Councilmember Kansen Chu, City of San José San Jose Redevelopment Agency

California Go Green and San Jose Green Vision

Capital of Silicon Valley

• A vibrant economy built on wave after wave of Silicon Valley innovation and entrepreneurism

• An unparalleled quality of life – A Mediterranean climate with

average of 300 sunny days per year

– Easy access to a multitude of events, experiences and opportunities

– An international gateway to Northern California and hub for global talent and ideas

• Civic innovations that support a strong progressive city

• Building a green future for Silicon Valley

The Way to San José

San Jose

San Francisco

Oakland

Fremont/Milpitas

Santa Clara/Cupertino

Palo Alto/Mtn View

Silicon Valley

• Nation’s 10th largest city located at the southern tip of the San Francisco Bay

• 3rd largest city in California, ranking next to Los Angeles (1st) and San Diego (2nd)

• The city center of the Silicon Valley

• Easy access to all Bay Area and coastal attractions

A History of Innovation

San Jose has thrived over successive waves of technology invention and business innovation

1950

Personal Computer

1960 1970 1980 1990 2000

Val

ue A

dded

Defense

Integrated Circuit

Internet

1950 1960 1970 1980 1990 2000 2008

Clean Tech

Unmatched Technology Diversity • Highly diversified innovation

economy• Broad, deep technology

expertise– Semiconductors– Storage technologies– Information technologies– Software development– eCommerce & Social

Networking– Green & Clean technology– Lifesciences– Nanotechnology

• Innovation at intersection of disciplines

Support for Business Growth

• Innovative permitting process cuts costs and saves time– Special Tenant Improvement

Program puts forward a team from different City Agencies to address all development review issues in a single expedited review process

• Operating Silicon Valley’s only Enterprise Zone, featuring significant savings to businesses through incentives and reduced business operating costs

Nurturing Innovation

• The largest city-backed incubation new business programs in the nation– Software Business

Cluster– US Market Access

Center– Environmental Business

Cluster– The San Jose BioCenter

• Innovative Catalyst Fund is designed to ease the transition from start-up to established enterprise

About San Jose Redevelopment Agency

One of the largest redevelopment agencies in the State of California in terms of tax increment revenue generated

Redevelopment Project Areas represent approximately 16% of the City’s total area and 25% of the City’s total jobs

Five Industrial Redevelopment Project Areas are home to over 2,700 companies

Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources

Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development

Ensure that 100 percent of public fleet vehicles run on alternative fuels

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting

Create 100 miles of interconnected trails

Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources

Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development

Ensure that 100 percent of public fleet vehicles run on alternative fuels

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting

Create 100 miles of interconnected trails

San Jose’s Green Vision15-year Plan

• Clean Technology Innovation

Encourage private sector to create

up to 25,000 jobs

• Sustainability

Implemented a variety of

development/growth policies

• Green Mobility

Investment in alternative

fuels for public fleet vehicles

Clean Technology Economic Development Strategy

AREAS OF FOCUS

Renewable power generation

Energy storage & distribution

Green building materials

Transportation and alternative fuels

Success Stories

Borgata Recycling Inc.Waste to alternative energy15 employees

Solar Junction CorporationSolar Manufacturing 25 employees

SVTC Technologies Inc. Energy & Storage Distribution 120 employees

Stion CorporationSolar Manufacturing 44 employees

Success Stories (continued)

SoloPowerSolar Manufacturing and R&D 103 employees

Nanosolar Inc.Solar Manufacturing 280 employees

• Visionary city leadership committed to business retention, attraction, expansion and business appreciation

• Efficient business environment with an expert team of staff to streamline and expedite the development permit process

• Premier, affordable, high quality, turn-key R&D office spaces

• Global crossroads of industry talent with a diverse, productive, educated workforce

• Headquarters to the worlds leading companies in technological innovation

• 10th Largest City in the United States

The San Jose Advantage

Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources Receive 100 percent of our electrical power from clean

