GREEN COLLAR WORKFORCE DEVELOPMENT

POLICIES • PROGRAMS • STRATEGIES

Robert Moreo

Wayne State University

State, Regional and Local Economic Development – UP6550

March 9, 2010
Introduction

W hat is “green”? The fields of renewable energy production, green product manufacturing,
renovating buildings for energy efficiency, recycling, transportation, environmental monitoring
and remediation of contaminated sites – all of these emerging sectors make up the “green” economy.
These industry groups and others frequently indicate that there is a shortage of the skilled, qualified
employees necessary to expand their business. However, not all green jobs will be in these industries
or their immediate suppliers; in order to truly build a workforce for a competitive future, we need to
take the approach of preparing for “a world where every sector will incorporate aspects of
sustainability.” (Cha & Dafoe, 2009)

The purpose of this paper is to analyze the various steps and components of developing a green-
collar workforce. What are the common goals of successful green jobs initiatives? How do they vary
and how can they be tailored to suit local economies? What policies need to be put in place to drive
market demand for green products and services? How should the green-collar workforce be trained?
What are the characteristics of a green-collar job? How can practitioners leverage program success
into future political support and financial backing? These questions and more generate much debate
between green advocates and policymakers. This report is a study of many of the models currently in
place across the United States, including a specific case-study of New York City’s Green Collar Jobs
Roadmap, as well as an attempt to relate to some of the policies and programs in place in the State of
Michigan.

Identifying Goals

“O ur green future will be invented at the local level.” (Green Collar Jobs in America's Cities,
2008) The first step in developing a successful green jobs workforce development strategy is
to identify or set local environmental goals and targets. When a municipality or other unit of
governance puts in place a goal of reducing energy use or carbon emissions, a market is created for the
products and services needed to meet the goal. In New York City, Mayor Bloomberg launched PlaNYC
2030, which included 127 different initiatives to reduce energy use, clean up land and water, and reduce
greenhouse gas emissions, among other goals. (Cha & Dafoe, 2009) Without the goals set forth in the
Mayor’s plan, the city’s emerging green business sectors would not be growing at the rate they are
today. Once environmental goals have been set, strategies can be built to identify and train for the
specific skills needed to meet the targets. Governors in a significant number of states are making sector
strategies a central element of their state workforce and economic development policies. The defining
elements of state sector initiatives include a focus on customized solutions for a specific industry at a
regional level, a central role for a workforce intermediary in bringing the industry partnerships together,
and the dual goals of promoting the competitiveness of industries and advancing the employment of low-
and middle-income workers. (Ligot-Gordon, Oldmixon, Woolsey, & Simon, 2006) We will look deeper
in the next section into how government policies can drive market demand for green products and
services.

Another goal to set for a workforce development program is what population of workers the
initiative intends to serve. An assessment of what existing job programs are in place – what skills those
programs are developing, and what kind of workers are participating in the program – is important in
planning for a new green jobs initiative. It is crucial to include key stakeholders within the community to
be served – including governments, faith and community groups, business leaders and educational groups
– and to have this well-rounded task force in place to develop the programs. If it is a goal to reduce
poverty and provide opportunities to disadvantaged residents, then partnerships with agencies that
serve these communities need to be formed early in the development process. (The Apollo Alliance
and Green For All, 2008)

Stimulating Demand for Green Collar Workers

A common theme throughout the recent literature studying green workforce development is the
necessity for government policy to increase market drivers to ensure that actual jobs exist. The
intent is to “encourage market participation until a tipping point is reached, and public subsidies are no
longer needed.” (Cha & Dafoe, 2009) Federal, state and local policy can expand demand for green-
collar workers both directly and indirectly. Direct public sector investment often comes in the form of
government commitment to install renewable energy systems on public buildings, commitment to
convert public transportation and government vehicle fleets to alternative fuels, building mass transit
infrastructure, retrofitting existing public buildings for energy efficiency, and commitment to constructing
new public buildings to meet green building certification standards. (The Apollo Alliance and Green For
All, 2008)

