Resolution to endorse the “Direct Pay Green New Deal for King County” Report.

August 21, 2024

WHEREAS, As the climate crisis worsens, communities in King County face increasingly severe and life-threatening risks from extreme weather events, particularly from heat waves, wildfire smoke and extreme winter weather.

WHEREAS, The 2022 federal Inflation Reduction Act (IRA) includes Direct Pay tax credits that can bring nearly unlimited funding for clean energy projects to the communities that need it most.

WHEREAS, For the first time ever, through Direct Pay, tax-exempt entities, like municipalities and states will receive tax-free cash payments in lieu of tax credits from the IRS for sustainable energy projects, as long as all requirements are met.

WHEREAS, King County can use Direct Pay tax credits to significantly expand investments in clean energy, generate affordable — and potentially free — electricity, and create thousands of union jobs in the clean energy sector.

WHEREAS, Direct Pay is an uncapped tax credit, not a grant fund with a limited pot of money. Every project that qualifies gets funded and the municipalities can claim Direct Pay for as many projects as they have. Direct Pay will help build sustainable energy infrastructure by increasing access to these credits and creating good-paying jobs.

WHEREAS, To receive the full base credit for Direct Pay, the IRA includes prevailing wage and apprenticeship (PWA) requirements for EV charger projects as well as renewable energy projects larger than 1 MW. These requirements help protect workers and create high-quality jobs, but entities can go above and beyond by fulfilling PWA requirements for all projects regardless of size, partnering with unions, and establishing Community Benefit Agreements (CBAs).

WHEREAS, More specifically, we can ensure that King County funding supports local hiring, prevailing wages, and union labor for city projects and any projects funded by a grant or loan fund.

THEREFORE, BE IT RESOLVED, The MLK Labor council endorses the report published by 350 Seattle, titled, Direct Pay & a Green New Deal for King County: Leveraging Federal Funds for Progressive Priorities in Schools and Housing.

BE IT FURTHER RESOLVED, MLK Labor supports urging King County to make full use of the Direct Pay provision in the Inflation Reduction Act. Direct Pay is a huge opportunity that King County should seize to cut greenhouse gas pollution, advance environmental justice, and create hundreds of good-paying union jobs in the process.

BE IT FURTHER RESOLVED, King County council members, the King County executive, and other community leaders should not miss this window of opportunity to take advantage of Direct Pay before the climate crisis escalates further.