Trump's budget cuts threaten U.S. jobs in renewable energy
Biden's incentives are worth hundreds of billions dollars
Tax credits drive renewable energy projects to record highs
Credits could be weakened or eliminated if Trump cuts costs
By Carey L. Biron
Labor leaders claim that federal tax credits under the former president Joe Biden for green energy production and construction have created an influx of new jobs - inspiring young workers to participate in the U.S. transition towards energy in a rapidly aging sector.
"We were slammed, pretty much full employment. Everyone was making plenty money," said Kilton webb, an electrician from Maine who saw his job opportunities skyrocket following a 2022 legislation that created the incentives.
Webb has worked on over 15 solar farms, where the electricians are key players, but he fears that many developers will be scared.
You can feel it. "They don't even know what is going to happen on a daily basis," said Webb. He is now a Maine State Representative and union leader.
According to a Deloitte report, renewable energy will create twice as many jobs in 2023 as fossil fuels. Energy construction jobs are also growing twice as fast as other construction projects.
The incentives, worth hundreds of millions of dollars, have been scrutinized as lawmakers have tried to draft a federal budget that is in line with the President Donald Trump’s efforts to cut costs.
In May, lawmakers voted for a phase-out of the subsidies in the coming years. They also included language which experts claim would reduce the number eligible projects during the interim and place new restrictions on the importation of key Chinese parts.
The budget talks are now moving to the Senate. Leaders hope to send a bill directly to the President by the beginning of July.
Trump declared an "energy emergency" on his first day as president, with the goal of boosting domestic energy production through a faster approval process for new oil and natural gas production. He also pledged to create jobs and lower energy costs.
Trump's budget proposal for the following year called for the elimination of billions in funding for "unreliable" renewable energy.
In an email, a White House official stated that the budget being considered will benefit construction and trade workers through wage increases, encouraging new investments by construction firms and other means.
"A HARD CONVERSATION"
Labor groups, however, say that clean energy projects can help to revitalize the construction industry.
Pat Devaney is the secretary-treasurer for the Illinois AFL-CIO. The union has 900,000 workers.
He said, "We have a lot jobs in fossil-generation in parts of the State where there aren’t many other opportunities... but we've seen a huge increase in the number clean-energy project coming into our state."
Illinois has 150 green energy projects at utility scale either in development or planning, according to him. All of these are eligible for federal credits.
He said that this would result in over 33,000 megawatts and more than 51,000 clean jobs, and more than $56 billion of investment.
Devaney said, "That's an important issue for Illinois union employees." He is "extraordinarily worried" about the debate over cutting green energy credits.
Tax credits that reduce taxes for such projects in order to make them economically viable were already in place when Biden became president, but they were expanded by his administration and their timeline was increased to a decade.
The longer timeline provided developers with greater certainty and the renewables sector reached record highs in the last year. Lori Bird is the director of the U.S. Energy Program at the WRI Polsky Center for the Global Energy Transition.
She said that "they've played a very large role in the new power plants coming on to the grid."
According to the American Clean Power Association, renewables accounted for more than 90% the energy capacity added in America last year. Bird says that the uncertainty caused by the debate over tax credits and new import tariffs is already delaying the projects that were attracting younger workers.
According to the federal government, more than a fifth (or 55%) of construction workers have reached retirement age. This proportion has doubled from 2003 to 2020.
"When we are trying to recruit individuals into an industry which is a new market share for our company, they ask: What kind of longevity will I see?" Kent Miller is the president of Wisconsin Laborers' District Council (a grouping of five unions).
He said that these unions "struggled" before the law of 2022, but the approvals of major solar projects have helped to bring in new workers as well as a record number apprentices.
Myeisha, 30, has chosen this path in Illinois after graduating from a statewide program that includes initial training and employer introductions for those looking to get into clean-energy construction.
She told me that she knew a woman who installed solar panels but wasn't sure if the field was available to women.
Cook was able to land a job in carpentry after taking the course. She is now looking for jobs in Chicago, such as building energy-efficient buildings or working on new subway extensions.
(source: Reuters)
