Environmental policy was front and center Tuesday evening at the Churchill Club in Silicon Valley as EPA Administrator, Lisa Jackson took the stage with former Michigan Governor, Jennifer Granholm. Fracking and the proposed Keystone pipeline were hot topics during the lively discussion.
In December, Jackson announced that she will leave her post after four tumultuous years in DC and didn’t rule out running for elected office. Speculation is rife about her running for Governor of New Jersey.
On Fracking
“It can and should be done safely..I’m enough of a scientist to say: the verdict is not in yet. We need more data.”
On the Keystone Pipeline
“I will be gone (from the EPA) before a decision is made. A revised environmental impact study will be done, then public feedback, then President Obama will decide ‘if it’s in the national interest’. This will take into account pollution, groundwater, and the economic perspective. It’s too soon in the process to say (if it will get the green light).
A Price on Carbon?
“The current climate doesn’t lead me to believe there will be a national law soon. But that doesn’t preclude state action (such as California’s), and the private sector, where important progress can be made.”
Jennifer Granholm, who was a strong advocate for cleantech during her eight year tenure as Governor of Michigan added, “The Federal Government could offer a pot of money to incentives states to take action and stimulate progress from the bottom up.” She likened her idea to the “Race to the Top” program for education.
On Green Innovation and the Role of the EPA
“The EPA can level the playing field by setting emissions standards and goals which stimulate the private sector to compete and beat them. It often costs less than EPA estimates, due to private sector innovation. But the private sector needs uniform and not patchwork standards…”
“The EPA works for all the American people, not special interests…it’s not a zero sum game. For it to succeed no one needs to lose. There are win/win strategies. Regulations need to be enforced. The work we do is vital and sacred.”
On Science and Climate Change
“I am a scientist and at the EPA we have more scientists than any other Federal agency except NASA…We face a roll-back in the Clean Air Act. Be aware that consensus is enough – unanimity is not required or you’ll miss the window for action.”
There was a vocal climate change skeptic in the audience whom Jackson addressed directly saying he wasn’t representative of the majority of Americans.
On her Greatest Achievements at the EPA
“The endangerment finding made pollution actionable…and we raised fuel efficiency standards.”
As Dana Hull explains in the Mercury News, during Jackson’s tenure, the EPA finalized its endangerment finding which authorizes it to take reasonable efforts to reduce greenhouse gases.
The event was hosted at the Microsoft Campus in Mountain View by Rob Bernard, the company’s green czar.
This month, I moderated a panel of green jobs experts for the Commonwealth Club Silicon Valley. Experts included: Parag Chokshi, Clean Energy Public Affairs Manager, Google; Josh Green, General Partner, Mohr Davidow Ventures; Linda Keala, Vice President Human Resources, SolarCity and Nanci Klein, Deputy Director, Office of Economic Development, City of San Jose.
The panel shared insights about the green economy, as well as tips for finding and securing green investments and green jobs. Here are highlights of our conversation (edited for space and clarity).
What are hot sectors in the green economy?
Josh Green, Mohr Davidow Ventures: “In the current environment, we’re looking for less capital intensive deals (energy efficiency, LED lighting and building management systems), so that means we’re on the side of energy demand much more than energy production. People call this cleantech IT – Information Technology. I’m an investor in Xicato, an LED module company. The LED convergence will happen…the payback is less than two years and (it’s) equivalent to halogen light. You don’t have to replace them for ten years or more and especially in a commercial settings, you end up lowering your maintenance costs.”
On cleantech growth sectors in Silicon Valley
Nanci Klein, Office of Economic Development, City of San Jose: “People say manufacturing has left the US…but manufacturing is very exciting here. When you talk about innovation and commercialization, Silicon Valley is a hub around new product introduction. Contract manufacturers will take a low volume, high mix of products. …the ten largest in the world – Tier One contract manufacturers – are all here in Silicon Valley, six of them in San Jose. They’re like a secret weapon resource. We try to link baby investors to these companies. You take someone with a hot idea and you put them with all of the accelerated services…if the product is good you can have a rocket in terms of acceleration.”
