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(TUED Bulletin #68) The Invisible Crisis of Wind and Solar Energy–and the Urgent Need for a Public Approach

By Sean Sweeney and John Treat - Trade Unions for Energy Democracy, December 5, 2017

Why, in a world awash with “idle capital” and in desperate need for a just energy transition to renewables-based energy systems, are global investment levels in renewable energy so obviously out of sync with climate targets?

According to a 2016 report released by the International Energy Agency, “Market-based, unsubsidised low-carbon investments have been negligable.” Without public money, the levels of modern renewable energy would be abysmally low. The tenth TUED Working Paper, Preparing a Public Pathway: Confronting the Investment Crisis in Renewable Energy describes how public money is papering over the fundamental failures of so-called “competitive” electricity markets. Public financing is increasingly being used to provide “certainties” for private companies and investors in the form of “power purchase agreements” or PPAs. PPAs make renewable energy expensive and vulnerable to the kind of political backlash we’ve seen across Europe and elsewhere. As a result, the entire energy sector becomes starved of investment and saturated in “political risk.”

“Preparing a Public Pathway” is available for download now (PDF)

From the Working Paper:

The dominant policy institutions have concluded that the market model that emerged from privatization and liberalization has proven to be an impediment to the kind of energy transition that is required. These same institutions instruct governments to increase their role as enablers of investment, by absorbing risk, providing support, and guaranteeing revenues and returns through P3s and PPAs.

The introduction of “capacity payments” speaks to the extent to which the “competitive market” is not only no longer competitive, it can no longer be usefully described as a market. Rather, we see governments, trying to ensure the energy-demand needs of the entire system are met, paying for unused electrical power—from both incumbent utilities and renewables companies—in order to ensure that all providers walk away with “returns on investment” that they (and the investors behind them) consider “satisfactory.”

One of the main goals of Preparing a Public Pathway is to provoke discussion among unions and their allies about the need to further cultivate a pro-public trade union counter-narrative that is clear, bold and persuasive, and—given the formidable nature of the challenge—offers some hope of decisively interceding in the global energy system’s worrying trajectories. Such a narrative must be able to assert, confidently and from an informed perspective, that only a planned, coordinated, publicly driven approach to investment has a credible chance of delivering the dramatically scaled up deployment of renewable power that we urgently need.

Why Energy and Transport Unions Are Joining TUED

By staff - Trade Unions Energy Democracy, July 28, 2017

In recent months a number of key unions representing workers in energy and transportation have joined TUED.

At its 5th Congress on May 22nd in Barcelona, the European Transport Workers Federation (ETF) Executive Committee voted to join TUED. According to ETF’s General Secretary, Eduardo Chagas,

“TUED takes the same approach to energy as did the International Transport Workers Federation (ITF) at its World Congress in 2010.  I was on the climate change committee that helped develop the ‘Reduce, Shift, Improve’ approach to fighting transport-related emissions and pollution. But without controlling the energy sector, it will be impossible to make transport truly low-carbon, healthy, and sustainable. ETF’s joining TUED affirms the ITF’s ‘economy wide approach’ to climate-related concerns.”

The ETF represents more than 3.5 million transport workers from more than 230 transport unions and 41 European countries, in the following sectors: railways, road transport and logistics, maritime transport, inland waterways, civil aviation, ports & docks, tourism and fisheries.

In the US energy sector, Local 11 of the International Brotherhood of Electrical Workers (IBEW) joined TUED in late May 2017.  The Los Angeles based local represents 12,000 workers in the Electrical Construction Industry.

Local 11 sees itself as part of a broader movement  for “social justice, safe jobsites, training, green jobs and opportunity for all.” The IBEW represents more than 700,000 workers, and seeks to organize all workers in the entire electrical industry in the United States and Canada, including all those in public utilities and electrical manufacturing, into local unions. Local 11’s Business Manager Marvin Kropke said the local union’s decision to join TUED came after the 2-day leadership retreat organized by TUED at Local 3 IBEW’s Education and Cultural Center in Long Island. “Local 11 is progressive on energy issues, and the local has been pushing solar by way of Community Choice Aggregation (CCA) in the Los Angeles area,” said Kropke. We are doing what we can, but we wanted to connect with others in progressive labor in the US and internationally.”

