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A Program for Economic Recovery and Clean Energy Transition in Maine

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty, and Gregor Semieniuk - Political Economic Research Institute, August 27, 2020

The COVID-19 pandemic has generated severe public health and economic impacts in Maine, as with most everywhere else in the United States. This study proposes a recovery program for Maine that is capable of exerting an effective counterforce against the state’s economic collapse in the short run while also building a durable foundation for an economically viable and ecologically sustainable longer-term recovery. Even under current pandemic conditions, we cannot forget that we have truly limited time to take decisive action around climate change. As we show, a robust climate stabilization project for Maine will also serve as a major engine of economic recovery and expanding opportunities throughout the state.

The study includes three sections:

  • 1. Economic Stimulus through Restoring Public Health;
  • 2. Clean Energy Investments, Public Infrastructure Investments, and Jobs; and
  • 3. Financing a Fair and Sustainable Recovery Program.

The End of Oil Is Near: the pandemic may send the petroleum industry to the grave

By Antonia Juhasz - Sierra, August 24, 2020

This past spring, coastlines around the globe took on the feel of an enemy invasion as hundreds of massive oil tankers overwhelmed seaports from South Africa to Singapore. Locals and industry analysts alike used the word armada—typically applied to fleets of warships—to describe scenes such as when a group of tankers left Saudi Arabia en masse and another descended on China. One distressed news article proclaimed that a “floating hoard” of oil sat in tankers anchored across the North Sea, “everywhere from the UK to France and the Netherlands.” In April, the US Coast Guard shared an alarming video that showed dozens of tankers spread out for miles along California’s coast.

On May 12, Greenpeace activists sailed into San Francisco Bay to issue a challenge to the public. In front of the giant Amazon Falcon oil tanker—which had been docked in the bay for weeks, loaded up with Chevron oil—they unfurled a banner reading, “Oil Is Over! The Future Is Up to You.”

The oil industry has turned the oceans into aquatic parking lots—floating storage facilities holding, at their highest levels in early May, some 390 million barrels of crude oil and refined products like gasoline. Between March and May, the amount of oil “stored” at sea nearly tripled, and it has yet to abate in many parts of the world.

This tanker invasion is only one piece of a dangerous buildup in oil supply that is the result of an unprecedented global glut. The coronavirus pandemic has gutted demand, resulting in the current surplus, but it merely exacerbated a problem that’s been plaguing the oil industry for years: the incessant overproduction of a product that the world is desperately trying to wean itself from, with growing success.

Today, the global oil industry is in a tailspin. Demand has cratered, prices have collapsed, and profits are shrinking. The oil majors (giant global corporations including BP, Chevron, and Shell) are taking billions of dollars in losses while cutting tens of thousands of jobs. Smaller companies are declaring bankruptcy, and investors are looking elsewhere for returns. Significant changes to when, where, and how much oil will be produced, and by whom, are already underway. It is clear that the oil industry will not recover from COVID-19 and return to its former self. What form it ultimately takes, or whether it will even survive, is now very much an open question.

Under President Donald Trump, the United States has joined other petroleum superpowers in efforts to maintain oil’s dominance. While government bailout programs and subsidies could provide the lifeline the industry needs to stay afloat, such policies will likely throw good money after bad. As Sarah Bloom Raskin, a former Federal Reserve governor and former deputy secretary of the Treasury, has written, “Even in the short term, fossil fuels are a terrible investment. . . . It also forestalls the inevitable decline of an industry that can no longer sustain itself.”

In contrast to an agenda that doubles down on dirty fuels, a wealth of green recovery programs aim to keep fossil fuels in the ground as part of a just transition to a sustainable and equitable economy. If these policies prevail, the industry will rapidly shrink to a fraction of its former stature. Thus, as at no other time since the industry’s inception, the actions taken now by the public and by policymakers will determine oil’s fate.

The Greenpeace activists are right. Whether the pandemic marks the end of oil “is up to you.”

