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Strategic Assessment and Action Plan
for Natural Resources and Sustainable Development
Table of Contents
Credits ............................................................................................................................................ iii
1. Introduction................................................................................................................................ 1
Project Description...................................................................................................................... 1
Economic Development Philosophy – Innovation and Product Development........................... 2
2. Targeted Sustainable Industry Clusters ..................................................................................... 3
Economic Development Vision for Sustainable Industry Clusters............................................. 4
Key Observations for Sustainable Industry Clusters .................................................................. 6
3. Strategic Assessment and Action Plan....................................................................................... 7
Summary ..................................................................................................................................... 7
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis and Action Plan .......... 8
Appendices.................................................................................................................................... 23
Appendix A. Product Platforms/Opportunities for Green Building, Community Infrastructure
and Value-Added Wood Products ............................................................................................ 23
Appendix B. Product Platforms/ Opportunities for Water and Water Management Systems. 26
Appendix C. Product Platforms/Opportunities for Renewable Energy Production and
Management.............................................................................................................................. 27
Appendix D. Project Advisory Committee.............................................................................. 28
List of Tables
Table 1. Original Clusters .............................................................................................................. 4
Table 2. Elements of the Economic Development Vision............................................................. 5
Table 3. Summary of Strengths and Weaknesses .......................................................................... 7
Table 4. SWOT Analysis Summary: Green Building, Community Infrastructure and Value-
Added Wood Products .................................................................................................. 9
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Table 5. Action Plan for Green Building, Community Infrastructure and Value-Added
Wood Products............................................................................................................ 11
Table 6. SWOT Analysis Summary: Water and Water Management Systems........................... 13
Table 7. Action Plan for Water and Water Management Systems .............................................. 15
Table 8. SWOT Analysis Summary: Renewable Energy Production and Management............. 17
Table 9. Action Plan for Renewable Energy Production and Management ................................ 20
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CREDITS
Research for this project was based on a variety of sources – formal and informal – we would
like to credit, including:
• Alta Biomedical Group, LLC
• Celilo Group Media, Inc./Sustainable Industries Journal
• City of Portland, Office of Sustainable Development
• International Sustainable Development Foundation, China-U.S. Center for Sustainable
Development
• Oregon Board of Higher Education consultant Susan Bragdon
• Oregon Department of Agriculture
• Oregon Department of Energy
• Oregon Department of Water Resources
• Oregon Economic and Community Development Department
• Oregon Forest Resources Institute
• Oregon Office of the Governor, David Van’t Hof, Sustainability Advisor
• Oregon Nanoscience and Microtechnologies Institute
• Oregon State University
• Pacific Northwest National Laboratory
• Portland State University
• Dr. Adrian Roberts
• United Nations Development Programme
• University of Oregon
Cover images provided by Oregon State University.
The authors – Bob Wise, Damian Pitt, and Ran Zhang -- would like to apologize for any errors of
omission or accuracy. We did our best because we care about this report.
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June 30, 2005
1. INTRODUCTION
The state of Oregon, because of its high unemployment rate, needs more family-wage jobs to
replace those lost in the last recession and to better position the state in the changing global
economy. Many of these jobs can come from the sustainable, natural resource-based industry
clusters described in this report. We can build on our expertise in natural resource industries,
building local demand and expertise while developing a more diverse and vital export economy.
Oregon’s economic health has been tied to exports from the earliest Native American fish and
goods trading center at Celilo Falls. Early settlers found a rich Native American civilization and
focused on the natural abundance of the region -- exporting furs and other indigenous goods.
The Native Americans and early pioneers built the foundations for our historic forestry,
agricultural, and fishing economies, each of which depends on exports out of state.
Export economies are highly dependent on external demand, and therefore cyclical in nature.
These cycles in nature, industry, and economies have exacerbated boom-bust cycles in Oregon
outside of our control. At the same time, these cycles and our geographic heritage forced us to
develop creative responses to the inevitable economic downturns. This is Oregon’s unique
strength compared to other states and economies. Securing Oregon’s future requires that we tap
into our innovating spirit as well as our natural heritage in forestry, fisheries, agriculture, and
other natural resources. Fortunately, Oregon has maintained its competitiveness in these
industries through its institutions of higher education, government and corporate research, and
export ties. As a result, this project is focused on identifying aspects of Oregon’s traditional and
emerging industries that are uniquely “Oregon” and leveraging them into future growth to
sustain Oregon’s economy.
Project Description
This Strategic Assessment and Action Plan is based on the information provided in the June,
2005 Trends Report in Natural Resources and Sustainable Development (Trends Report) and
related interviews, research, and analysis. The Oregon Economic and Community Development
Department (OECDD) decided, after consultation with various stakeholders, to concentrate this
study on the three sustainable industry clusters that: 1) benefit both urban and rural Oregon; and
2) provide the greatest convergence of growing markets, academic strengths, research
opportunities, and commercialization potential:
• Green building, community infrastructure and value-added wood products
• Water and water management systems
• Renewable energy production and management
To develop this assessment and action plan, Cogan Owens Cogan, LLC (COC) worked with Pat
Scruggs and Krissa Wrigley from OECDD’s New Economy Team, representatives from Oregon
State University, Portland State University and the University of Oregon and a steering
committee composed of 12 experts in a variety of fields related to sustainable industries (see
Appendix D). The committee was involved in developing or reviewing the vision for the project
and the opportunities/action plan elements outlined below. The strengths, weaknesses,
opportunities and threats (SWOT) analysis was developed by COC based on review of the
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June 30, 2005
Trends Report and related sources. The COC consulting team was led by Bob Wise, assisted by
Damian Pitt and Ran Zhang, and included Susan Bragdon, consultant to the Board of Higher
Education, Sandra Shotwell and Lynn Stevenson of Alta Biomedical, and Nik Blosser of Celilo
Media Group (publishers of the Sustainable Industries Journal).
