Inflation Reduction Act (IRA)

By Jeremy Brecher - Labor Network for Sustainability, March 23, 2023

Climate protection will create jobs for workers and economic development for communities. But as fossil fuel facilities are closed down there will also be some jobs lost and some communities will lose taxes and other economic benefits. This Commentary recounts what communities around the country are doing “on the ground” to protect workers and local economies from collateral damage from the transition to climate-safe energy. The next Commentary describes what states are doing to include such protections in their climate and energy programs.

By Nichola Groom - Reuters, March 6, 2023

March 6 (Reuters) - President Joe Biden has pledged that fighting climate change will deliver millions of middle-class jobs with good wages to Americans with union membership cards.

But in the six months since passage of Biden's signature climate change law, a large majority of the $50 billion of announced investments in domestic manufacturing to support the clean energy transition has been in states with laws that make it harder for workers to unionize, according to a Reuters analysis of corporate and state announcements.

Biden's Inflation Reduction Act (IRA) includes tax credits for businesses that produce clean energy components in the United States, and provides higher credits for developers of renewable energy projects if they use products made domestically.

Of the more than 50 EV battery, solar panel and other factories announced since passage of the Act in August, 83% are located in so-called right to work states, which bar companies from requiring workers to pay union dues as a condition of employment, according to a Reuters review of company announcements.

Those facilities represent $43.5 billion in investment, or 88% of the total amount companies have said they will invest.

Reuters came up with the list of projects by crosschecking data compiled by researcher Jack Conness with official company announcements and information on right to work states.

By C.J. Polychroniou - Truthout, March 6, 2023

The Infrastructure Investment and Jobs Act and the Inflation Reduction Act are two landmark bills with the potential to carry significant economic and environmental benefits. They also speak volumes of the role that progressive voices and organizations can play in helping to create sustainable and equitable economic growth and in powering a safer future. Of course, they are imperfect bills, points out National Director of the Green New Deal Network Kaniela Ing in this exclusive interview for Truthout, but they are important stepping stones toward a Green New Deal and advancing justice for frontline and BIPOC (Black, Indigenous, people of color) communities. For now, however, the most immediate concern, Ing says, is making sure that “the full benefits of the Inflation Reduction Act and Infrastructure Investment and Jobs Act reach communities across the country and have a positive impact on the planet and its people.”

Ing was a founding member of the Green New Deal Network (GNDN) as the climate justice director for People’s Action, where he led campaigns to combat climate change. While at People’s Action, Ing co-created and led mass mobilizations around the People’s Bailout and THRIVE Agenda, which largely shaped the suite of federal legislation.

C.J. Polychroniou: Last year, the United States Congress passed the largest federal investment to tackle climate change, the Inflation Reduction Act of 2022. This was preceded by Congress passing the Infrastructure Investment and Jobs Act of 2021, another bill breaking spending records to restore and modernize our infrastructure. What role did the Green New Deal Network and other movement organizations have in passing these bills?

Kaniela Ing: The historic levels of investments passed in the last two years is a direct result of communities across the country fighting for climate, care, jobs and justice. Coalitions like mine have built on the decades of work by leaders and activists, advocating that everyone have access to essential goods and services, be protected from crises, and have the opportunity to thrive.

Since 2020, organizations and activists within the Green New Deal Network (GNDN) have fought for Congress to pass a package that tackles the overlapping crises facing our nation: climate chaos, economic instability, racial injustice, outdated infrastructure and corporate influence over our government. The Green New Deal Network — and its 15 national organizations and 24 state coalitions — crafted the THRIVE Act, a $10 trillion climate, care, jobs and justice bill that would create enough jobs to end unemployment; build modern, reliable infrastructure; and invest in community resources while ensuring labor and justice protections.

By Johanna Bozuwa, Sarah Knuth, Grayson Flood, Patrick Robbins, and Olúfẹ́mi O. Táíwò - Climate & Community Project, March 2023

The Inflation Reduction Act provides tax incentives for corporate investment in renewable energy — but what if “we the people” created our own publicly owned and community controlled renewable energy system?

Building Public Renewables in the United States, a new report from the Climate and Community Project, proposes a “Federal Public Power Program [that] would inject straightforward, public investment into the electricity system.”

The report proposes to “counter the monopolized, fossil-fueled, and profit-driven status quo of today” with a federal program that would invest in:

• Existing publicly owned and cooperative utility energy providers

• Tribal Nations

• Newly authorized Regional Power Authorities

• Grants for democratic development and transparency

The report says, “The transition to renewable energy requires far more than just a technological swap driven by private companies. It requires reordering the electricity system so that it values good-paying jobs, justice, and democracy.”

A federal program could require projects to provide good jobs, prioritize funds to disadvantaged communities, and demand real accountability to the community.

Download this document (PDF).

By Clifford Krauss - New York Times, February 27, 2023

Solar, wind, geothermal, battery and other alternative-energy businesses are adding workers from fossil fuel companies, where employment has fallen.

