AN INDEPENDENT SUPPLEMENT FROM MEDIAPLANET TO THE SEATTLE TIMES

Check out the Mediaplanet Agriculture & Food section on page 5

Strategic opportunities and incentives on the road to a green economy

Unlocking innovation in our energy system

Few areas are riper for innovation than the energy indus-try. Energy is a vital underpinning of our economy, in much the same way as

the fi nancial system. As a state we spend more than fi ve percent of our annual GDP (over $20 bil-lion per year) on energy, much of which goes to out-of-state busi-nesses. Carbon emissions from our energy system compound the economic problem with a giant environmental one. So what do you get when you have a huge and vital system in need of signifi cant change? John Doerr of Kleiner Per-kins called it (I’m paraphrasing) “the mother of all business oppor-tunities.”

Realizing opportunityInvestment in clean and renew-able energy is at record levels, with U.S. investment hitting $48.1 bil-lion in 2011 (Pew Charitable Trusts / Bloomberg New Energy Finance), and clean technology is now top among growing venture capital categories– up from just 1.2% of VC total 10 years ago (CleanEdge /

CleanTech Group).In addition to being a “mega-

trend” business opportunity, energy is also a critical area for public policy. In fact, because this industry is highly regulated, pub-lic policy will play a major role in the pace of energy innovation and growth. Weak or business-as-usual public policy will minimize risk, but send innovation and jobs else-where. Of course, reckless public policy would rapidly escalate costs and deal a signifi cant blow to the competitiveness of energy-inten-sive industries in our state. So, like Goldilocks’ porridge, there’s a big incentive to get it just right.

Washington’s energy strategyThree years ago, Gov. Gregoire pro-posed and the legislature agreed that, after 17 years, it was time to update our state’s energy strategy and asked Commerce to lead this process. They gave us three goals to balance as we did our work:

■ Maintain competitive energy prices that are fair and reasonable for consumers and businesses and support our state’s continued eco-

nomic success; ■ Increase competitiveness by

fostering a clean energy economy and jobs through business and workforce development;

■ Meet the state’s obligations to reduce greenhouse gas emissions.

We gathered copious data and consulted a wide variety of stake-holders before publishing our 2012 State Energy Strategy last Decem-ber. Among the many solid ideas contained in the document are two in particular that, in my opin-ion, stand out as themes or bigger ideas.

Two energy systemsThe fi rst idea requires that we crudely divide our energy system into two parts: the electric part and the non-electric part. Broadly speaking, Washington’s electricity system is world-class competitive on cost and similarly competitive on carbon footprint. The non-elec-tric part of our system (read that to be mainly the petroleum-based part of the system that powers our transportation system) is both high cost and high carbon. We should be looking for any oppor-

tunities we can fi nd to shift our energy use from the non-electri-city side to the electricity side. The poster child for this idea is electri-fi cation of transportation, which is one reason I made the personal choice last year to drive a Nissan Leaf.

A price on the problemThe second big idea is also in this area where competing goals meet high stakes. Our best long-term policy by a mile is to put a price on the problem, namely carbon, and let the marketplace sort out

the best solution. Trying to solve the problem through mandates or incentives that presuppose a solu-tion is a recipe for wasted money and slow progress.

Many respond that Washington is not big enough to implement carbon pricing by itself – that it needs to be a regional, national or even global action. I say look to our north. British Columbia instituted a carbon tax four years ago, in July 2008. It is revenue neutral – they lowered other taxes to compensate for the expense generated by this new tax. If BC can do it, why can’t we?

Interested to learn more? I invite you to check out the Washington State Energy Strategy online under the Energy O¤ ce tab at www.com-mercewa.gov , and attend our 3rd annual Energy Summit, co-located with the Washington Energy Future conference, November 13-14 in Seattle. Get more details at:

futurenergyconference.com/WA12

ROGERS WEED

editorial@mediaplanet.com

Rogers WeedDirector, Washington State Department of Commerce

CLEAN ENERGY

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Driving the economy and protecting the environment

THE RIGHT ENERGY MIX FOR WASHINGTON

September 2012

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET TO THE SEATTLE TIMES2 · SEPTEMBER 2012

Gasoline and diesel have long been the only game in town for fueling our cars and trucks. But now the

game is changing, and new play-ers are bringing cleaner, locally-produced, and a¦ ordable alterna-tives to the table. These include natural gas, propane, biodiesel and electricity, alternatives that o¦ er environmental, economic and national security benefits. They produce less pollution, create local jobs, and build a local and more sustainable source of fuel. What’s more, alternatively fueled vehicles come in an array of models and class – from sedan to van to pick-up truck. You don’t have to comprom-ise on convenience or performance to take your tank beyond oil.

