What is now being called the clean-tech industry -- renewable energy, sustainable building -- is just a small piece of Oregon's job market, but state leaders believe the road to economic health is paved in green.

"Oregon's future lies in sustainable industry," said Rep. Brent Barton, D-Clackamas, echoing comments of state and local leaders as Oregon looks for a way out of recession.

As part of its sharpened focus on a green economy, the state surveyed businesses to gather statistics on green industries. The survey isn't complete, but Washington's similar effort could be instructive: Washington found approximately 47,000 green jobs, about 1.6 percent of its work force.

Art Ayre, the state of Oregon's labor economist, expects numbers here to be comparable. Low job numbers, Ayre said, don't always imply a small economic impact.

"For example, Oregon's high-tech industry numbered about 40,000 jobs last year," Ayre said. "You could argue that's a small number of jobs, and therefore they aren't very important to the economy. But there is a big spinoff effect on the economy."

There are some headwinds against the trend toward green, Ayre said, such as lower oil prices, although those could be short term. Federal stimulus funds may provide just the right fix.

"In economic spheres it's difficult to predict the future," he said. "How competitive will alternative energy be with the current lower cost of petroleum? With recent reports about China becoming a big player in solar manufacturing, it's clear Oregon will have some competition.

"The negatives could be only temporary. As stimulus funding gets going, it could be a very positive thing for green companies," Ayre said.

Oregon offers substantial incentives to entice clean-tech companies. The business energy tax credit offers a 50 percent tax break for renewable energy projects.

An analysis commissioned by the state Department of Energy claims that tax credit programs in 2007-08 helped to create more than 1,700 jobs. All programs with an effect on revenue will face tough scrutiny as the Legislature works to balance the state budget.

"We want to do everything we can to bring jobs to Oregon as well as conserve energy, but in a budget crisis like this, no program can expect to escape cuts entirely," said State Sen. Ginny Burdick, D-Portland, chairwoman of the Revenue and Finance Committee.

"We're looking at tightening up criteria to make sure the highest value projects are approved."

President Barack Obama's stimulus package includes billions of investment dollars for clean energy. Erick Petersen, vice president of sales and marketing, thinks that's a plus for his solar electronics company, Bend's PV Powered Inc.

"The challenge for the industry now is freeing up new sources of capital to fund projects," Petersen said. "Banks aren't lending. Private individuals aren't investing."

He predicted that money will begin to flow after people figure out how to tap into the government stimulus funds.

Denmark's Vestas Wind Systems, a world leader in wind technology with U.S. headquarters in Portland, expects to add nearly 700 Oregon jobs in the next five years.

"We're a global company and we see the U.S. as a major growth market," said Roby Roberts, senior vice president of external relations. "We think the middle- and long-term outlook is good."

Renewable energy projects won't be the only ventures benefiting from federal money, said Mark Edlen, co-founder of Portland's Gerding Edlen Development Co.

Edlen said he expects a significant percentage of stimulus dollars will be awarded on a competitive basis, including funding for construction projects to retrofit existing buildings for energy efficiency and other improvements.

"It's fun to talk about new construction, but we already have about 76 million square feet of office space in the metro area," he said.

The state could bring more federal dollars into Oregon, Edlen said, by proposing projects that reflect the new administration's priorities. Projects which pair experienced businesses with new companies, minorities, recent graduates and workers from areas with high unemployment may be more competitive, he said.

In the next five years, green company representatives and other employers said they expect to hire engineers, architects, project managers, sustainable development and operations planners, carpenters, laborers, administrative, and marketing and sales personnel. Columbia Gorge Community College in The Dalles estimates that wind power companies will need 500 to 600 technicians in the next four years.

"If I was going to look for a job, it would be in clean energy," Petersen said. "Oregon is perceived as a leader in clean energy. It has a great future."