Build or retrofit 50 million square feet of green buildings Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy Divert 100 percent of the waste from our landfill and

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development Adopt a General Plan with measurable standards for

Ensure that 100 percent of public fleet vehicles run on alternative fuels Ensure that 100 percent of public fleet vehicles run on

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting Plant 100,000 new trees and

Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources Receive 100 percent of our electrical power from clean

Build or retrofit 50 million square feet of green buildings Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy Divert 100 percent of the waste from our landfill and

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development Adopt a General Plan with measurable standards for

Ensure that 100 percent of public fleet vehicles run on alternative fuels Ensure that 100 percent of public fleet vehicles run on

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting Plant 100,000 new trees and

• Solar America City (Community solar roadmap)

• Solar America Showcase (Public facilities and lands)

• Home of Solar America Initiative Grant Recipients (SunPower, Nanosolar, Solopower)

Strategic Partnership with Dept. of Energy

Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources Receive 100 percent of our electrical power from clean

Build or retrofit 50 million square feet of green buildings Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy Divert 100 percent of the waste from our landfill and

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development Adopt a General Plan with measurable standards for

Ensure that 100 percent of public fleet vehicles run on alternative fuels Ensure that 100 percent of public fleet vehicles run on

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting Plant 100,000 new trees and

Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs Create 25,000 Clean Tech jobs

Reduce per capita energy use by 50 percent Reduce per capita energy use by 50 percent

Receive 100 percent of our electrical power from clean renewable sources Receive 100 percent of our electrical power from clean

Build or retrofit 50 million square feet of green buildings Build or retrofit 50 million square feet of green buildings

Divert 100 percent of the waste from our landfill and convert waste to energy Divert 100 percent of the waste from our landfill and

Recycle or beneficially reuse 100 percent of our wastewater (100 million gallons per day)

Adopt a General Plan with measurable standards for sustainable development Adopt a General Plan with measurable standards for

Ensure that 100 percent of public fleet vehicles run on alternative fuels Ensure that 100 percent of public fleet vehicles run on

Plant 100,000 new trees and replace 100 percent of our streetlights with smart, zero emission lighting Plant 100,000 new trees and

Strategic Partnership with SolarTech Industry• Industry collaboration to grow solar industry

through standards, training, financing & innovation

• SolarTech Center of Excellence in San Jose (1290 Parkmoor Ave.)

• Partnerships with industry leaders, utilities, local governments, utilities, NASA-Ames, University of California System, Santa Clara University, San Jose State, Carnegie Mellon, and local community colleges

Clean Tech Strategy: Driving Innovation

Key Areas for City Support:

• Urban utility-scale renewable power generation (Concentrated Solar Power (CSP), Concentrated Photovoltaic systems (CPV), wafer silicon, Cadmium Telluride Solar

Technology (CdTe), Copper Indium Gallium Selenide Solar Technology (CIGS), hybrid CSP w/ biogas or two-way fuel cell, etc)

• Energy storage & distribution

• Green building materials, energy efficiency products & control systems

• Transportation (mass transit, alternative fuels, integration of SV technologies, etc)

• Located in San Jose, Calif., UL's 34,000 square-foot Photovoltaic Technology Center of Excellence increases testing capacity for the renewable energy industry and enables manufacturers to get UL-Listed PV products to market faster.

• The state-of-the-art lab's 14 test chambers and two solar simulators provide indoor and outdoor testing capabilities to evaluate photovoltaic modules and panels, and a wide variety of power systems and power systems accessory equipment.

• The facility offers a full portfolio of pre-certification services, including R&D and training.

Underwriters Laboratories Opens Largest Commercial North American Photovoltaic Testing and Certification Facility in Silicon Valley

The Demonstration Partnership Policy provides a framework for engagingin and evaluating demonstration partnerships for new technologies and products.