It is envisioned that the opportunities identified for the action plan will be developed in more
detail in Phase II of the project. Phase II will be coordinated by the Office of the Governor’s
Sustainability Advisor, with participation from OECDD, Oregon higher education institutions,
the Oregon Department of Energy, and possibly other agencies and private industry associations.
It is envisioned that these parties will plan a conference for the fall of 2005 to validate this action
plan and develop a more detailed economic development roadmap for the targeted sustainable
industry clusters.
Economic Development Philosophy – Innovation and Product Development
Oregon is a place where people come to be innovators and to develop green products and
services. This active entrepreneurial sprit is at the heart of product innovation. Oregon
industries must stay competitive by continually innovating – developing new products, finding
new markets, and improving productivity. This is especially true for the state’s natural resource
industries. Today, agriculture, wood products, renewable energy, and food processing are based
on state-of-the-art technology, embedded software, and application of nano- and
microtechnologies. The product innovation cycle is at the heart of creating the new economy
built on our natural assets and expertise.
The product innovation lifecycle, summarized in Figure 1, illustrates an integrated view of the
product development and production process over time. Governments, foundations, industry,
universities, and nonprofit organizations all play important roles at different stages in the
lifecycle of a product or technology. For example, government-funded university research and
development creates new knowledge and attracts additional funding for further research and
development. Additional funding increases collaboration between industry and universities and
results in creation of knowledge. New scientific findings and technologies developed in
laboratories are then tested and produced as products by new start-up enterprises or existing
companies of various sizes. These new products generate more employment and are conducive
to new businesses, adding to the industry cluster. Major manufacturing companies emerge with
global product supply chains and sales networks.
This strategic assessment and action plan is designed to focus on the early stages of the product
cycle including research, development, technology transfer, and commercialization. It also
addresses stimulating public, private, and academic partnerships throughout the sustainable
industries cluster in order to link and leverage current strengths (e.g., green building architecture
and value-added wood products) to support the success of existing Oregon businesses.
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Figure 1. Product Innovation Lifecycle
2. TARGETED SUSTAINABLE INDUSTRY CLUSTERS
This report is intended to address how Oregon can leverage its assets and opportunities to
commercialize research, transfer technology, and create “traded-sector”1 jobs in sustainable
industries related to:
• Green building, community infrastructure and value-added wood products
• Water and water management systems
• Renewable energy production and management
This project started by assessing four industry clusters that fall under the umbrella of sustainable
technologies. As market information, industry trends and other data were analyzed, it became
apparent that many of these original categories were important and interconnected elements of
the specific market-oriented clusters defined in this report. Table 1 describes the use of each
original cluster.
1
Traded-sector jobs are those resulting from the export of products or services. Traded-sector jobs increase wealth
locally by importing it from outside the exporting state or region.
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Table 1. Original Clusters
Cluster Comment
Natural Resources Natural resources and agriculture are core elements of the recommended
Agricultural and Forest water, renewable energy and green building clusters. There is clearly
Products potential for this to be an important area of sustainable industries.
Renewable Energy & The renewable energy cluster remains a recommended focus. This area
Clean Transportation has a bright future and is strongly associated with a second recommended
area of focus, the green building cluster. At this time, our university
research base on clean transportation seems to be limited and therefore
was not included as a top priority. However, aspects of the renewable
energy cluster have transportation applications, such as biofuels and fuel
cells.
Sustainable Technologies While elements of high-tech are included in product opportunities in water
for High-Technology and energy, there was no specific market pursued just for high technology
Manufacturing manufacturing. This category is being addressed in Oregon by the
Northwest High Performance Enterprise Consortium (NWHPEC), a group
of over 60 industry partners focused on Lean Principles; by the Zero Waste
Alliance; and by changes created by European regulations (REACH) and
by product liability. In addition, the Oregon Nanoscience and
Microtechnologies Institute (ONAMI) is already working with companies
to develop “green” nanotechnology solutions.
Ecosystem Management This category is a component of the water management and renewable
and Services energy clusters. The commercial market for ecosystem management by
itself was considered to be limited. However, connecting this expertise to
other end markets such as water management provides increased value and
a focus for commercial development.
Economic Development Vision for Sustainable Industry Clusters
This project is based on the following vision for economic development in Oregon via
sustainable industries and related products, services, and technologies:
Oregon will be a world leader in emerging sustainable products and services2 by
linking core scientific research and professional services to enabling technologies
such as nano- and microtechnologies and large-scale computing and
informatics.3
The key elements of the vision are summarized in Table 2 and discussed below.
2
Products and services associated with use of renewable resources, increased resource-use efficiency (e.g., lower
water use per output), low or zero toxicity, and improved ecological system health and productivity.
3
The sciences concerned with gathering, and manipulating, storing, retrieving and classifying recorded information.
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Table 2. Elements of the Economic Development Vision
Vision Elements Focus Areas
Enabling Technologies Nano- and microtechnologies
Informatics and large-scale computing
Forestry, agriculture and ecosystem management
Product Differentiation Decentralized and high value-added products and related
services
Target Sustainable Green building, community infrastructure and value-added
Industry Clusters wood products
Water and water management systems
Renewable energy production and management
This vision is based on the following observations:
• Some of the core research strengths of the Oregon universities, Oregon Nanoscience and
Microtechnologies Institute (ONAMI), and Pacific Northwest National Laboratory
(PNNL) are in nano- and microtechnologies, informatics, and large-scale, open-source
computing. (Large-scale, open-source computing links diverse information systems and
networks).