Committing to a strategy for reducing municipal energy use can be a major component of
ensuring a city’s long-term competitiveness and viability. In New York City (and most major
metropolitan centers) building operations – heating, cooling and electricity – are by far the primary
consumer of energy. Investing in energy efficiency now can reduce the amount the city needs to spend
on energy in future budgets. As part of the PlaNYC 2030 initiative to reduce citywide greenhouse gas
emissions by 30 percent by 2030, the city is investing 10 percent of its energy budget – about $80
million in FY 2008 – to finance municipal building efficiency projects. These projects are expected to
create 124,000 jobs in engineering, construction and maintenance over the next decade. The city has
also started the process of having 2 megawatts of solar panels installed on municipal building rooftops.
(Cha & Dafoe, 2009) When the City of Chicago committed to purchase solar panels, it attracted two
solar power manufacturers to the city. (ibid) In 2007, the State of Michigan Department of
Management and Budget began an energy reduction program to reduce expenditures by 10% in 2008,
and an additional 10% by 2015. The state also encourages ongoing energy management in state-owned
facilities by offering a financial incentive to departments that have taken energy-saving actions and can
document the energy cost savings. Departments may retain seventy-five percent (75%) of their certified
energy cost avoidance to fund additional energy efficiency projects during the next fiscal year. (Michigan
Department of Energy, Labor and Economic Growth)

New York City and other municipalities around the country are also developing urban forestry
as a green initiative. Increasing urban green space improves air quality, helps manage stormwater runoff,
can reduce energy use by providing shade, and can even provide local, healthy sources of produce
through community gardens. (Cha & Dafoe, 2009) Parks and other greenery also tend to attract
residents and tourists to a city or state. Jobs are created in park maintenance, landscape design and
construction. Several programs in New York City are directly injecting public funding into green
development: the GreenStreets program is a partnership between the Parks Department and the
Department of Transportation, which is converting paved islands and medians into planted spaces. The
MillionTreesNYC program is a ten-year initiative of the Parks Department to plant a million trees by
2017. The city is also planning to expand or construct eight large parks in all five boroughs.

Cities aren’t confined to the ground when considering where to add greenery. Green roof
projects can help lower building temperatures, filter rainwater and air pollution, and reduce the urban
“heat island” effect. (Cha & Dafoe, 2009) The city of Chicago is leading the way nationally in green roof
investment. In 2001, the city installed over 20,000 square feet of green roof plantings at city hall. A
rainwater collection and irrigation system helps maintain the vegetation. Chicago also implemented a
grant program, providing 20 grants to residents and small businesses to install green roofs. As of
October 2006 there were more than 250 public and private green roofs totaling more than a million
square feet either built or under construction. (Chicago, City of) There is even an example of a local
health food store converting its roof to grow herbs for sale to the public. New York City also features
a one-year property tax credit to help offset the cost of installing green roofs. (Cha & Dafoe, 2009)

Besides the direct purchase of green products and services to stimulate demand, public funding
is a significant way in which government policy affects the market for green collar jobs. Funding for
public and private green investment can come from sources such as local bonds and tax assessments,
and state and federal block grant and loan programs. (The Apollo Alliance and Green For All, 2008) The
federal energy bill passed in 2007 created a new Energy Efficiency and Conservation Block Grant
program, which was then funded in 2009 through the American Recovery and Reinvestment Act
(commonly known as the Stimulus Bill or ARRA). Congress allocated $3.2 billion for this program,
through both formula and competitive grants, which can be used for a wide variety of conservation and
efficiency initiatives at the state and local level – some will be spent directly on projects, while some can
be used in other indirect ways. 59% of the formula funding was allocated to cities and counties, and 24%
was at the state level. The State of Michigan was allotted $77.7 million of this funding. (US Department
of Energy)

