PA Good Clean JOBS NOW

Stephen HerzenbergKeystone Research Center

Pennsylvania Green Policy Context

• 2004 Advanced Energy Portfolio Standard• Governor’s $650 million Alternative Energy

Investment Fund: conservation, solar tax credits, other renewable economic development investments

• State workforce strategy funds a half dozen energy “Industry Partnership”

State Economic & Political Context• An economy spiraling down• State revenues plunging: deficits of $1-3 billion

next fiscal year with flat spending • Politics: a bipartisan majority supports

investment in good, clean jobs• State should leverage federal/private dollars, and

increase near-term state spending• Spending cuts will exacerbate the recession• Be ready with “public jobs” program as situation

worsens

Potential Outside Coalition for Good, Clean JOBS NOW

• Environmental, smart growth, community revitalization groups

• Labor• Manufacturers and energy service companies• Anti-poverty organizations• Parts of a state infrastructure coalition • Some workforce development stakeholders• Philanthropy/civic leadership

Challenge (1): Where could PA get $?

• The federal government• Existing state bonds• Mobilizing private capital for energy efficiency• Reprogram existing economic development $• New state bonds--e.g., for workforce training• Borrowing from the federal government?• Higher taxes on high earners

Challenges (2)

• Building a strong, diverse coalition• National stage a moving target…a good thing

but makes state planning harder

Clean and Green JOBS NOW

• Energy Efficiency JOBS NOW• Renewable Energy JOBS NOW • Clean manufacturing JOBS NOW• Smart infrastructure JOBS NOW• Green skills investment• Clean Economy Corps

Energy Efficiency and Renewable Energy JOBS NOW

• Adapting Clean Energy Corps report by GreenforAll to state level

• Interest in funding renewable energy as well as energy efficiency through the a model which is free up front and paid for through savings captured on utility bill, municipal services bill, or property taxes

• Mobilize state pension fund and building trusts to invest?

Clean Manufacturing JOBS NOW (1)

• Governor’s Office of Clean Manufacturing• Clean Manufacturing Partnerships– To implement energy efficiency, renewable

energy, clean processing quickly– Training Partnerships: keep dislocated workers in

the industry, spread work sharing, plug skill gaps– Entrepreneurial training for dislocated workers– In-sourcing partnerships• Clean Technology grants (equipment subsidies)

Clean Manufacturing JOBS NOW (2)

• Working capital with a clean tilt• Layoff aversion with a clean tilt• Mobilize state pension fund investment as in

California

Smart Infrastructure JOBS NOW

• Broadband in rural areas to permit tele-commuting

• “Soft” water and sewer infrastructure• Dollars for Department of Environmental

Protection staff to avoid bottlenecks in permitting of water and sewer infrastructure

• Implement “smart growth”/“fix it first” principles

Green Skills Investment

• More $ for clean and green Industry Partnerships and training/other services

• Funded through a small employer and worker tax on the entire wage base plus state bonds (or borrowing from the federal government)

• Explore coalition willingness to support overall workforce proposal that socializes the cost of employment transitions—key to raising environmental standards quickly in the long run

Green Economy Corps/Public Jobs

• Contingency plan for much higher unemployment• Explore work sharing: partial unemployment

benefits for partly unemployed workers• Raise more UI funds through tax increases/

increasing the wage base subject to the tax• Trigger mechanism (e.g., at 10% unemployment)

to kick in higher “shared sacrifice” tax that would support expanded Green Economy Corps jobs