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Help Wanted: Diversity in Clean Energy

Date: September 9, 2021

Clean Energy has a Diversity Problem

Summary

Despite its broad range of businesses, including construction, utilities, manufacturing, professional services, and repair and maintenance, the clean energy sector is dominated by white men. Given the incredible job growth of the energy sector over the past decade, this lack of diversity threatens to cause women, Hispanic and Latino workers, and Black workers in particular to miss out on one of America’s great economic expansions.

About 61 percent of clean energy workers across America are white non-Hispanics. Black and Hispanic/Latino workers are more poorly represented in clean energy than they are across the rest of the economy, with Black people composing 8 percent of the clean energy workforce (compared with 13 percent economy-wide) and Hispanic/Latinos making up 16.5 percent (versus 18 percent economy-wide). Women represent less than 30 percent of all workers in the sector despite accounting for nearly half (48 percent) of the U.S. labor force as a whole.

As the United States looks to build back a better, cleaner, more equitable economy, a renewed focus on increasing diversity in the clean energy sector should be an economic imperative. Both the transition to a low-carbon energy system and proposed state and federal stimulus to boost the economy have the potential to create millions of new jobs across the United States. Policies that support the energy sector and its low-carbon transition should focus on the inclusion of women and underrepresented ethnic and racial groups, particularly Black workers (who are often the most poorly represented in the sector), so that economic benefits are more equitably shared.

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Findings

The study expands on data from the 2021 U.S. Energy and Employment Report (USEER) produced by the U.S. Department of Energy. Among the report’s key findings:

  • Black workers represent about 8 percent of the clean energy labor force, compared with about 13 percent of the nation’s total workforce.
  • Hispanic/Latino workers represent nearly 17 percent of the clean energy workforce, slightly less than the 18 percent they represent in the overall national workforce.
  • Racial and ethnic minorities account for nearly four in ten U.S. clean energy workers.
  • About 8 percent of clean energy workers are Asian, slightly higher than their presence in the national workforce, while Pacific Islanders and Alaska and other native Americans each make up about 1 percent of the clean energy workforce.
  • Women hold about 27 percent of clean energy jobs, compared with 48 percent of all jobs nationally.
  • Renewable energy employs the highest share of Hispanic or Latino workers in the U.S. energy sector.
  • Black, Asian, Indigenous, and multiracial workers account for about 27 percent of clean energy jobs.

The full report includes national and state-by-state breakdowns on demographics across all clean energy sectors, multi-year demographic trends, comparisons to other energy sectors including fossil fuels and gas and diesel vehicles, and specific findings on individual occupations.

U.S. Labor Force Demographics, 2020

Demographic Overall US Labor Force Total Energy Workforce Clean Energy Workforce Fossil Fuel Workforce
White 76% 74% 73% 74%
Black/African-American 13% 10% 8% 9%
Asian 7% 7% 8% 6%
Native Hawaiian or other Pacific Islander <1% 1% 1% <1%
American Indian or Alaska Native <1% 2% 1% 2%
Two or more races 2% 8% 8% 9%
People of Color 22% 28% 26% 26%
Hispanic/Latino 18% 16% 17% 13%
Women 48% 25% 27% 27%

Policies Matter

This analysis indicates that more needs to be done to address racial inequities in clean energy and the broader economy. As we rebuild the U.S. economy in the wake of COVID-19, we have a chance to do it in ways that create new opportunities for people of color. As Congress and state lawmakers focus on clean energy’s role in the recovery, they should focus as well on rebuilding the economy more equitably.

President Biden’s Justice40 initiative mandating that 40 percent of the benefits from federal climate action go to disadvantaged communities is a step in the right direction. But there are many steps lawmakers can take—right now—to ensure greater diversity in the clean energy workforce in the months and years ahead.

Read the report’s policy recommendations starting on page 24.

