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Labor Network for Sustainability says workers need environmental protection, not Joe Manchin’s dirty side-deal

By Labor Network for Sustainability - Red, Green, and Blue, September 17, 2022

Right now there is a new threat to environmental protection. A recently leaked draft bill text – bearing the watermark of the American Petroleum Institute – would override the National Environmental Policy Act (NEPA) by accelerating permitting review and timelines for energy development projects. West Virginia Senator Joe Manchin and Senate Majority Leader Chuck Schumer are now planning to attach these requirements to a “must-pass” federal budget resolution.

The deal would likely undermine the National Environmental Policy Act (NEPA), the fundamental law protecting the US environment, which was passed almost unanimously by Congress half-a-century ago. It is expected to greatly shorten the time available to consider whether projects should be given permits for fossil fuel infrastructure – meaning that our local communities simply won’t have time to make effective arguments to pipelines, wells, and other projects that may damage their environment forever.

The Promise and Perils of Biden’s Climate Policy

By staff - European Trade Union Institute, September 15, 2022

The recent Inflation Reduction Act (IRA) is properly recognised as the largest climate policy in US history. In this short essay I will first summarise and comment on its provisions, then outline the reactions to it, with a focus on labour unions, and will close by providing my own thoughts.

The IRA allocates around $370 billion over a period of ten years. About 75% of that is in the form of incentives (rather than direct investments or regulatory mandates) to advance the transition to ‘clean energy’ that includes renewables but also nuclear power, biofuels, hydrogen, and carbon capture and sequestration. These incentives focus primarily on advancing the production of clean energy but also on stimulating its consumption. Smaller energy investments focus on tackling pollution in poorer communities and on conservation and rural development.

The IRA also authorises as much as $350 billion of loans to be disbursed by the Department of Energy. While such loans have been around since the Bush Administration, the amounts and the likelihood that they will be used during the Biden Administration are much higher. Finally, its main regulatory provision is the designation of carbon, methane and other heat-trapping emissions from power plants, automobiles, and oil and gas wells as air pollutants under the Clean Air Act, one of the bedrocks of US environmental legislation, which the Environmental Protection Agency implements. Overall, it is estimated that by 2030 the IRA will help reduce emissions by around 40% of 2005 levels, compared to the about 25% reduction projected without it. 

However, the policy mandates that renewable energy siting permits cannot be approved during any year unless accompanied by the opening up of 2 million acres of land or 60 million acres of ocean to oil and gas leasing bids, respectively, during the prior year (for more details see 50265 of Act). In either case, the amount of actual leasing and drilling is subject to market dynamics rather than regulatory limits, while the Act also streamlines the permitting process for pipelines. The growing transition to electric vehicles will lessen the market for oil but the strategic repositioning of natural gas in energy production (as well as plastics) suggests that it (along with nuclear power) will be a long-term source of energy, including in the production of hydrogen. Nevertheless, overall, it is the prevailing view that the IRA will decisively transition the US into renewable energy as part of a broader energy mix.

The Inflation Reduction Act and the Labor-Climate Movement

By staff - Labor Network for Sustainability, September 2022

Passage of the Inflation Reduction Act reveals the power that can arise when the movements for worker protection, climate protection, and justice protection join forces.

The fossil fuel industry, the Republican Party, conservative fossil-fuel Democrats, and right-wing ideologues combined to block the climate, labor, and social justice programs of the Green New Deal and Build Back Better. They almost succeeded. But at the last minute, the combined power of climate protectors, worker advocates, and justice fighters was enough to force passage of the Inflation Reduction Act, the most significant climate legislation in U.S. history.[1]

That power was enough to include important positive elements in the Inflation Reduction Act. It will provide the largest climate protection investment ever made. It will create an estimated 1 to 1.5 million jobs annually for a ten-year period.[2] It includes modest but significant funding to address pollution in frontline communities.[3]

But the power of the fossil fuel industry and its allies was still enough to gut important parts of a program for climate, jobs, and justice – and to add provisions that promote injustice and climate change. The legislation includes only one-quarter of the investment necessary to meet the Paris climate goals and prevent the worst consequences of global warming. It allows much of its funding to be squandered on unproven technologies that claim to reduce greenhouse gas emissions but whose primary effect may simply be to permit the continued burning of fossil fuels – and enrich their promoters. It allows increased extraction of fossil fuels, especially on federal lands. It allows massive drilling and pipeline construction that will turn areas like the Gulf Coast and Appalachia into de facto “sacrifice zones” where expanded fossil fuel infrastructure will devastate the environment – and the people. It does not guarantee that the jobs it creates will be good jobs. It makes few “just transition” provisions for workers and communities whose livelihoods may be threatened by the changes it will fund.