• There appear to be global and national trends toward smaller-scale and decentralized
technologies in building and infrastructure components, wastewater treatment and water
management, and energy production and distribution (e.g., wireless cell phones and
decentralized solar power plants). This is true in both developed and developing
countries. These technologies and products are closely related to the national need for
secure, flexible, and decentralized responses to homeland defense and national security
issues.
• Because of European Union and other standards (such as the LEED green building
program), in the near future market-leading products will be made from low-toxic inputs
with recycled content and will have intensive embedded technology (e.g., solar cell roof
shingles, nanoparticle-based solar-collecting paint, and super-efficient power plants using
ocean wave energy).
• There are major opportunities not only to promote the targeted sustainable industry
clusters, but also to develop related industries such as manufacturing, software, data and
informatics tools, equipment, and other associated products and equipment.
Major challenges in implementing this vision include:
• There are social and regulatory barriers to implementing small-scale and decentralized
solutions to meet building, water, and energy requirements. Building codes often limit
the use of new technologies (e.g., waterless urinals and passive heating and cooling
systems). Regulations governing electricity generation primarily are geared toward
transmission grid systems. These are examples of current barriers to implementing
advanced building components and water-conserving technologies.
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• Full cost and lifecycle costs are not included in the price of many products and services.
For example, the costs and environmental impacts of centralized systems around fossil
fuel electricity and nuclear power are not fully assessed in the marketplace.
Key Observations for Sustainable Industry Clusters
1. Natural resource industries are shifting from growing and harvesting raw materials to
producing value-added, engineered products (e.g., structural fiber board instead of raw logs).
This shift towards value-added natural resource products is particularly important for
economic development in rural communities.
2. Rural communities also can take advantage of new opportunities in value-added wood
products and green building materials, water management technologies, and renewable
energy to strengthen and diversify their local economies (e.g., the development of wind
power on agricultural and range lands).
3. Oregon, especially the Portland metropolitan area, is known for its urban planning, which
attracts international visitors and opens up international markets for the state’s planning,
architecture, landscape architecture, and civil/environmental engineering firms.
4. Oregon has a growing number of renewable energy firms, including leading solar inverter
and fuel cell firms, and many Oregon utilities are offering “green” power options to their
customers. The U.S. Department of Energy National Renewable Energy Lab ranks Portland
General Electric and Pacific Power number two and three in the nation, respectively, in the
total number of ratepayers opting into green programs.
5. Several of Oregon’s core commercialized research competencies (including nanoscience and
microtechnologies, large-scale computing, and forestry, agriculture, and sustainable
ecosystems) are synergistic with a strategic focus on sustainable industry clusters.
6. All of these opportunities fall under the umbrella of sustainable development.
7. Oregon appears to have market permission and support to further develop its sustainable
industries, because of how it is perceived, nationally and internationally, as a leader in
sustainable development and related industries.
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3. STRATEGIC ASSESSMENT AND ACTION PLAN
Summary
Table 3 represents an overall interpretive summary of the key strengths and weaknesses of the
green building, water, and bio-energy clusters as discussed in balance of this report.
Table 3. Summary of Strengths and Weaknesses
Category Green Building Water Renewable Energy
Demand Trends
International Current ++ Current +++ Current+
Future ++ Future +++ Future+++
National Current ++ Current++ Current+
Future +++ Future++ Future+++
Regional Current ++ Current++ Current++
Future ++ Future+++ Future+++
Assessment of Overall State High High High
Need/ Priority
Strength and Growth of +++ --- ++
Oregon Industry
Strength of Firms +++ --- ++
Institutional Assets (public, High Medium Medium
private, academic, nonprofit)
PNNL Focus High4 High Medium
Funding Opportunities ++ +++ ++
Key Issues Strong business and Academic critical Medium academic
academic assets but mass; but few assets, few
some business and commercial firms manufacturers, and
university assets not business and
linked university assets not
linked or focused
Overall Grade B+ C+ B-
Observation Oregon could be a Build on academic Build on institutional
global contender strengths, PNNL, and assets, strengths,
agricultural water PNNL, and rising
needs renewable energy
demand
4
See Appendices 2 and 3
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1. International, national, and regional markets in the many billions of dollars exist and are
forecast for the green building, water, and renewable energy clusters.
2. In Oregon, the demand for green building and related products is high and growing (doubling
almost every year), the need for water conservation and management systems is high
(because of water scarcity and over-allocation of stream and ground water), and there is
growing capital investment and demand for renewable energy in the state and region
(especially in wind power in Eastern Oregon).
3. The green building, value-added wood products, water, and renewable energy clusters are
growing according to data provided by the Oregon Employment Department.
4. PNNL and ONAMI present major opportunities for research and commercialization in all
three clusters. PNNL has a long history of research in all three fields and ONAMI has active
projects in water and renewable energy.
5. Funding opportunities for water/energy are especially strong because of the availability to the
region of PNNL and the Idaho National Energy and Nuclear Lab scientists, which have
research budgets approaching $1 billion per year.
6. Key Issues:
• The state is strong in elements of the green building cluster (such as wood products and
green building services), but industry segments within the cluster are not strategically
linked to each other, to governments, or to the universities and PNNL.
• There is an academic critical mass in water and water systems, augmented by PNNL’s
strengths, but there are few commercial firms with products in the market.
