Last month, the American Association of Blacks in Energy (AABE) held its annual Energy Policy Summit in Washington, DC. Bringing together leaders across the energy industry, AABE members and other attendees took on the challenge of discussing an ‘Expedient & Equitable Implementation’ of the most recent federal policies aimed at the national energy transition.
On Day 1, AABE members convened on Capitol Hill, where we heard several lawmakers share about recent activities and their goals for the upcoming year, including addressing permitting reform, equitable access to advanced energy technologies, and investment in new grid technologies. Day 2 transitioned to discussions around previous major federal legislation, such as the Inflation Reduction Act (IRA), Infrastructure Investment and Jobs Act (IIJA), and Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, federal programs and community benefits planning (CBP), and top regulatory trends of 2023.
Amidst the various discussions held over the two-day summit, several key takeaways overheard at the summit left the biggest impression for reflection:
“The fossil fuel industry has more of us (African Americans) in positions of power than the renewables industry. We don’t want to just install the power; we want to sign the power purchase agreements.”
According to the 2021 Diversity in the U.S. Energy Workforce Report prepared by the National Association of State Energy Officials (NASEO), only 8% of workers in the energy sector are African American, compared to 13% across the national workforce. A report from The Solar Foundation goes a step further, adding that across the renewable energy industry, C-suite employees are almost exclusively white, with only three Black Fortune 500 CEOs as of 2018. Although this percentage may have changed in the past few years, perception remains a reality for many in Black communities. Companies that are pushing the needle forward on energy progress still struggle to hire skilled minority leaders.
In recent years, Advanced Energy United and many other clean energy trades have helped companies focus increasingly on DEIJ (diversity, equity, inclusion, and justice) in how they approach the implementation of projects and how they serve historically disadvantaged communities. A major sentiment coming out of the summit is that it’s not enough to serve these communities but to provide leadership roles so that there is buy-in at all levels of energy companies. Dr. Henry McKoy, Director of the U.S. Department of Energy’s State and Community Energy Programs emphasized this point regarding the Justice40 initiative. Allocating 40% of project benefits to disadvantaged communities is the floor, not the ceiling, and the clean energy community must build trust and make impactful investments across the country. Many engaged fossil fuel and utility companies have promoted a higher number of minorities to leadership roles, and that visibility has led to an increased level of trust that the clean energy industry must work to overcome.
“Permitting reform is key in 2024.”
Now that many state and federal laws and clean energy standards have been made law across the U.S. the next major obstacle for successful implementation is permitting reform. New energy projects often face year-long waits to come online, with many cumbersome and outdated policies creating roadblocks for interconnection. This is strongly felt amongst communities that are, for the first time, seeking and gaining access to advanced energy resources.
Many lawmakers understand and share in the concerns that were expressed during the convening and committed to making permitting an area of focus next year. Every organization in the energy space has a role to play in helping to address this roadblock and provide insightful leadership into how we can move the needle in decreasing interconnection backlogs.
“Community benefit plans that don’t take the input from the communities they engage are perfunctory and ineffective. They will also go largely unrewarded.”
Engaged community benefits planning (CBP) makes or breaks a successful engagement strategy. This was the sentiment shared amongst the speakers during the CBP meeting and echoed throughout the event. As more federal, state, and private dollars flow into projects across the country an increasingly important component being evaluated is the impact it will have on local areas. More and more offices, such as the U.S. Department of Energy’s Grid Deployment Office (GDO), are increasing the percentage by which they weigh CBP in grant awards.
What can companies do to ensure they are successful? Engage early and often. Don’t just seek local input, appoint local leadership. GDO further underscored the importance of CBP by sharing how innovative plans make applications stand out, showing their true commitments to their communities. Short-term impacts are important, but long-term benefits make the difference.
Advanced Energy United looks forward to attending and sponsoring AABE’s 47th National Conference, to be held in Anaheim, CA in April 2024. Current United members and other partners are invited and encouraged to join United to raise the profile of the advanced energy industry with AABE by joining our Advanced Energy Coalition sponsorship. Through an Advanced Energy Coalition sponsorship of the event, which provides an impactful forum for more than 1,000 energy professionals, companies will have the opportunity to forge partnerships, showcase their organization, and connect with thought leaders. To join the Advanced Energy Coalition sponsorship, please contact Kate Johnson, kjohnson@advancedenergyunited.org.