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State Policies

With 10.2 percent unemployment in the United States 1, states 2 and cities 3 are increasing their efforts to lure green jobs. In 38 states, green job growth was stronger than total job growth between 1998 and 2007. The clean energy economy accounts for less than one percent of all jobs nationally. Proportionally, this sector already contains three-fifths as many jobs as the conventional energy industry 4 and is poised for growth from private and public funding. The sector has become the focus of aggressive legislation, policies and negotiations to attracting new jobs, businesses and investments 5.

 Watch Videos of Experts Discussing the Green Economy

 

Regional Outlook

State and local governments are providing millions of dollars in financial incentives to green businesses through grants, loans or tax credits 6,7. Additionally, states are handing out stimulus funds that support green jobs ventures. Cities and counties are expediting permits 8 and creating renewable energy neighborhoods to spur interest. Some, too, are passing legislation to increase other incentives, such as the maximum allowable tax credits for businesses. Others are poaching cleantech businesses from states such as California through advertising campaigns 9,10.

In the private sector, venture funding of green jobs is also magnifying growth 11. In the third quarter of 2009, clean tech was the largest recipient of venture funding, beating out biotech and software investment 12 for the first time. California tops the list of venture funding in the green economy, followed by Massachusetts, Texas, Washington and Colorado.

No two states have the same competitive advantages regarding green jobs. California has more green jobs overall than any state-- around 125,000--yet other states such as Oregon and Tennessee are poised for fast growth in energy efficiency and waste sectors 13,14.

State and local incentives have had a significant impact on green jobs. For example, San Diego 15 has installed far more solar energy systems than Los Angeles and San Francisco 16 due to fast-tracking of permits and a new solar rebate program. Sacramento, Calif., and Gainesville, Fla., are two U.S. cities that have enacted a "feed-in tariff" 17 that pays a high price for solar electricity fed into the grid 18 and businesses19 to navigate.

Public policy clean energy initiatives such as the Midwestern Greenhouse Gas Reduction Accord, the Regional Greenhouse Gas Initiative, and the Western Climate Initiative are also helping regions increase their capacity to participate in the green economy.

Northeast

The green economy is not considered a major economic engine for New England 20. Still, Massachusetts is a winner regionally in the number of green jobs--26,678, or 0.69 percent of all jobs in the state 21. It also tops the list in the region for attracting venture capital investment in green business 22,23. Maine is among the fastest growing in the green jobs sector with 6000 green jobs, or 0.85 percent of the state’s total jobs24.

New York has a large number of green jobs -- 34,363 -- but that number has declined in the past 10 years 25. To counter losses, the state passed a landmark green jobs bill in October 2009 26 to provide loans for energy-saving repairs. The state expects the initiative will result in 14,000 green jobs statewide, mostly in the building sector 27. The state ranks second, behind California, for most workers employed in green job training, and is second among states for clean tech patents 28.

New York City has also committed to add to its green workforce. In late October, Mayor Michael Bloomberg announced 30 initiatives to create 13,000 green jobs, doubling the green jobs workforce in the city 29.

Mid-Atlantic

Virginia's green workforce has been growing steadily, and the state ranks in the top ten for workers in green jobs training and energy efficiency 30. The state has about 17,000 workers in the green sector31 and Gov. Timothy Kaine, whose term ends in January, has worked vigorously to boost its renewable energy economy32.
Maryland and West Virginia have experienced net losses of green jobs between 1998 and 200733. But new legislation in Maryland to reduce greenhouse gas emissions and increase energy efficiency may counter the trend34.  Already, community colleges in Maryland have responded by developing weatherization courses to train workers35. Green jobs in West Virginia should increase, too.

The state was awarded nearly $10 million in early November 2009 for local energy efficiency and retrofit projects, including local green jobs training and green building sectors36.

Pennsylvania has 39,000 people working in green jobs, and ranks among the top states for total green jobs and venture capital investments37. However, it has experienced net job losses in this sector over the past several years 38. The recession has caused large decreases in demand for wind projects, a source of green jobs in Pennsylvania39. State leaders are trying to balance competing interests of coal and natural gas and unions40 with renewable energy investments41.

