Climate Change Impacts Across California - Workers and Employers

Climate Change Impacts Across California WORKERS & Workers & Employers EMPLOYERS Other Reports Summary in This Series Climate change will have a number of serious impacts on California, including public health risks, damage to property and infrastructure, life-threatening events, and impaired natural resources. This report—which focuses on how a changing CROSSCUTTING ISSUES climate is affecting workers and employers—is one of a series summarizing how climate change will impact different sectors across California. In this report, we discuss ways climate change impacts workers and employers. In particular, changing conditions—including more days of extreme heat and wildfire HEALTH smoke—increase the likelihood of worker injuries, illnesses, and fatalities, especially for those who primarily work outdoors or indoors without adequate air conditioning or ventilation. In general, the most heavily impacted industries tend to employ mostly low- and middle-wage workers, meaning climate impacts will disproportionately affect HOUSING these workers. Many workers likely also will face greater work instability, both in the short term due to extreme weather events, but also in the longer term, as some industries will need to shift operationally or geographically. Climate change will impact employers as K-12 EDUCATION well, including the state, as they will have to adapt to ensure worker safety and minimize losses in labor productivity. These adaptation measures will have costs for businesses and consumers, as well as for state and local governments. The state likely also will incur costs from the need to expand its workforce to respond to climate change impacts— TRANSPORTATION including more firefighters and emergency responders, as well as new engineers and scientists to assess vulnerabilities and carry out the state’s responses to climate risks. Given these impacts, the Legislature may want to consider whether the state should play a more proactive role in ensuring labor standards adequately protect workers from the hazards that climate change impacts present. The Legislature also will want to evaluate which workers, industries, and regions will be disproportionately affected and how the state might want to help address those challenges. Adapting workplace practices to improve safety as well as preparing workers to respond to the economic impacts caused by climate change will be both challenging and, in many cases, costly. However, preemptive efforts that help workers and industries adapt could bring longer-term health benefits and be less economically disruptive for the state compared to if actions were not undertaken. To the degree the state will incur additional costs—such as for an expanded workforce to address climate impacts—the Legislature may want to incorporate anticipated costs into longer-term budget considerations and climate adaptation planning efforts. An additional important question for the Legislature to consider is what data the state currently has to help address climate change impacts on workers and employers, and whether it needs to collect additional information to inform its decisions. Gabriel Petek Ap1ril 2022 LEGISLATIVE ANALYST’S OFFICE Introduction This report contains three primary sections: emissions of greenhouse gases (such as by (1) the major ways climate hazards impact workers encouraging work equipment, vehicles, and and employers, (2) significant existing state-level facilities to be more fuel and energy efficient). efforts underway to address these impacts, and California Faces Five Major Climate (3) key questions for the Legislature to consider in Hazards. As discussed in depth in our companion response to impacts on workers and employers. report, Climate Change Impacts Across California: Given the complexity of the issues, this report Crosscutting Issues, California confronts five does not contain explicit recommendations or a major hazards as the result of climate change. specific path forward; rather, it is intended as a Specifically, increasing temperatures, a changing framing document to help the Legislature adopt hydrology, and rising sea levels are leading to: a “climate lens” across the labor policy area. • Higher average temperatures and Because some degree of climate change periods of extreme heat. already is occurring and more changes are inevitable, this document focuses primarily on • More frequent and intense droughts. how the Legislature can think about responding to resulting impacts. Of note, the state also • Increased risk of floods. is engaged in numerous efforts to limit the • More severe wildfires. degree to which climate change occurs by enacting policies and programs to reduce • Coastal flooding and erosion. Major Climate Change Impacts on Workers and Employers Climate change is having uneven impacts health risks for workers in certain settings— across different industries, occupations, and particularly for those workers who face increased regions in the state. Affected workers face exposure to heat and wildfire smoke. Working increased occupational hazards, decreased in high temperatures, for example, can result in productivity, and greater likelihood of work heat stress, a condition that in severe cases has disruptions. The adverse effects of climate caused worker fatalities. Working outdoors in change impacts can be minimized, though not extreme temperatures also has been shown to eliminated, by state and employer actions that increase the incidence of workplace accidents help workers adapt safely to climate change. and injuries. Though outdoor workers are most The state and