Smart Cities

Time for California to build a 5G network

By Kish Rajan

Here in California, we like to think of ourselves as being on the cutting-edge of all things technology. After all, California is home to Silicon Valley and we are the birthplace of companies like Google, Apple and Tesla.

But in one crucial area, we are at a high risk of falling behind. States like Virginia, Florida and Texas could all have state-wide 5G networks before California does.

And that’s a problem because 5G has the potential to unlock enormous economic growth, help grow new businesses and jobs, improve transportation, save energy, and greatly improve our infrastructure.

Right now, most mobile devices work on a 4G network where signals are bounced off of large cell phone towers than can a mile or more apart. This works fine. But as anyone who’s ever lost coverage or waited with growing frustration for a video to download knows, we need to upgrade these systems to keep pace with the growing demand.

4G has the potential to hit maximum speeds of 1 Gbps, but because of interference from buildings, it rarely hits those speeds. A 5G network has the potential to move data 10 times faster. Yes, that’s going to be good for consumers who want to enjoy quick downloads, but it’s so much more than that. 5G will power the infrastructure necessary to make our cities smarter.

According to a report from Accenture, new 5G-based technologies will enable intelligent transportation and energy systems – easing traffic gridlock and improving the performance of the electrical grid. These improvements alone have the potential to create $160 billion in benefits and savings. We’re already seeing the possibilities for this kind of technology in San Diego with sensors in street lights collecting data that will track air quality and improve traffic flow and parking helping the city save $2.5 million per year. Imagine that kind of innovation on a state-wide scale.

Then there’s the economic benefits of building out the network itself. Accenture predicts that 5G could result in $275 billion in investments, creating 3 million new jobs nationally and growing GDP by $500 billion.

But we’re not going to see any of that potential come to fruition if we constrain the emergence of 5G by subjecting it to the old approach to 4G regulations.

Right now, it can take up to two years to approve a permit for a cell-phone tower. But a 5G network requires 10 to 100 times more small cell antennas than a 4G network. And then different municipalities have different requirements for cell-phone antenna permits.

These old regulations make it almost impossible to build out a vibrant 5G network that could benefit everyone in our state.

That’s why states like Virginia have put new rules in place to make it easier and faster to build a 5G network. Governor Terry McAuliffe just signed a bill that creates a state-wide permit to place cell antennas on lamp posts and utility poles. Florida, Texas, Minnesota, Arizona, Colorado, Indiana and Iowa are all looking at similar bills.

It’s time for California to catch up.

We have our own 5G bill making its way through the state Legislature. SB 649 will lay the ground work for a 5G network. It’s crucial that it moves quickly through the legislative process and that Gov. Jerry Brown signs it in to law. The longer we wait, the further we fall behind.

California has never taken a back seat to any other state when it comes to innovation. We must not start now. Let’s unleash our full potential and remind the country and the world what we’re made of.

Kish Rajan is chief evangelist at CALinnovates and former director of Gov. Jerry Brown’s GOBiz initiative. He can be contacted at [email protected]

This piece was originally published in the Monterey Herald.

Why Elon Musk Chose South Australia For His New Battery Project

By Mike Montgomery

When Elon Musk announced that he plans to build the world’s biggest ion battery to power to South Australia, it was a sign that the state truly has made a stunning turnaround.

Things looked grim for South Australia back in 2013, when GM announced it would stop manufacturing cars in Australia as of fall 2017.

Adelaide, the biggest city in South Australia, had prospered after World War II as a manufacturing hub for automobiles, appliances and textiles. Local industry was protected by high tariff walls — as high as 54 percent for automobiles in the 1980s. In Adelaide, the largest employers were tied to the auto industry.

That shattering 2013 announcement was a wake-up call, according to Jay Weatherill, South Australia’s premier. “It was a signal moment for us,” he says. “It’s been the impetus for massive change.”

Weatherill decided to pin the state’s future on tech and innovation rather than go looking for a volume-based manufacturing industry to replace GM. In fact, he started looking to make South Australia the next Silicon Valley.

