Green Growing the Economycfqc.org/wp-content/uploads/2019/04/ExploreEcoNomincCenterRepo… · The Eco-Nomics project is sponsored by the Association of Washington Cities Center for

Growing the

Exploring an Eco-nomic Center

AWC Center for Quality Communities

in Washington State

GreenEconomy

Executive Summary | March 2019Full report available at www.cfqc.org

AcknowledgmentsThe Eco-Nomics project is sponsored by the Association of Washington Cities Center for Quality Communities (AWC-CQC). AWC-CQC is committed to helping Washington cities respond to a changing climate and culture and bringing together the leadership necessary to build the green economy in Washington State. The project is a collaborative effort with partners from business, government, education, cities, and other organizations.

Prepared byAssociation of Washington Cities Center for Quality Communities Paul Roberts, Project Director and Lead Author, Paul Roberts LLC Community Attributes, Inc

Association of Washington Cities Center for Quality Communities 1076 Franklin St. SE, Olympia, WA 98501 360.753.4137 1.800.562.8981 www.cfqc.org

The material contained in this publication may be used and copied with permission from the Association of Washington Cities Center for Quality Communities. Any resale or other distribution of this material without the consent of AWC CQC is prohibited.

The full Growing the Green Economy study is published at www.cfqc.org.

© Copyright 2019 Association of Washington Cities Center for Quality Communities


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A changing climate creates significant challenges and opportunities on a global, national and regional scale. Governments and businesses around the world are responding to climate change with strategies to mitigate (reduce

greenhouse gas emissions and transition to renewable energy) and adapt (prepare for changes in storm events, floods, droughts, fires, sea level rise, and more).

Mitigation and adaptation requires innovative engineering, technologies, and products to address myriad changing circumstances. Responding to climate change also requires developing a green economy with a range of sectors: energy, water, agriculture, transportation, health care, forestry, business, finance, insurance, and more.

The US Defense Department describes climate change as a “...significant challenge for the United States and the world at large”, calling it a “threat multiplier”, increasing severe weather and rising sea levels with destabilizing impacts on food and water.1 A growing number of scientific assessments point to accelerating climate impacts and call for more urgent action. Successful responses demand new collaborations that more fully engage public and private sectors, academia and NGOs in building the green economy.

Washington State is well positioned as a global center to help build the green economy. Critical state attributes include: strong public and private sector support responding to climate change; corporate and business leadership with global markets and supply relationships; a supportive culture, political will and strong environmental values; world class higher education institutions engaged in research and development (R&D) responding to climate change; and capacity in Internet and communication technology (ICT), artificial intelligence (AI) and venture capital.

Introduction and Executive Summary

Business & Industry

EducationR&D

Workforce training

State & local government

Culture

Eco-Nomic Center

RecommendationsCreate an Eco-Nomic Center in Washington State to serve as a clearing house

Invest in educational R&D and workforce training

Create a Water Innovation Center in Washington State

Create a Clean Energy Center

Integrate ICT capabilities in all four business groups

Encourage smart grid technologies

Expand focus on cross-laminated timber

Expand R&D in agriculture and food production

Develop different economic models for assessing risk, managing assets, and financing infrastructure

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2

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Growing the Green Economy In Washington State (Eco-Nomics) is a high level examination of four industry sectors essential to addressing climate change: energy, water, agriculture and forestry, and building materials. Washington State has deep roots in all four and is recognized as a leader in clean technology in all of them.

This analysis examines how well Washington’s economy is positioned to provide new clean technologies, manufacturing capabilities, research and development, and education and workforce training to meet emerging trends and opportunities. The Eco-Nomics project is a first step toward development of an Eco-nomic Center in Washington State focused on the green economy.

Partners

Center for Sustainable Infrastructure | City of Arlington

City of Bellingham | City of Everett | City of Marysville | City of Seattle

City of Spokane | City of Tacoma | Clean Tech Alliance

Community Attributes, Inc. | HDR | King County Parks and Natural Resources

| McKinstry | Puget Sound Energy | Puget Sound Regional Council

Pure Blue | Snohomish Economic Development Alliance

Snohomish and King County Master Builders

Washington State Department of Natural Resources

University of Washington | Washington State University

The full study

is published at

www.cfqc.org.

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Summary of findings and recommendations

Washington’s relative position as a leader in the four sectors is measured based on the strength of existing economic activity, potential for future development, and the relative position vis-a-vis national and global market demands and trends related to clean technology. The study found potential for new opportunities, business expansion and development in all four sectors. However, in water and energy, Washington State has the potential to emerge as a significant national and global leader. In building materials, and agriculture and forestry, opportunities also exist for lucrative business development and investments.

Specific recommendations for the four business sectors are identified under Sector Roadmaps and Recommendations in the full Growing the Green Economy study, published at www.cfqc.org. The following are key findings and overarching recommendations:

Create an Eco-Nomic Center in Washington State to serve as a clearing houseBuilding the green economy in Washington State requires

collaboration and coordination, advocating for additional resources, and removing barriers. There is an urgency to this work, bringing together elements of the private sector, public sector, higher educational (R&D and workforce training), and non-government organizations (NGOs). Currently, there is no central place identified for this work. An Eco-Nomic Center should be created to bring these elements together.

An Eco-Nomic Center would serve as a clearing house, adding value to work already underway. For higher education, it would help inventory existing efforts in R&D and workforce training. For the private sector and NGOs, the Center would help identify targets of opportunity, promote marketing a clean—green—energy economy and identify and remove barriers. And, for the public sector, the Center would help cut across silos, identify and address barriers, and advocate for policies, infrastructure, resources, and best practices.

Invest in educational R&D and workforce trainingEconomic sectors (industry groups) are defined in part by the interactions of educational institutions with the private sector. Educational institutions provide basic research and workforce

training, and the private sector applies these assets in developing goods and delivering services. The relationships are porous, allowing and encouraging human resources to move freely between academic and private institutions, and even between private sector competitors.

1

2

“An Eco-Nomic

Center would

serve as a

clearing house.”

4

For example, technology sectors centered around the San Francisco, Boston and Seattle metropolitan areas rely on major research universities (e.g. Stanford, Harvard & MIT, and University of Washington (UW) & Washington State University (WSU) respectively) to conduct research essential to those particular industry groups. Workforce training is undertaken by these universities as well as other four- and two-year educational institutions and private sector education and training initiatives.

Washington’s two major research universities (WSU & UW) have nationally recognized programs focused on research and education related to water, energy, agriculture, forestry, and environmental science. Other Washington educational institutions, colleges and community colleges have dedicated R&D and workforce training. For example, the Center for Sustainable Infrastructure (a contributor to this study) partners with the University of Oregon and Portland State University, and Western Washington University’s Institute for Energy Studies is one of the only bachelor’s degree programs in the country to combine technology, economics, business, and public policy at the undergraduate level to prepare students for jobs in the new energy economy. Over the last three years, enrollment in the Institute for Energy Studies has more than doubled.2

Demand for energy workforce training at community colleges across Washington state continues to grow. In the last 10 years, workforce training programs in the state quadrupled, from five to 20. Enrollment in training in key clean energy industries like wind, solar, sustainability, and smart buildings is growing at almost 12 percent.3

As infrastructure and workforce age and new technologies emerge, the burden will fall on higher education to advance R&D and educate and train a new workforce. Education initiatives are needed to prepare for new realities of integrated systems, smart grid, ICT, systems management, new energy efficient products, infrastructure, business, economics, and finance.

The study recommendsInventory higher educational resources, consider how best to support and marshal them to respond to a changing climate, and target public and private investments to meet new realities.

Create a Water Innovation Center in Washington StateThe availability and supply of fresh water is a present and emerging crisis across the globe. Climate change will exacerbate this crisis.

All water is local. Addressing water supply is challenging as it is inherently place-bound, shaped by unique geographic, geological and meteorological characteristics. Communities are organized around water sources such as rivers, lakes, aquifers, or wells—all fed by precipitation. Opportunities to improve supply are limited, but include conservation, rain capture, re-use, and wastewater treatment.

3

“Economic

sectors (industry

groups) are

defined in part by

the interactions

of educational

institutions

with the private

sector.”

5

While water sources are unique, demands are more similar: potable (drinking and human consumption), irrigation, industrial uses, wastewater (both a supply and demand factor), surface water, renewable energy, and natural resources sufficient to support natural systems. Addressing demand, efficiencies in water delivery, wastewater treatment, and purification present significant opportunities that may be exportable to other localities.

Washington State is well positioned to be a leader in water, serving potentially broad markets. As stated by Egils Milbergs of Pure Blue: “The Global Water Crisis can be an economic development opportunity by creating a water innovation ecosystem that increases the efficiency, resilience and adaptive capacity of Washington's water infrastructure. This can be realized by connecting and aligning players toward shared strategies, goals and outcomes.”4

There are markets locally, nationally, and globally for new technologies, products and services addressing potable water, wastewater, irrigation, surface water, industrial uses, and efficiencies. R&D centers in Washington’s higher educational institutions are already engaged in this work. Washington companies are developing and applying solutions to water issues. Further developing opportunities will require focused investments and partnerships on the part of public and private sectors and academia. It will also require marketing resources and assets nationally and internationally. Washington State is well positioned to meet these challenges.

Encourage and advance development of One Water conceptOne Water is a way of looking at water and resource management in a holistic manner. This approach cuts across traditional utility and water system silos, placing an emphasis on reuse. Unprecedented changes in the water industry provide both a challenge and an opportunity to rethink the fundamentals of how we manage water, wastewater, surface water, and utilities. One Water is integrating systems previously managed separately and valuing natural systems as a part of water resource management.5

The One Water concept expands the menu of technology and solutions available to providers and consumers for water recycling, reuse, and integrated systems. In addition to traditional water systems, One Water strategies often involve broader community objectives such as land use, green infrastructure, disaster preparedness, gray water, energy, and more.

Integrated One Water systems can significantly reduce infrastructure costs while improving water resource management. Advancing One Water systems development should be encouraged.

The study recommendsWashington State has the capacity to develop opportunities responding to the growing needs of a parched planet. Leaders in public sector, private sector and academia should come together to consider a Water Innovation Center in Washington State. The key elements are already here.

“The Global

Water Crisis

can be an

economic

development

opportunity.”

Egils Milbergs, Pure Blue

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Create a Clean Energy CenterClean energy sources and efficient energy use are key to responding to climate change and reducing greenhouse gas (GHG) emissions. Washington State is behind the curve in large scale production of photovoltaic cells and wind turbines relative to China or Germany.

However, the State is well positioned to lead in energy efficiencies, energy smart technologies and emerging clean technologies.

Washington State is a pioneer in the global clean tech industry, home to the largest state trade association of clean tech businesses in the U.S. (The Clean Tech Alliance is a partner in this study); one of the world’s greenest buildings (Bullitt Center); companies such as McKinstry and Master Builders Association of King and Snohomish Counties (MBAKSC) ‘Built Green’ program pioneering building efficiencies; leading renewable energy production—anaerobic digesters and waste water biogas-to-pipeline RNG facility; and a #1 ranking for hydroelectricity production in the nation.6

Washington has developed competitive advantages across several energy industries according to the Department of Commerce 2017-2019 Proposed Strategic Plan for the clean technology industry: energy generation, energy storage, energy infrastructure, energy efficiency, and transportation.7 Many Washington businesses are at the forefront of clean technology, are members of the Clean Technology Alliance, and are contributors to this study including McKinstry, HDR Engineering, and Puget Sound Energy. Washington’s educational institutions are leaders in R&D and workforce training related to clean technologies.

The study recommendsThe Clean Technology Alliance provides the essential framework for a Clean Energy and Technology Center in Washington State. Leaders in public sector, private sector and academia should consider this model, focusing investments and supporting clean energy.

Integrate ICT capabilities in all four business groupsWashington State has some of the most sophisticated manufacturing technology capabilities in the world with industries such as aerospace, technology, biomedicine, bioengineering, and more.

Throughout this study, the integration of ICT is identified as a prospect for new business development. The sophistication of sensor technology is improving while costs are going down. In water and energy, the integration of ICT is already adding to efficiencies and conservation. Integration of ICT in agriculture and forestry and building materials is emerging in many new ways.8

The study recommendsEngage Washington’s technology and manufacturing companies, as well as academia and the public sector, in more focused integration of ICT in efficiently managing resources.

5

4“Washington

State is a pioneer

in the global

clean tech

industry.”

7

Encourage smart grid technologiesThe smart grid is evolving today, and based on the dynamic nature of energy and ICT technology, it will need to be flexible, capable of two- way functions, simultaneously receiving and sending electrons, and balancing fluctuations in demand. For example, as we increase the numbers of electric vehicles (EVs), home solar power and wind

generation, more energy efficient appliances and conservation measures, the grid will need to balance sources and supply of electricity.9

The study recommendsSmart technologies and two-way grid systems are priorities for future investments.

Expand focus on cross-laminated timberCross-laminated timber (CLT) shows promise as a sustainable building material. The advantages of CLT include smaller carbon footprint, construction efficiencies, fire safety, structure and weight,

better forest management, and reduced project costs. Research into applications should continue, and the Catalyst project in Spokane can help inform this effort. Additionally, identifying and addressing market and regulatory barriers will help realize the promise of CLT. These include changes to building codes, addressing market conditions that favor traditional materials, and labor issues including training and acceptance in the building industry.

The study recommendsExpand R&D and promotion of CLT, and work with local governments, business and labor to remove barriers.

Expand R&D in agriculture and food productionIncreasing food production and efficiencies in water and energy will help define the future of agriculture in the face of a changing climate. This is an opportunity for targeting new business development and

investments. Washington’s higher educational institutions have done impressive work in agricultural research led by Washington State University. For example, the relationship of food, energy and water (FEW) presents opportunities for further R&D in Washington.10

Additionally, research and applied science in agronomy, biology, bio-engineering, and genetics are prominent in Washington State. Several private companies and NGOs are working in agriculture and the agricultural supply chain including water, waste water, energy, genetics, biology, and more.

The study recommendsNew sustainable farming practices are ripe for investments. More investments and business development should be encouraged.

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7

6

“New sustainable

farming practices

are ripe for

investment.”

8

Develop different economic models for assessing risk, managing assets, and financing infrastructureEvents associated with climate change (fires, storms, floods, hurricanes, and sea level rise) are occurring with greater frequency

and intensity with major impacts on infrastructure. Historic weather and climate patterns are no longer reliable predictors of the future. These events increase risk and uncertainty, and in turn increase capital costs and demand on capital markets.

The United States spends billions of dollars each year to maintain, upgrade and build new water and energy infrastructure. Most nations around the globe are doing the same. Infrastructure projects compete for capital in global markets, often financed with debt instruments running for 20 to 30 years (to 2040 or 2050). In many instances, the infrastructure being built has a life expectancy of 30 to 50 years or more (2050 to 2070+). These time frames correspond with anticipated growing demands for capital spending associated with reengineering and redeveloping coastal infrastructure, responding to sea level rise, and other demands driven by climate change. Competition for capital will likely intensify and new ways and means to finance infrastructure is needed.

The study recommendsRecognize risks associated with climate change as a significant economic issue and develop financial, insurance and legal strategies to address it. Washington’s higher educational, business and finance institutions are well positioned to lead in these efforts. Higher educational policy organizations such as the Ruckelshaus Center or the Evans School of Public Policy can be called on to explore these issues.

9“Recognize risk

associated with

climate change

as a significant

economic issue.”

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Methods and data

The Eco-Nomics project is a high-level review of four industry sectors in Washington State (energy, water, agriculture and forestry, and building materials) deemed essential to respond to climate change. The study is not intended to serve as an exhaustive treatment of this subject. Rather, it is intended to identify targets for business opportunities, investments, and policy initiatives to build the green economy in Washington State. This work is limited by budget and time and additional analysis is anticipated for all four business sectors.

AWC-CQC retained Community Attributes Incorporated (CAI) to conduct an assessment and survey of clean technologies, trends, capabilities, and assets globally and in Washington State related to the four industry groups. The “Green Economy Industry Roadmap Meta-Analysis” (Appendix A) analyzed global trends in clean technology reviewing existing literature, research, and interviews with partners and industry leaders.

A wide range of sources were used in the research, compilation and synthesis of the assessment: reports, news articles, data on industry trends from national and international organizations, and more than 30 interviews with industry leaders, government agencies, investors, and trade associations. The assessment did not conduct any original research.

Following the initial assessments, CAI conducted a review of clean technology assets and capabilities in Washington State including industry profiles, leading trends and capabilities, work force and human capital, and research and development. CAI assessed how well positioned Washington businesses and organizations are to take advantage of leading clean technology trends and opportunities.

The scope and scale of the CAI assessment is not intended to provide an exhaustive review of these four industry groups. As the title indicates, it is a meta-analysis of Washington’s strengths, weaknesses and opportunities relative to the dynamic factors associated with climate change and the growing demand for clean technologies.

Using the CAI assessment, AWC-CQC developed the body of the report and Sector Roadmaps. This work included additional engagement with study partners, and additional research including reports from the Center for Sustainable Infrastructure (CSI) and the Metropolitan Center for Applied Research & Extension at Washington State University. The report was then prepared by AWC-CQC for distribution to study partners, Washington cities, economic development organizations, and other business, government and educational institutions.

Additional studies and articles that informed this study are listed in “Appendix B” to this report including CSI “Rewiring the Northwest’s Energy Infrastructure” and “A Northwest Vision for 2040 Water Infrastructure”.

Read the full

Growing the

Green Economy

study at

www.cfqc.org.


1076 Franklin St. SE

Olympia, WA 98501

www.cfqc.org

1“Quadrennial Defense Review 2014” Chapter 1: Future Security Environment p. 8; United States Department of Defense2“Green Economy Industry Roadmaps”, Community Attributes Inc. (CAI); p. 183Ibid #2, p. 174Ibid #2, p. 475“A Northwest Vision for Water Infrastructure,” Center for Sustainable Infrastructure, The Evergreen State College; p. 196Ibid #2. p. 147Ibid #2. p. 148Ibid #2. p. 139Renewing the Northwest’s Energy Infrastructure”, Center for Sustainable Infrastructure, The Evergreen State College; pp. 31-33 10Interview and research information provided by Dr. Brad Gaolach, Director, Metropolitan Center for Applied Research & Extension; Food Energy Water (FEW) at WSU, and WSU: http://csanr.wsu.edu/publication-library/climate-change/

Growing the

Exploring an Eco-nomic Center


in Washington State

GreenEconomy

Full Report | March 2019Full report available at www.cfqc.org

3

Table of contents

Energy ...........................................................................................................................................1 Recommendations ........................................................................................................9

Water .......................................................................................................................................... 13 Recommendations ..................................................................................................... 21

Agriculture & forestry ...........................................................................................................25 Recommendations ..................................................................................................... 34

Building materials ................................................................................................................. 35 Recommendations ..................................................................................................... 39

Footnotes/Endnotes.............................................................................................................41

Appendix A – Green Economy Roadmap ....................................................................... 43

Appendix B .............................................................................................................................. 45

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Energy

When we think of the green economy, what comes to mind is clean, renewable energy and energy efficiency. Clean energy is key to responding to climate change and reducing GHG. Most GHG in the atmosphere today

was generated as a byproduct of burning fossil fuels—coal, gas and oil. Because of our reliance on hydropower in Washington State and the corresponding low GHG footprint of our electricity supply, approximately 50% of GHG in the state comes from internal combustion engines. Mitigation strategies (reducing GHG) generally focus on reducing consumption of fossil fuels and increasing reliance on clean energy and technologies.

Clean energy generally refers to reducing energy use and any source of power or fuel that minimizes pollution or harm to the environment (e.g. producing less GHG emissions). Clean energy encompasses industries such as energy efficiency, grid modernization and storage, renewable fuels, alternative transportation, and low carbon fuels.

The pursuit of clean energy is at the heart of the world’s aspirations for a cleaner, greener future as reflected in 197 countries having signed the Paris Agreement on Climate Change. Moving from fossil fuels to renewable sources such as solar and wind is key to achieving social, economic and environmental goals.

See Appendix A, CAI Study pp. 4-19; and Appendix B, Center for Sustainable Infrastructure “Rewiring the Northwest’s Energy Infrastructure”

Solar Wind Energy smart technologies Bioenergy Other

Sources: Bloomberg New Energy Finance, Clean Energy Investment Trends, 2017; Community Attributes Inc., 2018

Note: “Other” includes biomass & waste, biofuels, geothermal, small hydro, maring and low carbon services and support. The clean energy investment total excludes hydroelectric projects of more than 50 MW. However, for comparison, final investment decisions in large hydro were likely to have been worth $40 to $50 billion in 2017.

100%

30%

10%

0%

20%

40%

50%

60%

70%

80%

90%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Global new investment in clean energy by industry, 2004-2017

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Overall global investment in clean energy is up 3% from 2016 to the second highest annual figure ever. The latest figures from Bloomberg New Energy Finance show that global clean energy investment was $335.5 billion in 2017, up from $324.6 billion in 2016 and only 7% short of 2015’s record investment of $360 billion.

Solar power generation leads the way in clean energy investment by industry and moves from third biggest industry in 2006, behind wind and biofuels, to the biggest industry by 2011. Solar investment globally was at $161 billion in 2017, an increase of 18% from 2016, despite reductions in cost.

Wind power generation comes in second in terms of investment in 2017, at $107.2 billion. Although 2017 investment levels fell by 12%, there were record breaking projects financed both onshore and offshore.

Energy smart technologies come in third with investment in digital energy, smart grids, power storage, hydrogen and fuel cells, advanced transportation, and energy efficiency reaching roughly $49 billion in 2017.

Key trends in the clean energy industry include:

• Energy efficiency, natural gas and renewable energy industries provided roughly 3 million jobs in 2016.

• Energy efficiency was the top employer within the sustainable energy industries, and solar was the fastest growing job-creator among all electricity generation technologies.

Sources: Bloomberg New Energy Finance, Clean Energy Investment Trends, 2017; Community Attributes Inc., 2018

30

10

0

20

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

U.S. new investment in clean energy, 2004-2017$ bn, Nominal

10.4

16.5

56.956.458.4

52.2

44.6

52.9

62.3

46.6

35.1

43.647.1

34.6

3

• Household expenses on energy costs were at 4%, near an all-time low, while industrial prices also remained low, giving the U.S. a global competitive advantage for energy-intensive industries.

• U.S. new investments in clean energy tracked 2016 levels, at $57 billion, but saw a shift in capital deployment toward wind and energy smart technologies.

• Renewable generation increased from 15% to 18% of the total electricity mix in 2017, more than twice their concentration a decade ago. The expansion was mainly due to a rebound in hydro and an increasing number of wind and solar built in 2016 that had their first year of operation in 2017.

• The U.S. was for the first time a net exporter of liquified natural gas for every month of 2017.

• The role of corporations in the energy transformation industry is becoming more important, as more companies are looking to capture the benefits of energy efficiency and as the federal government back-tracks from national and international engagement on climate change issues.

Every year the Energy Department’s Office of Energy and Efficiency and Renewable Energy publishes “Revolution Now”, a report that documents the accelerated deployment of clean energy technologies that have made a big impact on the U.S. market. In 2016, Revolution Now focused on five clean energy technologies that are already providing benefits and are easily visible in our daily lives.

Wind powerIn 2015, wind power accounted for 41% of all new generation capacity built in the U.S. and there were nearly 74,000 megawatts (MW) of utility-scale wind power deployed across 41 states.

The success of wind deployment is owed in part to the recent decrease in wind prices from 7 cents/kilowatt-hour (kWh) in 2009 to an average of 2 cents/kWh today in some parts of United States.

Photovoltaic powerUtility-scale solar photovoltaic (PV) costs have dropped by more than 64% since 2008, expanding deployment of utility-scale PV. Total capacity grew 43% in 2015, reaching nearly 14,000 MW. Falling prices have led to the expansion of utility-scale PV to areas beyond the sunny Southwestern markets, such as east of the Rocky Mountains, Texas and Southeastern, and Midwestern parts of the country.

LED light bulbsLED A-type installations surpassed 200 million in 2015, more than doubling since the previous year. According to the DOE Revolution Now report, LED A-type bulb costs are around 94% lower than in 2008. Switching entirely to LED lights over the next two decades could generate $250 billion in energy savings in the U.S. Ongoing technology R&D improvements will continue to bring down costs and improve efficiency and performance of LEDs.

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Electric vehicles (EV)More than 490,000 electric vehicles have been sold in the United States as of August 2016. Battery technology is a key factor that impacts the cost of EV ownership, and both private and public organizations have invested in battery R&D. Between 1992 and 2012, Department of Energy (DOE) invested $1 billion in battery R&D, which advanced the state-of-the-art by six years and created $3.5 billion worth of economic value.

Another important factor for maintaining the momentum for EVs is improved and expanded infrastructure. Today, there are more than 35,000 public and private charging outlets in the U.S. DOE has plans to collaborate with utilities to accelerate EV charging infrastructure deployment.

Emerging technologiesIn addition to the five clean energy technologies mentioned above, DOE’s Revolution Now report also mentions emerging technologies that are expected to transform the energy industry over the next five to ten years11. These include fuel-efficient long-haul trucks, smart buildings, light weight materials for vehicles, fuel cells, grid-connected batteries, and 3-D printing.

Energy industry overview in Washington StateWashington is a leader in renewable energy due to the low price and abundant supply of hydropower and emergence of wind and solar. Ninety percent of Washington’s electricity comes from hydropower, solar, and wind, compared to just 11 percent nationwide. Washington is second in the nation only to California for electricity generated from renewable resources. However, due to reliance on hydropower and emergence of wind farms, solar has developed at a slower pace. In recent years, Washington has pushed forward with an ambitious agenda to become a global leader in the clean energy industry, owing in part to a unique intersection of Washington’s leading industries—aerospace, ICT, and agriculture.

According to the 2018 U.S. Energy and Employment Report (USEER), Washington state has roughly 150,000 energy jobs. Over 54,500 of those are ‘traditional’ energy workers. Another 62,500 are energy efficiency jobs, accounting for 2.8% of all U.S. energy efficiency jobs, which makes Washington a national leader in this industry. The largest number of energy efficiency employees work in traditional HVAC firms, followed by Energy Star & Efficient Lighting.12

Key strengths in WashingtonWashington state has been a pioneer in the global clean tech industry, boasting the largest state trade association of clean tech businesses in the U.S., one of the world’s greenest buildings (Bullitt Center), and a #1 ranking for hydroelectricity production in the nation. Washington has developed competitive advantages across several energy industries according to the state’s Department of Commerce 2017-2019 Proposed Strategic Plan for the clean technology industry: energy generation, storage, infrastructure, efficiency, and transportation.

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Clean energy resourcesThe state’s hydro system has set Washington on the path to becoming a leader in the clean energy industry. Washington also benefits from other resources including wind, solar, geothermal, and tidal.

Educational and R&D clusterThe state benefits from a strong network of educational and research institutions supporting clean energy such as the Pacific Northwest National Laboratory, University of Washington, Washington State University, and important trade and industry organizations, including the Washington Clean Technology Alliance, Washington Technology Industry Association, and Northwest Energy Efficiency Council.

Strong policy and government supportWashington’s clean tech industry benefits from strong public support through policy measures that aim to create a thriving innovation and entrepreneurial ecosystem. To attract investment, Washington state offers businesses a range of incentives including business and occupation tax reductions for manufacturers of solar energy systems, sales and tax credits for equipment that generates electricity using renewables, and one of the strongest energy codes for residential and commercial buildings.

Talented workforceWashington offers employers a highly talented and trained workforce. The presence of strong ICT, aerospace, and agriculture clusters, as well as world-class educational institutions, has attracted a skilled expert workforce that gives the state a clear competitive edge in research and manufacturing.

Leading companies and associated technologiesThe Washington State Department of Commerce estimates that the clean tech industry in the state employs roughly 57,000 workers and is supported by more than $1 billion in venture capital. The industry has over 900 companies serving more than 12 different industries and possessing over 195 clean technology patents.

Workforce training and educational institutionsThe Pacific Northwest Center of Excellence for Clean Energy has served the region for the past 12 years representing the needs and interests of the energy industry and labor partners. Their mission is to narrow the gap between employers’ demands for a highly skilled workforce and the colleges’ ability to supply work-ready graduates.

Demand for energy workforce training at community colleges across Washington state continues to grow. In the last 10 years, the number of workforce training programs in the state has quadrupled, from five to 20. Enrollment in training in key clean energy industries like wind, solar, sustainability, and smart buildings is growing at almost 12 percent annually.

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In addition to the programs at the community college level, Western Washington University established the Institute for Energy Studies in 2012. It is one of the only bachelor’s degree programs in the country to combine technology, economics, business, and public policy at the undergraduate level to prepare students for jobs in the new energy economy. Over the last three years, enrollment in the Institute for Energy Studies has more than doubled.

Washington State policy and government supportThe growth of the clean energy industry is reliant on coherent long-term energy policies, government led incentives and government commitment to investments in clean tech R&D, energy innovation and clean technology business ecosystem. State policies and incentives can make investments in clean energy more attractive by reducing cost barriers, lowering risk, and reducing regulatory compliance costs.

As established through Washington State Legislature (RCW 43.21F.010), Washington has three energy strategy goals:

• Maintain competitive energy prices that are fair and reasonable for consumers and businesses and support the state's continued economic success;

• Increase competitiveness by fostering a clean energy economy and jobs through business and workforce development; and

• Meet the state's obligations to reduce greenhouse gas emissions.

With the passage of initiative 937 in 2006 (the Energy Independence Act), Washington state became the second state after Colorado to pass a renewable energy standard requiring conservation and mandated that 15% of the state’s electricity come from renewable energy sources other than hydro by 2020.

In 2013, the state established the Clean Energy Fund through a $36 million investment. The purpose of the Clean Energy Fund is to expand clean energy projects and technologies statewide. The initial investment attracted an additional $60.5 million in outside funding. The Clean Energy Fund 3 is focused on grid modernization, electrification of transportation, R&D and demonstration, and solar programs.13

A range of forces are shaping the energy sector in Washington: climate change, renewable prices on par with fossil fuels, integration of ICT, aging infrastructure, aging workforce, and changing business models. Private, public and educational institutions are actively engaged in responding to these forces, and the outlook for developing an Eco-Nomic Center in Washington is strong.

