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FOCUS: Drove my EV to the levee but the levee was dry

When the president of South Korea smoothly belts out the first verse of the Don McLean classic “American Pie” at a White House state dinner, you can be sure the two countries are collaborating on much more than just the occasional live music performance.

That certainly seems to be the case within the booming EV industry, at least judging from the latest batch of clean economy announcements tracked by E2.

A rendering of Seohan’s Georgia facility announced in April. It will manufacture auto parts for a larger, multi-billion-dollar Hyundai plant nearby. (Photo courtesy of Seohan)

Last month, there were 14 project announcements across 12 states that are expected to drive $2.23 billion in private-sector investments and create at least 1,821 jobs. One of those announcements came from Georgia, where Gov. Brian Kemp (R) announced that Seohan Auto Georgia, a Hyundai parts supplier, will invest $72 million in a new facility in Liberty County. The project is expected to create 180 jobs helping to manufacture shafts, axels and brake systems.

This is at least the 11th major clean economy project announcement made by a South Korean company since the Inflation Reduction Act was signed into law last summer. Ahead of the state dinner/rock performance last week, a fact sheet released by the U.S. Embassy in the Republic of Korea highlighted a few of them, including Hyundai’s new multi-billion-dollar plant in Bryan, Georgia (8,100 jobs, according to the White House), as well as Hanwah Q Cell’s $2.5 billion expansion of its solar factories in Dalton, Georgia.

Both these projects were previously tracked by E2. The new Seohan facility will supply Hyundai’s Bryan plant.

There are several reasons for the steady pace of outsized investments South Korean companies are making in the clean economy in Georgia and other states. One is the proposed federal rule that stipulates tax credits cannot go to clean vehicles that contain battery components manufactured by “a foreign entity of concern,” which is likely to benefit South Korea at the expense of China, at least for now.

At the same time, states like Georgia have been actively courting South Korean companies that are operating in the clean economy, whether it’s Seohan, Hyundai, SK, LG or others. Georgia’s collaboration with South Korea has been so fruitful that in January Gov. Kemp paused his State of the State address to ask Yoonie Kim, his director for Korean investment, to stand and be recognized.

In the months ahead, more opportunities – and challenges – are sure to emerge around foreign investment in the U.S. clean economy. For now, though, the U.S. and South Korea are singing the same tune.

Spotlight

DAVID COHEN-TANUGI
Cleantech venture builder
MIT Proto Ventures
E2 member
Boston, MA

David Cohen-Tanugi is a physicist, entrepreneur, French-American dual national, China expert and former NRDC fellow. At the end of April, he started a new position as the head of cleantech commercialization at MIT’s new venture studio, Proto Ventures. E2 recently caught up with Cohen-Tanugi to talk about his career, venture building and the Inflation Reduction Act.*

How would you describe where you fit into the wider professional landscape?

My specialty is developing and commercializing clean energy technologies. Almost by definition, that requires being a strong technologist and scientist on one hand, but also a savvy, real-world professional      with business and leadership experience. I try to bridge those two worlds for maximum impact.

What motivates you?

Two things: the end goal of a cleaner, more sustainable and more just planet, and the desire to make sure that scientific breakthroughs and innovative technologies are being put to good use to tackle climate and sustainability challenges.

How are you helping to make this happen?

I’ve just started a new role as MIT’s first clean energy venture builder. MIT has identified that while there is a lot of entrepreneurial interest among some researchers and students – with dozens or even hundreds of would-be entrepreneurs and teams and spin-offs – big swaths of the technology and knowledge portfolio at MIT are still not being applied in any impactful way.

My job for two years will be to identify the problems in the clean energy space that are the most pressing and that have technology gaps with no clear solutions today. If we then rethink how we approach the technologies, inventions, patents and capabilities coming out of MIT that are not currently being put to good use, that could have a tremendous impact on our clean energy future. At Proto Ventures, we’re working to commercially deploy breakthrough innovations that leverage MIT research and that will have a strong positive impact on the availability of clean energy. We want to use knowledge and MIT’s exceptional people to solve the world’s great challenges in clean energy.

How closely do you pay attention to the cleantech policy landscape?

