The Impact of Public and Private Partnerships on Supporting Renewable Energy A study and analysis of the Recovery and Reinvestment Acts contribution to a local government facility. A research project submitted to the Urban Studies and Planning Program Senior Sequence Class of 2009-2010 February 26th 2010 Hyacinthe A. Coulibaly University of California, San Diego Urban Studies and Planning Program hacoulib@ucsd.edu Abstract The Recovery and Reinvestment Act is important to the foundation for the ongoing partner between public and private agencies to promote renewable solar energy. This case study aims to evaluate the Recovery and Reinvestment Acts contribution to renewable solar energy on (ASW NAVFAC) Anti-Submarine Warfare Naval Facilities Engineering Command Southwest base, a local government facility. This study exposes an essential partnership between public and private entities in San Diego, responsible for creating renewable energy incentives that promote efforts to reduce America’s dependency on foreign oil. The Recovery and Reinvestment Act has effectively actualized tax credit programs, contributed to the growth of San Diego’s green industry, and allowed for the diversification of essential energy resources. This study proves that the Recovery and Reinvestment Act has provided job creation in both public and private industries as well as sparked new economic benefits for sustainable energy systems that will catalyze technological improvements for solar electric energy systems in the future. Key words: Recovery and Reinvestment Act, public and private partnerships, future investments, green industry 1 Introduction The Recovery and Reinvestment Act (RRA) has provided a new way for America to tap into a renewable alternative power supply. It is increasingly clear that the United States does not posses t capabilities of self producing substantial amounts of clean energy. The (RRA) allows for clean renewable energy to reduce America’s dependency on foreign oil. Solar energy resources inevitably must contain renewable initiatives to take the place of Americas ‘status quo’, outdated power infrastructure. While the mass scale implementation of solar electric systems would diminish the demand for obsolete fossil-fuel plants, the (RRA) sparks new public and private collaboration enabling America to evolve into an environmentally sustainable nation free from dependency on another nation’s energy resource. A solar photovoltaic (PV) electric system can supply residential, commercial and industrial units with safe, renewable electricity, to save money and offset the increased demand for fossil fuels. (ASW NAVFAC) Anti-Submarine Warfare Naval Facilities Engineering Command Southwest base is located on a government facility that I extensively examined. At the Navy submarine base there were various opportunities provided to survey multiple buildings, exclusively building fifty located at the North West end of the submarine base in the appendix in (Figure 1). The private binary agencies affiliated with this multi million dollar project are Synergy Electric and Borrego Solar Inc. The government profoundly relied on outside contractors for the primary labor and construction of solar (PV) panels. These two private companies provide similar installation; their initiatives were aimed at improving new roofs and implementing renewable solar equipment in order to provide an alternative power supply. The materials and equipment were transferred from various installations to assist in the construction costs. This paper shows how renewable solar systems have been promoted to provide The Impact of Public and Private Partnerships on Supporting Renewable Energy 2 the private industries with a spark of collaboration improving government facilities. This will demonstrate the beneficial uses that solar energy can have when substantive programs are implemented. This study is the embodiment of collective knowledge contributing to the literature on Incentives for Renewable Energy and the ongoing partnership with those public and private agencies that have been developed to promote sustainable solar energy. The (RRA) purpose is to “Spur economic activity and invest in long-term economic growth” (Recovery and Reinvestment Act, 2009). (RRA) funds would effectively promote renewable energy projects that are currently being utilized for residential, commercial, and industry facilities to remove America’s reliance on fossil fuels. The acquisition assistance awards the process that invokes direct participation and a capitalistic drive for cost-shared research that enticed the federal government to offer tax incentives to promote businesses economic development. These tax incentives are instrumental in evolving reliable energy efficient products to a consumer base committed to (PV) energy. Resources regarding these opportunities are established through tax incentive programs. Last year there were two billion dollars worth of federal funding dollars awarded to various industries, both public and private from the office of energy efficiency and renewable energy (United States Department of Labor, 2009). Competitive grants are the most common type of financial assistance that is awarded by the energy efficiency and renewable energy commission (Recovery and Reinvestment Act, 2009). Competitive grants are an important reason explaining the financial assistance process. Through federal government funding for energy efficiency and renewable energy financial assistance awards are authorized by the U.S. Congressional appropriations committee (Recovery and Reinvestment Act, 2009). After the budget is determined by the Department of Energy they will eventually ensure all funds are available for the energy The Impact of Public and Private Partnerships on Supporting Renewable Energy 3 efficiency and renewable energy financial awards, after such time the funds are disbursed (Recovery and Reinvestment Act, 2009). In exploring the (RRA) contributions to sustainable solar energy at a local government facility I found a crucial relationship between public policy and the implementation of solar energy. I found that remaining environmentally sustainable is built on political will and a forceful departure from fossil fuels. While this study seeks to understand the fundamental relationship derived from public policy, the federal government provides many subsidies for green solar industries. The procurement of grants as well as tax incentives by the state and the federal government are just one of the ways funds are disbursed to