employers likely will incur higher at risk of illness and injuries caused by excessive costs to adapt to these climate change impacts. heat, preliminary research suggests that indoor We discuss the significant ways in which workers also can experience heat-related health climate change affects workers, employers, impacts. Heat is particularly threatening for and industries in further detail below. workers in warehouses, commercial delivery truck drivers, and workers at indoor manufacturing Climate Change Impacts Increase facilities where air conditioning is unavailable or Occupational Hazards. As summarized in inadequate. Additionally, conditions that expose Figure 1, the changing climate is increasing workers to wildfire smoke—even on a short-term 2 LEGISLATIVE ANALYST’S OFFICE basis—may cause eye and respiratory tract middle-wage workers, meaning climate impacts irritation and can aggravate pre-existing respiratory will disproportionately affect these workers. and cardiovascular disease. Furthermore, a recent Specifically, workers in industries where the study linked exposure to wildfire smoke during majority of the work occurs outdoors will be the 2020 fire season to increased incidence of most affected based on their greater exposure to COVID-19 infection and fatalities, suggesting extreme heat and wildfire smoke. As highlighted smoke exposure can lead to additional health in Figure 1, such industries include agricultural vulnerabilities. Droughts also can lead to higher production, forestry, commercial and residential occupational risk. For example, Valley Fever, a construction, utilities, and landscaping, as well fungal infection that spreads through spores in dry as the outdoor-based hospitality, services, and soil, can more easily proliferate with a drier climate recreation industries. As mentioned above, these and increased dust storms, increasing potential industries tend to pay low- and middle-wage exposure for agricultural workers, construction salaries. Specifically, median 2021 hourly pay in workers, and other outdoor-based occupations. California for agricultural workers ($14 per hour), forestry workers ($15 per hour), construction Climate Change Impacts Pose Particular workers ($23 per hour), landscaping workers Risks for Workers in Certain Industries. ($15 per hour), amusement park attendants As the climate continues to change, workers ($15 per hour), and recreation workers across industries will experience a range of ($14 per hour) all fell below the overall statewide impacts. In general, the most heavily impacted median hourly pay of $23.50 per hour. More industries tend to employ predominately low- and than 2 million Californians work in these jobs, Figure 1 Climate Change Impacts Workers Increase in Occupational Hazards • Working in higher temperatures can increase workplace accidents, injuries, and fatalities. • Exposure to wildfire smoke can create and exacerbate existing health conditions. • Drought conditions can increase health risks for workers, such as spreading Valley Fever. Particular Risk for Workers in Certain Industries Some workers face higher risk of health impacts due to heat and wildfire smoke. Industries with high exposure to these hazards include: • Agriculture • Forestry • Construction • Utilities • Landscaping • Outdoor-based hospitality, services and recreation • Indoor work in warehouses, manufacturing facilities, and commercial trucking LEGISLATIVE ANALYST’S OFFICE 3 representing about 10 percent of the state’s overall more frequent droughts, agricultural production workforce. Furthermore, Latino workers make up a in the Central Coast may need to shift away disproportionate share of the workforce in outdoor from water intensive, temperate crops to more industries that face greater exposure to extreme resilient products, potentially changing planting heat and wildfire smoke. Specifically, while Latino and harvesting seasons or practices for workers. workers represent about 38 percent of the state’s In more dramatic cases, work in affected overall workforce, they account for 60 percent of industries and sectors could shift substantially— the workers in the outdoor industries listed above. in many cases driving changes that require fewer workers (either due to new practices or a In Certain Regions of the State, Employees smaller economically viable market) or in some Are Disproportionately Working Outdoors. cases calling for a larger workforce. In each Certain areas of the state are home to higher case, workers likely will need to relocate, train proportions of the industries most affected to adopt new industry practices, or shift to new by climate change, and as such, are already types of work as industries adjust to climate disproportionally experiencing more significant shifts. For example, in the Central Valley, even impacts on employment and workers. These higher temperatures and greater water limitations impacts will increase as climate change escalates. render drought impacts more severe than along For example, some of the primary industries in the Central Coast. As such, sustaining existing the Central Valley—construction, agriculture, levels and methods of agricultural operations very and landscaping—and Sierra region—logging, likely will not be operationally or economically grounds maintenance, and tourism—are all based viable there in the coming years. A significant outdoors. As such, under a changing climate, the decrease in agricultural production could have workers in these regions are being more frequently considerable employment impacts in that region, exposed to occupational risks. As noted next, such as fewer jobs overall and