WHITE PAPER ON ARTS AND CULTURE BRIEFING NOTE DATE: /09/2015.
American Sustainable Business Council White House Briefing
Transcript of American Sustainable Business Council White House Briefing
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AmericanSustainableBusinessCouncil
WhiteHouseBriefing
CreatingJobsand
BuildingaSustainableEconomy
June2,2011www.asbcouncil.org
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TableofContents
• Welcomeletter 3
• ListofASBCParticipantsRepresentedatMeeting 4
• AdministrationAgenciesandOfficesRepresentedatMeeting 6
• ASBCMembers,Supporters,AdvisoryBoardandStaff 7
• OverviewonSustainableEconomy 11
o NextStepsforCollaboration 14
• ListofJobsInitiatives 15
o EconomicDevelopmentInitiatives 18
o MakeitinAmericaInitiatives 58
o CleanTechnologyInitiatives 62
o SustainableBusinessInitiatives 84
o HealthcareInitiatives 100
Formoreinformationcontact:
AmericanSustainableBusinessCouncil1401NewYorkAvenue,NYsuite1225WashingtonDC20005www.asbcouncil.org202‐595‐[email protected]
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June2,2011Greetings:
TheAmericanSustainableBusinessCouncilanditsmemberorganizations,businesssupportersandalliesarepleasedtobemeetingwithPresident’s
CouncilonJobsandCompetitiveness,WhiteHouseBusinessCouncil,NationalEconomicCouncil,CouncilofEconomicAdvisers,andtheDomesticPolicyCouncil.
TheAmericanSustainableBusinessCouncil:isagrowingcoalitionof
businessnetworksandbusinessescommittedtoadvancinganewvision,frameworkandpoliciesthatsupportavibrant,equitableandsustainableeconomy.TheCouncilbringstogetherthebusinessperspective,experience
andpoliticalwillandstrengthtostimulateoureconomy,benefitourcommunities,andpreserveourenvironment.Today,theorganizationsthat
havejoinedinthispartnershiprepresentover100,000businessesandmorethan200,000entrepreneurs,owners,executives,investorsandbusinessprofessionals.
Inthispacket,youwillfindasamplingoftheinnovativeideasandstrategies
thatofferpathwaystobuildtheU.S.economy.Someoftheseideasrequiresmallstepstoprovidebenefitsintheshortterm.Othersarefartherreachingandrequiregreatereffort.
Mostofthesesuggestionsarebasedontheproventrackrecordofreal‐
worldbusinessorganizationsandbusinesses.
Thesearejustafewofthemanyothersideasthatourmembersarereadywillingandabletogenerateandworktocreateonthescalenecessary.
Thekeyisthatthereislargesetofbusinessesthatbelievethatwecancreateaneconomythatworks‐thatcreatesfinancialsuccessasit
contributestothewellbeingofcommunitiesandtheplanet.
WebelievethatthereisatremendousopportunitytoshapeaneweconomyandwearecommittedtoworkingsidebysidewiththeAdministrationandCongresstoachievethat.
Sincerely,
DavidLevine,CofounderandExecutiveDirector
American Sustainable Business Council Members
American Made Alliance
Association for Enterprise Opportunity
B Lab
Business Alliance for Local Living Economies
Business for Shared Prosperity
California Assoc. for Micro Enterprise Opportunity
Count Me In for Women’s Economic Independence
Fair Trade Federation
Fay-Penn Economic Development Council
Food Trade Sustainability Leadership Council
Foresight Sustainable Business Alliance
Future 500
Green America
Green Chamber of Commerce
Integrated Health Policy Consortium
Investors Circle
Manhattan Chamber of Commerce
Montana Sustainable Business Council
National Latino Farmers & Ranchers Trade Association
New Voice of Business
Practice Greenhealth
Progressive Business Leaders Network
Responsible Wealth
Social Enterprise Alliance
Social Venture Network
South Carolina Small Business Chamber of Commerce
Sustainable Business Alliance
US Green Parking Council
Vermont Businesses for Social Responsibility
Wealth for the Common Good
World Business Academy
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AmericanSustainableBusinessCouncilMeetingParticipantsJune2,2011
DavidLevine,Co‐FounderandExecutiveDirector,[email protected]‐595‐9302x101RichardEidlin,CampaignsDirector,[email protected] 303‐478‐0131MaryKenkel,GovernmentAffairs,[email protected],202‐236‐2387WendyRosen,Founder,Owner,TheAmericanMadeAlliance,[email protected] 410‐262‐2872AllanOliver,CEO,[email protected] 505‐553‐0759PaulHazen,President&CEO,[email protected] 202‐957‐9298JohnShegerian,Chairman&CEO,[email protected] 559‐974‐8588MartinFeeny,GovernmentRelations,AssociationforEnterpriseOpportunitymfeeny@madisonservicesgroup.com202‐626‐8528FrancesTeplitz,DirectorofSocialInvestingandStrategicOutreach,[email protected] 202‐872‐5326BarryWiggins,Director,[email protected] 610‐420‐9900
DrGarAlperovitz, Professor,UniversityofMaryland,[email protected] 202‐246‐3894MichaelKrajovic,President&CEO,Fay‐[email protected] 724‐880‐4430WilliamKlinger,PolicyDirector,[email protected] 443‐602‐0136
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SherryMacDonald,DirectorofMarketingandCommunications,[email protected] 703‐439‐0512HollySklar,ExecutiveDirector,BusinessforSharedProsperityhsklar@businessforsharedprosperity.org 857‐212‐7499LisaWoll,CEO,[email protected] 202‐872‐5358JanetKahn,ExecutiveDirector,[email protected] 802‐578‐2990MichaelPeck,Founder,[email protected] 202‐412‐2499ChandraBrown,President,UnitedStreetcar/[email protected] 503‐475‐4982FrankKnapp,President&CEO,[email protected] 803‐252‐5733ChristineBushway,ExecutiveDirector&CEO,[email protected] 202‐403‐8510AllyLaTourelle,Director,GovernmentAffairs,Bio‐AmberInc.ally.laTourelle@bio‐amber.com917‐428‐6008
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AdministrationAgenciesandOffices
RepresentedatJune2WhiteHouseMeeting
• DepartmentofLabor
• President’sCouncilonJobsandCompetitiveness
• WHOfficeofPublicEngagementandWhiteHouseleadforbusinessengagement
• WhiteHouseBusinessCouncil
• NationalEconomicCouncil
• CouncilofEconomicAdvisers
• DomesticPolicyCouncil
• DepartmentofTreasury
• OfficeofScience&TechnologyPolicy
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AmericanSustainableBusinessCouncil
Members,BusinessSupporters,AdvisorsandStaff
ASBCMembers(asofMay2011)
AssociationforEnterpriseOpportunityAmericanMadeAllianceBLabBusinessAllianceforLocalLivingEconomiesBusinessforSharedProsperityCaliforniaAssociationforMicroenterpriseOpportunityCountMeInforWomen'sEconomicIndependenceFairTradeFederationFay‐PennEconomicDevelopmentCouncilForesightSustainableBusinessAllianceFoodTradeSustainabilityLeadershipAssociationFuture500GreenAmericaGreenChamberofCommerceGreenParkingCouncilIntegratedHealthcarePolicyConsortiumInvestors’Circle
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ManhattanChamberofCommerceNationalLatinoFarmers&RanchersTradeAssociationNationalCooperativeBusinessAssociationNewMexicoGreenChamberofCommerceNewVoiceofBusinessPracticeGreenhealthProgressiveBusinessLeadersNetworkResponsibleWealthSocialEnterpriseAllianceSocialVentureNetworkSouthCarolinaSmallBusinessChamberofCommerceSustainableBusinessAllianceSustainableBusinessCouncilMontanaVermontBusinessesforSocialResponsibility(VBSR)VoiceforOregonInnovation&SustainabilityWealthfortheCommonGoodWorldBusinessAcademy
BusinessSupporters
AmericanIncomeLifeInsurance
Annie’sHomegrown
Aquatherm
Ben&Jerry’s
BetterWorldClub
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BioAmberGreenTechnologies
CSRwire
DophinBlue
ElectronicRecyclersInternational
EthicalMediaMarkets
GDSquared
GreenDepot
IceStone
LiteControl
MAPAGroup
NanochemSolutions
Naturepedic
NewBelgiumBrewery
NewResourceBank
SeventhGeneration
StonyfieldFarm
SustainableLifeMedia
TrilliumAssetManagement
YourOliveBranch
AdvisoryBoard
BillRitter,Jr.FormerGovernor,Colorado
SteveKagen,FormerCongressman,Wisconsin
JeffreyHollender,Co‐Founder,SeventhGeneration
JenniferOrgolini,SustainabilityDirector,NewBelgiumBrewery
VinceSiciliano,CEO,NewResourceBank
GusSpeth,ProfessorofLaw,VermontLawSchool
MichaelPeck,PrincipalandFounder,MAPAGroup
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Staff
DavidLevine,ExecutiveDirector
RichardEidlin,Campaigns&BusinessEngagement
DavidBrodwin,Communications
MaryDoyleKenkel,GovernmentAffairs
ScottFenn,ExecutiveAssociate
AqueneFreechild,Coordinator,BusinessforDemocracyCampaign
MarcThibault,WestCoastEngagement
RobynSchwartz,Website
JaneRobinson,ChiefFinancialOfficer,EHF
ShreyaBarot,Intern
SeanGriffin,Intern
BenjaminCruikshank,Intern
MargueriteConroy,Intern
SpecialthankstoBradleySheehanforlayoutanddesignofthisBriefingBook
Formoreinformationcontact:
AmericanSustainableBusinessCouncil1401NewYorkAvenue,NYsuite1225WashingtonDC20005www.asbcouncil.org202‐595‐[email protected]
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BuildingaSustainableEconomy
TheAmericaneconomyisundergoingacriticaltransitionwithagrowingnumberofcompanies,largeand small, discovering the value of sustainable business practices. From every sector, companiesalong with institutional and individual investors understand that being a good environmentalsteward,engaging inthecommunitieswheretheyoperateandrespectingtheiremployees leadstoprofitablegrowth.Thisnewapproachtobusiness iscalledthe“triplebottomline”–whereinequalvalue isplacedonpeople,profit,andplanet.Thetriplebottomlinerejectsthefalsechoicebetweenshort‐termprofitsand the needs of the future. It also refuses to pit environmental stewardship against economicprosperity.Instead,itpointsoutthatthroughinnovation,businesscanachievegrowthandprofitnowaswellasinthefutureasaresultoftheinvestmentchoicestheymake.
As the Harvard Business Review, noted in September 2009, ‘Sustainability is now the Driver ofInnovation’. Many corporations are enjoying robust growth and profit by adopting sustainabilitypractices throughout their supply chains. Companies are pioneering new markets and achievingsignificantcostsavingsastheybuildconsumertrustandreducetheircarbonfootprint.Investorsarerespondingfavorablybydirectingover$2trillionintobuildingthisnewgreeneconomy;expectedtogrowto$10trillionby2020.
Sustainability linkseconomic,ecological,andsocialsystems.Asustainableeconomyis innovative, itthrivesovertime,itmakesusefulproductsanditcreatesbothtopandbottomlinefinancialsuccesswhilecontributingtothewellbeingofourcommunitiesandtheplanet.Suchaneconomyisfocusedon directing capital towards job‐creating initiatives, investing in itself,while reducing income gapsandprotectingtheenvironment.Theideaofsustainabilityismuchbroaderthanenvironmentalism.Itmeasuresmorethanjustfinancialactivitybyincludingthebenefitsthatforwardthinkingbusinessesbringtosociety.
IntroductiontotheBriefingBookThisbriefingbookhighlightsonlyasmallnumberof the innovativeprogramsthat illustratewhatasustainableeconomy looks like.Fromavibrant localbankingsector tocleanenergyR&Dtohealthcare cooperatives to sustainable agriculture to incentives for domestic manufacturing tomicroenterprisestogreenchemistrytoawholesalerethinkingofhoweconomicdevelopmentshouldfunctions,thereisagroundswellofpositiveactivity.
ChallengestoBuildingaSustainableEconomyAtthesametime,offshoretaxhavens,growingincomeinequalityandapushinCongresstorollbackregulationsanddisinvestinoureducationalsystemandinfrastructurepresentseriouschallengestooureconomy’swellbeing.Themanufacturingsector,besetbyoutsourcing,isashellofwhatitoncewas. The financialization of the economy, while creating opportunity has also proven disruptive.
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Publicsectorworkersareunderattack.And,taxratesforcompaniesareatahistoriclow,withmanymultinationalcompaniesbenefiting fromextensive loopholes. Howsuccessful these forcesarewilldeterminewhat values guideoureconomy for years to come.These initiatives furtherelevate thepower of the largest corporate interests. The continued practice of externalizing costs, subsidizingmatureindustries,andrewardingoffshoringunderminesoureconomichealth.
TheRoleofBusinessThe voice of business is a key determinant in what direction the economymoves. Sustainability‐mindedbusinessesmust engage in the process.While voluntary corporate sustainability initiativesareessential,theyareinsufficienttobringaboutaneweconomythatvaluesequityasmuchasprofit;protects public and worker health, recognizes the value of natural resources for future use; andcreateshealthycommunitieswithvibranteconomics.Whatweneedarespecificlawsandregulationsthatguideoureconomytowardsound, long‐termdecision‐makingandarewardssystemthattakesintoaccountsocialandenvironmentalexternalities.Suchpoliciesneedtobeadoptedineverysector,sothatbusinessesareincentedtoadoptthetriplebottomline.Leadership, however, will not come from traditional business groups like the U.S. Chamber ofCommerce.Suchpowerfulorganizationsrepresentunsustainablebusinesspractices,illsuitedfortheglobal21stcenturyeconomy.Toleveltheplayingfield,anationalbusiness‐orientedpolicyadvocateforsustainabilityisrequired.Thereisaneedforanotherbusinessvoice.AvoicecapableofmatchingtheUSChamberissuebyissue,thatmakesthebusinesscaseforthevalueofbuildingasustainableeconomy.TheAmericanSustainableBusinessCouncil (ASBC)and itsmembersofferanewsetofpolicy ideasandsolutions,gearedtowardscreatingavibrant,equitableandsustainableeconomy.ASBCbringsanew business voice to Washington, D.C. and state capitols that make the case for policies andregulationsbuiltonprinciplesofsustainability.Asthebusinesscommunity’snationalpolicyadvocateforsustainability,ASBCinformsandengagesbusiness leaders,whileeducatingdecisionmakersandthemediaaboutinitiativesthatleadtosmartergrowth,moreinvestmentandincreasedopportunityfor business. ASBC organizes the coordinated power of its members on a range of advocacycampaigns.ASBCbelieves that a sustainableeconomygeneratesboth short and long termbenefits. It speaks‘business’while collaboratingwithNGO, laborandcitizengroups,allofwhomare committed toasustainable economy. Founded in 2009, ASBC representsmore than 100,000 businesses and over200,000individualentrepreneurs,owners,executives,investorsandbusinessprofessionalsacrosstheUnitedStates.
MakingtheBusinessCaseforaSustainableEconomyBusinessprosperswhenthelargereconomyresetsitsprioritiestoensurearobustmiddleclass,whenstable and transparent financialmarkets exist,whenaneducatedworkforce is available andwheninvestments are made in maintaining a reliable transportation, energy and communications
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infrastructure—allfundamentaltoasustainableeconomy.Withoutgoodsustainabilitypolicies,theeconomysufferseconomicdamage(suchasbankbailouts,high unemployment and massive environmental cleanups), which lead to greater federal deficits,depletedlocalandstatetreasuries,reducedservicesandhighercoststobusinessesandconsumers,suppressingdemandandprofits.Theremedialactionsrequiredto'cleanup'thesedisastersiswaste.Thisisnotagooduseoffundsanddetersinvestmentsfromthoseemergingbusinesspracticesthatwillcreatethejobsandlong‐termemploymentneededforthefuture.
StepstowardsaSustainableEconomy
BusinessGrowthandInvestment:ASBCpressesforgreateropportunitiesforsmallbusinesses,whichare crucial to the health and resilience of the overall economy. Wework to eliminate barriers toentrepreneurship.ASBClaunchedanaggressivecampaigntopasstheSmallBusinessJobsAct,whichset aside $30 billion for community banks to provide credit and loans. As Frank Knapp President,South Carolina Small Business Chamber of Commerce notes “Boosting local economies by helpingsmallbusinessescreatejobsshouldbeourgoal.WecaneithercuttaxesforWallStreettradersorwecaninvestthemoneytogeneratemorecustomersforsmallbusinessesbykeepingteachersworkingandrebuildthecrumblinginfrastructurebusinessesdependon.”ASBC presents viable models of economic investment and development, which satisfy the triplebottomline.TheEvergreenCooperativeDevelopmentFund,arevolvingloanfundinCleveland,Ohiois one such example. The Fund provides seed capital to future green businesses in underservedcommunities.Eachcompanyearmarksapercentageofprofits tobe reinvested.Smallandmid‐sizebusinesses across the U.S. need access to affordable capital. As Connie Evans, president of theAssociationforEnterpriseOpportunity,notes“… innovationtakesplace in low‐wealthcommunitiesaswell.Micro”businessesrepresentmorethan80%ofallbusinessesintheU.S.Ifjustoneinthreemicrobusinesseshiredasingleemployee,theUSwouldbeatfullemployment.In2009 theFay‐PennEconomicDevelopmentCouncil (Pennsylvania) initiatedaBuyLocalnetwork,involving 100 businesses and 22,000 customers. “The Buy Local network, including the agriculturesectorisnotabouthowmuchmoneyyourcommunityhas,itisaboutkeepingthemoneycirculatingwithoutitleavingFayetteCounty”,saidMikeKrajovicofFay‐Penn.TheproposedFarmEntrepreneurandJobsActwillalsohaveasignificantimpactincreatingjobsinlocalcommunities.
Tax Policy: Tax havens mean lost revenue that could be dedicated toward infrastructureimprovement,researchanddevelopment,education,publicservicesandbusiness innovation.ASBCsupportsendingoffshoretaxhavens,whichdisadvantagesmall,mid‐sizedandresponsiblebusiness.AsHollySklarofBusinessforSharedProsperitynotes,“Whencompaniesshifttheirtaxburdenbyoffshoring manufacturing or moving their headquarters to prevent paying taxes, they weaken thecountryasawhole”.Chemical Policy: The use of dangerous chemicals impacts business as it raises health care costs,lowers productivity and encourages litigation. Moreover, innovative businesses that offer saferalternativesarehamperedbythelackofappropriateinformationandincentives.ASBCbelievesthatencouraging companies to adopt greener chemistry and ban chemicals known to cause harmwill
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reducecoststobusinessesandgovernments,and increaseconsumerconfidence. ASBCworkswithCongresstoaddresstheseissuesintheSafeChemicalsActof2011,andeducatebusinessesabouttheopportunitiesandnewmarketsassociatedwithsaferchemicalsproducedintheU.S.Health Care Reform:Affordable, efficiently delivered health care for businesses and consumers isessentialforasustainableeconomy;the2010AffordableCareActisanimportantsteptoaddressthischallenge.We support improvements to the 2010 Act,whichwill enhance competition and lowerhealthcarecostswithoutbeingoverly‘prescriptive.’ASBCbelievesthehealthcaresystemneedstofocusmoreonpreventionandintegrativeapproachestoservicedelivery.
ConclusionTodate,therehasbeenafundamentalgapinpresentinganalternativevisionandexecutableplanforwhat a sustainable economy looks like. It is important to have a strategic framework and policyagenda,whichpresentsaclearbusinessperspectiveintegratedacrossawiderangeofissues.ASBCiscommitted to manifesting this. We know a healthy economy must be built on private sectorinnovationandpublicpoliciesthatrewardcompaniesforpushingsustainableapproachesdeepintotheirbusinesspractices.
ASBCCollaborationwiththeWhiteHouseandAgencies
Welookforwardtoworkingtogether.Hereareseveralexamplesofhow:
• Providebusinessleaderstoparticipateinroundtables/townmeetingsacrossU.S.
• Providebusinessvoicesformediaopportunitiesthatreinforcethebenefitsofneweconomy
• Work to advance mutual beneficial Administration initiatives, as well as to address thepositiveimpactoftheStimulus
• AdvocateinCongressonvariouspolicyissues
• Develop a Sustainable Economy/Business Awards (Similar to SBA awards) led by theWhiteHouse with support from DOL, DOC and EPA that directs national attention to businessmodels,companiesandorganizationsthatarehelpingtocreateasustainableeconomy.
• Organize a Business Summit for aNewEconomy; a national gathering of organizations andcompaniescommitted todevelopingasustainableeconomyandbuilding thesuccessof thetriplebottomline,sustainablebusinesspractices,andsustainableeconomicdevelopment.
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ListofJobsInitiatives
EconomicDevelopment/SmallBusiness/Banking‐Credit‐Investment/JobCreation/Agriculture
• TheDemocracyCollaborative–CommunityWealthBuildingActof2011
• CountMeIn‐MakeMineaMillion$Business™
• AssociationofEnterpriseOpportunity–ThePowerofOne
• Fay‐PennEconomicDevelopmentCouncil–TheFarmEntrepreneurandJobsAct• ASBC–SmallBusinessCapitalAccess
• EmeraldCitiesCollaborative–EmeraldCitiesProposal• BusinessforSharedProsperity–TaxReform• BALLE–SecuritiesLawReform
• NewEconomyWorkingGroup–FederalRecoveryandReconstructionBank• ASBC‐EncouragingStudentstoLearnaSkillProgram• ASBC‐BuildingMainStreetLocalLendingCapacityProgram• ASBC‐RebuildingAmericanInfrastructure• CAMEO–BuildYourOwnBusiness• Demos–CreditScreeningProposal
• Demos–DirectJobsProposal• NewEconomyWorkingGroup,DemocracyCollaborativeandInstituteforPolicyStudies–
CreatingStateBanks• NewMexicoGreenChamberofCommerce–PublicLands• OrganicTradeAssociation–OrganicAgricultureandProductsIndustry
• AllianceforAmericanManufacturing–CurrencyManipulationHarmsAmericanWorkersand
Companies
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MakeItInAmerica/Manufacturing• AmericanMadeAlliance–NextGenManufacturers• ApolloAlliance–TransportationManufacturingActionPlan• ApolloAlliance–GreenManufacturingActionPlan• ASBC–SupportingAmericanManufacturers’FacilityProgram• ApolloAllianceandASBC–StrengthenBuyAmericaProvisions
• BlueGreenAlliance–Chemicals,PublicHealthandGreenChemistry
CleanTechnology/Energy/GreenChemistry/ReducingWaste• GreenAmerica–CleanEnergyVictoryBonds• NewMexicoGreenChamber–PACEBondAuthorization• NewMexicoGreenChamber–GeothermalElectricityProductionfromAbandonedOilWells• NewMexicoGreenChamber–GoingGreenforFederalFacilities• AquathermIndustries–SolarHeatingofCommercialSwimmingPools• PurposeNetworks–ResponsibleEnergyandEnvironmentalLeadership GreenCertificationforSmallBusiness• Bio‐Amber–RenewableGreenChemicalProductionTaxCredit
• SustainableBioplastics
• ElectronicRecyclersInc–ElectronicWasteLegislation• InstituteforLocalSelf‐Reliance–ResourceConservationAgendaforAction• IceStone–UrbanPost‐ConsumerGlassUp‐cycling
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SustainableBusiness/BusinessStrategies/BusinessModels/Indicators/Measurements• ConceptGreen–CorporateSocialResponsibilityInitiative• NewYorkStateBusinessIncubatorAssociation–TheCompanyCreationandCompetitiveness
Initiative
• NationalCooperativeBusinessAssociation–2012“InternationalYearofCooperatives”• EthicalMarkets–GreenTransitionScoreboard• Demos–NationalAccountingImprovements• TheGreenEconomyInitiativeandtheRio+20SummitHealthcare• ASBC–HealthInsuranceCo‐opsforSmallBusiness
• PracticeGreenHealth&HealthCareWithoutHarm–EnvironmentallySustainableHealthcare
Industry• IntegratedHealthcarePolicyConsortium–WorkplaceHealthInitiative
• IntegratedHealthcarePolicyConsortium–ComprehensiveHealthPromotionInitiative• IntegratedHealthcarePolicyConsortium‐HealthImpactScores
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EconomicDevelopmentInitiatives
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NameofInitiative:CommunityWealthBuildingActof2011Summaryincludingprimeobjective(s):BuildingWealthinCommunitiesThroughCommunity‐BasedEnterpriseSenatorSherrodBrown’sCommunityWealthBuildingActwillsupportlocaleconomicdevelopmentthroughcreatingcommunity‐basedenterprisesthatmeetlocalbusinessneedswhileachievingsustainabilitygoals.Byfosteringthecreationofcommunityandemployee‐ownedbusiness,theActwillhelpingdisinvestedlow‐incomecommunitiesbuildwealthwhileprovidinggoodpayingjobs.Bydevelopingandanchoringnewbusinesseslocally,theActwillalsoenhancelocaleconomicstabilityandbolsterlocaltaxbases,generatingneededresourcestofinancepublicserviceswithoutraisingtaxrates.SupporteconomicrevitalizationandjobcreationintheUnitedStates.TheCommunityWealthBuildingActwillhelpcommunitiesdevelopcomprehensivejobcreationplansthatgeneratethegrowthofcommunity‐basedenterprisethatmeetstheprocurementneedsandthesustainabilitygoalsoflarge,locallyanchoredemployerssuchashospitalsanduniversities.Granteesmustdemonstrateacommitmenttointegratedplanningandsustainabledevelopment.TheActauthorizes$250millionincompetitivegrantmoneyoverfiveyearstosupportpiloteffortsintencommunities.Investindisadvantagedcommunities.TheCommunityWealthBuildingBankwillprovideavitalsourceofseedcapitaltoenablecommunitiestobuildnetworksofmutuallysupportingbusinessesthatcansupplyneededgoodsandserviceswhilemeetingsustainabilitygoals.The$500millionauthorizedforinvestmentthroughaCommunityWealthBuildingBankwillprovidetheequitybaseneededtojump‐startaprocessofcommunitybusinessdevelopmentthatcanleverageadditionalprivate,localgovernment,andphilanthropiccapital.BuildLocalCapacity.Thelegislationensuresthatthefederalgovernmentisasupportivepartnerforcommunities’planningandsustainabledevelopmenteffortsbyfosteringthedevelopmentofanetworkoflocalcommunitywealthbuildingcenterstocatalyzebroadpublic‐privatepartnershipsthatmobilizebusiness,labor,communitygroups,philanthropy,localgovernment,andanchorinstitutionstocreateintegratedinitiativesthatcreatejobsandbuildwealthinlocalcommunities.Createanationalcentertodevelopandreplicatebestpractices.TheOfficeofCommunityWealthBuildingestablishedbytheActwillbeacenterforresearch,cross‐citylearning,technicalassistance,training,andevaluationtocreatecomprehensiveapproachestopovertyreduction,jobcreation,andcommunitywealthbuildingthatcanbereplicatedthroughoutthecountry.CatalyzingFederalCollaboration:
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Inter‐AgencyWorkingGroup:ThelegislationcreatesaworkinggroupofrepresentativesfromCommerce,Agriculture,HousingandUrbanDevelopment,Energy,Labor,HealthandHumanServices,andtheWhiteHouseOfficeofUrbanAffairstoprovidecoordinatedfederalsupportofcommunity‐ownedbusinessandcommunitywealthcreation,includinglong‐termstewardshipprograms.OfficeofCommunityWealthBuilding:TheDepartmentofHousingandUrbanDevelopmentwillestablishtheOfficeofCommunityWealthBuildingtocoordinatefederalpoliciesthatfostercommunitybusinessownershipandbuildwealthinlow‐incomeneighborhoods;andprovideguidance,bestpracticesandtechnicalassistancetocommunitiesseekingtocreatelocaljobsandmeetsustainabilitygoals.Jobcreationandeconomyboostingopportunities:PiloteffortinCleveland(withoutfederalfunding)islikelytocreate500jobsin5years.Aneffortonthescaleofthelegislationproposedcouldbeexpectedtocreate5,000jobsin5years.Action(s)needed:Legislative,administrativeorotherwise:Legislative;however,itwouldbepossibletoachievemanyofthepurposesofthelegislationeitherthroughacarve‐outofCDBG(CommunityDevelopmentBlockGrant)funds(ascurrentlydonewiththeSustainableCommunitiesInitiative)orthroughre‐allocationofHUDSection3(publichousingjobdevelopment)funds.Relevantagencies(ifany):HUDLeadorganization(s):TheDemocracyCollaborativeattheUniversityofMarylandLink:http://www.community‐wealth.org/
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NameofInitiative:MakeMineaMillion$Business™Summaryincludingprimeobjective(s):Theprimeobjectiveistogrowwomen‐ownedmicrobusinessestomilliondollarenterprises.Jobcreationandeconomyboostingopportunities:Helpingwomenbusinessownerstosubstantiallyincreaserevenuesandbuildprofitablebusinessescreatesnewjobsandimpactsthenationaleconomy.Onemillionwomen‐ownedbusinessesat$1million+inannualrevenues,generates$1trillionineconomicactivityandcreatesover4millionjobsnationwide.Pleaserefertotheattachedchartsbelowforstatisticsonjobcreationandrevenuegenerationfromthetop180MakeMineaMillion$Business™programparticipants.**Revenue/EmployeeBefore–reflectstheirnumbersbeforeparticipatinginMakeMineaMillion$Business™Fundsareusedtorecruit,vet,educateandcoachwomenownedmicrobusinesseswhocangofrommicroto$millionplusbusinessin12‐18months.Action(s)needed:SmallBusinessDevelopmentCentersandwomenbusinesscenterstosupportandparticipateintheMakeMineaMillion$Business™InitiativeRelevantagencies(ifany):U.S.SmallBusinessAdministration;U.S.DepartmentofCommerce;U.S.DepartmentofLaborLeadorganization:CountMeInforWomen’sEconomicIndependenceLinks:www.makemineamillion.orghttp://www.cnn.com/video/#/video/bestoftv/2011/05/23/exp.ybl.kaputa.women.cnnhttp://www.denverpost.com/business/ci_17772172
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NameofInitiative:ThePowerofOneInThreeSummaryincludingprimeobjective(s):ThePowerofOneinThree:Iftheeconomyisgoingtobounceback,itmusthappenonMainStreet.“Micro”orverysmallbusinessesrepresentmorethan80%ofallbusinessesintheU.S.Lastyear,moreAmericansbecameentrepreneursthananytimeinthelast15years.Whethertheseindividualsareinconstruction,provideservices,orrunarestaurant,theyareeverywhere.Infact,ifjustoneinthreemicrobusinesseshiredasingleemployee,theUSwouldbeatfullemployment.1.Enablingbetterdecision‐makingandresourceallocation:AEOhasjoinedforceswithBankerswithoutBorders™,thevolunteerarmofTheGrameenFoundation,todeploytheirprobonoconsultingteamsintheUnitedStates.Theseskilledvolunteerswillbeabletoprovidenon‐profitexecutivesdecisionsupportinarangeofareasincludingmarketsizingandloanfundeconomics.Wearealsopartneringwithnationallawfirmstochannelprobonolegalsupporttoourmembers.2.Channelingfundstoinvestincapacityandgrowth:Basedonthefindingsofour“financialhealth”analysis,AEOandtheNonprofitFinanceFundareworkingonthedesignanddevelopmentofaninvestmentvehicletoprovidemuchneededfundstosupportcapacity‐buildingandchangewhereneeded.3.Scalingservicesandproductsthatworkanddevelopingnewones:AEOmembersrepresentbothfertiletestinggroundforinnovationandsourcesofinsightintomarketneeds.Ourreachandrelationshipsprovideuswiththeopportunitytochangetheeconomicsofscalebyreplicatingprovenprogramswithoutsacrificinglocalcontrolandcreating“toolkits”topromoteinnovationandexperimentation.4.Rationalizingthepolicyframework:Atpresent,effortstosupportunderservedbusinessownersandaspiringbusinessownersareatbestapatchworkofprogramsandpoliciesdesignedforadifferentera.Theworldhaschangedandwebelievethatpoliciesmustcatchup.AEOisjoiningforceswithotheradvocacyorganizationsundertheumbrellaofOneinThree.Ouraimistocreateapolicyframeworkthatalignsincentivesandpromoteswealthandjobcreationthroughself‐employment.Jobcreationandeconomyboostingopportunities:
• Thereare25.5millionmicrobusinesses–88%ofallbusinesses–intheUnitedStates.Thesebusinessesgenerate$2.4trillioninreceipts,accountfor17%ofU.S.GDP,andemploymorethan31millionpeople.