Bay Area activists respond to Phillips 66's renewable diesel announcement

By Janet Pyegeorge, Shoshana Wechsler, Matt Krogh - Stand.Earth, August 20, 2020

Protect the Bay coalition calls the move ‘another example of what will likely happen in an unmanaged transition off fossil fuels’

RODEO, CALIFORNIA — Bay Area activists are responding to Phillips 66’s announcement made last Thursday, August 13, that the company would close its Santa Maria refining facility, its carbon plant in Rodeo, and convert its 122,000 bpd Rodeo petroleum refinery to a 42,000 bpd renewable diesel facility by 2024, saying this abrupt revelation — which joins the recent announcement of the idling of the Marathon Martinez refinery — is another example of what will likely happen in an unmanaged transition off of fossil fuels. Phillips 66 made the announcement without advanced warning to Contra Costa County decision makers and without community involvement.

Members of the Protect the Bay coalition, which was formed in 2019 to prevent the expansion of the Phillips 66 refinery and marine terminal in Rodeo, expressed the following concerns and questions in response to Phillips 66’s announcement:

Shoshana Wechsler, Sunflower Alliance: "We congratulate Phillips 66 on its long overdue admission that refining petroleum is toxic and harmful. But becoming the world’s largest supplier of biodiesel by merely recycling used cooking oil doesn’t quite compute. That’s a whole lot of freedom fries. Let’s face it — refining and burning 'renewable' transportation fuels is only a first step towards genuine sustainability.”

Wilder Zeiser, Stand.earth: “On the face of it, reducing Phillips 66’s refining capacity could be a positive step, in alignment with CBE’s recent report, “Decommissioning California Refineries.” But to understand the details — local pollution shifts, where the feedstock will come from, how many millions of acres could be needed for soy and palm trees — there must be a full scale environmental review combined with a 180 degree shift away from their planned tar sands expansion.”

Nancy Rieser, Crockett Rodeo United to Defend the Environment (CRUDE): "We need to be mindful of 'greenwashing' during these times when refineries look for ways to prolong their life cycles while the world moves toward solar energy and electrified transportation. This project, in particular, bears closer scrutiny. The first press release about this project stated that used cooking oil would be the primary feedstock and was silent about the need to turn millions of acres into soybean production. It also suggested that less harmful emissions will be coming out of the stacks."

Gary Hughes, Biofuelwatch: “The false promises of biofuels are being leveraged by Phillips 66 to hide their ambition to stay locked in on fossil fuel energy far into the future. Our organization stands with the residents and working people throughout the North Bay refinery corridor that are organizing for a just transition and demanding an end to the treatment of their communities as sacrifice zones.”

Janet Pygeorge, President, Rodeo Citizens Association: "Our vision for Rodeo does not include Phillips 66. How dare they use our community name in their project of fake promises. Read between the lines: What kind of feedstocks? There is no mention of scrubbers to prevent toxic emissions into the atmosphere. In Rodeo, our families live every day knowing the toxic air we breathe destroys our immune system and is a silent killer 365 days a year, 24/7. A few of us left to continue our fight to save lives. BAAQMD, listen to our plea to live. You must protect the people.”

Culver City Takes Historic Steps to End Neighborhood Oil Drilling

By staff - Sierra Club, August 14, 2020

CULVER CITY, CA—Last night, Culver City councilmembers took the first necessary steps to phase out oil extraction in the city’s 78-acre portion of the Inglewood Oil Field. After a presentation on the amortization study commissioned by the Oil Subcommittee, and virtual public testimony, the council unanimously directed staff to develop a framework and timeline for the phase out of active wells. Diverse stakeholders gave testimony in favor of the motion from labor unions including United Steelworkers Local 675, California Nurses Association, and Jobs to Move America, environmental organizations from Sierra Club, NRDC, Food & Water Action, Center for Biological Diversity and renewable energy advocates including GRID Alternatives and the Clean Power Alliance in addition to many local residents and medical professionals.

Urban oil extraction and production have long exposed Los Angeles residents to toxic emissions and dangerous chemicals in their own neighborhoods. Oil production sites use and emit known carcinogens and endocrine disruptors, like benzene and formaldehyde, fine and ultra-fine particulate matter, and hydrogen sulfide. All of these chemicals have proven records of toxicity and are known to cause health impacts ranging from nosebleeds to chronic headaches, increased risks of asthma and other respiratory illnesses, and increased risk of cancer.

“Every day nurses across California treat children with asthma and we see firsthand the connection between environmental and public health,” said Tveen Kirkpatrick, R.N. wth California Nurses Association/ National Nurses United. “We are proud to stand with the communities closest to toxic operations in Culver City and call for a shutdown of the Inglewood Oil Field. California should look beyond fossils to a future where workers and communities don’t pay the price for the oil industry’s pollution with their bodies.”