The Fight to Stop the Inflation Reduction Act’s Fossil Fuel Giveaway

By Yessenia Funes - Atmos, August 10, 2022

Depending on whom you ask, the United States is on the verge of passing one of its most beneficial climate bills—or one of its most harmful. The Inflation Reduction Act is historic, hands down, but it’s also imperfect in the way it continues to prop up the fossil fuel industry at a time when we need to urgently invest in new energy sources. 

The Senate voted to pass the bill Sunday (which all Republicans opposed), and it’s now in the hands of the House of Representatives, which is slated to vote on it later this week. For the first time in my lifetime at least, the U.S. government is on course to pass a climate policy that can actually reduce emissions on a national scale—but at what cost?

Welcome to The Frontline, where we’re still awaiting climate justice. I’m Yessenia Funes, climate director of Atmos. President Joe Biden promised us sweeping climate action, and he finally delivered. However, the Inflation Reduction Act is not built on the foundations of climate and environmental justice. It continues the traumatic legacy of sacrificing Black and Brown communities—of handing over their lives to the fossil fuel sector. Leaders on the frontlines are preparing to fight back.

The Climate Change Scoping Plan Must Directly Address the Concerns of Labor

By various - Labor Rise for Climate, Jobs, Justice, and Peace, July 14, 2022

We are writing to you as rank-and-file California trade unionists to request revision of the 2022 Draft Scoping Plan to incorporate the California Climate Jobs Plan based on “A Program for Economic Recovery and Clean Energy Transition in California.” 

While making frequent references to equity, the Draft Scoping Plan fails to present a credible roadmap for the massive economic and social transformation that will be required to protect and promote the interests of workers and communities as California confronts the climate crisis and emerges from the fossil fuel era.

Four years ago, United Nations scientists reported that it would take “rapid, far-reaching and unprecedented changes in all aspects of society” to limit increasingly catastrophic changes to the global climate. Among these rapid and far-reaching changes, the redesign of our economy requires an honest accounting and plan for the tens of millions of California workers whose lives will be changed dramatically in this decade and beyond. If there is to be a plan for transformation, it must center the aspirations and possibilities for working people. 

In this aspect, the Draft Scoping Plan falls short. Labor is treated as an externality. The draft lacks any discussion of public funding to create green jobs or protect workers and communities who depend on fossil fuel industries for their livelihood. The only union mentioned in the 228-page draft is the European Union. The draft’s abstract commitments to a job-rich future are based on crude economic modeling rather than concrete planning. We need more than vague assurances that economic growth guided by corporate interests will provide for the common good.

Equity in Focus: Building a Diverse, Inclusive Clean Energy Workforce

California Assemblyman Kills Fossil Fuel Divestment Bill

By Nick Cunningham - DeSmog, June 28, 2022

The California legislature was close to passing a bill that would require the state’s two massive pension funds to divest from fossil fuels, but on June 21 the legislation was killed by one Democratic assemblyman who has accepted tens of thousands of dollars in campaign contributions from the energy industry.

Senate Bill 1173 would have required the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), the two largest public pension funds in the country, to divest from fossil fuels. CalPERS and CalSTRS, which manage pensions for state employees and teachers, together hold more than $9 billion in fossil fuel investments.

The global divestment movement now claims that more than 1,500 institutions have divested from fossil fuels, representing more than $40 trillion in value. New York and Maine have also committed to phasing out fossil fuel investments from their public pensions.

But because of the size of the two California pension funds, their divestment from fossil fuels would be a significant achievement for the global movement. The call comes as the state continues to suffer from long-term drought and catastrophic wildfires that are worsening with climate change. Activists say that the state cannot claim to be a leader on climate action while maintaining billions of dollars’ worth of investments in the fossil fuel industry.

Senate Bill 1173 would have required the pension funds to divest by 2027, and the legislation had the support of the California Faculty Association, the California Federation of Teachers, associations representing higher education faculty, and roughly 150 environmental and activist organizations. 

However, the American Legislative Exchange Council (ALEC), a corporate-backed front group with ties to the oil industry, opposed the bill, warning that divesting from fossil fuels would put public sector pensions in financial jeopardy.

The bill already passed the state senate, and still needed to pass in the state assembly, where Democrats command a large majority. But the bill needed to move through the Committee on Public Employment and Retirement, where Democrat Jim Cooper (Sacramento) is Chairman. 

On June 21, Cooper decided to let the bill die in committee, refusing to even bring it up for a hearing. Environmental groups denounced the “one-man veto.” Cooper has accepted more than $36,000 from the oil industry and other polluters over the past two years, including donations from Chevron and ExxonMobil, according to data compiled by Sierra Club, which called him a “Democratic favorite of the oil and gas industry.” 