As more cities look to reinvent themselves in the wake of factories closing, Adelaide is an appealing model. The first step was a review of commercialization and venture capital investments in South Australia. The news wasn’t good. The state received less than 0.2% of the venture capital investment in Australia. The review also found that a lack of coordination between government departments and agencies hindered private investment opportunities.

The solution was to spend money to make money. Weatherill used state funds last year to establish a $38 million venture capital fund to promote innovation, attract new VC and encourage tech companies to move to South Australia. The state also committed money to support new businesses from conception to product development and early commercialization, and gave more money to the local university’s innovation incubator to underwrite initiatives in the advanced manufacturing and engineering spaces.

South Australia also has invested in promoting its agribusiness sector and developing private export markets in high-quality foods, particularly to serve the exploding middle class in Asia. “Our wine and food are attracting huge investment from overseas,” says Andrew Cullen, managing partner of Deloitte in South Australia.

Weatherill also hired American transplant Tom Hajdu as his “Chief Advisor on Innovation.” Hajdu — founder of both music production company tomandandy and Disrupter, a Los Angeles-based startup incubator — says the state needed to upgrade its infrastructure to attract new tech businesses and the jobs that come with them. He led the effort to make Adelaide the first international city to join the Smart Gigabit Communities Program, which in part requires members to install sensors throughout the city and develop applications to connect those sensors and the data they collect to the cloud. So-called “gig cities” also have high-speed internet that is up to 100 times faster than the national average. The SA government paid $3.5 million for the upgrades.

But the biggest sign that the economy has turned the corner came in May, when all of South Australia’s efforts to modernize paid off. The Australian government picked the state as the primary location for its new defense shipbuilding program. Australia committed $66 billion to build submarines, frigates and offshore patrol vessels for the Australian navy, and to upgrade and modernize Adelaide’s existing naval shipyard. The government also will open a school in Adelaide to train shipbuilding workers.

Building and maintaining the next-generation naval fleet is expected to bring in 5,000 high-skilled, high-tech jobs, as well as thousands of other jobs in associated industries. South Australia won the bid in part by focusing on how it has morphed from rust belt to 21st century city.

“South Australia is a next generation state,” says Hajdu. “It’s the center of the new digital economy.”  If Elon Musk agrees, you know it must be true.

Mike Montgomery is the Executive Director at CALinnovates.

This piece was originally published on Forbes.

 

Solving Infrastructure Problems From the Bottom Up

By Kish Rajan

Walking down the streets of San Diego, it’s not immediately apparent that the city is at the center of a technological revolution in infrastructure. That’s because the technology, 3,200 sensors, is hidden inside the city’s new street lights. The sensors collect data that will help the city save $2.5 million on electricity each year, track air quality, and improve traffic flow and parking. They can even be of use to public-safety first responders.

San Diego’s smart lights are just part of the city’s push to rebuild its infrastructure. Last June, voters approved the Rebuild San Diego ballot initiative, which will provide up to $4 billion for infrastructure projects over the next 25 years.

Expect to see more local and state governments taking infrastructure problems into their own hands. Given the realities of politics in Washington, they know the folly of waiting for the federal government to step in and save the day. And it’s highly unlikely that any new infrastructure plan that did emerge from Washington would cover more than a fraction of the $4.6 trillion that the American Society of Civil Engineers (ASCE) estimates it would cost to fix everything — more than the federal government spends in a year.

ASCE’s latest report card gives America’s infrastructure an overall grade of D-plus. And no one knows better than those at the local level how our deteriorating infrastructure makes us less competitive globally, not to mention the safety concerns it raises for the people who use crumbling bridges, overpasses and tunnels every day or who drink water that might be contaminated by sewage overflows, just to name a few issues. They need to take a page from San Diego’s playbook and find creative ways to start solving infrastructure problems from the bottom up.