• “OneInThree”–Ifjustoneinthreemicrobusinessesweretohireoneadditionalemployee,theU.S.economywouldachievefullemployment.
• Investmentsinmicroenterprisedevelopmentmatter:80%ofsmallbusinessesthatreceivetrainingandtechnicalassistance(TA)frommicroenterprisedevelopmentorganizations
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(MDOs)arestillinbusinessafterfiveyears.Thiscomparestoanoverallfive‐yearbusinesssurvivalrateoflessthan50%.
Action(s)needed:1.FY2012Funding:AEOisalarmedbyproposedFY2012budgetcutstoTAprogramsattheSBA,includingthePRIMEprogram,whichhasbeenslatedforelimination.AEOiscognizantofthecurrentbudgetcrisis.However,programsdesignedtoencourageandpromotejobcreation–especiallythosewithproventrackrecords–requirecontinuedsupport.BelowareAEO’sfundingrequestsforFY2012.SBAPRIMEProgram:$8MSBAMicroloanProgramLending:$25MSBAMicroloanProgramTechnicalAssistance:$22MSBAWomen’sBusinessCenterProgram:$14MUSDARMAPProgram:$36MTreasuryCDFIFund:$227.2M2.SupportEntrepreneurshipviaEmploymentTrainingWorkforceInvestmentBoards(WIBs),createdbytheWorkforceInvestmentActof1998(WIA),assistjobseekersinstateunemploymentsystems.However,anunemployedpersonwhowantstostartabusinessisnoteligibleforWIBtrainingbecauseofassessmentandevaluationmetrics.Congressneedstochangethesetoincludetheself‐employed.TheDepartmentofLaborrecentlyendorsedthisproposal,butlegislationisneededtofixthisissue.3.ExpandAccesstoBroadbandInternetAEOsupportstheSmallBusinessBroadbandandEmergingTechnologyEnhancementActof2011(S.257),sponsoredbySenatorsLandrieuandKerry,whichwouldallowuseofSBA7(a)loansandmicroloanstopurchasebroadbandequipmentandservices.Increasingbroadbandaccesstosmallbusinessesandentrepreneurswillboostlocaleconomiesandcreatejobs.Relevantagencies:U.S.SmallBusinessAdministration,U.S.DepartmentofLabor,U.S.DepartmentofAgriculture,TheDepartmentoftheTreasury–CommunityDevelopmentFinancialInstitutionsFund(CDFIFund)Leadorganization:AssociationForEnterpriseOpportunity(AEO)Links:AEOwebsite:www.AEOworks.orgReport:ThePowerofOneInThree:http://www.aeoworks.org//pdf/one_in_three.pdf2011AEOPolicyPriorities:http://www.aeoworks.org/pdf/AEO_2011_Policy_Priorities.pdf
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NameofInitiative:BuildYourOwnBusinessJobsInitiativeSummaryincludingprimaryobjective(s):PrimaryObjective:tocapitalizeonAmerica’shistoricalenthusiasmentrepreneurialspirittogenerateandexpandverysmallbusinessesthatcreatejobsandgrowtheeconomy.Verysmallbusinessescreate64%ofnewjobs,mostwithoutemployees.Self‐employmentgrew28%overpast5years,atruelabormarkettrend.Locally‐ownedbusinesseshirelocallyandspendlocally.CAMEO’sBuildYourOwnBusiness(BYOB)JobsInitiativeisbasedon1)therecognitionthatself‐employmentisjobcreationand2)theintegrationofself‐employmentintojobcreationandworkforcedevelopmentpolicies.ThiscanbeaccomplishedbysupportingexistingMicroEnterpriseorganizationalinfrastructureandfosteringinnovationwithintheDepartmentofLabor’s(DOL)WorkforceInvestmentBoard(WIB)system.JobCreationandtheEconomy:TheU.S.ishometo700organizationsthatsupportentrepreneurswholackaccesstotraditionalformsofcreditandbusinesstraining.Thesemission‐drivenlenders,communitycreditunionsandnon‐profitbusinesscounselingorganizationsarecollectivelyknownasMicroEnterprisedevelopmentorganizations(MDOs.)In2009,CAMEOmembersserved21,000businesseswithtraining,technicalassistanceandloans.Thesefirms,whichwerelargelystart‐ups,brought42,000newjobsintoCalifornia’seconomyatotalof$1.5billionineconomicactivity.(Moreimpactstatisticsavailable.)1.Technicalassistancefunds:Forbusinesscoaching,loanpackaging,businessincubationservices,etc.areacriticalcomponenttomicrolending.Fundsfortheseactivitiesneedtobeintegratedwithcapitalinvestments,notconsideredasan“add‐on.”WithoutbusinessassistanceanMDOcannotmakegoodloansandcapitalcannotbedeployed.OneCAMEOmemberreturned$750,000inloancapitaltoabankthatwouldhavebeenlenttosmallbusinesses,buttherewasn’tapipelineofqualifiedbusinessesthatwerereadyforaloan.Fouroutoffivemicro‐businessownersthatreceivetrainingandtechnicalassistancesucceed.Withoutthissupportonlyoneinfivesucceed.(Source:annualsurveysofCAMEOmembersandFieldprojectattheAspenInstitute.)CAMEOmemberclientswhostarttheirownbusinessesonaveragecreatetwojobsinadditiontotheirown,overathree‐fiveyearperiod.CAMEObelievesthatprogramsdesignedtopromotejobcreation–especiallythosewithproventrackrecords,suchasthePRIMEandMicroLoanProgramsattheSmallBusinessAdministration(SBA)–requirecontinuedsupport.ThisdespitethefactthattheSBAisabandoningtheverysmallbusinesses,thoseunderservedbusinessesandpopulationstheyaresupposedtohelp.1
1ThecurrentSBAhasbeenraisingtheceilingofitsdefinitionofsmallbusiness.TheaverageSBAloanusedtobe$125,000.Today,theaverageSBAloanis$670,000.
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TheproposedFY2012SBABudgetwouldbearealobstacleinthepathforentrepreneurswhowanttocreatetheirownjobsbystartingtheirownbusinesses.TokeeptheAmericanDreamarealityforthemillionsofmicro‐businessowners,thesmallinvestmentintechnicalassistancemustbepreserved.Weadvocateforthefollowinglegislativeactions:FederalinvestmentsintheMicroEnterpriseindustryshouldbemaintainedatFY2010levelsasoutlinedinAttachmentA.Inbettereconomictimes,theinvestmentsshouldbeincreased.2.In2010,theDepartmentofLaborreleaseddirectivesencouragingWorkforceInvestmentBoards(WIBs)tointegrateentrepreneurialtrainingasavitalworkforcedevelopmentstrategybyallowingWorkforceInvestmentAct(WIA)fundingtobeusedtosupportself‐employmentandentrepreneurship.2Itisgenerallyacceptedthat5%oftheunemployedhaveentrepreneurialpotential,meaningthereareanestimated685,000peopleintheU.S.whocouldbenefitfromself‐employmenttrainingofferedthroughthe700MicroEnterpriseDevelopmentandSmallBusinessDevelopmentCorporations.Ifonlyhalfofthoseunemployedentrepreneursobtainedhelpinstartingabusiness(442,000),theywouldcreateatotalof822,0003jobsover3‐5years(theownerplustwoemployees).MDOsarepoisedtocontractwithlocalWIBstoprovidevitaltraining,technicalassistanceandaccesstosmallbusinessloanprograms,butWIBsareresistingbecauseofassessmentandperformancemetrics.Action:TheDOLshouldprovideincentivestoWIBS1)toallowWIAfundstobeappliedtoentrepreneurshiptrainingand2)tomakethenecessaryefforttoimplementnewmethodsofperformancemetrics(seeAttachmentB)and/orCongressshouldincorporatethesenewperformancemetricsintotheWIAre‐authorization.Leadorganization:CAMEO,1HallidiePlaza,Suite210,SanFrancisco,CA94102 ph415.992.4880fax415.445.9529www.microbiz.orgATTACHMENTA:FederalinvestmentsinMicroEnterpriseshouldbefundedatleastatFY2010levels.
2TEGL‐12‐10:SupportingEntrepreneurshipandSelf‐EmploymentTrainingthroughtheWorkforceInvestmentSystem;and:ThinkEntrepreneurs:ACalltoAction;IntegratingEntrepreneurshipintothePublicWorkforceSystemthroughoutAmericabytheDepartmentofLabor.
3 822,000 jobs = 442,000 business start-ups * 80% success rate * 3 jobs per business
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PROGRAM FY2010President’sFY2012
SBAPRIME $8million $0SBAMicroloanTechnicalAssistanceFund $22million $10million
(55%cut)SBAWomen’sBusinessCenters $14million $14millionSBAVeteransBusinessOutreachCenters $2.5million $2.5millionUSDARBEG $39million $30million
(23%cut)HUDCDBG $4billion $3.7billion
(7.5%cut)TreasuryCDFI $256million $233million
(9%cut)*note:theHouseSmallBusinessCommitteerecommendsfurthercuts,whichwouldcripplejobcreationeffortsoftheMicroEnterpriseindustry.ATTACHMENTB:WIAPerformanceMeasuresforSelf‐EmploymentServicesDevelopedbyCAMEOSmallbusinessescreate64percentofallnewU.S.jobs.Accordingtocurrentmarkettrends,self‐employmentcanbeavaluableoptionforjobseekersandtheunemployed1)whowishtowork,buthavethecapabilitytoowntheirownbusiness,or2)havebarrierstoemploymentwhichcanbeminimizedthroughself‐employment.Smallbusinesses,particularlyMicroEnterprises,shouldbeanintegralpartofnationaleconomicandworkforcestrategies.Commonperformancemeasuresaredifferentforself‐employmentthanforwageemployment,whichhasbeenabarriertosupporttheself‐employedandjobcreation.Performancemeasuresforself‐employmenttrainingandbusinesstechnicalassistanceprogramscanbebasedonSupplementalDataSources,AdministrativeRecordsandAverageEarnings,thislastitemasnegotiatedbythegranteewiththeindividualWIB.CAMEOsuggeststhatWIBsworkwiththeirlocalpartnerstowhichmeasuresaremostuseful.Followingarerecommendationsforeachcategoryofperformancemeasures:SupplementalDataSources(currentlyhastobedocumentedandrecordedoutsideWIBdatabases)
• ProofofanITINnumberwiththeIRScorporateIDnumber• ProofofDBAregistrationorlocalbusinesslicense• Businessplan• Proofofestablishedbusinesscheckingaccount• CopyofIRSScheduleCtaxreturn• Copyofcurrentpurchaseorders• Copyofbusinessofficeorstorelease• Proofofreceiptofbusinessloan
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AdministrativeRecords:Duetothefactthatself‐employedpersonsdonotshowuponthestateUnemploymentWagerecords,staffcanfollowupwithindividualenrolleestoverifythestatusoftheirbusinessdevelopment.ForthepurposesofWIA,‘start‐up’isdefinedas1‐24months,althoughthiscanbenegotiatedto1‐12months,basedonhoursoftrainingandtechnicalassistanceprovidedbythegrantee,andstatusoftheindividualtrainee,e.g.,sometraineesalreadywillhavebeenoperatingtheirbusinessatthetimeofenrollment.Thegrantee’sstaffwouldmakeaphonecallorin‐personvisitandascertaintheenrollee’sbusinessstatusfromdescriptiveinformationenrolleeprovideson:locationofbusiness,numberofcustomersandfinancingstrategyforbusinessgrowth.AverageEarnings:fromSupplementalDataSources:WIBstaffcancollectarevenueandexpensestatementfromtheclientand/oranaffidavitfromtheowneroftheir‘ownerdraw’for3‐12monthsafterstartup.Dividethisamountby30hoursandcomparetotheminimumwageforthatstate.
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NameofInitiative:EmeraldCitiesCollaborative(ECC)
The10citiesthatcompriseECCare:LosAngeles,SanFrancisco,Oakland,Portland(OR),Seattle,Milwaukee,Cleveland,Atlanta,NewYorkCity,andProvidence,RISummaryincludingprimeobjective(s):TheEmeraldCitiesCollaborativeisaconsortiumofdiverseorganizations‐businesses,unions,communityorganizations,developmentintermediaries,socialjusticeadvocates,researchandtechnicalassistanceproviders‐unitedaroundthegoalof"greening"ourmetropolitanareasinhigh‐roadwaysthatadvanceequalopportunity,sharedwealth,anddemocracywithinthem.Ourgoalistoachievesignificantreductionsinthecarbonfootprintandenergyconsumptionwithincreasedenergysavingsandefficiencies.Tothisend,weencouragecitiestosubstantiallyincreasetheenergyefficiencyofcitywidebuildingstockovertenyearswhileprioritizingpoorcommunities.Ourgoalistosubstantiallyincreasetheenergyefficiencyofcitywidebuildingstockovertenyearswhileprioritizingpoorcommunities.Buildingsarethelargestnationalsourceofenergyconsumption,costing$400billionannuallyinenergybillsandcomprising80percentoflocalcarbonemissionsinsomecities.Yet,efficiencygainsbetween30and50percentarepossibleusingexisting,cost‐effectivetechnology.Reducingenergyconsumptionrequiresacomprehensiveretrofitofbuildingstock.Themostsignificantresidentialgainsinefficiencywillbemadebyretrofittingthepoorlymaintained,oldest,andleastefficientbuildingstockconcentratedinpoorcommunities.Toachievesuchlarge‐scaleenergyreduction,partnerscan:
• Establishacomprehensive,participatoryplanningprocesssupportedbyprofessionalplanningandmanagement.
• Developavarietyoffinancingmechanismsthatleveragestheresourcesofutilitycompanies,privateinvestors,andfederal,stateandlocalgovernmentprograms.
• Retrofitgovernmentofficebuildings,schools,hospitals,affordablehousingprojects,wastestations,aswellasprivateresidentialhousingstock.
• Prioritizeretrofitsinlow‐incomeneighborhoods.Topromotecomprehensivegainsinenergyefficiency,citiescanendorseeffortsto:
• Coordinateenergyefficiencyretrofitswithotherbuildingimprovementsforhealthyhousingincludingleadabatement,installationofcurrentcommunicationstechnology,disabledfriendlyalternations,waterconservation,andindoorairquality.
• Defineretrofitstoincludelandscape,urbanvegetablecultivation,water,andcommunications(broadbandandfuturetechnologies)systemssothatbuildingscanproperlylinktothebroaderurbaninfrastructure.
• Pursueneighborhoodlevelprojectsratherthanfocusingonbuildingsinisolation.• Encouragebuildingtechnologyinnovationthatfurthersenergyefficiencyinbuildingmaterials,
constructiontechniques,andretrofits.• Developlong‐termenergyefficiencystrategiesthatlinkthecitytotheregionandpromote
regionalmanufacturingforthebuildingtechnologyrequiredforretrofits.
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Jobcreationandeconomyboostingopportunities:Supporthigh‐qualityjobcreationthroughtherequirementforlaborstandards.Constructionisahighturnoverindustrysusceptibletotheinfluxofpoorly‐trained,poorly‐paidworkersandemployerswhoresisttrainingworkers.Laborstandardscancompelemployerstosupporttrainingprogramsthatbothensureuniform,high‐qualityconstructionworkandestablishthedecentwagesandbenefitscriticaltostabilizingcommunities.Energyefficiencyeffortshavethegreatestlong‐termimpactwhentheylinktothegrowthofawell‐paid,well‐trainedgreenworkforceatscale.Topromotethisapproach,citiescan:
• Usecommunityworkforceagreements,eitherattheneighborhoodorcitylevel,andaidindevelopmentofsuchagreements.
• Adoptacoordinatedcurriculumforhigh‐skilledgreenconstructioninconjunctionwithincentivesfortheuseofcredentialedgreenlabor.
• Supportworkforcedevelopment,includingbothcredentialedvocationaltrainingandasupplyofremedialgeneraleducationandworkreadiness.Thisincludesexpandingtheunion‐basedapprenticeshipsystem.
• Coordinateeffortstoensuretheprovisionofanadequatelocalsupplyofqualifiedcontractorsandworkerstodothelarge‐scaleworkdemandedbythisplan.
• Expandaccesstohigh‐qualityjobsandcontractstominorities,women,andlow‐incomeresidents.
• Providefinancialincentivesandextensivetrainingtoenablecommunitygroupstosupportresidentorganizingaroundefficientandsustainablecommunities.
• Buildresidentcapacitytoaggregatethedemandneededtobuildcollectiveenterprisesandattractspecializedandhighqualitycontractors.
• Buildpartnershipswithlabortoincreasecommunityleveragearoundenergyefficiencyinurbanpoliticaldecision‐making.
Action(s)needed:
• Endorseandadvocateforregulationsandlegislationfurtheringthesegoals,includingjobstandards;ensuretransparencyandequalopportunityinlabormarkets.
LeadOrganization:CenterOnWisconsinStrategy(COWS)1180ObservatoryDriveMadison,WI53706‐1320(608)263‐3889
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NameofInitiative:SmallBusinessAccesstoCapitalSummaryincludingprimeobjective(s):InearlyMay,SmallBusinessAdministrationAdministratorKarenMillsspoketotheGreaterMiamiChamberofCommerce.Shehadgoodnewsformanybusinessesseekingcredit.“Lendingisbackto2008levels,”Millssaid.Butthenewswasn’tsogoodforthesmallbusinessesingeographicallychallengedareasandoursmallestofsmallbusinesses.AccordingtoMills,“wearenotbackinunderservedcommunitiesandwearenotbackwhenitcomestosmallloans.”Thetruthisthatlendinghasn’tbeengoodinunderservedcommunitiesandforourverysmallbusinessesforaverylong,longtime.Thedemandforsmallbusinessloansispickingup.Forthosewithbetweenoneand10milliondollarsofrevenue,GreenwichAssociateshasfoundthatsmallbusinessesincreasedtheirseekingofloansinthefirstquarterofthisyearby100percentoverthepreviousquarter.AccordingtoGreenwich,onaverageabout60%ofthesmallbusinessestheysurveyedreceivedthecredittheysoughtbetweenMarch2010andMarch2011.Andthemajorityoftheseloanscamefromsmaller,communitybanks.Unfortunatelynooneismeasuringdemandforloansandloansmadetoourmicroenterprises(businesseswithfewerthan5employeesandcapitalizedwithlessthan$35,000).Latelastyear,withthesupportoftheAmericanSustainableBusinessCouncil,CongresspassedtheSmallBusinessJobsActwhichincludeda$30billionlendingfundtoencouragecommunitybankstomakesmallbusinessloans.Unfortunatelycomparativelyfeweligiblecommunitybankshaveindicatedthattheywanttoparticipateinthisprogram.Thereasongivenbysomebanksisthatthereislittleloandemandfromsmallbusinesses.That’ssimplynottrue.Thedemandisthere.Morelikelytheanswerliesinfederalregulatorpressureoncommunitybankstoavoid“risky”loans,thesamesmallbusinessloansthatweremoreacceptablepriortothegreatrecession.TherearesomepossiblesolutionstothislendingdilemmaforsmallbusinessifcommunitybanksrefusetheallureoftheSmallBusinessLendingFundandbigfinancialinstitutionsstillareonlyinterestedinthecreamofsmallbusinessloans.Action(s)needed:
• Putcreditunionsmoreinthelendinggamebyraisingthecapontheirlendingability.• DramaticallyincreasefundingforsmallbusinessloansundertheUSDA,CDFIandSBA
(microloans)programs.Inadditiontolendingresources,thenon‐profitsusingthesefundsalsoneedabigboostinfundingfortechnicalassistancetohelpguaranteethesuccessoftheloans.
• AllowtheSBAtobypassthefinancialinstitutionsandstartmakingloansdirectlytosmallbusinesses.ThefederalgovernmentnowmakesdirectloanstostudentsthroughStaffordand
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otherstudentloans.TheSBAalreadycanmakedirectbusinessloansonitsowninsomecases.
• Createanewcapital‐raisingstrategyforsmallbusinesssuchas“crowdfunding”.TheSecurityExchangeCommissionisreviewingaproposaltoallowsmallbusinessesandmicroenterprisestosolicitinvestmentsof$100orlesswhileavoidingmuchoftoday’sregulations.