promote renewable solar energy. A decentralized solar electric system can supply most classifications of units with safe, renewable electricity, to halt our reliance on fossil fuels and to ensure America’s power infrastructure for decades to come. The Recovery and Reinvestment Acts impression of promoting renewable solar energy The pursuit of sustainable infrastructure has many physical, social, and political dimensions. There are both physical and political constraints in producing adequate solar power to eliminate America’s dependence on foreign energy. The problem cannot be solved only by enacting economic tax incentives. A financial initiative alone cannot effectively provide a breakthrough in renewable energy businesses. There are various incentives that are not financially driven that have voluminous effects on solar renewable energy technologies. The Office of Energy Efficiency and Renewable Energy is currently building technologies as well as implementing essential resources to establish financial incentives for energy efficiency purposes (Office of Energy Efficiency and Renewable Energy, 2009). “The California State The Impact of Public and Private Partnerships on Supporting Renewable Energy 4 Energy Sector Partnership and provides training grants that are designed to teach workers the skills required in emerging industries, including energy efficiency and renewable energy. This set of green grants is the third awarded used. (The U.S. Department of Labor, 2009). “Less than a month into 2010, the department's investment in this growing area of the job marketplace is close to the 440 million dollar mark. ETA News Release: 01/20/2010” (United States Department of Labor, 2010). By tapping into an alternative power supply the State Energy Sector is contributed to the growth of San Diego’s green industries, and allowing for the diversification of essential energy resources. The case study at (ASW NAVFAC) Anti-Submarine Warfare Naval Facilities Engineering Command Southwest addresses a tremendously evolving need across the country for demand of renewable power resource. The Recovery and Reinvestment Acts impact in promoting sustainable solar energy at the local government facility “addressed the need for new and improved roofs, but in addition to simultaneously provide a vehicle for tapping into alternative power supply” (Navy News Stand 2009). The (RRA) provides a way for the Department of Defense to form private partnerships with organizations that develop renewable solar energy. (RRA) Federally funded dollars are creating jobs for the hard hit construction industry, public organizations subcontract labor to various companies. Solar (PV) panels bear a thirty year lifetime that generate solar electricity and produce an added economic investment that promotes jobs as well as diverse energy. Renewable energy systems like solar energy provided an alluring financial and environmental savings for (ASW) base. Based upon the evidence that the (RRA) has created an environmental policy that has contributed to the effective implementation of solar systems sprawling financial benefits as well as increasing the regions economic diversity. There remain numerous dilemmas and barriers for the The Impact of Public and Private Partnerships on Supporting Renewable Energy 5 (RRA). One dilemma is the ongoing speculation about the actual contribution the (RRA) has on the growth of San Diego’s green industries. According to the San Diego based company Borrego Solar Inc, during the past five years the private solar installation company recorded at least “a hundred percent revenue growth each year for five consecutive years” (Borrego Solar Inc, 2009) This public and private relationship allowed for the diversification of essential energy resources, and the incentive for the Department of Defense to implement solar panels. The (RRA) provides renewable energy tax credits, to motivate economic growth which has incentivized solar energy. "These grants will help workers gain access to good jobs, while supporting the sort of statewide energy efficiency strategies that play a crucial role in building the green economy of the 21st century," Secretary Solis (United States Department of Labor, 2009). The Department of Defense is continuing national effort to address environmental issues in the San Diego region by joining with a local private organization to provide an alternative power supply. The current literature on the incentives of promoting renewable energy are not concerned whether sustainable efforts can be implemented, but are interested in how sustainable programs are being enforced, and if the (RRA) can seriously reduce America’s dependency on foreign oil. Worthwhile effects in the literature are categorized as contributing to the realization of solar units on a mass scale, which increases research in sustainable technologies as well as decreases the overall price for (PV) systems (Everett, 2005). The way in which sustainable technologies stimulate development will furthermore determine the caliber to which solar programs reduce barriers to implement installments. It is increasingly clear that there is a crisis in the region of southern California, which is the inability to self produce reliable sustainable energy. The (RRA) includes renewable initiatives to take the place of an outdated local and regional power infrastructure. It is predicted that infrastructure The Impact of Public and Private Partnerships on Supporting Renewable Energy 6 needs in the United States have to be extended by fifty percent in forty years in order for the United States to spur economic growth (Connecting to the Grid, 2005). The partnering experience between public and private spheres is allowing San Diego to be at the forefront in attaining the capacity to yield significant amounts of renewable energy sources from (PV) systems. Public and Private Interconnectivity This study demonstrates how the federal government as well as many local municipalities have been able to form lucrative partnership to utilize the (RRA), and employ theories found within the academic world to help solve real world climate change problems in the San Diego. Policy makers have provided the foundation in developing a policy that explores new ways to address key energy needs that surrounds the United States. The (RRA) promotes decentralized economic interconnection that furthers the federal government’s administration policy of modernizing our nation’s electric grid. Utility interconnections can be accomplished by providing interconnectivity