Over one million people live within five miles of the massive Inglewood Oil Field, the largest urban oilfield in the nation, sprawled across Culver City and the historically African American neighborhood of Baldwin Hills. For decades, residents have called on local and state elected officials to strengthen health and safety protections from industrial oil operations near their homes, schools and parks. With Culver City now advancing plans to phase out existing oil wells, local environmental justice, labor and health advocates are urging councilmembers to seize this opportunity to model a Just Transition. They have sent multiple letters to Heather Baker, Assistant City Attorney, calling for the city to hold oil operators responsible for cleanup costs, and ensure that a properly trained and local unionized workforce is paid a living wage for the remediation of wells. 

The Green New Deal Just Won a Major Union Endorsement. What's Stopping the AFL-CIO?

By Mindy Isser - In These Times, August 12, 2020

The American Federation of Teachers (AFT), the second largest teachers’ union in the country, passed a resolution in support of the Green New Deal at its biennial convention at the end of July. The Green New Deal, federal legislation introduced in early 2019, would create a living-wage job for anyone who wants one and implement 100% clean and renewable energy by 2030. The endorsement is huge news for both Green New Deal advocates and the AFL-CIO, the largest federation of unions in the United States. The AFT’s endorsement could be a sign of environmental activists’ growing power, and it sends a message to the AFL-CIO that it, too, has an opportunity to get on board with the Green New Deal. But working people’s conditions are changing rapidly, and with nearly half of all workers in the country without a job, the leaders of the AFL-CIO and its member unions may choose to knuckle down on what they perceive to be bread-and-butter issues, instead of fighting more broadly and boldly beyond immediate workplace concerns.

The AFT endorsement follows that of the Association of Flight Attendants-CWA (AFA-CWA), Service Employees International Union (SEIU), National Nurses United (NNU) and the Maine AFL-CIO — all of which declared their support for the Green New Deal in 2019. And while local unions have passed resolutions in support of the Green New Deal, the AFT, NNU and AFA-CWA are the only national unions in the AFL-CIO to endorse the Green New Deal. (SEIU is affiliated with another labor federation, Change to Win.)

Yet the AFL-CIO has remained resistant. When Sen. Ed Markey (D‑Mass.) and Rep. Alexandria Ocasio-Cortez (D‑N.Y.) introduced the Green New Deal legislation in February 2019, AFL-CIO President Richard Trumka told reporters, ​“We need to address the environment. We need to do it quickly.” But he also noted that, ​“We need to do it in a way that doesn’t put these communities behind, and leave segments of the economy behind. So we’ll be working to make sure that we do two things: That by fixing one thing we don’t create a problem somewhere else.”

Where Trumka has been skeptical and resistant, some union leaders in the federation have been more forceful in their opposition; many unions with members who work in extractive industries, including the building trades, slammed the legislation. Cecil Roberts, president of the United Mine Workers of America (UMWA), and Lonnie Stephenson, president of the International Brotherhood of Electrical Workers, wrote a letter to both Markey and Ocasio-Cortez on behalf of the AFL-CIO Energy Committee that said, ​“We will not accept proposals that could cause immediate harm to millions of our members and their families. We will not stand by and allow threats to our members’ jobs and their families’ standard of living go unanswered.”

Letter from USW Local 675 on Orphan Wells

By Philip Baker and David Campbell - United Steelworkers Local 675, August 5, 2020

We write to support an important economic recovery opportunity that will create jobs, provide tremendous health and environmental benefits to frontline communities, and advance a just transition away from fossil fuels: the accelerated remediation of oil and gas wells in California.

California law already requires that oil and gas operators fully fund the cost of oil and gas well remediation in California.

The job creation from this work is substantial. A recent national study estimated a total of 15.9 total jobs (direct, indirect, and induced) per million dollars spent.

Remediation of Oil and Gas Wells Must be Accelerated in Tandem with a Halt on Permitting New Wells and a Managed Phaseout of Oil and Gas Extraction.

Read the text (PDF).