Ifthetraditionalfinancialinstitutionswillnotprovidethecapitalaccesssmallbusinessandmicrobusinessesneedandcreditunionscannotmakeupthedifferencebetweendemandandaccess,thenweshouldempowernon‐profitorganizationstotakeonmoreofthelendingresponsibility,makedirectgovernmentloansaswedidinourautomotivesectoranddramaticallyreducetheregulatoryburdenonsmallinvestmentstrategies.Itistimetomakesignificantchangestoourcountry’ssmallbusinesslendingandfinancingsystem.ConventionalpracticesarenotgeneratingthesmallbusinessaccesstocapitaloureconomydesperatelyneedstogrowRelevantagencies(ifany):SBALeadorganization:AmericanSustainableBusinessCouncil
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NameofInitiative:EncouragingStudentstoLearnaSkillProgram(toaddresscurrentshortageofworkersinthemarketnationallyandinternationally)Summaryincludingprimeobjective(s):EncouragingStudentstoLearnaSkillProgramwill:
• increasethenumberofstudentsgoingintotechnicalcareers;• decreaseunemploymentbyfillingcurrentvacantpositions;• improvethemanufacturingsector;• improveinternationalcompetitivenessandnationaleconomicsecurity;
Jobcreationandeconomyboostingopportunities:TheEncouragingStudentstoLearnaSkillProgramwillcreatemorethan1,000,000+jobsintheprivatemanufacturingsectorandincommunitiesthroughoutthecountrybyfillinghundredsofthousandsofexistingvacanciesandthemillionsmoretocomeasagenerationofbabyboomerskilledworkersretire. Action(s)needed:Anewbillneedstobeintroducedwithappropriationstoincentivizepublicschoolstoencouragestudentstopursuelearntechnicalskillsandtechnicalcareers.EitherthroughCommunityBlockGrants,WorkforceInvestmentBoardsordirectlythroughtheUSDepartmentofEducationworkingwitheachstate’sdepartmentofeducation,localpublicschoolswouldreceivea$8,000peryeareducationgrantforeachnewstudentwhoentersandpassesnationallyaccreditedtechnicaltrainingprograms,foreachyeartheyareenrolledintheprogram.Relatedlegislative,administrativeissues:TBDRelevantagencies:U.S.DepartmentofEducationandU.S.DepartmentofLaborandIndustryLeadorganization:AmericanSustainableBusinessCouncil(www.asbcouncil.org)Linktoadditionalinformation:Fay‐PennEconomicDevelopmentCouncil,http://www.faypenn.org/
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NameofInitiative:TaxReformSummaryincludingprimeobjective(s):Corporateandindividualincometaxessupportthepublicservicesandinfrastructureuponwhichoureconomydepends.Theseincludeapublicly‐educatedworkforce,transportationsystems,safedrinkingwaterandsanitation,thejudicialsystem,taxpayer‐fundedresearch(whichhasplayedacrucialroleinhealthadvancesandthecreationoftheInternet,forexample),federalemergencyresponseandsoon.Butvitalpublicservicesandinfrastructurearenowbeingcutdramaticallybecauseofinadequaterevenues.ExistingtaxpolicieshaveencouragedtheoffshoringofU.S.profits,jobsandinvestmentandshiftedthetaxburdenoffwealthytaxpayersandU.S.multinationalsandontowageearnersanddomesticbusinesses,especiallythesmallbusinessesthatcreatemostofthenewjobs.PositiveCorporateTaxReform:Thecorporatetaxsystemisbadlybroken.Wehaveatwo‐tiertaxsysteminwhichsomeprofitablebusinessespaytheirfullshareoftaxes,whileotherspaynothingatall.Toomanycompanieshaveturnedtheircorporatetaxdepartmentsintoprofitcenters,usingaggressiveaccountingmanipulationtodisguiseU.S.profitsasforeignprofitstoavoidtaxes.Forexample,asBloombergBusinessWeekreported,ForestLaboratories“sellsnearly100percentofitsdrugsintheU.S.–andcutsitsU.S.taxesdramaticallybyattributingthebulkofitsprofitstoalawofficeinBermuda.…Googlereduceditsincometaxesby$3.1billionoverthreeyearsbyshiftingincometoIreland,thentheNetherlands,andultimatelytoBermuda.”BusinessesshouldnotberewardedforshiftingjobsandinvestmentoverseasordisguisingU.S.profitsasforeignprofitstoreducetheirtaxes.StopTaxHavenAbuseAct:AbuseofinternationaltaxhavensbycorporationscosttheUSTreasuryanestimated$100billionayear.Closingtheseloopholeswouldleveltheplayingfieldbetweenlargebusinessesandsmall,whilepreservingrevenueforinvestmentsininfrastructure,education,basicresearchandcommunitydevelopmentthatsupportourbusinesses.OurBusinessandInvestorsAgainstTaxHavenAbusecampaignactivelysupportstheStopTaxHavenAbuseAct,whichwillbere‐introducedinCongressinthenearfuture.NoTaxHolidays:Congressispresentlyconsideringshortandlong‐termtaxholidaysforcorporateoffshorefunds.Therepatriationtaxholidaywouldcost$80billionaccordingtotheJointCommitteeonTaxation,abenefittoscoresofbigbusinessesthatwillbepaidforbyadditionalcutstothegovernmentservicesuponwhichsmallbusinessesdepend.In2004,acorporate“repatriationtaxholiday”waspassedwiththepromiseofstimulatingdomesticinvestmentandcreatingjobsintheUnitedStates.Instead,studiesshowedthatthebeneficiariesofthetaxholidayusedtheirrepatriatedearningstogiveahugewindfalltocorporateownersandshareholdersintheformofstockbuybacksanddividends.Forexample,theNationalBureauofEconomicResearchfoundthatadollarincreaseinrepatriatedearnings“wasassociatedwithanincreaseofalmost$1inpayoutstoshareholders.”Inthewakeofthetaxholiday,U.S.multinationalseliminatedmoreAmericanjobsandshiftedevenmoreincomeandinvestmenttooffshoretaxhavens.Wealsoopposeanyshifttoaterritorialtaxsystem,whichwouldaccelerateaggressivetransferpricingandshiftsofdomesticprofitsoverseas,permanentlyrewardingthosewhoseektoavoidtheirtaxpayingresponsibilities.
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RevenuePositiveCorporateTaxReform:U.S.corporateincometaxescomprisejust1.3%ofGDP,amongthelowestlevelsamongOECDcountries.TheaverageeffectivetaxratepaidbyU.S.corporationsishalfthestatutoryrateandislowbyinternationalstandards.Thecorporatetaxshareoffederalgovernmentreceiptshasdroppedfrom32%in1952to9%now.Ournationcannotaffordcorporatetaxreformthatisrevenueneutral.Thiswouldleavecorporatetaxesasashareofoureconomyatcurrentlowlevels.Itwoulddeprivegovernmentoftheresourcesnecessarytoprovidetheservicesandinfrastructurethatunderpinentrepreneurship,jobcreationandourglobalcompetitiveness.TheTaxReformActof1986loweredthestatutorycorporatetaxratebutclosedsomanyloopholesitincreasedcorporatetaxrevenues.Taxreformshouldberevenuepositivetoday.Action(s)needed:NoMoreExtensionsofTop‐TierBush‐EraTaxCuts:Smallbusinessshouldnotbeusedasafoiltojustifyextendinganddeepeningtaxcutsforthewealthy.Lessthan3percentoftaxfilerswithanybusinessincomemakeover$200,000(individuals)or$250,000(couples)ayearandmanyofthosearenotsmallbusinessowners,muchlesssmallbusinessowneroperatorswithemployees.TheyincludeKStreetlobbyists,WallStreetinvestmentpartners,bigbusinessCEOspaidtositontheboardsofotherbigcompaniesandwealthypeoplerentingouttheirvacationhomeswhentheyaren’tusingthem.ExtensionoftheBushtaxcutsfortheseupperincometaxpayerswillcosttheU.S.Treasury$40billionthisyear.InordertopayforthesetaxcutsfundingfortheSmallBusinessAdministrationandtheDepartmentofLabor,andCommunityDevelopmentBlockGrantshasbeensharplycut.SmallbusinessesintheUnitedStateswouldbefarbetterservedrestoringfundingtotheseprogramsanddevotingadditionalfundingforinfrastructureimprovementsandinvestmentsinbasicresearchandinnovationthatwouldcreatenewinvestmentopportunitiesforentrepreneurs.Experienceshowsthatlowertaxratesforhighincomesdon’tgeneratebetterjobcreation.AsTheWallStreetJournalreported,PresidentBush“showstheworsttrackrecordforjobcreationsincethegovernmentbegankeepingrecords”in1939.TheBushadministrationcreatedjust1.1millionnetjobs,whiletheClintonadministrationcreated22.7million.InthesixyearsafterClinton’s1993taxincrease,employmentgrew16.2percentcomparedtojust4.8percentinthesixyearsbetweenBush’s2001taxcutandtheGreatRecession.The2001‐2007economicexpansionwastheweakestsinceWorldWarIIwhenitcametogrowthinGDP,consumption,non‐residentialinvestment,wagesandsalary,andnetworth,aswellasemploymentgrowth.Leadorganization:BusinessforSharedProsperitywww.businessforsharedprosperity.orgLinks:Reports:PolicyBrief:TheBusinessCaseAgainstAggressiveOffshoreTaxAvoidance(April2011)http://businessagainsttaxhavens.org/policy‐brief‐the‐business‐case‐against‐aggressive‐offshore‐tax‐avoidance/UnfairAdvantage:TheBusinessCaseAgainstOverseasTaxHavens(July2010)http://businessagainsttaxhavens.org/wp‐content/uploads/2010/07/TaxHaven.pdfPolicyBrief:TheBusinessCaseforLettingHigh‐EndTaxCutsExpire(November2010)http://businessforsharedprosperity.org/files/Business%20Case%20for%20Letting%20HIgh‐End%20Tax%20Cuts%20Expire.pdf
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NameofInitiative:FederalRecoveryandReconstructionBankSummaryincludingprimeobjective(s):CreateaFederalRecoveryandReconstructionBank(FRRB)responsibleforfundinggreeninfrastructureprojectsapprovedbyCongress.InstructtheFederalReservetodirectallnewmoneycreatedtoexpandthemoneysupplytoapplythesefundstothepurchaseofinterest‐free‐inperpetuityperformancebondsissuedbytheFRRB.TheFRRBwouldberequiredtorepaytheFederalReserveonlyifitfailedtodeliveronthepromisedprojects.TheagreementsandtransactionswouldbewhollytransparentandsubjecttoCongressionalandpublicoversighttoassureaccountability.TheapprovedprojectlistsandrelatedappropriationswouldbeupdatedbyCongressasneeded.ThiswouldputunemployedAmericanstoworkreplacingAmerica’scrumblingandoutdated20thcenturyphysicalinfrastructurewithagreen,energyefficient21stcenturyinfrastructure,contributetoenergysecurity,stabilizetheclimate,andsecureaprosperousfutureforAmerica’schildren.Jobcreationandeconomyboostingopportunities:WecannotanticipatehowmuchnewmoneytheFederalReservewillcreateinanyyear;however,theamountsofmoneypotentialinvolvedaresignificant.Thefollowingstatisticsillustratethepossibilities.VariousexpertsplacethecostofrebuildingAmerica’scrumblinginfrastructureataround$3trillion.TheauditoftheFederalReserve’sresponsetotheWallStreetcrashdocumentedFederalReservecommitmentsof$12.3trillionintheformoflowornointerestloans,purchases,andguarantees.Wemayassumethatatleast$3trillionofthatamountrepresentednewmoneycreatedbytheFederalReserveandtransferredtoWallStreetbanksthatusedittofundbonuses,dividends,acquisitions,speculation,andinflationoffinancialbubbles,noneofwhichcreatesjobsintherealeconomy.Assumingatotalcostof$150,000peryearperjob,this$3trillioncouldhavefunded20millionjobyears.Moneyspentoninfrastructureprojectswouldflowdirectlytoconstructionworkers,contractorsandsuppliersaswagesandprofits,whichtherecipientswouldusetomakemortgagepayments,putfoodonthetable,payofftheircreditcarddebts,meetpayroll,paytaxes,andinvest.Newtaxrevenueswouldflowintogovernmentstofundpublicprogramsandnewdepositswouldflowintothebankingsystematthebottomratherthanthetop.Totheextentthatmoneyflowsintocommunitybanksandcreditunionsitwouldrecycleinthecommunitytosupportstillmorejobs.Action(s)needed:RequireslegislationtocreatetheFRRB,defineaninitiallistofprojects,anddirecttheFederalReservetodirectfutureinfusionsofnewmoneyintotheeconomythroughtheFRRB.Relevantagencies:WhiteHouse,Congress,andtheDepartmentsofTreasury,Transportation,HousingandUrbanDevelopment,Energy,andLabor.Leadorganization:NewEconomyWorkingGroup
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NameofInitiative:CreateStateBanksLiketheBankofNorthDakotaSummaryincludingprimeobjective(s):Duringhis2011StateoftheUnionaddress,PresidentObamaemphasizedthattheonlywayoureconomycanreboundisbyout‐innovating,out‐buildingandout‐competingotherworldpowers.4Yetwithbanklendingdecliningatrecordrates,manysmallbusinesses,theemploymentbackboneofoureconomy,havenotbeenabletoperformatfullcapacity.Onewaytogeneratemorejobsistocreatemorestate‐ownedbanks.
Currently,NorthDakotaistheonlystateinourcountrytohaveastate‐ownedbank.TheBankofNorthDakotawascreatedin1919whenmembersoftheNonPartisanLeague(NPL)becamethemajorityinthestatelegislature.TheNPLcalledforreformstoreturncontrolofNorthDakota’sgovernmentandeconomytothepeople.5TheBankofNorthDakotawascreatedtoservethatpurpose.Atatimewhen46statesarestrugglingwithbudgetshortfalls6,andourcountry’sunemploymentratestillhoveringaroundninepercent7,NorthDakotaisoneoffourstatesthathavesizablestatebudgetsurpluses.8Italsoboaststhelowestunemploymentrate(3.8percentinNovember20109)inthecountry.AlthoughtherearemanyfactorsastowhyNorthDakotaisfaringsowellinourcurrenteconomy,thereisnodoubtthattheBankofNorthDakotaplayedaconstructiveroleinhelpingthestatethroughtheseturbulenttimes.Theprimaryroleofastate‐ownedbankistogivethestatecompletecontrolofthefundsandrevenuesthatthestatecollectsandmaintains.Astatebankfunctionsonasimpleconcept‐‐itisapubliclygovernedbankcapitalizedbystatemoneythatservesastherepositoryforstatedeposits.Thebankalsoreturnsanegotiatedportionofbankprofitstothestate.InsteadofbeinginsuredbytheFDIC,thestatebank’sdepositsareguaranteedbytheState(theBNDisgovernedbythestateIndustrialCommission,madeupoftheGovernor,AttorneyGeneralandCommissionerofAgriculture).
4http://www.nytimes.com/2011/01/26/us/politics/26speech.html?hp=&pagewanted=print
5http://www.newrules.org/banking/rules/bank‐north‐dakota
6http://www.cbpp.org/cms/?fa=view&id=711
7http://www.bls.gov/
8http://www.cbpp.org/cms/?fa=view&id=711
9http://www.bls.gov/lau/home.htm
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AccordingtoEricHardmeyer,thecurrentpresidentofBND,theyareusingthebanktospureconomicgrowthinthestatebypartneringwiththeprivatesector.10OneprimaryactivityoftheBNDisparticipationlending,participatinginloansoriginatedbylocalbanksandcreditunions,eitherbyincreasingthetotalsizeoftheloan,buyingdowntheinterestrate,orprovidingloanguarantees.Inaddition,thebankparticipatesinthesecondarymarketforresidentialloans,whilealsobeingadirectlenderforstudentloansforNorthDakotans.TheBNDalsoprovideslow‐interestloanstoagriculturalstart‐upsandnewsmallbusinesses.11AstatebankalsoreturnsaportionofitsprofitstothestateGeneralFundorRainyDayFund.FortheBND,theamounthasvariedfromyeartoyear,butoverthepast10yearstheamounthasaveraged$29.4million(about72%ofbankprofits)andtotaledalmost$300million.12WithouttherevenuesfromtheBND,itwouldbehardforthestatetomaintainabudgetsurplus,especiallyduringturbulenttimeslikethese.Furthermore,theextraleveragingabilitythatthestatebankprovidesthroughparticipationloans,theincreaseinmunicipaldepositsfromlettersofcredit,andtheothersupportsthatastatebankcanprovideasabanker’sbankareallcriticalinhelpingtostrengthensmalland/oryoungbanks.AstudybytheCenterforStateInnovationshowsNorthDakotaoutperformsotherstatesandtheU.S.inloanactivitypercapita,asitsaverageloanspercapitaover5‐yearsare14percentgreaterthanitsclosestcompetitor(SouthDakota)and175percentgreaterthantheU.S.average.13Privatemegabanks,likeBankofAmericaandCitibank,usuallyonlyprovideloanstobusinessesiftheyknowthattheywillreceiveaprofitfromtheirinvestmentsinthelongrun.Atatimewhentheeconomyisstillnotingoodhealth,manyofthesebanksarehesitanttolendtosmallbusinesses.Sinceastatebank’smissionistoprovideinvestmentsthatwillleadtoahealthierandstableeconomyinthestate,statebankswillbemoreinclinedtoinvestinsmallbusinessesthatwillcreatejobsinthestatewhentheunemploymentrateishigh.JobcreationandeconomyboostingopportunitiesTheCenterforStateInnovationestimatesthatastatebankcouldhelpcreateorretain6,900‐8,800additionalsmallbusinessjobsinOregon,andthatabout5,400jobswouldhavebeensupportedduetoincreasedloanactivitythroughbankparticipationloansfromastatebankatfulllendingcapacity.14Itisalsoestimatedthatforevery1percentagepointincreaseinloan‐to‐assetratiointhelending
10MotherJoneshttp://motherjones.com/mojo/2009/03/how‐nation%E2%80%99s‐only‐state‐owned‐bank‐became‐envy‐
wall‐street
11CenterforStateInnovation
12ibid
13ibid
14ibid
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marketforsmallandmedium‐sizedbanksinOregon,about1,000smallbusinessjobsinOregonarecreatedorretained.15InCalifornia,anotherstatethathasbeenstrugglingtobalanceitsbudget,astatebankcouldcreate$170billionormoreincredittocovertheirbudgetshortfalliftheyweretodepositthe$17billiontheyhaveinmegabankslikeWellsFargoandU.S.Bank,intoaCalifornia‐ownedbank.16Furthermore,astatebank’ssuccessdoesnothingeonprofitmarginssotheyhavetheabilitytofundpublicgoodsprojectsandtoinvestinpublicinfrastructure(education,healthcare,welfare,transportation),inwhichthereturnsmightbelessthanlendingtoaprivatesectorentity.However,thisinvestmentiscrucialtoastateweatheringanunemploymentcrisis,simplybecausepublicsectorjobsarecreated.Leadorganization:NewEconomyWorkingGroup,theInstituteforPolicyStudies,andtheDemocracyCollaborative
15CenterforStateInnovation
16http://www.huffingtonpost.com/ellen‐brown/how‐california‐could‐turn_b_242901.html
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NameofInitiative:BuildingMainStreetLocalLendingCapacityProgram(toaddressthegrowingneedforcapitalbyAmericansmallbusinesses)Summaryincludingprimeobjective(s):BuildingMainStreetLocalLendingwill:
• addresscapitalshortagesbysmallbusinessesincommunitiesacrossAmerica;• improveeconomicsustainabilityandresiliencyinlocalcommunities;• providefinancialsupportforsmallbusinesses(under200employees)inmultipleindustry
sectors–manufacturing,technology,retail,industrialandagriculture;• increaselocalandnationalemploymentbyfundingbusinessdevelopmentprojects;• improveinternationalcompetitiveness,localeconomiccapacityandnationaleconomic
security;Jobcreationandeconomyboostingopportunities:TheBuildingMainStreetLocalLendingCapacityProgramwillhelpcreatehundredsofthousandsofnewjobsintheprivatesectorandinlocalcommunitiesthroughoutthecountrybybuildingnewlocallendingcapacity.TheprogramwillsupportandcomplimentcurrentSBAprograms,butalsofillgapsthatbankswillnotservice,communitiesthatareunderserved,andprojectsthatarelargerthanwhatcanbeassistedbycurrentmicrolendingprograms.Action(s)needed:IncreaseappropriationstoEDA(EconomicDevelopmentAdministrationoftheUSDepartmentofCommerce)tooffergrantprogramstolocaleconomicdevelopmentagenciesandredevelopmentauthoritiestoestablishand/orexpandlocalrevolvingloanfundstosupportbusinessgrowthinmultipleindustrysectors.Sincethefundswillbegrantedforlocalloanfunds,asthefundsarelentoutandpaidbacktheycanbelentoutagaininperpetuitytoassistmoreandmorebusinessesovertime.Relatedlegislative,administrativeissues:TBDRelevantagencies:U.S.DepartmentofCommerce–EconomicDevelopmentAdministrationLeadorganization:AmericanSustainableBusinessCouncil(www.asbcouncil.org)Linktoadditionalinformation:Fay‐PennEconomicDevelopmentCouncilhttp://www.faypenn.org/
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NameofInitiative:RebuildingAmericanInfrastructure(toaddressthegrowingneedtoreplaceAmerica’sfailinginfrastructure)Summaryincludingprimeobjective(s):RebuildingAmericanInfrastructurewill:
• addresscapitalshortagesbylocalcommunitiesacrossAmericaneededtorebuildpublicinfrastructure;
• improveeconomicprosperityandsustainabilityandresiliencyinlocalcommunities;• increaselocalandnationalemploymentbyfundingnewconstructionprojects;• improveinternationalcompetitiveness,localeconomiccapacityandnationaleconomic
security;Jobcreationandeconomyboostingopportunities:RebuildingAmericanInfrastructurewillhelpcreatehundredsofthousandsofnewjobsinthepublicandprivatesectorsandinlocalcommunitiesthroughoutthecountrybyfinancingnewconstructionprojectstorebuildAmerica’sinfrastructure.Sincepublicinfrastructureisapublicasset,itwillimprovethecountry’sbalancesheetandgeneratepositivereturnsthroughincreasedeconomicactivitybypumpingbillionsintotheeconomy.TheprogramcanbefinancedbyaspecialthirdroundQE3byFederalReservewheretheFedcanpurchasetheinfrastructurebonds,returntheinteresttotheUSTreasuryanddefertheprinciplepaymentsforanextendedperiod.Action(s)needed:TheUSDepartmentofTransportationneedstodeveloptheprogram.Asstatedabove,theprogramcanbefinancedbyaspecialthirdroundQE3byFederalReservewheretheFedcanpurchasetheinfrastructurebonds,returntheinteresttotheUSTreasuryanddefertheprinciplepaymentsforanextendedperiod.Relatedlegislative,administrativeissues:TBDRelevantagencies:U.S.Treasury,U.S.FederalReserveBank
Leadorganization:AmericanSustainableBusinessCouncil(www.asbcouncil.org)Links:Fay‐PennEconomicDevelopmentCouncilhttp://www.faypenn.org/
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NameofInitiative:SecuritiesLawReformSummaryincludingprimeobjective(s):Onepromising,unusedtoolforgeneratingmillionsofnewjobsistoreformsecuritieslawtospurinvestmentinhighlypromisinglocalsmallbusinesses.Thesebusinessesconstituteroughlyhalftheprivateeconomy.Yetoftheroughly$30trillionthathouseholdsandnonprofitsinvestlong‐term(instocks,bonds,mutualfunds,pensionfunds,andinsurancefunds),almostnonegoesintothesehighlycompetitivebusinesses.Thisisahugecapital‐marketfailure.Theexplanationisthatobsoletesecuritieslaws,enactedinthe1930s,makeitverydifficultandexpensiveforinvestorstofindandinvestinlocalsmallbusiness.Updatingtheselawscouldshifttrillionsofdollarsintojob‐creatingbusinesses—atacostofzero.Jobcreationandeconomyboostingopportunities:ArecentcomprehensiveanalysisofjobcreationbytheKaufmannFoundationfindsthattwothirdofalljobscreatedintheeconomycomefromyoungfirms(<5yearsold),nearlyallofwhicharesmallinsizeandlocalincharacter.Anumberofeconomicdevelopmentstudies(see,e.g.,www.civiceconomics.com)suggestthat,oncecreated,dollarspentatlocallyownedsmallbusinessesgenerate2‐4timesthejobsthanadollarspentatanonlocalbusiness.Thisowestothestrongercommunitymultipliersforlocalbusiness.Shiftinginvestmentintothesebusinessesisahome‐runopportunityforjobcreation.Actionsneeded:Twosimpleproposalswarrantseriousconsideration.One,bytheSustainableEconomyLawCenter(www.sustainableeconomieslawcenter.org,LettertoSEC,1July2010),proposesexemptingsecuritiesofferingsupto$100,000with$100maximumperinvestorfromregistration.Arelatedproposal,fromtheNationalCommonwealthGroup(www.commonwealthgroup.net)andWallStreetWithoutWalls(www.wallstreetwithoutwalls.com),suggeststhatthefederalgovernmenthandoverauthoritytostatesexclusivejurisdictiongovernmentoverlocalbusinessesthatissuestocktradedonlyintrastate,investmentcompaniesthatexclusivelyinvestinsuchstocks,orexchangesthatexclusivelyfacilitatetradinginsuchstocks.Thiswoulddramaticallyacceleratestate‐basedexperimentationindifferentreformstrategies.Relevantagency:TheSecurities&ExchangeCommissionhasindicatedinterestintheseandsimilarcrowd‐fundingreforms,butneedsWhiteHouseencouragementtoprioritizethem.LeadOrganization:Besidesthegroupsmentionedabove,twootherleadorganizationsherearetheBusinessAllianceforLocalLivingEconomies(www.livingeconomies.org)andCuttingEdgeCapital(www.cuttingedgecapital.com),bothofwhichemployMichaelShumanwhohasbeenspearheadingtheseideas([email protected])
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NameofInitiative:BacktoWork:DirectEmploymentforaJob‐LedRecoverySummaryincludingprimeobjective(s):Todaytherearealmost29millionpeopleintheUnitedStatesforwhomtheeconomyhasfailedtoperformitsmostimportantfunction:providingenoughjobstogoaround.17ThisrealityisdimmingthelightsontheAmericanDream.BusinesseslacktheU.S.customerstheyneedtohiremoreworkers,andwould‐becustomerslacktheincometheyneedinordertospend.Onlythepublicsectorcaninterruptthiscycle.Atemporarydirectjobsprogramwouldprovidethemostpowerful,targetableandcost‐effectiveeconomicstimulus.Thefederalgovernmentcouldput1millionAmericanstoworkdirectly,atacostof$46.4billionperyear,alsotriggeringamultipliereffectcreatinganadditional414,000jobsoutsidetheprogram.Jobcreationandeconomyboostingopportunities:HowCanWeAffordDirectJobCreation?Thedamagewidespreadunemploymentisinflictingonthefederalbudgetdemandsthequestion:howcanweaffordnottoputAmericansbacktowork?Infact,becausedirectjobcreationwouldmakemoreAmericansintotaxpayersagain,thenetcostofa$46.4billionprogramwouldbe$17.8billionlowerthantheinitialoutlay.Directlyhiringthe8.2millionAmericansneededtoreachfullemploymentwouldcost$235billion,aninvestmentthatwouldredoundtocreateanadditional3.1millionprivatejobs.IftheBush‐erataxcutshadbeenallowedtoexpireattheendof2010,thefederalgovernmentwouldhavecollectedabout$295billioninadditionalrevenueduring2011.WhataretheAdvantagesofaJob‐LedRecoveryStrategy?1.It’sCost‐EffectiveAcomparisonof$100billionspentonthreedifferentstimulusapproachesillustratesthepowerofadirectemploymentstrategy.Taxcutswouldindirectlygenerate136,000fulltime jobswithintwoyears,while$100billionspentontransferpayments(UI&SNAP)wouldindirectlygenerate714,000.DirectlyhiringAmericanworkerswouldcreate2.6millionfull‐ timejobsovertwoyears:2.1milliondirectlyandanadditionalhalfmillionindirectly.Itisimportanttonotethatthefailuretoprovidejobsforpeoplewhowantthemisn’tcheapeither.TheGreatRecessionwasresponsiblefornearly2/3ofthe2009deficit.18Accordingly,aggressive
17Almost14millionactivejobseekersremainunemployed.Another6.6millionpeoplewhoarenotactivelylookingforwork(andthereforearenotcountedasunemployed)saytheywantjobs.Amongworkerswhoareluckyenoughtohavejobs,8.4millionareemployedpart‐timebutwantfull‐timejobs.Nearlyoneoutofeverythreenewjobsduringtherecoveryhasbeentemporary.Thejoblessarenotaperfectmirrorofoursociety—thetollismuchgreateramonglesseducatedworkersandcommunitiesofcolor.
