{"id":389,"date":"2011-07-29T08:00:38","date_gmt":"2011-07-29T12:00:38","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=389"},"modified":"2013-07-29T22:44:02","modified_gmt":"2013-07-30T02:44:02","slug":"nh-green-jobs-growth-picture-unclear","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2011\/07\/29\/nh-green-jobs-growth-picture-unclear\/","title":{"rendered":"NH Green Jobs Growth Picture Unclear"},"content":{"rendered":"
\"\"<\/a>

PSNH \/ Flickr<\/p>

Installing solar panels on a roof in New Hampshire.<\/p><\/div>\n

As the economy continues to limp along toward recovery, \u201cgreen jobs\u201d has become a buzz phrase, often tossed out as a panacea for our economic ails. But compared to the rest of the nation, New Hamphire\u2019s share of this sector doesn\u2019t exactly stand out.<\/p>\n

In a study released earlier this month<\/a>, researchers found that from 2003 to 2010, New Hampshire\u2019s green jobs industry grew at an average of 3.5 percent a year, outpacing the rest of New England. \u00a0But the result of that growth was lackluster. \u00a0Only two percent of the state\u2019s workforce holds down a green job, which places New Hampshire square in the middle of the national average.<\/p>\n

Put another way: New Hampshire is less of a green economy leader than other states, and more like a student who just manages to raise their \u201cD\u201d grade to a \u201cC\u201d in the last weeks of the semester.<\/p>\n

<\/p>\n

Defining Green Jobs<\/h4>\n

The definition of what exactly a \u201cgreen job\u201d is has been something of a moving target. \u00a0But there is broad agreement that the green economy encompasses renewable energy and technology, environmentally-friendly products manufacturing, and other activities that, if they don\u2019t directly benefit the environment, they don\u2019t harm it.<\/p>\n

There\u2019s plenty of potential in the area for growth, as it only makes up two percent of jobs and more manufacturing jobs are going overseas. But which factors are most promising in stimulating growth in this industry? The record is unclear, and opinions are mixed.<\/p>\n

Some Promise in New Segments<\/h4>\n

For the study, Brookings Institution <\/a>researchers Mark Muro, Devashree Saha and Jonathan Rothwell broke the earth-friendly economy into 39 distinct segments. \u00a0Among other things, they covered green building materials manufacturing, solar panel installation, organic farming, hydropower, mass transit, waste management and recycling\u2026and the list goes on. \u00a0And in this regard, at least, Rothwell says New Hampshire showed some promise.<\/p>\n

The state hasn\u2019t gone out of the way to craft green business-friendly laws and subsidies.<\/div>\n

\u201cThe fast growth is really in the new segments where companies tend to have been started in the late \u201890\u2019s or 2000\u2019s, and these are the areas that have a disproportionate impact on energy, whether it be energy efficiency or new energy, like biofuels and new battery technologies, solar photovoltaic all experienced great growth, both nationally and particularly in New Hampshire.\u201d<\/p>\n

Nobody seems to know exactly why there\u2019s been fast growth in New Hampshire all of a sudden. That\u2019s especially since the state hasn\u2019t gone out of the way to craft a set of green business-friendly laws and subsidies.<\/p>\n

Government Stimulus Cited as a Factor<\/h4>\n

State Office of Energy and Planning Director Joanne Morin says she has an idea of what\u2019s been going on. \u201cStimulus is huge,\u201d she said.<\/p>\n

Although Morin\u2019s office is a state agency, it\u2019s almost entirely funded by the federal government. \u00a0During normal budget years, OEP gets about $1.8 million in state funds, compared to $40 million from the federal government. \u00a0Among other things, that money helps OEP to push energy efficiency in state and local government buildings and to maintain low-income weatherization programs.<\/p>\n

But then the federal stimulus package passed, OEP got another $60 million dollars in federal money, and three years in which to spend it.<\/p>\n

With extra help from federal officials, the Office of Energy and Planning has been focused on the green economy. \u00a0Director Joanne Morin says more than a third of her office\u2019s money \u2014 $23 million \u2014 has gone toward subsidizing weatherizing homes for low-income people. \u00a0\u00a0\u201cWe definitely have evidence of contractors who were construction contractors who were about to go out of business and went into weatherization and it sustained them through this recession.\u201d \u00a0Morin adds, \u201cOur unemployment rate is below five percent\u2026I believe the stimulus dollars had partial to do with that.\u201d<\/p>\n