Josh Green, Mohr Davidow Ventures: “The loan guarantee program is operating well within the loan loss reserves. Certain loans are going to fail…The Solyndra mess became a big political football…the good news is that we’ve passed the half life…Congress officially stopped all its hearings. There will be continued efforts to end the loan guarantee program…but Solyndra itself: it’s over in terms of an issue. As investors, it never was an issue, it was a company that was not successful…I’ve got a portfolio with lots of companies that are not successful. Out of 100 investments, if you have 10 that meet your investment objectives (10x your money or better) then you’re ‘wildly’ successful, that makes you a top venture capitalists. That means you have a 90% – under your expectations success – rate.”
Tips on getting a green job
Linda Keala, Director of HR, SolarCity:
1. “A background in cleantech is not a prerequisite.”
2. “Differentiate yourself – what about the job (post) got you inspired? What resonated about the company?”
3. “I love getting handwritten letters. A personalized message tells me this is who I am, this is what I can bring to the company. Sometimes I get them in little pink envelopes…”
4. “Touch a spot in our hearts and we’ll take a close look at that resume.”
Josh Green, Mohr Davidow Ventures: “Have passion to change the world.”
How to get a job in Google’s Green Team (there are currently seven openings in the sustainability/green team areas)
Parag Chokshi, Clean Energy Public Affairs Manager at Google:
Here are the qualities Google looks for:
1. “Be a self starter, work independently and drive forward a project.”
2. “Think about creative solutions. We value innovation and creativity.”
3. “Show passion and new ways of thinking about things…that is very valuable.”
How is the City of San Jose helping entrepreneurs in Silicon Valley and beyond?
Nanci Klein, Office of Economic Development, City of San Jose: Here are some of the resources available – The Entrepreneur Center in downtown San Jose; Business Owner Space; Opportunity Fund. Check out SJEconomy.com. She also recommends the Cleantech Open competition and SolarTech an association for those in solar and financing sectors. The City of San Jose is working in partnership with Lawrence Berkeley Lab and others to create Prospect Silicon Valley, a demonstration and commrecialization center for cleantech startups.
On storage and battery technology
Josh Green, Mohr Davidow Ventures: “Storage is the most important development that could happen for our grid at the utility scale storage level as well as the emerging EV market to encourage the widespread adoption of EVs. ON the grid side, there is NO storage…the second you produce an electron it has to be consumed…this results in the creation of “Peaker Plants” used for 5-15 hours a year (especially in August). Storage has the greatest potential to unlock value.
In the transportation sector, lithium ion batteries are the lightest batteries and they still weigh about 1400 lbs in the new Tesla Model S. To the extent that you can get these to be a smaller battery pack you can unlock incredible advantages.
For the next 10 years, lithuim ion technologies are going to be where batteires and storage are focused. There are about 50-60 venture backed companies in the Bay Area, working on advanced battery technology. Mohr Davidow has invested in extracting lithium from geothermal brine at goethermal plants in Southern California. Its the lowest cost producer in the world with the best environmental footprint. We believe that lithium will help fuel the storage revolution.“
Tesla Motors released its first batch of all electric Model S sedans today. The cars are actually built – not just assembled – at the Tesla Factory in high priced Silicon Valley. The company’s CEO, Elon Musk, says he’s creating “the greatest car company of the 21st Century,” yet despite the hoopla, Tesla is one of the most shorted stocks on the Nasdaq. Will this ambitious entrepreneur – who led the successful SpaceX mission to the international space station last month – prove detractors wrong again?
I visited the factory on June 14 and Gilbert Passin, VP of Manufacturing at Tesla gave me a fascinating two hour tour. He explained the process of making a Model S, from the stamping shop, where huge hydraulic press machines stamp sheets of aluminum into 3-dimensional fenders, hood panels, doors, and roofs; to the quality testing where the paint work is meticulously checked and recycled water is used to test each model’s watertightness.
At the stamping shop, Passin says, “These parts are extremely critical because it’s like the foundation of what makes a good car…See the robot is actually picking up the part in slow motion to make sure that everything works well…you don’t want anything to break.”