between generators, utilities, and energy station to maximize the flow to all grids. (United States Department of Energy’s Office of Energy Efficiency and Renewable Energy, 2009) (ASW) Anti-submarine Warfare base is energizing San Diego’s local economy. This case study shows how the (RRA) has promoted clean renewable infrastructures that demonstrate green environmentally friendly planning methods for future urban growth. These techniques that are being implemented in federal workplaces will soon be implemented in many municipalities across the county; most must be changed to allow excess electricity to run back into San Diego’s power grid. The ongoing literature highlights the importance of interdisciplinary practices that need to be brought together to help the public realize the undesirable effects of Americas current power The Impact of Public and Private Partnerships on Supporting Renewable Energy 7 infrastructure (Database of State Incentives for Renewable Efficiency, 2009). Fossil fuels have been used as a source of energy over two hundred years. The Industrial Revolution gave rise to the mass usage of fossil fuels because of those fuels are relatively easy to use and are capable of generating cheap energy. Fossil fuels only require simple direct combustion to generate a large amount of energy. There are many problems with fossil fuels; the most prevalent are their environmental impacts (U.S. Energy Information Administration, 2006). Their excavation from the ground no only significantly alters the environment, but fossil fuels continued use and combustion leads to an extensive amount of air pollution. Scientists from the (EPA) believe that global warming is caused by the greenhouse effect, where greenhouse gases are trapped by the ozone layer (EPA, 2009). The greenhouse effect can be described as an amalgamation of carbon dioxide in our earth's atmosphere. The potential dangers of global warming are the melting of polar ice caps at the north and south poles. There is supposed to be a relatively even recycling of carbon dioxide and oxygen, and the first step to reversing that uneven trend would be to create sustainable energy systems (U.S. Energy Information Administration, 2006). The (RRA) targets buildings that produce a disproportionate amount of carbon dioxide in the air, that are responsible for the unbalance that will eventually slowly destroy human settlements. Wind energy is another way the (RRA) uses clean energy to produced renewable (PV) energy systems. Fossil fuels are excellent sources of energy for transportation needs; however they are not a suitable resource for the future. Coal power plants account for sixty percent of our America’s energy and fifty two percent of the world's demand (U.S. Energy Information Administration, 2006). Coal power plants carbon and create energy that is then transferred as electricity to power homes in new urban areas. Incentives examined by the (RRA) are only concerned whether sustainable efforts are The Impact of Public and Private Partnerships on Supporting Renewable Energy 8 implemented, the prevailing government is having the desirable effect of promoting a renewable power infrastructure (Case Studies of Interconnection Barriers and their Impact on Distributed Power Projects, 2000). A renewable power infrastructure contributes to a realization that collaboration with public and private organizations are partnering in order to increase research in sustainable technologies, as well as a decrease in overall price for (PV) solar electric systems (Everett, 2005). The production incentives from the (RRA) provide cash payments based on the number of kilowatt-hours (kWh) the renewable energy system generates. To ensure project quality, and customer satisfaction payments are based on a system’s actual performance that are generally more effective than payments based on a system’s rated capacity (Case Studies of Interconnection Barriers and their Impact on Distributed Power Projects, 2000). The (RRA) has concurrently produced production incentives that are known as performance based incentives in order to supply power to seven other buildings at (ASW) base and send excess electricity back into the power grid. Polluted air particles can be deadly; they are the most common byproduct from the burning of fossil fuels. It is predicted that future infrastructure needs in the United States have to be extended by fifty percent in forty years in order increase economic activity. The University of California San Diego is at the forefront in attaining the capacity to yield considerable amounts of energy from renewable sources. Most recently, Borrego installed a 1.2-megawatt solar (PV) electric system at The University of California San Diego. (RRA) is requires all organizations to work together to rebuild our great nation. My project takes place at the (ASW) Naval Mine and Anti-submarine Warfare base, this demonstrates how the Department of Defense has collaborated with two powerful solar electric companies in order to revitalize San Diego’s local economy and create The Impact of Public and Private Partnerships on Supporting Renewable Energy 9 green jobs. Until the United States capitalizes on the potential renewable solar energy creates, the United States with continue to place orders for oil barrels in Saudi Arabia. (World Resources Institute, 2005) A partnership uniting the Department of Defense, Borrego Solar, and Synergy Electric “The sales team has been very successful in signing contracts for the installation, design and construction of rooftop solar systems for homes, businesses and government clients, and noted the greening of construction during the past few years. -Mike Hall, president of Borrego Solar Systems 2008 Borrego Solar Inc. revenues have grown 340.9% from 2005-2007 (Borrego Solar Systems, 2008). These facts are exacerbated by the present opportunity to install solar systems for homes, businesses and government clients. The (RRA) is providing essential infrastructure for tomorrow’s energy economy. The Department of Defense and Borrego Solar have created jobs while remaining environmental friendly to pursue local green growth opportunities. Solar electricity has had the capacity to supply housing units with safe, sustainable electricity, to save money and combat energy shortages. (PV) solar panels are a suitable investment because they have a thirty year lifetime that enables solar electric systems to be reliable systems for future economic growth. Rebate programs covered by the (RRA) have attracted commercial and