PA Good Clean JOBS NOW Stephen Herzenberg Keystone 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