18KathyA.RuffingandJamesR.Horney,“CriticsStillWrongonWhat’sDrivingDeficitsinComingYears,”CenteronBudgetandPolicyPriorities,June28,2010,accessedonFebruary28,2011athttp://www.cbpp.org/files/12‐16‐09bud.pdf.
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actiontolowerunemploymentwillbethemosteffective,fairandsustainablewaytoclosethedeficit:foreverymillionunemployedAmericanswhogoesbacktowork,thedeficitfallsby$54billion.192.ItPutsAmericansBacktoWorkNowDirectjobshave“timevalue”becausetheyarejobscreatedimmediately.Taxcuts,benefitspaymentsandotherindirectstimulusapproachesdonotstartworkingonjobcreationimmediately;theyrequiretherecipientstospendthemoneyattheirdiscretion,whicheventuallyaggregatestoincreaseoveralldemandintheeconomy.3.ItCanBeTargetedtoThoseWhoNeedJobsMostTheundeservedpainofthiseconomiccrisishasnotbeenfeltevenly.Indirectstimulusmeasuressuchastaxcutsandbenefitspaymentsdonotguaranteethatthejobswillbecreatedinthecommunities,sectorsandpopulationshardest‐hitbytherecession.Directjobscanbedesignedtotargetthesejobseekers,reducinginequalityandbluntingthemostextremesufferingfeltinournation.4.ItMeetsVitalNationalandCommunityNeedsTheprogramwouldcreatejobsthatfilldeficitsinhumanandphysicalinfrastructureinthejobseekers’owncommunities.HumanInfrastructure.TheU.S.ranks27th—nearlylast—amongdevelopedcountrieswhenitcomestoinvestmentsineducation,healthcareandothervitalsocialneeds20,and46stateshaverecentlycutbackonsocialservicesfundingduetobudgetshortfalls.21PuttingAmericansdirectlytoworkinareassuchashealthcare,childcare,education,recreation,eldercare,andculturalenrichmentcouldexpandandimprovethequalityofthesevitalpublicservices.PhysicalInfrastructure.Ourphysicalinfrastructureisalsounworthyofournation.OneoutofeverythreeU.S.roadsisinpoorormediocrecondition.22Atleast26,000schoolsareinneedofmajorrepairs.23AdirectjobsprogramwouldhelprebuildAmerica’sinfrastructure‐‐aneconomicinvestmentinandofitself‐‐withimprovementstoschools,roads,bridges,andenergyefficiencyinbuildingsandhomesnationwide.1. WeCanDoit
19OfficeofManagementandBudget,“TheBudgetforFiscalYear2009:HistoricalTables”http://www.whitehouse.gov/sites/default/files/omb/budget/fy2009/pdf/hist.pdf.
20OrganizationforEconomicCooperationandDevelopment,SocialExpenditureDatabase,accessedonFebruary28,2011athttp://www.oecd.org/document/9/0,3343,en_2649_34637_38141385_1_1_1_1,00.html.
21NicholasJohnson,PhilOliffandEricaWilliams,“AnUpdateonStateBudgetCuts,”CenterforBudgetandPolicyPriorities,February9,2011,accessedonFebruary28,2011athttp://www.cbpp.org/cms/index.cfm?fa=view&id=1214.
22ReportCardforAmerica’sInfrastructure,“Roads,”accessedonFebruary28,2011athttp://www.infrastructurereportcard.org/fact‐sheet/roads.
23RebuildAmerica’sSchools,“SchoolsinNeed,”accessedonFebruary28,2011athttp://www.rebuildamericasschools.org/Need.html.
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TheCivilWorksAdministration(CWA)wasanemergencyjobcreationprogramthatwentfromamereproposaltoafullyoperationalprogramwithover4millionemployeesinlessthantwomonths.Despiteitshurriedimplementation,theprogram’sachievementsaretrulyastounding.InChicago,over11thousandCWAworkerslaidbrickpavements.Approximately60,000publicbuildingswererepairedorconstructed,two‐thirdsofthemschools.Swamp‐drainageprojectstofightmalariaemployed30,000CWAworkers,and17,000unemployedcoalminerswereemployedsealingabandonedcoalminestoprotectground‐watersupplies.TheCWA’swhite‐collarprojectsincludededucationprojectswithinexistingschoolsthatprovidedjobsfor50,000laid‐offteachers.Another13,000keptsmallruralschoolsopenthroughthewinterwhennormallytheywouldhaveclosed.Thirty‐threethousandteacherstaught800,000adultsand60,700pre‐schoolchildren.Action(s)needed:Forafull‐scaleprogram,Congresswouldneedtopassauthorizinglegislation.24However,existingfederaljobsprogramscouldbeexpandedforamoremodestprogramwithadditionalfundingorshiftedpriorities.Avarietyofadministrativestructuresarepossibleandmutuallycompatible,butprojectswouldgenerallybeundertakenbythefederalgovernmentandagenciesinpartnershipwithlocalgovernments.Precautionswouldberequiredtopreventlocalofficialsfromusingtheprogramtoreplacepublicemployeeswithfederallyfundedprogramworkers.Contractingwithnon‐profitorganizationswouldalsobepossible.Theprogram’sjobswouldideallypayapproximatelythesamewagethatpersonswithsimilarqualificationsandexperienceearnintheregularlabormarket.Itwouldalsoprovideemployer‐providedhealthinsurance,childcareservices,guaranteedpaidsickleave,andaccesstotheEarnedIncomeTaxCreditandSNAPforlowearners.Relevantagencies:DepartmentofLabor,DepartmentofHealth&HumanServices,DepartmentofEducation,CommerceDepartment,DepartmentofEnergyLeadorganization:Dēmos‐220FifthAve.,2ndFloorNewYork,NY10001.Dēmosisanon‐partisanpublicpolicyresearchandadvocacyorganization.Links:Dēmos:www.demos.orgJobsforAmericaNowcoalitionof64nationalorganizationssupportingdirectjobsprograms:www.jobs4americanow.org/organizations
24SeeH.R.870,“TheHumphrey‐Hawkins21stCenturyFullEmployment&TrainingActof2011”(Rep.JohnConyers,Lead
Sponsor).
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NameofInitiative:CurrencyManipulationandUnfairTradeHarmsU.S.ManufacturingCompaniesandtheirWorkersSummaryincludingprimeobjective(s):ToleveltheplayingfieldforAmericanmanufacturingcompaniesandAmericanworkerscompetingagainsttheunfairtradeadvantagegainedbyChinaandothernationsthatdeliberatelyholddownthevalueoftheircurrencytomaketheirexportsartificiallycheaperandimportstotheirmarketmoreexpensive.Leftunchecked,China’scurrencymanipulationstandsinthewayoffreeandfairtrade,jobcreation,andahigherstandardoflivingformillionsofAmericans.LeadingeconomistsestimatethattheYuanisundervaluedbysome40percent.Ineffect,Chinaistaxingimportswhilesubsidizingexports,feedingahugetradesurpluswiththeUnitedStatesthatreachedarecord$273billionin2010.ChinapledgedinJuly2010toallowamoreflexibleexchangerate,butsincethattimetheYuanhasmadeonlymodestgains.TheAdministrationhasdeclinedtonameChinaasacurrencymanipulatorinitssemi‐annualreporttoCongress.ThemostrecentreportwasreleasedonFriday,May27,2011.TheHouseofRepresentativesoverwhelminglypassedlegislationinthe111thCongresstoallowourcountervailingdutytradelawstobeusedasaWTO‐compliantwaytooffsettheunfairtradeadvantagegainedbyChineseandotherforeigncompaniesthatbenefitfromcurrencymanipulation.Thestrongbipartisanvoteof348‐79includedthesupportofallbutfiveDemocratsandthesupportof99Republicans.In2005,whenfacedwithasimilarsituation,theSenatevoted67‐33infavorofabipartisanamendment,sponsoredbySens.ChuckSchumer(D‐NY)andLindseyGraham(R‐SC),toimposetariffsonChineseimportsunlesstheChinesegovernmentstoppedmanipulatingitscurrency.83percentofmidtermelectionvoters–rangingfromTeaPartysupporterstoDemocraticvoters–saidtheyfavorstrongactiontoensurethatChineseimportscomplywithinternationaltradeobligations.Jobcreationandeconomyboostingopportunities:TheU.S.tradedeficitwithChina–fueledbycurrencymanipulation,illegalsubsidies,andotherpredatorytradepractices–rosefrom$84billionin2001whenitenteredtheWTOto$273billionin2010,andnowexceeds70percentofouroveralltradedeficitinnon‐oilgoods.AccordingtoRobertScottoftheEconomicPolicyInstitute,themassivetradeimbalancebetween2001‐2008resultedinthelossordisplacementof2.4millionAmericanjobs.Economistsacrosstheideologicalspectrum,rangingfromFredBergstenofthePetersonInstitutetoNobellaureatePaulKrugman,estimatethatendingChina’scurrencymanipulationwillcreateanywherefrom500,000tooveronemillionjobs‐allwithoutanyU.S.governmentspending.
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EPIalsoestimatesthatifChina’scurrencywererevaluedtomore‐accuratelyreflectmarketforces,theanticipatedgrowthwouldlowerourbudgetdeficitbyasmuchas$500billionoverthenextsixyears.Action(s)needed:legislative,administrativeorotherwise:
• Administrative–NameChinaasacurrencymanipulatorinthenextTreasuryDepartmentreporttoCongress.DoingsowouldsetinmotionaprocesstoformallyconfrontChina’scurrencymanipulationandallowforincreasedinternationalpressure.
• Legislative–SupporttheCurrencyReformforFairTradeAct–H.R.639(Levin/TimMurphy–
146cosponsors)/S.328(SherrodBrown/OlympiaSnowe–12cosponsors).ThislegislationwouldprovidetheDepartmentofCommercewithanenhancedabilitytotreatcurrencymanipulationasasubsidytoforeignmanufacturersandacttooffsettheunfairtradeadvantagewhentradecasesarebroughtforwardbypetitioningAmericanworkersand/orindustry.Thebillwascarefullycraftedtomeetourinternationaltradeobligations.TheCurrencyReformforFairTradeActissupportedbyhundredsofbusinesses,associations,andtradeunions.
Relevantagencies(ifany):ThePresident,TreasuryDepartment,DepartmentofCommerce,USTR,andothersshareresponsibilityfortheenforcementofourtradelaws.Leadorganization:AllianceforAmericanManufacturing(contact:ScottBoos,DeputyDirector,[email protected],202‐256‐3081)Links:ChinaJobDrain(AAM)–Thissitefeaturesaninteractivemapdisplayingjobloss/displacementdataineachstateandcongressionaldistrictthatresultedfromourtradedeficitwithChina–whichwasfueledbycurrencymanipulationandotherunfairtradepractices.http://www.americanmanufacturing.org/china‐job‐loss/CurrencyReformforFairTradeActEndorsements(FCC)http://www.faircurrency.org/petition/Petition%20to%20Senate%20Leadership%20version%2011%2030%202010.pdfPublicOpinionResearch(AAM)–seepage33.http://www.americanmanufacturing.org/wordpress/wp‐content/uploads/2010/06/10pre607‐aam‐f2‐short.pdf
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NameofInitiative:FarmEntrepreneurandJobsAct(guaranteeloanprogram)Summaryincludingprimeobjective(s):TheFarmEntrepreneurandJobsActwill;
• increasefarmincomebyconnectingfarmers,ranchersandconsumers;• ImproveNationalFoodSecuritybycreatingasaferandmorereliablelocalfoodsystems;• diversifyanddecentralizefoodproductionfornationalfoodsecurity;• retainandcreatesustainableonfarmandsupportservicejobs;• preservefarmlandbymakingfarmseconomicallyprofitableandsustainable;• increaseconsumeraccesstofresh,localhealthyfoodsproducedbylocalfarmsandranchers
inmetroprogram,urban,andruralareas;• supportnutritionaleducationthatincorporatesparticipationofschoolchildreninfarmand
garden‐basedagriculturaleducationactivities;Jobcreationandeconomyboostingopportunities”TheFarmEntrepreneurandJobsActwillcreatemorethan200,000jobsintheprivatesectorandincommunitiesthroughoutthecountrywhilesupportingothernationalenvironmental,energyandnutritionalgoalswithoutbeingdependentuponcontinuousgovernmentspendingtomaintainthem.TheFarmEntrepreneurandJobsActisa$5Billionfederalloanguaranteeprogramthatwillretainorcreateover57,000jobsforeverybilliondollarsloanedthroughthisprogram.Thereiscurrentlynotalendingprograminanybranchofgovernment,includingtheUSDA,whichhasalendingprogramdesignedtodowhatthisprogramwilldo. TheFarmEntrepreneurandJobsActGuaranteeLoanProgramimpactonthelocaleconomyandnationaleconomy:
• TheFarmEntrepreneurandJobsActwillbeaten‐yearGuaranteeLoanProgramforfarmersandentrepreneursproducingfoodforthelocalmarketneeds.
• TheFarmEntrepreneurandJobsActwillcreate71,430newfarmprojectsthatwillbefundedovertheten‐yearperiodoftheprogram.
• TheFarmEntrepreneurandJobsActwillpreserveover500,000acresofprimefarmlandovertheten‐yearperiodoftheprogram.
• TheFarmEntrepreneurandJobsActwillgenerateover$105,000intotalgrossproductsalesperyearperprojectwiththefarmprojectaveraging7acres.
• TheFarmEntrepreneurandJobsActwillgenerateover$7.5Billionintotalgrossproductsalesovertheten‐yearperiodofthefirstyearinvestmentof$500millionintotheGuaranteeLoanProgram.
• TheFarmEntrepreneurandJobsActwillgenerateover$41Billionintotalgrossproductsaleswithaninvestmentof$5Billionor$500millionperyearfortheten‐yearlifeoftheprogram.
• TheFarmEntrepreneurandJobsActwillretainandcreate214,290onfarmjobsand71,430supportservicejobsovertheten‐yearlifeoftheloanprogram.
• TheFarmEntrepreneurandJobsActisa$5Billionfederalloanguaranteeprogramthatwillretainorcreateover57,000jobsforeverybilliondollarsloanedthroughthisprogram.
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Action(s)needed:Anewbillneedstobeintroducedandcalled:TheFarmEntrepreneurandJobAct,whichwillbeaGuaranteeLoanProgram.AnotheractionwouldbetohavetheadministrationcreateaSustainableAgricultureWhiteHouseTaskforcewiththemainfocusedonthereauthorizationofthefarmbill.RelatedLegislative,AdministrativeIssues:
• TheFarmEntrepreneurandJobsActwillsupportthe“Let’sMoveCampaign”thatFirstLadyMichelleObamahasbeenpromoting.
• TheFarmEntrepreneurandJobsActwillenhanceandsupporttheHealthyFoodFinancingInitiative.PresidentObama’sFY2012budgetiscallingformorethe$330millionininvestments.
• TheFarmEntrepreneurandJobsActwillhaveadirectimpactwithachievingthegoalsandobjectivesoftheCommunityandEconomicDevelopment(CED)Program,whichisadministeredbytheOfficeofCommunityServices(OCS)intheDepartmentofHealthandHumanServices(HHS).
• TheFarmEntrepreneurandJobsActwillcomplementandhelpwithdevelopmentofthefarmerstosupplyfoodforthosecommunitiesfortheCommunityFoodProjectsCompetitiveGrantProgramofferedthroughUSDANationalInstituteofFoodandAgriculture.
Relevantagencies:
• U.S.SmallBusinessDevelopmentAdministration(SmallBusinessLoanPrograms)Notabletousfundsforagriculturalproductionprojectsorvalue‐addedagriculturalprojects
• USDARuralDevelopment,RuralMicroenterpriseAssistanceProgram(RMAP)issomewhatclosetothistypeofprogram.
Leadorganization:Fay‐PennEconomicDevelopmentCouncil,Uniontown,PAPhone;724‐437‐7913Links:www.faypenn.org
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NameofInitiative:OrganicAgricultureandProductsIndustrySummaryincludingprimeobjective(s):TheOrganicTradeAssociation’s(OTA)OrganicIndustrySurveyshowstheindustryhasgrownfrom$3.6billionin1997to$29billionin2010,withanannualgrowthrateof19%from1997‐2008.Asourcountryhasbeendramaticallyaffectedbytheworsteconomicdownturnin80years,theorganicindustryhasremainedinpositivegrowthterritoryandhascomeoutoftherecessionhiringemployees,addingfarmers,andincreasingrevenue.OTA’sprimaryobjectiveistoadvocateforpublicpolicythatencouragesratherthanrestrictsthegrowthinopportunityintheorganicfoodandagriculturesector.Jobcreationandeconomyboostingopportunities:Seeattachedbriefingdocumentswithstatisticsonsize,growth,profitabilityandjobcreationfortheorganicagriculturalsector—outperformingtheeconomyasawhole.Action(s)needed:legislative,administrativeorotherwise:
• SupportExportoforganicfoodandagriculturalproductsthroughfavorabletradearrangementsonorganicstandards
o Organicexportsreachedapproximately1.7Bperyearin2010o TheUSandCanadasignedthefirsteverbi‐lateralequivalencearrangementfororganic
standardsinJune2009,allowingUSorganicproductstofreelyentertheCanadianmarketwithoutburdensomere‐certificationtoCanadianstandards.
o TheUSisinpreliminarydiscussionwiththeEU,thelargestgrowthpotentialmarketforUSorganicproducts.Asuccessfulagreementisthe#1tradepriorityforthesector.
• Removeobstaclestotheorganicindustryestablishingitsownself‐helppromotionprogramo Therearelegislativeandregulatoryobstaclespreventingtheorganicsectorfrom
establishingtheirowncheck‐offprogram.Organicshouldhavethesameopportunitytoself‐taxandpromoteasothercommoditygroups.Thisistheorganicsectors#1marketdevelopmentpriority.
• SupportthemodestFarmBillprogramsgearedtowardorganicagricultureincluding:FundingtheNationalOrganicProgram,atUSDA,toprovidearobustregulatoryframeworknecessaryforconsumerconfidence,programsgearedtowardstransitionandnewfarmers
o ThehealthandfutureoftheentiresectorreliesonconsumertrustintheUSDAorganiclabel.Adequateresourcesandregulatoryoversightarecriticaltofuturegrowthandeconomicopportunity
o Withfuturegrowthprojections,theorganicsectorwillneedmanymoreorganicproducerstomeetthemarketdemands.Modestsupportfortransitionfarmers,throughtheFarmBill,willallowmorefamilyfarmsinAmericatotakeadvantageoftheeconomicandenvironmental&conservationbenefitsofferedbyorganicagriculture.
Relevantagencies(ifany):
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• U.S.DepartmentofAgriculture• OfficeoftheU.S.TradeRepresentative
Leadorganization:TheOrganicTradeAssociation("OTA")isthemembership‐basedbusinessassociationfororganicagricultureandproductsinNorthAmerica. OTAistheleadingvoicefortheorganictradeintheUnitedStates,representingover6,500organicbusinessesacross49states.Itsmembersincludegrowers,shippers,processors,certifiers,farmers'associations,distributors,importers,exporters,consultants,retailersandothers.OTA’sBoardofDirectorsiselectedbyitsmembers.OTA'smissionistopromoteandprotectthegrowthoforganictradetobenefittheenvironment,farmers,thepublicandtheeconomy. Links:www.ota.com
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NameofInitiative:RegionalTourismAdvisoryCouncil(NewMexico)Summaryincludingprimeobjective(s)Asaruralstate,manyofNewMexico’ssmallbusinessesdependonattractingout‐of‐stateandin‐statetouristforoutdoorrecreationactivities.Thoseactivitiesdependontheprotectionandsustainableuseofpubliclandsandparks.TheNMGreenChamberofCommercebelievessomeinitiativesthatcouldhelpsupportruralsmallbusinessesnearpubliclandsandparksinclude:Jobcreationandeconomyboostingopportunities:Action(s)needed:legislative,administrativeorotherwise:(1)Encouragethefederallandmanagers‐‐forestservice,NPS,BLM‐‐inaparticularregiontocoordinateandorganizeaRegionalTourismAdvisoryCouncilmadeupoflocalbusinessleaderswhocollaboratewithagenciesonevents,services,etc.toattracttourism.(2)LaunchacollaborativeinitiativebetweenUSDAandDOIthatauditsexistingfederallandsandwaterspoliciesthatcontributetosmallbusinessgrowthsuchasLandWildlifeConservationFundandnewmonumentdesignations,andworkscollaborativelyviaanadvisorycouncilwithsmalloutdoor‐dependentbusinessownerstodevelopstrategiesforenhancingthem.ResearchbytheOutdoorIndustryFoundation,HeadwatersEconomics,SouthwickAssociatesandothersshowsthatprotectedlandssupporteconomicgrowth,especiallyamongservice‐basedindustries.Theeconomicwell‐beingofmanyWesterncommunitieswillbedeterminedinlargepartbytheabilityoflandmanagers,businesses,andresidentstomaintainorimprovetheuniqueexperiencesandresourcesoftheirpubliclands.(3)EnsurethattheLandandWaterConservationFundcontinuestosupportaccessofpubliclandsbyfishermenandhuntersandtoprimewildlifehabitat.Relevantagencies(ifany):Leadorganization:NewMexicoGreenChamberofCommerce
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MakeItinAmericaInitiatives
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NameofInitiative:MakingItinAmerica:NextGenManufacturersObjective:Provide“AccesstoMarket”Grantsformicro‐enterprise:Smalllocalproducerslacksector‐specificeducationtogrowtheirsalesfromthelocaltonationalmarketplace.TorevitalizemanufacturinginAmerica,wemustfirstprovidethenecessarytrainingtogrowtheseNextGenManufacturers,empoweringthemtocompeteinthenationalmarketplaceandcontributefullytoeconomicrecoveryintheircommunities.WhoaretheNextGenManufacturers?1.4MillionAmericanswhoself‐identifyasartisans.Thissectorbeginsathome:mostarefemale‐ownedfirmsproducingjewelry,pottery,artglass,homeaccessories,fashionaccessories,furnitureandgiftware.Duringtherecentrecession,tensofthousandsofwell‐establishedsmallemployersreducedthesizeoftheirbusinessesandreturnedtotheinformaleconomy,sellinglocally.Manywerelargerbusinessesduringthe1990s,making$200,000‐$500,000grossand$50,000‐$90,000net.Thefirstcomprehensivestudyofthecraftindustry,completedin2000,estimateditseconomicimpactat$14billion.Nationally,artistunemploymentisoutpacingthatofallothercollege‐educatedprofessionalgroupsandallcivilianworkers;amongthemanufacturingartisansegment,weestimateunemploymentat20percent.TribalunemploymentfortheNavajoNationhasrisento50percent,dueinparttoreducedbuyingofartisanworksbygalleriesandnationalparkstores.Still,thenumberofself‐employedartisansisgrowing:newproducerssold$400milliononlinein2010.Theself‐employedaspiretogrow,butunlesstheyreceivethepropereducationandmentoring,fewofthesenewinformalbusinesseswillcontributetothelocal,stateorfederaltaxbase.Of1,200artisanssurveyedrecently,only20%hadtakenabusinesscoursein2010,anecessitytohelpthemchartapathforsurvivalandgrowthduringdifficulttimes.Withproperbusinesstrainingandopportunitiestocompeteinthenationalmarketplace,manycouldgrowtoemployothers.JobCreation:Thisinitiativewillcreate20,000newmanufacturingbusinessesandmorejobs.ActionsNeeded:
• Jump‐startBusinessGrowthwithEducation:ProvidetrainingandmentoringforexpansiontothenationalAmericanMadeandluxuryproductmarketplace.
• LevelthePlayingField:ArtisanscurrentlyfaceadisadvantageinthewholesalemarketingoftheirworkastheirforeigncounterpartsareprovidedfullysubsidizedgrantstoexhibittheirworkatU.S.tradeshows.Thisexportstrategyisutilizedbymostnations.SmallgrantswouldhelpbridgethefairnessgapforAmericanartist‐entrepreneurstocompeteinthedomesticmarketplace.Wecurrentlyspendmorethan$6,000perpersonforjobtrainingprograms.InvestthatsameamountforAccesstoMarketprogramsandyou¹llcreateemployersmakingadecentwageandhiring.
• StoptheFraud:Artisan‐likeproductsarepouringintotheU.S.marketplacefromoverseas.Retailers,distributorsandimporterscommonlyremovethecountryoforiginstickers,creatingconfusionandfraud.EnforcementoftheTariffAct1930(19U.S.C.1304),requiringlegible,
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indelible,andpermanentmarkingofthecountryoforiginonimports,willhelpconsumersknowthetruthaboutimportsandauthenticartisanproducts.
• OntheRadar:Thecultureoftheartisansectorisendemically“counter‐manufacturing,”whichmeansthattheyrarely,ifever,self‐identifyasmanufacturers.AsamplestudyshowedthatmorethanhalfoftheprofessionalstudioshaveincorrectNAICScodes.
RelevantAgencies:U.S.DepartmentofLabor,U.S.DepartmentoftheInterior,U.S.CensusBureau/NAICSSubmitted:June2,2011byWendyRosen,Founder,AmericanMadeAllianceSources:ResearchBulletin#97,NationalEndowmentfortheArts,2010;TheRosenGroup,2010;“ArtistsintheWorkforce1990‐2005,”NationalEndowmentfortheArts,2008;“TheImpactofCraftsontheNationalEconomy,”CraftOrganizationDevelopmentAssociation(CODA),2001;NavajoNationGovernment,www.navajo.org;“OnlineBazaarBuildsonItsBaseWithSenseofCommunity,”NewYorkTimes,2010;“CraftIndustryTrendsSurvey,”PhiladelphiaMuseumofArtCraftShow,2009.
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NameofInitiative:ApolloAlliance’sCleantheTransportationManufacturingActionPlan(TMAP)Summaryincludingprimeobjective(s):In 2010 the Apollo Alliance convened a task force of leading manufacturers, labor unions,transportation, energy and economic development policy experts to examinehowbest to supportthe domestic manufacture of advanced rail vehicles, efficient buses, clean trucks and theircomponentparts.BasedonfeedbackwedevelopedtheApolloCleanTransportationManufacturingAction Plan (TMAP) – a national strategy to leverage our federal investments to build a modern,efficienttransportationsystemtocreatequality,high‐payingmanufacturingjobs.TMAPisfocusedonexpanding domestic demand for these products and providing the investments and regulatorysupportsneededtoensurethatAmericanmanufacturersarepositionedtomeetincreaseddemand.PrimeObjectives:SpurDemandforTransitVehicles,Systems,CleanTrucks,andTheirComponentParts
• Invest$30billioninpublictransitand$10billioninintercityrailannuallytodoublepublictransitridershipandconnectournation’scommunitieswithmodernandefficientrailservice.
• Expandcompetitive,mode‐neutralfinancingapproachestoleveragegreaterstate,local,andprivatetransportationinvestment,reduceenergyconsumption,andsupportdomesticmanufacturing.
• Developanationalfreightplanandupgradeournation’sfreightvehiclefleet,andsupportlocalportclean‐upplanstodrivecleanfreightmovement.