“Jim Cooper just decided to continue investing public money in the unequal suffering of my community,” said Lizbeth Ibarra, an activist with Youth vs. Apocalypse, a California-based climate justice organization.

'Moral Failure': California Dem Pulls Plug on Fossil Fuel Divestment Legislation

By Brett Wilkins - Common Dreams, June 21, 2022

"This defeat is just a temporary setback," said one campaigner. "We will organize to come back stronger to make our demand for fossil fuel divestment heard because fossil fuel companies are driving us toward unimaginable disaster."

Climate, environmental, and social justice advocates on Tuesday condemned the decision by a Democratic California lawmaker to kill proposed legislation that would require two of the state's leading pension funds to divest from the fossil fuel industry. 

"Today amidst a historic mega-drought, wildfires, and fossil-fueled public health crises, Assemblymember Jim Cooper, Chair of the Assembly Committee on Public Employment and Retirement, refused to allow Senate Bill 1173, California's Fossil Fuel Divestment Act, to be heard in his committee," Fossil Free California said in a statement. "This one-man veto allows the state's pensions to continue to invest billions from public funds into the fossil fuel industry, for now."

S.B. 1173 would have prohibited the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS)—the two largest public pension funds in the United States—from making or renewing investments in fossil fuel companies. The measure would also have required the pensions to liquidate their fossil fuel holdings by 2030. The two funds currently hold an estimated $9 billion in fossil fuel investments.

"This decision is a moral failure that disproportionately impacts young people, Indigenous communities, communities of color, and low-income communities," the coalition asserted. "Climate chaos has already cost California billions in damages and health costs from fossil fuel pollution and climate disasters. Jim Cooper, who has just been elected Sacramento County Sheriff, has reported $36,350 in Big Oil campaign contributions from this election season alone."

State Sen. Lena Gonzalez (D-33) said in a statement that "while I am deeply disappointed that my Senate Bill 1173 was not set for a hearing in the Assembly Committee on Public Employment and Retirement this week, I remain committed to the necessary and ongoing fight against the impacts of climate change on our state, and especially those communities in my district that are disproportionately impacted by the negative effects of the climate crisis."

"Teachers and state employees whose retirement futures are invested by our state's pension funds have long demanded that CalPERS and CalSTRS cease investing their money in fossil fuel companies, and this demand will only grow stronger and louder," she continued.

America’s Biggest Public Pension Fund Is Slow-Walking Corporate Climate Action, Report Charges

By Sharon Kelly - DeSmog, June 16, 2022

CalPERS says it needs to hold onto billions in fossil fuel shares in order to push polluters in the right direction – but a new report details a pattern of voting against climate proposals.

Does engaging with oil and gas giants by remaining invested in them – keeping a “seat at the table” – help in the fight against climate change? 

A new report suggests not very much – at least judging by the record of the California Public Employees’ Retirement System (CalPERS).

The report by environmental group Fossil Free California takes the public pension fund to task for its results to date, highlighting its history of pushing “the importance of corporate engagement on climate change” in public statements, while simultaneously voting against climate measures in shareholder meetings.

The report details dozens of votes against climate measures by CalPERS this year — including votes against greenhouse gas reduction targets at Royal Dutch Shell, against reporting and reducing greenhouse gas emissions at BP, and against pushing big banks to get in line with international “net zero by 2050” strategies.

In fact, CalPERS has voted against every climate resolution at major American and Canadian banks so far this year, the report claims.

The report also casts doubt on one of the biggest accomplishments of CalPERS’ engagement strategy – the election of several new members to ExxonMobil’s board of directors last year, nominated by the activist investment firm Engine No. 1. The report faults Engine No. 1’s directors for voting against two recent proposals to set greenhouse gas targets that would account for the pollution caused by the fossil fuels ExxonMobil sells, and to produce a report on low-carbon business plans.

“Despite their best efforts, CalPERS and [California’s other major pension fund] CalSTRS have failed to persuade fossil fuel companies to reduce their greenhouse gas emissions, increase their renewable energy production, or transition from fossil fuels to renewable energy,” the report concludes. “By opposing climate proposals at the very companies they claim to influence, the funds’ shareholder activism is not only ineffective – it’s undermining climate action.” 

California lawmakers are currently considering a bill that would spur these pension funds, which invest retirement funds for state employees – including many, like the state’s firefighters, who are today on the front lines of the climate crisis – to drop their investments in fossil fuel producers.

The fund has an estimated $7.4 billion worth of fossil fuel investments that the bill would require them to shed. In April, its board voted to oppose that law, arguing that it would lose its “seat at the table,” only to be replaced by investors that “may not have the same interest in long-term sustainability as CalPERS”..

CalPERS declined comment on Fossil Free California’s new report.

Multiplying Labor's Power

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