• There are strong national laboratory institutional assets in renewable energy, but the
universities have no clear academic research focus or platform in this area. Oregon also
has one of the nations’ largest renewable energy developers – PPM Energy – and several
growing players in the solar and fuel cell markets.
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis and Action Plan
The following is an assessment of the strengths, weaknesses, opportunities, and threats
(SWOT) for each cluster, observations on the SWOT, and key issues and
opportunities/actions.
Green Building, Community Infrastructure and Value-Added Wood Products
Economic development in this cluster will be based upon the following core research strengths:
• Nano- and Microtechnologies
• Large-scale Computing and Informatics
• Forestry, Agriculture, and Sustainable Ecosystems
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Table 4. SWOT Analysis Summary: Green Building, Community Infrastructure and
Value-Added Wood Products
Strengths Weaknesses
Green building and value-added forest products Fragmented industry (green building designers
industry already well-developed and wood products)
OSU research capacity Industry focus on raw materials
PNNL and regional expertise and potential for Fragmented research community
products testing Lack of ONAMI focus
ONAMI focus on green nanotechnologies
Institutional capacity in higher education
UO Green Chemistry
PSU China Program/Urban Planning and
Intelligent Transportation
Public policy support for innovative product
development
Cascadia Green Building Council
Opportunities Threats
Large markets Differences in the size of firms
LEED™ market driver Lack of agreement on forest certification systems
REACH regulations in Europe Possible lack of funding for Wood Innovation
Federal research funding Center
PNNL green building expertise Incentives for collaboration
High value-added materials Marketing strategy for China and other rapidly
developing nations
Integrated products
No driver for sustainable/community-scale
infrastructure
Building code and other regulatory disincentives
The Oak Ridge National Laboratory in Tennessee
is the leading national laboratory for green
building
The observations below reflect and expand on the table above.
Strengths
1. The green building and value added wood products industries are already well-developed in
Oregon.
2. OSU has abundant strengths in wood product research and excellent leadership in the fields
of forestry and value-added wood products.
3. PNNL has vast and untapped expertise in green building and related energy expertise and
ONAMI is focused on green nano-technology research (see Appendix A).
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4. The Cascadia Green Building Council, Oregon Forest Resources Institute, and the Wood
Innovation Center at OSU can focus on identifying products for the housing, commercial,
and industrial real estate markets.
5. The UO Green Chemistry program and laboratories are major assets that can be global
leaders in the field.
6. The PSU expertise in urban planning and intelligent transportation and the collaborative
training program with the China-US Center for Sustainable Development provide a great set
of assets for markets in China and other rapidly developing nations.
7. The City of Portland and State of Oregon provide incentive funding and procurement
strategies for green building and related energy systems.
8. The Cascadia Green Building Council is a leading source of information and training on
green building needs, products, and services.
9. Oregon can be a leader on the interface between energy and green building, and currently is
developing “net-zero” energy home technology.
Weaknesses
1. The wood products, green chemistry, community infrastructure, and green building industries
are fragmented, sometimes in major disagreement, and there is no mechanism for joint
strategies and actions.
2. The forest products industry in Oregon continues to be focused primarily on raw materials
with a growing focus on high value-added products and technologies.
3. The academic and related research community is likewise fragmented and not strategically
focused on this cluster.
4. ONAMI has limited current focus on green building-related research and commercialization.
Opportunities
1. The domestic and international markets in Europe, China, Japan and other parts of Asia for
green building materials and technologies are enormous.
2. The U.S. Green Building Council LEED™ rating system is a major market driver. Similar
systems will be market drivers in global markets, including China.
3. The European Union REACH regulations will stimulate replacement of all toxic chemicals in
products produced in Europe in the next 10 years.
4. Federal research funding opportunities in the field are large; especially those associated with
U.S. EPA. There appears to be no current national center on green building technologies.
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5. PNNL has a very large list of green building products and technologies that are nearing
commercialization or being researched, and provides the opportunity to test new products.
6. Oregon’s forest products industry has the potential to be a major player in high value-added
and integrated green building materials such as composite products.
Threats
1. Green building, urban planning, and value-added wood products industries see their
industries as separate and in disagreement, and are not used to working together.
2. The forestry industry may resist certain types of third-party certification of forest/timber
production.
3. The Wood Innovation Center (OSU) may not receive enough funding to reach its full
potential.
4. Clear incentives for collaboration between the green building and wood products
manufacturers may not emerge.
5. A global and China-focused marketing strategy may not emerge because of size-of-firm
differences within the cluster.
6. Creativity in sustainable community infrastructure will be limited because there is no driver
such as the U.S. Green Building Council’s LEED™ rating system.
7. There are regulatory barriers to increasing the green building products and services in
national, state, and local codes and regulations.
8. The Oak Ridge National Laboratory in Tennessee is the designated national laboratory for
green building, meaning that Oregon will have to develop close links to PNNL and Oak
Ridge to support the cluster.
Table 5. Action Plan for Green Building, Community Infrastructure and Value-Added
Wood Products
Key Issues Actions
Vision for Green Buildings
Oregon as the world leader of green Bring together the Governor, Oregon Sustainability
building, urban development, and value- Board, OECDD, Oregon University System, Oregon
added wood products. congressional delegation, and industry associations to
refine and adopt a vision and develop a related business
plan.
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Connectivity and Collaboration
Enhance connectivity and collaboration
among partners to better leverage
funding resources more effectively and
commercialize new products.
Within Industry Develop a network that connects the multiple industries
within the cluster based on a target set of goals, projects,
and funding opportunities.