From Norway, the 37,000 member Electricians and IT workers union EL og IT Forbundet  also joined TUED and sent two national officers to TUED’s first Europe-wide meeting in Geneva in June (report to follow).

The union represents electricians, workers in telecommunications, electrical engineering, hydroelectric power and IT.  According to the union’s president, Jan Olav Andersen:

“Norway’s power system is mainly generated by large hydroelectric dams. Norway both exports and imports power, and there is increasing interdependence between European countries in regards to power exchange. Norway’s export capacity of green hydro-electric power is increasing and can be important in the transition to a less fossil-based energy dependence in Europe. But we follow closely the export of Norwegian hydroelectric power and the increasing centralization following the Commission’s energy packages. The latter can challenge the national sovereignty over the hydro-electric power. This sovereignty has played a crucial role in Norway’s use of national resources in building a green industry for over a century. Another important issue for our union is the Arctic exploration for oil, which can undermine the work for a greener world. We joined TUED in order to be better connected to the Europe-wide and international debates on the future of energy and a just transition to clean energy.”

Less is More

By staff - Clean Energy Canada - May 2, 2018

From the introduction:A win for our economy, consumers, and the climate? It may sound like an elusive unicorn, but energy efficiency checks all of the above. While underreported, measures to help homes, small businesses, and industry save on energy are a win-win for Canada—good for the climate and Canadian competitiveness. The federal government’s Pan-Canadian Framework on Clean Growth and Climate Change has introduced a number of such measures as a way to cut carbon pollution and help Canada meet its Paris Agreement targets. These include improved building codes and energy labelling for buildings, so people can better understand the energy performance of their homes and businesses. But what does a more efficient future mean for Canadians? Clean Energy Canada and Efficiency Canada hired Dunsky Energy Consulting to model the net economic impacts of energy efficiency measures in the pan-Canadian framework. They also modelled what the impacts would be if we went a step further, implementing the most ambitious efficiency goals found in jurisdictions across North America.

Read the report (PDF).

Third Memorandum or Grexit: What are the implications for the Future of Greece’s Energy System?

By Sean Sweeney - Trade Unions for Energy Democracy, July 18, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Presentation, July 18, 2015, Democracy Rising conference, Athens, Greece

Third-Memorandum-or-Grexit-word document (full presentation)

It is understandable that this conference, Democracy Rising, should be deeply engaged in the intense political debates going on in Athens and all over the world about the decision by the Syriza government to sign the Third Memorandum and not walk down the Grexit road.

So the future of Greece’s energy system is not exactly the stuff of intense coffee-shop conversations going on right now. But energy will be at the heart of the struggles in Greece in the years ahead, Memorandum or Grexit. Energy poverty has grown with austerity and recession, and Syriza has taken measures to protect the poorest and most vulnerable from, for example, electricity disconnections.

But it is clear that the structure of Greece’s energy system also needs to change. The “Institutions”, through the Memorandum, have a clear sense of what restructuring energy means for them—full-on privatization. However, a left restructuring would seek to address two major challenges: firstly, Greece’s dependence on fossil fuel imports and, secondly, how to take advantage of its potential to generate large amounts of renewable energy. I will return to this later.

East Bay Community Energy Local Development Business Plan (LDBP)

By staff - EastBay Community Energy, 2018

This plan was shaped by community organizers including several union workers and is an example of what a community and/or worker run CCA looks like.

The Local Development Business Plan (LDBP) is intended to develop a comprehensive frame-work for accelerating the development of clean energy assets within Alameda County. The LDBP explores how EBCE can contribute to fostering local economic benefits, such as job creation, customer cost- savings, and community resi-ience. The LDBP also identifies opportunities for development of local clean energy resources, explains how to achieve EBCE’s communit y benefits goals, and provides strategies for local workforce development for adoption by the EBCE Board of Directors.

Read the report (PDF).

