The Pay for Success Clean Energy Training project is an $8.2 million partnership between the New York State Energy Research and Development Authority (NYSERDA), the U.S. Department of the Treasury (Treasury), and the U.S. Department of Labor (USDOL), developed with support from Social Finance and MDRC. Under the project, NYSERDA will fund clean energy job training and supportive services for more than 660 New Yorkers, including the long-term unemployed, low-wage workers, and youth aged 16-24. Training partners will offer participants:
- Technical training and credentials, focusing on heat pumps, HVAC, or electrification.
- Career pathways to sustained economic mobility, including soft skills training and job placement services.
- Wraparound support services, such as case management, transportation or financial assistance, and referrals to other community services.
This project is the first award under the Social Impact Partnerships to Pay for Results Act (SIPPRA), which supports state and local governments to implement outcomes-based financing. If the project demonstrates an increase in participants’ earnings, Treasury and USDOL will provide up to $7.1 million in outcomes-based payments to NYSERDA. The award also includes a $1.1 million grant for an independent evaluation of the project, conducted by MDRC.
NYSERDA is committed to advancing the state’s transition to a green economy and meeting the ambitious climate equity goals of the Climate Leadership and Community Protection Act (CLCPA), which seeks to ensure that disadvantaged communities receive at least 40% of the benefits and spending of climate action programs. This project specifically aims to eliminate barriers for these communities to access quality jobs within the clean energy sector.
GOALS OF THE PROJECT
- Increase employment and earnings of low-wage earners who may experience barriers to employment.
- Support the clean energy economy by building a pipeline of qualified workers that meets the needs of clean energy employers.
- Build community capacity for quality workforce training programs by facilitating participants’ access to critical social services and wraparound supports.
- Reinvest in clean energy workforce development using the project’s outcomes-based payments.
HOW IT WORKS
New York State Energy Research and Development Authority is funding training services and managing the project.
The U.S. Department of the Treasury and U.S. Department of Labor are administering the SIPPRA award, which will provide outcomes-based funding for the project and cover the cost of the independent evaluation.
TRC Companies is providing technical assistance to NYSERDA as well as the project’s training providers.
MDRC is independently evaluating the project’s effects on sustained economic mobility in the clean energy sector.
Social Finance supported the design and structuring of the project and provides active performance management services.
Social Finance’s work on this project has been generously supported by the Doris Duke Charitable Foundation. The mission of the Doris Duke Charitable Foundation is to improve the quality of people’s lives through grants supporting the performing arts, environmental conservation, medical research, and child well-being, and through preservation of the cultural and environmental legacy of Doris Duke’s properties.