s T R a T e G I e s T o a C h I e v e T h I s o b j e C T I v e
Encourage Innovations in the Green Economy
EDA supports the Department’s goal of fostering economic growth by stimulating the advancement of green and blue technologies and industries.
EDA provides strategic investments in projects that encourage growth of the “green economy” (i.e., the development and use of products and services that contribute to economic growth by respecting and revitalizing the environment). recent EDA-funded research reveals that businesses in renewable energy and alternative fuels, green building and energy efficiency technology, energy-efficient infrastructure and transportation, and recycling are growing faster than the rest of the economy. A Pew Charitable Trusts report also found that clean energy segments have resulted in far-reaching national economic benefits. Between FY 1998 and FY 2007, clean energy jobs grew by 9.1 percent, while total jobs grew by only 3.7 percent according to data collected by Pew. While the industry is still in its infancy, its growth rate over the past decade has outpaced other emerging technology sectors. These findings illustrate the promise that environmentally-sustainable development, and, more specifically, advances in green industries and technologies, can have for transforming regional economies and spurring innovation.
EDA promotes environmentally-sustainable development through a two-pronged approach. First, EDA’s Sustainable Economic Development program (formerly known as the Global Climate Change Mitigation Incentive Fund) helps to cultivate innovations that can power the green economy through investments in emerging industrial clusters related to energy, cutting-edge environmental technologies, sustainable manufacturing processes, and green building practices. Specifically, the program invests in efforts to develop and implement green products, processes, and buildings that create jobs through, and increase private capital investment in, efforts to limit the Nation’s dependence on fossil fuels, enhance energy efficiency, curb greenhouse gas emissions and protect natural systems. Second, EDA has implemented a funding priority that encourages investments capable of cultivating innovations in the green economy in all of its other grant programs. This investment priority enables EDA to leverage its wide array of programs and resources to support this important national priority and Departmental objective.
Support Sustainable Economic Development
recent years have witnessed growing recognition that economic growth can—and must—go hand in hand with environmental stewardship. EDA has taken important steps to link its investments with broad policy that understands the link between environmental quality and economic development.
EDA provides investments that assist communities in utilizing regional assets to promote economic development in a sustainable manner. In some communities these investments come as technical assistance to plan or test the feasibility of transitioning to green practices, in others EDA provides resources to help construct U.S. Green Building Council’s LEED certified (or equivalent) buildings, while in others EDA provides strategic resources to help make a business or manufacturing process more environmentally friendly and more competitive. One of the Department’s priority goals is to support the support sustainable manufacturing practices. Specifically, this goal is measured by the percent of EDA’s total infrastructure construction projects that are certified by the U.S. Green Building Council’s LEED, or an equivalent.
k e Y C h a l l e n G e s
EDA recognizes that efforts to promote sustainable economic development are intrinsically linked to broader federal efforts to support the green economy and associated markets. Firms who might consider leveraging their work to support the green economy are hesitant because regulations that could have a significant impact on their business have yet to be determined. Additionally, firms that could support the green economy and help promote sustainable economic development have to navigate a convoluted network of state policies. These state policies often compete against each other, and offer few incentives to manufacture the products and services associated with green technologies and innovations. In spite of these challenges, the green economy continues to be one of the fastest-growing aspects of the economy, and has become a critical component of job creation, business formation, and long-term regional prosperity.
e x T e R n a l f a C T o R s
EDA programs are not intended to work alone, but to increase the availability of outside capital (both public and private) for economic development efforts to result in firm creation/expansion, job creation, and long-term prosperity of regions across the country. EDA recognizes that encouraging innovations in the green economy and promoting sustainable economic development is difficult because of a wide range of externalities, including access to capital to help seed fledgling companies in the green economy and variations in federal and state policies which cause uncertainties in the market. Because EDA’s programs leverage other federal, state, local, and private efforts, they provide catalytic investments that help firms in the green economy start and expand.
p R o G R a m s C o n T R I b u T I n G T o T h I s o b j e C T I v e
EDA promotes environmentally-sustainable development through a two-pronged approach. First, EDA’s Sustainable Economic Development Program helps to cultivate innovations that can power the green economy through investments in emerging industrial clusters related to energy, cutting-edge environmental technologies, sustainable manufacturing processes, and green building practices. Specifically, the program invests in efforts to develop and implement green products, processes, and buildings that create jobs through, and increase private capital investment in, efforts to limit the Nation’s dependence on fossil fuels, enhance energy efficiency, curb greenhouse gas emissions, and protect natural systems. Second, EDA has implemented a funding priority that encourages investments capable of cultivating innovations in the green economy in its other key grant programs. This investment priority enables EDA to leverage its wide array of programs and resources to support this important national priority and Departmental objective. EDA’s programs are further discussed under Objective 7.
Promoting innovative energy technologies to reduce dependence on oil and mitigate the impact of climate change is a priority of the Administration. To address this issue, NIST is focusing on programs that will develop the measurements, standards, and common framework that are required to promote sustainable operations and improve energy efficiency in both the construction and manufacturing sectors. NIST initiatives will provide for the development of data, models, and support tools to improve energy efficiency in manufacturing and construction processes and to benchmark and stimulate the utilization of sustainable materials. NIST’s laboratory programs are further discussed in Objective 5. NIST MEP, which assists businesses in adopting sustainable practices, is discussed in Objective 8.
NIST will focus on developing new measurement instrumentation and methods for Advanced Solar Technologies, which will help bridge the current gap in measurement technology needed to enable third-generation photovoltaic (3rd-Gen PV) development. NIST is also expediting development of standards critical to achieving a reliable Smart Grid, as well as developing the measurements, standards, and a common framework that are required to promote sustainable and energy-efficient manufacturing and construction. The Smart Grid, along with work in Advanced Solar Technologies and sustainable manufacturing and construction, will be key to national efforts to further energy independence and curb greenhouse gas emissions. With industry, government, and consumer stakeholders, NIST is carrying out these responsibilities with a sense of urgency.
p R o G R a m e v a l u a T I o n s
All agencies within the Department conduct program evaluations and track progress of their programs. EDA reviews performance on its programs through annual self-evaluations, GPrA performance measurement reporting, program base reviews, and quarterly balanced scorecard performance measure evaluations.
Additionally, EDA utilizes critical performance measures to determine the overall effectiveness, usefulness, and success of its programs in meeting the needs of the Nation; including GPrA performance measures, balanced scorecard objectives and performance measures, dashboards, annual performance plans, strategic plans, customer satisfaction surveys, organizational assessment surveys, and other program- specific measures.
In FY 2010, EDA completed an evaluation of the Green Economy in collaboration with the University of California, Berkeley, which informed the development of new programmatic guidance for the Agency’s Sustainable Economic Development Program.
objeCTIve 6: pRomoTe and suppoRT The advanCemenT of GReen and blue TeChnoloGIes and IndusTRIes
buReau peRfoRmanCe measuRe
EDA raise the percentage of construction projects involving buildings or structures funded by Economic Development Assistance Programs that are certified by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) or a comparable third-party certification program to 12 percent1
Private sector dollars invested in distressed communities as a result of EDA investments Jobs created or retained in distressed communities as a result of EDA investments 1 This is a Department priority goal to be completed by the end of FY 2011.
o b j e C T I v e 7