Certainly, as I enter this new role at MIT and ask myself which problems are the most pressing, I won’t just be looking at dollars and cents and business problems, I’ll also try to get a sense of where the world is headed, where it needs to be headed and where the current policy landscape takes things in the U.S.: What needs to happen? Is there a big gap between where we will need to be, and what’s possible today?

What about the IRA?

The IRA has a big emphasis on domestic production requirements. I think that’s powerful politically, to make sure this is a piece of legislation that has staying power and has broad bipartisan support, including support from different states and different stakeholder groups. It’s also tremendously important that the IRA has a particular emphasis on growing a workforce that benefits from the clean energy transition and the growth of this new sector of the economy.

At the same time, America is a big part of an interdependent global economy, and different countries have a lot to benefit from each other’s competitive strengths and projects. So we need to find a way to make sure all the countries, continents and companies that are aggressively tackling climate change and deploying energy technology can leverage each other and benefit from each other, as opposed to being primarily in competition with each other, or else we just end up with a lot of wasted opportunity. That’s something where I think there are still a lot of open questions, and it’s fascinating to look at.

The IRA also amplifies clean energy venture building at a leading university like MIT by providing the long-term price signals that are essential for raising venture capital in the clean energy sector. The breakthrough technologies and cleantech ventures that come out of Proto Ventures will doubtless leverage the IRA to reach the scale and impact that we really need to transition to a green, clean jobs economy.

*This interview has been edited and condensed.

Opportunities

National funding opportunity calendar for the Bipartisan Infrastructure Law
This document highlights funding opportunities that communities can apply for today, as well as a calendar of key upcoming funding opportunities for 2023. For more information on the full set of programs in the Bipartisan Infrastructure Law, including upcoming milestones, visit build.gov. Read more.

Request for Information: Scaling the U.S. solar manufacturing workforce
DOE’s Solar Energy Technologies Office released an RFI to better understand the anticipated quantity, quality and accessibility of solar manufacturing roles. The RFI will solicit feedback from unions, industry, academia, research laboratories, government agencies and other stakeholders on the challenges and opportunities associated with a historic expansion of the U.S. solar manufacturing workforce. Read more.

Biden-Harris Administration proposes strongest-ever pollution standards for cars and trucks to accelerate transition to a clean-transportation future
The EPA announced new proposed federal vehicle emissions standards that will accelerate the ongoing transition to a clean vehicles future and tackle the climate crisis. The new proposed emissions standards for light-, medium-, and heavy-duty vehicles for model year 2027 and beyond would significantly reduce climate and other harmful air pollution, unlocking significant benefits for public health, especially in communities that have borne the greatest burden of poor air quality. At the same time, the proposed standards would lower maintenance costs and deliver significant fuel savings for drivers and truck operators. Read more.

EPA releases framework for the implementation of the Greenhouse Gas Reduction Fund
The EPA released new details about the design of the $27 billion Greenhouse Gas Reduction Fund, a first-of-its-kind, national-scale competitive grant program created by the President’s Inflation Reduction Act. This program will leverage public investment with private capital and finance clean energy projects that reduce pollution and energy costs, increase energy security and create good-paying jobs, especially in low-income and disadvantaged communities and places that have historically shouldered the burden of pollution. Read more.

DOE: $450 million to deploy clean energy projects on mine lands
DOE announced up to $450 million from the Bipartisan Infrastructure Law to advance clean energy demonstration projects on current and former mine lands. Approximately 17,750 mining sites occupy 1.5 million acres in the U.S. Repurposing this extensive area of land for clean energy projects could generate up to 90 GW of clean energy – enough to power nearly 30 million American homes – while reducing greenhouse gas emissions that jeopardize public health and pollute local ecosystems. Read more.

Biden-Harris Administration announces availability of $1 billion to help farmers, ranchers and rural businesses invest in renewable energy systems and energy-efficiency improvements
The USDA announced it is accepting applications for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the grants available under the Rural Energy for America Program, with funding from the Inflation Reduction Act. Read more.

