CleanStart - Clean Energy Technology Incubator

Clean Energy Showcase Summary

There are many drivers creating a sustainable market for clean energy and doing so in this region:

1. Carbon costs are almost certainly going to be included in energy prices creating more of an edge for clean energy.

	a.	AB 32 and Kyoto II rules are coming, probably starting with rules that affect power generation in CA first.
	b.	AB 32 will also add to the cost of gasoline and diesel, but those rules will take longer to implement.

2.	Area builders are leaders in innovative building design for homes and offices and they are finding ready buyers—creating a market “pull” for more energy efficiency and green energy features.
3	Increasingly communities are looking at “trash as a resource”—6 times more jobs in recycling and conversion to energy than in garbage disposal. Local companies such as Pacific Renewable Fuels are creating technologies based on wastes to make liquid fuels for cars and trucks.
4	There are top business degree programs in the area, recognized in the top ten nationally, graduating talented students that want to work in green firms locally.
5	There is world-class research on improved efficiency in lighting, cooling, and buildings which will make products possible that cut energy use by 30-40%. This research can find it’s way into enterprises.
6	Clean energy companies are getting good valuations in the public markets, which means early investors have a chance to become filthy rich from putting money into them, stimulating more risk capital to come forward.
7	The region is spawning high quality companies in all clean energy sectors—saw just 10% of them present at the Showcase.
8	The new rules for solar, for energy efficiency, for carbon reductions are all being made here and will permeate to the world. Being here and pioneering products here will give clean energy companies an edge in world markets.

The overall theme that emerged is that we as a region can
act independently of waiting for the UN (Kyoto II) or Congress
to create a clean energy economy That action can
consist of the following:

1. Creating customers and becoming a clean region ourselves - nothing better to stimulate local companies than creating a customer base, much more important than things like tax incentives.

	a.	Demonstrating how to do it is better than waiting for someone else to create incentives or mandate it to happen.
	b.	We can get commitments from local government and employers to buy green and to buy it from local firms.
	c.	Through programs like those of SMUD and PG&E, a market for buying and selling CO2 credits can be created locally to help firms reduce their carbon footprints.
	d.	The Clean Energy Action Team of the Partnership for Prosperity is a great vehicle to make this happen.

2. We could create programs to give incentives to participate.

	a.	We could establish a “Sacramento CleanTech Champion” program to enlist governments and businesses to take action and be able to publicize they are doing so.
	b.	To be a champion would require an applicant to meet certain goals, such as reducing energy use 15%, increasing renewables purchases to 20%, and reducing carbon footprint by 25%.
	c.	We need to establish some goals and measure our progress in order to ensure we move forward.

3. We need to keep attention focused on the goals of building a clean energy
economy how to get to the goal of 10,000 new jobs and $5 billion in new revenue.

	a.	Tax incentives can’t make a bad region a good one.
	b.	Areas like Silicon Valley are high cost, labor costs are high, but still it is the place to be in computers and software.
	c.	We don’t have to throw money at companies to get them to grow here.
	d.	We just need to make them welcome and provide a stimulating and supportive surrounding.

4. To do all this we need participation and help.

	a.	It’s a resource issue, plain and simple.
	b.	We need you to volunteer with any of the multiple organizations contributing to this initiative—SARTA, CleanStart, GreatStart, SACTO, the Metro Chamber, the Partnership for Prosperity.
	c.	If you are an angel investor, allocate a third of your intending capital to clean energy companies.
	e.	Donate to the clean energy organizations, as a business beomce a sustaining sponsor.
	f.	As an individual, become a member.
	g.	Attend all the networking and learning events—events build momentum
	h.	Need to expand our reach to Dixon and Vacaville—clear interest in joining.

5. The region has to achieve some proof points to succeed.

	a.	Provide financial support beyond the lab research. CEC’s PIER program and EISG are perfect for this if given a commercialization focus.
	b.	There need to be some great “cash-outs” or “exits” for clean energy companies in this region to demonstrate one can make high returns—we haven’t seen that yet but we could shortly.
	c.	A deep bench of serial entrepreneurs, CEOs, CFOs, etc. with company building experience—we have seen 100,000 people move here from Silicon Valley as they get rich there, so the bench is growing.
	e.	Training of entrepreneurial teams—we are getting that with GreatStart, the UCD Entrepreneurship Program and elsewhere.
	f.	An educated and specially trained workforce—that creates an attachment to the region that is not easy to duplicate elsewhere and gives us an edge.
	g.	Attend all the networking and learning events—events build momentum
	h.	Cluster areas where growing companies feel they get mutual support—starting to see these emerge in Roseville, Folsom, West Sacramento, Rancho Cordova - need more.

To do all this, we do not need to wait. We can act locally.
It starts here. It starts now. Let’s make it real!