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A Program for Economic Recovery and Clean Energy Transition in California

By Robert Pollin, Jeannette Wicks-Lim, Shouvik Chakraborty,Caitlin Kline, and Gregor Semieniuk - Department of Economics and Political Economy Research Institute (PERI); University of Massachusetts-Amherst, June 10, 2021

This study presents a robust climate stabilization project for California. It demonstrates that achieving the state’s official CO2 emissions reduction targets—a 50 percent emissions cut by 2030 and reaching zero emissions by 2045—is a realistic prospect. This climate stabilization project can also serve as a major engine of economic recovery and expanding economic opportunities throughout the state. This includes an increase of over 1 million jobs in the state through investment programs in energy efficiency, clean renewable energy, public infrastructure, land restoration and agriculture. The study also develops a detailed just transition program for workers and communities in California that are currently dependent on the state’s fossil fuel industries for their livelihoods. In particular, we focus here on condi­tions in Kern, Contra Costa, and Los Angeles counties.

The study is divided into nine sections:

  1. Pandemic, Economic Collapse, and Conditions for Recovery
  2. California’s Clean Energy Transition Project
  3. Clean Energy Investments and Job Creation
  4. Investment Programs for Manufacturing, Infrastructure, Land Restoration and Agri­culture
  5. Total Job Creation in California through Combined Investment Programs
  6. Contraction of California’s Fossil Fuel Industries and Just Transition for Fossil Fuel Workers
  7. County-level Job Creation, Job Displacement, and Just Transition
  8. Achieving a Zero Emissions California Economy by 2045
  9. Financing California’s Recovery and Sustainable Transition Programs

Nineteen labor unions throughout California have endorsed this study and its findings.

Read the text (PDF).

Teamsters take fight to Marathon as refinery dispute enters fifth month

By Staff - Union Advocate, May 25, 2021

Mornings are a congested, busy time at the main gate outside Marathon’s St. Paul Park refinery. Semi trucks line up on both sides of the gate, waiting to cross a picket line held by Teamsters who, since January, have been holding out for a contract that protects local jobs and the safety of communities surrounding the refinery.

Local authorities have ruled no more than three members of Local 120 may picket an entrance to the refinery at one time, but dozens of Teamsters show up to the main gate anyway. They take turns on the line, keep each other company and otherwise pass the time.

It’s a slow-moving, but essential part of Local 120’s campaign against Marathon. But it’s not for everyone.

Almost every morning since the work stoppage began, a handful of Teamsters have volunteered for what’s known as “ambulatory picketing.” They pick out a truck exiting the refinery, tail it wherever it goes and picket outside the facility as the truck unloads. When the truck finishes unloading, the picket comes down.

More often than not, those trucks end up at a Speedway.

Picketing outside the refinery annoys Marathon and its vendors, but ambulatory picketing gives refinery workers like Ryan Bierman, whose pickup truck has been on “well over a hundred” picketing runs, an opportunity to educate the public.

“I enjoy just getting out and talking to different people about what’s going on with our strike and what the company wants to do, cutting potentially up to 50 local jobs and putting pretty much the whole plant at risk,” Bierman said. “And with that plant being so tightly-knit into different communities – St. Paul Park, Newport, Cottage Grove – if there is a major fire, an explosion or a chemical release, all these other communities are going to be put at risk too.”

They Wanted to Keep Working; Exxon-Mobil Locked Them Out: Facing deunionization efforts and the existential threat of climate change, oil refiners in Beaumont, Texas, seek a fair contract

By Mindy Isser - In These Times, May 24, 2021

The lockout began May 1, known in most parts of the world as International Workers’ Day. In a matter of hours, the ExxonMobil Corporation escorted 650 oil refiners in Beaumont, Texas, off the job, replacing experienced members of United Steelworkers (USW) Local 13 – 243 with temporary workers in an effort to force a vote on Exxon’s latest contract proposal. USW maintains the proposal violates basic principles of seniority, and more than three weeks after the union members were marched out of their facility, they remain locked out.

“We would have rather kept everyone working until we reached an agreement,” Bryan Gross, a staff representative for USW, tells In These Times. ​“That was our goal.”

Because strikes and lockouts are often measures taken under more dire circumstances, either when bargaining has completely stalled or is being conducted in bad faith, USW proposed a one-year contract extension. But Exxon rejected the offer, holding out for huge changes to contractual language regarding seniority, safety and layoffs. ​“It’s a control issue,” Gross adds. ​“Exxon wants control.”

