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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

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Old Economy vs. Sustainable Eco-economy

Source: Texas Business Review, University of Texas at Austin

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Consuming vs. Sustaining

Source: Texas Business Review, University of Texas at Austin

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Evolution of Economic Development Strategy in Texas

Source: Texas Business Review, University of Texas at Austin

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Funding for green jobs flowing — but what exactly is a ‘green job?’

- September 2009.

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Green Jobs

• Renewable Power Generation

• Energy Efficiency

• Renewable Transportation Fuels

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

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2008 US City Sustainability Rankings1. Portland, OR2. San Francisco, CA3. Seattle, WA4. Chicago, IL5. New York, NY6. Boston, MA7. Minneapolis, MN8. Philadelphia, PA9. Oakland, CA10. Baltimore, MD11. Denver, CO12. Milwaukee, WI13. Austin, TX14. Sacramento, CA15. Washington, DC16. Cleveland, OH17. Honolulu, HI18. Albuquerque, NM

19. Atlanta, GA20. Kansas City, MO21. San Jose, CA22. Tucson, AZ23. Jacksonville, FL24. Dallas, TX25. Omaha, NE26. San Diego, CA27. New Orleans, LA28. Los Angeles, CA29. Louisville, KY30. Columbus, OH31. Detroit, MI32. Phoenix, AZ33. San Antonio, TX34. Miami, FL35. Charlotte, NC36. Houston, TX37. Fresno, CA

38. El Paso, TX39. Fort Worth, TX40. Nashville, TN41. Arlington, TX42. Long Beach, CA43. Colorado Springs, CO44. Indianapolis, IN45. Virginia Beach, VA46. Memphis, TN47. Las Vegas, NV48. Tulsa, OK49. Oklahoma City, OK50. 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 13 25 33 31 5 24 14 6 9

Dallas 24 15 17 48 13 33 26 33 21

Fort Worth

39 2 18 35 30 31 32 49 47

Houston 36 11 14 39 24 32 33 32 11

San Antonio

33 1 28 32 32 26 30 34 38

Texas Triangle Average 29 11 22 37 21 29 27 31 25

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

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

N = 802

Survey of 5 Central Texas Counties Source: Environmental Defense Fund/ Collective Strength Q1 2009

Employer Transportation Benefits

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?

Available to you now?

Yes

Use it now? Yes

Use it in the future? Yes

GAP ANALYSIS

Cash allowance for not using parking spaces when using alternatives

5% 4% 67% 63

Telecommuting from home one or more days per week

25% 21% 64% 43

Staggered work hours one or more days per week

31% 28% 63% 35

Car pools for employees 20% 10% 62% 52

Van pools for employees 10% 4% 57% 53

Showers available for those who walk, run or bike to work

25% 10% 48% 38

N = 802

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Employer-Sponsored Transportation Programs

• Morning service starts at 5am• Pick up as far as 54 miles away• Operates through private

transportation company

“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

“It’s the most useful Google fringe benefit.” Employee

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

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Message to Leaders: Balance Our Mix

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

HighRepairing and maintaining streets 77%

Easing traffic by building new roads that are not tolled 60%

Creating choices like light rail and streetcars 51%

Building city rail 48%

Building high speed regional rail connected to other cities around the state

48%

Making Central Texas more walkable and less car oriented 44%

Adding bike lanes, sidewalks and rights of way 43%

Giving neighborhood associations more tools like carsharing and carpooling among neighbors

32%

Adding many more cars to the carshare program 21%

Building new toll roads 13%

N = 80217

Investment Priorities: Implications for Stimulus $$

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

Maintaining existing or building new roads $33

Building city rail and regional train systems $27Expanding bus service $19

Adding bike lanes $14

Adding sidewalks $14

Adding carshare, carpooling and employee vanpools $14

N = 802

Non-road Investments $88

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Comparison of Differing Forms of Development -- Sustainability

Urban Condo Project

Suburban Condo Project

Suburban Single Family Project

One Acre Lot Project

Approx. acreage needed incl. infrastructure

0.75 20 65 225

Density 260 units/acre 10 units/acre 3 units/acre 1 unit/acre

Impervious coverage % of total projectTotal acres of IC

100%

0.75 acres

55 to 60%

11 to 12 acres

45%

29 acres

15 to 45% 34 to 101 acres

Length of project streets and utility lines

334 feet App. 1900 feet 1.5 to 2 miles 4 to 5 miles

Landscape water usage Zero 6,800,000 gal/year 15,600,000 gal/year 40,000,000 gal/year

Electricity usage (per month) $10 to $60 $50 to $200 $80 to $250 $250 to $450

Taxable value per acre $80 million to $150 million

$2,000,000 to $6,000,000 $700,000 to $1,225,000 $1 million

% of taxes used to provide city services to community

10% to 20% Taxes may pay for services needed for community

Taxes do not pay for services needed for community

Taxes do not pay for services needed for community

Source: Terry Mitchell, Momark Inc

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

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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.