Governments can also provide indirect market incentives, through tax policy, building codes,
and other means of assistance. The most common method of indirect market stimulation is through tax
incentives, rebates and other credits. For example, New York’s City Council successfully pushed the
state to pass a property tax abatement for solar panel installations. (Cha & Dafoe, 2009) At the federal
level, the ARRA provided $300 million for an energy efficiency appliance rebate program. The famous
“Cash for Clunkers” program provided up to a $4500 credit upon turning in an older vehicle to
purchase a more efficient new one. The federal government also allows tax credits for such residential
efficiency investments as: insulation, windows, HVAC equipment, water heaters and certain roofing
products. These products must meet high criteria for efficiency to allow taxpayers to claim the credit,
thus stimulating a demand for the more expensive, more efficient product. The State of Michigan, as
well as many others, offers similar credits. Nationwide there are over 1000 personal, property,
corporate and sales tax incentives, rebates, grants or loans available for energy efficiency projects.
(North Carolina Solar Center)
 An additional step that can help integrate market-driving incentive programs with workforce
development initiatives is to require recipients of municipal tax credits and other incentives to
participate in the development in some way. Businesses could be required to hire employees from the
programs, or be required to implement additional job training programs of their own. (The Apollo
Alliance and Green For All, 2008) Job standards – including living wage and benefit requirements, local
hiring preferences, and safety considerations – should be a requirement for companies receiving public
money. Community benefits agreements created between developers and local community
organizations require the developer to support a range of job readiness programs. The goal of the
agreement is to create a pool of job-ready applicants from the local community to fill the new jobs in a
development. (Cha & Dafoe, 2009)

Green building codes and other regulatory legislation can have an impact on the market for
green building products and jobs. In New York City, the 2009 Greener, Greater Buildings Plan required
buildings over 50,000 square feet in area to benchmark energy and water use, undergo periodic energy
audits and implement certain retrofit measures. The legislation is predicted to create over 2000 new
jobs in energy auditing and building management, as well as thousands of temporary construction jobs
over a ten-year period. (Cha & Dafoe, 2009) While the State of Michigan’s building codes have been
recently upgraded to require higher standards of energy efficiency, state law forbids local municipalities
from requiring stricter building codes. Legislation is pending in the State House (HB 4575) that would
amend the law to allow localities to adopt tougher, specific green building standards as their code.
Cities that choose to do so could then be viewed as good locations for green businesses to locate, since
there will be a market for their services. Governments can also subsidize the certification of
contractors who perform energy efficiency testing as a way of stimulating the market. The Building
Performance Institute certifies energy analysts and auditors, and the New York State Energy Research
and Development Authority (NYSERDA) reimburses contractors for the cost of training and
certification. (Cha & Dafoe, 2009)

Portfolio standards are sets of goals that states put in place that specify certain percentages of
energy production that must come from renewable sources, or that specify certain percentages of
energy use reduction to be achieved through efficiency measures. The level at which a state is willing to
commit itself to a portfolio standard is seen as a signal of how committed they are to green policies in
general. States with low or no standards may not be seen as ideal locations for green businesses to
locate. On October 6, 2008, Michigan’s Public Act 295 was signed into law. The Clean, Renewable, and
Efficient Energy Act established an Integrated Renewable Portfolio Standard (RPS) of 10 percent by
2015. Energy providers must comply with this new standard through renewable energy generation,
renewable energy credits, and energy optimization schemes. The bill specifies biomass, solar
photovoltaics and solar thermal energy, wind energy, hydroelectric power, geothermal energy, and
energy generated from landfill gas capture as potential sources of renewable energy. Up to 10 percent
of the RPS can be met with advanced clean energy technologies that reduce emissions by 85 percent
relative to average coal power plant emissions or integrated gasification combined cycle facilities that
reduce emissions by 70 percent. (Pew Center on Global Climate Change) New York has two standards
in place. The Energy Efficiency Portfolio Standard requires that 15 percent of New York State’s
reduction in energy use must come from efficiency projects. The EEPS is projected to create over
50,000 jobs in the next three years. (Cha & Dafoe, 2009) On September 22, 2004, The New York
Public Service Commission also adopted a renewable portfolio standard. The standard requires that 25
percent of the state’s electricity come from renewable sources by 2013. (Pew Center on Global Climate
Change) This makes the State of New York appear to be the more welcoming of the two to green
businesses.

Preparing the Green Collar Workforce

T he next step that states and other levels of government must take is to link their goals and policies
to a set of workforce development programs that will provide the skilled workforce needed to
reach the targets. Without the goals and policies of market stimulation described above, such
workforce training is speculative at best. As was stated previously, green collar jobs initiatives should
focus on jobs that are actually going to exist. (The Apollo Alliance and Green For All, 2008)