It’s already beginning to happen. South Bend, Ind., for example, is a sewer overflow city. Hundreds of billions of gallons of raw sewage overflow into local rivers and lakes every year. Aiming to improve the situation, the city, under Mayor Pete Buttigieg, has begun using a system called CSOnet, developed by a local company, that collects data from sensors inside the sewers so the city can redirect water to empty pipes and reduce the overflows.

In Multnomah County, Ore., more than a third of the commercial buildings use more energy than they should. But the Building Ready Multnomah initiative, started by former County Commissioner Jules Bailey, helps finance capital improvements that reduce energy consumption or generate energy. The organization leverages public and private resources for the loans and encourages participants to use the savings generated from becoming more energy efficient toward seismic upgrades to prepare for natural disasters.

And as some Western states struggle to build up their renewable-energy infrastructure, other states, including California, have excess renewable energy capacity. California state Sen. Bob Hertzberg has proposed the creation of a regional grid operator and energy exchange to make it easier for states to buy and sell energy to each other, which could reducing overall carbon dioxide emissions.

These efforts might seem small, but they can add up to a serious impact. With the continuing dysfunction in Washington, it may be years before we see a comprehensive federal infrastructure effort. But as these local leaders have shown, that doesn’t mean we can’t begin to improve our grade.

SB 182 Will Help Move California’s Economy Into The 21st Century

By Kish Rajan

If you live in any big city in California, chances are you’ve used a rideshare service to go to or from the airport. It’s become such an easy option that most of us take it for granted.

But a lot of effort goes into making that ride so easy for you. And much of that effort comes from the drivers — independent entrepreneurs who have turned their cars in to rolling small businesses.   These small business owners enjoy the freedom, flexibility and rewards of being their own bosses — even if just for a few hours per week.

And while they are experts in navigating the streets of their communities where they drive, they can often be challenged by all the government regulations they have to navigate. Los Angeles County, for example, is made up of 88 different municipalities and each of those municipalities has its own business license standards for drivers. As they drive through different towns, drivers are subject to different licenses, fees and requirements.

Driving from San Jose to Oakland a driver goes through 5 different cities. All over the state, drivers are moving through different cities every day — and running the risk of getting fined for not having the right business license.

But to expect drivers to obtain licenses from every municipality they might go through is unreasonable. Most licenses cost around $100 each and those fees start to add up creating a serious barrier to entry for new drivers who are really entrepreneurs (87% of Uber drivers, for example, say they drive because they want to be their own boss). As a state, we want to do everything we can to encourage entrepreneurship and to help give people the freedom to change jobs and build new businesses. We don’t want to burden people with unnecessary regulations.

This is as perfect example of a modern industry operating under outdated regulations. Of course it’s important that people feel like they are in the hands of licensed professional whether they’re getting a massage, hiring a plumber or getting a ride. But forcing those businesspeople to get often redundant business licenses just because they cross a municipal line is old-fashioned thinking. In today’s economy, people need to be able to go where their customers are and that’s not always in the same town.

That’s why we support SB 182. The bill would allow drivers to obtain one business license that could be used across municipal lines. Drivers would be able to move freely around the state knowing they are licensed to operate everywhere; and passengers would get the assurance that they are in a car with a driver who has a business license in addition to the stamp of approval from the rideshare company.

The bill also stands to benefit the many different municipalities of California. Instead of having the state issue the business license, it could be issued by the driver’s home town. That way, if a driver is based in Livermore but mostly picks up riders in San Francisco, Livermore would get the benefit of the licensing revenue.

SB 182 also helps protect drivers’ privacy. Some jurisdictions publicly post addresses of people who apply for business licenses. Because drivers essentially work out of their cars, their home addresses have been made public. SB 182 would ensure that when drivers apply for licenses, their addresses remain private.

This bill should be seen as a model for legislation going forward. The sharing economy (or as I prefer to call it, the personal enterprise economy) is going to continue to be an important part of our economic mix. We need to make sure our laws and regulations are updated to protect workers as well as customers. SB 182 acknowledges that the world is changing and creates smart regulations that make sense in today’s world.

