energy transition

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.”

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.”

By Lilli Ambort - Institute for Local Self-Reliance, August 7, 2020

Xcel Energy’s announcement that the Sherburne County Generating Station (Sherco) in Becker, Minn. will close by 2030 did not come as a surprise, but for local residents, the uncertainty of the city’s economic future has become a pervasive issue. Sherco is one of the largest coal-powered generating stations in the state, with three boilers and a total capacity of 2,238 megawatts. The Sherco power plant provides 301 jobs and a huge portion of the small city’s tax base. Sherburne County Commissioner Tim Dolan remarks “At 77% [of the City’s tax base], it’s probably easier to point to stuff [Sherco] didn’t pay for. It’s a much shorter list.”

Xcel Energy plans to replace two of the coal boilers with a 786 megawatt gas plant that will provide roughly 30 permanent jobs. Environmentally, the closure of coal plants drastically reduces carbon emissions and air pollution (but the addition of a gas plant at Sherco is questionable). Economically, Becker and many cities like it are left scrambling, looking for alternative forms of employment and tax revenue.

As gas dethrones coal generation as the ruler of the U.S. power sector, the cost of running coal power plants becomes economically uncompetitive. Eventually, gas may be surpassed by renewable energy, with solar and wind expected to be the fastest growing source of electricity generation for the next two years. For communities that rely on coal plants for tax revenue and jobs, the early closure of these plants spells trouble even as it reduces pollution and saves electric customers money. The transition away from fossil fuels provides new economic opportunities, but the question becomes whether these clean energy opportunities can replace lost income and tax revenue from coal generation plants.

Despite the news about the Sherco plant, Becker city officials remain hopeful for new economic opportunities that may come from the plant closure. Becker has attracted the attention of Google, which is looking to build a $600 million data center next to Sherco, potentially generating 2,000 short-term construction jobs and 50 permanent jobs. The data center would be powered by two wind power projects. While the Google project is still up in the air, Northern Metal Recycling is already moving to build a metal recycling plant next to Sherco, with the potential to create about 150 jobs in Becker. The possibility of new jobs, new people, and new tax revenue excites residents, and for now, these new developments do not completely replace all the jobs and tax revenue lost from the closure of Sherco, but they provide some economic hope. Unfortunately, other communities across the U.S. have not been as lucky, left with little to no other options for economic revitalization after coal plant closures.

By various - The Climate Center, August 5, 2020

Featuring Janea Scott, California Energy Commission; Genevieve Shiroma, California Public Utilities Commission; Carmen Ramirez, Mayor Pro Tem of Oxnard; Ellie Cohen, The Climate Center and others about policies to support climate justice and community energy resilience in lower-income communities who suffer disproportionately from pollution and power outages.

This summit gave overview of what California is doing now for clean energy resilience and what new policies are needed to provide access to clean and reliable power for all. Mari Rose Taruc, Reclaim Our Power Utility Justice Campaign; Gabriela Orantes, North Bay Organizing Project; and Nayamin Martinez, Central California Environmental Justice Network discussed the issue of equitable access from an Environmental Justice perspective.

Mark Kyle, former Director of Government Affairs & Public Relations, Operating Engineers Local 3 and currently a North Bay attorney representing labor unions, nonprofits, and individuals; Jennifer Kropke, Workforce and Environmental Engagement for International Brotherhood of Electrical Workers, Local Union 11, and Vivian Price, CSU Dominguez Hills & Labor Network for Sustainability talked about the Labor perspective.

Carolyn Glanton, Sonoma Clean Power; Sage Lang, Monterey Bay Community Power; Stephanie Chen, Senior Policy Counsel, MCE, and JP Ross, East Bay Community Energy discussed the work that Community Choice Agencies are doing to bring more energy resilience to lower-income communities.

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.

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By Sanya Carley and David Konisky - Nature Energy, August 2020

The transition to lower-carbon sources of energy will inevitably produce and, in many cases, perpetuate pre-existing sets of winners and losers. The winners are those that will benefit from cleaner sources of energy, reduced emissions from the removal of fossil fuels, and the employment and innovation opportunities that accompany this transition. The losers are those that will bear the burdens, or lack access to the opportunities. Here we review the current state of understanding—based on a rapidly growing body of academic and policy literature—about the potential adverse consequences of the energy transition for specific communities and socio-economic groups on the frontlines of the transition. We review evidence about just transition policies and programmes, primarily from cases in the Global North, and draw conclusions about what insights are still needed to understand the justice and equity dimensions of the transition, and to ensure that no one is left behind.

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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.

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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.

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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:

By Saul Griffith, Sam Calisch, and Alex Laskey - Rewiring America, July 29, 2020

Total decarbonization of America’s energy system is often portrayed as being inconsistent with economic growth, particularly with respect to job opportunities for those currently working in more traditional energy industries. This report, based on an extensive industrial and engineering analysis of what such a decarbonization would entail, demonstrates that aggressive decarbonization would create, rather than destroy, many millions of well–paying American jobs. These jobs will be highly distributed geographically and difficult to off- shore. The opportunity to create even more jobs by becoming an exporter of clean energy technologies would increase the number of jobs.

Where most studies look at decarbonization in specific individual sectors such as trans- portation, the electricity grid, or buildings — and mostly only on the supply side — we build a model of the interactions of all sectors, both supply and demand, in a rapid and total decarbonization. The maximum speed at which the transition can occur is dictated by the speed at which productive capacity in critical industries is built out. We call this the “mobilization period,” akin to the “arsenal of democracy” mobilization in service of winning WWII. Under our model, this period is followed by a prolonged stretch of deployment at close to 100% adoption rates. After this deployment period, the economy settles into a “new normal state” that provides steady growth, replacement, and maintenance of a 100% clean energy system.

This maximum feasible rate of decarbonization substantially decarbonizes the power, transportation, building, and industrial sectors in the U.S. by 2035. This is commensurate with a global target of limiting warming to between 1.5◦ C/2.7◦ F and 2◦ C/3.6◦ F . Decar- bonizing on this time frame produces around 25 million peak new jobs, tapering off to about 5 million sustained new jobs, in addition to the current jobs supported by the energy industry. While not the principal objective of this study, we also can project that with the right regulatory environment, and while paying good wages for energy sector jobs, we can still predict significantly lower energy costs for consumers, with an average household saving of 1,000–2,000 dollars per year.

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