on the has created an art program offering free living space in the abandoned warehouses to artists who who will move downtown. Fetterman also created a program with Americorps called “Braddock Youth Project” to use the towns waste and recyclable materials to create art. This project has provided jobs, cleaned up the downtown area and created several mosaics while simultaneously reducing the amount of waste Braddock produces. Fetterman secured grants from several arts foundations including Mid-Atlantic Arts Foundation, which contributed $18,000 to the Braddock project. The concept of offering incentives to local artists and entertainers is not a new one, and has had demonstrated successes elsewhere. A study by Greater Pittsburgh Arts Council and the Washington, D.C.-based nonprofit advocate Americans for the Arts suggests the benefits of arts-incentives can be impressive, estimating that “that arts and cultural industries in Allegheny County generated about $342 million of local economic activity, added $15 million to local government coffers and supported more than 10,000 full-time jobs in 2005” (Pittsburgh Arts Council, 2007) Fetterman believes these programs will have an economic and social impact, “My immediate goal is to help change the outsider's perspective of what's possible in Braddock through the arts," he said. "This is a good way to counterbalance popular prejudices.”



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Brittany Quarlea, 14, of Braddock, with the Braddock Youth Project, works on cleaning grout off tile on the mosaic called “The Pond”, being installed in what will be known as The Verona Street Mosaic Park at Braddock Avenue

and Verona Street in Braddock. Source: Pittsburgh Post-Gazette 2.3.3 Recommendations Braddock has not been transformed into a hub of green industry overnight. In fact, it still has a long way to go. However, in the last 3 years since Mayor Fetterman was elected in 2005, the town has added over 100 jobs, improved its physical appearance, experienced a drop in homicides from 16 to four, and attracted dozens of new residents interested in being apart of Braddock's transformation (Ready Made, p. 4). The major keys to Braddock's success lie in the strong leadership of the mayor who used a strategy of using existing infrastructure and exhibited incredible persistence. Braddock used their abandoned lots to create a thriving organic farm that provides jobs and training for dozens of local residents. The town offered abandoned warehouses to attract artists to improve the communities image. Mayor Fetterman traveled the country to promote Braddock and recruit future green industry. Using existing strengths and relentless self-promotion, Braddock has begun the transformation into a thriving town again. 2.4 Los Angeles, California

Currently ranked 35th out of the 50-largest metropolitan areas on “green economy,” (Sustain Lane, 2008) Los Angeles is poised for improvement. Just recently, LA’s Mayor and Central Redevelopment Agency announced what was termed a “Groundbreaking Initiative to Create Clean Technology Manufacturing Center in Downtown Los Angeles.”

In the press release detailing the initiative, Mayor Antonio Villaraigosa made the bold statement, “Los Angeles will be the world’s clean technology capital. This is where innovators will create the jobs of a new economy for the 21st century.” Further, Cecilia Estolano, CEO of LA’s Central Redevelopment Agency (CRA) said, “The CleanTech Manufacturing Center will accelerate Los Angeles’ development as the center for green manufacturing by attracting, incubating and promoting the growth of environmentally sustainable companies. This groundbreaking initiative will bring together existing companies and innovators in our city, along with companies from around the world seeking to locate in Los Angeles.”

CRA has released a Request for Interest (RFI) soliciting firms who may be interested in locating at the site. The site itself is part of a 738-acre Central Industrial Redevelopment Project Area in downtown Los Angeles.



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This site has had a long and interesting history. A brownfield site, both a prison and incinerator have been proposed past uses. While both of these were successfully fought against by local community groups, the new use of the site is expected to please residents and community leaders alike.

Firms locating in the center will have access to various incentives, including energy programs and rebates, significant employment and investment tax credits, permit expediting assistance, workforce recruitment and training and other incentives and programs. Occupants may also qualify for tax credits, infrastructure grants and low interest loans. (CRA, 2008)

This recent announcement builds on a sustainability effort in Los Angeles that has been in place for a number of years. In 2006, Laurie Kaye, in her master’s thesis at UCLA, “Attracting ‘Green Industry’: An Economic Development Approach for the City of Los Angeles,” developed a set of recommendations that have interested the City. In fact, Ms. Kaye subsequently participated in at least one meeting of the City’s Environmental Affairs Commission, where she shared her research and policy recommendations:

Changing the Rhetoric and the Way of thinking to an Ecosystems Approach Coalition Building In order to Push for the Greening of Industry Green Purchasing Strategies: Demand Side Activities; and, Strategically Focus on Only a few Categories of Green industries.

At that same meeting, Elsa Barboza, campaign coordinator for the Apollo Alliance, a local initiative aimed at “creating a more sustainable, equitable and clean energy economy with the City of Los Angeles,” shared that group’s perspective on the opportunities before LA. Among other goals, the group has laid out a 5-10 year vision of “large-scale job creation for low income communities; healthier and safer communities; and community-based land use planning and economic development. They hope to achieve this through a coalition of leaders from community organizations, labor unions and the environmental sector.

