Sustainable Cities

Sustainable Cities

April 10, 2009

Ken Silverstein
EnergyBiz Insider
Editor-in-Chief

The dark clouds will subside and give way to blue skies. But the city of San Jose, Calif., isn't waiting. It's taking concrete steps now to prepare for a sustainable future -- a proposition that it says includes creating 25,000 new clean technology jobs and receiving all of its electrical power from renewable energy sources, all within 15 years.

While the city has attributes that most American jurisdictions do not, some of the techniques that it is employing can be applied elsewhere -- and soon will be, as a result of the federal stimulus program. San Jose, though, could be a model as the Silicon Valley, where it is located, is hosting dozens of solar-tech companies, a large solar testing site and is right between well-known national universities. And with a plethora of entrepreneurs and highly educated workers, the city can take on such lofty goals.

"The Silicon Valley is an innovation hub," says Nanci Klein, manager of the city's corporate outreach program. "This has infused us with the energy to change the world and to forward the cause of humanity. I would acknowledge that in many instances it is still cheaper to be brown than green. The challenge for us, however, is to get it close if not cheaper to current prices so that people can rationalize that expenditure."

San Jose has some early advantages that include an existing 12 percent renewable energy portfolio. Its local companies are furthermore incubating while developing solar technologies and efficient lighting so as to increase those levels. As such, billions have poured into the region. And while the most recent period has seen a lull in investment, overall the city is upbeat about the continued innovation.

Enacting federal production and investment tax credits for renewable energy projects is expected to advance the cause and provide more clarity. Venture capitalists, in fact, invested $2.2 billion into clean technology companies in 2007, according to a study released by PricewaterhouseCoopers. The stimulus, furthermore, will provide billions more, helping companies with good ideas get their products into the marketplace.

High-tech solutions are one answer. Low-tech ones are another -- the kind that any city anywhere can take up. San Jose, for example, has passed an aggressive green building policy for construction and renovation. That, in turn, is expected to create markets for modern construction materials. Likewise, it is working with its local utility, Pacific Gas & Electric, to try to reduce its carbon footprint by giving businesses and homeowners the option to buy carbon offsets. The power company will then reinvest that money back into local communities, for example, in the form of planting trees.

"One of the key messages for us is we try to be on both sides of the equation," says Klein. "We help businesses with our resources but use regulation to make a marketplace. If we can then show consumers that paying a little more will achieve a lot, they will do it. Incorporating new technologies such as installation and building materials, for example, can actually generate returns in less than a year."

Broader Vision

San Jose is uncommon. But other regions around the country will get a similar chance through the federal stimulus program. Those funds are headed to clean tech businesses with good ideas and to state and local governments as a $3.2 million block grant -- money that is to be used to create efficiency programs and to reduce air emissions.

It's about doing everything from implementing building codes to changing out street lights and replacing them with long-lasting bulbs. It can even be applied to fuel-saving transportation programs as well as the development of green energy ventures that will help local governments save money and cut consumption.

"The block grants are a major investment in energy solutions that will strengthen America's economy and create jobs at the local level," says Energy Secretary Steven Chu. "The funding will be used for the cheapest, cleanest and most reliable energy technologies we have -- energy efficiency and conservation -- which can be deployed immediately. The grants also empower local communities to make strategic investments to meet the nation's long-term clean energy and climate goals."

The block grants are in addition to the federal government's $8 billion initiative to support weatherization and state energy projects. Those funds, also part of the stimulus, will be used to make 2.5 million low-to-moderate income homes more energy efficient.

On average, weatherization reduces heating bills by 32 percent and overall energy expenses by $358 per year at current prices, the Energy Department says, although it takes a sizable upfront investment to achieve that savings. The spending, though, spurs low-income communities toward job growth and economic development. The agency adds that such programs have a net energy benefit of $1.65 for every $1 spent.

The stimulus funds will start flowing soon. North Carolina, for instance, will get about $100 million and channel that to municipalities to build affordable housing and to renovate older complexes. Similarly, Massachusetts will receive about $42 million and will allocate that to dozens of communities there. One of them, Fall River, says it would like to build a 1.5 megawatt wind turbine to power a sewage treatment plant, which would then create nearly $600,000 in energy savings.

The overarching national goal is to build an environmentally sustainable society while at the same time put people to work. It's a broader vision of what progressive cities like San Jose are already doing. Some ideas are far-reaching. Others are more basic. But the common feature in most cases is a newfound commitment at both the public and private levels to see the job through.