Washington State has pushed forward with policies and an ambitious agenda to become a global leader in the clean technology sector including: renewable low carbon fuels, transportation, energy, ICT, smart grid, energy smart technologies, storage and distribution, and energy management. Washington’s energy portfolio is among the cleanest in the nation.

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The commitment to address clean energy and technology is reflected in State policy, educational institutions R&D and workforce training, private sector job base and investments, and support groups such as the Clean Tech Alliance (a partner in this study). A large number of companies in the state are engaged in a variety of businesses associated with clean energy and related technologies, products and services including ICT, energy efficient products, aerospace, and transportation (including electric vehicles and airplanes). Public and private energy utility providers have a long history purchasing and distributing energy from clean sources, more than 90 years in the case of hydro. They are also embracing transformative technologies, management and distribution models.

EducationFor many years Washington educational institutions have made significant commitments to energy and clean technology. This includes R&D, engineering and workforce training. As infrastructure and workforce age, and as new technologies emerge, the burden will fall on higher education to advance R&D related to infrastructure and to educate and train a new workforce. Educational initiatives will need to prepare for new realities: integrated systems, smart grid, ICT, systems management, and new energy efficient products and infrastructure.

A strong lineup of Washington’s educational institutions already share in this work – UW, WSU, Western Washington University (WWU), The Evergreen State College (TESC), Eastern Washington University (EWU), and the state’s community college network.

Areas for private and public sector initiatives and investmentsSystems integration is driving new investments in energy technology at all levels.New ICT is allowing interactive capabilities limited only by imagination. The old infrastructure model of centralized energy production and one-way delivery—electron distribution—is rapidly giving way to two-way interactive systems. Yesterday’s energy consumers are becoming tomorrow’s energy generators. This trend will continue, probably on a large and growing scale.

Smart grid and other technologies will require different interactive and integrated systems.Utilities will need to upgrade their distribution systems. Energy smart technologies with investments in digital energy, smart grids and microgrids, power storage, hydrogen and fuel cells, advanced transportation, and energy efficiency present new investment opportunities and management challenges.

Based on the dynamic nature of energy and ICT technology, the smart grid will need to be flexible, capable of simultaneously receiving and sending electrons, and capable of balancing fluctuations in demand. For example, as we increase the numbers of EVs, home solar power and wind generation, more energy efficient appliances and conservation measures, the grid will need to be more flexible and capable of balancing sources and supply of electricity.14

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Cyber security is an increasing concern.As smart internet connections expand, challenges of security also expand. The need to protect the grid and consumers from the darker side of the internet and misuse of information presents a challenge and an opportunity for new business development.

Energy storage is the key to managing the distribution grid, particularly with increased variables.Battery technology, storage options and operations that permit utility managers greater flexibility are essential. These evolving tools are the focus of new R&D in the energy industry.

Utility cost models are a growing issue for utilities.As energy efficiency improves and consumption declines, the sale of electricity and revenues also decline. However, the utilities’ fixed costs such as capital may remain relatively constant. These circumstances can produce a downward cost spiral resulting in higher utility rates. There is a need to develop different cost models as well as more flexible infrastructure.15

The internet of things will result in more sources and more efficient uses of electricity.These new technologies include integrating ICT into things like EVs, buildings, HVAC systems (heat pumps), waste water treatment, and household consumer goods such as refrigerators and dishwashers. All these things will “think” in terms of energy efficiency, consumption and in some cases production.

Buildings are new energy laboratories for conservation and efficiency.Led by McKinstry, MBAKSC, the Bullitt Center and other organizations, buildings are at the forefront of the energy revolution. Green building technology applies to homes as well as commercial structures and includes interactive energy technologies, integrated ICT, HVAC, water heating, and surface water management. Washington State is a leader in this field, and a section of this report, “Building Materials,” is dedicated to this industry.

Transportation is already one of the largest areas for new investments.Burning fossil fuels in internal combustion engines are among the largest source of GHG emissions—definitely the largest source in Washington State. The transition to EV technologies is a critically significant step toward reducing GHG and protecting clean air. There are many ways to address electrification of transportation and improving energy efficiency. It is clearly a ripe opportunity for clean technology investments.

Electrifying aviation.Electric vehicles are an accepted and growing part of our transportation network. However, electric planes are at the experimental stage. Boeing-backed startup Zunum Aero, based in Kirkland, is planning to deliver a hybrid-electric plane by 2022. Given the significance of the aerospace industry in Washington, development of electric airplanes is a prospective new business market to be encouraged in Washington.

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Biofuels, aviation biofuels and biochar are emerging low carbon fuel products being developed in Washington State.Biofuels are the product of energy from fiber or algae and biomass, aviation biofuels are a more refined version of biofuels, and biochar is fuel from wood waste. The WSU Center for Sustaining Agriculture and Natural Resources (CSANR) is working in R&D in this field, as are other higher educational institutions. The environmental benefits may vary depending upon the biofuel source. Washington State is well positioned to develop these types of low carbon fuels with an open window of opportunity to be a leader in this field.

Waste to energy systems such as biogas and anaerobic digesters.Agricultural waste and other wastewater can be sources of energy and heat. Anaerobic digesters can create a natural gas fuel for a variety of applications. The economic benefits from this waste source include providing a revenue stream from this clean fuel, reduced fuel and electricity costs, and cleaner water for irrigation. The environmental benefits include reducing or eliminating a source of waste and reducing GHG while producing a low carbon fuel. Washington State has been a leader in this technology, and WSU has been a leader in R&D.

RecommendationsFocus on making Washington State a national and world leader in clean energy and clean technology.The state has a long history in clean energy, a firm policy commitment to advance these objectives, and educational institutions, businesses, governments, and NGOs already committed to this work. However, the creation of an Eco-nomic Center focused on clean energy and technology will require further leadership from the State of Washington with partnerships from these other groups. Energy is a regulated industry, so leadership must come, at least in part, from a coordinated effort involving the State Department of Commerce, Department of Natural Resources, Utilities and Transportation Commission, and others. To be clear, these agencies are already leaders in this area.

Develop flexible grid and two-way energy management systems.Smart grid development is well underway in Washington, the United States and around the world. The development of the flexible grid capable of two-way energy management, leveling peaks and valleys from renewable sources, and delivering energy at optimal times is not far away. The integration of ICT is central to this effort and promises to improve energy efficiency. Investments in these emerging technologies will likely pay dividends and help inform other clean technology development. Both WSU and UW have received grant funding to develop smart grid demonstration projects.

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Transform energy markets and business models with new technologies and battery storage.New energy sources and energy consumption require flexible “electron management” demand strategies. For example, UniEnergy Technologies located in Mukilteo has developed systems to store and manage energy generated by renewable sources. Energy storage, EV technology, ICT, and microgrids will help shrink the carbon footprint, yet expand the complexity of managing the grid. New input/output, applied technologies and business models are needed.

Prioritize and invest in cyber security.Cyber security threats will continue to plague our world as we move to integrate ICT into all manner of things including energy and smart grid systems. As systems move toward greater interoperability and communications, they open portals for hackers. Washington is home to some of the top technology companies in the world with the necessary talent to help protect energy and ICT systems. Cyber security should be a top priority for state and national security, utilities, industries, and (in particular) energy.16

Develop investment models that meet tomorrow’s energy needs and avoid stranded assets.Smart investments will become even more important and potentially more difficult to make in today’s dynamic energy and technology environment. Energy is in the midst of a rapid technology transformation. It historically relied upon stable assumptions to make large scale capital investments intended to serve long periods of time (50+ years). Today, the assumptions of future technologies are less certain and the risks associated with large capital investments are greater. Utility providers want to avoid stranded assets that do not produce income, do not meet projected income targets, or have to be replaced and are a drain on the rate base. Thinking carefully up front can help reduce these risks.17

Develop the smart grid and clean fuels to accommodate a clean energy transportation system.Transportation is undergoing radical transformation. Fleets, cars, buses, and other vehicles are transitioning away from fossil fuels to electricity or other cleaner fuel sources. Even air transportation is experimenting with cleaner fuels. Improved battery technology is key to improving performance and reducing costs. As that happens, the energy supply and smart grid capabilities will need to accelerate.18

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Support green - more efficient buildings.Energy-efficient buildings present new business opportunities. New technology integration and ICT capacity are dramatically increasing energy efficiency and water use while reducing GHG. An example is the new Catalyst Building in Spokane built with CLT.

New, more energy efficient materials are being introduced into structures along with more efficient HVAC, lighting, energy systems, and many other improvements. Buildings, including homes, are becoming living entities.

In Washington State, McKinstry, the Master Builders ‘Built Green’ program, and the Bullitt Foundation have helped pioneer these new building technologies. McKinstry and the Master Builders are partners in this study.19

Cities take a direct role in the energy revolution.Cities are where most energy is used in buildings and transportation. They are also the primary utility providers for water, wastewater, solid waste, and in some instances electricity. Cities can bridge silos with their utility operations and integrate other operations as well. This is a new leadership opportunity for cities with the prospect of reducing energy costs, and GHG emissions while generating energy.20

Support greater expansion of ICT for energy efficiency and energy smart technologies.Sometimes referred to as the Internet of Things (IoT), the integration of ICT permeates our lives in almost every way. Washington State has one of the most sophisticated manufacturing capabilities in the world with industries such as aerospace, technology, biomedicine, bioengineering, and many more. The state excels in the integration of ICT technology.

Support research in Food Energy Water (FEW).The relationship of food production, water consumption and energy consumption is an emerging research area. Agriculture is energy intensive and agricultural waste is a source of energy. As population increases, demand for food, energy and water will also increase. The relationship between water, energy and food production is complex and should be examined with an eye toward greater efficiencies, energy opportunities and economic development. Pioneering research in FEW is underway at WSU.

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13

Water

Nothing is more fundamental to human wellbeing than access to fresh water. Water source, supply and management are facing unprecedented challenges across the globe. Population growth is driving increased demand for potable

drinking water, irrigation and industrial uses. Environmental degradation and the effects of climate change present challenges and stresses to water systems, disrupting historically reliable weather and hydrological patterns. Together, these factors create demands and opportunities for new practices, technologies and solutions for water resource management.

It is difficult to overstate the significance of water-related issues and the crisis status in some regions of the globe including parts of the United States. According to the United Nations Food and Agriculture Organization (FAO), the current food system is on track, in aggregate, to sufficiently supply the food required of the global population until 2050. However, the FAO projects that “many regions will face substantial water scarcity [resulting in] increasing competition, which will constrain agricultural production and affect the incomes and livelihood opportunities of many residents in rural and urban areas.” The same report finds that despite important gains in the global food production system, agriculture will continue to be the largest user of water globally, “accounting for more than half of withdrawals from rivers, lakes and aquifers, and will need to become increasingly efficient.”21

Water demandWorld population growth will place significant stress on global water supplies without concomitant improvements in water resource management. According to the United Nations Department of Economic and Social Affairs, between 2011 and 2050, the world population is expected to increase 33%, from 7.0 billion to 9.3 billion. Meanwhile, food demand and agriculture—the largest consumer of fresh water—will increase by 60%.

A significant share of population growth is expected to occur in urban areas. Between 1990 and 2016, the world’s urban population increased 78%, from 2.26 billion to 4.03 billion. According to the United Nations, the continuous robust growth of urbanization will result in 6.3 billion urban residents by 2050. This scenario may offer opportunities for innovation such as integrated urban water management. In any event, the growth in urban populations will require larger and/or more sophisticated systems for managing solid waste, potable water distribution, wastewater, water treatment, and stormwater.

Appendix A., CAI PP 49-68; Appendix B CSI “A Northwest Vision for 2040 Water Infrastructure”

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Municipal water systems, providing drinking water, water sanitation, hygiene and other water-related household needs, account for roughly 11% of freshwater withdrawals.22

3%

3%

8%

16%

32%

38%

Global freshwater withdrawls, consumption and wastewater production by major water use, circa 2010

Agriculture water consumption Agricultural drainage

Municipal water consumption Municipal wastewater

Industrial water consumption Industrial wastewater

Sources: The United Nations World Water Development Report 2017; Community Attributes Inc., 2018

Industrialization creates a strong need for more robust and scalable water treatment technologies to improve efficiency of use and treat industrial waste water. According to the Organization for Economic Cooperation and Development, water consumption by the manufacturing sector is projected to increase 400% by 2050.23

Water supply - all water is localExamining water on a global scale is useful to understanding big picture hydrology and supply and demand dynamics. However, it is necessary to look at smaller geographic scales to better understand and develop management strategies and technologies to address water issues. Significant regional and local characteristics must be considered in crafting strategies to address water needs. Ultimately, local watershed characteristics are the building blocks for these strategies. Water systems are based on local hydrological units usually defined by their source: rivers, aquifers and lakes. In many instances these hydrological systems cross political boundaries requiring complex management structures and agreements designed to meet unique local needs.

15

Across the globe there are thousands of water systems and water sources, each with long histories and cultural relationships. Understanding these unique relationships is important in developing management strategies that tackle future changes in supply and demand. In some instances, changing the cultural relationships with water sources may be necessary to view water as a resource to be preserved and managed. For example, river systems that have served as a means of conveyance for waste will need to be viewed as a source for water supply.

Climate change is disrupting water supply in many regions. Climate models and recorded data generally predict more frequent and intense storm events and longer dry periods—wet areas are wetter longer, and dry areas are dryer longer. More intense storm events deposit rain water in larger quantities for longer periods of time. Conversely, dry periods and droughts are extending longer under these same climate models.

In May of 2018, NASA released a study that tracked fresh water resources around the globe using multiple satellites from 2002 to 2016. The Gravity Recovery and Climate Experiment (GRACE) project gathered data to track how fresh water is changing and distinguished shifts in water storage caused by natural variability (e.g. wet periods and dry periods associated with El Nino and La Nina) from trends related to climate change or human impacts. “What we are witnessing is major hydrologic change,” said coauthor Jay Famiglietti of NASA’s Jet Propulsion Laboratory in Pasadena, California. “We see a distinctive pattern of the wet land areas of the world getting wetter - those are the high latitudes and the tropics - and the dry areas in between getting dryer. Embedded within the dry areas we see multiple hotspots resulting from groundwater depletion.” (Visit http://grace.jpl.nasa.gov or http//www.csr.utexas.edu.grace)24

Fresh water is essential for life, and all communities depend on some type of delivery system to provide it. As noted, communities are organized around water sources fed directly or indirectly by precipitation in the form of rain or snow. Climate change and natural variability are altering historic precipitation patterns, supply and storage. While the sources vary and are unique to given geographies, competing resource demands generally exist in all water systems and include:

• Potable - drinking and human consumption,

• Irrigation - crop and agricultural use,

• Industrial - uses for manufacturing and processing,

• Wastewater - both a supply and demand factor, and

• Natural resources - sufficient quality and quantity to support natural systems.

Water managers are facing new challenges addressing water supply and demand: increases in demand, changes in historic hydrological patterns, technological changes, aging infrastructure, and an aging workforce. Together, these factors bring revolutionary change to water management, finance and governance.

16

Washington State - Water management and economic developmentWashington State has a rich history in managing water resources. Public health and safety are at the core of water management and development of centralized water systems in Washington State and in the United States. In 1970 Washington developed Water Resource Inventory Areas (WRIA) to manage water resources based on natural watershed boundaries and manage competing demands including natural resources.

Washington has 62 WRIAs. The WRIAs were originally established jointly by the state’s natural resource agencies with input from Washington’s tribal governments, municipal water users and agricultural interests. The WRIA process is an example of how resources and cultures intersect in managing water resources.

In 1992 the Legislature passed the Reclaimed Water Act, encouraging development and use of reclaimed water, requiring consideration of reclaimed water in wastewater and water supply planning, and recognizing the importance of reclaimed water as a resource management tool. Today, water reuse in Washington includes agricultural, forest, golf course, turf and urban landscape irrigation, public and private uses, groundwater recharge, aquifer storage, and environmental uses such as wetlands enhancement and stream-flow augmentation.

Washington’s institutions of higher education have developed significant R&D and applied science in all areas related to water. In addition to research, higher education provides essential training in water resource and systems management, helping address a shortage of skilled labor in systems operation and maintenance exacerbated by an aging workforce.

Likewise, the public and private sectors play significant roles in planning and management of water resources in Washington State, the US and internationally. Several study partners, HDR Engineering, Pure Blue, local utilities including Seattle, Tacoma, Spokane, Everett, and King County are already making significant contributions to water planning and management. (A complete list of higher education, private sector and NGO organizations contributing to this study can be found in the CAI report, (Appendix A - pp 60-64), and other public and private contributors can be found in Appendix B, including the Center for Sustainable Infrastructure reports on Water and Energy.)

Water sector roadmap and recommendationsMeeting global and national water challenges associated with climate change requires new technologies and strategies in engineering, science, social science, business, and finance. As water systems experience growing demand and diminishing supply, new conservation, efficiency, and recovery options will be necessary (e.g. cistern systems, onsite surface water recovery, and waste water treatment).

Meeting global

and national

water challenges

associated with

climate change

requires new

technologies.

17

As climate change alters precipitation, hydrology and storm events, new technologies and practices will need to be developed to respond. Aging infrastructure will require repairs or replacement. New, “smarter” infrastructure will need to be invented. As the cost of infrastructure rises, new financial and economic models will need to be developed. Finally, as water becomes more scarce, costs will rise and economic models will change raising issues of triple bottom line economics involving equity, and social and environmental justice. These challenges present new opportunities for education, business, government, and NGOs, and Washington State is well positioned to address them.

EducationWith respect to water as an industry group, Washington State has strong educational assets (see appendix B for additional listing). The state’s two major research universities (WSU & UW) have nationally-recognized programs focused on research and education related to water resources. Likewise, other Washington educational institutions, colleges and community colleges have dedicated programs related to water resources and workforce training including the Center for Sustainable Infrastructure, now partnering with the University of Oregon and Portland State University. A partial list of educational assets that informed this study includes:

• University of Washington Climate Impacts Group

• Washington State University Metropolitan Center for Applied Research and Extension

• Washington State University Water Research Center

• Washington State University Surface Water Group

• Washington State University Center for Environmental Research Education and Outreach (CEREO)

• The Center for Sustainable Infrastructure

• University of Washington Center for Urban Waters

• Walla Walla Community College Water and Environmental Center

• Whitman College

Responding to the emerging water crisis and building the green economy requires strengthening and focusing higher educational resources. It also requires marketing these resources and assets nationally and internationally and partnering with the private sector.

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Areas for future private and public sector initiatives and investmentsGreater efficiency and the internet of waterIncreasing demand and decreasing supply require greater efficiency for managing water sources, systems and use. Integration of technology in water systems management is not new. However, the next generation of technology is evolving and it is where future private and public sector investment opportunities are likely to be found.

New applications of smart technology are emerging on a broad scale. These new technologies are comprised of sensors, cameras, computers, and wireless data management systems. They provide real time information on water systems: sources, use, monitoring pumps and pipes, detecting leaks, flow control, water quality and quantity, asset management and so on. New ICT is proving invaluable for asset management, informing operations managers of system problems and conditions with real time situational awareness. With better data and information, maintenance is more efficient and cost effective.

New technology systems are also helping water consumers limit waste, detect leaks and apply water efficiently. As sources become more scarce and demand increases, wastewater and surface water are becoming a commodity. New ICT technologies will help treat and integrate wastewater, surface water and potable water. Smart metering has been in use for some time in larger cities and water systems. The next generation of smart meters will provide more data with greater ability to both report and manage water use for water providers and consumers.25

Green infrastructure and microsystem management are emerging as ways of better managing surface water and protecting the environment.Nature’s infrastructure can address surface water runoff in urban areas and is often cheaper to build and maintain than large capital projects such as detention facilities. Green infrastructure recognizes the value of natural systems including: low impact development, bioswales, rain gardens, green walls, urban wetlands, and tree cover.

Microsystems technology is not limited to surface water. These technologies are flexible and scalable to buildings, neighborhoods, and water drainage areas and can apply to potable water, surface water, waste water and irrigation.26

One Water is a new way of looking at water and resource management.It is a wholistic approach that cuts across traditional utility and water system silos. Unprecedented changes in the water industry provide both a challenge and an opportunity to rethink the fundamentals of how we manage water, wastewater, surface water, and utilities. One Water is integrating systems previously managed separately.

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The One Water concept expands the menu of technology and solutions available to providers and consumers for water recycling, reuse, and integrated systems and can connect the communities served with water providers in ways that improve conservation and their relationship with a scarce essential resource. In addition to traditional water systems, One Water strategies often involve broader community objectives such as land use, green infrastructure, disaster preparedness, gray water, energy, and more. Integrated One Water systems can significantly reduce infrastructure costs while improving water resource management. Some leading examples include work in Seattle, Tacoma, Alderwood Water District, San Francisco, Los Angeles, and Washington, D.C.27

Energy consumption and water have historically been viewed as flowing one way.It takes energy to extract, pump and treat water. In many instances, the cost utilities charge for water is largely determined by capital costs and energy to pump water and treat wastewater. The water is considered relatively free. One Water and new management concepts are changing the way water providers and communities view the water-energy relationship. First, water is now viewed as a scarce resource, and conservation (using less of it) requires less energy for pumping and treatment. Second, gravity flow systems require far less outside energy and can serve as a significant energy source. Third, wastewater treatment provides biogas and methane that can serve as an energy source. Finally, biosolids are a source of fertilizer.28

FEW is the relationship of food production, water consumption and energy consumption and is an emerging area of research.As population increases, demand for agricultural production will also increase, along with demand for energy and water to produce food. Climate change will potentially disrupt food, energy and water. The relationship between water and food production is well understood. However, the relationship of energy and food production is more complex and can vary depending on where and how food is produced. FEW issues are also part of the Agriculture and Forestry section of this report.29

Irrigation for agricultural is the largest draw on water resource across the globe.Finding more efficient ways of irrigating crops is where new business and economic opportunities will be found in the green economy. Applications of new technologies for irrigation and wastewater treatment are being developed. New R&D are looking at efficient water applications, reducing loss due to leakage and evaporation, and managing energy use.30

Financing future water infrastructure requires a paradigm shift.The water industry is undergoing fundamental revolutionary change affecting supply, demand and delivery. Climate change, population growth, aging infrastructure, aging workforce, ICT and AI integration, and ICT security are impacting how we design, build and maintain water infrastructure. Looking at whole systems (One Water), integrating supply, treatment and stormwater systems, reuse, and recycling are part of this revolution. Upgrading today’s infrastructure and designing and building tomorrow’s will require new design and engineering, integrating systems, new ICT, finance and pricing models.31

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According to the Congressional Budget Office, U.S. utilities spend an estimated $100 billion each year to maintain, operate and build water and wastewater systems between 2008 and 2014. The National Infrastructure Advisory Council estimates the gap between existing funding and that needed to restore water infrastructure nationally to maintain current service levels ranges from $400 billion to nearly $1 trillion.32

The Northwest will spend an estimated $3 billion annually to operate, maintain and modernize water-related infrastructure. New infrastructure is expected to have a life cycle exceeding 30+ years (beyond 2050) and will be engineered and designed based on new specifications and technology.

Federal and state governments have become less reliable funding partners for local water infrastructure, and in addition to water needs, capital markets will be further stressed by climate change responding to increasing storm events and sea level rise.Water systems in coastal communities are particularly vulnerable as sea level rise may inundate these systems. Future water infrastructure will need to be more resilient, efficient and cost effective.33, 34

In addition to One Water and ICT integration, value planning tools can help performance and cost. Value planning involves asking questions and challenging assumptions early in the design process. It can help a utility clarify underlying assumptions, problem definitions, and cost alternatives before a project is locked into an approach. The value planning model can include examining triple bottom line economics (financial, social and environmental considerations), consider integrating across silos, and examine solutions like conservation, green infrastructure, smart technology, micro-infrastructure and community involvement on a par with pumps and pipes. Seattle Public Utilities has pioneered this work, as have other utilities.35

Workforce training is essential to meet the looming retirement wave in the water industry.An aging workforce presents a challenge and an opportunity. The workforce of both today and tomorrow will require greater technical skills. As we replace and upgrade infrastructure with new technologies we must also educate, reeducate and retrain the workforce to run these systems. Policy makers need to partner with industry, education and labor to meet these new challenges.

Additionally, the prospect for green jobs and employment opportunities are significant. Over one in 10 jobs is in infrastructure construction and management. Green jobs are often associated with energy, but water infrastructure will also provide green jobs. Pacific Institute has identified over 100 occupations that can grow with this transition.36

21

Today, wastewater is considered a raw product rather than a waste product.Wastewater treatment refers to the process of removing contaminants and unde-sirable particulates from domestic, industrial, and polluted waters to safely return water to the environment for drinking, irrigation, industrial, and other uses.

Examples of clean technologies and/or sustainable practices in wastewater treatment include:

• Bioreactors. A device containing bacteria and microorganisms is placed within a water body. It is usually equipped with separators linked to sequential tanks and a mechanical separator aimed at accelerating the splitting of liquid water from biosolids.

• Biofiltration. Selected species of bacteria and microorganisms are grown on a biofilter to form a biofilm. It is commonly used in the application for removal of heavy metals from industrial wastewater.

• Bioremediation. This process employs living microorganisms to remove and neutralize pollutants and hazardous species from contaminated wastewater sites to yield less toxic or nontoxic materials.

• Electrowinning. A current is passed between two electrodes immersed in an electrolyte solution, from which heavy metals including copper, nickel, silver, gold, cadmium, bismuth, cobalt, and others can be recovered from wastewater.

• Electrocoagulation. Similar to electrowinning, electrocoagulation also uses an electric current to remove contaminants from wastewater.

RecommendationsWashington State is well positioned to be a leader in water, serving potentially broad markets. “The Global Water Crisis can be turned into an economic development opportunity by creating a water innovation ecosystem that increases the efficiency, resilience and adaptive capacity of Washington's water infrastructure. This can be realized by connecting and aligning players toward shared strategies, goals and outcomes,” according to Egils Milbergs of PureBlue.37

There are markets locally, nationally, and globally for new technologies, products and services for potable water, wastewater, irrigation, and industrial uses and efficiencies. R&D centers in Washington’s higher educational institutions are already engaged in this work. Likewise, Washington companies are already developing and applying solutions to water issues. A partial listing of Washington companies, educational institutions and NGOs engaged in water can be found in Appendix A, CAI report pp. 60-64.

What follows is a list of recommendations intended to move Washington State toward developing a Green Eco-Nomic Center for water (see Appendix A., CAI report pp. 59 & 60, and Appendix B, CSI for more detailed information on markets, educational R&D and private businesses).

The Global

Water Crisis can

be turned into

an economic

development

opportunity.

22

Consider forming a Water Center in Washington State.The Center would serve as an advocate and clearing house for innovative water research, promoting technology development and efficiency in all aspects of water (potable, wastewater, irrigation, industrial, and natural resources). PureBlue, located in Seattle and a partner in this study, may serve as a model for such a center.

The mission of an innovation center would be to add value to existing R&D and create employment opportunities and training. It would be complementary to, not in competition with, existing efforts. The organization model may be a non-profit NGO rather than a public or private model, thereby allowing contributions from all organization types.

Develop strong partnerships to meet tomorrow’s water needs.Water systems are largely dependent on natural systems and variability, and on a number of partners to design, build, finance, manage, and maintain them. Providing water for future needs will require recognition of changes in nature, designing with nature, nimble and flexible responses, applying new technologies, and cutting across traditional silos.

Engage Washington cities in a focused dialogue on water.Cities play a key role in water. Among the largest water utilities in Washington State are Seattle Public Utilities, Tacoma Public Utilities, Spokane Public Works, Cascade Water Alliance, and the City of Everett Public Works. These and other city and water utility providers are at the cutting edge of best practices in water. Washington cities are laboratories for many of the practices needed in other parts of the U.S. and the world. Many cities large and small face challenges upgrading and/or building infrastructure to meet future challenges including water source, infrastructure and workforce development. Given the dynamic nature of water locally and globally, it would be timely for Washington cites (facilitated by AWC-CQC) to engage in a conversation on the future of water and the role of cities.

Engage the private sector in a direct dialogue on the future of water in Washington and beyond.Several private companies, organizations and NGOs are engaged in water. These include engineering companies such as HDR and companies such as McKinstry (both partners in this study), as well as companies engaged in water research areas, such as purification and infrastructure, financial, insurance, and legal expertise, which are needed to develop new finance structures and manage risk. These entities have tremendous expertise to offer, and enlightened self interest in developing, advancing and promoting solutions that address a world water crisis. Indeed, without private expertise and investment, society likely cannot adequately meet future water needs.

Promote water research.As noted in this study, R&D efforts are already underway in Washington State. Examples include: Center for Sustainable Infrastructure, Washington State University Metropolitan Center for Applied Research and Extension, Washington State University Surface Water Group, Washington State University Center for Environmental Research Education and Outreach, University of Washington Center for Urban Waters, Walla Walla Community College Water and Environmental Center, Whitman College, and University of Washington Climate Impacts Group. Promoting further research with these and other organizations should be encouraged.

Strong

partnerships are

needed to meet

tomorrow’s water

needs.

23

Recommendations for further research and investmentICT and AISometimes referred to as the ‘Internet of Water’, the integration of ICT and AI into all water systems is underway. It is timely for organizations such as AWC-CQC, the State of Washington (DNR, DOE, DOC), and large utilities to engage firms like Microsoft, the Gates Foundation and others to explore new opportunities in integrating technology and water.