SupportDomesticManufacturersinMakingtheVehicles,Systems,andComponentPartsDemandedbyClean,EfficientPublicTransitandFreightMovementSystems
• SupportAmericanmanufacturersinretoolingandmakingnewinvestmentsincleantruck,transitvehicle,andcomponentpartmanufacturing
• Improvetransparencyandaccountabilityofdomesticcontentrequirementsandintroducingincentivestoincreasedomesticcontent
• Encourageproductstandardizationandimproveprocurementpractices• Investinresearchanddevelopmentprogramsthatcreatenewtechnologiesandsupportthe
commercializationoftheseproducts
Jobcreationandeconomyboostingopportunities:The$40billionannualinvestmentsasproposedbyTMAPwillcreate3.7milliondirectandindirectjobs–600,000aloneinthemanufacturingsectoroverthenextsixyears,thelikelydurationofareauthorizedtransportationbill.Bymakingtheseinvestments,wecangetoureconomybackontrackwhiledoublingridershipoverthenexttwodecades,andbuildingoutacomprehensiveintercityandhigh‐speedrailsystem.Inaddition,theseinvestmentswillgenerate$60billioninnetannualgrossdomesticproduct,nearly$45billioninadditionalworkerincome,and$14billioninannualtaxrevenue.Ofthemorethan600,000jobsthatwouldbecreatedinthemanufacturingsector,manywillbetheproductionofadvancedbuses,railcars,cleanerfreightmovementtechnologiesandcomponentparts.
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RealizingthismanufacturingjobgrowthandrestoringproductivecapacityisessentialtobroaderU.S.economicrecoverybecausethemanufacturingindustrydrivesinnovationandwealthcreationacrosstheentireeconomy.Themanufacturingsectorgenerates70%ofallprivate‐sectorresearchanddevelopmentspendingand90%ofallU.S.patents.Andonehigher‐techmanufacturingjob,suchasthosemakingadvancedtransportationequipment,supportsupto16additionaljobsinothersectors.Action(s)needed:StrengtheningManufacturingandRebuildingTransitActof2011(SMART)Act–Sen.BrownandSen.MerkleySupportthereintroductionofS.2843,theAdvancedVehicleTechnologyActof2010asamendedbytheU.S.SenateCommitteeonEnergyandNaturalResources(Sen.Wyden)TheSurfaceTransportationReauthorizationCleanAir/CleanEnergyLegislationContinuedcoordinationbetweenDOTandtheHollingsManufacturingExtensionPartnership(MEP)atNISTtofindUSmanufacturersfortheproductsneededforournations’transportationprojectsandpromotedomesticsupplychainsRelevantagencies(ifany):USDepartmentofTransportationanditsmodalagencies(FTA,FRA,FHWA,FAA,MARAD,RITA,etc)SustainableCommunitiesPartnership(jointinitiativeofDOT,HUD,EPA)AmtrakHollingsManufacturingExtensionPartnershipatNISTintheCommerceDepartmentWhiteHouseManufacturingCzarRonBloomEnvironmentalProtectionAgency(EPA)StateDOTs&StateEconomicDevelopmentAgenciesLeadorganization:TheApolloAllianceLinks:http://www.apolloalliance.org/tmaphttp://apolloalliance.org/programs/tmap‐report/tmapsupportingresearch/
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NameofInitiative:MakeItInAmerica:TheApolloGreenManufacturingActionPlan(GreenMAP)Summaryincludingprimeobjective(s):TheApolloAlliancehascreatedtheroadmapforrevitalizingAmerica’smanufacturingsector.PartofTheNewApolloProgram,ourcomprehensivenationalstrategyforbuildingacleanenergy,goodjobseconomy,MakeItInAmerica:TheApolloGreenManufacturingActionPlan(GreenMAP)callsforfederalinvestmentinthedomesticmanufactureofcleanenergyequipmentandcomponents,andinmakingmanufacturingplantsmoreenergyefficientoverall.AnaggressiveprogramsuchasweproposecouldbenefittensofthousandsofU.S.firmscapableofmakingtheequipmentandcomponentsofthecleanenergyeconomy,themajorityofthemlocatedinthe20stateshardesthitbymanufacturingjoblosses.Inthefallof2008,theApolloAlliancebroughttogetherrepresentativesfromacademia,industry,labor,andenvironmentalgroupstodevelopstrategiesforrebuildingdomesticmanufacturingforthegrowingcleanenergyeconomy.Thisgroup,whichincludestheAFL‐CIO,ChangetoWin,theAmericanWindEnergyAssociation,theSolarEnergyIndustriesAssociation,EnvironmentalDefenseFund,theAllianceforAmericanManufacturing,theNationalCouncilforAdvancedManufacturing,theInternationalEconomicDevelopmentCouncil,JohnsonControls,Inc.,GeneralMotors,theRenewableEnergyPolicyProject,theCenteronWisconsinStrategy,andtheCampaignforAmerica’sFuture,amongothers,developedasetoffederalpolicyrecommendationstospurdomesticgreenmanufacturing:
• Providedirectfederalfundingforcleanenergymanufacturerstoretooltheirfacilitiesandretraintheirworkerstodevelop,produce,andcommercializecleanenergytechnologies.
• Attachstandardstofunding:conditionfederalsupporttomanufacturersontheirabilitytomeetlaboranddomesticcontentstandards.
• IncreasefundingfortheManufacturingExtensionPartnership,bothtoexpanditsroleinstrengtheningthecleanenergysupplychainandtoestablishpartnershipswithregional/localdevelopmentandmanufacturingsupportorganizations.
• IncreasefundingfortheGreenJobsActanddirectfundsadministeredundertheActtowardworkforceandskillstandardsdevelopmentforthecleanenergymanufacturingindustries.
• Createa“PresidentialTaskForceonCleanEnergyManufacturing”tobringtogetherarangeoffederalagenciestomakethemanufacturingofcleanenergysystemsandcomponentsanationalpriority.
Jobcreationandeconomyboostingopportunities:TheU.S.manufacturingsectorisintrouble.Since1999,4.6millionU.S.manufacturingjobshavedisappeared,manyofthemsentoverseas.Morethan1millionmanufacturingjobshavebeenlostsincethestartofthecurrentrecessioninDecember2007,including200,000inJanuary2009alone.Thesearesomeofthecountry’sbestmiddle‐classjobs,payinganaverageof$25,000moreperyearthanservicesectorjobsandoftenprovidinghealthcareandpensionbenefits.Asmanufacturingandassociatedjobsdisappear,theonlyoptionformanynon‐collegedegreeworkersislow‐paidservicesectorjobswithoutclearcareeradvancementopportunities.
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Despiteitshardships,AmericanmanufacturingstillrepresentsaconsiderableshareoftheU.S.economy.Thesector’sgrossoutputin2005was$4.5trillion,anditstillsupportsnearly13millionjobs,ornearly10percentoftotalnon‐farmemployment.Thecleanenergysectorisprojectedtoreach$226billionannuallyby2016.Demandforsolarandwindpowerwillcontinuetoexpandoverthenexttwentyyears,andupwardsto80%ofthesenewjobswillbeinthemanufacturingsector.CleanenergymanufacturingoffersanopportunitytostrengthenandexpandAmerica’smiddleclass.Butthere’sonebigproblem:wedon’tmakemostofthesesystemshereintheU.S.FullyhalfofAmerica’sexistingwindturbinesweremanufacturedoverseas.Werankfifthamongcountriesthatmanufacturesolarcomponents,eventhoughthesolarcellwasborninAmerica.Thefactthatothercountriesarepreparedtodelivertheseproducts–andwearenot–meansthateverynewAmericanbillcreatingdemandforrenewableenergysystemsandenergyefficiencyservicesactuallycreatesnewjobsoverseas,eventhoughwetheUShasarobustmanufacturinginfrastructureandskilledworkforce.WemustnotsquandertheopportunitiesinthetransitiontoacleanenergyeconomybygivinguponAmericanmanufacturing.Withtherightroadmapthroughthetransition–onethatdirectlyinvestsindomesticcleanenergymanufacturing–wewillreduceournation’scarbonfootprint,expandexports,increaseourenergysecurity,andcreateandretainhigh‐qualityjobsinourvaluablemanufacturingsectoroverthelongterm.Action(s)needed:Legislative,administrativeorotherwiseReintroductionandpassageofthe“InvestmentsforManufacturingProgressandCleanTechnology(IMPACT)Actof2009‐Sen.Brown.CleanEnergyLegislationContinued coordination between the Department of Energy and the Hollings ManufacturingExtensionPartnership(MEP)atNISTtofindUSmanufacturersfortheproductsneededforourcleanenergyeconomyandpromotedomesticsupplychainsRelevantagencies(ifany):DepartmentofEnergyHollingsManufacturingExtensionPartnershipatNISTintheCommerceDepartmentWhiteHouseManufacturingCzarRonBloomEnvironmentalProtectionAgency(EPA)Leadorganization:TheApolloAllianceLinks:http://apolloalliance.org/programs/apollo‐green‐manufacturing‐action‐plan‐greenmap/
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NameofInitiative:SupportingAmericanManufacturers’FacilityProgram(toaddresstheneedfornew,modernindustrialspaceatcompetitiveratestorebuildtheUSmanufacturingbase)Summaryincludingprimeobjective(s):SupportingAmericanManufacturers’FacilityProgramwill:
• provideincentivestosupportlocalmanufacturingandbuildlocalcapacity;• increaseemploymentbyfillingcurrentvacantpositionsinmanufacturingandtechnology;• increaseconstructionjobs;• improveinternationalcompetitiveness,localeconomiesandnationaleconomicsecurity;
Jobcreationandeconomyboostingopportunities:TheSupportingAmericanManufacturers’FacilityProgramwillhelpcreatemorethan1,000,000+jobsintheprivatemanufacturingsectorandincommunitiesthroughoutthecountrybybuildingnewmanufacturingspace,industrialparks,incubatorsandrenovatingoldspace. Action(s)needed:IncreaseappropriationstoEDA(EconomicDevelopmentAdministrationoftheUSDepartmentofCommerce)tooffergrantprogramstolocaleconomicdevelopmentagenciesandredevelopmentauthoritiestoconstructnewenergyefficientincubators,renovateoldindustrialspace,buildnewspaceandindustrialparkstosupportthegrowingmanufacturingsectorintheUS.Localagencieswhichreceivethegrantfundswillberequiredtoofferreducedleaseratestocompaniestoimprovetheireconomiccompetitiveness.Sincethefundswillbeinvestedinfixedassets(landandbuildings),theimprovementswillremainwiththelocalcommunitiesfor50ormoreyearsforthelifeoftheasset.Relatedlegislative,administrativeissues:TBDRelevantagencies:U.S.DepartmentofCommerce–EconomicDevelopmentAdministrationLeadorganization:AmericanSustainableBusinessCouncil(www.asbcouncil.org)Links:Fay‐PennEconomicDevelopmentCouncil
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NameofInitiative:MakeitinAmerica–StrengthenBuyAmericaProvisionsSummaryincludingprimeobjective(s):TosupportmanufacturingintheUnitedStates,thefederalgovernmentshouldcontinuetostrengthenthedomesticcontentstandardsforproductspurchasedwithfederaldollars.JobcreationandEconomyboostingopportunities:DuetoBuyAmericaprovisionscurrentlyinplace,OregonIronWorks,Inc.andUnitedStreetcarrecreatedthestreetcarmanufacturingsectorintheUnitedStates.Withouttheseprovisions,jobsrelatedtostreetcarmanufacturingwouldhavecontinuedtoexistonlyoverseas.Infact,UnitedStreetcarworkedwithover200vendorsacross20statesonitsprototypevehicle–thefirstmodernstreetcartobebuiltinAmericainnearly60years.Thestreetcarprojectwasnewworkforthesevendorsandtheiremployees.WithsubsequentstreetcarcontractssecuredwiththecitiesofPortlandandTucson,hundredsofAmericanjobswillberetained.Action(s)needed:Lastsession,SenatorSherrodBrownintroducedtheSMARTAct(S.4034),abillthatwouldgiveadditionalpreference(extracredit)forproductsmadeofmorethan60percentdomesticcontent,thecurrentBuyAmericacontentstandard.ItisourunderstandingthatSenatorBrownintendstoreintroducethisbillthissession.WeaskthatthebillhavePresidentObama’ssupport.Relevantagencies(ifany):SenatorBrown’sbillpertainstotheU.S.DepartmentofTransportation.However,wesupportthatthegreatworkofUSDOTrelatedtoBuyAmericabemirroredbyotherfederalagencies,namelytheU.S.DepartmentofEnergyasitrelatestocleantechnologyprojectsfundedbyDOEinvestments.Leadorganization:TheApolloAlliancerecentlyjoinedforceswiththeBlueGreenAlliance.Withthismerger,theApolloAlliancebringswithitaCleanTransportationManufacturingActionPlanthataddressesBuyAmericaandotherpolicyproposalsrelatedtodomesticmanufacturing.TheplanrepresentstheleadingefforttocreateandretainmanufacturingjobsintheU.S.Links:http://apolloalliance.org/tmap/
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CleanTechnologyInitiatives
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NameofInitiative:CleanEnergyVictoryBonds(CEVB)Summaryincludingprimeobjective(s):CleanEnergyVictoryBonds(CEVB)areproposedasanewU.S.Treasurysavingsbond,availableforaslittleas$25,whichencouragecitizeninvestmentinthedomesticcleanenergyindustry.TheCEVBwouldleverage$7.5billionininvestmenttoprovideupto$150billioninpublicandprivatefinancingtofundtheproductionofinnovativeenergytechnologies,atatimewhentheUSisfallingbehindothercountriesincleanenergymanufactureandinstallation.Todeclareenergyindependence,restorepublicandenvironmentalhealth,establishgreen‐energyjobs–manyofwhichcannotbemovedabroad,andaverttheworstconsequencesofclimatechange,Americamustupdateitsenergyinfrastructure.Whenpresidentshaveneededtomobilizepubliccommitmentandengagecitizensinunderwritingthecostsofcollectivechallenges,theyhaveoftenturnedtobonds.DuringWorldWarII,FranklinRooseveltpromoted“VictoryBonds,”whichraised$185billion($2trillionintoday’sdollars)frommorethan80millionAmericans.Weneedacomparabletooltodaytohelpusaddressournation’sdireneedforrenewableenergy.ProjectsthattheCEVBwouldfundinclude:energyefficiencymeasuresforthepublicandprivatesectors;renewableenergydevelopment(sun,wind,geothermal,orotherrenewableresources);andelectricvehicle,chargingstationandbatteryfunding.TheCEVBwouldprovidecrucialfinancingtoextendthelifeofkeytaxcredits,grants,andprojects,allowingthemtoattractadditionalprivatesectorsupportbyincreasinginvestorconfidencethatfederalfinancingwillnotdisappearprematurely.Jobcreationandeconomyboostingopportunities:Thejobcreationbenefitsofcleanenergycontinuetobewell‐documented.Whilemethodologiesandthetypesofenergysourcesconsideredvary,itisclearthatinvestmentinrenewablescanprovideacrucialboosttoournation’seconomy.GreenAmericawouldbehappytoprovideadditionalinformation.Asmallsnapshotofthejobbenefitsinclude:1.“Investing$150billionincleanenergywouldcreateanestimated1.7millionnewjobs.Thisexpansioninjobopportunitiescancontinueaslongastheeconomymaintainsacommitmenttoclean‐energyinvestmentsinthe$150billionperyearrange.Ifclean‐energyinvestmentsexpandstillfaster,overalljobcreationwillincreasecorrespondingly.CenterforAmericanProgressandthePoliticalEconomyResearchInstitute:“TheEconomicBenefitsofInvestinginCleanEnergy,”2009.2.“Analysisofthejobcreationimpactsofourcleanenergyinvestmentagendashowedthatapublicinvestmentof$30billionperyearovertenyearscouldgenerate3millionnewcleanenergyjobs.”ThePerrymanGroup,“NewEnergyforAmerica–TheApolloAllianceJobsReport:ForGoodJobs&EnergyIndependence,”theApolloAlliance,January2004.3.“Ingeneral,ourfindingsshowthatclean‐energyinvestmentscreatemorejobopportunitiesthanspendingonfossilfuels,acrossalllevelsofskillandeducation.Thelargestbenefitswillaccruetoworkerswithrelativelyloweducationalcredentials.Wefurtherfindthatahighproportionofthejobs
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generatedbyclean‐energyinvestmentsshouldoffergoodopportunitiesforadvancementthroughtrainingprograms,andmoregenerally,thatnewlyemployedlow‐incomeworkerswillseenewopportunitiestoliftthemselvesandtheirfamiliesoutofpoverty.”Cleanenergyinvestments:MOREJOBSACROSSALLEDUCATIONALLEVELS
3.2timesmorejobsoverallthanfossil‐fuelin‐vestments 3.6timesmorejobsrequiringhighschooldegreesorless 2.6timesmorejobsrequiringcollegedegreesormore 3.0timesmorejobsrequiringsomecollege
PoliticalEconomyResearchInstitutereportcommissionedforNRDCandGreenForAll:“GreenProsperity:HowCleanEnergyPoliciesCanFightPovertyandRaiseLivingStandardsintheUnitedStates,”June2009.“Windandsolarphotovoltaicsoffer40%morejobsperdollarthancoal.”RenewableEnergyPolicyProject,“TheWorkthatGoesIntoRenewableEnergy,”1999.Actionneeded:WehaveanoriginalDemocraticsponsorforCEVBlegislationandadraftbillthatHouselegislativecounselisnowupdating.DiscussionisalsounderwaywiththeSenate.Weclearlyneedtodemonstratebi‐partisansupportforCEVBuponthereleaseofthebill,withabipartisanlistoforiginalco‐sponsors.AssistanceisgarneringRepublicansupportwouldbewelcome.WewillalsoneedSenatechampions.Relevantagencies:TheCEVBisproposedasaTreasurybond;contactsatTreasurywhocanbuildinternalsupportCEVBwouldbemostwelcome.Leadorganization:GreenAmerica(www.greenamerica.org)anationalmarketplacesolutionsorganizationfoundedin1982,with150,000individualand4,000businessmembersnationwide.Links:GreenAmericawebsite,includingCEVBpledgeform.Wealreadyhavepledgesfrom5,000individualswhoarereadytopurchaseCEVBwhentheyareavailable:http://www.greenamerica.org/takeaction/cevb/“FiveEmergingUSPublicFinanceModels:CleanTechEconomicGrowthandJobCreation:”http://www.greenamerica.org/programs/climate/cleanenergy/2009reports.cfm
TheNationarticleonCEVBs:http://www.thenation.com/blog/154560/clean‐energy‐victory‐bonds
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NameofInitiative:PropertyAssessedCleanEnergy(PACE)Summaryincludingprimeobjective(s):PACEisanacronymforPropertyAssessedCleanEnergy.PACEbondsaremunicipalbondsfundedbyprivateinvestorsfortheexpresspurposeofprovidingloanstohomeownerswhowishtofinancecleanenergyimprovementstotheirhomes.Loanpaymentsarecollectedthroughthehomeowner’spropertytaxbill.Thisarrangementisenabledbythecreationoflocalcleanenergytaxdistrictsthatareauthorizedbyalocal,legaljurisdiction(cityorcounty)withinthehomeowner’scounty.ThehomeownervolunteerstobeapartofthecleanenergytaxdistrictbytakingoutaPACEloan.Dozensofcitiesandcountiesin22StatesacrossthenationhavecreatedorwereintheprocessofcreatingsuchdistrictswhenthePACEprogramwasterminatedbyFannyMaeandFreddyMac,underdirectionoftheFederalHousingFinanceAgency(FHFA),whentheyrefusedtohonorthebonds.FHFAwasbeingpressuredbybanksandmortgagecompaniestostopPACEbondsbecausetheloanstohomeownerswouldrequirepropertyliensthatwould,byvirtueofbeingpartofthepropertytax,takecollectionpriorityoverfirstmortgageliens.Intheeventofaforeclosure,propertytaxesowinglegallyhavethepriorityclaimonfundsavailablefromtheforcedsaleoftheproperty.Thus,paymentsdueonthePACEloanwouldbepaidbeforeanyoftheproceedscouldbeappliedagainstthefirstmortgage.Whilethisistrue,theactualpaymentrequiredbythelienisstrictlylimitedtotheunpaidpaymentsdueatthetimeofthesale–notthebalanceoftheloan.Theobligationtopayfuturepayments,notyetdue,ontheoutstandingbalanceofthePACEloanwouldcontinueasalienonthepropertyandbecomestheresponsibilityofthenewowner,justaspropertytaxobligationsdo.Thus,theamountofmoneytobepaidfromforeclosureproceedsonthePACEloanisminiscule.JobcreationandEconomyboostingopportunities:Consideringtheenergysavingsandhundredsofthousandsjobsthatwouldbecreatedonamajorscale‐‐especiallyjobsinthebuildingindustrywhichisnowsufferingfroma20%unemploymentrate‐‐thebenefitsbyfaroutweighthenegligiblepriorityrisk.Theindustrieswherenewjobswouldbecreated‐‐inadditiontotensofthousandsofbuildingtradescontractorsandworkers,‐‐include:notonlythemanufacturing,anddistributionsofbuildingsupplies(insulation,weather‐stripping,windows,roofing,sheetmetal),butalsothemanufacturing,wholesaledistributionandretailsalesofappliancesandheatingandair‐conditioningcomponentsandsystems,Professionals,includingarchitects,energyauditors,contractor‐trainersinenergyefficiencyeffectiveness,bondoriginators,lenders,attorneysandaccountantswillalsoneedmorebusinessasaresultoftheavailabilityofPACEfinancing.Action(s)needed:legislative,administrativeorotherwise:RepresentativesSteveIsrael,(D,NY)andMikeThompson(D,CA)arereportedlyexpectedtointroduceabillthatwilleffectivelyauthorizerestorationofthePACEprogram.AssoonasweknowtheHR#,acampaigntorallybusinessconstituencysupportforthebill,includingaskingtheirRepresentativessignonasco‐sponsorsofthebillintheHouse;andaskingtheirSenatorstosponsora
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correspondingSenateBill,wouldbethefirststep.InadditiontotheWhiteHouse,DOEandTreasuryshouldsupportthebill.Relevantagencies(ifany):DOE,TreasuryLeadorganization:AmericanSustainableBusinessCouncil
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NameofInitiative:GeothermalElectricalProductionfromAbandonedOilandGasWellsSummaryincludingprimeobjectives:Endoildepletionsubsidiesanddesignanappropriatealternatesubsidytoincentoilcompaniesand/orgeothermalentrepreneurstorecycleabandonedoilandgaswellsintogeothermalsourcesforgeneratingelectricity.Thetechnologyiswellknown,theremaybeneedforsomeR&Dworktobringittoscale,plusramp‐upcapital,hencethelogicofsubsidizingitforafewyearswhileittakesoff.Jobcreationandeconomyboostingopportunities:Theadvantagesare:1)Oilcompaniesrealizenewvalueandunforeseen,highlyleveragedreturnsfromanunrealizedassetthatthey’dwrittenoffasworthless.2}Createsnewjobsthatwithlittleadditionaltrainingcanbefilledinpartbyexistingoilcompanyemployeeskills,andreconcilesoilcompanyconcernsaboutlossofjobsfromphasingoutoildepletionsubsidies,3)Generatescleanenergyanddiversifiesoilcompanyenergyportfolios,leadingtoanewenergyeconomy.4)Initiatesatransitionfromoiltoelectricalproduction,whichfortuitouslyparallelstheemergingmarkettransitionoftransportationfuelsfromgasolinetoelectricityinautoandpublictransitmanufacturingindustries.Actionsneeded:DesignanappropriatetaxincentivetoreplaceoildepletionallowancesthatwouldcompensateprivateR&Dandregenerationcostsandmakesitattractiveforoilcompaniestoinvestorco‐investingeothermalelectricalproduction.Relevantagencies(ifany):DOE,EPA(andperhapsTreasury)inconsultationwithoilandgeothermalcompanies).Leadorganization:NewMexicoGreenChamberofCommerce
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NameofInitiative:SavingMoney/GoingGreenforFederalFacilitiesSummaryincludingprimeobjective:MostFederalAgencieshavesweeping,aggressivegoalsandinspiringplansforreducingtheircarbonfootprint.Thereisadesireatthetopandenergyatthebottomofthecommandchaintoachievethesegoals.Themiddlehoweverappearsdedicatedtobusinessasusual,thussuppressinginnovativeapproachesthatsupportgreengoals,loweroperatingcostsandthereleaseofmoniesthatcanbeusedforjobcreationinitiatives.Jobcreationandeconomyboostingopportunities:Considerthefollowingveryspecificscenario:FederalAgenciesconsistentlyinstallnewroofing,donotmaintainthiscapitalassetandthrowitawayonroughlyafifteenyearcycle.Industrydatashowsthat80%oftheroofsreplacedintheU.S.donotneedtobereplacedandcanbemadetolastanother5to15yearswithpropermaintenance.Thecostofthisapproachisabout30‐35%ofthecostanewroof.Theremaining65‐70%ofcurrentroofingoutlays,forexample,couldbeeasilydivertedtocreatetrainingfacilitiesforpreparingworkersfortheburgeoningenergyconservationsectorbeingstimulatedbythesameFederalentities.Thiswouldhelpprovidewell‐trainedpeopletopopulatejobsingreenindustries.Action(s)needed–legislative,administrativeorotherwise:ProjectManagers,ProcurementOfficersandotheragencymiddlemanagersshouldbeencouragedtoenterintotoanentrepreneurialmindsetandbeaharvestingmechanismforground‐levelsmallbusinessinnovations.Manyoftheseinnovationsholdkeystopositivechangebutarebeingsystematicallyignoredbyagencystaffwhoaresimplygoingthroughthemotions,notpickinguptheirphonesandnotfindingtimetoshowupattheexistingvenuestheiragencyofferstoindustriestopresentnewapproaches.Thiswillrequiresystematicchangethatgoesfarbeyondtheexpertiseofthiswriter.Thefirststep,however,istoconcedethatthesystemisbrokenatthemiddleandtheinitiativesfromthetopandtheenergyofdedicatedpeopleatthebottomaresimplybeingfritteredaway.Relevantagencies:Anyfederalagencythatmaintainsfacilities.Leadorganization:AmericanSustainableBusinessCouncilLinks:Gotowww.roofcare.us/federalroofcareandclickontheAmericanSustainableBusinessCouncillinkonthelowerleftsideofthepagetoviewordownloadaslideshow.