There May Be No Choice but to Nationalize Oil and Gas—and Renewables, Too

By Sean Sweeney - New Labor Forum, August 2020

Once on the margin of the margins, calls for the nationalization of U.S. fossil fuel interests arebgrowing. Before the Covid-19 pandemic, the basic argument was this: nationalization could expedite the phasing out fossil fuels in order to reach climate targets while ensuring a “just transition” for workers in coal, oil, and gas. Nationalization would also remove the toxic political influence of “Big Oil” and other large fossil fuel corporations. The legal architecture for nationalization exists—principally via “eminent domain”—and should be used.

But the case for nationalization has gotten stronger in recent months. The share values of large fossil fuel companies have tanked, so this is a good time for the federal government to buy. In April 2020, one source estimated that a 100 percent government buyout of the entire sector would cost $700 billion, and a 51 percent stake in each of the major companies would, of course, be considerably less. However, in May 2020 stock prices rose by a third or so based on expectations of a fairly rapid restoration of demand.

But fears of a fresh wave of Covid-19 outbreaks sent shares tumbling downward in June. Nationalizing oil and gas would be a radical step, but this alone would not be enough to deliver a comprehensive energy transition that can meet climate goals as well as the social objectives of the Green New Deal. Such a massive task will require full public ownership of refineries, investor-owned utilities (IOUs), and nuclear and renewable energy interests.

Progressives may feel it’s unnecessary to go that far; why not focus on the “bad guys” in fossil fuels and leave the “good guys” in wind, solar, and “clean tech” alone? But this is not an option. The neoliberal “energy for profit” model is facing a full-spectrum breakdown, and the energy revolution that’s required to reach climate targets poses a series of formidable economic and technical challenges that will require careful energy planning and be anchored in a “public goods” approach. If we want a low carbon energy system, full public ownership is absolutely essential.

ReImagine Appalachia: a (Green) New Deal That Works for Us

By staff - ReImagine Appalachia, August 2020

Appalachians have a long history of hard work, resilience, and coming together to face enormous challenges. Our region is a place of ingenuity. A place where families and neighbors look out for one another.

Now is the time to put our ingenuity to use and imagine a 21st century economy that works for the people in the Ohio River Valley of Appalachia. An economy that is good for working people, communities, our health and the health of our neighbors. One that is grounded in the land and centered on creating wealth locally. One that relies on working people, already skilled in service, industry, trades and farming. One that offers hope to the next generation’s workers—regardless of the color of their skin, ethnicity or gender. And one that does our region’s part to meet the nation’s climate challenge, just as we met the call to provide coal energy to fuel a growing nation a century ago.

Right now, our nation is in crisis. We face the COVID epidemic, a deep economic downturn, extreme inequality, racism, police brutality, and the consequences of a changing climate such as severe storms and flooding. These crises demand from us real, lasting and structural change. It is not a matter of if, but when. When the nation rises to the occasion, people in Appalachia need to be at the table and helping to lead the charge. Together, we can build a vision for the Appalachia we want to live in.

Read the text (PDF).

Draft Colorado Just Transition Plan

By Dennis Dougherty, Ray Beck, et, al. - Colorado Just Transition Advisory Committee, August 1, 2020

Coal has played an important role in Colorado’s economy since before statehood, from heating homes and powering industry to fueling railroads and generating electricity. Today, coal is mostly used for electricity in Colorado.

Increasing price competition from natural gas and renewables, along with environmental concerns, has led to a significant decline in the use of coal over the last dozen years. In 2019, Colorado set aggressive goals for reducing greenhouse gas emissions that will require major changes in how we fuel our cars, heat our homes, and generate electricity. As a result of these combined factors, the era of coal appears to be coming to an end in Colorado.

The decline of coal has serious implications for the Coloradans who work in the coal industry (mostly in mines and power plants) and the communities where they do this work. Approximately 2,000 coal workers stand to lose their mostly high-paying jobs by 2030, and many communities will lose significant percentages of their local job base and of property tax revenues when mines and power plants close.

Colorado has the opportunity to lead the nation in achieving more constructive outcomes. In 2019, the Colorado General Assembly passed and the Governor signed House Bill 19-1314, which makes a “moral commitment” to a “just transition” for these workers and communities. It established the nation’s first state Office of Just Transition (OJT), and it created a Just Transition Advisory Committee (JTAC) to develop a draft plan for how the state will fulfill this commitment.

Read the text (PDF).

