The Sustainability Work Group Initial Report

Introduction

Entering the 21st century, our world is one of constant change and new challenges. State and local governments, the private sector and communities face similar issues in this world: the need to improve efficiency and reduce costs, be responsive to the increasingly complex demands of the global economy and changing communities, maintain a quality work force and protect the environment. Similarly, the actions of individual citizens are increasingly being recognized as critical to meeting these challenges.

In response, many leading companies are turning to a strategy described by some as the "triple bottom line" - improving profits, improving the planet and improving the lives of people. This approach is seen as a way to improve efficiency while reducing the risk of disruptions to business, adding stability to the organization and enhancing market opportunities. This integration of environmental, economic and community quality, together with an eye toward our future, is what a growing number of people are calling "sustainability".

While definitions of sustainability vary somewhat, most include the theme of enhancing the triple bottom line while leaving options for future generations. Former Governor Kitzhaber has used this description: "Sustainability means using, developing and protecting resources at a rate and in a manner that enables people to meet their current needs and also provides that future generations can meet their own needs. Sustainability requires simultaneously meeting environmental, economic and community needs."

Oregon has a long history of finding innovative solutions to problems of the present while preserving options for future generations. Watershed councils and Community Solutions Teams are examples of how recent innovative solutions are being applied around the State to enhance the health of natural, business and community systems. Community-wide efforts are also underway in places like Tillamook, Lakeview, La Grande, Wallowa County and the Applegate basin.

Background

Former Governor Kitzhaber issued Executive Order 00-07 (Appendix A) on May 17, 2000 to promote actions by Oregon's government to develop solutions that integrate economic, environmental and community considerations over extended periods of time. The executive order was created with an initial focus within State government on centrally coordinated functions such as building construction and procurement, and promoting a range of efforts to enhance sustainable practices and products in Oregon's economy.

The executive order also created a Sustainability Work Group comprising members of the Legislative Assembly and State, business and community leaders (Appendix B). The purpose of the Sustainability Work Group is to help improve the efficiency and effectiveness of State efforts, and to recommend options for additional steps the State might take. This report represents the first of two reports by the Work Group to the Governor and the Legislative Assembly. A second report will be submitted by June 1, 2001 and will provide more detailed assessments of existing and potential actions by the State.

The Sustainability Work Group met on August 11, November 8 and December 13 to receive updates from the State and to provide recommendations regarding current and potential actions. The following sections provide accounts of current efforts to adopt sustainable practices and recommendations based on these efforts.

Work in Progress

The State has initiated a number of efforts and actions related to sustainability. These initiatives will help the State move closer to a triple bottom line by improving the quality of Oregon's economy, environment and the lives of citizens. Here are several examples of the types of efforts that are underway:

• Green Building guidelines were developed consistent with voluntary national criteria and are now being tested on a pilot basis on the 120,000 square foot North Mall Project. Many costs are expected to be lower than traditional designs, especially when evaluated over the life cycle of the structures. The guidelines are also being tested on lease agreements. Benefits could be significant when the guidelines are applied over time to all State facilities.
• One percent of DAS electric power purchases are now under Portland General Electric's Green Power program. Energy purchases are being organized through a State coalition to reduce loads and costs.
• Evaluations of selected products purchased by the State are underway. A broad-based advisory council will be reporting in May 2001 to DAS on options and procedures for enhancing procurement of sustainable products. Efforts are focused on paper, office furniture, building materials, coating and cleaning products and automobiles. Issues include efficient use of natural resources, reducing the use and release of toxic materials, costs throughout a product's life cycle and competitive purchasing.
• Publishing and Distribution Services, with funding from the Economic and Community Development Department and in partnership with a non-profit organization, is developing an environmental management system (ISO 14001) for the Salem facility. This management system is expected to help reduce waste and improve efficiency. About a dozen Oregon companies have received certification to this international standard to date, and several other Oregon government entities are also developing similar environmental management systems.

• A comprehensive review of Department functions was conducted to identify opportunities for improving efficiency. Although the primary focus is on facility efficiency (reducing power and water use), teams are also evaluating actions ranging from reducing "deadheading" (trucks carrying cargo one way only and returning with empty trailers) to composting food wastes, and are setting quantitative reduction goals
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• Prisoners were used in a pilot project with Housing and Community Development to manufacture efficient, low-cost housing for farm workers.

• Oregon is developing procedures for defining and measuring sustainable forest management practices. The Oregon Board of Forestry is evaluating a range of options and alternatives regarding the complex and rapidly evolving issue of forest certification.
• Forestry is employing green building techniques - including the salvage and reuse of old building materials - for construction of six new structures, with a goal of using 90% recycled or reused materials in these buildings. This approach is expected to reduce material and operating costs over the life of the buildings.