In an environment where workforce development programs are often already fragmented, it

makes sense for green collar training initiatives to develop within or expand from existing programs.
Many of the jobs needed in a greener economy are an expansion of industries and jobs we already have.
This should mean less focus on creating new courses of study, and greater emphasis on embedding
green curricula into existing courses of study. (The Apollo Alliance and Green For All, 2008)
Incorporating green collar training into existing programs is also the most cost-effective way to integrate
training and recruitment strategies into a city or state’s green initiatives. (Cha & Dafoe, 2009) One
example of how to achieve this integration would be to require green building and retrofit training as
part of the building contractors licensing process. The State of Michigan does not yet do this; green
building practices can be taken as an elective component of the state’s required 60-hour pre-license
training program, but they are not required. This is an example of a change that could be made with
little to no cost. Other employment sectors where State of Michigan licensing is required, where green
job education could be integrated, include community planners, forestry professionals, landscape
architects and interior designers.

Essential to integrating green training into existing workforce programs is the formation of
green-collar job training partnerships with a variety of stakeholders. These partnerships are mandatory
for a city to position itself to access state and federal funding streams. Employers and business
organizations can begin the process by identifying weaknesses in the labor market, as well as helping to
design training curricula based on real-world workforce needs. This partnership should also be focused
at a sector or individual industry level, in order to use resources most efficiently. (The Apollo Alliance
and Green For All, 2008) Michigan has implemented a system of Michigan Skills Alliances. Built upon
the foundation of Michigan Regional Skills Alliances, Michigan Skills Alliances allow employers to directly
give crucial input to educators and community partners that will help shape and coordinate solutions to
specific industry or regional workforce needs. By providing employers a forum to directly communicate
their workforce needs, Michigan Skills Alliances are catalyzing partnerships that better address the
requirements of the business community. To further align with workforce demands, Michigan Skills
Alliances are either geographically- or industry-based to effectively target the needs of employers.
(Michigan Department of Energy, Labor and Economic Growth)

The educational system is a crucial piece of the green collar workforce training network.
Community colleges are quickly becoming the central focus of workforce training activity. Colleges
need to be part of the partnerships established to identify needed skills and design curricula to meet
those needs. Beyond training through coursework and degree programs, colleges provide needed
career guidance and other support services. (The Apollo Alliance and Green For All, 2008) In Michigan,
the Michigan Community College Association operates the Michigan New Jobs Training Program. If a
business is locating a facility or expanding operations in the state, the Michigan New Jobs Training
Program can provide flexible funding to meet a variety of training and employee development needs for
those new positions. Funds to cover the costs of training are attained through community colleges
issuing debt or self-funding. The debt is then repaid to the college through a diversion of withholding
taxes generated by the wages earned by the new employees. (Michigan Community College Association)
Michigan has also invested over $60 million in eighteen Technical Education Centers (M-TEC) within
community colleges around the state. These centers provide a comprehensive array of standardized and
customized training, workforce development programs and services to private businesses, non-profit
organizations, government agencies and individuals. (Michigan Economic Development Corporation)
 In 2007, Michigan Governor Jennifer Granholm announced the creation of the No Worker Left
Behind program, which would provide up to $10,000 for any unemployed or underemployed worker
willing to study towards a degree or certificate leading to an in‐demand job in Michigan. Outcomes for
the first 18 months have been impressive: over 62,000 people enrolled in the program; 55% completed
their training in the 18 months, and another 29% were still in training; of those who completed training,
72% either found a new job or were able to advance in a job they already had. No Worker Left Behind
has been funded by a mixture of federal sources, including an infusion from the ARRA. (Michigan
Department of Energy, Labor and Economic Growth)

Many colleges are even driving market demand; more than 600 higher education institutions
have signed the American College and University Presidents Climate Commitment, a formal pledge that
includes: developing a comprehensive plan to achieve climate neutrality, completing a comprehensive
inventory of all greenhouse gas emissions, establishing a policy requiring that all new campus
construction be built to at least the U.S. Green Building Council’s Leadership in Energy and
Environmental Design (LEED) silver standard or its equivalent, beginning to purchase or produce at least
15 percent of the institution’s electricity consumption from renewable sources, and other goals.
(Feldbaum & States)

New York City is taking green job training a step further by integrating it into career and
technical high schools, including retrofit and building efficiency programs. The City also operates a
Department of Youth and Community Development to run several training, workforce development
and employment placement programs for New Yorkers between the ages of 14 and 21. (Cha & Dafoe,
2009) While the Michigan Department of Education’s Office of Career and Technical Education does
include many career training pathways that could be considered part of the green economy, there is no
evidence that specific green job skills training programs are being incorporated into the high school
curriculum. (Michigan Department of Education)