Cyber securityCyber security threats will remain an issue as we move to integrate ICT in water and energy. As systems move toward greater interoperability and communications, they open portals for hacking and disruption. Washington is home to some of the top technology companies in the world with the talent to help protect water, energy and ICT systems. Cyber security should be a top priority for state and national security, utilities, and water and energy industries.38

One WaterThe days of siloed water systems may be numbered. On the horizon are new practices and technologies that respect the value of natural systems as an asset, the limitations of water due to climate change and growth, and the need to treat water as a scarce resource. The One Water concept described in this study will present an opportunity for new systems development.39

Explore new water reuse and reclamation opportunities.Washington State has made great progress in policies and practices promoting water reuse, and recycling and wastewater management. However, much more can and should be done to explore new opportunities and new scales for water reuse including R&D in surface water management, recycling, water quality, water recapture, and more.

Water efficiencyThe need for greater efficiency in water systems is obvious. The means to achieve greater efficiency in water systems is ripe for innovation, investment and opportunity.

Community based solutionsAll approaches to water conservation and efficiencies will involve the communities being served, as well as modifying existing practices and behaviors. We can learn lessons from places like South Africa, Australia, the middle east, and now parts of the United States where water shortages are matters of national or regional concern and national security. Every year these concerns grow, and engaging affected communities is a necessary part of the response.

Examine water pricingAs noted, scarcity of water supply has resulted in changes to how we value water. For water, changing price models bring potentially sweeping social and economic changes. This is an area where physical science, social science and policy converge. Further research and practical interdisciplinary approaches are needed.

Cyber security

should be a

top priority

for state and

national security,

utilities, and

water and energy

industries.

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Infrastructure financingThe United States is spending hundreds of billions of dollars each year to upgrade and build new water infrastructure. These projects are competing in capital markets with other demands for infrastructure financing associated with sea level rise, disaster relief and energy. We need to develop financial strategies to address these projects Washington State’s higher educational, business and financial institutions are in a position to lead these efforts.

EmploymentWater systems are experiencing a workforce retirement wave and need to replace and replenish human resources. New employees entering the water workforce will need new and better technical skills. Investing in this workforce is a necessity and an opportunity. Workforce training in water and energy may attract students beyond Washington’s borders.

Education including K-12Throughout this study, the need for additional investments in higher education, R&D and partnerships has been identified. The earlier education of the next generation needs to be considered as well because they will live with water scarcity. Teaching the importance of water conservation should be part of our future and early educational K-12 curriculumn.

Food energy water (FEW)The relationship of food production, water consumption and energy consumption is an emerging area of research. As population increases, demand for food, energy and water will also increase. The relationship between water, energy and food production is more complex and should be examined with an eye toward greater efficiencies and economic development.

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Agriculture & Forestry

AgricultureThe agriculture sector is one of the world’s largest economic sectors. Net farm income, a broad measure of profits, is around $120 billion, and farm assets are roughly estimated at $2 trillion. However, compared to other industries like energy, agriculture has seen relatively less investment in clean technologies over time—and even where investments have occurred, new digital technologies are being adopted slowly.

In more recent years, investment in agriculture and the food sector has picked up, with figures since 2014 consistently doubling the value amount of investments of previous years. The subsectors driving the growth are technological advancements in automation such as drone technologies, data and the Internet of Things (what is referred to in this study as ICT), sustainable proteins, and genetic engineering of crops in agricultural biotech. All these combined contributed to more than $1 billion in investment in 2016 to the agriculture and food industries.

The Food and Agriculture Organization (FAO) of the United Nations forecasts that demand for food and other agricultural products will increase by 50% between 2012 and 2050. Population growth is one of the key drivers of food demand, and although world population is slowing down, some parts of the world like Africa and Asia will still see a large population expansion well beyond 2050.

Population dynamics created by more people living in cities also impact f-ood demand and food systems. Urbanization has been accompanied by a change in food consumption patterns with a shift towards processed and fast foods and an increase in kilocalories per day within developing regions. Processed and fast food production generally consumes more water and energy, commodities in short supply, and produces more GHG. Likewise, food waste is now recognized as a significant source of GHG.

High-input, resource-intensive farming systems, which have led to massive deforestation, water scarcities, soil depletion, and high levels of GHG emissions, cannot deliver sustainable food and agricultural production. More innovative systems are needed to protect and enhance the natural resource base while increasing productivity. Adoption of clean technology in the agriculture and forestry sector can help overcome some of the challenges facing the sector, though not all.

Appendix A, CAI pp. 19-32

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Competition for natural resources is intensifying due to changes in consumption patterns driven mainly by population growth, industrial development, urbanization, and climate change. Intensified competition leads to overexploitation of the resource base (e.g. land and water), harming the environment and creating a feedback loop where more degradation leads to fiercer competition for resources.

FAO estimates that 33% of the world’s farmland is moderately to highly degraded and that forest losses due to expansion of agricultural land have amounted to just under 100 million hectares. In addition, available farmland is concentrated in only a few countries and in some regions is not readily accessible due to the lack of infrastructure, physical remoteness or vulnerability to disease outbreaks.

Resource availability constraints imply that increases in agricultural output have to come from increases in productivity and more efficient use of the natural resource base. This drives the demand for technological progress, social innovation and new business models for agriculture and forestry. However, the move toward technological advances in agriculture have been slower than in other industry sectors.

Agriculture is one of the most significant sectors in terms of climate impacts and energy consumption. Globally, agriculture contributes 10%–12% of total anthropogenic GHG emissions and 56% of the non-CO2 GHG emissions, mainly due to nitrous oxide emissions from soils and methane emissions from cattle. In addition to greenhouse gas emissions and energy consumption, agriculture is the single largest consumer of water in most countries a significant source of water pollution. These negative externalities force agriculture to improve its production and become cleaner by using fewer resources and producing fewer emissions.

Water scarcity is expected to become a growing constraint as more than 40% of the world’s rural population lives in river basins that are classified as water scarce. Climate changes resulting in higher temperatures and lower levels of precipitation will further stress availability of water resources.

Aquaculture is one of the fastest growing food-producing industries and currently accounts for 50% of the world’s fish that is used for food. The industry has been making a significant contribution to food security; however, certain challenges are facing this sector. Large scale aquaculture can generate a lot of waste and fish farms can become breeding grounds for diseases that can infect wild fish stocks. Feeding fish in marine farms has led to overfishing of species caught for feed. Finally, overuse of antibiotics and lack of wastewater treatment are also concerns. These concerns are of particular interest in Washington State where fish farms have come under intense scrutiny. Across the world, companies are investing to incorporate existing clean technologies into this sector to make fish farming totally clean and green.

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The challenges facing agricultural (soils, water, climate change, and crop yields) are of interest to more than the FAO, agricultural ministers and farmers. They affect global political stability and national security. The world has a history with famine (Bangladesh, China, Soviet Union, Ireland, and elsewhere). The US Agency for International Development created the Famine Early Warning System in 1985 to alert and enable governments and relief agencies to marshal food and aid to affected regions. The Defense Intelligence Agency and Department of Defense (DOD) monitor water supply, food production and climate change. The DOD has called climate change a destabilizing factor and a “threat multiplier” as it impacts water and food.

Agriculture overview in Washington StateAgriculture is a key component of Washington State’s economy and adds around $51 billion a year—or 12 percent—to the state’s GDP. There are over 300 crops grown in Washington and the state ranks 14th nationally in overall commodity production.

In 2016, Washington State was home to 35,700 farm operations and 14.7 million acres of agriculture land. Major crops by value in 2016 included apples ($2.4 billion), potatoes ($813.3 million), wheat ($656.8 million), sweet cherries ($491.1 million), hay ($479.0 million), and wine grapes ($313.2 million). Much of Washington’s agricultural production is bound for export markets in other states or countries.

Fishing and aquaculture are also important elements of Washington’s ag economy. Fish, shellfish and other marine farming are particularly important to coastal Western Washington and the inland waters of Puget Sound.

Agriculture sector roadmap and recommendationsChanging agricultural practices to be more sustainable, improving food production and reducing environmental impacts, particularly water and GHG emissions, are essential responses to climate impacts. Agricultural practices that pollute water, are overly dependent on fossil fuels, emit large amounts of GHG, deplete soils, and result in deforestation are obviously not sustainable and are destabilizing environmentally, socially and politically.

Washington State has large agricultural and educational assets devoted to agriculture, and a strong history of policies devoted to sustainable environmental practices. There are significant opportunities to advance sustainable agricultural business in Washington State.

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Existing and future opportunities for R&D in agriculture in Washington StateAgriculture has been slow to adapt and integrate changing ICT technologies relative to other business sectors. However, R&D and technological efforts are alive and well in agriculture, responding to climate change and other natural and market factors. Some of the key R&D areas are:

• Finding more efficient ways to use scarce resources: water, land, energy, and farming practices.

• Finding more efficient means of irrigation and water use. Technology may prove helpful in developing new water, irrigation and water treatment systems.

• Developing new hybrid crops that are more drought resistant, more resilient, and of equal or greater nutritional value – higher yield food production and more protein in developing countries.

• Developing farming practices that preserve or replenish soil stability and nutrients.

• Becoming cleaner and more environmentally sustainable while reducing greenhouse gas emissions.

• Finding ways to become more energy efficient and developing loop systems that capture energy in waste products and water treatment and reduce pollution and GHG.

• Sustaining or enhancing profitability in the agriculture sector.

• Reducing ecological impact and associated social costs.

Education and researchAgriculture education in Washington State is dominated by Washington State University. WSU is a land grant university with many schools and programs focused on all aspects of agriculture. Other state universities, colleges and the community college network also address agriculture, biology, and related research. UW has a number of programs in agriculture, forestry, biology, genetics, and related fields.

The Center for Sustaining Agriculture and Natural Resources at Washington State University leads research and initiatives in sustainable agriculture, food systems and natural resources, climate change farming, and water efficiency. Its projects include energy and nutrient recovery from organic wastes, technologies to reduce pesticide use, and the development of sustainable farming systems. Through its Food Systems Program, the center works with communities across Washington State to foster viable, sustainable farm businesses.

WSU Extension is comprised of 39 locations across the state where Washington State University offers courses to the public. Many of these courses focus on farmers and ranchers, teaching professionals about more efficient practices, economical methods and sustainable practices.

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The USDA Sustainable Agriculture Research and Education (SARE) Professional Development Program at Washington State University exists to help agricultural professionals increase their ability to respond to the needs of farmers, ranchers and the public regarding sustainable agriculture concepts and systems. Since 1988, SARE has awarded over $27.4 million in grants to fund educational programs for farmers and other professionals. These programs involve teaching about natural resource conservation, water use reduction and other sustainable practices.

Tilth Alliance is a nonprofit organization whose goal is to educate people to safeguard natural resources and build a sustainable food system. The group offers financial assistance to improve the sustainability and economic viability of farm businesses in Washington State and trains thousands of farmers and others annually on current research and conservation practices.

Regional Approaches to Climate Change - Pacific Northwest Agriculture (REACCH) was initiated in 2011 to ensure sustainable cereal production in the inland Pacific Northwest. The project was led by an interdisciplinary team of scientists and other professionals from the three land grant institutions and the USDA Agricultural Research Service. Participants from many disciplines related to agriculture, climate, socioeconomics, and information sciences engaged in an integrated research, educational, outreach, and extension effort to study complex cereal production systems and their responses to drivers of change.

A listing of private sector and NGO organizations involved in agriculture and sustainability practices can be found in Appendix A CAI pp. 27-32.

Areas for future private and public sector initiatives and investmentsIrrigation and waterAcross the globe water for agricultural is the largest draw upon water resources. Finding more efficient ways of irrigating crops is where new business and economic opportunities will be found in the green economy. Washington has been a leader in policies supporting waste water treatment, applications, and use of biosolids for agriculture and forest products. Washington law requires 100% of biosolids be reused. New technologies for irrigation and wastewater treatment are being developed. New research and development are looking at efficient water applications, reducing loss due to leakage and evaporation, and managing energy use.40

FEWThe relationship of food production, water consumption and energy consumption is an emerging area of research. As population increases, so too will demand for agricultural production, and energy and water to produce food. Climate change is a disruptive factor. The relationship between water and food production is well understood. However, the relationship of energy and food production is more complex and can vary depending on where and how food is produced. FEW issues are being explored at WSU.41

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Waste to energyAgriculture generates a significant amount of waste, particularly wastewater associated with animal waste and water runoff, as well as GHG emissions. Some of these waste products can be turned into energy. For example, Vander Haak Dairy in Lynden, Washington uses anaerobic digesters, converting manure and food waste from nearby food processors into energy and other commercial products.

Vertical farmingVertical farming involves growing crops in vertically-stacked layers, enabling increased crop yields without increasing land area for crops. It is associated with city and urban farming and aims to bring food production close to areas with high population concentrations. Vertical farming also has the potential to reduce the environmental footprint of food transport. Energy is the great limiting factor for this technology, as plants need a lot of light for photosynthesis.

Alternative food sourcesAlternative protein sources include plant- or insect-based alternatives, or cultured products grown in a cell structure outside of the animal. These alternatives aim to be indistinguishable from traditional animal products and contribute to the global food supply by ensuring sufficient access to safe and nutritious food for a growing population.

Plant genomicsThe goals of agricultural plant science are to increase crop productivity and the quality of agricultural products while protecting the environment. A growing global population, changing climate and environmental pressure generate the need to accelerate breeding novel crops with higher production, stress-resistant traits and less pesticide usage.

Biotechnology applicationThe application of biological sciences in agriculture has become increasingly prominent in the past decade. Biotechnology uses cell and molecular biology tools to improve genetic makeup and agronomic management of crops and animals. It provides farmers with tools that can make production cheaper and more manageable.

CRISPR technologiesCRISPR technologies (clustered regularly interspaced short palindromic repeats—a gene editing process), applied for the first time in 2012, are new plant breeding methods that produce identical but faster results to conventional breeding methods, with lower costs and higher predictability. Promising uses of CRISPR tools have already been shown in crop plants such as wheat, corn and tomatoes. CRISPR tools are currently spurring innovative research in academia and in companies of all sizes.

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Digital agricultureDigital agriculture is the use of new and advanced technologies, integrated into one system, to enable farmers and other stakeholders within the agriculture value chain to improve food production. The aim in digital farming is to use all available information and expertise to enable the automation of sustainable processes. Technologies used include: sensors, communication networks, unmanned aviation systems (UAS), artificial intelligence (AI), robotics, and other advanced machinery, and they often draw on the principles of the Internet of Things.

AquacultureDeveloping food sources in water—marine and fresh—is a promising area for further R&D and applications. Globally, aquaculture is one of the fastest growing food-producing industries and currently accounts for 50% of the world’s fish that is used for food. The industry has been making a significant contribution to food security. However, as noted earlier in this report, the sector faces challenges and some of these have been identified in Washington State. Large scale aquaculture can generate a lot of waste and fish farms can become breeding grounds for diseases that can infect wild fish nearby. Moreover, feeding the fish on the marine farms has led to overfishing of species caught for feed. More research is needed to address these issues and incorporate existing clean technologies into this sector to make aquaculture clean and green.

BiotechnologySome of Washington state’s biotech companies find natural partners in the agricultural and forest industries. For example, Seattle-based Arzeda applies its protein design technology to enable new crop traits, improving crop yields and farming efficiency. By creating technologies that make farming less water-dependent or wasteful, innovative firms like Arzeda help drive progress in agriculture.

GeneticsGenomics companies conduct research focusing on the structure, mapping and editing of genes. Changing the characteristics of organisms can make farming more economical and more environmentally-friendly. An example of this is the work of Phytelligence, a company founded in 2012 by Washington State University Horticulture Professor Amit Dhingra. Phytelligence has completed genome sequences for apples, pears, cherries, almonds, and peaches that need less water than their counterparts producing the same volume. The company also offers citrus growers an engineered rootstock that is resistant to citrus greening disease, which in 2017 devastated crops in Florida, California and Texas and led to great waste of potential food.

Animal feed and fertilizersAnimal feed and fertilizers are a component of agricultural production that can improve food output and reduce environmental impacts. This area is ripe for further R&D. A local example is “Beta Hatch” in Seattle, producing animal feed and fertilizers from insects. The farm is an indoor, climate-controlled and zero-waste system. Insects are grown and harvested to create products that can be used in gardens, backyard chicken coops and commercial chicken farms.

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RecommendationsEncourage interdisciplinary approaches to address the future of agriculture.Washington State University is a leader in agricultural research and product development in Washington State, like other centers across the nation focused on agriculture. WSU is joined by UW and other institutions across the state with educational programs in agriculture or related fields. In Washington, there are a number of private companies and NGOs working on agriculture and in the agricultural supply chain including water, waste water, energy, genetics, biology, and more.

Find greater efficiencies in water, irrigation, wastewater treatment, and energy.The integration of ICT is promising for advancing the agricultural business model. The relationship of food, energy and water also presents opportunities for R&D and economic development.

Support investments in new sustainable farming practices.Washington State already has emerging companies in these areas. Additionally, biology, bioengineering and genetics companies are all prominent in Washington and are beginning to recognize agriculture as an area for further R&D and business development.

Aquaculture in marine and fresh water is a promising area for further R&D and business development.There have been some notable challenges in this field in Washington State resulting in a ban on farming Atlantic salmon in fish pens. These developments and lessons should inform best practices and future business development.

Shellfish Initiative Phase II, led by former Governor Christine Gregoire, was a partnership between state and federal government, tribes and the shellfish aquaculture industry. Governor Inslee has made it one of his priorities to renew the Initiative’s commitments by preventing and fixing pollution problems, reopening shellfish beds, confronting ocean acidification, and improving the permitting process to increase sustainable aquaculture.

Provide additional funding for ocean acidification research.In 2013, the Washington State Legislature approved $3.3 million to invest in scientific research on ocean acidification, which plagues the aquaculture industry.

Forestry sector roadmapWashington’s forest industry is the second largest lumber producer in the nation. Forest products include timber, building materials such as plywood and flake board, flooring, millwork, laminated veneer, fencing, and laminated products such as cross-laminated timber.42

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Forest products account for over 100,000 jobs and almost $5 billion in wages. Timber lands cover approximately 23 million acres—about one half of the state. These lands are private, public (state, county and federal), and tribal. Some are working forests, some are restricted from harvest. Approximately 97% of commercial harvested timber is from non-federal lands.43

The industry has been providing family wage jobs for over 165 years and has been able to adapt and innovate to meet emerging markets, products and needs. The business group has provided wise stewardship of natural resources and the industry has participated in water and timber negotiations with government, tribal, environmental, and business interests to address complex issues such as the timber, fish and wildlife agreements.

Advances such as CLT provide an opportunity to meet the needs for building and construction and the environment. Wood building materials produce less air and water pollution, require less energy, and generate less CO2 emissions than other common building materials. This means forest products will continue to play a key role in Washington’s economy and efforts to address climate change and reduce emissions.

Other products such as biomass are being used to more efficiently power sawmills and pulp and paper mills that have modernized and adapted their facilities to use this renewable energy source. These relatively clean technologies are also being developed as possible sources of fuel for airplanes. Research is underway involving Boeing, Alaska Airlines and the Department of Defense.

Climate change presents some unique challenges to the forest products industry. Temperature increases and longer dryer periods increase the number and severity of forest fires. In recent years, the increase in fires has taxed fire fighting capacity. This is a growing issue nationally, with firefighting tools limited primarily to reducing fuel sources and points of ignition and increasing firefighting capacity. Climate change is also causing species migration, bringing diseases and pests that harm forests.

Sustainable forest management seeks to maintain and enhance forest resources, promote the health and vitality of forest ecosystems, conserve biodiversity, and ensure forest land retains its natural relation to soil and water systems. The ultimate goal is to retain the forest’s ability to support ecological, socio-economic and cultural functions beyond timber harvesting. Clean technologies represent new opportunities to reduce humans’ impact on native forests and improve sustainability.

EducationEducation in the forest products industry is concentrated at WSU and UW. The Center for International Trade in Forest Products (CINTRAFOR) is one of three applied research centers within the University of Washington’s School of Environmental & Forest Sciences. With private, federal and state funding, CINTRAFOR is the only international forest products trade Center of Excellence in the United States. Part of its mission is to collect information on and address environmental problems that impede forest product exports. The center also trains professionals by funding graduate-level research.

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The University of Washington School of Environmental and Forest Sciences is one of the earliest natural resource programs in the nation, established in 1907. The focus of the school is on environmental and natural resource management and sustainability. The school recognizes the interdisciplinary and integrated nature of this field and is connected with other programs within the University.

There are other forest-related educational R&D and academic offerings at WSU, UW and other educational institutions in the state.

Areas for future private and public sector initiatives and investmentsWashington is one of the largest producers of timber and forest products in the nation. Much of the production is for export. Building materials and biofuels are the central focus of the forest industry. Both are actively being pursued by private and public sectors, as well as work in higher educational research.

Forest management, land management, pest management, and responding to climate impacts, including fire prevention and suppression and species migration, are emerging areas for research and investment. It is difficult to predict the impacts of a changing climate on forest products in Washington. However, it is a topic of great concern for the industry and the state and should be targeted for further research and investment.

RecommendationsContinue and expand investments in building materials, CLT and other applications for wood products. This includes the prospect of exportable wood products.

Continue the focus on research to better understand impacts associated with climate change on the forest and timber industry.

Work with the Department of Natural Resources, Commerce, tribes, and commercial interests such as the Washington Forest Protection Association to develop strategies addressing business and environmental challenges.

Fund additional research at WSU and UW addressing forest products, new management strategies and product development.

Provide resource for fire suppression as fire suppression will be a growing concern for Washington forests. There is not sufficient fire protection to meet growing needs, and DNR, US Forest Service and others are seeking additional resources.

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Building materials

Between 1990 and 2015, the world urban population increased at a rate of more than 2% per year, reaching more than four billion people, or 54% of the global population. According to UN projections, this share is expected to increase to 66% by 2050, adding another 2.5 billion people to urban populations.44

Cities are where most of the world’s energy is consumed and account for more than 70% of global CO2 emissions but only 2% of land area. Most of these emissions are from buildings and transportation. As buildings age, they may suffer from deferred maintenance and are expensive to retrofit to meet more efficient energy standards. There is a growing awareness among cities in the United States and around the world that their carbon footprint is large, and they are taking steps to reduce it through energy audits, improving building and energy codes, building materials and construction standards. A wholistic approach to building and citywide energy reductions is necessary for cities to swiftly and cost-effectively reach meaningful carbon reduction goals.45

Continued urbanization will create significant demand for new housing stock across the world. Mass timber, and specifically CLT, offers opportunities to address these construction needs with material that is structurally sound, cost effective and yields a much lower carbon footprint compared to traditional building products.

The introduction of ICT into various aspects of buildings promises to create a smart building revolution. Green buildings are emerging with new technologies, dramatically increasing energy and water efficiencies while reducing GHG. New, more energy-efficient materials are being introduced into structures along with more efficient HVAC, lighting, energy systems, and other improvements. Buildings, including homes, are becoming living entities.

Washington State is a leader in energy-efficient building and building codes. The state has developed a pathway for all new buildings to be energy-neutral by 2030 through improved energy codes by requiring advanced building envelopes, appliances, controls, renewable energy technologies, and other methods.46

Recent events in China will potentially upend the established recycling system, creating needed demand for new recycling capacity in the U.S. and opportunities for recycled building materials. China’s National Sword policy drastically lowered the level of acceptable contamination in recycled products allowed for processing in China, effectively banning many types of solid waste. If U.S. recycling centers are unable to find alternative destinations for further processing, many of these solid waste materials (plastics, glass and paper) may ultimately end up in landfills significantly impacting the market for building materials and disposal and recycling of these materials.

In Washington State, McKinstry, the Master Builders Built Green program, The Bullitt Foundation and others have helped pioneer new building technologies (McKinstry and the Master Builders are partners in this study.) More needs to be done in this industry, both in Washigton and nationally, and the leadership to do it is located here.

Appendix A, CAI pp 32-46

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Forestry & logging Wood product manufacturing

Source: U.S. Bureau of Economic Analysis, 2018

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5

0

10

15

20

25

30

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Washington State Forestry & Logging and Wood Product Manufacturing Employment, 1998-2016

Building materials industry overview in Washington StateWashington State has long been an important center for wood products, though in recent years the industry has experienced a decline in activity (see graph below).

The current model for wood building materials is for logs to be harvested in the Pacific Northwest and sent to China, Korea or Japan (or elsewhere) for processing. Due to environmental regulations, labor and production costs, and other factors, many sawmills in the Pacific Northwest have closed, especially during the last recession. Rural communities have been hit hard by these closures.

Forests need to be thinned periodically to improve wildlife habitat, enable faster tree growth, and remove smaller brush and trees that serve as fuel for forest fires, contributing to more frequent, intense and larger wildfires. CLT and other forest products that can take advantage of wood products that were valued less than raw logs will add to the value of forest products, the forest products industry, forest management, and the green economy.

Additionally, greater demand for energy efficiency and changes in recycling policies are driving changes in supply and demand for building materials. New business opportunities are emerging in this segment of the economy with potential impacts beyond Washington State.

A list of leading companies and associations can be found in Appendix A, CAI pp 40-44.

Thousands of workers

34.7 34.2

20.320.421.4

26.3

28.930.330.5

29.728.3

29.130.7

33.9

21.321.821.821.920.9

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Mass timber and CLTMass timber building materials are lumber and recycled products such as CLT and recycled particle board typically used for framing. CLT is a leading new technology within the mass timber group with significant growth prospects both in the U.S. and abroad.

CLT involves a process where multiple layers of boards are stacked crosswise and glued together. CLT has the potential to significantly alter the trajectory of the timber and wood products industry in Washington. CLT’s specific benefits include: smaller carbon footprint, construction efficiencies, fire safety, structure and weight, better forest management, and reduced project costs. CLT construction projects require fewer onsite workers compared with similarly-sized projects using traditional materials and can be completed more quickly. CLT often provides better fire protection and seismic resistance. Under fire conditions, these materials char and heat slowly, whereas steel heats up rapidly and fails. It is a significantly lighter material compared to steel, concrete and masonry. CLT can be a solution for sites with poor soil and provide an economic incentive and best use of forest thinning and associated waste byproduct.

As a wood product, CLT can help address climate change through natural sequestration and storage of carbon. Utilizing forest waste product, producers can use small trees cleared through forestry thinning operations, thus yielding healthier forests. It has the ability to repurpose waste wood material (such as pest-damaged and/or less desirable lumber grades) while maintaining or exceeding tensile strength.

Three important factors will support future demand for advanced, environmentally-friendly building materials such as CLT:

• Continued population growth and urbanization, supporting overall demand for new residential and commercial building stock;

• Reconfiguring of the global recycling system that will create new stresses and opportunities for repurposing solid waste for building materials; and

• Growing demands among businesses and consumers for technologies and materials that are less impactful on the environment compared with traditional building materials such as steel and concrete.

The promise of CLT and smart buildings is being showcased in the City of Spokane. A five-story 150,000 square-foot Catalyst Building is under construction for Avista Energy with Avista and McKinstry as the developers. The project is touted as “the first net-zero energy and zero carbon building in Eastern Washington” and will have the latest energy and environmental innovations. Other partners include Eastern Washington University, the City of Spokane and Katerra—the manufacturer of CLT with a new factory located in Spokane Valley.47

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Building materials sector roadmaps and recommendationsIn recent years the forest products industry experienced a decline as raw timber was shipped overseas, mills closed and jobs vanished. Three areas worth noting may contribute to a recovery in building materials and forest products.

• CLT holds great promise as a new building product. There are challenges to overcome, but the material appears to provide remarkable structural performance and environmental promise.

• The integration of ICT into buildings.

• Examining recycling as an industry rather than a waste product or waste stream.

Integrating ICT in buildings provides significant opportunities for new business development. New applications of ICT will touch many of the systems in buildings including electrical, HVAC, water, wastewater, links to transportation, lighting, security, and more. Many of these technologies are already in use. More will come. McKinstry (a partner in this study) is an industry leader in this field.

EducationWashington State University is a leader in CLT and building technologies (e.g. Materials Science & Engineering and Composite Materials & Engineering Center). WSU researchers received a $1.5 million National Science Foundation grant in 2017 to develop guidelines for sustainable building in earthquake-prone areas. In collaboration with scholars at other universities, the Forest Products Laboratory and American Wood Council, these researchers test CLT structures and assess their sustainable impact. The Brelsford WSU Visitor Center is one of only a few buildings in the Pacific Northwest that currently includes CLT materials.

WSU, through the Voiland College of Engineering and Architecture, offers an array of undergraduate and graduate degrees related to innovating building materials. These include degrees in the areas of architecture, construction, civil engineering, environmental engineering, and materials engineering. The institution states that most students studying these subjects are sought by employers even before graduation.

The University of Washington offers relevant degrees in architecture, built environments, construction, civil engineering, environmental engineering, and forest sciences. The university’s ‘Carbon Smart Buildings’ initiative has done research on CLT and other building methods and materials. Its College of Engineering has researched mass timber construction, and it has collaborated with other universities, WoodWorks and the National Science Foundation to test CLT structures and educate students on their benefits.

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The University of Washington Carbon Leadership Forum, located in the College of Built Environments, is providing leadership in reducing the carbon footprint in building materials and processes. The Forum is working to create a broad coalition of building industry actors to develop a comprehensive strategy to transform the industry and marketplace. Some of these partners include Architecture 2030, the Athena Sustainable Materials Institute, the Ecological Building Network, and the US Green Building Council.

‘Think Wood’ is an industry group that promotes the economic, environmental and societal benefits of using softwood lumber in building construction. The group highlights economic and scientific research related to building with CLT materials, and it coordinates with WoodWorks to provide assistance to wood building construction projects. Think Wood is funded by the Softwood Lumber Board.

The Forest Products Laboratory is the national research laboratory of the United States Forest Service. Employing 60 scientists in Madison, Wisconsin, the Forest Products Laboratory has partnerships across the country, including in Washington State. It has published research highlighting the structural and environmental benefits of building with CLT materials and encouraged coordination among timber engineering players.

WoodWorks provides free technical support, training and resources related to the code-compliant design of non-residential and multi-family wood buildings. Its funding partners are the Softwood Lumber Board, the U.S. Forest Service and the British Columbia agency Forestry Innovation Investment. WoodWorks is also partnered with many private companies, such as Weyerhaeuser, to assist with construction projects. The group offers training and guidance related to construction with CLT materials.

