Bioeconomy & transportation advisory group

Implementation Mechanisms

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Implementation Mechanisms

Support infrastructure mandates that enable the Midwest to ramp up agricultural-based energy (e.g. all new pumps must be certified to higher ethanol blends), even if they do not mandate its use.
Develop diverse and innovative funding strategies such as bonding authorities, removing barriers to entry for small producers, and diversifying financing methodologies.
Establish bonding authority or access to bonding funds for co-ops, municipal utilities, and other local and community-owned entities to fund biomass projects and to, wherever possible, make the opportunity available for local ownership in projects receiving public investments.
Develop an IPO (Initial public offering) showcase for each class of bioenergy to encourage greater private venture capital investment.
Organize periodic major regional events that pull togggether the Midwestern Governor’s Association, financial players and industry to leverage resources that can be matched with federal dollars.
Fund sources of new crops or innovative uses of existing crop residues for cellulose to ethanol production.

Establish a clearinghouse to seek and match investment capital and philanthropic funding for bio-based economic development and reduction of GHG emissions to communities and business.
Establish state and regional programs to underwrite loans to existing biofuel facilities to purchase fixed cost technology that will accomplish one or more of the following:

Reduce GHG emissions;
Improve the energy balance of the facility; and
Improve the productivity of the facility (defined as an increase in the value of total products produced vs. the cost of the inputs of production).

Establish state and regional task force(s) to remove barriers that would prevent cooperatives and other forms of local and community-ownership from participating in government incentive programs in the bioeconomic sector.

Work with university technology transfer departments to provide incentives to keep bioeconomic intellectual property developed at Midwestern colleges and universities in Midwest businesses.

Create a regional-level bioeconomic business development office that will connect emerging bio-based businesses in the Midwest to Midwestern Angel and venture capital sources as well as grant and philanthropic funds providers.
Fund the conversion of corn ethanol plants into advanced cellulosic ethanol production, encourage any new facilities to have conversion options built-in.

Develop integrated business model structures that incorporate as many components of community advantages as possible.
Leverage funding, as a region, made available in the American Recovery and Reinvestment Act of 2009. Specifically, the $6 billion made available through an Innovative Technology Loan program to make available loan guarantees for renewable and transmission technologies.

Related Policies/Programs in Place

Current state ethanol production credit programs can serve as models for development of production credit programs for next generation biofuels production. A complete listing of these is available at www.deseire. Com.

Resource: Database of State Incentives for Renewable Energy; www.dsireusa.org

Type(s) of GHG Reductions

Expected greenhouse gas reductions will be from carbon dioxide, through reductions in the amount of fossil fuels and education and awareness from new business opportunities in bioeconomy sector.

Estimated GHG Reductions and Net Costs or Cost Savings

Data Sources:

Real-life Economics: Understanding Wealth Creation by Paul Ekens and Manfred Max-Neff

Transition to a Bioeconomy: Environment and Rural Impacts. Farm Foundation http://www.farmfoundation.org/news/templates/template.aspx?articleid=401&zoneid=85

Transition to a Forest Bio-economy: A Community Development Strategy Discussion by Sylvie Albert, Faculty of Management, Laurentian University, Ontario, Canada.
Quantification:

Because of the far-reaching and diverse options recommended, it was not possible to neither quantify the potential reductions in greenhouse gases nor determine a cumulative cost for specific actions by state or region, but to the extent bio-based fuels are created which supplant petroleum or other higher carbon intensity fuels, the result will be a net lowering of carbon emissions.

Key Uncertainties

Given the uncertain economic times and potential difficulty in raising venture capital or bank loans, commitment to change may be less than enthusiastic in the short term. However, these recommendations will lead to greater long-term diversification and financial stability.

Additional Benefits and Costs

Thriving communities and quality natural landscapes attract a broad base of businesses.

Feasibility Issues

None cited.

Status of Group Approval

The group has approved these recommendations conceptually. Final approval pending.

Level of Group Support

TBD

Barriers to Consensus

None known.

BT-6.2: Bioeconomic Workforce Development

Policy Description

This policy focuses on labor force development in emerging industrial niches in the bioeconomy and in energy efficiency. It is recognized that parallel efforts to develop and sustain the intellectual capital and human resources necessary to design and engineer policy, systems and structures includes land use planners, engineers, developers, and inspectors who understand green design and the bioeconomic society. These are degreed positions and not the target of this policy option.

