Saturday, July 18, 2009

Voices grow in opposition to potential regional water pipeline

By Roberto Acosta
Staff Writer

GENESEE COUNTY -- A Canadian MP from Sarnia has joined a Michigan drain commissioner and the City of Detroit in concern over a possible Genesee County water pipeline.

"The lack of information about the project has caused great concern across my community," said Patricia Davidson in a letter to Gov. Jennifer Granholm and Steve Chester, the state's Department of Environmental Quality director.

Davidson, a member of Canada's Conservative Party, is asking for 60 additional days of public comment to review the proposal.

"This is something we don't want to be making uninformed decisions about," she said. "We need to have the time to determine what's happening. Public comment is currently set to close on July 15.

Jeff Wright, Genesee County Drain Commissioner, has said the pipeline would stretch 65 miles into Sanilac, Lapeer and Genesee counties and carry a projected cost of $603 million.

Construction would be done in cooperation among the Genesee County Drain Commission-Division of Water and Waste Services, the City of Flint, Greater Lapeer County Utilities Authority and Sanilac County.

Wright in the past HAS explained that the plan is for intrastate use and is not considered a diversion under the Great Lakes Compact.

Dennis Lennox, Cheboygan County Drain Commissioner, filed an objection to the proposal on June 5 and has talked of seeking legal action if the Department of Environmental Quality approves the plan.

"Genesee County's proposal opens the door to identical pipelines across the Great Lakes, which would result in mass diversions and the commercial exploitation of water resources," he said.

Lennox also sent a letter to Granholm and Chester asking for more time to review the plan because he was "concerned that the views of Canadian officials, as well as authorities across the Great Lakes region, may not be taken into consideration by the Department of Environmental Quality because they did not have adequate time to study Genesee County's proposal before the close of public comment."

Pamela Fisher, interim director for the Detroit Water and Sewerage Department, listed several objections to the pipeline in a letter from the department and City of Detroit to Brant Fisher, an environmental engineer specialist for the DEQ's Water Bureau.

The letter says there are factual inaccuracies in the GCDC permit application, and that it fails to comply with the water compact's section concerning the "balance between economic development, social development and environmental protection of the proposed withdrawal and use and other or planned withdrawals in water uses sharing the water source."

The letter states a new pipeline would place an "immediate 6 percent rate increase for all the rest of the DWSD's 85 wholesale customers, as well as the residents of the City of Detroit" because of a smaller customer base. It also questions the project cost, saying the figure "does not, to our knowledge, include the cost of maintaining a connection to DWSD's system, which will be necessary if GCDC is to have the redundancy it needs."

Wright said local customers would see an increase of $7 per month during the pay-off period for a 25-year bond, but could see an overall $200 million savings in rate fees.

Thursday, July 16, 2009

Ohio's job growth in advanced energy industry grew 31%

A new report released by The Pew Charitable Trusts ranks Ohio best in the Midwest and among the top five states in the nation for job growth in a clean energy economy. According to the Ohio Business Development Coalition, the non-profit organization that markets the state for capital investment, the report is further evidence that Ohio is uniquely positioned to succeed in the advanced energy industry thanks to its existing strengths in manufacturing and engineering, along with its vast, skilled labor pool capable of an easy transition to fulfill the jobs of the future.

"This report further proves Ohio's dedication to technology innovation coupled with its access to a world-class supply chain and a talented, educated workforce is vital in building a strong foundation for the widespread application of advanced energy systems," said Lieutenant Governor Lee Fisher. "There are many business incentive programs the state offers to companies that create new jobs, thereby creating a supportive and encouraging environment for new investment."

Based on significant research and input from experts in the field, including the advisory panel that helped guide the study, Pew developed the following definition: A clean energy economy generates jobs, businesses and investments while expanding clean energy production, increasing energy efficiency, reducing greenhouse gas emissions, waste and pollution and conserving water and other natural resources.

The Pew study shows in 2007 Ohio ranked among the top five states with the most jobs in clean energy (3,653), energy efficiency (5,367) and environmentally friendly production (2,800). Overall, Ohio boasted a total of 35,267 clean jobs in 2007, which represents an overall job growth of 31 percent since 1998 and an average annual job growth of .85 percent each year. For more information about The Pew Charitable Trusts and the report, visit http://www.pewtrusts.org/news_room_detail.aspx?id=53254.