Kish Rajan is chief evangelist at CALinnovates and former director of Gov. Jerry Brown’s GOBiz initiative. He can be contacted at [email protected].

How Augusta, Georgia, Is Becoming A Model For Tech Innovation In Small Cities

By Mike Montgomery

Graphic designer and illustrator Jason Craig lives in Augusta, Georgia, but he travels a lot to nearby cities like Atlanta and Columbia, South Carolina, for creative contract work and entrepreneurial camaraderie. “I wish I didn’t always have to leave to do cool work,” Craig says. “I’m always going to other towns and giving them my best — I want to do that in my hometown.”

Craig might soon get his wish. By the end of this year, Augusta could be known for a lot more than just its famous golf tournament. Starting in the fall, Augusta residents will have access to something called the Augusta Innovation Zone. A team of six action leaders is renovating a full downtown city block, including two historic buildings, and turning it into an incubator and hub for innovation, arts, entertainment and restaurants. Members of all industries and career paths will be able to rent desks, or even a full offices, there; they’ll share a receptionist and common office supplies; and they’ll attend seminars and workshops. Eager budding entrepreneurs might even want to rent one of the iZone’s apartments. Interactions might lead to mentor situations or future partnerships. “It will give most cities a run for their money in live-work-play spaces,” says Tommy Wafford, one of the iZone action leaders.

Wafford says he and his friends came up with the idea over drinks one night as they sought support on their own projects. “We said that something’s got to be done with startup innovative culture in our city,” says Wafford, CEO of MealViewer. “I’m on my third startup with my business partner. Every one [of these startups] has been a challenge — we’ve had to bootstrap every single one because there’s been no culture here.”

The iZone team wanted to create a physical space where people could come together to brainstorm ideas, find mentors and bounce entrepreneurial projects off venture capitalists. They wanted a place where people could inspire one another to bring their visions to fruition. And they wanted local businesses to turn to a creative space for recruiting events. Augusta, which has a population of just under 200,000, tends to draw millennials for a new cyber facility and a university hospital, but then they leave for larger cities. “There’s nowhere in our downtown for young people to go unless they want to drink,” says John Cates, an attorney and one of the founders. He and Wafford say they looked at existing hubs like the Atlanta Tech Village for motivation. “We needed to create an environment where the best and brightest can stick around.”

Wafford, Cates and the rest of their team — all of whom are working on this pro bono — worked closely with the city of Augusta to find an open space downtown that could launch this renaissance. One of the buildings they chose is an old Woolworth department store. People can join as members and check out co-working spaces. There will be offices for rent, conference rooms, restaurants and storefronts.

Over 200 people are on the waitlist for memberships, and 40% of the office space on the second floor has been reserved. Not all of those interested are locals. Wafford says he and his team are traveling all over, including to Silicon Valley, to meet with startups. They’ve also been encouraging venture capitalists to keep tabs on their progress. The huge difference in cost in living and rental space just might persuade a few entrepreneurs to move. “The wifi is just as good here as it is in Silicon Valley,” Wafford says. “We can extend your runway by 24 months [if you move your startup] to Augusta.”

The short-term goal is to get the Augusta Innovation Zone up and running by the end of 2017. The long-term goal is to use this iZone as a model for similar spaces around the country. “I definitely think there is an opportunity to help other post-industrialized cities thrive again economically,” Wafford says. “Obviously, being able to offer startup companies an ecosystem that has access to talent and funding is a key component to their success and longevity.”

Like Augusta, these small cities now have access to world-class internet, low cost of living and plenty of empty warehouse space. Wafford hopes to demonstrate that it’s possible to thrive outside of a major metropolitan area as a savvy tech startup.

“We hope by documenting the process here in Augusta we can share our findings with other nonprofits around the nation to help build a real model for success,” Wafford says. “Long term, we hope to be in the business of nation-building from the grassroots level. I foresee a day when we have five to 10 cities a year launching the same kind of space out of old factories and gas stations and closed malls.”

This piece was originally published in Forbes. 