unpredictable these same Central Valley and Sierra industries— changes to the nature of remaining jobs. and their workers—also are more significantly impacted by increasingly frequent and intense Work in Some Industries May Also Become droughts. In contrast, the leading industries Less Stable. In addition to operational changes, in the San Francisco Bay Area—technology, changing climate patterns and disruptions also information, and professional services—are could make work less stable and predictable for primarily based indoors, leaving workers in that many workers. For example, extreme heat and region comparatively more protected from heat, smoke that pose risks could shorten the viable smoke, and variable precipitation trends. The construction season or lead to intermittent work heavily populated Southern California region is interruptions. Other extreme weather events—such home to a mix of indoor and outdoor industries. as drought cycles, flooding, and wildfires—could cause work interruptions and instability in other Workers and Operations in Impacted industries as well, including tourism, recreation, Industries Will Need to Adjust as Climate agriculture, and logistics/goods movement. For Shifts. Some of the industries and regions example, in the coming decades, there is an most affected by the impacts of climate change increasing risk that high-tide flooding exacerbated likely will need to make long-term adjustments by sea-level rise will disrupt port-based to remain viable. Such disruptions could have commerce and goods movement along the coast, significant implications for associated workers. inhibiting workers’ abilities to perform their jobs. For instance, due to increased temperatures and To a lesser extent, in some areas, increasing 4 LEGISLATIVE ANALYST’S OFFICE lower baseline temperatures could actually might need to purchase additional air filters and lead to fewer disruptions. For example, in areas masks to protect workers from smoke, incur that have historically experienced snowy winter higher utility costs from an increased need for conditions, warmer temperatures might result air conditioning, provide additional training to in less snow and expand the time frame when help prevent and identify heat-related illnesses, forestry, construction, and utilities work can occur. or modify facilities to accommodate periodic flooding (such as by moving sensitive equipment Extreme Weather Is Affecting Worker to higher floors). Costs to implement these Productivity in Exposed Industries. measures are unknown but potentially large. The changing climate is, in most cases, reducing worker productivity in highly exposed industries. State Labor Costs to Respond to Climate For example, prolonged heat exposure decreases Impacts Are Increasing. Direct state costs work capacity, because workers need more to respond to climate change have increased frequent breaks and to reduce their work substantially in recent years, particularly due to intensity in response to higher temperatures. wildfire-response costs. For example, annual Reduced productivity due to prolonged heat state costs to suppress increasingly extreme and exposure may have several consequences, high-severity wildfires increased from $1.9 billion including higher costs and longer time lines in 2015-16 to $2.9 billion in 2020-21. As wildfires for construction projects or manufacturing and other extreme climate events become more processes. To the extent these impacts are not frequent, the state likely will need to fund an mitigated by new innovations or technological expanded workforce and more worker overtime to solutions, productivity losses generally will cause respond to these emergencies, further increasing economic growth in a region to progress more state costs. Moreover, to the extent that these slowly than if productivity remained unaffected. state emergency responders face more dangerous work conditions due to more severe wildfires or Ensuring Worker Safety Under Changing floods, costs for workers’ compensation and Conditions Will Result in Additional Costs death benefits also will rise. The state also likely to Employers. As extreme weather events will incur costs from the need to expand its become more common, employers will have to workforce in other areas to respond to climate implement adaptation measures to ensure worker change impacts—such as by hiring additional safety and minimize the loss in labor productivity. engineers and scientists to assess vulnerabilities, These measures will have associated costs for plan for adaptation strategies, and design and businesses and consumers, as well as state implement the state’s responses to climate risks. and local governments. For example, employers LEGISLATIVE ANALYST’S OFFICE 5 Significant Existing Efforts and Funding The state has already undertaken some Legislation Ensures Farmworkers’ Access actions to address the climate change impacts to Personal Protective Equipment (PPE) described above, such as adopting workplace and Wildfire Smoke Safety Education. safety standards regarding extreme heat and Chapter 322 of 2021 (AB 73, Rivas) includes wildfires. In this section, we provide a summary farmworkers in the definition of essential of key existing state-level efforts and funding workers as it pertains to health emergencies, intended to address the effects of climate including during wildfire smoke events. Under change on workers and the workplace. this bill, farmworkers, as essential workers, must receive PPE from the state stockpile in a health Cal/OSHA Adopted Heat Illness emergency. In addition, this bill requires Cal/OSHA Prevention Standard in 2006. In response to