Background

This is the first-ever comprehensive report on diversity in the U.S. clean energy workforce. This analysis was conducted by BW Research Partnership for E2, the Alliance to Save Energy, the American Association of Blacks in Energy, Black Owners of Solar Services (BOSS), and Energy Efficiency for All. Early drafts of this report were also reviewed by the Policy Committee of BOSS. It expands on data from the 2021 U.S. Energy and Employment Report (USEER) produced by the Department of Energy, using data collected and analyzed by BW Research Partnership. The USEER analyzes data from the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages to track employment across many energy production, transmission, and distribution subsectors. For further methodology questions, see pages 201–206 of the USEER.

Other sources of data are noted throughout.

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An Economic Imperative: Climate Action in the Golden State

Date: August 16, 2021

Summary:

California is already suffering dire economic impacts from the effects of climate change, presenting significant business and economic risk to the world’s fifth largest economy. The costs of extreme climate events such as wildfires and droughts have risen steadily throughout the past decade, and are projected to increase dramatically in California if current trajectories continue. These costs are being borne by everyone who lives, pays taxes, buys insurance, or works in California.

At the same time, aggressively addressing climate change — reducing greenhouse gas emissions while growing the state’s clean energy economy — presents one of the greatest economic opportunities of the 21st century. Ambitious climate action produces robust job creation, sustainable economic growth, and California leading global innovation across a wide range of industry sectors. Members of Congress can seize this opportunity by passing a bold American Jobs Plan anchored in clean energy investments; California lawmakers must build on existing state climate policy leadership to ensure the state remains a nexus of investment and innovation in the 21st-century economy.

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Findings

  • $55 Billion in direct property damage from California wildfires, 2017 – 2020
  • $47 billion in economic activity in California’s clean ocean economy under threat from sea level rise and ocean warming
  • $50.5 billion in overall production value of California’s 77,500 farms, which now face regular threats from droughts and other climate change-related impacts.
  • 484,980 jobs – Nearly a half million Californians are employed in the clean energy economy, representing 285 of the state’s construction workers and 3% of California’s economy-wide workforce
  • #1 export – Electric vehicles were the state’s most valuable export in 2020, producing nearly $5.7 billion in revenue

About this Report

This report reviews and compares the damage to California’s economy from recent climate-related disasters and risks from future unabated climate change to the potential impact specific climate action policies could have on job and economic growth in the state’s core industries such as technology, construction, agriculture, and tourism. The report, made possible by the Leslie and Susan Gonda (Goldschmied) Foundation, uses publicly-available information and data from previous E2 analysis, BW Research, state and federal agencies, the University of California system, and other sources.

Looking for More Info?

If you are looking for additional insight into the clean economy and how it drives job growth, please see E2’s other clean energy employment reports, visit e2.org/reports.

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Getting the Lead Out: Employment & Economic Impacts of Lead Service Line Replacement

Date: August 3, 2021

Summary:

Based on the Biden administration’s plans to invest $45 billion to replace 100 percent of lead service lines in America, the findings from Getting the Lead Out: Employment & Economic Impacts from Replacing America’s Lead Service Lines, this report from E2 and the United Association of Union Plumbers & Pipefitters (UA) estimates that the $45 billion invested in this program will create and support 56,080 jobs annually for 10 years, or a total of 560,800 job-years. This annual estimate includes 26,900 direct jobs—construction workers, plumbers, pipefitters, heavy equipment operators—as a direct result of this activity. Another 13,600 jobs that last for 10 years are created throughout the value chain, and 13,800 jobs are created each year for 10 years as a result of workers spending their paycheck.

About 84 percent of all jobs created through this investment are in construction (52 percent), professional and business services (24 percent), and manufacturing industries (8 percent). Insofar as the bulk of these jobs involve high-skill construction occupations, the jobs created will provide good wages and training opportunities for local residents and promote economic benefits to affected communities.

