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Economic Impacts of a Clean Energy Transition in New Jersey

By Joshua R. Castigliego, Sagal Alisalad, Sachin Peddada, and Liz Stanton, PhD - Applied Economics Clinic, June 7, 2022

Researcher Joshua Castigliego, Assistant Researchers Sagal Alisalad and Sachin Peddada, and Senior Economist Liz Stanton, PhD prepared a report on the economic impacts associated with a clean energy transition in New Jersey that aims to achieve the State’s climate and energy goals in the coming decades. AEC staff find that adding in-state renewables and storage, and electrifying transportation and buildings creates additional job opportunities, while also bolstering the state’s economy. From 2025 to 2050, AEC estimates that New Jersey’s clean energy transition will result in almost 300,000 more “job-years” (an average of about 11,000 jobs per year) than would be created without it. AEC also identifies a variety of additional benefits of a clean energy transition, including several benefits that are conditional on the design and implementation of the transition.

In a companion publication to this report—Barriers and Opportunities for Green Jobs in New Jersey—AEC discusses equity, diversity and inclusion in New Jersey’s clean energy sector along with barriers that impede equitable representation in New Jersey’s green jobs.

Download a copy of this publication here (PDF).

Barriers and Opportunities for Green Jobs in New Jersey

By Bryndis Woods, PhD, Joshua R. Castigliego, Elisabeth Seliga, Sachin Peddada, Tanya Stasio, PhD, and Liz Stanton, PhD - Applied Economics Clinic, June 7, 2022

Senior Researcher Bryndis Woods, PhD, Researcher Joshua Castigliego, Assistant Researchers Elisabeth Seliga and Sachin Peddada, Researcher Tanya Stasio, PhD, and Senior Economist Liz Stanton, PhD prepared a report that assesses New Jersey’s current clean energy workforce, identifies barriers to green jobs that impede access to—and equitable representation within—the clean energy sector, and provides recommendations regarding how the State of New Jersey can shape policy and regulations to enhance the equity, diversity and inclusion of its clean energy jobs. AEC staff find that there are important barriers to green jobs that reinforce existing inequities in New Jersey’s clean energy workforce, including: educational/experience barriers, logistical barriers, equitable access barriers, and institutional barriers. Achieving a future of clean energy jobs in New Jersey that is diverse, equitable and inclusive will require overcoming barriers to green jobs with intentional efforts targeted at marginalized and underrepresented groups, such as racial/ethnic minorities, women, low-income households, and people with limited English proficiency.

In a companion publication to this report—Economic Impacts of a Clean Energy Transition in New Jersey—AEC assesses the job and other economic impacts associated with achieving a clean energy transition in New Jersey over the next few decades. 

Download a copy of this publication here (PDF).

Texas Democrats, unions call on Interior to protect workers’ rights in offshore wind leasing

By Zack Budryk - The Hill, June 2, 2022

A coalition of Texas unions and members of Congress is calling on the Biden administration to ensure workers’ rights are protected in the buildout of offshore wind infrastructure in the Gulf of Mexico. 

In a letter sent out Thursday morning, Democratic Reps. Al Green, Lloyd Doggett, Sylvia Garcia, Marc Veasey, Veronica Escobar, Vicente Gonzalez, Sheila Jackson-Lee and Joaquin Castro, who all represent districts in Texas, called on the Bureau of Ocean Energy Management (BOEM) to ensure that Gulf-based wind power projects are built by union labor.

The representatives noted that due to organizing obstacles at the state level, union membership among workers is about one-third the national rate in Texas.

In the letter, the members called on BOEM to ensure that leasing terms for wind projects in the Gulf include a requirement for a project labor agreement (PLA), or a pre-hire collective bargaining agreement between construction unions and contractors. 

The members also called for the use of a community workforce agreement, a PLA with a goal of hiring low-income workers for construction projects. 

The letter follows a public comment submitted in February by the Texas Climate Jobs Project, a coalition of labor unions in the Lone Star State that aims to bridge the gap between addressing climate change and the needs of workers. The group cites what it says is endemic wage theft in the construction business in Texas, and called on BOEM to incorporate local working conditions into its environmental analysis. 

“What we’re asking for is when they do issue those leases, that those leases have requirements in there for job quality, for the ability of workers to come together … and community benefits so that even as we build this renewable capacity, we’re making sure that working people, and people who have historically been disadvantaged by the way energy has been produced in Texas, have a real seat at the table,” Rick Levy, president of the Texas AFL-CIO, said in an interview with The Hill Wednesday. 

Levy described offshore wind as the ideal project to assuage what he said was unease among parts of organized labor about renewable energy’s effect on jobs. 

Addressing U.S. Manufacturing and Service Capacity/Gaps and Technical Standards

By David W. Cash - Labor Energy Partnership, June 2022

This paper attempts to analyze the existing offshore wind (OSW) supply chain and value chain capacity and gaps in U.S. manufacturing, vessels, ports, workforce development and standards. It further identifies opportunities and constraints in meeting goals of equity as the domestic OSW sector develops across all these dimensions. As the Biden administration notes, the development of the OSW sector offers the prospect not only to reduce emissions at scale, but also to seize the opportunity to create jobs along the value chain, create union and high-wage jobs, reduce U.S. sector uncertainties and drive equity, especially in overburdened and vulnerable communities.

