Boosting Clean Energy Jobs: Final Rules to Ensure Fair Wages and Training Opportunities
Key Ideas
  • Final rules released by the U.S. Department of the Treasury and IRS aim to support the growth of clean energy jobs through prevailing wage and apprenticeship requirements.
  • Investments in clean energy projects are projected to create over 270,000 jobs with an additional 1.5 million jobs expected over the next decade due to the Inflation Reduction Act.
  • The Biden-Harris Administration is actively promoting education and compliance with the new rules, offering resources and tools to ensure workers benefit from the clean energy transition.
  • Collaboration between DOL, IRS, and Treasury, along with the emphasis on project labor agreements, will facilitate compliance with prevailing wage and apprenticeship standards.
The U.S. Department of the Treasury and the IRS have released final rules to bolster clean energy jobs by emphasizing prevailing wage and registered apprenticeship (PWA) requirements within the Inflation Reduction Act. These rules are aligned with the Biden-Harris Administration's commitment to Investing in America. Projections indicate that more than 270,000 jobs will be created through announced investments in clean energy projects, with an additional 1.5 million jobs expected over the next ten years due to the legislation. Acting Secretary of Labor Julie Su highlighted the importance of ensuring tangible benefits from tax breaks for workers nationwide. The rules, developed in partnership with the Department of Labor, provide clarity on PWA requirements, particularly for projects supported by clean energy tax incentives. The initiative aims to center the clean energy transition around workers by incentivizing the payment of prevailing wages and hiring registered apprentices. Developers are urged to consider project labor agreements to aid compliance with these standards. The IRS will dedicate resources to promoting and enforcing compliance with the regulations, emphasizing the significance of meeting obligations for Clean Energy credits. To aid education and compliance efforts, the DOL introduced an interactive map estimating worker benefits from clean energy projects. A Memorandum of Understanding between DOL and the IRS is underway to enhance joint education and outreach. Details of the final rules include requirements for prevailing wage rate determinations by DOL, record-keeping standards, and clarity on apprenticeship requirements. Overall, the final rules seek to streamline compliance, encourage good labor practices, and ensure that clean energy jobs are well-paying and sustainable. Through collaboration and education, the administration aims to build a robust workforce to support the growth of the clean energy economy.
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