• Guided by the recommendations of a task force, the agency is taking steps to encourage green building techniques through its 1st time homebuyer program and its affordable housing financing program. Green buildings generally are more energy efficient and therefore less expensive for residents to operate, and create fewer potential health problems related to indoor air quality. The agency is also working to enhance refurbishment of housing stocks using green building principles.

• State contracting practices are being improved in a partnership with DAS to ensure that local contractors and businesses have competitive opportunities in rural and distressed communities.
• A web site serving internal government and outreach to business and communities will be completed in early 2001.

• Paper usage was reduced approximately 90% by distributing documents on computer disks rather than in hard copy. The Central Hearings Panel has followed the EAB's lead and expects to achieve 5 times the volume reduction.

• Goals were set to reduce agency environmental impacts by 50% within 2 years in areas related to paper, lighting, office furniture and business travel.

• An assessment of the Oregon Benchmarks is being conducted to determine how they can better reflect Oregon's progress toward sustainability. Results will be reported to the Legislature in the Progress Board's biennial report.

• Oregon's public universities have created an informal network and are considering creating a sustainability network that capitalizes on the strengths of each university through collaborative projects and coordinated services. Discussions include facilities management, curricula, research and outreach.

Sustainability Work Group Efforts

The Sustainability Work Group formed two subgroups to examine existing and potential State efforts to: improve the sustainability of internal operations, and develop a strategy for supporting community sustainability efforts at the local level. Key issues identified by the subgroups are outlined below.

1. Many opportunities exist for Oregon to implement more sustainable practices in its internal operations. Operational objectives can be accomplished in ways that enhance Oregon's economy, environment and communities simultaneously.

• State purchases are made in ways that efficiently serve the broad (multi-agency) and long-term financial interests of Oregonians, i.e., enhancing one part of the triple bottom line does not come at the expense of others
• investments in facilities, equipment and durable goods reflect highest feasible efficiency and lowest life cycle costs
• investments and expenditures help promote improvements in the efficient use of energy, water and resources

• State operations are located in diversified locations, including rural and distressed communities
• State operations and purchases help maintain vital and active downtown areas
• Purchases help support opportunities for economically distressed communities and historically underemployed people
• operations reflect partnerships with communities and businesses

• State operations help reduce impacts on natural habitats and species
• State operations are conducted in ways that significantly increase the efficient use of energy, water and resources
• State operations and purchases reflect the efficient use and reuse of resources and elimination of harmful toxins in the environment

2. Sustainability is a process rather than an end point. By considering issues related to the triple bottom line in its operations and purchases, continual improvements can be made in the overall effectiveness and efficiency of State government.

3. Changing organizational practices requires consistent effort and requires understanding and commitment at all levels in an organization. Support from top management is essential.

4. "That which gets measured gets done." Metrics, goals and timelines can be used to define levels of effort and ensure success. Regular evaluation of results and goals will promote performance.

5. A common vision and framework for sustainability is needed to ensure consistent efforts. Training and organizational learning will allow projects in different agencies to have similar principles and direction. Defining best management practices can help promote efficient improvements.

6. Businesses, vendors, local governments and non-profits can offer the State valuable advice. Many may be willing to work in voluntary partnerships.

7. Incentives can help promote greater efficiencies. Allowing agencies to retain cost savings for reinvestment in further efforts toward sustainability could accelerate actions.

1. In order to achieve sustainability in our society actions will need to occur at the community level. A sustainable community is composed of citizens that are aware and focused on their opportunities and challenges. A set of objectives can help define the focus or "blueprint" for a sustainable community. Citizens using such "sustainable community objectives" have the capacity to make connections within and outside the community to achieve greater sustainability.

2. Sustainable community objectives can be accomplished in ways that enhance Oregon's economy, environment and communities simultaneously.

• A resilient economy that provides a diversity of good economic opportunities for all citizens
• Workers, whose knowledge and skills are globally competitive, supported by life-long education

• Independent and productive citizens
• Youth who are fully supported by strong families and communities
• Downtowns and mainstreets that are active and vital
• Efficient and compact development that saves infrastructure investments and natural resources
• Affordable housing available for citizens in the community centers

• Healthy urban and rural watersheds and species abundance and diversity
• Clean and sufficient water for human and natural use
• Efficient use and reuse of resources and elimination of harmful toxins and emissions to the environment

3. Currently no significant institutional capacity exists or is available to convene business, government and nonprofits on an ongoing basis for the purpose of identifying and assisting on-the-ground action. A system to allow government, business, non-profits and citizens to work together more effectively and efficiently would enhance the ability of communities to create sustainable solutions.

Findings and Recommendations

Based on information provided by State agencies and the Governor's Office, the following findings and recommendations are offered:

A. Finding: Actions identified in the executive order appear to be well underway. Additional improvements in agency efficiency and effectiveness can be realized by integrating principles of sustainability more fully into their operations.