Energizing Rural Communities Prize
The $15 million Energizing Rural Communities Prize challenges individuals and organizations to develop partnership plans or innovative financing strategies to help rural or remote communities improve their energy systems and advance clean energy demonstration projects.  The application period for Phase 1 closes May 24. This prize is part of the $1 billion Energy Improvements in Rural or Remote Areas Program, created by DOE’s Office of Clean Energy Demonstrations. The program supports projects that improve the resilience, reliability, safety, availability and environmental performance of energy systems in rural or remote areas of the U.S. with populations of no more than 10,000 people. Read more.

Biden-Harris Administration announces nearly $585 million from Bipartisan Infrastructure Law to repair aging water infrastructure, advance drought resilience
The White House announced a nearly $585 million investment from the Bipartisan Infrastructure Law for infrastructure repairs on water delivery systems throughout the West. Funding will go to 83 projects in 11 states to improve water conveyance and storage, increase safety, improve hydro power generation and provide water treatment. Among the projects selected for funding are efforts to increase canal capacity, provide water treatment for Tribes, replace equipment for hydropower production and provide necessary maintenance to aging project buildings. Projects will be funded in Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota and Washington. Read more.

Biden-Harris Administration announces historic funding for 37 projects to improve safety, fix old, leaky gas pipes and create jobs
The U.S. Dept. of Transportation and the Pipeline and Hazardous Materials Safety Administration announced $196 million in grants for 37 projects across 19 states. This new grant program helps improve public safety, protect public health and reduce methane emissions from natural gas distribution pipes. The Natural Gas Distribution Infrastructure Safety and Modernization grant program, established by the Bipartisan Infrastructure Law, provides nearly $1 billion in funding over the course of five years to modernize municipally and community-owned natural gas distribution pipes. Read more.

FOCUS: South Carolina earns the (clean economy) top seed

March Madness recently gripped central South Carolina – and it wasn’t just because the top-seeded Gamecocks advanced to the women’s Final Four for the third consecutive season. Last month, a 100-mile swath of the state cutting straight through the University of South Carolina’s hometown featured four major clean economy announcements, more than any other state tracked by E2.

The projects stretched from Chester County, where Albemarle Corp.’s new $1.3 billion flexible lithium processing facility is expected to create 300 jobs paying an average annual salary of $93,000, down through Orangeburg, where a new $33 million solar PV manufacturing plant could create 200 jobs. In between, Volkswagen’s plant in Blythewood will revive the brawny, utilitarian Scout Motors brand as a new EV offering, while Cirba announced a major lithium-ion battery recycling facility in Columbia, just down Shop Road from USC’s Colonial Life Arena, where the Gamecocks haven’t lost since 2020.

Combined, these four projects are expected to bring more than $3.6 billion in investments and nearly 5,000 jobs to the heart of South Carolina – more than half of every clean economy job that was announced nationwide last month.

The EV and battery projects are particularly notable, and not just because of their size. They are the latest evidence the country’s new Battery Belt is firmly entrenched in the South, where companies are focusing investments to maximize on the landmark Inflation Reduction Act. The Battery Belt is helping connect EV automakers, mining companies, semiconductor manufacturers, recycling centers, charging plants and gigafactories all while taking advantage of the region’s trained workers and convenient transportation links.

“We wanted a location with access to nearby rail and port transportation and the availability of skilled workers,” said Albemarle CEO Kent Masters. “We’re excited to have chosen South Carolina and to be closer to our customers as the supply chain is built out in North America.”

In addition to its announcement in South Carolina in March, Albemarle previously announced it is restarting a mine just across the state line in Kings Mountain, N.C., that’s expected to produce enough lithium to power 750,000 electric vehicles annually. Albemarle is also planning a state-of-the-art lithium battery technology research center in nearby Charlotte.

Other battery and EV projects announced in March in the South came from Georgia, Kentucky and Texas. Of course, all these new EVs rolling off assembly lines can be powered by renewable energy, and there were two big projects in that space announced elsewhere in the country last month – a $1.45 billion, 1,200-megawatt wind project in Oklahoma and a $600 million solar project in Ohio.

Spotlight

CLAUDIA MORSE
Program manager, Form Energy
E2 Emerging Leader
Denver, Colorado

What sparked your interest in clean energy?