Specifically enhance connections between the
architecture/urban planning/construction industries and
wood product manufacturing companies to develop
products to meet future green building markets.
Among Industry/Universities/PNNL Develop a set of specific collaborative research and
commercialization efforts among industry, universities
and PNNL, utilizing federal funding and laboratory
expertise to enhance Oregon’s capabilities.
Build on PNNL expertise in sensors and controls related
to building management, environmental monitoring, and
energy production.
Explore developing a major program focus on sustainable
decentralized infrastructure, parallel to green buildings,
including transportation, water supply, sewer, and
stormwater.
Enhance the development of informatics services and
products related to green buildings and community
infrastructure.
Within the Universities/ONAMI Focus on non-toxic adhesives, innovative wood products
for buildings, interior building management systems, and
implementation of the Wood Innovation Center.
Focus on green roof technology and evaluation systems,
intelligent transportation system design and technologies,
and urban development in China.
Green chemistry innovations in building materials and
cleaning products, super-efficient heating and cooling
systems, and solar energy applications to real estate
development.
Connect to ONAMI’s research in cellulose-based nano-
particles, solar-collecting nano-paints, safe and low-toxic
nano-particles and production processes. Develop a
detailed research agenda for green building.
Market Development
Domestic Partner with OECDD, Oregon Homebuilders Association,
American Institute of Architects, U.S. Green Building
Council and Cascadia Green Building Council; and the
Oregon Forest Resources Institute to develop strategies to
expand demand for green building products and services.
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International Develop a focused strategy, in cooperation with the
China-U.S. Center for Sustainable Development and
Sister City and Sister State relationships, to target Chinese
and other Asian markets. Coordinate with PGE’s Green
Building Services to develop the Shanghai Energy Center
as a marketing gateway for green building products and
services in China. Consider similar efforts in India and
other rapidly developing nations.
Business Development
Federal Funding Develop a strategy with the congressional delegation to
gain major funding and recognition for Oregon’s
collaboration and expertise, possibly with a national
center for green building technologies for the National
Science Foundation, Department of Housing and Urban
Development, or Environmental Protection Agency.
State and Local Incentives Evaluate state and local policies, regulations, and
purchases to ensure that the green building cluster is
encouraged. For example, conduct an evaluation of code
and regulatory barriers to further the use of green building
techniques in Oregon in cooperation with cities, the state,
and private developers.
Water and Water Management Systems
Economic development in this cluster will be based upon the following core research strengths:
• Nano- and Microtechnologies
• Large-Scale Computing and Informatics
• Forestry, Agriculture, and Sustainable Ecosystems
Table 6. SWOT Analysis Summary: Water and Water Management Systems
Strengths Weaknesses
University research capabilities Small and fragmented industry
OSU Water and Watersheds Initiative Few commercial companies, products and patents
OR/WA/ID leadership in agricultural water Marketing not focused on exports
systems
Hydropower industry
Watershed management expertise
Opportunities Threats
Global need and demand Arizona and foreign competition
Global climate change, which is stimulating the PNNL partnering priorities
need for new technologies to deal with decreasing Incentives for university collaboration
water supplies
Incentives for university/industry collaboration
Water pollution and urbanization in China and
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other rapidly developing nations
U.S. water security funding
Proposed federal water/energy legislation/PNNL
and Idaho Energy and Environmental Lab (OR,
WA, ID)
Niche technologies
Water conflicts
The observations below reflect and expand on the table above.
Strengths
1. Oregon universities have more than 100 faculty members in water resources and related
fields, and major institutes exist at OSU, PSU, and UO.
2. OSU’s water and watershed initiative provides the opportunity to coordinate research and
commercialization across disciplines.
3. Eastern Oregon, Washington and Idaho are leaders in water conservation and management in
the agricultural sector.
4. The Northwest Environmental Business Council provides a strong industry focus in the fields
of stormwater management, wastewater treatment, and water supply systems.
5. The Pacific Northwest is a world center of expertise in hydroelectric power and related
technologies.
6. Oregon is a world leader in watershed planning, restoration and management.
Weaknesses
1. The water resources industry is fragmented, with expertise existing in private companies,
governmental agencies, universities, and non-governmental organizations.
2. Private industry in agricultural water technologies is not represented by any single group or
organization.
3. Oregon research institutions have few related commercialized research and patents.
4. Private companies focused on agricultural water solutions are small and do not work together
on common interests.
Opportunities
1. Water-related technologies and services are probably the greatest single need in the rapidly
developing world, including China.
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2. Conflicts over water and water rights create an opportunity to finance the application of
water conservation technologies.
3. All of the Western United States, as well as other regions, could experience major impacts
from global climate change. These impacts could change stream flows, seasonal water
storage, the levels of water bodies and the ocean, and have wide impacts on ecosystems and
the agriculture and forest products industries. These impacts would create awareness about
the need for services and technologies related to water management and conservation.
4. The developing world’s level of urbanization, pollution, and food production needs make it a
major market for water-related services and technologies in the future.
5. Because of threats of terrorism and international development agency priorities there will be
major research, product development, and export opportunities in the future.
6. Proposed legislation by Senator Domenici (R-NM) would strengthen the capacity for
research and commercialization activity at the Pacific Northwest National Laboratory and the
Idaho National Energy and Environmental Laboratory and position the region as a world
leader in agricultural water technologies and water/hydro systems.
7. There appear to be immediate opportunities to commercialize niche technologies (see
Appendix B).
Threats
1. Arizona’s development of its virtual “Water University” and focus on arid lands provides
researchers and companies there with a competitive advantage over Oregon.
