When the Inflation Reduction Act passed in 2022, it was groundbreaking. In terms of tackling climate change, the law puts us on a path to reduce the emissions driving climate change by up to 48% by 2035. The investments in the Inflation Reduction Act will create more than 9 million jobs over the next decade—an average of nearly 1 million jobs each year. Perhaps the most impactful piece is the labor and community standards that were—for the first time—attached to the clean energy investments in the law to make sure the jobs created are good, safe jobs in the areas that need them the most—like energy communities and low-income communities.

In short, the Inflation Reduction Act demonstrates that we don’t have to choose between good jobs and a clean environment—as some falsely claim—we can support both.

Using the Tools in the Toolbox

PREVAILING WAGE

REGISTERED APPRENTICESHIPS

Project Labor Agreements

In addition to those standards, the Treasury is incentivizing the use of Project Labor Agreements (PLAs). These are collective bargaining agreements that are negotiated in advance of a project. They usually specify:

• wages, fringe benefits,

• worksite conditions,

• dispute resolution protocols that restrict lockouts and strikes, and

• ensure health and safety protections.

Lifting Up Workers and Communities

Inflation Reduction Act investments are already delivering for Americans, especially for blue-collar workers who have been on the hurting end of economic changes and bad trade policies in this country for decades. The Inflation Reduction Act also promotes investment in the areas that need it the most, like communities that have seen jobs shipped overseas, communities impacted by energy transition, and communities of color. That also means we’re seeing some investments being made in states where union density and job quality are lower. But’s let’s be clear about a fundamental fact. Every worker in this country has the right to organize into unions so they can collectively bargain with their employers for better wages, benefits, and working conditions. And that right will be protected and enforced because it is the law of the land.

The intent of the Inflation Reduction Act was clear. It was designed—from the start—to create good-paying, safe, union jobs in a growing clean economy. The new guidance by the Treasury Department goes a long way to making that promise a reality.