Article Summary –
Four Wisconsin utility companies, Xcel Energy, Madison Gas and Electric, Alliant Energy, and WEC Energy Group, have pledged to use union labor in the construction of several upcoming renewable energy projects. The Inflation Reduction Act, signed by President Biden in 2022, incentivizes the building of clean energy projects and is expected to invest $4 billion in clean power storage and generation in Wisconsin by 2030. The act awards tax credits to companies paying local prevailing wages and hiring workers who have completed local apprenticeship programs, often administered by labor unions, as well as bonus credits for using materials that meet federal “made in America” standards.
Wisconsin Utilities Pledge to Use Union Labor for Renewable Energy Projects
Four Wisconsin utility companies, Xcel Energy, Madison Gas and Electric, Alliant Energy, and WEC Energy Group, have pledged to use union labor for upcoming renewable energy projects. This commitment, made in partnership with Wisconsin labor unions, was applauded by Gov. Tony Evers who emphasized the crucial role of skilled labor in building a sustainable future.
The companies’ commitment aligns with the Inflation Reduction Act of 2022, a package of tax credits signed by President Biden to encourage clean energy construction. Despite facing opposition from Republicans, the Act was supported by Wisconsin Democrats and is expected to invest $4 billion in Wisconsin’s clean power storage and generation by 2030.
The Act includes tax credits for companies paying workers a local prevailing wage, ensuring fair salaries. Additionally, to receive tax benefits, hiring from local apprenticeship programs is obligatory, with bonus credits awarded for using American-made materials.
A 2023 report projected that the climate and energy provisions of the Act will create or preserve 23,000 jobs in Wisconsin between 2023 and 2032. These clean energy investments aim to reduce carbon dioxide emissions, a major contributing factor to climate change.
An analysis by the REPEAT Project predict that the Inflation Reduction Act, along with the 2021 infrastructure law, will cut U.S. carbon emissions by approximately 1 billion metric tons, thus moving the U.S. a step closer to its goal of significant greenhouse gas reduction.
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