I grew up and currently live in Colorado. By the time I was in high school, I had traveled across a lot of the state. I was seeing renewable energy everywhere. There’s the National Renewable Energy Lab in Golden; massive wind farms in the plains near Pueblo; and there’s also a lot of community solar in rural areas. Colorado gets 300 days of sunshine each year. The scale of community solar is so easy for young people to grasp, and it certainly captured my imagination. From there I went to college in upstate New York, where I basically designed my major in inorganic chemistry for renewable energy applications. The interest in renewables among my peers and among students is amazing; now, my college has basically formalized a curriculum for what was once my own bespoke major.

You entered the clean energy workforce only recently, in 2019. What have been some initial impressions of the sector?

I’ve already seen amazing growth. I started out as an intern at an EV battery company called Solid Power. It was a great experience: less than 50 people worked there when I started, and about 250 were there when I left in January. It was chaotic and fun. I onboarded my boss and our whole team. I’ve also worked with lots of people who have transitioned from oil and gas. The vocabulary is different, but a lot of the skills required are similar and a lot of the former oil and gas workers I know are now really passionate about clean energy.

What are you working on now?

I’m a program manager for a utility-scale energy storage/iron-air battery company called Form Energy. We are currently pursuing DOE grants from the Bipartisan Infrastructure Law that will help us decarbonize steel. The BIL is a big focus for us right now because we’re working on utility-scale technologies and we’re pre-commercialization. The IRA has more consumer-facing provisions, but it’s definitely helping raise the whole profile of our industry and it will likely be a big factor for us as time goes on. We recently announced a big contract with Xcel. We’re working with them on iron-air batteries in states with strong renewables policies, like Colorado and Minnesota. We’re also redeveloping an old steel mill in West Virginia. It’s a $760 million iron-air battery project that’s expected to create 750 new full-time jobs.

Opportunities

DOE announces $750 million to advance clean hydrogen technologies 

EERE’s Hydrogen and Fuel Cell Technologies Office announced availability of $750 million for research, development, and demonstration efforts to dramatically reduce the cost of clean hydrogen. This is the first tranche of implementation of two provisions contained in the Bipartisan Infrastructure Law. Read more.

DOE announces $156 million to drive industrial decarbonization  

EERE’s Industrial Efficiency and Decarbonization Office announced a $156 million funding opportunity to advance high-impact projects that will reduce greenhouse gas emissions across the U.S. industrial sector. This opportunity includes: decarbonizing industrial heat, low-carbon fuels, cross-sector R&D, decarbonizing chemicals, decarbonizing iron and steel and decarbonizing forest products. Concept papers due April 17. Read more.

DOE announces $14 million to optimize production of affordable biofuels and biochemicals 

DOE announced $14 million in funding to optimize the production of affordable biofuels and biochemicals while reducing carbon emissions. This opportunity will accelerate the growth of the bioeconomy by supporting the development of high-impact technologies that convert domestic biomass and waste resources into affordable biofuels and bioproducts. Concept papers due April 21. Read more.

DOE launches prize to harness the power of ocean waves with new technologies

EERE’s Water Power Technologies Office launched the Innovating Distributed Embedded Energy Prize, which will award up to $2.3 million over three phases to competitors investigating novel technologies for harnessing and converting the power of ocean waves into usable types of energy. First phase submissions due August 25. Read more.

DOE launches prize to strengthen microelectronic supply chains through microbattery design and commercialization

EERE’s Advanced Materials and Manufacturing Technologies Office launched the Microbattery Design Prize. This two-stage competition will award up to $1.1 million in federal funding, as well as performance and safety testing services with the U.S. National Laboratories, to innovative, small-capacity battery design projects that improve performance, safety and recyclability. Phase 1 applications due by July 1. Read more.

Biden-Harris Administration announces availability of $16 million for pollution prevention in environmental justice communities

The EPA announced the availability of $16 million for two new grant opportunities to support states and Tribes in providing technical assistance to businesses seeking to develop and adopt pollution prevention practices that advance environmental justice in underserved communities. EPA has published two Request for Applications investments made possible by the Bipartisan Infrastructure Law. Read more.