Revitalizing U.S. Shipbuilding With U.S.-Built Offshore Wind Installation and Maintenance Vessels

By Will Foster and Riley Ohlson - Labor Energy Partnership, June 2022

This paper assesses the opportunities and challenges for developing a fleet of Jones Act-compliant vessels for installation, maintenance and service of offshore wind infrastructure in the U.S., in consultation with shipbuilding unions.

Stimulating commercial shipbuilding activity is critical to facilitating OSW deployment while demonstrating the potential for this deployment to support and grow good manufacturing jobs.

Arguably, the greatest challenge facing sustained OSW development is neither technical nor financial but political. Many American workers, particularly those in industries tied to fossil fuels, are deeply skeptical of the prospects of a just transition and the fundamental ability for renewable energy production to support middle-class jobs.

The Power of Offshore Wind

By Sarah Clements and Angie Kaufman - Labor Energy Partnership, June 2022

The U.S. offshore wind energy industry is on the rise. As a climate solution with opportunities to create and support good-paying jobs, the offshore wind industry demonstrates the symbiosis between labor and the energy transition. 

This fact sheet was developed by EFI and AFL-CIO under the Labor Energy Partnership. It will help you understand the basics: what offshore wind energy is, why the East Coast has more potential, what the Biden Administration has pledged, and how to build the industry sustainably and equitably. 

Decarbonized Electrification Would Generate Significant Job Gains

By Jim Stanford. - Center for Future Work, May 26, 2022

A new report from the David Suzuki Foundation takes a deep dive into the employment gains that could be achieved through the rapid electrification of Canada’s economy, driven by the expansion of sustainable power generation and infrastructure. The new report, “Shifting Power: Zero-Emissions Electricity Across Canada by 2035”, estimates that 75,000 net new jobs would be created by the expansion of clean electricity generation and use over a 15-year period. This would contribute substantially to the attainment of Canada’s net-zero objectives, as well as to strengthening employment outcomes for Canadian workers as the economy shifts toward sustainable energy sources.

Centre for Future Work Director Jim Stanford provided a supplementary analysis for the report, addressing the economic and employment opportunities associated with decarbonized electrification. He notes those benefits would occur through several complementary channels:

  • Jobs in developing and operating renewable generation systems (including solar, wind, geothermal and hydroelectric power). Construction of these projects will create hundreds of thousands of person-years, with thousands more ongoing jobs in operation and maintenance.
  • New work in expanding and upgrading the electric grid. Major investments will be required to upgrade transmission facilities, install modern control and regulating equipment and prepare the grid for the more complex and variable power distribution requirements associated with dispersed renewable generation.
  • Manufacturing of capital equipment and other material inputs to renewable generation projects. With appropriate value-added industrial strategies to enhance Canada’s industrial footprint in these growing industries, thousands of permanent jobs would be created manufacturing wind turbines, solar power equipment, transmission equipment and materials, and other capital inputs to electrification.
  • Installation and maintenance of new equipment that uses electricity in various industrial and consumer applications — everything from residential heating systems to electric vehicles to large industrial power systems.
  • Jobs in new industries attracted to Canada by the availability of clean, reliable and competitive electricity. Canada’s abundance of primary renewable electricity resources would position us at the forefront of the global transition to sustainable electric energy. That will stimulate interest and investment by industrial firms and financial investors from around the world.

Overstated and misleading warnings that shifting away from fossil fuel use will inevitably cause major job losses and dislocation have already been disproved by the progress in decarbonizing electricity that has already been made. Stanford notes that reliance on fossil fuels in electricity generation in Canada has already fallen by one-third since the turn of the century – yet the electricity generation and distribution industry has created 10,000 net new jobs over that same period. And since renewable energy sources, in general, are more labour-intensive than fossil fuels, this continuing shift can be expected to produce more net job gains in the years ahead.

Jim Stanford’s full commentary for the Shifting Power report is posted here. For more details, please see the Suzuki Foundation’s full report, “Shifting Power: Zero-Emissions Electricity Across Canada by 2035

As Illinois Coal Jobs Disappear, Some Are Looking to the Sun

By Kari Lydersen - In These Times, May 26, 2022

While Illinois phases out coal, clean energy jobs hold promise—both for displaced coal workers, and those harmed by the fossil fuel economy.

Matt Reuscher was laid off a decade ago from Peabody Energy’s Gateway coal mine in Southern Illinois, in the midst of a drought that made the water needed to wash the coal too scarce and caused production to drop, as he remembers it.

Reuscher’s grandfather and two uncles had been miners, and his father — a machinist — did much work with the mines. Like many young men in Southern Illinois, it was a natural career choice for Reuscher. Still in his early 20s when he was laid off, Reuscher ​“spent that summer doing odds and ends, not really finding much of anything I enjoyed doing as much as being underground.”

