Green Labor Journal - Working for a Substainable Future

Jobs Impact of a 25 Percent National Electricity Standard

New Navigant Consulting study projects 2.36 million job-years of work by 2025

By Jerry Brown Apr 27, 2010

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A February 2010 study by the independent firm Navigant Consulting, Inc., found that "a 25% by 2025 national RES would support an additional 274,000 renewable energy jobs, the equivalent of a cumulative 2.36 million job-years of work – over a no-national policy option. This total is also significantly higher than the expected jobs supported in the current House and Senate provisions under consideration in Congress."

The Final Report of the study, Jobs Impact of a National Renewable Electricity Standard, released by the RES Alliance for Jobs, also found that the greatest benefits from high near- and long-term national Renewable Electricity Standards (RES) would be felt in the Southeastern United States and in areas that have long been the nation’s traditional manufacturing base.

The Report concludes that "job growth in the wind, solar, biomass, waste-to-energy and hydropower industries would particularly benefit the Southeastern U.S. and manufacturing states whose Senators have questioned the viability of renewable electricity."

This study goes on to state that, without strong RES targets, industries such as biomass and wind would stagnate and lose jobs to overseas competitors, and possibly (in the case of biomass) collapse altogether. 

As a result, "meaningful near-term RES targets (12% by 2014 and 20% by 2020) are critical to ensure global competitiveness for the U.S. renewable electricity industry, and stronger long-term targets (25% by 2025) are needed to attract long-term manufacturing investment and project development."

Green Jobs Potential of National RES
The study breaks down the clean energy and green jobs potential of a stronger, national RES as follows:
·    With a strong near-term target, 67,000 additional jobs will be supported by 2014, with the largest gains in MI, OH, PA, FL, CA, TN, TX and CO.
·    A 20% RES in 2020 will support 191,000 more renewable electricity jobs across the US than without a national policy.
·    A 25% national RES by 2025 will result in 60,000 more biomass related jobs than without a national RES.
·    A 25% national RES by 2025 will result in 34,000 more hydro related jobs than without a national RES, with job impacts in every state.
·    A 25% national RES by 2025 will result in15,000 more waste-to-energy related jobs than without a national RES.
·    A 25% national RES by 2025 will result in 50,000 more solar-related jobs throughout the United States than without a national RES.
·    A 25% national RES by 2025 will result in 116,000 more wind power industry related jobs than without a national RES.



State by State Jobs Growth
Also according to the study, the states that have the most to gain from a strong national RES are the following:
·    Southeastern states like Louisiana, Alabama, Kentucky, Tennessee Georgia and Florida can benefit from substantial biomass and municipal solid waste-to-energy;
·    Traditional manufacturing states like Ohio, Michigan, Pennsylvania and Indiana, will gain from growth in a wide range of technologies;
·    Midwestern states like North and South Dakota, Iowa, Kansas, Nebraska and Illinois,
which are home to major wind resources;
·    Western states like Colorado, Arizona, Oregon and California, where solar, wind and hydropower have significant growth potential; and
·    States that do not currently have renewables standards or targets, like Indiana, Florida, Virginia, Kentucky, Tennessee, Georgia, Arkansas, Oklahoma and Alabama, would benefit considerably.

Big Gains for Manufacturing and Construction
The job possibilities in these states are considerable, with two sectors, manufacturing and construction/craft trades, showing the highest gains ─ equal to 75% of all jobs increases.  Other growth sectors include engineering & technical/professional services, operation & maintenance, administration and management.



Rick Miller, former President of the National Hydropower Association noted that “Strong national policy will spur the creation of hundreds of thousands of clean-energy jobs and strengthen our global competitiveness. That’s why we’re calling on Congress to recognize the opportunities for using renewable energy as an economic catalyst and enact a strong RES that will bring these benefits to all Americans now.”

Unfortunately, the temporary nature of the Stimulus Plan’s (American Recovery and Reinvestment Act 2009) direct funds and tax credits do not guarantee long-term markets for clean energy technology.  Nor do they provide sufficient incentives for many foreign and domestic cleantech companies to base their manufacturing facilities in the U.S.  

Although the Stimulus Plan represents a solid first step toward a clean energy future, a strong, national Renewable Energy Standard would ensure the predictable, long-term market necessary to generate new manufacturing facilities and good, green jobs in the clean technology sector.

“The need for meaningful Congressional action is urgent,” said Charles Gay, President of Applied Solar at Applied Materials. “The U.S. is in a highly competitive international contest to lead scaling and adoption of the technologies which will assure our clean energy future. Other countries are racing ahead on renewable energy and many have caught up and passed by our domestic industry. Congress needs to raise the RES targets and pass legislation this year.”

Editor’s note: This article is based on, and quotes extensively from, the Final Report, Jobs Impact of a National Renewable Electricity Standard, by Navigant Consulting, February 2, 2010; and the RES-Alliance for Jobs Press Release, "Stronger National Renewable Electricity Standard Needed for Significant Clean Energy Job Sustainability and Growth, Study Finds," February 4, 2010.