RecommendationsSupport CLT, which shows significant promise as a sustainable building material.The Catalyst project in Spokane should serve as an important laboratory for the application of CLT and other high tech energy efficient building strategies.

State support of CLT and ICT should continue.The economy and the environment require new building and housing strategies. Both objectives can be served with continued policy initiatives. Recent examples of policy initiatives include:

• In 2018, the Washington State Legislature passed Senate Bill 5450, which requires the Washington State Building Code Council to update its codes to account for mass timber products, including CLT. The new law will make it easier for developers to use sustainable building materials by adding more certainty to the permitting process.

• In 2017, the Washington State Legislature approved allocating $5.5 million to the Department of Enterprise Services for the construction of 20 kindergarten through third grade classrooms using CLT materials. These demonstration projects will take place in five school districts across Washington State, specifically in Mount Vernon, Seattle, Sequim, Wapato, and Toppenish school districts.

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Encourage continued federal support of CLT.According to Forterra, The Timber Innovation Act of 2016 was introduced in the 114th Congress to “accelerate the use of wood in buildings, especially tall wood buildings” over 85 feet in height by providing additional resources for research, technical assistance and a tall wood building competition. The bill was reintroduced in 2017, and as of May 29, 2018, it had been read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Local governments should develop energy codes and sustainability standards for buildings and building materials.This may include working with energy providers, utilities, private sector builders, architects, and other professional organizations to develop and periodically monitor and improve these standards. Washington State has taken steps to improve energy efficiency, but this movement is still in its infant stages.

Encourage new ICT applications that allow energy and systems management maximizing efficiencies.The introduction of ICT into various aspects of buildings promises to create a smart building revolution. Green buildings are emerging with new technology (e.g. HVAC, lighting, energy systems), dramatically increasing energy and water efficiency while reducing GHG. Buildings, including homes, are becoming living entities. The intersection of buildings and ICT presents real opportunities for business investment opportunities.

Develop new recycling opportunities.Events in China impacting established recycling systems create a need for new recycling capacity in the U.S. and opportunities for recycled building materials. There is an opportunity for development of deconstruction technologies and development of new recycling businesses.

41

Footnotes and endnotes

1“Quadrennial Defense Review 2014” Chapter 1: Future Security Environment p. 8; United States Department of Defense

2“Green Economy Industry Roadmaps”, Community Attributes Inc. (CAI); p. 18

3Ibid #2, p. 17

4Ibid #2, p. 47

5“A Northwest Vision for Water Infrastructure,” Center for Sustainable Infrastructure, The Evergreen State College; p. 19

6Ibid #2. p. 14

7Ibid #2. p. 14

8Ibid #2. p. 13

9Renewing the Northwest’s Energy Infrastructure”, Center for Sustainable Infrastructure, The Evergreen State College; pp. 31-33

10Interview and research information provided by Dr. Brad Gaolach, Director, Metropolitan Center for Applied Research & Extension; Food Energy Water (FEW) at WSU, and WSU: http://csanr.wsu.edu/publication-library/climate-change/

11 U.S. Department of Energy, Revolution Now – The Future Arrives for Five Clean Energy Technologies – 2016 update, September 2016

12Ibid #2, p. 14

13Ibid #2, p. 18

14Ibid #8, pp 15 & 16

15Ibid #8, pp. 40 & 41 @p 16 1/13/19 draft

16Ibid #8, p. 33 @p 18

17Ibid #8, pp. 40 & 41 @p 18

18Ibid #8, pp. 24 @p 18

19Ibid #8, pp. 13 - 15 @p 18

20Ibid #8, pp. 25, 44, 45 & 49 @p 19

21Food and Agriculture Organization of the United Nations, Towards a Water and Food Secure Future: Critical Perspectives for Policymakers, Rome, 2015, p.vii.

22Ibid #2, p 50 (FYI United Nations World Water Development Report 2017, CAI p 50)

23Ibid # 2, p. 50 - (FYI The United Nations World Water Development Report 2016, The United Nations, 2016)

24NASA GRACE-FO News Release, May 16, 2018. Visit http://grace.jpl.nasa.gov or http//www.csr.utexas.edu.grace)

25“Northwest Vision for 2040 Water Infrastructure” Innovative Pathways, Smarter Spending, Better Outcomes; Rhys Roth, Center for Sustainable Infrastructure, The Evergreen State College, pp. 13, 27 & 30

26Ibid #24 pp. 32-33

27Ibid #24 Ibid CSI pp. 19, 33

28Ibid CSI pp. 35-37

29Washington State University Metropolitan Center for Applied Research and Center for Sustainable Agriculture and Natural Resources

30Ibid #24 CSI pp. 42 & 43

31Ibid #24 p. 19

32National Infrastructure Advisory Council, “Water Sector Resilience Final Report and Recommendations”, Dept. of Homeland Security, June 2016

33Congressional Budget Office “Public Spending on Transportation and Water Infrastructure, 1956 to 2014” March 2015

34Ibid #24 pp. 21, 43 @ p 26

35Ibid #24 pp. 22 and 23

36“Sustainable Water Jobs: A National Assessment of Water -related Green Job Opportunities”, Pacific Institute, January 2013 p 4.

37Egils Milbergs, PureBlue, “Modernizing the Water Infrastructure,” testimony to the Washington State Senate Economic Development and International Trade Committee, January 23, 2018, CAI p. 47

38Ibid #8 p. 33

39Ibid #24 p. 19

40Ibid #24 pp. 42 & 43

41Ibid #29

42“Forest Products Sector” Washington State Department of Commerce, 2017-2019,

43Washington Forest Protection Associaiton

44Ibid #2 p. 35

45“Policies for Better Buildings”- Cost-effective Ways Cities Can Cut Carbon, Slash Costs, and Create Jobe”; Rocky Mountain Institute, an Insight Brief, August 2018, Amy Egerter, Laurie Guevara-Stone & Matt Jungclaus.

46“Carbon-Free Regions Handbook - an action guide for states, provinces, and regional governments”; Rocky Mountain Institute, September 2018

47“At groundbreaking, officials say Catalyst Building will be smartest ever built”; The Spokesman-Review, Thursday August 9, 2018

42

43

Appendix A

The assessment titled “Green Economy Industry Roadmap Meta-Analysis”, includes an analysis of global trends in clean technology for the four industry groups based on a review of existing literature, research, interviews with partners and industry leaders. The “Green Economy Industry Roadmap Meta-Analysis” is “Appendix A” to this report.

44

Green Economy Industry Roadmap

August 2018

Prepared for:

Prepared by:

Community Attributes Inc. tells data-rich stories about communities

that are important to decision makers.

President & CEO

Chris Mefford

Project Manager

Spencer Cohen, PhD

Analysts

Madalina Calen

Carrie Schaden

Sean Volke

Community Attributes Inc.

500 Union Street, Suite 200

Seattle, Washington 98101

www.communityattributes.com

This page was intentionally left blank.

A W C C Q C A U G U S T 2 0 1 8 P A G E i

G R E E N E C O N O M Y

CONTEN TS

Contents ........................................................................................................................... i

Introduction .................................................................................................................... 1

Background and Report Objectives .............................................................................. 1

Methods and Data ........................................................................................................ 1

Organization of Report ................................................................................................. 1

Green Economy Industries .............................................................................................. 2

Energy ......................................................................................................................... 2

Agriculture & Forestry ................................................................................................. 2

Building Materials ....................................................................................................... 2

Water ........................................................................................................................... 3

Energy ............................................................................................................................. 4

Key Target Opportunities ............................................................................................ 4

Leading Trends in Energy ............................................................................................ 4

Sources of Demand ....................................................................................................... 5

Globally .................................................................................................................... 5

U.S. ........................................................................................................................... 7

Research ...................................................................................................................... 8

Key Assets and Strengths in Washington State ......................................................... 13

Agriculture & Forestry .................................................................................................. 19

Key Target Opportunities .......................................................................................... 19

Leading Trends in Agriculture & Forestry ................................................................. 19

Sources of Demand ................................................................................................. 21

Growth in Demand ................................................................................................. 22

Resource Availability .............................................................................................. 23

Climate Change ...................................................................................................... 23

Policy ...................................................................................................................... 23

Agriculture & Forestry R&D ...................................................................................... 24

Sustainable Food Systems ...................................................................................... 24

Vertical Farming .................................................................................................... 24

Alternative Food Sources ........................................................................................ 24

Aquaculture ............................................................................................................ 25

Digital Agriculture .................................................................................................. 26

A W C C Q C A U G U S T 2 0 1 8 P A G E i i


Biotechnology Applications ..................................................................................... 26

Sustainable Forestry............................................................................................... 27


Building Materials ........................................................................................................ 32


Leading Trends .......................................................................................................... 34

Population and Growth in the Built Environment .................................................. 35

Recycling Trends and Opportunities ....................................................................... 35

Sources of Demand ................................................................................................. 36

Challenges .............................................................................................................. 38


Water ............................................................................................................................ 47


Macro Trends—Population Growth, Urbanization and Global Food Supply .............. 47

Potable Water ............................................................................................................ 51

Water Treatment ....................................................................................................... 52

Irrigation ................................................................................................................... 54

Surface Water ............................................................................................................ 56

Water Conservation and Infrastructure ..................................................................... 58

Trends in Water Technology and Water Economics ................................................... 59

Economic Development Opportunities from Water Industries and Sustainable

Practices .................................................................................................................... 59


Opportunities for Washington ....................................................................................... 67

A W C C Q C A U G U S T 2 0 1 8 P A G E 1


IN TRODUCTION

Background and Report Objectives

Climate change, environmental degradation and resource mismanagement, if

not adequately addressed, will increasingly impact societal wellbeing across

the globe. Fortunately, many of the solutions to these problems are within

reach and can be addressed through existing technological know-how, policy

and industry expertise. Innovating solutions to these challenges presents a

significant economic opportunity, particularly for Washington state

businesses, organizations and communities. The “green economy” represents

the intersection between these technologies and solutions and real economic

opportunity.

The Association of Washington Cities Center for Quality Communities (CQC)

is leading an effort to identify areas of growth and economic opportunity in

the green economy in Washington state across four areas: energy, agriculture

& forestry, building materials and water. As part of these efforts, the CQC

has requested Communities Attributes Inc. develop an industry road map for

each of these industries. Analysis includes a review of key trends, both

globally and domestically, an asset inventory in Washington state and an

opportunities assessment that maps these global trends and sources of

demand with Washington state capabilities. Findings will be used by

technical work groups for each industry to develop a set of actionable

strategies for city-based green technology-focused economic development.

Methods and Data

A wide range of sources was used in the compilation and synthesis of this

report. These include reports, news articles, data on industry trends when

available from national and international organizations and 21 interviews

with industry leaders, government agencies, investors and trade associations.

Organization of Report

The remainder of the report is organized as follows:

• Green Economy Industries. A review of each industry, including

description of illustrative activities.

• Energy. A review of key trends in the clean energy industry,

including sources of demand, research, innovation and key assets in

Washington state.

• Agriculture & forestry. Analysis of global and domestic trends,

research and key assets in Washington state.



• Building materials. Review of key trends in mass timber and its

subset, cross-laminated timber, industry advancements, research and

key assets in Washington state.

• Water. Major challenges in the access, management and sustainable

use of potable and brown water sources, and key assets in Washington

state.

GREEN ECONOMY INDU STRIES

The industries identified by the CQC represent a wide range of activities and

technologies. An initial set of interviews helped to narrow the focus of each

industry to those activities and technologies that represent potential

opportunities for Washington state businesses.

Energy

This report presents a global and national perspective on the clean energy

industry, then focusing on subsectors relevant to Washington state such as

alternative and renewable energy, particularly hydro and wind, smart grid

technology, power storage, power grid management and efficient buildings.

Clean technology in the energy industry is the combination of programs and

capital investments that result in energy-efficient facilities that save

consumers energy and money, use low or no carbon emitting energy sources

and have energy delivery systems that reduce waste and minimize impact on

our air, water and natural environment.

Agriculture & Forestry

Agricultural & forestry clean technology encompasses many areas, such as

crop optimization, consumer food sourcing and industrial biotechnology. All

these areas involve hardware and software solutions aimed at improving

yields and sustainability of agriculture and forestry while lowering

environmental impact.

Building Materials

Green economy building materials refer specifically to:

• Mass timber and its subset, cross-laminated timber (CLT). Mass

timber refers to “a category of framing styles typically characterized

by the use of large solid wood panels for wall, floor and roof

construction.”1

1 American Wood Council, “Mass Timber in North America: Expanding the

Possibilities for Wood Building Design,” page 2, 2017:

http://www.awc.org/pdf/education/des/ReThinkMag-DES610A-

MassTimberinNorthAmerica-161031.pdf (accessed at April 27, 2018).

http://www.awc.org/pdf/education/des/ReThinkMag-DES610A-MassTimberinNorthAmerica-161031.pdf




• Recycled materials, such as gypsum and particle board made from

recycled woods and other materials.

Water

Water opportunities extend to numerous other sectors of the state economy,

including natural resources, agriculture, industrial uses and energy. In this

study, green technology applications in water include:

• Potable water. Growing stress on available water for human

consumption due to population growth, competing uses and climate

change.

• Water treatment. Improved methods for treating and reusing water,

helping to address competing uses for water among residents,

businesses and ecosystems.

• Irrigation. New methods and technologies for more efficiently using

water, such as precision-based sprinkler systems and drip irrigation.

• Surface water. Including the growing need to manage stormwater

runoff.



EN ERGY

Key Target Opportunities

• Climate change will continue to necessitate the development of

renewable energy and energy conservation solutions, though the rate

of adoption will vary widely across the globe.

• Clean energy technologies are increasingly cost competitive.

• Some countries, notably China, have made vast investments in clean

energy technologies and will be key sources of both demand and

competition now and in the coming years.

• Much of the clean energy revolution entails the intersection of energy

and information technology, such metering, efficiencies in use and

distribution and energy management.

Leading Trends in Energy

Clean energy is generally used within the energy industry to refer to any

source of power that does not pollute and harm the environment. Clean

energy is often used as a synonym for renewables such as solar power,

geothermal, wind energy, biomass, tidal power or hydropower. However,

clean energy encompasses other industries such as energy efficiency, grid

modernization and storage, renewable fuels and alternative transportation.

The pursuit of clean energy is at the heart of the world’s aspirations for a

better future, as reflected in the 197 countries having signed the Paris

Agreement on Climate Change. Moving from fossil fuels to renewable sources

such as solar and wind is key to achieving social, economic and

environmental development. The International Energy Agency outlines the

outlook for this industry in their World Energy Outlook report:2

• Clean energy technologies are competing on price. Clean energy

technologies will continue to experience rapid deployment due to

falling costs.

• The share of electricity in the energy mix will continue to

grow. In 2016, spending by the world’s consumers on electricity

approached parity with their spending on oil products.

• China’s new economic strategy involves a shift to a more

services-oriented economy. Planning to become less reliant on

heavy industry and coal, the country will impact its energy mix with

implications for the global energy markets, as China remains the

world’s largest energy consumer.

• Shifting from being an energy-dependent importer, the United

States is expected to become the global leader in oil and gas

2 https://www.iea.org/newsroom/news/2017/november/a-world-in-transformation-

world-energy-outlook-2017.html

https://www.iea.org/newsroom/news/2017/november/a-world-in-transformation-world-energy-outlook-2017.html

https://www.iea.org/newsroom/news/2017/november/a-world-in-transformation-world-energy-outlook-2017.html



despite lower prices. The shale oil and gas revolution in the United

States continues, fueled by the remarkable ability of producers to

unlock new resources in a cost-effective way. By 2030, the United

States is expected to produce more than 30 million barrels of oil and

gas a day, largely due to production from shale-rock formations.

Sources of Demand

Globally

Overall global investment in clean energy is up 3% from 2016 and at its

second-highest point in history. The latest figures from Bloomberg New

Energy Finance show that global clean energy investment was $335.5 billion

in 2017, up from $324.6 billion in 2016 and only 7% short of 2015’s record

investment of $360 billion (Exhibit 1).

Exhibit 1. Global New Investment in Clean Energy, 2004 - 2017

Sources: Bloomberg New Energy Finance, Clean Energy Investment Trends, 2017; Community

Attributes Inc., 2018.

China’s share of total global investment in clean energy technologies

continues to increase, remaining the highest of all countries. Overall,

Chinese investment in 2017 across all clean energy technologies was $132.6

billion, up 24% from $107 million in 2016. The United States is the second-

largest investing country with $56.9 billion in 2017, followed by Japan

(included in Other APAC in Exhibit 2) with $23.4 billion. Large wind and

solar project financings pushed Australia up 150% to a record $9 billion, and

Mexico up 516% to $6.2 billion.

62

88

130

182

205 207

276

324

291269

321

360

325 334

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$ bn, Nominal



On the downside, investment in the European Union plunged by more than

half to 17% of the global total, or $57 billion in 2017, after peaking at $138

billion in 2011. As recently as 2010, Europe made up 45% of global clean

energy investment. In the years after the global financial crisis, EU countries

like Spain, the United Kingdom and Italy have cut incentives for renewable-

energy projects, citing efforts to reduce government spending and electricity

rates during a period of economic turmoil. As a result, investors have been

stirring away from an industry that offered the assurance of steady,

government backed-profits (Exhibit 2).

Exhibit 2. Global New Investment in Clean Energy by Region, 2004 - 2017



Note: Europe includes all EU countries and non-EU countries like Switzerland, Norway,

Turkey and Russia. However, the majority of clean energy investment stems from the 28 EU

members.

Solar leads the way in clean energy investment by industry and

moves from third largest industry in 2006, behind wind and biofuels,

to the largest industry by 2011 (Exhibit 3). Global solar investment was

$161 billion in 2017, an increase of 18% from 2016 despite reductions in cost.

The two largest solar projects of all last year were both in the United Arab

Emirates: the 1.2GW Marubeni JinkoSolar and Adwea Sweihan plant, at an

estimated $899 million, and the 800MW Sheikh Mohammed Bin Rashid Al

Maktoum III installation, at $968 million.

Wind comes second in terms of investment in 2017, at $107.2 billion.

Although 2017 investment levels fell by 12%, there were record breaking

projects financed both onshore and offshore. Offshore there were 13 Chinese-

17% 19%27% 26% 21% 17% 17% 19% 18% 17% 16% 16% 17% 17%

1%3%

4% 5%6%

4% 3%3% 3% 2% 2% 2% 2% 2%

4%4%

3% 3%3%

3% 5% 3% 4% 5% 5% 4% 2% 4%

49% 44%41% 41%

43%44% 45% 43%

34%26% 24%

20% 24% 17%

1% 1%1% 1% 1%

1% 2% 1%

4%

4% 3%4%

3%3%

5% 10%9% 9% 12%

19% 16% 16%22%

25% 28% 35% 33% 40%

4%4%

4% 4% 3% 2% 3% 4% 3%

3% 3% 3% 4% 3%18% 15% 12% 11% 11% 11% 10% 11% 13%

19% 19% 17% 15% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

United States Brazil Other AMER Europe

Other EMEA China India Other APAC



financed wind projects with a total capacity of 3.7 GW. There was an

estimated investment of $10.8 billion and one 1.4 GW project in the U.K.

North Sea, at an estimated $4.8 billion. Onshore, American Electric Power

stated it would back the 2GW Oklahoma Wind Catcher project in the U.S., at

$2.9 billion excluding transmission.

Energy-smart technologies come in third with investment in digital energy,

smart grids, power storage, hydrogen and fuel cells, advanced transportation

and energy efficiency reaching roughly $49 billion in 2017.

Exhibit 3. Global New Investment in Clean Energy by Industry, 2004 - 2017



Note: “Other” includes Biomass & Waste, Biofuels, Geothermal, Small hydro, Marine and Low

carbon services and support. The clean energy investment total excludes hydroelectric projects

of more than 50MW. However, for comparison, final investment decisions in large hydro were

likely to have been worth $40 to $50 billion in 2017.

United States

The 2018 Sustainable Energy in America Factbook published by Bloomberg

New Energy Finance (BNEF) and the Business Council for Sustainable

Energy (BCSE) identifies three main growth industries of the U.S. energy

economy in 2017: energy efficiency, natural gas and renewable energy. Key

trends in the clean energy industry include:

• Natural gas and renewable energy industries employed roughly 3

million jobs in 2016.

18% 18% 17%21%

30% 31%37%

49% 48% 45% 45%50%

42%48%

32% 32% 31%

34%

36% 39%

37%

27% 29% 32% 34%35%

37%32%

18%14%

10%

10%

9%13%

11% 9% 11% 11% 10%9%

14% 15%

20%23% 32%

27%

17%12% 10% 10% 8% 7% 6%

4% 3% 2%12% 14% 11% 8% 7% 6% 5% 6% 4% 5% 5% 3% 4% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Solar Wind Energy smart technologies Bioenergy Other



• Energy efficiency was the top employer within the sustainable energy

industries, and solar was the fastest growing job-creator among all

electricity generation technologies.

• Household expenses on energy costs were at 4%, near an all-time low,

while industrial prices also remained low, giving the U.S. a global

competitive advantage for energy-intensive industries.

• New U.S. investments in clean energy tracked 2016 levels at $57

billion, but there was a shift in capital deployment towards wind and

energy-smart technologies (Exhibit 4).

• Renewable generation increased from 15% to 18% of the total

electricity mix in 2017, more than twice their concentration a decade

ago. The expansion mainly owes to a rebound in hydro and an

increasing number of wind and solar built in 2016 that had their first

year of operation in 2017.

• The U.S. was for the first time a net exporter of liquified natural gas

in every month of 2017.

• The role of corporations in the energy transformation industry is

becoming more important, as more companies look to capture the

benefits of energy efficiency and the federal government backtracks

from national and international engagement on climate change issues.

Exhibit 4. U.S. New Investment in Clean Energy, 2004 - 2017



Research

Every year, the Energy Department’s Office of Energy and Efficiency and

Renewable Energy publishes Revolution Now, a report that documents the

10.4

16.5

34.6

47.143.6

35.1

46.6

62.3

52.9

44.6

52.2

58.456.4 56.9

0

10

20

30

40

50

60

70

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$ bn, Nominal



accelerated deployment of clean energy technologies with significant impacts

to the U.S. market. In 2016, Revolution Now focused on five clean energy

technologies that already provide benefits and are easily visible in our daily

lives.3

Wind Power

In 2015, wind power accounted for 41% of all new generation capacity built in

the United States and there were nearly 74,000 megawatts (MW) of utility-

scale wind power deployed across 41 states.

The success of wind deployment is owed in part to the recent decrease in

wind prices from 7 cents/kilowatt-hour (kWh) in 2009 to an average of 2

cents/kWh today in some parts of the United States. Government investment,

infrastructure development and federal and state incentives have also

contributed to the increase in deployment. The Department of Energy alone

has invested $2.4 billion in wind research and development between 1976

and 2014. Finally, state policies like state renewable portfolio standards and

federal policies like the production tax credit (PTC) have played essential

roles in driving continued deployment of wind.

Revolution Now outlines some areas in which innovation is expected to

further expand the market for wind power and increase its competitiveness:

• Taller towers and longer blades could allow access to stronger and

more consistent winds. This could lead to the development of more

projects in areas like the Southeastern U.S., where historically there

has not been significant wind development.

• Offshore wind holds enormous potential as a future source of clean

electricity for the nation. The 30 MW Block Island project, located off

the shore of Rhode Island, is the first commercial offshore wind power

plant to operate in the U.S.

• Private corporations across a range of industries are purchasing more

wind power—from roughly 100 MW in 2011 to nearly 2,000 MW in

2015.

Photovoltaic Power

Utility-scale solar PV costs have dropped by more than 64% since 2008,

expanding deployment of the technology. Total capacity grew by 43% in 2015,

reaching nearly 14,000 MW. Falling prices have led to the expansion of

utility-scale PV to areas beyond sundrenched Southwestern markets, such as

3 U.S. Department of Energy, Revolution Now – The Future Arrives for Five Clean

Energy Technologies – 2016 Update, September 2016.

A W C C Q C A U G U S T 2 0 1 8 P A G E 1 0


east of the Rocky Mountains, including Texas and Southeastern and

Midwestern parts of the country.

Like wind power, utility-scale PV is purchased by both non-utility consumers

and, increasingly, the federal government. As of mid-2016, there were more

than 21,000 MW of utility-scale solar projects under development, with 8,400

MW of that total already under construction.

Distributed PV systems have experienced similar trends, with rises in

installation partly due to a 54% reduction in installed costs since 2008. The

federal investment tax credit (ITC) and net energy metering policies at the

state level have also been conducive to cost reductions. Finally, growth in the

solar market has been supported by initiatives such as:

• Clean Energy Savings for All, which intends to bring 1 gigawatt (GW)

of solar power to low- and moderate-income families by 2020.

• National Community Solar Partnership, which expands solar access to

new demographic and geographic markets and convenes relevant

stakeholders to assess market barriers and catalyze deployment in

low- and moderate-income communities.

LED Light Bulbs

A-type LED installations surpassed 200 million in 2015, more than doubling

the previous year’s figure. According to the Department of Energy (DOE)

Revolution Now report, A-type LED bulb costs are around 94% lower than in

2008. Switching entirely to LED lights in the next two decades could

generate $250 billion in energy savings in the U.S. Ongoing technology

research and development (R&D) improvements will continue to lower costs

and improve the efficiency and performance of LEDs.

Electric Vehicles (EV)

More than 490,000 electric vehicles have been sold in the United States as of

August 2016. Battery technology is a key factor that impacts the cost of EV

ownership, and both private and public organizations have invested in

battery R&D. Between 1992 and 2012, the DOE invested $1 billion in battery

R&D, which advanced the state-of-the-art by six years and created $3.5

billion of economic value.

Another important factor of maintaining the momentum for EVs is improved

and expanded infrastructure. Today, there are more than 35,000 public and

private charging outlets in the United States. The DOE plans to collaborate

with utilities in accelerating EV charging infrastructure deployment. Other

support for EV adoption includes drivetrain improvements, tax credits and

other incentives and public and private investment in domestic EV

manufacturing capacity.



Emerging Technologies

In addition to the five clean energy technologies mentioned above, the DOE’s

Revolution Now report also mentions emerging technologies expected to

transform the energy industry over the next five to ten years. These include

fuel-efficient long-haul trucks, smart buildings, vehicle lightweighting

materials, fuel cells, grid-connected batteries and big area additive

manufacturing, commonly known as 3-D printing. The DOE continues to

invest in the R&D of these technologies. For example:

• SuperTruck Initiative has led to commercialization of 21 new

transportation technologies to date, including breakthroughs in the

areas of aerodynamics and engine/drivetrain integration.

• Smart Energy Analytics Campaign provides technical support

and recognition for owners in their use of a wide variety of

commercially available Energy Management and Information Systems

(EMIS) technologies.

• SunShot program awarded $18 million in 2016 to develop energy

storage solutions for solar power using battery and other technologies,

with the goal of developing projects to enable essentially “on-demand”

solar power.

Cleantech Patents

According to a study by the Brookings Institution, the total number of

granted patents in the clean technology industry has more than doubled

between 2001 and 2014. However, it has since fallen by 9 percent from 35,300

patents to roughly 32,000 (Exhibit 5). The patents in clean energy related

technology areas, which represent almost 50% of total patents granted in the

country in 2016, have followed a similar trend.4

4 https://www.brookings.edu/blog/the-avenue/2017/04/26/patenting-invention-five-

clean-energy-innovation-trends/

https://www.brookings.edu/blog/the-avenue/2017/04/26/patenting-invention-five-clean-energy-innovation-trends/

https://www.brookings.edu/blog/the-avenue/2017/04/26/patenting-invention-five-clean-energy-innovation-trends/



Exhibit 5. Clean Tech and Clean Energy Patents, 2011 - 2016

Sources: IP Checkups Cleantech PatentEdge database, 2018; Community Attributes Inc., 2018.

Note: “Clean Energy Related” includes Bioenergy, Energy Efficiency, Energy Storage,

Geothermal, Hydro & Marine Power, Nuclear, Solar, Wind.

U.S. cleantech patenting is concentrated in relatively few technology

categories. Advanced green materials, energy efficiency and transportation

each accounted for 18 percent of total cleantech patenting between 2011 and

2016 (Exhibit 6), while energy storage accounted for 15 percent. Far fewer

patents are granted in areas such as geothermal energy, hydro & marine

power and nuclear generation.

15.0 14.9 15.7 15.013.4

15.7 14.9 14.716.0

22.924.9

27.9

31.6

35.3 34.9

32.0

4.4 4.4 4.7 4.7 4.3 5.2 5.2 5.46.5

10.011.6

13.9

16.418.6

17.215.8

0

5

10

15

20

25

30

35

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Clean Energy RelatedThousands



Exhibit 6. Clean Tech Patents Across Technology Areas, 2011 - 2016

Sources: IP Checkups Cleantech PatentEdge database, 2018; Community Attributes Inc., 2018.

Key Assets and Strengths in Washington State

Energy Industry Overview in Washington State

Due to the low price and abundant supply of hydropower, the development of

other renewable technologies (wind and solar) has been slow in a regulatory

environment that mandates lowest cost supplies until recent price declines

have made the technologies cost competitive. However, in recent years,

Washington state has pushed forward with an ambitious agenda to become a

global leader in the clean energy industry, owing in part to a unique

intersection of some of Washington’s leading industries—aerospace,

information & communication technology (ICT) and agriculture—with the

energy industry.

Washington state’s electricity industry powers nearly 2 million households

and more than 200,000 businesses. Technology plays a critical role

throughout the state in power generation, transmission, distribution and

consumption. Ninety percent of Washington’s electricity comes from

hydropower, solar and wind, compared to only 11 percent nationwide.

Washington is second in the nation only to California for electricity

generated from renewable resources.