DOE launches second round of Clean Energy Innovator Fellowship Program

DOE launched the second round of the Clean Energy Innovator Fellowship, a workforce development program matching recent graduates and new energy professionals with key energy organizations to help advance clean energy solutions. Applications for host institutions due April 27. Applications should include project scope and describe the institution’s needs. Applications for Innovator Fellows open May 22 and are due June 8. The fellowship is open to recent graduates and mid-career professionals in fields relevant to electricity generation, transmission and distribution. Read more.

Summary:

Colorado’s clean energy sector employed 61,179 workers by the end of 2021 — an increase of 5.2 percent. The energy efficiency sector continued to lead the field, accounting for 56 percent of all state clean energy jobs, followed by renewable energy and clean vehicles.

• 1 in 10 construction jobs in Colorado are in clean energy
• 27% growth in clean vehicles led all clean energy sectors
• 42% of all energy industry jobs in Colorado are in clean energy
• Small businesses (<20 employees) accounted for about 2 out of every 3 clean energy jobs

Colorado Clean Energy Employment, 2021

FOCUS: New battery projects creating jobs, solutions

It’s a common question when it comes to any discussion about electric vehicles (EVs): What to do with the old batteries?

One huge solution is now on the way.

In February, the Department of Energy Loan Programs Office announced a $2 billion loan to Redwood Materials to build and expand a factory in Nevada that will recycle materials in spent lithium-ion batteries and recover anode and cathode materials that can be used to build new batteries. The funding was made possible by the Inflation Reduction Act (IRA).

The massive Nevada project is expected to create approximately 3,400 construction jobs and 1,600 full-time jobs once the plant is up and running. It’s one of the latest major announcements in what’s shaping up to be a very busy year across the country for clean energy.

To help stay on top of major projects like these – as well as smaller ones that could slip through the cracks –E2 is launching Clean Economy Works, a rundown delivered to your inbox near the beginning of each month of clean energy project announcements made possible in part due to the IRA and other recently enacted federal policies.

E2 has long expertise in this space: We’ve been closely tracking clean energy jobs and project announcements for more than a decade, and we know there’s never been a more crucial time to know what’s happening than now.

And what’s happening now is that battery projects are popping up everywhere.

Redwood’s Nevada factory is one of numerous battery-related projects announced in February that stem from federal policies, investments and tax credits.

In Michigan, Ford Motor Co. announced plans for a $2.5 billion electric vehicle battery factory that will create an estimated 2,500 jobs. In Wisconsin, WEC Energy Group announced plans in February for a $200 million long-duration energy storage facility in Milwaukee.

These projects are making America more competitive on the global marketplace – something that’s been desperately missing in some sectors. Currently, Asian countries led by China, Korea and Japan account for about 92 percent of the global market share for EV batteries. And of the 304 gigafactories being developed prior to IRA passing, just 23 were in North America.

Last month was a big step forward, but America will need many more as countries everywhere accelerate their own transition timetables. Millions of jobs and trillions in investments are up for grabs in the coming decade.

Want to stay on top of these announcements? Know someone who does? Please forward this to them and/or drop us a note at [email protected].

Quotable

“We can’t control the wind. We can’t control the sun. We know it’s going to be there most of the time. But when it’s not, we need to make sure that we can keep the lights on. And batteries are so great to continue and expand that clean energy.”

– Brendan Conway, WEC Energy Group

“This investment will continue to bring the supply chain of electric vehicle batteries home to Michigan and make sure that production lines aren’t stalled by global shocks or shipping delays. We’re going to make electric vehicles top to bottom right here in the great state of Michigan.”

– Michigan Gov. Gretchen Whitmer (D)

“It doesn’t pollute; it is the cheapest energy source. The technology we use is American-made.”

– Dominika Sink, director of development, Energix

“As America’s most diverse industrial manufacturer of steel products, we will be able to efficiently supply this new plant, helping to ensure that our nation’s critical energy and digital infrastructure is built with the cleanest, most sustainable steel in the world.”

– Leon Topalian, CEO, Nucor Corp.

“As we work to ensure our state is the e-mobility capital of the nation, projects like this will continue to choose the No. 1 state for business and benefit communities in just about every zip code of Georgia.”