Shiny red robots and red T-shirt clad employees work hard at the factory: stamping, assembling, welding, painting and testing. The release of the first ten Model S Sedans is a big milestone for this innovative company. We talk to Charles James Lambert, who is a team leader working on the stylish and unique door handles Tesla manufactures at the factory. “I’m building a door handle that’s going on something fabulous to me: the model S…so sexy to me, the car, right?” he says. “That we have a door handle that responds. It’s pure elegance to me.”
Steve Jurvetson, a Tesla board member, snagged the very first prelaunch Model S (Elon Musk had to wait for number 2) and raves about it with the wide-eyed glee of a teenager describing his first set of wheels. “It’s kind of like driving in a hyper space portal to the future…” says Jurvetson.
Yet this futuristic car, that accelerates 0-60 in 4.4 seconds, does so in a whisper, not a roar. Jurvetson argues that silent is better. “It’s like saying I sleep better when there’s industrial noise going on outside my house, really?” he says and suggests that for drivers who miss the roar of an internal combustion engine, downloadable sounds might be the answer… “People can make it sound like whatever you want. You know, Harley Davidson: “huff pwuffpwuff pwuff.” Fine…just dial it up…blast your ears out…who cares?” he says.
Jurvetson, a Silicon Valley venture capitalist, sincerely believes that all vehicles will be electric one day and Tesla will lead the way. “I love what it represents: emblem of the future and a symbolic step towards a oil-free economy.”
The Model S is phase two of Elon Musk’s masterplan to disrupt the car industry and create efficient sustainable transportation. In 2008, Tesla released the Roadster, a high-end electric sports car priced at over$100,000. With the Model S, Tesla has made a more affordable car, and a year or two after its Model X comes out in 2013, aims to produce a 3rd generation model for $30,000. An electric car “for the masses.” Tesla has already catalyzed an industry shift. Today most major car companies are releasing electric or hybrid models. “Even some of the biggest competitors – the gas burning giants of the past – have admitted that they kicked off their electric vehicle program because they saw what Tesla did,” says Jurvetson. “Management said: this little company in CA is doing it, why can’t we?”
Tesla may be a trailblazer, but it faces a bumpy road ahead. Those shorting the stock (betting that the stock will fall in value on the Nasdaq) have a bearish reaction to Tesla’s high debt levels, tough competition and uncertain prospects for mass-market adoption. But it’s more than just the scrappy startup -the Millennium Falcon (Star Wars)- against the Empire (GM, Ford et al). Damon Lavrinc, Transportation Editor for Wired Magazine explains, “The established players don’t like to be challenged on their own home surf.”
He argues that to succeed, Tesla must address both range anxiety and charging time challenges. Price is also an issue. The 150-mile range car may have a base price of $50,000 after federal rebates. But for the fully loaded 300-mile range model, you’ll pay closer to $100,000. California buyers also get a state rebate ($2500) plus those precious carpool stickers. “Once we can get that price of entry lower, once we can get that battery capacity larger, that’s when it’s really going to take off,” says Damon Lavrinc. So far, Tesla has 10,000 reservations for the Model S and will deliver about half this year, ramping up to 20,000 in 2013, if the orders continue to come.
Experts compare it to the BMW 5 Series, but Tesla’s VP of Manufacturing explains its edge. “We’ll change the world by bringing a product that’s extremely efficient, very clean for theplanet, extremely fast, extremely comfortable…extremely beautiful,” says Passin. But Tesla has to get it right the first time, there’s no room for error.
Back in the Tesla Factory, at the end of our tour, Passin explains, “The car has to be finished, has to be perfect, the people working here know this is the end of the line, so it has to be good.” Although these challenges seem formidable, Elon Musk is attacking them like a true tech superhero, channeling the wild ambition of Steve Jobs and his obsessive search for perfection. Musk reportedly works 80-90 hours a week, splitting his time between Tesla and his space exploration company, SpaceX. Elon Musk was reportedly the inspiration for the Iron Man movies. “He may have superpowers, I don’t know,” says Passin, chuckling.
Last month, Musk proved naysayers wrong with his historic SpaceX Mission to the international space station. Can he do the same for the Electric Vehicle market? So much depends upon the successful launch of the Model S sedan. Damon Lavrinc of Wired Magazine sums up what’s at stake: “It’s not just so much a make or break it for Tesla, it is very much a make or break it for the entire electric vehicle industry.”