private investors that promote solar energy solutions, and contribute to reducing carbon San Diego’s carbon emissions. Depending on the size, a business usually qualifies for an Expected Performance Based Buy down, or a Performance Based Incentive rebate. These are rebates that cover twenty to thirty percent of a solar unit’s price (Borrego Solar Inc, 2009). A solar (PV) power generated system completed on top of building fifty typically would yields a return of investment between 7%-11% The Impact of Public and Private Partnerships on Supporting Renewable Energy 10 as forecast of utility rates increase compensation rate will also increase for solar renewable energy. The exact payback period is the amalgamation of a unit’s electrical power management, and the total cost of a (PV) powered system. The partnership between public and private organizations should concern every San Dieagan because the (RRA) is effectively promoting an up-to-date utility power infrastructure supported by both local green businesses. A discussion has been raised on utility support recommendations and incentives that promote utility interconnectivity (Everett, 2005). The (RRA) has sparked a new academic debate about San Diego’s power infrastructure, because the (RRA) will contribute to the production of a new renewable power grid. The (RRA) supplies power to outdated buildings while remaining environmental friendly to pursue local green growth opportunities for local communities. The (PV) solar electricity panels have the capacity to supply housing units with safe, sustainable electricity, to combat energy shortages. (PV) solar panels have a thirty year lifetime warranty that enables solar electric systems to be worthwhile investments for the future (Borrego Solar, 2009). The Environmental Protection Agency (EPA) affirms, by "Using solar energy to replace the use of traditional fossil fuel energy sources can prevent the release of pollutants into the atmosphere."(EPA, 2009) The (EPA) provides grants to clean up and enact recovery, they play an instrumental role in regulating the green business sectors funding for sustainable infrastructure. At the state level, the California Energy Commission and the California Public Utilities Commission administered the programs that provide rebates to allow the Department of Defense to pay for thirty to thirty five percent of the installation cost of (PV) solar panels. The current literature on fossil fuel energy demonstrates how that by using cleaner energy resources, it will create a conducive clean urban environment that fosters job creation and added energy to California’s The Impact of Public and Private Partnerships on Supporting Renewable Energy 11 electrical grid (California Department of Public Utilities, 2009) By following this model, there will inevitably be a decrease in usage of fossil fuel plants by installing solar (PV) power systems. Borrego Solar and Synergy Electric Inc. are the private companies that have partnered with public institutions to support renewable energy resources by creating local jobs and opportunities, and literally energizing the local energy power infrastructure. Since the utility power infrastructure has not yet been set up to support a national initiative, the (RRA) has replaced the ambitions of local governments to supply San Diego with clean renewable energy. “Synergy Electric Company, Inc., of Santee, Calif., a 4.16 million dollar (RRA) funded contract on June 29th 2009, to install roof mounted solar photovoltaic power systems (SPVPS) on seven buildings at Naval Base Point Loma in San Diego” (Navy News Stand, 2009). This article address the need for future diversification of energy resources in America by improved the insulation on roofs, and installing roof mounted solar (PV) power systems. Slowly but surely the Department of Defense is contributing to the reduction of America's carbon footprint. Research Design/ Methods Research in this study is designed to answer two primary questions: 1) Has the (RRA) Recovery and Reinvestment act built or strengthened partnerships dedicated to building renewable energy resources? and 2) If so how have public and private partnerships impacted the strategic planning and implementation efforts in administering renewable (PV) solar energy. To answer my first question my research focuses on the (RRA) ability to educate, train and support renewable services that promote the labor of skilled workers to attainment a career pathway into employment in green industries. This allows for an accurate assessment of the (RRA) impact on renewable energy systems. Interviews and written testimonials helped in exploring the important aspect that The Impact of Public and Private Partnerships on Supporting Renewable Energy 12 target recovery in the green industry. An interview with Halston Rove from Borrego Solar Inc, and Lonnie Thorpe from Synergy Inc helped show the impacts of partnerships other agencies that have received (RRA) funds. “For every thirty six jobs that are directly supported by the military, the gross regional product (GRP) rises by one million” (U.S Department of Labor, 2009). Synergy Electric has a 4.16 million dollar contract at (ASW) Naval Base Point Loma Naval Mine Antisubmarine Warfare base. The conceptual argument being dealt with in this study of the ongoing transform from an outdated power system to support the implementing of a statewide renewable energy grid in order to reduce America's carbon footprint. This study has looked at the development of (PV) solar electric systems and analyzed the extent to which economic and environmental goals are being impacted by public and private corporations. In order to measure the impact of the impact of the (RRA), the many economic opportunities were assessed. The (EPA) as well as the California Energy Commission, and the California Public Utilities Commission are just a few agencies that have created a partnership with public and private companies in order to partner and build a clean energy workforce. The social partnership between public and private corporations will ensure that (PV) systems will continue to employ and target green growth opportunities. (PV) systems can explicitly enhance the transfer of knowledge amongst the science community and the cities government to create an improved urban environment. Policies that promote solar energy are directly associated with environmental policy initiatives that are being enacted because of ozone layer depletion. There are many economic benefits involved when actualizing sustainable