Some companies make green jobs out of regulations
Saturday, September 03, 2011
There were no new jobs created in the United States this past August. Unemployment stayed at 9.1 percent but we all know that California is worse at 12 percent unemployment.
You will hear President Obama talk about employment Thursday when he presents his plan for job creation to the American people. That is, if you are not watching the football game.
I think his speech is worth a listen, whether you are part of the 38 percent who approve of the job he's doing, or you're ...well, you can do the math. Whatever group you're in, you will hear him talk about green jobs.
A report released last month by the Environment California Research & Policy Center estimates there are 500,000 people in green jobs in California. What is a green job? Everyone would agree that a mechanic doing Smog Check is a green job. But is a mechanic working on a hybrid car a green job? I'd say no, since he would've worked on car repairs regardless of the engine type.
Instead, let's talk about jobs created by environmental regulations. In the past when I've covered these issues, I wrote how Clayton Industries in El Monte ramped up employment and sales to meet requirements of the new Smog Check for dynamometers. Yup, that's right, they made dynamometers - those machines that spin the car's wheels so tailpipe emissions can be measured.
"When Obama says `clean jobs' or `clean fuels,' hello? Southern California is in the center of that," said Martin Schlageter, campaign director of the L.A.-based nonprofit group Coalition for Clean Air.
In short, he's talking about regulations passed in 2008 under AB 32 that require the state to bring down greenhouse gas emissions to 1990 levels by 2020, and to 80 percent below that by 2050. The twin ports of Los Angeles and Long Beach create a boatload of air pollution, much of it blows our way. The ports launched a major pollution-reduction plan by requiring cleaner diesel trucks and ships. His group released a report in May on how AB 32 regulations are driving new products, adding new revenue to manufacturing, engineering and design companies and yes, adding new jobs.
Here are a few case studies from the report:
US Hybrid, in Torrance.The company's president told the news media in July 2010 it "tripled its revenue and doubled its workforce last year, despite the economic downturn."
VYCON, in Yorba Linda.It makes a new product that reduces emissions from crane equipment. "Since 2002, the company has produced flywheel technology that significantly reduces fuel usage and diesel and GHG emissions," the report states.
Clean Energy, in Seal Beach.It's the leading provider of compressed natural gas (CNG) and liquid natural gas (LNG) in North America. It also builds, operates and maintains public and private fueling stations for all sorts of fleet vehicles. And get this: 20 percent of the company's employees are right here in California. In the last five years, it has increased employees from 50 to over 800.
Community Fuels, in Encinitas and Stockton.It has been making biodiesel and creating jobs in the state since 2005.
Lotus Engineering, a global company based in Michigan, makes high-performance engines and vehicles. In an interview, engineer Stephen Bruekner cited government factors as a major reason why his business is growing.
Aerovironment, in Monrovia.Not in the report but a leader in innovative technologies; now manufacturing electric-vehicle charging stations, a critical piece of the emerging transportation landscape that includes all-electric cars (Nissan Leaf) and plug-in hybrids.
Finally, these regulations not only spur job creation today but will in the future. As long as companies know the regulations five years out - that creates stability.
For example, the California Air Resources Board approved a statewide rule in December 2008 that required retrofits to 1 million existing heavy-duty trucks on the road. When the CARB eased the regulation two years later in December 2010, about 150,000 diesel trucks were exempted from having to retrofit with filters that trap lung-damaging soot particles.
"ARB's rollback of this regulation risks causing cuts in the diesel filter industry, which employs 1,000 workers in California ..." the report concluded.
Cutting a regulation that's been in place for two years hurts those compliant industries and new, related ones. It's like a professor throwing out a test because some "D" students complained. It penalizes the "A" and "B" students - the ones who were prepared. And it hurts jobs.