The report cites the need for increased support by local, state, and federal governments to promote growth in the renewable and energy efficiency industries and decrease our dependence on traditional fossil fuels, which can have harmful environmental effects. The report lists additional tax exemptions, improved building codes and government incentives and support for research and development as some of the ways in which government can play a more active role in bringing the next generation of energy technologies to the marketplace. In Washington, current tax breaks are not sufficiently aiding the industry, and some company officials explain that it is difficult to get this message across to the state Legislature. Washington's renewables and energy efficiency industries are vulnerable to states like California, which provide substantial public purposes funding from public levies to energy efficiency and renewables companies. California's industry support is proving to be a powerful incentive for Northwest companies to move their operations south.
Companies producing control devices and lighting products represent the next two largest sectors.
The industry covers a range of energy sources from biomass to small-scale hydroelectric to wind. The study also notes that much of the electric utility support for energy efficiency has declined in the face of threats of increased competition and cheap natural gas. Many utilities now see energy efficiency and renewable energy as costs rather than long-term investments in the future. In other states that have restructured their industry, they have included public benefits charges to help support these industries. The study was conducted by ECONorthwest, a regional economic consulting firm that has undertaken numerous studies on economic and environmental issues associated with regional energy use.