energy system in urban enters. This case study demonstrates how to institute detailed change to create effective environmental policy initiatives. The (RRA) enables public and private entities to support a lucrative untapped environmental The Impact of Public and Private Partnerships on Supporting Renewable Energy 13 policy that promotes sustainable energy system and allows for positive economic impacts within the city of San Diego. Borrego Solar calculates the return of investments by how much an individual business can save over a thirty year life time. “Homeowners can claim a two thousand dollar federal tax credit, and businesses can claim a thirty percent tax credit the first year” (Borrego Solar Inc 2009). While the interest of the growth in the green industry is greatly benefiting local firms, the (RRA) has allowed for the Department of Defense to create jobs. “The military's presence further creates numerous secondary jobs resulting from not only contracts with local private sector firms, but the dollars resulting from spending by military personnel and base expenditures.”(The United States Department of Labor, 2010) Rebate programs attract commercial and private investors that want to invest in solar (PV) energy systems, and contribute to reducing carbon emissions. Rebates were incentivized to cover twenty to thirty percent of a solar unit’s price. The solar generated system completed on top of building fifty at (ASW) base (Figure 1) on the left shows the location of the solar energy systems that typically yields a return of investment between seven to eleven percent as forecasted of the utility rates. (Figure 2) :( ASW) Base The Impact of Public and Private Partnerships on Supporting Renewable Energy 14 Compensation rates will also increase the demand for new renewable solar energy systems. The exact payback period is the amalgamation of a units’ electrical management, and the cost of the system. Infrastructure changes will aid in San Diego’s accessibility to produce pure local green energy incentives. Moreover the (RRA) tax initiatives have the potential to create more jobs and increase the city of San Diego’s revenue while adopting a sustainable methodology for future urban planning projects. (PV) solar electric systems debilitate energy demand on existent fossilfuel plants, and in turn diminish CO2 pollutants from spoiling the local environment. Solar panels are contributing significantly to the University of California at San Diego’s comprehensive sustainable energy objective. “The university has committed to becoming climate neutral by 2020. Thus far, UC San Diego has reduced emissions by twenty percent since 2006”. (The Sustainable Endowments Institute). When solar energy is utilized it aids in diminishing local emissions as well as mitigating local power demands. Infrastructure changes will aide in developing the region’s accessibility to pure locally produced green energy. The (RRA) is an ongoing initiative that has created jobs and surplus revenues while advocating for a sustainable local power infrastructure. The existent economic downturn has exacerbated presented favorable circumstances to pursue local green growth systems because incentives are more affordable than ever. America’s lack of innovation has been the reason why America’s local, and regional economies have seen a dramatic decline in revenues”. (The Sustainable Endowments Institute, 2008) The case for new infrastructure is not only a necessity for future generations to solve, but now a matter of this generation to continue to try and solve climate issues. The Impact of Public and Private Partnerships on Supporting Renewable Energy 15 Findings at Navy base Anti Submarine Warfare (ASW) Navy base (ASW) Anti Submarine Warfare base is located in Point Loma San Diego on harbor drive. In order to examine the environmental and economic benefits of solar (PV) energy a top secret clearance was obtained to work with Synergy Inc at building fifty (Figure 2) below. This study highlights the impact the (RRA) has had on both environmental and economic agencies at the (ASW) base. I had the pleasure of working with some of the brightest of individuals in the solar construction industry. They mainly facilitated the installing of renewable solar (Figure 1) Building 50 at (ASW) base systems. I extensively interview two projects managers at Synergy Inc, and Borrego Solar Inc. These interviews were done with professional persons with knowledgeable information on the environmental and economic benefits of implementing solar (PV) energy. This was achieved in order to understand the different perspectives that came together to reach a policy consensus and to support a renewable energy partnership between public and private organizations. The first person I interviewed was Lonnie Thorpe, an individual who works within the field of installing renewable The Impact of Public and Private Partnerships on Supporting Renewable Energy 16 solar (PV) energy systems. He is directly responsible for installing and implementing renewable (PV) solar systems at (ASW) base. Interviews with Lonnie Thorpe contributed significantly, information gathered showed how the construction industry approached implementing sustainable (PV) energy systems. The (RRA) through various incentive strategies, has contributed to the collaboration to support renewable energy construction that is essential to the development of renewable energy utilities as well as actualizing a national renewable energy power grid. The analysis of primary documents and transcripts provided by Synergy and Borrego Solar Inc supports the claim by the (RRA), playing a pivotal role in allowing for the collaboration between public and private organizations to help support renewable energy systems. The aforementioned transcripts were loaded with green growth opportunities encompassing a positive impact on San Diego’s renewable solar energy institutional infrastructure. Scholars are beginning to seek more integrated approaches to environmental policy problem solving to allow sustainability science which is an academic-led effort, to adapt to the changes in environmental policy. The next I interviewed another individual who worked in the field of installing (PV) systems at Borrego Solar Inc, his name is Halston Rove, the interview provided insight on the role of an intermediary and how private organizations coordinate and connect with customers and governmental agencies at the local level. These agencies have an obligation to reduce CO2 and other harmful emissions that allows for