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State Building and Construction Trades Council of California opposition to AB 538

By Andrew Meredith - State Building and Construction Trades Council of California, March 16, 2023

Dear Chair Garcia and Members of the Committee:

On behalf of the State Building and Construction Trades Council of California, I write in strong opposition to AB 538 (Holden). While this bill has been pitched as an effort to simply increase regional cooperation among western states, in reality, AB 538 will destroy construction jobs in California while ceding significant control and oversight of our electrical grid to groups and agencies outside of our state. California has made significant commitments and investments as it relates to renewable power and should remain in control of its own destiny.

Proponents of AB 538 have argued that a regionalized organization is better prepared to deliver benefits to participating states. For nearly a decade, these proponents have failed to provide demonstrative evidence that any benefits would outweigh the significant drawbacks associated with the regionalization of our electrical grid. Even worse, they are now asking the legislature to abandon oversight of the California Independent System Operator (CA ISO), leaving the Federal Energy Regulatory Commission (FERC) in complete and exclusive control; this is wrong on many levels.

For the most part, CA ISO has functioned well in maintaining reliability on one of the largest power grids in the world. The success of CA ISO is rooted, though, in the direction and oversight provided by the legislature. We are confident this legislature will continue to drive progress on reliability and the deployment of renewable technologies. Allowing other states, many of whom do not share the same goals, priorities, or values, to play a role in shaping our energy future is dangerous and entirely unCalifornian.

A Worker-Led Approach: Shaping the Future of Aviation

US Railroads Lag Behind the World in Railroad Electrification, and the Reason is Private Ownership

By Maddock Thomas - Brown Political Review, March 7, 2023

Railroads in the United States have avoided electrification, lagging behind much of the rest of the world. Consequently, American railroads are some of the largest consumers of diesel. In 2018, they used 4.2 billion gallons of diesel, second only to the US military. This diesel becomes quite expensive when prices spike during fuel crises. While railroads often claim to be improving fuel efficiency, they have failed to invest in the obvious solution: electrification. Railroad electrification would massively reduce pollution, improve operating efficiency, lower costs, and clear the way for faster rail service. With all these benefits, why have American railroads failed to electrify? The answer has to do with monopolization, a short-sighted focus on profit, and lack of national planning. However, it is not too late to correct our failures now. The US can still create a world-class, electrified rail network by nationalizing railroad infrastructure and recognizing it as a public good.

The US rail network is privately owned, largely by two sets of regional duopolies: CSX and Norfolk Southern in the east, and BNSF and Union Pacific in the west. These companies are fastidiously opposed to deploying capital that would improve infrastructure. As a result, they are unwilling to fund electrification and focus on cutting costs and services in order to reap higher profits. 

This refusal to invest in better rail infrastructure in pursuit of short-term profits is short-sighted at best and downright counterproductive at worst. The operating cost of electrified railways is markedly lower than that of those that run on diesel. A study from the 1980s found that electrification had an “economic advantage” over diesel, with a 19 percent pre-tax rate of return on electrifying 29,000 miles of US mainlines. Additionally, it is more than 50 percent cheaper to power a train on electricity than on diesel, especially considering current price hikes. Plus, with regenerative braking and catenaries, when trains are going downhill or slowing, they can sell power back to the grid.

Episode 3: From oil & gas worker to renewable energy instructor

The Future of Energy and Work in the United States: The American Oil and Gas Worker Survey

By Megan Milliken Biven and Leo Lindner - True Transition, March 2023

At the end of 2021 and beginning of 2022, we circulated a cross sectional survey via social media platforms and through word of mouth. In total, 1,635 workers completed the survey. While responses revealed shared themes, such as the desire for employment stability, workers who participated in the survey were not a monolith. Workers ex- pressed unique and individual views specific to their career and life experiences, oftentimes revealing contradictions that all humans possess. No one is perfectly consistent and respondents to this survey are no different in that regard. One recurring theme, however, emerged. Workers ex- pressed gratitude for the opportunity to say their piece to a larger audience. As one survey respondent said, “I wish people knew our stories.”

Of course, a few dozen questions can only tell part of a story. We followed up with several survey participants to ask additional questions and learn more about their individual experience and attitudes towards their work and the future of the industry in their own words. We feature those conversations throughout this report as case studies.

Download a copy of this publication here (PDF).

New Report: Building Public Renewable Energy

By Johanna Bozuwa, Sarah Knuth, Grayson Flood, Patrick Robbins, and Olúfẹ́mi O. Táíwò - Climate & Community Project, March 2023

The Inflation Reduction Act provides tax incentives for corporate investment in renewable energy — but what if “we the people” created our own publicly owned and community controlled renewable energy system?

Building Public Renewables in the United States, a new report from the Climate and Community Project, proposes a “Federal Public Power Program [that] would inject straightforward, public investment into the electricity system.”

The report proposes to “counter the monopolized, fossil-fueled, and profit-driven status quo of today” with a federal program that would invest in:

  • Existing publicly owned and cooperative utility energy providers

  • Tribal Nations

  • Newly authorized Regional Power Authorities

  • Grants for democratic development and transparency

The report says, “The transition to renewable energy requires far more than just a technological swap driven by private companies. It requires reordering the electricity system so that it values good-paying jobs, justice, and democracy.”

A federal program could require projects to provide good jobs, prioritize funds to disadvantaged communities, and demand real accountability to the community.

Download this document (PDF).

