reports

By Sam Appel and Jessie HF Hammerling - UC Labor Center, September 20, 2023

California continues to lead the nation in charting a path to economy-wide decarbonization. On this path, the state has committed to pursuing a high road transition that prioritizes the development of a sustainable economy grounded in equity for workers and communities.

In our 2020 report Putting California on the High Road: A Jobs and Climate Action Plan for 2030 (JCAP), commissioned by the California Legislature in Assembly Bill 398 (Garcia, 2017), the UC Berkeley Labor Center offered guidance for policymakers on how to ensure an equitable energy transition for workers in California. That report describes clear, proven strategies for maximizing the creation of high-quality jobs across the low-carbon economy, broadening opportunities for workers of color and workers from historically marginalized communities, delivering the skilled workforce needed to achieve California’s climate targets, and protecting workers in transitioning industries.

This report presents a current snapshot of the state’s progress in implementing several of these strategies by examining the integration of high road workforce standards across California’s climate investments. Specifically, we review existing high road standard policies in California, and assess the reach of high road standards across the state’s proposed climate investments in California’s 2022-23 state budget.

Download a copy of this publication here (PDF).

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Gregor Semieniuk, and Chirag Lala - Political Economic Research Institute, September 18, 2023

The report Employment Impacts of New U.S. Clean Energy, Manufacturing, and Infrastructure Laws by PERI researchers Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, Gregor Semieniuk and Chirag Lala estimates job creation, job quality, and demographic distribution measures for the three major domestic policy initiatives enacted under the Biden Administion—the Inflation Reduction Act (IRA), Bipartisan Infrastructure Legislation (BIL), and the CHIPS Act. Pollin et al. find that, in combination, total spending for these measures will amount to about $300 billion per year. This will generate an average of 2.9 million new jobs within the U.S. economy as long as spending for these programs continues at this level. The newly created jobs will be spread across all sectors of the U.S. economy, with 45% in a range of services, 16% in construction, and 12% in manufacturing. Critically, the study finds that roughly 70% of the jobs created will be for workers without four-year college degrees, a significantly higher share than for the overall U.S. labor market. As such, these measures expand job opportunities especially for working class people who have been hard hit for decades under the long-dominant neoliberal economic policy framework.

Download a copy of this publication here (PDF).

By David Schlissel and Anika Juhn - Institute for Energy Economics and Financial Analysis, September 12, 2023

Blue hydrogen hype has spread across the U.S., spurred by the billions of dollars of government funding and incentives included in the 2021 Bipartisan Infrastructure Law (BIL) and the 2022 Inflation Reduction Act (IRA). The fossil fuel industry promises that blue hydrogen, produced from methane or coal, can be manufactured cleanly and contribute to climate change mitigation measures. As we demonstrate in this report, the reality is that blue hydrogen is neither clean nor low-carbon. In addition, pursuing it will waste substantial time that is in short supply and money that could be more wisely spent on other, more effective investments for reducing greenhouse gas emissions in the immediate future.

In short, fossil fuel-based “blue” hydrogen is a bad idea.

Blue hydrogen’s environmental benefits rest largely on the assumptions baked into a Department of Energy (DOE) model named GREET (Greenhouse Gases, Regulated Emissions and Energy use in Transportation) that is the congressionally mandated evaluation tool for U.S. hydrogen projects. Due to a set of unrealistic and flawed assumptions, the model significantly understates the likely greenhouse gas intensity associated with blue hydrogen production.

Among the key shortcomings:

• It assumes an upstream methane emission rate of just 1%. This is far less than recent peer-reviewed scientific analyses have found and what has been demonstrated by numerous airplane and satellite surveys.
• It uses a 100-year Global Warming Potential (GWP). This significantly understates methane’s environmental impact in the short term, since its 20-year GWP is more than 80 times that of carbon dioxide (CO2).
• It does not include any estimate (either over 20 or 100 years) for the global warming impact of hydrogen, which works to extend the lifetime of methane and increase its atmospheric abundance. Hydrogen also has a 20-year GWP more than 30 times that of CO2.
• It does not include a full life cycle analysis (LCA) of all the emissions from the blue hydrogen production process. In particular, downstream emissions from the produced hydrogen and the generation of the electricity needed to compress, store and transport the hydrogen to the ultimate user(s) are excluded.
• It includes overly optimistic assumptions about the effectiveness of carbon capture processes.

Using more realistic numbers shows blue hydrogen to be a dirty alternative. For example, if we change just two variables—using methane’s 20-year GWP and a more realistic 2.5% methane emission rate—the carbon intensity of blue hydrogen calculated by GREET jumps to between 10.5 and 11.4 kilograms of CO2e/kgH2 (kilograms of carbon dioxide equivalents emitted per kilogram of hydrogen). This is between two and three times the 4.0 kg CO2e/kg hydrogen Clean Hydrogen Production Standard (CHPS) established by Congress and the DOE. Note that these already very high carbon intensity figures still reflect DOE’s overly optimistic assumption that hydrogen production facilities will capture at least 94.5% of the CO2 they produce. They also exclude the impact of downstream hydrogen emissions.