2. The Pacific Northwest National Laboratory plans to partner with the University of
Washington on implementing the Domenici water/energy research strategies.
3. Few incentives exist to encourage inter-institutional or business/university collaboration on
developing a water research/commercialization strategy.
Table 7. Action Plan for Water and Water Management Systems
Key Issues Opportunities
Vision for Water
Oregon will develop a common state Bring together the Governor, Oregon Departments of
vision and work with regional partners to Water Resources, Agriculture, and Economic and
identify strengths and research expertise Community Development, the Oregon Sustainability
in order to commercialize advanced Board, Oregon University System, the Oregon
decentralized water and related energy- congressional delegation, industry and others to refine and
management solutions. implement this vision and develop a business plan.
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Connectivity and Collaboration
Enhance connectivity and collaboration
among partners to better leverage
funding resources and more effectively
commercialize new products.
Within Industry Develop a network(s) that connects the businesses within
the cluster to focus on linking:
- Agricultural water management products and
expertise.
- Expertise on the economic opportunities provided
by impacts of global climate change.
- Expertise in renewable energy applied to water
resources needs.
- Integrated storm, waste, drinking water systems.
- Decentralized water pollution treatment systems.
Among Industry/Universities/PNNL Develop a specific partnership among industry, PNNL,
Idaho Energy and Environment Lab, and Oregon
universities to develop expertise related to the
opportunities presented by the proposed national
water/energy legislation (Domenici bill).
Leverage PNNL, BPA, Corps of Engineers and other
expertise in hydro-power wildlife and fish mitigation.
Within the Universities/ONAMI Develop and implement the Water and Watershed
program.
Develop the water-borne invasive species program with
the Smithsonian Institution and the Oregon Department of
Agriculture.
Develop the green chemistry application on reduction of
toxic chemicals in the water supply.
Connect to PNNL and ONAMI to develop water
purification and treatment technologies.
Market Development
Domestic Develop a focused market strategy for the Western U.S.
and related arid lands.
International Develop a focused strategy, in cooperation with
international funding agencies (World Bank, Asian
Development Bank, U.S. Trade Development Agency,
U.S. AID, etc.) to export water-related services and
technologies to Asian and other rapidly developing
nations.
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Business Development
Federal Funding Develop a strategy to maximize Oregon’s role in the
water/energy legislation for U.S. National Laboratories
(Domenici bill) and, if it is viable, the Water for the Poor
legislation (Blumenauer bill).
State and Local Incentives Evaluate water law and regulations to encourage adoption
of integrated water and energy systems, water
conservation, and water-conserving technologies.
Renewable Energy Production and Management
Economic development in this cluster will be based upon the following core research strengths:
• Nano- and Micro-technologies
• Large-Scale Computing and Informatics
• Forestry, Agriculture, and Sustainable Ecosystems
Table 8. SWOT Analysis Summary: Renewable Energy Production and Management
Strengths Weaknesses
OSU and ONAMI research Fragmented focus in research and industry
OR, WA, CA global warming action plans and Few manufacturers
state policies Lack of integrated academic platform
Comprehensive Renewable Energy Action Plan Relatively high technology costs (e.g., solar
(REAP) for Oregon photovoltaic and fuel cells)
Regional utilities (PGE & Pacific Power) Net energy production issues
PNNL and Idaho National Energy and
Environmental Lab
Wood and agricultural fiber base
OR Department of Energy incentive programs
OIT renewable energy and geothermal expertise
Energy Trust, Climate Trust, N.W. Energy
Efficiency Alliance, Bonneville Foundation
Deep regional expertise in hydro-power
Public policy support for green power
PPM Energy, a national leader in renewable
energy generation, based in Oregon
Opportunities Threats
Regional and international markets Federal government lack of support
OSU proposed green technologies and energy Forest lands policy
multi-institutional center Incentives for collaboration
Improving national market Still highly centralized energy systems
PNNL expertise Power purchase policies could change
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Diverse products and technologies including fuel Federal disincentives to conserve power
cell manufacture in region Utility regulations limiting distributed electric
PGE Shanghai, China Energy Center and China- power
U.S. Center for Sustainable Development
Power purchase regulations
Homeland security opportunity
Billions of dollars in incentives for renewable
energy generation in proposed federal energy bill
The observations below reflect and expand on the table above.
Strengths
1. OSU and ONAMI have active research in multiple fields of renewable energy, including
wind, ocean wave, hydro, solar, hydrogen from water, biodiesel, and micro-scale power
generation, cellulose energy and others.
2. Oregon, Washington, and California all are leaders in the U.S. in developing and
implementing global warming action plans that will increase demand for renewable energy.
3. Oregon recently developed the state’s first-ever Renewable Energy Action Plan.
4. The Western Governors recently started an initiative to develop 30,000 MW of clean energy
in the West by 2015 and increase efficiency of electricity use by 20% by 2020.
5. The Northwest is blessed with several large utilities with major interests in renewable energy
development.
6. PNNL and the Idaho National Energy and Environmental Laboratory are both strong
research partners.
7. Oregon has a very strong wood and agricultural fiber base because of extensive and
productive farms and forests.
8. The State of Oregon’s unique tax credit and loan programs have invested over $200 million
in renewable energy projects in the past 25 years. The business energy tax credit has funded
over 500 projects worth more than $50 million and the residential energy tax credit has
helped 20,000 homeowners use solar energy.
9. The Oregon Institute of Technology hosts the Oregon Renewable Energy Center and the
Geothermal Resources Institute.
10. Oregon hosts several innovative and well-financed non-governmental organizations such as
the Energy Trust of Oregon and The Climate Trust. Those organizations invest millions in
energy conservation and renewable energy generation.