Here’s a look at the options read-ily available in the Puget Sound region:

Biodiesel — Get wasted Would it surprise you to know

that those cruise ships docked

in Seattle could help power your vehicle? The grease used to cook those endless, delicious bu¦ ets gets refi ned into biodiesel right here in Seattle at places like General Biodiesel. You can buy it blended into regular diesel at the pump. Whether you drive a diesel truck or car, a blend of 5% biodiesel in your tank makes no di¦ erence to your vehicle maintenance or war-ranty. What’s more, when you buy locally made biodiesel, you sup-port our economy. Try it at stations like Propel Fuels (propelfuels.com) throughout our region.

Electricity — Join the EVo-lution!

With more options on the mar-ket than ever, Pacifi c Northwest drivers are amped up about electric vehicles (EVs). Our region has the second-largest concentration of EV charging stations in the country (after San Francisco). Powered by clean, northwest renewable elec-tricity, EVs deliver their passengers to destinations at a cost of about 2-3 cents per mile, compared to gaso-line at 15-30 cents per mile. You can

fi nd neighborhood electric vehicles locally at MC Electric Vehicles in Seattle. Or you can try out highway-speed electric vehicles through King County Metro’s vanpool fl eet or rental companies like Enterprise.

Propane — Now you’re cooking

Also known as autogas, propane is the third most widely used trans-portation fuel in the world (after gasoline and diesel). Domestically produced, propane is usually $1.50 -$2 cheaper per gasoline-gallon equivalent than gasoline or diesel (when you use it as a vehicle fuel, you get a di¦ erent price than when you fi ll your BBQ tank). What’s more, you don’t need to buy a new vehicle to run on propane. You can convert your existing gas truck or van. Companies like BlueStar Autogas (http://www.bluestargas.com/mvfconv.html) can help you

get started.

Compressed natural gas (CNG) — Clean machines.

Similar to propane, CNG is also domestically-produced and typ-ically $1.50 -$2 cheaper per gaso-line-gallon equivalent than gaso-line. When it comes to power, accel-eration and cruising speed, CNG vehicles perform on par with gaso-line and diesel counterparts. Auto-makers continue to expand their array of CNG options; Chevy, Ford and General Motors all released new CNG trucks this year. You can also choose a bi-fuel (switches back to gas when you run out of CNG) option.

More about these fuels and their availability locally can be found at wwcleancities.org. The not-for-profi t Western Washington Clean Cities Coalition provides informa-tion and resources to expand the use and availability of alternative fuels in the Pacifi c Northwest.

CHALLENGES

Agriculture & Food — Pg. 5

WE RECOMMEND

CLEAN ENERGY1ST EDITION, SEPTEMBER 2012

Responsible for this issue:Publisher: Murat Tirmandimurat.tirmandi@mediaplanet.comDesigner: Adam Kereliukadam.kereliuk@mediaplanet.comManaging Director: Joshua Nageljoshua.nagel@mediaplanet.comBusiness Developer: Ash MacLeodash.macleod@mediaplanet.com

Contributors: Stephanie Meyn, Tom Ranken, Andrew Seale, Rogers Weed

Photo Credit: All images are from iStockphoto.com unless otherwise accredited.

Distributed within:Seattle Times, September 2012This section was created by Mediaplanet and did not involve the Seattle Times or its Editorial Departments.

Mediaplanet’s business is to create new customers for our advertisers by providing readers with high quality editorial contentthat motivates them to act.

STEPHANIE MEYN

editorial@mediaplanet.com

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Within reach: Cleaner fuels

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Meeting your transportation needs with alternative fuelsStephanie MeynProgram Manager, Western Washington Clean Cities

wwcleancities.org

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET TO THE SEATTLE TIMES SEPTEMBER 2012 · 3

Cleantech has become more c o n t r ove r s i a l during the elec-tion season, but it should really be evaluated

from the perspectives of both the business cynic and the visionary to get a more realistic view. Is it for real? Is there really potential for cleantech jobs in our state?

What is cleantech?Much of the answer depends upon your definition of cleantech. In the past, most observers have narrowed the definition to energy generated from the sun, the wind, the tides, and thermal layers under the ground. In the view of the Wash-ington Clean Technology Alli-ance, cleantech is that and much more.