– Georgia Gov. Brian Kemp (R)

“Hyundai’s new EV facility is drawing an experienced and dedicated supplier network to the [Savannah] region, adding to [Georgia’s] industry expertise and shaping a larger skilled workforce.”

– Pat Wilson, Commissioner, Georgia Dept. of Economic Development

Opportunities

Bipartisan Infrastructure Law: Funding opportunities you can apply for today

“… [T]here is billions more in funding available today through competitive programs. … This document highlights funding opportunities that communities can apply for today, along with a calendar for funding opportunities across 2023.” Read more

EPA announces initial program design of Greenhouse Gas Reduction Fund

“… [O]utlin[es] key parameters of the grant competitions that will ultimately award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country.” Read more

Biden-Harris Administration announces historic investments to support America’s energy and industrial communities

“… [S]everal major programs to accelerate domestic clean energy manufacturing and ensure traditionally underserved communities benefit from clean energy technologies.” Read more

Floating Offshore Wind Shot

“… [A]n initiative to help usher in a clean energy future by driving U.S. leadership in floating offshore wind design, development, and manufacturing. … [S]eeks to reduce the cost of floating offshore wind energy by at least 70 percent, to $45 per megawatt-hour by 2035 for deep sites far from shore.” Read more

DOE announces $23 million to fund onsite energy Technical Assistance Partnerships to drive industrial decarbonization

“… [A] $23 million funding opportunity that will establish a regional network of TAPs to help industrial facilities and other large energy users increase the adoption of onsite energy technologies.” Read more

DOE’s American-Made Challenges: Perovskite Startup Prize

“… [A] two-stage, $3 million prize competition designed to accelerate the development and manufacturing of perovskite solar cells by moving world-class research out of the lab and into new U.S. companies. … The final cycle of the Countdown Contest opened in November and will close on March 23.” Read more

Funding Notice: Enhanced Geothermal Systems Pilot Demonstrations

“… [U]p to $74 million to support EGS pilot demonstration projects called for in President Biden’s landmark Bipartisan Infrastructure Law. The legislation authorizes DOE to support up to seven competitively selected pilot projects…” (Hurry! Intent letters due March 8) Read more

Advanced Energy Manufacturing and Recycling Grants

“… [D]esigned to provide grants to small- and medium-sized manufacturers to enable them to build new or retrofit existing manufacturing and industrial facilities to produce or recycle advanced energy products in communities where coal mines or coal power plants have closed.” Read more

American-Made Net Load Forecasting Prize

“… designed to increase adoption of the state-of-the-art in net load forecasting. … [O]pen to forecasting industry organizations that cater to utilities, system operators, and power plant owners, as well as academic teams with machine learning capabilities that are interested in forecasting. … This prize offers up to $600,000 in cash prizes, with three anticipated winners and three anticipated runners-up.” Read more

Summary:

As the Biden administration steps up efforts to expand offshore wind resources, this report finds that development of floating offshore wind in the waters off of Morro Bay and Humboldt Bay in California could create and support nearly 175,000 jobs, add $45 billion to the state’s economy, and produce 4.6 GW of wind energy.

California and federal lawmakers have an opportunity to hasten development—and scale the deployment—of this valuable new technology by enacting appropriate policies now. This is especially urgent on the heels of President Joe Biden signing into law the Inflation Reduction Act (IRA) of 2022. This bill includes full-value tax incentives for the manufacturing and deployment of technologies like offshore wind in the U.S. The IRA also includes billions of dollars for the U.S. Department of Energy (DOE) to help scale up technologies like floating offshore wind.

Offshore wind will diversify California’s renewable energy supply. This is critical to a stable electric grid and, crucially, can help the state achieve its long-term clean energy and climate ambitions in a least-cost manner. At the same time, floating offshore wind can create tens of thousands of new jobs for Californians, benefit underserved communities, and generate billions of dollars’ worth of wages, investments, economic benefits and tax revenues at the state, local and federal levels.