The City appears to be heeding the advice of Laurie Kaye and Elsa Barboza. Partnerships are developing to provide momentum to the “green industry” push. At a recent “summit” on sustainability convened by the Los Angeles Business Council, leaders from within and outside LA met to discuss ways in which the City can truly be a leader on sustainability and within the “green economy.”

In the U.S. Census population estimates for 2007, the population of Los Angeles stood at 3.8 million, up from 3.7 million in 2007 and 3.5 million in 1990. Los Angeles is the largest manufacturing center in the US, with over 500,000 employed in this industry in 2003. LA also handles the largest volume of goods (in terms of value) making it one of the nations largest ports. With multiple universities and a center of finance for the entire United States, LA holds a special value in terms of world recognition and therefore leadership. Global Climate change and cleaner energy hold a unique interest to LA, due to its historically poor air quality and how the impact of a small rise in sea level, which some project may happen in the future due to climate change, would affect this city.

City Commissioners and Mayor Antonio Villaraigosa of Los Angeles are making green building a priority, with proposals to

1) to conduct an energy audit of all the city buildings to identify the sites and job potential;

2) to secure $100 million to retrofit 100 existing city buildings with energy and water efficient technologies;



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3) to create 2,000 union jobs for new and incumbent workers; 4) to establish a career ladder training program to connect inner city

communities to green jobs; and 5) to establish purchasing and other policies to seed the development of local

green building manufacturing. (Las Angeles Environmental Affairs Commission, 2007)

In 2002, LA’s green building contractors held the most green jobs in terms of total employment. At From 1996 to 2002, of the top industry sectors, Science and Technology jobs saw the largest growth, providing 4,400 new green jobs in that 6-year period. Water and Sewage Systems was the only category to lose jobs from 1996-2002. But Green Building is just one of the City’s core priorities for sustainability. LA’s Mayor hopes to make it the “Greenest and Cleanest Big City,” with components on renewable energy, green buildings, water, land use, open space and greening, waste and transportation. The open space and greening component includes a “Million Trees LA” initiative very similar to Atlanta’s Trees Atlanta programs. Although it is 35th out of 50th in “green economy” on SustainLane’s City rankings, it does rate high in number of areas. It is in the top ten in Solid Waste Diversion, Metro Transit Ridership, City Innovation and Knowledge Base and Communications. Strong rankings in these areas are certainly to help as LA attempts further leadership. Areas where it lags other cities are Water Supply and Quality (46th in both), Metro Street Congestion (49th), Air Quality (49th), Housing Affordability (49th) and Natural Disaster Risk (44th). Although many of these low rankings are due to the “realities” of LA’s geography, they nonetheless provide impetus for change. The Mayor’s renewable energy initiative aims to generate, by 2010, “20% of the City’s energy sales from renewable sources.” From 2005 to 2007, the amount of energy from renewable sources doubled, from 3% to 8% of total generation.

With unrivaled access to Venture Capital, LA stands to build on this Science and Technology growth. Nationwide, Venture Capital for cleantech investments reached 2.6 billion in the first 3 quarters of 2007. This reached well beyond the 1.78 billion invested in all 4 quarters of 2006 (AMR Research, 2008). In addition to this, it appears green competition from San Jose, CA, and other west coast cities may be the best source of encouragement for green growth. Many of the top cities in SustainLane’s and other rankings are from California. The state regulatory climate in California provides strong motivation for any City to step up and establish leadership. California is an acknowledged leader in implementing environmental laws and regulations. An engaged populace willing to push the limits on environmental causes and action has also, and will continue to be helpful to any City wanting to put green industry in place. Approximately ten percent of the U.S. population is in California, and ten percent of that is in LA. So making even small changes there can have a relatively large impact on environmental progress and set in motion a ripple effect.

The recent announcement by LA’s Mayor and redevelopment agency to create a center of leadership on sustainable technology within the City is one example of a long line of actions taken to fuel progress on sustainability. The Center and the city’s approach in general, have happened due to strong leadership, strong collaboration between industry, government and community groups, and the positive regulatory climate and culture within the State of California



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(which often also means having the resources to fund sustainability-related initiatives). Other cities striving to demonstrate leadership should work to leverage these key aspects of leadership. Conclusions and Recommendations:

CHAPTER 3: CONCLUSIONS AND FRAMEWORKS FOR ATTRACTING GREEN INDUSTRY In reviewing the literature surrounding emerging green industry as well as the successful examples, several common strategies for attracting and developing local green industry become apparent. The following table illustrates the areas of intersection among the case studies reviewed in this paper: Table 4: Strategies for Attracting and Developing Local Green Industry: Table 4: Created from Case Studies