Recommendation: Adopt the economic, environmental and community objectives outlined in Section IV. A.1 for all agencies. Develop joint Legislative/Executive guidance to assist agency operations in using a "triple bottom line" approach to help simultaneously improve economic, environmental and community conditions in Oregon. Boards and commissions also have an important role in reinforcing these objectives. Goals and timelines will help assure that high priority actions or those with significant payback are implemented quickly. Agencies should collaborate to identify and resolve existing barriers to the sustainable practices.

B. Finding: Agencies are taking actions in addition to those specified in the executive order.

Recommendation: Agencies that have demonstrated innovative approaches to problem solving and cost reductions should be rewarded. The Governor and Legislative Assembly should consider allowing savings that result from a sustainability initiative to be retained by an agency for reinvestment in additional sustainability measures. Collaboration and partnership among agencies and non-governmental partners should also be encouraged and rewarded, as these interactions can help promote efficiencies and more effective government services. Collaboration can be fostered by a summit, workshop or other means of assembling key individuals for the purpose of defining roles and opportunities. The Sustainable Oregon Conference in September 2001 presents an opportunity for such collaboration.

C. Finding: A sustainable rural Oregon was identified as a top priority in the Governor's 2001-2003 budget, and significant investments are designated for rural and distressed communities. Such investments can be enhanced by other State actions.

Recommendation: The Governor should consider issuing an executive order directing agencies to identify, evaluate and implement actions pertaining to internal operations, consistent with economic, environmental and community objectives outlined in IV. A. 1., that help rural and distressed communities. Actions would need to be selected by July to be considered as agency priorities in 2001-2003.

D. Finding: The State appears to be making progress by focusing on results and "outcomes". The targeted nature of the executive order, coupled with the use of awards for innovation and availability of resources for developing skills or special initiatives, helps support the State's sustainability initiative.

Recommendation: Maintain the focus on "outcome" results while providing agencies with guidance, encouragement and instruction on how best to achieve these results. Ensure all agencies acquire requisite skills while providing focused support to those willing and able to undertake more ambitious efforts.

E. Finding: Many businesses, nonprofits, and government agencies are making efforts to promote sustainable communities, though these efforts are often not linked or coordinated. Better coordination and partnership could increase the effectiveness of these efforts. Oregon needs the capacity to forge partnerships between governments, businesses and citizens in developing on-the-ground solutions that help create sustainable communities.

Recommendation: A network of conveners should be established that can identify opportunities, assemble key participants and locate resources to produce projects on-the-ground that are "Oregon solutions" - those that are community-based, address the triple bottom line and involve partnerships between businesses, citizens and government. These projects should address the objectives outlined in Section IV. B. 2. The network will require administrative direction from outside traditional government or nonprofit organizations. The Governor should consider an executive order that sets expectations for participation in such a network for agencies, agency teams and commissions.

F. Finding: Oregon needs to have credible benchmarks for environmental, economic and community needs. In order to integrate these sectors in on-the-ground problem solving, indicators and benchmarks for the environmental sector are needed to bring it to the same level of completion as the social and economic sectors.

Recommendation: The Governor should request collaborative, community-based efforts among non-profits, citizens, businesses and governments to develop meaningful indicators around specific projects. The Governor should also direct agencies to assist the Progress Board in developing indicators and benchmarks within a consistent framework to build on the State of the Environment Report. These environmental indicators and benchmarks should then be used in conjunction with social and economic indicators to develop integrated solutions in Oregon communities. Staff should prepare for consideration by the Governor's Work Group on Sustainability a list of options for assisting communities in assessing their strengths and weaknesses as they relate to sustainable community objectives.

G. Finding: Oregon has a role to play in national and international issues, especially those related to climate change. Oregon's extensive forestlands and history of innovation and environmental stewardship present opportunities that can benefit the state and nation.

Recommendation: A collaborative effort involving business and forest interests, public interest groups and key state agencies (including Department of Forestry, Office of Energy, Department of Transportation, Economic and Community Development Department and the Department of Environmental Quality) should develop a plan that would outline opportunities to reduce impacts to climate change and enhance the State's economic position. The goal of this collaboration should be to determine the most effective and practical strategies for reducing contributions to climate change.

H. Finding: Oregon's public universities have great capacity to assist State and local governments, businesses, non-profits and communities in efforts related to sustainability. Currently, information and expertise about sustainability is difficult to access because it is fragmented within and among universities.

Recommendation: Oregon universities should explore ways to integrate sustainability concepts into existing and future curricula, research and outreach efforts. Methods should be developed to coordinate information, expertise and learning opportunities across campuses to improve access by Oregonians.

Appendices