Investing $1 billion of low interest revenue bond dollars each year to hire local contractors and trades people to make our buildings more energy efficient and to install solar (PV) cells on roofs and over parking lots. The bond would be paid off with the savings created by efficiency improvements and renewable energy development which would reduce the need to pay for imported energy. If you save energy or produce it locally from the sun, you don t have to pay to import it. Efficiency improvements would include installing better insulation in walls and attics, double-glazed windows, fans, more efficient lighting and appliances, etc.

Economic Multiplier Benefit. According to economists, every dollar spent in a local economy generates $2 to $4 of additional economic activity. This graph assumes an average of $3 of additional economic activity per dollar spent. Thus, investing $1 billion per year on becoming more energy self-sufficient will generate $3 billion of additional economic activity each year.

New tax revenue added to city coffers. Spending $1 billion each year on efficiency and renewable energy, plus $3 billion in economic multiplier benefits it will generate, will increase local tax revenues by $40 million each year, assuming a one percent tax benefit on the $4 billion spent.

Dollars gained in freed up taxes, lower cost of living expenses,.business and job creation, translates into:

• Fewer tax dollars needed to prevent and prosecute crime and to provide social services.
• Less drain on unemployment insurance funds, while increasing social security reserves.
• Fewer dollars needed to treat pollution related illnesses (efficiency and renewables are nearly pollution free.)
• Fewer property maintenance costs. Pollution attacks paint, roofing, clothing, landscaping, public art, etc.
• Energy security insurance. The more we reduce our dependence on imported energy, the more energy secure we will be.

Maintaining the status quo. Currently we export $1 billion out of the City of San Diego's economy each year, to pay for imported electricity or natural gas imported to make electricity. If this money were spent locally on efficiency improvements and renewable energy development we'd gain a positive economic swing of $10 billion each year or $300 billion over 30 years.

Lost economic multiplier benefits. Exporting $1 billion to pay for imported energy means there is no economic multiplier benefit gained in spending this money.

Lost tax revenues because the original $1 billion was exported. Once dollars leave our local economy, no local tax revenues can be generated from them.

Loss of freed up taxes and a reduction in the general cost of living. When dollars are exported, they generate no local economic activity or reduce tax liabilities.

Executive Summary

Currently the residents and businesses residing in the City of San Diego export $1 billion each year to pay for imported electricity or natural gas to make electricity locally. By investing this $1 billion into making San Diego more energy efficient and developing its renewable energy resources, San Diego could gain a yearly economic activity benefit "turn-around" of $10 billion. Over 30 years this turn-around benefit adds more than $300 billion. In the process, our City's energy security will be greatly increased.