Southeast

Florida ranks regionally as a large, growing green jobs market42. With over 30,000 jobs in the green economy and large solar projects in development, the state is poised for further growth43. Its investor-owned utilities have pushed ahead with solar projects despite the lack of a Renewable Portfolio Standard or other policy requiring them to do so44. According to Julie Hamm, executive director of the Solar Electric Power Association (SEPA), Florida is a unique example of a state with this kind of utility activity and no legislative mandate to do so.45 Florida Power and Light has said that the increases in solar capacity will stop unless the Public Utility Commissions gives FPL permission to do more, as the allowable solar capacity has been filled or is under construction46. Florida Power and Light has stated it favors a Renewable Portfolio Standard47. Public pressure exists to establish energy efficiency standards, as the current ones have labeled “far too inadequate" and “an impediment to establishing a ‘green economy’”48. 

Tennessee has about 15,000 green jobs, about half as many as Florida, but its green economy is growing at a much faster clip49. Tennessee has developed green jobs in the conservation50 and pollution mitigation sector, accounting for 75 percent of green jobs in the state51. Laid-off workers have enrolled in new green job training programs, but they are taking pay cuts to become employed52.

Midwest

Midwestern states have lost 1.2 million manufacturing jobs in the last seven years53. But a report released in November 2009 by the Blue Green Alliance, “Building the Clean Energy Assembly Line,” said that the U.S. could gain 850,000 new green manufacturing jobs by adopting new clean energy policies54, many in the Midwest. Already, seven governors in Midwestern states have adopted agreements55 to increase worker training in renewable energy, energy efficiency, biofuels, and advanced coal technologies, the fields attracting the most investment in the region56.

With 28,000 green jobs, Illinois is among the largest green economies in the Midwest57. However, the state has lost green jobs over the past 10 years58. Even with the infusion of stimulus money for weatherization, fewer jobs than predicted have actually materialized59. New investment in developing environmentally friendly manufacturing sector60 and sustainability training programs 61 is predicted to add about 57,000 new green jobs in the state 62.

Ohio has a large, moderately growing clean energy economy, which employs over 35,000, or 0.6 percent of workers63.  Toledo is among the state’s promising cities to spur green jobs growth64. A glass manufacturing city, Toledo successfully turned its attention to solar, adding 5,000 solar manufacturing jobs over the past five years65,66. The Great Lakes Wind Network is also helping green Ohio’s workforce by helping local businesses sell goods and services to wind energy companies67.

Southwest

With nearly 56,000 green jobs,Texas leads the region’s clean energy economy in number of green jobs68. Cited for heavy investment in wind energy[22][56], Texas ranks third among states for attracting venture capital in clean energy companies, with $717 billion invested between 2006 and 200869. One area of West Texas, Nolan County, contains 10 percent of all U.S. wind power capacity70. That development and others are the result of aggressive renewable portfolio standards and public policies that supports development of clean energy71.  The green movement in the state is growing in other sectors, too, as green building and energy efficiency projects take hold 72.

Of the 17,000 green jobs in Colorado, the majority are in wind and solar energy sectors73. Additionally, as home of leading research and development laboratories of clean tech, such as the National Renewable Energy Laboratory, Colorado State University, and the University of Colorado-Boulder 74, the state possesses plentiful jobs in the green training and support sector. Adding to the mix are 200 clean tech firms located throughout Colorado75.

West

California leads the country in the number of green jobs. About 125,000 workers are employed in the field76. The state is also home to the most clean-tech startups, which together received $6.6 billion  in venture capital investment between 2006 and 200877. For California, green jobs are found in every sector of the clean energy economy 78. In September 2009, the California Public Utility Commission announced that it plans to spend $3.1 billion over the next three years for statewide energy efficiency programs and retrofits79. The project is expected to create 15,000-18,000 jobs80.

State energy officials

States will see an influx of $3.1 billion of Recovery Act disbursements for their energy programs. This funding is designated to help states advance energy efficiency, education and training in clean energy, transportation programs, and other activities that help them rely less on traditional energy sources.

Each state has an energy office that devised an energy plan as a condition of receiving stimulus funds. Energy officials will use the stimulus money to execute these energy plans, which vary greatly from state to state. Some states will use the money to create green jobs and address state energy priorities. Others will adopt emerging renewable energy and offer grants to spur the development of energy efficiency technologies81.

