After participating in multiple Hispanics in Energy Hydrogen Hub Forums, I couldn’t help but reflect on the monumental investments and the opportunities the regional hydrogen hubs present for Americans as a whole, disadvantaged communities, and of course our environment. These hubs, made possible by the Inflation Reduction Act (IRA), represent bold initiatives to harness the power of hydrogen as a clean energy source.
As we advance toward making hydrogen 30% of our nation’s energy mix, it is crucial to ensure these projects are carried out in a way that benefits local communities, especially those that are economically or environmentally disadvantaged. Hispanic businesses and workers are poised to play a critical role in the production of the projects, as well as reap the economic and environmental benefits.
A key aspect of all seven Hydrogen Hubs is the Justice40 initiative, which directs 40% of the overall benefits to disadvantaged communities. It is imperative that we seize this moment to turn these benefits into real, tangible improvements that uplifts communities across the nation. For Hispanics, this directive should translate into economic opportunity, educational advancement, and environmental justice for our community.
Economic Opportunity:
In the United States, 35% of Hispanic workers are employed in industries directly related to energy and energy production, such as manufacturing, transportation, and construction. In the energy sector alone, nearly 20% of the workforce is Hispanic. Hispanic-owned businesses similarly over-index in sectors like construction, waste management, and transportation. It stands to reason that our community should receive opportunities in the form of contracts and quality careers through these hydrogen hubs, especially when it comes to the hubs located in predominantly Hispanic communities.
Educational Advancement:
Given the new technologies and skills required by these projects, it’s essential to upskill and train workers for new careers. As it relates to the Hispanic community, one quarter of oil field workers are Hispanic, yet we are virtually absent in the c-suite. By partnering with Hispanic-serving institutions (HSIs) and investing in STEM education, we can elevate the quality of math and science education and increase career opportunities for Hispanics, particularly in leadership positions. This is a model that should be applied to all communities involved in the projects’ completion.
Environmental Justice:
Disadvantaged communities often bear the brunt of environmental issues. Turning again to the Hispanic community, and according to Harvard, air pollution in predominantly Hispanic zip codes is 14% higher than normal. Moreover, 29% of Hispanic families live within three miles of a polluted area requiring long-term cleanup. We must ensure that the environmental benefits and investments from these hydrogen hubs work to mitigate the risks that our community, and others, currently face.
By directing 40% of the benefits to disadvantaged communities across the nation, we can create abundant and widespread economic growth while ensuring that the benefits of the clean energy transition are shared across all American communities. This includes prioritizing environmental justice, promoting economic opportunity, and closing the education gap for Hispanic communities and others.
The Regional Hydrogen Hubs are a promising step toward a cleaner, more sustainable energy future. However, to date, we have seen very little direct benefit flowing from the IRA to our community, and even less to our businesses. By focusing on community engagement, workforce development, and equal contracting opportunities, we can create a more level energy and environmental landscape. The IRA’s hydrogen hubs offer a chance to build a future where all communities not only prosper, but thrive.
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Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC). The United States Hispanic Business Council (USHBC) is a voice for the Hispanic business community. A 501(c)6 non-profit organization, the USHBC focuses on improving access to contracting in the public and private sector, fair representation of Hispanics in business, media, and politics and ensuring Hispanics have a voice in the national dialogue. The USHBC is a nonpartisan organization. Follow @JPalomarez @myushbc