OREGON’S CLEAN ENERGY ECONOMY A Clean Edge State Clean Energy Leadership Index Report PORTLAND DEVELOPMENT PDC COMMISSION www.pdc.us TABLE OF CONTENTS 02 Introduction 14 Financial Capital Clean Energy Venture Capital Utility Energy Efficiency Programs 04 Clean Electricity Green Power Purchasing Utility-Scale Clean Electricity Generation Financial Capital – Spotlight & Key Lessons Installed Wind Energy Capacity Installed Solar PV Capacity Clean Electricity - Spotlight & Key Lessons 18 Workforce & Innovation Clean Energy Jobs Clean Energy Patents 08 Clean Transportation Workforce & Innovation – Spotlight & Key Lessons EVs & HEVs EV Charging Stations Clean Transportation – Spotlight & Key Lessons 21 Clean Energy Policy Policy Checklist 11 Energy Intelligence Green Building 22 Conclusion Smart Meters Energy Intelligence – Spotlight & Key Lessons Introduction 2011 STATE CLEAN ENERGY LEAdERShIP INdEx As the global clean-energy economy continues on a path of increasingly lower costs and accelerated growth, the U.S. remains an integral industry player – a technology developer, a product manufacturer, and a market for clean-energy technology deployment. But after decades without consistent federal support, America’s clean-energy sector has become geographically fragmented, with states and cities acting as the primary drivers of growth. While some regions made early proactive efforts to attract clean-energy companies, jobs, deploy- ment, and investment, others opted to ignore the sector altogether and are only now beginning to realize the economic benefits of clean-energy pursuits. LOWER RANKING HIGHER RANKING This report, sponsored by the Portland Development Commission and Business LOWER RANKING HIGHER RANKING Oregon, two key economic development agencies within the state, evaluates 2011 U.S. CLEAN ENERGY LEADERSHIP INDEX Oregon’s standing in the U.S. clean-energy economy. The report leverages data RANK STATE SCORE RANK STATE SCORE from Clean Edge’s 2011 State Clean Energy Leadership Index, a subscription- 20111 U.S.California CLEAN95.3 ENERGY LEADERSHIP26 Montana INDEX40.3 2 79.4 27 38.0 RANK STATOregonE SCORE RANK STATNorthE Carolina SCORE based research service that provides a unique perspective of U.S. clean-energy 3 Massachusetts 71.8 28 Virginia 36.9 41 NewCalifornia York 63.195.3 2926 UtahMontana 35.940.3 activity by aggregating and analyzing industry datasets from a variety of pub- 52 ColoradoOregon 60.279.4 3027 OhioNorth Carolina 35.238.0 63 WashingtonMassachusetts 60.071.8 3128 FloridaVirginia 35.036.9 lic, private, and Clean Edge sources. The index produces annual comprehensive 74 New MexicoYork 57.063.1 3229 IdahoUtah 34.635.9 5 Colorado 60.2 30 Ohio 35.2 performance scores and rankings for all 50 U.S. states based on activity in three 8 Minnesota 57.0 33 Indiana 32.2 96 ConnecticutWashington 56.960.0 3431 KansasFlorida 32.135.0 key clean-energy categories: technology, policy, and capital. 107 VermontNew Mexico 53.257.0 3532 GeorgiaIdaho 30.834.6 118 NewMinnesota Hampshire 51.357.0 3633 SouthIndiana Carolina 26.832.2 129 IllinoisConnecticut 51.156.9 3734 MissouriKansas 25.332.1 1310 NewVermont Jersey 50.853.2 3835 SouthGeorgia Dakota 24.730.8 The following pages highlight Oregon’s strongest areas of activity and compare 1411 MichiganNew Hampshire 50.251.3 3936 KentuckySouth Carolina 24.526.8 the state’s performance against national averages and performances of five 1512 WisconsinIllinois 49.951.1 4037 TennesseeMissouri 23.825.3 1613 HawaiiNew Jersey 49.750.8 4138 OklahomaSouth Dakota 22.024.7 other top performing states chosen for their similar characteristics and high fre- 1714 DelawareMichigan 48.750.2 4239 WyomingKentucky 21.224.5 1815 TexasWisconsin 47.649.9 4340 AlaskaTennessee 20.323.8 quency of interstate competition: Arizona, California, Colorado, Massachusetts, 1916 IowaHawaii 46.849.7 4441 NorthOklahoma Dakota 19.322.0 2017 NevadaDelaware 45.048.7 4542 LouisianaWyoming 16.821.2 and Texas. Topics covered include clean electricity, clean transportation, energy 2118 RhodeTexas Island 43.847.6 4643 NebraskaAlaska 16.420.3 2219 PennsylvaniaIowa 43.446.8 4744 ArkansasNorth Dakota 15.819.3 2320 MaineNevada 42.745.0 4845 AlabamaLouisiana 13.216.8 2421 ArizonaRhode Island 40.743.8 4946 MississippiNebraska 16.46.9 2522 MarylandPennsylvania 40.543.4 5047 WestArkansas Virginia 15.86.4 23 Maine 42.7 48 Alabama 13.2 © 2011 Clean Edge, Inc. (www.cleanedge.com). May be reproduced for noncommercial Source: 24Clean Edge,Arizona Inc., 2011 40.7 49 Mississippi 6.9 purposes only, provided credit is given to Clean Edge, Inc. and includes this copyright notice. 