Sustainable Economic Perspectives in the Texas Triangle September 25, 2009

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“Better Luck This Time”

" Exhilaration over clean energy has so thoroughly swept Silicon Valley.....The problem 30 years ago was doing something environmentally sound required asceticism and sacrifice. That is no longer required. No one is asking you to huddle in the dark, shivering and eating beans by candle light to save the planet." - "Better Luck this Time" Atlantic Monthly Aug 2009

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ECOTOPIA vs. Texas Triangle

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The Third Wave?

• • “The first wave of environmentalism was conservation.

The second was regulation.” • “We believe the third wave is investment.” - Van Jones 4

Old Economy vs. Sustainable Eco-economy

Source: Texas Business Review, University of Texas at Austin 5

Consuming vs. Sustaining

Source: Texas Business Review, University of Texas at Austin 6

Evolution of Economic Development Strategy in Texas

Source: Texas Business Review, University of Texas at Austin 7

Funding for green jobs flowing — but what exactly is a ‘green job?’ - September 2009.

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• Renewable Power Generation • Energy Efficiency • Renewable Transportation Fuels

Green Jobs

Source: Green Jobs in US Metro Areas, October 2008, Global Insight

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Talent Attraction

• US 18 to 34 year olds say that living in a city that they define as sustainable is an important factor in deciding where to locate (7 or 8 on a 10 point scale) • 70% or more define sustainability in terms of clean air and water, and open space versus 20% in terms of downtown living, 30% green buildings or 40% transit Source: Collective Strength and Harris Interactive June 2009 10

2008 US City Sustainability Rankings

1. Portland, OR 2. San Francisco, CA 3. Seattle, WA 4. Chicago, IL 5. New York, NY 6. Boston, MA 7. Minneapolis, MN 8. Philadelphia, PA 9. Oakland, CA 10. Baltimore, MD 11. Denver, CO 12. Milwaukee, WI

13. Austin, TX

14. Sacramento, CA 15. Washington, DC 16. Cleveland, OH 17. Honolulu, HI 18. Albuquerque, NM 19. Atlanta, GA 20. Kansas City, MO 21. San Jose, CA 22. Tucson, AZ 23. Jacksonville, FL

24. Dallas, TX

25. Omaha, NE 26. San Diego, CA 27. New Orleans, LA 28. Los Angeles, CA 29. Louisville, KY 30. Columbus, OH 31. Detroit, MI 32. Phoenix, AZ

33. San Antonio, TX

34. Miami, FL 35. Charlotte, NC

36. Houston, TX

37. Fresno, CA 38. El Paso, TX

39. Fort Worth, TX

40. Nashville, TN

41. Arlington, TX

42. Long Beach, CA 43. Colorado Springs, CO 44. Indianapolis, IN 45. Virginia Beach, VA 46. Memphis, TN 47. Las Vegas, NV 48. Tulsa, OK 49. Oklahoma City, OK 50. Mesa, AZ

Source: SustainLane.com

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Sustain Lane City Rankings

Overall Rank Housing Affordability Transit Ridership Food & Agriculture Energy and Climate Water Supply Green Economy Planning/ Land Use Green Building Austin Dallas Fort Worth Houston San Antonio Texas Triangle Average 13 24 39 36 33 29

25 15 2 11 1

11

33 17 18 14 28

22

31 48 35 39 32

37

5 13 30 24 32

21

24 33 31 32 26

29

14 26 32 33 30

27

6 33 49 32 34

31 25

9 21 47 11 38

Source: SustainLane.com

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Massive Change

“The new mobility culture considers not only transit but also prosperity, health, education, housing, waste and other social needs. No transportation system is an island, it must coordinate all shared systems for maximum effect.” - Massive Change

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Central Texas Core Beliefs

0% Driving is just going to get more and more expensive in the future I just can't afford to drive as much as I used to I'd like to be able to drive a little less I drive because I have to, not because I want to I’m concerned about traffic congestion I’m concerned about air pollution I’m concerned about climate change I would like to take public transportation but it is not available or convenient 20% 40% 42% 60% 80% 100% 89% 69% 68% 79% 83% 69% 65% N = 802 14 Source: Environmental Defense Fund/ Collective Strength Q1 2009 Survey of 5 Central Texas Counties