The Policy enables the City to enter into mutually beneficial partnerships such as pilot projects, demonstration/testing or mutual development opportunities.

The primary goals of the Policy are to:

1. Create a streamlined process for creating demonstration partnerships.

2. Maintain good business practice and assure added value to the City.

3. Encourage technology firms/start-up companies to innovate locally, participate in incubators, and locate/grow in San Jose.

4. Advance the City's Green Vision and Economic Development Strategy and to position San Jose as a technological showcase of cutting-edge innovation.

Demonstration Partnership Policy

• Have an idea or new solar technology that San José might be interested in?

• Contact Mary Tucker from Environmental Services Department.

• mary.tucker@sanjoseca.gov

Demonstration Partnership Policy

A key factor in reducing the installation costs of solar systems is the creation of appropriate training programs and certification standards.

Workforce Development

Solar Installation Training• San Jose City College with the assistance of the City of San Jose and the SolarTech

Initiative has developed an industry approved Solar Installation Technician curriculum. (North American Board of Certified Energy Practitioners (NABCEP Certified)

Solar Manufacturing Training• San Jose City College with the assistance of the City of San Jose, the SolarTech

Initiative and the Silicon Valley Technology Center’s Silicon Valley Photovoltaics Development Center are currently developing a Solar Manufacturing Technician curriculum

Workforce Development

• Attract and retain businesses that contribute to a healthy California economy; • Provide workers with secure jobs that pay good wages and have opportunities

for advancement; • Assist employers to successfully compete in the global economy; and • Promote the benefits and ongoing investment of training among employers.

One of the biggest challenges solar technology companies face as a growing industry is the severe shortage of qualified workers. The Employment Training Panel provides financial assistance to California businesses to support customized worker training to:

Employment Training Panel

Business Assistance ProgramsSpecial Tenant Improvement ProgramExpedited development permit process lead by a team of expert city staff to approve permits and facilitate development permit applications within hours of submittal

• Benefits: expedited plan check and enhanced inspection service• Plan check fee deferrals

Industrial Tool Installation ProgramExpedited development permit process lead by a team of expert city staff to approve permits and facilitate capital equipment permit applications within hours of submittal

• Benefits: expedited plan check and enhanced inspection service• Plan check fee deferrals

Business Assistance ProgramsFacade Improvement Program (FIP)Provides assistance to business and property owners within Redevelopment Project Areas.

The FIP offers:• Free architectural design services. • Permit processing and fee payment assistance. • Bidding and construction management assistance. • Non-historic buildings eligible for up to $40,000 for every 60 linear feet of building façade.• Historic Buildings eligible to receive $45,000 per 60 linear feet of building façade.

Signage Grant Programprovides financial assistance to eligible commercial businesses to install new signage or upgrade existing signage in order to create a positive commercial environment in Redevelopment Project Areas. The maximum potential Signage Grant is $12,000 per eligible business.

Employee Hiring CreditDeduct up to $37,440 for each qualified employeeOver a five year period on State Income Taxes.

Sales and Use Tax CreditA sales tax credit for new machinery and components purchased is available and can reduce State Income Taxes.

Business Expense DeductionCertain depreciable property purchased may be deductedas a business expense in the first year.

Net Loss CarryoverLosses may be carried over into years in which taxable income is earned.

Enterprise Zone Benefits

Industrial Development Bonds• Job-generating manufacturers are eligible for $500,000 - $20,000,000 in

financing as well as state and federal tax exemptions for any loan belowcommercial market rates.

Clean Tech Jobs Fund• To ensure that San Jose is a community of choice for innovative Clean Tech

companies, the City of San Jose created a new Clean Tech Jobs Investment fund to help transform San Jose into a world center of clean tech innovation. This $2.5 Million fund will be used to attract a diverse collection of emerging clean technology companies and vital business support services into Redevelopment Project Areas in San Jose

Financial Incentives

On February 17, 2009, President Obama signed the Recovery Act to stimulate the faltering economy and specifically to create or save 3.5 million jobs over the next two years.