18%

18%

18%

15%

9%

5%

4%

4%

3%

3%

2%

1%1%

0.2% Transportation

Advanced Green

MaterialEnergy Efficiency

Energy Storage

Solar

Air

Bioenergy

Water & Wastewater

Conventional Fuel

Wind

Recycling & Waste

Hydro & Marine Power



According to the 2018 U.S. Energy and Employment Report (USEER),

Washington state employs roughly 150,000 people in energy jobs. Over

54,500 of these are ‘traditional’ energy workers. Another 62,500 are energy

efficiency jobs, accounting for 2.8% of all U.S. energy efficiency jobs, making

Washington a national leader in the industry (Exhibit 7). The largest

number of energy efficiency employees work in traditional HVAC firms,

followed by Energy Star & Efficient Lighting. The remaining 32,000 jobs are

found in the motor vehicles industry.

Exhibit 7. Employment by Major Energy Technology Application,

Washington State, 2017

Source: National Association of State Energy Officials, Energy Employment by State, 2018;

Community Attributes Inc., 2018.

Overview of Washington’s Key Strengths in Clean Energy

Washington state is a prominent pioneer in the global clean tech industry,

boasting the largest state trade association of cleantech businesses in the

country (Washington CleanTech Alliance), the world’s greenest building

(Bullitt Center) and a #1 ranking for hydroelectricity production in the

nation.5 According to the state’s Department of Commerce 2017-2019

Proposed Strategic Plan for the clean technology industry, Washington has

5 Trade Development Alliance of Greater Seattle, “UniEnergy Technologies Leading

the Energy Storage Movement,” July 2017:

https://www.seattletradealliance.com/blog/tda-blog/post/unienergy-technologies-

leading-the-energy-storage-movement.

14,800

7,800

31,900

62,500

32,200

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Electric Power

Generation

Fuels Transmission,

Distribution, and

Storage

Energy

Efficiency

Motor Vehicles

https://www.seattletradealliance.com/blog/tda-blog/post/unienergy-technologies-leading-the-energy-storage-movement

https://www.seattletradealliance.com/blog/tda-blog/post/unienergy-technologies-leading-the-energy-storage-movement



competitive advantages in several energy industries: energy generation,

energy storage, energy infrastructure, energy efficiency and transportation.

Resources. The state’s hydropower system has set Washington on the path

to becoming a leader in the clean energy industry. Washington also benefits

from other resources, like geothermal, strong tides, wind, solar (in the east),

biofeed-stocks and cooling water.

Education and R&D Cluster. The state benefits from a strong network of

educational and research institutions supporting clean energy, such as the

Pacific Northwest National Laboratory, University of Washington,

Washington State University and important trade and industry

organizations, including the Washington Clean Technology Alliance,

Washington Technology Industry Association and Northwest Energy

Efficiency Council.

Strong Policy and Government Support. Washington’s clean tech

industry benefits from strong public support through policy measures that

aim to create a thriving innovation and entrepreneurship ecosystem. To

attract investment, Washington state offers businesses a range of incentives

including business and occupation (B&O) tax reductions for manufacturers of

solar energy systems, sales and tax credits for equipment that generates

electricity using renewables and others.

Talented Workforce. Washington state offers employers a highly talented

and trained workforce. The presence of strong Information, Technology and

Communications (ICT) and Aerospace clusters, as well as world-class

education institutions, has attracted an expert workforce that gives the state

a competitive edge.

Leading Companies and Associated Technologies

The Washington State Department of Commerce estimates that the clean

tech industry in the state employs roughly 57,000 workers and is supported

by more than $1 billion in venture capital. The clean tech industry in

Washington has over 900 companies serving more than 12 different

industries and possessing over 195 clean technology patents. Exhibit 8

summarizes illustrative businesses in the clean energy industry in

Washington state.



Exhibit 8. Leading Private Sector Clean Energy Companies, Washington

State

Technology/

Capability

Illustrative

Companies

Description of Tech

Renewables -

Wind

Oscilla Power Wave energy converter

Trident Winds Commercial-scale offshore wind

farm

Renewables -

Solar

Itek Energy Solar modules

Energy storage

and batteries

UniEnergy

Technologies (UET)

Large-scale energy storage

systems using advanced

vanadium flow battery

Demand Energy

(Enel Group

company)

Battery storage optimization

systems and software

(Distributed Energy Network

Optimization System)

EnerG2 Commercial-scale production of

carbon materials for energy

storage devices

Group14

Technologies

New-low cost approach to nano-

scale silicon production for use in

lithium ion batteries

Energy efficiency Engie Insight

(former Ecova)

Energy supply management

technologies

McKinstry Energy-smart building systems

Grid technology Itron Smart grid

1Energy Systems

(Doosan GridTech

company)

Software for grid-connected

energy storage systems (ESS)

Avista

Seattle City Light

Orcas Power and

Light

Snohomish County

PUD

Energy Northwest

Grid modernization

Schweitzer

Engineering

Hardware and software for the

grid

Transportation SGL Automotive

Carbon Fibers

Carbon-based products for

electric cars



Innovation and Research

Washington is home to many research entities committed to the mission of

biofuels and bioproducts. A number of these are included in Exhibit 9.

Exhibit 9. Biofuel and Bioproduct Research Entities in Washington State

Illustrative Companies Description of Tech

WSU Center of Excellence for

Alternative Jet Fuels and the

Environment

Alternative jet fuels

WSU Northwest Advanced

Renewables Alliance (NARA)

Aviation biofuels and co-products

from feedstocks as diverse as forest

residues and construction waste

WSU Office of Clean Technology Technologies to convert feedstocks to

aviation biofuels

Fuel cell systems that directly

convert bio-based jet fuels to

electricity

WSU Bioproducts, Sciences, and

Engineering Laboratory (BSEL)

Bioproducts, bioprocesses and

bioenergy

WSU Energy Systems Innovation

Center

Smart grid

University of Washington Clean

Energy Institute

Solar energy and battery materials

and devices

University of Washington CAMCET building

PNNL

Analytical Resources

McKinstry Innovation Center

Workforce Training and Educational Institutions

The Pacific Northwest Center of Excellence for Clean Energy has served the

region for the past 12 years by representing the needs and interests of the

energy industry and labor partners. It is charged with narrowing the gap

between employers’ demands for a highly skilled workforce and the ability of

community colleges to supply work-ready graduates.

Demand for energy workforce training at colleges across Washington state is

continuing to grow. In the last 10 years, the number of workforce training

programs in the state has quadrupled, from 5 to 20. Enrollment in training in

key clean energy industries like wind, solar, sustainability and smart

buildings is growing at twice that rate, with growth of almost 12 percent.

Growth is occurring even faster in new technology areas like smart buildings,

where demand for training at South Seattle College has grown 33 percent

since the program started in 2013.



In addition to the programs at the community college level, Western

Washington University established the Institute for Energy Studies in 2012.

The Institute for Energy Studies is one of the only bachelor’s degree

programs in the country to combine technology, economics, business and

public policy at the undergraduate level to prepare students for jobs in the

new energy economy. Over the last three years, enrollment in the Institute

for Energy Studies has more than doubled.

Western Washington University also works in partnership with community

and technical colleges to develop curricular programs and streamline

pathways to degrees in energy-related studies for students who would like to

continue their education.

Policy and Government Support

The growth of the clean energy industry is reliant on coherent long-term

energy policies, government-led incentives and government commitment to

investments in clean tech R&D, energy innovation and the clean technology

business ecosystem. State policies and incentives can make investments in

clean energy more attractive by reducing cost barriers, lowering risk and

reducing regulatory compliance costs.

As established by the Washington State Legislature (RCW 43.21F.010),

Washington has three energy strategy goals:6

• Maintain competitive energy prices that are fair and reasonable for

consumers and businesses and that support the state's continued

economic success;

• Increase competitiveness by fostering a clean energy economy and jobs

through business and workforce development; and

• Meet the state's obligations to reduce greenhouse gas emissions.

With the passage of Initiative 937 in 2006, enacted as the Energy

Independence Act (EIA), Washington state became the second state after

Colorado to pass a renewable energy standard which mandated that 15% of

the state’s electricity come from renewable energy sources other than hydro

by 2020. Currently 18 utilities are subject to Initiative 937, which provide

80% of the electricity sold to Washington retail customers. As result of the

EIA, the state now has over 3000MW of installed wind capacity and it has

the utility with the largest wind portfolio in the United States.

Washington state also offers tax credits, rebates, performance payments,

property and sales tax exemptions to help create conditions for long-term

market development and growth.

6 https://app.leg.wa.gov/rcw/default.aspx?cite=43.21F.010

https://app.leg.wa.gov/rcw/default.aspx?cite=43.21F.010



For example, since 2006, Washington state has been offering incentives to

individuals, businesses and local governments for generating electricity from

solar power, wind power or anaerobic digesters. This program has

encouraged over 7,000 residents and businesses to invest in and install solar

in their communities. On July 1st, 2017, the Washington State Legislature

passed Senate Bill 5939, which revised and extended this incentive program.

The program provides additional incentives for using equipment made in

Washington State.

In 2013, the state established the Clean Energy Fund through a $36 million

investment. The purpose of the Clean Energy Fund is to expand clean energy

projects and technologies statewide. The initial investment attracted an

additional $60.5 million in outside funding. The fund was designed to

“provide a benefit to the public through development, demonstration and

deployment of clean energy technologies that save energy and reduce energy

costs, reduce harmful air emissions or otherwise increase energy

independence for the state.” The Clean Energy Fund is focused on grid

modernization, electrification of transportation, R&D and demonstration and

solar programs.

AGRICU LTURE & FO RESTRY


• More efficient uses of resources and improved yields. Demand for

higher yield food production, facing a growing population, and for

more protein as countries develop and competition for labor increases.

• Agriculture globally needs to become cleaner, convert to a more

environmentally sustainable model and produce less greenhouse gas

emissions.

• Sustaining or enhancing profitability in the agriculture sector.

• Reduced ecological impact and associated social costs.

Leading Trends in Agriculture & Forestry

In a new report on agricultural cleantech, Kachan, an analysis and

consulting company, uses the following criteria to differentiate cleantech

developments from generic agricultural innovations:7

• A cleantech development has more efficient use of resources;

• Reduced ecological impact and social costs;

• Smaller carbon footprint; and

• Sustained or enhanced profitability.

7 http://www.kachan.com/content/agricultural-cleantech-agtech-report

http://www.kachan.com/content/agricultural-cleantech-agtech-report



The agriculture sector is one of the world’s largest economic sectors. Net farm

income, a broad measure of profits, is around $120 billion and farm assets

are roughly estimated at $2 trillion.8 However, compared to other industries

like energy, agriculture has seen relatively less investment in clean

technologies over time, and even where investment occurred, there has been

a slow adoption of new digital technologies.

In more recent years, investment in agriculture and the food sector has

picked up, with figures since 2014 consistently doubling the value amount of

investments of previous years. The sub-sectors driving the growth are

technological advancements in automation such as drone technologies, data

and the Internet of Things (IoT), sustainable proteins and genetic

engineering of crops in agricultural biotech. These combined have

contributed to more than $1 billion in investment in 2016 to the agriculture

and food industries (Exhibit 10).

Exhibit 10. Agriculture & Food Sector Global Investment, 2010 - 2016

Source: Cleantech Group, Quarterly Investment Monitor, 2018; Community Attributes, 2018.

8 Dutia, G. Suren. AgTech: Challenges and Opportunities for Sustainable Growth.

Ewing Marion Kauffman Foundation, April 2014.

$297.0 $308.5$394.8

$470.4

$1,145.3

$979.9$1,084.4

5645

88

105

194

148 152

0

50

100

150

200

250

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2010 2011 2012 2013 2014 2015 2016

Total $ Amount

Total Deal Volume

Deal VolumeMillions $



A summary provided by Cleantech Group on the 2018 Cleantech Forum in

San Francisco emphasizes some of the current challenges the industry faces

and some potential solutions for overcoming them:9

• Digital technologies add complexity for farmers and turn agronomy

into a science rather than an art, as many practitioners view it. This

makes a data-driven approach difficult to implement.

• Additionally, digital technologies can have a disruptive effect on crop

insurance because they provide insurance companies with a data-

driven approach to distinguish between externalities like bad weather

and erroneous farming processes. Farmers then risk losing their

insurance benefits unless they adopt a more scientific-based approach.

• Corporate strategic partnerships are required to ensure a sustainable

food system, with investors committing for the long term to truly add

value to the ecosystem. Corporate partnership is also a key attribute

in de-risking new technology.

• The success of agricultural biotechnology is dependent on public

adoption and acceptance of new technologies, like gene editing.

• Farmers are increasingly concerned about who owns the data collected

on their farm by sensors, drones or software. Clear guidelines are

needed to make growers feel confident in the security of their data.

Sources of Demand

Agriculture will play a crucial role in addressing the planet’s future needs

related to food production, health and the preservation of the environment.

Transforming the global agricultural model could be the greatest challenge of

all. While agriculture should be an integral part of the solutions for the 2030

United Nations Agenda for Sustainable Development and contribute towards

SDG 1, 2, 3 (no poverty, zero hunger, good health and well-being), it must

also support SDG 12, 13, 14 and 15 (responsible consumption and production,

climate action, life below water, life on land).10

High-input, resource-intensive farming systems, which have led to massive

deforestation, water scarcities, soil depletion and high levels of greenhouse

gas emissions, cannot deliver sustainable food and agricultural production.

More innovative systems are needed to protect and enhance the natural

resource base while increasing productivity. Adoption of clean technology in

the agriculture and forestry sector can help overcome some of the challenges

that the sector is facing. This section of the report discusses key main drivers

for production and adoption of clean technology in agriculture and forestry.

9 https://www.cleantech.com/next-gen-agriculture-food-what-did-we-learn/ 10 United Nations. Transforming Our World: The 2030 Agenda for Sustainable

Development; United Nations: New York, NY, USA, 2015; pp. 1–41.

https://www.cleantech.com/next-gen-agriculture-food-what-did-we-learn/



Growth in Demand

The Food and Agriculture Organization (FAO) of the United Nations

forecasts that demand for food and other agricultural products will increase

by 50% between 2012 and 2050. Population growth is one of the key drivers

of food demand and while, in general, world population is slowing down,

some parts of the world like Africa and Asia will still see a large population

expansion well beyond 2050.

Population dynamics also have an impact on food demand and on food

systems, with more people now living in the cities. Urbanization has been

accompanied by a change in food consumption patterns with a shift towards

processed foods and food products that have more labor embedded in them,

for example, fast food or store-bought convenient foods, and an increase in

kilocalories per day within developing regions (Exhibit 11).

Exhibit 11. Food Supply by Region in Kilocalories per Person per Day, 1961

- 2013

Source: UN Food and Agricultural Organization (FAO), 2018; Community Attributes, 2018.

Finally, an increasingly important source of the food demand increase is per

capita increases in income. Since the proportion of income spending on food

decreases as incomes rise, growth in global food demand will be greater if

incomes grow faster in developing countries than in high-income countries.

Such a pattern of income convergence has become established in recent years

with implications for food demand and supply.

1,500

2,000

2,500

3,000

3,500

4,000

1961 1970 1980 1990 2000 2013

World Africa Northern AmericaSouth America Asia EuropeOceania

Kcal/Capita/da



Resource Availability

Competition for natural resources is intensifying due to changes in

consumption patterns driven mainly by population growth, industrial

development, urbanization and climate change. Intensified competition leads

to overexploitation of the resource base, harming the environment and

creating a continuous loop where more degradation leads to more fierce

competition for resources.

FAO estimates that 33% of the world’s farmland is moderately to highly

degraded and forest losses due to expansion of agricultural land have

amounted to just under 100 million ha. In addition, available farmland is

concentrated in only a few countries and in some regions is not readily

accessible, due to the lack of infrastructure, physical remoteness or

vulnerability to disease outbreaks.

Water scarcity is also expected to become a constraint as more than 40% of

the world’s rural population lives in river basins that are classified as water

scarce. Climate changes resulting in higher temperatures and lower levels of

precipitation will drive further stress on the availability of water resources.

Resource availability constraints imply that increases in agricultural output

have to come from increases in productivity and more efficient use of the

natural resource base. This drives the demand for technological progress,

social innovation and new business models for agriculture and forestry.

Climate Change

Agriculture is one of the most significant sectors in terms of climate and

energy consumption. Globally, agriculture contributes 10%–12% of total

anthropogenic greenhouse gas (GHG) emissions and 56% of the non-CO2

GHG emissions, mainly due to nitrous oxide emissions from soils and

methane emissions from cattle.11 In addition to greenhouse gas emissions and

energy consumption, agriculture is the single largest consumer of water in

most countries and is accordingly a significant source of water pollution.

These negative externalities force agriculture to improve its production and

become cleaner by using fewer resources and causing fewer emissions.

Policy

The need for technological development in agriculture to achieve "sustainable

intensification" is on the agenda of governments and international bodies.

For example, in Europe, innovation is at the center of the EU2020 strategy.

New technologies and their adoption by EU farmers are key drivers in

11 Deborah Scharfy, Norman Boccali and Matthias Stucki. Clean Technologies in

Agriculture—How to Prioritise Measures? Sustainability 2017, 9, 1303.



maintaining European agriculture competitive in a global world. The EU

nearly doubled its efforts with an unprecedented budget of nearly 4 billion

euros allocated to Horizon 2020's Societal Challenge 2 “Food security,

sustainable agriculture and forestry, marine and maritime and inland water

research, and the bioeconomy [sic].”12

Agriculture & Forestry R&D

Sustainable Food Systems

A sustainable food system has certain characteristics which enhance

environmental, economic and social well-being: secure, reliable and resilient

to change, accessible and affordable, energy efficient, economic generator for

farmers, whole communities and regions and environmentally beneficial. The

clean technologies listed below are good examples of where we are currently

seeing innovation in improving sustainability of food systems and address

concerns related to food access, food security and availability.

Vertical Farming

Vertical farming involves growing crops in vertically stacked layers which

enables an increase in crop yield without increasing the land area for crops.

It is associated with city farming and urban farming and aims to bring food

production close to areas with high population concentrations. Vertical

farming also has the potential to reduce the environmental footprint of food

transport. Energy is the great limiting factor for this technology, as plants

need a lot of light for photosynthesis. AeroFarms is working on a technology

called aeroponics that can grow crops in vertical stacks of plant beds, without

soil, sunlight or water. The company raised $34 million in 2017 only and is

currently on the 10th or more iteration of production facilities. Other

businesses that are on a mission to build large scale vertical farms near

urban cities include Plenty, AeroFarms and Bowery.

Alternative Food Sources

Alternative protein sources include plant or insect-based alternatives, or

cultured products grown in a cell structure outside of the animal. These

alternatives aim to be indistinguishable from animal products and contribute

to the global food supply by ensuring sufficient access to safe and nutritious

food for a growing population.

Beyond Meat is an example of a company that processes plant proteins to

chemically recreate the structure of meat. Impossible Foods wants to

completely replace animals as a food production technology by 2035, cut

greenhouse gas emissions generated by the meat and dairy industry in its

12 https://ec.europa.eu/agriculture/research-innovation_en

https://ec.europa.eu/agriculture/research-innovation_en



current form and solve food security problems. Finless Foods is a developer of

cultured products that wants to produce sustainable seafood without having

to farm or harvest live fish from the oceans.

In the insect-based alternatives category, while insect use in the human food

chain is not expected to take a great leap forward, insect alternatives to

animal and fish proteins used in animal feed and other industries is

experiencing a period of growth. Tiny Farm is an example of an innovator in

this category that is developing technology for industrial-scale insect

farming. Other examples include AgriProtein Technologies, developer of an

alternative protein feed product from organic waste and Ynsect, a producer of

high-quality, premium natural ingredients for aquaculture and pet nutrition

from insects.

Aquaculture

Aquaculture is one of the fastest growing food-producing industries and

currently accounts for 50% of the world’s fish that is used for food.13 The

industry has been making a significant contribution to food security however

there are certain challenges that the sector is facing. Large scale aquaculture

can generate a lot of waste and fish farms can become breeding grounds for

diseases that infect wild fish nearby. Moreover, feeding the fish on the

marine farms has led to overfishing of species caught for feed. Finally,

overuse of antibiotics and lack of wastewater treatment are also concerns.

Across the world, companies are investing to incorporate existing clean

technologies into this sector to make fish farming totally clean and green:

Canada launched the Fisheries and Aquaculture Clean Technology Adoption

Program last year that will provide up to $20 million over four years to

fisheries and aquaculture businesses to improve their environmental

performance.

Blue Ridge Aquaculture in Martinsville, VA is an indoor fish farm that uses a

technology called Recirculating Aquaculture Systems (RAS) which operates

by filtering water from the fish (or shellfish) tanks so it can be reused within

the tank. This dramatically reduces the amount of water and space required

to intensively produce seafood products. The company is currently selling its

fish to a small segment of the market: people who want to buy their fish live

and are thus willing to pay more for them. The company cannot compete

directly with the imported fish of the same species in the stores due to high

operational costs.

13 http://www.fao.org/aquaculture/en/

http://www.fao.org/aquaculture/en/



The Institute of Marine and Environmental Technology in Baltimore is

working on a model for a self-contained fish farm on land that is both

technologically and economically viable.

Digital Agriculture

Digital agriculture is the use of new and advanced technologies, integrated

into one system, to enable farmers and other stakeholders within the

agriculture value chain to improve food production. The aim in digital

farming is to use all available information and expertise to enable the

automation of sustainable processes in agriculture. Technologies used

include: sensors, communication networks, Unmanned Aviation Systems

(UAS), Artificial Intelligence (AI), robotics and other advanced machinery

and often draws on the principles of the Internet of Things. Examples of

businesses pioneering these technologies are:

• Hortau and CropX—control water irrigation and optimized plant

growth technologies

• Beehive Technologies and Nileworks—drone technology

• Descartes Labs and Orbital Insight—satellite imagery technology

• Ceres Imaging and FarmLogs—insights for growers to improve crop

yields.

Biotechnology Applications

The application of biological sciences in agriculture has become increasingly

prominent in the past decade. Agricultural biotechnology is a field of

agricultural science which uses cell and molecular biology tools to improve

genetic makeup and agronomic management of crops and animals. It

provides farmers with tools that can make production cheaper and more

manageable.

Plant Genomics

The goals of agricultural plant science are to increase crop productivity and

the quality of agricultural products while protecting the environment. A

growing global population, changing climate and environmental pressure

generate the need to accelerate breeding novel crops with higher production,

stress-resistant traits and less pesticide usage.

CRISPR technologies have been applied for the first time in 2012 and are

new plant breeding methods that produce identical results to conventional

breeding methods but faster, with lower costs and higher predictability.14

Promising uses of CRISPR tools in agriculture have already been shown in

14 CRISPR is an abbreviation of Clustered Regularly Interspaced Short Palindromic

Repeats. CRISPR technology is a tool for editing genomes and allows researchers to

alter DNA sequences and modify gene function.



crop plants such as wheat, corn and tomatoes. CRISPR tools are currently

spurring innovative research in academia and in companies of all sizes. For

example, Benson Hill Biosystems has developed a new tool based on the

CRISPR technology that can increase the nutritional density of crops and

improve yield against stressors such as drought.

Sustainable Forestry

Sustainable forest management seeks to maintain and enhance forest

resources, promote the health and vitality of forest ecosystems, conserve

biodiversity and ensure forest land retains its natural relation to soil and

water systems. The ultimate goal is to retain the forest’s ability to support

ecological, socio-economic and cultural functions beyond timber harvesting.

Over the past three centuries, timber extraction has caused a net loss of 7 to

11 million square kilometers of forest land. An additional 2 million square

km have been converted to highly managed timber and palm oil plantations.

Clean technologies represent new opportunities to reduce humans’ impact on

native forests and improve the sustainability of silviculture stands.

Underwater Logging

Triton Logging has developed a pair of devices which enable the collection of

submerged forests from dam reservoirs. The company has operations in

Canada, the U.S. and Ghana and a prospective project in Brazil. It is the only

company to offer a mechanized means of collecting submerged timber at this

scale. For this reason, it holds considerable competitive advantage and with

60,000 reservoirs globally it addresses a large market.


Agriculture & Forestry Industry Overview in Washington State

Agriculture is a key component of Washington state’s economy and adds

around $51 billion a year—or 12 percent—to the state’s GDP. There are over

300 crops grown in Washington state and the state ranks 14 th nationally in

overall commodity production.

In 2016, Washington state was home to 35,700 farm operations and 14.7

million acres of agriculture land. Major crops by value in 2016 include apples

($2.4 billion), potatoes ($813.3 million), wheat ($656.8 million), sweet

cherries ($491.1 million), hay ($479.0 million) and wine grapes ($313.2

million).15

15 U.S. Department of Agriculture, 2017 Washington Annual Statistical Bulletin,

National Agricultural Statistics Service Northwest Regional Field Office:

https://www.nass.usda.gov/Statistics_by_State/Washington/Publications/Annual_Sta

tistical_Bulletin/2017/WA_annual%20bulletin%202017.pdf (accessed May 25, 2018).

https://www.nass.usda.gov/Statistics_by_State/Washington/Publications/Annual_Statistical_Bulletin/2017/WA_annual%20bulletin%202017.pdf

https://www.nass.usda.gov/Statistics_by_State/Washington/Publications/Annual_Statistical_Bulletin/2017/WA_annual%20bulletin%202017.pdf



Leading Companies and Associations

The following presents a summary of leading companies and associations by

leading areas of innovation in agriculture and forestry.

Vertical Farming

Farmbox Greens is a vertical farm located in Seattle, Washington, that

cultivates microgreens for restaurants, farmers markets, grocery stores and

online grocery services. The company states that it uses energy-efficient

LEDs and 90 percent less water than traditional farming. By growing its

products within the urban city of Seattle, Farmbox Greens creates zero

agricultural runoff and minimal distance for food transportation.16

Plenty is an indoor vertical farm headquartered in South San Francisco,

California. In November 2017, the company announced that it would open a

second farm in Kent, Washington, as it expands globally. The new 100,000-

square-foot facility, which will grow 4.5 million pounds of greens annually,

will be Plenty’s first full-scale farm using the innovative technology of indoor

farming.17

Aquaculture

Taylor Shellfish Farms is large producer of aquaculture shellfish based in

Shelton, Washington. Relying on clean water and a healthy ecosystem, the

company has had to address ocean acidification due to increased carbon

dioxide in the atmosphere.18

Other Sustainable Agriculture

Beta Hatch produces animal feed and fertilizer from insects. Located in

Seattle, Washington, the farm is an indoor, climate-controlled and zero-waste

system. Insects are grown and harvested to create products that can be used

in gardens, backyard chicken coops and commercial chicken farms.19

Cedar Grove is an environmental compost company with locations across

Western Washington. Using innovative technologies like the monitoring

program OdoWatch, Cedar Grove recycles more than 350,000 tons of food

16 Farmbox Greens, About: http://www.farmboxgreens.com/ (accessed May 31, 2018). 17 Plenty, “Plenty To Open Indoor Farm in Seattle to Deliver Ultra-Fresh Produce,”

Company News, November 3, 2017: https://www.plenty.ag/company-news/plenty-to-

open-indoor-farm-in-seattle-to-deliver-ultra-fresh-produce/. 18 Taylor Shellfish Farms, Sustainability, 2018:

https://taylorshellfishfarms.com/about-us/sustainability. 19 Beta Hatch, About, 2016: http://betahatch.com/about/ (Accessed May 31, 2018).

http://www.farmboxgreens.com/

https://www.plenty.ag/company-news/plenty-to-open-indoor-farm-in-seattle-to-deliver-ultra-fresh-produce/

https://www.plenty.ag/company-news/plenty-to-open-indoor-farm-in-seattle-to-deliver-ultra-fresh-produce/

https://taylorshellfishfarms.com/about-us/sustainability

http://betahatch.com/about/



waste annually into renewable energy and soil for home garden and

commercial agriculture use.20

Vander Haak Dairy is a dairy farm in Lynden, Washington, with 500 cows

producing 14 million pounds of milk annually. In 2004, Vander Haak became

the first to fully install and use an anaerobic digestor, which converts

manure and food waste from nearby food processors into energy and other

saleable products. The digestor helps recover 600,000 pounds of ammonium

sulfate fertilizer and 3 million pounds of phosphorus-rich solids to be used in

crop production. It also generates an alternative to peat moss and adds to the

grid enough sustainable electricity to power 400 homes annually. Reducing

carbon emissions by 17,000 pounds per year, Vander Haak’s digestor

demonstrates a way for dairy to help create a more sustainable future, rather

than be part of the problem.21

Washington Forest Protection Association (WFPA) is a trade group

representing private forest landowners in Washington state. Its members are

large and small companies with about 4 million acres of combined forestland.

WFPA states a commitment to sustainable forest management and wood

production. The group promotes the use of biofuels created from wood

products, wildlife protection, responsible forest cycling and combating

climate change.22


The Center for International Trade in Forest Products (CINTRAFOR)

is one of three applied research centers within the University of

Washington’s School of Environmental & Forest Sciences. With private,

federal and state funding, CINTRAFOR is the only international forest

products trade Center of Excellence in the United States. Part of its mission

is to collect information on and address environmental problems that impede

forest product exports. The center also trains professionals by funding

graduate-level research.23

The Center for Sustaining Agriculture and Natural Resources at

Washington State University leads research and initiatives in sustainable

20 Cedar Grove, About Us, 2018: https://cedar-grove.com/about-us (accessed May 31,

2018). 21 U.S. Dairy Sustainability Awards, Vander Haak Dairy: Winner, 2014:

https://www.usdairy.com/~/media/usd/public/vander-haak-casestudy-sust4012-r2.pdf

(accessed May 31, 2018). 22 Washington Forest Protection Association, Our Forest Today: Climate Change:

http://www.wfpa.org/our-forest-today/climate-change/ (accessed May 31, 2018). 23 Center for International Trade in Forest Products, Our Mission:

http://www.cintrafor.org/aboutUs/mission.shtml (accessed May 31, 2018).

https://cedar-grove.com/about-us

https://www.usdairy.com/~/media/usd/public/vander-haak-casestudy-sust4012-r2.pdf

http://www.wfpa.org/our-forest-today/climate-change/

http://www.cintrafor.org/aboutUs/mission.shtml



agriculture, food systems and natural resources. Its projects include energy

and nutrient recovery from organic wastes, technologies to reduce pesticide

use and the development of sustainable farming systems. Through its Food

Systems Program, the center works with communities across Washington

state to foster viable, sustainable farm businesses.24

WSU Extension is comprised of 39 locations across the state where

Washington State University offers courses to the public. Many of these

courses are intended for farmers and ranchers, and they teach professionals

about both more efficient, economical methods and sustainable practices.25

By spreading university curricula, WSU Extension offers new and innovative

ideas to agriculturists across Washington state.