25 Maryland 40.5 50 West Virginia 6.4 2 Source: Clean Edge, Inc., 2011 intelligence (green building, smart grid, etc.), financial capital, workforce and 2011 STATE CLEAN ENERGY LEAdERShIP INdEx innovation, and policy structure. OREGON Oregon’s robust industry presence earned it a second-place ranking in the 2011 State Clean Energy Leadership Index. Trailing only California’s overall score of 95.3 (out of 100), Oregon’s score of 79.4 was enough to beat out the next three OVERALL PERFORMANCE top performers Massachusetts, New York, and Colorado. Of the states compared against Oregon in this report, California scored highest, followed by Massachu- SCORE: 79.4 setts at 71.8 (third place), Colorado with 60.2 (fifth), Texas at 47.6 (18th), and #2 TOP SCORE: 95.3 OVERALL MEDIAN: 40.4 finally Arizona at 40.7 (24th). With only six states earning scores higher than 60 and a median U.S. score of 40.4, results of the State Clean Energy Leadership Index indicate that while examples of clean-energy activity can be found in every corner of the nation, a clear top tier of states exhibits leadership across a CATEGORY PERFORMANCE wide variety of clean-energy sectors and activities. SCORE: 65.3 Oregon’s significant technology deployment, supportive government policies, #2 TOP SCORE: 99.4 and successful track record of capital attraction and job creation have given TEChNOLOGY MEDIAN: 24.4 the state a prominent standing in the U.S. clean-energy industry. But with increased domestic and foreign industry competition, and an overall economic SCORE: 84.5 climate that has left most states constrained for capital, business as usual will #5 TOP SCORE: 95.5 POLICY MEDIAN: 57.3 not guarantee Oregon a lasting competitive edge. This report aims to examine Oregon’s successes, compare its performance against other leading states, and uncover lessons which will enable Oregon to continue its leadership into the SCORE: 88.4 #2 TOP SCORE: 98.9 next era of clean energy. CAPITAL MEDIAN: 30.7 © 2011 Clean Edge, Inc. (www.cleanedge.com). May be reproduced for noncommercial purposes only, provided credit is given to Clean Edge, Inc. and includes this copyright notice. 3 Clean Electricity UTILITY-SCALE CLEAN ELECTRICITY GENERATION (2010) UTILITY-SCALE CLEAN ELECTRICITY GENERATION In the United States, Clean Electricity the electric power sector accounts for roughly two fifths of total energy con- (as % of total Wind Solar Geothermal Biomass hydro sumption, two fifths of total carbon dioxide emissions, and one third of all State generation) (MWh) (MWh) (MWh) (MWh) (MWh) greenhouse gas emissions. These facts make electricity generation the frontline Arizona 6.2% 119 17 0 161 6,626 in America’s battle to break free of fossil fuels, limit carbon emissions, and California 29.9% 6,614 823 12,958 6,343 33,876 Colorado 10.2% 3,430 33 0 58 1,746 develop a clean-energy future. Massachusetts 5.4% 17 0 0 1,265 1,034 Oregon’s abundance of low-carbon energy sources – wind, hydroelectric, bio- Oregon 63.8% 3,919 0 0 949 30,288 Texas 6.9% 26,132 2 0 1,071 1,032 mass, solar, and geothermal – gives the state a unique opportunity to establish an electricity supply practically free of fossil fuels. The state’s clean electricity Source: EIA with Clean Edge analysis see table below activity is already among the best in the nation, with wind, hydro, biomass, solar, and geothermal making up more than 63 percent of all utility-scale elec- 70% tricity generation in the state. At 55 percent of total generation, hydro is the largest source of Oregon’s low-carbon electricity, although we do not consider 60% large-scale hydroelectric dams to be environmentally neutral. Wind power also 50% plays a substantial role in Oregon, making up more than seven percent of electricity generation in 2010, up from 1.5 percent in 2005.. 40% Elsewhere in the nation, electricity remains largely tied to fossil fuels, with coal, 30% oil, and gas providing 70 percent of U.S. electricity in 2010. But with leading Clean Electricity Electricity Clean clean-energy states implementing increasingly aggressive renewable portfolio 20% (as % of total generation) total of % (as standard (RPS) targets – 25 percent by 2025 in Oregon, 30 percent by 2020 in Colorado, and 33 percent by 2020 in California – clean energy is transforming 10% US MEdIAN much of the U.S. electric grid. 0% AZ CA CO MA OR TX © 2011 Clean Edge, Inc. (www.cleanedge.com). May be reproduced for noncommercial purposes only, provided credit is given to Clean Edge, Inc. and includes this copyright notice. 4 INSTALLEd WINd ENERGY CAPACITY With 2,104 MW of wind energy INSTALLEd WINd CAPACITY (2010) installed by the end of 2010, Oregon ranked sixth in the U.S. in total wind Wind Capacity State (as % of total capacity) Wind Capacity (MW) capacity, trailing only Texas, Iowa, California, Minnesota, and Washington. Arizona 0.49% 128 Oregon also placed sixth for wind as a percent of total peak capacity (14.7 California 4.72% 3,177 percent) and sixth for wind’s share of total generation (7.1 percent), best of the Colorado 9.48% 1,299 six states compared in this report. Iowa, with 25.2 percent of its peak capacity Massachusetts 0.13% 18 from wind, leads the nation for wind as a share of total capacity, and also leads Oregon 14.74% 2,104 Texas 9.41% 10,085 for wind as a percent of total generation (15.4 percent).