Renewable Portfolio Standards

A renewable portfolio standard is a regulation set by states. It requires utilities that sell electricity to include renewable energy sources by a specified date 82. State renewable energy standards vary widely. As of November 2009, 33 states plus the District of Columbia decided to adopt binding renewable energy policies83. Some states have set ambitious renewable energy goals, such as Maine84 and California85, which have set standards of 40 percent by 2017 and 33 percent by 2020, respectively. Some states have more modest goals, such as Pennsylvania at 8 percent by 2020.

Some states have set “carve-outs,” requirements that a portion of the renewable energy come from a certain source, such as solar power86,87or wind 88, to encourage development of that resource. Renewable portfolio standards affect the types of green jobs created.

Financial Incentives

Every state offers some kind of financial incentive or policy for residents and businesses to encourage the use of renewable energy and improve energy conservation. That, in turn, drives local interests in the green economy. The website of the Office of Energy Efficiency and Renewable Energy at the Department of Energy (DOE) provides details of federal financial incentives89. For state incentives, the website that is the go-to source for information is the Database for State Incentives on Renewables and Efficiency (DSIRE)90. The website lists state, local, utility and federal policies and incentives.

Over 800 financial incentives and policies for renewable energy and efficiency exist in the U.S. and its territories. DSIRE lists summary tables for each location as well as local contact information. The data is broken down by federal, state, utility, local and non-profit incentives. The number of policies and incentives changes each month, and this is a challenge for reporters. In October and November of 2009, for example, 14 states and the District of Columbia, added 28 new incentives.  The DSIRE adds information regarding these updates regularly. 

 

Rebate programs

To motivate businesses and residents to install renewable energy systems and take on energy efficiency measures, states and utilities offer rebates to offset the costs of solar water heating and photovoltaic systems. As of November 2009, 316 different types of rebate programs exist. For energy efficiency, utilities administer the rebate programs, which can vary widely. In Texas, the Farmer’s Electric Cooperative utility offers a $100 rebate for the purchase of an energy efficient water heater and $1000 for a geothermal heat pump 91. In Colorado, United Power offers its utility customers a rebate on efficiency technologies like new Energy Star clothes washers and refrigerators ($40 rebate each) as well as geothermal heat pumps ($2,500 rebate) and LED holiday lighting. 92

 

Loan programs

Low interest or zero-interest financing exists to help residents and businesses buy renewable energy or energy efficient systems. These loans have been common in the demand-response programs, or the implementation of demand-side management programs for electric utilities.

They are also common for small businesses. In Tennessee, small businesses can get zero-rate loan in certain communities in order to retrofit buildings with energy efficient technologies, such as adding insulation, double pane windows, and energy efficient heating, cooling, or lighting 93. In Florida, four municipal utilities offer loan programs to residents and businesses. In Tallahassee, for example. offers loans for 25 different energy savings measures at 5 percent interest 94.

   

Grants programs

States and utilities offer grants to promote energy conservation and develop renewable energy technologies. Most grant proposals are considered on an individual bases. Others must meet a certain formula, or cost-benefit analysis. In Minnesota, Dakota Electric Association provides grants to business owners based on the estimated summer demand (kW) savings and the annual energy (kWh) savings 95.
 

Property tax incentives

These are tax exemptions, exclusions or credits. Most property tax incentives mean that adding a renewable energy system will not increase a property valuation for tax purposes. 
 
The property tax credits can range from stingy to generous. The State of Maryland has four kinds of property tax incentives, including a state tax exemption (but not local) of 100 percent for wind and solar energy. Seven counties have additional provisions. Anne Arundel County, Maryland, for instance, offers a one time credit of 50 percent of the cost of materials and installation for a solar heating or photovoltaic system, up to $2500. California, on the other hand, allows a property tax exclusion for 100 percent of the value of installed solar energy systems with no cap on the exemption. In Massachusetts, 100 percent of the value of wind and solar energy systems are eligible for property tax exclusions. It is also worth noting that the property tax credit is on the dwelling, not on the land valuation. 

 

 

References

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