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Summary:

Clean jobs in Virginia grew by nearly 4.5 percent in 2021, more than tripling the employment growth rate of the commonwealth economy-wide. That growth also reflects the clean energy economy’s strong recovery from the COVID-19 economic downturn and sets Virginia up for even more clean energy job growth in the years to come—especially with key state climate and clean energy policies remaining in place and unprecedented levels of federal clean energy investments becoming available for deployment.

• VIRGINIA WAS HOME TO 2.9 PERCENT OF THE NATION’S TOTAL CLEAN ENERGY JOBS, 11TH AMONG ALL 50 STATES

• VIRGINIA’S CLEAN ENERGY JOBS GREW MORE THAN 3.5 TIMES FASTER YEAR-OVER-YEAR THAN OVERALL EMPLOYMENT IN THE COMMONWEALTH: 4.5 PERCENT COMPARED TO JUST 1.3 PERCENT

• ALMOST TWO-THIRDS OF THE MORE THAN 14,000 CLEAN ENERGY JOBS LOST IN VIRGINIA DURING THE COVID-19 ECONOMIC DOWNTURN HAD BEEN REGAINED BY THE END OF 2021

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.

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

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

Summary:

Clean jobs in North Carolina grew by over 4 percent in 2021, more than double the growth rate of the state’s total workforce for the year. That growth also demonstrates the clean energy economy’s strong recovery from the COVID-19 economic downturn and sets North Carolina up for even more clean energy job opportunities in the years to come — especially with the right policies in place.

• Black and African-Americans are under-represented by nearly 60% in North Carolina’s clean energy economy. Black workers occupy more than 21% of all jobs in the state, but less than 9% of clean energy jobs.
• North Carolina was home to 3.2% of the nation’s total clean energy jobs, 9th in the nation.
• More than two-thirds of the 27,217 clean energy jobs lost in North Carolina during the COVID-19 economic downturn had been regained by the end of 2021.
• Small businesses (<20 employees) accounted for almost 4 out of every 5 clean energy jobs in North Carolina, ranking 2nd among all 50 states.
• North Carolina ranked 1st among all 50 states in rural clean energy jobs, with 25,563 clean energy jobs in rural areas.

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

Figure 1 // Clean Energy Employment by year 2017–2021

Figure 3 //Clean Energy Employment by value chain 2021