By Kathy & Thom Gottberg  (3/5/10)

            On Tuesday, March 2^nd, Governor Schwarzenegger made a special trip to the Coachella Valley to talk about the green energy economy in California and to promote his recent job initiative.  The fact that he and his labor secretary Vicky Bradshaw took the time to come to the desert, demonstrates that our region has taken on added importance on a statewide level.  While describing our area as a “crown jewel of renewable energy” may not be exactly accurate just yet, it is obvious that the Coachella Valley is taking on greater and greater significance in the race to achieve energy independence, put people to work, and jumpstart the green economy.

        Technically the press conference was billed as a way for the Governor to specifically promote his proposal of exempting the purchase of green tech manufacturing equipment from the sales tax.  And what better location to do that than at the Wintec Energy Farm with its over 4,000 windmills?  That initiative is favored by Fred Noble, president of Wintec who spoke briefly before introducing the Governor and pointed at several of his windmills in the background and said, “Those windmills were made in Denmark.”  Then he pointed at another group and said, “Those were made in Japan.”  He finished by saying “and there is a guy in the audience who can build them in California.  And the only thing holding him back is the cost of manufacturing in California.  If you can get this initiative through and get some help on the cost of manufacturing, we can go through here and replace hundreds of old machines with windmills made right here at home.” 

            Once introduced the Governor thanked Wintec for creating green jobs and for being a leader in renewable energy.  The Governor also acknowledged that Wintec was helping California achieve our greenhouse gas emissions goal of 20% by 2020 outlined in AB 32, as well as our aggressive Renewable Energy Portfolio Standard of 33% by 2020.  Both of those practices make us a leader in not only the US, but the entire world.  According to the Governor, “The exciting news is in these economic downturn times…this company is interested in expanding and that shows me that wind technology is good for the economy.  They are expanding but they need a little help…. and we want to make sure that these jobs stay in California.”

        An important element of Schwarzenegger’s Job Initiative is the sales tax exemption for manufacturing equipment for advanced transportation, renewable energy and any other clean technology projects.  This takes on more importance when you realize that most other states already offer this incentive.  According to the Governor, “ We are one of three states that still charge for manufacturing equipment…47 others don’t.”  Because he wants California to be a “dynamo of green technology,” he stated, “We want to say to all green CEOs and entrepreneurial innovators that if you invest in the green future of California, then we will invest in you.”

            A key to this happening is swift action and it has already been two months since the Governor proposed this and his full Job Initiative to the California State Legislature.    Schwarzenegger urged the Legislature to take his proposal seriously, sit down at the table, and work day and night to get the business of job creation done.  Near the conclusion of his remarks he asked, “why shouldn't we be producing windmills right here?  Why are we producing them overseas?  Why shouldn’t we have solar farms all over this place?  Look at the natural resources here, the sun, the wind—they create energy that does not make us dependent upon foreign oil—and it does not contribute to global warming.  So why not here?  This is the perfect place to be.”           

Following Schwarzenegger's comments Assemblyman Manuel Perez addressed the crowd and acknowledged that, “It is fitting that the Governor chose to visit the 80^th District to discuss his job creation proposals and the green economy.  Not only is our Palm Springs area swiftly gaining recognition as an innovation incubator and earning an I-Hub designation, but the 80^th District in general offers promise for the renewable energy development of solar, wind, and geothermal sources.”

            Palm Springs Mayor Steve Pougnet provided further insight into the new I-Hub (Innovation Hub) Designation recently awarded to the tri-city jurisdictions of Palm Springs, Cathedral City and Desert Hot Springs.   Out of 25 areas in the state that applied, only six were selected.  This makes portions of our valley, according to Mayor Pougnet, “the future of innovation for clean-tech renewable energy in the state of California.”  Mayor Pougnet spoke in favor of the Governor's Job Initiatives and especially his green manufacturing incentive.  Pougnet said about the surrounding land, "...all this is zoned industrial manufacturing.  There’s no reason they (green manufacturing companies) shouldn’t be here.  Our goal is 50 companies in 5 years…this is the spot.”

            Secretary of Labor Vicky Bradshaw was the last to comment and pointed out how dedicated the Governor was to both job creation and the green economy.  She claims that, “California is the leader of Green Tech.  We have the largest number of businesses, more than 12,000 –we have the largest number of employees in that sector, almost 160,000.”  She also stated, “We have attracted 57% of the venture capitol to California and we have the largest number of patents.”  Bradshaw continued with, “Green jobs are growing faster than any other job sector—for more than 15 years—from 1995 to 2008 CA green jobs grew at 36% from overall jobs at 13%.   36 % is phenomenal. Even during those tough years of 2007-2008, green jobs continued to grow at 5% while overall jobs dropped to 1%.”  She finished by saying that the Governor’s proposal “…wants to ensure California’s number one position in the green tech sector—but also to make sure that all the things that come from providing great air also provide great jobs.”

            While all this is good for news for green tech and California’s goal to be a leader in the clean, green economy, what does it mean for the Coachella Valley? “Hopefully it is about jobs,” said Wes Ahlgren, Director of Operations for the Coachella Valley Economic Partnership (CVEP), “that’s certainly what we are looking to do with the Economic Partnership and the Blueprint.”  When asked specifically about the Governor’s visit he continued, “I think him coming gives us additional exposure. One of the problems we’ve had as a region is marketing ourselves as an opportunity for wind turbine manufacturing or solar manufacturing—for these manufacturing jobs. Folks know City of Industry or LA or other parts of California because they do lots of marketing. So the Governor coming here—we’re on the news, the state news, and it gives us good sound bites and press.”

            Ahlgren also repeated what had been said earlier in relation to keeping and attracting new green industry, “We need a streamline process.  We are talking to several solar manufactures that want to manufacture here in the Coachella Valley, and there are stumbling block after stumbling block after stumbling block.   And it’s not environmental—it’s just business.  We need to be business friendly.”  

            Fred Bell, COO of Noble & Company agreed saying, “I think the Governor is right on by keeping manufacturing in California. I’ve worked in other states and other companies…and it’s incredibly difficult.”  Bell also appeared to support the Governor’s Job Initiatives when he said,  “Hopefully, other than seeing gridlock we can see the two sides (of the legislature) work together and save jobs.  Because that is what we really need to do right now.”  He also agreed that the governor coming  to the valley was good news for us all by saying, “We really are one of the crown jewels of the United States.  He (Schwarzenegger) doesn’t go everywhere—and certainly he recognizes the power of us doing it.”