11. With Bonneville Power, the Corps of Engineers, and private utilities, Oregon is a world
center of expertise in hydro-power systems.
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12. There is significant public support for “green” power: PGE and Pacific Power ranked
number two and number three in the nation, respectively, in customer subscription to green
power purchases.
Weaknesses
1. The renewable energy industry in Oregon is diverse (including a variety of small and large
businesses) and not well organized. In addition, academic research is not concentrated on a
single platform nor focused on a limited number of specialties.
2. There are few manufacturers of renewable products and technologies.
3. There is no overall university-based, multi-institutional platform for research and
commercialization activities.
4. There is no overall driver to encourage renewable energy such as the LEED™ standard for
green building.
5. Costs for some forms of renewable energy such as photovoltaic and hydrogen production are
still relatively high.
6. There are differences of opinion among researchers as to the degree of net energy production
(energy outputs compared by energy input) for some forms of renewable energy such as
hydrogen.
Opportunities
1. There are very large and growing regional and international markets based on energy demand
and implementation of the Kyoto Protocol.
2. Increasing costs of fossil fuels is driving up prices and making renewable energy and fuels
more and more competitive. This trend should continue indefinitely.
3. U.S. markets for renewable energy are improving, with several states and cities
implementing the Kyoto Protocol, and the federal energy act encouraging the use of
agriculturally based fuels such as ethanol.
4. OSU has proposed a multi-center green energy collaborative for research and
commercialization activities, which can become a focus of future research funding strategies.
5. PNNL and the Idaho National Energy and Environmental Laboratory provide a very strong
research and funding base to establish the Northwest as a world leader in renewable energy.
6. The Northwest is a center for wind power and a variety of emerging technologies including
fuel cells and decentralized facilities such as biogas production from dairy cattle waste.
There also is momentum for the Northwest to be a center for biofuels manufacturing.
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7. PGE’s Green Building Services and the Oregon Department of Energy are developing an
Energy Center in Shanghai, China that can be a gateway for marketing renewable energy
systems in China. The China-U.S. Center for Sustainable Development training program
also provides a way to market Oregon-based products and services.
8. National laws and regulations require purchase of excess decentralized power production by
major utilities.
9. Homeland security and threats from terrorism imply evolution toward a more American-
produced, decentralized and flexible energy system in the future.
10. The Oregon Institute of Technology is focused on energy efficiency in housing and
businesses, and renewable energy supply and technologies.
Threats
1. The U.S. government continues to provide support and subsidies for large-scale and
centralized energy systems.
2. U.S. forest lands policy has not yet produced opportunities for increased harvesting of wood
fiber for bio-based fuel production.
3. There are few incentives for renewable fuels and decentralized energy systems compared
with those available for oil and nuclear energy production.
4. Even though trends, such as the need for homeland security, are toward a more renewable
and decentralized system, the U.S. still has a highly centralized and controlled, non-
renewable energy system.
5. The price of non-renewable energy today usually is lower than forms of renewable energy.
6. Smart and micro-grid electricity energy production and management strategies (distributed
electric power) are limited by current monopoly and access policies.
Table 9. Action Plan for Renewable Energy Production and Management
Key Issues Opportunities
Vision for Renewable Energy Persuade the Governor, Oregon Sustainability Board,
Oregon will develop a common state OECDD, Oregon University System, Oregon Department
vision and work with regional partners to of Energy, the regional congressional delegation, and
identify strengths and build on research industry associations to refine this vision and develop an
expertise in order to develop a economic development business plan for renewable
manufacturing sector around renewable energy and associated research and development and
energy products and services, including manufacturing.
advanced decentralized energy Work with the existing West Coast Global Warming and
production management and solutions. Western Governors Clean Energy Initiatives to further
development of renewable energy in Oregon and the
Pacific Northwest.
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Connectivity and Collaboration
Enhance the connectivity and
collaboration among partners to better
leverage funding resources and more
effectively commercialize new products.
Within Industry Develop a network that connects the multiple industries
within the cluster based on a targeted set of goals,
projects, and funding opportunities:
- Specifically enhance connections among large
utilities, renewable energy technology
manufacturers, and public agencies to encourage
use of renewable energy systems in Oregon.
Among Industry/Universities/PNNL Develop a set of specific collaborative research and
commercialization efforts among industry, universities
and PNNL and the Idaho National Energy and
Environmental Laboratory utilizing federal funding and
laboratory expertise to enhance Oregon’s capabilities.
Within the Universities/ONAMI Develop the multi-institutional green energy center
Focus on global warming strategies for companies and
state and local governments and energy cost-saving
techniques.
Solar radiant heat and low-energy-use HVAC.
Connect to ONAMI: compact biodiesel production,
micro-scale power generation, micro-scale chemical
reactors, hydrogen production, and low-cost
photovoltaics.
Market Development
Domestic Partner with the OECDD, Oregon universities, PGE,
Pacific Power, manufacturers, other states and the western
region to develop strategies to expand demand of
renewable energy in Oregon, the region, and the U.S.
International Develop a focused strategy, in cooperation with the
China-U.S. Center for Sustainable Development and
Sister City and Sister State relationships, to target Chinese
and other Asian markets.
Business Development
Federal Funding Develop a strategy with the Pacific Northwest
congressional delegation to maximize the potential
funding to PNNL and the Idaho National Energy and
Environment Lab.
Explore developing a multi-institutional government/
industry/ university partnership similar to ONAMI for
renewable energy.
