Clean Energy Jobs a pathway to decent work for California’s disadvantaged workers; plus economic benefits of California’s climate policies

Three recent studies from University of California at Berkeley provide evidence of the job benefits of clean energy industries.  The first,“Diversity in California’s Clean Energy Workforce”, from Berkeley’s Center for Labor Research and Education Green Economy Program, claims to be the first quantitative analysis of who is getting into apprentice training programs and jobs on renewables. It states that  “ Joint union-employer apprenticeship programs have helped people of color get training and career-track jobs building California’s clean energy infrastructure”.   The authors attribute this to the recruitment efforts by unions, as well as the location of many renewable power plants in areas where there are high concentrations of disadvantaged communities.  It  presents data for the ethnic, racial and gender composition of enrollment in apprenticeship programs in 16 union locals for electricians, ironworkers and operating engineers. The report finds significant variation in racial and ethnic diversity amongst  unions,with women’s participation minimal, (ranging from 2 – 6%) in all cases. Uniquely, the study also examined the impact of clean energy construction on disadvantaged workers, finding that  43% of entry-level workers live in disadvantaged communities, and 47% live in communities with unemployment rates of at least 13%.  Further, it states:  “Most large-scale renewable energy plants have been built under project labor agreements. These agreements require union wage and benefit standards and provide free training through apprenticeship programs.”

Two other reports were released by the Center for Labor Research and Education, the Center for Law, Energy and the Environment (CLEE) at UC Berkeley Law,  and advocacy group Next 10.   The Economic Impacts of California’s Major Climate Programs on the San Joaquin Valley: Analysis through 2015 and Projections to 2030 (January)   and  The Net Economic Impacts of California’s Major Climate Programs in the Inland Empire: Analysis of 2010-2016 and Beyond  (August)  examine the impact of climate programs on  California’s most environmentally vulnerable regions.  The “Inland Empire” (defined as the counties of San Bernardino and Riverside) report , examined four key policies: cap and trade, the renewables portfolio standard, distributed solar policies and energy efficiency programs.  These policies were found to have brought a net benefit of $9.1 billion in direct economic activity and 41,000 net direct jobs from 2010 to 2016 .  Policy recommendations to continue these benefits:  “reward cleaner transportation in this region; help disburse cap-and-trade auction proceeds in a timely and predictable manner; and create robust transition programs for workers and communities affected by the decline of the Inland Empire’s greenhouse gas-emitting industries, including re-training and job placement programs, bridges to retirement, and regional economic development initiatives.”

The three reports were released to be part of the public debate about extending the cap and trade legislation (passed in July) and about California’s Senate Bill SB100 , which passed 2nd reading in the legislature on September 5.  SB100 would toughen existing targets to  60% renewable electricity by 2030, and  require utilities to plan for 100% renewable electricity by 2045 .

Ontario’s Climate Action Plan: beyond job creation to job quality for building trades workers

solar-panel-house_4A report released on April 19th aims to contribute to a strong, future-proofed green jobs strategy for Ontario.  Building An Ontario Green Job Strategy: Ensuring the Climate Change Action Plan creates good Jobs where they are needed most  focuses on the building sector provisions within Ontario’s Climate Change Action Plan (June 2016)  – which are estimated at 28 – 31% of the budget allocations of the Action Plan.

Building an Ontario Green Job Strategy states:  “Ontario’s investment of C$1.91 billion to $2.73 billion in retooling buildings, as outlined in the Climate Change Action Plan of 2016 , could create between 24,500 to 32,900 green jobs over the five-year funding plan with a further 16,800 to 24,000 jobs created from the reinvestments of energy cost savings into the economy.”  Job creation forecasts were calculated using  three  job multipliers, including that from the 2012 report by Heidi Garrett-Peltier, Analysis of Job Creation and Energy Costs Savings , published  by the Institute for Market Transformation and the Political Economy Research Institute at University of Massachusetts.

Beyond the evidence of the job creation potential of energy efficiency investments, the report also makes significant recommendations to ensure job quality.  Amongst the recommendations for the provincial government: Conduct a high-carbon jobs census and low-carbon skills survey so that workforce planning will work from an accurate base; make use of existing training programs and facilities; push for rigorous standards (specifically, run a pilot project of a Canadian Building Performance Institute, modelled after the U.S. BPI, to oversee credentialling and certification for trades), and consider an Energy Efficiency Portfolio Standard; investigate support for domestic industries (avoiding any WTO sanctions by following  a Sustainable Energy Trade Agreement model); work to implement carbon border adjustments to avoid carbon leakage ; and design programs to stand the test of time and changes to the governing party.

Building an Ontario Green Job Strategy recognizes that the Ontario Climate Change Action Plan included language about Just Transition, but it recommends strengthening and clarifying that language.  It also holds up two models for  tendering and procurement processes:  Community Benefits Agreements (CBA), which ensure that infrastructure investments result in social and economic benefits to the community and citizens of the  immediate neighbourhood –  with a case study of the Eglinton Crosstown LRT project in Toronto,  and High Road Agreements,  where contractors are assessed against an established set of sustainable contracting standards and community benefits- with a  case study of a  Portland Oregon retrofit project.

The report was written by Glave Communications for the Clean Economy Alliance , Environmental Defence, and Blue Green Canada , “with the participation of the United Steelworkers, UNIFOR, Clean Energy Canada, the Toronto Atmospheric Fund, the Toronto and York Region Labour Council, the Labour Education Centre, the Columbia Institute, Canadian Solar Industries Association, Ontario Sustainability, the Registered Nurses Association of Ontario, and Evergreen.”