(Working Paper #11) Trade Unions and Just Transition

By Sean Sweeney and John Treat - Trade Unions for Energy Democracy, January 2018

In late 2015, after more than a decade of tenacious lobbying of government negotiators, union representatives led by the International Trade Union Confederation (ITUC) succeeded in getting the phrase “Just Transition” into the preamble to the Paris Climate Agreement negotiated at COP21. The text affirmed “the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities.”

More than two years have passed since COP21, and calls for a Just Transition have emerged from all corners of the global progressive community. Once more or less exclusively a trade union priority, calls for a Just Transition increasingly appear, in varying forms, in the campaigns of major environmental organizations, climate justice and green NGOs, and indigenous and farmers’ movements. However unevenly, Just Transition has begun to feature in discussions around national politics and policy, and unions increasingly refer to the current period as Just Transition’s “implementation phase.”

The Need for an Integrated and Transformative Politics

Unions for the most part understand that they must strive to develop a Just Transition politics that somehow addresses the immediate concerns of workers while keeping the need for a transition of the entire economy in view. A transition that is “just” from the perspective of workers or “the workforce,” but which fails to help achieve the needed socioeconomic transformation, will ultimately accomplish little to address pressing climate-related and broader ecological concerns. Alternatively, policies aimed at driving a socioeconomic transformation that are robust enough to achieve climate and environmental targets, but which ignore the impact on workers in specific locations or industries, risk being unable to secure the support from workers that such a transformation requires in order to be successful.

Social Dialogue” or “Social Power”?

In this eleventh TUED Working Paper, we argue that, in order to effectively achieve this full range of aims, the international trade union movement must collectively formulate and pursue a comprehensive, integrated approach. Doing so requires a sober examination of the origins and current state of debates over Just Transition.

Unions at all levels of the international trade union movement recognize that a broad transformation of our economy and society is urgently necessary. But the insistence on keeping “Social Dialogue” at the center of such discussions holds trade union debates captive to the narrative of the liberal business establishment, and to a very narrow and de-mobilizing interpretation of Just Transition. Anchored in the particular realities of post-war Europe, Social Dialogue has been effectively elevated to the status of an official ideology in recent years–one that is increasingly out of step with both the challenges facing workers and their organizations, and the pressing demands for action posed by the climate and ecological crisis more broadly.

This paper makes the case for a different and more expansive trade union conversation-one that can address worker-focused concerns while advancing deeper socioeconomic transformation. We call this the “Social Power” approach. This approach is guided by the belief that a Just Transition cannot be accomplished without a deep restructuring of the global political economy. Existing power and ownership relations must be challenged and changed. This is, of course, an extremely difficult task. But if this does not occur, then the vast majority of the world’s working people will never see anything vaguely resembling a Just Transition. We can at least begin by openly acknowledging that this needs to be our movement’s long term goal and then organize accordingly.

The paper offers examples from around the world that illustrate how this new approach is cohering within day-to-day trade union struggles, as well as at the level of ideas across the political left.

Download the full paper here.

The GOP Tax Bill Assaults the Planet as Well as the Poor

By Basav Sen - Common Dreams, December 5, 2017

If you are an average American, your government has just declared war against you. Unless you happen to be an oligarch. I’m talking, of course, about the monstrosity of a tax bill that Congress looks set to pass.

With good reason, only about one-third of Americans support the bill, since its primary purpose is to cut taxes for corporations and fabulously wealthy people at all costs.

The costs are high indeed, since the bill systematically raises taxes on struggling lower to middle income people. It gets rid of taxpayers’ ability to deduct state and local taxes paid from their taxable income, which is a form of double taxation. While this increases everyone’s taxes, struggling working people will feel the pain of this double taxation more than oligarchs. Make the Poor (and the Middle Class) Pay Again. And Again.

It also ends the deductibility of large medical expenses, effectively a large tax increase for the seriously ill, especially the uninsured or underinsured among them. Make the Sick Bankrupt Again.

In an all-out assault on higher education, it turns tuition reductions or waivers for graduate student teaching and research assistants into taxable income, a move that would make graduate school unaffordable for most people. Make America Uneducated Again.