AFT Resolution in Support of the Green New Deal

Resolution passed by the American Federation of Teachers, July 31, 2020

WHEREAS, the United Nations’ Intergovernmental Panel on Climate Change has stated that current concentrations and ongoing emissions of greenhouse gases will continue to cause increases in global temperatures, warming of the world’s oceans and increases in the average sea level rise for many centuries; that irreversible changes in major ecosystems and the planetary climate system may already have been reached or passed; that ecosystems as diverse as the Amazon rainforest and other natural wildlife and forest reserves across the world have or are approaching thresholds of dramatic change; and that these events will transcend generations; and

WHEREAS, the burning of fossil fuels such as coal, oil and natural gas for the purposes of electricity generation and transportation is the primary source of climate-changing greenhouse gas emissions; and

WHEREAS, the World Health Organization reports that rising temperatures and rising seas, as well as diminished air and water quality, lead to significant health risks such as heat-related risks, cardiovascular and respiratory illnesses, vector-borne infection, illness related to contaminated water, loss of shelter and compromised food supplies; and

WHEREAS, there is growing opposition to the negative health and environmental effects of fossil fuel extraction and consumption; coal-specific fossil fuel-dependent regions across the United States have been economically devastated by the shift from coal consumption; and the remaining coal jobs across the country are expected to steadily decline over the coming years; and

WHEREAS, working families, frontline communities, communities of color, low-income communities and other vulnerable populations suffer disproportionately from environmental degradation and climate change events such as extreme hurricanes, wildfire, drought and flooding, extreme heat and the spread of infectious disease; and

WHEREAS, studies show that 13 million Americans could be forced out of their communities and jobs due to climate change by the next century; and,

WHEREAS, hundreds of institutional investors in the United States and abroad have taken steps to divest their dollars from fossil fuel companies; and energy companies may actually pose a long-term risk to pension fund portfolios because there is a risk that governments could regulate oil and coal companies so extensively that their equities are devalued; and

WHEREAS, the International Labor Organization has reported that large economies moving toward greener and more environmentally sustainable transitions could generate up to 60 million new jobs worldwide over the next two decades; and

WHEREAS, the American Society of Civil Engineers has reported that if the American infrastructure investment gap is not addressed throughout the nation’s infrastructure sectors by 2025, the economy is expected to lose almost $4 trillion in gross domestic product, and that these gaps in infrastructure funding combined with climate change pose a potentially serious impact on worldwide water resources, energy production and use, agriculture, forestry, coastal development and resources, flood control and public infrastructure; and

WHEREAS, working collaboratively with industry partners, career and technical education teachers can prepare students for a green economy by developing CTE programs with sustainability and environmental content, and by providing opportunities for students to gain hands-on, project-based experience directly tied to emerging professions and family-sustaining jobs; and

WHEREAS, the Department of Defense is the largest single emitter of greenhouse gases on the planet, and the AFT has repeatedly endorsed the principle of reducing military spending (except for veterans’ benefits) and using the money saved to create millions of jobs in a peaceful green economy, including transitioning many weapons production jobs to peacetime production jobs; and

WHEREAS, private investment for transitioning from fossil fuels has been completely insufficient, and multinational corporate interests strongly oppose public efforts for a just transition, especially public financing and labor protections; and

WHEREAS, working collaboratively with parents, communities and public institutions across the United States, teachers and professors can prepare diverse students to be informed leaders for a just green society by developing curricula and programming that create inclusive democratic spaces for learning and collaboration promoting sustainability, resilience and climate justice; and

WHEREAS, the American Federation of Teachers represents workers from all sectors of the economy and across all demographics who have a significant stake in the development of a green economy that can both slow the crisis of climate change and build an economy and strengthened public sector based on the foundation of a strong labor movement with family-supporting wages, benefits and shared prosperity for all; and

WHEREAS, the labor movement must be at the center of shaping climate policies to include a just transition for workers and communities, including tax-base support for impacted communities, wage replacement and parity for affected workers, retirement protections, partnerships between industry and communities on emerging green industries and jobs, continued access to healthcare, zero-cost education and training, a job guarantee, expanded collective bargaining rights, and prioritizing the needs of historically marginalized communities that have disproportionately suffered from environmental injustice, racism and systemic exclusion from well-paying jobs; and

WHEREAS, emerging studies have begun identifying potential sources of job growth in regions that are experiencing a decline in fossil fuel demand, which can be found through sustainable regional solutions in partnership with economists and industry experts, projected over long periods across generations of workers:

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