Policy Design

It is the purpose of this policy initiative to create collaborative workforce development programs between industry, state governments and educational institutions that will staff and drive the development of bioeconomy and clean energy jobs.
Possibly more than any other geographic area of the United States, the Midwest has been hit hard by job loss due to globalization and the shift of traditional manufacturing jobs to other parts of the world. The technologies and processes associated with the bio- and green-energy economy present possibilities for replacing jobs lost due to displacement from globalization with jobs requiring similar skills in this emerging sector.
In order to capture as much value for the Midwest from the emergence of this sector we must invest in the backbone of America’s and the Midwest’s labor force: workers with more than high school, but less than a four-year degree . The new energy economy will be built and sustained by middle-skill workers in traditional occupations. Providing both the new technologies and the trained workers to support them will insure the accrual to the Midwest of a significant percentage of the value to be created by the new bio-based and green energy economy. Many of the jobs in this economy are closely related to jobs that exist today.
Goals: A series of key principles has been outlined by the “Greener Pathways” study sponsored by the Center on Wisconsin Strategy, the Workforce Alliance and the Apollo Alliance. These same principles should guide policy initiatives in the Midwest:
1. Develop a focused approach by building on a solid foundation of labor market data and analysis:

Target specific sectors within the ‘green jobs’ area;
Use good labor market data to drive initiatives; and
Measure and evaluate new jobs programs as they are created.

2. Build good jobs through partnerships, linking economic development and job creation:

Employ energy standards as green job creation tools;
Promote bioeconomy and green energy clusters;
Link economic development in the sector to workforce development;
Develop coalitions and partnerships; and
Integrate green jobs initiatives into existing workforce systems.

Timing:

2009: Establish coordinators in each state’s Department of Workforce Development
2010: Establish state funds for investment in curriculum, equipment and other needed resources to move job training from the general to the specific in regard to green jobs.
2010: Establish a Midwestern or state-level funds source to better survey and track industry requirements so as to develop job data that is specific to the needs of bioeconomy and green energy companies.
2010: Conduct a region-wide review on a state-by-state basis to determine existing bioeconomy and green energy initiatives and requirements in order to better optimize efforts to use policy and standards to drive economic development and green job creation.
Parties Involved: Economic Development and Workforce Development departments of the Midwestern states; Management of the technical college systems across the Midwest; Management of other two and four year college programs involved or potentially involved in green job training programs; unions; Departments of Administration of Midwestern states.

Other:

Implementation Mechanisms

Involve key players in partnerships among employers, unions, community-based organizations, and public-sector institutions to create strong local and regional workforce development programs for the emerging bioeconomy..
Establish coordinators in each state’s Department of Workforce Development that are responsible for:

Focusing on and coordinating the transition of jobs programs from generalized skills toward green and bioeconomy-specific skills;
Coordinating resource deployment across the Midwest to optimize job training investment and resources and to avoid unnecessary duplication of expense and effort;
Tracking current job losses and determining which categories of displaced workers are good candidates for training for green jobs;
Working with industry partners to understand and predict the industry job market requirements and to develop curriculum and programs to meet those industry needs;
Developing labor standards and safety programs that address changes in work settings and potential job hazards; and
Working with Government, Industry and Labor to establish pay scales that reflect skills required and be sufficiently competitive to encourage participation.

Establish state funds for investment in curriculum, equipment, and other needed resources to move job training from the general to the specific in regard to green jobs. For example, invest in providing wind turbine motors to help move a generalized electrical technicians program toward a specialized wind turbine repair and installation program.
Establish a Midwestern or state-level funds source to better survey and track industry requirements so as to develop job data that is specific to the needs of bioeconomy and green energy companies.
Conduct a region-wide review on a state-by-state basis to determine existing bioeconomy and green energy initiatives and requirements in order to better optimize efforts to use policy and standards to drive economic development and green job creation.
Invest in the development of workforce training programs that:

Tie development of projects and the industry to specific training options in technical schools and other education providers to ensure the necessary workforce is available;

Stress on-the-job training as an important facet of workforce development;
Work with unions to adapt apprenticeship programs to train new green job skill sets;
Simultaneously meet the emerging needs of industry; train and support workers; and create good, family-supporting jobs;
Develop job skills commensurate with the requirements of the sector;
Focus on job quality – compensation, job satisfaction, opportunities for advancement – not just job quantity; and
Develop community college programs for skilled labor in solar installation, wind tower maintenance, biomass production, and ethanol plant production and operation.

Develop incentives to attract the workforce of the future to more rural areas. Programs that support spouse careers, education opportunities (child and adult learning), quality of life, and community infrastructure are essential.

Related Policies/Programs in Place

University of Illinois curriculum
Milwaukee-based Wisconsin Regional Training Partnership (WRTP) and Jobs With a Future (JWF) of South Central Wisconsin. In addition, COWS spearheaded the Milwaukee Jobs Initiative (1997-2004), which provided training, mentoring, and other services to help low-income, central city residents connect to family-supporting jobs.
Advanced Manufacturing Project, a research consortium that investigates how suppliers of large equipment producers can stay competitive and preserve quality manufacturing jobs in the upper Midwest.
AgBioworks is an initiative of Memphis Bioworks Foundation and BioDimensions dedicated to developing new agricultural technologies and processing. www.agbioworks.org
The 21st Century Jobs Fund is a $2 billion, ten-year initiative created to accelerate the diversification of Michigan’s economy by increasing the amount of capital available to Michigan companies. Alternative energy is one of the targeted sectors.
Agriculture Processing Renaissance Zones (Michigan) – areas of no-tax for agriculture and forestry-related businesses including those producing biomass for fuels or energy.
Iowa, Ohio and other Midwestern states have a number of programs and initiatives to attract jobs in the bioeconomy sector.Center on Wisconsin Strategy (COWS) at www.cows.org. This national policy center and field laboratory for high-road economic development promotes a competitive market economy of shared prosperity, environmental sustainability, and capable democratic government. Their publications contain numerous recommendations for attracting jobs and employees with the skills to match.
Environmental Defense Fund, Green Jobs Guidebook, is a useful reference to understand the types of green jobs available. The guidebook focuses on California, but has instructive value.

