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Home My WebLink About8.4 I6 Green Challenge~~~~ OF DU~~~ ~ 19\~;~lZ STAFF REPORT C I T Y C L E R K `~ ~ D U B L I N C I T Y C O U N C I L F i l e #^~^ ~ 0 0-[~]~ ~4LIFpR~~ DATE: May 17, 2011 ~ . TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJEC : Letter of Support for i-GATE Application to the United States Economic Development Administration for the i6 Green Challenge Prepared By: Linda Maurer, Economic Development Director EXECUTIVE SUMMARY: The City received a request from the City of Livermore, lead coordinator for the region's State Innovation Hub - i-GATE (Innovation for Green Advanced Transportation Excellence), to have the Mayor sign a letter in support of their application to the Economic Development Administration's "i6 Green Challenge." FINANCIAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council direct the Mayor to provide a letter of support to the City of Livermore for the U.S. Economic Development Administration's i6 Green Challenge. !~ a Submitted By --.._.___ Review By Economic Development Director Assistant City Manager Page 1 of 2 ITEM NO. •~" n l~ DESCRIPTION: The City received a request from the City of Livermore to provide a letter of support for their application, as the lead agency for the region's State Innovation Hub - i=GATE, to the U.S. Economic Development Administration for their "i6 Green Challenge." The i6 Green Challenge is designed to encourage and reward innovative approaches to accelerating technology commercialization, new venture formation, job creation and economic growth across the United States: This year, the EDA is funding the creation of "Proof of Concept Centers" (Attachment 1) ~ One element of i-GATE is the establishment of an incubator facility. Referred to as NEST (National Energy Systems Technology Incubator), the i-GATE incubator meets the criteria established in the i6 Green Challenge for a Proof of Concept Center. i-GATE submitted its Letter of Intent (Attachment 2) to the EDA on April 24, 2011 to seek funding for the NEST. The next step is to provide letters of support to complement the application. Since the City of Dublin has been heavily involved with the i-GATE efforts, Staff recommends that the City Council direct the Mayor to sign a letter of support for funding the NEST by the EDA. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Overview on i6 Green Challenge 2. Letter of Intent to U.S. Economic Development Administration 3. Draft Letter of Support Page 2 of 2 i~-~ ~' ~ l~:S. ~Gfli~lfJ{~1G CJEIi'EI:flP~14EIVT R[lCvtiN9STFtATI(lix! i6 Green COMPETITION i6 Green buifds on the success of last year's inaugurai i6 Challenge and is designed to encourage and reward innovative approaches to accelerating technology commercialization, new venture formafion, job creation, and economic growth acr.oss the United States. This year's $12M challenge rewards communities that utiiize a Proof of Concept Center model, such as that championed by the Desfipande Center, to accelerate technology led economic development in pursuit of a vibrant, innovative clean economy. i6 Green is led by the U.S. Commerce Department's Economic Development Administration (EDA), in partnership with the U.S. Departments of ,4griculture and Energy, the U.S. Environmental Protection Agency, the Nationaf Science Foundation, and the Commerce Department's National institute of Standards and Technology, and U.S. Patent and Trademark Office. GREEN FOCUS i6 Green solicits applications that strengthen the linkages between economic development and environmental quality. Applicants must demonstrate how their Proof of Cbncept Center models will accelerate technology commercialization or new venture formation related to: • Renewable Energy projects that support the development, production, or use of energy derived , from renewable resources that have smaller carbon footprints than hydrocarbon-based energy sources, including wind, solar, biomass, and geothermal energy; o Energy Etficiency projects that support a reduction in the energy produced or the energy consumed for the same level of output with the goal of lowering energy costs; e Reuse, Recycling, or Restoration projects that support the reuse of a given product (or products), or produce a new or innovative product from recyclable materials; and e Green Buiiding Technology and Manufacturing projects that facilitate technological advances, processes, and materials that minimize environmental and public health impacts of buildings over their lifecycles. ~ ~ PROOF OF CONCEPT CENTER MODEL Applicant Proof of Concept Center models will provide a range of vital services to support company formation and growth based on technology commercialization. Those services should minimally include: • Facilitating and fostering the exchange of ideas between university innovators and industry; ~ Incorporating mentors and industry catalysts that provide advisory services, and link techriology and researchers to external networks; ~ Providing seed funding to support the commercialization of promising research; • Assisting with market evaluation and business plan development; • Supporting educational programs to prepare students and researchers for entrepreneurial challenges and work environments; and ~ Holding special events to showcase technologies and entrepreneurs, promote the exchange of ideas, and formation of new collaboration. For more information visit: www.eda.gov/i6 ~ ~.~- ~ 1 ~, ~" ATTACHMENT 1 afl-~~: i6 Green Challenge:,Proof of Concept Centers Letter of Intent ~ Economic Development Administration (EDA) U.S. Department of Commerce FON Number 16GREENEDA031011 CFDA Number 11.37 , April 24, 2011 SUBMITTED TO: Economic Development Administration i6C~?eda.doc.gov and cc: Brian Parker, Seattle Regional Office, b~arker _eda.doc.qov , PROJECT TITLE: i-GATE NEST Innovation for Green Advanced Transportation Excellence (i-GATE) National Energy Systems Technofogy Incubator (NEST) PROPOSED BUDGET: $1 million from i6 Green award cost-matched with $1 million APPLICANT: i-GATE NEST (a 501 c3 nonprofit corporation) 1052 S. Livermore Avenue, 2nd Floor, Livermore, CA 94550 (925) 294-2859 Lead: Bruce Balfour, i-GATE President bruce.balfour(c~iqateihub.orq ~ --~'~.