As the oil industry attempts to deskill (and ultimately deunionize) its labor force, refinery workers like those in Beaumont find themselves under siege. Not only is their industry buckling beneath the weight of a global health crisis, but climate change has come to threaten their very livelihoods. Many workers remain skeptical of existing plans for a just transition.

Phasing Out Fossil Fuels Is Possible. These State-Level Plans Show How

By C.J. Polychroniou - Truthout, March 15, 2021

When it comes to climate change, state governments across the United States have been way ahead of the federal government in providing leadership toward reducing carbon pollution and building a clean energy economy. For example, when Trump announced in 2017 his intention to withdraw the U.S. from the Paris Agreement, the governors of California, Washington and New York pledged to support the international agreement, and by 2019, more than 20 other states ended up joining this alliance to combat global warming.

Robert Pollin, distinguished professor of Economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst, has been a driving force behind several U.S. states’ efforts to curb carbon emissions and make a transition to a green economy. In this exclusive Truthout interview, Pollin talks about how states can take crucial, proactive steps to build a clean energy future.

C.J. Polychroniou: Bob, you are the lead author of commissioned studies, produced with some of your colleagues at the Political Economy Research Institute of the University of Massachusetts at Amherst, to fight climate change for scores of U.S. states, including Pennsylvania, Ohio, West Virginia, Maine, Colorado, Washington, New York and California. The purpose of those studies is to show the way for states to attain critical reductions in carbon emissions while also embarking on a path of economy recovery and a just transition toward an environmentally sustainable environment. In general terms, how is this to be done, and is there a common strategy that all states can follow?

Robert Pollin: The basic framework that we have developed is the same for all states. For all states, we develop a path through which the state can reduce its carbon dioxide (CO2) emissions by roughly half as of 2030 and to transform into a zero emissions economy by 2050. These are the emissions reduction targets set out by the Intergovernmental Panel on Climate Change (the IPCC) that are meant to apply to the entire global economy. The IPCC — which is a UN agency that serves as a clearinghouse for climate change research — has concluded that these CO2 emissions reduction targets have to be met in order for we, the human race, to have a reasonable chance to stabilize the global average temperature at no more than 1.5 degrees Celsius above the preindustrial level, [the level of] about the year 1800.

The IPCC has concluded that stabilizing the global average temperature at no more than 1.5 degrees Celsius above preindustrial levels provides the only realistic chance for avoiding the most severe destructive impacts of climate change in terms of heat extremes, heavy precipitation, droughts, floods, sea level rise, biodiversity losses, and the corresponding impacts on health, livelihoods, food security, water supply and human security. Given that these emissions reduction targets must be met on a global scale, it follows that they also must be met in every state of the United States, with no exceptions, just like they must be met in every other country or region of the world with no exceptions.

By far the most important source of CO2 emissions entering the atmosphere is fossil fuel consumption — i.e., burning oil, coal and natural gas to produce energy. As such, the program we develop in all of the U.S. states centers on the state’s economy phasing out its entire fossil fuel industry — i.e., anything to do with producing or consuming oil, coal or natural gas — at a rate that will enable the state to hit the two IPCC emissions reduction targets: the 50 percent reduction by 2030 and zero emissions within the state by 2050.

Of course, meeting these emissions reduction targets raises a massive question right away: How can you phase out fossil fuels and still enable people to heat, light and cool their homes and workplaces; for cars, buses, trains and planes to keep running; and for industrial machinery of all types to keep operating?

It turns out that, in its basics, the answer is simple and achievable, in all the states we have studied (and everywhere else for that matter): to build a whole new clean energy infrastructure that will supplant the existing fossil fuel dominant infrastructure in each state. So the next major feature of our approach is to develop investment programs to dramatically raise energy efficiency standards in buildings, transportation systems and industrial equipment, and equally dramatically expand the supply of clean renewable energy sources, i.e. primarily solar and wind energy, but also geothermal, small-scale hydro, as well as low-emissions bioenergy.

Phasing Out Fossil Fuels: A Just Transition in the Oil & Gas Drilling and Refining Sectors

Refinery Communities Speak Out on Just Transition Reports

By Ann Alexander - Natural Resources Defense Council, February 9, 2021

Governor Newsom’s executive order mandating all-electric passenger cars and trucks by 2035 got quite a bit of deserved nationwide buzz last fall. What got less notice was that, buried toward the end of the order, were several mandates for action on the supply side of our fossil fuel problem—that is, California’s oil extraction and refining industry. 