Emma McConville was thrilled when she landed a job as a geologist at Exxon Mobil in 2017. She was assigned to work on one of the company’s most exciting and lucrative projects, a giant oil field off Guyana.

But after oil prices collapsed during the pandemic, she was laid off on a video call at the end of 2020. “I probably blacked out halfway,” Ms. McConville recalled.

Her shock was short-lived. Just four months later, she landed a job with Fervo, a young Houston company that aims to tap geothermal energy under the Earth’s surface. Today she manages the design of two Fervo projects in Nevada and Utah, and earns more than she did at Exxon.

“Covid allowed me to pivot,” she said. “Covid was an impetus for renewables, not just for me but for many of my colleagues.”

Oil and gas companies laid off roughly 160,000 workers in 2020, and they maintained tight budgets and hired cautiously over the last two years. But many renewable businesses expanded rapidly after the early shock of the pandemic faded, snapping up geologists, engineers and other workers from the likes of Exxon and Chevron. Half of Fervo’s 38 employees come from fossil fuel companies, including BP, Hess and Chesapeake Energy.

Executives and workers in energy hubs in Houston, Dallas and other places say steady streams of people are moving from fossil fuel to renewable energy jobs. It’s hard to track such movements in employment statistics, but the overall numbers suggest such career moves are becoming more common. Oil, gas and coal employment has not recovered to its prepandemic levels. But the number of jobs in renewable energy, including solar, wind, geothermal and battery businesses, is rising.

By Jeff Ordower and Daniel Hunter - Waging Nonviolence, February 22, 2023

The Inflation Reduction Act wasn't written for climate justice, but there’s a ton of money for organizers and movement players to access.

Yes, the Inflation Reduction Act is the most consequential piece of climate legislation in the U.S. Yes, it’s also the only federal legislation. Yes, it’s imperfect. Yes, parts of it are downright vile. Yes, the negotiations exacerbated tensions between insider green organizations and those on the frontlines. 

But let’s be real, nothing more is going to pass at the federal level in the foreseeable future. So now that the IRA is the law of the land, how do organizers and movement players work with it? 

As long-time organizers and climate justice activists, we see organizing opportunities in the roughly $390 billion in climate funding available. As an analysis from Just Solutions points out, the bill was not written for climate justice. But there’s a ton of money that suddenly we can access for poor and disenfranchised communities — and it would be a wasted opportunity to leave that money on the table.

With all its limitations, the IRA can further our campaigns if we use the opportunity.

By Diana DiGangi - Utility Dive, February 16, 2023

Renewable energy developers must meet registered apprenticeship requirements to qualify for certain Inflation Reduction Act tax credits, but they struggle to find workers, an attorney said.

The clean energy industry is booming, but the labor supply remains low. Partnering with community colleges to offer pathways to employment could help the industry meet its increasing demand for workers, said a workforce development official with the Foundation for California Community Colleges. He was speaking at a workforce development session at Intersolar North America on Tuesday.

Community colleges are a source of “untapped talent” and are “built to be nimble” in a way that other sources of higher education may not be, Tim Aldinger, executive director of workforce development for the FCCC, said at the event.

“For the last year and a half, we’ve had more jobs posted than people looking for them. And we are also in a decade-long process where people [nationwide] are opting out of the labor market,” Aldinger said. “And this is particularly prevalent, actually, among working-age men, particularly in jobs that were called ‘blue-collar’ work.”

Though the renewable energy sector has become a significant generator of new jobs, and the Inflation Reduction Act bolstered this growth with tax credits that incentivized new projects and registered apprenticeship programs, the wind energy industry reported difficulty finding qualified applicants in a November report.

By Brett Wilkins - Common Dreams, February 6, 2023

A leading climate action group on Monday published a report revealing that the 94 clean energy projects announced since U.S. President Joe Biden signed the Inflation Reduction Act into law last August are set to create more than 100,000 green jobs.

Climate Power—which published the report as part of a new six-figure national ad campaign touting the growing green economy—said that since the IRA became law without any Republican support last year, "companies are racing forward with massive investments to build our clean energy future."

"New manufacturing in wind, solar, batteries, and electric vehicles—along with storage projects across the country—mean new, good-paying jobs for hard-working Americans," the group continued. "In the six months since the landmark climate and clean energy investments became law, clean energy companies have announced more than 100,000 new clean energy jobs for electricians, mechanics, construction workers, technicians, support staff, and many others."

"As the largest U.S. investment in clean energy and climate in history, this national clean energy plan will continue to reshape and recharge our economy for many decades to come," Climate Power added.

While green groups have generally praised the IRA's historic $369 billion investment in renewable energy production and innovation, activists have condemned provisions including fossil fuel tax credits and mandatory lease sales on public lands and at sea.