Table 4: Created from Case Studies

Kalundborg, Denmark

Burlington, Vermont

Braddock, Pennsylvania

Los Angeles, California

Local Talent

Arts Focus

Infrastructure

Recruiting

Leadership

Partnerships

Sustainability

Resources

Symbiosis

Long term



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First of all, there is an interesting dynamic between the 1) resources a local community has, whether that's in the form of investment capital, knowledge or leadership, or size, 2) the success of other local industry's, 3) local environmental challenges, opportunities, and other unique characteristics of place, and 4) success in developing green industry. In general, as resources, size and need increase, the prospects for developing green industry increase. Granted, resources, size and need often go hand in hand. But the level of sophistication in approach may track to an increase in each. Local economic development professionals interested in attracting and nurturing green industry should first look to understand these and other local characteristics. As with any local economic development activity, local context is very important. As a step-wise approach to developing and attracting green industry, we might suggest a complete assessment of the environmental impacts and needs of your community. At a minimum, working to develop industry that can mitigate some of the local challenges will have the joint effect of reducing environmental footprint and increasing economic development. If green industry already exists in your area, work to understand the limiting factors to the growth of that business, and look for opportunities to help nurture that business. Even businesses outside the green sector per se may be - or need - opportunities. Using the concepts of industrial symbiosis and industrial ecology, attempt to connect industries within your area that might benefit from products or services provided by others. This will streamline their supply chains, reducing costs and environmental impact. If resources exist in your area - either through government funding, state or federal incentives, or private investment, look to drive a step change in the approach to green industry through attracting higher value industries such as renewable energy and clean technology. These are industries that can have a ripple effect in your community, not only reducing environmental impacts and improving economic development in the short-term, but providing thought leadership across an entire region, if not nationally or internationally. The "green wave" continues to bring opportunity. Increased understanding of environmental impacts, and solutions to mitigate them, give potential to even the smallest of communities. As a local economic developer, take on the challenge of attracting and developing green industry in your area. It may be your best opportunity to improving the quality of life in your own community - and many others.



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Hall, Charles R., Alan W. Hodges and John J. Haydu, “Economic Impacts of the Green Industry in the United States,” Final Report to the National Urban and Community Forestry Advisory Committee, June 2005.

McCarron, Kevin M., “Careers in the Green Industry,” Occupational Outlook Quarterly, Spring 2005.

Esty, Daniel C. and Andrew S. Winston, Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build Competitive Advantage, Yale University Press, 2006.

Literature Reviewed: 2. AIA: Local Leaders in Sustainability 3. Hot, Flat and Crowded Freidman 4. US Mayors report 5. AMR Research 6. Kaye, Attracting Green Industry – master’s thesis 6. http://vancouver.ca/sustainability/climate_protection.htm

7. http://www.sanjoseca.gov/mayor/goals/environment/GreenVision/GreenVision.asp 8. San Jose’s Green Vision – Mayor Chuck Reed

Baum Development, LLC. http://www.baumdevelopment.com/index.html Greenbiz.com Seven tips for attracting the best players to your green business, Stacey Marvel,

Devember 17, 2007. Illinois Real Estate Journal Attracting ((green) business Alicia Dorr, Tuesday January 2, 2007. The Ralph and Goldy Lewis Center for Regional Policy Studies. 2006. SEA Subcommittee on Attracting Green Businesses, April 28, 2008. (http://www.scopexcel.com/data/sea_meeting_minutes/4.28.08._green_business_minutes.pdf) “2008 City Rankings,” Ranking of Top 50 metro areas on environment and sustainability, www.sustainlane.com, SustainLane Media, 2008.

“Report 2020: U.S. Environmental Industry and Global Markets,” Environmental Business Journal. Grogan, John. "Paradise." Organic Gardening Magazine 2004. "Intervale Center." 2008. <http://ww.intervale.org>.



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"Kalundborg Industrial Ecology." The Web of Hope: Sustainable Lifestyle Solutions. Aug. 2006. Nov. 2008 <http://www.thewebofhope.org>. Raap, Will. "Intervale Compost Products." 2008. 02 Dec. 2008 <http://www.intervalecompost.org>. Saikku, Laura. Eco-Industiral Parks: A background report for the eco-industrial park at Rantasalmi. July 2006. Research Institute for Social

Sciences. Dec. 2008.

The Greening of Pittsburgh: The Rust Belt Rising in Braddock; pulled from http://www.digitaljournal.com/article/254790; retrieved on November 29th, 2008 Pop Star: John Fetterman; pulled from http://www.popcitymedia.com/features/fetterman0425.aspx; retrieved in 2008 Grow Pittsburgh; pulled from: http://www.growpittsburgh.org/growpittsburgh/About/History; retrieved in 2008 Braddock's Mosaic and Other Such Public Art Projects May Help Revitalize Communities; Pittsburgh Post-Gazette September 5, 2008 Captain of Industry: Ready Made; pulled from http://www.15104.cc/ReadyMade.pdf; retrieved on November 30th, 2008 Rustbelt Radio Interview with Mayor Braddock: http://pittsburgh.indymedia.org/news/2006/07/24306.php, retrieved on December 1, 2008 Braddock City Website; http://www.15104.cc/events.html; retrieved on November 30th, 2008

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