Workforce and Educational Institutions

The SARE Professional Development Program at Washington State

University states that its purpose is to help agricultural professionals

increase their ability to respond to the needs of farmers, ranchers and the

public regarding sustainable agriculture concepts and systems. Since 1988,

SARE has awarded over $27.4 million in grants to fund educational programs

for farmers and other professionals. These programs involve teaching about

natural resource conservation, water use reduction and other sustainable

practices.26

Tilth Alliance is a nonprofit organization whose goal is to educate people to

safeguard natural resources and build a sustainable food system. The group

offers financial assistance to improve the sustainability and economic

viability of farm businesses in Washington state, and it gives training to

thousands of farmers and others annually on current research and

conservation practices.27

24 Washington State University Center for Sustainable Agriculture and Natural

Resources, Program Areas, 2018: http://csanr.wsu.edu/program-areas/ (accessed May

31, 2018). 25 Washington State University, WSU Extension: About, 2018:

https://extension.wsu.edu/about-extension/. 26 Washington State University Center for Sustainable Agriculture and Natural

Resources, SARE Professional Development Program, 2018:

http://csanr.wsu.edu/csanr-grants/sare-pdp/. 27 Tilth Alliance, About Us: Farmer Training & Resources:

http://www.seattletilth.org/about/farmer-training-and-resources (accessed May 31,

2018).

http://csanr.wsu.edu/program-areas/

https://extension.wsu.edu/about-extension/

http://csanr.wsu.edu/csanr-grants/sare-pdp/

http://www.seattletilth.org/about/farmer-training-and-resources



Allied Industries and Technology Capabilities

Biotechnology

Some of Washington state’s biotech companies find natural partners in the

agricultural and forest industries. For example, Seattle-based Arzeda applies

its protein design technology to enable new crop traits, improving crop yields

and improving farming efficiency.28 By creating technologies that make

farming less water-dependent or wasteful, firms like Arzeda are the

innovators behind progress in agriculture.

Plant and Livestock Genomics

Genomics companies conduct research focusing on the structure, mapping

and editing of genes. Changing the characteristics of organisms can make

farming more economical and more environmentally-friendly. An example of

this is the work of Phytelligence, a company founded in 2012 by Washington

State University Horticulture Professor Amit Dhingra. Phytelligence has

completed genome sequences for apples, pears, cherries, almonds and

peaches that need less water than their counterparts producing the same

volume. The company also offers citrus growers an engineered rootstock that

is resistant to citrus greening disease, which in 2017 devastated growers in

Florida, California and Texas and led to great waste of potential food.29


Conservation Reserve Enhancement Program. The Farm Service

Agency and the Washington State Conservation Commission, which manages

the states’ 45 conservation districts, compensates farmers for allowing

salmon conservation projects in streamside areas of their property. The

program offers rental income for 10 to 15 years, as well as a signing bonus,

and all costs are covered or reimbursed through state and federal funds.30

Irrigation Efficiencies Grants Program. The Washington State

Conservation Commission offers to pay farming landowners up to 85 percent

of total costs to implement efficient irrigation and conservation methods.

This program is voluntary, and it intends to protect fish in critical basins

28 Arzeda, Our Work, 2018: https://arzeda.com/what-we-do/our-work/. 29 Dan Wheat, “Seattle firm helps fight citrus greening disease,” Capital Press,

November 29, 2017: http://www.capitalpress.com/Orchards/20171129/seattle-firm-

helps-fight-citrus-greening-disease (accessed June 7, 2018). 30 Washington State Conservation Commission, “Conservation Reserve

Enhancement Program (CREP),” 2016: http://scc.wa.gov/wp-

content/uploads/2016/10/CREP_Landowners-General_041515.pdf (accessed June 4,

2018).

https://arzeda.com/what-we-do/our-work/

http://www.capitalpress.com/Orchards/20171129/seattle-firm-helps-fight-citrus-greening-disease

http://www.capitalpress.com/Orchards/20171129/seattle-firm-helps-fight-citrus-greening-disease

http://scc.wa.gov/wp-content/uploads/2016/10/CREP_Landowners-General_041515.pdf

http://scc.wa.gov/wp-content/uploads/2016/10/CREP_Landowners-General_041515.pdf



while supporting irrigated agriculture. Each contract can bill up to

$400,000.31

Shellfish Initiative Phase II. Led by former Governor Christine Gregoire,

the 2011 Washington Shellfish Initiative was a partnership between state

and federal government, tribes and the shellfish aquaculture industry.

Current Governor Jay Inslee has made it one of his priorities to renew the

Initiative’s commitments by preventing and fixing pollution problems, reopen

shellfish beds, confront ocean acidification and improve the permitting

process to increase sustainable aquaculture.32

Funding for Ocean Acidification Research. In 2013, the Washington

State Legislature approved allocating $3.3 million to invest in scientific

research on ocean acidification, which plagues the aquaculture industry.33

Underwater Logging. The Washington State Supreme Court decided in the

1990s that underwater logs at the bottom of Lake Washington were state

property and could not be taken by logging companies. More recently,

Washington's Department of Natural Resources and the Grays Harbor

County prosecutor have weighed charges of timber piracy against underwater

loggers like Jimmy Smith, who was featured on the national TV show “Ax

Men.”

(Aquaculture) Atlantic Salmon Farming Ban. In March 2018, the State

Legislature passes a bill to ban Atlantic salmon and other non-native fish

farming by 2025. Governor Jay Inslee signed it into law thereafter.

BU ILD ING MATERIALS


In this analysis, green economy building materials refers specifically to

recycled products (such as recycled particle board), mass timber and its

subset, cross-laminated timber (CLT), though there are other mass timber

products with similar benefits to CLT, such as laminated strand lumber and

laminated veneer lumber. Cross-laminated timber is a leading new

31 Washington State Conservation Commission, “Irrigation Efficiencies Grants

Program,” January 2018: http://scc.wa.gov/wp-

content/uploads/2018/01/IEP_0118_FINAL.pdf (accessed June 4, 2018). 32 Washington Governor Jay Inslee, Gov. Inslee’s Shellfish Initiative:

https://www.governor.wa.gov/issues/issues/energy-environment/shellfish (accessed

May 31, 2018). 33 Juliet Eilperin, “Washington state confronts ocean acidification,” The Seattle

Times, November 27, 2012: https://www.washingtonpost.com/national/health-

science/washington-state-confronts-ocean-acidification/2012/11/27/c2270ba0-38bc-

11e2-8a97-363b0f9a0ab3_story.html (accessed May 31, 2018).

http://scc.wa.gov/wp-content/uploads/2018/01/IEP_0118_FINAL.pdf

http://scc.wa.gov/wp-content/uploads/2018/01/IEP_0118_FINAL.pdf

https://www.governor.wa.gov/issues/issues/energy-environment/shellfish

https://www.washingtonpost.com/national/health-science/washington-state-confronts-ocean-acidification/2012/11/27/c2270ba0-38bc-11e2-8a97-363b0f9a0ab3_story.html





technology within the mass timber group with significant growth prospects

both in the U.S. and abroad. Mass timber refers to “a category of fram ing

styles typically characterized by the use of large solid wood panels for wall,

floor and roof construction.”34

CLT involves a process whereby multiple (usually three to seven) layers of

boards are stacked crosswise and glued together, typically with an orthogonal

orientation. CLT has the potential to significantly alter the trajectory of the

forestry and wood products industry in Washington, which after being the

nation’s largest leader in the timber industry has gone through a multi-

decade decline imperiling local economies in Grays Harbor, the Olympic

Peninsula and other traditionally timber and wood products-reliant

communities across the state. There are specific benefits associated with

CLT.

Mass timber and CLT present multiple advantages over traditional building

materials; these include:

• Smaller carbon footprint, owing to CLT’s use of a renewable and

sustainable resource, compared to concrete, steel and other

materials.35 A 2009 study by researchers at the University of

Canterbury in New Zealand found that mid-rise steel or concrete

buildings can produce up to 1,500 tons of carbon dioxide. This

compares against an equivalent-timber building that can sequester

610 tons of net CO2.36 According to the University of Washington,

“using more CLT expends less energy than producing and transporting

traditional building materials, such as concrete and steel.”37 CLT

34 American Wood Council, “Mass Timber in North America: Expanding the

Possibilities for Wood Building Design,” page 2, 2017:

http://www.awc.org/pdf/education/des/ReThinkMag-DES610A-

MassTimberinNorthAmerica-161031.pdf (accessed at April 27, 2018). 35 A report by the Canadian Wood Council in 2005 found steel and concrete designs

“embody 26% and 57% more energy relative to wood design, emit 34% and 81% more

greenhouse gases, release 24% and 47% more pollutants into the air, discharge 400%

and 350% more water pollution, product 8% and 23% more solid waste, and use 11%

and 81% more resources (from a weighted resource use perspective.” Canadian Wood

Council, “Embodied Energy of WOOD Products,” Quick Facts—Sustainable Building

Series, 2004: http://www.cwc.ca/NR/rdonlyres/FD8693D4-C735-44CA-

959C178D43FE092A/0/Quickfacts_Sustainable_Building_ Series_05.pdf (accessed

April 27, 2018). 36 March, Mary Tyler, “How CLT could change the US building landscape,”

Construction Dive, May 8, 2017: https://www.constructiondive.com/news/how-clt-

could-change-the-us-building-landscape/441702/ (accessed April 11, 2018). 37 Duff, Deanna, “Cross-laminated timber could ‘forge new links between lands and

people’,” Columns Magazine, December 28, 2017:

https://magazine.washington.edu/feature/cross-laminated-timber/ (accessed April 10,

2018).



http://www.cwc.ca/NR/rdonlyres/FD8693D4-C735-44CA-959C178D43FE092A/0/Quickfacts_Sustainable_Building_%20Series_05.pdf

http://www.cwc.ca/NR/rdonlyres/FD8693D4-C735-44CA-959C178D43FE092A/0/Quickfacts_Sustainable_Building_%20Series_05.pdf

https://www.constructiondive.com/news/how-clt-could-change-the-us-building-landscape/441702/

https://www.constructiondive.com/news/how-clt-could-change-the-us-building-landscape/441702/

https://magazine.washington.edu/feature/cross-laminated-timber/



emits less carbon in its manufacture and helps sequester carbon

during use. Tearing down and disposing of CLT structures results in

an estimated 50-80% less global warming potential, as compared with

traditional materials.38

• Construction efficiencies. Mass timber construction projects

require fewer on-site workers than similarly sized projects using

traditional materials, and they can be completed more quickly.

• Fire safety. Mass timber often provides better fire protection and

seismic resistance. Under fire conditions, mass timber materials char

and heat slowly, whereas steel heats up rapidly and fails.39

• Structural and weight. As a significantly lighter material compared

steel, concrete and masonry, mass timber can be a solution for sites

with poor soil.40

• Forestry management. Mass timber provides an economic incentive

and best use of forest thinning and associated waste byproduct.

• Carbon sequestration. As a wood product, mass timber can help

address anthropogenic climate change through natural sequestration

and storage of carbon.41

• Utilizing forest waste product. Panel producers can use small trees

cleared through forestry thinning operations, thus yielding healthier

forests. CLT repurposes waste wood material (such as pest-damaged

and/or less desirable lumber grades) while maintaining or exceeding

tensile strength and not compromising panels overall integrity.

• Exploiting economic value from waste. CLT provides additional

economic opportunity for landowners who would otherwise discard or

burn waste forestry material from the thinning process.

• Project savings. CLT, as a lighter material, can lead to significant

cost savings on foundation work.

Leading Trends

Three important factors will support future demand for advanced,

environmentally-friendly building materials:

• Continued population growth and urbanization, supporting overall

demand for new residential and commercial building stock;

38 Ibid, page 4. 39 Busta, Hallie, “Mass timber 101: Understanding the emerging building type,”

Constructive Dive, May 24, 2017: https://www.constructiondive.com/news/mass-

timber-101-understanding-the-emerging-building-type/443476/ (accessed April 27,

2018). 40 American Wood Council, 2017, page 5. 41 According to one study, “A typical North American timber-frame home captures

about 28 tonnes [sic] of carbon dioxide, the equivalent of seven years of driving a

mid-size car or about 12,500 liters of gasoline.” Green, Michael, The Case of Tall

Wood Buildings: Second Edition, Blurb Inc., January 29, 2018.

https://www.constructiondive.com/news/mass-timber-101-understanding-the-emerging-building-type/443476/

https://www.constructiondive.com/news/mass-timber-101-understanding-the-emerging-building-type/443476/



• More recently, a reconfiguring of the global recycling system that will

create new stresses and opportunities for repurposing solid waste for

building materials; and

• Growing demands among businesses and consumers for technologies

and materials that are less impactful on the environment compared

with traditional building materials such as steel and concrete, based

on a life-cycle assessment.

Population and Growth in the Built Environment

Between 1990 and 2015, the world urban population increased at a rate of

more than 2% per year, reaching more than 4 billion people, or 54% of the

global population.42 According to UN projections, this share is expected to

increase to 66% by 2050, adding another 2.5 billion people to urban

populations.43

Continued urbanization will create significant demand for new housing stock

across the world. Mass timber, and cross-laminated timber (CLT) specifically,

offers opportunities to both address these construction needs and through a

process and source material that is sustainable and yields a much lower

carbon footprint compared with traditional building products.

Recycling Trends and Opportunities

In the nearer term, recent events in China will potentially upend the

established recycling system, creating needed demand for new recycling

capacity in the U.S. and opportunities for recycled building materials.

China’s National Sword policy has drastically lowered the level of acceptable

contamination in recycled products allowed for processing in China,

effectively banning many types of solid waste. According to a recent report,

China consumes 55 percent of the world’s scrap paper and is a major

destination for other recyclables.44 If U.S. recycling centers are unable to find

alternative destinations for further processing, many of these solid waste

materials, such as plastics, glass and paper, many ultimately end up in

landfills.

42 United Nations, Urbanization and Development: Emerging Futures, pp.7-8, 2016:

https://unhabitat.org/books/world-cities-report/ (accessed April 27, 2018). 43 United Nations, World Urbanization Prospects, 2014:

http://www.un.org/en/development/desa/news/population/world-urbanization-

prospects-2014.html. 44 Margolis, Jason, “Mountains of U.S. recycling pile up as China restricts imports,”

PRI, January 1, 2018: https://www.pri.org/stories/2018-01-01/mountains-us-

recycling-pile-china-restricts-imports (accessed May 9, 2018).

https://unhabitat.org/books/world-cities-report/

http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html

http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html

https://www.pri.org/stories/2018-01-01/mountains-us-recycling-pile-china-restricts-imports

https://www.pri.org/stories/2018-01-01/mountains-us-recycling-pile-china-restricts-imports



Sources of Demand

Globally

Mass timber and CLT construction remain a relatively small global share of

total new building stock, though there have been multiple showcase projects

in recent years and interest is growing. These include an 18-story dormitory

at the University of British Columbia, the 24-story HoHo Tower under

construction in Vienna which will be 76% wood, the 35-story Baobab building

in Paris (in works) and a proposal for the timber-framed 85-story Oakwood

Tower in London.45

U.S.

Within the U.S., mass timber and CLT similarly remain an early stage

material. However, according to a 2016 report by Spiritos Properties, “CLT

will be the dominant structural system in the U.S. for four- and 12-story

buildings in the next five years to 10 years.”46

An industry assessment from 2015 projected a market potential in the U.S. of

$4 billion, but according to the Softwood Lumber Board, an industry group,

77 percent of the square footage built each year in the U.S. is less than 12

stories high and could be made with mass timber. According to their research

“[of] nonresidential buildings under 12 stories, 90 percent today are made of

steel and concrete.”47

However, there are at least two potential challenges to future adoption of

CLT as a building material. Firstly, the costs of CLT remain high relative to

traditional building costs. Across the U.S. and its Western states, single

family construction remains the predominant type of construction project

(Exhibits 12 and 13). In regions such as Seattle, where the real estate

market is highly competitive, and demand is much higher than existing

supply, resulting in a “seller’s market,” single family homebuilders have less

incentive to invest in more environmentally friendly building materials such

as CLT over existing materials. The homes that are built using CLT tend to

be of custom design and more expensive.

CLT also presents risks for the developer, many of whom, according to

interviews, tend to be more conservative with respect to building materials.

45 Duff, 2017. 46 March, Mary Tyler, 2017. 47 Watts, Andrea and Leslie Helm, “Cross-laminated Timber: The Future of

Building?” Seattle Magazine, June 2015:

http://www.seattlebusinessmag.com/article/cross-laminated-timber-future-building

(accessed on April 17, 2018).

http://www.seattlebusinessmag.com/article/cross-laminated-timber-future-building



So long as demand is high, builders will continue to work with the material

with which they are most comfortable.

Exhibit 12. Average Monthly New Housing Unit Construction, U.S., 1990-

2018

Source: U.S. Census Bureau, 2018; Community Attributes Inc., 2018.

*2018 monthly average based on first three months only.

Note: single-family statistics include fully detached, semidetached (semi attached, side-by-

side), row houses and townhouses. In the case of attached units, each must be separated from

the adjacent unit by a ground-to-roof wall in order to be classified as a single-family structure.

Also, these units must not share heating/air-conditioning systems or utilities. Units built one

on top of another and those built side-by-side that do not have a ground-to-roof wall and/or

have common facilities (i.e., attic, basement, heating plant, plumbing, etc.) are not included in

the single-family statistics.



Exhibit 13. Average Monthly New Housing Unit Construction, Western U.S.,

1990-2018

Source: U.S. Census Bureau, 2018; Community Attributes Inc., 2018.

*2018 monthly average based on first three months only.

Lastly, CLT-based construction requires a set of skills unique from standard

construction processes. The major components of a construction project are

fabricated at a mill and assembled at the project site. This process results in

the need for less workers on-site, and of more specific, technical skills, such

as of crane operators.

Challenges

Mass Timber and CLT

• U.S. building codes currently allow for buildings up to only five stories

to be built with CLT, though larger buildings can be (and have been)

built through special exceptions in the code by jurisdiction.

• CLT materials, in order to represent a true reduction in

environmental impacts based on a life-cycle assessment, need to use

raw wood procured through sustainable building practices. There are

concerns that, as CLT becomes a more popular building material,

forest owners will opt to grow hemlock, poppy and other faster-

growing species that are invasive and may adversely impact eco-

systems in the Pacific Northwest.48

• Despite the environmental benefits of CLT and mass timber, current

economic conditions inhibit widespread use of these materials. The

majority of new residential construction remains predominately

48 Interview with Patti Southard, GreenTools Program Manager, King County. May

8, 2018.



single-family, and according to stakeholder interviews, most

homebuilders are hesitant to embrace CLT, especially in the current

real estate market where demand exceeds supply.49

Recycle Building Materials

• The Pacific Northwest does not yet have robust capacity to reclaim

recycled wood products and will need to build out this capacity to

allow for scalable recycled building materials.

• There is currently no standardized content formula for particle board,

such as gypsum. Often times, particle board based on recycled

materials vary widely in content composition, and often do not meet

LEED and other green building certification standards.


Building Materials Industry Overview in Washington State

• Washington state has long been an important center for wood

products, though in recent years the industry has experienced a

decline in activity (Exhibit 14).

• The current model for wood building materials is for logs to be

harvested in the Pacific Northwest and sent to China, Korea or Japan

(or elsewhere) for processing. Due to environmental regulations, labor

and production costs and other factors, many sawmills in the Pacific

Northwest have closed, especially during the last recession. Rural

communities have been hit hard by these closures.

• Forests need to be thinned periodically to improve wildlife habitat,

enable faster tree growth and pre-emptively remove smaller brush and

trees that could serve as kindling for forest fires, which make wildfires

larger and more intense. Most of this excess waste is piled and burnt

with no economic value extracted from it.

49 Interview with Leah Missik, Built Green Program Manager, Master Builders

Association for King and Snohomish Counties, April 17, 2018.



Exhibit 14. Washington State Forestry & Logging and Wood Product

Manufacturing Employment, 1998-2016

Source: U.S. Bureau of Economic Analysis, 2018.


Mass Timber and CLT in Washington State

Two companies directly engaged in CLT and mass timber are Vaagen

Timbers and the construction company Katerra. Their recent moves toward

greater use of these materials signal growing optimism in the green building

materials industry.

Vaagen Timbers was formed in 2017 when it announced its plans to

construct a facility in Colville, Washington, that will produce exclusively CLT

and glue-laminated beams.50 Lumber for the new company will be supplied by

its partner Vaagen Brothers Lumber, which was founded in the early 1950s

and has since grown to process logs from private, state, federal and tribal

lands. Vaagen Bros. operates four sawmills in the Pacific Northwest,

including a flagship facility in Colville.51 Vaagen Bros. promotes sustainable

forestry by harvesting smaller logs and committing to optimal resource

utilization, which uses as much of harvested logs as possible. Bark, chipped

50 Timber Processing, Vaagen Timbers Gets Into CLT, April 7, 2017:

http://www.timberprocessing.com/vaagen-timbers-gets-clt/ (accessed May 31, 2018). 51 Vaagen, Capabilities, June 5, 2017:

http://www.vaagenbros.com/services/capabilities/.

http://www.timberprocessing.com/vaagen-timbers-gets-clt/

http://www.vaagenbros.com/services/capabilities/



logs and other fiber from Vaagen logs are processed in the paper, landscaping

and electricity industries.52

Katerra is an innovative construction company that employs more than

1,500 employees across four countries.53 Investing heavily in research and

development, Katerra has partnered with the Washington State University

Composite Materials & Engineering Center to create and test a catalog of

mass timber products for residential and commercial building projects.54 In

September 2017, the company announced its plans to open a new factory in

Spokane Valley, Washington, for the production of CLT and other mass

timber materials. One of Katerra’s first local CLT projects will be the 2019

construction of the Spokane Hospitality Center for Ronald McDonald House

and Kootenai Health.55

Forterra is a nonprofit conservation group based in Seattle, Washington. It

aims to provide sustainable building opportunities for rural Washington

towns and it promotes maintaining urban green spaces through official

partnerships with the cities of Everett, Kent, Kirkland, Redmond, Seattle

and Tacoma.56 The group leads a coalition whose intent is to accelerate a

market for the production and use of CLT and other mass timber products.

The statewide coalition of private companies, government agencies,

conservation groups and universities has received a $250,000 grant from the

U.S. Forest Service.57

Weyerhaeuser is one of the world’s largest private owners of timberlands

and a major manufacturer of wood products. Based in Washington state since

its founding in 1900, the company is now headquartered in Seattle and

employs approximately 9,300 people.58 Weyerhaeuser promotes mass timber

52 Vaagen, Sustainability, 2018: http://www.vaagenbros.com/sustainability/. 53 Katerra, About Us, 2018: https://www.katerra.com/en/who-we-are/about-us.html. 54 Katerra, Mass Timber, 2018: https://www.katerra.com/en/what-we-

do/products/mass-timber-products.html. 55 Katerra, “Katerra Announces New Mass Timber Facility, Press Releases,

September 26, 2017: https://katerra.com/en/who-is-talking/press/2017/press-

releases/CLT-Factory.html. 56 Forterra, Working Partners: https://forterra.org/working-partners (accessed May

29, 2018). 57 CLT Summit Brochure, Highlights of Coalition Progress, pp. 8, 2016:

https://forterra.org/wp-content/uploads/2015/10/2016-CLT-Summit-brochure-web.pdf. 58 Weyerhaeuser Company, Form 10-K 2017, retrieved from SEC EDGAR:

http://edgar.secdatabase.com/1798/10653518000013/filing-main.htm (accessed May

29, 2018).

http://www.vaagenbros.com/sustainability/

https://www.katerra.com/en/who-we-are/about-us.html

https://www.katerra.com/en/what-we-do/products/mass-timber-products.html

https://www.katerra.com/en/what-we-do/products/mass-timber-products.html

https://katerra.com/en/who-is-talking/press/2017/press-releases/CLT-Factory.html

https://katerra.com/en/who-is-talking/press/2017/press-releases/CLT-Factory.html

https://forterra.org/working-partners

https://forterra.org/wp-content/uploads/2015/10/2016-CLT-Summit-brochure-web.pdf

http://edgar.secdatabase.com/1798/10653518000013/filing-main.htm



construction and sustainability through its divisions in product innovation

and government relations.59

DCI Engineers is a structural and civil engineering firm based in Seattle.

Its engineers provide design and support services to construction projects

primarily in Washington state.60 DCI is committed to sustainability and

efficiency, and the firm promotes CLT as an advantageous material with

great potential in the future of building.61

The Softwood Lumber Board is an industry-funded initiative determined

to increase demand for softwood lumber products in outdoor, residential and

non-residential construction. The Board funds multiple groups that research,

educate, and promote the lumber industry and innovative products like CLT.

These include the American Wood Council, Think Wood, WoodWorks and the

residential promotion campaign Wood Naturally.62

The American Wood Council is a large and influential trade association

for the wood products industry, which it estimates has approximately

400,000 employees. Its members comprise of 86 percent of the structural

wood products industry, and its staff develop engineering data, technology

and safety standards for wood products. The Council states that it is

committed to innovation and sustainability.63

Recycled Materials

KlipTech is the company behind the creation of durable countertops

constructed from recycled paper. The surface material is called EcoTop, and

it is comprised of a blend of post-consumer recycled fiber, renewable bamboo

fiber and a water-based binding agent. Paper surfaces now constitute an

entire product category in the countertop industry. In Washington state,

Kliptech has a factory in Burlington, a manufacturing facility in Tacoma and

corporate offices in Puyallup. The company is currently developing renewable

resin systems and plans to keep expanding.64

59 Weyerhaeuser, Sustainability: Public Policy:

https://www.weyerhaeuser.com/sustainability/governance/public-policy/ (accessed

May 29, 2018). 60 DCI Engineers, About, 2018: http://www.dci-engineers.com/about. 61 DCI Engineers, “Cross-Laminated Timber,” News & Press, May 20, 2016:

http://www.dci-engineers.com/news/cross-laminated-timber (accessed May 29, 2018). 62 Softwood Lumber Board, About SLB: https://www.softwoodlumberboard.org/about-

slb/ (accessed May 29, 2018). 63 American Wood Council, About Us, 64 Kliptech, About Us, 2016: http://www.kliptech.com/about-us/ (accessed May 29,

2018).

https://www.weyerhaeuser.com/sustainability/governance/public-policy/

http://www.dci-engineers.com/about

http://www.dci-engineers.com/news/cross-laminated-timber

https://www.softwoodlumberboard.org/about-slb/

https://www.softwoodlumberboard.org/about-slb/

http://www.kliptech.com/about-us/



Bedrock Industries manufactures Blazestone Tile, a 100 percent recycled

glass product handmade in Seattle, Washington. Stating that it specializes in

trash beautification, the company has recycled hundreds of tons of material

that would otherwise have gone to landfills. Its products include glass tiles,

glass décor and tumbled glass. The company also operates several community

programs, such as bottle drives, classes and tours in conjunction with

elementary schoolchildren.65

PaperStone is a solid building material comprised of 50- to 100-percent

recycled paper and petroleum-free resins. Produced at the Paneltech

Manufacturing Plant in Hoquiam, Washington, PaperStone countertops,

partitions, paneling and furniture have been installed in homes, restaurants,

laboratories, office buildings, universities and museums. The product allows

builders to receive points in the LEED green building program.66

Daltile is a leading manufacturer and distributor of ceramic tile and natural

stone. The company states that its environmentally-friendly manufacturing

process includes recycled scrap tile and minimizing waste. Its range of

products is broad, and the company also offers nonmanufactured stone.67

Daltile operates 11 manufacturing facilities in North America and employs

more than 8,500 people, including in Washington state. It is a subsidiary of

Mohawk Industries.68

Richlite is company that manufactures a durable material made from

approximately 65 percent recycled paper and 35 percent phenolic resin. The

company is headquartered in Tacoma, Washington, and names its product

lines after Washington mountains and other landmarks. Its products are

used by the aerospace, marine, action sports and architecture industries.69

Richlite states that it has made and exceeded goals to reduce CO2

emissions.70

Recycled Granite Seattle diverts stone from the construction industry and

recycles it into split stone tiles, pavers, fire pits and other manufactured

products. The company states that its materials keep millions of pounds of

waste out of landfills and are not processed with any chemicals. Recycled

65 Bedrock Industries, About Bedrock, 2018: https://bedrockindustries.com/about-us/. 66 PaperStone, Frequently Asked Questions about PaperStone, 2016:

https://paperstoneproducts.net/wordpress/faq/ (accessed May 30, 2018). 67 Daltile, FAQs About Our Products, 2018: https://www.daltile.com/inspiration-and-

tips/tips-and-resources/tips-and-resources/tile-faqs (accessed May 30, 2018). 68 Daltile, A History of Excellence, 2018: https://www.daltile.com/why-

daltile/company/about-us/company-information (accessed May 30, 2018). 69 Richlite, Richlite is Paper, 2018: https://www.richlite.com/what-is-richlite/#history. 70 Richlite, Sustainability, 2018: https://www.richlite.com/sustainability/.

https://bedrockindustries.com/about-us/

https://paperstoneproducts.net/wordpress/faq/

https://www.daltile.com/inspiration-and-tips/tips-and-resources/tips-and-resources/tile-faqs

https://www.daltile.com/inspiration-and-tips/tips-and-resources/tips-and-resources/tile-faqs

https://www.daltile.com/why-daltile/company/about-us/company-information

https://www.daltile.com/why-daltile/company/about-us/company-information

https://www.richlite.com/what-is-richlite/#history

https://www.richlite.com/sustainability/



Granite Seattle products earn LEED points for new projects and

renovations.71


Washington State University researchers received a $1.5 million National

Science Foundation grant in 2017 to develop guidelines for sustainable

building in earthquake-prone areas. In collaboration with scholars at other

universities, the Forest Products Laboratory and American Wood Council,

these researchers test CLT structures and assess their sustainable impact.