We noted at the time that these mandates were not, unlike the pretty well thought out electric vehicles mandate, given much attention in the order. We expressed concern that the Governor was basically throwing a bone to people concerned about the human and environmental damage being wrought on an ongoing basis by the state’s oil production industry.

Two of those mandates, however, stood out from the beginning as critically important—both having to do with the issue of just transition for workers and communities to new economic opportunities as California phases out its oil industry. The first mandate was a directive to two California agencies—the Office of Planning and Research (OPR) and the Labor and Workforce Development Agency—to develop and implement a “Just Transition Roadmap” for the state, consistent with recommendations developed pursuant to Assembly Bill 398 in 2017. The second is a directive to two other California agencies—the Environmental Protection Agency and the Natural Resources Agency—to “expedite regulatory processes to repurpose and transition . . . oil production facilities,” and produce an “action plan” reporting on their progress, in order “[t]o support the transition away from fossil fuels.” Both reports—the Roadmap and the action plan—are required to be completed by July of this year. 

Among the missing specifics is anything about how the public and key stakeholders are to be involved in the preparation of these reports; or any clear guidelines about the required scope and depth of the reports. But what we already know is that just transition is a critically important topic for the public as the oil industry continues its slide into eventual oblivion, and merits sustained and robust attention. Not only has oil extraction been in steady decline since the mid-1980s (plunging nearly 60 percent since 1985), but California’s oil refineries are now on the brink as well—two of them announced conversions to biofuel production over the summer, while refineries around the nation and the world are increasingly becoming unprofitable and shutting down

Just Transition and Extractive Industry Workers

By x344543 - IWW Environmental Union Caucus, January 26, 2021

In some ways it might be easier to establish dialog and find common ground with resource extraction workers (on issues such as climate change, just transition, and the Green New Deal) than we think. In other ways it may prove more difficult than we expect. That’s not as contradictory as it may sound, however:

First, let’s acknowledge that we’re primarily discussing decarbonization of the energy system and the economy, particularly fossil fuel capitalism, specifically coal, oil, and gas.

We’re discussing entire supply chains, from exploration and extraction to transportation and refining, to distribution, power generation to marketing and sales.

Extraction includes all forms of mining.

Transportation includes rail, road, ship, aircraft, and pipelines. It also includes storage, distribution hubs, and control centers.

Refining is a highly specialized and labor as well as capital intensive process.

How it might be easier than we think:

Most of the jobs involved in the aforementioned supply chains are not directly related to fossil fuels themselves:

For example:

  • Exploration (ie search for new “deposits” could instead be repurposed for siting renewable energy sites;
  • Offshore oil rig workers could be retrained as offshore wind power technicians (and many of the ancillary jobs, such as transportation of workers to and from sites, dispatching workers (or power), clerical work, etc. is directly transferable);
  • Transportation of goods and commodities can be utilized to transport alternative goods and commodities (eg grain rather than coal);

Where jobs may not be directly transferable, they can be retained for the repurposing or decommissioning of infrastructure or the restoration of damaged ecosystems. Such efforts often require years or decades, thus providing enough job-years for mature workers (often those with the highest seniority, wages, and benefits anyway) to last until retirement, or at least, allow sufficient time for just transition;

Failing that, many of these jobs can be made much “greener” without decommissioning, if a wholistic approach as opposed to an all-or-nothing approach is utilized, and transition efforts focus on the “low hanging fruit” (such as retiring older, more polluting facilities first, etc.);

Teamsters at Marathon’s St. Paul Park refinery strike over safety

By Staff - Union Advocate, January 21, 2021

Operations and maintenance workers at Marathon Petroleum’s refinery in St. Paul Park went on strike today. Members of Teamsters Local 120 say they are taking a stand not just for good jobs, but also for the safety of their community.

At issue in the dispute is management’s ability to replace union members with workers from lowest-bidder subcontractors, including firms from outside Minnesota.

“We want a contract that protects jobs where the money goes back into our communities, jobs for people who have an interest in the safety of our community,” Local 120 Business Agent Scott Kroona said. “If somebody comes in from Texas or Indiana, which is what the company wants, their money goes back to Texas or Indiana. And they don’t care about St. Paul Park.”

Local 120 represents nearly 200 workers at the Marathon refinery.

Picket lines went up at each of the facility’s gates at 5 p.m., and they will stay up around the clock indefinitely, Kroona said.

