THE GREEN GUIDE
From Site Selection magazine, July 2010
West Is the Best
Ranking first in half of our eight criteria, California tops
Site Selection’s first annual Sustainability Rankings.
C
*State Rankings Criteria: Green Industry projects as tracked by the Conway Data New Plant Database from Jan. 2008- March 2010 (including renewable energy manufacturing and supply chain facilities, biofuels and biomass, recycling plants, electric vehicle supply chain, etc.); Number of LEED Certified projects as of May 10, 2010 (USGBC project database); LEED Certified projects per capita; Level of incentives support for green projects, according to USGBC database, the Database of State Incentives for Renewables & Efficiency (DSIRE) and Site Selection research, May 2010; Per capita renewable energy generation by state, 2008 (EIA and Census Bureau); Cumulative Brownfield Redevelopment Funding and leveraged funding, by state, since the inception of the EPA’s Brownfield Redevelopment program in 1995 (EPA); Per capita cumulative Brownfield Redevelopment Funding and leveraged funding, by state, since the inception of the EPA’s Brownfield Redevelopment program in 1995 (EPA); Energy Efficiency Scorecard rankings in 2009 (American Council for an Energy-Efficient Economy)
*U.S. Metros Criteria: Green Industry projects as tracked by the Conway Data New Plant Database from Jan. 2008- March 2010; Number of LEED Certified projects as of May 10, 2010; LEED Certified projects per capita; Level of incentives support for green projects (minimum of two programs), according to USGBC database and Site Selection research, May 2010
*Nations Criteria: Green Industry projects as tracked by the Conway Data New Plant Database from Jan. 2008-March 2010; Number of LEED Certified projects as of May 10, 2010; Per capita renewable energy generation by nation, 2008 (EIA). Rankings, data and calculations by Karen Medernach and Mike O’Connor
ontrary to longstanding perception, not all businesses want to leave California — especially if they have something to do with environmentally friendly technologies.
      It comes as no surprise that the Golden State gets the gold, followed by silver for Washington and bronze for Oregon, in Site Selection’s inaugural Sustainability Rankings, based on eight criteria
(see below) that include such factors as LEED-certified buildings, EPA brownfield funding and leveraged funding since 1995, renewable energy generation, green incentives and new private-sector facility projects in “greentech” fields such as solar and wind power and electric vehicles, as tracked by the Conway Data New Plant Database.
      Internationally, Canada tops our rankings, followed by Brazil, China, Germany and Norway. The top finish for Canada is reflected well by the recently released 2010 Mercer Quality of Life Index, which found five Canadian cities among the top 30 in the world, led by Vancouver (No. 4).
      In the U.S. metro category, the San Francisco area outdistances Portland, Ore.; Denver, Colo.; and Chicago to take the laurels as the most sustainable metro area. They’re followed by L.A., Pittsburgh and New York, in that order, and then by a group that includes smaller metros such as Grand Rapids, Mich.; Austin, Texas; and Boulder, Colo.
      Many of the same cities led Cushman & Wakefield’s first Green Building Opportunity Index published earlier this year, which looked at the 25 largest U.S. central business districts, and which also featured the Bay Area on top, followed by Midtown New York, L.A. and Chicago.
      “More and more corporate users are incorporating sustainability considerations,” says Theddi Wright Chappell, managing director of Cushman & Wakefield of Washington Valuation Services, Capital Markets Group, and National Practice Leader of the firm’s National Green Building and Sustainability Valuation and Advisory Practice. “They’re reporting their carbon footprints, but it really varies a lot. I see just as many who are confused about how they would begin to approach something like that. It’s going to be mandated if people don’t make the decisions. To me the prudent thing is to try and get out in front of it.”
      She says assembling an index is challenging work as different types of data are either hard to assemble or just becoming available. The next step, she says, is to track green retrofits and upgrades. Her wish may be coming true in one place: Deutsche Bank Americas Foundation is bankrolling a new database tracking hundreds of such projects in New York City, called the Deutsche Bank/Living Cities Building Energy Efficiency Data Report.

California Gets
It All Together
      California led the Sustainability Rankings by earning No. 1 in four criteria: available state and local green incentives; energy efficiency; total LEED-certified projects; and combined EPA brownfields funding and leveraged funding.
      Joel Ayala, the director of the newly formed Governor’s
Joel Ayala, Director of the California Governor’s Office of Economic Development
Office of Economic Development in California, says his team is seeing quite a few electric-vehicle and alternative fuel companies coming into the state, and estimates that some 60 percent of new leads are within the clean and green business sectors, with a significant number of inquiries from out of state and from other countries.
      “They are appreciative of the consumer market as well as research talent,” he says. “They set up headquarters around our universities, and set up models around innovation. And they are looking to do more manufacturing here.”
      Queries in general are coming from such nations as Japan, France, Germany and China, with a particular concentration on water technologies from Australian firms.
      “Yes, we’re definitely seeing a lot of interest in that,” says Ayala, noting that international corporations are looking just as hard at his state’s well-established venture capital scene as they are at its research capacity. “They all tie together.” One leading figure tying those together is Vinod Khosla, the co-founder of Sun Microsystems and partner at Kleiner Perkins Caufield & Byers who announced in September 2009 that his new firm, Khosla Ventures, had raised two new funds of more than $1 billion to help clean-tech start-ups grow and prosper.
      Rentech is moving forward with its Rialto Renewable Energy Center, 50 miles (81 km. )east of Los Angeles. The unique facility will use green urban waste as feedstock, and is expected to be the first commercial biomass gasification facility in the United States that will co-produce renewable electric power and synthetic diesel fuel. The
Reuse and Recycle
      For a case study in California’s accommodations for greentech projects, read “Home at Last,” our Online Insider report about Tesla’s partnership with Toyota at the still-warm NUMMI plant in Fremont.
Rialto Project will produce about 35 megawatts of base-load renewable electricity and 640 barrels-per-day of renewable, ultra-clean synthetic fuels from urban woody green waste, such as yard and tree trimmings. The life-cycle carbon footprint of the fuels and power is expected to be near zero.
      In Silicon Valley on Earth Day in April, local firm SunPower Corp. partnered with Singapore firm Flextronics to announce it would begin manufacturing solar panels in Milpitas, Calif., by the end of 2010, thanks in part to a three-year agreement with the U.S. Dept. of Energy that could mean up to $24 million in federal funding. The announcement came 25 years to the week after SunPower was founded in Silicon Valley in 1985, and comes as the company is ramping up a separate solar panel joint venture in Malaysia.
      “We commend Governor Schwarzenegger and our state and federal leaders for creating the long-term stability and visibility we need in the solar market to open this facility,” said SunPower CEO Tom Werner. “The Governor’s leadership on the California Solar Initiative, the Renewable Portfolio Standard, incentives for green manufacturing equipment and AB 32 provide us with the confidence to further invest in our home state.”
 
E-mail your comments or inquiries directly to adam.bruns@conway.com
Click the Bookmark button and share with your friends!

Site Selection


Site Selection Online – The magazine of Corporate Real Estate Strategy and Area Economic Development.
©2010 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.