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Nameofinitiative:SolarHeatingofCommercialSwimmingPoolsSummaryincludingprimeobjectives:Allowsolarheatingofcommercialswimmingpoolstobeeligibleforthecurrent30percentFederalEnergyTaxCreditasothercommercialsolarpropertyis.Solarpoolheatingisthemostcosteffectiveuseofsolartechnology.Businessessuchashotels,resorts,apartmentcomplexes,homeownersassociations,healthclubs,camps,schools,etc.areperfectcandidatesforsolarheating,sinceownersandoperatorshavenochoicebuttokeeptheirpoolsatacomfortabletemperature.Non‐commercialsolarpoolheatinghasenjoyedasignificantmarketpenetrationtheoverthelast35yearsduetoitssimpleinstallation,easyoperationandrapidpayback.Alackofinfrastructurehashamperedthewidespreaddeploymentofmorecomplexcommercialpools,whichrequireanengineeringsiteanalysisandamorehighly‐skilledlaborforce.Commercialsolarpoolheatingcurrentlymakesuplessthan10%oftotalnationwidepoolheatingshipmentsaccordingtotheEnergyInformationAdministration.Jobcreationandeconomyboostingopportunities:Accordingtothe“NationalSolarJobsCensus2010:AReviewoftheU.S.SolarWorkforce”,thereare93,502solarworkersintheUnitedStates,roughlydoublethenumberestimatedfor2009.Solarjobgrowthin2011isanticipatedtobe26%,representingnearly24,000netnewjobs.ThisexpectedgrowthrateissignificantlyhigherthantheU.S.economy‐wideexpectationof2%growthoverthesameperiod.Asanexample,AquathermIndustriesIncofLakewood,NJ,amemberofASBC,isthelargestUSmanufacturerofsolarthermalcollectorsforheatingswimmingpools.Extendingthetaxcredittoincludesolarheatingofcommercialswimmingpoolswouldenablethemtodoubletheirfactorypersonnel.Bytheverynatureoftheirdesignandshippingconstraints,90%ofsolarthermalcollectorsusedintheUSaremanufacturedwithinourborders.Inaddition,solarcontractorswouldneedtotrainandhireadditionalinstallationpersonnel.Endusecommercialcustomerswouldsavemoneyavoidingfossilfuelusageandcouldspendthesavingsonimprovingtheirbusinesses.Thenationwouldreducedependenceuponfossilfuelscurrentlyusedtoheatcommercialswimmingpools.Apoolindustryresearchanalysisfirmstatesthat63%,or186,641ofthenation’sestimated296,256commercialpools,usefossilfuels(mainlynaturalgas)toheatanestimated27.25billiongallonsofwateronacontinualbasis.Approximately39%,or115,540ofthesepools,areindoor–meaningtheymustbeheatedtwelvemonthsperyear.Inaddition,thereare71,101seasonaloutdoorheatedcommercialpools.
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Assumingnaturalgasisusedtoheatthesepools,theannualloadof261,294,380,000,000BTU’sistheequivalentCO2of6.6millionsofcarsontheroadperyear.Actionsneeded:Needtoamendthecurrenttaxlawtomakesolarheatingofcommercialswimmingpoolseligibleforthecurrent30percentFederalEnergyTaxCreditasothercommercialsolarpropertyis.Leadorganization:AquathermIndustriesInc1940RutgersUniversityBlvdLakewood,NJ08701Links:www.aquathermindustries.comwww.ecosunsolar.comwww.solarindustries.comwww.thesolsticeonline.com
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NameofInitiative:R.E.E.L.–ResponsibleEnergyandEnvironmentalLeadership;GreenCertificationforSmallBusinessSummaryincludingprimeobjective(s):REELisanew,nationalgreencertificationstandardpurpose‐builtforAmericanmicroandsmallbusinesses.REELprovidesacomprehensive,easytouseprogramformicroandsmallbusinessestosavemoney,increasetheirmarketingandsalesreach,andgainbetteraccesstocapitalandcreditbytakingpracticalstepstoimproveenergyefficiency,reducecarbonpollution,usemorecleanenergy,conservewaterandmanagewaste.Thepracticalbusinessinterestsofmicroandsmallbusinesseswouldbealignedwithpublicandgovernmentinterestinbetterenergyandenvironmentalpracticesandperformance.REELisarigorous,objectivestandardthatbuildsoffleadingindustrystandardssuchasISO,GRI,HERSandLEEDtomakethebenefitsofgreencertificationmoreaccessiblemicroandsmallbusinesses.REELisdesignedtointegrateimportantgovernmentstandardssuchasEnergyStaraswellasstateandmunicipalstandardsandincentives.Jobcreationandeconomyboostingopportunities:REELtargetsofnationalusersegmentthatincludesmorethan6millionmicroandsmallbusinesses.OurpreliminaryresearchindicatesthatREELcouldresultinthecreationof1‐4jobsperparticipatingfirm‐throughincreasedefficiency,salesandcapital/creditaccess‐orroughly12millionnewjobsnationwide.Action(s)needed‐legislative,administrativeorotherwise:REEL’sbusinessassessmenttoolandreportinginterfacewouldbenefitfromintegrationwithexistingrelevant,federalprogramssuchasEnergyStar,etc.REELalsoseeksintegrationintocontractorpreferenceguidelinesforthefederalConsolidatedContractorRegistry(CCR)aswellascreditscoringbytheSmallBusinessAdministration(SBA).Theseobjectiveswouldbeadministrativetobeginwithandthenbenefitfromappropriatelegislativeaction.Relevantagencies(ifany):DOE,USDA,EPA,GSA,SBALeadorganization:PurposeNetworks+NewEnergyEconomyLinks:www.reelcertification.org
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NameofInitiative:MaximizingtheEffectivenessandBenefitsofCurrentandUpcomingUnitedStatesElectronicWasteLegislationSummaryincludingprimeobjective(s):Adoptafederalstatutemandatingelectronicwaste.Jobcreationandeconomyboostingopportunities:
• JobCreationinaFastGrowingNewIndustry–NewJobscreated15,817‐31,634by2015and41,025‐82,049by2025
• RawMaterialPreservation–9.6BillionPoundsby2015and25BillionPoundsby2025• ProtectingtheEnvironment–Land,Water,Air• UnitedStatesNationalSecurity–GuaranteedDataDestructionintheUnitedStatesonall
HardDrivesandOtherMemoryStorageDevices
Action(s)needed:legislative,administrativeorotherwise:
• FederalandStateLandfillBansonE‐WasteforAll50UnitedStates• ImposeSignificantPerPoundPenaltywithLandfillBanandProducerResponsibilityLegislation• FederalBanontheExportofE‐WastefromtheUnitedStates• RequireAllU.S.FederalGovernmentDispositionManagerstoUseOnly“Certified”Electronic
WasteRecyclers(Examples:R2,e‐Stewards)• FederalBanontheExportofElectronicWastefromtheUnitedStates
Relevantagencies:− TheWhiteHouseElectronicWasteRecyclingTaskForce− EPA(eCycling)
Leadorganization:ElectronicRecyclersInternational,Inc.Contact:JohnShegerianPhone:559‐974‐8588Email:[email protected]:www.electronicrecyclers.comAssumptions• USpoundsavailablebasedon2006EPAdataforelectronicswastemanagementintheU.S.• 10%annualgrowthratebasedonUSbatteryrecyclinggrowthrates• Assumptionis260,000lbsannualendofliferecyclingperpersonemployedbasedon
electronicrecyclersinternationalactualdata• Currentlyonly10‐20percentofUSpoundsavailablearebeingrecycleddomesticallyinthe
UnitedStates.Thisanalysisisbasedon15%currentrecyclerate• ThisanalysishighlightstheadditionalUSjobscreatedwiththe100%and50%UnitedStates
domesticrecyclerates
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NameofInitiative:BlueGreenAllianceprogramonchemicals,publichealthandgreenchemistry
• • Summaryincludingprimeobjective(s):• • Renewingchemicalindustrymanufacturingjobswhileprotectingtheenvironment• • Jobcreationandeconomyboostingopportunities:• • Thechemicalindustryshed300,000jobssince1992—withemploymentfalling38percent
evenasthevalueofproductionexpandedanaverageof4percentperyear.Onitscurrentpath,theindustryispoisedtolosemorethan230,000jobsoverthenext20years—halfoftheremainingindustryjobs.Withoutreform,theindustrywillcontinuedownitscurrentpath:whichiseliminatingAmericanjobsandminimizinginnovation.
• • However,reformoftheToxicSubstancesControlAct,alongwithcomplementarypoliciesthat
provideincentivestoinvestinsustainablechemistry,educationalprogramsandpublicsupportforresearch,developmentandtechnologicalinnovation,canrightthepathoftheU.S.chemicalindustry.Meaningfulreformofthe1976ToxicsSubstancesControlAct—reformthatencouragesinnovationandcompetitivenessinaglobaleconomythatincreasinglyrequirescleaner,saferproductions—willcreatejobswhileimprovingthehealthofpeopleandthehealthofoureconomy.
• Forexample,ifjust20percentofcurrentproductionweretoshiftfrompetrochemical‐basedplasticstobio‐basedplastics,104,000additionaljobswouldbecreatedintheU.S.economy.
• • Action(s)needed:• • ReformoftheToxicsSubstancesControlActalongwithcomplementarypoliciesthatprovide
incentivestoinvestinsustainablechemistry,educationalprogramsandpublicsupportforresearch,developmentandtechnologicalinnovation
• • Relevantagencies(ifany):• • EPA• • Leadorganization:• • BlueGreenAlliance–www.bluegreenalliance.org
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NameofInitiative:RenewableGreenChemicalProductionTaxCredit(PTC)Summaryincludingprimaryobjective(s):RenewablechemistrystandspoisedtohelpmeetthePresident’sStateoftheUnioncallforaCleanEnergy Mandate that includes, “biotechnology, nanotechnology and advanced materials.” Thesegreenchemicals(advancedmaterialsmadefromindustrialbiotechnology)transformhouseholdandindustrial products into energy efficient, non‐toxic, foreign oil displacing, renewably resourced,economystimulators.Petrochemical,(oilderived)formulationsarethematerialbasisformostofthethingswe toucheveryday. Renewable chemicals (plantderived)havedistinctadvantagesandaremadefromrenewableresourcesinnon‐hazardousindustrialagriculturalprocesses,likefermentation.Theproductstheycreatearebiodegradableplastics,plantbasedpolymers,environmentallybenignsolvents, renewably sourced auto parts, organic cosmetic ingredients, and compostable carpets.Often, since renewable chemicals areproducedat less cost thanpetro‐chemicalswhen they reacheconomiesofscale,thesavingscanbepassedontocustomersbigandsmall.PrimeObjective:Thisyear,wemustenactaRenewableChemicalProductionTaxCredit(PTC),beforetheU.S.losesaprojected$190Billionofthe$1trillionrenewablechemicalmarketproductionoverseas,aswellasallthevaluechainjobsthatgowiththissector.Proposalsummary:WeaskWhiteHouseDirectorsandStaffoftheCouncilonJobsandCompetitiveness,OfficeofPublicEngagement,andtheBusinessCouncil,tosupportaFederal incometaxcreditforUSproductionofrenewablegreenchemicals.ThePTCiscurrentlyunderconsiderationbykeymembersoftheSenateFinanceCommittee(Baucus,Kerry,Bingaman,Stabenow,Grassley,Thune,andSnowe). Inordertokeep the score minimal, the proposal outlines a 5‐year, $500M capped program with generalbusiness tax credits available to a qualified producer for a limited period per facility. In thealternative, a one‐time Final Tax Certificate will be allocated after the construction of a qualifiedfacility and enable a non‐profit entity to pass through a tax payment when tax credits are sold.SimilartoIRCsection48C,TreasuryandUSDAwouldreviewapplicationstoensureconformancewithstatutorycriteriaforjobcreation,GHGreduction,andrenewablefeedstocks.Thisisconsistentwithcurrentlawforrenewableenergyproduction,andwillcreatedefinitiveeconomicimpactinallsectorsandregionsofthecountry.Jobcreationandeconomyboostingopportunities:Intherenewablechemicalindustryoverall,directjobimpactissubstantial.APTCwouldcreateover237,000directjobsintheU.S.Thisrapidlygrowingindustry,in2007,wasestimatedtohavealreadyemployedover5,700peopleat159facilities,andspurredapproximately40,000spinoffjobs.Within
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a single renewablechemicalproduction facilityalone, the localeconomicand jobcreation impactsare enormous: 37‐45 direct jobs with a $60K a year average salary; over $3.6M of municipal taxrevenue;over$2MStatetaxrevenue;$95Mofinitialspendingwithintheregionandannualregionalspending of over $30M. However, unless specific Federal incentives appear, the infrastructureprojects, jobs growth and manufacturing increases will not develop. The industry is too capitalintensiveintheinitialstagestotakerootandtherearenostand‐alonerenewablechemicalincentivesto date. Meanwhile, other countries are offering significant incentives to lure this sought afterrenewableindustryabroad.Proposaloverall:Sincethe1940’s thepetro‐chemicals industrycreatedmultiplesector,aggregateeconomicgrowth.That iswhytheUSDA,DOE,EPAand leadinganalysts identifiedopportunitiestosubstituteexistingpetrochemical‐derivedproductswithbiobasedchemicals.Theysawtheanalogousimpactthegreenchemicals industrywouldhaveintheUS,whileatthesametimeaddressagrowingglobaldemandforsafer,lesstoxicchemicalsandproducts.Benefitsincludethefollowing:
• Createover200,000cleantechmanufacturingjobsintheUSin5–10years;• Ensure global competitiveness in a low carbon, clean tech and innovation economy, with
positiveimpacttotheU.S.tradedeficit;• Increase domestic manufacturing of non‐toxic chemical and consumer products (such as
replacementsforphthalates,suspectedendocrinesystemdisruptors);• Reducerelianceonforeignoilaschemicalfeedstock;• Achieveenergyindependencethroughtechnologythatuses60%lessenergy;• Offerbetterend‐of‐lifeoptionswithcradle‐to‐cradlecompostabilityorrecycling;• CombatclimatechangewithtechnologiesthatsequesterC02;andthus• SignificantlyreduceGHGemissionsby45%andlowercarbonfootprintofmultipleproductsby
atotalof510MtonsofC02.
Action(s)needed:Renewablechemicalsindustrycompanies,andU.S.regionsneedtheAdministrationtohelpenactarenewable chemicals PTC in whatever renewables, clean tech or job creation or tax extenderspackage moves this session. This nascent industry needs tax incentives consistent with thoseprovidedtopetrochemicalcompaniesintheirearlystages,biofuels,wind,solarandotherrenewabletechnologies–ortheUSwilllosejobsandthehistoricopportunitytoleadglobalsustainablechemicalmanufacturing.Relevantagencies(ifany):ForAdministrationsupport:WhiteHouseeconomicagencies,Treasury,USDA,OMB.ForLegislativeAction:SenateFinance,HouseWaysMeans,andJointTaxCommittees..Lead organization: BIO Amber Industrial and Environmental Section, Corinne Young [email protected] Links:http://www.bio.org/www.bio‐amber.com
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NameofInitiative:SustainableBioplasticsSummaryincludingprimeobjective(s):TheSustainableBioplasticsCouncilofMaine,aBangor‐basedtradeassociation,aimstocreatejobsandbusinessopportunitiestomeettherapidlygrowingmarketdemandforbio‐basedplastics.Basedonrenewableresourcesratherthanpetroleum,bioplasticscanmeettheconsumerneedforamoreenvironmentallysustainablematerialatcomparablecostandperformance.Todate,wehaveraisedmorethan$2millioninsupportofresearchanddevelopmentworkconductedbytheUniversityofMaineandlocalmanufacturersto:
• Demonstratethatbioplasticscanbemadecost‐effectivelyfromMainepotatowasteandwoodchips,withtheaimofattractingmajorcapitalinvestmentincommercialproductionofpolylacticacid(PLA),theavailablebioplasticcurrentlymadefromcorn;and
• Developnewvalue‐addedproductsbyblendingthebioplasticPLAwithnanocelluloseandotherbio‐basedmaterialstoimproveitsdurability,strengthandheatresistance.
MaineBusinessBenefitsfromBioplastics.KeyCouncilpartnersinclude:
• Tom’sofMaine,thenaturalpersonalcareproductscompany,inKennebunkandSanford• TrueTextiles,locatedinGuilford,apioneerinthemanufacturerofbio‐basedfabric• AroostookStarchinFortFairfield,amajorsupplierofpotatostarchforbio‐basedproducts• Cerealus,locatedinWaterville,whichisdevelopingnon‐toxic,bio‐basedcoatings• Biovation,whichmakesinfectioncontrolproductswithbio‐polymersinBoothbay• GrowTech,locatedinLisbonFalls,whichprovidesplantgrowthmediasolutions• UniversityofMaine,renownedR&Dleadersinforestandagriculturalbioproducts• EnvironmentalHealthStrategyCenter,amajoradvocateofsustainabledevelopment
JobcreationandEconomyboostingopportunities:Bioplastics:CreatingJobsandBoostingMaine’sRuralEconomy.ThecommercialproductionofPLAfromMainepotatoesandwoodchipswillcreate150newmanufacturingjobs,morethan700relatedpermanentjobsand1,730constructionjobs,accordingtoaneconomicimpactassessmentbytheMargaretChaseSmithPolicyCenterattheUniversityofMaine.Suchinvestmentwouldgenerate$250millioninannualeconomicbenefitstoMaine.SeveralexistingMainemanufacturersandstart‐upcompaniesarealreadybringingnewbio‐basedproductstomarket,withincreasinglikelyjobgrowthandbusinessdevelopment.TheMaineAdvantageintheEmergingBioplasticsMarket.Maine’srichnaturalresourcebaseoffersacompetitiveedgeintherapidlygrowingmarketforbio‐basedplastics.Mainepotatowasteandwoodchipsofferseveraladvantagesovercornasfeedstockforbioplasticsproduction.Theywillnotdisplacefoodcrops.Theharvesthasalowerenvironmentalfootprint,duetocertifiedsustainableforestryandagriculturalwasterecovery.Unlikecorn,theseMainecropsarenotgeneticallyengineered,whichopensupEuropeanandothermarkets.Importantly,the“madeinMaine”brandhasprovenvalueinthemarketplace.
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Action(s)needed:TheSustainableBioplasticsCouncilofMaineseeks$1.75millioninfederalfundstoresearch,developanddemonstratetechnologytoproducePLAfrompotatowasteandwoodchips,andtodevelopnewvalue‐addedapplicationsbyenhancingthetechnicalpropertiesofPLAblends.FromFARM&FORESTtoFEEDSTOCK:DevelopingadvancedtechnologytofermentsugarsfromMainepotatoesandwoodchipstoproducelacticacidResearchersattheUniversityofMainearecurrentlyinvestigatinganenvironmentallypreferableyeastfermentationmethodtoproducepolymergradelacticacid(PGLA)frompotatoandwood‐derivedsugars.PGLAistheessentialchemicalbuildingblockusedtomakethebioplasticPLA.OptimizingyeastfermentationforcommercialscaleproductionrequiresconsiderableR&D.FundingwillsupportnewtechnologydevelopmentattheUniversityofMaineto:
• refineandoptimizethemicroorganismsusedtofermentsugarstoproducelacticacid(inaresearchpartnershipwithabiotechnologyfirm);and
• optimizethepurificationandseparationmethodstocost‐effectivelyproducelacticacid.FromBIOPLASTICtoMARKET:DevelopingnewusesofPLAthroughbio‐basedblendsthatenhanceitsstrength,andresistancetoimpactandheatPLAhasenjoyedinitialmarketsuccessprimarilyforsingle‐usedisposablepackaging(suchasplasticcupsandclamshells)andsomenon‐demandingsemi‐durableapplications(suchasfabricforofficedividersandplasticofficesupplies).Significantfuturemarketopportunityexistsinmorechallenginganddurableapplications.ThetechnicalpropertiesofPLAcanbeenhancedinanenvironmentallysustainablemannerthroughnovelmeltblendswithnano‐cellulose(alsoderivedfromwood),zein(aproteinfromcorn)andotherbio‐basedmaterials.FundingwillsupportappliedresearchthroughcontractswiththeUniversityofMaineto:
• EnhancethedurabilityandheatresistanceofPLAfibersforwovenfabricapplications,suchasseatcovers,furnitureandotherusesintextiles;
• EnhancethestrengthandimpactresistanceofPLAforuseindurablepackaging,suchasbottlecaps,andotherdurableproducts,e.g.plasticenclosuresforelectronics.
TheCouncilwillcooperatewiththefunderandmanufacturingpartnerstodefineandmeetthetechnicalspecificationsforneworemergingapplicationsforthebiopolymer.Leadorganization:SustainableBioplasticsCouncilofMaine,contact:LauraleeRaymond,SustainableBioplasticsCouncilofMaine(207)699‐5791,[email protected],EnvironmentalHealthStrategyCenter(207)561‐9846,[email protected]
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NameofInitiative:ResourceConservationagendaforactionSummaryincludingprimeobjective(s):Weproposeaninterconnectedfour‐partgovernmentstrategyformovingtowardavibrantzerowasteeconomy:•leveltheeconomicplayingfieldsoresourceconservationandwastereductionbusinessescanout‐competewastingindustries,•makemanufacturersshareresponsibilityfortheirproducts,fromcradletocradle,•developholisticresourcemanagementsystems,and•buildthereuseandrecyclinginfrastructureAction(s)needed:LeveltheEconomicPlayingFieldforResourceConservationThepriceswepayformanyofourgoodsandservicesdonotfullyreflectthecostofprovidingthem.Thepricesofvirginmaterialsexcludebillionsofdollarsintaxpayersubsidies.Landfillpricesdonotreflectthecostsoflandfillmaintenancebeyond30years.Renewableenergycreditstotrashburnersputcompostingsystemsatacompetitivedisadvantage.Thefollowingactionscanleveltheplayingfieldbetweenrecyclingandwastingandsendmoreaccuratepricesignalstothemarketplace.
• Identifyandaltertaxpoliciesthatenhancepollutingindustriesandproductsattheexpenseofmoreenvironmentallybenignsystemsandgoods.Shifttaxesfromincomeandlabor(“goods”)toresourcedepletion,wasting,andpollutingactivities(“bads”).
• Endfederalandstatesubsidiesforvirginmaterialsextraction,processing,andmanufacturing.• Eliminateminingbyproducts’exemptionsfromhazardouswasterules.• Makelandfillpricesreflecttheirtruecosts.RevisetheResourceRecoveryandConservation
Act(RCRA)andrevampfederalSubtitleDregulationstorequirelandfillstominimizeairemissionsandprotectgroundwaterresourcesinperpetuity.
• Endsubsidiesforwastingfacilities(suchastaxbreaksprovidedbyprivateactivitybondsandguaranteedmarketsforelectricityfromwasteincineratorsthroughthePublicUtilitiesandRegulatoryPolicyAct).Thisincludesendingrenewableenergytaxcreditsforlandfillsandincinerators;trashisnotarenewableresource.IncentivessuchastheRenewableElectricityProductionTaxCreditandRenewablePortfolioStandardsshouldonlybenefittrulyrenewableenergystrategiessuchaswindandsolar.
• Identifyandimplementmechanismsthatinternalizeenvironmentalandsocialcostsintomarketprices(forexample,mechanismsthatincorporatethecostofdisposalinthepriceofproducts).Nationaladvancedisposalfeesordepositsonproductsaretwooptionsthathaveprovensuccessful.
• Promotefull‐costaccountingtechniquesforevaluatingdiscardmanagementoptionsthattakeintoaccountremediation,contingent,environmental,andsocialcosts.Afull‐costaccountingsystemmightrevealthatthecostofdoingbusinessthetraditionalwayexceedsthecostoflessharmfulalternatives,anditwouldthereforeproviderewardsforalternatives.
• Promotefull‐valueaccountingtechniques.Full‐valueaccountingshouldaccountforthevaluecapturedbythelocalandstateeconomy,suchasrecyclingjobandbusinesscreation,localcommunitydevelopment,anddiversifiedeconomies.
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• Requireadoptionofper‐volumeorper‐weightfeesforthecollectionoftrash.Pay‐as‐you‐throwfeeshavebeenproventoincreaserecyclingandreducetheamountoftrashdisposed.
MakeManufacturersShareResponsibilityforTheirProductandPackagingWasteManufacturedgoodsmakeup73%ofmunicipalmaterialsdiscarded.Extendedproducerresponsibility(EPR),basedonthe"polluterpays"principle,entailsmakingmanufacturersresponsiblefortheentirelifecycleoftheproductsandpackagingtheyproduce,fromcradletograve—orpreferably,fromcradletocradle.Onedrawbackofsometake‐backprogramsistheirpotentialadverseimpactonlocalreuseandrecyclingoperationsandothersmall‐scalebusinesses.Take‐backprogramsmayineffectcreatelongerdistributionlines,concentrateeconomicpowerandproductivecapacity,andfurtheramaterialseconomythatisnotlocallyorregionallybased.Thus,weneedrulesthatmeetthetwinobjectivesofmanufacturerresponsibilityandsustainablecommunitydevelopment.• Provideleadershipinextendingmanufacturers’responsibilityfortheirproductsand
packaging.ReinforceEPRwithinformationandeducationinadditiontolegislationandeconomicreforms.
• Passanationalfivecentfeeonpaperandplasticsingle‐useshoppingbags.• InstituteotherregulatorymechanismsthatembodyEPRsuchasminimumrecycled‐content
standards,secondarymaterialsutilizationraterequirements,andproductbansandrestrictions.Considertake‐backschemesthatwillnothampercommunity‐basedreuseandrecyclingefforts.
• Askmanufacturerstovoluntarilyreducepackagingandmeetminimumrecycled‐contentstandardsforproductsandpackaging(includingbutnotlimitedtowritingandprintingpaper,buildingmaterials,roadconstructionmaterials,andbeveragecontainers)byspecifiedamountsbycertaintargetdates.Ifgoalsarenotmet,institutearegulatoryframework.
• InstituteeconomicmechanismsthatembodyEPR.Theseincludeadvancedisposalfees,virginmaterialtaxes,removingsubsidiesforvirginmaterials,deposits/refunds,andenvironmentallypreferableproductprocurement.
• InstituteinformationmechanismsthatembodyEPRsuchasproductlabeling.Producthazardwarnings,productdurabilitylabeling,productenvironmentallifecycleprofiles,andenvironmentalinformationlabelingwouldhelpcitizensmakeinformeddecisionsabouttheirpurchasing.
DevelopHolisticResourceManagementSystemsResourceconservation,materialsefficiency,wasteprevention,reuse,andrecyclingareallintegralcomponentsofasustainableeconomy.Thefederalgovernmentcantakealeadershiproleininstitutingamaterialsefficiencyandresourceconservationpolicy.
• Connectwasteprevention,reuse,recycling,andcompostingtosustainabledevelopmentinitiativesandagendas.Composting,forinstance,reducesgreenhousegasesfromlandfills,replenishesdepletedsoils,helpsmanageerosionandstorm‐water,reducescropwaterneedsandpesticides,andhelpssoilsstorecarbon–allwhilecreatinglocalgreenjobsandbusinesses.
• Stoporganicmaterialsfrombeingsenttolandfillsandincinerators.Implementnationalincentives,penalties,orbanstopreventorganicmaterials,particularlyfooddiscardsandyardtrimmings,fromendingupinlandfillsandincinerators.
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• Expandrecycledproductprocurementprogramstoenvironmentalpreferableproductprocurement(programs,forinstance,mightencourageprocurementofproductsthatminimizepackagingandmaterialsuse).
• Trackmodelinitiativessothatwecanlearnfromothers.Weneedaformalmechanismformonitoringandevaluatingdevelopmentsinotherplaces,forcodifyingandstoringthisinformation,andfordevelopinginexpensiveretrievalsystemstoallowaccessbyall.
• Developmeasuringtoolstoevaluateprogress.Benchmarksofsuccesscanmonitorimprovementsinwasteprevention,materialsefficiency,recycling,useofrenewableresources,andvalue‐added.
