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Mayor Gloria Releases Study Measuring Jobs Impact of State and Local Building Decarbonization Policies

ANALYSIS PROJECTS POTENTIAL JOB GAINS AND LOSSES, AND MITIGATION STRATEGIES

FOR IMMEDIATE RELEASE
Friday, April 1, 2022

CONTACT:
MayorPress@sandiego.gov

SAN DIEGO Continuing his efforts to support working San Diegans through the ongoing transition to clean energy, Mayor Todd Gloria today released a Jobs Impact Analysis of building decarbonization policies. The study measures potential impacts on San Diegos workforce of recent building code changes at the state level as well as proposed City of San Diego policies. It also highlights the job creation potential of planned municipal energy retrofits and lays the groundwork for continued partnerships with labor around targeted programs, policies and investments that can help ensure all workers benefit from the clean energy transition.

We understand that a highly skilled and well-compensated workforce is necessary to decarbonize our built environment and electrify our transportation sector, Mayor Todd Gloria said. Thats why were proactively analyzing the impacts of our emissions-reduction efforts on working San Diegans. Weve been working hand in hand with local trade unions to build knowledge and partnerships before we ramp up our building-decarbonization efforts to ensure that our clean energy future is truly for all of us.

City staff worked with expert consultants and trade union representatives to develop the Jobs Impact Analysis, which includes recent state energy code updates, potential local code changes that reach beyond state requirements, and the Citys upcoming municipal energy retrofit work. The analysis is intended to help the City and its partners plan for the potential workforce needs and job impacts of building decarbonization policies.

These conversations are far from easy; not every environmentalist is prioritizing labor protections and worker justice, and not every labor advocate is prioritizing necessary and immediate action to mitigate a catastrophic climate disaster, said Nate Fairman, Business Manager at IBEW Local Union 465, which represents 2,900 union electrical utility workers in San Diego and Imperial Counties. I applaud the City and the Mayor for being proactive and having the courage to bring all the stakeholders together to ensure that no worker is left behind as we work to address climate change.

Achieving the Citys draft Climate Action Plan (CAP) goal of net zero greenhouse gas emissions by 2035 will require the City to decarbonize buildings throughout the city by transitioning away from burning natural gas and other fossil fuels. The City has proposed two initial policies to begin this transition toward building decarbonization:

  1. The Municipal Energy Implementation Plan to upgrade all municipal facilities to achieve zero carbon emissions by 2035.
  2. A building code update that would complement recent state requirements to shift new construction away from fossil fuel use and provide for expanded electric vehicle charging at new residential and commercial buildings (also known as a Reach Code).

To better understand and prepare for the impacts of these policies, the City worked with The Building Electrification Institute (BEI) and Inclusive Economics to assess the near-term, direct impacts of these two specific policies, primarily on jobs related to gas infrastructure, utilities, and other construction trades in San Diego. The team engaged with key labor partners to collaborate on data collection, review the assumptions and methodology, and discuss key questions to answer through this research.

When local policymakers and the labor community engage early and collaborate on policies to address climate change, good things can happen, said Jenna Tatum, Director of BEI. We have seen this first-hand in San Diego, where forward-thinking labor leaders and City staff have demonstrated a solutions-oriented approach that will chart the path toward building decarbonization while also lifting up local workers. This leadership will make a meaningful impact locally and will help inspire other cities and labor partners nationwide to work together to tackle climate change. BEI looks forward to continuing to work with San Diego staff and stakeholders to identify and implement climate solutions that put workers first.

The analysis found that anticipated municipal clean energy projects have the potential to create an average of 60 to 90 new jobs per year over the next 13 years. As outlined in the Citys Municipal Energy Strategy, the City has committed to work with labor and workforce partners to leverage their municipal retrofits to provide on-the-job training for local trainees in new clean energy technology and equipment, extending the benefits of these retrofits beyond the projects themselves.

Changes to require electrification in most new construction could result in 60-65 fewer jobs annually, which are primarily tied to gas pipe installation and other infrastructure work in residential developments in San Diego. Armed with this information, the City will work closely with those affected to identify opportunities and policies to transition their valuable skills to clean technologies that increase the sustainability and resiliency of our city. This proactive analysis will help San Diego craft thoughtful policies to achieve our emission-reduction goals, as well as put the City ahead of the curve to bring in external funds to support the efforts.

The City can mitigate potential job losses by looking beyond building decarbonization policies and into other sectors where investments are needed, including transit-oriented housing development, water and sewer upgrades like the Pure Water San Diego project, as well as piloting new technologies.

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