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State Could Create 1 Million New Jobs in Transition to Clean Economy

As California transitions to a greener economy, new jobs can be created while other jobs will be lost.

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Headshot of Robert Pollin

As California’s economy reopens, numerous labor union representatives at a news conference on June 10 demanded a safe and equitable transition to the green economy for workers.

Union members made their demands virtually at the conference, also sharing their thoughts on a new related report on California jobs by researchers at the University of Massachusetts at Amherst.

The research, led by economics professor Robert Pollin, says California can create 1 million new jobs a year through 2030 by investing in energy efficiency, clean renewable energy,  manufacturing/infrastructure, and land restoration/agriculture.

“Our study shows how to get there,” Pollin said.

As California transitions to a greener economy, new jobs can be created while other jobs will be lost.

The report says $76 billion is needed to create 416,000 jobs in energy efficiency and clean renewable energy while $62 billion is needed to create 626,000 jobs in manufacturing/infrastructure and land restoration/agriculture.

Pollin said about 112,000 workers are employed in California’s fossil fuel and bioenergy industries and about 58,000 are expected to lose their jobs by 2030 as those two industries contract and coal use ends.

The damage may be most severe in Kern, Contra Costa, and Los Angeles counties, where 50% of all fossil fuel job losses will occur when the state’s fossil fuel industry contracts, according to the study.

But about 350,000 a year can be created with the investments that Pollin’s team suggests.

About 320,000 of those will be created in Los Angeles County.

Some of the money from the $138 billion to be invested would go toward helping those out of work train and relocate, if needed, to new jobs, according to the report.

About half or $70 billion of the total investment would come from public coffers while the other half would come from private investors.

If President Joseph Biden gets the American Jobs Plan passed, it could provide $40 billion a year for clean energy and infrastructure investments in California, covering about 60% of the $70 billion that may need to come from public funding.

“The Congressional THRIVE Agenda would provide about $100 billion per year for the clean energy, infrastructure/manufacturing and land restoration/agriculture programs we describe,” the researchers said.
Also, the state can borrow to supplement federal funding.

Union members who spoke at the news conference were excited about the prospect for 1 million new jobs, but they want them to be good-paying, union jobs.

Some union members were sober about the prospect of the fossil fuel industry coming to an end.
Norman Rogers, vice president of the United Steelworkers Local 675 said working at a refinery it’s hard not to see the writing on the wall with cars like the Prius and Teslas on the road.

“Now is the time for an equitable transition,” he said.

He wants to make sure workers nearing retirement, those at the mid-career level and newcomers are taken care of.

Dave Campbell, secretary-treasurer for Local 675, said they are prepared to take Pollin’s work to Gov. Gavin Newsom to discuss “securing the funding for this disaster relief and recovery package for fossil fuel workers, in this budget cycle.”

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At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses.  The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

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Toks Omishakin, secretary of the California State Transportation Agency, was one of the speakers at the event. Photo by Shellee Fisher Photography and Design.
Toks Omishakin, secretary of the California State Transportation Agency, was one of the speakers at the event. Photo by Shellee Fisher Photography and Design.

By Calvin Naito, Special to The Post

On June 4, a national nonprofit named the Equity in Infrastructure Project (EIP) – which aims to increase public construction contracting opportunities for small and historically underutilized businesses – held a day-long event in downtown San Francisco to rally supporters and build momentum to its cause.

It was attended by more than 100 individuals from public agencies, private firms, and other organizations committed to increasing contracting opportunities with governmental agencies, thereby creating more competition and lowering public costs.

The EIP event was held the Hyatt Regency San Francisco in conjunction with BuildIT, which aims to increase contracting opportunities for LGBT-owned businesses.

At the event, 16 entities signed the EIP pledge, vowing to take steps to increase public contracting opportunities in their spheres for small and historically underutilized businesses.

The pledge signees included Hub International, the Port of San Francisco, the San Francisco Public Utilities Commission, California High-Speed Rail Authority, the Port of Oakland, Robert Graham of Webcor Builders, Holder Construction, the Weitz Company, Sky Blue Builders, Hornblower, Swinerton, Luster National, Talson Solutions, Center for Community Wealth Building, and the Construction Contractors Alliance.

Following the workshop, BuildIT hosted a VIP evening reception honoring EIP, whose principals – Phil Washington, John Procari, and Rick Jacobs – accepted the award.

The event also set in motion the coalition’s efforts to implement recommendations from EIP’s “Procurement for Prosperity: A Playbook.”

The Playbook is a practical guide for public agency leaders and procurement and contracting practitioners to grow the capacity of small and first-time contractors, strengthen competition, and deliver better value for taxpayers.

Toks Omishakin, Secretary of the California State Transportation Agency (CalSTA), a long-time EIP supporter, also told attendees, “This is about commitment.  This has been a life’s work. This is a tailwind moment.”

The event’s presenting sponsor was Hub International, one of the largest insurance brokerages in the nation, which was joined by partners Travelers Insurance and the State Compensation Insurance Fund.

After the pledge-signing ceremony, attendees participated in a workshop in which they examined the policies, practices, and programs needed to meet EIP goals, learned from practitioners, and identified next steps toward utilizing the Playbook.

Ingrid Meriwether, formerly of Merriwether & Williams Insurance Services (MWIS) and current president of Hub International’s Aligned Risk Management, MWIS, described the hard-fought lessons she and her MWIS team have learned over the last three decades administering contractor development programs (CDPs) for the City and County of San Francisco, Alameda County, City of Los Angeles, LA Metro, and other municipalities.

The CDPs help small and local construction firms win public infrastructure contracts with these government agencies.  The program provides bonding assistance, contract financing, technical support, training, and other services to underrepresented businesses funded by public agencies who seek greater contracting participation with these firms.

Merriwether said programs like these “break down systemic barriers, create greater fairness, and save taxpayers money by enabling more competition.  The contractor development programs have, cumulatively, over two decades, helped contractors access over $1 billion in bonding, supporting over $380 million in awarded contracts, and maintaining a loss ratio 250 times lower than the industry average – while saving participating municipalities more than $27 million in contracting costs as a result of enabling more competition.”

Rick Jacobs, EIP co-founder and co-chair urged attendees make plans to meet again in the near future “to continue building on this work, share progress on organizational commitments, and discuss how we can collectively advance the goals of the EIP pledge.”

For more information on the EIP and to access a copy of the Playbook, go online to https://equityininfrastructure.org/

Calvin Naito is communications manager for Equity in Infrastructure Project.

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