The bill also gets rid of tax-exempt bonds for affordable housing construction, which are used to finance more than half of affordable rental units built each year. Make Housing Unaffordable Again.

In fact, it raises taxes on most people in so many ways that it is disingenuous to even call it a tax cut. This bill is a massive tax increase on most of us.

Lost in the debate around the tax bill, however, are provisions that will make more wind-reliant Iowans and Texans jobless, leave more hurricane-struck Puerto Ricans without access to basic necessities, poison more African-Americans with toxic fumes, and submerge more Native Alaskan villages, just to enrich a particular subset of oligarchs.

The tax bill kills the modest tax credits for solar and wind power, effectively raising taxes retroactively on renewable energy developers. It also kills the tax credit for electric cars, but does not touch the much larger subsidies for fossil fuels. Make Fossil Fuel Barons Rich Again, by subsidizing them while raising their competitor’s taxes.

These changes in energy tax credits will hurt many more people than just the owners of solar and wind companies. Solar and wind energy create many, many more jobs — hundreds of thousands more — than coal, even though they account for much smaller share of our overall energy mix than fossil fuels. If the intent of the tax bill truly were to create jobs, it would reinstate the solar and wind tax credits and eliminate fossil fuel subsidies, not the other way round. Make Americans Jobless Again.

IBEW 569 Position on Reaching 100% Renewable Energy

By staff - IBEW 569, November 3, 2017

Whether a utility, municipal program, CCA or another provider or program, providers and subcontractors shall:

  1. Energy Identification: Inform customers of the percentage of renewable, greenhouse-gas-free electricity offered. Power may be labeled as “clean” or “green” if it comes from renewable energy generated from solar, wind, geothermal and other eligible renewable energy resources in California and defined by California law in the Public Utilities Code as Category 1.
  1. Exclude RECs: Provide renewable energy from actual renewable sources customers can trust while creating union jobs in the community for local workers. Renewable Energy Certificates (RECs) undermine these goals. There is no guarantee power content that includes voluntary RECs is clean or green therefore it must not be marketed as “clean” or “green” so as not to mislead the public.
  1. Communication to Consumers: Send at least three written notices to potential customers, and each notice will include a description of the percentage of the power mix that comes from California solar, wind, geothermal, small hydro-electric or other state certified green power sources.
  1. Creating Union Jobs: Procure power from union-generated sources; employ unionized customer service representatives; sign Project Labor Agreements on each Power Generation Project; sign Project Labor Agreements on Energy Efficiency Projects/Programs; agree in writing to neutrality in the event employees or subcontractor employees wish to unionize.
  1. Community Benefits: Sign Community Benefits Agreements to include local projects and local hiring and prioritizing projects, programs and actions to reduce emissions in disadvantaged communities that rank in the top 25 percent of CalEnviroScreen’s ranking for San Diego region communities.
  1. Local Project Build-Out: Emphasize development of new renewable resources from proven developers in San Diego and adjacent counties and strictly limit the use of non-renewable energy sources that are recognized under the California RPS to the amount permitted as “Qualified Renewable Resource.”
  1. Energy Efficiency: Develop a resource plan that integrates supply-side resources with programs that will help customers reduce their energy costs through improved energy efficiency and other demand-side measures. As part of this integrated resource plan, actively pursue, promote and ultimately administer a variety of customer energy efficiency programs that can cost-effectively displace supply-side resources.
  1. Workforce Impacts: Determine if the program will 1) result in negative impacts for employees of the incumbent utility (including layoffs, work hour reductions, etc.) and 2) if the wages, fringe benefits and job protections are similar to those offered by the utility to employees in comparable job classifications.

Clean Energy Investments for New York State: An Economic Framework for Promoting Climate Stabilization and Expanding Good Job Opportunities

By Robert Pollin, Heidi Garrett-Peltier, and Jeannette Wicks-Lim - Political Economy Research Institute (PERI) - November 2017

This study examines the prospects for transformative clean energy investment projects for New York State. Taken as a whole, these investments should be understood as a major initiative within the state to advance the fundamental goal of global climate stabilization. These investments should be undertaken by both the public and private sectors in New York State, supported by a combination of public investments and incentives for private investors.