Ohio's leaders are leveraging the state's key assets such as Ohio's manufacturing infrastructure, skilled workforce and advantageous location to support a growing advanced energy industry. Ohio's historic strengths in advanced design, advanced materials and advanced manufacturing combined with the state's ability to seamlessly transform these existing skill sets into those needed to compete for the jobs of the future creates the perfect environment to make the state a global leader in this rapidly growing industry. Ohio-based companies are now producing an increasing array of solar panels, wind turbines and component parts, biomass products, fuel cells, hydroelectric components, geothermal parts and storage facilities that promote better utilization of advanced energy resources and competitiveness in a global marketplace.

"Ohio has surplus automotive skilled labor and manufacturing capability that is rapidly being converted to accelerated growth of the clean energy industry and is available for clean energy companies that want a rapid start," said Ed Burghard, executive director of the Ohio Business Development Coalition. "Ohio is successfully reinventing itself as the location of choice among leading suppliers to the technologies of the future, and our state serves as a model for struggling states and cities with economies that rely on traditional manufacturing processes."

One of the most significant initiatives supporting Ohio's advanced energy industry is the Ohio Third Frontier, an unprecedented and bipartisan commitment to expand Ohio's technological strengths and promote commercialization that leads to economic prosperity throughout Ohio. Since its inception, the program has retained or created 7,700 high-paying technology jobs and has attracted more than $3.5 billion in private investment to Ohio, a 9:1 return on investment. Ohio's Third Frontier has already invested more than $100 million in advanced energy technology research and development since 2002, and is projected to provide $24 million in additional grants related to advanced energy in the coming year.

"Business leaders in the advanced energy industry are realizing how, in Ohio, they're able to successfully build a business without sacrificing their personal life," Burghard said. "Business owners profit from the bottom-line benefits of better work:life balance for their employees. Ohio offers low-cost, low-stress communities in a combination of micropolitan and metropolitan cities. This diversity provides executives and employees the resources and time to make any ambition achievable. Ohio truly is the state of perfect balance."

Wednesday, July 15, 2009

Minnesota Lawmakers Establish Green Jobs Plan; Gov Takes Final Action on Budget

As one of several states working to recruit and retain companies that create green jobs, Minnesota lawmakers passed a measure to create a multiagency authority to promote, market and coordinate state agency collaboration on green enterprise and green economy projects. At the same time, legislators rejected Gov. Tim Pawlenty's Green JOBZ proposal, creating a tax-free program for renewable and clean energy businesses modeled after the original JOBZ program and part of the governor's Jobs and Recovery Act (see the Feb. 4, 2009 issue of the Digest).

The Ominbus Environment, Natural Resources, Energy and Commerce bill signed by the governor establishes the Green Enterprise Authority, a cooperative effort between the Department of Employment and Economic Development (DEED) and the Department of Commerce to design programs to attract green jobs to the state. The Green Enterprise Authority will receive the remaining balance of the FY09 special revenue fund appropriation for the Green Jobs Task Force. Establishment of the authority was a major priority of the task force, a bipartisan coalition of legislators, business leaders, policy experts and state agencies created by the legislature in 2008.

Lawmakers also rejected a measure providing $50 million in investment tax credits for certified capital companies (CAPCOs) introduced by the governor earlier in the session. Gov. Pawlenty proposed the investment tax credits, which would be deferred until 2012, available to insurance companies for early-stage investments in CAPCOs.

The governor vetoed a bill that included a $10 million-a-year, 25 percent tax credit for angel investors, citing opposition to tax increases in other parts of the bill, reports the Star Tribune.

Gov. Pawlenty took final action on the state's two-year budget last month following approval of a spending plan by the legislature in May that left a $2.7 billion shortfall between spending and revenues, according to the governor's office. Executive actions taken to balance the budget include a $100 million reduction in higher education appropriations and a 2.25 percent reduction to most state agency operating budgets. This is in addition to the 5 percent reduction imposed on many agencies as part of the recently enacted budget.

The Omnibus Economic Development bill includes $200,000 each year of the 2009-11 biennium for the Office of Science and Technology (OST). The OST was created in 2008 to develop a collaborative partnership between industry, academia and government to coordinate federal funding procurement efforts in S&T in Minnesota. DEED received $400,000 in FY09 to expand current SBIR and STTR efforts and develop a process for technology partnering and commercialization to enhance the S&T funding and technology pipeline.

Lawmakers also approved $500,000 each fiscal year for the BioBusiness Alliance of Minnesota to recruit, retain and expand bio business activity, implement the Destination 2025 statewide plan, and update a statewide assessment of the bioscience industry.

