Tag Archives: Just Transition

The Green Revolution Will Not Be Painless

A California oil refinery shut down during the pandemic. A year later, former employees were not all right.
Mario Tama / Getty

The Atlantic, By Annie Lowrey, April 26, 2023

In 2006, James Feldermann got hired as a trainee at a refinery in Martinez, California, in the Bay Area. It was hard work, with 12-hour-minimum shifts, but Feldermann came to excel at it. He learned how to isolate pipes and vessels, load railcars with molten sulfur and ammonia, and helm an industrial control panel. In time, he rose to the position of head operator at the Marathon Petroleum site. The job paid well, and he enjoyed it. He expected to stay until retirement.

On a Friday afternoon in July 2020, Feldermann was abruptly summoned to an all-hands Zoom meeting. While some of his colleagues struggled to get the audio to work, Feldermann received a phone call from his union representative. “I didn’t actually hear management tell us that they were laying us off,” he told me. The plant was being shut down, as the rise of work-from-home and the spread of electric vehicles depressed Californians’ demand for gasoline. Feldermann and his co-workers would be out of a job in 90 days.

The United States is embarking on an epochal transition from fossil fuels to green energy. That shift is necessary to avert the worst outcomes of climate change. It also stands to put hundreds of thousands, perhaps millions, of people like Feldermann out of work. The result could be not only economic pain for individual families, but also the devastation of communities that rely on fossil-fuel extraction and a powerful political backlash against green-energy policies.

A pathbreaking new study [BenIndy editor: see indent below] shows just how real the damage could be, absent policies to soften the economic blow. Virginia Parks, a professor at UC Irvine, and Ian Baran, a doctoral student, tracked the consequences of the Marathon shutdown in near-real time, getting more than 40 percent of the workers to return surveys and a smaller group to sit for interviews. They found that, more than a year after the shutdown, one in five Marathon workers was unemployed. Their earnings had declined sharply, with the median hourly wage of employed workers plunging from $50 to $38. Some workers were earning as little as $14 an hour. And those new gigs came with more dangerous working conditions.

[Editor >> See the UC Berkeley Labor Center’s executive summary: Fossil fuel layoff: The economic and employment effects of a refinery closure on workers in the Bay Area. Also, download the 39-page report, Fossil Fuel Layoff, here.]

To prevent other workers from experiencing the same, the Biden White House has promised to pursue a “just transition,” employing policies to ensure “new, good-paying jobs for American workers and health and economic benefits for communities.” But the green-energy transition is already underway. And it is not clear that it will be just.

The legendary American union leader Tony Mazzocchi pioneered the concept of a just transition a half century ago. Some industries are too toxic for society, he argued. But to shut them down in a way that punishes the workers in those industries, or the places where those industries are concentrated, would be unjust.

Just-transition policies are not merely about bailing out blue-collar folks. They are meant to defray the cost of having whole communities fall into persistent economic distress: a loss of social cohesion, people living shorter and sicker lives, the rise of “deaths of despair,” the growth of right-wing populism. They are also meant to generate political support for green policies, or at least dampen any backlash. Without them, “you risk dissuading future efforts that are for the societal good,” J. Mijin Cha, an environmental-studies professor at UC Santa Cruz, told me. “If we’re doing things that are for the benefit of society but screw over a bunch of people, that’s not a societal good.”

These policies have worked. The Ruhr region in western Germany, for example, once produced coal, iron, and steel, with extractive and heavy industry employing a majority of the region’s workers. The German government, labor unions, and industrial leaders came to a series of agreements to diversify its economy, providing payments for displaced workers and making investments in service-and-knowledge businesses. Employment in coal mining in the region went from 473,000 in 1957 to zero by the end of 2018. The area lost nearly 1 million production jobs but gained nearly 1 million service jobs.

Yet it is hard to identify many, if any, just transitions in the United States. Appalachia lost its coal jobs and gained an opioid epidemic. Detroit deindustrialized and fell into poverty and disrepair. The decision to open up trade with China sent millions of American manufacturing jobs overseas, and policy makers did little to create any in their place. Now the planned obsolescence of the fossil-fuel industry threatens to create new Rust Belts in regions economically dependent on extraction, such as the Permian Basin, in Texas, or the Bakken Formation, in Montana and North Dakota.