This large and complex $787 billion stimulus package provides $288 billion in tax relief, $144 billion in state and local fiscal relief, and $355 billion for federal social and spending programs.

American Recovery and Reinvestment Act

• The City of San José remains actively engaged in tracking and pursuing funding opportunities through the Recovery Act.

• As of July 2009, it is estimated the City will receive over $56 million in Recovery Act funds through a combination of formula and competitive allocations.

• Recovery Act-funded construction activity will soon improve major taxiways at San José Mineta International Airport and resurface various streets throughout the City, as we begin to utilize Recovery Act dollars to stimulate the local economy and create jobs.

• The City of San José has identified 31 projects valued at $846 million that can start construction in less than 6 months and are anticipated to create more than 5,000 jobs.

San José Recovery Act Funds Allocation

San José Recovery Act Funds Allocation (over $56 million)

San José Recovery Act Funds Allocation (over $56 million)

Funding Program Benefits to San José Technology Expand broadband technology to libraries and community

centers

Energy Implement energy efficient improvements to city facilities and residential buildings

Water Expand the use of recycled water throughout the City and provide for clean drinking water

Public Safety Hire new police officers, purchase officer safety equipment and crime fighting technology, and improve fire stations

Airport Provide baggage screening system, runway improvements, and airport facility improvements

Housing Create affordable housing opportunities and prevent homelessness

Economic/Workforce Development Provide employment and training services to youth and adult individuals

Transportation Resurface streets, expand Diridon Station, and extend BART to Silicon Valley and construct High Speed Rail

Energy Recovery Act Projects ($8.8 million)Project Name Project Description Recovery Act

FundingAnticipated

Start of Activity

Programmable LED Streetlights

Funded by the Department of Energy's Energy Efficiency and Conservation Block Grant, these Recovery Act funds will be used to replace approximately 1,500 Low Pressure Sodium streetlights with programmable LED lights equipped with advanced controls and communications to maximize energy efficiency and savings.

$2,000,000 Fall 2009

Energy Efficiency Improvements on City Facilities

Funded by the Department of Energy's Energy Efficiency and Conservation Block Grant, these Recovery Act funds will be used to install cost-effective energy efficiency measures (HVAC, lighting, variable frequency drives and retro-commissioning) at city facilities which have high energy costs and have been identified as good candidates for priority retrofits.

$4,090,060 Fall 2009

Municipal Solar Programs

Funded by the Department of Energy's Energy Efficiency and Conservation Block Grant, these Recovery Act funds will be used to install solar hot water systems at fire stations, conduct solar and energy efficiency audits and fund technical assistance related to the City's Solar Program in project identification, design/build processes, project engineering financing options, proposal and contract development services for the installation of solar electric, solar hot water and energy efficiency projects.

$2,750,000 Fall 2009

Program Totals: $8,840,060

• The Department of Energy (DOE) announced a funding opportunity for up to $10.5 million to increase the ability of local governments to accelerate solar energy adoption and workforce development.

• DOE will provide local governments across the U.S. with useful, timely information on increasing solar energy use with this new funding opportunity.

• DOE has encouraged local governments to take a comprehensive approach to solar energy adoption, one that includes workforce development and green jobs training, economic development through support for a local solar industry, and financial incentive programs that help citizens make investments in solar energy.

U.S. Department of Energy (DOE) Funding Opportunities

For more information and assistance, please contact the San Jose Redevelopment Agency:

Leslie Parks, Director of Industrial Development(408) 795-1843 | Email: leslie.parks@sanjoseca.gov

or

Don Burrus, Development Officer(408) 795-1846 | Email: don.burrus@sanjoseca.gov

To download this presentation, visit my web site at:www.sanjoseca.gov/district4

create + innovate + conservewww.sjredevelopment.org