A much smaller slice of OEP\u2019s stimulus funding went toward what might be, in the end, a much more promising program for long-term green job growth. \u00a0The Green Launching Pad is a green business incubator created at the University of New Hampshire. \u00a0And it\u2019s funded by $1.5 million in stimulus money passed down from the Office of Energy and Planning.<\/p>\n

Eighteen months ago, University of New Hampshire Management Professor Ross Gittell helped co-found the Green Launching Pad<\/a>, or GLP. \u00a0Today, he also directs the program, which has launched nearly a dozen businesses over the past two years. \u00a0Under the program, green startup companies throughout the state compete to become GLP companies. \u00a0Once they\u2019re accepted into the program, they get grants \u2014 up to $100,000 \u2014 and also mentorship from people at the University of New Hampshire and others involved in the project. \u00a0The money can be used for marketing, manufacturing, web design, or whatever the company needs to move on to the next step in its development.<\/p>\n

\u201cWhat we have done so far is \u2026 provided not only jobs during this current period of weak performance in the general economy, but also laid the foundation. \u00a0The businesses that we\u2019re launching now will be able to provide jobs over a long period of time,\u201d Gittell said. \u00a0\u201cAt least a handful of them, probably half of those eleven, we expect, will be growing significantly over the next five to ten years.\u201d<\/p>\n

The poster-child for the Green Launching Pad is Sustain-X<\/a>, a company specializing in compressed air storage. \u00a0Besides just being able to store energy, though, Sustain-X has figured out how to generate energy from the compressed air itself, without adding any fuel. \u00a0The company\u2019s headed by Thomas Zarella, the former President of GT Solar<\/a>, another New Hampshire clean energy company. \u00a0Besides GLP funding, Sustain-X is rolling in tens of millions of dollars in capital support. \u00a0The company\u2019s also a media darling. Last year, it earned a spot on The Guardian\u2019s \u201cGlobal Clean Tech 100\u201d list<\/a>. \u00a0Now, Sustain-X is upgrading to a bigger facility, moving from West Lebanon to Seabrook. \u00a0Green Launching Pad Director Ross Gittell says the move will help Sustain-X create 25 more jobs.<\/p>\n

So with all this success, did the Green Launching Pad money help launch Sustain-X?<\/p>\n

Hard to say. \u00a0Clearly, over the past few years, a number of investors have picked the company as a winning horse in the global renewable energy race. \u00a0Whether it would have been seen as a winner without GLP funding remains a mystery.<\/p>\n

But the Sustain-X story stands in stark contrast to that of Holase. \u00a0For founder and CEO Evan Bonchemps, who has experience launching other companies outside the green sphere, GLP-funding made the difference between staying open\u2014at least for awhile\u2014and shuttering the company.<\/p>\n

Unlike Sustain-X, Holase doesn\u2019t offer a possible long-term solution to the current energy crisis. Bonchemps says he was inspired to create a portable battery and solar-powered traffic light system after witnessing the aftermath of a bad car accident on a highway.<\/p>\n

The idea came to him in 2005, and within a few years, he had a working prototype. \u00a0But Bonchemps\u2019 had a hard time grabbing market share. \u00a0\u201cRaising enough operating capital has been very difficult in NH, so the Green Launching Pad money was a godsend for us, because it allows us to complete our manufacturing.\u201d<\/p>\n

\"Click<\/a>

Matt Stiles \/ NPR<\/p>

Southern counties have a larger percentage of the state's green jobs industry, according to a Brookings Institution study.<\/p><\/div>\n

But even with the GLP money, it\u2019s going to be a tough slog.<\/p>\n

\u201cThe investment community itself in NH is just dried-up\u2026I think since the economic downturn, it has gotten even worse in NH. \u00a0Everyone is on the sideline just looking\u2026Today, even as I\u2019m talking with you, even though we have purchase orders from the State of NH, from bona fide customers, I was not able to get loans from any banks, even though we have valid purchase orders.\u201d<\/p>\n

So some companies have been able to get started, and remain open, with help from the Green Launching Pad, and the GLP was itself launched with federal stimulus dollars.<\/p>\n

But is the stimulus really responsible for the uptick in NH green job growth? \u00a0Gittell says he can\u2019t be certain, because he hasn\u2019t started tracking it. \u00a0And since the stimulus doesn\u2019t run out until next April, it\u2019s tough to get a handle on final results. \u00a0But, Gittell says, \u201cWithout stimulus money, we wouldn\u2019t have been able to launch these eleven companies. \u00a0I really can\u2019t speak more broadly than that.\u201d<\/p>\n

Once stimulus funds run out at the end of April, Gittell hopes to have enough private funds in place to keep the program going.<\/p>\n