For many Americans, the path to a well-paying green job doesn’t begin with a training program
at a local community college. Many people face a number of barriers to employment and training that
need to be overcome. If it is a goal for a state or city to extend green collar workforce development to
disadvantaged and impoverished members of the community, then a variety of comprehensive job
readiness services need to be incorporated into the overall workforce development plan. This must
often include outreach programs to find the disconnected workers in need of aid, as well as long-term
case management to guide participants through various levels of the development programs. An
effective pre-employment and job readiness program should provide: adult basic education in reading
and math, sustainability and environmental awareness training, a centralized information center for job
seekers, program alignment with overall green initiatives, neighborhood place-based emphasis and “soft
skills” training and “wraparound” services. These last two items can include readiness lessons in
personal etiquette and interview skills, and things like child care and transportation subsidies. (Cha &
Dafoe, 2009) (The Apollo Alliance and Green For All, 2008)

Documenting Success and Building Political Support

“W hat this report cannot provide is political will.” (The Apollo Alliance and Green For All,
2008) Support for ambitious environmental goals, public investment, and comprehensive
green collar workforce development must come from all levels of public leadership if it is to be
successful in the long term. Every case study in the literature studied for this report contains
somewhere a commitment by mayors, governors and city councils to make the choice to invest in
building a greener economy – and to invest in developing the workforce to do so. One of the keys to
leveraging political support is the ability to document and quantify a program’s achievement. What
partnerships have been built among stakeholders? What policy goals have been reached as a result of
green collar jobs programs? How many jobs have been created or retained? How many people are
participating in job training programs, and what is the result of their training? What funding sources
have been secured? The answers to these questions can help to track a program’s progress and
measure its success. (The Apollo Alliance and Green For All, 2008) This is yet another reason why it is
most effective to integrate green collar training initiatives into existing programs – the data and
resources needed to track the program are already in place, and political leaders are already familiar
with how the program operates.

This is an area with particular shortcomings in Michigan, as well as other locations. The very
nature of sector-based workforce development creates controversy between opposing political parties.
Strict advocates of the “free market” insist that government should have no role in choosing “winners
and losers”, and that direct investment and regulation by governments can only restrict private
enterprise. There is some validity in the underlying principle of this argument; however it is often taken
far into the extreme in order to gain political capital with an increasingly divided electorate.
Governments should create a tax and regulatory environment that is fair for all businesses to compete,
but at the same time there is a responsibility of government to put its citizens in the best position to
compete with workers across the country and around the world. The New York City Green Collar
Jobs Roadmap was created from a series of working groups and roundtable meetings between many
different stakeholders. Perhaps one of the most important groups to participate was the political
strategy working group, which provided guidance on how to move the green collar jobs workforce
development agenda through legislative and political channels. (Cha & Dafoe, 2009)

Conclusions

A merica’s economy is an ever-changing, complex organism, competing more today than ever in a
global economy that no longer looks to the United States to lead the way. It is up to the leaders
in our business communities, cities, states and in Washington to adapt to the challenges of the 21st
Century. After World War II, the United States was in a unique position to rise up as the global
economic powerhouse many of us are accustomed to. Low-skill, high-wage industrial jobs built an
affluent middle class unparalleled anywhere in the world. Today those jobs are either gone or vanishing
quickly, and what develops in their place will determine the future of the American middle class.

The underlying theme to green collar workforce development is sustainability. In order to make
American cities more environmentally sustainable, new green industries must be nurtured and
developed to meet the challenges of future energy and environmental demands. And at the same time,
there is an opportunity for the jobs themselves to be sustainable – good-paying, career track jobs with
opportunity for advancement. Ambitious goals must come from the top – and citizens should demand
that they do, or else elect leaders who can provide that ambition. Green initiatives to pursue those
goals can be integrated into existing structures for workforce and economic development. Standards
can be raised to ensure that public investment is rewarded with high-quality jobs in return. Progress can
be measured and documented in order to secure further support and investment. There is evidence of
success, but the process is going to take longer than that of our next campaign and election cycle. It is
ultimately up to the people to choose and shape their own future.
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