Cleantech is not new and it is found throughout the state. Any place where people turn on lights is fertile ground for cleantech.

It is the more efficient utiliza-tion of energy and resources. It is doing more with less. Funda-mentally, an environmentalist’s concept of sustainability is no different than the business-person’s concept of reducing the cost of doing business.

More often than not, cleantech focuses on energy. It focuses on efforts to reduce the use of costly and dirty sources and either replace them or reduce their use. To meet the demands of the marketplace, this necessar-ily requires these innovations to be efficient. They need to reduce the costs of energy—dol-lars, security, and to the environ-ment.

In our state, there are already significant cleantech business endeavors. Many of them are enormously successful. Others might well become so as tech-nology develops.

■ Building Sciences: We have a lot of great, growing companies that are doing something really simple in concept: Reducing the need for energy. This can be as simple as insulating homes. But it is also developing complex building design techniques, more e¤ cient utiliza-tion of heat, managing energy needs through new software systems, and creating new materials for building construction. These companies help us save a lot of money.

■ Biofuels: We have great research institutions in this state and out-standing collaborations between them and the marketplace. Nowhere has this been more true that in the aviation biofuels project. This is an endeavor to create bio-fuels from sources that make eco-nomic sense—and provide energy security.

■ Smart Grid: The western portion of this state has some of the world’s greatest software. The eastern part of the state has some of the globe’s finest energy device compan-ies. Integrating energy systems through better software and devices has great potential to signifi cantly reduce and manage energy costs.

One truthful thing that can be said about predictions is that they are never completely correct. There are many other technologies that might well dwarf these fields in our state. We have strong companies and organizations working on solar, wind, geothermal, tidal, battery technologies, telematics, fore-casting, and a host of other con-cepts. I wouldn’t bet against any of them.

Energy conserva-tion is a win-win situation.

It’s good for the environment and makes sense for the pocket book but

what can the individual and busi-ness do to tap into energy savings?

Simple ways to saveCalvin Shirley, vice president of customer solutions at Puget Sound Energy, says it comes down to making e¤ cient choices. “I think there are a number of things that people can do at no cost,” says Shirley. Everything from turning lights and electronics o¦ when not in use, unplugging power bars to turning o¦ heating or cooling when you’re not at home. “They’re mostly behavioral things,” adds Shirley. And then there’s the gadg-ets that won’t break the bank – like using energy e¤ cient thermostats and buying compact fl uorescent lighting (CFL). Low-fl ow faucets for taps and showerheads can help reduce water usage. “These things lower costs whether it’s a resi-dence or a business, I don’t care if its electric, gas or water, it hits your bottom line cause you’re pay-ing it out,” he adds.

One area Shirley recommends homeowners can make a di¦ er-ence is looking into energy e¤ -cient appliances. “Doesn’t matter whether you’re in a Sears or Best Buy or wherever – ask the sales person what alternatives are out

there,” says Shirley. “Now a lot of e¤ cient products are just as cost competitive as things that may use more energy, so taking the time to do that makes a big di¦ er-ence.”

The power of energy conservation programsJoshua Curtis, manager of Com-munity Power Works – a partner-ship with the City of Seattle to help residents engage in energy savings programs – says the next step is to get an evaluation of their home and the ways they can make it more energy e¤ cient. “Once you’ve taken care of those (small things) then you start thinking about fundamental changes you can make to your home,” he says. This usually takes the shape of an energy assessment, which costs $95. “In the case of the home-owner we will help them arrange an energy valuation for their home and the we connect them with pre-qualifi ed contractors,” says Curtis. This could be anything from improving insulation to fi x-ing leaky windows – something a city like Seattle full of aged houses is prone to. Switch from an oil to an electric heat pump, and full house weatherization also can contrib-ute to greater e¤ ciency.

Curtis says the program has helped some homeowners save 27 percent in energy savings.

The program’s e¦ orts have cut greenhouse gas emissions to the equivalence of taking 7000 cars

of the road for a year and saved enough energy to power 1000 homes for a year. “We’ve also cre-ated roughly, 100,000 hours of work here locally,” adds Curtis. But Curtis isn’t surprised, pointing out that the northwest has a history of energy conservation.