• Educate,educate,educate.Undertakepubliceducationalcampaignstolinkpreventing,reusing,recycling,andcompostingmunicipaldiscardswithitsupstreamanddownstreambenefitsanditsplacewithinasustainableeconomy.
• Tracktheeconomicandenvironmentalimpactsofresourceconsumptionandwasting.Documenttheimpactonindustrialwasteofrecyclingmunicipaldiscards.
• Developanationaldatabase(liketheToxicsReleaseInventory)toreportmaterialsandenergyconsumedandwasted.Requireindustrytoreportwastedmaterials.
• Developanationallabelingsystem,similartothenutritionallabelingsystemonfoodproducts,thatprovidesfactualinformationtothepubliconeveryproduct’s:resourceconsumption,toxicsgenerated,recycled‐content,reusabilityorrecyclability,andgeneralimpactontheair,soil,andwater.
• Appointandfundamaterialsczar(similartothedrugczar)whocanserveasanationalspokespersonraisingawarenessonresourceconservationandwasting.
BuildtheReuseandRecyclingInfrastructureThefollowingpolicieswillhelpdevelopthemeanstoreuseandrecyclediscardedmaterials,furtherstimulatingrecycling‐basedandreuse‐basedeconomicdevelopment.
• Requiredepositsonawiderangeofproducts.Tenstateshavebeveragecontainerdepositlawsandseveralrequiredepositsontires,batteries,andappliances.
• Adoptanationalbeveragecontainerdepositlawthatrequiresahighportionofrefillables.Refillablecontainersaresignificantlymoreenvironmentallyfriendlythanrecyclablecontainers.
• Establishlandfillandincineratorsurchargestofinanceinvestmentinwasteprevention,reuse,andrecycling.Anationaldisposalsurchargemaybeinorder.
• Implementorexpandexistingbuyrecycledprograms.• Launchapublicinformationcampaignthatwillallowconsumerstomakesmartchoiceswhen
makingpurchases.• Fundresearchanddevelopmenttoidentifynewtechnologiesandwaystoturnusedmaterials
intousefulnewproducts.Provideresearchdollarsandsupporttofundboththeupstreamprocessandproductredesigncomponentandthedownstreammaterialhandlingandproductdevelopment.
• CongressshouldrevisetheCommerceClauseoftheU.S.Constitutiontogivestatesandlocalcommunitiesauthoritytobanotherstates’andcommunities’waste(donotaccordwastethesamerespectasotherformsofcommerce).Thiswillforcejurisdictionstofocusonin‐statesolutions.
• Ensureimplementationofthefederalgovernment’sexistingbuyrecycledproduct
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procurementprograms.Developpurchasingguidelinesforallproducts(includingconstructionmaterials)andservicespurchasedbygovernmentalbodiesandtheircontractors.
• Establishanationalrecyclinginvestmenttaxcredit.• Fosterrecycling‐andcomposting‐basedeconomicdevelopmentthroughgrants,low‐interest
loans,andloanguaranteeprograms.LeadOrganization:InstituteforLocalSelf‐Reliancewww.ilsr.org/
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NameofInitiative:UrbanPostConsumerGlassUp‐cyclingJobCreation.Summaryincludingprimeobjective(s):Tokeepglassoutoflandfills,promoteupcyclingforhighervalueproductsandcreatelivingwagegreencollarjobs.Currently,mostrecycledglassintheNewYorkmetroregionisprocessedusingtraditionalmethodsofsortingoutnon‐glassmaterialsandmechanicallycrushingglasswhichproducescullet(recycledglasschipsandgrit)oflowqualityandvalue.Thepresenceofcontaminantsandcolor‐mixinglimitthereuseapplicationsofNewYork’slow‐valuecullet,decreasingtheresalevalueandcreatingundesiredinventoriesofdown‐cycledglassoftenrelegatedforuseaslandfillcoverorroadbedaggregate.IceGlassRecycledGlassProcessingFacilityredefinesrecycledglassprocessingbyemployinginnovativesystemsofglasscollectioncombinedwithcutting‐edgeprocessingtechnologytoproducerecycledglassproductsofahigherqualityandvalueforagreatervarietyofuses.JobcreationandEconomyboostingopportunities:40,000tonglassrecyclingplantproduces40livingwagegreencollarsustainablejobs.Thisglassplantcouldbein20+metroareasacrosstheUS.Action(s)needed:Loanguaranteetopurchaseglassrecyclingproductionlineandfinanceglasscollectionvehiclesandstorage.Relevantagencies(ifany):DepartmentofCommerceEPALeadorganization:Contact:Icestonewww.icestone.biz,t.718.624.4900PeterStrugatz,[email protected]
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SustainableBusinessInitiatives
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NameofInitiative:TheCompanyCreationandCompetitivenessInitiativeSummaryincludingprimeobjective(s):Createanetworkofmanagedbusiness‐creationworkspacesiteswhereotherwiseidleunemployed/underutilizedskilledworkerscangather,worktogetherproductively,andbeaccountableforthecreationofnewinnovationsandventures.
• The“creativedestruction”wroughtbytheeconomicfalloutof2008‐9hascreatedanunprecedentedpooloftalentedbutidlehumancapital.
• Manyoftheunder‐andun‐employedarehardworkersand/orworld‐classthinkers,accustomedtobigideas,goodjobsandengrossingprojects.Others,suchasstudents,areeagerforachancetogrow,earnandcontribute.Together,theyhavethetalent,needanddesiretocreatenewventuresoftheirown,butlackasuitableenvironmentandsupportstructuretodoso.
• Thisinitiativeisbuiltaroundahighlyadaptedandmodernized“businessincubation”modelthatwillleverage,combine,andchanneltheunderutilizedtalentsofthreeclassesofskilledworkerstocreateinnovativenewbusinesses:
o Whitecollarworkersandprofessionals:lawyers,CPAs,administrators,projectmanagers,scientists/researchers,strategists,MBAs,etc.
o Creatives/builders,includingartisans,constructionworkers,writers,filmmakers,freelancers,inventors,craftspersons,hobbyists,etc.
o Collegeandgraduateschoolstudents&graduates25
• Thisnewmodelcombinesthestrengthsoftraditionalbusinessincubators26withprototypingfacilities27,smalllowcostwetlabs/cleanspace28forscientificresearch,andsharedspaceforotherprofessionals29.Byco‐locatingandsociallyengineeringtheseenvironments,allthreetypesofworkerscaninteract,innovate,prototypeandworktogetherwiththesupportofprofessionalfacilitatorsinaseamlessandfocusedfashion.Allfacilitieswillbenetworkedsoresources,tools,andexpertiseatonenetworkfacilitycaneasilyandefficientlybesharedwithanyotherfacility.
25Over317,000waitersandwaitresseshavecollegedegrees(over8,000ofthemhavedoctoralorprofessionaldegrees),alongwithover80,000bartenders,andover18,000parkinglotattendants.Alltold,some17,000,000Americanswithcollegedegreesaredoingjobsthatrequirelessthantheskilllevelsassociatedwithabachelor’sdegree(TheChronicleofEducation:WhyDid17MillionStudentsGotoCollege?October20,2010,RichardVedder.)
‐InFall2010,arecord19.1millionstudentswereexpectedtoattendtheNation’s2‐yearand4‐yearcollegesanduniversities(NationalCenterforEducationStatistics)
26Companiesgraduatingfromincubatorsgenerallyhaveanextremelyhigh80%5‐yearsurvivalrate
27Seeforexampleonly:TechShophttp://www.techshop.ws//3‐Dprinters
28Low‐costplastic“tents”inwarehousespacescanbeusedforresearchspaceascanmodularhardsurfaceset‐ups.
29Seeforexampleonly:Hiveat55:http://hiveat55.com/
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• Imagine:anentrepreneur/researchersurroundedbythetools,expertise,resources,workspaceandteams/heneedstoassesstheviabilityofanidea,getaprojectstarted,andfullydevelopandexecuteabusinessplantolaunchtheircompany.
• Noentrepreneurleftbehindpolicy:failuresarequicklyre‐absorbedintothetalentpool,andaresmarterandbetterpreparedforthenextchallenge(ratherthanabandonedtoatightanunforgivingjobmarket).
• Financiallyviableandintegratedwithactivebusinesses:Anchortenants(eitherexternalorgrowninternally)initiallyselectandmakeprimaryuseoftheprototypingtoolsandhavereadyaccesstotalentofalltypes.Theyalsoprovidearevenuestreamforrentandutilitiesandpayuserfeestheoffsetthecostofthefacilities.Existingbusinessesmaypayafeefor“SWAT‐team”styleanalysesoftheirbusinessbymultipleprofessionals/creativestoincreasecompetitiveness.Prototypingfacilitytechniciansare“forhire”andcandoaprojectvirtuallyforafeeforanyoneanywhereintheworld,whichalsoenablessitesto“share”expensiveequipment.
• EngineeringInteractivity:Nofreeloaders.Professionalsexchangeservicesforworkspace,requiringthemtointeractwithotherworkersandsharetheirknowledge.Entrepreneursandpeopleseekingtocontributetheirthinking/energyeitherfindorareassignedtoteams,andmetricstracktheircontributionstoensurethattheyareinfactactivelyparticipating.
• PrimeObjectives:o Harnesslatenttalentthroughoutthenation;createawaveofentrepreneurialstart‐
upsandaninnovativecreativeclasstoreinvigorateandtransformtheU.S.businessculture
o Constructivelyengageandempowermorethan50millionAmericanswhoareotherwiseunemployed,underemployed,displacedorawaitinggraduation.
o Enablestart‐upstorapidlyandefficientlyassembleprototypesandamanagementteamofdisplacedworkerstohitthegroundrunningandgetacompanystartedwithminimaloverheadcost.
Jobcreationandeconomyboostingopportunities:
o Thisinitiativecouldconstructivelyengageandempoweralargesegmentofthe13.7millionAmericanswhoareunemployedandthemorethan37millionwhoareunderemployed,displacedorawaitinggraduation.
o Generally,traditionalincubatorssupportapproximately20companiesatatime(NationalBusinessIncubatorAssociation).Thismodelincreasesthenumberofcompaniesan“incubator”cansupportbecauseoftheavailabilityofexpertsotherthanincubatorstaff.
o Thisinitiativewillgiveparticipantsrealanddocumentedbusinessexperienceandreferencesthattheycanuseontheirresumestoincreasetheirjobcompetitiveness.Itwillalsohelpskilledworkerskeepcurrentandpracticedintheuseoftheirskills.
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o Thisinitiativecanbeaplacetopilotnewfundingmodels,businessmodels(suchasBcorps),andeconomicdevelopmentmodelsandobtainfeedbackfarfasterthaniscurrentlypossible.
Action(s)needed:legislative,administrativeorotherwise:
o Legislative:PassfederallegislationchangingantiquatedStateunemploymentlawsthatcurrentlybarwould‐beentrepreneursfromstartingnewbusinesseswhilecollectingbenefits..
o Administrative:ChargeleadagencySBAtodevelopimplementationplan,guidelinesandfindwaystoleverageexistingresources(suchasexistingincubatorswillingtousethismodel,economicdevelopmentagencieswillingtosubsidizerentalofspace,etc.)
o Operational:Developbusinessplan,obtainfundingforonepilotprojectinonestatetoassessmodel,identifyissuesandbestpracticesandrefineprogramforlargerrollout.
Relevantagencies(ifany):Leadorganization:NewYorkStateBusinessIncubatorAssociation,AlexBrownstein,J.D.,M.A.
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NameofInitiative:2012“InternationalYearofCooperatives”andothersSummaryincludingprimeobjective(s):
• 2012“InternationalYearofCooperatives”TheUnitedNationsGeneralAssemblyhasdeclaredtheyear2012asthe“InternationalYearofCooperatives.”TheofficialResolutioncallsupongovernmentstorecognizetheimportantrolecooperativesplayinprovidingeconomicopportunityformillionsofpeopleintheUnitedStatesandaroundtheworld.TheU.S.SenatehasrecentlyrecognizedthisimportantdeclarationbyintroducingaSenateResolutionhonoringthe“InternationalYearofCooperatives”thatrecognizesthecriticalrolethatcooperativesplayintheU.S.economy.NCBAbelievesthiswouldbeagreatopportunityforPresidentObamatobecomeengagedinthe2012“InternationalYearofCooperatives”initiativetoraiseawarenessofcooperativesandaddresshowessentialtheyaretotheU.S.economy.
• SmallBusinessAdministrationLendingProgramChangeNCBAisworkingtoclarifythatcooperativesareeligibleforSmallBusinessAdministration(SBA)loanprograms.ManycooperativesaresmallbusinessesbuthavenotbeenabletoaccessSBAlendingprogramsbecauseofconflictingregulationsthathavebeeninterpretedtodenyallcooperativesaccesstotheagency’slendingprograms.Smallbusinesses,includingcooperatives,havebeenhithardbytherecentcreditcrunchandareinneedofaccesstoaffordabledebtfinancing.WhileoneSBAregulationprovidesthatcooperativesareeligiblebusinesses,anotherregulationmakesmanycooperativesineligible.Manylendershaveinterpretedtheseregulationsbroadlyasdenyingaccesstomost,ifnotall,typesofcooperatives.
• HealthCareThe2010PatientProtectionandAffordableCareActcalledfortheestablishmentofConsumerOperatedandOrientedPlans(CO‐OP).TheCO‐OPprogramwouldestablishnewnon‐profithealthcooperativesineachstatethatwouldprovideaviableoptionforhealthcaretomillionsofpeople.NCBAhasbeenworkingdiligentlywiththeAdministration,HHS,CongressandhealthcareleaderstodeveloptheCO‐OPprogramtomakeitasuccessforconsumers.OnApril15,theHHSadvisoryboardreleaseditsadvisoryreportandNCBAsupportstheirrecommendations.NCBAlooksforwardtocontinuingtoworkwithHHSonthisprogram.
• CooperativeDevelopmentActNCBAisworkingwithCongressmanChakaFattahtointroducelegislationthatwouldfocusonjobcreationandeconomicdevelopmentinunderservedareasthroughcooperativedevelopment.
• MemberBusinessLendingIssueTheCreditUnionNationalAssociation(CUNA)isleadingthisinitiativeforCongresstoenactlegislationtoincreasethecreditunionmemberbusinesslendingcapfrom12.25%ofassetsto27.5%forwell‐capitalizedcreditunionsandaddsignificantsafeguardstoensurethatqualifyingcreditunionsdothisadditionallendingsafelyandsoundly.CUNAhasastudyshowingthischangewillleadto108,000jobs.
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Theeffectsofthefinancialcrisisofthepastfewyearshavespreadtoalltypesoflending,resultinginareductionintheavailabilityofbusinesscredit.AtatimewhenbanksarewithdrawingcreditfromAmerica’ssmallbusinesses,creditunionshaveactuallybeenexpandingcredittosmallbusinesses,butwithmorecreditunionsapproachingthecap,thisgrowthisthreatened.Itmakeseconomicsensetorestorecreditunions’fullabilitytolendtotheirbusiness‐owningmembers.ThisapproachhasbeenendorsedbytheObamaadministration.
• TheFoodCo‐opInitiativeTheFoodCo‐opInitiativeisanon‐profitfoundationthatwascreatedtoprovideresourcesandsupportforcommunitiesthatwanttostartnewfoodco‐ops.Theprogramisasupportsystemthatseekstoenableafasterandmoreefficientstart‐upprocesstodevelopnewretailgroceryco‐ops.Theinitiativesupportsfoodsecurity,accesstohealthyfoodsforpeopleofallincomesandfooddeserts.Thereare300cooperativesalreadyinthepipelinewiththisinitiative.
• RuralCooperativeDevelopmentGrantProgram
RuralCooperativeDevelopmentGrantsareawardedunderacompetitiveawardsprogrambytheU.S.DepartmentofAgricultureRuralDevelopment.TheyboostruralAmerica’seconomybyhelpingstartandexpandcooperativebusinesses.Becauseofagrowingneedanddemand,theprogramreceivedan increaseto$11,387,000 inFY10. In therecentpassingof theFY11fullyearcontinuingresolutionbill, theprogramwasfundedat level fundingof$11,387,000.ThePresidenthasrequestedanincreaseinFY12to$12,387,000.
Jobcreationandeconomyboostingopportunities:CooperativesoperateineveryindustrysectorandimprovethequalityoflivesofAmericans,regardlessofpartyaffiliation,geography,ordemographics.AccordingtoarecentstudyproducedbytheUniversityofWisconsinCenterforCooperatives:Thereare29,000cooperativeswith120millionmembersoperatingin73,000placesofbusinessthatholdover350millionmembershipsthroughoutournation.Overall,U.S.cooperativesaccountformorethan$3trillioninassets,over$500billiontotalrevenue,$25billioninwagesandbenefits,andnearlyonemillionjobs.Action(s)needed,legislative,administrativeorotherwise:
• 2012“InternationalYearofCooperatives”NCBAandpartneringcooperativesectorassociationswouldliketohostaneventwithPresidentObamatorecognizecooperativesandtheirroleinjobcreationandeconomicdevelopmentforthecountry.NCBAwouldplantheeventinamannerthatwouldhighlighteffortstosupportthesharedgoalofputtingAmericansbacktoworkandsupportingeconomicgrowth.
• SmallBusinessAdministrationLendingProgramChange
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NCBAwouldrequesttheAdministration’sassistancewithSBAofficialstohelpmakecooperativeseligibletoaccesstheSBAlendingprograms.
Relevantagencies(ifany):SmallBusinessAdministrationLeadorganization:NationalCooperativeBusinessAssociationLinks:www.ncba.coop
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NameofInitiative:GREENTRANSITIONSCOREBOARD®Summaryandprimeobjective(s):TheGreenTransitionScoreboard®(GTS)isatime‐based,globaltrackingoftheprivatefinancialsystemforallsectorsinvestingingreenmarkets.TheFebruary2011updateoftheGTSfindsthatover$2trillionhasbeeninvestedinthegreeneconomysince2007.
Thisamountissignificantbecausemanystudies,computermodelsandreportsindicatethatinvesting$1trillionannuallyuntil2020canrampupmaterialandenergyefficiencies,reducecostsofwind,solar,geothermalandotherrenewableenergy,increasesustainableland‐useandforestry,andsupportsmartinfrastructure,transport,buildingandurbanre‐design.Theupdated2010findingofover$2trillionputsglobalinvestorsandcountriesontracktoreach$10trillionininvestmentsbythe2020.
Toensuremeetingthetarget,institutionalinvestmentfundsneedtoshiftawayfrommorespeculativesectorssuchashedgefunds,oilETFsanddarkpools,andawayfrominvestinginfossilizedsectorstoinvestingatleast10%ofportfoliosdirectlyincompaniesdrivingtheglobalGreenTransition.Local,stateandnationalpensionfundsshoulddolikewise.TheUNPrinciplesofResponsibleInvesting,ofwhichEthicalMarketsMediaisamember,comprisesover800suchinstitutionalinvestorswithassetsundermanagement(AUM)of$25trillion.Globally,theseinstitutionscontrolAUMofsome$120trillion.WiththedataintheGTS,securityanalystscanupdatetheirassetallocationmodelstohighlightgreenmarkets.TheGreenTransitionScoreboard®tracksfivesectors:RenewableEnergy,EfficiencyandGreenConstruction,Cleantech,SmartGridandCorporateR&D.Severalsubsectorssuchasnuclear,biofuelsandcoalcarbonsequestrationhavebeenpurposefullyomittedeitherbecauseofcontroversyorlackofconsensusthattheywillmakealong‐termcontributiontosustainability.EthicalMarketsMediacreatedthisinformationbaseonprivateinvestmentsingreensectorsbecausemanydevelopingcountrieswherethesetechnologiesareofparamountimportancelacktheresourcestocompilethisdata.Greentechnologiesoftendrawonavailablelocalresourcesinamorecostandtimeeffectivemannerthancentralizedfossil‐fueltechnologies.Jobcreationandeconomyboostingopportunities:Announcedtoday,June2,2011,theGlobalSummitonStrengtheningPublic‐PrivatePartnershipsatUNHeadquarters,NewYork,addressthepotentialprofoundhealth,educationandeconomicbenefitsofcooperativeeffortsaroundtheUN's"InternationalYearofSustainableEnergyforAll."MichaelMorris,chairmanandCEOofAmericanElectricPower,chairstheGlobalSustainableElectricityPartnership(formerlythee8).Seethereports"GreenJobs"and"DrivingaGreenEconomyThroughPubicFinanceandFiscalPolicyReform,researchbytheUN'sGreenEconomyInitiative,launchedin2009andkeynotedbyEthicalMarketsMediafounderHazelHenderson.
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TheOECD,ofwhichtheUSAisamember,reportsin"TowardsGreenGrowth”thatgreenpolicycanboosteconomicgrowth.Actionsneeded(Legislative,administrativeorotherwise):
• Transitionpensionfundinvestmentstogreenandsustainabletechnologies • Reducesubsidiestofossilfuelsandnuclearenergy• Supportdevelopmentofgreentechnologiesindevelopingcountries
Relevantagencies:Growingthegreeneconomyisnowasystemic,internationalendeavor,aswellasinvolvingalllevelsofnational,stateandlocalagenciesanddevelopingdeepcollaborationwithnationsandinternationalorganizations.Links:The2011ReportincludesnewsoftwokeystudiesfromMercerinNewYorkandWWF/Ecofys/OMAinAmsterdam.Mercer'sreport,ClimateChangeScenarios–ImplicationforStrategicAssetAllocation,(http://www.mercer.com/articles/1406410)uppedtheante.BackedbyIFCand14pensionfundswithassetsundermanagementofsome$2trillion,thereportcallsfor40%ofinstitutionalfundstoswitchtoward"climate‐sensitiveassets."TheWWF/Ecofys/OMAreport,TheEnergyReport(http://dld.bz/abzYQ),showshowtheglobaleconomycanshiftto"100%RenewableEnergyby2050."Thesestudiesandmanyothersavailableatwww.greentransitionscoreboad.compointouttheabsurditiesofthe90%subsidiesstillgiventofossilfuelandnuclearenergy,decadesaftertheirmaturity,whilerenewablesandefficiencyreceivelessthan5%.Evenmoreabsurdaregovernmentstryingtocapcarbonemissionswhilesubsidizingthem!Globally,twoadditionalstudiesnowindicatethatthegreentransitionhasreachedatippingpoint.TheThreshold21Worldmodelingin"TowardsaGreenEconomy"(http://dld.bz/abzZh)findsthatinvesting$1.3trillionannually(some2%ofglobalGDP)overtenkeysectorscankick‐startthegreentransition,reducepovertyandlimitwastedresources.TheUNEnvironmentProgramandtheWorldMeteorologicalOrganizationissuedaSummary,“IntegratedAssessmentofBlackCarbonandTroposphericOzone,”(http://dld.bz/abzZq)reconfirmingthattheobsessivefocusoncarbondioxide(CO2)anditspricingistoonarrow,andshouldincludesoot,VOCs,methane,mercuryandotherchemicalsfromfossilfuelsharmfultohumansandtheenvironment.
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NameofInitiative:NationalAccountingImprovementsforSustainableEconomicGrowthProspectusonNationalAccountingImprovementsSummaryincludingprimaryobjective(s):Publicpoliciesandsocialoutcomesareprofoundlyshapedbythemeasuresweusetogaugewhatishappeninginoureconomy,society,andenvironment.“Whatwemeasureaffectswhatwedo,”itisoftensaid.Butinrecentyears,punctuatedbytheeconomiccrisisthatbeganin2007,manyhavearguedthatournationalaccountingsystem—centeredonGrossDomesticProduct(GDP)andnowmorethanfiftyyearsold—mustbesignificantlyimprovedtoensurethatthestandardsweusetomeasureeconomicprogressmoreaccuratelyreflectcontemporaryconcerns:theeconomicneedsofhouseholdsandcommunities,broaderstandardsoflivingandqualityoflife,andthecompetitivevitalityandlong‐termsustainabilityofournationaleconomy.Amongagrowingarrayoflargescaleinternationaleffortstoimproveouraccountingsystems(EU,OECD,UN,WorldBank),newdevelopmentsintheU.S.aregainingmomentumaswell,includingBEA’srecentpushfor“GDPandBeyond”‐typeinitiatives(household,energy,oceans,healthcare,R&D),aswellassignificantstateandmunicipalefforts(Maryland’sGenuineProgressIndicatorandtheSTARcommunityindex,amongmanyothers).TheseU.S.effortsareemerginginanincreasinglychallengingeconomicenvironment.Aswemovefurtherintoaneraofhighlycompetitive,knowledge‐basedgrowth,manyconstituencies,includingbusinessadvocates,educators,socialpolicyadvocates,communitydevelopers,thecharitablesector,andthepublicsector,aregoing“beyondGDP”intheirstrategiesforsuccess,withgreaterneedfornewaccountingframeworkstomeasuretheintangible,non‐market,andsustainablesourcesofgrowththatincreasinglydriveoureconomyandaremoreandmorecriticalformaintaininghighlivingstandards.Fromtechnologicaladvanceandfirm‐levelinnovationintangibles,tohumancapitalinvestmentbyfamiliesandeducationsystems,toproductivity‐enhancinginfrastructureandothercommerciallymeaningfulpublicgoods,tothepotentiallyvastnewmarketsopeningupforcleanenergyandgreentechnologies—thesourcesofgrowthareshiftingandsotooarethenationalaccountingneedsofdiversecommunitiesandinterestsaswellasthecountryasawhole.Policyrecommendations:Inthenear‐to‐mediumterm,werecommendnewaccountinginitiativesinseveralmajorareas,probablyinsomethinglikethisorderofpriorityforimplementation.Webelievetheseprioritiescouldhaveverybroadappealinaneraofgrowingconcernabouthouseholdeconomicconditionsandthestrugglesofthemiddleclass,ontheonehand,andnationalcompetitiveness,particularlyinrelationtoeducation,health,technologicalinnovation,andtheemergingknowledgeeconomy,ontheother.
• HouseholdEconomicConditions:BuildingonthemanyexcellentfeaturesofBEA’snewhouseholdsub‐accounts(“EverydayEconomics”);wewouldliketoseecontinuedprogressinexpandingandrefiningthehouseholdfocus,including:o Medianhouseholdincome,consumption,andwealthmeasurescomparabletoaverage
measures;
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o Ajointmedianlivingstandardmeasurecombininghouseholdincome,consumption,andwealthposition.
o Refinementofrealincomemeasurestoincorporatepricedatarelevanttodifferentincomegroups;
o Developmentofeconomicsecurityindicators,particularlytotrackchangesinhouseholdrisk‐loadsrelatedtojobsecurity,consumerdebt,healthcare,andpensionspolicy.
• EducationCapitalandHealthCapital:Thesetwoareas,withacombinedshareofGDPatroughly
25percentby2019,areespeciallyconcerningforAmerica’scompetivenessandbusinesssuccessintheglobaleconomy,butourknowledgeislimitedbylargeaccountinggaps.Asiswellknown,thisislargelyaproblemof“non‐marketaccounting”—thatis,accountingforgoods,services,andwealththathavenodirectmarketpricesandyet,atthesametime,oftenhavesignificantdirectorindirectimpactsoneconomicgrowthaswellasbroadersocialwelfare.Weclearlyneednewnationalaccountingtoolstohelpusmeasuretheeffectivenessofoureducationandhealthspending,input‐to‐output,aswellasthelargerbenefits—thatis,theaddedvaluethatmaybeattributabletopublicspendingintheseeconomicallysignificantareas.
