$1,973 LEDs and the Green New Deal: How many union workers does it take to screw in a light bulb?

WSJ editorial.

"The Green New Deal that Democrats unveiled last week has a grand ambition to eliminate fossil fuels in 10 years, retrofit every building in America, and guarantee high-paying jobs in the bargain. If you want to see how that works in the real world, consider the public housing projects near Rep. Alexandria Ocasio-Cortez’s New York office.

The New York City Housing Authority (Nycha) has a more modest goal of a 30% reduction in greenhouse-gas emissions by 2027. As part of its plan, Nycha is switching to LED lighting, which lasts longer than incandescent bulbs and consumes less energy. Sounds smart, until you see how many union workers it takes to screw in a light bulb.

One recent project focused on 23 housing developments, and changing the light bulbs and fixtures there cost $33.2 million. Supplies account for a fraction of that cost. Under Nycha’s Project Labor Agreement, electricians make $81 in base pay and $54 in fringe per hour, and overtime is usually time and a half. Add administrative and contracting expenses. All in, Nycha paid an average of $1,973 per apartment to install LEDs.

For Ms. Ocasio-Cortez, sky-high labor costs are part of the plan. Her Green New Deal resolution would create “high-quality union jobs that pay prevailing wages” and reinforce “the right of all workers to organize, unionize, and collectively bargain.” It also mandates upgrades for “all existing buildings in the United States” to “achieve maximal energy efficiency.” In this worker’s paradise, there’s a $1,973 LED in every socket.

Ms. Ocasio-Cortez’s proposal also states that a Green New Deal “must be developed through transparent and inclusive consultation, collaboration, and partnership” with both labor and low-income families. But if she visited the Nycha homes, she may find those mandates are at odds.

“I can buy LED myself,” said Barbara Jones, 69, who has lived in Cypress Hills since her 20s and is dismayed by the disrepair. Others we interviewed said they’d rather see money go first to getting rid of vermin, mold and lead paint, tidying filthy premises, or improving safety.

Nycha also updated the heat and hot water systems in addition to upgrading the lights at these 23 developments, and the total cost for the energy-efficiency overhaul was $68.7 million. A Consolidated Edison grant covered $8.25 million, but Nycha took out a loan to cover the rest. The housing authority has three similar projects in construction at other developments, and the total cost for all four is $271.8 million.

LED lights and other energy-efficiency upgrades may drive Nycha’s utility bills down, but those savings aren’t directly passed on to taxpayers for as long as 20 years. Under the federal Energy Performance Contracting Program, the federal Department of Housing and Urban Development continues to reimburse Nycha for utilities at pre-LED levels. Public housing authorities must spend a minimum of 75% of their savings on servicing the loan and other project costs, but they have more discretion over the rest.

In the private economy, $1,973 could go a long way toward improving a dilapidated apartment. Only in the world of green government spending is replacing light bulbs for two grand a unit a cost-saving measure."