The problem is threefold. First, the United States does not invest heavily in industrial policy or place-based policy compared with some of its rich-country peers, though the Biden administration has started to push billions of dollars into both. If coal is leaving a region, Washington historically is not sending anything else in. Second, the country has lower rates of unionization and a much thinner safety net than other wealthy nations, making workers more vulnerable to the effects of mine closures and plant shutdowns. Third, the Republican Party tends to reject the premise that the country needs to move away from fossil-fuel production at all, making them a weak partner in setting up just-transition plans.

No wonder the Marathon shutdown went the way it did. John Bayer, a safety specialist, lost his job at the site, as did his two brothers. He told me that he was not offered any form of government help, aside from unemployment insurance. Bayer, who has two kids, sent out about 50 applications and received just two callbacks. He ended up at an agriscience firm that nearly matched his Marathon wage but provided fewer opportunities for overtime. “I ended up with a $60,000-a-year pay cut,” he told me.

James Feldermann wound up taking a job based in Reno, Nevada, for $17 an hour less than he was making at Marathon. He rented a small studio apartment there and spent months driving 200 miles back to the Bay Area every weekend to see his wife and son.

Both the state of California and the Biden administration are in the process of developing plans for a just transition to green energy. Those plans were too late for the Marathon employees. Many labor leaders, academics, and politicians think those plans are almost certain to be too little for fossil-fuel workers losing their jobs in the near future.

On paper, the challenge seems straightforward. The United States has roughly 120,000 oil-and-gas workers and 40,000 coal miners. The green-energy sector is adding at least that many jobs every year. Supply, meet demand. Why not create a job-matching service for those laid off; provide them with wage subsidies, transition assistance, and relocation funds; and watch the country’s emissions turn from smoke-gray to vapor-white?

A few reasons. For one, fossil-fuel companies employ about 1.7 million workers in the U.S., not 160,000, once you factor in all the labor not directly involved in extraction and refining. It takes a lot of workers to transport fuel, manufacture secondary products from it, and power communities with it. And it makes little sense to transition many of those workers directly into green-energy jobs. Oil-and-gas gigs tend to pay far more than solar and wind do. And workers in extractive industries tend to develop valuable, specialized skill sets, as Feldermann did. Their technical chops would be wasted selling rooftop solar systems, and their salaries would get cut in half.

The government also faces the challenge of supporting whole communities dependent on fossil-fuel extraction, not just individual workers. “Fossil-fuel companies tend to be dominant employers where they are located,” Michaël Aklin, a professor of economics at the École Polytechnique Fédérale de Lausanne, in Switzerland, told me. “When they shut down, the central node in that local economy disappears.” The consequences ripple out to the businesses and institutions that rely on the money those workers used to spend and the taxes they used to pay.

The crux of the Biden administration’s plan for a just transition thus far is a policy granting tax incentives to businesses investing in “energy communities.” In the long term, that might encourage companies to locate warehouses and jobs in the places where oil, gas, and coal facilities are closing. But incentives are, well, just incentives. What if private businesses choose not to locate in certain parts of Louisiana or North Dakota, despite the tax breaks on the table? What if they create jobs years after a shutdown has done its damage? What happens to places where no business wants to invest?

At this point, neither Sacramento nor Washington has developed a robust plan to reach out and help oil-and-gas workers one by one. That’s a necessary component, UC Irvine’s Virginia Parks told me. The government, she argued, should provide financial support to cover the gap between workers’ pre- and post-layoff wages, as well as aiding workers close to retirement. Legislators should set up programs to certify the workers’ skills so that outside employers can see just how qualified they are. Finally, the government should provide retraining and job-match services.

