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fossil fuel capitalism

Socialize the Railways!

By Tom Wetzel - East Bay Syndicalists, November 13, 2023

The downward slide of the major (Class 1) American freight railroads in recent years shows how capitalist ownership of the railway system is dangerous and inefficient — and fails to make use of the potential of the railways as a solution to the global warming crisis.

Downward slide has been accelerated over the past decade due to the adoption of “Precision Scheduled Railroading” (PSR). This has no precise definition but the aim is to reduce costs. As in “lean production” management theory, any expense not directly needed for profit is regarded as “waste.” PSR is a cost-cutting strategy that puts short-term profits for stockholders as the controlling priority. To maximize the rate of return, the railroads cut corners on maintenance, constantly work to reduce the number of railroad employees, and actively discourage shipments that are less profitable for them to haul. To keep Wall Street investors happy, they work to maximize short term profit. To enrich stockholders, the rail companies have poured billions of dollars into stock buybacks rather than invest in system improvements.

Infrastructural Solidarity

Convergence of Struggles

Environmental Justice Equity Principles for Green Hydrogen in California

By various - California Environmental Justice Alliance, October 13, 2023

We represent heavily polluted communities throughout the State of California. Our communities border oil refineries, gas-fired power plants, industrial farming operations, fossil fuel extraction facilities, waste processing centers, ports, transportation corridors and other polluting operations. These cumulative sources of pollution cause a wide range of adverse health outcomes in working class communities of color. Our communities share a common fence with facilities and operations that emit toxins, foul smells, and noise and cause nuisance impacting people’s quality of life at all hours of the day and night.

The State of California intends to expand the use of hydrogen as a fuel, and to this end, we offer these guiding principles, which are essential to respect and protect our communities.

The following principles represent our collective values and positions to support communities as hydrogen energy is utilized across the state.

These principles were developed in 10 workshops and learning sessions for environmental justice partners across California between March and September of 2023. The learning sessions examined the current science, including risks, benefits, and unknowns, and shed light on each stage of the hydrogen cycle, including production, delivery, storage, and use. The workshops allowed our organizations to discuss different perspectives, build consensus, and reflect on how hydrogen may impact our communities. 

We adamantly oppose all non-green hydrogen proposals and projects. We insist that new projects protect communities first and do not perpetuate the injustices that polluting infrastructures impose on fence-line communities today. Each stage of the hydrogen life cycle—production, delivery, storage, and end use—can present unique risks and harms to environmental justice communities and to all Californians.

Discussions about building new green hydrogen infrastructure must involve the community, and its members should be meaningfully engaged. Siting green hydrogen infrastructure should also take into account the cumulative impacts of environmental justice communities and the risks associated with hydrogen.

California’s Climate Investments and High Road Workforce Standards: Gaps and Opportunities for Advancing Workforce Equity

By Sam Appel and Jessie HF Hammerling - UC Labor Center, September 20, 2023

California continues to lead the nation in charting a path to economy-wide decarbonization. On this path, the state has committed to pursuing a high road transition that prioritizes the development of a sustainable economy grounded in equity for workers and communities.

In our 2020 report Putting California on the High Road: A Jobs and Climate Action Plan for 2030 (JCAP), commissioned by the California Legislature in Assembly Bill 398 (Garcia, 2017), the UC Berkeley Labor Center offered guidance for policymakers on how to ensure an equitable energy transition for workers in California. That report describes clear, proven strategies for maximizing the creation of high-quality jobs across the low-carbon economy, broadening opportunities for workers of color and workers from historically marginalized communities, delivering the skilled workforce needed to achieve California’s climate targets, and protecting workers in transitioning industries.

This report presents a current snapshot of the state’s progress in implementing several of these strategies by examining the integration of high road workforce standards across California’s climate investments. Specifically, we review existing high road standard policies in California, and assess the reach of high road standards across the state’s proposed climate investments in California’s 2022-23 state budget.

Download a copy of this publication here (PDF).

Investment Impact of Alberta's Renewable Energy Moratorium

By Jason Wang, Will Noe - Pembina Institute, August 24, 2023

Alberta’s proven, economic, and available wind and solar resources position it to become Canada’s renewable energy capital. In fact, three-quarters of renewable energy projects built in Canada last year were in Alberta. At a time when the investments are trending towards renewable energy growth globally, accelerating the buildout of renewables in the province is a no-regrets economy-building decision. Renewable energy reduces electricity costs, creates jobs, and has been a growing source of investment in Alberta. Since 2019, projects have drawn nearly $5 billion in investments, creating close to 5,500 jobs.

But on August 3, 2023, the Government of Alberta announced a seven-month pause on approvals for renewable energy projects over 1 megawatt (MW) – including wind, solar, and geothermal, though excluding microgeneration.