If more conservative assumptions are used, reflecting: 1) more realistic carbon capture rates; 2) downstream leakage of the hydrogen produced; and 3) downstream CO2e emissions from the production of the electricity needed to fully compress, store and transport the hydrogen to the site where it will be used, then blue hydrogen gets even dirtier, with a carbon intensity more than three times as much as the DOE’s clean hydrogen standard.

Given these results, IEEFA is extremely concerned that the current blue hydrogen hype is going to result in the funding of projects that exacerbate climate change and lock in our reliance on fossil fuels for decades. For this reason, we have undertaken a series of analyses into the emissions from blue hydrogen production based on current scientific knowledge of methane emissions and hydrogen leakage rates and the existing status of carbon capture and sequestration (CCS) technologies. This report focuses on the production of blue hydrogen from methane; a subsequent report will examine hydrogen from coal gasification.

Download a copy of this publication here (Link).

By Anthony Flaccavento, Alan Minsky, and Dave Alba - Progressive Democrats of AMerica and Rural Urban Bridge Institute, September 12, 2023

A Rural New Deal is urgently needed to build and rebuild local economies across rural America, reverse forty years of wealth and corporate concentration, restore degraded lands, reclaim land and ownership opportunities for those whose land was taken by force or deceit, and ensure that communities and the nation can and do meet the basic needs of its people. This document proposes ten pillars essential to a Rural New Deal, each with a modest amount of detail about specific policies in order to understand what implementation of the pillar might look like.

At the heart of a RND is the recognition that rural places are fundamentally different from urban and suburban areas, not only culturally and politically, but physically. They are “rural” because they are expansive and land-based. This does not mean that all efforts to rebuild rural economies and communities should revolve around farming or other land-based sectors. However, it does mean that land-based (also including rivers, lakes and oceans) enterprises must still play a central role in rural development, even as internet access, virtual work and the tech sector grow in importance.

While rural and urban places are fundamentally different, they are also deeply intertwined. Many farmers, fishers, foresters and other rural businesses have come to rely on urban markets and in some cases, capital to sustain them. On the other hand, towns and cities need healthy, functioning rural communities for their food, fiber, energy and clean water, indeed for their very survival. Yet for too long, we’ve neglected, dismissed and underinvested in the people that provide these essential goods along with critical ecological services. This has caused great harm to rural communities and it has undermined our collective health and resilience as a nation. Rebuilding and renewing supportive social and economic connections across rural and urban lines, empowering rural people and communities, moving away from extractive relationships of the past, is the course we must chart together.

Download a copy of this publication here (PDF).

By Sean Sweeney - Trade Unions for Energy Democracy, August 31, 2023

Following the onset of the COVID-19 pandemic in early 2020, calls for a GGND and a commitment to GPGs intensified. In July 2020, UN Secretary-General Antonio Guterres declared, “The global political and economic system is not delivering on critical global public goods: public health, climate action, sustainable development, peace…we need a New Global Deal to ensure that power, wealth and opportunities are shared more broadly and fairly at the international level.” 

Authored by TUED Coordinator Sean Sweeney, the paper argues that a GGND of the left must distinguish itself from green “recovery economics.” Many North-based progressives are comfortable talking about the need for “more public investment,” and the need for “ambitious climate action” but many continue to be vague or agnostic on questions of public ownership and control. 

The paper argues that an undiscerning approach to public investment weakens the case for a GGND. It shows how the current emphasis on “de-risking” private investment means that public money is used to make profitable what would not otherwise be profitable. Obama’s stimulus package of 2008, to the more recent Green Deal for Europe, and the Biden Administration’s Inflation Recovery Act that commits $369 billion of public spending to secure long-term revenue streams and profits for mostly private investors and developers. The more recent “Just Energy Transition Partnerships” and the emphasis on “blended finance” are an extension of this approach. 

Taking a deep dive into the roots of neoliberal climate policy, Beyond Recovery shows how a “recovery” narrative has helped both conceal and perpetuate the failures of the current investor-focused approach to energy transition and climate protection. For more than three decades, this approach has shown itself to be ineffective in terms of reducing economy-wide emissions. Sweeney describes the policy as a resilient failure, the extent of which is not always fully grasped. 

Energy: The Means of Production

The paper argues that a left GGND must view public investment as a means to extend public ownership, with energy systems and critical supply chains being a priority target. 

Public ownership of energy gives governments the power to pivot away from the highly commodified “energy for profit” regime. More than any single policy option, control over energy will ensure that governments are better positioned to advance an economy-wide energy transition in ways that can control and then reduce emissions while also addressing joblessness, inequality, and other social problems. It can set the stage for the kind of sweeping interventions in the political economy that are needed to address climate change, confront the political power of fossil fuel interests, and intercept the dynamics of “endless growth” capitalism. 

Download a copy of this publication here (PDF).