The Brelsford WSU Visitor Center is one of only a few buildings in the Pacific

Northwest that currently include CLT materials.72

The University of Washington, under the leadership of scholars like

Indroneil Ganguly, also fosters research on building with CLT materials.

Ganguly is an assistant professor at the UW School of Environmental and

Forest Sciences and associate director of the school’s Center for International

Trade in Forest Products.73 One of his studies published in 2017 forecasts

that overall demand for CLT panels in the Pacific Northwest will increase to

6 to 12 million cubic feet annually by 2035.74

Think Wood is an industry group that promotes the economic,

environmental and societal benefits of using softwood lumber in building

construction. The group highlights economic and scientific research related to

building with CLT materials, and it coordinates with WoodWorks to provide

assistance to wood building construction projects. Think Wood is funded by

the Softwood Lumber Board.75

The Forest Products Laboratory is the national research laboratory of the

United States Forest Service. Employing 60 scientists in Madison, Wisconsin,

the Forest Products Laboratory has partnerships across the country,

including in Washington state.76 It has published research highlighting the

71 Recycled Granite Seattle, Recycled Granite Seattle Product FAQ’s:

https://www.recycledgraniteseattle.com/product-faq-s-installation (accessed May 30,

2018). 72 Erik Gomez, “Innovation,” Building Sustainability in Seismic Areas, pp. 14-15,

2017: https://vcea.wsu.edu/documents/2017/09/innovation-2017.pdf/. 73 University of Washington College of the Environment, Faculty: Indroneil Ganguly,

2018: https://environment.uw.edu/faculty/indroneil-ganguly/. 74 Indroneil Ganguly et al., “Forecasting the demand for Cross Laminated Timber

(CLT) in the Pacific Northwest,” CINTRAFOR News, 2017:

http://www.cintrafor.org/publications/newsletter/C4news2017summer.pdf . 75 Think Wood, About, 2018: https://www.thinkwood.com/about. 76 USDA Forest Products Laboratory, About Us:

https://www.fpl.fs.fed.us/about/index.shtml.

https://www.recycledgraniteseattle.com/product-faq-s-installation

https://vcea.wsu.edu/documents/2017/09/innovation-2017.pdf/

https://environment.uw.edu/faculty/indroneil-ganguly/

http://www.cintrafor.org/publications/newsletter/C4news2017summer.pdf

https://www.thinkwood.com/about

https://www.fpl.fs.fed.us/about/index.shtml



structural and environmental benefits of building with CLT materials, and it

has encouraged coordination among timber engineering players.77


WoodWorks provides free technical support, training and resources related

to the code-compliant design of non-residential and multi-family wood

buildings. Its funding partners are the Softwood Lumber Board, the U.S.

Forest Service and the British Columbia agency Forestry Innovation

Investment. WoodWorks is also partnered with many private companies,

such as Weyerhaeuser, to assist with construction projects.78 The group offers

training and guidance related to construction with CLT materials.79

Washington State University, through the Voiland College of Engineering

and Architecture, offers an array of undergraduate and graduate degrees

related to innovating building materials. These include degrees in the areas

of architecture, construction, civil engineering, environmental engineering

and materials engineering.80 The institution states that most students

studying these subjects are sought by employers even before graduation.

The University of Washington offers relevant degrees in architecture,

built environments, construction, civil engineering, environmental

engineering and forest sciences.81 Its College of Engineering has researched

mass timber construction, and it has collaborated with other universities,

WoodWorks and the National Science Foundation to test CLT structures and

educate students on their benefits.82

77 USDA Forest Products Laboratory, “CLT Handbook: Cross-Laminated Timber,”

Publications, 2013:

https://www.fpl.fs.fed.us/products/publications/specific_pub.php?posting_id=68020&

header_id=p (accessed May 29, 2018). 78 WoodWorks, About WoodWorks, 2018: http://www.woodworks.org/about-

woodworks/partners-sponsor/ (accessed May 29, 2018). 79 WoodWorks, Introducing Cross Laminated Timber, 2017:

http://www.woodworks.org/wp-content/uploads/LANDREMAN-Introducing-CLT.pdf. 80 Washington State University Voiland College of Engineering and Architecture,

Schools and Departments: https://vcea.wsu.edu/departments/. 81 University of Washington, Degree Programs:

https://www.washington.edu/students/gencat/degree_programsTOC.html (accessed

May 29, 2018). 82 University of Washington Civil & Environmental Engineering, Creating

Seismically Resilient, Sustainable Buildings, August 4, 2017:

https://www.ce.washington.edu/news/article/2018-02-14/creating-seismically-

resilient-sustainable-buildings (accessed May 29, 2018).

https://www.fpl.fs.fed.us/products/publications/specific_pub.php?posting_id=68020&header_id=p

https://www.fpl.fs.fed.us/products/publications/specific_pub.php?posting_id=68020&header_id=p

http://www.woodworks.org/about-woodworks/partners-sponsor/

http://www.woodworks.org/about-woodworks/partners-sponsor/

http://www.woodworks.org/wp-content/uploads/LANDREMAN-Introducing-CLT.pdf

https://vcea.wsu.edu/departments/

https://www.washington.edu/students/gencat/degree_programsTOC.html

https://www.ce.washington.edu/news/article/2018-02-14/creating-seismically-resilient-sustainable-buildings

https://www.ce.washington.edu/news/article/2018-02-14/creating-seismically-resilient-sustainable-buildings




New Mass Timber Construction Law. In March 2018, the Washington

State Legislature passed Senate Bill 5450, which requires the Washington

State Building Code Council to update its codes to account for mass timber

products, including CLT. The new law will make it easier for developers to

use sustainable building materials by adding more certainty to the

permitting process.83

Demonstration Projects. In 2017, the Washington State Legislature

approved allocating $5.5 million to the Department of Enterprise Services for

the construction of 20 kindergarten through third-grade classrooms using

CLT materials. These demonstration projects will take place in five school

districts across Washington state, specifically in Mount Vernon, Seattle,

Sequim, Wapato, and Toppenish school districts.84

Production Technical Assistance. In the 2016 Supplemental Capital

Budget, the Washington State Legislature approved allocating $50,000 to the

Department of Commerce to assist prospective CLT manufacturers in

evaluating the potential market and determine necessary investments to

manufacture CLT.85

Federal Support. According to Forterra, The Timber Innovation Act of 2016

was introduced in the 114th Congress to “accelerate the use of wood in

buildings, especially tall wood buildings” over 85 feet in height by providing

additional resources for research, technical assistance and a tall wood

building competition.86 The bill was reintroduced in 2017, and as of May 29,

2018, it had been read twice and referred to the Committee on Agriculture,

Nutrition, and Forestry.87

83 Washington Forest Protection Association, State Lawmakers Boost Mass Timber

and Rural Communities, March 16, 2018: http://www.wfpa.org/news-

resources/news/state-lawmakers-boost-mass-timber-rural-communities/ (accessed

May 29, 2018). 84 Washington State Department of Enterprise Services, News & Media Center,

“First Washington State cross-laminated timber modular classrooms complete,” May

12, 2017: https://des.wa.gov/about/news-media-center/first-washington-state-cross-

laminated-timber-modular-classrooms-complete (accessed May 29, 2018). 85 CLT Summit Brochure, Highlights of Coalition Progress, pp. 8, 2016:

https://forterra.org/wp-content/uploads/2015/10/2016-CLT-Summit-brochure-web.pdf. 86 CLT Summit Brochure, 2016. 87 Congress.gov, “Summary,” S.538 - Timber Innovation Act of 2017, March 7, 2017:

https://www.congress.gov/bill/115th-congress/senate-bill/538 (accessed May 29,

2018).

http://www.wfpa.org/news-resources/news/state-lawmakers-boost-mass-timber-rural-communities/

http://www.wfpa.org/news-resources/news/state-lawmakers-boost-mass-timber-rural-communities/

https://des.wa.gov/about/news-media-center/first-washington-state-cross-laminated-timber-modular-classrooms-complete

https://des.wa.gov/about/news-media-center/first-washington-state-cross-laminated-timber-modular-classrooms-complete

https://forterra.org/wp-content/uploads/2015/10/2016-CLT-Summit-brochure-web.pdf

https://www.congress.gov/bill/115th-congress/senate-bill/538



WATER


Water access, supply and management are and will continue to be critical

issues across the globe. Population growth combined with continued

industrialization, environmental degradation and the effects of climate

change will spur demand for new methods, technologies and solutions for

water resource management.

In this analysis, the water industry covers businesses in water engineering,

operations, water and wastewater plant construction, equipment supplies

and specialist water treatment chemicals to residential, commercial and

industrial sectors of the economy. According to the water technology industry

incubator PureBlue: 88

The Global Water Crisis can be turned into an economic development

opportunity by creating a water innovation ecosystem that increases the

efficiency, resilience and adaptive capacity of Washington’s water

infrastructure. This can be realized by connecting and aligning players

toward shared strategies, goals and outcomes.

In this report, four key themes are identified:

• Potable water. Growing stress on available water for human

consumption due to population growth, competing uses and climate

change.

• Water treatment. Improved methods for treating and reusing water,

helping to address competing uses for water among residents,

businesses and ecosystems.

• Irrigation. New methods and technologies for more efficiently using

water, such as precision-based sprinkler systems and drip irrigation.

• Surface water. Including the growing need to manage stormwater

runoff.

Macro Trends—Population Growth, Urbanization, and Global

Food Supply

Several key global trends transcend all or near all focus areas with respect to

water. These include population growth, concomitant urbanization, climate

change-based disruptions to water sources and over use and depletion of

aquifers.

88 Egils Milbergs, PureBlue, “Modernizing the Water Infrastructure,” testimony to

the Washington State Senate Economic Development and International Trade

Committee, January 23, 2018.



Population Growth and Urbanization

According to the United Nations Food and Agriculture Organization (FAO),

the current food system is on track, in aggregate, to sufficiently supply the

food required of the global population by 2050. However, the FAO predicts

that “many regions will face substantial water scarcity [resulting in]

increasing competition, which will constrain agricultural production and

affect the incomes and livelihood opportunities of many residents in rural

and urban areas.”89 The same report finds that despite important gains in the

global food production system, agriculture will continue to be the largest user

of water globally, “accounting for more than half of withdrawals from rivers,

lakes and aquifers, and will need to become increasingly efficient.”

World population growth will be a significant stress on the global water

supplies without concomitant improvements in water resource management.

The global population increased at an annual rate of 1.3% between 1990 to

2017 (Exhibit 15). According to the United Nations Department of Economic

and Social Affairs, between 2011 and 2050, the world population is expected

to increase 33% from 7.0 billion to 9.3 billion. Meanwhile, food demand—a

major source of water demand—will increase by 60%.90

Exhibit 15. Population Growth, World, 1990-205091

Source: United Nations Department of Economic and Social Affairs, 2017; Community


A significant share of this growth will be in urban areas. Between 1990 and

2016, the world’s urban population increased 78% from 2.26 billion to 4.03

89 Food and Agriculture Organization of the United Nations, Towards a Water and

Food Secure Future: Critical Perspectives for Policy-makers, Rome, 2015, p.vii. 90 The United Nations World Water Development Report 2016, The United Nations,

2016. 91 Population after 2015 is forecasted based on medium fertility variant.



billion (Exhibit 16). According to the United Nations, the continuous robust

growth of urbanization will result in 6.3 billion urban residents by 2050. This

growth in urban populations will require larger and more robust systems for

managing solid waste, potable water distribution and stormwater

management systems.

The Word Bank projects that the urban population in Africa will quadruple

by 2037, resulting in a large-scale increase in wastewater production.

However, half of the urban infrastructure needed by African cities by 2035

has yet to be built. This scenario may offer opportunities for innovative water

management solutions, such as integrated urban water management.92

Exhibit 16. Urban Population, World, 1990-2016

Source: The International Bank for Reconstruction and Development, 2018; Community


Diminishing Water Supplies

As regions of the world become more populous and industrialized, water

supplies are becoming increasingly stressed. An estimated one in three

people lives in a country that faces a nationwide water crisis (which leaves

out many people struggling with water supply in countries like the USA and

Australia, who do not face nationwide crisis). Less than 5% of people in the

world live in countries with more water today than 20 years ago (all in

countries in Eastern Europe plus Germany).93

92 The United Nations World Water Development Report 2017, The United Nations,

2017. 93 Lana Mazahreh, “Solutions to the World’s Water Crisis Can Be Found in the

Driest Places,” The Boston Consulting Group, January 10, 2018:

https://www.bcg.com/publications/2018/solutions-world-water-crisis-found-driest-

places.aspx.

https://www.bcg.com/publications/2018/solutions-world-water-crisis-found-driest-places.aspx

https://www.bcg.com/publications/2018/solutions-world-water-crisis-found-driest-places.aspx



• Water use efficiencies. According to the United Nations,94 water-use

efficiency improvements are expected to address a projected 40% gap

between water demand and supply by 2030.

• Agriculture water demand. Globally, roughly 70% of freshwater

withdrawals came from agricultural water consumption and drainage.

According to the Food and Agriculture Organization of the United

Nations, 90% of total agricultural water consumption came from the

majority of least developed countries. By 2050, the global agricultural

water consumption is anticipated an 20% growth without efficiency

improvements.

• Municipal water systems, providing driving water, sanitation,

hygiene and other water-related household needs, account for roughly

11% total freshwater withdrawals (Exhibit 17).

Exhibit 17. Global Freshwater Withdrawals, Consumption and Wastewater

Production by Major Water Use, circa 2010

Source: The United Nations World Water Development Report 2017, Community Attributes

Inc., 2018.

• Industrialization and water demand. Industrialization creates a

strong need for more robust and scalable water treatment technologies

to treat industrial waste water. According to the Organization for

Economic Co-operation and Development, water consumption by the

manufacturing sector is projected to increase 400% by 2050.95


2016. 95 Ibid.



Potable Water

Providing access to clean drinking water is one of the world’s leading

challenges, with strong connections to economic development, political rights

and public health. According to the United Nations Millennium Development

Goals, 2.6 billion people gained access to improved drinking water between

1990 and 2015.96 However, hundreds of millions of people remain without a

clean water source close to their homes. In the United States, 1.6 million

people reported in 2014 that they lacked access to either a toilet, a tub, a

shower or running water.97

Several global organizations and charities are devoted to bringing these

numbers down, particularly in sub-Saharan Africa, Southeast Asia and

Southern Asia. PotaVida, based in Seattle, Washington, collects field data

from water-unstable regions and creates technical solutions in the form of

solar purifiers.98 Splash, a nonprofit also located in Seattle, serves children

living in urban poverty across Asia and Africa with water filtration systems

and durable drinking stations. To date, Splash serves 403,365 children every

day through international safe drinking water projects.99

Private technology companies in Washington state are also involved in the

global effort to improve drinking water access. In 2015, billionaire

philanthropist and Washington resident Bill Gates famously profiled a

machine capable of treating human waste and producing from it clean

drinking water. Janicki Bioenergy, part of the Skagit County engineering

firm Janicki Industries, is the company responsible for creating this

technology. With funding from the Bill & Melinda Gates Foundation, Janicki

brought a treatment machine to Dakar, Senegal, in 2015 to pilot its potential

in bringing drinking water to those who need it most.100

Whether it be fostered by venture philanthropy, like that of the Bill &

Melinda Gates Foundation, or economic prospects, innovation in potable

water technology is strong in Washington state yet has room for growth.

96 United Nations, Millennium Development Goals and Beyond 2015:

http://www.un.org/millenniumgoals/environ.shtml. 97 Erin Riggs, “Clean Water Access Challenges in the United State,” UNC

Environmental Finance Blog, February 13, 2018:

http://efc.web.unc.edu/2018/02/13/clean-water-access-challenges-in-the-united-

states/. 98 PotaVida, What We Do: https://www.potavida.com/what-we-do/. 99 Splash, 2018: http://splash.org/ (accessed August 22, 2018). 100 Bill Gates, “This Ingenious Machine Turns Feces Into Drinking Water,” Gates

Notes, January 5, 2015: https://www.gatesnotes.com/Development/Omniprocessor-

From-Poop-to-Potable.

http://www.un.org/millenniumgoals/environ.shtml

http://efc.web.unc.edu/2018/02/13/clean-water-access-challenges-in-the-united-states/

http://efc.web.unc.edu/2018/02/13/clean-water-access-challenges-in-the-united-states/

https://www.potavida.com/what-we-do/

http://splash.org/

https://www.gatesnotes.com/Development/Omniprocessor-From-Poop-to-Potable

https://www.gatesnotes.com/Development/Omniprocessor-From-Poop-to-Potable



Water Treatment

Wastewater treatment refers to the process of removing contaminants and

undesirable particulates from domestic, industrial, and polluted waters in

order to safely return to the environment or for drinking, irrigation,

industrial, and other uses.

Today, wastewater is considered a raw product rather than a waste product.

Examples of clean technologies and/or sustainable practices in waste water

treatment include the following:

• Bioreactors. A device containing bacteria and microorganisms is

placed within a water body. It is usually equipped with separators

linked to sequential tanks and a mechanical separator aimed at

accelerating the splitting of liquid water from biosolids.

• Biofiltration. In biofiltration, some selected species of bacteria and

microorganisms are grown on a biofilter to form a biofilm. It is

commonly used in the application for removal of heavy metals from

industrial wastewaters.

• Bioremediation. A process that employs living microorganisms to

remove and neutralize pollutants and hazardous species from

contaminated wastewater sites to yield less toxic or nontoxic

materials.

• Electrowinning. In electrowinning, a current is passed between two

electrodes immersed in an electrolyte solution, from which heavy

metals including copper, nickel, silver, gold, cadmium, bismuth, cobalt

and others can be recovered from wastewaters.

• Electrocoagulation. Similar to electrowinning, the

electrocoagulation also uses an electric current to remove

contaminants from wastewaters.

Global Market for Waste Water Treatment

According to an industry report by Hexa research,101 the global water and

wastewater treatment market size was valued at $478.2 billion in 2016 and

is expected to maintain strong growth over the next few years. This is due to

population growth, the effects of climate change and increasing industrial

activities. Specifically, the municipal water & wastewater treatment market

is expected an 3.9% annual growth rate through 2025.

101 Water and Wastewater Treatment Market Size and Forecast, By Type (Chemicals,

Treatment Technologies, Equipment & Services), By End Use (Municipal, Industrial)

And Trend Analysis, 2014 – 2025, Hexa Research, 2017.



There are three types of markets generally considered in water and

wastewater treatment market: 1) Chemicals; 2) Treatment Technologies; and

3) Equipment & Services. According to Hexa:102

• Chemical-based water & wastewater treatment was valued at $14.9

billion in 2016. Due to the stress on recycling and reuse of water, the

use of corrosion & scale inhibitors chemicals is anticipated to grow

substantially.

• The market for related technologies is projected to grow 4.2% per year

through 2025.

• Equipment & services constitutes 85.8% of the overall market.

• Industrial wastewater is projected to double by 2025, support a 50%

increase in industrial waste water treatment.103

• According to the 2017 United Nations World Water Development

Report, roughly only one tenth of all irrigated land across the globe is

irrigated with treated wastewater, the remainder using unsafe

untreated irrigated water.

Key Foreign Markets

• Middle East region has been investing heavily in water treatment

technology, such as Multi-Stage Flash (MSF), Reverse Osmosis and

Multi Effect Distillation (MED) used in desalination process. The

market in the region is expected to grow 4.5% annually, driven by

increased disposable income and infrastructure investments. In 2016,

Saudi Arabia’s municipal wastewater treatment market reached $4.69

billion.104

• The Asia-Pacific market accounted for 43.9% of the waste water

treatment market in 2016.105

• According to the Organization for Economic Co-operation and

Development, in Europe and North America, there are significant

challenges to meet infrastructure needs as the water supply and

102 Water and Wastewater Treatment Market Size and Forecast, By Type (Chemicals,


And Trend Analysis, 2014 – 2025, Hexa Research, 2017. 103 The United Nations World Water Development Report 2017, The United Nations,

2017. 104 Water and Wastewater Treatment Market Size and Forecast, By Type (Chemicals,


And Trend Analysis, 2014 – 2025, Hexa Research, 2017. 105 Water and Wastewater Treatment Market Size And Forecast, By Type (Chemicals,


And Trend Analysis, 2014 – 2025, Hexa Research, 2017.



sanitation tariffs are too low when compared the costs of operation

and maintenance of the services.106

• According to the United Nations 2017 World Water Development

Report, the increase in investment needed for wastewater treatment

in Latin America is 64%, AND $33 billion in the Caribbean by 2030.

Domestic Market

In 2010, investment in wastewater treatment in the U.S. reached $88.5

billion.107 According to the American Society of Civil Engineers, by 2040 only

$25.2 billion out of a projected $138.1 billion in needed wastewater treatment

invests will be made, based on current spending levels (Exhibit 18).

Exhibit 18. Expected Wastewater Treatment Needs and Investments in the

U.S., 2011, 2020 and 2040, (Billions 2018 dollars)

Sources: American Society of Civil Engineers, 2011; Community Attributes Inc., 2018.

• According to the U.S. Environmental Protection Agency, the estimated

investment needed to meet the country’s wastewater infrastructure

needs is now $271 billion, 52% of which is for combined sewer

overflows correction, the rehabilitation and replacement of existing

conveyance systems and the installation of new sewer collection

systems.

Irrigation

Irrigation is old technology with new, innovative improvements emerging

today. Conventional irrigation and sprinklers consume a great deal of

freshwater, dwarfing other water uses and it can result in water logging of


2017. 107 The Failure to Act: The Economic Impact of Current Investment Trends in Water

and Waste Treatment Infrastructure, American Society of Civil Engineers, 2011.



crops and an unsustainable buildup of salts in irrigated land. In 2010, 64

percent of all water withdrawn in Washington State was used for agriculture

irrigation.108 Making significant improvements in water conservation, then,

requires a focus on agricultural uses.

Fortunately, there exists a close relationship in irrigation between the

economic goals of farmers and environmental conservation. Farmers benefit

from making their water use more efficient and less costly, and the

environment benefits from sustainable practices that recognize water as a

limited resource. Companies and research centers worldwide, including in

Washington state, show optimism in innovating irrigation techniques. A few

major trends are emerging.

Drip irrigation is the practice of applying small amounts of water uniformly

across an agricultural area, close to the roots of crops. By delivering water

directly to their crops’ roots, farmers can reduce runoff and evaporation. This

saves them money and requires less water in total. Drip irrigation systems

involve many pieces of equipment with potential for advancing technology,

including valves, filters, emitters, pipes and drip tubes.109

Solar-powered irrigation is another modern watering technique, in which

pumps used for the transport of water are equipped with solar cells. The

energy generated by these solar cells powers the pump, driving the water’s

passage from its source through tubing and across the irrigated land. With

only a direct orientation toward the sun, this technology can irrigate land

without draining the power grid or requiring other electrical lines around

irrigated crops.110

Techniques like drip and solar-powered irrigation are being used in areas

ranging from Walla Walla, Washington,111 to rural parts of India.112 More

research and innovation will make them more cost- and resource-efficient.

108 Washington State Department of Ecology, 100 Years of Water Law, 2010:

https://ecology.wa.gov/About-us/Get-to-know-us/Our-Programs/Water-

Resources/Learn-the-history-of-water-law. 109 United States Geological Survey, Irrigation: Drip/Microirrigation:

https://water.usgs.gov/edu/irdrip.html. 110 United States Department of Agriculture, Design of Small Photovoltaic (PV)

Solar-Powered Water Pump Systems, October 2010:

https://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/nrcs142p2_046471.pdf . 111 USDA, Micro-irrigation System Conserves Water and Expenses for Vegetable

Farm,

https://www.nrcs.usda.gov/wps/portal/nrcs/detail/or/home/?cid=nrcs142p2_046086. 112 Ministry of New and Renewable Energy, “Solar Scheme,” Government of India,

February 16, 2018: https://mnre.gov.in/scheme/Solar-Off-Grid (accessed June 8,

2018).

https://ecology.wa.gov/About-us/Get-to-know-us/Our-Programs/Water-Resources/Learn-the-history-of-water-law

https://ecology.wa.gov/About-us/Get-to-know-us/Our-Programs/Water-Resources/Learn-the-history-of-water-law

https://water.usgs.gov/edu/irdrip.html

https://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/nrcs142p2_046471.pdf

https://www.nrcs.usda.gov/wps/portal/nrcs/detail/or/home/?cid=nrcs142p2_046086

https://mnre.gov.in/scheme/Solar-Off-Grid



Surface Water

Stormwater management is a significant challenge, both domestically and

internationally, particularly among cities with older conveyance systems.

Global Market

In China’s large cities, urban flooding due to groundwater over-extraction

and waterway degradation has proven to be a major problem. In response,

the government has unveiled a new ‘sponge city initiative’ to develop and

install permeable surfaces to absorb rainwater. Its goals are lofty: for 80

percent of urban areas to absorb and reuse 70 percent of rainwater.

According to CNN, the initiative faces two challenges.113

First, local governments in China lack expertise in effectively coordinating

and integrating the complex activities required for the ‘sponge cities.’ Second,

they are constrained financially. Should China loosen its restrictions and

incentivize more private investment from overseas, companies and

researchers in states like Washington could become key players in this

market, like Herrera Environmental Consultants, Inc. who led a planning

effort in the city of Zhenjiang.114

‘Sponge cities’ and green infrastructure projects are taking root in countries

other than China as well. For example, Berlin, Germany, is also making its

paved streets more absorbent,115 and Philadelphia is now in the seventh year

of a 25-year project designed to reduce its sewer outflows by 85 percent.

Projects like these involve outfitting streets and sidewalks with runoff-

capturing materials, planting urban gardens and modernizing sewer

systems.116

113 Asit K Biswas and Kris Hartley, “China’s ‘sponge cities’ aim to re -use 70% of

rainwater,” CNN, September 17, 2017: https://www.cnn.com/2017/09/17/asia/china-

sponge-cities/index.html. 114 Herrera, Zhenjiang Sponge City Infrastructure Planning:

https://www.herrerainc.com/projects/zhenjiang-sponge-city-infrastructure-planning/

(accessed June 12, 2018). 115 Gloria Kurnik, “Berlin is Becoming a Sponge City,” Bloomberg, August 18, 2017:

https://www.bloomberg.com/news/articles/2017-08-18/berlin-is-becoming-a-sponge-

city. 116 Bruce Stutz, “With a Green Makeover, Philadelphia Is Tackling Its Stormwater

Problem,” Yale Environment 360, March 29, 2018:

https://e360.yale.edu/features/with-a-green-makeover-philadelphia-tackles-its-

stormwater-problem.

https://www.cnn.com/2017/09/17/asia/china-sponge-cities/index.html

https://www.cnn.com/2017/09/17/asia/china-sponge-cities/index.html

https://www.herrerainc.com/projects/zhenjiang-sponge-city-infrastructure-planning/

https://www.bloomberg.com/news/articles/2017-08-18/berlin-is-becoming-a-sponge-city

https://www.bloomberg.com/news/articles/2017-08-18/berlin-is-becoming-a-sponge-city

https://e360.yale.edu/features/with-a-green-makeover-philadelphia-tackles-its-stormwater-problem

https://e360.yale.edu/features/with-a-green-makeover-philadelphia-tackles-its-stormwater-problem



Domestic and Local Markets

• In Washington state, pollution from stormwater sources accounts for

one-third of all polluted water.117

• During rainstorms, twenty-three types of pesticides are found in Puget

Sound streams, five of which have concentrations higher than

acceptable levels for aquatic life.

• Since 1980, more than 45,000 of Puget Sound's 140,000 acres of

commercial, certified shellfish growing areas closed or partially closed

for harvesting due to the water pollution. Meanwhile, more than half

of all salmon and steelhead stocks in Puget Sound are considered

unhealthy to eat.

• Sixty-five percent of estuary miles in Washington state have

temperatures exceeding state water quality standards; 57 percent of

stream miles in the Puget Sound lowlands exceed state water quality

standards for fecal coliform bacteria.

• Every one-inch of rain or snow melt will cause 748 gallons of

stormwater runoff from a 1,200 square-foot roof and 27,000 gallons of

stormwater runoff from a one-acre parking lot (Exhibit 19).118

Exhibit 19. Annual Stormwater Runoff Volume, Washington State

Source: Washington State Department of Ecology, 2017; Community Attributes Inc., 2018.

Green Infrastructure Solutions and Leading Technologies

Clean technology in stormwater management has primarily focused on

filtration, capture and reuse of stormwater to maintain or restore natural

hydrologies. Examples include:

• Rain gardens (i.e., bio-retention).

• Stormwater filtration systems that remove pollutants.

• Stormwater detention and retention basins—the collection of

stormwater and slowly releasing it at a controlled rate so that

downstream areas are not flooded or eroded. Though this method is

117 https://www.kingcounty.gov/services/environment/water-and-

land/stormwater/introduction/stormwater-runoff.aspx 118 Environment Education Guide: Protecting Washington’s Waters from Stormwater

Pollution, Washington State Department of Ecology, 2007.

Potential Runoff 1,200-square ft.roof 1-acre of pavement

1 inch of rain or snow melt 748 gallons 27,150 gallons

Average Annual Precipitation

Seattle (37 in./yr) 27,700 gallons 1 mill ions gallons

Spokane (17 in./yr) 12,700 gallons 0.5 mill ion gallons

Olympia (51 in./yr) 38,100 gallons 1.4 mill ion gallons

https://www.kingcounty.gov/services/environment/water-and-land/stormwater/introduction/stormwater-runoff.aspx

https://www.kingcounty.gov/services/environment/water-and-land/stormwater/introduction/stormwater-runoff.aspx



effective for flood control, it has significant limitations for water

quality treatment and for preventing impacts to stream systems.