Natural resources should be developed responsibly with care to mitigate environmental impact and address stakeholder concerns. However, there are several measures in place already for the responsible development and reclamation of renewable energy resources in Alberta. In addition, renewable projects are only developed with interested landowners. There are improvements that can be made to the measures in place, but they can be undertaken without hampering the industry and stakeholders involved in project development.

We reviewed the Alberta Electric System Operator’s (AESO) list of electricity generation projects in development in relation to their approval status from the Alberta Utility Commission (AUC) to determine how many projects are impacted by Alberta’s renewable energy development moratorium and what this means for investments, revenues, and jobs in the province.

Public data shows that 118 projects are currently in development and are either waiting for permitting approval or could submit an approval application within the next few months. These projects represent at least $33 billion of investment and more than 24,000 job-years.

Download a copy of this publication here (link).

Appalachian Economy Sees Few Gains From Natural Gas Development, Report Says

By Jon Hurdle - Inside Climate News, August 23, 2023

Natural gas production in the Appalachian region of the United States has failed to produce promised increases in jobs and income since the fracking boom began there in the late 2000s, with economic stagnation likely to persist now that output of the fuel has passed its peak, according to a report issued on Tuesday.

The study from the Ohio River Valley Institute, a nonprofit research group, found that gas-producing areas of Pennsylvania, Ohio and West Virginia lost more than 10,000 jobs from 2008 to 2021 and that their personal income growth trailed that of the three states and the U.S. as a whole. Their population dropped by more than 46,000 during the period.

Even though gross domestic product of the 22-county region surged at four times the rate of the states overall from 2008 to 2019, little of that new wealth helped local economies because natural gas investment is mostly made in capital, not labor, and because many of the industry’s workers came from distant areas like Texas or Oklahoma where oil and gas skills were more readily available, the report said.

“GDP, which is often cited as a principal barometer of economic health, failed to produce commensurate gains in local measures of prosperity and well-being, including job, income and population growth,” it said.

Frackalachia Update: Peak Natural Gas and the Economic Implications for Appalachia

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

The Climate Culprits Blocking Workers’ Heat and Wildfire Protections

By Rebecca Burns - The Lever, August 9, 2023

Fossil fuel and corporate lobbying groups blocking action on climate change are also fighting labor protections meant to safeguard workers from its intensifying effects. As record-high temperatures kill the workers who grow our food, deliver our packages, and build our homes, industry lobbying has stalled heat safety measures in Congress and at least six states, according to a Lever review.

As a result, most of the nation’s workers still aren’t guaranteed access to water, rest, and shade — the basic precautions needed to fend off dangerous heat stress. Heat exposure could already be responsible for as many as 2,000 workplace deaths each year, and research suggests that it is three times as deadly when combined with exposure to air pollution from sources like wildfire smoke.

Business lobbies representing the agriculture, construction, and railroad industries have also opposed state rules protecting outdoor workers from smoke exposure.

The key opponents to worker climate protections include the National Federation of Independent Business (NFIB), a well-funded influence machine that describes itself as “the voice of small business” while pushing corporate agendas like the rollback of child labor protections. The group reported spending more than $1 million lobbying the federal government last year on issues including legislation to fast-track heat protections for workers. Soon after, the bill stalled.

Targeted Employment: Reconnecting Appalachia’s Disconnected Workforce

By Claire Kovach, Stephen Herzenberg, Amanda Woodrum, and Ted Boettner - ReImagine Institute, Keystone Research Center, Ohio River Valley Institute, July 25, 2023

The Appalachian region has long suffered from not having enough good paying jobs. Even when the unemployment rate is low, too many Appalachians are disconnected from the workforce entirely due to a myriad of factors. The result has been a long-term structural unemployment problem that has persisted for decades, with too many Appalachian adults out of the workforce entirely and unable to secure a decent paying job where they live.

A federal job subsidy program that is targeted at breaking down barriers to employment – such as improving the skills and experience of potential workers to meet current employer demands in their local labor market – and connecting them with a job could not only boost incomes and improve the livelihood of thousands of Appalachians but also give people self-esteem, a source of identity, and feel more connected to their community.

This report examines the economic conditions of Appalachia with a particular focus on the Appalachian counties of four states—Kentucky, Ohio, Pennsylvania, and West Virginia—that comprise the footprint of ReImagine Appalachia and the Ohio River Valley Institute. This includes describing how Appalachia has been a “region apart” from the rest of America, including its history of resource extraction and exploitation, the collapse of the steel industry, and now coal, that has led to large employment losses in the area, and how the region’s uneven development has led to chronically low rates of employment, disenfranchisement from the labor market and even loss of hope underpinning the opioid epidemic from which the Appalachian region was particularly hard hit.

Download a copy of this publication here (PDF).

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