Employer Transportation Benefits

Available to you now? Yes

5%

Use it now? Yes Use it in the future? Yes

4%

67% GAP ANALYSIS 63

N = 802 Cash allowance for not using parking spaces when using alternatives Telecommuting from home one or more days per week Staggered work hours one or more days per week Car pools for employees 25% 31% 21% 28%

64% 63% 43 35

20% 10%

62% 52

Van pools for employees Showers available for those who walk, run or bike to work 10% 25% 4% 10%

57% 48% 53 38

Q: For each of the following transportation benefits that are offered by employers tell me whether it is available to you now, whether you use it now and if not, if you would be willing to use it in the future? 15

Employer-Sponsored Transportation Programs

• Morning service starts at 5am • Pick up as far as 54 miles away • Operates through private transportation company “It’s the most useful Google fringe benefit.”

Employee

“Bus system was a factor in turning down job offer from Apple.”

Employee “Google’s aim is to make commuting painless for its pampered workers — and keep attracting new recruits in a notoriously competitive market for top engineering talent.” NY Times, March 10, 2007

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Message to Leaders: Balance Our Mix

Repairing and maintaining streets Easing traffic by building new roads that are not tolled Creating choices like light rail and streetcars Building city rail Building high speed regional rail connected to other cities around the state Making Central Texas more walkable and less car oriented Adding bike lanes, sidewalks and rights of way Giving neighborhood associations more tools like carsharing and carpooling among neighbors Adding many more cars to the carshare program Building new toll roads

High

77% 60% 51% 48% 48% 44% 43% 32% 21% 13% N = 802 17 Q: Which of the following priorities do you want your elected officials to focus on in the next year to help with transportation problems? Tell me if each should be a high, medium or low priority

Investment Priorities: Implications for Stimulus $$

Adding carshare, carpooling and employee vanpools $14 Maintaining existing or building new roads $33 Adding sidewalks $14

Non-road Investments $88

Adding bike lanes $14 Expanding bus service $19 Building city rail and regional train systems $27 N = 802 18 Q: If your elected officials are able to allocate funding for transportation, how do you want them to spend it? Assume they have $100 dollars to invest, how much of it should they invest in

Comparison of Differing Forms of Development -- Sustainability

200 unit developments with varying footprints, infrastructure need and utility usage

Approx. acreage needed incl. infrastructure Density Urban Condo Project

0.75

260 units/acre 20

Suburban Condo Project

10 units/acre 65

Suburban Single Family Project

3 units/acre 225

One Acre Lot Project

1 unit/acre 100% 55 to 60% 45% 15 to 45%

Impervious coverage % of total project Total acres of IC Length of project streets and utility lines Landscape water usage Electricity usage (per month)

0.75 acres 334 feet Zero $10 to $60 11 to 12 acres App. 1900 feet 6,800,000 gal/year $50 to $200 29 acres 1.5 to 2 miles 15,600,000 gal/year $80 to $250 34 to 101 acres 4 to 5 miles 40,000,000 gal/year $250 to $450

Taxable value per acre % of taxes used to provide city services to community

$80 million to $150 million 10% to 20% $2,000,000 to $6,000,000 $700,000 to $1,225,000 Taxes may pay for services needed for community Taxes do not pay for services needed for community $1 million Taxes do not pay for services needed for community 19 Source: Terry Mitchell, Momark Inc

Texas Triangle Key Issues

• What set of economic indicators in terms of jobs, income, education, sustainability to use? • • How to develop mega-regional collaboration as a core competency? How to engage the “Masters of the Universe?” • How to restructure tax incentive policy for job creation and economic development around sustainability criteria?

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Texas Triangle Key Issues

• • • How to Brand and Market the natural beauty, cultural uniqueness and unlimited sense of opportunity that is inherent in the Texan mystique along with sustainability attributes necessary for talent attraction? How to maximize and leverage energy, telecom, computing, green building, port, aerospace and bio tech expertise in new combinations – new generation of incubators and to innovate far beyond just “clean energy?” Focusing the political and business “will” to succeed in a highly competitive context framed as WINNING OR LOSING vs. OTHER MEGA REGIONS. 21