A New Energy Economy for Texas?

By Claudia Grisales
AMERICAN-STATESMAN STAFF

Tuesday, November 18, 2008

States such as California, New Mexico and Colorado have sprung into action with strategies to capture the emerging clean-energy economy — with plans that range from marketing blitzes to statewide conferences to lure renewable power jobs.

Texas should be and can be at the forefront of that race, according to a report scheduled to be released today by the recently formed Catalyst Project.

"We should be winning hands down," said Colin Rowan, Catalyst Project founder and author of the report "Igniting Texas' New Energy Economy." But "it appears the other states are out-hustling us."

The group, which was formed this summer, is a coalition of business, advocacy and policy groups focused on jump-starting the state's role in the new energy economy.

Its report is aimed at the upcoming legislative session, during which a number of clean-energy proposals are expected to be introduced.

Among the Catalyst proposals: Use the state Emerging Technology Fund and Texas Enterprise Fund to attract clean-energy companies and jobs and create a package of incentives to strengthen Texas' hand in recruiting such companies.

Additionally, the report says, the state should create incentives for residential and
commercial customers who choose renewable energy options such as solar power.

Many states are pursuing clean energy as a promising source of jobs and new investment.

• A recent report by Navigant Consulting Inc. suggested that the solar industry in the United States could grow to more than 1.2 million jobs and $232 billion in private investment by 2016 under an extended federal tax incentive program.
• Three years ago, it passed California as the leading state in wind-power generation. But the state missed the opportunity to capture jobs related to manufacturing wind-power equipment, the report said.
• Solar power plants have been built in many states. Austin just got its first one: HelioVolt's new thin-film solar facility in Southeast Austin.
• Applied Materials Inc., which produces chipmaking equipment in Northeast Austin, has hinted that it might build a solar-equipment facility in Texas if the state adopted incentives to encourage solar power use.
  
  The Catalyst report collected interviews from more than a dozen business and community leaders, including many Austinites.
• The list included former Federal Energy Regulatory Commission head Pat Wood, who now
  works in the wind power business,
• Austin Ventures partner Krishna Srinivasan and HelioVolt chief executive
  B.J. Stanbery.

There's growing interest among various groups to boost the new energy economy across the state but little coordination, Rowan said.

Applied Materials spokesman Steve Taylor suggests that the "Austin model," which helped turn Central Texas into a tech and chip center, shows that a comprehensive plan can work again. "There's no reason Austin can't use the same model again to grow a renewable energy industry," Taylor said.

"There was a lot of close cooperation involving the city government, county government, school districts, the chamber of commerce and the University of Texas. This time, especially, the state government has to play a role. Central Texas could become the Silicon Valley of solar, and that could create jobs for generations."

The Rest@ The Austin American Statesman