LegiStorm

Summary:

In the United States, growing awareness of greenhouse gas (GHG) emissions and the possible implications for global climate change have combined with recent high energy prices and economic uncertainty to rekindle interest in renewable energy. Renewable energy technologies generate electricity from resources such as the sun, wind, or biomass, with essentially no net GHG emissions. President Obama has declared a goal for the United States to become the world's leading exporter of renewable energy technologies, setting out policy objectives for the development of related "green jobs". Green jobs have often been defined to include (at a minimum) jobs that result directly from renewables for generating electricity and powering vehicles as well as jobs that result directly from achieving greater energy efficiency. Studies of green job creation in the renewable energy industry vary greatly as a result of differences in definitions, assumptions, and methodologies, with the resulting analyses producing wide-ranging estimates of the number of green jobs. Complicating the estimation of the number of green jobs is the absence of an authoritative data source. The North American Industry Classification System disaggregates firms into the categories of hydro, fossil fuel, nuclear and "other" sources. Renewables are part of the "other" category. The Bureau of Labor Statistics has requested funding for FY2010 to develop data on the number of green jobs and their characteristics (e.g., wages, training requirements) by industry and occupation. Most of the future growth in green jobs is generally envisioned as coming from the growth in deployment of renewable energy technologies. Renewable energy deployment programs from state governments have had a great influence on the existing deployment levels of renewable energy technologies and resultant jobs. Historically, the federal investment in renewable energy technologies in the United States has not been about creating jobs, but was focused on developing the technologies to a point where they are ready for commercialization. The timeframe under consideration is thus important in any discussion of the potential for renewable energy technologies to create jobs, for the technologies are at different stages in their development cycles. It is also important to recognize that as a specific renewable energy technology becomes more efficient, the number of jobs per Megawatt of output is likely to decrease. A key to maximizing green jobs growth in the United States from renewable energy is the domestic design and manufacture of equipment and components. Given the growing international competition for renewable energy markets and green jobs, policy mechanisms and incentives may be necessary to encourage manufacturers to locate production in the United States. Companies must be capable of competing in the domestic market for renewable energy first and foremost, as the potential growth of U.S. renewable markets already has attracted significant international participation. A renewable energy industry capable of serving the export market may create many more jobs than an industry which only serves domestic needs. Few doubt the potential of renewable energy to help address climate change concerns; the question is whether the desired benefits merit the investment. But developing the next generation of renewable energy technologies and building an internationally competitive industry may require a significant and sustained national investment. Without it, the majority of the solar panels, wind turbines, and components providing the clean energy of tomorrow may continue to be designed and built by workers overseas.