The K-12 Education Omnibus bill approved by lawmakers includes $750,000 in FY10 for Math and Science Teacher Academies. The legislature approved $3 million for the creation of regional academies in 2007, which provide professional development and training opportunities to math and science teachers.

Reduced Funding Scales Back Indiana Life Sciences, Technology Development Initiatives

While maintaining a $1 billion reserve over the next biennium, the 2009-11 budget signed into law by Gov. Mitch Daniels reduces by half funding for the state's 21st Century Research and Technology Fund and appropriates only a fraction of the requested $70 million for the Indiana Innovation Alliance, an initiative to grow the state's life science industries.

Indiana's 21st Century Research and Technology Fund administered by the Indiana Economic Development Corporation (IEDC) will receive $35 million over the next two years - half the amount appropriated last biennium.

Supporting numerous entrepreneurial ventures over the last 10 years, IEDC uses the fund to offer loans and grants to companies bringing new technologies to market, to match SBIR grants, and to create University Centers of Excellence.

Additionally, no funding was included for IEDC's High Growth Business Incentive Fund, which received $3 million last biennium.

The Technology Development Grant Program, which supports the creation and expansion of technology parks, will receive $3.8 million over the biennium, $400,000 less than last biennium.

Lawmakers allocated $20 million over the next two years to establish the Indiana Innovation Alliance, a partnership between Indiana University (IU) and Purdue University. Hoping to bring more external funding into the state by providing matching funds for large-scale research grants and initiatives, the presidents of the two universities asked lawmakers for $70 million over the biennium to be divided among two priority areas. This included $25 million each year to enhance state-of-the-art core research capabilities for university and corporate research, specifically in bioeconmic areas, and $10 million each year to expand education and healthcare innovations by growing statewide medical and bioscience programs.

In the end, lawmakers approved just $10 million each year, allocating $5 million for core research for the two universities, $3 million for expansion of the IU School of Medicine, and $2 million for Purdue's health care technology assistance program, reports the Lafayette (IN) Journal and Courier.

Legislators also concurred with the governor's proposal to eliminate the $20 million Life Sciences Fund approved as a one-time appropriation last biennium to support recruitment and retention of world-class scientists specializing in life sciences at the Indiana School of Medicine.

Federal stimulus funds were allocated during the session to support several economic development projects in the higher education system. Specifically, the enacted budget includes $20 million in bond authority for a drug discovery center at Purdue University West Lafayette and $10 million for the Midwest Institute for Nanoelectronics Discovery, a partnership between industry, Purdue University, and the University of Notre Dame. Launched in March 2008, the collaboration is one of four across the nation designed to create new research opportunities that will lead to development of atomic-scale technologies and drive future computing breakthroughs, according to the Semiconductor Research Corporation (SRC). Additional funding comes from Notre Dame, IBM Corporation, SRC's Nanoelectronics Research Initiative, and the city of South Bend.

Another $5 million in federal stimulus funds was allocated to support the Woodrow Wilson Teaching Fellowship program to add new math and science teachers in underserved areas of the state and for startup costs to establish new Tech High Schools.

The 2009-11 enacted budget is available at:
http://www.in.gov/legislative/bills/1092/HE/HE1001.1.html.

High-Tech Industry Wins Big in Wisconsin

Gov. Jim Doyle signed the 2009-11 biennial budget last month, providing funding for university-based research and enhancing tax credits for angel and venture investors supporting high-tech R&D.

Several of the governor's priorities outlined earlier this year in the Digest as part of the state's stimulus plan were funded this session, including the following provisions to enhance the Angel Investment and Venture Capital Tax Credit programs, known as Act 255:

Tripling the Acceleration Wisconsin tax credit from $1 million to $4 million for angel and venture investors in support of startup technology companies, beginning retroactively for the 2008 tax year;

Tripling the annual pool of credits available from $5.5 million to $18.25 million per year for angel credits and from $6 million a year to $18.75 million a year for venture credits, beginning Jan. 1, 2011;

Raising the aggregate creditable investment from $8 million per year from any combination of angel or venture sources, beginning Jan. 1, 2011;

Allowing angel investors to claim the entire 25 percent credit on their investment in the first taxable year; and,

Permitting insurance companies to claim the venture capital investment tax credit against gross premium tax liability.