Type(s) of GHG Reductions

Primarily CO₂through the creation of jobs in the bioeconomy and energy efficiency sector.

Estimated GHG Reductions and Net Costs or Cost Savings

Key Uncertainties

The ability of states to redistribute resources to create recommended positions in the short-term is uncertain.

Additional Benefits and Costs

All efforts to improve community prosperity through job creation, retention and enhancing the skills of the workforce serve to attract more industry and services, especially when quality of life, environment and work are emphasized.

Feasibility Issues

None cited.

Status of Group Approval

The group has approved these recommendations conceptually. Final approval pending.

Level of Group Support

TBD

1 The document recommends:

Encouraging Congress to support the goals of the Midwest Regional Rail Initiative and Ohio Hub, continue its support of Amtrak’s Empire Builder route, and support ways to increase accessibility in states where passenger rail service is lacking.
Having an interconnected national passenger rail network that is integrated into the nation’s air, highway and local transit network.
Continuing a national passenger rail program with its own source of funding.
Improving the process for reserving and establishing passenger and commuter rail access on private railroads.
Improving cross-modal connectivity to provide greater efficiency of goods movement from one mode to another—such as barge to truck or truck to rail.
Encouraging the federal government to be partially responsible for promoting the continuity of the rail network between states and regions, and to provide a framework for preserving, maintaining, improving and expanding the nation’s passenger and freight rail system.
Developing technology through the efforts of the Federal Railroad Administration and the railroad industry to provide safe, cost-effective, higher-speed passenger and freight train operations on shared-use rail corridors.
Continuing funding for a variety of advanced safety devices to improve safety at highway-rail crossings.

2 The Midwestern Governors Association Surface Transportation Recommendations support:

Continuing a strong federal commitment to public transit in both urban and rural areas and providing funding for needed programs that make essential transportation services available to urban and rural residents.
Providing additional regulatory flexibility so transit agencies can provide enhanced public transportation services that allows more individuals to enjoy services.
Providing more federal transit options for residents in rural areas.
Encouraging and supporting the expansion of intercity and intracity public transportation services provided by commuter, intracity, and intercity vans and buses.

3 The document recommends:

Encouraging, promoting and investing in energy-efficient mobility options, including providing maximum flexibility to integrate the needs of pedestrians and cyclists into transportation alternatives.

4 CALSTART http://www.calstart.org/aboutus/?p=aboutus

5 CAEATFA http://www.treasurer.ca.gov/caeatfa/

6 USDA 2008 Farm Bill Renewable Energy Provisions

http://www.ers.usda.gov/FarmBill/2008/Titles/TitleIXEnergy.htm

7 Qualified new business ventures may be eligible to claim an income tax credit on that investment, equal to 12.5% in each of two years. (http://www.commerce.state.wi.us/BD/BD-Act255-QNBV.html) Bill Summary available at: http://commerce.wi.gov/BDdocs/BD-Act225-Budget%20Changes.pdf

8 Iowa Biotechnology Business Support http://www.iowabiotech.com/industry/business_support.htm

9 New Jersey Research and Development Technology Programs http://www.locationnj.com/Incentives_Technology.asp

10 Article on Texas’ State Strategy on Advanced Technology http://www.texasnano.org/pdfs/SSAT_description_letter_2-14-05.pdf

11 University of Wisconsin Biotechnology Center http://www.biotech.wisc.edu/

12 MERLIN Network at University of Wisconsin Madison

http://merlinmentors.org/about.php

13 Council of State Governments, Midwest Office http://www.csgmidwest.org/About/MLC/Committees/Agriculture.htm

14 Midwest Consortium for Biobased Products and Bioenergy http://cobweb.ecn.purdue.edu/~lorre/16/Midwest%20Consortium/index.shtml

15 Midwest Alliance for Renewable Energy http://www.renewmidwest.org/

16 North Central Bioenergy Consortium

http://www.ncbioconsortium.org/

17 The Midwest Consortium for Biobased Products and Bioenergy http://cobweb.ecn.purdue.edu/~lorre/16/Midwest%20Consortium/

18 USDA’s Biopreferred Labeling Program http://www.biopreferred.gov/Labeling.aspx

19 USDA’s Biopreferred Program http://www.biopreferred.gov/?SMSESSION=NO

20 USDA’s Biopreferred Program’s Catalog of biobased products certified through this program http://www.biopreferred.gov/Catalog.aspx

21 North Central Bioeconomy Consortium http://www.ncbioconsortium.org/

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