review, update, and publish on its website its to several heat-related workplace fatalities in wildfire smoke training. The bill further requires 2006, the California Division of Occupational employers to provide wildfire smoke training Safety and Health (Cal/OSHA) Standards to their employees taking into account their Board issued permanent workplace heat language backgrounds and educational levels. regulations—known as the Heat Illness Prevention Standard. The standard requires employers to State Spent $2.9 Billion on Wildfire provide drinking water and shade at outdoor Response in 2020-21, in Part for State workplaces during hot periods. The standard Employee Costs. The California Department of also requires employers to train supervisors Forestry and Fire Protection spent an estimated and staff to identify and prevent heat illness. $2.9 billion on wildfire response in 2020-21, in part to respond to some of the most destructive Cal/OSHA Adopted Emergency Wildfire fires in state history. This included funding for Smoke Standard in 2020. In 2020, the firefighting staff, support staff, and other costs Cal/OSHA Standards Board adopted to support firefighting operations. Roughly emergency regulations to require employers to $600 million of these costs are anticipated to provide N95 masks to outdoor employees for be reimbursed by the federal government. voluntary use if the Air Quality Index (AQI) for particulate matter (PM) 2.5 is greater than 150. 2021-22 Budget Included $600 Million in The regulation mandates N95 mask use in the Regional Grants for Economic Resilience. workplace when the AQI for PM 2.5 exceeds The 2021-22 budget included $600 million in 250 unless other safety conditions are met. one-time federal American Recovery Plan Act funds for regional partnerships to plan for and Legislature Directed Cal/OSHA implement economic transition strategies. These to Regulate Indoor Heat Exposure. funds are primarily for jobs training programs Chapter 839 of 2016 (SB 1167, Mendoza) in clean technology fields in response to state required the Cal/OSHA Standards Board to and federal steps to reduce greenhouse gas issue indoor heat illness prevention regulations emissions. While specific grant requirements are by January 1, 2019. The board delayed meeting not yet available as of this writing, partnerships this deadline and as of this writing is still could potentially use a portion of the grant funds working on preparing preliminary indoor heat to address climate impacts currently affecting regulations in accordance with SB 1167. workers and industries in their regions. 6 LEGISLATIVE ANALYST’S OFFICE Key Issues for Legislative Consideration Given the magnitude of the health, safety, present. Examples of potential legislative and economic implications of climate change interventions include the following: on workers and employers, the Legislature will • The Legislature could direct Cal/OSHA want to consider what role the state should to conduct a vulnerability assessment play in addressing these impacts. Below, we of the effects of climate change on discuss several key considerations for the workplace safety to proactively identify Legislature, including issues such as improving how the state’s standards should workplace safety in a changing climate; prepare for changing conditions and addressing the distributional economic impacts how prepared workplaces currently are of climate change on workers, employers, and to address climate change impacts. regions; and incorporating climate change into long-term budget considerations. We also • The Legislature also could direct the Labor summarize these issues in Figure 2. and Workforce Development Agency to monitor how often the workers’ compensation How Can the State Help Improve program is being used for heat-related injuries Workplace Safety Under a Changing or illnesses to identify whether this safety Climate? Historically, Cal/OSHA has primarily issue might need more state intervention. been a reactive entity, only changing workplace safety standards in response to fatal and harmful • Should these data suggest additional steps incidents that occur. Based on this practice, are merited, the Legislature could consider Cal/OSHA likely will wait until climate change other mechanisms to support implementation impacts such as extreme heat and wildfire of safety upgrades and enforcement of smoke become more prevalent before adopting safety standards. For example, the state additional policies to address them. The division’s could encourage employers to implement enforcement of workplace safety regulations is adaptation strategies, such as installing similarly reactive, mainly undertaken in response air conditioning units and shifting work to worker complaints. While Cal/OSHA has hours to cooler parts of the day. Such adopted some changes to standards based on adaptation strategies will range in costs conditions the state has begun experiencing (which are highlighted above), more likely will be needed Figure 2 as conditions worsen. Climate Change Impacts on Workers and Employers: Key Issues for Legislative Consideration The Legislature may want 9 to consider whether the How can the state help improve workplace safety under a changing climate? state should play a more 9 What is the role of the state in addressing impacts on workers in regions and proactive role in ensuring industries most affected by climate change? state labor standards 9 adequately protect workers How should the state address climate change impacts—and associated costs—for state employees? from the hazards that various 9 climate change impacts How do the merits of preparing for changing