And he’s got an historic precedent to back his case – from Medieval France no less.
“It’s a very powerful idea that could become something of great importance to California,” he said. “New ideas are never received as well as old ideas, but I think California is the one place where high speed rail can get its start for the United States.”
But with California’s budget in the red and more spending cuts on the table, can California afford to spend a penny on high speed rail?
The 74 year-old governor took a page from history and replied with a question: “How did the peasants of medieval France afford to build the cathedral of Chartres?”
He then enlightened Fresh Dialogues with this answer, “They did it slowly… they did it with community investment and a great belief in the future.”
This echoes Brown’s 2012 State of the State Speech in which he said, “”Those who believe that California is in decline will naturally shrink back from such a strenuous undertaking…I understand that feeling, but I don’t share it because I know this state and the spirit of the people who choose to live here.”
Governor Brown is thinking very long term. In fact, the high gothic Chartres Cathedral, famous for its flying buttresses, took almost 60 years to build.
But it’s an unfortunate analogy. In the 13th Century, the cathedral’s “free trade zone” was also the cause of bloody riots between bishops and civic authorities over tax revenues. An ominous sign indeed for the Governor of California. Plus ca change…
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Given Jerry Brown’s recent announcement that $120 M from a settlement with NRG Energy Inc. would be used to fund the provision of 200 public fast-charging stations for EVs in the Golden State (including some 5000 Nissan Leafs he confirmed have been sold to date), Fresh Dialogues also asked the governor if he drives an electric car. “Not yet,” he replied.
In earlier comments today, he referenced the new Tesla Model S, which will roll off production lines at Tesla’s Fremont Factory this summer. So is he considering a Tesla? He demurred. “I’m looking, looking, looking at it.”
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Bill Weihl, former Green Czar at Google will start work greening Facebook in late January next year. As Fresh Dialogues predicted on his departure from Google last November, Weihl will stay in the green arena and plans to “advance sustainability” at Facebook. No details yet on his job title or the extent of his responsibilities, but he confirmed, “the focus will be on sustainability, clean energy, energy efficiency, etc.” We anticipate Weihl will use his extensive experience and passion for green to drive Facebook’s sustainable practices, leveraging its game-changing apps and Facebook’s vast membership of over 800 million active users.
Under his leadership at Google from 2006 to 2011, the company took a unique role in green policy advocacy as well as over $700 M in cutting edge clean energy investment. In July, Fresh Dialogues covered Google’s Green Dream, an audacious report outlining how the right green investment and policy could positively impact the economy and the planet. Without Weihl at the helm, Green at Google may lose some impetus, although Google’s Parag Chokshi assured us green investment and programs will continue. A new Green Czar has not yet been announced.
Read transcripts, see photos and check out our ARCHIVES featuring exclusive interviews with Tom Friedman, Paul Krugman, Vinod Khosla and many more green experts and visionaries…
Innovation and Silicon Valley go together like bits and bites. Another month another innovation competition. But Intel’s Global Challenge caught our attention for the breadth and quality of its innovators from around the world, who competed for $100,000 in prize money and the chance to pitch some of the valley’s top venture capitalists at UC Berkeley’s Haas School of Business.
Fresh Dialogues was delighted to see a good number of environmentally conscious innovators made the cut, including PolySol, a recyclable alternative to plastic, made from coconut husks; Nitrate Production System, a low-cost earth-friendly fertilizer and ValleyFeed, a wireless wildfire detection system. These innovative teams came from India, Jordan and Saudi Arabia/Lebanon respectively. Closer to home, NextDrop, a Berkeley based team demonstrated a ground breaking system that uses crowd-sourcing technology to monitor and facilitate efficient water use in India. The venture capital judges agreed and gave NextDrop the Social Innovation Award.
The award winning team includes National Science Foundation Fellow, Emily Kumpel (pictured) who is a PhD candidate in Civil and Environmental Engineering at the University of California at Berkeley. She brings her water management experience in Madagascar and Tanzania to NextDrop’s diverse team who include Ashish Jhina, Thejovardhana Kote, Anu Sridharan, Madhusadhan B, and Ari Almos.
We look forward to following their progress blog as they scale up NextDrop’s project in India.
On Solyndra