• OutputofGovernmentServicesandInvestment:(non‐healthand‐education):Withmounting
fiscalpressuresandincreasedpoliticalscrutinyofgovernment‐providedservicesandspending,thereisamoregeneralneedforpublicoutputaccountingbeyondeducationandhealth.Otherpriorityareasmightincludesocialassistance,infrastructure,researchanddevelopment,environmentalprotection,naturalresourcemanagement,recreation,andartsandculture.Aswithhealthandeducation,GDPcaptureswhatgovernmentsarespendingintheseareas,butnotwhatwearebuyingandthepotentiallysignificantaddedvaluebeinggeneratedbytheseinvestments,forexamplethroughsuccessfulwelfare‐to‐workprograms,or,say,aproposed“ManhattanProject”forcleanenergydevelopment.
Furtherpriorityareasinclude:
• Economy‐wideTotalFactorProductivity• HouseholdProductionAccounts• Non‐profitSectorInputsandOutputs
Actionsneeded/recommended:
• RegularWhiteHouseengagement/alignment‐buildingwithstakeholdercoalitionfornewaccounting(buildingthiscoalitionthroughanewCharterforMeasuringProgressintheTwenty‐FirstCenturyisacentralgoalofDemos’workinthisarea)
• CreatinganinterdepartmentaltaskforceorplanninggroupintheWhiteHousetocoordinateinternalsupportfornationalaccountingimprovements
• Advancingnewproposalsinthebudgetprocessandapplyingpressureforappropriations• Raisingtheprofileofnationalaccountingneedsinspeeches,keyreports,andother
communicationsrelatedtocompetitivenessstrategy,economicpolicy,andgovernmentreorganizationefforts.
Leadorganization:LewDaly‐Dēmos2205thAvenue,#2NY,NY,10001,[email protected]
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NameofInitiative:TeleworkandRemoteWork:UsingBroadbandtocreatejobs,reduceourenvironmentalimpactandmakeAmericanbusinessmorecompetitive.Summaryincludingprimeobjective(s):Thecurrentstateofworkisoutmoded–mostbusinessesarestilllocation‐based,relativetothelate1800sto1970sindustrialmodelwherepeoplereportedtothefactoryandassemblylineeachday.Astheeconomyshiftstoservice/knowledgeworkersintheU.S.,itisimperativethatwealsoshiftthewaywework.Commuting,airtravel,transportation&buildings=75%ofourcarbonoutput,altogether,workrelatedactivityisover95%ofthetotalcarbonoutput.Atthesametime,thesocialimplicationsarehugefordistressedandremotecommunities,aswellasthe20+millionindividualswithhandicapsthatdonotworkregularlyduetoaccessissues.Atthesametime,over85%ofthecountryispassedbybroadbandandtheknowledgeworkeristhecovetedpositionofthefuture.TheFederalGovernmenthasrecognizedthistrend,withthepassageofH.R.1722,theTeleworkEnhancementActof2010–thislandmarklegislationchampionedbytheObamaAdministrationincreasesgovernmentteleworkersfromhundredsofthousandstomillionsinthecomingfewyears,drasticallyloweringcosts,realestate,environmentalimpact,allwhilemakinggovernmentjobsopentothosewhocandothework,notjustshowupatthebuildings.Afocusmustbeappliedtothetelecomcarrierindustry‐thetelecomindustry($2Trillionannualrevenuesglobally,morephonesthanpeoplenowonearth,3%ofglobaleconomy)isbasicallyarelativebystanderintheefforttocurbclimatechangeandspursocialchangethroughthebroadbandsuperhighway.TheFederalGovernmentisinapositiontogobacktotherootsofthetelecomsindustry,togobacktotheCommunicationsActof1934anddemandthatthese“commoncarriers”,thesecompaniesthatarelicensedtoprovidetheseservices,actinthepublicinterest.Thatspiritisstillaliveinthefederalandstateregulationsthatapplytotelecomcarriers,itjustneedstobeappliedtoanewandmodernviewofsocietyandthishugeindustrythatnowtouchesmostpeopleonearth.Jobcreationandeconomyboostingopportunities:3%oftheU.S.workforcetelecommutesamajorityofthetimetoday…whatif50%whocandidsomorethan½thetime?
• Wesave453millionbarrelsofoil• EnvironmentalImpact=15millioncarsofftheroad• Businessessave$400billionannually,abilitytohiremorepeople• 150Kpeople/yearsavedfromtraffic‐relatedinjuryordeath• Annualeconomicbenefit=$800billionayear–abilitytohiremorepeople
Source:TheTeleworkInstituteAction(s)needed:Legislative,administrativeorotherwise:
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• TheFCCandtheNTIAneedtotakeamoreproactivestancetowardsthetelecomindustryandprovideguidanceastohowtheindustrycansheditsmonopolisticandconservative(notpoliticalconservative)approachtoservingcustomers.Theseagenciescanhelpteachtheindustrytobecomealeaderinsteadofalaggardintheareasofsocialandenvironmentalchange,tobecomeajobsengine.
• InfluencingthestatePublicUtilityCommissionstofollowsuit• WorkingwiththeDepartmentofCommercetodevelopnewmodelsforengagingbusinesses
ofallsizesinchanginghowwework,usingmorebroadbandandlessofallothermeans–lesscost,lessimpactontheenvironmentandagreaterreachtopeopleandcommunitiesinneed.
• DepartmentofEducation:Weneedamoreapprenticeshiptypeofapproachthatispragmatictowardsgettingpeopletrainedandinbroadbandjobs‐‐thetraditionalapproachtoeducationisnotworkingandistoobigtobetackledintheshortterm,weneedtogetpeopledengagedandtrainedasknowledgeworkers,whichdoesnotrequireaK‐8,highschoolandcollegeeducation,weneedarealisticapproachthatprovidesbasiccomputerandsocialskillstoworkinthebroadbandeconomy.
Relevantagencies(ifany):FCC,NTIA,DepartmentofCommerce,DepartmentofEducationLeadorganization:NTIALinks:TheEconomicsofWorkplaceFlexibility–WhiteHouseCouncilofEconomicAdvisorshttp://www.whitehouse.gov/blog/2010/03/31/economics‐workplace‐flexibilityTheTeleWorkExchange:http://www.teleworkexchange.com/Citrix–WorkshiftingBenefits,theBottomLine:http://www.techsoup.org/learningcenter/networks/page12854.cfmCisco,“IstheOfficeReallyNecessary?”http://newsroom.cisco.com/dlls/2010/prod_101910.htmlBetterWorldTelecom,BetterWorkFrameworkDevelopedwiththeBainbridgeGraduateInstitutehttp://www.betterworldtelecom.com/commitment/betterwork.php
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NameofInitiative:TheGreenEconomyInitiative,andtheRio+20Summit(UNConferenceonSustainableDevelopment;June2012)Summary–internationalpoliticalbackground:June2012willbethe20thanniversaryoftheprecedent‐setting“EarthSummit”[UNConferenceonEnvironmentandDevelopment]whichlaunchedinternationalpolicyactiononabroadrangeofenvironmentalissuesandattemptedtointegratethosegoalswithsocialandeconomicpriorities.Sincethen,theinternationalsustainabledevelopmentagendahasexperiencedsignificantsuccessesbutalsoencounteredsignificantobstacles,nottheleastofwhicharethoseposedbythe1990seconomicglobalizationmovementandthe2008‐09globalfinancialcrisis.AgreeingtoaproposalbythegovernmentofBrazil,theU.N.hasdecidedtoholdareviewconferenceonsustainabledevelopment,againinRio,in2012.It’sbeengiventhemajorthemeof“TheGreenEconomy,inthecontextofSustainableDevelopmentandEradicationofPoverty”–anattempttobalancethecompetinginteresttheemphasizingtheeconomicvalueof‘green’policies(primarilyadvocatedbytheEU)andtheconcerns[ofdevelopingcountries,supportedbymanyNGOs]thattheprinciplesofsustainabledevelopmentnotbeobscured,thatgreenpoliciesnotbecomeapretextforconstructingtradebarriersagainstpoorercountries,andthat‘greenlabeling’notbeutilizedimproperlybybusinessesfor‘greenwashing.’The2012Summitprovidesthepossibilityofrevitalizingtheimageofsustainabledevelopmentandre‐invigoratingthemovementtowardssustainableeconomies.Thefocusona‘GreenEconomy’providessignificantopportunitiestoexpandparticipationtomajoractorsintheeconomicsector–multinationalcorporations,smallandmediumcompanies,IFIs,andtrade‐orientedIGOs–butalsopresentssignificantchallengestoproperlydefineforgovernmentsandthepublicpreciselywhataGreenEconomymeans.Therapidlyincreasinginternationalmarketinterestingreeninitiativesandthevolumeof‘green’advertisingindicatesthatinvestmentinandpolicyimplementationofgreeneconomyprinciplesiscriticaltoeconomiccompetitiveness,notonlyofindividualcompanies,butofthebroaderU.S.economy.DomesticpoliticalandpolicycontextTheGreenEconomymodelholdstremendouspotentialtobringtogetherthesimultaneousneedsforeconomicsecurityandenvironmentalprotection,andtointegratethecomplexarrayofreformsinpolicyinitiatives,regulatoryactions,voluntarybusinessstandardsandpersonallifestylebehaviorsnecessarytoachieveimmediate‐,mid‐,andlongrangetransitiontoasustainableglobalsystem.ButtheGreenEconomy’sgreateststrengthmaybeitspowerasacommunicationstool–itsabilitytocommunicatethatenvironmentally‐friendlypoliciescanbejobs‐friendlypolicies,andtohelpvisualizeapositive,attractive,achievablevisionofwhatagreensocietyandagreeneconomycouldlooklike.Itcouldselltheideathatgreencommunitieswouldbeeconomically‐thriving,livable,healthypeopleforindividualsandtheirfamiliestolive.Actionsneeded:
• Endorsement,participationandpubliccommunicationsbytheWHandDept.ofState.
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• Strategicpolicyreviews,participationandconstituentoutreachby DepartmentsofCommerce,Labor,Agriculture,Transportation,U.S.TradeOfficeLeadorganizations:UnitedNationsDepartmentofEconomicandSocialAffairs[DESA]http://www.uncsd2012.org/rio20/?menu=40AmericanSustainableBusinessCouncilwww.asbcouncil.org–organizing“greeneconomybusinesses”forparticipationinRio+20Summit.WecanalsocommittoprovidingtheAdministrationwiththemanysuccessstoriesofAmericanbusinesses,asanexampleofournation’sinnovativegreenbusinesscommunityJobcreationandeconomyboostingopportunities:OneofseveraleffortstodefineandadvocatetheneedforaGreenEconomyistheUNEPGreenEconomyInitiative.TheUNEPreportprovidesanextensiveanalysisandpolicyframeworktochartthefeasibilityandparametersofaninternationaltransitiontoagreeneconomymodel.[TowardsaGreenEconomy‐PathwaystoSustainableDevelopmentandPovertyEradication;January2011]TheUNEPReportshowsthatthegreeneconomymodelisexpectedtogenerateasmuchgrowthandemployment–ormore–comparedtothecurrentbusiness‐as‐usualscenario,anditoutperformseconomicprojectionsinthemediumandlongrange,whileyieldingsignificantlymoreenvironmentalandsocialbenefits.Itdemonstratesthat“thegreeningofeconomiesisnotgenerallyadragongrowthbutratheranewengineofgrowth;thatitisanetgeneratorofdecentjobs,andthatitisalsoavitalstrategyfortheeliminationofpersistentpoverty.”Thereportalsoseekstomotivatetheenablingconditionsforincreasedinvestmentsinatransitiontoagreeneconomy.AmongtheReport’sprimaryconclusionsarethat:
• Investing2%ofglobalGDPannually(currentlyapprox$1.3trillion)betweennowand2050intotenkeysectors(agriculture,fisheries,andforests;energy,water,andwastemanagement;manufacturing,construction,transportationandtourism)canfast‐startatransitiontowardsalow‐carbon,resource‐efficienteconomy.
• ItalsoproducesahighergrowthinGDPandGDPpercapita.TheReport’sgreeninvestmentscenarioachievedhigherannualgrowthratesthanabusinessasusualscenariowithin5‐10years,characterizedbyasignificantdecouplingfromenvironmentalimpactswiththeglobalecologicalfootprinttobio‐capacityratioprojectedtodeclinefromacurrentlevelof1.5tolessthan1.2by2050–asopposedtorisingbeyondalevelof2underbusinessasusual.
• Thegreeninvestmentscenarioisprojectedtoreduceenergy‐relatedCO2emissionsbyaboutone‐thirdby2050comparedtocurrentlevels,withatmosphericCO2heldbelow450ppmby2050.
• Agreeneconomycancontributetopovertyalleviation,bothbecauseofjobcreationandduetobenefitflowsfromnaturalresourcesthataredirectlyutilizedbythepoor.Particularlyinlowincomecountries,whereecosystemgoodsandservicesarealargecomponentofthe
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livelihoodsofpoorruralcommunitiesandprovideasafety‐netagainstnaturaldisastersandeconomiccrashes.
• Newjobswillbecreatedinagreeneconomytransitionwhichovertimeexceedthelossesin“browneconomy”jobs.Thisisparticularlynotableintheagriculture,buildings,energy,forestryandtransportsectors.
• ReformingcostlyandharmfulsubsidiesinallsectorswillopenfiscalspaceandfreeresourcesforaGEtransition.Removingsubsidiesinenergy,water,fisheriesandagriculturesectors,alone,wouldsave1‐2%ofglobalGDPayear.
• Usingfinancialincentives,taxesandtradablepermitstopromotegreeninvestmentandinnovationisessential,butsoisinvestingincapacitybuilding,trainingandeducation,andstrengtheninginternationalgovernanceandglobalmechanismsthatsupportatransition.
• Financingrequiredforagreeneconomictransition,whilesubstantial,islessthanonetenthofannualglobalinvestment.(2%ofglobalGDPisrequiredundertheUNEPmodel,whiletotalgrosscapitalformationwas22%ofglobalGDPin2009).
• Globally,newinvestmentincleanenergywasexpectedtoreacharecordhighof$180‐200billionfor2010,upfrom$162billionin2009.However,cleanenergygrowthisincreasinglydrivenbydevelopingnations(e.g.ChinaandBrazil)–soU.S.businessriskssquanderingaleadershiproleinapotentiallyboomingeconomicsector(non‐OECDcountriesshareofglobalinvestmentinrenewablesrosefrom29%in2007to40%in2008.)
UNEPGreenEconomyReport[626pages]–http://www.unep.org/GreenEconomy/Portals/93/documents/Full_GER_screen.pdfSynthesisforpolicymakers[40pp]–http://www.unep.org/greeneconomy/Portals/88/documents/ger/GER_synthesis_en.pdfSummaryofconclusions[2pages]–http://www.unep.org/greeneconomy/Portals/88/documents/ger/GER_summary_en.pdf
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HealthcareInitiatives
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NameofInitiative:SmallBusinessHealthInsuranceCo‐opsSummaryincludingprimeobjective(s):TheAffordableCareAct(ACA)requiresthateachhealthinsuranceexchangeforstatesincludeaCO‐OPforindividualsand/orsmallbusinesses.Thepurposeistogeneratemorecompetitionwithintheexchangeswiththehopedforresultofdownwardpressureonrates.Giventheimportanceofaffordablehealthinsurancetosmallbusinessesfortheirabilitytoattr4actexperienced/skilledlabor,theeconomicdevelopmentaspectofCO‐OPScannotbeunderestimated.UnfortunatelytheprocessofdevelopingaCO‐OPistimeconsumingandexpensive.Fewstateshavethenon‐profitbusinessorganizationsinplacewiththeabilitytopushforwardwiththefeasibilitystudyneededtopursueaCE‐OP.Andevenifthisphaseoftheprocesswasconcluded,thefundingundertheACAforcreationofCO‐OPSisintheformofloansthatwillfurtherdissuadenon‐profitsfromaddressingthisneed.Alternatively,statesthatalreadyhaveself‐insuredgovernmentemployeehealthplanscouldexpandtoaddressasmallbusinessCO‐OP.Stateswouldhavethefinancialresourcesforbothafeasibilitystudyandtheprospectsofaloanwouldnotbeadeterrent.Unfortunately,manystatesareunlikelytotakethisapproachgiventheiroppositiontotheACA.ThesesamestatesthatwillrefusetoestablishastateexchangethemselveswillalsocomplicatethefederalgovernmentmeetingtheACArequirementofaCO‐OPineachstate.Action(s)needed‐legislative,administrativeorotherwise:Relevantagencies(ifany):WhiletheU.S.DepartmentofHHSistheprimaryagencyfortheACAimplementation,othereconomicdevelopmentagenciesconcernedaboutsmallbusinessdevelopmentshouldbeengagedintheproblemsolvingprocesstoaddressthisproblem.Leadorganization:AmericanSustainableBusinessCouncil
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NameofInitiative:EnvironmentallySustainableHealthcareIndustrySummaryincludingprimeobjective(s):Workingtogetheronacleaner,greenerhealthcareindustryH‐CAP,SEIU,PracticeGreenhealth(PGH)andHealthCareWithoutHarm(HCWH)havebeenworkingtogetherwithemployersandunionstocreateamoreenvironmentallysustainablehealthcareindustry.BasedonourrecentworktogetheronaDepartmentofLabor(DOL)AmericanRecoveryandReinvestmentActEnergyTrainingPartnershipgrant,wehaveseenoutcomesthatsupportatriplebottomlineforthe11participatingemployersalongwithactiveengagementbySEIUunionsin4regionsaroundthecountry.Inslightlyoverayearwehaveaccomplishedthefollowing:
1. Trainedcloseto2000environmentalserviceworkersandsupervisorsintheprinciplesofgreencleaning,HospitalAcquiredInfectionreduction,wastereduction,energyandwaterreduction,andworkerhealthandsafetyasitpertainstoenvironmentalsustainability.
2. Trainedmorethan70workersandsupervisorsaspeertrainerstosustainongoingenvironmentalsustainabilityefforts.
3. SeenimprovementsinPressGaneyscoresinatleastonehospitalwithexpectedimprovementsinothers.
4. Seensavingsfromimprovedrecyclingeffortsandcleaningchemicalconsolidationintwohospitalswithothersnowbeginningimplementation.
5. Seengreaterworkerengagementandroleperceptionaspartofthepatientcareteam.6. Improvedlabormanagementrelationships.7. Begunlabormanagementdiscussionsandbargainingforthecreationofanewpositionwith
promotionalpossibilitiesforworkersintheenvironmentalservicesdepartment.
Thetwotypesofprojectsthathavemostengagedworkersandtheiremployersare1)usingthegreeningand/orimprovementofthecleaningprocessasawaytoreducehospitalacquiredinfection;and2)thereductionofwastealongwithbettersegregationofinfectiouswastestreams.Thefirsttypeofprojectsupportsworkerunderstandingoftheconnectionbetweencleaninganddisinfectingandhandwashing.Accompanyingcurriculuminstructsworkersontherationalefortheuseofdifferentchemicalsandcleaningtechnologies.Webelievetheselaborandmanagement‐ledprojectscombinedwithourhigh‐qualityeducationalprogramsarecreatingaworkforcethatwillhaveasignificantimpactoninfectionpreventionandwillresultinaworkenvironmentthatisbeneficial.Ourprogramsarehavingotherlastingeffectsonparticipatingfacilities.Theuseofgreenerproductsandtechnologiescontributestoareductionoftheincidenceofasthmaandotherpulmonaryconditionsforworkersandpatientsalike.Jobcreationandeconomyboostingopportunities:
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Ourwastereductioneffortscreateemploymentandtrainingopportunitiesforthousandsofserviceworkers.Thisworknotonlycutscostsfortheindustry,butalsoreducesinfectiouswasteandtrashandminimizestheirimpactontheenvironment.Action(s)needed:Webelievethisworkcanbetakentoscaleandsupporthealthierpatientoutcomesandenvironmentalsustainability.Todosoweneedbroadercollaborationonbothresearchandreplication.Wewouldliketoworktogethertoencourageuseofgreenerproductsandtechnologiesandcreatemoreenvironmentalpositionsinhealthcare.Relevantagencies(ifany):DepartmentofHealthandHumanServicesDepartmentofLaborEnvironmentalProtectionAgencyOSHALeadorganization:HealthCareWithoutHarmPracticeGreenhealthLinks:www.noharm.orgwww.practicegreenhealth.org
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NameofInitiative:WorkplaceHealthInitiativeSummaryincludingprimeobjective(s):
• Toinvestigatewhethertheworkplaceequivalentof“recess”willprovidetheincreasedproductivityandimprovedhealththatrecesshasbeenfoundtoprovideforelementaryschoolstudents.
• Toencourageinsurancepremiumdiscountsorotherincentivesforemployerswhoprovide“recess”timesforemployeesonadailybasis.
Jobcreationandeconomyboostingopportunities:Itisexpectedthatthiswouldprovideaddedproductivityforemployersinvirtuallyeverysegment,andreducedhealthcarecosts.AsreportedinlateMay,thesedentarynatureofcontemporaryemploymentislikelytoplayalargeroleintheincreasedrateofobesityamongadultsintheUS.Infact,thedecreasedcaloriesconsumedthroughthedecreaseofnatural“exercise”ofmostAmericanjobscorrelatespreciselywiththeincreaseinobesityrates.ImprovingAmericanshealththroughworkplaceexerciseneednot,however,beconstruedas“costing”employerssincethedatarelatedtoincreasedconcentrationondaysofexerciseisquiterobust.Dataonschoolchildrenindicatesthatevenrelativelyshort“recess”periodsresultsinmoreontasktimeandlessfidgeting.Recessconstitutesabreakfromtheday'sroutine,whichhasbeenshowntoincreasesatisfactionandalertnessinpeopleofallages.Experimentalresearchonmemoryandattention(e.g.,Toppino,Kasserman,&Mracek,1991)foundthatrecallisimprovedwhenlearningisspacedratherthanpresentedallatonce.Thesefindingsarecompatiblewithwhatisknownaboutbrainfunctioning:thatattentionrequiresperiodicnovelty,thatthebrainneedsdowntimetorecyclechemicalscrucialforlong‐termmemoryformation.Theexpectationisnotforjobcreationsomuchasforincreasedproductivityandhealth.Action(s)needed:InitialdemonstrationgrantswouldbeneededRelevantagencies(ifany):DepartmentofEducationandDepartmentofHealth&HumanServicesLeadorganization:IntegratedHealthcarePolicyConsortium
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ReferencesJarrett,O.S.,Farokhi,B.,Young,C.,&Davies,G.(2001).Boysandgirlsatplay:Gamesandrecessatasouthernurbanelementaryschool.InS.Reifel(Ed.),PLAYANDCULTURESTUDIES,VOL.3:THEORYINCONTEXTANDOUT(pp.147‐170).Westport,CT:Ablex.Jensen,E.(1998).TEACHINGWITHTHEBRAININMIND.Alexandria,VA:AssociationforSupervisionandCurriculumDevelopment.ED434950.Toppino,T.C.,Kasserman,J.E.,&Mracek,W.A.(1991).Theeffectofspacingrepetitionsontherecognitionmemoryofyoungchildrenandadults.JOURNALOFEXPERIMENTALCHILDPSYCHOLOGY,51(1),123‐138.EJ429022.
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NameofInitiative:ComprehensiveHealthPromotionInitiative Summaryincludingprimeobjective(s):TobringintegrativehealthcareinserviceofhealthpromotiontoFederallyQualifiedHealthCentersJobcreationandeconomyboostingopportunities:
• PhaseOne(1year)–SmallteamtodevelopGuidelinesforFQHCsrecredentialing,referring,integratingcomplementaryandalternativeprofessionalsintoFQHCservicedelivery.(FTE4)
• PhaseTwo(3years)–3‐10demonstrationprojectsintegratingcomplementaryandalternativehealthcareintobothurbanandruralFQHCsfocusingonattentiontospecificpreventionandtreatmentneedspresentinginhighnumbersatFQHCs,e.g.depression/anxiety/additionsyndromes,hypertension,obesity.(15‐50FTE)
• PhaseThree–Adoptionofsuccessfulmodel(s)intoFQHCs.(2‐4FTEsperFQHCX1,046currentFQHCs=2092to4184FTEs.Thisfigurecouldbedecreasedbythenumberofotherprovidersrenderedunnecessarybyvirtueofactualdiseaseprevention,althoughtheassumptionisthatthiswouldmorelikelyleadtoanexpandedpatientcapacity.)
Action(s)needed:
• IncentivesfromHRSAtoprovideeducationtoFQHCstaffregardingappropriatereferralpatternsforacupuncture,massagetherapy,chiropracticandnaturopathicmedicine.
• GuidelinesrecredentialingandsupervisionoftheseprofessionswithinanFQHCRelevantagencies(ifany):HRSA;perhapsCMSifreimbursementstructureweretobechangedLeadorganization:PhaseOnecouldbedonethroughacontractwiththeIntegratedHealthcarePolicyConsortium,theSamueliInstitute,oranotherappropriateorganization.LaterphaseswouldbehandledbyHRSAwithconsultationasappropriate.
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NameofInitiative:HealthImpactScoresSummaryincludingprimeobjective(s):InamannersimilartoCBO’sCostImpactScores,IHPC’sHealthImpactScoreswouldprovidelegislatorswithanestimationofthelikelyimpactonthehealthofthenation(and/orspecificpopulations)ofproposeddomesticpolicyinitiativesintheareasofagriculture,education,energy,andthelike.ThesescoreswouldsupporttheworkoftheNationalPrevention,HealthPromotionandPublicHealthCouncilaswellasothereffortsoftheAdministrationtofoster“integratedpolicy”regardinghealth.Jobcreationandeconomyboostingopportunities:Theeffortitselfwouldemployaverysmallnumberofhealtheconomistsandsociologists.However,theeffectsofthescorescouldbetoenlargesectorsoftheeconomythatsupportourcollectivewell‐being(e.g.cleanenergy).Action(s)needed:ThesescorescouldbedevelopedbyCBO,whichwouldrequireabroadeningoftheircharter;orbyanindependentbody.Leadorganization(s):IntegratedHealthcarePolicyConsortiumhttp://ihpc.info
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CreatingJobsand
BuildingaSustainableEconomyTosupporttheseand/ortosubmitadditionalideas–pleasecontactpolicy@asbcouncil.orgTheAmericanSustainableBusinessCouncilprovidesmanypathstogetinvolved.Participationdependsonwhatkindofentityyourepresent. Partnership—forassociationsandorganizationsofbusinessentitiesandindividualbusiness
owners,executives,andinvestors.
BusinessSupporters—forindividualcompaniesorenterprises
Individuals—interestedindividualsshouldjoinoneofASBC’sPartnerorganizationsand/orsignuptoreceivenewsandcampaignalertsGeneralContactInformation
AmericanSustainableBusinessCouncil1401NewYorkAvenue,NYsuite1225WashingtonDC20005www.asbcouncil.org202‐595‐[email protected]