Fossil fuel approvals, job creation, and the gap in Canada’s emissions goals

one-million-jobs-e1407607008390 Assessing the Federal Government’s Actions on Climate Change   was released by the  Green Economy Network in February (with a 4-page Executive Summary here ) . It estimates the job creation value of four fossil fuel projects under active consideration – Petronas LNG in B.C., Kinder Morgan TransMountain Pipeline, Enbridge Line 3, and Keystone XL Pipeline –  using figures from the proponents of those projects, and concludes that the estimated total investment of $60.3 billion would result in 380,900 direct, indirect, and induced person job years of employment over 5 years, many of which would be in the U.S.  The investment would also increase Canada’s annual GHG emissions by 89.9 megatonnes. In comparison, GEN estimates  the job creation and emissions impacts of that same $60.3 billion investment if it were directed to energy efficiency, renewable energy, and transit, as recommended in its One Million Climate Jobs Plan .  GEN concludes that the green investments would create 784,570 person job years of employment over five years while reducing annual GHG emissions by up to 190 Mt after ten years.

In its discussion of the government’s Pan-Canadian Framework on Clean Growth and Climate Change , the Green Economy Network  notes that “it is unclear how the emissions from federally approved fossil fuel infrastructure projects are factored into the PCF”.  Regarding the Pan-Canadian Framework considerations of employment and Just Transition issues , the report further states:  “Calculations for job creation from each of the proposed measures are completely absent”.  Though the term “Just Transition” gets a mention, “there are no specific measures outlined to ensure that workers and their families are supported in the transition to a low-carbon economy.”  … “The Framework also misses a significant opportunity to demonstrate how major public infrastructure projects can be designed to include Just Transition measures, including skills training and integrating mandatory requirements for contractors to sponsor apprenticeships, which will aid in increasing apprenticeship completion rates and ensure that our workers have the skills that they need.”     GEN makes recommendations to improve these deficiencies.

The Green Economy Network  represents the concerns and solutions of an alliance of approximately 25 labour unions, environment and social justice organizations in Canada.  Their signature One Million Jobs campaign is part of an international campaign which includes the U.K. and South Africa.

Clean Energy creates more jobs than fossil fuels, with a wage premium

Following on the January 2017  report US Energy and Employment  from the U.S. Department of Energy, more evidence of the healthy growth of the clean energy industry comes in a report  by the Environmental Defense Fund Climate Corps and Meister consultants.  Now Hiring: The Growth of America’s Clean Energy and Sustainability Jobs    compiles the latest statistics from diverse sources,  and concludes that “sustainability” accounts for an estimated 4.5 million jobs (up from 3.4 million in 2011) in the U.S. in 2015. Sustainability jobs are defined as those in energy efficiency and renewable energy, as well as waste reduction, natural resources conservation and environmental education, vehicle manufacturing, public sector, and corporate sustainability jobs.  Statistics drill down to wages and working conditions – for example,  average wages for energy efficiency jobs are almost $5,000 above the national median, and wages for solar workers are above the national median of $17.04 per hour.  Comparing clean energy with the fossil fuel industry, the report states that the  1.4 million jobs  in energy efficiency construction and installation alone is more than double the number of workers in fossil fuel mining, extraction and electric power generation combined.  Now Hiring states that for every $1 million invested in building retrofits and industrial efficiency,  8 direct or indirect jobs are created;  in comparison,  3 are created by a comparable investment in the fossil fuel industry. This final comparison of job multiplier effect  is based on  “Green versus brown: Comparing the employment impacts of energy efficiency, renewable energy, and fossil fuels using an input-output model”  by Heidi Garrett Pelletier at PERI, and appears in the February 2017 issue of Economic Modelling.

Energy Efficiency: measures of job creation and carbon reduction

The American Council for an Energy-Efficient Economy (ACEEE), a long-time advocate and researcher about the value of energy efficiency , published a blog  on January 10, 2017, arguing that energy efficiency creates at least 1.9 million full- and part-time jobs across the United States, almost 10 times as many as oil and gas extraction. The blog is largely spent in summarizing a December 2016 report, Energy Efficiency Jobs in America: A comprehensive analysis of energy efficiency employment across all 50 states  , which sees an optimistic future in 2017.  Based on surveys of employers from approximately 165,000 U.S. companies, the report states that energy efficiency employers are expecting employment growth of approximately 245,000 jobs (a 13% growth rate) in 2017.   Energy Efficiency Jobs in America also calls for state and federal policies to support or enhance this growth, including:   Advancing energy efficiency standards set by the U.S. Department of Energy for appliances and equipment. • Strengthening building codes at the state and local levels to capture all cost-effective energy efficiency opportunities at the time of design and construction • Accelerating energy efficiency improvements in devices and buildings that use electricity or natural gas through utility programs, state policies such as energy efficiency resource standards, or by investing in all cost-effective energy efficiency resources, and  • prioritizing the role of energy efficiency in developing and/or strengthening clean energy standards at the state level.  Energy Efficiency Jobs in America was released by two U.S. advocacy associations: Environmental Entrepreneurs (E2), and E4TheFuture.

The ACEEE, perhaps best known for its annual Energy Efficiency Scorecards , released a   White Paper in December, advocating energy efficiency initiatives to  reduce carbon emissions. In  Pathway to Cutting Energy Use and Carbon Emissions in Half , the ACEEE analyzed 13 “packages” of energy efficiency measures which, when combined, could reduce energy use by 34% and carbon emissions by 35% by 2040.  Improvement in industrial energy efficiency –  factories, commercial buildings, transmission and distribution systems, and power plants – was seen to have the largest potential impact at 20.8%.