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Washington hoping to ride green economy

Chris Bruffey
Special to The Spokesman-Review
December 13, 2008

When REC Silicon purchased afactory in Moses Lake in 2002, “green” jobs in central Washington were rare. Few people had ever heard of a green job.

The Norwegian company quickly retooled the factory to produce silicon for solar panels, making it the first facility in the world dedicated exclusively to producing solar-grade silicon.

Today, the factory employs about 400 people and is about to complete an expansion, with another one planned in the near future. While most of the silicon currently produced at the $1 billion facility is exported overseas, state officials hope the product will find increased use locally.

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“[The facility] provides excellent jobs for the community,” said Ronald Covey, mayor of Moses Lake.

With record oil prices last summer and the overall economy in a downturn, Washington state is hoping to ride the green wave to economic renewal while simultaneously tackling climate change. Gov. Chris Gregoire has made growing the green economy a high priority for her second term and has assembled a climate advisory team consisting of scientists, environmentalists, industry leaders, and politicians.

In 2007, Gregoire signed an executive order establishing the goal of reducing greenhouse gas emissions in Washington state to 1990 levels and employing 25,000 people in the clean energy sector by 2020. By 2050, Gregoire hopes to the state will cut emissions to one half of 1990 levels — a reduction of 50 million metric tons below 2004 emissions levels.

Many terms have been used to define the green economy, which sometimes creates confusion.

“It’s not clear if there is a commonly accepted definition,” said Cheryl Smith, a senior policy advisor at the Washington Department of Community, Trade and Economic Development.

The green economy consists of businesses that promote energy efficiency and environmental protection, including the development of alternative energy sources and reducing pollution, Smith said.

Because statistics are scattered across many sectors of the economy, it is difficult to place an exact dollar figure on the overall size of the green economy. One component, the clean energy sector, employed about 8,400 people and reported revenues of $2.1 billion in 2004, making it larger than the state’s logging and coffee industries.

Smith said “greening” can occur in any sector of the economy and any industry, and the goal of green economic growth is to integrate the principles of energy efficiency and environmental protection into the overall economy.

Still, there are some green sectors where economic growth is possible.

“We are looking at growth in the green sector as a way to stimulate the (state’s) economy,” said Penny Thomas, a spokeswoman for CTED. She said it could provide a boost to sectors like the building industry, which has been hit hard by the economic downturn.

Climate Solutions, an environmental research firm, said in an October report that the potential exists for 41,000 new jobs in Washington and Oregon by 2025. Most of the new jobs would be in green building and the manufacture of solar cells, accounting for over half of the potential job growth. Other sectors include wind power, bio-energy and smart-grid technologies that efficiently manage and automate power distribution.

Schweitzer Engineering Laboratories in Pullman specializes in the latter. “We are creating new careers every single day here,” said Susan Fagan, director of public affairs at SEL. Policy makers are examining the best ways to grow the green economy.

“The goal is to create a demand for products and services,” Smith said.

Government can do that by sending strong policy signals, establishing strict regulations that reduce carbon emissions, changing building codes and providing tax breaks and subsidies for businesses to “go green,” she said.

“Timing is important because competition is fierce,” Smith said.

Despite the economy’s current woes, businesses will still be investing, and the key is to focus investment into the green economy, she said.

“Everyone is looking at this as a new economic opportunity,” said Matt Steuerwalt, Gregoire’s policy adviser for energy.

He said Washington is in a great position to lead the nation in green economic growth, pointing to the state’s extensive use of hydropower, which is “one of the cleanest electric systems in the country,” and the state’s forests and agriculture industries, which could position Washington as a leader in bio-fuel production.

Washington State University researcher Norman Lewis agrees. He has been looking for ways to make ethanol from non-food crops, such as poplar trees. Currently, ethanol is produced mostly from corn, which makes the cost of food subject to changes in the energy market. While some of the research has been promising, Lewis acknowledges there is much more work to be done.

“There’s not a quick fix out there, we’re still at least five to 10 years out,” Lewis said. Once a substitute is found, the focus would shift to genetically engineering plants that could produce large quantities of bio-fuels.

Despite the obstacles, Lewis believes there is potential for Washington’s economy to benefit from bio-fuels, including the possibility that the state could achieve energy independence, consuming bio-fuels produced locally.

“The challenge is enormous because what we call energy is derived from 19th century technologies,” Lewis said. “Finding a solution will require thinking outside of the box.”