- ~ Bruce Balfour Presid~nt, i-GATE NEST Authorized Organizational Represe'ntative , ATTACHMENT 2 ~ ~~~ PROJECT DESCRIPTION: i-GATE NEST (Innovation for Green Advanced Transportation Excellence - National Energy Systems Technology Incubator) is a nonprofit public-private partnership that covers four counties in California, one of which has an 18.4% unemployment rate despite access to skilled workers with advanced academic degrees. This challenge has created an opportunity to grow startup activity in the region if proper resources are applied to increase capital flow, provide entrepreneurial support, provide technical assistance, and channel these workers into green transportation and renewable- energy business formation. There is also a need to build on the region's combined strengths- including two DOE national laboratories and two University of California campuses-and integrate them into a cohesive program of innovation and support to create new companies and jobs. In February 2010, the i-GATE initiative was formally designated by the California Governor's Office of Economic Development (GoED) as one of six inaugural innovation hubs (iHubs). While the iHub competition drove the creation of a broad program to accelerate and grow technology-based startup companies, this program provided no funding to the innovation hubs, which were formed from the ground-up as regional innovation partnerships. As the focal point for the regional innovation cluster in green transportation and renewable energy, i-GATE NEST demonstrates a. leveraged Proof of Concept Center model as the translating interface for: technical and commercialization assistance from two DOE national laboratories; coordination and support by the City of Livermore; entrepreneurial education, internships, and innovation ties to two University of California campuses..Additional support comes from city and county governments, Manex-the local MEP center, the U.S. Export Assistance Center, automotive and clean-tech industry, angel and venture capital firms, and the regional Sma(I Business Development Center. PROJECT OBJECTIUES: . * Expand i-GATE NEST -a state-designated "innovation hub (iHub)" based in Livermore=as a Proof of Concept Center hub by leveraging its staff and programs to provide entrepreneurial support/mentoring, seed funds, innovation networks, export assistance, SBIR training, and education programs through the existing NEST facility and regional satellite programs. 16 Green-i-GATE NEST 1 16GREENA031011 ~ ~~ ~ ., , 4. '' Coordinate efforts to streamline green transportation and renewable-energy technology commercialization by leveraging close partnerships with industry and the regional-natiorial laboratories and universities, providing a"demand-pull" mechanism to increase technology transfer and licensing, boost technical assistance, and improve resource access for startups. * Expand academic interactions with partner universities and community colleges to provide - entrepreneurial education, internship opportunities, and mentoring (along similar lines as the MIT Venture Mentoring Service) for clean-tech commercialization. * Establish a migration path to attract more seed and venture capital flow, linking regional cluster elements to increase entrepreneurial activity beyond Silicon Valley and benefit lower-cost inland . areas with higher unemployment while leveraging the region's skilled workforce. * Catalyze the full spectrum of regional innovation and collaboration for green transportation and clean-energy technology commercialization, including: efficient automotive engines, electric vehicles/batteries, biofuels, hydrogen fuel cells, renewable-energy generation (solar, wind, biomass), energy efficiency technologies such as solid-state lighting, and access to high- performance computing resources for modeling and predictive simulation. The basis for all of these programs is in place and the i-GATE NEST partners are engaged in implementing the initiative, but all of the work so far has been run by a very small staff and supported by donations, in-kind services, and loans. I-GATE NEST is not receiving funding from DOE, USDA, or any of the other i6 Green federal partner agencies. With a loan from the City of ~ Livermore, i-GATE NEST is opening a 14,000 square foot facility to house and provide services to transportation and clean-tech startups. A major financial campaign will start this year, and we project financial sustainability within two years, but program implementation is limited at present ~as we attempt to cross our own Proof of Concept Center "valley of death." To achieve its full potential and dramatic impact as the hub of a regional innovation cluster, i-GATE NEST must leverage the ~ momentum built over the last year with near-term financial support to accelerate its program, close the gaps in the regional innovation ecosystem, commercialize innovative solutions to energy problems of national importance, launch companies, and create jobs. 16 Green-i-GATE NEST 2 16GREENA031011 5e~~ May 20, 2011 Mr. Brian Parker Seattle Regional Office Economic Development Administration RE: Support of i-GATE NEST as an "i6 Green" Proof of Concept Center On behalf of the City Council of the City of Dublin, we wish to express our support for i-GATE NEST (Innovation for Green Advanced Transportation Excellence-National Energy Systems Technology incubator) as an EDA "i6 Green" Proof of Concept Center. As a nonprofit (SOlc3) public-private partnership, i-GATE has successfully brought together national labaratories, universities, economic development agencies, industry, young technology companies, and venture capitalists to foster innovation, collaboration, and job creation across four counties. This broad partnership, focused on supporting green transportation and renewable energy technology startup companies, was designated as one of six California "innovation hubs (iHubs)" in 2010 by the Governar's Office of Economic Development, and the regional nature of the partnership earned an award from the International Economic Development Council that year. Based on proven models for technology-based startup company assistance, the i-GATE partnership has effectively leveraged existing programs and support through its government, academic, and industry partners without any federal funding support to date. It is now ready to expand its programs and operations, including satellite programs that will broaden its ability to provide startup mentoring and assistance across four counties. EDA funding'would allow i- GATE NEST to achieve its full potential while still allowing it to reach its goal of financial stability within two years. ~ An i6 Green award will enable increased collaboration between the i-GATE partners, new job creation, and expand access to a research, development, and deployment (RD&D) ecosystem beyond the capability of any single organization. Relationships with industry and venture capital partners will also continue to speed the process of technology commercialization. The City of Dublin as a local governmental agency with an interest in advancing economic development supports the goals of i-GATE NEST as a Proof of Concept Center. Sincerely, Mayor Tim Sbranti City of Dublin ATTACHMENT 3