Rebates and grants buy down the costsThe next step Shirley says the next step to energy conservation is partially in the hands of the util-ity providers. “We do it through rebates and grants,” says Shirley saying that customers can get dif-ferent types of rebates on more e¤ cient products. “We buy down some of the costs on the more expensive ones so that we can get you to make the e¤ cient choice.” Shirley says its all part of PSE’s philosophy of seeing “energy con-servation as a resource.”

When you consider the astro-nomical costs associated with building a new plant to harvest energy or fi nding a resource, it just makes sense to promote less energy use. “On the customer side of the meter, if we can get them to lower their demand so that we don’t need to go out and buy or build because ultimately something like that is going to be entered into rates (passed on to the consumer),” says Shirley. “We want to keep costs down.”

The dollars and sense of energy conservation

ANDREW SEALE

editorial@mediaplanet.com

TOM RANKEN

editorial@mediaplanet.com

NEWSDefi ning cleantech

Full house weatherization contributes to greater energy efficiency and savings.

Tom RankenExecutive Director,Washington Clean Technology Alliance

wacleantech.org

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AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET TO THE SEATTLE TIMES SEPTEMBER 2012 · 4

INSPIRATION

The U.S. Airforce uses 2.5 billion gallons of aviation fuel a year, a start-ling number when you consider the amount of green-

house gases released as a result. So it’s no surprise that researchers at Northwest Advanced Renewables Alliance are look at ways to incor-porate biomass as a fuel. Forward-thinkers like Ralph Cavalieri – Pro-ject Director for NARA and Associ-ate Vice President for Alternative Energy and Professor of Biological Systems Engineering at Washing-ton State University, are at the front lines of that research. 

He points to the automobile industry in the U.S. which uses 10 percent ethanol and the growing use of biodiesel and biomass and solar cells as alternative means to generate energy. But amongst the high-tech solutions, the aviation presents a unique problem.

The problem“One thing you can’t do is fl y an airplane on electricity from solar cells,” says Cavalieri noting that the sheer weight of the technology makes it unfeasible at the moment. “Aviation will always require a liquid fuel into the foreseeable future,” adds the former naval avi-ator. The solution? Make aviation fuels from biomass.

The solution“The U.S. navy is out in front on fi nding ways to use biofuel,” says Cavalieri. Using a variety of feed-stocks, including forest and mill residues, construction waste, as well as new energy crops, NARA aims to create a sustainable indus-try to produce aviation biofuels and important co-products.

“These are fuels and technolo-gies that are in the development stages, but absolutely it’s going to be expensive,” he says adding that the higher the volumes they pro-

duce – the more e¤ cient it will be to make.

Commercial biofuel was given the okay by engineers and the avi-ation industry last June and as it stands a lot of that fuel is derived from oil extracted from algae and other non-food sources.

Cavalieri points to a process called pyrolysis where biomass is heated in the absence of oxygen to create an oily material, which can be further refi ned and used as fuel. Another way is to break down woody materials via a number of processes to create sugars, which can be fermented into ethanol or other biofuels.

The challengeCavalieri says one of the biggest challenges with fi nding a biofuel for use in the aviation industry on a large scale is trying to develop one that can function in the same way aviation fuel does currently.

“It’s not just a fuel – it’s a coolant,

it’s a lubricant, it keeps the seals around the moving parts properly treated, and then it is burned,” he says, highlighting the complexities of its current use.

“The civilian aviation indus-try has an equally strong need to have a reliable source of fuel,” he says. “The real challenge here is to be able to make the fuel so that it meets the standards of perform-ance and do it in a way that doesn’t cost any more then petroleum-based fuels.”

Cavalieri is careful not to specu-late on when biofuel will become commonplace in the market.

“We have to have the research and the demonstration scales done so that the private sector believes the risk is such that they can invest in it,” he says. “I don’t know when, but it will happen.”

ANDREW SEALE

editorial@mediaplanet.com

Biomass — fueling aviation

Almost half of the Pacifi c North-West is covered by forest, used for a host of products. There are many positions along the supply chains where wastewood exists that can provide biomass for fuel production.

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■ 83,676 Washingtonians are currently working in the cleantech sector

■ The fastest growing clean economy sectors in Seattle/King County are renewable energy, biofuels/biomass, smart grid, remediation, and public transit

■ Seattle metropolitan area ranks 10th for the size of our clean economy among the 100 largest metro areas in the U.S.

■ Washington was ranked fourth in the country for deals made in the clean technology industry, with over $121.3 million invested in 2007.

CLEAN ENERGY FACTS