Saturday, October 4, 2008

How to Green a State


by Phillip Torsrud

Wisconsin's economy is facing two dramatic transitions that must be faced if jobs and money are to be kept in our state.  The first transition is the shift to a global economy, which has already resulted in a reduction in manufacturing jobs in states like Wisconsin nation wide.  The second is the shift from an oil based economy to alternative forms of energy , which our leaders in Washington have not made the commitment to, despite $4.00 a gallon gas.  Wisconsin cannot afford to wait for Washington to make this transition for us.  The lobbyists have a different agenda.  However, the change from an oil based economy is a blessing in that Wisconsin can recoup many of the manufacturing jobs lost to globalization.

To keep and attract industries to Wisconsin, simply giving them money or a tax break won't cut it.  A commitment to a deeper relationship must be made and State governments must consolidate all the buying power of government to negotiate a better deal for taxpayers and lure companies to Wisconsin.  An example would be in auto manufacturing.  If the State could negotiate on behalf of all cities, counties and municipalities, as well as the State agencies that use vehicles, you could parlay that purchasing power into a contract requiring those vehicles to be built in Wisconsin.  Therefore, the first step in making the transition to becoming a competitive state in a global economy is to consolidate the purchasing power of our many layers of government into one centralized purchasing authority.

The next step is to understand that there are leaders in industries who believe in the importance of shifting away from an oil based economy,  because of environmental concerns as well as economic concerns.  T. Boone Pickens makes a valid point that when we buy gas at the pump, we are sending money overseas that will never come back.  Continuing to consume this amount of gasoline  is the equivalent to building hundreds of bridges to nowhere.  How then can the State provide the incentive to build the infrastructure to keep those dollars in Wisconsin?

Carlos Ghosn, who runs Renault-Nissan declared, "We must have zero-emission vehicles - nothing else will prevent the world from exploding."  Nissan has promised to launch an electric car by 2010 that will have the performance of a V6 and a range of 100 miles.  It will be capable of  an 80% recharge in an hour.  Clearly, Renault-Nissan is serious about making the change, and if Wisconsin is serious, they would make a great partner for our State.

If Renault-Nissan knows that if they built a plant in Wisconsin, every government vehicle would be purchased out of the plant, that's a huge incentive.  Why shouldn't all the tax dollars spent on government vehicles stay in Wisconsin, both in their production and energy consumption?  Furthermore, a law could be passed requiring all taxis and city and school buses purchased after 2010 be electric.  With that commitment, Mr. Ghosn would be interested in building a plant in Wisconsin.

From there, you have the trickle down effect that allows the transition away from an oil based economy.  Once the commitment to build an electric car plant is made, you have the incentive to begin training a workforce capable of manufacturing these specific products.  Once other industries see Wisconsin training to transition their economy to alternative fuel sources, investment will follow.  The incentive will then exist to build the infrastructure necessary to produce more electricity.  Wisconsin's beloved cows produce methane, and more can be done there.  Wind, solar and nuclear power will see growth.  We will cut carbon emissions and keep all those energy dollars in Wisconsin.  It will be an economic boom.  It all starts with taking that first step and bringing a new industry that can change the dynamic of our entire State's economy.

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