With Teamsters outside, it raises the question of who’s doing the work inside the refinery. Kroona said he expected the company to bring in replacement workers.

“I have to believe they are not as skilled or well-trained as the workers we have in there,” he said. “And when you’ve got petroleum products under high temperatures and high pressure, every job is dangerous. I don’t care how minor a job you’d call it.”

As proof, the union pointed to an April 2018 explosion at the Husky refinery in Superior, Wis., which resulted in worker injuries and residential evacuations in the area. Contractors working in the refinery at the time later sued the company.

Let's Own Chevron: Can the Just Transition of the Fossil Fuel Industry Start Here?

By Ted Franklin - System Change not Climate Change, December 2020

The Bay Area is home to one of the largest fossil fuel companies in the world. In October 2020 Chevron overtook ExxonMobil to become the largest U.S. oil company as measured by market cap. On October 7, the total value of shareholders’ stock in Chevron reached $142 billion, surpassing Exxon’s $141.6 billion.

Headquartered in Dublin and operating Northern California’s largest refinery in Richmond, Chevron has already found itself in the crosshairs of Bay Area activists for its routine pollution of working-class neighborhoods and its contributions to climate change. The Richmond Progressive Alliance’s radical struggle against Chevron’s domination of Richmond’s city government has been a central story in Bay Area left environmentalism in recent decades..

Much bigger contests over the power of Chevron and its ilk lie directly ahead. Increasingly, it has become clear that a direct government takeover of our fossil fuel industries is a necessary step for at least three reasons:

  • 1. Reductions in oil, coal, and gas production must begin immediately to avoid catastrophic degradation of the planet. Chevron and every other fossil fuel company must begin the process of downsizing at a rapid pace. As long as the fossil fuel companies are being run to maximize profits, any downsizing will be accidental and haphazard. Management which puts people and planet first must take over to ensure that the necessary reductions take place.
  • 2. Public ownership is the only way to break the back of the fossil fuel industries’ death grip over climate policy. The fossil fuel capitalists will not go quietly away. They have enormous sunk costs in their existing infrastructure. They intend to exert enormous political power to resist any reduction in their profits and any attempt to make them “keep it in the ground.”
  • 3. A just transition for workers and communities requires social control of the rapidly evolving energy commons. Even if the carbon tax championed by Joe Biden’s Treasury pick, Janet Yellen,1 could achieve sufficient reductions in carbon emissions to avert climate disaster, it would do nothing to ensure that reductions in carbon emissions are achieved without misery to workers and communities.

What is to be done?

Read the text (PDF).

Open Letter to the Contra Costa County Board of Supervisors on Just Transition

By Andreas Soto and Ann Alexander - Communities of a Better Environment and NRDC, November 20, 2020

Candace Anderson, Diane Burgis, John Gioia,
Karen Mitchoff, and Federal D. Glover
Contra Costa County Board of Supervisors
651 Pine Street, Room 107
Martinez, CA 94553

Dear Chair Anderson, Vice-Chair Burgis, and Supervisors Gioia, Mitchoff, and Glover, The undersigned organizations applaud your recent Declaration of a Climate Emergency in Contra Costa County, which underlines the need to "plan for a ' Just Transition' away from a fossil-fuel dependent economy." In furtherance of this goal, we seek your immediate action to ensure just transitions for workers and communities threatened with sudden abandonment by refineries located in the County. We believe climate protection must go hand in hand with environmental and economic justice. All of this is now at risk in the Contra Costa County oil belt.

As you know, Marathon abruptly announced in August the immediate permanent end to crude processing at its Martinez refinery. Phillips 66 followed suit with notice of the impending partial closure of its San Francisco Refinery Complex facilities in Rodeo, Franklin Canyon, and Arroyo Grande. Both companies proposed switching to significantly downsized production of non-petroleum fuels, which will involve fallowing of large portions of the refineries. Neither announcement identified any explicit commitment to full cleanups of the contaminated industrial sites. Of even more immediate concern, neither company committed to support the wages, health care, or pensions of all whose jobs these facility closures threaten.

These refinery downsizings—which may well be a harbinger of additional closures in the future—will jeopardize not just the livelihoods of the refinery employees, but those of thousands of families in the surrounding communities whose jobs are indirectly dependent upon the existence of the refineries. Refinery downsizing and shutdown also threaten a significant portion of the tax base upon which community government and essential services depend. Ultimately at risk are future prospects for environmentally healthy and economically sustainable development in communities hosting the decommissioned plant sites.

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