By fall of 2012, he started working installing solar panels for StraightUp Solar, one of very few solar companies operating in the heart of Illinois coal country. He heard about the job through a family friend and figured he’d give it a try since he had a construction background. He immediately loved the work, and he’s become an evangelist for the clean energy shift happening nationwide, if more slowly in Southern Illinois. With colleagues, he fundraised to install solar panels in tiny villages on the Miskito Coast of Nicaragua, and he became a solar electrician and worked on StraightUp Solar installations powering the wastewater treatment center and civic center in Carbondale, Illinois — a town named for coal. 

Solar installation pays considerably less than coal mining, Reuscher acknowledges, but he feels it’s a safer and healthier way to support his family — including two young sons who love the outdoors as much as he does. 

“You work with people who are really conscious about the environment. That rubs off on me and then rubs off on them,” Reuscher notes, referring to his sons.

Illinois has more than a dozen coal mines and more than a dozen coal-fired power plants that are required to close or reach zero carbon emissions by 2030 (for privately-owned plants) or 2045 (for the state’s two publicly-owned plants), though most will close much sooner due to market forces. Reaching zero carbon emissions would entail complete carbon capture and sequestration, which has not been achieved at commercial scale anywhere in the United States. 

Coal mines also frequently lay off workers, as the industry is in financial duress, though Illinois coal is bolstered by a healthy export market. A ​“just transition” — which refers to providing jobs and opportunities for workers and communities impacted by the decline of fossil fuels — has been an increasing priority of environmental movements nation-wide, and was a major focus of Illinois’ 2021 Climate and Equitable Jobs Act (CEJA). The idea is that people long burdened by fossil fuel pollution and dependent on fossil fuel economies should benefit from the growth of clean energy. Reuscher’s story is a perfect example. 

But in Illinois, as nationally, his transition is a rarity. Solar and other clean energy jobs have more often proven not to be an attractive or accessible option for former coal workers. And advocates and civic leaders have prioritized a broader and also difficult goal: striving to provide clean energy opportunities for not only displaced fossil fuel workers, but for those who have been harmed by fossil fuels or left out of the economic opportunities fossil fuels provided.

Climate change: IPCC report confirms that just transition and green jobs are central to success

By staff - International Trade Union Confederation, May 4, 2022

ITUC General Secretary Sharan Burrow said: “This report lays out a stark reality: global greenhouse gas emissions need to peak before 2025, and we have to cut emissions by 43% by 2030 to give us a chance to limit global warming to 1.5°C.

“That’s a lot, but the report says that solar and wind energy have the potential to deliver over one-third of this target.

“It’s unavoidable: the world needs rapid, deep and immediate investments in jobs to build this infrastructure and deliver the cuts to emissions we need.

“At the same time, the report is clear that we have to leave the oil and gas in the ground to survive. We need fossil fuel infrastructure and subsidies to be repurposed.

“This requires just transition: a plan to convert these jobs in fossil fuels to jobs in clean energy. Every country, every industry, every company, and every investor must have a plan developed, in partnership with working people and their communities, and must implement it rapidly.

Our report with the World Resources Institute and the New Climate Economy showed that this shift makes economic and social sense too. Investing in solar power creates 1.5 times as many jobs as investing the same amount of money in fossil fuels.

“The IPPC has sounded a call to action for jobs in renewables. Investors, companies and governments need to make this a reality now. We know that for every ten jobs in renewable energy, there are another five to ten in manufacturing supply chains and, if these are good jobs with just wages, 30 to 35 jobs in the broader community.”

The IPPC report makes clear the transformational potential of just transition, saying it can “build social trust, and deepen and widen support for transformative changes”. It goes on to say: “This is already taking place in many countries and regions, as national just transition commissions or task forces, and related national policies, have been established in several countries. A multitude of actors, networks, and movements are engaged.”

Sharan Burrow added: “We need unions at the table everywhere to build these plans and to guarantee income support for secure pensions, reskilling and re-deployment.”

Unions Making a Green New Deal from Below: Part 1

By Jeremy Brecher - Labor Network for Sustainability, May 2022

While Washington struggles over job and climate programs, unions around the country are making their own climate-protecting, justice-promoting jobs programs.

While unions have been divided on the Green New Deal as a national policy platform, many national and local unions have initiated projects that embody the principles and goals of the Green New Deal in their own industries and locations. Indeed, some unions have been implementing the principles of the Green New Deal since long before the Green New Deal hit the headlines, developing projects that help protect the climate while creating good jobs and reducing racial, economic, and social injustice.

Even some of the unions that have been most dubious about climate protection policies are getting on the clean energy jobs bandwagon. The United Mine Workers announced in March that it will partner with energy startup SPARKZ to build an electric battery factory in West Virginia in 2022 that will employ 350 workers. The UMWA will recruit and train dislocated miners to be the factory’s first production workers. According to UMWA International Secretary-Treasurer Brian Sanson, “We need good, union jobs in the coalfields no matter what industry they are in. This is a start toward putting the tens of thousands of already-dislocated coal miners to work in decent jobs in the communities where they live.”[1]

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