This investment into cleaning up our nation’s water supply also would generate $38.3 billion in labor income, $11.7 billion in taxes, and $53.9 billion in additional value to the economy. That would represent a 120 percent return on investment.

In addition to the jobs created and value added to the economy from this activity, additional benefits like increased positive health outcomes would be generated. It has been estimated that an additional $22,000 of societal benefits are generated for every lead pipe replaced as a result of lower cardiovascular disease. Since in many areas lead service lines are more likely to exist in environmental justice communities, and since Black and Latino children have disproportionately high overall lead exposure, replacing these lead pipes will also greatly benefit low-income and minority households.

The scope of this work is massive and reaches every state. The Natural Resources Defense Council (NRDC) estimates that between 9.7 million to more than 12 million lead service lines are distributing water throughout our nation. About 700,000 or more of these service lines are found in Illinois, while Ohio, Michigan, New York, New Jersey Missouri and Wisconsin each contain more than 300,000 of the nation’s lead service lines; the top ten states total about 4 million.

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Findings

  • 560,800 total job-years*
  • $104 billion: total economic activity generated
  • 10 million lead service lines that need to be replaced

* 56,080 jobs annually over ten years

** Includes $38.3B in labor income, $11.7B in taxes and $53.9B in additional economic benefits

Methodology

BW Research used IMPLAN to conduct the economic impact analysis, resulting in the jobs, value-added, labor income, and taxes data. IMPLAN is an input-output modeling software that tracks spending patterns through the economy and their resulting impacts on economic indicators. The cumulative effects of the initial investment are quantified, and the results are categorized into direct, indirect, and induced effects. To capture interstate flows, direct and indirect impacts are results of national-level multipliers, distributed across states using state-level modeling. Induced impacts are the results of state-level multipliers, so as not to overestimate the impacts of household spending. Workforce data such as occupational demographics and wages are derived from JobsEQ by Chmura. JobsEQ is a workforce data software that derives data from Bureau of Labor Statistics and Census Bureau data, among other sources. Unionization rates are derived from unionstats.com.

  • Direct Impacts show the initial change in the economy associated with the investment. For example, pipefitters installing new service pipes or engineers planning the replacement.
  • Indirect Impacts include the supply chain responses as a result of the initial investment (i.e., water pipe manufacturers).
  • Induced Impacts refer to household spending and are the result of workers who are responsible for the direct and indirect effects spending their wages (i.e., direct and indirect workers spend income on clothes, food, healthcare, etc.).
  • Labor Income includes all forms of employment income, such as employee compensation (wages and benefits) and proprietor income (i.e. payments received by self-employed individuals and unincorporated business owners). Labor income is a component of value added.
  • Value Added is defined as the total value of production after netting out intermediate goods. This is another term for GDP.

About this Report

This economic impact analysis was conducted by BW Research Partnership for E2 in partnership with the United Association of Union Plumbers and Pipefitters. It uses the Biden Administration’s stated goal of 100 percent removal of lead service lines (LSLs) from America’s drinking water systems, the Natural Resources Defense Council’s (NRDC) national survey of LSLs, and the Environmental Protection Agency’s (EPA) estimated LSL replacement costs.

Special thanks to NRDC and BW Research. For a description of the methodology used in this report, please refer to the explanation on page in Appendix A.

Looking for More Info?

If you are looking for additional insight into Getting the Lead Out: Employment & Economic Impacts from Replacing America’s Lead Service Lines or E2’s other clean energy employment reports, visit e2.org/reports.

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Press Briefing: New Jobs Report on Replacing America’s Lead Pipes

In March, The Biden administration announced plans to remove 100 percent of America’s nearly 10 million lead service lines (LSLs) through the American Jobs Plan. A new report, from the national, nonpartisan business group E2 (Environmental Entrepreneurs) and the United Association of Union Plumbers and Pipefitters (UA), will detail the employment and economic gains if […]

New legislation sets the table to grow cleantech industry in the Grand Valley

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