Episode 2: Finding your niche in the renewable energy sector

Trades key to coalition winning new clean energy bill signed by Governor Walz

By Steve Share - Minneapolis Labor Review, February 25, 2023

Labor unions and environmental groups joined with Minnesota Governor Tim Walz and legislative leaders February 7 for a bill-signing ceremony at the Saint Paul Labor Center to celebrate historic clean energy legislation.

The bill, Senate File 4, puts Minnesota on a path to 100 percent carbon-free electricity by 2040 — while creating new clean energy jobs.

“Our children are counting on us to get this right,” said Governor Walz, addressing the packed meeting room at the Labor Center. “We can’t move too fast when it comes to addressing climate change.”

“It’s our skilled trades who are going to be building this future,” Walz emphasized.

Speaker of the House Melissa Hortman, in her remarks, noted that “a very strong coalition” worked to pass the bill, including labor, environmentalists, and young people.

“We have a climate crisis and we need to take action to address it,” she said.

“Today’s action is the strongest action Minnesota has taken on climate change. Full stop,” declared Representative Jamie Long (DFL-Minneapolis), who was the chief author of the bill in the Minnesota House.

From Rigs to Riches: The promise of oil and gas decommissioning in a just transition

By Peder Ressem Østring - Just Transition Research Collaborative, February 24, 2023

The recycling of oil rigs can provide new jobs within the circular economy, particularly beneficial for oil-dependent regions. If we get it right, the process of cleaning up after the fossil economy can itself serve as a bridge from fossil dependency towards a just transition.

Globally, there are over 7000 offshore oil and gas platforms. Together with other structures and pipelines, these form an impressive built environment. If we are to have a fighting chance of keeping global warming well below 2°C however, virtually all of these installations would have to be shut down, dismantled and recycled. This process — known as offshore decommissioning — is already taking place, but will see a dramatic increase in the coming decade. It will be increasingly necessary to confront the ways in which decommissioned infrastructure is handled, both with regards to the environment and labour conditions.

A case study of the decommissioning of oil and gas infrastructure in the North Sea shows some of both the possibilities and challenges decommissioning presents in terms of a just transition.

While some oil companies would like to leave the oil platforms in the sea, eagerly promoting the idea of repurposing old rigs as artificial reefs, this is not allowed under current regulation. After the plans of Royal Dutch Shell of dumping the oil storage tanker Brent Spar in the North Sea in the 1990s was met with massive public scrutiny and campaigns from environmental organizations, regulations came in place that effectively banned the practice of abandoning manufactured structures in the North-East Atlantic.

Companies have since sought other ways of disposing of the problem with structures put out of commission. Another approach for cutting costs for the oil supermajors has been to send old floating rigs for breaking in the global South. This has taken place under horrendous conditions for both workers and the environment, as has been uncovered by the BBC.

Both these false solutions are in reality ways of externalizing costs of cleaning up after the fossil companies. Both approaches should be rejected, while insisting on the principle that the polluter should pay.

Alberta’s Roadmap to the New Energy Economy

By Simon Dyer - Pembina Institute, February 21, 2023

Alberta has always been an international leader on energy. Our abundant natural resources, coupled with our proud history of technological innovation in the oil and gas sector— particularly the oilsands—means we are renowned for our ability to use a skilled labour force to reach new frontiers in energy production.

In 2023, Alberta has an opportunity to build on that history and move towards a new energy future. In doing so, it can begin to capitalize on the multiple opportunities associated with the globally emerging clean economy.

To achieve this, Alberta needs a robust, credible plan on climate and energy. The number of governments worldwide that are legislating emissions reduction targets and policy measures to deliver them is rapidly growing each year, and it is time that Alberta joined them. This province — home to some of the world’s foremost experts on carbon capture technology, methane reduction techniques, wind and solar power, and so many other clean energy solutions— has much to offer to the energy transition, and much to gain. The International Energy Agency, for example, estimates 14 million new energy jobs and 16 million new jobs in energy efficiency will be created, worldwide, between now and 2050.

To take advantage of these opportunities, Alberta must also be willing to confront the realities of the global shift towards low-carbon energy sources, and take steps to adapt and futureproof its economy and workforce. The global outlook for fossil fuels, for example, has fundamentally shifted in the last twelve months. In 2022, for the first time, a range of assessments — including from within the oil industry — projected that the current level of worldwide policy momentum on emissions reductions will result in a sustained decline in global demand for oil, beginning this decade. If the world successfully achieves its goal of reaching net-zero emissions by 2050 and avoiding the worst effects of climate change, that demand decline will begin sooner and be steeper — and will have a significant impact on Alberta’s industry. 

Acknowledging these realities, and choosing to show leadership on climate and energy policy, is integral to Alberta’s overall attractiveness as an investment destination. Now more than ever before, companies are looking for opportunities to invest in climate solutions, and for jurisdictions where they can operate while meeting their own climate goals. Choosing instead to remain out of step with the global trend towards low-emissions economies would leave Alberta at a significant disadvantage in the years ahead.

The Pembina Institute is, and has always been, proudly headquartered in Alberta; this is our home. We are committed to seeking out effective, evidence-based policy solutions that can support this province’s communities, economy, and environment. 

As the 2023 provincial election approaches, this document provides our recommendations to future leaders in Alberta to advance this province’s position in the transition towards low-carbon energy. Above all, we think Alberta can and should be a leader on climate and the energy transformation in Canada.

Read the report (link).

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