This study builds from New York State’s existing Reforming the Energy Vision (REV) project and the New York State Energy Plan, which fleshed out a policy agenda based on the REV project. Governor Andrew Cuomo first presented the REV program in April 2014 and reaffirmed New York State’s commitments in June 2017. The primary goals of the REV program, which are targeted to be achieved by 2030 in New York State, include: 1) a 40 percent reduction in all greenhouse gas emissions; 2) generating 50 percent of all electricity from renewable energy sources; and 3) achieving a 23 percent improvement in energy efficiency in buildings relative to the 2012 level.

The REV goals and the State Energy Plan are unquestionably significant starting points for advancing clean energy policies in New York State. But they are not adequate to enable the state to achieve emissions reduction goals that meet the challenges we face with global climate change. As such, this study works from a more ambitious set of goals, both in terms of emissions reductions and in achieving broader positive impacts with respect to expanding job opportunities and raising living standards throughout New York State.

The first specific aim on which we focus in this study is to achieve, by 2030, a 50 percent reduction below the 1990 level in all human-caused CO2 emissions in New York State, along with comparable reductions in methane emissions resulting from natural gas extraction.

The second, equally important, goal is to achieve the 2030 CO2 emission reduction standard while also expanding job opportunities and raising average living standards throughout New York State. The expansion of clean energy investments will need to focus on 1) dramatically improving energy efficiency standards in New York’s stock of buildings, automobiles and public transportation systems, and industrial production processes; and 2) equally dramatically expanding the supply of clean renewable energy sources—primarily wind, solar, and geothermal power—available at competitive prices to all sectors of New York State’s economy.

In addition to these goals for 2030, this study also explores the prospects for achieving the longer-term aim of bringing CO2 emissions in New York State down to zero by 2050, while, again, concurrently expanding job opportunities and raising average living standards throughout the state.

Read the Report (PDF).

The Time to Move Off Fossil Fuels is Now

By Wenonah Hauter and Jean Ross - Common Dreams, October 27, 2017

NOTE: The IWW takes no position on legislative acts, except opposing those that increase wage slavery. While this act does not reduce wage slavery, it neither increases it, and the primary reason for posting this article here is the intersectional framing that Food and Water Watch and National Nurses United offer.

More than a month after Hurricane Maria struck Puerto Rico, many of the island’s residents still struggle without electricity or clean water. A major humanitarian and health care crisis is rapidly unfolding there, on American soil, with disgracefully inadequate help from our federal government. Meanwhile, unprecedented wildfires have burned in Northern California, where dozens were killed and tens of thousands were rendered homeless. In Texas and Florida, the recovery from Hurricanes Harvey and Irma has only just begun. These are tumultuous, catastrophic times, made much worse by human-induced climate chaos.

Science has proven beyond a reasonable doubt that decades of burning of fossil fuels has already caused significant climate disruption, and that this has led to an increase in the frequency and severity of major natural disasters. If we don’t take aggressive, forward-thinking action now, the storms and floods and fires will get worse and worse. This will mean more homelessness, more water contamination, more food shortages, more refugee diasporas and many more lives lost.

On the front lines of the most recent disasters, for more than a decade, including in Puerto Rico and Texas, hundreds of nurses backed by National Nurses United joined first responders to provide urgent medical care in the face of disasters intensified by climate change and help save lives and assist recovery.

The urgency of our fight is critical. As the planet steadily warms, science indicates we will trigger various climate ‘tipping points,’ causing irreversible new impacts on the planet. Many of these changes will be triggered at global temperature increases below 2°C; we have exceeded 1°C of warming already. In 2010, the International Panel on Climate Change (IPCC) estimated a two-thirds chance of avoiding a 1.5°C rise in temperature if carbon dioxide emissions are kept below 400 gigatons. At the current rate of emission, the planet will blow past that critical threshold in the next five years. There is no time to lose.

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