The enacted budget also funds several TBED initiatives from the governor's budget proposal (see the Feb. 25, 2009 issue of the Digest). They include:

Providing an R&D tax credit for businesses that increase R&D by more than 125 percent of the company's three-year R&D average in the form of an income and franchise tax credit worth $1 for every $1 investment above 125 percent beginning Jan. 1, 2011;

Creating a capital gains tax exemption for investments of up to $10 million in new businesses. The pool of available credits will be tripled beginning in 2011; and,

Exempting the sales and use tax for machinery and other tangible personal property used for qualified manufacturing or biotechnology research, effective Jan. 1, 2012;

In support of new job creation, the enacted budget consolidates five existing tax credit programs, including development zones, enterprise development zones, agricultural development zones, technology zones and airport development zones. The goal is to further target those credits to businesses that create jobs, invest capital, and provide training and retraining to new and incumbent workers, according to the governor's office.

University-based R&D investments include $8.2 million for the Wisconsin Institute for Discovery for research in biotechnology, nanotechnology, and information technology. The institute is part of the Grow Wisconsin Plan first announced by the governor in 2003 (see the Sept. 19, 2003 issue of Digest).

The enacted budget also includes the governor's recommendation to provide $8 million over the biennium to establish University of Wisconsin Bioenergy Initiatives at the Madison, Stevens Point and River Falls campuses for projects to develop the next generation of bio-based fuels and energy. To establish the Wisconsin Genomics Initiative for research into personalized health care for disease identification and prevention, the budget appropriates $2 million in FY10.

Lawmakers allocated $25 million in FY11 for the Wisconsin Covenant Scholars grants. This appropriation will establish a funding base for the grants, which are available to students who maintain a B grade average who are entering into the higher education system in the fall of 2011.
The 2009-11 enacted budget is available at:

http://www.legis.state.wi.us/2009/data/acts/09Act028.pdf.

Saturday, July 11, 2009

Battery innovation thrives in area

Firms work with wind, cars, grids

By Thomas Content of the Journal Sentinel
Posted: July 10, 2009

As an energy producer, wind is fickle: Maybe it'll blow when you need it. Maybe not.

So the race is on to find more efficient ways to store the electricity wind produces when it's blowing, so the lights can stay on when it isn't. A Milwaukee company is smack in the middle of that race - a player in a high-tech sector that local economic strategists hope will become a growth engine for the region.

"Wind has incredible potential to be a significant portion of the nation's energy supply," said Kevin Dennis, vice president of sales and marketing for ZBB Energy Corp. "But to be a reliable resource, it ideally needs to be coupled with energy storage and to be flexible in how the power is managed and controlled out to the grid."

A joint venture between ZBB Energy and Eaton Corp. earlier this month shipped its first rechargeable energy storage system for the renewable power sector to Ireland, where it is being installed alongside a wind turbine that is already providing half the power needed by the Dundalk Institute of Technology.

While Milwaukee's highest-profile economic development strategy has centered on freshwater technology during the past year, a secondary effort seeks to make the seven-county Milwaukee area a center for advanced battery research, development and manufacturing - exactly the type of work already going on at ZBB and several other area companies.

Wisconsin touts new economic development programs

By SCOTT BAUER Associated Press Writer
3:32 PM CDT, July 10, 2009

MADISON, Wis. - Wisconsin came up empty in the competition to land a new General Motors Corp. car plant, but tax breaks that were a part of the state's pitch may end up helping other businesses stay or expand.

"Coming in second or third on this GM plant may turn out to be a long-run blessing," said Tom Still, president of the Wisconsin Technology Council, which advises the governor and Legislature on economic development and other issues.

GM closed its production plant in Janesville in April, cutting about 1,200 jobs. The state lobbied the auto giant to reopen the plant to make a new line of small cars, but GM chose a Michigan plant instead.

Janesville residents who hoped the plant would reopen might find it hard to believe that losing might really be a win. But the incentives designed for the automaker may end up luring other, more attractive businesses to Wisconsin, Still said.

New tax breaks, some of which were included in the state's $195 million pitch to GM, were passed by the Legislature this year despite a $6.6 billion budget shortfall.

Republicans have criticized the Democratic-controlled Legislature as bad for business because it balanced the state budget in part with $3 billion in higher taxes and fees. But Democratic Gov. Jim Doyle's administration says it has overhauled the state's economic development incentives to make Wisconsin a leader in keeping and retaining jobs.

The new tax breaks, which emphasize investment and research and development, give Wisconsin "one of the most powerful economic development tools in the country," said Zach Brandon, executive secretary of the state Commerce Department. More here.