conditions compare with the consequences of failing to prepare? LEGISLATIVE ANALYST’S OFFICE 7 and burden to employers and workers. workers from industries and regions where For instance, shifting work hours to cooler climate change impacts result in significant job parts of the day could provide protection losses? As another example, should existing state from extreme heat but disrupt workers’ programs that support workers account for the family, education, and other schedules and instability of work impacted by climate change? obligations. The state will need to assess Given they are overrepresented in affected these types of trade-offs when considering industries, should the state focus its efforts on which adaptation strategies to encourage. addressing the anticipated impacts on lower-wage workers? What steps might be better left to • The Legislature could require employers to address, rather than the state? Cal/OSHA to expand enforcement of safety standards by more frequently inspecting How Should the State Address Climate workplaces in highly impacted industries Change Impacts—and Associated Costs— to ensure safety standards are met. for State Employees? As noted, the state is likely to incur higher costs for state employees What Is the Role of the State in Addressing to respond to wildfires and other climate impacts Impacts on Workers in Regions and Industries because more personnel will be needed to Most Affected by Climate Change? In areas address the increasing severity of the impacts. where a significant portion of the workforce is The Legislature may want to incorporate these employed in a sector that will be highly affected by types of anticipated costs into its longer-term climate change, workers might need to relocate budget considerations and climate adaptation or retrain for a different type of work. In addition, planning efforts. Are there steps the state can take some workers might face work instability, as to constrain such costs? Along with any actions or unpredictable and changing conditions disrupt incentives it adopts for private employers, are there economic activity. The Legislature will want to additional steps the state should take to ensure consider which workers, industries, and regions and improve upon the safety of state employees? will be disproportionately affected and how the state might want to help address those challenges. How Do the Merits of Preparing for One current challenge is that the state often Changing Conditions Compare With the does not collect the data necessary to make this Consequences of Failing to Prepare? Adapting assessment. One option to begin addressing this workplace standards and practices to improve problem could be to direct workforce agencies to worker safety as well as preparing workers to start collecting and reporting data on utilization of respond to the broader regional economic impacts workforce programs among workers in specific caused by climate change will be both challenging industries and occupations with high exposure and, in many cases, costly. However, preemptive to heat, drought, inclement weather, or other efforts that help workers and industries adapt to manifestations of climate change. Additional data climate change impacts could bring longer-term could give the state a clearer sense of whether health benefits and be less economically disruptive existing state programs, such as unemployment for the state compared to if actions were not insurance and workforce development programs, undertaken. For example, over time, the costs of are equipped to address the needs of workers implementing new workplace safety standards impacted by climate change. For example, for employers could be significantly less costly should the state target workforce development than potential losses in labor productivity and and training programs specifically to address worker health benefits if current practices continue 8 LEGISLATIVE ANALYST’S OFFICE under increasingly hazardous conditions. What specific research efforts—to try to evaluate these is the nature and magnitude of risks to workers cost-benefit trade-offs? What tools does the state and economic activity if significant adaptation have—and what information does it currently actions are not undertaken? Are there steps lack—to help inform its decisions around how to the state should take—such as funding for address climate change impacts on workers? Conclusion Workers and employers will increasingly challenges are daunting, the state can help experience the effects of climate change. address negative impacts by proactively and For affected workers, climate change impacts deliberately assessing, planning, and preparing likely will increase the risk of occupational for these impacts. As described above, inaction hazards, decrease productivity, and cause likely will have significant statewide health and work disruptions—particularly in industries economic consequences. The extent to which where a majority of the work occurs outdoors climate change will impact workers and employers or indoors without adequate ventilation and will depend directly upon that the degree to cooling. Moreover, adapting to changing which local governments, private businesses, conditions likely will lead to additional costs for and the state prepare in the coming years. employers—including the state. While these LEGISLATIVE ANALYST’S OFFICE 9 10 LEGISLATIVE ANALYST’S OFFICE LEGISLATIVE ANALYST’S OFFICE 11 LAO Publications This report was prepared by Eunice Roh and Chas Alamo, and reviewed by Rachel Ehlers and Carolyn Chu. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 12 LEGISLATIVE ANALYST’S OFFICE