Last week, Tracy Scott, the president of the United Steelworkers Local 5, the union representing the Marathon employees, drove me around the closed refinery complex. It sits on emerald-green marshland near where the Carquinez Strait empties into San Pablo Bay. When we visited, the heavy machinery once used to turn sour crude into gas and petrochemicals was surrounded by a superbloom of California poppies and wild mustard. We both remarked on how beautiful it was. A little later, Scott told me that refinery workers tend to die young, and rarely get to take advantage of the retirement packages the union negotiates for them.

This place does not deserve to be burdened with this refinery, I thought. And these people do not deserve to suffer for its closure.


Annie Lowrey is a staff writer at The Atlantic.

Read the details in GSA letter to Biden stating that transition can formally begin

By Roger Straw, November 2020

Although Emily Murphy sounds defensive and a bit whiny in her letter, it does reveal some interesting details about the upcoming transition.  Read the letter here. (Click on the image for the 2-page PDF version.)

Click the image to read the letter.

GSA Administrator Emily Murphy finally starts the transition process

Trump Administration Finally Clears Way For Biden Transition To Begin

“I have always strived to do what is right,” GSA administrator Emily Murphy said in a letter to the president-elect on Monday.

Huffington Post, By Nick Visser, November 23, 2020
GSA Administrator Emily Murphy arrives to tesitfy during the House Appropriations Subcommittee on Financial Services and General Government Subcommittee hearing on "GSA (General Services Administration) Oversight Hearing" on Wednesday, March 13, 2019.
Emily Murphy, Trump appointed administrator of the General Services Administration

Emily Murphy, the administrator of the General Services Administration, said the transition between President Donald Trump and President-elect Joe Biden can begin, releasing millions of dollars in funds and clearing the way for a new administration.

“I have dedicated much of my adult life to public service, and I have always strived to do what is right,” Murphy wrote in a letter to Biden on Monday. “Please know that I came to my decision independently, based on the law and the available facts. I was never directly or indirectly pressured by any Executive Branch official — including those who work at the White House or GSA — with regard to the substance or timing of my decision.”

Trump thanked Murphy for her work just moments later.

Biden’s campaign released a statement shortly after Murphy’s announcement, calling the decision a “needed step to begin tackling the challenges facing our nation, including getting the pandemic under control and our economy back on track.”

“This final decision is a definitive administrative action to formally begin the transition process with federal agencies,” the Biden-Harris transition executive director, Yohannes Abraham, said in a statement. “In the days ahead, transition officials will begin meeting with federal officials to discuss the pandemic response, have a full accounting of our national security interests, and gain complete understanding of the Trump administration’s efforts to hollow out government agencies.”

The president noted on Twitter that while he still planned to fight the outcome of the election, he agreed the transition should begin “in the best interest of our country.”

“I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same,” he wrote.

The move will make $6.3 million available to Biden and his team to begin the transition process, as well as additional funds to prepare his staff and appointees.

Murphy had drawn widespread ire over her delay in “ascertaining” that Biden won the election, which is required before millions of dollars in transition funds and access to government officials can begin. She said, however, that Trump’s bevy of court losses and the certification of votes in several battleground states had allowed her to determine that Biden was the likely winner of the election.

Murphy added that she received many threats amid the delay in what she called an “effort to coerce me into making this determination prematurely,” although they, too, had not influenced her decision.

“I do not think that an agency charged with improving federal procurement and property management should place itself above the constitutionally-based election process,” she wrote Monday.

Several notable figures had lambasted the Trump administration over the delay, saying any further refusal to declare Biden the winner could hamper the country’s efforts to fight the COVID-19 pandemic, which has entered its most dangerous stage as the country beings to travel en masse before the holiday season.

Dr. Anthony Fauci, the nation’s top infectious disease expert, said last week he was “concerned” that things hadn’t gone “smoothly” and Biden said “more people may die” if Trump kept obstructing the transfer of power.

“As my chief of staff, Ron Klain, would say … a vaccine is important. It’s of little use until you’re vaccinated,” Biden said last week upon questioning about the rollout of any coronavirus preventative. “So how do we get the vaccine, how do we get over 300 million Americans vaccinated? What’s the game plan?”