Climate Legislation That Could Brighten Our Future

by Taylor Gendel

Photo by Julia Volk on Pexels.com

As we emerge from quarantine, the sun appears to be shining a bit brighter on what the future may hold for efforts to deal with climate change. New legislation is at the forefront of the Biden administration and in Illinois to expand clean energy and advance new employment opportunities that can also address issues of equity and inclusion — which is needed given current patterns in the industry. On average, clean energy jobs pay 43 percent more than all occupations combined at the national level while they pay 45 percent more than all occupations combined at the regional level. Yet, participation in these jobs by people of color and women in our region falls below that of whites and men (see Clean Energy Report).

CLEAN Future Act

The U.S. House Committee on Energy and Commerce introduced the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act, an ambitious bill with goals for cutting emissions and with an aim to reach net-zero GHG emissions by 2050. Among the bill’s proposals the legislation sets a national 100% clean electricity standard (CES) with $200 million authorized to states to help prepare their plans, specific goals for individual sectors, and a Green Bank called the Clean Energy and Sustainability Accelerator, to help transition to a clean economy.

The sprawling bill also has a focus on worker transition and environmental justice, creating new programs to support dislocated workers and including investments in lead service line replacements and brownfield cleanups. The bill aims to remove barriers to clean energy but ultimately leaves it up to states to ensure that emissions reduction targets are achieved.

More info on the bill here.

Consumers and Climate First Act

Governor Pritzker is proposing to tackle these issues at the state level with the Consumers and Climate First Act. This bill addresses renewable energy and clean power as well as ethics and consumer protections after a scandal shook up the utility world this past year. The bill aims for 100% clean energy by 2050, with plans to phase out coal by 2030 and natural gas by 2045.

To assist consumers, the bill includes the elimination of “online payment fees for all utility bills and would eliminate the customer deposit requirement and late fees for low-income residential utility customers”. Tiered discount rates would be made available for customers with incomes at or below 80% of their area median income. Another provision of the bill that matches the national level is a plan to help workers who lose their jobs transition to work in the renewables industry by creating a displaced “worker bill of rights”.

Clean Energy Jobs Act

The Clean Energy Jobs Act (CEJA) is a follow-up bill to 2016’s Future Energy Jobs Act. CEJA builds on the success of 2016’s bill with commitments such as 100% renewable energy by 2050, cuts on carbon from the energy sector by 2030, and again a strong focus on job creation. More recently, a proposal for a green bank has been added to the bill, which would create a nonprofit to design and run the institution with oversight from an 11-member board in order to boost financing for clean energy investments, and work in tandem with the national Clean Energy Accelerator. The state bank would prioritize investment in underrepresented and environmental justice communities and the funding of projects run by and employing Black, Indigenous, and people of color. “The Clean Energy Jobs Act calls for Illinois’ green bank to raise $100 million in seed capital funded through a pollution tax on fossil fuel extraction and emissions”

This effort would work in tandem with other proposals in the bill including a focus on workforce training and support for clean energy businesses. “We are in the midst of three crises — public health, economic and a crisis when it comes to systemic racism. … To move us out of these crises, Chicago and Illinois should be at the forefront of moving from the rust belt to the green belt. Clean energy must become an engine of safety and stability in our communities.” said state Sen. Robert Peters.

Moving forward

While the status of these bills is still to be determined, many are optimistic that growing clean jobs will be a priority moving forward. A key challenge will be making this growth equitable and financially beneficial. To this end, the Voorhees Center is prepared to provide technical assistance and applied research to help develop, implement, and support regional strategies that result in job creation, high-skilled regional talent pools, and business expansion to help:
• increase employment among underserved populations in good-paying green jobs;
• increase green economic development in underserved communities within our region, particularly southern Cook County and Chicago’s South and West sides; and
• increase growth in the region’s green economy with attention to innovation and inclusion in clean energy, food production, green infrastructure and transportation, distribution and logistics.

For more information, check out our work supported by the US Economic Development Administration at https://edauniversitycenter.uic.edu/

A Just Transition For Chicago

by Taylor Gendel

Frontline organizations have been working to advance a just transition, and local policy such as Illinois’s Clean Energy Jobs Act provide opportunities to push this work to the forefront.

The Clean Energy Jobs Act (CEJA) hopes to build on the success of 2016’s Future Energy Jobs Act (FEJA) by building on this unique moment to help Illinois create “long-term answers to the public health and economic challenges posed by the novel coronavirus”. The passing of CEJA would expand the clean energy economy. Some of the proposed methods for this transition include:

• Creating Clean Jobs Workforce Hubs, a network of frontline organizations that provide direct and sustained support for minority and disadvantaged communities, including job opportunities
• Prioritizing companies that implement equity actions to ensure equitable representation in Illinois’ clean energy workforce
• Creating a Contractor Incubator program that focuses on the development of underserved businesses in the clean energy sector
• Creating Clean Energy Empowerment Zones to support communities and workers who are economically impacted by the decline of fossil fuel generation

The expansion of the clean energy sector can also contribute to correcting the long-standing environmental damages in many of the communities that experience high unemployment; producing benefits for both individuals and communities. A recent study by the Voorhees Center finds there has been a higher growth rate of jobs in Clean Energy Production, Energy Efficiency, and Environmental Management in our region than the overall economy. Further, clean energy economy jobs pay an average of 9 percent more than other jobs, and have the potential to increase the inclusion of people of color and women in the workforce.