• Street sweeping—though only 16 percent of Seattle’s surface area is

streets, these surfaces contribute more than 40 percent of the

pollution load in stormwater runoff. Street sweeping helps remove

pollutants from streets and keep them out of storm drains.119

• Permeable pavement—a specific type of pavement with a high porosity

that allows rainwater to pass through it into the ground below. It

helps reduce runoff and returns water to underground aquifers. It also

traps suspended solids and pollutants, keeping them from polluting

the water stream.

Water Conservation and Infrastructure

The existing U.S. water infrastructure system is old, inefficient and prone to

breakage and leakages. According to the National Infrastructure Advisory

Council (NIAC), the current aging water infrastructure accounts for roughly

240,000 water main breaks and between 23,000 and 75,000 sanitary sewage

overflows per year.120 The NIAC has emphasized the gap between existing

funding and the investment needed to restore water infrastructure to

maintain current service levels ranges from between $400 billion to nearly $1

trillion in U.S.121

The Congressional Budget Office estimated that between 2008 and 2014, the

cost to maintain, operate and build water and wastewater infrastructure was

more than $100 billion per year.122 Integrated water systems (interplay

between drinking water for consumption and wastewater to water bodies)

has been widely accepted as an efficient, more affordable, resilient and

sustainable water use strategies. Utilities investing in water reuse and

recycling must integrate their water and wastewater infrastructure

operations.

According to the Washington State Office of Financial Management, over a

20-year period beginning in 2017, the total cost to expand and replace

existing water infrastructure will sum to nearly $33 billion (Exhibit 20).123

119http://www.seattle.gov/util/EnvironmentConservation/Projects/SewageOverflowPre

vention/StreetSweeping/index.htm. 120 National Infrastructure Advisory Council, “Water Sector Resilience

Final Report and Recommendations”, Department of Homeland Security, 2016. 121 A Northwest Vision for 2040 Water Infrastructure, Center for Sustainable

Infrastructure at The Evergreen State College, 2017. 122Public Spending on Transportation and Water Infrastructure, 1956 to 2014,

Congressional Budget Office, 2015. 123 Washington State Office of Financial Management, Economic Analysis of Water

Infrastructure and Fisheries Habitat Restoration Needs , 2017, Olympia, WA:

http://www.seattle.gov/util/EnvironmentConservation/Projects/SewageOverflowPrevention/StreetSweeping/index.htm

http://www.seattle.gov/util/EnvironmentConservation/Projects/SewageOverflowPrevention/StreetSweeping/index.htm



Exhibit 20. Washington State Water Infrastructure Investment Needs

Source: Washington State Office of Financial Management, Economic Analysis of Water

Infrastructure and Fisheries Habitat Restoration Needs, 2017, Olympia, WA.

Based on stakeholder interviews, one possible opportunity is with respect to

bid data and smart metering of water utility systems. Metering and data

collection can allow for identification of leakage points and precise areas of

replacement (as compared with an entire segment of pipes), providing

savings for utilities and allowing for improved management and

conservation.

Trends in Water Technology and Water Economics

• Costs of water efficiency improvements. According to a United

Nations report, the cost of water-use efficiency improvements is

projected to cost $50-60 billion per year over the next 20 years,124 half

of which is expected to be comprised by private sector investments.

• Gains from water productivity. According to the same report,

improvements in water productivity in irrigation will generate $115

billion (in $2011) in savings per year by 2030. Meanwhile, efficient

water technologies, which may benefit over 100 million farmers in

poverty, could generate a total net direct benefit of between $100

billion and $200 billion.

Economic Development Opportunities from Water Industries

and Sustainable Practices

• Multiplier impacts. Each job created in local water and wastewater

industries supports 3.68 secondary (indirect and induced) jobs

nationally.125 The 2016 United Nations World Water Development

Report found that every $1 million investments in sustainable water

https://www.ofm.wa.gov/sites/default/files/public/legacy/reports/WaterInfrastructure

Report.pdf (accessed May 10, 2018). 124 The United Nations World Water Development Report 2016, The United Nations,

2016. 125 U.S. Bureau of Economic Analysis, United States Conference of Mayors, 2018.

Water supply Stormwater Flooding Fish & habitat Multiple Total

Yakima $1,733 $8 $156 $502 $2,399

Washington Coastal $3 $19 $1,181 $598 $1,802

Upper Columbia $35 $8 $844 $886

Puget Sound $2,315 $18,266 $22 $1,278 $1,873 $23,754

Middle Columbia $766 $5 $771

Lower Columbia $179 $7 $1,252 $1,439

Lower Snake $13 $201 $214

Kootenai-Pend Oreille-Spokane $11 $11

Multi-Basin $299 $361 $35 $754 $1,449

Total State $5,330 $18,694 $1,395 $4,675 $2,632 $32,765

RegionInvestment Type

https://www.ofm.wa.gov/sites/default/files/public/legacy/reports/WaterInfrastructureReport.pdf

https://www.ofm.wa.gov/sites/default/files/public/legacy/reports/WaterInfrastructureReport.pdf



practices are estimated to generate 10 to 15 direct, indirect and

induced jobs.

• Losses from inadequate water. According to the World Health

Organization, the challenges of inadequate water, sanitation and

hygiene (WASH) is associated with global economic losses of $260

billion every year. Though these challenges are costly to address, the

estimated rates of return on water supply and sanitation investments

could reach $3-34 for every $1 of investment.

• Investment and job creation. According to the Environmental

Protection Agency, the level of investment required for stormwater

management and water quality prevention in the U.S. is up to $188.4

billion. Such investment could generate $265.6 billion in economic

activity, and 2.5 million jobs through direct, indirect and induced

effect.126

• Water industry employment. An analysis from UNESCO-UNEVOC

found that 80% of water industry employment comes from water

supply and wastewater facility operations.127

• Skilled labor shortages. According to the World Health

Organization, more than 80% of 67 countries that reported on systems

operation and maintenance has a shortage of skilled labor and

technicians in needs in rural sanitation.



• Nelsen Irrigation designs, manufactures and sells irrigation

products for agricultural and industrial applications. Based in Walla

Walla, Washington, Nelson has more than 70 active patents on

innovative sprinklers, nozzles and irrigation control devices.128 The

company’s stated purpose is to satisfy the increasing demand for food

and fiber while simultaneously protecting the world’s natural

resources.129

• Herrera Environmental Consultants, Inc. is an employee-owned

consulting firm focused in water, restoration, and sustainable

development.130 The firm’s 100 staff members design projects in many

areas of water resource development, including stormwater

126 Green for All, Water Works: Rebuilding Infrastructure, Creating Jobs, Greening

the Environment, 2011. 127 The United Nations World Water Development Report 2016, The United Nations,

2016. 128 Nelson Irrigation, Technology at Work: Awards & Patents, 2018:

http://www.nelsonirrigation.com/company/awards-patents/. 129 Nelson Irrigation, Converging Technologies: Future, 2018:

http://www.nelsonirrigation.com/company/future/. 130 Herrera, About Us: https://www.herrerainc.com/about/.

http://www.nelsonirrigation.com/company/awards-patents/

http://www.nelsonirrigation.com/company/future/

https://www.herrerainc.com/about/



engineering, water quality analysis, flood management and hydrologic

modeling.131 Herrera collaborates with both the public sector and

private business.

• HDR is an architectural, engineering and consulting firm with nearly

10,000 employees and more than 225 offices around the world, 8 of

which are in Washington state.132 In 2015, the company was awarded

a work order with King County, Washington, for the research of

sustainable products and materials used for wastewater facilities.

Another example of HDR’s local work was sustainably upgrading

primary sedimentation basins of the Budd Inlet water treatment plant

in Olympia, Washington.133

• Parametrix is an employee-owned engineering firm based in

Washington state that provides multidisciplinary services in

transportation, environmental compliance and water resources.134 The

firm completes projects for private companies, public agencies and

tribal governments. With water, Parametrix designs systems for

power stations, flood control, stormwater, wastewater and drinking

water management.135 For example, the company restored Donkey

Creek and its estuarine habitat for Gig Harbor, Washington, in

2014.136

• Janicki Industries is an engineering and manufacturing firm that

produces parts and tooling for a broad set of industries. Located in

Sedro-Woolley, Washington, the company has multiple facilities in

Skagit County.137 One of its products, the Janicki Omni Processor, is a

waste-to-energy system that converts wet waste to electric power and

reusable water. Technologies like this showcase Janicki’s focus on

creating cost-efficient and sustainable products.138

• The Washington State Ground Water Association is a technical

and professional group leading many companies with activities related

to groundwater. The group’s stated goals are to protect access to

131 Herrera, Services: https://www.herrerainc.com/services/. 132 HDR, History, 2018: https://www.hdrinc.com/about-us/history. 133 HDR, Sustainability + Corporate Responsibility, 2016 (pp. 5 and 90):

https://www.hdrinc.com/sites/default/files/2017-05/2016-hdr-sustainability-corp-

responsibility.pdf. 134 Parametrix, Who We Are: About Parametrix: https://www.parametrix.com/who-we-

are/about-parametrix. 135 Parametrix, What We Do: Water Resources: https://www.parametrix.com/what-we-

do/water-resources. 136 Parametrix, What We Do: Donkey Creek Restoration:

https://www.parametrix.com/what-we-do/sustainable-solutions/donkey-creek-

restoration. 137 Janicki Industries, About Us: https://www.janicki.com/about-us/. 138 Janicki Bioenergy, How It Works: https://www.janickibioenergy.com/janicki-omni-

processor/how-it-works/ (accessed June 8, 2018).

https://www.herrerainc.com/services/

https://www.hdrinc.com/about-us/history

https://www.hdrinc.com/sites/default/files/2017-05/2016-hdr-sustainability-corp-responsibility.pdf

https://www.hdrinc.com/sites/default/files/2017-05/2016-hdr-sustainability-corp-responsibility.pdf

https://www.parametrix.com/who-we-are/about-parametrix

https://www.parametrix.com/who-we-are/about-parametrix

https://www.parametrix.com/what-we-do/water-resources

https://www.parametrix.com/what-we-do/water-resources

https://www.parametrix.com/what-we-do/sustainable-solutions/donkey-creek-restoration

https://www.parametrix.com/what-we-do/sustainable-solutions/donkey-creek-restoration

https://www.janicki.com/about-us/

https://www.janickibioenergy.com/janicki-omni-processor/how-it-works/

https://www.janickibioenergy.com/janicki-omni-processor/how-it-works/



groundwater, educated its members on the latest technology in the

industry, and provide information on groundwater to legislators and

the public. It is a state affiliate of the National Ground Water

Association.139


• Washington Stormwater Center is a technical resource and

research center in partnership with the City of Puyallup, Washington

State University and the University of Washington. It was created by

state legislative action to provide numerous services, such as

developing innovative and cost-effective solutions to runoff pollution,

coordinating with the Department of Ecology to administer

stormwater treatment and consulting with both public and private

interests.

• PureBlue is a Seattle-based incubator for startup technology and

research companies in the water industry. It provides these companies

with business resources, data and other support, and it receives

solution requests from public and private entities. PureBlue leverages

its team of 7 employees and its network of technology experts to

recommend strategies in areas of municipal drinking water,

wastewater and stormwater, as well as desalination and other water

challenges.140

• The Center for Urban Waters is a research center focused on

developing sustainable ways to restore and protect urban waterways.

Its environmental scientists, analysts and engineers bring diverse

backgrounds together to maintain a stormwater technology

certification program and connect innovators to potential users.141 The

Center also states that it is home to Washington state’s Clean Water

Technology Innovative Partnership Zone, a collaboration among

businesses, the Tacoma/Pierce County Economic Development Board,

the City of Tacoma, the Port of Tacoma, the University of Washington

and others aiming to catalyze water technology businesses in

Tacoma.142


• The Pacific Northwest Section of the American Water Works

Association was founded in 1927 and provides leadership to the

139 Washington State Ground Water Association, About Us, 2018:

http://www.wsgwa.org/about.htm. 140 PureBlue, PureBlue Solve: https://www.pureblue.org/pureblue-solve. 141 Center for Urban Waters, About the Center, 2018:

https://www.urbanwaters.org/about-the-center/. 142 Center for Urban Waters, Technology Innovation, 2018:

https://www.urbanwaters.org/what-we-do/technology-innovation/.

http://www.wsgwa.org/about.htm

https://www.pureblue.org/pureblue-solve

https://www.urbanwaters.org/about-the-center/

https://www.urbanwaters.org/what-we-do/technology-innovation/



drinking water profession in areas of water quality, water resource

policy and water-related planning issues. The group provides its 3,000

members with trainings, professional certifications and conferences on

infrastructure, regulations, water conservation and other topics.143

• The Evergreen Rural Water of Washington Association is a

nonprofit organization based in Shelton, Washington, with field staff

across the state. The group is an affiliate of the National Rural Water

Association and its stated mission is to provide free training and

technical assistance to water and wastewater systems personnel. It

works independently of state agencies, but it does collaborate with the

Department of Health, Department of Ecology, USDA Rural

Development, the Environmental Protection Agency, local health

districts and other agencies. The group is funded by grants to combat

regulatory and financial challenges faced by water systems in

Washington state.

• The Water & Environmental Center was founded in 2007 at Walla

Walla Community College. Closely tied to regional employers, the

Center provides the community college’s Water Technologies &

Management programs. Degrees offered in these programs include

Irrigation Technology, Natural Resources Technology & Management

and Watershed Ecology. Students who earn these associate degrees

are able to transfer to a four-year university or move directly into the

workforce as technicians in water quality, conservation, irrigation or

biology. The Center also provides community and K-12 education

opportunities.144 Graduates from the Water & Environmental Center

have gone to work for employers such as Nelson Irrigation, Rock Creek

Cattle Company and Walla Walla County.145

• Washington State University offers undergraduate and graduate

degrees in a broad range of sciences related to water. Within

agriculture, the university offers degrees in agricultural

biotechnology, agricultural technology, field crop management and

turfgrass management. Within environmental sciences, there are

degrees in ecosystems sciences, conservation sciences and natural

resource policy. There is also a wide array of engineering degrees

attainable by Washington State University students, and

143 American Water Works Association Pacific Northwest Section, Training

Opportunities, 2018: https://www.pnws-awwa.org/training/training-

opportunities/#washington (accessed May 25, 2018). 144 Water & Environmental Center, History: http://watereducationcenter.org/about-

us/history/history/. 145 Earth Economics, “The Economic and Environmental Impact of the William A.

Grant Water & Environmental Center at Walla Walla Community College ,” page 11,

2014: http://watereducationcenter.org/wp-content/uploads/sites/3/2014/12/WEC-

Impact-Study-2014.pdf.

https://www.pnws-awwa.org/training/training-opportunities/#washington

https://www.pnws-awwa.org/training/training-opportunities/#washington

http://watereducationcenter.org/about-us/history/history/

http://watereducationcenter.org/about-us/history/history/

http://watereducationcenter.org/wp-content/uploads/sites/3/2014/12/WEC-Impact-Study-2014.pdf

http://watereducationcenter.org/wp-content/uploads/sites/3/2014/12/WEC-Impact-Study-2014.pdf



specializations include environmental engineering and water resource

engineering.146

• The University of Washington is Washington state’s largest

educational institution, within it existing multiple sources of special

water-related degrees: the College of the Environment, the School of

Environmental and Forest Sciences, the School of Marine and

Environmental Affairs and the College of Ocean and Fishery Sciences.

Students can work toward degrees in aquatic and fishery sciences,

civil engineering, environmental management, hydrology and

hydrodynamics, marine affairs and oceanography.147 Employers who

seek University of Washington graduates with water-related degrees

include BiOWiSH Technologies, Loki Fish Company and the National

Park Service.148

• Whitman College is a small yet nationally-recognized college in

Walla Walla, Washington that offers degrees in water-related studies

from a liberal arts perspective. These cover areas such as

oceanography and environmental studies.149 Whitman College does not

offer engineering degrees, but, like many of Washington state’s diverse

educational institutions, it has prepared many of its students for

science and engineering occupations such as in the water industry.150


• New Streamflow Restoration Law. In January 2018, the

Washington State Legislature passed Engrossed Substitute Senate

Bill (ESSB) 6091 in response to the Whatcom County vs. Hirst,

Futurewise, et al. decision. Part of the new law will invest $300

million over the next 15 years in projects designed to improve

streamflows and provide water to rural areas in 15 watersheds

(Exhibit 21).151

146 Washington State University, Fields of Study:

https://admission.wsu.edu/academics/fos/Public/index.castle. 147 University of Washington, Degree Programs,

https://www.washington.edu/students/gencat/degree_programsTOC.html. 148 University of Washington College of the Environment, Career Opportunities, May

2018: https://environment.uw.edu/students/career-opportunities/ (accessed May 25,

2018). 149 Whitman College, Departments and Programs:

https://www.whitman.edu/academics/departments-and-programs. 150 Whitman College, Engineering: Potential Job Titles:

https://www.whitman.edu/student-life/student-engagement-center/whitman-

wayfinder/wayfinder-science-engineering-and-technology/wf-engineering. 151 Washington State Department of Ecology, Streamflow Restoration, 2018:

https://ecology.wa.gov/Water-Shorelines/Water-supply/Streamflow-restoration.

https://admission.wsu.edu/academics/fos/Public/index.castle

https://www.washington.edu/students/gencat/degree_programsTOC.html

https://environment.uw.edu/students/career-opportunities/

https://www.whitman.edu/academics/departments-and-programs

https://www.whitman.edu/student-life/student-engagement-center/whitman-wayfinder/wayfinder-science-engineering-and-technology/wf-engineering

https://www.whitman.edu/student-life/student-engagement-center/whitman-wayfinder/wayfinder-science-engineering-and-technology/wf-engineering

https://ecology.wa.gov/Water-Shorelines/Water-supply/Streamflow-restoration



Exhibit 21. Areas Affected by 2018 Stream Restoration Law

Source: Washington State Department of Ecology, 2018.

• Columbia Basin. The purpose of the Odessa Groundwater

Replacement Project is to replace groundwater from declining

irrigation wells in the Odessa Subarea, reducing the risk of economic

loss. Farmers and owners of irrigated land are eligible for replacement

water. The total cost of the systems yet to be built is roughly $175

million in state, federal and landowner funds. The project is estimated

to protect 3,600 jobs, $211 million in regional income and $630 million

annually in the potato industry.152

• Lake Roosevelt. Readily available water stored behind the Grand

Coulee Dam is supplying a portion of the replacement water for

farmers drawing on the declining Odessa subarea aquifer. Also, new

water is being made available for cities and industries which apply.

The project is estimated to add 35,000 jobs and $3 billion in economic

value.153

• Kachess Lake. The Washington State Department of Ecology and the

Bureau of Reclamation have proposed the Kachess Drought Relief

Pumping Plant to meet future demand for water in Eastern

152 Washington State Department of Ecology, Odessa Groundwater replacement,

2018: https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-

EW/Columbia-River-Basin-projects/Odessa-groundwater-replacement. 153 Washington State Department of Ecology, Eastern Washington Water Projects,

2018: https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-

EW.

https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-EW/Columbia-River-Basin-projects/Odessa-groundwater-replacement

https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-EW/Columbia-River-Basin-projects/Odessa-groundwater-replacement

https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-EW

https://ecology.wa.gov/Water-Shorelines/Water-supply/Water-supply-projects-EW



Washington. The project would build a pump facility in Kachess Lake

that would pump additional 200,000 acre-feet, or enough water to

cover 200,000 acres in one foot of water, to prevent potential drought

in the Yakima River Basin.154

• Yakima River Basin. Numerous other projects are designed to

quickly improve stream flows, prevent drought and secure water for

farms, cities and industry in the Yakima River Basin. Together they

will support what the Washington State Department of Ecology

estimates as a $4.5 billion agricultural and food production

industry.155

154 The United States Bureau of Reclamation, Kachess Drought Relief Pumping

Plant, May 2018: https://www.usbr.gov/pn/programs/eis/kdrpp/ (accessed May 25,

2018). 155 Washington State Department of Ecology, Eastern Washington Water Projects,

2018.

https://www.usbr.gov/pn/programs/eis/kdrpp/



OPPORTUN ITIES FO R WASH INGTON

Identification of potential opportunities for Washington state businesses,

organizations, and communities is based on a comparison of targeted

opportunities and alignment of existing assets. Opportunities are presented

in Exhibit 22 below. The opportunities in some instances represent two or

more of the industries reviewed in this report, such as the nexus between

food production, energy, and water.



Exhibit 22. Summary of Opportunities for Washington State in the Green Economy

Opportunity Description and Key Observations Illustrative Key Assets

Develop

alternative

and

renewable

energy

systems and

be a leading

hub for R&D.

• Demand for renewables is driven by

multiple factors including: growth in

population; increasing focus on

resilience, especially because of more

severe weather events; corporations

increasingly demanding cleaner

energy; aging infrastructure; and

decarbonization.

• Clean energy technologies are

increasingly cost competitive. The

significant decline in the cost of

electricity from renewable energy

technologies, especially wind and solar,

has made power generation from

renewable sources increasingly

competitive with and less costly than

fossil-based or nuclear power.

• Much of the clean energy revolution will

entail the intersection of energy and

information technology, making

Washington uniquely positioned for this

opportunity.

• Global investment in clean energy

increased from $62 billion in 2004 to

$334 billion in 2017. China continues to

be a major source for this new

investment; Washington already has

strong economic and trade ties with

China which could be leveraged.

Washington state has leading

companies in the development and

installation of wind and solar energy

systems. The state is also a leading

hub for research on renewables, led

by Washington State University,

PNNL, and the McKinstry Innovation

Center.

Strong government support for clean

energy technology and business

development, such as Clean Energy

Fund and tax incentives and other

incentives.

Develop and

export grid

management

systems and

power

storage

technology.

Electricity distribution and transmission

systems require complex software and

management solutions, as well as

advanced metering technology. In all of

these areas, Washington has a unique

advantage, as home to leading

companies, research & development, and

allied industries able to develop necessary

solution platforms. As the global energy

market continues to embrace renewable

energy sources, the management and

storage of these sources will require new

storage solutions, such as advanced

batteries and associated energy

management tools.

Leading companies that are already

developing energy storage and

management solutions and

hardware, such as UniEnergy

Technologies, Itron, Schweitzer

Engineering, EnerG2, Demand

Energy, and Group14 Technologies.

Washington is also a hub for R&D in

energy storage and smart grid,

including research Washington State

University, the University of

Washington Clean Energy Institute,

and PNNL.



Development

of water

resource

management

solutions that

efficiently

manage

allocations

across

multiple uses.

• Food production, energy, and water

(FEW) are closely intertwined in the

Pacific Northwest and thus require

integrated solutions to resource

management.

• Due to the impacts of climate change

(such as drought) in other parts of the

U.S., Washington may become more

critical as a source of food production

for the U.S. in the coming years, further

stressing water supplies.

• Efficiencies in water use and distribution

across multiple uses, such as drip

irrigation technology and household

water use metering

• Washington State University

• PureBlue, a technology

incubator focused on water

• Washington Stormwater Center

• Center for Urban Waters

• Janicki Industries, which recently

developed a wet waste-to-

energy converter and reusable

water.

New water

infrastructure

solutions

developed

and applied

in Washington

and

exportable to

other parts of

the U.S.

Many water systems suffer from older

infrastructure in need of replacement, but

this can be improved through application

of big data and metering technology to

track the performance of each segment of

a water infrastructure system. Washington is

well-poised to support innovation in this

space through its existing, robust tech

industry.

Washington’s tech industry, including

software and metering technology

firms, availability of angel and

venture capital, and tech incubators

such as PureBlue.

Development

of water

irrigation

technology

and

conservation

systems that

can be

applied in

Washington

and exported

to other parts

of the country

and world.

Development of technologies that improve

water usage efficiencies, such as drip

irrigation and household water use

metering systems.

• Companies such as Nelsen

Irrigation.

• Washington’s large agriculture

sector in Central and Eastern

Washington is a potential

customer base for new irrigation

and water conservation

solutions.

Stormwater

management

solutions

Stormwater management is a challenge

both in the developed and developing

world. Countries such as China have been

significant investments in managing

stormwater flow in recent years and look to

outside firms for expertise in systems design

Washington is already home to several

leading companies and organizations with

expertise in stormwater management.

HDR, Parametrix, Herrera

Environmental Consultants,



Revising

building

codes to

support

manufacture

and use of

cross-

laminated

timber and

mass timber in

Washington

state.

Mass timber and CLT provide an economic

opportunity for tree farmers and forest land

owners to generate income through using

otherwise waste forest byproduct, such as

forest thinnings and tree tops, into a source

material for building materials.

Washington’s shuttered or underutilized

lumber mills could be repurposed to support

this industry, though with modifications to

account for the technologies associated

with mass timber and CLT products.

• Washington’s existing lumber mill

facilities and forestry industry.

• Companies that have recently

started CLT production projects

in Washington: Vaagen Brothers

and Katerra.

• Weyerhaeuser

• University of Washington

Developing

capacity for

recycled

building

materials in

Washington

state.

Recent policy shifts in China may force solid

waste to other parts of the world for

processing and/or significantly reduce the

amount of material that can be collected

and recycled. This scenario may present an

opportunity for Washington state businesses

to develop in-state processing facilities to

recycle solid waste materials that can be

repurposed for building materials, such as

particle board and tiling. However, further

efforts would be needed to standardize the

recycled compositions of these materials to

meet LEED building standards.

Several Washington companies are

already engaged in recycled

building materials. These include

Kiptech, PaperStone, and Bedrock

Industries, to name just a few.

45

Appendix B

In addition to the sources listed in Appendix A (“Green Economy Industry Roadmap Meta-Analysis”, Community Attributes Inc.), a wide range of sources were used in the research. These included reports, news articles, books, data on industry trends from national and international organizations, and interviews with industry leaders, government agencies, academics, investors, and trade associations. The studies, articles, organizations and publications that informed this study are listed here as “Appendix B” to this report:

“Rewiring the Northwest’s Energy Infrastructure” (An Integrated Vision and New Investment Strategy), The Evergreen State College Center for Sustainable Infrastructure, Rhys Roth, Author and Director, Center for Sustainable Infrastructure.

“A Northwest Vision for 2040 Water Infrastructure” (Innovative Pathways, Smarter Spending, Better Outcomes), The Evergreen State College Center for Sustainable Infrastructure, Rhys Roth, Author and Director, Center for Sustainable Infrastructure.

Metropolitan Center for Applied Research & Extension, Washington State University Extension, Bradly Gaolach, Executive Director.

Washington Stormwater Center, John D. Stark Ph.D, Director, Washington State University-Puyallup Research and Extension Center, 2606 West Pioneer, Puyallup, WA, 98371.

WSU Washington Water Research Center https://wsu.edu/ Jon Yoder & Jennifer Adams

WSU Center for Environmental Research Education and Outreach (CEREO) http://cereo.wsu.edu/ Jan Boll & Julie Padowski

Climate Impacts Group, College of the Environment, University of Washington, Box 355674 Seattle, WA 98195-5674

“PureBlue” and organization dedicated to developing tools and forging partnerships related to water: www.pureblue.org

CleanTech Alliance, 1301 5th Ave, STE 1500, Seattle, WA 98101-2632, Tom Ranken, Executive Director.

“SOLUTIONS FOR THE GLOBAL WATER CRISIS” (The End of ‘Free and Cheap’ Water); Citi GPS: Global Perspectives & Solutions, April 2018.

“SOLUTIONS TO THE WORLD’S WATER CRISIS CAN BE FOUND IN THE DRIEST PLACES”, By Lana Mazahreh, The Boston Consulting Group Inc., 2018.

“Climate Of Hope” (How Cities, Businesses, And Citizens Can Save The Planet), by Michael Bloomberg and Carl Pope; 2017, St Martin’s Press.

“DRAWDOWN” The Most Comprehensive Plan Ever Proposed To Reverse Global Warming”; Edited by Paul Hawken, Penguin Press, 2017.

46

NASA News, May 2018 “NASA satellites reveal major shifts in global freshwater”;

http://climate.nasa.gov/news/2734nasa-satellites-reveal-major-shifts-in-global-freshwater/

USGCRP, 2017: Climate Science Special Report: Fourth National Climate Assessment, Volume I [Wuebbles, D.J., D.W. Fahey, K.A. Hibbard, D.J. Dokken, B.C. Stewart, and T.K. Maycock (eds)]. U.S. Global Change Research Program, Washington, DC, USA, 470 pp, doi: 10.7930/jJOJ964J6.

USGCRP, 2018: Impacts, Risks, and Adaptation in the United States: Fourth National Climate Assessment, Volume II: Report-in-Brief [Reidmiller; D.R., C.W. Avery, D.R. Easterling, K.E. Kunkel, K.L.M. Lewis, T.K. Maycock, and B.C. Stewart (eds)]. U.S. Global Change Research Program, Washington, DC, USA, 186pp.

“The Carbon-Free City Handbook” and “The Carbon-Free Regions Handbook”, 2017, Rocky Mountain Institute, Boulder Colorado

University of Washington College Of Built Environment - Carbon Leadership Forum

US Department of Defense, “Quadrennial Defense Review 2014” Chapter 1: Future Security Environment p. 8:

“Climate change poses another significant challenge for the United States and the world at large. As greenhouse gas emissions increase, sea levels are rising, average global temperatures are increasing, and severe weather patterns are accelerating. These changes, coupled with other global dynamics, including growing, urbanizing, more affluent populations, and substantial economic growth in India, China, Brazil, and other nations, will devastate homes, land, and infrastructure. Climate change may exacerbate water scarcity and lead to sharp increases in food costs. The pressures caused by climate change will influence resource competition while placing additional burdens on economies, societies, and governance institutions around the world. These effects are threat multipliers that will aggravate stressors abroad such as poverty, environmental degradation, political instability, and social tensions – conditions that can enable terrorist activity and other forms of violence.”


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