October 3rd, Green Jobs Meeting Notes

In attendance (in person): Scott Richards, Stacy Noland (Moontown Foundation), Rep. Hasegawa, Michael Woo (Got Green), Khepra Ptah (Got Green), Jeff Muhm, Shepherd Siegel (Seattle Public Schools)

In attendance (on phone): Rep. Eddy; Rep. McCoy, Vien Truong (Green for all), Gilda Wheeler (OSPI)

Started with brief introductions and brief background:

(Rep. Hasegawa) Came up that there are tax incentives for alternative energy that are expiring, the issue was raised with Rep. Hunter, though Finance Committee. How can we look into linking the expiration of these incentives with new green jobs.

WA Tax incentives

Jeff Muhm, put together a list of these tax incentives. Scott Richards broke down these credits to explain that some are expiring in 2009 and others in 2015. The incentives were also broken down into two main categories: production and manufacturing

RCW 82.08.22567/82.12.02567 – this was probably the biggest one, because it was used quite a bit, mostly by wind energy. Annually, it amounted to 4.8 million (on the state side) and 1.2 – 1.5 million in local. This was through sales tax, but currently the state is changing the way they collect the sales tax and not sure how this will affect this in the future. These were also mostly for big projects had to produce greater than 200 kw.

RCW 82.29A.135/84.36.635/84.36.640 – the incentive for “anaerobic digestion, manufacturing slcohol, biodiesel and wood biomass fuels “ hasn’t maybe even been used yet. Difficulties because no one’s figured out some of the technology necessary.

RCW 82.08.809 – the exemption from sales tax from hybrids, electric cars. Not sure how much money will be tied with this because it’s a “giveaway” and not sure if we need to “incent” these cars because they are in such high demand right now. But it doesn’t expire until 2011.

RCW 82.08.960 – sales tax exemption from sales of wood biomass fuel blends. Nobody has taken advantage of this. But there’s a lot of research being developed that says it could be used. They are close. This is one that could potentially have more interest – more buildings that make biodiesel out of wood waste. Potentially could be used by the Weyerhausers of the world.

Also, RCW 82.08.900 has no expiration date and it’s currently being used by three facilities

RCW 82.08.865 also has no expiration date and going towards specifically tractors/farms for biodiesel blends.

Retailers of biodiesel are eligible for B&O deductions. B&O has gradiation (where as other tax incentives you don’t). Can they get a deduction of wages?

Requests

One thing they would like to see is that these incentives are redone so that they expire all in the same year (right now they are staggered). So pushing them all the way out to 2015 so they could all line up

Rep. Eddy asked that these incentives be put in a chart/grid that would include information on:

· Knowing the lost revenue opportunity

· The stats: who uses it, how much

· Also include those that aren’t expiring in 2009

· What are the projections?

Want to “clean” the books if they aren’t being used.

Opportunities for linking to greenjobs

· Wind & solar production – that seems like a good incentive to extend.

· The k-12 schools have a slower reaction time, but the community and technical colleges are quick to react to get people into appropriate technical trainings. (short –term)

· How do we go into communities with youth early enough so they can see the pipeline that will eventually lead into these job (looking at primary schools).

· (long-term efforts) Wind turbine project in the k-12 system. Putting small wind turbines on school campuses (Gilda said this is a current project). But there’s no funding for the wind turbines. Maybe we could use the incentives to fund turbines and link it to the curriculum that already exists to get young people understanding these jobs and exposed to the technology.

· Concern that was raised: Look at PSE and their wind turbines. They are getting them from companies out of the country. Why can’t they get them from here? Develop it here. Maybe you could incentivize companies like Boeing (and they can publicly step up and take the lead)

· Also need to have articulate individuals who go into communities that can explain it in a culturally responsive way to break it down. So you create a program that will train individuals

· Youth apprenticeship program get on the job training (in high schools) and a job in the industry. High schoolers also have to do a culminating project, could act like an apprenticeship. We do have apprenticeship trainings in some districts, but it’s not statewide.

· Also helpful to use existing infrastructure: state has 10 or 12 districts that are tech prep. (in high needs districts?) it’s an existing consortium. Can have corporations work in that consortium, you would hit three things: 1. Working with k-12, 2. Streamline into the technical skills, 3. Link it to incentives

· State is developing skills center – could try to make it a primary focus of the skills center

· Wind turbines: someone to lay those turbine lines, potential for an apprenticeship. Right now you have to go to Portland for a 3 month training. No apprenticeship training here – PSE contracts with the folks in Portland.

· The connection between small projects has to go deep into career paths, because if there are real companies that are benefiting from the tax incentives need to have an explicit deal with them to be hiring from certain communities – need to make these connections.

· Also want to look at conservation, not just production/consumption, look at weatherization, HVAC, control experts. Potential to develop energy audits – but also have to understand that energy audits are labor intensive and people who get the audit may not have the money to make the changes – how do you address that. Energy performance certificate: in Portland they came up with a model so they can get in and out of a home to do an audit in just a couple of hours, you can get the seven hours down to just a couple of hours (Cal Shirley – Stacy Noland suggested his name). Right now the max anyone can do is 200 audits in a year – that’ the max capacity right now of anyone.

Have these incentives been useful,

· There was an employer tax incentive for construction contractors to take advantage of that, but the incentive was so small it wasn’t worth it. ( it was an incentive on their employer taxes to hire out of the community) (Michael suggested he could send some more information)

Where is the “nexus” the opportunity to make them useful and create green jobs.

The incentives were to go to promote renewable energy – don’t want to dis-incent that process, need to keep clear on policy goals

It looks like businesses are interested in green jobs, so need to bring in some business partners beforehand. Find out what their business trajectory is, how can we partner with them, need to go to green businesses how are they going to compete? A “workback” schedule, find out now what type of skilled workforce they will need in fifteen years. Find out also if these jobs will have a pathway out poverty – will they be just low-income jobs, or will they have potential for upward mobility?

Next Steps

· Post some documents/reports in a common place to reduce emails (Stacy, maybe create a blog?)

· Pull a meeting with some businesses, then pull a meeting together with Stacy, Skip, Bob, and Egils (to talk about businesses and future of green jobs)

· Also pull a meeting together with Stacy, Shep, Bob, Workforce Training board (Madeleine Thompson) and (maybe) Jill Wakefield (talk about apprenticeships in the “consortium” that already exists within the k-12)

· Scott/Jeff will send out a link to the JLARC report – but JLARC’s report only includes the ones expiring.

· Jeff will work on putting the incentives in a chart/grid

· Need to reach out to a more comprehensive list of folks who should be involved in the process:

Ø PSIEC – Joe Hauth – find out about their trainings

Ø Major industries, Boeing, Master Builders Assoc

Ø No one here is from CTED – need to talk to CTED and find out where do they see the opportunities of greening these incentives. Because right now they are doing the oversight for the job training program – who’s in charge?

WA economic development commission (need to contact them) – has been working on a policy framework and a workforce development strategy. They are producing some documentation from their perspective what do we need to do to create 25,000 jobs the governor wants & cut carbon emissions.

Ø Green for all, will send a list of their WA partners

Note: Rep. Hasegawa has already asked for more information on initiatives to create green jobs and pathways to green jobs from the following organizations:

Ø National Conference of State Legislatures - Amanda Naughton

Ø Apollo Alliance - Patrick Neville

Ø Progressive States Network - Marisol Thompson

Ø WA Environmental Council - Joan Cooks

Ø Workforce Training Board - Madeleine Thompson

Ø WA State Board for Community & Technical Colleges - Charlie Earl