the profound reduction of America's carbon footprint. This contributed to the global initiative to significantly reducing CO2. Data from the Energy Policy Initiatives Center (EPIC) shows that considerable amounts of energy as well as tons of greenhouse polluting gasses were mitigated because the (RRA) provided an alternative, renewable power supply. (Energy Policy Initiatives Center, 2009) The Impact of Public and Private Partnerships on Supporting Renewable Energy 17 In such cases where the connection channels have not been provided, it is safe to say that implementation of (PV) solar systems have become too costly (Energy Policy Initiatives Center, 2009). The economic value of the total incentive programs being implemented should stimulate the installation of a grid, but this is severely compromised when a grid has no economic advantages. In both case studies examined there was substantial evidence indicating lower operating cost were mostly associated with positive economic external factors that contribute to the total amount of a renewable solar systems (Energy Policy Initiatives Center, 2009). If not for the American Reinvestment and Recovery Act It is extensively recognized that the (RRA) has significantly contributed to the greening of many local buildings that will heavily devote to a large portion of energy to the regional power grid. For example, “US buildings alone are responsible for more CO2 emissions than those of any other entire country in the world except China.” (Levenstein, 2001) These findings support the concept that global pollution is influencing the amount of carbon emitted in the ozone layer, and the support the overall promotion of a thriving green industry. There are currently eleven state buy-down programs for renewable energy technologies, all of which have been initiated within the past several years. Nearly all of these programs are funded by public incentives from the (RRA), these funds are administered by the state’s energy office, and third-party fund administrator, or individual utilities (Distributed Energy Interconnection Procedures, 2004). All of the current buydown programs fund (PV) installations, with several states targeting (PV) exclusively (Distributed Energy Interconnection Procedures, 2004). About half of the (RRA) programs support wind technology development, and third solar energy systems (Recovery and Reinvestment Act, 2009). Few programs include solar thermal The Impact of Public and Private Partnerships on Supporting Renewable Energy 18 systems and fuel cells. Nearly all of the programs for the (RRA) are available to residents and businesses (Recovery and Reinvestment Act, 2009). In addition to these sectors, some states extend eligibility to government entities, institutions, and nonprofits. These incentives vary in buy back price ranges, from a dollar per kilowatt to six dollars per kilowatt, with most states providing tax incentive for (PV) systems. Technical performance requirements vary widely amongst various programs. In some cases, the initial cost had a few requirements but later added quality assurance provisions we necessary for systems that were improperly installed. Individual agencies, and more often, local and regional governments are leading the way in developing innovative environmental policies and programs that seek to find more integrative ways to manage complex environmental issues as a way to create more sustainable communities” (Rosenbaum 2002). The use of a pre-approved contractors and pre-approved equipment must also be monitoring and mandated in some states. A couple of the buy-down programs initiated within the past year employed performance based incentives, a few of these grants we implemented at (ASW) base. All of the special rules and regulations differentiate by state, and must be compressively enforced at the federal level. Infrastructure changes aided the Department of Defenses way of procuring San Diego’s locally produced (PV) green energy. Moreover the (RRA) tax initiatives have created jobs and additional electrical revenue. By adopting a sustainable methodology for future regional planning projects (PV) solar electric systems halt the increased demand on existent fossil-fuel plants for more energy. (PV) solar panels are contributing significantly to the government’s comprehensive sustainable energy objective. (PV) renewable energy projects are currently being utilized for residential, commercial, and industry facilities reducing the reliance on fossil fuels. The Impact of Public and Private Partnerships on Supporting Renewable Energy 19 The acquisition and financial assistance award process invokes direct participation from local business and residents for a cost-shared grant issued by the federal government to offer tax incentives, and promote renewable businesses developments. These tax incentives are instrumental to evolving a reliable energy efficient product to a consumer base committed to solar energy. Resources regarding these opportunities are established through tax incentive programs (Energy Policy Initiatives Center, 2009). Last year there were two billion dollars worth of federal funding awarded to various green industries, both public and private. (The Office of Energy Efficiency and Renewable Energy, 2009). Technology has improved sufficiently that (PV) solar cells are now a feasible option for every private and public building, and to providing an alternative power source in case of power failures. The sun is an enormous source of energy, giving the earth every minute, enough energy to supply the earth’s power needs for a year (Model Net Metering and Interconnection Standards for Renewable Energy, 2006). Photovoltaic cells convert fifteen to twenty percent of the sun’s energy to electricity, while newer, cheaper materials such as silicon and gallium arsenide only convert eight percent of the sun’s energy. The fact still remains that the manufacturing costs of (PV) cells are still relatively high, compared side by side, solar power is five times more expensive than power derived from fossil fuels (The Office of Energy Efficiency and Renewable Energy, 2009). (PV) technology HAS changed rapidly, and new research has lead to significant cost reductions, predicted to be completed within a year or two (The National Electrical Code Photovoltaic Power Systems, 2005). These advances could be beneficial to making cheaper versions of (PV) cells, and would create less expensive flexible green technologies that are more reliable and efficient. (PV) technology is an area that is always