President Biden’s Clean Energy Agenda Spurs Job Growth And Economic Resilience

Since taking office, President Biden has been dedicated to creating a clean energy economy that offers good-paying, union jobs for American workers. Thanks to the Investing in America agenda, which represents the largest investment in climate and clean energy in history, the U.S. has witnessed a surge in clean energy manufacturing and deployment. This boom has attracted hundreds of billions of dollars in private investment and generated over 270,000 new jobs in the clean energy sector.

These investments are reaching areas that President Biden vowed not to overlook, including historic energy communities and economically distressed regions, providing job opportunities and economic benefits, especially for workers without college degrees.

A key element of this progress is the Inflation Reduction Act, which has cemented President Biden’s commitment to being the most pro-worker, pro-union president in history. For the first time, strong labor protections and incentives have been tied to climate and clean energy tax credits. Analysts project that the Inflation Reduction Act could create 1.5 million additional jobs over the next decade. The act ensures that jobs in building wind farms, installing solar panels, and constructing hydrogen and carbon capture facilities are well-paying and support pathways into the clean energy industry, allowing workers to earn while they learn.

Today, the Department of the Treasury and the IRS announced final rules implementing prevailing wage and registered apprenticeship increased credit provisions of the Inflation Reduction Act. Clean energy projects meeting these rules will receive a fivefold increase in clean energy tax credits, significantly incentivizing developers to pay prevailing wages and hire registered apprentices. This move ensures that workers receive fair wages and have opportunities for career development in the clean energy sector.

Deputy Secretary of the Treasury Wally Adeyemo and Acting Secretary of Labor Julie Su highlighted Project Labor Agreements as a best practice for large construction projects. These agreements, which are pre-hire collective bargaining agreements, provide strong worker protections and ensure a steady supply of skilled labor, helping to complete projects on time and within budget.

The final rules offer certainty for clean energy developers and workers to fully benefit from President Biden’s historic clean energy investments. To protect workers and ensure compliance, the IRS released a Fact Sheet to educate workers about the standards for prevailing wage and registered apprenticeships in clean energy projects. Additionally, the IRS and the Department of Labor announced their collaboration on a Memorandum of Understanding (MOU) to enhance education, public outreach, and compliance efforts.

These announcements build on broader administration efforts to create strong pathways into good-paying, union jobs in clean energy. Initiatives include the Department of Labor’s interactive map of over 1,000 planned clean energy projects, the launch of Investing in America Workforce Hubs to connect workers to jobs in future industries, and various workforce development programs tailored to meet the needs of the clean energy sector.

For example, the Augusta Workforce Hub has formed partnerships to build workforce development efforts for the energy and battery sectors. Similarly, the Pittsburgh Workforce Hub has announced new job opportunities and training pathways in clean energy. The Michigan Electric Vehicle Workforce Hub supports the transition to electric vehicles by ensuring union workers and communities benefit from this shift.

Vice President Kamala Harris recently announced actions to support small- and mid-sized auto manufacturers and workers in leading the electric vehicle future. The Columbus Workforce Hub is also working to train thousands of students and skilled workers for clean energy jobs.

Furthermore, the Department of Energy (DOE) has launched several initiatives, including the Community Workforce Readiness Accelerator for Major Projects, incentivizing grant and loan recipients to commit to workforce development agreements. The DOE, in collaboration with the Department of Labor and AFL-CIO, launched the Battery Workforce Initiative to support training programs for battery manufacturing jobs.

The DOE and the National Renewable Energy Laboratory are conducting a national Energy Workforce Needs Assessment to project employment impacts from clean energy investments and identify workforce gaps. A federal advisory committee, the 21st Century Energy Workforce Advisory Board, is also developing strategies to address workforce needs in the rapidly changing energy sector, with a report expected soon.

These comprehensive efforts underscore the Biden-Harris administration’s commitment to building a robust clean energy economy that offers sustainable, well-paying jobs, fosters economic resilience, and drives the transition to a greener future.