By Jason Wang, Will Noe - Pembina Institute, August 24, 2023

Alberta’s proven, economic, and available wind and solar resources position it to become Canada’s renewable energy capital. In fact, three-quarters of renewable energy projects built in Canada last year were in Alberta. At a time when the investments are trending towards renewable energy growth globally, accelerating the buildout of renewables in the province is a no-regrets economy-building decision. Renewable energy reduces electricity costs, creates jobs, and has been a growing source of investment in Alberta. Since 2019, projects have drawn nearly $5 billion in investments, creating close to 5,500 jobs.

But on August 3, 2023, the Government of Alberta announced a seven-month pause on approvals for renewable energy projects over 1 megawatt (MW) – including wind, solar, and geothermal, though excluding microgeneration.

Natural resources should be developed responsibly with care to mitigate environmental impact and address stakeholder concerns. However, there are several measures in place already for the responsible development and reclamation of renewable energy resources in Alberta. In addition, renewable projects are only developed with interested landowners. There are improvements that can be made to the measures in place, but they can be undertaken without hampering the industry and stakeholders involved in project development.

We reviewed the Alberta Electric System Operator’s (AESO) list of electricity generation projects in development in relation to their approval status from the Alberta Utility Commission (AUC) to determine how many projects are impacted by Alberta’s renewable energy development moratorium and what this means for investments, revenues, and jobs in the province.

Public data shows that 118 projects are currently in development and are either waiting for permitting approval or could submit an approval application within the next few months. These projects represent at least $33 billion of investment and more than 24,000 job-years.

Download a copy of this publication here (link).

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

By Julie Snorek and Julie Davenson, et. al. - Food Solutions, August 14, 2023

From community work to state and federal level advocacy a Just Transition “focuses on the values, agency, relations and processes that underlie both structures and systems” and “create the capacities that empower individuals and communities to take action on their own behalf.”¹ A Just Transition puts governance, power, and democracy at the center and acknowledges that sustainability transitions, especially in agriculture, will only be addressed by shifts in political-economic power.

Domains of a Just Transition include access to natural ecosystems, knowledge, networks, systems of exchange, gender and equity.² When analyzing work toward a Just Transition, the question must be asked: Whose knowledge is considered valid, and is therefore enabled and valued, through contemporary modes of knowledge production and mobilization? The social dynamics of marginalization and inequality pose a major barrier to the development of sustainable food systems in this regard. When all types of knowledge are valued, including community, indigenous, and practitioner, then community voices are lifted up to create solutions for their own needs and overturn inequities across the food system.

Thus, the starting point is to expand networks through participatory governance to identify and respond to community needs and flex the “democracy muscle.” In other words, true change towards climate resilience through agriculture is only going to come when community leadership and decision-making at all levels of governance are understood and centered – a task that will require a wholesale mindset shift.

Download a copy of this publication here (PDF).

By Clyde Anderson, et. al. - Sierra Club, August 7, 2023

(Statement from Railroad Workers United): This report is fantastic for several reason, not the least of which is its quality and completeness. We respectfully disagree on the strategy of privatization but they do call for 'Open Access' which we see as a half measure at best. Electrification is a shared interest as the only realistic path to zero emissions while creating lots of union jobs on both sides of the wire. Rail workers will be especially intested in Pages 32-33.

(From the Summary): Effective rail transportation is essential to avert the worst effects of human-caused climate change. Increasing rail and transit, and moving away from our current heavy emphasis on road and air travel, will bring many environmental, economic, and social benefits.

Rail transportation is inherently much more energy efficient than road transport, especially for freight. Reducing one of the basic factors of production – transportation – reduces the costs of virtually every sector of the economy, thereby increasing sustainability. Electrifying railroad operations will further increase these benefits. Therefore, improving passenger and freight rail transportation needs to be a national priority for the US. The purpose of this statement is to inform the public about how rail is a sustainable transportation solution and to provide a guide to action to improve the nation’s railroads.

Download a copy of this publication here (PDF).

By E. Mark Curtis, Layla O'Kane, and R. Jisung Park - National Bureau of Economic Research, August 2023

Using micro-data representing over 130 million online work profiles, we explore transitions into and out of jobs most likely to be affected by a transition away from carbon-intensive production technologies. Exploiting detailed textual data on job title, firm name, occupation, and industry to focus on workers employed in carbon-intensive (“dirty”) and non-carbon-intensive (“green”) jobs, we find that the rate of transition from dirty to green jobs is rising rapidly, increasing ten-fold over the period 2005-2021 including a significant uptick in EV-related jobs in recent years. Overall however, fewer than 1 percent of all workers who leave a dirty job appear to transition to a green job. We find that the persistence of employment within dirty industries varies enormously across local labor markets; in some states, over half of all transitions out of dirty jobs are into other dirty jobs. Older workers and those without a college education appear less likely to make transitions to green jobs, and more likely to transition to other dirty jobs, other jobs, or non-employment. When accounting for the fact that green jobs tend to have later start dates, it appears that green and dirty jobs have roughly comparable job durations.

Download a copy of this publication here (link).