changing at an extremely high rate. There is an increasing race between the more efficient, but expensive, technology organization and a variety of The Impact of Public and Private Partnerships on Supporting Renewable Energy 20 cheaper, less efficient technologies. Every week hopeful entrepreneurs and scientists collaborate in the public and private sectors to attempt to achieve a break-through, and to access federal stimulus funds. Public and private utility support and cooperation further complicated by the rapidly growing field of nanotechnology, which is already being applied to (PV) will soon enable more cohesive cooperation. Utility support and cooperation can greatly enhance the effectiveness for buy down grid connected technologies, and are critical to ensuring that a quick and easy interconnection process occurs as smoothly as possible. It was found in cases where utilities imposed additional testing and administrative obstacles, installation of photovoltaic systems and buy down participation were sluggish at best (Model Interconnection Procedures and Agreement for Small Distributed Generation Resources, 2004). The implementation of a decentralized solar electric system diminishes the overall demand for existing fossil-fuel plants, enabling the region of Southern California to practice economic vitality while remaining environmentally sustainable. “The prevailing argument is that sustainable patterns persist in the mist of an economic crisis” (Rosenbaum 2002). Solar electric systems can supply residential, commercial and industrial units with safe, renewable electricity, to save money and offset the increased demand for fossil fuels. In order to ensure that (PV) systems are a credible investment for the future a building must perform at peak energy performance while remaining lowest in overall cost (Model Interconnection Procedures and Agreement for Small Distributed Generation Resources, 2004). The two companies Synergy Electric and Borrego Solar share similar practices implementing solar efficiency equipment. Materials and equipment were transferred from various installations to assist in the construction costs. Current building technologies are useful sources in pinpointing financial incentives to establish energy efficiency (The Office of Energy Efficiency and Renewable Energy, The Impact of Public and Private Partnerships on Supporting Renewable Energy 21 2009). The amount of carbon produced is much less than that produced by fossil fueled power plants, a solar project is expected to turn the building into an instant profit while emitting zero pollution. Billions of dollars have been spent on wind and solar projects. Laws must force electric utility companies, and ultimately, all electricity users to pay higher rates for businesses and individuals to join and generate solar energy and feed it back into the grid. With the guarantee of revenue from the (RRA), solar (PV) panels can become a common site on houses. New windmills should be the typical sight in rural areas, especially in the windier north. Financial incentives are an important tool that can help individuals and businesses overcome the barrier of high initial equipment costs for (PV) technology. To be effective, (RRA) incentives should be considered as one component in a comprehensive approach to creating a reliable sustainable national market. “Without other supportive policies, including education and outreach programs, a standardized and quick interconnection process for grid-connected systems, and complementary financial incentives such as tax incentives, net metering and low-interest financing, the effectiveness of financial incentive programs in stimulating market development will be compromised.”(Planning for environment, economy and community, 2009) The (RRA) addresses the needs and challenging practices and policies, aimed at establishing partnerships and alliances with program administrators, and policy advocates. Equipment dealers and installers could lend to private institutions, and public utilities commissions, and contribute to the financing and installation process. The social partnership between science and society, specifically the transfer of knowledge amongst the science community to the urban build environment is a relevant aspect, in explaining why economic and environmental policies are being implemented at a high rate in San Diego. These policies promote solar (PV) energy systems that are directly associated with environmental policy initiatives being The Impact of Public and Private Partnerships on Supporting Renewable Energy 22 enacted because of ozone layer depletion and the passing of the (RRA). There are many economic benefits involved when actualizing sustainable energy system in urban epicenters. Research points to case studies that demonstrate how to institute detailed change in environmental policy initiatives. Rebate programs attract commercial and private investors that want to invest in solar energy solutions, and contribute to reducing America’s carbon footprint. The solar generated system completed on top of building fifty typically yields a return of investment between seven to eleven percent as forecast of utility rates will also increase solar energy payback. Exact payback period is the amalgamation of the (PV) unit’s cost of the system and electrical management. Infrastructure changes will aid in procuring San Diego’s accessibility to pure locally produced green energy. Moreover the (RRA) tax initiatives have created jobs and city revenue. Solar electric systems installed at (ASW) base lowers America's carbon footprint by using renewable solar energy. (PV) solar panels contribute significantly to the Department of Defenses comprehensive sustainable energy objective. Competitive grants are the most common type of financial assistance the can be awarded. (The Energy Efficiency and Renewable Energy Commission, 2009). Competitive grants are the key principal in explaining the financial assistance process. Through federal government funding for energy efficiency and renewable energy financial assistance awards from the (RRA) were authorized by the U.S. Congressional appropriations committee. After the budget was determined by the Department of Energy the (RRA) eventually ensures that all funds are available for the energy efficiency and renewable energy financial awards, after such time the funds are disbursed. (Recovery and Reinvestment Act, 2009). Tax incentives are instrumental in evolving reliable energy efficient products for new consumers The Impact of