Policy Matters

California has been a global climate leader by passing policies that have created the market structures necessary to drive innovation, build the state’s clean energy economy and reduce carbon emissions. To maximize the economic benefits of harnessing the state’s offshore wind resources—especially in light of the major federal clean energy investments in the Inflation Reduction Act—state and federal governments must advance policies that will drive a sustainable, resilient offshore wind industry in California. Specifically, this includes:

// Development of a strategic plan by the end of 2023 that formalizes targets; identifies suitable sea space, programs and funding; advances economic and workforce development and in-state manufacturing opportunities; optimizes transmission planning and permitting; identifies potential impacts on ocean uses and the environment, as well as strategies for addressing those potential impacts; and helps de-risk projects early on in order to provide greater certainty for the industry.

// Ensuring that AB 525 requires the CEC to develop a permitting road-map that describes timeframes and milestones for a permitting process for offshore wind energy facilities and associated electricity and transmission infrastructure off the coast of California.

// The State of California must investigate the need for—and, if warranted, approve construction of—a subsea transmission cable from the Los Angeles Basin to Diablo Canyon. This could resolve current regional transmission constraints, reduce dependency on dirty natural gas peaker plants, and minimize threats of grid-induced wildfire, while providing transmission capacity to connect Southern California with potential future offshore wind development.

// State officials must leverage funding from the Infrastructure Investment and Jobs Act dedicated for grid modernization to upgrade the grid for offshore wind energy integration.

// Congress must invest more in grid modernization including passing a grid modernization tax credit that is essential to the development of offshore wind and the deployment of utility scale clean energy generally.

// The CEC, in partnership with the Ocean Protection Council and BOEM, must make continued investments in environmental planning and mapping for offshore wind development, primarily through the funding and support of the Offshore Wind Data Basin.

// The State should develop and fund an institute—under the purview of the California Coastal Commission—dedicated to the collecting and public sharing of data related to the monitoring and mitigation of ocean ecosystem impacts.

// BOEM must incorporate ocean ecosystem impact monitoring and mitigation stipulations in its lease agreements.

About this Report

The research team estimated local economic impacts for the Morro Bay and Humboldt Bay offshore wind projects using NREL’s modeling tool Jobs and Economic Development Impact (JEDI). JEDI is an input-output modeling tool used to generate outputs for employment, Gross Regional Product (GRP) and earnings for the construction and operations of a particular offshore wind project. The model illustrates the interdependent relationships between the different sectors of a region’s economy, to produce employment figures that vary according to the modeled project’s energy output and local content. The offshore wind activities modeled for the two locations are used as inputs into the model to estimate the multiplier effect on business, household, and government expenditures and industry employment. JEDI estimates these effects based on facility size, energy output, year of construction and the built-in economic multipliers specific to the project location. The economic outputs outlined in this report include:

// Jobs created from the construction of offshore wind facilities with 1.8 GW of capacity in Morro Bay and 1.2 GW in Humboldt Bay by 2030, a total of 3 GW in capacity across both sites.

// Jobs created from the construction of 4.2 GW of additional capacity in Morro Bay and 2.8 GW in Humboldt Bay between 2030 and 2040, to reach a total of 10 GW of offshore wind capacity across both sites.

// Annual number of jobs created for the operation of the initial 3 GW installed by 2030.

// Annual number of jobs created for the operation of 10 GW installed by 2040.

// Employment split by industry for Construction and Operations phases.

// Labor income resulting from jobs created by offshore wind projects.

// Additional GRP for Morro Bay and Humboldt Bay because of economic activity from offshore wind projects.

// Local, state, and federal tax revenue for Phases 1 and 2.

Summary:

New Mexico’s clean energy sector employed 12,014 workers by the end of 2021 an of 8.1% from 2021, the highest rate of job growth in the country. This strong growth was mainly driven by increase in clean fuels and clean vehicle jobs.

• 8.1% – New Mexico led the nation in clean energy job growth in 2021.
• 56% – Small businesses (<20 employees) accounted for nearly 3 out of every 5 clean energy jobs in New Mexico.
• Most Diverse New Mexico continues to have the most diverse clean energy workforce in the U.S. Hispanic and/or Latinos account for more than 1 in 5 workers (22.6%) and multiracial workers make up more than 1 in 7 (14.0%).
• 11.7% – Clean energy job wages are above state-specific medium wage.

Figure 4 // U.S. Clean Energy Employment by subsector 2021