The 94 new clean energy projects in the Climate Power report—which are spread across 31 states and have a combined investment value of $89.5 billion—include:

Forty new battery manufacturing sites in places like Van Buren Township, Michigan; Tucson, Arizona; and Florence County, South Carolina. So far, 22 companies have announced plans for new or expanded electric vehicle manufacturing in Pryor, Oklahoma; Montgomery, Alabama; Highland Park, Michigan—and more. A further 24 companies shared plans to expand wind and solar manufacturing in cities including Pueblo, Colorado; Perrysburg, Ohio; and Georgetown, Texas. The majority of the projects are in seven states—Arizona, Georgia, Michigan, Ohio, South Carolina, Tennessee, and Texas.

"Thanks to President Biden's affordable clean energy plan, businesses are investing in manufacturing like never before, and planning to create good-paying jobs in every corner of the country," Climate Power executive director Lori Lodes said in a statement.

"This is only the beginning—we're months after the passage of the Inflation Reduction Act and we're already at the precipice of a renewed manufacturing, made-in-America boom that will create opportunities for millions of Americans, all while reducing toxic emissions that harm the health and wellbeing of our communities," Lodes added.

Last month, the International Energy Agency said in a report that "the world is at the dawn of a new industrial age—the age of clean energy technology manufacturing," and that green manufacturing jobs will more than double by the end of the decade if countries worldwide live up to their climate and energy pledges—a huge "if" given that global emissions remain at record levels.

Read the report (Link).

By Kristin Toussaint - Fast Company, January 27, 2023

The Inflation Reduction Act, which was signed into law last summer, is the U.S.’s largest-ever investment in clean and renewable energy. But it’s also a landmark policy for labor, tying $270 billion in tax incentives (of the bill’s $369 billion clean energy investment) to labor standards that will boost working conditions for those in clean energy jobs.

Those standards are set to go into effect on January 29, and labor advocates say it’s a historic opportunity to create a tremendous number of union jobs in the clean energy economy.

The IRA has tax credits that create financial incentives not only for developers to embark on more clean energy projects but also for those projects to meet high labor standards. Companies can get a 30% tax credit on their qualifying projects—from offshore wind to solar construction to energy storage—but only if they meet certain standards. That includes paying workers a prevailing wage (the federal government sets this rate for work on public projects; states can set theirs higher) and having a certain amount of work done by those in registered apprenticeship programs. (To start, 12.5% of total labor hours must be done by apprentices; that increases to 15% in 2024.)

If clean energy developers don’t meet those standards—say, paying only minimum wage and choosing not to hire any apprentices—they get a tax credit of just 6%. “The IRA provides a substantial and impactful financial benefit for developers to pay good wages, hire apprentices, and really create a pipeline to good careers in the clean energy economy,” says Dave Hancock, director of strategic campaigns at the Climate Jobs National Resource Center, which helps unions develop labor-led climate job coalitions and works toward a “worker-centered renewable economy.”

By Alissa Walker - Curbed, January 25, 2023

“There is always a huge climate benefit — and, I would argue, a safety benefit — to ensuring people have access to excellent public transit,” Transportation Secretary Pete Buttigieg said earlier this month at the Transportation Research Board’s annual meeting. “Even if we weren’t aggressively working to decarbonize existing modes of transportation, that alone is one of the biggest and the best things we can do from a climate perspective.” This is the closest thing to a mic drop that exists at such an event, so the assembled transportation academics, urban planners, and civil engineers erupted into applause. Buttigieg had to pause, letting the hoots fade out before he could finish his remarks. He was onstage with Energy Secretary Jennifer Granholm to announce the first blueprint to decarbonize U.S. transportation by 2050, an unprecedented collaboration between the Departments of Transportation, Energy, and Housing and Urban Development and the Environmental Protection Agency to move the country away from using fossil fuels when, well, moving around.

Despite its many strengths, the blueprint is largely built around two things that have very little to do with what got Buttigieg the most applause from transit professionals: It’s heavily reliant on developing technologies that don’t exist yet and the Biden administration’s goal to have half of the new vehicles sold in 2030 to be electric (a figure closely negotiated with automakers). The latter point is perhaps why the slow but steadily growing number of electric vehicles, or EVs, sold in this country each year has become its own kind of shorthand for the decarbonization revolution. (“Electric Vehicles Keep Defying Almost Everyone’s Predictions,” “Electric Vehicle Sales Hit a Tipping Point in 2022,” “Electric Vehicles = 10% Of New Vehicle Sales Globally!”) A green future, the story goes, looks a lot like today — it’s just that the cars on the road make pit stops at charging stations instead of gas stations. But a one-for-one swap like that — an EV to take the place of your gas guzzler — is a disaster of its own making: a resource-intensive, slow crawl toward a future of sustained high traffic deaths, fractured neighborhoods, and infrastructural choices that prioritize roads over virtually everything else. And considering what it would take to produce that many cars, the vision being sold by the Biden administration about an EV in every driveway is more than just a fantasy — it’s an environmental nightmare.