The city of San Antonio, Texas, is an energy leader, with investments in clean technologies, clean energy jobs, and programs to improve the environment and reduce energy use. San Antonio’s secret? The power of collaboration.
Economic Development in the U.S. “Energy Capital”
San Antonio is determined to be the “Energy Capital” of the United States. Says Mayor Julian Castro, “San Antonio can be for the new energy economy what Silicon Valley is to software and Boston is to biotech.”To achieve this ambitious goal, the city partnered with the municipal utility, CPS Energy, to create initiatives that focus on protecting the environment, improving energy efficiency and developing the local economy. Like many unique collaborations, this one was conceived out of economic necessity. A few years ago, CPS relied primarily on fossil fuels and was staring down the barrel of $1 billion in mandatory repairs and upgrades to its aging coal-fi red plants. Instead, CPS made a bold move: To avoid the risks associated with fossil fuels (such as changing federal pollution regulations), it decided to invest in renewable energy sources and energy efficiency programs.
Its goal for 2020 is to increase the percentage of renewable resources in its energy mix from 9 to 20.
San Antonio saw an opportunity to partner with CPS and expand the utility’s commitment to help meet the city’s energy goals. The city and the utility funded educational programs and worked with clean energy businesses that agreed to move their manufacturing or office facilities to San Antonio, creating thousands of clean energy jobs.
For example, CPS and San Antonio struck a deal with a solar power company to build 400 megawatts of solar photovoltaic capacity in the city. The deal required the company to make a capital investment of at least $100 million in the city (in the form of a new manufacturing facility) and to create at least 800 jobs with a $30 million payroll.
The impact of the San Antonio-CPS collaboration reaches the city’s businesses and residents like the ripples of a stone thrown into a pond. CPS recently announced that it will move its 740,000 electric and 340,000 gas customers to a smart grid network infrastructure that supports smart meters, street lights, environmental sensors, traffic signals, electric vehicles, information panels and parking meters. The utility’s smart grid partner will open a local office for product testers, engineers, technical consultants and operations management, and will work with CPS to create a scholarship and internship program that supports local students and schools.
Sustainability Programs
An outgrowth of the collaboration with CPS is the development of a number of sustainability programs, including a green building code for new construction, a retrofi t initiative for existing buildings, sustainable real estate development, alternative transportation fuels, historic preservation, green space and locally produced food. Additional funds come from existing budgets, the local water utility and federal grants.
For example, the Save for Tomorrow Energy Plan (STEP) program provides incentives to residential and business CPS customers who install energy saving technology and fixtures that permanently reduce electricity. The program includes a $156 million commitment to weatherize 40,000 homes through 2020. So far, 3,000 homes have been weatherized, and the program’s initial success has resulted in the award of $16.5 million in federal weatherization funds.
And as part of its commitment to renewable resources, San Antonio has the largest solar farm in the state, with solar facilities on public buildings, including a wastewater treatment plant, the airport, office buildings, parking garages and even the county jail. It has also developed an incentive program for commercial rooftop solar installations.
San Antonio is a model for leveraging partnerships with private and public sector community partners to move forward its energy and economic development agendas. Through its collaborations with CPS and other community stakeholders, San Antonio’s investments have implemented programs that maximize the city’s use of its energy resources, increase its use of renewable sources of energy, bring clean energy jobs and business investments to the city, help citizens and businesses reduce energy use, and improve the overall quality of life.