This potential for growth suggests that the transition to a clean energy economy could help address economic inclusion challenges on the local level, as the current roster of workers in related occupations is far from inclusive. The existence of distinct barriers to access require additional attention and action.

How can we begin to advocate for clean energy jobs here in Chicago? The proposed “We Will Chicago” initiative aims to focus on equity, diversity and resiliency. One primary focus will be on the environment, climate and energy. Planners and residents should have opportunities to engage in community conversations and push for ideas like clean energy jobs and a just transition – in hopes of a more sustainable and equitable future.

A Just Transition For Us All

by Taylor Gendel

As we navigate these trying times, instead of yearning to “go back to normal”, what if we reimagined a new future? A future that is equitable, sustainable, and just?

Photo by Pixabay on Pexels.com

A just transition is “an intentional shift toward a society in which the economy and the environment can thrive simultaneously, with social structures in place to make sure equity takes priority in the process as well as the outcome.”.

This pandemic has allowed for reflection, both within ourselves and systemically, and a critical examination of the status quo. If we want to make a just transition, now is the time.

The potential for that transition comes with the new President-elect’s Climate Plan, which proposes striving for a 100% clean energy economy by 2050, and includes innovations specifically targeting communities most impacted by climate change.

An October report from BW Research Partnership for Environmental Entrepreneurs, found that clean energy jobs paid 25% more than the national median. The report also found that there are about three times more workers in clean energy industries than fossil fuels and that clean energy jobs are available in every state. These jobs have better benefits, and have the potential to increase the inclusion of people of color and women in the workforce. However, recent analysis by the Brookings Institution concludes that “(m)aximizing the impact of Biden’s climate plan (or any national plan) depends on clear worker definitions, targeted workforce investments, and strong local collaborations.”

Locally, a just transition will require active planning and investment in the clean energy landscape. Our next post will look at this landscape in more detail, focusing on the Chicago clean energy economy.

General Iron Move to Southeast Side Triggers Racial Equity Concerns

By Nicholas Zettel and Jessica Kursman

Scrap metal shredder General Iron has announced they are are moving from their current Lincoln Park site to a proposed site bordering the South Deering and Hegewisch community areas in 2020. The move would disproportionately impact Latinos, single female mothers, children under 18, elderly individuals over 65, and low-income residents.

The move coincides with developer Sterling Bay’s proposed Lincoln Yards project, which is transforming the near-north side’s Planned Manufacturing District from its historic industrial landscape into a mix of residential, commercial, and entertainment uses.

In a recent Chicago Tribune article, General Iron’s crisis communications specialist, Randall Samborn, cited the smaller population surrounding the proposed site to suggest that General Iron will be farther from residents. According to the Samborn, about 6,800 people live within a mile of the Southeast Side site, compared with about 47,500 who live that close to the scrap shredder’s current operation west of Clybourn Avenue between North Avenue and Cortland Street.”

While it is true that residential uses surrounding the proposed Lake Calumet site are less dense than those in Lincoln Park, this narrative overlooks the differences in the populations of the proposed Southeast site and the current Lincoln Park location. When compared with the existing Lincoln Park site, residents living within one mile from the proposed site are more likely to be identified as Latino; under the age of 18; older than age 65; and a female-headed householder with children present.

Latino and Low-Income Residents Disproportionately Impacted

Residents identified as Latino will be more impacted by the proposed General Iron site than any other demographic group. Within a one mile radius of the proposed General Iron site, more than 67 percent of the population is identified as Hispanic or Latino, compared to approximately 10 percent of the population within a mile radius of the existing Lincoln Park site*.

The proposed General Iron site is also within a neighborhood with notably lower incomes than the current site. The Lincoln Park site household income is $69,000 –more than three times that near the proposed Southeast side site ($20,000).

 

Female Headed Households and Youth Disproportionately Impacted

Additionally, female residents and young residents are disproportionately represented near the proposed site. Specifically, within a one mile radius of the existing General Iron site, slightly more than 15% of residents are younger than age-18, while nearly 27% of residents within one mile of the Lake Calumet site are younger than 18 years old.

 

Furthermore, single-female households will be disproportionately affected by the move. An estimated 30 percent of Southeast side households within a mile radius of the proposed General Iron site are female-headed households with people under age-18 present. In contrast, approximately 5 percent of households surrounding the Lincoln Park site are headed by single women.

Source: U.S. Census Bureau, American Community Survey, Five-Year Estimates, 2012-2016; ESRI ArcGIS 10.5.1.

Land Use and Vulnerable Populations in the Calumet Region

The proposed move offers an opportunity to consider specific population needs of young and elderly residents, residents living in poverty, and single-parent households. Furthermore, the move illuminates a greater conversation of environmental and racial equity as it pertains to land use and zoning in the Calumet Region.

*U.S. Census American Community Survey 2012-2016 estimates