Public and Private Partnerships on Supporting Renewable Energy 23 committed to solar (PV) energy. Resources regarding these opportunities are established through tax incentive programs made possible by the (RRA) (Recovery and Reinvestment Act, 2009). In exploring the symbiotic relationship between public policy and the implementation of solar energy, I found that remaining environmentally sustainable is built on political will and the separation from fossil fuels. This study understands green solar industries and analyzed the procurement of grants as well as tax incentives by local state and the federal governments. The incentives of implementing renewable energy systems are voluminous, in turn renewable energy sources should be implemented on a mass scale today, to protect future economic welfare. A decentralized solar electric system supplies every classification of unit with safe, renewable electricity, to halt America’s reliance on fossil fuels. Infrastructure changes have helped with accessibility to pure locally produced green energy. When solar energy is utilized it aids in diminishing local emissions as well as mitigating regional power usage. Infrastructure changes will aide in developing the region’s accessibility to pure locally produced green energy. This initiative created jobs and added revenues while regional advocating for a renewable future. San Diego has not yielded the significant capacity to harness energy from renewable energy sources because the utility power infrastructure has not been established to support such a goal. This fact coupled with the existent economic downturn has presented San Diego with a movement for a favorable circumstance to pursue local green growth opportunities. Conclusion Sustainable patterns were cultivated decades before the present day economic concerns of the twenty first century. This study found the impact that public and private partnerships had in supporting renewable energy resources at (ASW) base. There was a concerted relationship The Impact of Public and Private Partnerships on Supporting Renewable Energy 24 between public policy and the implementation of solar energy used in the (RRA). The election and economic downturn propelled congress to pass the (RRA), which invigorated local green industries. The aforementioned industries provided grants as well as tax allurements by state and federal governments for (PV) solar systems. This study provides a detailed analysis that examines the way in which the environmental and economic impacts of sustainable solar systems have influenced public and private organizations in the city of San Diego. The end result is a hope for the city to embrace this collaboration and add to the region environmental policy, as well as reject the burning of fossil fuels for future energy needs. The development of this policy will demonstrates how the city of San Diego’s government will be able to generate stable revenues while reducing CO2 emissions throughout the region. This study filled the gap left by literature, which does not provide concrete examples of how cities have used (PV) solar systems to exploit environmental and economic benefits from the environment. This study provides policy-makers with an example of a way of viewing the environmental and economic impacts of sustainable solar (PV) systems. Furthermore this case study explores the fluctuating degrees of difficulty in implementing a physical network of renewable energy in unyielding utility grids. In such cases where the connection channels provided remain costly, the economic value of incentive programs stimulate the installation of a grid will be compromised. In both case studies examined there was substantial evidence indicating that lower operating cost was associated with positive economic external factors that contribute to the implementation of renewable solar (PV) systems. It is extensively recognized that a buildings carbon emissions heavily contribute to a large portion of the energy depletion in today’s economy. The Impact of Public and Private Partnerships on Supporting Renewable Energy 25 The (RRA) provides an essential foundation for the ongoing partnership between public and private agencies to promote renewable (PV) solar energy. This case study evaluated the (RRA) contribution to renewable solar energy at (ASW NAVFAC) Anti-Submarine Warfare Naval Facilities Engineering Command Southwest, a local government facility. This study exposed an essential partnership between public and private entities in San Diego, and found the two agencies responsible for creating renewable energy incentives that promote renewable efforts to reduce America’s dependency on foreign oil. The (RRA) effectively actualized tax credit programs, contributing to the growth of San Diego’s green industry, and allowed for the diversification of essential solar energy resources. This study proves that the (RRA) has provided job creation in both public and private industries as well as sparked new economic benefits for renewable (PV) energy systems that will hopefully catalyze technological improvements for solar electric energy systems in the future. The Impact of Public and Private Partnerships on Supporting Renewable Energy 26 Appendix (Figure 1): Building 50 (Figure 2): (ASW) Base The Impact of Public and Private Partnerships on Supporting Renewable Energy 27 Reference Literature Beatley, T. and K. Manning (1997). 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San Diego Gas & Electric (SDG&E) and the Electric Power Research Institute (EPRI). http://www.sandiego.gov/environmental-services/sustainable State and Utility Net-Metering Rules and Programs. Interstate Renewable Energy Council and North Carolina Solar Center, May 2007. Sustainable Endowments Institute 2007 - 2009, http://www.greenreportcard.org/reportcard-2010/schools/university-of-california-san-diego U.S. Department of Energy and the U.S. Environmental Protection Agency's, 2009 N.C. Solar Center / N.C. State University / College of Engineering (World Resources Institute Environment p.69(1): 18-27.) The Impact of Public and Private Partnerships on Supporting Renewable Energy 28 Interviews Halston Rove 2010. Interviewed by Hyacinthe Coulibaly. Field notes February 20th. Naval Base Anti-submarine Warfare. Synergy Electric, San Diego California Lonnie Thorpe 2010. Interviewed by Hyacinthe Coulibaly. Field notes February 20th. Naval Base Anti-submarine Warfare. Borrego Solar Inc, San Diego California The Impact of Public and Private Partnerships on Supporting Renewable Energy 29