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State and Local Incentives Evaluate state and local policies, regulations, and
purchases to ensure that the renewable energy cluster is
encouraged.
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APPENDICES
Appendix A. Product Platforms/Opportunities for Green Building, Community
Infrastructure and Value-Added Wood Products
Adhesives and finishes
• Low and zero-toxic finishes
• Adhesives – building, automotive, boats, aircraft
Building Components
• Modular buildings with walls and floors with integrated electric, plumbing, and telecom
services
• Super windows
• Super-efficient appliances -- one motor for everything, grid responses management
• Solid-state, low-energy-use lighting
• Micro-channel building heating/cooling with 50% energy saving
• CFC-free microchannel cooling/refrigeration systems
• Passive heat exchangers for heating and cooling
• Net-zero water packages
Smart Buildings
• Smart building systems
• Continuing commissioning – meter, monitoring, and adjustment systems
Energy Systems
• Standard designs for earth temperature heating and cooling
• Energy-efficient and grid-friendly equipment
Additional Commercial Products Available in the Market
According to PNNL’s Kim M. Fowler (Senior Research Engineer, LEED™ accredited
professional), below is a partial list of technologies commercially available in the market in the
Pacific Northwest:
• Advanced electric heat pump, water heater
• Aerosol ductwork sealing technology
• Air-to-air energy recovery ventilator
• Barnacle water saver
• Commercial hot water heat pump
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• Commercial laundry wastewater reduction
• Compact fluorescent lamp adaptor for recessed downlights
• Compact fluorescent lamp plug-in ballast in a socket
• Cooling tower assisted, ground-source heat pump
• Demand-controlled ventilation
• Dimmable compact fluorescent lamps
• Direct/indirect lighting
• Dual flush (2-button) toilets
• Ductwork sealing technology
• Economizers
• Electroluminescent exit signs
• Energy Star™ (or better) refrigerators
• Extensive use of submetering
• Heat pipe installed in air handling unit
• High EER rooftop air conditioning units
• High-performance (super) T8 fluorescent lamp and ballast technology
• High-performance roof
• High-performance walls
• High-performance, “super” insulated windows with high "R" value
• High use of task versus ambient lighting
• High-performance rooftop air conditioner
• High-performance, variable-air volume laboratory fume hoods
• Intelligent building systems
• Intelligent lighting controls
• Liquid-desiccant heating/cooling system powered by solar energy
• Modulating/condensing water heater and hydronic boiler
• Natural daylighting systems
• Occupancy sensors and controls
• Passive solar design
• Pressure flush toilets
• Scotopic lighting
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• Separate ventilation air from heating/cooling
• Solar hot water heater
• Solar wall air preheating system
• Tankless hot water heaters
• Task-ambient luminaries
• Temperature-tolerant reflector compact fluorescent lamps
• Under-floor air distribution
• VendingMiser™ and SnackMiser™
• Ventilation heat recovery
• Waterless urinals
• Whole building diagnostician
• Zero-energy buildings
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Appendix B. Product Platforms/ Opportunities for Water and Water Management
Systems
Below is a partial list of technologies currently available or being developed in the Pacific
Northwest.
Water Treatment/Reuse
• SAMM – self assembly monolayer designer membranes for small, compact filter systems
• Other water membrane technology for advanced filtration
• Microreactor/nanomaterial remediation of groundwater, process effluent
• Super-efficient water delivery and reuse technologies for agriculture
• Large-scale waste, storm, and drinking water system package designs for new town
development
• Advanced non-chemical package treatment systems such as UV
• Home water reuse products for gray water and stormwater management
Water Pumping/Distributed Energy Production Systems
• Water pumping/portable energy production components
• Linear and small turbine hydro package plants
• Hydropower system efficiency management
• Micro-reactor-distributed production of biodiesel, hydrogen, other bio-derived fuels or
chemicals
• Distributed small-scale bioenergy production plants
Water Storage Systems
• Water storage systems (underground, above-ground, ecosystem services)
• Water recharge technologies and measurement systems
• Seasonal water management monitoring and evaluation systems
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Appendix C. Product Platforms/Opportunities for Renewable Energy Production and
Management
Energy Systems
• Super-efficient semiconductors for solar power
• Nanoparticle solar-collecting paints/panels
• Local/area community energy systems such as chiller/heating
• Hydrogen energy applications in building and community level
Additional Commercial Products Available in the Market
According to PNNL’s Kim M. Fowler (Senior Research Engineer, LEED™ accredited
professional), below is a partial list of technologies commercially available in the market in the
Pacific Northwest:
• Hybrid geothermal heat pump systems
• Hybrid solar lighting
• Integrated energy system design
• Power-guard photovoltaic roofing system
• Solar roofing shingles (PV shingles)
• Solar water heaters
• Solar wall air-preheating system
• Zero-energy buildings
• Solar inverters
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Appendix D. Project Advisory Committee
Gail Achterman, Institute for Natural Resources, Oregon State University
Debbie Colbert, Oregon Department of Water Resources
Martha Ann Dow, Oregon Institute of Technology
Kirby Dyess, Oregon University System, State Board of Higher Education
Diana Enright, Oregon Department of Energy
Gary Langenwalter, Zero Waste Alliance
Leslie Lehmann, Oregon Forest Resources Institute
PK Melethil, Zero Waste Alliance
Glenn Montgomery, Oregon Economic and Community Development Department
Wayne Rifer, Rifer Environmental
Richard Schulberg, International Sustainable Development Foundation
Brent Searle, Oregon Department of Agriculture
Dave Van’t Hof, Oregon Governor’s Office
Mike Warwick, Pacific Northwest National Laboratory
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