Private Money to Grow Green Economy?<\/h4>\n

Using private money to accomplish something for the public good isn\u2019t unusual in NH. \u00a0In fact, it tends to be the preferred way to run things, as opposed to large-scale government intervention. \u00a0Even so, this was a particularly brutal budget year for New Hampshire. \u00a0The Legislature cut deeply into core health care services, and reduced the University System\u2019s funding by 45 percent.<\/p>\n

\"\"<\/a>

NHPR<\/p>

Republican State Senator Jeb Bradley<\/p><\/div>\n

Republican Senate Majority Leader Jeb Bradley says given the cuts the state\u2019s made to services, he\u2019s not convinced Green Launching Pad would merit state funding.<\/p>\n

\u201cI mean, you talk of a hundred jobs created out of, probably roughly 720,000 jobs in New Hampshire right now. \u00a0While the hundred jobs are important, in the overall scheme of things, it\u2019s pretty small,\u201d Bradley said.<\/p>\n

The way Bradley sees it, the state\u2019s already doing a good job of attracting all kinds of business\u2014including green businesses. \u00a0Rather than creating new policies, and dumping new money into subsidizing green tech, Bradley thinks the legislature needs to tweak the renewable portfolio standard law that\u2019s already on the books, requiring utilities to purchase a certain amount of renewable energy, and in turn, creating a market for renewable resources.<\/p>\n

\u201cThe advantages, right now in the law, go to anyone who creates new power. \u00a0Well, what we\u2019re seeing right now is that, in particular, the wood plants are barely hanging on, so they should be given the same incentives that new developers would get. \u00a0And I think that would help them in the longer run be able to survive.\u201d<\/p>\n

Green Job Growth Gap<\/h4>\n

Within this emerging industry is a notable growth disparity. Eight out of 10 of New Hampshire\u2019s green jobs are in Rockingham, Merrimack and Hillsborough counties. That southeastern part of the state dominates both clean tech and the overall green economy. \u00a0Granted, that\u2019s where most of the state\u2019s population lives. But still, the gap is extreme.<\/p>\n

According to the Brookings report, while Merrimack County saw 13 percent growth in green jobs between 2003 and 2010 \u00a0during the same period, Coos County only saw 2 percent growth. \u00a0And with the North Country\u2019s expansive forests and strong history with paper mills and other wood products work, using government policy to encourage existing biofuel plants might be a good, low-cost way to jump-start that lagging economy.<\/p>\n

It’s a philosophical question: Where can the government put its money to get the highest economic return\u2014and the most jobs?<\/p>\n

Bradley lays his feelings\u2014and those of his party\u2014down clearly, \u201cGovernment doesn\u2019t need to get overly involved in picking winners and losers.\u201d<\/p>\n

But Evan Bonchemps, who heads the struggling startup Holase, says that\u2019s exactly what the government\u2019s doing, anyway, by offering tax breaks to established companies who face higher tax burdens. \u201cAs an early-stage company, we cannot take advantage of these things, because we have no revenue, we have no products, and we have no income, so these tax breaks that they\u2019re talking about that will help grow businesses, for us, it\u2019s an invalid statement,\u201d Bonchemps said. \u201cI think they could use the funds they claim they\u2019re providing and\u2026create a fund for early-stage companies. \u00a0That would help.\u201d<\/p>\n

The questions swirling around New Hampshire\u2019s fledgling green economy point to a much larger, national problem, says Brookings Institution Senior Researcher Jonathan Rothwell.<\/p>\n

\u201cThere are 2.7 million [green] jobs nationally, but a much smaller number in these new, dynamic clean tech segments. \u00a0And partly, that\u2019s because we\u2019re not getting the project financing, the late-stage financing right. \u00a0And China has really overtaken us in this stage in recent years. \u00a0And they have plants that employ thousands of workers in making these sorts of technologies. \u00a0And that\u2019s partly because the labor costs are so much cheaper, but that\u2019s also partly because they\u2019ve managed to solve these financial problems.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

As the economy continues to limp along toward recovery, \u201cgreen jobs\u201d has become a buzz phrase, often tossed out as a panacea for our economic ails. But compared to the rest of the nation, New Hamphire\u2019s share of this sector doesn\u2019t exactly stand out. In a study released earlier this month, researchers found that from […]<\/p>\n","protected":false},"author":28,"featured_media":396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[51],"tags":[79,82,518,80,81,83,503,519,502,77],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/389"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/comments?post=389"}],"version-history":[{"count":35,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/389\/revisions"}],"predecessor-version":[{"id":14199,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/389\/revisions\/14199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media\/396"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media?parent=389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/categories?post=389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/tags?post=389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}