Solar Impulse 2 Shows The Possibilities, And Limitations, Of Movable Solar

By: Mike Montgomery

Anyone who thinks even a little about energy is thinking about renewables. According to REN21, new investments in renewable power and fuel climbed from $45 billion in 2004 to $270 billion a decade later.

That makes it an incredibly appealing market for entrepreneurs. The vast majority of that money has been focused on renewable energy that can go into the grid and power our homes and offices. But the Solar Impulse 2, a long, thin plane that is powered completely through the use of solar panels, has shown another side of renewable energy: solar-powered transportation.

Is the Solar Impulse 2 a breakthrough or a novelty? It may be a little of both.

Bertrand Piccard, one of two Swiss pilots who have been flying the plane in tandem, sees promise in the new technology. “Today we do not have the technology for a [commercial] solar airplane,” he says. “Nevertheless, it will happen.”

But not anytime soon. “It’s not years away, it’s decades,” adds Tom Werner, the CEO and president of SunPower, the company that manufactured the solar cells for the Solar Impulse 2.

Werner explains that when developing solar-powered transportation, you need to consider cost, weight and efficiency. Although the Solar Impulse 2 shows that it’s possible to power a vehicle solely from mounted solar cells, today the challenges for a typical passenger car or commercial airplane far outstrip any benefits. For example, in order to drive 200 miles a day only on solar power, a typical passenger car would need 10 times as many solar cells than would fit onto that car’s roof.

Read the full article here.

Smart Grid

In recent years, California has been at the epicenter of the struggle for abundant and affordable energy. Energy shortages and scandals have put a premium on California’s available energy and have exacerbated consumer anxiety. Even as our state and our nation pursue new opportunities in clean and renewable energy sources, energy conservation and management remain critical to ensuring California’s resources, cost of living, and security for generations to come.

In October 2009, California legislators passed SB 17, groundbreaking smart grid technology legislation aimed at developing a plan for future smart grid deployment statewide. Smart grid technology combines intelligent monitoring systems and upgraded superconductive transmission lines to provide inherent energy conservation, reduced costs, and optimized energy use during off-peak hours. Investing in smart grid technology will allow California to dramatically improve energy exchange statewide while passing along savings to financially benefit all Californians within a system that provides incentives for conservation in the home. Intelligent monitoring systems will allow energy demand to be diminished during peak hours which will help consumers as well as energy technicians avoid brownouts and blackouts. Furthermore, California legislators have projected that early adoption of smart grid technology will attract federal funding and spur job creation in-state.

In addition to saving energy and money, smart grid technology is designed to be ‘self-healing’ in incidences of disruptions, outages, and other system problems. Furthermore, smart grid technology will be more resistant to intentional attacks on our energy infrastructure. California’s investment in smart grid technology is an investment in state and national security as well disaster preparedness. California is already home to three of the top five most active utilities in smart grid development and is poised to remain the leader in development and utilization of smart grid technology. While California has recently suffered from unique energy problems, the state’s unparalleled technology industry will be instrumental in providing solutions to meet consumer demand and improve energy availability and security for years to come. CALinnovates supports efforts to deploy smart grid technologies statewide.

Californians Should be Happy About the FCCs New Emergency PLAN

Yesterday, at Ground Zero in New York City, FCC Chairman Genachowski announced a new public safety alerting system called PLAN, or Personal Localized Alerting Network.  PLAN will allow government officials to send text-like messages to consumers’ mobile devices in geographically-targeted areas during times of emergency, something CALinnovates thinks is a smart move.  You can learn more about PLAN here.  Here’s our statement in support of the FCC’s PLAN:

We commend the Chairman in his aggressive pursuit of PLAN. Based in San Francisco, we understand the importance of having an emergency communications plan in place. Once PLAN is implemented in California, in the case of an earthquake, residents and visitors alike will have access to free, up-to-date emergency information that will help them survive the quake all made possible by Chairman Genachowski’s leadership in partnership with the wireless companies.

-Erin Lehane, Chairperson, CALinnovates